OB and Leadership Career Dilemma of a Next-Gen Family Member - The Case of Lavanya Nalli
The case, set in 2016, follows Lavanya Nalli, a fifth-generation member of the Nalli family business, as she contemplates a critical decision about her future. Nalli Silks, an Indian ethnic wear retailer, had built an enviable reputation for quality and customer orientation over 90 years. As a female member of a conservative family business, she was not expected to enter the business and play an active role in it. Yet, she joined Nalli Silks after earning a degree in engineering and planned and pursued her own induction and learning in the firm. Over the next couple of years, she displayed her entrepreneurial drive by conceptualizing and setting up a successful business within the larger business. However, sensing that there were limited avenues within the firm to feed her ambition and keenness to learn and grow, she left India for the United States to pursue an MBA at Harvard Business School. After graduating, she worked at McKinsey, a leading consulting firm. In 2014, Lavanya returned to India and joined Myntra, a rapidly growing Indian fashion e-commerce company. These experiences provided her with rich and varied insights and perspectives. After seven years away, she was considering returning to the Nalli group with tentative plans of setting up a separate e-commerce vertical from scratch. Three generations of her family - her grandfather, her father and her brother - were active in the business and held independent charge of different parts of the Nalli group. There were serious reservations within the family and the organization about Lavanya's proposal to venture into e-commerce. She herself had some concerns about the larger strategy and set-up of the business, such as the absence of a leadership pipeline and inattention to market trends. The case closes with her reflections and questions on the way forward.
Understand how next-gen family members approach career choices and how this influences their enterprises. Appreciate the challenges of balancing values and aspirations among family, business and individual next-generation family members. Comprehend how next-generation family members can successfully build careers within an existing family business by being entrepreneurial without crossing value boundaries. Learn what family businesses can do to attract / retain next-generation family members.
Strategy Anthem - An Insourcing Strategy Through the Establishment of a Subsidiary (Legato)
Anthem Inc. (www.anthem.com) was a leading health care insurance provider and the largest insurer in the Blue Cross Blue Shield (BCBS) network. In October 2017, it approved the establishment of captive subsidiaries or global capability centers (GCCs), called "Legato," in India and the Philippines. The first captive was established in India. From January 2018 to June 2021, the two Legato entities had ramped up their head count to over 15,000 full-time employees (FTEs). This number well exceeded the initial approved business plan of a little over 3,000 FTEs. As a result, the parent organization accrued substantial cost savings. This also helped the company create a foundation to use low-cost internal talent to enable additional objectives, such as supporting digital transformational objectives and improving end-to-end process efficiency. Anthem developed an initial organization chart and reporting structure to establish the new companies. As the entities grew, Anthem made changes to better align them with US processes and strengthen governance and risk management. In 2021, Anthem established a new objective for Legato. As a cost center, Legato had firmly established itself in Anthem's value delivery chain, successfully setting up several information technology (IT) and business process practices. Anthem decided to use this capability by pursuing IT and business service revenue from other BCBS players in the US. It could now offer a suite of IT and business process services from Legato-essentially a profit and loss (P&L) role. The addition of this new P&L role brought up the following questions: Should the existing leaders' role be expanded to take on the additional responsibility of delivering to external customers? Should an entirely new division be established to take on this new P&L role? Or was there any other option to consider?
