CHAPTER - V
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Strategic Human Resources Initiatives of
HCCBPL
Since 2005, HCCBPL’s people processes have been tightly linked to the
short term and long term priorities of the India Business. In its journey
to World Class, the HR Team began by focusing on ‘Basics’ in 2005,
given the sagging morale and low engagement within the Organization.
Step by step, continual improvement in HR processes began to
permeate an ‘Inverted Pyramid’ culture. HCCBPL moved away from a
Grade driven hierarchy to a Role based Customer Service organization
while simultaneously formulating HR milestones and metrics in line
with business needs.
In 2008 and 2011, as HCCBPL business went through a challenging
first half and a turnaround in the second half, positive employee
morale and engagement could be seen as a key contributing factor.
Going forward, as HCCBPL business shifts gears to accelerate growth,
the people processes too will aim to transform HCCBPL into a High
Performance Organization. By 2020, HCCBPL dreams to have a World
Class Bottling System Capable of flawless execution across India.
Doing so, HCCBPL will be building the foundation of an Institution
that will deliver over 2.5 Billion unit cases by 2020. This note aims to
capture the alignment of People/HR Processes with Business Strategy
and the initiatives undertaken from 2005 – 2010 as the India Business
doubled from 0.4 Billion USD to nearly 1 Billion USD.
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HCCBPL’s Business Evolution: 2005 - 2010
In the period 2005 – 2010 (2011 financials yet to be published) the
India business has shown steady growth on key indicators of business
health, whilst doubling revenues from 0.4 Billion USD to 1 Billion
USD:
FIGURE: 5.1 Key Indicators of Business
Key
Metrics 2005 2006 2007 2008 2009 2010
5-Year
CAGR 2010
3-Year
CAGR 2010
Volume UC 192.9 172.8 196.7 230.3 298.7 356.4 16% 22%
Net
Revenue 344.6 378.6 508.8 598.7 728.3 954.3 20% 23%
EBIT -85.2 -76.9 8.1 22.3 40.4 58.5 93%
EBITDA -29.3 -15.1 71.7 81.2 96.5 140 25%
NARTD
Share 37.5 36.5 37.3 37.3
This growth has been in the context of the macroeconomic scenario in
India which has been a mixed bag over the past few years. While the
Indian economy has continued to grow at 8.0%, food inflation had
touched almost 17% in 2011 and aggregate inflation is also
approaching double digits. Growth prospects of the economy continue
to be strong, but cost of operations has been increasing with rising
input costs in terms of manpower, commodities and fuel/energy.
The biggest opportunity in India is emerging in rural markets with the
improvement in infrastructure and communication.
However, the Indian market has been posing challenges on two fronts,
1) Taxation: It is an area where constant pressure and changes exist
to meet government expenditure.
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2) Activism: The second key challenge is the hostile environment
driven by activism. While this is getting mitigated by HCCBPL’s Live
Positively activities, it may take many more years to get neutralized.
The incredibility of India manifests itself in terms of the huge bouquet
of opportunities, albeit with challenges, that the country offers.
Diversity in every sphere of culture, language, religion, climate zones,
ethnicity, pop strata, economy and polity define lifestyles and
consumption patterns in the second most populous country, throwing
up marketing opportunities across multiple segments and need-states.
The opportunity in India is embedded in its multiplicity and complexity
and hence needs to be leveraged in a very granular manner, given the
changing trends in demographics within India’s diversity.
1. Continued population and middle class expansion in India provides
huge opportunity to build a strong beverage business from ≅0.5 Bi
Unit Cases in 2010 to ≅3.1 Bi Unit Cases in 2020. The demographic
dividend in terms of India’s population only enlarges the
opportunity as India heads to be a nation of young high earners in
the lead-up to year 2020 coupled with a high private consumption
trend (≅70% of GDP).
2. In 2010, India is the third largest beverage market in the world with
a beverage consumption of 108.3 Bi UC, out of which 79.4% is Tap
Water. Coca-Cola products are a small part of the balance 20.6%
commercial beverages.
3. In India, the expansion in the middle class and rising employment
levels have led to per capita GDP growth at ≅8.6% and is projected
to grow at ≅7.4% till 2030. This is favorably impacting the quality of
life and consumption pattern in terms of personal choice items. The
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increasing teen population with an active and healthy lifestyle is
also driving consumption in terms of communication tools, food and
beverages.
This process has already started accelerating the conversion of
beverages consumption/business from tap water to NARTD.
Strategic Roadmap for the business:
Given the macro-economic environment, the immense opportunity in
the commercial beverages category and the impending challenges that
the company foresees as headwinds, HCCBPL has laid out its Strategic
roadmap for the business.
