final- change mgt godrej

8/19/2019 Final- Change Mgt Godrej

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• INTRODUCTION: THE GODREJ GROUP

History

Godrej Group is an Indian conglomerate headquartered in Mumbai, Maharashtra,

India. It was founded by Ardeshir Godrej and Pirojsha Godrej in 18!,

"albaug, Mumbai.

#he Godrej Grou$ is one of the res$ected business houses of India. #he grou$ has

di%erse business interests ranging from engineering to $ersonal care $roducts.

&om$anies o$erating under the Godrej Grou$ are in%ol%ed in a host of businesses '

from loc(s and safes to ty$ewriters and word $rocessors, from refrigerators and

furniture to machine tools and $rocess equi$ment, from engineering wor(stations

to cosmetics and detergents, from edible oils and chemicals to agro $roducts.

Godrej Grou$ is also well'(nown for its $hiloso$hy and initiation of labour

reforms.

Its founder, Ardeshir Godrej, was a staunch nationalist and belie%ed that Indiacannot win freedom unless it is economically self'reliant. )eginning with security

equi$ment and soa$s, the grou$ di%ersified into a wide %ariety of consumer goods

and ser%ices.

http://en.wikipedia.org/wiki/Conglomerate_(company)http://en.wikipedia.org/wiki/Mumbai,_Maharashtrahttp://en.wikipedia.org/wiki/Ardeshir_Godrejhttp://en.wikipedia.org/wiki/Pirojsha_Godrejhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbai,_Maharashtrahttp://en.wikipedia.org/wiki/Ardeshir_Godrejhttp://en.wikipedia.org/wiki/Pirojsha_Godrejhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Conglomerate_(company)


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• Godrej Group Companies:

Godrej & Boye !"#$ Co$ %td$: Godrej * )oyce manufactures a s$ectrum

of consumer $roducts and industrial $roducts. #he &onsumer $roducts

include A$$liances +efrigerators, -ashing Machines, Air &onditioners,

Microwa%es, and / Players0, "oc(s, urniture, 2ecurity 3qui$ment,

4ffice Automation, &onferencing 2olutions, and %ending Machines.

Industrial Products include 2torage 2olutions, Automated -arehousing,

Material 5andling 3qui$ment, Process 3qui$ment, Precision &om$onents *

2ystems, Machine #ool 2er%ice, 3lectrical * 3lectronic, #ooling, and

&onstruction Material * 2er%ices.

Godrej Consumer Produts %td GCP%': Godrej &onsumer Products is a

leading $layer in the Indian M&G mar(et with interests in $ersonal, hair,

household and fabric care segments. Godrej &onsumer Products is the

largest mar(eter of toilet soa$s in the country with leading brands such as

&inthol, airglow, and Godrej 6o 1. #he com$any is also leader in the hair

colour category in India and offers a %ast $roduct such as Godrej enew

&oloursoft "iquid 5air &olours, Godrej "iquid * Powder 5air yes to

Godrej 7esh 7ala 4il, 6u$ur based 5air yes. Its liquid detergent brand

3ee is the mar(et leader in its category.

Godrej Industries %td$: #he com$any is India9s leading manufacturer of


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oleochemicals. It also has major $resence in food $roducts such as refined oil and

tetra$ac( fruit be%erages.

Geometri (o"t)are (o*utions: It is a &MMI "e%el : &om$any and the leading

P"M ser%ices $ro%ider.

Godrej In"ote+: #he com$any is engaged in the business of de%elo$ing

customied software solutions and im$lementing 3P, &M, 2&M software

Godrej ,#ro-et: Godrej Agro%et is one of the largest $roducers and mar(eters of

animal feeds and inno%ati%e agri'in$uts India

Godrej (ara %ee: It is a joint %enture between the Godrej Grou$ and 2ara "ee

&or$oration, ;2A. #he com$any is the world9s largest manufacturer of home

insecticides. Its brand 5I# is %ery $o$ular in India

Godrej E"ae: #he com$any $ro%ides warehousing, automated storage and

retrie%al system solutions

Godrej Properties and In-estments %imited G$P$I$%': Godrej Pro$erties

$ro%ides meticulously $lanned townshi$s at affordable $rices.

