Mr P M Kumar Presentation 130111


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NHRD Hyd :"Meet The Mentor"Jan13\' 2011

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Business Chairman
Group Corporate Dev
GMR group

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Mr P M Kumar Presentation 130111

  1. 1. Institution Building 15 January 2011 1 Presentation by P M Kumar Member Group Holding Board Business Chairman - Group Corporate Development
  2. 2. Institution Building Process SENTIENT PROCESS Collective Feelings HOW WE FEEL Focus on Mobilization & Belonging Focus in Empowerment Institution Building “The Psychological Contract” STRUCTURAL ANCHOR (WHAT WE DO ) Vision- Strategy- Structure- Roles- KRAs- Rewards etc. INSTITUTIONAL ANCHOR WHO WE ARE Philosophy -,Mission- Values- Founders Promoters’ History- Identity-’ Persona’ & Brand Focus on Efficiency/ ROCE Productivity etc. Focus On Renewal BUSINESS PROCESS HOW WE DO WHAT WE DO 2
  3. 3. Strategic Management Governance Vision Values & Beliefs Corporate Functions & capabilities Leadership development & Talent Management Empowered Organization Business Excellence Building blocks of Institution building Process driven management decision making with entrepreneurial spirit preserved Long term growth plan Risk measurement framework Family Governance guided by Family Constitution Corporate Governance Group alignment to a common objective Drive a uniform GMR culture Social responsibility initiatives Standardization of critical support functions Improve processes to best-in-class – Corporate Procurement, Information Technology, Finance, Legal, Assurance Group Function Councils Corporate Sustainability Building an Institution for perpetuity Matrix reporting structure Senior Leadership Team (SLT) Forum Delegation of Power – RASCI Group Performance Advisory Council (GPAC) Knowledge Management (KM) Capability building Succession planning E-enabled Performance Management Process Focus on Leadership, Stakeholders, Business Processes and Results Malcolm Baldridge Framework 3
  4. 4. Organizations & Institutions 15 January 2011 4 Organizations, when led with statesmanship and wisdom, mature into Institutions. The maturation process is an evolutionary and organic one, sustaining its relevance over time. An Institution is not only a set of traditions and time honored structures and norms - as is commonly understood. It is more - it is a 'gharana', a state of mind, a sense of belonging and ownership that is fundamentally "alive' in the minds of people and not in physical monuments & monoliths
  5. 5. Organizations Vs Institutions 15 January 2011 World View & Outlook Some key variables of an organization…. Environment Interface 1 Leadership 2 Roles 3 Membership 4 5 …….How do they differ from Institution
  6. 6. World View & Outlook 15 January 2011 6 Organizations Institutions 1 Defines itself primarily in the language of economics. Primary focus is on strategy, structure, process, roles, tasks, and results. Preoccupation with skills & results Predominantly short term in orientation Expedience and consequences are in focus Defines itself as a living organic Focus on mission, philosophy, aims, meaning, values, culture and belonging Preoccupation with wisdom Long term in approach and commitment Convictions and values are in focus
  7. 7. Environment Interface 15 January 2011 7 2 Organizations Institutions Engagement with the environment is fragile, reactive and suspicious. Are quick to adopt fads and fashions - Appear 'modern' to the observer. Many are short lived Are sensitive to their environments and are proactive Are progressive - Appear staid. Longevity is sustainable
  8. 8. Leadership 15 January 2011 8 Organizations Institutions 3 Leaders have to frequently explain their actions and defend their decisions. Suspicion and doubt about the intention of leaders is prevalent Leaders lead the way Succession is poor and ad hoc They seek "partnership in clarity". Leaders want to be certain and clear in their communication. Problems move upward to the leaders Faith in the leadership is strong. The benefit of doubt goes to the leaders Servant Leadership The process for succession is robust and emphasizes a combination of continuity and change. Leaders encourage and seek "partnership in ambiguity". They share their confusions and doubts with other members and invite ownership. Proposals move upward to the leaders
  9. 9. Roles Organizations Institutions 4 Individuals 'protect' their role boundaries and functional jurisdiction Inter-role spaces have no 'owners'. Many issues fall between two stools and the 'boss' orchestrates these through persuasion and arbitration. Protocols are established to manage inter-role engagements Members sustain each other's roles. Expertise permeates and spreads across roles Inter role spaces are attended to. Members volunteer to do what needs to be done in the inter-role spaces and help each other when tasks and roles are hazy. Sensitivity and awareness of what will make others succeed is often the basis of inter – role transactions. Win - win is important. 15 January 2011 9
  10. 10. Membership 5 Organizations Institutions Members operate largely from an 'economic' and /or a 'professional' contract. Their contributions are contracted for, bilateral by nature or mandated. 'Quid pro quo" is prevalent. Members are contractual in their outlook. They take a rigid and unappreciative view of unexpected developments. Members are concerned with individual and sect oral wellbeing. Their ambitions are self- centered. Members operate from predominantly a 'psychological' contract. Their contributions are mostly voluntary and unilateral by nature. Members are willing to be contextual in their view. They are tolerant of unexpected and idiosyncratic developments. Members are sensitive to the common good. Their ambitions are directed towards the well being and success of the centred. institution. 15 January 2011 10
