HR Talent Scape - Aon Hewitt Report

Aon Hewitt
Talentscapes
Q UA R T E R LY
Unlocking the Secrets

of a Best Employer
Godrej Consumer Products Limited
India Volume 1 Issue 1
Risk. Reinsurance. Human Resources.
Contents
18
cover story
Unlocking the Secrets of a Best Employer
Take a look behind the scenes at a consistent
winner of the Best Employer Award and
what they do that sets them apart.
from Indias
the
08 Overcoming
04 Insights
Business HR
Changing Face of
Alignment Practices
24
Measuring the
Business Impact of
Employee Selection
Systems to Improve
Performance
the
14 Bridging
Differences on
Indias Workforce
as
28 Leaders
Coaches:
Developing Talent
with Compassion
Cross-border
Deals in Japan
34
Assessing the
Long-term Viability
and Sustainability
of Family-led
Businesses
Enhancing Business Value Through HR and Technology

have made tremendous efforts to build technical, functional
and leadership skills aligned to the business strategy.
The last few years of economic dormancy have also
emphasized the impact of employee engagement on
business success; businesses that have survived and
continue to grow are the ones that continue to focus
on engagement. One big part of driving this has been
through developing line managers and empowering them
to be able to take accountability for performance and
development of their teams.
Dear Reader,
Id like to wish you a very warm welcome to 2015, and it
is with great excitement that as this year begins, I bring to
you the inaugural issue of Talentscapes Quarterly. Our
aim is to make this quarterly the pre-eminent repository of
knowledge and exchange of ideas on talent and leadership
between you and Aon Hewitt. Your feedback encouraged
us to create this interface, presenting an opportunity to
engage with our global experts and proactively present
research on topical issues.
The jury is still out on the Prime Ministers ambitious
Make-in-India campaign, as a real shift in policy is yet to
be seen, but to me this is the most hopeful period for the
Indian economy.
In the current environment of confidence, business and HR
leaders are focused on prioritizing the people agenda to
maximize their chances of success. Productivity, innovation
and efficiency are as important for HR as they are for
product development and manufacturing.
As organizations look towards a turning of the cycle over the
next few quarters, the focus is on leadership development.
Organizations face a scarcity of the right talent and therefore,
Talentscapes Quarterly
India Volume 1 Issue 1
www.aon.com/india
Talentscapes Quarterly is published

four times a year by Aon Hewitt
Copyright 2015 Hewitt Associates
India Pvt. Ltd.
Looking forward, the next big change we see is the

collaboration between HR and technology the use
of cloud and big data, and the use of social media. All
this enhances the employee experience and makes HR
effective and customer-centric.
I look forward to using this publication to share my
perspective on how Im seeing the evolving world of HR
and our perspective on the growth agenda. Once again, Id
like to wish you a Happy New Year, and I hope that 2015 is a
successful and enjoyable year for each one of you.
I hope you enjoy the read, and I look forward to receiving
your feedback.
Sandeep Chaudhary
Chief Executive Officer,
Aon Hewitt Consulting India
For more information, please write to us at
talentscapes@aonhewitt.com
Editor-in-Chief
Sandeep Chaudhary
Editor
Sushil Bhasin
sushil.bhasin@aonhewitt.com
Editorial Team
Anjulie Kalsia
anjulie.kalsia@aonhewitt.com
Marketing & Branding
Seema Dhawan
seema.dhawan@aonhewitt.com
Editorial, Reprints & Syndication Office

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Design
Creative Inc. (www.creative-inc.in)
Volume 1 Issue 1
Insights from Indias