!ajor e-ents in t+e #ro)t+ o" Godrej:


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• 18! ' Godrej is established in 18!

• 1


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• =


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• )rand name B %ery loyal customer base, brand associated with durability and

quality +es$ecially due to the $roducts li(e steel cu$boards, loc(s, steel

furniture, safes0

• 6ational $resence B #he grou$ has been able to establish itself in %irtually

e%ery district of India through a networ( of dealers, distributors and

branches reducing mar(eting costs tremendously. #he trade is nurtured

meticulously using a multi'tier a$$roach +localDregionalDnational contact0.

#he trade $artnershi$ sometimes runs into the second generation also.

• Peo$le B most %aluable asset

• elationshi$s B nurtured with dealers and su$$liers B dri%es down traditional

mar(eting costs

!i*estones o" t+e Godrej #roup:


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Or#anisationa* (truture:


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Godrej grou$ of com$anies is one of the largest $ri%ately'held di%ersified

industrial cor$orations in India. Godrej Grou$ com$rises of more than =<

com$anies. Post'liberaliation Godrej mo%ed from a $roduct di%ision structure to

2trategic )usiness ;nit structure +inde$endent units0 and entered into a number of

alliances. #his has led to

• Increased interaction between cross'functional em$loyees

• luidity in the organiational structure


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• CONTE0T 1OR CH,NGE

#he Godrej story started in 18!, when Ardeshir)urjorji Godrej +Ardeshir0 ga%e u$

his legal $ractice and started manufacturing loc(s in a small shed at "albaug near

Mumbai. #hus was G)M" born. 5is brother, Phiroshah Godrej +Phiroshah0,

carried on the $ioneering wor( and in 1


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#he entire distribution networ( of Godrej was transferred to this com$any and the

joint %enture was entrusted with the tas( of mar(eting both Godrej and P*Gs

toilet soa$ and detergents brands.#he 3)3 di%ision was s$un off into Geometric

2oftware 2olutions "td in 1? to offer com$lete solutions to customers. In 1?,

Godrej %entured into the insecticide mar(et through G2", which bought !:F sta(e

in #ransele(tra omestic Products P%t "td +#P"0, the manufacturer of the HGood

7night brand.In 1:, Godrej entered into a joint %enture with the ;2

multinational, 2ara "ee and the new concern was called Godrej'2ara "ee. #he

%enture was the worlds largest manufacturer of mosquito re$ellents. In August

1>, P*G'Godrej "td, terminated the arrangement and Godrej re'too( charge of

mar(eting its soa$ * detergent brands but without a distribution networ( of its

own. In 1, G2" sold ==.: $er cent of its shareholding in Godrej'2ara "ee to the

grou$ holding com$any G)M" for s ?.! million. Godrej Infotech "td was

incor$orated in 1 to offer software solutions. In March = with the brea('u$ of the joint %enture between Godrej 2oa$s "td +G2"0 and

Proctor and Gamble +P*G0. Post brea('u$, G2" was bereft of a distribution

system and had to start from scratch.

• CH,NGE INITI,TI2E( T,/EN UP IN GODREJ

,CTION3ORG,NI(,TION ORIENTED CH,NGE(

CORPOR,TE RE(TRUCTURING


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A cor$orate restructuring $rocess commenced. Godrej 2oa$s "td demerged into

two entities J Godrej &onsumer Products "imited and Godrej Industries "imitedK

the foods business of Godrej oods "td was hi%ed off and ta(en o%er by Godrej

Industries. #he com$any has embraced globalisation in its truest sense, he says, as

it has manufacturing facilities in Malaysia, Indonesia and /ietnam.#he Grou$ also

$runed Agro%et9s retail $lay. Letail was haemorrhaging the com$any. -e would

jo(e about how the $rofit from our animal feeds business was $aying for our retail

losses. -e did not ha%e the dee$ $oc(ets to sustain the o%ersold o$$ortunity in

rural retail,L says 7ahn. Aadhar was sold to the uture Grou$ while 6ature9s

)as(et was brought under Godrej Industries and billed as a %anguard brand.