The roadmap undergoes a revision every year keeping in mind the long
term plan for the next 3 years, and any other contextual factors.
FIGURE : 5.2 HCCBPL -Strategic Road Map
Win in the Market Drive Returns
�Operational Excellence
leading to Centers of
Excellence
�Pipeline of value &
Procurement Excellence
� Best-in-Class Supply
Chain
� Effective Revenue
Growth Management
�Maximize asset turns
Approach Based On Continuity, Consistency & Constant Improvement
Segmented execution to
ensure…
� Conversion from tap water
at the bottom of the pyramid
�100% Outlet penetration
with Control
� Leadership in every market,
category & channel including
emerging channels
� Successful new product
launch & consolidation
� Teen & middle class
recruitment
Best-in-Class Bottler cost
structure through…
�Standardized systems &
processes to drive
execution
�Compliance & governance
� Employer of Choice
� Strong talent pipeline
� Safe & diverse workplace
� Engaged workforce
Drive Customer-
orientation by…
HCCB – Strategic Road Map
Create a Culture of
excellence
Live Positively:*Water Stewardship *Carbon Footprint *Sustainable Packaging * Community
HR function plays a key role in ensuring alignment of the 3 pillars of
the Strategic Roadmap with the various People processes, whilst also
communicating the elements of the roadmap across the organization.
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Alignment of HCCBPL’s HR Strategy with the Business:
Since 2005, HCCBPL’s people processes have been aligned with the
current and emerging business context. A segmented process of
alignment ensured that each element of the business plan had a HR
plan supporting it as follows:
BP Imperatives HR Implications
1 Sharper segmented
execution ,
Accelerated
Horizontal expansion
Scale up quality and quantity of Hunters
Segment Sales force into Urban , Rural &
Key Accounts
2 Rural growth , Drive
RGB & hence market
share
Replicate the Rural MD module or find a
new model
Re-deploy RGB Sales experience in rural
markets
3 Urban growth &
market share
Train & Convert Salesmen to Pre Sellers
Deploy Tell Sellers for outlet control
4 Emerging Channels
Dedicated structure & training to
leverage potential
Banner wise managers for relationship
management
Leverage external Industry experience
5 Innovation & New
Products
Dedicated structure & training to grow
the category
Leverage expertise from other KO
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Bottlers
6 Integrated Supply
Chain & OE
Integrate Manufacturing , Distribution ,
Supply Planning and Operations
Excellence seamlessly
7 Dramatically improve
Water Usage
Leverage OE workshops to find solutions
SC Capability function needed to run
training
8 Leverage
infrastructure ,
Flatten Seasonality ,
Drive ROIC
Dedicated Engg function to leverage
infrastructure
Strengthen Supply Planning Team and
S&OP Process
Leverage expertise from outside Industry
9 Ops Excellence , COE Drive OE Training & Certification process
10 Buy Land , focus on
Water , CSR
Dedicated PAC Resource
11 Commodity inflation Dedicated Category leads & Procurement
Analysts
12 Accelerated Capex
investments, New
projects
Dedicated Projects Team to ensure on
time rollout
Leverage expertise from Project
Management Companies
Basis the above HR imperatives, the overall HR Strategy of HCCBPL is
then clubbed under 3 heads, each of which is aligned to an element of
the Strategic Roadmap:
a) Talent – to ensure “Winning in the Market”
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b) Productivity – to ensure “Focus on Driving Returns”
c) Culture – to ensure “HCCB fosters Excellence in Execution ,
especially through Customer Orientation”
Subsequently, long term and short term initiatives were planned under
the 3 heads and further cascaded into execution plans as well as KRAs
for HR Team members.
Thus, every year’s business context and the upcoming year’s plans
impact the focus areas for the HR plan, within the overall context of
the 3 heads as above.
The next section examines the evolution of HR plans and initiatives
across 2005-10 in line with the above.
Design & Implementation of aligned HR Processes: 2005 - 2011
As the HCCBPL business in India evolved from a loss making
organization in 2005 to an organization on path to sustainable
profitable growth by 2010, various HR initiatives were designed and
executed in tight alignment with the business plans each year.
2005-06: As the India business began to steer itself towards
segmented execution and onto the path of becoming a World class
selling organization, the HR focus was on the “Power of Basics”. This
was necessitated given
• The employee Attrition @ 32% and Employee Engagement @ 73%
• The Butterfly Management culture prevalent in the organization
(with average tenures being 8 months to 18 months in an
assignment)
• Short term focus and Low Process orientation among managers
• Commoditization of the brands led to loss of premium in the eyes
of Associates and customers
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During this period, the initiatives undertaken were more tactical,
specific to the business reality at that point and aimed at stabilizing
the newly formed bottling organization.
