EXECUTIVE DEVELOPMENT PROGRAMME

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 Coverage
Voice of stakeholders - many

Business objectives - fundamentals

Vision & strategy for growth , a must

Corporate Sustainability, gaining momentum

Improving performance & efficiency, continuous

Shareholders expectations, ever increasing

Way ahead, it is a challenge

 Business Objectives
Going concern concept
Have a Vision with Long term approach
Growth phase slow and steady
Ensuring Governance at all levels.
Results in establishing BRAND value
Performance reflected thru Market cap
 Voice of Stake holders
Consistent
Wealth
creation

Investors Eco-friendly
Support new Environmentalists
vendors construction
product
adoption
Long term Manage risk /
business Sub INDEPENDENT Customers uncertainty to
relationship. construction.
Contractors COMPANY Support on value Engg.

Communities 100% compliance to

around Regulator statutes
project site Employees &
Workmen
Least
disturbance
Welfare
Employment
Health & Safety
opportunities
Career / professional
Business
Development
opportunities
Meeting critical
social needs.
 VISION
L&T shall be a professionally managed Indian
multinational, committed to total customer
satisfaction and enhancing shareholder value.
L&T ites shall be an innovative, entrepreneurial
and empowered team constantly creating value
and attaining global benchmarks.
L&T shall foster a culture of caring, trust and
continuous learning while meeting expectations
of employees, stakeholders and society.
 Sustainability
Sustainability is a vision of achieving Economic, Environmental and
social performance together in an optimal manner.
Goal of sustainable development is to meet the needs of the present
generation without compromising the ability of future generations to
meet their own needs.
Sustainability initiatives in our construction context would typically
cover :

Economic Environment Social

- Contribution to - Energy conservation - CSTI

Duties / Taxes - Water conservation - Safety Staff & labour
- Employment / - Controlling noise pollution - Health
Business - Greening of environment. - Support to society
opportunities
 Sustainability can Impact Operations
Positive impact
Brand image
Confidence of investing public
Contribution to society

Negative impact
Non-conformance can lead to criminal action / closure of project.
Public protests
Negative image through media propaganda

L&T being a large company is very vulnerable.

SITUATIONAL ANALYSIS
Your company is having ambitious plans for growth,
both organic and inorganic mode.

As a Director of the company, list your points before

the Board for an acquisition proposal which is
proposed for approval
One of your project is facing environmental issues
and it is being criticized widely in the media.

How would you deal this situation and what steps

would you recommend to avoid such crisis for
future.
Your company is maintaining a healthy relationship
with vendors and Subcontractors. One of your
trusted subcontractors suddenly becomes cash
trapped and has absconded.

How would you deal this situation and what are the
takeaways from this incident
 Your company wants to enter into new
geography for international business and have
identified Africa as a potential country for
future growth.

As a Business Head, how would you approach

to develop your growth in overseas in line
with your corporate objectives.
As a Business leader, to improve shareholders
wealth what Value adding measures would you
suggest to the Management
 Value creation - indicators
Check cost break up
Monitor cash flows
Operating margin
Profit After Tax
Return on Capital employed
EVA
 Materials
Offers huge potential for savings
Liquidate non moving stocks
Transfer to needy sites , if possible
Control on stocks under WIP
Control on spares and consumables
Scrap
 P&M
Check performance of all major P&Ms
Preventive maintenance
Control on spares
P&Ms given on hire to clients
Recovery from SCs as per WO terms
 overheads
Keep lean structure, when close out happens
Check on indirect cost.
Track on deposits and advances
Control on hire cost of vehicles
Renewal of BGs and Insurance
 Shareholder expectations
Wants company in SAFE hands
Expects consistent performance
High level of governance and Law binding
Meeting the commitments
Brand value - Negative sentiments, can
hamper the image
 How to meet
Shareholder expectations ?

Checking projects during prebid stage

High risk projects, can be avoided
avoid low yielding jobs.
 How to meet
Shareholder expectations ?

Constant monitoring of projects during

execution.
Job risk register good monitoring tool
Helps to avoid sudden surprises
 Expectations from Management
Wide fluctuation between prebid and post
award scenario
Cost competitiveness
Quality of Sub Contractors and vendors
Statutory compliances & Governance
Safety & Quality
People development & International exposure
Transparency
 Way ahead
Think like a Strategist
Aim to become Financial engineers
Develop working knowledge as specialist
Follow risk management processes which
could convert every risk into opportunity.
Be an optimistic and Be Positive ALWAYS
If you do that, SUCCESS will be with you ALWAYS
Thank You
&
Good Luck