Organizational Transformation

In

Arun Kabra 11BM60046

etc. The Group compares with global standards of performance while taking care of its people. Bringing in Transformation: Transformation efforts require exceptional leadership abilities. Retail. apart from ten key locations in India. Birla Sun Life insurance and More Supermarket chain to name a few. Speaking generally transformation of an organization is often seen as the leader s responsibility to address but the subordinate s task to receive and implement. He is leading the various business units spread across Thailand. etc with the brand names like Hindalco. converting setbacks into opportunities. Aditya Birla group: Aditya Birla group is a US $35 billion corporation. Kumar Mangalam Birla took over the reins of Aditya Birla Group (ABG) in 1995.000 employees. Telecommunication. Insurance. Their rewards are directly linked with people contributions and are devoid of nepotism. Collectively refers to the activities such as the reengineering. Transformation is about turning aspirations into reality. Mining. From 1997 to 2008. redesigning and redefining business terms. These transformational changes at Aditya Birla Group can be seen through following categories: Transformation through Values 1) Value-driven governance The group s value orientation is driven from the top. . It is has over 133. even if it would benefit the group. Agribusiness. showing care. Indonesia and Egypt. by Mr. This is a group where the chairman personally wrote to each of the CEOs advising them not to take shortcuts with law. Started in year 1969. beliefs. and even create new underlying principles for the way things are done. The Aditya Birla Group is in the League of Fortune 500.Organization Transformation: Organization Transformation implies radical changes in how members perceive. and/or mission of an organization. think and behave at work. Aditya Birla. Chemicals. Idea Cellular. Transformation is meant to identify. purpose. belonging to 42 different nationalities. concern and extending help when needed. Grasim. favouritism. Essel. 2) Towards meritocracy with a personal touch The Aditya Birla Group makes efforts to treat people not as performance resources but as members of the family. Non conventional energy. business of Aditya Birla group includes Textiles. having scaled many new heights in preparing the company into becoming a global giant in the 21st century. the organization has seen an exceptional transformational journey. UltraTech Cement. leverage. Leaders must have both the capability to formulate a compelling vision and the skills to organize and manage the change processes. Philippines. It includes changes in the core values.

Transformation through organization development: 1) Managing change with continuity The Aditya Birla Group has made great strides towards globalization. the group has successfully moved from the preponderant traditional economy business to new economy businesses like telecom. They have invested in developing a global mindset and cross cultural sensitivity among its key people through exposure and training in top B-schools. Barriers to Transformation: 1) Technical a. South East Asian countries and China. insurance and retail. Today. Slow growth due to following of legacy business administration process . since it plays a critical role in fostering innovation. South America. Through various acquisitions. enhances the competitiveness of the organization. Their growth strategy is supported by the strategy of consolidation restructuring the Group into Strategic Business Units (SBUs) which is headed by its respective CEO. and robust succession planning. the group had operated only in five countries including India. and towards building collective leadership. The key markets identified as areas for growing its business include Europe. The group emphasizes on building its leadership talent through the use of best-in-class global practices such as 360 degree appraisal. making it a true MNC and a transnational Goliath . assessment centre. which in turn. This transformation within a span of 12 years has been mainly possible due to Aditya Birla Group s continuous focus on the need for change to evolve for greater competitiveness. shifting to new economy businesses. Transformation through Reengineering: 1) Global expansion Till 1997. mentoring. the quality of people is most crucial. 2) Robust growth strategy The group aims to double its revenue to $60 billion (from its current $29. their operations has grown to 25 nations. Leading global operation from central office at India 2) Business Process a. which clearly indicates the ambitious growth strategy of the group. including new mindsets in line with emerging challenges and demands. 2) Futuristic and forward-looking Group The capability of an organization to capitalize nascent opportunities is governed by its futuristic vision and forward-looking orientation. Communication till the bottom line b.9 billion) in the next 5 years.3) People centricity Among the various pillars of competitiveness.

Leading heterogeneous mix of people 4) Governance a. Ability to manage time effectively b.3) Organizational and Managerial a. Brutal and harsh feedback about working at organization . Ability to plug in to the minds and hearts of people c.

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