• Senior leaders had to be convinced about leaving employment
with Coca-Cola India (The Company) and moving to HCCBPL -
the Company owned bottler.
• Middle level and Junior level managers had to be engaged and
convinced about sticking to a particular assignment for a 2 to 3
year period , so as to make a sustainable contribution
• Repeated communication and Leadership meets every quarter
reinforced the new strategy of the bottling organization, focused
on segmented execution, building capability to drive market
execution and re-instill the premium for Coca-Cola’s brands in
the market.
• Workplace Rights Policy adherence and 100% Statutory
Compliance became critical focus areas, given the poor state of
affairs at the front end and shop floor level. Non inclusive people
practices and scant respect for dignity of labour and safety
accentuated the cause. The HR Team focused on driving self-
audits across units, improving compliance with respect to the
laws of each State and national enactments. Extensive capability
building was done around WRP for Factory Managers and HR
managers so as to ensure implementation of the same as per
global defined standards.
2007 : As the business began to show first signs of recovery, the focus
for HR processes was on “Invert The Pyramid” . During this period a
number of significant structural changes were made in the business.
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• The Four Regions (North , East Central and South) were clubbed
into Three Regions basic business size (North , Central , South)
• In line with the direction of the business and given the need to
drive strong functional capability across the organization in a
uniform manner, new Sales, Route To Market and Cold Drink
Equipment Structures were brought up.
• In line with the need to Invert the Pyramid, and support all those
who interface with the Customer, 500 new feet on Street Market
developers were introduced, and were positioned as the most
important role for the business. This role had clear
responsibilities around market execution and account
development.
• In line with the need to have simple, objective, data based
assessments, a simplified Performance Mgt System was
introduced. 60% focus lay on Business Results, 20% on People
development and 20% on Competencies exhibited. A basic
competency framework for the bottling business was also
introduced.
2008 : With the business showing trends of sustainable growth, the
HCCBPL HR organization began to focus on global benchmarks and
metrics . The theme for the Team was “Hit the Bull’s Eye”, and
therein lay the need to have strong HR processes that led to
sustainable outcomes.
• The business had grown on the back of Stable Leadership, at the
Corporate, Region and Unit levels
• It was the right time to strengthen the Talent pipeline in the
organization and parallel start focusing on Career planning. The
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global People Development Forum process (PDF) was customized
for Indian requirements
• Performance based Compensation was driven with a bouquet of
fixed and variable pay options being offered to Associates.
Compensation was recognized as a key tool to drive certain
behaviours in the organization, such as customer orientation &
discipline for routines at the front line level or long term planning
& achievement of sustainable growth at the senior management
level.
• By introducing standard Metrics & Benchmarking productivity
across Regions, the Company was able to bring in uniformity in
systems and a common yardstick to measure progress and share
best practices.
2009 : The focus of the business was now on accelerating growth,
which it did. Despite change of leadership at the top, the long term
strategy of HCCBPL continued on the same path, only with a new
motto “Good To Great”. The focus was now on building a Great
Institution vis a vis remaining a good bottling organization that
HCCBPL was supposed to be, as per design. This had strong
implications on the kind of culture that needed to be fostered.
• HR’s efforts to Diversify the workforce and bring in Women
especially at the front line roles (Market developers), achieved
significant momentum. This was in line with the Business
outlook that while its consumers represent both sexes, the
company’s workforce was overwhelmingly male.
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• Initiatives around Culture Survey and Contract Labour
Management practices ensured that Leaders focused on driving a
culture of openness & inclusiveness
• In order to further strengthen the Talent pipeline in the
organization, Assessment & Development centers were
institutionalized as part of the development and growth path for
Associates at all levels.
• Efforts were made to ensure that the Workforce Safety, Health &
Wellness initiatives reflected the Coca-Cola standards and that
the mindset of Associates and other stakeholders reflected this
significantly.
2010 : By 2010, HCCBPL was on the cusp of crossing the 1 Billion
Dollar Revenue mark. The organization was now on path to Vision
2020, which laid the foundation for a course to grow into a 2.5 Billion
USD organization. This required serious focus on Talent and
development from within. It was time for us to focus on accelerating
growth on the basis of sustainable processes. The key theme for the
HR organization was that the “Time is Now” for it to make those
discontinuous shifts in strategy.
• A major focus was on Hi Leverage Leadership Development,
especially for HCCBPL General Managerial Talent, which would
be leading the organization forward. The 18 month GM College
with IIM Ahmedabad was a significant step in this direction.
• In order to ensure comprehensive focus on all elements of
Organization Talent strategy and ensuring its implementation
across all demographics, the ABC Talent Strategy was made a
core element of all HR plans and KRAs.
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• Making the future organization productive and aligned to
business was ensured by driving manning norms across the front
end and back end.