Business - HR
Alignment Practices
Pete Sanborn talks about how Indian leaders are poised
to change the way they do business with the change in
leadership of the country.
India had progressed faster in
the area of Human Resources
(HR) compared with most other
emerging economies, says
Pete Sanborn, Co-President of
global HR consultancy firm, Aon
Hewitts Performance, Reward
and Talent Practice, who has
over 20 years of experience in
HR consulting, client relationship
management and outsourcing.
He spoke in an interview on
how Indian leaders are poised to
change the way they do business
with the change in leadership
of the country, and on how
businesses that are transitioning
between leaders are better off
promoting internal candidates
for the top job. Edited excerpts:
Q. How critical were the 2014
elections in India from an HR
perspective? Can a change in
political leadership change the
way companies work?
A. I have seen that changes in
leadership across the world have
implications on companies in
terms of growth expectations
around taxation, which impacts
business strategy and influences
the actions and behavior of the
leaders of companies. In the US,
when Barack Obama came in,
a lot of focus was on what the
major legislative changes would

be, and the healthcare reform
has been a significant issue for
companies and leaders in terms
of their business and HR strategy.
For India, the perception of how
political leaders will act will
determine whether companies
become more conservative
or aggressive from a growth
standpoint and how it will
impact employment depends on
the political environment.
Q. Is India staring at a problem
of underemployment for its
large number of graduates?
A. It can be a big challenge.
In southern Europe, you have
very high unemployment rates
in countries like Italy, France,
Spain and Portugal, where
you have people with college
degrees working as waiters and
waitresses, making little money
as there is not enough demand
within the country, and on top of
that they have skills that are not
particularly in demand. China has
a much more planned economy,
where there is centralized
planning between universities
and companies, which decide
on the number of graduates
introduced to the workforce
every year. In developing
Volume 1 Issue 1
economies, skills by themselves are not

enough, but also the idea of preparing
them to be good employees, in addition to
having the right skills, is important.
Q. How aligned are Indian businesses
with HR?
A. India, where the primary asset is
human capital, is a good example of how
businesses are aligned to HR. I have seen
India progress faster in the HR function
than all other developing countries,
including China. That is because India
is driven by human capital. With large
services, solutions and technology sector,
it is critical to have a strategy to manage
talent and develop critical capabilities of
the workforce. It also helps that India has
better professional education in HR than
any of the other countries and may be just
behind the US for having some of the best
programs for HR professionals.
are those that have a strong pipeline of

internal leaders to step in. There are times
when there is a significant change in
strategy, when the best practice would be
to bring an outsider, but those events are
rare; 75% of the time, the best opportunity
for the company is to have a CEO who was
developed internally.
Q. What are Indias HR-related challenges?
A. In my observation, the real focus in
India is on working for the large companies
as there is a certain status associated
with that. But there is also good talent
that needs to be going to the start-up
companies, where there is innovation
to beat the rest of the world in terms
of economic activity that tends to come
harder in large companies. In the US,
one of the key drivers for success
has been entrepreneurialism.
Disclaimer: This article is published with permission from Mint,
a publication of the Wall Street Journal in India.
Q. What works better in the hunt for

the next CEO, promoting internal or
external candidates?
A. We run a study called Top Companies
for Leaders, and the successful companies
Pete Sanborn
Co-President, Global Compensation

and Talent, Aon Hewitt
Aon Hewitt
Selection and Assessment
Beat the law of

averages when
you hire or promote
Predict job performance, job fit and employee retention
Aon Hewitt has helped clients to hire right for over 30 years. Our world-class tools bring science
to selection and assessment and are administered to more than 11 million candidates annually.
They measure the abilities, skills and personal attributes that predict job performance, job fit and
employee retention.
Assessment for selection
Predictive Hiring
ADEPT-15
Customized assessment
solutions for hiring
Adaptive personality test for

clearly identifying high-potentials
Assessment for development

The next level of assessment
for emerging leaders
Virtual development center Multilayer competency

for managers
assessment 360 feedback
Reach out to Vishal Singh at Vishal.singh.6@aonhewitt.com or

