SUCCESSION PLANNING AT TATA CONSULTANCY SERVICES

FACULTY GUIDE: ARUN SEKHRI
Gupta(HRF010)

Submitted by:
Minita Jains chereath(HRF038) Prachi Tandon(HRF 051)

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Acknowledgement

This is to acknowledge the quality help that was provided by the Institute-ITM and the related faculty in successfully completing the HRP project on “SUCCESSION PLANNING at TCS”. We are highly obliged and thankful to the faculty, PROF.ARUN SEKHRI for all her patient guidance and help in successfully completing the project.

TABLE OF CONTENTS
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1. Succession Planning..............................................................4 -

MINITA

2. History of TCS……………..................................................5 - MINITA 3. TCS SUCCESSION PLANNING.........................................6MINITA

4. Management of high potential talent………………………..9- MINITA 5. Employee Life Cycle………………………………………116. Document life cycle………………………………………..16MINITA MINITA

7. Process adopted by HR in TCS…………………………….19- PRACHI 8. Training feedback…………………………………………22- PRACHI 9. Multi rater feedback……………………………………….30- PRACHI 10. PERFORMANCE MANAGEMENT SYSTEM …………..31- PRACHI 10. Applicant evaluation……………………………………….42- JAINS 11. Talent Review………………………………………………43- JAINS 12. Job Rotation ………………………………………………..46- JAINS 13. Conclusion…………………………………………………..47- JAINS 14. Workforce Plan(EXAMPLE)………………………………..48- JAINS 15. References……………………………………………………53

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SUCCESSION PLANNING
Organization does succession planning in order to ensure an organization's continued success, you need to determine who will eventually replace employees currently in key positions. The Plan Successions business process in Human Resources enables you to identify candidates for key positions, anticipate organizational bottlenecks, and develop multiple career paths for individuals who are ready for promotion. To implement the Plan Successions business process: • • • Perform the prerequisite tasks. Create the succession plans. Build the succession trees.

Once the succession trees are in place, we can review career summaries, monitor the progress of key employees, track changes to key positions, and make adjustments to successions plans as the requirements of the organization change over time.

Integration and Prerequisite
Integration The Plan Successions business process integrates with: • • • • Prerequisite The following tasks should be performed before setting up the Plan Successions business process in Human Resources: • • • • • • Set up HRMS core data. Set up Human Resources job data. (optional) Set up competencies. (optional) Set up career plans. Define key positions. Identify potential candidates. The Manage Competencies business process in Human Resources. The Plan Careers business process in Human Resources. The Manage Positions business process in Human Resources. PeopleSoft Enterprise Talent Acquisition Manager.

ABOUT TCS
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TCS became a publicly listed company. and mutually beneficial relationship. TCS also provides product and industrial engineering services. Wipro and Satyam. In 1999. TCS Mission: To providing excellence: to help customers achieve their business objectives by providing innovative. Unit heads 5 . TCS pioneered the factory model for Y2K conversion and developed software tools which automated the conversion process and enabled third-party developers and clients to make use of it. It is the largest provider of information technology and business process outsourcing services. and to actively engage all stakeholders in a productive. The first client-dedicated offshore development centre was set up for Compaq In 1989. the group TATA. excellence. the company went through an internal restructuring exercise that executives claim would bring about agility to the organization TCS SUCCESSION PLANNING Succession planning at strategic and tactical levels is carried out for key positions as identified by the Leadership team. During 2004. TCS saw outsourcing opportunity in E-Commerce and related solutions and set up its E-Business division with ten people. one of the first business computer manufacturers. In the early 1990s. Euro. founded by Jamsedtji Tata in 1868 and one of India’s most respected institutions today. and fostering an environment of learning and sharing – will get us there. IT solutions and services. Tata Consultancy Services started exporting its services. By 2004. In 2008. It was by far the most complex project undertaken by an Indian IT company. much later than its rivals Infosys. collaborative. The company is controlled by textiles and manufacturing conglomerate Tata Group. TCS's first international order came from Burroughs.Tata Consultancy Services Limited (TCS) software services and consulting company headquartered in Mumbai. Company history In the early 1970s. leading change. It is part of one of India's largest and oldest conglomerates. Switzerland. the Indian IT outsourcing industry grew tremendously due to the Y2K bug and the launch of a unified European currency. On 9 August 2004. TCS delivered an electronic depository and trading system called SECOM for SIS SegaInterSettle.Bioinformatics. based on role criticality to business and organizational growth. TCS values – integrity. TCS is proud of their heritage as part of the Tata Group. respect for the individual. In 1981. E-Business was contributing half a billion dollars (US) to TCS. the Tata Research Development and Design Centre (TRDDC). best-in-class consulting. TCS set up India's first software research and development centre. TCS ventured into a new area for an Indian IT services company . India. as well as strategic consulting and project management. TCS Vision: To be one of the top 10 global companies by the year 2010.

Sales Leadership Pool. Pages used to create Career Plan.identify. assess and groom a talent pool of successors through mechanisms such as iCALMS. Path & Succession Plans 6 . LDPs and the recently piloted High Potential management program.

7 .Succession planning at the operational level is practiced through the identification and grooming of back up Project Leaders (PLs) for all projects. TCS new organization structure encompasses succession planning wherein each operating unit has a Deputy Head being groomed to take the lead in the future.

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a handover – takeover process will be followed. knowledge transition is a necessity. The most effective step in this expertise transition consists of On-the-Job transition and Playback session. where an existing or outgoing associate inducts the new consultant on the project specific knowledge or expertise. In almost all the cases. Rewarding Exemplary Performance Coordinate with L&D for closure Metrics Review Feedback Recognition by Senior Management In a large and extended duration program.MANAGEMENT OF HIGH POTENTIAL TALENT Identification of Pha se 1 Identification of High Potential Associates Meeting with unit Heads Organizational Initiatives Assigned Preparation and Deployment of IDPs Periodic Progress Review Phas e-2 Action on outcome of meeting Tracking to closure. Updating Profiles. 9 . It is required when a new person joins the team and need to quickly come to speed.

processes and procedures will be put in place to ensure Avery company-specific and process-specific knowledge will be retained independent of an employee. This plan also ensures that a complete knowledge management strategy will be in place to manage knowledge sharing in the Document Life Cycle 10 .Expertise transition TCS knowledge retention methodology plays a crucial role for succession planning. Knowledge succession will be managed through an Employee Life Cycle and Document Life Cycle. During each step in the Employee Life Cycle.

TCS employee assigned to avery account 3) Ex. The table below shows the tasks assigned to the candidates along with the recommendations from their superiors: 1) Maintain detailed job descriptions for all positions in Avery account 2) Create update procedures to maintain job description documents 11 .TCS employee who is scheduled to transfer out of Avery Account or TCS Employee Who is scheduled to leave TCS CANDIDATE TCS provide the candidates with certain tasks which the employee need to attain in order to gain knowledge and also in order to retain the knowledge which can further help in succession planning.Candidate pool 2) Avery account employed.avery account employee.Knowledge retention methodology Employee Life Cycle The process of succession planning in TCS is divided into three categories: 1) Candidates.

3) Create reporting plan to monitor employee turnover and mitigation plan to re-deploy to Avery account in short turnaround time 4) Create retention plan to address turnover Candidate Pool 12 .

bench resources and training plan for bench resources) to re-deploy to Avery account in short turnaround time Create retention plan to address turnover Create retention plan to address turnover Open Chandra (Owner) Planning on bench resources. Open AVERY ACCOUNT EMPLOYEE 13 .g.Description Maintain detailed job descriptions for all positions in Avery account Action Inventory all positions for Avery account Status Complete Comments Need to have job descriptions in central storage location Need to have job descriptions in central storage location Create job descriptions for all positions Complete Avery approves draft job descriptions Create update procedures to maintain job description documents Create update procedures to maintain job description documents Complete Open Chandra (Overall owner of procedures) TCS Process Managers will update Create reporting plan to monitor employee turnover and mitigation plan to redeploy to Avery account in short turnaround time Create reporting plan to monitor employee turnover in Avery account Open Chandra (procedures) TCS Process Managers will update. Chandra (Owner) – Needs to be documented. back-up training this all needs to be documented. Create mitigation plan (e.

Document must include the following details: a. TCS Employee Assigned to Avery Account 1. FA) For job specific training b. Sequence of training c. new hire will take test after each training module) Status Open Comments TBD Description Create process/procedure to bring new employees onboard. Format of training 1. The table below shows the tasks assigned to the candidates along with the recommendations from their superiors: During Induction Period: 1. Objective of each training module (AP. if there are any changes to the procedure then they must follow document change control procedure 2) Add “Tribal Knowledge” to the level 3 procedure when appropriate 3) Create or update FAQ based on actual questions brought by the team A.Success criteria to pass the training – (for example.Document which formats of training will be used and when they will be used. Classroom 14 . Create policies/ procedures to bring new employees onboard During Induction Training Avery Induction Training Job Specific Training On day to day basis the employees need to acquire knowledge on: 1) Update level-3 procedures. AR. GA.TCS provide the employees the task of Avery account employee . Induction Action Create Process/Procedure for TCS Induction Training: . .List of all training material .The knowledge they need to have of these employees is on during Induction period and on day to day tasks.

Status Open Comments TBD Description Communication and Training to the employee when there are updates to the Level-3 procedures and FAQs. One-on-One Specific inventory of all training materials used for each module and the author and version/date of each item Success criteria to pass training (e. DVD Video 4.g. The table below shows the tasks assigned to the candidates along with the recommendations from their superiors: 1.Description 2. 2. Periodic audit by Team Lead/Team Manager/Avery). Live Action Develop process to ensure that employees receive updates when Level3 procedure are taking place (e. Computer 3. f. e.g. Create procedures for employees who are scheduled to transition out of Avery team to transfer responsibility and knowledge 15 . EX-AVERY ACCOUNT EMPLOYEE TCS asks the employees to get aware about Ex-Avery account employee who is scheduled to transfer out of Avery account or the employees scheduled to leave TCS with the help of exit interviews. exams) Avery background training and cultural awareness training Action Status Comments d. Document who will be responsible for the updates.