For an MBA or executive MBA course for the participants to: - Understand the rationale behind the proliferation of the business model of captives - Appreciate the interlinkage of structure and strategy - Appreciate the need for strong change management in implementing new strategiesLearn More
Human Resource Management The Great Union Journey: Amalgamation of Union Bank Of India, Andhra Bank, And Corporation Bank
Set in April 2021, the case study traces the process of amalgamation of the Union Bank of India (UBI) with the erstwhile Andhra Bank (e-AB) and Corporation Bank (e-CB) following the announcement by the Ministry of Finance (MoF), Government of India (GoI), on August 30, 2019. With the Amalgamation Effective Date set as April 1, 2020, Rajkiran Rai G., the Managing Director (MD) and Chief Executive Officer (CEO) of UBI, who oversaw the amalgamation project was faced with formidable challenges. The banks had distinctive cultures and values. While UBI was pan-national, the employee and customer compositions of the e-AB and e-CB reflected their regional dominance. The case documents how Rai and his team successfully integrated people, products, policies, cultures, technology, and customers within a stringent and short timeline. It describes the sustained efforts to unify employees under a common identity and align them toward the shared vision of becoming the best in the industry. The case provides an overview of the differentiated measures undertaken by Rai and his team to engage the different stakeholders, the governance structure for decision making and implementation, comprehensive measures to ensure transparency through communication and access to resources, meticulous planning, delegation, monitoring, and course corrections in the face of obstacles. One year after the AED, the financial performance of UBI testified to the success of the amalgamation. However, Rai had to foster a customer-centric and performance-oriented culture at UBI. He had to fortify the bank’s future prospects by institutionalizing the learnings from the transformation. As the bank embraced digital transformation more frequent changes were imminent. Rai had to tackle the challenge of building an agile, mission-driven, and learning-oriented organization.
By analyzing the case, participants will learn to
- address the concerns of the different stakeholders in mergers and acquisitions,
- lead organizational transformation in general and overcome the challenges of transforming public-sector entities,
- promote collaborative cultures despite diverse backgrounds and priorities
- foster a learning culture in an organization -implement measures to enhance organizational agility.
General Management Merger of Equals: The Amalgamation Story of Indian Bank and Allahabad Bank
On August 30, 2019, the Ministry of Finance of the Government of India (GoI) announced the consolidation of ten nationalized banks into four. As part of this move, Indian Bank and Allahabad Bank were to be merged into a single entity, and the new amalgamated bank had to start operations on April 1, 2020. Amalgamating two very different banks with thousands of branches and employees within a pre-set time window would be complex enough under normal circumstances, but the challenge was compounded by the advent of COVID-19 and the ensuing national lockdown in March 2020. Padmaja Chunduru, Managing Director (MD) & Chief Executive Officer (CEO) of Indian Bank, was given the formidable task of overseeing the amalgamation process. The case study describes the actual integration process in detail and the thorough planning and execution involved. It illustrates the role of the Integration Management Office (IMO) as a central point of information dissemination and an empowered body in the merger process. It also lays out the myriad challenges of the amalgamation process - personnel integration, IT/banking system management, branch rationalization, and customer integration, and the steps taken to tackle each one. The COVID-19 pandemic came as an unknown midway through the integration process and required Chunduru and her team to rethink several aspects of the integration plan and strategy. The case study concludes with the actual mechanics of the amalgamation process. With the worst of the COVID-19 crisis behind them, Chunduru looks towards building a bank of the future. Having undergone rationalization in several areas, Indian Bank not only emerged in a better financial state than before but also laid down its vision as a future-ready bank. How could the learnings from the integration process be made a continuous process and become part of the organization's DNA? These were the key questions facing Chunduru and her team.
- To deliberate and evaluate the best ways to plan, organize and implement the enormous task of merging two large, similarly-sized organizations.
- To emphasize the importance of careful and detailed integration planning, stakeholder management, and the role of leadership in a successful merger.
- To illustrate the critical role of well-defined organizational structures in supporting integration efforts.
- To deliberate how the bank can rebrand itself as a preferred bank of the younger generation.
OB and Leadership Digital Transformation at L&T (A)
The case describes the digitalization of L&T Construction, the largest business of L&T, from conception to implementation. The CEO and MD of L&T believed that the organization-wide implementation of digital at L&T Construction would have a significant impact on the business. As a project organization with a limited number of high-value customers and relatively few customer touch points, the primary goal of digitalization in its case would be to improve operational effectiveness. It created a separate digital department and identified digital officers and champions across projects and sites for effective implementation. The transformation was championed from the top and the digital team initiated a variety of initiatives to facilitate digital at L&T. Within two years, they had developed and deployed a large number of solutions across hundreds of project sites, completely transforming the way work was performed. Buoyed by the success of the digitalization effort at L&T Construction, it was decided to extend it to other group companies.
