1) The document discusses various aspects of leadership, strategy, people, partnerships, resources, processes, products and services at LTK. 2) Key aspects include developing vision/mission with stakeholders, monitoring organizational performance, engaging with customers, creating a culture of involvement, implementing change initiatives, developing strategic plans considering internal/external factors, developing people's capabilities through training, recognizing top performers, leveraging partnerships for resources and technology, managing finances and optimizing use of natural resources. 3) Processes, products and services are designed to optimize stakeholder value with distinct strategic planning driving key processes and periodic audits for improvement.

1. No. 30, 1st Floor, Pride Quadra, Bellary Road, Hebbal, Bengaluru,
Karnataka 560024
GROUP- 4
Shaivi Kharbikar, Sekhar Choudhury, Swastika Kundu,T arun Pandey,
Ankit Kumar Singh, Pratikshya Sahoo, Ipshita Shukla,S wapnil Tiwari ,
Manal verma

2. LEADERSHIP
1a.
• The Vision & Mission are arrived through involving senior leaders, employees and by
the periodic review based on changes in the stakeholder’s expectations.
• To review effectiveness of personal leadership behavior 360 degree appraisal system
is being introduced in 2011-12.
Eg :A.M.naik- Believe in scale and speed-scale in terms of largeness of plant and
production. Speed in terms of organization change. From the time he became the
director of the company, grew upto 80% in terms of financial statement. A.M. Naik
never took any project less than 500 cr.

3. 1b.
• Leaders at LTK monitor and improve organizations performance of
interdependent functional modules (manufacturing, HR, finance, purchase,
customer interface) driven by process owner (champion).

4. 1c.
• At LTK leaders engage with external stakeholders and customers to
understand their needs and expectations & develop appropriate approaches.
• Reporting to key stake holders & customers is done in very transparent
manner.
• Leaders create systems for innovation (examples: new model PC 300 mighty
excavator, new process)

5. 1.d.
• Leaders create culture of involvement with people by guiding & empowering,
developing ownership, entrepreneurship & improvement orientation.
• This is done by forming break through teams like COMET. Leaders inspire people
by participating in Kaizen/ Suggestion / employee of the quarter / team of the
quarter presentations and encourage them for their contributions. Leaders at all
levels assess and refine the process of inspiring people.

6. 1.e.
• Leaders at LTK have initiated several change management initiatives like BPR, project
Lakshya, ERP introduction, right sizing, Script 6500, S&OP, COMET 2012 & ERP R12.
• Change manager is supervised by steering committee comprising senior leadership of LTK.
• Operational effectiveness is assessed in ORCs; strategic effectiveness is assessed in the board
meetings as well as other forums such as war room meetings, quarterly review meetings.

7. STRATEGY
2.a.
• At LTK strategy is developed by Strategic Planning Group (SPG), understanding the needs
&
• expectations of the stakeholders and external environment.
• SPG is vested with responsibility of collecting/analyzing data from various sources and also
its assessment and refinement for adequacy.
• SPG has defined approaches to assess stakeholder expectations (viz, from shareholders,
customer, employees, suppliers, society, dealers and Govt ).
• SPG is the nodal group for understanding & anticipating political, legal & regulatory
changes & its impact on the organization.

8. 2.b.
• LTK follows a two stage strategic planning process.
• In the first stage L&T-CMB will take the inputs of the external environment
including competitor activity, SWOT analysis and customer requirement to
formulate plan for existing products and also any need for new products to plug the
gaps in the portfolio to serve current / future customers.
• This forms one of the inputs for strategic plan of LTK.

9. 2.c.
• Strategic plan is developed based on understanding internal capabilities
focused on two pillars the first one ‘core competency’ comprising capabilities
such as scale & speed. flexibility, technology, people capability & supply chain strength;
• the second one ‘Operational excellence’comprising of ‘production/quality/cost
competitiveness capability, people capability, safety in operations, schedule
adherence, Finance & risk management & sustainability reporting.