Checklist should be tailored based on employee level (i.2. Team Member. A. Employee requisition request for new team member Notification procedure to Avery Handoff procedure of responsibility before exit date Exit interview to help develop retention strategy Access rights to any systems are revoked Action Create procedure for responsibility transfer and knowledge transfer. Checklist should be tailored based on employee level (i. Create checklist to ensure responsibility has been taken over before an employee exit Status Open Comments TBD Open TCS - - - 16 . Team Member. Create checklist to ensure responsibility has been taken over before an employee exit.e. Team Lead and Team Manager). TCS Employee scheduled to Transfer Out of Avery Account (Exit Transition) Description Create procedures for employees who are scheduled to transition out of Avery team to transfer responsibility and knowledge Create checklist to ensure responsibility has been taken over before an employee exit. Team Lead and Team Manager).e. Document who will be responsible for the updates and what the review process would be.

DOCUMENT LIFE CYCLE Document life cycle is divided into four categories: 1. IT related. Level 3 Procedure. 1) Designate Knowledge Manager in TCS to be in charge of all documents (e. Administration 2. Level 3 Procedure.) used in Avery and document role and responsibility of the Knowledge Manager 2) Document knowledge sharing requirements between Avery/TCS • Description Tool to be used in long term. HR related and etc. Collaboration/Storage 4. 2. Policy. Folder structure. CREATION Designate Knowledge Manager in TCS to be in charge of all documents (e.g. Update/ Maintenance 1. Policy.Access rights and maintenance Action Designate Knowledge Manager Status Open Comments Deloitte will frame. Open 17 . HR related and etc. Creation 3. TCS to identify resource. IT related. ADMINISTRATION Employees need to pursue knowledge and accomplish their tasks which are being checked by the superior person.) used in Avery and document role and responsibility of the Knowledge Manager Determine and document roles and responsibilities for Knowledge Manager Document knowledge sharing requirements between Avery/TCS Tool to be used in long term Folder structure Access rights and maintenance Create Knowledge Sharing requirements document Open Deloitte will frame. Deloitte will frame.g. TCS to identify resource.

Status Open Comments Get list of documents from TCS/Avery for inventory. The procedure should include the following: .Under creation again employees are assigned with some tasks. Create new document creation procedure. checked by their superiors 1. Create list of documents to be created by go-live date 2. The procedure should include the following: . The procedure should include the following: . Deloitte will frame Create new document creation procedure.Approval process to create new document . Deloitte will frame checklist once we receive list of documents.Quality assurance process of the content Create document publishing procedure. We will need TCS/Avery to assign document approvers.Quality assurance process of the content 3.Approval process to publish Create new document creation procedure Open Create document publishing procedure Open Deloitte will frame. 18 .Approval process to create new document. The procedure should include the following: .Approval process to publish Description Create list of documents to be created by go-live date Action Create checklist of documents to be created by go-live date. Create document publishing procedure.

The tasks are like: 1) Schedule periodic review of documents on the site to archive obsolete documents 2) Create document change control procedure. UPDATE/ MAINTENANCE Under this employees are assigned with some tasks. The procedure should include TCS internal approval process to initiate change request Process to obtain Avery approval Quality assurance process as a checkpoint in any change process 3) Notification process of changed process to all affected party 4) Include ‘Tribal knowledge’ to the Level-3 procedures when appropriate 5) Update FAQs based on actual questions brought by the team 6) Schedule periodic audit of access rights to ensure only current Avery account employees have access to the site .At least every month 19 . checked by their superiors.3.

Document who will be responsible for the updates and what the review process would be. The procedure should include TCS internal approval process to initiate change request . We will need TCS/Avery to assign document approvers. Create document change control procedure Open Develop process to verify updates to ‘Tribal knowledge’ are documented. Deloitte will frame. We will need TCS to assign an individual responsible for doing the audit of access rights.Quality assurance process as a checkpoint in any change process . Deloitte will frame. Update FAQs based on actual questions brought by the team Open Schedule periodic audit of access rights to ensure only current Avery account employees have access to the site .Description Action Status Comments Schedule periodic review of documents on the site to archive obsolete documents . Document who will be responsible for the updates and what the review process would be. We will need TCS/Avery to assign document approvers. Schedule periodic audit of access rights to ensure only current Avery account employees have access to the site Open Deloitte will frame.Notification process of changed process to all affected party Include ‘Tribal knowledge’ to the Level-3 procedures when appropriate - Schedule periodic review of documents on the site to archive obsolete documents Open Deloitte will frame. We will need TCS/Avery to assign document approvers. Deloitte will frame.At least every month Open PROCESS ADOPTED BY HR FOR CHECKING THE REQUIRED SKILLS 20 .Process to obtain Avery approval . Develop process to update FAQs on an ongoing basis.At least every 3 months Create document change control procedure. We will need TCS/Avery to assign document approvers.

From the Same Impact Level Rotation recommendation Years of experience in job /jobs Performance rating 3 & above Potential rating 3 & above Educational qualification Performance rating 4 & above From the Next Impact Level Potential rating 4 & above Recommendation on fitness for job cluster Years of experience in job /jobs Educational qualification List of Potential Successors Potential in IT0024 Succession Planning Identification of Critical Positions Description of the steps Succession plan would be made for all critical positions in the organization as an output of SAP Succession Planning transaction. All field HR managers along with PC/CC heads will prepare a list of critical positions in their respective areas based on the following criteria: • • • Positions which cannot lie vacant at any given time or vacancy of such positions will have a considerable impact on the performance of the concerned unit. interview. Each critical position will have at least two to three persons identified who can take up the responsibility.SUCCESSION PLANNING HR of the organisation after doing the need analysis of the post and seeing the need for succession planning takes an initiative where they during the period of six months when the need is actually identified check the skills and performance of the desired candidate with different process like through performance appraisal. Positions which cannot be easily managed by available resources Positions which demand special expertise and skills (a talent which is not easily available outside) 21 . performance during training. FUNCTIONAL DIAGRAM Diagrammatic representation of the process is described below. during job rotation. talent review form.

I will be first discussing the whole individual process and the criteria of evaluation done in TCS 1. since appraisal and their ratings of their performance plays an important role in deciding the career plans and succession plans of an employee. Succession planning would also take into account performance and potential ratings – the performance and potential ratings would also be used in qualification catalog. The final succession position will enter into the system into ‘Potential’ in infotype 0024 for a person. After finalization of the qualification requirements for the critical position. Discussions/decisions on succession planning at the time of Talent review inform of recommendations for a job by superior. at the time of succession planning HR evaluates the performance of an employee starting from the interview either personal or telephonic held at the time of recruitment to the training feedback which the employees receive during their training programme to the performance appraisal. Once potential successors have been identified. We need to understand the process of performance appraisal and development plans on the basis of which the ratings of an employee are decided. the best fit list of potential successors (from the same or other organizational unit). the succession plan would be prepared and would be considered as final after it is thoroughly vetted by all IL1 executives including MD and DMDs. Views on potential successors may also be taken from the current set of appraisee. These prerequisites would be inherited from the jobs assigned to the position and the additional qualifications entered for that position. Prerequisites 22 . Also the process of planning starts in the TCS from the stage of training. Now. TRAINING FEEDBACK Training feedback takes place at the time of completion of business event. Hence. Individual development plan and lastly performance during job rotation.A list of prerequisite qualifications for those critical positions in consultation with the respective heads would also be prepared. Whenever the finalized list of successors is required the succession planning transaction (PPSP) would be run with the check mark only on ‘Potential’.

• • The training back form will be filled in by the Training administrator only after completion of the ‘Follow-up’ process The training feedback form should be filled in for active employees in SAP Description of the steps Training feedback is given by the attendee for 13 attributes. . The process adherence respective to this module is. The appraisal would also require feedback in text about three questions related to training. The training feedback is based a uniform 5 point scale for all the 13 attributes. TRANSFER OF LEARNING Sequential organization of functions and activities is described as process. This is to ensure faster and total completion of the training feedback. This feedback is given after completion of the training. Transfer of learning form Part A Attendee fills on paper and entered in system by training administrator Report on transfer of learning Superior fills after attendee Follow-up Evaluation Follow-up Evaluation Attendee fills in after 3 months Superior fills after attendee Prerequisites • • The follow up process for the attendee is complete Training feedback form has been filled in by the training administrator Description of the steps 23 . 2. In addition the training feedback appraisal would involve rating of the instructors. This feedback form will not be online. It will be filled up by the training coordinator based on the filled up hard copy of the form.

which are as follows: Transfer of learning form – Part A: Attendee commits himself to tasks to be taken up by him after attending the training program which he will fulfill at his work place. an additional form is filled to assess the training effectiveness. This would be after completion of the follow up process of the training program. The head of the department also appraises on the effectiveness of the training administered to the employee. The transfer of learning form would have three steps. Transfer of Learning . This is filled in by the attendee in paper and entered in the system by the training administrator. In this feedback the employee fills in the areas where he would apply the learning from the training.In addition to the training feedback.Part A: PNO: Prog. Code : Name: Start data: End Date: 24 . The training coordinator would monitor the status of this program.

25 . We do hope that you are going away from this programme with some new insights and skills that may be of use in your workplace. How do you propose to apply these learnings in your workplace? a.Thank you for your participation in this programme. c. b. we request to to complete this questionnaire and to discuss your responses with your superior after returning to work. c. b. b. Q1. What support would you require from your departmental superior for successful transfer of learning in your workplace? a. Q2. Q3. What are the most important learnings you are taking with you from this programme? a. To help you in successfully transferring your learning. c.