• The foundation for Inclusive growth was laid by focusing on
reducing the Contract : Permanent labour ratio in HCCBPL
operations
• The path to HR Transformation was also laid by leveraging
Technology and implementing the first wave in the form of
centralized payroll processes on the back of standardized
processes.
All the above initiatives were planned and consistently aligned to the 3
heads of the HR plan – Talent, Productivity and Culture – with a
consistent theme sustained across the years.
Going forward, as understood from HR interviews, HR leadership plans
to examine an exhaustive list of the various strategic and tactical
initiatives that HCCBPL designed and implemented across 2005 –
2010. Most of the processes have been strengthened as have new ones
been introduced, in tune with business growth.
HR Organization Structure was aligned to Business Structure:
It is pertinent to note that the HR organization that designed and
implemented these initiatives underwent a change over the years, in
alignment with the business structure.
The initial HR organization was aligned to the Corporate – 3 Region –
15 Units structure, with Corporate responsible for governance &
policies, Region responsible for translation of strategy & development
of regional tactics, Unit responsible for implementation of the same.
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FIGURE : 5.3 HR Organization Structure aligned with Business
Structure
By end 2010, the HCCBPL Business organization had transformed
from a Region centric to a Vertical centric structure. In alignment with
the same, the HR organization restructured itself as below:
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FIGURE : 5.4 COE & HRBP’s
The COE roles were tasked with driving world class processes, while
HRBPs were equipped to partner with the various business verticals
and support execution of the Business strategy.
In preparation of accelerated growth towards Vision 2020 the HR
Transformation drive was strengthened, wherein processes were re-
wired and standardized nationally. All non- value adding processes
were automated or eliminated in a phased manner, while Shared
Services in Payroll and Recruitment were set up on the basis of
standardized HR processes.
As already stated, HCCBPL HR now plans to dwell deeper on the
strategic and tactical initiatives implemented by this HR Organization
between 2005 – 2010, in sync with the Business plans and aligned to
the Talent – Productivity – Culture focus: Some of the key themes as
stated by HR leadership are as follows:
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Talent – The key themes that were consistent across all processes
Deploying high performing talent for all roles which are strategic /
which create wealth for the organization,
Improving the productivity/performance of the current workforce, and
Building a strong Leadership pipeline and to become a net exporter of
talent within Bottling Investment Group of Coca-Cola Company. HCCB
HR aims to become India’s Employer of Choice to attract and retain
best talent.
ABC Talent Strategy – The bedrock for the HCCBPL Talent Strategy is
ABC. Assessment – (Buy – Borrow – Build – Bind – Bounce) – Culture
& Continue. The ABC Talent Strategy was segmented by Employee
Demographics & anchored in ‘Inverted Pyramid’ culture.
This strategy was incorporated into every Talent management process
in HCCBPL as well as into the KRAs of all HR Team members.
FIGURE : 5.5 HCCBPL -ABC Talent Strategy
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• ‘A’ Players in Strategic Positions – One of the key outcomes of the
ABC strategy was the segmentation of employee demographics
and application of HR interventions so as to add significant value
to the business. By identifying the strategic positions (which are
found within Strategic Capabilities which deliver VPC – i.e.
enhances customer’s perception of Value, enables HCCBPL to
charge desired Price for its products, enables them to produce at
its desired Cost) for HCCBPL, HR was able to ensure strong focus
and traction for the business. Further, the Business Managers
were aligned to strengthen the talent in these roles through the
ABC (Assess-Build-Borrow-Bind-Buy-Bounce-Culture &
Continue) Framework by ensuring high performing Associates in
all these roles.
FIGURE : 5.6 Identifying Strategic Positions through Strategic
Capabilities
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• “Golden Threshold” Defined Entry Level Hiring program – Another
key demographic was Defined Entry level talent where the ‘Buy’
strategy was implemented in a structured manner. HCCBPL
inducts World Class Talent from premier management &
technical institutions for Commercial, Operations, Supply Chain,
and Finance while also raising the bar on Market Developer
hiring standards. Given the equity that HCCBPL has been
building with educational / technical / management institutions
around India, it has built a healthy pipeline of talent for
� Management Trainees (MBA in Sales /
Distribution/OE/Planning / HR)
� Finance Trainees (CAs / ICWA)
� Graduate Engineer Trainees (B Tech in
Mech/Elec/Food Tech)
� Sales Academy Trainees (Graduates)
� Market Developer Trainees (XII / Graduates)
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Further, through the GOLDEN THRESHOLD Cadre Building Program –
HCCBPL has been building its talent pipeline of entry level managers
and supervisors at defined levels. This program offers cross functional,
cross locational orientations that seek to prepare young professionals
with all the knowledge, skills and exposure required to operate
successfully in the Bottling Business. They are spread across 6 months
to 1 year in terms of time duration and usually have a batch of 12 – 20
Trainees.