visit us at www.aon.com/india to know more.
Overcoming the
Changing Face of
Indias Workforce
There is no doubt that the
world around us is changing at
an exponential rate, in no small
part because of the influence
that technology has on so many
aspects of our lives. As our
environments become more
flexible, organizations cannot
remain stagnant and have to
follow suit, becoming more
flexible and efficient themselves.
In parallel with these changes
and perhaps the driving factor
behind some of these changes,
are the fundamental shifts
occurring to the demographics
of the employee pool.
As the current workforce ages
and older employees retire, the
percentage of Baby Boomers
and members of Generation
X will reduce, and Generation
Y and Z will contribute to a
majority of the workforce.
Simultaneously, more women
are entering the workforce,
and companies recognize the
advantages of having a more
gender-equal employee pool.
With these demographic
changes, the expectations and
demands that are placed on
employers are also changing,
and companies need to take
this into account to ensure
that their employees remain
engaged at work. While many
companies around the world
might be experiencing similar
changes in their employee

population, these changes are
particularly important in the
Indian context. As the Indian
urban population continues
to grow rapidly, domestic
companies expand and
international companies enter
the Indian workspace, growth
is firmly on the agenda here,
making it even more important
for organizations to ensure that
their employees are engaged.
Faced with inevitable shifts
in the demographic structure
of the workforce, as well as
the knowledge that employee
engagement is a crucial factor
within organizations, we are
looking at what it takes for this
increasingly diverse workforce
to be engaged at work and how
their expectations differ from
older, more male-dominated
employee populations.
We have drawn out the gender
and generation-wise cuts
from three recent studies to
get a more complete view of
diversity in the workplace, tying
the results together to tell a
more complete story. The data
used here comes from the Top
Companies for Leaders 2011
study, the Best Employers
2013 study and the Employee
Preferences Survey 2013, each
of which examines the Indian
workplace from different angles.
Volume 1 Issue 1
Frequently occurring
improvement drivers:
career opportunities
Recognition
Brand alignment
People/HR practices
Senior leadership
Do Diverse Backgrounds Lead

to Diverse Expectations?
Our next question is whether or not there is a
difference in what individuals are looking for from their
companies. To address this, we have looked at a few
key improvement drivers for employee engagement
for both Best Employers and for other organizations.
Figure 1. Companies Making a Strong
Effort to Increase the Number of Women in
Leadership Positions
The data gathered suggests that while expectations

across genders and generations overlap to varying
degrees, there are also key differences, highlighting
the need for organizations to take these perspectives
into account to ensure the engagement and
satisfaction of their employees.
Organizational Approaches
to Diversity
Before delving into what employees are saying, it
is important to consider how companies as a whole
are addressing diversity in the workplace. When
comparing Top Companies for Leaders in India with
other companies in the country, Top Companies
are, in fact, less likely than other companies to list
diversity as one of their top 3 leadership activities.
Within India, Top Companies are also less likely
than other companies to be making a strong effort
to increase female representation in leadership
positions. However, companies in both the Asia
Pacific and Global pools show the opposite and
expected trend, with Top Companies making
more of an effort than other companies, as can be
seen in Figure 1.
However, this is not to say that Indian Top
Companies do not recognize the value of diversity
within the workforce; these companies are more
likely than other companies in India to include
increasing diversity of their leadership groups as a
formal part of their leadership strategy. Indian Top
Companies also use various aspects of diversity as
a criteria for evaluating their processes more often
than other companies do.
10
Career Opportunities
One key improvement driver across all employee
levels, regardless of generation or gender is Career
Opportunities. Across genders and generations,
one third of employees feel that they do not have
sufficient career opportunities. Generation Y in
particular is less satisfied with their learning and
development opportunities. Along with challenging
work, Generation Y also ranks training programs
as a highly preferred development opportunity,
emphasizing their desire to keep learning.
Enthusiasm for training and development is beneficial
not just to the employees but also to organizations,
especially since Generation Y comprises a large sum
of the workforce. While training will of course be an
ongoing investment made by organizations, as long
as they are able to keep employees engaged, they
will reap the benefits of a more skilled and highly
trained workforce.
Recognition
Another improvement driver that appears frequently
across genders, generations and organization types
is Recognition. While monetary