456056 (TR,TEG78

Adigodrej encourages all the em$loyees to wor( on this strategy which means

growing ten times in ten years.

E!PO9ER!ENT O1 THE ,CUIRED CO!P,NIE(

#hey do it by em$owering the com$anies they acquire. #hey generally ha%e a

strong entre$reneurial culture, which we li(e to $reser%e. #hey may need hel$ from

us to better their business $rocesses, say better I#, better technology, etc., but they

try to $reser%e their em$owerment and decision'ma(ing $rocesses as much as

$ossible. #hey could ha%e a $roblem here because they get some su$er%isory

managers here who wants to be consulted on e%ery decision ta(en and they ha%e a

tough time trying to a%oid that. #hey (now that controlling doesnt wor( too

well, so they try to ensure that some of the disad%antages the larger multinationals

ha%e dont cree$ into our o$erations.

TOT,% U,%IT7 !,N,GE!ENT T!' 9OR/(HOP(


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Godrej started total quality management +#M0 wor(sho$s in 1:, to inculcate a

N$ositi%e wor( culture in the com$any. In 1!, all the :,


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founding fathers by stri%ing to achie%e, in its own little way, what Gandhiji had

said, in reference to trusteeshi$, a just equitable society.

PEOP%E ORIENTED

OPENING CO!!UNIC,TION CH,NNE%(

Adi himself ac(nowledge sthe fact that he was not a good listener but has tried to

im$ro%e himself o%er the time. H#ill a few years ago, I didnt really listen to what

others had to say. I ha%e tried to change that. 6ow, I ma(e an effort to listen

carefully when a suggestion is made, or when someone is ma(ing a $oint.Adi

Godrej in an inter%iew with Inc."istening to different businesses has also hel$ed

the grou$9s en%ironmental efforts. #ina #ri(ha, associate %ice'$resident of strategy

and $lanning, GI, recounts that suggestions on water har%esting, sa%ing $ower and

im$ro%ing engineering efficiency ha%e flowed freely between the &hemicals,

Agro%et, G&P" and Godrej * )oyce units. Most of all, listening hel$ed in

correcting Godrej9s cor$orate image. -hile earlier its range of indestructible safes

and de$endable fridges ga%e it a halo of trust, the association got fuy with time

as the grou$ started focusing on other categories.

A $rogramme called 9)edhara( )olo9 to$$ed off by an annual award initiated eggs

em$loyees to s$ea( their minds at the meetings, including u$country young

managers who might hesitate in a cor$orate en%ironment.

1OCU( ON ETHIC( ON 2,%UE(

Adi belie%es on not com$romising %alues. /alues can be dynamic. 2ome come

from tradition rather than fundamental ethics and some of those need to change.


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)ut the %alues that come from fundamental ethics should not change in the words

of Adi himselfH-hen I started in the business, most $eo$le retired from the

business. #hat was not uncommon. A lot of Indians now dont thin( of staying with

the same com$any for more than fi%e years. 5owe%er, you do get a situation where

$eo$le ha%e contributed quite well in the early $arts of their career but are not able

to adjust to the times. 4ur tradition used to be to tolerate some of that.

4n corru$tion, Godrej said a multi'$ronged strategy was needed to curb the social

menace.

LI don9t belie%e corru$tion will come down only because of $unishment and

eE$osure. &orru$tion will come down when the reasons for corru$tion come down.

2o trans$arency must be brought in. Any sale or $urchase by the go%ernment

should be done by $ro$er and o$en tenders,L Godrej said.