FIGURE : 5.7 GOLDEN THRESHOLD Cadre Building Program
Performance Management System - From 2005 to 2010, the
Performance Management System has undergone multiple changes in
line with the Business reality and context. While HCCBPL has aligned
its PMS to the overall TCCC ratings (EP/SP/DP/NP), the process is one
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that has evolved over a period of 5 years and has contributed to the
culture of the organization. First, HCCBPL had a simple objective PMS
in 2005-06, based on purely quantifiable KRA #1 (Business KRA),
people development KRA (KRA #2) and KRA #3 competencies.
As the business evolved, the focus shifted from outcomes to processes
that lead to sustainable outcomes. By 2010, the PMS had a 60:40
weightage for Business KRA (Achievement of Business Results against
Standardized Objectives defined by Role / Function + Demonstration of
relevant Competencies / Behaviors to ensure sustainable results) and
People & Culture KRA (People Leadership, Self Development, Culture &
Engagement Scores).
This was further revised to 50:50 focuses on Business: People &
Culture KRA. This was in keeping with the need to focus on
sustainable growth as against the short term / ad hoc management
that used to be practiced earlier. This is in line with the reality of the
Bottling business which is equally results & execution focused as it is
people intensive.
Additionally, a 180 degree feedback mechanism was introduced to
focus on Observable Behaviors , especially on People Leadership –
(Reinforcement of Situational Leadership, Coaching & Feedback using
GROW, Building Capability, Self Development, Emotional Resilience,
Supporting Teams, Leading by Example ) ; Thought Leadership – (
Developing Ideas and Analytical Thinking) ; Result Leadership – (Speed
of Execution, Relentless Responsiveness, Commitment and
Relationship Building)
People Development Forum – HCCBPL has leveraged the global PDF
(People Development Forum) system and made it the core of all people
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processes. All career plans, succession plans and talent plans stem
from the PDF. Across the years, People Managers have been trained
around identification of Potential (Ability, Aspiration, Leadership) and
Performance so as to ensure objective Talent Segmentation. Following
this, a number of action steps can be taken to ensure reward, retention
and development of Hi Pot / Promotable and Expandable Talent.
FIGURE : 5.8 People Development Forum
• Employee Assessments and Development Plans – Within the
ABC Talent Strategy, lays the cornerstone for developing and
segmenting talent at all levels – i.e. Assessment & Development
Centers. Operations, Commercial, Supply Chain & Service
function Associates have undergone assessments and
development plans at all levels. HCCBPL has been using
Assessment Centers with rigour for developing and segmenting
talent at all levels and corroborate the potential that has been
arrived at basis the PDF process. HCCBPL’s internal Assessment
processes as well as trained Assessors (Trained by SHL) enable
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HR to execute assessments and create development plans in a
timely manner. The outcome of the Assessment and Development
centers is that Individual Development Plans are articulated in
line with the 70:20:10 principle (On the job: Coaching: Classroom
Training). These IDPs form the basis then for developmental
discussions and initiatives for the Associates.
• Regional SUMMIT - One of the key hi leverage developmental
programs that was run by HR in HCCBPL is the Regional
SUMMIT. By immersing senior leaders as well as hi potential
managers in this program, a 360 degree behavioral change was
initiated. After the Summit program, each participant was also
given a concise report which holistically captures all the inputs
they got from the various instruments they had been
administered. Further the business simulation and on site
coaching enabled strengthening of business leadership skills.
FIGURE: 5.9 Regional SUMMIT
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• GM College with IIM A – The other hi leverage leadership
program that was designed and implemented at HCCBPL by HR
was the 12-18 months Development program for potential GMs
under a partnership with one of the top business schools in
India, IIM-Ahmedabad. 10% of the Program was based on
Classroom Teaching. 20% was based on Coaching from world
class thought leaders like Ram Charan and Marshall Goldsmith.
70% of the program was embedded in live projects that the
participants designed and executed under the mentorship of
senior HCCBPL leaders.
FIGURE : 5.10 GM College with IIM A
• Mid-Level Managers’ development: Post the GM College, a 12-
18 month development program was rolled out for middle
managers in the Company. Titled Leadership Excellence &
Accelerating Performance (LEAP), the first module covered all
Zonal Heads from various functions and their corporate
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equivalents. The first session involved class room training at ISB
Hyderabad, with facilitators drawn from HCCBPL, Development
Dimensions Incorporation (DDI) and Bottling Investment Group
(BIG).
