1 Copyright © 2012 Mahindra & Mahindra Ltd. All rights reserved.

July 25th 2014

Building A Happy Organization

Session by: Prince Augustin

EVP, Group Human Resources

Mahindra Group

2

Wealth and Happiness

Qatar

Luxembourg

Singapore

Norway

Brunei

USD 98814

USD 78610

USD 64584

USD 54947

USD 53431

1

2

3

4

5

Wealthiness

Rank Country GDP Per Capita

Happiness

Rank

Denmark

Switzerland

Iceland

Austria

Bhutan

USD 34600

USD 46430

USD 35600

USD 32700

USD 1400

19

7

22

11

114

1

2

3

4

8

3

What has Bhutan Done Differently to get there

GNH Index – Reflects the happiness and general well being of Bhutanese people Includes nine core domains that are regarded as components of happiness

GNH – Gross National Happiness “The bridge between the fundamental values of kindness, equality and humanity and the necessary pursuit of economic growth” Jigme Khesar, King of Bhutan

GDP GNH

Source – Center for Bhutan Studies

4

Happiness as described by Some Great Visionaries

5

6

For what is a man profited, if he shall gain

the whole world, and lose his own soul?

- Holy Bible

7

Video - Winning Hearts

8

9

Happiness is the meaning and

the purpose of Life, the whole

aim and end of Human

existence

- Aristotle

10

Reflection on Happiness

HAPPINESS

Purpose

Thought Inner Self

11

Martin Seligman- Happiness Construct

Meaning / Purpose

Engagement

Pleasure

Unique

Pathways

12

SMH OMH

Subjective Measures of Happiness (SMH) – Life Satisfaction, General state of Happiness

Objective Measures of Happiness (OMH) – Education and occupation achievement

+

+

+

+

+ -

Martin Seligman – Happiness Construct

α

α

α

Construct

Meaning / Purpose

Engagement

Pleasure

13

Martin Seligman- Happiness Construct

Meaning / Purpose

Engagement

Pleasure

Unique

Pathways

14

So what can Leaders do to create happier Organizations

Build a

Purposeful

Organization

Drive

engagement

15

The Mahindra Context –

Driving Purpose and Engagement

16

The Story of Rise.

17

A Changing Global Paradigm The VUCA World

Complexity

Uncertainty

Volatility

Ambiguity

Exponenti

al Change

Lack of

Trust

18

Creating Tomorrow’s Company

19

May be mistaken for a PSU

40’ish, middle-aged, rugged,rural

Conventional, risk -averse

Rigid, finds safe ways to do things

Trying to be creative, to keep up with the

world

Source: B-school campuses 2008

The Story a few years back…

20

The Business Reality

Mahindra acquires Satyam

21

USD~ 16.5 Billion

11 Business Sectors

&

18 Industries

AUTOMOTIVE SECTOR

Automotive

FARM EQUIPMENTSECTOR

Farm Equipment

Agri-Business

Energy

Construction Equipment

INFORMATION TECHNOLOGY SECTOR

Information Technology

MAHINDRA PARTNERS

Steel

Retail

Industrial Equipment

Logistics

Leisure Boats

Solar Energy

HOSPITALITY SECTOR

Hospitality

FINANCIAL SERVICES SECTOR

Financial Services

Insurance Broking

Rural Housing Finance

SYSTECH SECTOR

Aerospace

Components

Steel

Consulting

INFRASTRUCTURE & REALITY SECTOR

Infrastructure

Real Estate

TWO WHEELER

Two Wheelers

AFTER MARKET

Mahindra First Choice Wheels

Mahindra First Choice Services

DEFENSE SYSTEMS

Defense

Mahindra Group: Business Portfolio

...in >100 countries across the globe...

22

What was our brand identity in 2010?

How do we take the next Leap?

23

The Story of Rise

Redefine the way we look at ourselves

24

StrawberryFrog findings on our group-

wide common cultural elements

• Over-cautious

• Civil-service mentality

• Insular

• Short-term thinking

DECLINING

Aspects of the culture that are on the wane

• Empowerment

• Diversity

• Integrity

• Compassion

ENDURING

Aspects of the culture that will always endure

• Global mindset

• Challenger-spirit

• Ingenuity

• Social Responsibility

EMERGING

Aspects of the culture that are on the rise

25

Our cultural strengths were converted into

3 themes for consumer research 7 Nations and 13 Markets

We conducted 62 Ethnographic Interviews

and 16 Discussion Groups

With more than 150 consumers

• India

• USA

• Brazil

• South Africa

• Egypt

• China

• Thailand

Global Semiotic Analysis of how to

leverage ‘India’

equities globally – India, UK, North

America

Accept No

Limits

Alternative

Thinking

Driving

Positive

Change

Integrity

Social

responsibility

Compassion

Ingenuity

Diversity

Empowerment

Challenger

Spirit

Global Mindset

26

Cultural Transformation

Business Transformation

Accepting No

Limits

Alternative

Thinking

Driving

Positive

Change

Rise.