recognition and accelerated career
opportunities are preferred across
generations and genders, some
methods are preferred relatively
more by some demographics. For
instance, accelerated career growth/
development and opportunities
for special assignments are more
important to men, while monetary
recognition and flexibility in
work arrangements hold greater
importance for women.
Generation Ys preferences are actually

a combination of the two, with this
generation preferring flexible working
arrangements and opportunities for
special assignments more than other
generations. Organizations need to
ensure that their employees have the
flexibility to work both in a variety of
areas and also at a pace that will allow
them to balance their work and their
personal lives. The interest of younger
generations in working across domains
ties in with their desire for more
training opportunities clearly these
employees want to develop their skills
base and broaden their horizons.
a higher fixed pay and is relatively less

concerned by performance bonuses.
While most employees would
probably relish higher compensation
and benefits packages, the desired
break-up of these packages differs
across different demographic
cuts. Therefore, it is important
for organizations to leverage this
knowledge and provide employees
with packages that reflect what
they actually want from their
organizations.
Overall Views of their

Organizations
1 in 3 employees is
considering leaving
their organization. Baby
Boomers are less likely
to consider leaving than
younger generations
out of 5 employees feel
4
their companies inspire
them to do their best work
every day
Around 7 out of 10
employees, regardless
of gender and generation,
are satisfied with their
work-life balance
It is important to take a step back

and consider the more high level
opinions that employees have of
their organizations. For instance, 1 in
3 employees is considering leaving
their company. This figure is not
gender-specific, but it is slightly lower
for Baby Boomers, with only 1 in 4
considering leaving. This is clearly a
very large proportion of the workforce,
which re-emphasizes the importance of
Pay and Benefits

While there is a lot of overlap across
generations and genders, each
demographic also has unique drivers,
which highlight the specific areas on
which organizations should focus for
each generation and gender.
Looking at Pay specifically shows
that women are less likely to agree
that they are being paid competitively,
and as the generations get younger,
respondents are less likely to agree
to this too, with Generation Y having
the lowest number of respondents
agreeing to this and the Baby Boomers
having the highest. Going more in
depth also shows that compared to the
other generations, Generation X wants
Top Companies are more likely to use measures such as:

Diversity within the leadership pipeline
Number of diverse candidates in the successor pool
Placement of diverse candidates
Diversity in the high-potential pool
To evaluate the success of processes such as:
The companys progress
Strategic leadership progress
Succession management process
Effectiveness of the high-potential process
Volume 1 Issue 1
11
Unique improvement drivers within Best Employers:

Baby boomers:
Work processes
Managing
performance
Generation X:
Pay
Generation Y:
Generation Z:
Males:
Diversity
Benefits
Resources
Brand alignment
Work tasks
organizations focusing on driving engagement within

their employees.
However, a very positive finding is that 4 out of 5
employees feel that their companies inspire them to
do their best work every day. Again, these findings
are not gender-specific. Baby Boomers responded
even more positively than other generations, with
88% of respondents feeling this way.
Equally positive is the finding that across all
generations and both genders, employees are very
likely to feel that their companys practices help them
achieve the work-life balance they desire, with at
least 70% of respondents agreeing to this across all
demographics. This indicates that with a few targeted
initiatives or changes, organizations can ensure that
their employees are very satisfied at work.
Conclusion
With the demographics of the employee
population changing as older generations retire,
younger generations take over and more women
enter the workforce, organizations need to address
Senior leadership
Females:
Managing
performance
Organization
reputation
changes in external and internal environments