- Understand the various contributors to the success of DT in a traditional organization
- Appreciate that DTs require an entrepreneurial mindset
- Understand what approaches can be used to manage the effective implementation of digital solutions
- Appreciate the leadership competencies required for DT
- Recognize the need for building capabilities to support transformation
- Examine the nuances of scaling up digitalization to other BUs
- Explore ways to create a new mindset and culture
General Management Youth4Jobs: Evolving and Scaling Up a Disability Inclusion Model
Established in 2012, Youth4Jobs (Y4J) was a not-for-profit organization that served the disabled community, particularly youth, by providing them with market-oriented skills and livelihoods. Meera Shenoy, its Founder and CEO, and the core team of Y4J had previous experience in the skill development and placement of rural youth. However, they quickly discovered that dealing with disabled youth required a totally different approach. The case describes their experiences, the lessons learned and how they evolved their model for Y4J. The case outlines how Y4J became involved in the entire value chain of disability inclusion: education at the school and college levels, imparting skills to increase the employability of disabled youth, and placing them in a wide range of jobs and companies by sensitizing and supporting employers. Within a period of six years, Y4J had grown phenomenally and had a presence across the country. However, given the prevalence of disability in India and the fact that approximately 7-8 million of the disabled population were in the age group of 20-39, Shenoy believed that Y4J had to further enhance its reach to support as many people with disabilities (PwD) as possible. At a visioning workshop in August 2018, Shenoy and key stakeholders of Y4J brainstormed on the way forward for the organization and came up with several strategic options for increasing its impact. Shenoy had the difficult task of choosing among these options and setting the future direction of Y4J. The choices were replicating the model, creating a knowledge hub, and building and empowering the network. Shenoy was also concerned about how to build the requisite capacity to effectively implement those strategies without compromising on the values that had guided Y4J from its inception.
Understand the critical success factors for building a robust model for a not-for-profit organization. Expose students to challenges faced by any organization during the start-up phase and the learning approach to effectively deal with those challenges. Recognize the various factors that impact the readiness of an organization to scale up and explore the options available in scaling operations. Identify ways of build the requisite organizational capability to scale up operations.
Human Resource Management CavinKare: Building Human Capital For Performance Excellence
CavinKare Private Limited (CavinKare), a FMCG company was founded by Chinni Krishnan Ranganathan (CKR) in 1998. With the rapid growth of the organization, the spirit of entrepreneurship had given way to bureaucratic functioning. In 2012, CKR undertook a series of human capital interventions aimed at rejuvenating the organization and at aligning performance goals at different levels to the larger organizational strategy, bringing in the right people, providing them the right resources to succeed, and creating the right incentives for performance excellence. New systems and processes were introduced for employee selection, setting clear performance expectations, review & assessment, training & development, compensation and rewards & recognition. The changes enhanced CavinKare's growth and the company registered a double-digit growth while the industry average hovered around 4-5%. Though the company had effectively implemented a range of human capital systems and processes, CKR believed that the culture and mindsets still lagged. There was a need to ensure that the cultural fabric had to be aligned to the intent of creating performance excellence by being entrepreneurial, innovative and learning-oriented. CKR wondered how to address this unfinished agenda of building human capital.
Understand how effective interventions in human capital management can lead to superior performance and competitive advantage. Appreciate the importance of aligning business strategy, HR strategy and HR processes for achieving enhanced organizational performance. Understand how changes in any part of the organization require attention to inter-dependent elements so that the larger goals are realized. Appreciate how organization culture can foster learning and innovation in an organization.
OB and Leadership Magna Acquisition: Adding Professionalism to Entrepreneurial Venture
Quess Corp Limited acquired Magna Infotech, an IT contract staffing company in 2009 to go beyond general staffing and get into professional staffing. Magna, founded in 1997 by Pradeep Mittal had achieved the status of being the market leader in IT staffing in India by being highly entrepreneurial, consistently focused on business development, delivery and automation of core staffing processes. Quess carried out a thorough diagnosis of Magna after acquisition. The diagnosis helped identify specific areas where potential for performance improvement existed. Priorities were worked out and systematic efforts were taken up to focus on those areas. Planning and execution of action steps created effective alignment of thought processes among key stakeholders and high levels of engagement and employee motivation. The various interventions resulted in Magna tripling its revenues; the operating profits grew six-fold. But by 2017, the business context had changed for Magna and there were totally new set of challenges that confronted the organization. The case presents a story of an acquisition where despite taking over a successful high-performing company with high levels of motivation, the new leadership team still managed to substantially improve both the topline and bottom line performance through effective execution of a carefully planned change agenda. In the following 8 years, the company retained its market leadership and become much larger. But it now confronted far-reaching changes in business context. How should the leaders reignite the entrepreneurial zeal in a much bigger, more stable and more successful organization?