P,RI2,RT,N

In =


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team of 18 senior eEecuti%es from all di%isions s$anning sales, logistics and 5

were called on to $ro%ide necessary in$uts

ECONO!IC 2,%UE ,DDED E2,' TR,INING

In =


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#he objecti%e of the 2$ar( $rogramme, initiated by GI" in 2e$tember =


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• TECHNO%OG7 CH,NGE(

I# is used eEtensi%ely in the grou$. #hey were among the first in India to introduce

enter$rise resource $lanning +3P0 systems about 1= years ago. 3%er since, they

ha%e concentrated on eEtending our reach from our %endors to their distributors

and retailers. &onnecting e%eryone using their I# infrastructure hel$s them (ee$

tight control o%er their wor(ing ca$ital and manage their business better. It hel$s

them tremendously in ensuring that our logistical systems and su$$ly'chain wor(

efficiently. #his (ee$s our costs down, a benefit our customers e%entually see.#hey

ha%e established strong connecti%ity with our distributors +$roject 2am$ar(0 and

su$$liers +$roject 2ahyog0 by de$loying a su$$ly'chain management +2&M0

system. 6ow we intend to reach out to our retailers. #his is going to be quite a

challenge since we deal with about three'and'a'half million retailers. 6o country in

the world, other than &hina, has as many retailers and there are no ready solutions

we can turn to. -e are wor(ing on %arious I# solutions em$loying different

technologies, such as mobile messaging, to ma(e it ha$$en.

• (TR,TEG7 CH,NGE(


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domestic mar(et. Godrej &onsumer Products is the leader in hair colours and dyes

with brands li(e Godrej 3E$ert, enew and &olour 2oft.

#he strategy was redefined in such a way so as to establish connect with the

customer.#hey decreased the amount of teEt declaring benefits on the $ac(s. It

was more to'the'$oint. #hey did not claim 1


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• /,I>EN

/ai?en ' #he 2ystem empo)ered emp*oyees, through a to$ management dri%en

formal announcement of freedom to all em$loyees, to concei%e and im$lement

im$ro%ements +7aien0 continuously in the organiation. #his %iew differed from

the traditional %iew, where em$loyees are required to chec( with their su$eriors

before introducing any changes.

#here is one more condition. #he im$ro%ements should be made with ero

in%estments. #hough a fleEible a$$roach, it recommends that the em$loyee should

eE$lore ero in%estment route first before money is sanctioned as in%estment.

A$art from easing the obtaining of sanctions for im$lementation of $ro$osed

change, it "ored t+e emp*oyee to .eome more reati-e. 2timulation of

creati%ity leads to %isible human resource de%elo$ment. #he increased in%ol%ement

of em$loyees also created trust in the management.

6on'Monetary awards, li(e to(en gifts, and recognition were gi%en to em$loyees

who contributed to the im$ro%ement.


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• /OTTER@( !ODE% O1 CH,NGE 1OR T!

I!P%E!ENT,TION

Creatin# a sense o" Ur#eny

Many de%elo$ing countries, including India, switched focus to I24


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• #as( forces were initiated

Creatin# a 2ision

OO/isioning sessions were held to select &or$orate 2hared /alues which are

3nsuring consumer satisfaction for the sim$le reason that consumers are

why one is in businessKManaging $rocess,

&hanging from relying on detecting errors to $re%enting errorsK

&ontinuously im$ro%ing in the belief that there is always room for

im$ro%ement not only with big im$ro%ements but also with small

incremental im$ro%ementsK

-or(ing together as a #eam, the whole being greater than the sum of its

$artsK and

3ncouraging $ersonal initiati%e, with em$loyees fired by the (nowledge,

s(ill and desire to $ersonally succeed in a way that leads to collecti%e

organiational success.

Communiatin# t+e 2ision

A formal announcement was made by the managing director and chief eEecuti%e

officer, according freedom to all em$loyees for ma(ing im$ro%ements at their

wor($lace. It made to$ management su$$ort com$letely %isible.

Empo)erin# ot+ers to at on t+e ne) -ision


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reedom was gi%en to all em$loyees to ma(e im$ro%ements at their wor($lace.

#he im$lementation was to$ down, with the to$most managers in%ol%ed first.