head-on and adjust their policies to fit the demands
of their new workforces.
As gender and generational splits shift drastically,
organizations have some important questions to
consider. Have we considered the changes we will
be facing and how we will address them? Are we
ready for the fundamental shifts in expectations?
And of course, as we make changes to accommodate
employees, it is crucial that we do not let go of the
aspects that are successful at the moment.
The years to come will be both exciting and
important for organizations, and with the data
available, companies are in a position to pre-empt the
changes and stay ahead of employee expectations.
Organizations that are ready to face this head-on will
undoubtedly reap the rewards through having an
engaged workforce, so all that remains to be seen is
which organizations will take this step.
Anjulie Kalsia
Associate Consultant,
Aon Hewitt
For more information, please write to us at talentscapes@aonhewitt.com
12
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helping them see the value of their Total Rewards package.
Total Rewards Statements Showcase the value, build engagement.
For further details and queries, please write to us at
total.rewards@aonhewitt.com
14
Bridging the Differences

on Cross-border
Deals in Japan
M&A activity is challenging
at the best of times. Various
statistics point to the fact
that less than 30% of deals
truly achieve deal goals at the
quantum originally planned
and in the timeframe originally
envisaged. On adding the
complications that are inherent
in carrying out a cross-border
deal, it is easy to understand
why so few companies can
effectively realize value in such
a transaction. While there is a
significant set of examples of
Western companies investing in
Asia, the quantum of investment
in Asias most mature economy
Japan still lags.
Much of this lack of inbound
activity might be attributed to
economic and demographic
reasons, such as the strength of
the Yen making it less attractive
for a foreign acquirer, or the
stronger motivation for Japanese
firms to expand overseas to
counteract shrinking domestic
market potential on the back
of an aging and diminishing
population. However, given
the cyclicality of economics
and some emerging hope
related to policies being driven
by the government under the
leadership of Prime Minister Abe
to revitalize the Japanese market
(at the very least weakening the
Yen), it is possible that there
will be a resurgence of foreign
investment in Japan.
Based on our past experiences,

we would like to take the next
few paragraphs to touch on
the people-factor challenges of
integration that such acquiring
firms may wish to consider in
order to enhance their chances
of realizing a successful outcome.
The differences that create
issues in the integration of
these organizations can often
be characterized around three
main pillars:
Decision-making styles
Communication challenges
Cultural acceptance
Decision-making
Styles
Naturally, the above factors
manifest themselves a little
differently, depending on the
relative situations of the buyer
and the seller. Much has been
written about the differences in
decision-making styles between
companies in the West and Japan,
with the general consensus
that there is greater respect for
the ability to be decisive in the
Western context. This is not to
say that the seeking of consensus
assumes less importance, but the
ability to motivate a team quickly
towards a decision is perhaps as
important and implies clarity in
thought process. Furthermore,
in cases of impasse, the ability
to set a direction quickly from a
Volume 1 Issue 1
15
top leadership perspective and have the fortitude to

stand behind the decision as being right for the joint
enterprise is equally valued.
The oft-quoted success of the Renault-Nissan operation
has largely been attributed to the visionary leadership
of Carlos Ghosn, who enjoys near legendary status in
Japan. This was cemented when early into the deal he
saw to it that he met with the senior management at
Nissan and made certain that he clearly articulated his
vision, showed decisiveness on strategic direction, and
walked the talk by agreeing to step down if the decision
proved misguided and did not deliver the results that
he was committing to deliver. Such commitment to the
decision quickly earned the respect of his Japanese team
and reduced the more generally held view of leaders who
have been parachuted in having no stake in the game.1
Communication Challenges
Communication is a skill that requires highly specialized
competencies at the best of times. The content,
medium, messenger and timing are all critical for
ensuring that all resources within the organization are
adequately informed and motivated regarding the
purpose and challenges associated with the integration.
In Japan, especially in the acquisition of a traditional
16
Japanese business, this can be a particularly challenging

obstacle to overcome for Western firms the choice
of words, the poor translation of messages and the
difficulty in effectively using methods like brown-bag
lunches require companies specifically to address
methodologies for ensuring the proper transmission
and interpretation of the message by the staff.
In the Japanese context, as in a number of other Asian
economies, communication is much more about trust
and relationships. The ability to get beyond the stolid
veneer and more effectively dialogue about intrinsic
issues is critical. The need for precision in messaging
and awareness that translated messages can often carry
unintended hidden meanings must be understood and
addressed with meticulous care. Clearly, more than
mere technical competence in linguistic skills is required
to interpret what is said by one party to another, but
in many cases, what is not said, or what studied silence
implies, is even more critical.
In order to overcome the challenges raised by
the hesitance to raise questions, the lack of active
participation in large group settings, or the reliance
on back channels of communication, and promote
integration initiatives effectively, there needs to
be an inherent knowledge of styles of information
sharing and communication, which are