Not at all or never / rarely d. To what extent did you use the knowledge and / or skills prior to attending this programme? a. Not Applicable Follow-up Evaluation by Attendee After three months from the date of end of training a workflow would be triggered. To a moderate extend e. To a moderate extent e. To what extent has the content of this programme accurately reflected what happens on the job? a. To a small extent e. To a small extent e. Follow up Evaluation –Superior appraisal from will be simultaneously sent to superior also. to a very great extent c. To a moderate extent e. To a great extent b. a. After completion of both the forms intimation will be sent to training Administrator in the form of SAP mail. To a small extent e. To what extent did you receive the assistance necessary in preparing you for this programme. To a great extent b. Not Applicable Q6. Follow up evaluation – Participant appraisal from will be sent to attendee the attendee would fill in the appraisal related to the transfer of learning from the training program. To a great extent b. Follow up Evaluation: Questionnaire (Participant) Programme: __________________ 26 . to a very great extent c. to a very great extent c. Not at all or never / rarely d. Not Applicable Q5. Not at all or never / rarely d.Q4.

equipment and information) to apply the knowledge and / or skills on your job? 27 . Department: __________________ __________________ __________________ __________________ __________________ Scale for Question 1 . 2.g. Please tick ( Ε ) the appropriate box 1.No.5 Not at all or never / rarely 1 To a small extent 2 To a moderate extent 3 To a great extent 4 1 To a very great extent 5 2 3 4 Not Applicable NA 5 NA 1.Programme Code: Programme Type: Participant: P. To what extent have you actually used the knowledge and /or skills presented in this programme after completing the programme? Confidence in Ability to Perform To what extent has your confidence in using the knowledge and / or skills increased as a result of this programme Barriers and enablers of transfer To what extent have you had access to the necessary resources (e. Use of Skills To what extent have you had the opportunity to use the knowledge and / or skills presented in this programme.

with applying the knowledge and / or skills on the job? Impact Measures As a result of this programme.To what extent have you received help through coaching and / on feedback. To what extent did s/he use the knowledge and / or skills prior to attending this programme 28 .8 Not at all or never / rarely 1 To a small extent 2 To a moderate extent 3 To a great extent 4 To a very great extent 5 Not Applicable NA Please tick ( Ε ) the appropriate box Use of Skills 1 2 3 4 5 NA 1. my overall performance has changed by Follow-up Evaluation by Superior Follow up Evaluation: Questionnaire (Superior) Programme: Programme Code: Programme Type: Participant: P. Department: __________________ __________________ __________________ __________________ __________________ __________________ Scale for Question: 1 . my performance on the programme objectives has changed by As a result of this programme.No.

7. Impact Measures 9. 6. To what extent has s/he had the opportunity to use the knowledge and / or skills presented in this programme. 3.2. her/his performance on the programme objectives has changed by As a result of this programme. equipment and information) to apply the knowledge and / or skills on the job? To what extent has s/he received help through coaching and / on feedback. her/his overall job performance has changed by ______ % ______ % 29 . with applying the knowledge and / or skills on the job? 8. To what extent has s/he actually used the knowledge and /or skills presented in this programme after completing the programme? Confidence in Ability to Perform 4. To what extent did s/he receive the assistance necessary in preparing for this programme? To what extent has the content of this programme accurately reflected what happens on the job? To what extent has s/he had access to the necessary resources (e. 10. To what extent has her / his confidence in using the knowledge and / or skills increased as a result of this programme Barriers and Enablers of Transfer 5. As a result of this programme.g.

design. objective. 30 .Based on the appraisal a summary report is run to evaluate each training events in terms of utilization. delivery and impact.

MULTI RATER FEEDBACK Sequential organization of functions and activities is described as process. • • • 31 . The process adherence respective to this module is explained in the following. This is given by the customers.Selection of maximum of 8 persons – Selection of superior – maximum of 2 superiors Finalization of Appraisee – A report would give a list of appraisers and appraisees indicating the load for each employee – This would downloaded into a spreadsheet and adjustments made manually to optimize the load for each employee – The adjusted spreadsheet would be used to trigger workflows to the appraisers by the workflow administrator Completion of the appraisal form by all the appraisers within a set time frame Report for the appraisee giving the average ratings on each of the appraisal criteria for each category of the appraisers . subordinate and superior of a person on various attributes. After rating of the persons by the selected subordinates. The scale used is a five point scale. peers. a report is prepared giving the average rating for each attribute for subordinates.appraisee .Selection of maximum of 8 persons – Selection of customers . supplier and superior. Description This is an anonymous 360 degree feedback for an employee. customer. customer.1.Selection of maximum of 8 persons – Selection of peers . MRF appraisal consists of rating for 3-4 attributes on 13 managerial competencies.subordinates. peer and superior Prerequisites The employee initiating the MRF process has be an active employee and a user in SAP with the required authorizations Description of the steps The process of MRF would have the following steps: • • • Initiation of the MRF by the administrator 20 Days Notification sent to appraisee to select the set of appraisers Selection of Appraiser by Appraisee – Selection of subordinates – appraisee . customer. There is also an ‘others’ – attribute on which rating is given. peer and superior.

This is a multi stage appraisal based on Objective setting and evaluation. The process flow for the Annual Performance Evaluation is given in the following figure Performance contracting Identificatio n of KRA & Targets Discussion & approval of KRA & Targets Evidence recording Appraiser Mid year review Self March Appraiser April Change proposal by appraisee (if any) Self October KRA addition/ deletion/ modificatio n Appraiser October Appraiser Self evaluation End year review & feedback Superior evaluation Talent Review Feedback & appraisee’s comment Self April Appraiser April TR committee May Appraiser June 32 . PERFORMANCE MANAGEMENT SYSTEM Sequential organization of functions and activities is described as process. The process adherence respective to this module is explained in the following.2.

Performance contracting Identificatio n of KRA & Targets Discussion & approval of KRA & Targets Appraiser April Evidence recording Appraiser Self March Mid year review Change proposal by appraisee (if any) Self October KRA addition/ deletion/ modificatio n Appraiser October Appraiser Self evaluation End year review & feedback Superior evaluation Talent Review TR committee May Feedback & appraisee’s comment Appraiser June Self April Appraiser April DESCRIPTION Performance management system is based on a multi stage appraisal based on Objective setting and evaluation. This appraisal would have the instruction steps visible to the appraisers and appraisee for facilitating the process The PMS process would start with a mail to be sent to all HRS / PMS administrator for starting & preparing PMS process on 1st March through the PMS workflow. After this Intimation/communication thorough SAP Mail on 15th March to all employees to start the appraisal 33 .This appraisal would have the instruction steps visible to the appraisers and appraisee for facilitating the process Diagrammatic representation of the process is described below.

the employee enters this KRA.Eligibility for appraisal Doctors will be eligible for “PMS for Medical Professionals” appraisal form Officers other than Doctors will be eligible for General PMS appraisal form Officers’ eligibility criteria: • • • • • • Officers in GT. during the appraisal period Officers who were eligible for performance appraisal. who complete one year on or after 1st October. self and superior evaluation has broad sections. last year Retired officers Resigned officers Death cases Officers not eligible: • • Officers on contract Absconding Prerequisites Active employee in SAP system as on the appraisal start date Description of the steps Performance Contracting In the performance contracting. In the first section. The performance contacting. during the appraisal period Other officers who join on or after 1st October. The appraisee also sets his targets for each KRA. appraisee will enter his ‘Key Result Areas’ at the beginning of the year. ‘targets with units of measure’. This is depicted in the table below 34 . ET cadre. These are based on the Balance Score Card for the Department. ST.

Rea Finance Customer Internal Business Process People Development Special Projects KRA Targets with Criticality Action UoM Measure 1 Reduction by 5% 2 1 1 Index on Qualitative grid 2 3 1 2 1 2 Initiatives This section would have the appraisal criteria group as the “Area”: • • • • • Finance Customer Internal Business Processes People Development Special Projects Under each of these appraisal criteria groups. The column ‘Targets with Units of Measurement´ would be a new column with a note. there will be single appraisal criteria. This appraisal form stays with the Solid line superior for Evidence recording from 30th April to 31st Aug 35 . In this note the employee would enter the reference of the qualitative grid document. An Enhancement would be used to add elements for the appraisal criteria. This criterion will allow entering the KRA. The appraisee will also be able to add additional rows for appraisal criteria to record more KRA under each area.

Appraiser name is defaulted (based on OM) Officer fills the KRA. This is then sent to his superior for mid year review. (Status : for mid year review to officer) Appraisee may add KRA. Intimation/communication thorough SAP Mail. criticality of KRA.Activity Responsibility Timeline 1st March 15th March Mail reminder to HRS / PMS administrator for starting & preparing PMS PMS process administrator PMS administrator starts the process by sending guidelines & makes PMS available the appraisal form for eligible employees (medial & non administrator medical). Solid (Status : Performance Contracting done) superior 7th April 30th April line 30th April • Mid Year Review In this process the appraisal is again sent to the employee for recording “Achievements and Constraints”. Key thrust/Measure. The appraisee may add additional KRA or request his superior to delete / change his KRA communicating outside SAP system. update progress against KRA target in the Appraisee achievement column & sends the form to superior. change KRAs. [Other changes proposed in KRA or target will be send by officer to superior by email or in hard copy for mid year review discussion] 36 . Officer can also change the appraiser. (Status: Performance Contracting by self completed) Superior calls the officer for Performance Contracting (KRA & target Offline setting) discussion Superior can add/ delete / modify KRA or Target. if required and record “Evidence/Comments” against KRAs in a separate note Activity Responsibility Timeline 1st Sept 10th Sept Mid year review process starts by sending the appraisal form back to Automated the appraisee. This process enables superior to add additional. targets (with unit of measure) and marks Appraisee criticality of KRA in terms of High/ Normal. An officer also reviews his KRA & targets.

the job he would like to move to. This list of job should have a structure search and would also show all the positions which are related to a particular job. Superior Solid can change KRAs or targets. His appraiser would enter comments in another note on other areas of contribution by the appraisee. then the employee should be able to select from a list of jobs. other areas of contribution. mark a KRA as “No More relevant” in superior the weightage/ criticality column. This would also have a note to record the justification / details for the job preference. The employee also has to state whether he wants to continue in same job. Link for Qualification will be there in appraisal for view of IDP Formal & On the job assignment status. Records comments against KRA & targets in Evidence/ Comments column. Appraisee will record achievements / constraints (max 3 line for a KRA) against each KRA. The “Criticality” column would have a scale with two values High / Normal. This would be recorded by the employee in a Yes / No scale In case the employee selects ‘No’ from the scale. The scale for rating would be: • • • • Not attempted Partially Achieved Achieved Exceeded • Self Evaluation The appraisee will initiate the year end appraisal by self evaluation. (Status : Mid year review completed) Appraisal form stays with the superior for Evidence recording Solid superior line 15th Oct line 15th Oct to 14tht March • End Year Appraisal The Achievements and constraints would also be a new column with a note and would allow the appraiser to fill in his achievements and constraints for each KRA. 37 . for mid year review to superior) Superior calls appraisee for a mid year review discussion.(Status . The employee would also enter as text. The “KRA Ratings” column would have 4 point scale and a note.