FIGURE: 5.11 Mid—Level Manager’s’ development
• Productivity/performance – The consistent theme under this
pillar
• HCCBPL HR will ensure to drive returns through its People,
whilst ensuring the organization is customer focused , front
ended and lean
• People to Structure & Structure to Strategy – Given HCCBPL’s
strong fundamentals and the continued focus on investing in its
people, brands and its customers, a strategic shift was made in
2009-10 to build on a few fundamentals. M/s Mercer
165
Consultants were engaged to conduct a detailed study to identify
the structural challenges that HCCBPL needs to overcome
keeping in mind key strategic and business considerations of
accelerating long-term sustainable growth.
• Mercer was given the task of advising HCCBPL about an
organization design that would facilitate long-term business
strategy, enable change management and consider the business
characteristics unique to India.
• Basis this study, an Integrated Supply Chain Organization with
clear interfaces between demand creation (Sales) and demand
fulfillment (Manufacturing, RTM) was recommended. In line with
the same, the new Corporate Supply Chain structure was
implemented by integrating Manufacturing, RTM, Planning and
OE under the Senior VP- Supply Chain from 2010.
• The other significant recommendation by Mercer was the creation
of 7-8 Business Units or Zones to drive business growth through
functional excellence and standardized processes.
Basis this recommendation, HCCBPL HR identified 8 Zones
keeping > 90% supply-demand self-sufficiency and optimal
geographical spread in mind. These are (i) Delhi, UP,
Uttaranchal, J&K (ii) Combined North East, Bihar, Siliguri (iii)
Gujarat, Rajasthan (iv) Odisha, Jharkhand (v) Maharashtra, Goa
(vi) Tamil Nadu (vii) Karnataka (viii) Andhra Pradesh. Madhya
Pradesh & Kerala would be kept independent to reap the
available potential in these markets and accelerate growth.
• The Zonal Vice Presidents were made to report directly to the
CEO, and were supported by a Team of senior personnel, heading
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various functions. The Zonal structure enabled an equal balance
of demand creation and demand fulfillment priorities of the
geography with strong support from various service functions like
HR, Finance, BSG, Legal & PAC.
• The Corporate Team’s role became one of governance, systems
and capability building, whilst also supporting the Zones as they
drove business growth towards Vision 2020.
FIGURE : 5.12 HCCBPL Leadership Structure
• All existing and new jobs in HCCBPL have been evaluated using
The Coca-Cola Company (TCCC) guidelines and Mercer IPE Job
Evaluation Tools. The results have been reviewed & approved by
the HCCBPL Job Evaluation Committee. The evaluation findings
167
have been used to place the Jobs in the new HCCBPL levels as
attached
FIGURE : 5.13 Job levels in HCCBPL
• Contract Labor optimization – Over the years, a strategic focus
has been maintained on accelerating Automation and
rationalizing Casual labor deployment. This has been possible
through elimination of contract labor in core areas( Bottling hall,
quality and utilities), Payment of Fair wages (10 – 15 % higher
than the minimum wages), Increase in productivity of loading /
unloading and Seasonal labor, Support to the contract labor to
acquire technical qualifications and Regularization of the
Contract Labour through Skill assessment Programmes.
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• These measures have also contributed to fostering an inclusive
work culture.
• Sharp Performance Differentiation, Linkage to Rewards and
driving Behaviour Change through Rewards – Over the years,
HCCBPL has ensured sharp Performance – Position – Person –
Pay segmentation and direct linkage to monetary & non-
monetary Rewards through an aligned Compensation framework.
