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INTRODUCTIONK M BIRLAChairman of Aditya Birla GroupEighth youngest billionaire outside India according to

the Fortune magazineDirector on the Board of the Group s International

CompaniesChancellor of BITS Pilani, Hyderabad, Goa & Dubai.Chairman of the advisory committee constituted by

the ministry of company affairs for 2006 and 2007Chairman of SEBI Committee on Corporate

GovernanceBanaras Hindu University awarded the D. Litt (Honoris

Causa) Degree to him


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Aditya Birla GroupFounded by Ghanshyam Das BirlaIndia s third-largest conglomerateHeadquartered in MumbaiOperations in 25 countries

In league of Fortune 500 companiesTurnover- USD30 Billion (2009)Employees- 130,000 (2009)Products - Aluminium, Copper, Cement, Fertilizer, Textile, Fibre, etc.Major companies under this group Hindalco, Grasim , Aditya

Birla Nuvo, Ultratech CementGroup has been and continues to be involved in meaningfulwelfare-driven initiatives (CSR Activities)Aditya Birla Group was awarded as the best employer in India2007 by Hewitt Associates


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Early life

born on June 14, 1967 into a Marwaribusiness Birla family from state of Rajasthan

A chartered accountant, Kumar MangalamBirla earned an MBA from the LondonBusiness SchoolTaught by Aditya BirlaMarried to Mrs. Neerja Wanjiku with threechildren


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Career Path

got involved in some small way in the family businesswhen he was fifteenKumar took over the charge of Aditya Birla Group afterhis father s death in 1995apart from consolidating its position in existingbusinesses, also ventured into sunrise sectors likecellular telephony, asset management, software andBPO

scaled up the turnover of Aditya Birla Group to USD 30billion (2009) from USD1.7 billion in 1995he is looking forward to more than double its turnoverto $65 billion in the next five years that is by 2015


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Achievements

2000

The Bombay Management Association honoured Birlaas "The Management Man of the Year 1999-2000."

2001

The National HRD Network (Pune) "TheOutstanding Business Man of the Year".

The Giants International Award for "Business

Excellence and his contribution to the Industry". The Institute of Directors' "Golden Peacock National

Award for Business Leadership".


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2005

Awarded "The Ernst & Young Entrepreneur of theYear - India".

Named "Young Super Performer in the CEOCategory" by Business Today.

PHD Chamber of Commerce and Industry - UdyogRatna.

2010

Mr. Kumar Mangalam Birla, Chairman of the

Group, was conferred the All India ManagementAssociation (AIMA) Managing India Award 2010for ' Business Leader of the Year'.


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INITIATIVES TAKEN UNDER KM

BIRLA S LEADERSHIP


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RETIREMENT POLICYEarlier womb-to-tomb policy existedIntroduced a retirement policy in 1995,on the

basis of which around 325 senior employees,in early 60s, quit the organization in the nextfive yearsSubsequently about 400 young employeesreplaced them


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CORPORATE LOGO

In 1996, launched for the first time a corporateidentity that would serve as corporate logo.The group selected the rising sun as the logo,which signified optimism and served as aunification symbol for the groupKM Birla- The ne w cor porat e logo he lped inbri nging various com pa n ie s of the grou ptog e the r. This he lped the orga n izatio n to reene rgiz e a nd ge t start ed to the p at h of cha nge


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RECRUITMENT & PERFORMANCEMANAGEMENT

Before K.M.Birla took the chairmanship, thehierarchy in the group was determined byseniority instead of merit

there were several marwaris in top management.Today there are plenty of non-marwarisIn 1996, made changes in the group s HR system.Hired professionals from other companies intohis management teamPersonally led the recruitment program frombusiness schools


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REPORTING SYSTEM

My managerial style is to give people freedom to do their ownthing. As long as they deliver, I don t like to get involved. Theyshould have the freedom to do what they think necessary. I amavailable if they need me and I will hold them accountable but I willnot interfere needlessly.

