INTRODUCTION

K M BIRLA
•Chairman of Aditya Birla Group
•Eighth youngest billionaire outside India according to the
Fortune magazine
•Director on the Board of the Group’s International
Companies
•Chancellor of BITS Pilani, Hyderabad, Goa & Dubai.
•Chairman of the advisory committee constituted by the
ministry of company affairs for 2006 and 2007
•Chairman of SEBI Committee on Corporate Governance
•Banaras Hindu University awarded the D. Litt (Honoris
Causa) Degree to him
 Aditya Birla Group
• Founded by Ghanshyam Das Birla
• India’s third-largest conglomerate
• Headquartered in Mumbai
• Operations in 25 countries
• In league of Fortune 500 companies
• Turnover- 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 Cement
• Group has been and continues to be involved in meaningful welfare-driven
initiatives (CSR Activities)
• Aditya Birla Group was awarded as “the best employer in India 2007” by Hewitt
Associates
 Early life
• born on June 14, 1967 into a Marwari business
Birla family from state of Rajasthan
• A chartered accountant, Kumar Mangalam
Birla earned an MBA from the London
Business School
• Taught by Aditya Birla
• Married to Mrs. Neerja Wanjiku with three
children
 Career Path
• got involved in some small way in the family business when
he was fifteen
• Kumar took over the charge of Aditya Birla Group after his
father’s death in 1995
• apart from consolidating its position in existing businesses,
also ventured into sunrise sectors like cellular telephony,
asset management, software and BPO
• scaled up the turnover of Aditya Birla Group to USD 30
billion (2009) from USD1.7 billion in 1995
• he is looking forward to more than double its turnover to
$65 billion in the next five years that is by 2015
 Achievements
2000
– The Bombay Management Association honoured Birla
as "The Management Man of the Year 1999-2000."
2001
– The National HRD Network (Pune) — "The Outstanding
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".
2005
– Awarded "The Ernst & Young Entrepreneur of the
Year - India".
– Named "Young Super Performer in the CEO
Category" by Business Today.
– PHD Chamber of Commerce and Industry - Udyog
Ratna.
2010
– Mr. Kumar Mangalam Birla, Chairman of the
Group, was conferred the All India Management
Association (AIMA) Managing India Award 2010
for ' Business Leader of the Year'.
INITIATIVES TAKEN UNDER KM BIRLA’S
LEADERSHIP
  
RETIREMENT POLICY
• Earlier womb-to-tomb policy existed
• Introduced a retirement policy in 1995,on the
basis of which around 325 senior employees,
in early 60s, quit the organization in the next
five years
• Subsequently about 400 young employees
replaced them
 CORPORATE LOGO
• In 1996, launched for the first time a corporate
identity that would serve as corporate logo.
• The group selected the rising sun as the logo,
which signified optimism and served as a
unification symbol for the group
• KM Birla- “The new corporate logo helped in
bringing various companies of the group
together. This helped the organization to
reenergize and get started to the path of change”
 RECRUITMENT & PERFORMANCE
MANAGEMENT
• Before K.M.Birla took the chairmanship, the hierarchy
in the group was determined by seniority instead of
merit
• there were several marwaris in top management.
Today there are plenty of non-marwaris
• In 1996, made changes in the group’s HR system.
Hired professionals from other companies into his
management team
• Personally led the recruitment program from business
schools
PERFORMANCE MANAGEMENT… (CONTD)

• In 1999, instituted a performance appraisal

system, 360 degree feedback program that
permitted managers to raise questions over
even his own leadership style, managerial
ability and also personal traits
• This did away with the 'babu culture'
prevalent in the group, from the days of
License Raj
 REPORTING SYSTEM
• “My managerial style is to give people freedom to do their own thing. As
long as they deliver, I don’t like to get involved. They should have the
freedom to do what they think necessary. I am available if they need me
and I will hold them accountable but I will not interfere needlessly.’
-KM Birla