27

The Strategic frameworks for Change

Management

1. Edger Schein model of Organizational Culture

2. John Kotter's 8 Step Change Management model

3. McKinsey Influence Model

28

Organizational Culture Edgar Schein

Culture

Rituals Language

Symbol Stories

29

The 8 Step Change Management Model John Kotter

Creating a climate for

Change

Engaging and enabling the Organization

Implementing and Sustaining

Change Incorporate Changes into the Culture

Keep the Momentum for Change moving

Plan for & Create Short term Wins

Empower others to act on the Vision

Communicate the Vision

Develope a Vision

Create a powerful guiding Coalition

Establish a Sense of Urgency

30

The Influence Model The Irrational Side of Change Management, McKinsey Quarterly

31

Preparing for the Change

32

Senior Leaders' Workshops

Date Workshop Target

Audience Output

March -10 Leading the

Brand

Business &

HR Heads

Leadership team to

demonstrate by

walking the talk

Enabling & Disabling

behaviors

Empowerment

Learning culture

Caring organization

Long-term perspective

NOT “Walk the Talk”

Substandard processes &

systems

‘One more initiative’

Products & services not upto

world-class standards

KEY ENABLERS KEY DERAILERS

33

Senior Leaders' Workshops

Date Workshop Target

Audience Output

March -10 Leading the

Brand

Business &

HR Heads

Leadership team to

demonstrate by

walking the talk

Enabling & Disabling

behaviors

April-10

Living the

Rise with

Strawberry

Frog

GEB, Business

& HR heads

Linking customer

processes with Rise

(Big Ideas)

Linking HR processes

with Rise (Big Ideas)

Enablers

Derailers

34

Living the Rise Workshop Outcomes

Affinity Buckets Descriptors

Communication formats/ Forum

Innovative communication for improving bottom up communication, knowledge sharing and networking

Customer centricity Developing insights into customer needs and empathy for delivery of better product / customer experience

Reward Recognition including mechanisms to weed out

R/ R to encourage contra point of view, critique. Encourage risk taking and learning from mistakes

Getting Brand Ambassadors on board i.e. Resourcing

Through right recruitment, on boarding and Induction processes

Capability building / development

Training for skills and coaching for right attitude (Including Competency Based Development)

35

Empowerment Empowered to innovate or deliver a superior customer experience

Ideation Time and space for free ideation by design Creating Business / Work passion

To create excitement around work, engaging employees with quality work

Enjoyable Work place The ambience, events, get-together, socializing with Peers, developing bonding along common interests / chilling out

Social Responsibility CSR & going beyond business Behavioral Audit 360 degrees appraisal focused on Rise Supportive

behaviors

36

Discovering the Core Purpose: Earlier

EARLIER CORE PURPOSE

Indians are Second to None in the World. The founders of our nation and

of our company passionately believed this. We will prove them right by

believing in ourselves and by making Mahindra & Mahindra Limited

known worldwide for the quality of its products and services.

37

Discovering the Core Purpose: Now

CORE PURPOSE

We will challenge conventional thinking and innovatively use all our

resources to drive positive change in the lives of our stakeholders and

communities across the world, to enable them to Rise.

Alternative

Thinking

Driving

Positive

Change

Accepting No

Limits

38

The Three Rise. Pillars

WHAT ? HOW ? WHY ?

Alternative

Thinking

Driving

Positive

Change

Accepting No

Limits

• Think big, think global

• Challenge conventional

thinking

• Agility with discipline

• Reasoned risk-taking

• Orientation for

Excellence

• Seek breakthrough

solutions

Rise by daring to

disturb the universe

• Pursue new

approaches

• Celebrate diversity

• Focus innovation on

customer needs

• Invent your way to

growth

• Frugal mindset

Rise with your

ingenuity

• Customer sensitivity

• Build quality to

delight customers

• Entrepreneurial

Engagement

• Forge strong

relationships

• Work hard. Have fun.

Rise by shaping

destinies

39

Rise: House of Mahindra

CORE PURPOSE

We will challenge conventional thinking and innovatively use all our resources to

drive positive change in the lives of our stakeholders and communities across the

world, to enable them to Rise

- Think big, think global

- Challenge conventional

thinking

- Agility with discipline

- Take well reasoned

risks

- Seek breakthrough

solutions

Accepting No

Limits

- Pursue new

approaches

- Celebrate diversity

- Focus innovation on

customer needs

- Invent your way to

growth

Alternative

Thinking

- Step into your customer’s

shoes

- Build quality to delight

customers

- Forge strong relationships

- Work hard. Have fun.