influenced by both national and corporate
culture. An added consideration in effective
communication is the perceived view of the
messenger herself. Is the person supported
by the head office of the acquiring firm? Does
the person seem willing to listen to
local concerns and help balance the
intentions/aspirations of the non-Japanese
acquiring firm with local requirements, to
drive success in the local context, etc.?
To draw again from the Renault-Nissan
example, it has been reported that a
committee that included the highest
management levels of the two firms, 11
cross-company teams, and nine crossfunctional teams within Nissan were
created by Carlos Ghosn in order to drive
participation and effective communication
between Renault-Nissan and within
Nissan itself.1
Cultural Acceptance
Much is said about culture in any crossborder deal. This is often emphasized in the
Japanese context, given the much-touted
uniqueness of the culture. To some
extent, the combination of culture and
language does contribute to the difficulties
encountered in effecting cultural integration
or change. However, the differences,
especially in the last 15-20 years, have
become less apparent and often manifest
themselves more subtly. These differences
are often less noticeable at the time of
agreement and negotiation and only truly
manifest themselves during integration.
Having a strategic approach to influencing
both corporate culture (what a company
stands for, how work is conducted and
attributes that define the organization) and
national culture to define the overall culture
of the newly integrated entity becomes a
critical element for ensuring deal success.
In the context of Japan, for many
non-Japanese acquirers, distinguishing
between what aspects of the culture
stem from the national culture and what

are corporate culture attributes is often
challenging. Well aware of the fact that
we are grossly oversimplifying matters,
traditional Japanese businesses have tended
towards a directive approach to decisionmaking more rooted in hierarchy, where
information sharing tends to be more onesided, and open discussions in the Western
sense are less common.
Understanding the difference between
what attributes are changeable from a
company-culture perspective and which
are areas where allowances need to be
made for national culture is a critical first
step. National culture requires culture
sensitization on the parts of both the buyer
and the seller, as actions and messages
can very easily be misunderstood. As
for corporate culture, a more direct and
proactive intervention is required a clear
articulation of the desired to-be culture
is crucial. Clearly understanding the gaps
between the existing and desired culture
by both parties and an acceptance that the
culture change process, like most other
aspects associated with the transaction
in Japan, is an extended process (quick
turnarounds in a one to two-year period
are rare a four to five-year timeframe is
likely to be more realistic) is paramount for
the medium to long-term success of such
undertakings in Japan.
I n the Japanese
and Asian
contexts,
communication
is much more
about trust and
relationships.
It is critical to
get beyond the
stolid veneer so
as to dialogue
effectively about
intrinsic issues.
Data Source:
1 Froese, F. and Goeritz, L.,
Integration Management of
Western Acquisitons in Japan,
Asian Business & Management,
2007, 6.
Steve Kusumi
Partner, McLagan
Jaidev Murti
Regional Client Development Lead

Aon Strategic Advisors and
Transaction Solutions
Volume 1 Issue 1
17
Unlocking the Secrets

of a Best Employer
Established in 2001, Godrej Consumer Products Limited
(GCPL) is the largest home-grown home care and
personal care company in India. With a workforce of over
1,349 employees globally, the organization operates
across four regions Asia, Africa, Latin America and
Europe. Today, Godrej products touch the lives of over
600 million consumers every day.
GCPL has been adjudged a Best Employer for three
consecutive cycles. This indicates that in addition to
strong roots, GCPL is fundamentally doing things right
to ensure that their HR and business are aligned. In
our inaugural issue, we bring you secrets to effective
talent management in an interview with Nisaba Godrej,
Executive Director and Vivek Gambhir, Managing
Director, Godrej Consumer Products Limited.
18
Q. In your opinion, what is

