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Tata Group

Strategies for effective Succession Planning and Internal


Leadership Training

Chennai 5th July 2007

February 24, 2011


India’s Largest Business Group

India’s Best Known and Most Respected Business House

Diverse Business in 7 Sectors

Revenues Equivalent to 2.7% of India’s GDP

Largest Employer in the Private Sector


International Income 30% of Group Revenue
Products and Services Exported to 85 Countries
Operations in Over 80 Countries
Group revenue FY 2006: $27.5 bn

Group Profit FY 2006 : $ 3.8 bn


Historical OverviewBusinesses Entered

Businesses
Exited
1880-1925 1925-1950 1950-1975 1975-2000 2000 onwards
Textiles Printing Cosmetics Pharmaceutical Insurance
s
Hospitality Airlines Air-conditioning Control Systems Home
Entertainment
Steel Chemicals Commercial Financial Drug Discovery
Vehicles Services
Power Consumer International Watches Realty
Electronics Trade
Cement Property Tea & Coffee Oil Drilling Financial
Development Services
Soaps and Locomotives Information Telecommunica
Toiletries Technology tions
Passenger Cars

Auto-
Group Today - 7 Business
Sectors
Materials Energy
 Tata Power
 Tata Steel
 Tata BP Solar
 Advance Materials

Services
Chemicals
 Taj Hotels
 Tata Chemicals
 Tata AIG Life &
General Insurance  Rallis
Companies

Consumer IT and Engineering


Products Communications
 Tata Tea  Tata Motors
 Tata Consultancy
 Titan Services  TACO Group
 Trent  Tata Teleservices  Voltas
 VSNL

28 Listed Companies ; 280,000 employees


Group Revenue
Rs. Cr
1,20,000

96,723

79,912

65,424

54,227
49,457
41,290
38,607
34,30034,591 34,291
29,100
24,702
18,953
14,087 15,995

91- 92- 93- 94- 95- 96- 97- 98- 99- 00- 01- 02- 03- 04- 05 06
92 03 94 95 96 97 98 99 00 01 02 03 04 05 06 07
Group PAT
Rs. Cr
11,500
9,461
7,945

5,714

3,893
3,431
2,706
2,365
1,831 1,9561,8611,987
1,132 1,098
773 724

91- 92- 93- 94- 95- 96- 97- 98- 99- 00- 01- 02- 03- 04- 05 06
92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
Growth Agenda

1. Domestic Leadership

2. Globally Competitive

3. Internationalisation

4. Expand Addressable Market


Going Global

2000-05 2005-06 Green Fields

Tata Motors – Daewoo HV

Tata Chem – Brunner Mond Tata Tech - INCAT

IHCL - The Pierre Tata Tea - Tetley Tata Tech - Cedis

TACO – Wundsch Weidinger


VSNL - Tyco Global Network
Tata Chem - IMACID
Tata Interactive – Tertia Edusoft

Tata Steel – Millennium Steel


Tata Tea- Good Earth Tata Motors – Hispano Carrocera
VSNL - Teleglobe
IHCL – Blue
Zambia: Bus body building plant: Tata Zambia

South Africa: Ferro Chrome Plant: Tata Steel


TCS - Comicrom Second National Operator: VSNL
Tata Steel – NatSteel
Uganda: Coffee
plant: Tata Coffee Tata Steel – AMCI

Bangladesh: Steel Plant; Tata Steel TCS- Financial Network Services


Fertiliser Plant: Tata Chemical
Power: Tata Power
Global Acquisitions

2000 – 2004 2005 - 2006


Tata Tea Tetley Group, UK Tata Motors Hispano Carrocera, Spain
VSNL Gemplex, US Tata Steel NatSteel Asia, Singapore
Tata Motors Daewoo Commercial Vehicles Tata Chemicals Imacid
VSNL Tyco Global Network, US VSNL Teleglobe, US
TACO Wundsch Weidinger, Germany
Tata Technologies INCAT International, UK
Tata Tea Good Earth Corporation, US
TCS FNS, Australia
TCS Comicrom, Chile
Tata Steel Millennium Steel, Thailand
Indian Hotels W, Sydney , Pierre NY
Tata Chemicals Brunner Mond
Tata Interactive Tertia Edusoft GmbH, Germany
& Tertia Edusoft AG,
Tata Coffee Eight ‘oClock Coffee, US
Tata Tea Energy Drinks