• The HCCBPL Rewards Philosophy is aligned with TCCC / BIG
Culture , Vision and Strategic Goals
FIGURE : 5.14 HCCBPL Reward Philosophy
• HCCBPL’s vision to be a World Class Selling Organization by
focusing on growth and productivity requires the setting of
goals, executing, measuring & rewarding, and finally learning
& applying. In order to ensure that HCCBPL HR has been
providing rewards that are competitive in the market,
meaningful to Associates, and cost-effective for the Company,
Total Rewards Framework
Compensation Benefi ts
People
Development Capabil ity
Work
Environment
�Behaviors and
Expectations for
Managers and Leaders �Expected Business
Performance
�Enable Excellence in Execution
Develop a
Competitive
Advantage Thr ough Our Distinctive
Capabi lities
�Total Shareholder
Return
�
Value�Competitive Cost
Advantage
�Improved System
Health
�Bottler Revenue
�
�Strong Bottler
Relationships
�Enhanced Custom er Value�Consumer
Satisfaction and
Loyalty�Increased Brand
Recognition and
Value
Culture & Values
Total Rewards
Fr amework
C ompen satio n Ben efits
Peo ple
Developm ent Wo rk
Environmen t
Employee
Associate
Behavior s
• Expec tations for
Managers
Business
Business
Performance
Performance
Financial
Perform ance
Culture
&
V alues
• Develop a
Co mpetitive
Advantage through
ou r Distinctive
Capab ilities
• Enable
Distinctive
Execution
• Enha nce Custom er
Value, Im proved
Custom er Satisfaction
and Lo yalty
• Improved
Prod uctivity an d Returns
• Ou t execute and Out
Inn ovate
• Operating In com e
• Su stainab le
Revenu e and
Volum e Growth
Total Rewards Deli ver y
• ROIC
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the HR function uses a Total Rewards Framework, which
reflects the true value of an Associate’s affiliation with the
Company in 4 areas:
a) People development (such as learning new skills and
competencies to grow individual careers),
b) Work environment (HCCBPL’s culture, brands, corporate
image, individual manager and work team),
c) Benefits (medical insurance to vacation to retirement),
d) Compensation (base pay, annual incentives, long-term
incentives, reward and recognition)
• HCCBPL HR believes that ‘Total rewards’ help inspire and
reward Associates to focus on those actions that produce the
greatest results, which in turn drives business performance
and thereby creates financial results. Creating superior
financial results then allows HCCBPL to be able to afford and
fund total rewards programs that are meaningful and effective
in attracting, motivating and retaining the talent it needs to
continue creating those financial results. The result is a
virtuous circle of rewards leading to results which in turn lead
to more rewards and so on.
• HCCBPL recognized that organizations are likely to find
themselves under pressure to explain to stakeholders why
they pay what they do in the way that they do, and
demonstrate that they have clear policies and processes to
ensure that reward is driving sustainable long-term
performance.
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• Key Elements of the Total Rewards Program were aligned with
the emerging Indian business context. The Hay Group’s
extensive research on Compensation & Benefits strategy was
leveraged as it indicated the need for alignment of:
� Needs of the organization – Organization values,
performance requirements and need for talent
� Needs of the employees – Employee values, preferences
and demographics.
FIGURE : 5.15 Compensation & Benefits strategy-Hay’s Group
� The right mix will drive the desired behaviours for
effecting performance in the short term and influencing
change and creating value in the long term.
� By offering a bouquet of fixed, short term and long term
rewards as well benefits, HCCBPL has effectively
managed to align Associate behaviours and drive the
right performance culture required for sustainable
profitable growth.
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• Productivity linked Long term Settlements - These
strategic Employee Relations initiatives were arrived at with
unions in manufacturing locations, especially for 4-5 year
terms with the objective to institutionalizing the principle of
collective bargaining and arriving at a win – win solution,
within the ambit of the Workplace Rights Policy. Also to effect
improvement in workforce productivity through an inclusive
and participatory process
• The Key Principles adopted were –
� Workers participation and Collective Bargaining
� Business Continuity to be ensured through
Harmonious IR climate
� Wage increases aligned to productivity, profitability
and performance of the workers
� LTS cost may be equaling GDP growth + Inflation Per
Annum
� Inflation rate should be mitigated through
Productivity gains
• Productivity Linkages to Settlement were ensured as a
standard process in every LTS, and the following parameters
are incorporated in line with the principles as above :
� 100 % Standard Manning Compliance : Manning and
Operators deployment at various workstations will be
strictly as per National Standard Manning Template of
HCCBPL which is currently applicable now and gets
revised from time to time
� SLE Parameters :
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� System Line Efficiency : > 85 %
� Mechanical Efficiency : > 90 %
� Concentrate Yield : > 99.8 %
� Pre-form Yield : > 99.8 %
� Power usage (weighted) : > 25
� Fuel Usage (weighted) : 150 liters beverage per
liter of fuel
� Average Pack Size Changeover Time across all the
Lines should be as follows
� CIP + Pack change - < 40 Mts
� Only Flushing - < 12 Mts
• OE Certification
• Preventing Absenteeism… to meet Statutory Compliance
� Controls in utilization of annual leave in season
� Minimum 90 % physical attendance – eligibility for
Annual Increment
• Introduction of flexible work practices and Flexibility in
deployment
� Total flexibility and complete interchangeability of
workmen between shifts, lines, departments and
activities even in the midst of a shift, depending upon
requirement. No minimum number of workmen crew
required to be maintained in a
shift/department/activity,
� The minimum crew required attending to an activity,
allocation of workmen or making any changes shall be
decided by the manager concerned. Workmen crew
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available for all the lines shall attend to the maintenance
jobs relating to any line.
� Manning is decided based on technology, work practices,
work methods and systems prevailing at a given point of
time.