Understand the key elements of successful acquisition. Understand how changes in any part of the organization require attention to inter-dependent elements to realize larger goals. Appreciate how individual backgrounds & socialization and business context impact an individual's management style. Appreciate what approaches can help enhance organizational learning and performance. Explore ways for organizations to combine control & agility to respond to new emerging realities.
OB and Leadership Symphony: Growing Through Internationalization
Symphony Limited, an air cooler company decided to buy International Metal Products Company (IMPCO) in 2009. IMPCO, based in Mexico manufactured industrial coolers that complemented Symphony's product line. Additionally, the acquisition provided Symphony access to the US market. IMPCO, however, was a loss making company and was on the verge of bankruptcy. On taking over IMPCO, Symphony dealt with several issues like financial crisis, operational inefficiencies, low employee productivity, IMPCO's poor brand image, lack of product innovation and weak sales and distribution. This case briefly describes the history of Symphony and outlines the various challenges faced by the organization in turning around IMPCO. The case closes with another opportunity that lands on Symphony's lap - acquisition of Munters Keruilai Air Treatment Equipment Co Ltd (MKE), an air cooler manufacturing company in China. Like IMPCO, MKE was also a loss-making air cooler company. But otherwise, the challenges and the context were starkly different in the two cases. Achal Bakeri, founder and CEO of Symphony wondered how the Symphony team should approach the newest challenge.
Understand that an entrepreneurial journey often runs into a few setbacks and failures; but these crises also become sources of valuable insights if we're willing to learn from them. Understand the nature of challenges in international acquisition and the importance of managing `hard' and `soft' issues for successful acquisitions. Recognize the elements of effective execution. Gain insight into the nature of turnaround process. Analyze leadership characteristics of Level 5 leaders.
OB and Leadership Creating and Sustaining a Social Enterprise: The Vittala Story
Vittala International Institute of Ophthalmology (Vittala), a not-for-profit orgnization was involved in providing free/highly subsidized eye care to the rural and the economically underprivileged population in the state of Karnataka, India. The case describes the challenges faced by the founder and his family in building the state-of-the-art institution and sustaining it through its difficult initial years. They had to build awareness of avoidable blindness, make eye care accessible and affordable, and develop the right networks and alliances, all within limited resources. Unlike certain eye care issues such as cataract, Vittala focused on retinal eye care problems that required periodic monitoring and treatment. Diagnosis required sophisticated and expensive equipment, which had to be made available in far-flung small towns and villages, and that posed difficulties. To address the challenges, the organization and its founders executed pioneering innovations in organizational arrangements and processes. The case closes with the dilemma facing Krishna, Director of Vittala, which was to examine how the social enterprise could enhance the revenue streams to increase Vittala's reach in providing eye to the economically disadvantaged citizens. He needs to consider issues like creating the right balance of paying and non-paying patients to ensure sustainable operations, consistent quality of care, keeping technology updated, and attracting and retaining medical staff with right skills and values. The case is significant as it highlights what is required to make healthcare accessible and affordable to the poor, and how policy measures can be executed at the ground level through appropriate organizing efforts. It describes how the founder inculcated a system of values to keep the family members together, thus contributing to the effectiveness and sustainability of the social enterprise.
To understand the factors influencing the setting up of a not-for-profit enterprise in the health care sector and exposing the students to the realities of present system of health care in India; To explore the process and organizing innovations required to deliver affordable eye care to rural areas; To emphasize the importance of aligning multiple stakeholders to build effective and sustainable operations; To emphasize the importance of values in family run organizations to build togetherness.