Many of the im$ro%ements are $ublished through an in'house news'circular, which

$ro%ides a mechanism for awarding recognition to those desiring it. 6o monetary

$ayments are made to the em$loyees for ma(ing im$ro%ementsK it is treated as $art

of normal wor(.

• Monthly meetings of all em$loyees are held in grou$s, where they are gi%en

siE minutes each to re$ort all the im$ro%ements they ha%e im$lemented

during the $receding month. iscussion or comment is $rohibited, because it

often leads to demoti%ation of the s$ea(er. emar(s li(e H-hy did you not

thin( of doing this im$ro%ement beforeR made by the boss, can demoralie

the em$loyee. Protection from demoti%ation is $ro%ided in the (aien

meetings by the rule of Hno discussion or comments.

• eedbac( is $ro%ided by a system whereby the su$erior e%aluates the

im$ro%ements heard in the (aien meeting by awarding mar(s on a


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A reduction of o%er !< $er cent in changeo%er time on the sho$ floor was

achie%ed in all Plants$

• #he quic( res$onse to mar(etings needs reduced finished $roducts

in%entory by o%er ?< $er cent maintaining the same ser%ice le%el.

Conso*idatin# Impro-ements and Produin# !ore +an#e

• Introduction of the &II'3SIM )usiness 3Ecellence Modelin 18'K =<

em$loyees undergo s$ecial training as OOAssessors for the &II'3SIM )3

Award.

• 2elf'Assessment of all businesses conducted as $er the &II'3SIM )usiness

3Ecellence ModelK 2trengths and Areas for Im$ro%ement listed for each of

the criteria in the Model.

• #M Awareness $rogrammes conducted for business $artnersC 2u$$liers,

&* Agents, istributors, etc.

• #PM initiated at Pondy actory +G2""0 and /alia actory +G2"0K

• 2iE'2igma initiated at Pondy actory.

Institutiona*i?in# ne) approa+es

2$ecial focus on integration of business strategyD$lans and #M through audits


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• RE(I(T,NCE TO CH,NGE

1. 1ear o" *oss o" statusC #he #M im$lementation was leading to

em$owering the em$loyees by remo%ing the bureaucracy in the organiation

structure which was met with resistance from the manager cadre since they

were not too sure about the need of the #M im$lementation as they already

had certifications to lower the o$erational costs but those certifications were

not effecti%e and hence, they doubted the effecti%eness of #M

im$lementation.

=. Buy;in "rom emp*oyeesC #he em$loyees had to be trained for #M

im$lementation to get them better acquainted with their jobs but the training

was met with resistance as the em$loyees didnt had any say in the initial

$hase of the change $rocess. #hey were just being informed about the start


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of #M im$lementation. #he em$loyees were concerned about the time

commitment which was needed in the training.

@. T+reat to Jo. (eurity: 2ince the #M im$lementation required educated

em$loyees and they were being trained accordingly for that $ur$ose but it

also led to a fear among em$loyees about their job security in the com$any,

s$ecially the em$loyees in the lower cadres. #he lower cadre em$loyees

resisted this im$lementation as they didnt understand the need of #M

im$lementation.?. Ina.i*ity to *earn Aui*y and too mu+ pressure on emp*oyees C #he

lower cadre em$loyees found it hard to co$e with the amount of time

commitment needed for the training $rograms designed for them and there

was $ressure on the em$loyees to find new ways to im$ro%e the $rocess

e%ery time. Although they were em$owered but too much $ressure on them

also led to demoti%ation among em$loyees.

:. C+an#e in t+e )ay t+e jo. )as per"ormed )it+out any in"ormationC #he

em$loyees found it difficult to co$e u$ with the way their jobs were

changedK the $rocess was too fast for them to co$e with it.