There would be appraisal criteria from which a list of jobs can be selected through a structure search of job to job and job to position relationship. In addition. Appraisee can record his likes/ preferences for job/s (Max 2) for rotation with justification. the superior will substantiate high potential rating with fitness to job/s. Appraisee can change status of PDP-on the job assignments. (Status : for end year review to superior) 15th March 1st April • Superior Evaluation In the end year review appraiser gives ratings and enters his comments to support the ratings. The performance ratings and potential ratings would be on a five point scale as given in the section on configurable items In case the recommendation is for a High or Very High Potential. These definitions should be available in the appraisal form. This would contain the following appraisal criteria: • Rotation recommendation – “Yes / No” scale 38 . (Status : for end year review to officer) Administrator Appraisee updates achievement/constraints. etc beyond of your normal work Do you want to continue in same job? If No then select job cluster from list Justification / details to clarify the preference suggested Comment by superior on other areas of contribution Yes / No Selection from JOB catalogue Activity Responsibility Timeline End year review process start by sending the appraisal form back to Central appraisee.On the job assignment identified during PDP & Status will not be there in the appraisal form Any Specific area of contribution in improvement activities. All the scale description would have definitions to facilitate the appraiser to evaluate the appraisee. There would be an appraisal criteria group for development recommendations. the appraiser also recommends the Performance Category and Potential Category. other areas of Appraisee contribution. task force assignments.

Comment briefly on officer’s overall performance & major contribution. performance. constraints. Job enrichment/enlargement required. • • • Activity Responsibility Timeline 15th April Appraiser calls the appraisee for performance evaluation dialogue & Offline Manual discusses his achievements. After the appraiser completes the feedback. aspiration referring evidences .• Fitness to Job cluster/ Job for Rotation – selection from a list of jobs through a structure search offering job to job and job to position relationship Mentoring required – “Yes / No” scale Counseling required – Yes / No scale Job Enrichment /enlargement required – Yes / No scale with. Mentoring required. Counseling required. (Status : Pre Talent Review appraisal done) Solid superior line 15th April May 39 . Development recommendations in terms of Rotation required. In case of rotation recommendation. effort put in by officer during the year. a provision to enter text. other achievements. The employee enters the feedback and closes the appraisal process.The appraiser also enters brief comments in a note on the following areas Overall performance Areas of Strength Opportunities for Improvement (Evidences which are behavioral and are not directly linked to a particular KRA could be recorded here during the year at any point of time ) • Improvements observed during the year The opportunities for improvement would be made available to the officer during PDP. • • • These development recommendations will not be visible to the employee. achievements. fitness to job/s. the appraisal form would be sent to the employee for his comments. on the job assignments. difficulty level etc Appraiser records during end year evaluation records :Performance & potential rating and records his comments in evidence/comments column.

a print of the appraisal form would be taken in a specified format. Print of Report for applicants Assessment of the applicants on report printout Functional Interview Assessment Assessment of the applicants on report printout Telephonic Interview Assessment Entry of assessment into written test assessment appraisal Written Test Assessment Entry of assessment into applicant appraisal Print of Report for telephonic interview applicants Entry of assessment into telephonic interview applicant appraisal Prerequisites The applicant assessment process would be undertaken for applicants who would be called for written / telephonic / functional interview Description of the steps Functional Interview Assessment All applicants would be rated through an appraisal.3. APPLICANT EVALUATION Sequential organization of functions and activities is described as process. Diagrammatic representation of the process is described below. 40 . This appraisal would be filled in by the field HR. For convenience of recording the applicant assessment discussion.

Applicant Range. the applicant would be rated on the following assessment scale (Applicant Assessment). date. position.This print of the formatted list of applicants would be a custom report (Applicant Assessment Report). The appraisal form cannot be changed after completion status. The final recommendation of the applicant would also be kept in the appraisal – these would be in a scale: Selected. In this appraisal form.Applicant Assessment Form. The applicants who would be selected for this report would have the Applicant Action ‘call for interview’ against them. 41 . applicant wise. When the applicant assessment form is completed on paper. For changing the status of applicant. Based on this information the next applicant action would be done. • 1: Poor • 2: Fair • 3: Average • 4: Good • 5: Outstanding In addition to rating the applicant. the details recorded would be entered into the appraisal . Once the applicant appraisal is complete the Applicant Assessment Report would also display the ratings as entered in the Appraisal . Applicant Group. The selection criteria for this report would be based on Advertisement number.Applicant Assessment Form. This appraisal would have the following criteria: Appraisal Criteria Functional Knowledge Functional Orientation Remarks Individual Managerial Assessment Score Individual functional assessment score Panels final assessment score Recommendation Rating Scale Applicant Assessment Scale Applicant Assessment Scale Text Applicant Assessment Scale Applicant Assessment Scale Applicant Assessment Scale Selected / Rejected / Panel This appraisal could be saved by the Field HR and then completed when the data entry is complete and final. text would be entered up to a maximum of 4 lines. Organizational unit. Rejected and In Panel. Applicant number. the filtered data would be taken from a report giving the details of the applicant appraisal. This report would have the list of applicant names for a specific advertisement with blank fields available for manually filling in ratings for various appraisal criteria. Applicant Status This form would be used to fill up the applicant appraisal in SAP.

The status of candidates who have not cleared telephonic interview would be changed from ‘In Process’ to ‘Reject’ On completion of the telephonic interview the blank text fields in the Telephonic Interview Assessment Report would be filled. This report would have the list of applicant names for a specific advertisement with blank fields available for manually filling in text format comments / key observations. a print of the appraisal form would be taken with the names of applicants in a specified format for which the action has be done ‘Invite Applicant’ activity – ‘Telephonic Appointment Interview’.6 and 7. This would be used for entering data into an appraisal (Telephonic Interview Assessment). applicant wise. Telephonic interview would be done for applicants for external applicants and applicant group 3. For changing the status of applicant in the SAP HR Recruitment. This print of the formatted list of applicants would be a custom report (Telephonic Interview Assessment Report).5. This appraisal form would have a text field Once the appraisal is complete the Telephonic Interview Assessment Report would also display the values entered in the Telephonic Interview Assessment Appraisal. Telephonic interview would be done for applicants in applicant action ‘Invite Applicant’ activity – ‘Telephonic Appointment Interview’. the filtered data would be taken from a report giving the details of the applicant appraisal.4.Telephonic Interview Assessment Form Telephonic interview is used for initial screening the external applicants before the final interview. 42 . To facilitate this process.

They check while downloading Year of appraisal from appraisal validity date.4. TALENT REVIEW Review by Field –HR: For this process a report is being developed which generates a report and based on the selection work flow triggers to the officer for filling comments and finally closing the form. Eg. central HR are authorized to download and again trigger the form to officers. for all such cases. Evaluatee’s Comment. Field HR have a facility to download list of officer from his area with Appraisal Document No & Performance & Potential Rating & STATUS of appraisal forms (Status. If there is no field HR for a particular OU or Position (person). Talent Review committee for an impact level in a particular organizational unit: 43 . Once triggered there should be default time limit for reminder & closer of this phase inbuilt. Pre Talent Review Status or Post Talent Review Status etc. There is a transaction by which workflow can be triggered for the last phase ie.) Download facility could be used again & again to know the current status.A specific report for IL2 executives for Talent Review Discussion by central HR administrator. Trigger should not sent the form to officer if FLAG in excel / internal table is checked. Field HR would generate officer’s details in standard format (reports) to facilitate Talent Review committee discussion. When appraisal form is accessed by the officer the same criteria access authority should be there to officer. The next part of the processes involves discussion with a panel of reviewers (Talent Review Committee) based on Impact level of the appraise.