  11. 11. Membership Contracts Economic Contract Professional Contract Psychological Contract Fundamentally, there are 3 kinds of Membership contracts…… The focus here is on money and life style. The primary concern is about the nature of work. What will my role be? The emphasis here is on the implicit psychological expectations. The sense of belonging is rooted in this contract. 2 3 1 Every member of an Institution will act from all three contracts, to a lesser or higher degree.
  12. 12. 5 Strains of engagement and commitment 15 January 2011 12 Associate Members Senior Management Organizations Institutions Professional Members Middle Management Institutional Members Junior Management Ɣ Rate of Conversion Institutional Talent Management Co- Founders Members Support Staff Founder members
  13. 13. Founder Members 15 January 2011 13 They have dared to rebel or dream and sculpt their dream into a reality. 1 They embody the seminal idea, purpose and mission of the Institution. 2 They are able to invite and foster partnerships in a shared destiny. 3 Founder members are the gatekeepers between the Institution and the rest of the world. 4 They inspire, define and defend. 5 Their personal identity often gets fused with the Institutional identity and they have great difficulty in letting go and handing over to successors - They sometimes treat the Institution as their personal property. 6 Successors find it very difficult to take their place and 'fill the idolized gap'. 7
  14. 14. Co -Founder Members They share the founder's dream. 1 They provide the much needed moral and psychological support and companionship to the founder. 2 Initially they may be seen as followers / disciples but very soon they command, within the Institution, a following of their own. 3 They are seen as role models and become mentors within the Institution. 4 This multiple sets of followers may fragment the Institution. 5 They act as gatekeepers between the founder and members of the Institution. 6 They amplify, codify and disseminate the fundamental principles, values and purpose of the Institution 7 When the founder does not let go, the co-founders may get disenchanted and their psychological contract may get ruptured. 8 As the Institution matures, they may have dreams of their own, experience suffocation and start another Institution, to become founders elsewhere 9 They often become involved in covert power struggles and sibling rivalry - First strains of 'rebellion' in the Institution may have a source here. 10 15 January 2011 14
  15. 15. Institutional Members 15 January 2011 15 These individuals join in at various points in the building of the Institution - either by invitation or by application. 1 They often represent the values of the Institution to the outer world. They are the 'valueholders'. 2 They almost always keep the Institution before themselves. They willingly go through inconvenience and harsh times for the good of the Institution. They choose to participate in dealing with the bad news. 3 They are able to influence non-reporting relationships effectively with their personal & professional creditability 4 Their psychological contract is strong – Seen as Custodians 5 These individuals give the benefit of doubt to the leaders of the institution and champion the cause of the Institution. 6
  16. 16. Professional Members 16 These individuals join the community, post start up and just prior to the growth stage. 1 Professional competence is primary focus 2 They bring values of excellence, a performance culture, relevant systems and a strong work ethic to the community. 3 What the organization does and how well the organization performs, is championed by these competent individuals. 4 Their economic and professional contracts are primary. Their psychological contract is weak and often considered unimportant by them. 5 They demand clarity of roles, expectations and resources. 6 They may have difficulty in influencing non-reporting relationships. 7 Quid Pro Quo is the salient engagement position. 8 Institutional members often see them as transient mercenaries. 9
  17. 17. Associate Members 15 January 2011 17 These individuals have just entered the community and are finding their feet, often as 'probationers'. 1 They look forward to induction, mentoring and acculturation by the community. 2 They are often in ' recipient' positions 3 They often put the work community and Institution 'on probation' as they are testing the waters. 4 Learning is a major theme in their professional contract, their economic contract is speculative and their psychological contract is of 'goodwill'. 5
  18. 18. Building Membership 15 January 2011 18 Institution Leaders & Role Models Mentors Retrain & Redeploy Integrity, vibrancy & effectiveness of a work community and Institution is influenced by Percentage of members in each commitment level The rate of conversion from one commitment level to the next Council Mentors for Values Acculturate & Involve in Institution Building EXIT How transition across Institutional & Professional Memberships are handled? This matrix provides a starting point….. Professional Membership H L Institutional Membership H L
  19. 19. Membership Matrix 15 January 2011 19 Individuals who are HIGH on both Institutional & Professional membership are ideal candidates for Leadership Positions - Demonstrating commitment levels akin to Co-Founder / Founder They may take up opportunities such as starting a diversification project, running an acquired business or leading an offshore business Sometimes, Co-Founders and Institutional members lose heart and in their low cycles may regress to a lower order commitment level May decide to restrict their psychological involvement to that of a professional member, for a period of time The integrity of Institutions is almost completely dependent on the integrity demonstrated by its people and their membership and commitment levels
  20. 20. Thank You 15 January 2011 20