Organizational Transformation

In

Arun Kabra 11BM60046

Organization Transformation: Organization Transformation implies radical changes in how members perceive, think and behave at work. It includes changes in the core values, beliefs, purpose, and/or mission of an organization. Transformation is meant to identify, leverage, and even create new underlying principles for the way things are done. Collectively refers to the activities such as the reengineering, redesigning and redefining business terms. Transformation is about turning aspirations into reality, converting setbacks into opportunities. Speaking generally transformation of an organization is often seen as the leader s responsibility to address but the subordinate s task to receive and implement. Aditya Birla group: Aditya Birla group is a US $35 billion corporation. The Aditya Birla Group is in the League of Fortune 500. It is has over 133,000 employees, belonging to 42 different nationalities. Started in year 1969, by Mr. Aditya Birla, business of Aditya Birla group includes Textiles, Chemicals, Agribusiness, Mining, Insurance, Non conventional energy, Retail, Telecommunication, etc with the brand names like Hindalco, Grasim, UltraTech Cement, Essel, Idea Cellular, Birla Sun Life insurance and More Supermarket chain to name a few. Bringing in Transformation: Transformation efforts require exceptional leadership abilities. Leaders must have both the capability to formulate a compelling vision and the skills to organize and manage the change processes. Kumar Mangalam Birla took over the reins of Aditya Birla Group (ABG) in 1995. From 1997 to 2008, the organization has seen an exceptional transformational journey, having scaled many new heights in preparing the company into becoming a global giant in the 21st century. He is leading the various business units spread across Thailand, Philippines, Indonesia and Egypt, apart from ten key locations in India. These transformational changes at Aditya Birla Group can be seen through following categories:

Transformation through Values

1) Value-driven governance The group s value orientation is driven from the top. This is a group where the chairman personally wrote to each of the CEOs advising them not to take shortcuts with law, even if it would benefit the group. 2) Towards meritocracy with a personal touch The Aditya Birla Group makes efforts to treat people not as performance resources but as members of the family, showing care, concern and extending help when needed. The Group compares with global standards of performance while taking care of its people. Their rewards are directly linked with people contributions and are devoid of nepotism, favouritism, etc.

3) People centricity Among the various pillars of competitiveness, the quality of people is most crucial, since it plays a critical role in fostering innovation, which in turn, enhances the competitiveness of the organization. The group emphasizes on building its leadership talent through the use of best-in-class global practices such as 360 degree appraisal, assessment centre, mentoring, and robust succession planning.

Transformation through organization development:

1) Managing change with continuity The Aditya Birla Group has made great strides towards globalization, shifting to new economy businesses, including new mindsets in line with emerging challenges and demands, and towards building collective leadership. This transformation within a span of 12 years has been mainly possible due to Aditya Birla Group s continuous focus on the need for change to evolve for greater competitiveness. 2) Robust growth strategy The group aims to double its revenue to $60 billion (from its current $29.9 billion) in the next 5 years, which clearly indicates the ambitious growth strategy of the group. The key markets identified as areas for growing its business include Europe, South America, South East Asian countries and China. Their growth strategy is supported by the strategy of consolidation restructuring the Group into Strategic Business Units (SBUs) which is headed by its respective CEO.

Transformation through Reengineering:

1) Global expansion Till 1997, the group had operated only in five countries including India. Today, their operations has grown to 25 nations, making it a true MNC and a transnational Goliath . They have invested in developing a global mindset and cross cultural sensitivity among its key people through exposure and training in top B-schools. 2) Futuristic and forward-looking Group The capability of an organization to capitalize nascent opportunities is governed by its futuristic vision and forward-looking orientation. Through various acquisitions, the group has successfully moved from the preponderant traditional economy business to new economy businesses like telecom, insurance and retail. Barriers to Transformation: 1) Technical a. Leading global operation from central office at India 2) Business Process a. Communication till the bottom line b. Slow growth due to following of legacy business administration process

3) Organizational and Managerial a. Ability to manage time effectively b. Ability to plug in to the minds and hearts of people c. Leading heterogeneous mix of people 4) Governance a. Brutal and harsh feedback about working at organization