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• I!P,CT O1 /,I>EN ON 1IN,NCE

#able gi%en below com$ares the $erformance of Godrej %is'T'%is American and

a$anese. #he data $ertaining to the a$anese and American 2ystems is an a%erage

of a large number of com$anies sur%eyed.1

PAAM3#32 AM3I&A

6

APA6323 G43

6umber of suggestions recei%ed $er

em$loyee $er year

! 4%er !<

&ash Award $er suggestion

im$lemented +U0

>


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• I!P,CT O1 CH,NGE ON ORG,NI>,TION

#he (ey elements of #M for any organiation areC

• 3m$owering and #rusting em$loyees

• 4$timiation of the resources across the functions in the organiation

• Inno%ati%e and &reati%e thin(ing based management style

• ocus on continuous im$ro%ements and long term $re%entions

#hese elements required some fundamental changes in the manner of functioning

of the management and em$loyees. #he following were the im$lications of the

changeC

Imp*iations on !ana#ement Proesses

• elegation of authority downwards and gi%ing more decision ma(ing $ower

to em$loyees


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• &reating o$en communication channels and reduction of bureaucracy within

the organiation so as to s$eed u$ the decision ma(ing $rocess

Imp*iation on Peop*e Proesses

• e%elo$ing #raining $rograms based on #M $rinci$les and $rocesses so

that em$loyees can easily ada$t to the new systems

• esigning a$$raisal and reward systems that focus on team $erformance

rather than indi%idual $erformance

• &hanges in recruitment and other $rocesses based on the #M $rinci$les

• 3stablishing a feedbac( mechanism

• %E,DER(HIP O1 ,DI GODREJ

Adi Godrej, the chairmen of Godrej Grou$ of Industries, is an entre$reneur who

has changed the structure of the Godrej Post 11. 5e analyed the need for the

change $ost liberaliation, understood the need to mo%e away from the highly

bureaucratic structure to a highly decentralied structure. 5e actually identified the

need to ha%e a different &34 for the all the Grou$ com$anies, and actually he was

the one who realied the need for a non'family &34 for the com$anies. ;nder his

visionary leadershi$ Godrej com$leted a 1< year restructuring $rocess in =


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5is efforts towards $rocess im$ro%ements led to the $rogress and growth of the

Godrej Grou$.

5e is res$onsible for sha$ing the long term strategy for these firms and dri%ing a

focus on %alue creation.

%eaders+ip:

Adi Godrej says leadershi$ is not a contest. 5e belie%es good leaders, when they

ta(e decisions not li(ed by all, owe it to their subordinates to eE$lain the rationale

for such decisions. 5ere he is actually in%ol%ement the $artici$ation of the sub

ordinates.

According to him leadershi$ is about doing the tough things. 4ne must ha%e a

clear vision of the future and wor( to see how it can be achie%ed and how your

$eo$le can contribute to achie%e that %ision. 4ne has to be clear that one cant

$ander on e%ery o$inion. 4ne has to (ee$ in mind the long'term interest of the

organisation. Tough decisions are needed to be ta(en sometimes and that is the

major distinguishing $oints of good leaders. #hough being delegati%e he seems to

be leader who is tough.


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According to an inter%iew of Adi Godrej, he says HA leader need not be loner, but

neither has he to be $o$ular. Qou must be res$ected by your staff. #ough decisions

can also be res$ected. &ommunication is %ery im$ortant. If a leader just ma(es a

one'line announcement that is not a good thing. #hey must eE$lain what it is. 5e

says that a leader should be res$onsible enough to answer to the management .

3%en his family members are gi%en $references o%er other but they actually join

the organiation as Management #rainees to gain hands on eE$erience which is

absolutely necessary, then they rose in the organisation.

According to him, the common factor in good leaders is wisdom. A "eader do not

ha%e to be the most intelligent $erson in the world but I thin( wisdom is %ery

im$ortant to choose to do the right thing. #he leadershi$ lesson I remember best is

that "eadershi$ is about thinking the future backwards not the $resent forward.

-orst thing a leader can do is not listen.