10. 2.d.
• As a part of Strategic planning process (SPP), 4 years (2010-13) Strategic Planning Document (SPD) is made that lays down
the strategic initiatives; key thrust areas, higher level objectives, deployment and yearly objectives.
• Incremental improvements are carried out in the form of kaizen, suggestions, value engineering exercises, cross-functional
teams and small group activities.
• For breakthrough improvements, a special task force with full-time members is created with specific mandates to achieve
clearly defined deliverables on a project mode.
• For the year 2011 strategic theme is cost competiveness (cost competency) a separate team named ‘COMET 2012’ is
working on this.
• Some of the key outcomes of SPP are new product/ variant introduction, pricing decisions,CAPEX, fund management,
New manufacturing line introduction, inventory control,Improvements in parts supply, career development, society
development projects etc,

11. PEOPLE
3.a.
• At LTK; leadership, strategic plan, people strategy and HRM processes are
interdependent and systematically deployed.
• People strategy that drives HR policy is arrived based on strategic plan, findings
from employee satisfaction survey, external assessments & benchmarking.
• People strategy is addressed through development of flexible work force, cross
functional team approach for cost optimization, nurturing innovation and
developing leadership.

12. 3.b.
• People knowledge and capabilities are developed through interventions like training, job rotation,
assigning to projects.
• Functional and managerial competencies for the various roles are identified and the gaps between
needed and existing competencies are filled by training and non training interventions.
• Training and development address orientation training, functional / managerial and core
development training like SDP, EDP and MDP. (SKILL, entreprenuer, managerial)
• Through leadership development process, top performers are assessed at assessment centers and
their strengths and areas of improvement are identified and necessary interventions are provided
to groom leadership talent.

13. 3.c.
• The performance of the employee is reviewed on regular basis, based on
which top performers are identified and people are rewarded.
• People are empowered to initiate improvements through kaizens, contribute
innovative ideas through suggestion scheme and participate in teams. People
are recognized by identifying employee of the quarter/team of the quarter
and through monetary rewards for suggestions resulting in savings and also
intangible benefits.

14. 3.d.
• LTK has various channels for communication to share; policies and
procedures, business related information, day to day communications,
knowledge sharing etc,. Communication effectiveness is reviewed
periodically. Various committees enable people engagement and involvement
in operational improvements.

15. 3.e.
• People are cared through various welfare schemes for the employee & family.
Sports and finearts programs for employees and family members are enablers
for work life balance. People are encouraged to participate in CSR activities
as volunteers in various projects undertaken by LTK and ‘Surabhi’ which is
team of female employees & spouses of LTK employees.

16. PARTNERSHIP AND RESOURCES
4.a.
• Two main partners-model bucket and attachment pvt.ltd, Rishi consfab pvt.ltd.
• Partnerships and resources are the key enablers for deployment of policy & strategy
across the organization.
• Partnerships in the area of material supplies, technology, services, logistics, in
sourcing are leveraged for mutual benefit.
• Optimum utilization of resources & its conservation ensures no adverse effect on
environment.

17. 4.b.
• LTK leverages the competency of JV partners; Komatsu: for technology, futuristic
products, manufacturing know how & L&T: for Sales and Service.
• LTK has forged enduring partnership with suppliers (dedicated vendors & long
term vendors) for supply of fabricated structures, excavator cabins, hydraulic hoses,
precision castings etc,. In sourced partnerships for material handling and ware house
management.
• Partnership in service areas like L&T-infotech for IT support; IIMs, XLRI, DDI
(development dimensions international) for training & development (through Corp.
HR).

18. 4.c.
• At LTK finances are effectively managed by well established budget and
performance
• management system.
• Treasury management ensures cash flow for CAPEX and working capital
requirements.
• LTK leverages credit ratings from agencies like CRISIL/ICRA to keep down the
interest cost. During 10-11 LTK was able to borrow for short term at sub 7.25%
rate & commercial paper market at 4.25% which is bench mark.

19. 4.d.
• Building, equipment, materials and natural resources are managed in
sustainable way.
• Targets for equipment uptime is at 97%, utilization at 90% and OEE of
critical assets at 70%.

20. 4.d.
• LTK effectively optimizes natural resources by various improvement
projects.
• Technology is effectively managed at LTK with road map for product and
process improvements over the years for ex: KOMTRAX technology for
tracking m/c performance was introduced in 2010.
• Cylinder manufacturing process improvement technology of roller
burnishing is in pipeline for the year 2011.