2007
Tata Steel Corus
IHCL Boston, San Francisco
India - Changing Demographics will significantly affect
Industry.

Demographic Structure Population


( millions 、 2005 ) ( 100million )
80+
M 70-74 F 18
60-64 16
India

50-54
14 India
40-44
Total
30-34 12 China
20-24
10
80 40 0 10-140 40 80

0-4 8

4
80+
2
70-74
60-64 0
China

50-54 2000 2010 2020 2030 2040 2050 India Age


40-44 China between
30-34 15-34
20-24
80 40 0 0 40 80
10-14
0-4

Source : World Population Prospect (United Nations)


Talent Management @ Tata
Tata Talent Pipeline

Initial Feed Lateral Feed Performance and Training Mobility


GET, MT’s Potential Filters

F E ED
HPM
e ed
F

HPM
Initial Feed Identification
TAS Process
GCAT
HRDP , Legal Leadership
Training Mobility
International Development
Interns
Introduction to PPM

Systematic and periodic discussions held for identifying and calibrating


capability of managerial employees to build leadership depth and talent
in the organization.

The focus of PPM’s


 Identification
 Calibration / Classification
 Development
PPM Building Blocks

 Individual Development Profiles

 PPM Panel

 PPM Schedule
Individual Development
Profile
 IDP is a fact sheet about the individual.

 Is prepared by the manager of the employee.

 Is endorsed by the Function/SBU Head and finally signed off by the CEO of the
company.

Personal Details: Age, Work & Career


Education Details

Development Plan Performance


IDP
Data

Tata Work
Tata Leadership
Level & MCPA
Practices Data
Assessment
Tata Leadership Practices

Leadership of Results Leadership of Business Leadership of People

Drive for Results Managing Vision & Purpose Taking Ownership

Timely Decision Making Strategic Capability People Development

Customer Focus Dealing with Ambiguity Interpersonal Effectiveness

Innovation Management Business Acumen Withstanding Pressure

Functional Excellence Building Effective Teams


The PPM Panel

Co 1 Co 2 Co 3 Co 4 Co 5 Co 6

GCC 1

GCC 2

GCC 3

GCC 4

Peer MD 1

Peer MD 2

Peer MD 3

Peer MD 4

EVP Group
HR

MD/CEO

HR HEAD

Typical Panel consist of at least 1 GCC member , 1


Peer MD , Co MD , Co. Head HR and EVP Group HR
Talent Management Schedule

1 Annual Performance 2 Talent Review within 3 Presentation of Talent


Review & Development Business Unit/Function Review by BU /
need discussions with Functional Leaders to
individual employees MD/CEO
Manager / Employee BU Leadership Team & CEO
BU Leadership Team Jul - Aug
Apr - Jun Jun - Jul

5 4 Talent Review at Company


Implement Development & Movement level
plans
•In Company Identification of HPMs and
•Cross Company / Group Level their Development and
Movement Plans
CEO & HR Head
7&8 Sep - Mar CEO & HR Head
Aug

6
Implement agreed cross Group PPM discussions
company Movement
Agree on Development &
plans & Group level
Movement plans
Development programs
CEO & Head HR and CEO & Head HR and
Group HR GCC / Peer MD / Group HR
Oct – Sep Sep – Feb
HPM -
Classification
X Cross Company Cross Company
In Function Cross Function
C
o
m
p
a In Company In Company
n In Function Cross Function
y

IN Function X
PPM – Outputs

Identification / Classification

Development Plans

Company Initiated Training


Assignments
Mobility
Training
Assignments
Mobilty
Group Initiated
Development of Talent
How Does Development take
place?

•10 % Training Courses

•20 % Interaction with People


• Coaching, Mentoring, Experts, Colleagues

•70 % Challenging Jobs


Tata Leadership Development Programme

International
Consortium TGSLS
Program
Level C+

TGELS
Level D and C
Functional
Leadership
Programs

TGYLS
Level F and E

Over 800 managers covered in last 5 years and over 65%


are from HPM list
Thank You