Inspirations

5e has great admiration for leadershi$ that was $assed down in ancient Greece. 2o

2ocrates was Platos teacher and mentor. Plato was Aristotles and Aristotle was

AleEanders. #hat is a leadershi$ transfer that I ha%e always admired. 4ther leaders

that he admires are 6elson Mandela who enabled 2outh Africa to be the most

successful African country. 5e also admires Margaret #hatcher as she too( some


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difficult decisions in a socialist )ritain which was not doing well economically.

#he owning 2treet Qears of Margaret #hatcher, because it describes how

Margaret #hatcher9s leadershi$ and decisions transformed )ritain.

Tain# Tou#+ Deisions

5is biggest test as a leader was to change the Grou$9s direction and mindset when

India embar(ed on the $ath of liberaliation in 11. #here are many scenarios

where he had to ta(e tough decisions for the organiation. or eEam$le, some

joint'%entures +/s0, wor( %ery well for years when the interest of both the $arties

are being met, but after a while, there is not much to learn from each other. In these

situations he had to be fran( and clear that a restructuring is the best way forward

and one must be o$en about it and get it done.

%ess o" ,utorati

Adi Godrej feels that his leadershi$ style has changed o%er time from Authoritati%e

to elegati%e o%er time. 5e has become a better listener than what he used to be

when he was younger. #hings are %ery different today than when he first joined the

grou$. 5e belie%es "eadershi$ styles and dimensions must change with times. #his

im$lies that he is leader who is ready to ada$t himself with time.

, !an o" simp*e (tature

es$ite being a regular name in the orbes list of some of the richest $eo$le in the

world, Adis core %alues ha%e remained middle class. #his has allowed both his

$ersonal brand and his business to ha%e a connection with people.


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5e only use the email and occasionally access the internet and he still does not use

a la$to$ instead uses a des(to$ to wor(. 4n the contrary Adi is also a businessman

whose is tech'sa%%y and $ersonal interest in technology ado$tion has benefited his

business immensely and added that bit of dynamism to the Indian M&G industry.

Adi instilled new business $rocesses at a time when com$anies $ercei%ed Hchange

to be disru$ti%e and threatening. 5e created an emotional connect of both his

$ersonal and the grou$9s brand image with $eo$le by maintaining traditional

middle class core %alues ha%e remained middle class.

(oia* Responsi.i*ities

#he Godrej Grou$ has been acti%ely in%ol%ed in many $hilanthro$ic and social

acti%ities. It has built schools, dis$ensaries and a residential com$leE for their

em$loyees and their families. It has also established many #rusts and oundations

which in%est in education, health care and u$liftment of the under$ri%ileged. It has

built many green en%irons, nurseries and gardens which show its lo%e for nature.

It is an acti%e donor to the -orld -ildlife und in India and has also de%elo$ed a

green business cam$us in /i(hroli, Mumbai. #he cam$us includes a 1:< acre

mangro%e forest with flourishing wildlife and a school for its em$loyees9 children.

Godrej wor(s on ha%ing our $roducts Hgreen in their a$$lication to the consumer.

Grou$ also has a $ro$erty de%elo$ment com$any which has decided that e%ery one

of the buildings, whether commercial or residential, will be "33 'certified.

Grou$ strongly belie%es that these are good objecti%es and that they are good for

business. Adi Godrej thin(s that a com$any that o$erates in a green manner will be

more successful than a com$any that doesnt.


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Grou$s belie%e that some of these en%ironmental and green factors are %ery

im$ortant. Most $eo$le would subscribe to that %iew, e%en though they might not

do something about it. 5e doesnt belie%e that India should ha%e an en%ironmental

objecti%e at the cost of de%elo$ment, he belie%es green emphasis will hel$

de%elo$ment.

Ta*ent ,Auisition

5e focuses on selecting leaders who are entrepreneurial , Out-of-the-box thinker

and creati%e. #oo much routine thin(ing is not something that he finds creates

success. #hey must also be ambitious in both target setting and in achie%ing those

targets because some $eo$le tend to be satisfied with a%erage $rogress. 5e thin(s

commitment to values is im$ortant and a willingness to wor( hard, dont

necessarily mean long hours. 5e needs devotion and that means being able to

cancel their %acation when required andDor turn u$ on a 2aturday or 2unday when

required. #he ease with which theyre willing to do it for the business lets us $ic(

u$ who is de%oted, who is not.