Driving Positive

Change

RISE BY DARING TO DISTURB

THE UNIVERSE RISE WITH YOUR

INGENUITY

RISE BY SHAPING

DESTINIES

CORE VALUES

Good Corporate Citizenship | Professionalism | Customer First | Quality Focus |

Dignity of the Individual

40

Senior Leaders' Workshops

Date Workshop Target

Audience Output

March -10 Leading the

Brand

Business &

HR Heads

Leadership team to

demonstrate by

walking the talk

Enabling & Disabling

behaviours

April-10

Living the

Rise with

Strawberry

Frog

GEB, Business

& HR heads

Linking customer

processes with Rise

(Big Ideas)

Linking HR

processes with Rise

(Big Ideas)

May-10 HR

Fraternity

Senior

Manger &

above - HR

Linking HR processes to the Rise philosophy

•Enablers

•Derailers

•Affinity Buckets

•Core Purpose

•House of Mahindra

41

HR

Levers

Leadership

Competency

Communication &

Internalization

Capability Building

for Change

Management

Recruitment

On-boarding

Learning and

Development

Talent

Management

Performance

Management

System Reward &

Recognition

One Mahindra

signature experience

FY 13

The Wheel

Of Change

FY 12

HR Fraternity Meet Outcomes

42

Reengineering the HR

Levers

43

Structure follows strategy

Executive Sponsor: C & MD

Steering Team:

HR Council Review Team

Program Office

Rise Team: HR/Communication/ IT

enablement

Rise Sector

Champions

Rise Location

Champions

HR Levers

44

Senior Leaders' Workshops

Date Workshop Target

Audience Output

March -10 Leading the

Brand

Business &

HR Heads

Leadership team to

demonstrate by

walking the talk

Enabling & Disabling

behaviours

April-10

Living the

Rise with

Strawberry

Frog

GEB, Business

& HR heads

Linking customer

processes with Rise

(Big Ideas)

Linking HR

processes with Rise

(Big Ideas)

May-10 HR

Fraternity

Senior

Manger &

above - HR

Linking HR processes to the Rise

philosophy

Dec-10

Annual

Blue Chip

Conference

500+ senior

Mahindra

Leaders

Sense of Urgency to drive the change was

initiated by Mr. Anand Mahindra, the then

Vice Chairman and Managing Director

45

The Launch: 17 January 2011

Anand on Rise.

46

47

AUSTRALIA Pune

Rajkot

Chakan

Rudrapur

48

External Communication Revamped Website

49

Senior Leaders' Workshops

Date Workshop Target

Audience Output

March -10 Leading the

Brand

Business &

HR Heads

Leadership team to

demonstrate by

walking the talk

Enabling & Disabling

behaviours

April-10

Living Rise

with

Strawberry

Frog

GEB, Business

& HR heads

Linking customer

processes with Rise

(Big Ideas)

Linking HR processes

with Rise (Big Ideas)

May-10 HR

Fraternity

Senior

Manger +

Linking HR processes to the Rise

philosophy

Dec-10

Annual

Blue Chip

Conference

500+ senior

Mahindra

Leaders

Sense of Urgency to drive the change was

initiated by Mr. Anand Mahindra, the then

Vice Chairman and Managing Director

Dec-11

Annual

Blue Chip

Conference

500+ senior

Mahindra

Leaders

Taking the Rise journey forward by

launching the Group Aspiration

50

Group Aspiration: Video

Anand on Group Aspiration

51

52

Accepting

No Limits

Alternative

Thinking

Driving

Positive

Change

“We will challenge conventional thinking and innovatively use all our resources to drive

positive change in the lives of our stakeholders and communities across the world, to

enable them to Rise.”

CORE PURPOSE

Top 10 global Auto

brands Deliver Farm

Tech Prosperity

CORE VALUES : Good Corporate Citizenship | Professionalism | Customer

First | Quality Focus | Dignity of the Individual

BR

AN

D P

ILL

AR

S

By 2021, Mahindra Group to be amongst the

top 50 globally most admired brands

Transforming urban landscapes by

creating sustainable communities

We will be among the Top 5 VO companies of the

world in terms of member base by FY 2016

To be a leading financial services

provider in semi-urban and rural India.

53

HR

Levers

Leadership

Competency

Communication &

Internalization

Capability Building

for Change

Management

Recruitment

On-boarding

Learning and

Development

Talent

Management

Performance

Management

System Reward &

Recognition

One Mahindra

signature experience

FY 13

The Wheel

Of Change

FY 12

54

1. Internal Communication

Rise Portal

Over 400 Rise stories shared on the portal

Rise Mall for Rise Merchandising

Sharing of Best Practices in HR

>50,000 visits

monthly!!!

