Arl -skf_in_india_story[1]

LIM Leadership in International Management

Copyright © LIM LLC 2011

BACKGROUNDBACKGROUND

– SKF in India began 1923, Manufacturing 1961.– 6 Business Units, 5 Factories, 2300 people, 1000 white

collar– Turnover in 1993 (64 MN US $) in 2001 (84 MN US $) –

Disastrous Performance– Need to change and Transform Company at Stage 1 into a

High Performer – Target 2008 set at 200 MN US $– Major Transformation in People Processes – Performance /

Competency/ Learning / C & B / Organizational Structuring / Organizational Change

– Actual Results 2008 – 300 MN Us $– Stage 2 by 2015 transform into a top performer in the

sector – target MN US $ 800– Major focus: Talent Management


PURPOSEPURPOSE

– Create an Internal Pool of High capability Leaders who can drive the business in the fast changing environment.

– Talent Management program – INSPIRE– Top 20% of the High Performers– Program

Development CentreProfilingAmbition and Expectation CapturingCreating Development PlanMentoringProviding Development Inputs

– Develop Leaders faster


PEOPLEPEOPLE

– ParticipantsTop 20% of Performers in the company.

– Interested PartiesBusiness Leaders

– DriversManaging DirectorHR DirectorGM – Talent Management

– Partners Assessment Centre PartnersDevelopment Partners


PROBLEMPROBLEM

• All parts of the process till “Development Plan Creation” were working perfectly

• However the actual development of leaders was not at the speed that the organization wanted.

• Development process• Development Programs through top end business schools• Internal Mentors• Job Rotation

• Gaps• Coaching / Mentoring• Actual development process.


APPROACHAPPROACH

– While keeping the Job Rotation in place look at other alternatives for Coaching and Development.

– Alternative ConsideredModified High End Business School ProgramLateral Thinking / 6 Sigma kind of approachesAction Reflection LearningOnly Individual Mentoring

– Selected ARLA classical example of Earning while Learning.Allowed participants to work on strategic projects and at the same time ensured that the company was able to see results as part of the development process.Develop internal coaches which would help in institutionalising the process within the organisation.


STRAETGIC ELEMENTSSTRAETGIC ELEMENTS

– How to make ARL feasible– Management Buy In– Module Design– Project Selection– Developing Internal coaches


STRATEGY : Making ARL STRATEGY : Making ARL FeasibleFeasible

– Impossible to run the program in India with the help of coaches living abroad

– SOLUTION : Internal Coach Development Program– Cost of US and Singapore based coaches and hence the

overall cost of the program– Do we put everyone through the program– SOLUTION : program will be run only for people with

Managerial responsibilities as the element on strategic thinking largely applied to these roles


STRATEGY : Management Buy STRATEGY : Management Buy InIn

• Ernie came and did a taster for the Country Learning and Development Team

• ADVANTAGE : HR Directors and Talent Management teams acceptance

• Ernie came and did a taster for the Country Management Team• ADVANTAGE : Country Management Team Buy Inn, Willingness

of the team members to sponsor projects and provide internal coaches

• A one day workshop for the Senior Leadership Team (Factory Managers, Sales Managers and Functional Managers)

• ADVANTAGE : Senior Team Buy Inn, Willingness to participate.• Finally all stakeholders were asked and based on overall inputs it

was decided to go ahead


STRATEGY : Module STRATEGY : Module DesignDesign

ARL modular - 3 modules. Concepts, principles and tools of ARL were introduced, applied and demonstrated, Just in Time, to make the learning process of the participants more robust.Module 1 - Leader in the Organisation and Strategic Thinking.– projects were presented to the teams

Module 2 - Leader in Me and Delivering Business Results Module 3 - Leader in the Team and Corporate Social Responsibility. – presented the final recommendations for implementation

Between each module - gap of 8 to 10 weeks - teams to work on the projects - help of the internal SKF CoachesCompetencies of Strategic Thinking and Delivering Business Results were based on the data generated from the development centres.


STRATEGY : PROJECTSSTRATEGY : PROJECTS

1st program was launched in Q4 of 2009. Three teams of 6 to 8 members Business Leaders identified strategically important projects.Teams assigned these projects– To improve the Sales Price Level of the Electrical and Two

Wheeler segment from 92 to 102.– To increase the volume growth in Industrial Aftermarket by

20% in 2010 over 2009– To increase the volume growth the Vehicle Service market

by 20% in 2010 over 2009.Post Module 3 actions were implemented by the teams during the balance of 2010.


STRATEGY : DEVELOPING STRATEGY : DEVELOPING INTERNAL COACHESINTERNAL COACHES

This program consisted of – Attending the 2 different Business Leaders Forum’s– Undergoing 9 days of additional coaching on ARL principles and

concepts. – Working on a special project as a team while receiving coaching from

Ernie– Reading the ARL Book– Going through all online e material and tests on ARL until they passed

the tests– Writing a synopsis on the ARL Book and also a short case of their

journey as a coach– Attending a 4 hour quiz on ARL– Providing coaching to their assigned teams during the 2 Business

Leaders ForumsBased on the above 7 of the original 12 successfully completed the coaching requirements and are now fully trained ARL coaches for SKF in India


OUTCOMES : BUSINESS OUTCOMES : BUSINESS RESULTSRESULTS

SKF in India– Sales Price Level of the Electrical and Two Wheeler

segment rose from 92 to 100. (huge 8 percentage point increase)

– Volume growth in Industrial Aftermarket was 16% in 2010 over 2009.

– Volume growth the Vehicle Service market was 16% in 2010 over 2009.


OUTCOMES : LEARNINGOUTCOMES : LEARNINGSKF Internal coaches are on their own driving some of the ARL programs within SKF – LSB FactoryParticipants have begun to use some of the simple tools like Fist Five, 4 Mat, Power Planning, SRWR in their day to day work


VOICESVOICESParticipantsInternal CoachesBusiness Leaders


THANK YOUTHANK YOU

Learning and Organizational Transformation are not Compulsory

BUTNeither is Survival

Questions are Welcome

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Arl -skf_in_india_story[1]