This summary sheet with deviation analysis is sent to DMD for approval. Based on the discussions. The proportion of the employees in each rating is finalized and compared with the actual. Head C IL3 Here the recommended performance category.HRS section will generate PC / CC/ Dept wise summary sheet of ratings to monitor the deviation form approved guidelines for rating spread. Head IL3. potential ratings. then the appraisal is sent back to field HR for correction. fitness to job/s for high potentials (potential ratings 4 or 5) are discussed & finalized. Post Talent Review superior will change/ correct the officers’ ratings or other recommendations i. If not approved. job rotation.e. This process also involves fitting the employees in a normal curve. training (if any) which is decided during talent review. Head B IL3. job rotation recommendation & suggested job/job cluster for rotation. 44 . the appraisee’s performance ratings are changed and again compared at various Impact levels and org units to achieve normalization. job fitness (for potential rating 4 & 5).In this case Talent Review committee comprises of Chief.

area of strength. all authority to change / modify the appraisal form by the superior or field HR will be seized. • Evaluatee’s Comment Post Talent review superior calls the appraisee for feedback on his performance. strength & OFIs and ratings. sent for appraisee’s comments) line 15th May Once appraisal form is sent to the appraisee for his comments.Activity Responsibility Timeline 15th May Field HR would be generating report for Talent Review & organize Offline Talent Review discussion to finalize performance ratings. fitness to job/s for high potential (4 &5)officers Talent review output will be recorded in the appraisal by the superior Solid in terms of changes in performance rating. comment briefly on overall performance. Activity Appraisee fills up comments. superior development recommendations. job fitness. (Status: closure of appraisal) Responsibility Appraisee Timeline 20th May 45 . OFI (Status :Talent Review done. Henceforth any change in the appraisal ratings could be done only by Central Compensation Administrator if desired. After feedback the appraisal form is sent to the appraisee for his comments. rotation recommendations. The appraisee also enters his comments and the appraisal is completed. potential ratings. potential. potential ratings.

organizational unit. experience in current job. personnel area/sub area.These reports are: • • • List of employees recommended for job rotation within the same profit center / cost center List of employees recommended for job rotation across functions List of positions assigned to a job / job cluster which are vacant The job rotation process would first get a list of employees who are recommended for rotation within the same profit center / cost center. total experience. This report would contain employee details which will include personnel number. age.5. JOB ROTATION Prerequisites Recommendations of an employee for job rotation Description of the steps Employee job rotation process is undertaken for rotation within the same profit center / cost center and rotation across functional areas. Job rotation discussion would be based on this report and the finalized decision would be used to transfer employees to vacant positions / rotation positions. and job rotation recommendation by superior. performance and potential rating and person’s job preference. These two reports would be generated together giving a clear view of the rotation possibility of a person from an existing position to a vacant position Similarly for a report would be run to get a list of employees recommended for job rotation across functions. 46 . employee subgroup. This would be similar to the report for within the same profit center / cost center. position. This would also be used in conjunction with the report for list of positions assigned to a job / job cluster which are vacant. This process would be supported by a list of three reports. The details of these reports are given the ‘Functional Specifications Document’.

6. CONCLUSION Based on all above process TCS finally do the succession planning process. During those six months TCS analyze the skills required for the post with the skills existing in TCS through all the above process. TCS does the succession planning just before the six months from requirement. I am hereby showing the tables where TCS had done the succession planning to give an idea on how they decide the skills then check the existing gap prevailing with the successor. 47 .

PL/SQL. Business knowledge Project E3 Management. E2 Functional Knowledge on WLR. team management.No Resource Name/New Request Position Planned Replac Required by Skills Release Date ement Date Required Requir ed (Y/N) N Compe tency Level 1 Delivery Manager 31-DEC-2008 Project E3 Management. Telecom knowledge. Business knowledge Telecom. Oracle 9i. Process Management. Oracle DB. MQ E2 2 Project Leader 31-DEC-2008 N 3 Module Lead Testing 31-DEC-2008 N 4 Module Lead – Environment Support 31-DEC-2008 N 48 . Preparation of Test plans/ test strategy. UNIX. Telecom knowledge. Testing tools Telecom. Workforce Plan S.7. JAVA. XML. Process Management.

E1 Functional Knowledge on WLR. 49 6 Module Lead – Development 31-DEC-2008 N 7 Tester 31-DEC-2008 N 8 Tester 31-DEC-2008 N 9 Developer 31-DEC-2008 N . PL/SQL. E1 Functional Knowledge on WLR. Presentation Skills. Team 6Management Telecom. Designing Tools. E1 Functional Knowledge on WLR. JAVA. E2 Functional Knowledge on WLR. PL/SQL. XML. Oracle 9i Telecom. PL/SQL. XML. Oracle 9i Telecom. JAVA. E2 Functional Knowledge on WLR. Team Management 5 Module Lead -Design 31-DEC-2008 N Telecom. PL/SQL. Oracle 9i. PL/SQL. JAVA. JAVA. XML. PL/SQL. XML. Oracle 9i. Oracle 9i. XML. Team Management Telecom.Series.

Oracle 9i Telecom. PL/SQL. Oracle 9i. JAVA. XML. Designing Tools. PL/SQL. Testing skills. E1 Functional Knowledge on WLR. Oracle 9i. JAVA. PL/SQL. E1 Functional Knowledge on WLR. Test Tools 50 11 Developer 31-DEC-2008 N 12 Developer 31-DEC-2008 N 13 Tester 10-Nov-2008 N 14 Tester 31-DEC-2008 N . XML. Test Tools Telecom. JAVA. PL/SQL. PL/SQL. Oracle 9i Telecom. JAVA. E1 Functional Knowledge on WLR. E1 Functional Knowledge on WLR. Presentation Skills. E1 Functional Knowledge on WLR. XML. Oracle 9i Telecom. JAVA. Testing skills. XML. JAVA. Oracle 9i 10 Designer 31-DEC-2008 N Telecom. XML.XML.

Oracle 9i. JAVA. E1 Functional Knowledge on WLR. Testing skills. XML. E1 Functional Knowledge on WLR. PL/SQL. JAVA. Oracle 9i. E1 UNIX. Test Tools Telecom. E1 Functional Knowledge on WLR. MQ Series. JAVA. PL/SQL. Oracle DB.15 Developer 31-DEC-2008 N Telecom. Oracle 9i 16 Tester 31-DEC-2008 N 17 Tester 31-DEC-2008 N 18 Environment Support 31-DEC-2008 N Succession Plan 51 . Testing skills. XML. PL/SQL. XML. PL/SQL. Test Tools Telecom. Oracle 9i Telecom. XML.

Key Position

Name

Planned Release Date

Successor

Availabl e Date

Skills Required

Gaps in Skills (Y/N)
N

PL

31-DEC-2008

Project management skills, Process Management, PL/SQL, Telecom knowledge, Business knowledge

DP Environmen t Support

31-DEC-2008 31-DEC-2008

DP Awareness Telecom, UNIX, Oracle DB, MQ Series, PL/SQL, XML, Oracle 9i, Team Management Telecom, Functional Knowledge on WLR, Presentation Skills, Designing Tools, PL/SQL, XML, JAVA, Oracle 9i, Team Management Telecom, Functional Knowledge on WLR, PL/SQL, XML, JAVA, Oracle 9i, Team Management Telecom, Functional Knowledge on WLR, PL/SQL, XML, JAVA, Oracle 9i, Preparation of Test plans/ test strategy, team management, Testing tools

N N

Design

31-DEC-2008

N

Developmen t Lead

31-DEC-2008

N

Test Lead

31-DEC-2008

N

Succession Training Plan (NA)

52

Key position

Skill Name

Training Start Date

Training End Date

REFERENCES MRS. JIBIE- HR, IN THANE MR. ASHWINI HIMANSHU WWW.TCS.COM
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PROJECT ON SUCCESSION PLANNING COMPANY: WIPRO TECHNOLOGIES

SUBMITTED TO:

SUBMITTED TO: PROF. ARUN SEKHRI
SUBMITTED BY: DEBANTI LAHIRI (55) SAYANI MAHAPATRA (20) LIPSITA BADAJENA (27) Date: 30-03-2010

55

..22 Recommendations (DEBANTI)………………………...20 Shortcomings of SP (DEBANTI)…………………….12 Premji’s Framework (SAYANI)……………………..16 Women in Wipro (LIPSITA)…………………………18 Sample Forms (LIPSITA)……………………………...…………………………3 TRP at Wipro (SAYANI)…………………………….4 Key Elements of SP (SAYANI)………………………7 Steps of SP (DEBANTI)………………………………8 PMS as a Tool of SP (DEBANTI)……………………11 Azim Premji Intends to Improve (DEBANTI)…….13 Retention Strategy for SP (LIPSITA)……………….3 Core Principles (SAYANI)...15 Aligining Leadership and SP (LIPSITA)…………….23 Case Study (LIPSITA-DEBANTI-SAYANI)…………24 56 .INDEX Company Overview…………………………………..

lighting. Current leaders must teach. It has interests varying from information technology. 5. A broad set of experience & assignments is the best classroom yet a balanced approach is still necessary for development. 57 .391 people worldwide as of 2009. Today’s top performing leaders aren’t necessarily tomorrow’s best performers. 4. According to the 2008–09 revenue. engineering and healthcare businesses. Its incumbent upon today’s “top-100” to leave a legacy of future talent. India. Even our best leaders can fall behind or derail. results. CORE PRINCIPLES UNDERLYING SUCCESSION PLANNING AT WIPRO (Sayani) 1. Wipro is the third largest IT services company in India and employs more than 98. Azim Premji is the Chairman of the board. Invest in the best and focus on the rest.COMPANY OVERVIEW Wipro Technologies Limited is a giant information technology services corporation headquartered in Bangalore. Talent is an enterprise resource. consumer care. 3. Only willingness to share talent makes the system work. culture. mentor. Performance is what counts top performers over high potentials (the “what” & “how” both count). & role model others on what it takes to succeed. 7. 6. Leaders really do matter in managing/driving accountability. 2.