-KM Birla

Brought about changes in reporting system being followed at thegroupThe top 20 executives of the group, who had greater

responsibilities in the group, could report directly to K.M. BirlaGave them complete freedom to run their businesses andsimultaneously holding the more accountable for their performance


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FACTORS OF INFLUENCE


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INTERNAL FACTORS1 . FAMILY & UPBRINGING

Teachings & Value system

2. STRONG INTERNAL LOCUS OF CONTROL

Self-confidence

3. FORMAL EDUCATION

MBA from The London School of BusinessCommerce degreeChartered Accountancy

4. GUIDANCE FROM FATHER


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EXTERNAL FACTORS1 . BUSINESS ENVIRONMENT

Economic Liberalisation of India in 1991Weakening of License Raj

2. GLOBALISATIONABG made its first entry into the North Americanmarket acquiring the Atholville Pulp Mill, Canada in1998Move established Birla as the world-leading producerof viscose staple fiber and also marked its first majorforeign acquisition


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EXTERNAL FACTORS (Contd)3 . OPPORTUNITIES FOR DIVERSIFICATION

Apart from consolidating its position in existingbusinesses like commodities, also ventured intosunrise sectors like ce llular te leph ony (IDEA), ass e t

ma nag e m en t , softwar e, BPO & Re tail chain (MORE) .Reflects KM Birla s inclination towards exploring newavenues & opportunities & grabbing them when thetiming is conducive

4. ECONOMIC SLOWDOWNCore value of ABG- CommitmentUltratech Cement refrained from laying off Hindalco reopened and renegotiated several contracts


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Factors that made Mr. Birla a

great Leader:Mr. Kumar Mangalam Birla like any other great leader should possess a great character and integrity.

Mr. Birla always believed in pushing the boundaries of his sprawling business empire not by issuing edicts,but by getting his people to buy into his vision.

He believes in focusing more on extracting rather than betting big on growth. He had always been able tosee the big picture and set his and the companys course accordingly.

Another attribute of Mr. Birla that makes him a great leader is his ability to spot opportunities to expand hisorganizations growth in other sector..

Mr. Birla is a firm believer in meritocracy and rewarding them for their performance. This inspired theemployees to perform better.


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Mr. Birla is always willing and able to take calculated risks.

Mr. Birlas management style is more group-oriented. He believes in building a greatteam, setting the goals and then inspiring it to achieve those goals

Mr. Birlas ability to influence people is also another attribute that makes him a greatleader. He likes motivating groups of people. He believes that in business, it is moreimportant to empower a whole group than to depend on a single individual.


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Mr. Birla has been always put the needs of the organization first.Mr. Birla believes in the system of open communication. He believed in aninformal interaction between the across all the levels of management.

Mr. Birla always trusts his employees. He starts from a position of trustand continues to do so unless proven otherwise, but it is in no wayabdication. He has his own antennae and picks rare moments to assesspeople. If you pass muster at those points, then you have his trust forever.

At the core of Mr. Birla s management style are the twin virtues of patience and persuasion. He employs that not only with his own people,

but also with associates outside.He not only understands his people but also empathies with them.


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great leaders are always optimists first and foremost.

The characteristics of a great leader are in his ability to adaptquickly to changes, administer efficiently, meet challenges, spotopportunities and take decision.

They should have ambition and a willingness to take risks and workfor long hours. A good leader should always lead by example. Heshould always look after the welfare of the team. He should be ableto empathize and understand his peers and subordinates. He should

be aware of the present situation. He should be assertive and hasthe ability to take ownership as and when required. But he shouldalso be able to delegate responsibilities and nurture his people.


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He should always put the needs and the developmentof the organization before his own personal gains. Heshould be open minded and ready to listen to hiscolleagues opinion and advises. He should be patientand the ability to accept and learn from his mistakes.

Lastly, Great leaders also have great integrity(wholeness, soundness) and assume the role of keeperof ethics. Leaders must articulate the ethicalexpectations necessary to maintain the wholeness andsoundness of the team, as well as the individualmembers.

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