55

One Competency Framework for our group

Integrated with all HR Processes

Competency Internalization workshops for employees in

all 11 sectors, 30,000+ employees covered

2. Mahindra Leadership Competencies

56

• Strategic Business Orientation

the courage to think beyond

• Leadership through Sustainability

focus on triple bottom line

• Innovation led Transformation

using a “whole brain” approach….

• Customer Focus

customer at the core

• Leveraging Human Capital

transforming potential to performance

• Weaving Passion & Energy at work

joy of work…

• Result Orientation with Execution Excellence

first time right, every-time…

2. Mahindra Leadership Competencies contd

57

Competency Based

Recruitment

1000+ Managers trained for

Competency Based Recruitment

Use of tools like OPQ32 to bring in

objectivity

E- Module for Recruitment

3. Recruitment

58

Standardized Induction

Module created By Group HR, hosted on

Rise Intranet

I’M Mahindra Induction workshop for

Senior leaders

Updated after every 6 months, 3 Updates

done

4. Induction

59

Development of MGL Framework

Talent Management Manual for all

Sectors

5. Talent Management

Domain Expertise

Mahindra Leadership Competencies

Mahindra Global Leader

Multiple Disciplines

Winning across Cultures

Diversity of Experiences

60

Total Rewards Portal

Rise Awards at Shopfloor

6. Rewards and Recognition

61

Reinforcement: Rise Awards

.

2011

Awards

2013

Awards

2012

Awards

62

Ac

ce

pti

ng

No

Lim

its

• Deep Dive study to check reason s for variation in ratings of the appraises

• Reverse feedback (180 degree) for managers

Alt

ern

ati

ve

Th

ink

ing

• Post appraisal feedback / grievance process

• KRA/goal audits by HR by seeking help from panel of line managers to review the quality of goals

• Promotion Review Committee to scrutinize the promotion recommended cases

D

rivin

g P

os

itiv

e C

ha

ng

e • For low-performing

employees, there should be a robust Performance Improvement Program in place

• Trainings to be imparted to the appraisers on quality goal setting, giving and accepting feedback etc.

• Tracking mechanism for Performance Appraisal Discussion and feedback to be taken

9 Recommendations for PMS which are aligned to Rise Pillars

7. PMS

63 Mahindra Leadership University Architecture

8. Learning and Development

Governing

Council

Manufacturing

Businesses

Services

Businesses

IT Business

Common Functions

• Strategy • Sourcing Academy

DOMAIN ACADEMIES

Rise Leadership Competencies Core Purpose & Values The Mahindra Way

Academy of Leadership Development

Innovation Academy

• HR

• Sales &

Marketing

• Finance

• IT • Technical

Academy

• Manufacturing &

Quality Academy

64

8. Learning and Development Contd..

•Active Listening •Asking Powerful Questions •Giving and Receiving Feedback

SUSTAINED BUSINESS OUTPERFORMANCE

Reflective Conversations

To build High Performance Organizations

65

Mahindra Engagement Model – For Officers

66

Workmen Engagement Model

67

How it all scales up!!!

68

0% 20% 40% 60% 80% 100%

Sufficient efforts been made inthe organization/sector to bring

about awareness andunderstanding regarding RISE

Sufficient efforts are being madein my organization / sector to

implement RISE

79

77

14

16

7

7

%FavourableResponses (4&5Ratings)

%NeutralResponses (3Rating)

%UnfavourableResponses (1&2Ratings)

4.06

4.12

Average

Score

Source: Employee Engagement Survey

N = 12,000

Employee Feedback

69

Summary

70

The 8 Step Change Management Model John Kotter

Extensive Top Management Workshops cascading the urgency of

change downwards

A powerful structure to lead whole change management initiative

Mahindra Group Aspiration to give direction

Creating a climate for

Change

Develop a Vision

Create a powerful guiding Coalition

Establish a Sense of Urgency

71

The 8 Step Change Management Model

Standardized communication roll-out for both internal and external

stakeholders

Encouraging formation of team across the organization

Creating alignment through Rise stories and Rise Awards

Creating a climate for Change

Engaging and enabling the Organization

Plan for & Create Short term Wins

Empower others to act on the Vision

Communicate the Vision

John Kotter

72

The 8 Step Change Management Model

Incorporating Rise into the Mahindra DNA through HR Leavers

Focused interventions in each of the HR Levers co-created within teams

Rigour in execution brought through the robust structure and continuous

monitoring

Engaging and enabling the Organization

Implementing and Sustaining

Change Incorporate Changes into the Culture

Keep the Momentum for Change moving

Creating a climate for Change

John Kotter

73

74

Building a Culture of Rise.

RISE Pillars

HR Levers

Mahindra DNA

75

Video: Spirit of Mahindra

76

77

Q&A

78

Thank You