Most of the issues are associated with ensuring effecti%e eEecution and this im$acts

how Godrej select the right $eo$le who are li(ely to eEecute better. Adi Godrej

says HI also need to ensure that I detach myself from some of the decision-making.

rom that $oint of %iew, I find it %ery good to be the leader of a family business

because I ha%e younger'generation $eo$le who are much closer to the consumer.

#heir thin(ing is much more a%ant'gardeand so I ha%e to be o$en to trusting their

decision'ma(ing e%en if I feel it might not be the right way to go. #his ma(es him

a elegati%e leader.


34/37

#he best combination is to listen to the young managers, empower them

sufficiently and $ro%ide guidance when their directional $ro$ensity can be hel$ed

by $ast eE$erience.

2a*ues

5e belie%es integrity, both financial and intellectual, cannot be com$romised.

#hese %alues must lead us in a country li(e India, where there is a fair amount of

corru$tion and where maneu%ering is considered normal. 2tic(ing to ones

$rinci$les is difficult, but com$anies li(e Godrej which do this are generally

rewarded in the long run. #hese com$anies ha%e a $ublic image whereby $eo$le

sto$ as(ing for bribes. 2o this is not as difficult as one would thin( in an

en%ironment li(e Indias.

5e li(es to thin( about business in my s$are time. 5e is %ery fond of long wal(s,

for eEam$le, where he thin( about issues. 5e (ee$s a sheet of $a$er where any idea

that comes u$, he notes it down and follows it u$. 5e thin(s its a great lesson,

enjoying ones wor(, he is not one of those who wor(s 1> hours a day for a month.

-hen $eo$le see the leader doing certain things, I thin( it almost becomes an

organiational culture.

%eaders+ip (ty*e


35/37

Adi Godrej belie%es that H Leadership style and dimensions should change with

time

#ransformational "eadershi$

' Delegating significant authority: Adi Godrej actually found a need to identify

different &34s for all the Grou$ &om$anies' Eliminating nnecessary !ontrol: #he main objecti%e of Adi Godrej was to

eliminate an infleEible style of management which it. . 5ence when Adi Godrej

joined the grou$, he faced the challenge of moderniing the management

structures and ma(ing them more fleEible and systematic.

' Effective "istener: #he time'tested businessman has slowly gi%en u$ hisOarrogance and started to listen more to the com$anys young managers, which

includes Godrejs fourth generation u$starts' 2tatesmanC Adi Godrej formed his o$inion about the consum$tion $atterns of

Indians from all wal(s of life on a local train journey in Mumbai. In a country

where millions of $eo$le li%ed in $o%erty, it made sense to Adi to target the

Hbottom'of'the'$yramid, the mar(et mostly made u$ of the $oorest $eo$le in

Indian societyAdi Godrej actually le%eraged $rofits from small inno%ati%e things such as

low'cost refrigerators and economical water $urifiers aimed at Indias %ast

rural inhabitants.' rom the abo%e analysis the following are the characteristics of Adi Godrej

o Taking tough decisions in difficult time

o #esponsible: A leader should be always answerable to the management

o $isdom: A man with wisdom is better than an intelligent $erson.

o Thinking future backwards: #he motto which he followso %etter "ister: "istens to $eo$le who are younger

o & 'an with (imple (tature

o )as emotional connect with employee

o Develop "eaders

o (ocially responsible *erson: Green 3m$hasis


36/37

o !ommitted to +alues: 5e wants all his em$loyees to follow the same

o Delegation: etaches from decision ma(ing gi%e $ower to lower le%el to

decideo 'an of ,ntegrity

2ometimes growing large isnt the to$ $riority. #hats a lesson that $erha$s a lot of

other businessmen in their quest for %aluable resources can learn from Adi Godrej

Re"erenes

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