� Multi-skilling: Multi-Skilling concept to all the workmen
working in different sections, departments, areas and
lines
� Staggered weekly off’s: Staggered weekly off system in
place throughout the year
• Enhance the Settlement period from 3 years to 4 years or even
5 years
a) Culture – HCCBPL will continue to foster a diverse, inclusive,
safe & healthy environment where workplace rights are
respected. HCCBPL will also strive for the ‘right behaviors’ among
its Associates to ensure that the high engagement levels of its
Associates are converted into customer satisfaction.
• Culture of shared mindset – HCCBPL HR wants to drive a
culture of shared mindset throughout the organization, by
ensuring HCCBPL Associates exhibit the common behaviors
befitting ‘Speed of Execution’, ‘ Relentless Responsiveness’,
‘Commitment’ and ‘Relationship Building’. In line with the
same, the development of a Competency framework in
alignment with the HCCBPL Culture, Values, Mission and
Vision has been the cornerstone of the ABC Talent
Management strategy. The framework bundles the HCCBPL
Competencies into Thought, Results and People Leadership.
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This is then cascaded and linked to all other People Processes
such as talent acquisition, assessment, performance
management, PDF etc.
FIGURE : 5.16 HCCBPL Competency Framework
• Gender Diversity – As a long term strategy, HCCBPL has
been actively encouraging the increased participation of
women in the workforce. This is especially focused at the
hiring stage so as to achieve a 25% diversity ratio by 2020.
This includes a segmented approach to introduce talented
women Associates at Junior and Middle Management levels.
HCCBPL HR also focuses on Career Development of middle
level women associates through the ‘Vijeta program’ and
ensures long term retention.
• HCCBPL HR also has been striving to get more women into
leadership.
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FIGURE : 5.17 Engage and Retain
FIGURE : 5.18
Vijeta Process Steps
• Contract Labor & Inclusiveness – While HCCBPL focused on
Contract Labor streamlining in alignment with the new DO&IP
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process and automation, there has also been a strong focus on
fostering a culture of inclusiveness by developing HCCBPL
worker/contract labor category and creating careers for them
in the organization. This has been done by HR through the
“Employability through Skill Development” Program for
Contract Labour.
� The key objectives of this program are -
� To enhance skill levels of contract labour engaged
by contractors across HCCBPL’s operations and
make them more employable.
� To provide an opportunity to contract labour to
improve their technical qualifications and hence
their employment opportunities within HCCBPL or
outside.
� HCCBPL identifies workers for sponsoring under this
program by following criteria as below:
� Minimum qualification should be at least 10th
standard pass, and
� Age group to be between 20 - 35 years.
� Should have cleared Internal Assessment organized
by HCCBPL for this purpose
� Contract workers who are willing to give
undertaking to relocate to other units based on the
requirement either within the Region or State after
completion of the ITI course
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� While the above mentioned criteria’s are the
minimum requirements, preference is given to
those workers who are younger, more enthusiastic,
display higher commitment and keenness to learn
and hail from the nearby villages of plant locations.
� Program Mechanics :
� HCCBPL sponsors course fee and stipend (pays
Rs.2500 per month or protects the current monthly
earnings, whichever is higher, towards their
sustenance) for at least 5 contract labourers per
Factory for courses offered by Industrial Training
Institutes (ITI), during their course period.
� The Company bears the course fee by either
remitting the same directly to ITI or reimbursing
the same to contract workers, on submission of
proof of payment. The Company also provides
books and uniform.
� Wherever it is possible to do the ITI course through
Evening /morning classes, such option is
considered while they continue to work with plant
& the expenses towards Course Fee, Books, Out of
pocket expenses towards Conveyance etc are borne
by company.
� Upon completion of the course, the contract labour
can continue to work with HCCBPL and may be
absorbed by the Company when a suitable vacancy
arises. However, the Company is not under any
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obligation to provide permanent employment to the
qualified workers. However, the Company strives to
fill all the future vacancies through these qualified
ITI’s only. The contract labourers have the liberty
to find a job outside HCCBPL
Key Outcomes:
As a result of the implementation of all the above strategic and tactical
HR initiatives in line with the Business strategy and reality, the
following outcomes have been accomplished by HCCBPL (there are
other operational related initiatives also but the premise here is that
HR strategies and tactics contributed significantly to these metrices
along with other operational initiatives).
a) The organization has taken a major leap on People Productivity
FIGURE : 5.19 Unit Cases per person
b) Retention of Associates has shown a dramatic turnaround
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FIGURE : 5.20 Retention
c) Employees are clearly much more engaged than before
FIGURE : 5.21 Engagement
d) Participation of Women in the workforce has improved
significantly
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FIGURE : 5.22 Gender Diversity
To conclude with the benefits of all above initiatives, HCCBPL ensures
Business Continuity with intervention of Inclusive Work Culture.