GREAT PLACE TO

WORK CONFERENCE August 7, 2012

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THE GODREJ GROUP

• Evolution from a lock making company in 1897 to a present day

conglomerate of 3 bn USD+

• GILAC is a group of four major businesses – FMCG, chemicals, real

estate and agro products, supported by a strong Corporate Center

• Presence in 60+ countries

• 11,000+ employees

• 500 million people use one or another Godrej product everyday

• Strong focus on ‘Good & Green’, the Group wide shared value initiative

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THE GODREJ GROUP

• Rebranding exercise in 2008 with the objective of positioning the

brand as contemporary

• Today, at a point in history where Godrej’s amazing past is meeting up

with its ambitious future

• Godrej is learning and relishing being young again

OUR IMPERATIVES AS A GROUP

Our 2020 Vision has 4 Imperatives HR Imperatives

Grow 10 times in the next 10 years

• Provide strong leadership and global talent

from within Godrej

• Cost efficiency

• Integrate acquisitions

Be the most trusted and innovative Indian

brand

Have an authentic and edgy employer brand

Foster an inspiring place to work

Build the culture around our capability factors Create shared value through ‘Godrej Good

and Green’

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MAKING THE TRANSITION HAPPEN

• Focused on three key words: simple, authentic and edgy

• Key initiatives undertaken:

• Introduction of the HR philosophy and Godrej Capability Factors

(GCF)

• Aligning HR processes to GCF

• Hiring for culture fit and values

• Leadership Development

• Competitive Remuneration

• Employee Engagement

• Upgrade technology

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ARTICULATING THE HR PHILOSOPHY

The bar rises as you move to higher roles

Excellence is the only option

You are responsible for your own development and that of your team

Never hoard talent; rotate people

Promotions are based on performance and potential, never on tenure or for retention

Teams must be diverse and whole brained in make up and thought

What is sacrosanct: our values and always treating people with respect

Coach, guide and provide honest feedback

Talent will get focused attention and support for career development

Rewards in line with performance and contribution to the business

Space, opportunities and resources to develop

tough

love

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INTRODUCTION OF THE GCF

• Set of key capabilities that will help in building a brighter and future-

ready Godrej

• 3 pillars that define leadership capabilities at Godrej

• Leading Self: being self aware and self driven

• Leading Others: collaborating with and developing people

• Leading Business: acting strategically to deliver results

• Defines the critical capabilities and expected behaviors for each level

in the organization and plays a key role in people processes

• Used to hire and identify talent, review performance, provide feedback

and structure development efforts for growth

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PILLAR CAPABILITY FACTORS DESIRABLE BEHAVIORS

Leading

Self

Initiative Drive

Ownership

Tenacity

Hunger to Learn and Improve Humility

Growth Mindset

Committed to change

Emotional and Social Awareness Maturity

Self Awareness

Influence

Leading

Others

Leading Team Creates a high performance team

Adaptive

Motivator

Developing Others Nurtures talent

Feedback

Mentoring

Fostering Collaboration Godrej First

Collaborates

Builds bridges

Leading

Business

Customer Centricity Insightful

Innovates

Delights

Acting Strategically Envision

Frames issues

Action orientation

Delivering Results Commercial acumen

Execution excellence

Agility

Institution Building Role model

Knowledge sharing

Shapes culture

The 3 Pillars

have 10

Godrej

Capability

Factors,

with

desirable

behaviors

attributed to

them

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HIRING FOR CULTURE FIT AND VALUES

• Introduction of the GCF in the selection process

• Multi-level engagement during the selection process

• Bright Start and Bright Week – to drive a common introduction to the

Group

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STRENGTHENING OUR LEADERSHIP

PIPELINE BY BUILDING OUR EMPLOYER BRAND

• Focus on hiring Management Trainees through the summer route –

90% of new joinees this year did their summers with us last year, 50

interns in the Gurukul batch for next year, as compared to 27 in 2011

• The application process was very creative, with the option to write in

with a movie clip, song, advertisement, poem or even a comic strip.

The selection process used simulated games instead of standard

group discussions.

• Godrej LOUD is a platform for students to live our their unfulfilled

personal dreams. Godrej will sponsor the dreams and also make

offers into the summer programme.

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!!

!

!

!

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LEADERSHIP DEVELOPMENT

Reassign or Rescope

• Evaluate if in right role

• Identify development priority

• Support with direction and guidance on

improving performance

• Identify corrective actions in the role

environment, if required

Top Talent

• Structured career conversations

• Stretch projects/ assignments

• Coaching

• Job Rotation

• Premium Training

Watch list

• Time bound performance improvement plan

• Frequent reviews to monitor performance

• Improve or disengage

Core Contributors

• Structured development planning

• Supervisor mentoring

• Cross functional projects/ assignments

• Training for skill and GCF development

Employees are mapped on the ‘9 Box Performance – Potential Model’

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DEVELOPING TALENT

• Leadership Series – Top 100 employees participate in this world class

programme, led by Bharat Anand (Harvard Business School) and

Hitendra Wadhwa (Columbia Business School)

• Godrej Fellows Programme – Brings together ten of the brightest

young people, under the age of 30, to work on change oriented

projects across the Group

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COMPETITIVE REMUNERATION

• Aim to be in the 75th percentile for employees meeting expected

performance levels

• Differentiated remuneration through an EVA based bonus scheme

• Scheme has an individual and collective component

• Payouts without cap

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EMPLOYEE ENGAGEMENT

• In tune – soliciting frequent feedback

• Brighter Banks to drive Values

• Policy changes

• Sick Leave is now trust-based

• Fexi-time, work from home and part time work options

• Maternity benefits strengthened

• Introduction of Paternity and Adoption benefits

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LEVERAGING TECHNOLOGY

• Integrated technology base

• Globally scalable

• Intuitive and simple to use

• Outsource non value adding activities

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QUICK WINS FROM THESE INITIATIVES

• Successfully integrated 8 acquisitions in the last 2 years

• Growth of 30% in FY12, ahead of the targeted 2020 growth rate of

26%

• Spike in engagement scores

• Turnaround of businesses e.g. Godrej Agrovet

• Attracting brighter talent

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KEY LEARNING

• Create a common language

• Take constant feedback and adapt – evaluate portfolio of HR toolkit

constantly

• Make things simple to use

• Drive through line management and walk the talk

• Culture shift takes long – we need to persevere

• HR fraternity should build expertise – act as a coach and not the

water-boy

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THANK YOU FOR YOUR TIME AND CONSIDERATION