Planning the Process 58 . While the design of the succession chart looks good on paper. as the succession planning programme requires ownership at all levels in the organization.” says Bijay Sahoo. the second focuses upon key people. It is essential to adopt a disciplined approach to match HR resources with the anticipated needs of the organization. and personally supervise the development and implementation of the talent plan for key roles. In fact. Succession planning has to ensure that the right people with the right skills are in the right place at the right time. very few follow through with the rigorous implementation required. The talent review and planning process helps us identify talent for emerging roles in the organization. According to Sahoo. Sahoo reveals that in Wipro. individual-based and team-based. (b) Constant attention. the other essential factors are: (a) accountability. the chairman (Azim Premji) and vice-chairman and CEO (Vivek Paul) give enormous importance and their personal time for talent review and planning. Commitment from the top management is another key factor for ensuring the success of succession planning. it has often been found that the planning process fails to meet requirements at the time of filling a key position that has just been vacated. as it can be tempting to overlook the need for succession planning in the face of more immediate needs. while many companies have succession plans.TALENT REVIEW PLANNING (TRP) AT WIPRO (Sayani) Succession planning is an essential part of corporate strategy in most IT organizations including Wipro. Each manager should be responsible for assessing and developing the talent in his or her team. 70 percent of succession plans fail due to bad execution. “The purpose of the talent review is to figure out the talent required to implement the business strategy and constantly strengthen the talent pool. and the last involves replacing a section of people or resources. vice-president (talent engagement and development) and head of HR. Reviewing Talent One of the challenges in Wipro is planning for HR needs. According to a report by US-based business research firm Cutting Edge. This includes aligning the succession planning process with business strategy. It can be done in three ways: role-based. It is not an easy task dealing with the ever-changing equations of the leadership pipeline. The first is about identifying key positions. Wipro Technologies.

and identify employees who are ready to take over the roles immediately and over the next 1-2 or 2-3 years. which gives an indication of the success of the program. The respective SBU heads and the SBU HR heads do the TRP for the top three levels of their business.The bench strength of current and future leaders gives a competitive edge to organizations like Wipro. design and implement programmes to train future leaders. training. “Many of our ex-employees are heading successful IT companies. and establish touch points for attracting them at the appropriate time. coaching and performance counselling. we identify the critical roles to execute it. Wipro is one of the top companies when it comes to creating top-class leaders in the IT industry. He adds that the company does developmental planning for each identified internal candidate in terms of job rotation. They also keep track of potential external candidates. Wipro has quarterly talent engagement and development (TED) reviews. they find it a difficult task to ensure the success of their efforts. the succession planning programme is called Talent Review and Planning (TRP). Training plays a key role in succession planning. 59 . get involved in talent planning for the top three levels. At the macro level. and an organization can measure its effectiveness by looking at the leadership talent it has created and provided to the industry. Next is the implementation of the talent strategies by developing and reviewing the action plan. “Once our business strategy for the year is finalised. along with the HR head. Systematic succession planning does generate leadership talent. Succession planning can get very complicated. Organizations must therefore have a clear focus. the retention figure also reflects the effectiveness of the succession planning program. This contributes to the TRP at the Wipro Technologies level. The Training Difference Organizations are less vulnerable to leadership crises when there’s a shadow group of successors who are able and available to step into their shoes. Clear Focus It is a known fact that while most managements are interested in developing a pool of successors for key positions. It is imperative to strategise.” says Sahoo with apparent pride. and action points of each SBU and vertical are tracked. including that of the CEO. At Wipro. “We also track the number of senior positions that are filled internally. since one of the objectives of the program is to help employees realize their career aspirations and thus retain them in the organization. We plan for the succession of existing critical roles. We review the talent available for those roles internally as well as externally. and it is the most critical part of the organization’s leadership building and talent management process.” informs Sahoo. where the chairman and vice-chairman.

Wipro is doing succession planning through competency development. Just-In-Time Succession Then there’s just-in-time succession which is followed in many of the organizations in today’s time including Wipro. and find whose competency profile matches the job on a regular basis. which are synchronised with the roles employees play at different stages of their corporate life. After all. Whatever be the methodology. irrespective of its size. Instead of looking at a job to fill. Business Leaders Programme and Strategic Leaders Programme for different leadership positions that an employee will assume in the organization. consequently it is not relevant. but by that time the to-be-successor may have already left the organization. The key to this is competency development across the organization. 60 . Succession planning software uses competency analysis which lets companies understand the demand side of the equation with what their staffs have to offer. organizations should profile it in terms of competencies – this understanding has led Wipro to go to the data bank. one can plan for two or three years. measuring the effectiveness of a succession planning programme is critical to every organization. it is more than just the passing of power and responsibility—it is about survival and continuity.Wipro has its lifecycle leadership development programmes. which maps existing competencies of the staff to fill an important position. These include the New Leaders Programme. Succession planning is not merely an issue of a position. Wipro Leaders Programme.

Identification of Key Talent: • Typically people at the top two levels of the organization and high potential employees one level below. Assessment of Key Talent: • For each person on the radar screen.KEY ELEMENTS OF SUCCESSION PLANNING AT WIPRO (Sayani) 1. 3. Development Monitoring & Review: • An annual or semi-annual succession planning review is held to review progress of key talent and to refresh or revise their development plan. 5. 61 . 4. Assessment of Key Positions: • What are the competencies and experiences needed to qualify for each key position? 2. Generation of Development Plans: • A development plan is prepared for how it will help the person develop over the next year. • Identified by their management’s assessment of their performance and potential for advancement. primary development needs are identified focusing on what they need in order to be ready for the next level.

for the long term succession planning the details required are. the organization must be ready with details such as: • • • Who needs immediate replacements? Whose professional career demands relocation? Who would like to choose other volunteer options? Whereas. • • • Who is completing his term this year? Who have the skills to replace this position? Who has necessary skills and is ready for a larger or a different role? Succession planning is not about finalizing the CEO only. The entire process may take a few years and a good amount of money to groom an individual to reach at this stage . Now that the list of potential successors for each department is ready there is a need for assessing the individual's competency and skill set required for the position for which he/she is listed. here is the bottom up approach to succession planning. job rotation and simulation workshops can provide valuable insights to the successor about his/her future role. After preparing these details. the Chairman himself. In order to fulfill its responsibilities.but it is worth the investment. individual development plans need to be prepared. This will help in monitoring the progress of succession candidates. Like any other activity. It will ensure the regular supply of leaders at different levels. Apart from training. In order to provide the benefits of succession planning all across the organization. To bridge the competency and skill gaps organizations must plan for appropriate training. Accordingly.STEPS FOR SUCCESSION PLANNING (Debanti) Succession Planning is required both for the short term as well as for the long term. it is to facilitate the organization to be ready with the answers to all the above-mentioned questions. follow-up is a must to ensure the success of the entire plan discussed above. To begin with the organization must identify key positions for each department. HR department with the help of line managers needs to initiate the process of assessment and evaluation to identify Hi-Pos (Employees with high potential) in each of the departments. One needs to even visualize the expected vacancies. Once the list of Hi-Pos is ready based upon the results of their assessment/evaluation. organization must assist with leadership transition and development. For short term succession planning. Just handing over the baton to the successor does not complete the job. HR department in concurrence with line managers should do the profiling for each individual to ensure selection of the right person for the right position. ready to take charge. The next step is to decide upon current and future competencies required for their smooth functioning. This model is successfully implemented by Wipro India's leading IT company. Azim Premji. 62 . It is called Talent Review and Planning and is headed by none other than Mr. organization must develop and implement coaching and mentoring programs periodically. Also a plan for on going evaluation must be in place.

performance is an assessment of Hi-Po's past business and the performance review results. Current performance is not the sole predictor of future success. and higher degrees of employee turnover. low morale. and learning curve of the employee. potential is an assessment of willingness to perform and learn from successes & failures. This builds a poor image of the employee and the organization in turn gets minimal level of performance from High-Position leading to wasted resources. tenure. job profile. As against it. Organization must be ready with various permutation and combinations of performance and potential depending upon the above-mentioned factors. both are important and one can not substitute the other. his/her openmindedness. future potential is a sign of prospective results Hi-Pos can deliver. it identifies mainly the areas of low performance/weakness.Now the question which arises while identifying High-Position is: should the organization look at the current performance or assess the future potential. While deciding the performance and the potential mix the organization should keep in mind the industry. unsatisfactory performance. and sense of personal accountability. Since. 63 . Well.

64 .

attitude. Succession planning is ensuring the right people in the right place at the right time. Succession Planning. and action plans of each SBU and vertical are reviewed and a talent pool of the suitable identified candidates is prepared. skills. Succession planning is proactive in nature and results in the creation of a talent pool of candidates with the required potential and competencies who can take the high positions in future and help in the growth of the organization. Performance appraisal process (like performance reviews and competency assessment) and succession planning together can help to strategically identify and develop the required talent pool. performance appraisal and review process helps to judge the knowledge. succession planning is based on: • • The positions for which the planning is being done The current and past performance levels of the employees Performance rating Competency mapping Whether the selected employees have managed to improve since their last review or not The growth potential and the attitude of the employees. One of the best approaches to succession planning is "PERFORMANCE BASED SUCCESSION PLANNING". performance based succession planning helps in creating a required talent pool of employees for the future needs of the organization. Wipro conducts regular quarterly Talent Engagement and Development (TED) reviews. Apart from the various other factors. It is a part of HR planning for the organization and involves finding the right people to take higher responsibilities in the organization. HR planning for the probable future needs is a challenge for the HR managers and the performance review can help tremendously to attain this challenge. competencies and potential of the employees and finding the mentoring and coaching requirements if any and thus identifying the right candidates for taking future responsibilities i.PERFORMANCE MANAGEMENT SYSTEM : A TOOL FOR SUCCESSION PLANNING (Debanti) At Wipro. Therefore. Therefore. 65 . The success of the organization is largely dependent on the quality of its human resources and leaders of the organizations.e. Their ability to meet the changing and increased level of standards and measurements set by the management. Succession planning is being practiced since a long time now and has become an indispensable part of corporate strategy in most of the organizations. the Succession Planning Program is called Talent Review and Planning (TRP). o o • • • Succession planning is a complicated process and requires time and ongoing effort.