• Brought about changes in reporting system being followed at the group

• The top 20 executives of the group, who had greater responsibilities in
the group, could report directly to K.M. Birla
• Gave them complete freedom to run their businesses and
simultaneously holding the more accountable for their performance
FACTORS OF INFLUENCE
 INTERNAL FACTORS
1. FAMILY & UPBRINGING
• Teachings & Value system

2. STRONG INTERNAL LOCUS OF CONTROL

• Self-confidence

3. FORMAL EDUCATION
• MBA from The London School of Business
• Commerce degree
• Chartered Accountancy

4. GUIDANCE FROM FATHER

 
 EXTERNAL FACTORS
1. BUSINESS ENVIRONMENT
• Economic Liberalisation of India in 1991
• Weakening of License Raj

2. GLOBALISATION
• ABG made its first entry into the North American market
acquiring the Atholville Pulp Mill, Canada in 1998
• Move established Birla as the world-leading producer of
viscose staple fiber and also marked its first major
foreign acquisition
 EXTERNAL FACTORS …(Contd)
3. OPPORTUNITIES FOR DIVERSIFICATION
• Apart from consolidating its position in existing
businesses like commodities, also ventured into sunrise
sectors like cellular telephony (IDEA), asset
management, software, BPO & Retail chain (MORE).
• Reflects KM Birla’s inclination towards exploring new
avenues & opportunities & grabbing them when the
timing is conducive
4. ECONOMIC SLOWDOWN
• Core value of ABG- Commitment
• Ultratech Cement refrained from laying –off
• Hindalco reopened and renegotiated several contracts
 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 to
see the big picture and set his and the company’s course accordingly.
 
Another attribute of Mr. Birla that makes him a great leader is his ability to spot opportunities to expand his
organizations growth in other sector..
 
Mr. Birla is a firm believer in meritocracy and rewarding them for their performance. This inspired the
employees to perform better.
 
 
 
 
• Mr. Birla is always willing and able to  take calculated risks.

• Mr. Birla’s management style is more group-oriented. He believes in building a great

team, setting the goals and then inspiring it to achieve those goals
 
• Mr. Birla’s ability to influence people is also another attribute that makes him a great
leader. He likes motivating groups of people. He believes that in business, it is more
important to empower a whole group than to depend on a single individual.

•  
• Mr. Birla has never shied away from any challenge. His answer to the
unprecedented challenges has been simple. He assembles an impressive
bunch of professionals and he listens to them, while he himself scans the
environment to anticipate changes

• Mr. Birla has been always put the needs of the organization first.
 
• Mr. Birla believes in delegation.

• Mr. Birla’s ability to influence people is also another attribute that makes him a
great leader. He likes motivating groups of people. He believes that in business, it is
more important to empower a whole group than to depend on a single individual.
•  
• Mr. Birla has been always put the needs of the organization first.
• Mr. Birla believes in the system of open communication. He believed in an informal
interaction between the across all the levels of management.

• Mr. Birla always trusts his employees. He starts from a position of trust and continues
to do so unless proven otherwise, but it is in no way abdication. He has his own
antennae and picks rare moments to assess people. 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.

 
• great leaders are always optimists first and foremost.

• The characteristics of a great leader are in his ability to adapt quickly to

changes, administer efficiently, meet challenges, spot opportunities and
take decision.

• They should have ambition and a willingness to take risks and work for
long hours. A good leader should always lead by example. He should
always look after the welfare of the team. He should be able to
empathize and understand his peers and subordinates. He should be
aware of the present situation. He should be assertive and has the
ability to take ownership as and when required. But he should also be
able to delegate responsibilities and nurture his people.
• He should always put the needs and the development of
the organization before his own personal gains. He should
be open minded and ready to listen to his colleagues’
opinion and advises. He should be patient and the ability to
accept and learn from his mistakes.

• Lastly, Great leaders also have great integrity (wholeness,

soundness) and assume the role of keeper of ethics.
Leaders must articulate the ethical expectations necessary
to maintain the wholeness and soundness of the team, as
well as the individual members.