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Inclusive Leadership
Rishab Nehru
Sonakshi Mallah
Nikhita Dadmi
Nayana M
IFIM
Bangalore
Death By Overwork
ka ro shi
Will Maruti rise from the ashes?
Manesar Incident (2012)
> supervisor slaps unhappy worker
> argument begins
> angry mob forcibly shuts the main gate
> prevent managers from leaving the plant
> use iron rods & door beams as weapons
> beat managers & break glass panes
> set office on fire
> 100 hospitalized
HR manager Awanish Dev died in the violence
Who will douse the invisible fire?
Aftermath
> Maruti declares lock-out on 21-7-12
> services of 500 workers terminated
> 12 union leaders & many workers arrested
> plant reopens on 21-8-12
> Haryana Police provides 500 personnel
> 200 in plant & 300 outside
> production loss = Rs 1400 crore
> brand image takes a hit
> market share falls to all time low of 38%
500 policemen to prevent violence
健一鮎川
Ken-ichi Ayukawa
New CEO
of
Maruti Suzuki
Early Life
> born in Nagasaki in 1955
> his father survived the 1945 nuclear attack
> wanted to be a scientist but studied law
> joined Suzuki’s headquarters at
Hamamatsu in HR department
> worked in Finance from 1988-93
> headed Suzuki in Pakistan from 2004-08
Teamwork
> Mr Ayukawa listens to problems of
workers
> workers gave 7 lakh suggestions in 2016
> this led to saving of Rs 280 crore
Together Everyone Achieves More
Leaders lay the
groundwork for their
team’s success.
Then they stand back &
let them shine.
-- Chris Hadfield
Empowerment & Humility
> Mr CV Raman was named chief engineer
of the Brezza project
> Mr Ayukawa let him take all the major
decisions
> this isn’t how the Japanese operate
> the compact SUV Brezza became a great
success
Accountability
> has 36 year experience at Suzuki
> visits dealers & talks to existing and
potential customers
> visits the plant at least 3 times a week
> observes shop-floor workers
> enhanced passenger safety by offering
dual airbags & ABS (anti-lock braking
system) with EBD in most of Maruti’s models
Huge fire at Subros Plant in 2016
Courage
> huge fire in Subros plant on 29-5-2016
> Mr Ayukawa went there immediately
> this plant makes ACs for Maruti cars
> production stopped in Maruti’s factories at
Gurugram & Manesar
> 90 days needed for Manesar plant to start
> 5500 cars needed per day to satisfy customer
demand
> he brought together all the suppliers & Denso
> plant resumed operations in just 14 days
Innovative Thinking
> Mr Ayukawa launched Nexa - a new sales
channel for premium cars in 2015
> 125 Nexa outlets opened in 9 months
> cars sold till now = 1.8 Lakh
> Maruti considered a technology laggard
compared to Hyundai
> 1st to launch Auto Gear Shift technology
in India with Celerio in 2014 & then in other
models like Alto K10, WagonR & Dzire
Mr Ayukawa at the launch of Nexa
People want to report only the
good things. If everything is
good, you don’t need to report
that.
Tell me the problem so that we
can find a solution.
-- Ken-ichi Ayukawa
Ailing Maruti Bounces Back
2013 2016
Market Share 38% 47%
Sales 42,000 56,000 crore
Profits 2400 4600 crore
Operating
Profit Margin
10% 16%
ROCE 14% 26%
Maruti extends Ayukawa’s tenure by 3 years
won Best CEO of a MNC at Forbes India
Leadership Awards (FILA) 2016 in Mumbai
Our Learning
1) Don’t treat your workers like robots.
2) A tree can’t grow at the cost of its roots.
3) Allow others to take decisions.
4) Never panic during a crisis.
5) Being complacent is the route to decline
and defeat.
Leadership Maruti Suzuki India Limited Rishab Nehru IFIM Bangalore

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Leadership Maruti Suzuki India Limited Rishab Nehru IFIM Bangalore

  • 1. Inclusive Leadership Rishab Nehru Sonakshi Mallah Nikhita Dadmi Nayana M IFIM Bangalore
  • 3. Will Maruti rise from the ashes?
  • 4. Manesar Incident (2012) > supervisor slaps unhappy worker > argument begins > angry mob forcibly shuts the main gate > prevent managers from leaving the plant > use iron rods & door beams as weapons > beat managers & break glass panes > set office on fire > 100 hospitalized
  • 5. HR manager Awanish Dev died in the violence
  • 6. Who will douse the invisible fire?
  • 7. Aftermath > Maruti declares lock-out on 21-7-12 > services of 500 workers terminated > 12 union leaders & many workers arrested > plant reopens on 21-8-12 > Haryana Police provides 500 personnel > 200 in plant & 300 outside > production loss = Rs 1400 crore > brand image takes a hit > market share falls to all time low of 38%
  • 8. 500 policemen to prevent violence
  • 10. Early Life > born in Nagasaki in 1955 > his father survived the 1945 nuclear attack > wanted to be a scientist but studied law > joined Suzuki’s headquarters at Hamamatsu in HR department > worked in Finance from 1988-93 > headed Suzuki in Pakistan from 2004-08
  • 11. Teamwork > Mr Ayukawa listens to problems of workers > workers gave 7 lakh suggestions in 2016 > this led to saving of Rs 280 crore
  • 13. Leaders lay the groundwork for their team’s success. Then they stand back & let them shine. -- Chris Hadfield
  • 14. Empowerment & Humility > Mr CV Raman was named chief engineer of the Brezza project > Mr Ayukawa let him take all the major decisions > this isn’t how the Japanese operate > the compact SUV Brezza became a great success
  • 15. Accountability > has 36 year experience at Suzuki > visits dealers & talks to existing and potential customers > visits the plant at least 3 times a week > observes shop-floor workers > enhanced passenger safety by offering dual airbags & ABS (anti-lock braking system) with EBD in most of Maruti’s models
  • 16. Huge fire at Subros Plant in 2016
  • 17. Courage > huge fire in Subros plant on 29-5-2016 > Mr Ayukawa went there immediately > this plant makes ACs for Maruti cars > production stopped in Maruti’s factories at Gurugram & Manesar > 90 days needed for Manesar plant to start > 5500 cars needed per day to satisfy customer demand > he brought together all the suppliers & Denso > plant resumed operations in just 14 days
  • 18. Innovative Thinking > Mr Ayukawa launched Nexa - a new sales channel for premium cars in 2015 > 125 Nexa outlets opened in 9 months > cars sold till now = 1.8 Lakh > Maruti considered a technology laggard compared to Hyundai > 1st to launch Auto Gear Shift technology in India with Celerio in 2014 & then in other models like Alto K10, WagonR & Dzire
  • 19. Mr Ayukawa at the launch of Nexa
  • 20. People want to report only the good things. If everything is good, you don’t need to report that. Tell me the problem so that we can find a solution. -- Ken-ichi Ayukawa
  • 21. Ailing Maruti Bounces Back 2013 2016 Market Share 38% 47% Sales 42,000 56,000 crore Profits 2400 4600 crore Operating Profit Margin 10% 16% ROCE 14% 26%
  • 22. Maruti extends Ayukawa’s tenure by 3 years
  • 23. won Best CEO of a MNC at Forbes India Leadership Awards (FILA) 2016 in Mumbai
  • 24. Our Learning 1) Don’t treat your workers like robots. 2) A tree can’t grow at the cost of its roots. 3) Allow others to take decisions. 4) Never panic during a crisis. 5) Being complacent is the route to decline and defeat.