because we are not looking at acquisitions as a growth strategy. This much is obvious. he said that even his successor has been identified in the organization. Wipro. But it is the process that gets reviewed every year by the board and he's hoping to fine-tune it. Mr Azim Premji. to new heights. But what people have not realised is how much homework we have done before making these acquisitions. Mysore. succession planning is fundamental to people's business. is set to take his flagship company. is to see that the supervisor is a good person as a supervisor. He also wants to open a BPO and an integrated centre in software development in Bucharest. to service clients in Germany and France. "I think we have demonstrated in the last 8-9 months about the number and the frequency of acquisitions we've done. When asked about his strategies on attrition check he said that although WIPRO has been able to tackle it but not to their satisfaction — attrition control is never to one's satisfaction. Kolkata and Chennai." He is one of the few CEOs to have a succession plan in place that may or may not include his own sons. which is below 10 per cent. which goes on all the time. So. They would like to have attrition. after the company made several recent acquisitions. As per the chairman. in terms of who is ready presently and who will be ready in the next 2-3 years and who is a potential after five years from present. Azim Premji said. WIPRO has a very structured process at the board level. and whereas WIPRO is running at about 12-13 per cent rate of voluntary attrition. In an interview with CNBC-TV18. and I still feel we should be doing more. Azim Premji thinks that at the end of the day. it is leadership and the most important investment that one can make to have people continue with the organization and have people enjoy continue there. Succession planning extends to the top 75 people in the organization.” Everyone in Wipro will know that they are smart risk-takers and he thinks this will lead to "more innovations and not to more inorganic growth.AZIM PREMJI INTENDS TO IMPROVE ON SUCCESSION PROCESS (Debanti) The Wipro Chairman. He has plans to open BPOs in other places across India like Vizag. but we are looking at it as expertise building. PREMJI FRAMES SUCCESSION PLAN (Sayani) 66 . This is a regular process." He continues by saying that in the next six months.

not as a Vice President. Wipro has a "powerful" succession plan in place for the top 10 per cent and bottom 10 per cent of employees. The tenure is decided by the nomination and corporate governance committee of the board that comprises external directors. it’s not customers. We have been moving well on that. Premji. Our experience is in certain conservative countries. The global head of sales and operations is an American lady in Wipro. Customers can be serviced by travel. "And that includes the chairman's job. He entered on merits. Over the years he has transformed the then fledgling 2-million hydrogenated cooking fat company to a $1. “the most acid test to globalisation is how much of your top management. The head of Europe is an Englishman. senior leadership is local. Premji. That doesn’t mean he necessarily has to be an active CEO of the company. being a process oriented company. 59." he had said. not just the soldiers. we identify at least two potential successors. has an 84 per cent stake in the company. According to Premji. It’s reviewed by the board in depth in terms of strategy once a year and some reviewed by the board between two to three times in the year. At an appropriate stage he can be an active member of the board representing ownership. who is ranked among the top 25 billionaires in the world. All CEOs today travel 100-150 nights a year that’s part of the hazard of being in 67 . Wipro. But those familiar with the punishing work schedule of Premji--often among the first to report for work--say this was unlikely in the near to medium term. The global head of consulting and global head of telecom Mr Mark Fleming is also an American.y said. The company went through the whole process of due diligence and getting interviewed by all the board members to remove the bias. "There is a lot of talent within Wipro Corporation.76billion IT services giant. “People are critical in this business. The same way. local talent is more accepted. follows a structured process for succession planning as well which includes even a chairman’s job. Any fool can do that. In an interview with Economic Times Mr Premji has thrown light on the following things: Succession Planning and Globalization at Wipro: According to Ajim Premji. It’s based on the best person for that particular job. As Premji rightl. those who have put in five years and those who are critical for the company. He has now become a general manager as he has gained experience with time. the head of Japan is Japanese. Wipro is systematically trying to induct talent which can rise quickly. There is no prescribed retirement age for the chairman at Wipro. so that in absence of his father he can take the charge of the position. the head of China is Chinese. Typically. Therefore when Premji’s son joined the organization. ” Therefore Wipro always focuses on hiring local talent to make their global presence successful. He represents ownership in a way. has drawn up a succession plan.Wipro Chairman Azim H." There is speculation that Premji may adopt more of a mentoring role over the next few years. had to join at the sub-general manager level. Industry officials say that framing a succession plan in Wipro is only in tune with best global practises.

RETENTION STRATEGIES FOR SUCCESSFUL SUCCESSION PLANNING (Lipsita) What makes Employees Stick to Wipro: • The company’s brand image 68 . as the company believes that if people have worked as a team. which is called co-CEO system. a joint CEO structure has been followed. That is the probable reason for experimenting with Vivek Paul. should have an Indian face to have a very high Indian familiarity.this job.this understanding has helped Wipro to put their SBU heads at the respective head offices. The manufacturing head is based now in California. because of the mass of employees ebbing in India.” In Wipro. energy and utilities head is based in London. so that the management comes to know the pros and cons. as it feels that for a position like that. Wipro always looks within the organization to place right people at the top. It has an advantage to position at least one of the CEOs in USA.. it ensures that there is no politics building among the employees or among the participants. All these units are roughly a little under billion dollars which represents 40% of Wipro’s revenues. part of the requirements of this job. So the healthcare head is based in Boston. It’s only when there is a vacuum within that it looks forward to the talent pool available outside. A CEO for Wipro’s operations. Therefore company finds the idea of putting the CEOs abroad a successful one since those SBUs represent half of their businesses. cultural continuity of the organization is very important.

movements.• • • • Compensation package Role and position Quality of colleagues Scope for growth and professional development Causes of high attrition rate in IT Industry: 1. Anxieties and apprehensions arising from • • • Restructuring. ranging from subpar people management to toxic culture. Wipro believes in making the Internal Forces work for Retention: ALIGNING LEADERSHIP & SUCCESSION PLANNING (Lipsita) 69 . change of tasks and responsibilities Marginalization. Although most people tell HR they are leaving for more money or a better opportunity. change of boss. Better opportunities outside 3. power politics Mergers and acquisitions 2. 88% change jobs because of negative factors in their current workplace.

This is reviewed by senior management which helps in determining key people and leadership potential. but the company regularly brings in talent from the outside which creates an opportunity to getting on board unique skills not available internally and also creates an opportunity to learn from other companies. The third step in the process is to decide on the ‘build vs acquire’ dilemma. For Wipro. Given Wipro’s scale. undergo a 360 degree assessment of their capabilities based on individual and collective behavior that the organization has identified as key qualities for a leader. For companies to build an institution they need to rely on its people and they need to focus on nurturing and developing talent. This helps HR in identifying the talent pool needed for critical roles and the type of training interventions required at each level. So those behaviors are tuned regularly to ensure that it is aligned to its business and customers. There is an underlying organizational philosophy. Typically. the leadership and succession planning consists of a systematic 4-step process that is designed to align the organizational leadership and its skills with core corporate strategy and goals. The company always wills to demonstrate its trust in the ability of these people by giving them key breaks. Today at Wipro the process of continuous learning has become sustainable and not people or team dependant. if the 70 . At the outset. In terms of career development. followed by a clear definition of what collective behavior will help achieve the vision in a manner compatible to the core values. the foundation is built using the group’s vision and goals and a reflection on what individual and collective behavior will help the organization achieve these goals. It is a way of life for the group. It does a lot of analysis with the data it receives from different sources. The next crucial step is to identify critical roles within the organization and create a process to ensure solid succession planning for those roles. Finally. senior management reviews around 400 managers as part of this exercise to identify candidates for key organizational and leadership roles. he set out to build an organization for sustainable success. The blend is important and allows it to be more porous and open to new ideas and fresh thinking. The company built the foundation of talent and leadership identification back in the seventies and today these practices are a norm across industries. Today. This complete process helps Wipro in assessing its leadership bench as well as assessing key organizational capabilities. Wipro has a very robust process called the Talent Review and Planning exercise that is conducted annually. These are revised regularly to keep the group tuned to the changes in its business model and its customer base. These demonstrated behaviors will ensure Wipro’s success and also determine areas where it needs to build internally using outside support to achieve its goals. there is a clear linkage with opportunities for progression and growth for those in the talent pool. When he repositioned it into an IT services organization. values & strategic vision. In this process all employees with managerial roles. Azim Premji inherited his father’s cooking oil business in 1966. Critical roles are then identified within the organization to achieve those business objectives. the decision is normally tilted towards building capability internally. This also evolves as its business context changes and its customer expectations evolve. there is an articulation of the company’s central beliefs.000 globally. approximately 12. Employees from the talent pool are entrusted with bigger roles and critical assignments.Wipro’s top management demonstrated the vision to develop leaders from within. he did not aim to just build a business.

For senior roles the company has created a program to facilitate the process of being aware of senior role openings across the group and also show interest in them in a much more confidential and sensitive manner. none of these factors have become issues either while recruiting or during succession planning. It creates a simplified and fast track process for these senior roles where they can show interest in senior openings and the process has a different and more premium feel to it. WOMEN IN WIPRO (Lipsita) Generally. 71 . The glass ceiling has been conquered here. In terms of compensation. While underlining the complexity involved at more senior levels. right at the top.Wipro has put its deserving women where they belong. This is the reason why some of the key roles at Wipro are played by women. Mythily Ramesh and Veena Padmanabhan. Nagamani Murthy. Global programs are consortium programs with other organizations that create an opportunity to learn and expand one’s thinking as well as establish networks. But still Wipro tries to capture their interest in a particular opening. Typically 9 out of 10 would succeed. people identified in the leadership talent pool have access to leadership development programs — both in-house and global programs. because people who have been in the system for long and are in senior roles will wonder why should I apply for an internal job as somebody already knows my capabilities and experience.individual is 60% ready for the role and the pointers are showing favorably. Wipro will give the individual the break. At Wipro. And it's also perceived that women need a higher degree of support in their work-life balance. which is across the board and not only for people identified as part of the leadership pool. A look at some of the Wipro family's top women: JAYASHREE Joglekar. companies and people have a mental block about women in top positions. In terms of internal succession planning and training. Finally people identified in the talent pool also have the opportunity to participate in strategic review meetings. Wipro realized that at senior levels a normal job opening process would not work. This could be either in reporting to them or working with them as team members. An inch neither given nor taken away because you are a woman and an equal opportunity to work your way right to the top. differentiation is based on performance and role.