21. 4.e.
• At LTK Information and knowledge are effectively managed.
• Our IT policy states its commitment ‘to provide consistent & reliable
information to users to leverage IT for business benefit’.
• IT enables interface for real time transactions between LTK & suppliers.
Oracle ERP custom built application facilitates knowledge sharing and
decision support.

22. PROCESSES, PRODUCT AND SERVICES
5.a.
• At LTK Processes are designed & managed to optimize stakeholder value.
• Over the years distinct strategic planning phases have driven the key processes, the
current period 2010-13 being guided by SPD.
• All key processes viz,. strategic planning process, Manufacturing, SCM, new product
introduction, quality, HR, finance, IT & S&OP are effectively managed by
designated process owners with defined agenda having critical success factors.
• The processes are audited periodically by certified auditors.

23. 5.b.
• Products and services are developed to create optimum value for the customer.
• Voice of customer is captured through customer satisfaction survey, customer meets, feedback from sales
and service engineers and through customer complaints.
• The same is one of the factors considered in introducing new products/ variants/applications or improved
features in the product.
• Apart from introducing new products and variants innovative ideas like speed controller and auto decel
feature has potential for in reduction of fuel consumption upto 25542 kilo litres and CO2 emissions upto
69046 tons per year.
• Some of the value added services to customers are special applications like cutter & pile driver and tunneling
attachments.

24. 5.c.
• Strong manufacturing base and skilled manpower of LTK and country wide
distribution and service network of L&T, its brand equity and latest
technology products & superior reliability are the USP for our products.

25. 5.d.
• Products of LTK are produced and delivered through operations that has
been continuously evolving.
• Manufacturing organization has been stream lined through BPR.
Manufacturing flow lines are introduced in all PUs in phased manner.
• S&OP cell is formed to optimize resources by accurate / stable forecast and
to enhance product & spare parts delivery efficiency.

26. 5.e.
• Customer relations are managed & enhanced through effective customer
access mechanism.
• Customer relationship is managed by sales and service engineers at
territories, backed by zonal & divisional and marketing team. For better
upkeep and maintenance of products, training is provided to customers at
dedicated product training centre.

27. CUSTOMER RESULT
Perception Measures
• New products developed on the basis of market research.
• Segment analysis carried out in 6 regions infer that LTK’s product enjoy higher
rating than competitors.
Performance Indicators:
• Market share of LTK products has increased from 28% to 29.4% .
• LTK has fulfilled the Emission norms, as a result less complaints.
• MTBF for all models show positive trend.

28. PEOPLE RESULT
Perception Measures:
Analyzing Executive Support System data from 1998 to 2010 shows consistent and positive trend in people perception under
various parameters such as:
(1) organizational values & ethics
(2) work environment
(3) team work & communication
(4) compensation & benefits is not favorable as this is an attribute influenced by collective bargaining.
(5) employee relations
(6) employee welfare schemes
(7) motivation & job performance
(8) leadership & training
(9) career development as well as overall employee satisfaction index.
The perception of unionized employees for Gap analysis for key issues for improvement are done and addressed through
suitable enablers. People perception on service functions like HR, administration and IT show favorable response.

29. Performance Indicators:
Internal performance indicators over the years show favorable trends in various parameters like
(1) number of people promoted
(2) participation in cross functional team.
(3) training man-days
(4) training effectiveness
(5) participation in safety programs
(6) awards to employees children.
CTC for unionized employees compares favorably being more than industry average. Incentive
analysis shows favorable trend. Attrition rate over the years has remained < 3%.

30. SOCIETY RESULT
• Perception Measures
Society perception survey conducted at Dyavarahalli village shows favorable
response. LTK has won several awards & accolades such as safety awards from
CII(SR) & Genentech foundation, innovative company in energy efficiency
from BCIC, certification for EHS(EMPLOYEES HEALTH SCHEME) by BV
and outstanding garden award from horticultural dept. Govt. of Karnataka.

31. • Performance Indicators:
LTK subscribes to corporate sustainability reporting as per GRI G3 guidelines.
LTK has defined objectives and targets for economic, environment and society
development initiatives. Thrust areas for CSR are education, health,
environment and rural development. Several programs are carried by Surabhi
over the years & number of project beneficiaries show positive trend. EHS
management ensures improvement in safety performance, conservation of
natural resources and compliance w.r.t environment issues.

32. KEY RESULTS

33. THANK YOU