She is of the opinion that. Wipro or India is not an exception. Wipro Technologies. some concessions are made. Vice-President and Business Head. but women employees get a lot of support from the senior management at Wipro which makes all the difference." With 20 per cent women in its people set-up. 01markets. there are challenges for a woman at a higher level in the industry which is true across the world. She ascribes her success to the culture prevailing in the company. But. Manager. At Wipro. While it's true that any service industry has more women than a traditional manufacturing set-up. it's pure performance that has got her to the top. Veena says even during her initial days in Delhi. of course. Talking about the macro issues of the subject. Not that life's easier at Wipro. the rule is you deliver and you succeed. Flexibility in work culture is what all these women vouch for. Another influencing factor was that Wipro was not an individual-driven company. her peers in the sales and support function never remonstrated about any bias. Talent Engagement and Development. Mythily Ramesh. No one personality ever rules at Wipro which is refreshing for its employees. This figure is a fair representation of the talent that is available for employment. who was a founding member of the 01markets team and has been a Wiproiite for the last 14 years. does not exist in the company's HR dictionary. nothing to shout about from the rooftops. It was part of the system. Talking about women-friendly practices. tie-up with a crèche or extended maternity leave. wherever required. Not one inch was given or taken away because of the gender factor.What makes Wipro one of the few companies (IT or non-IT) to have at least four women heading its various divisions? One reason why Veena Padmanabhan. a division of Wipro Infotech. chose the company after graduating from XLRI was because the company never beat the drums about its women-friendly practices. nothing else matters. like travel rescheduling. either positive or negative. Mythily feels in her case it's more to do with the culture of Wipro. Wipro goes beyond women-friendly practices. 72 . Discrimination.

SAMPLE FORMS (Lipsita) Succession Plan Summary 73 .

Executive Development Plan 74 .

Last but not the least who after Azim Premji. HR loosing imagination. WIPRO still needs to implement some changes in their training techniques to meet its competitors. Succession planning.Although WIPRO has the most charismatic leader in the country as its head. • • • 75 . Most of the time progressions are rewards for previous job well done rather than ability to execute the new assignment.The strategies developed by HR has failed to meet the industry standards.While TCS and Infosys have dedicated centers for training their entry level employees.Most of the senior people give me an impression that their growth into a role or their passing on the baton was never planned. but the people following him could not meet up to the standards of being his successor. the compensation needs to be reviewed in order to prevent the increasing attrition rate at WIPRO. The policies prevailing in the company.Plans for Selected Talent SHORTCOMINGS OF SUCCESSION PLANNING (Debanti) Although Wipro has implemented the best of practices in designing its succession planning but there are still some drawbacks in the system. The reasons are as follows: • Exceptional leader at helm. Weak entry level training program.

This can be used as a retention strategy which in turn helps in succession planning Training sessions should be more aligned to organization goals to make the employees more competitive Emphasis on ESOP should be more • • • 76 .This also creates a hindrance in the process of effective succession planning. RECOMMENDATIONS (Debanti) • Succession planning should be done in such a manner that backup is always ready and the company does not face severe problems in the absence of eminent personalities HR should be more proactive in reviewing the policies and practices in the organization . As per many employees. Possible reason may be that they feel that instead of the company gaining any competitive advantage only the chairman of the company is benefitting.• High stock ownership of Azim Premji. this somehow affects their belongingness to the company.

N Vaghul. had resisted all attempts at bringing his family into the company. the timing was a bit sudden. on June 5 this year. As independent directors on the board of Wipro. Rishad. a former chairman of HLL. Rishad had to face up to three industry stalwarts: Ashok Ganguly. the son of the man who controlled more than 80% stake in the company. a former CEO of Pepsico’s South Asia operations. he was barely a few months into his job at strategy consultants Bain & Company’s London office. Several months later. For the 31-year-old.A Long Term Succession Planning (A Case Study) Premji Junior joining the Company (Combined Contribution-Lipsita-Sayani-Debanti) It was in early 2006 that Rishad Premji first got an inkling that his life was about to change. received an interview call asking him to appear before the governance committee of Wipro. So far. one of the India’s best-known software firms. They had to see if Rishad. one of India’s richest men. was fit enough to join his dad’s company. his father Azim Premji. who was fresh out of Harvard Business School. Wipro was a professionally managed company and Mr Premji did not want any talk of nepotism tarring that reputation. non-executive chairman of ICICI Bank and PM Sinha. the three gentlemen had an onerous duty to perform. Wipro’s communications office put out a terse two-line 77 .

in a telecon with journalists. The patriarch apparently had agonised over the enormous conflict in his mind about inducting a family member into the company. has dealt with the issue does stand out. Yet many promoters. None of this would have happened if Premji had his way. I am really excited about the prospects of joining Wipro. It has therefore given rise to constant rumours.press release that simply stated that Rishad “will be joining Wipro at a level commensurate with his background and experience”. who headed the governance and remuneration committee. quit in June 2005. That the Premji family zealously guards its privacy is evident from Rishad’s response to an email from ET: “Thank you for your email and interest. the transparent manner in which the Wipro board. It had been widely speculated then that Rishad would join Wipro soon. Perhaps the fact that he had packed his board with some of the finest names in the business in the end helped. Despite the obvious reluctance inside Wipro to share the specifics of Rishad’s unobtrusive entry into the company. kept the news of Rishad’s entry tightly under wraps. By no means is it the only such example. They help the company see if the decision-making can stand the test of outside scrutiny and acceptance without having any kind of bias or getting clouded by internal decision making process. to convince Premji that there was nothing illegal or unethical about bringing a family 78 . like Professor Jagdish Sheth and Dr Ganguly. from a fresh perspective. Since then. which has all along refuted claims that Premji’s successor will be one of his sons. still approach the task of inducting a sibling or a family member into a publicly listed company. According to some Wipro insiders. The speculation refused to die down when Premji did not look for another CEO. Later that day. Kumar insisted that this wasn’t a succession plan and that Rishad was joining Wipro as an employee. Wipro’s last CEO. Even a request for his photograph was found inappropriate by the company. president.” says Sridar Iyengar.” All that a senior Wipro employee and Mr Premji’s direct reportee is willing to say is that “Rishad is a good addition to the company”. with considerable diffidence. which started ever since Vivek Paul. Wipro. but I will not be able to talk to you. Only Premji’s direct reports who include people like CFO Suresh Senapathy and HR head Pratik Kumar knew about it.. So far. the company has blocked all attempts to discuss the issue. the fact that the Wipro board had stepped in to put in place a process to manage Rishad’s entry into the company has remained under wraps. consisting of six independent directors and chairman Premji. Instead he chose to run Wipro like a federation with presidents in charge of each business division. The Indus Entrepreneurs and former chairman and CEO of KPMG. Sources close to the family say that it took enormous persuasion from influential members of the board. India. the company was forced to release a statement earlier this month because the news had already leaked out. “One of the key responsibilities of independent directors is to help the company look at issues with a fresh set of eyes. there’s one simple reason why the story is significant: it signals a marked change in the way family-owned businesses in the country deal with generational transitions. In contrast.. I am sorry. even those with professional boards..

Not only was he talented and personable. they were fully qualified and highly educated in the best business schools in the world. Wipro had done particularly well that year. While Premji sits in the Wipro corporate office at Sarjapur. Vivek Paul’s somewhat unexpected exit provided the independent directors enough ammunition to influence the chairman’s mind. where the Walton family is part of the management. especially since these days. He was told that there were several examples of companies. which is a statutory requirement because Rishad is related to a director. On that day Mr Premji. Rishad was also well-trained. which last year earned $500 million in revenue. On April 19. there was intense speculation within Wipro about Rishad being made the CEO. Sources close to the board say that the governance committee met Rishad in a formal interview and later an informal session was set up with the entire board. He seemed to have natural leadership qualities and a good understanding of marketing and finance. in all likelihood.” According to him. he will formally join Wipro. Says a senior Wipro manager. have an office in Wipro’s Electronic City campus.member into the company. If Rishad was interested in coming back to the country. all over the world where there was a proper process to induct family members in a transparent manner. Sources close to the board say that the board told Premji that one way to quell the constant speculation about the succession issue was to actually take it head on. His salary would also be fixed according to the company scales. But it wasn’t business as usual in this meeting. revenues had grown by 41% to touch Rs 15. the governance committee recommended that Rishad be inducted into the company — as a business manager in the banking and financial services vertical. the family wealth had done little to affect his sense of balance and proportion. also sought the board’s approval for bringing Rishad into the company. Go through a formal process of evaluating Rishad. board of directors of Wipro met to approve the company’s annual results for 2006-07. 79 . Dr Ganguly & Co were impressed with what they found. but for now there is no succession plan. They also told him that the lines were blurring between professional CEOs and family members. After the session.000 crore. For now. where after seeking shareholders’ approval. Rishad will. “Someday he is going to inherit his father’s wealth. experience and leadership qualities. the governance committee took on the mantle of interviewing Rishad. They looked closely at his education. father and son will occupy different offices. and if he was capable give him a role commensurate with his experience and skills. After Paul left. it made sense for the board if he fitted into Wipro. the arrangement is similar to Wal-Mart. In these days of talent shortage. For the time being. all eyes are on the July 18 AGM. What’s more. Finally. 2007. why allow him to work in another place if he was competent? And to check whether Rishad was fit enough. Wipro continues to play down the importance of Rishad joining the company. but has left the running of the company to a professional CEO.

THANK YOU 80 .