consistently contributing to
making GCPL a Best Employer
year-on-year?
Vivek Gambhir: What has enabled
us to continue to make progress in
this journey is the proposition we
offer to maintain a distinctive edge.
There are three elements to this
great careers, great rewards and a
great work environment.
a lot of responsibility at a fairly
Godrej has been very

entrepreneurial in the approach
towards great careers. A lot of
people who have joined us have
seen that they can progress much
quicker with us than perhaps other
companies. People have been
given opportunities to stretch
themselves and have been given
At GCPL, we have backed career
young stage in their career. There

is a level of impatience seen in the
millennial generation; however, the
fact that people are progressing
well in their careers has been a
huge positive. This has allowed
us to see many people progress
quickly. For those who have started
at a young level, they have seen
the successes people can make.
progression with a lot of emphasis
on careers and talent development
individual career development
plans, career planning dialogues,
etc. This has led to a fairly high
level of satisfaction among the
employees as they see us take their
careers more seriously.
Volume 1 Issue 1
19
The second element, great rewards, is

pillared by a very transparent Economic
Value-Added (EVA) linked performance
remuneration model. The beauty of the
model is that it is one simple metric and it
aligns performance at both the individual
level and company level. So in a year where
people do really well, there is no limit to
the amount that someone can actually
make. At the same time, there is complete
visibility and clarity throughout the year
in terms of what the EVA index for the
company can be in that particular year. In
that sense, performance variation plays
an important role in the way we look at
compensation. To compliment this, we have
really upped the ante as far as intangible
rewards are concerned. Whether we look at
celebration or recognition, we have invested
significantly; a lot of our emphasis is on
really trying to create the intangible aspects
of rewards as well. This has been a change
we have made in terms of how our rewards
model works.
The third element is ensuring a great
work environment. One of the distinctive
features we have had in Godrej is the
strong value system. We nurture an
environment where there are high levels of
collaboration. The kind of entrepreneurism
we see has been another distinctive feature
we have had, which is a consequence of
people in stretched roles. While GCPL has
a very entrepreneurial culture, it makes
the work environment pleasant and far
more fun in some ways, while also ensuring
that the expected performance standards
are tough. So the bar gets raised for
performance delivery, but from what a lot
of people keep telling us, this is amongst
the best work environments they have ever
seen in any company.
These are the three big reasons why I feel
like GCPL has continued to make strides
in terms of sharpening value proposition.
We are trying to do things the Godrej
way instead of imitating a multinational
20
Nisaba Godrej
Executive Director,
Godrej Consumer
Products Limited
company. We are learning a lot from other

companies, but ultimately the approach to
the workplace has been around the Godrej
way, which is fairly unique.
Q. What is the role that the Godrej
Groups rich legacy and heritage has
played in contributing to making it a Best
Employer? Were there any cutting-edge
practices that were being followed in the
Godrej Group long before they became
the norm at the other workplaces?
Nisaba Godrej: I would say that it is more
about the Godrej legacy and value system
that has been built over the past 100 years.
It takes a lot of time to build this kind of
legacy and heritage. But more than
cutting-edge practices, the EVA process
we have been following for almost 10 years
now has been a key contributor to making
GCPL a Best Employer. From a peoples
standpoint, the values contribute largely to
why people feel more engaged with GCPL
and with the Godrej Group. We assume
that everyone has integrity and respect for
other people. The feedback we get from
our team is that the values are very deeply
embedded. If we talk to people and ask
them what keeps them really engaged,
a lot of them will not talk about EVA, but
they will tell you stories of when GCPL has
been with them in a difficult moment and
how other people in the organization have
treated them like family. I would say that is
what the Godrej legacy is, and is built over
100 years. While it is very easy to pull apart,
it takes a lot of time and commitment to
those values to build them up.
Q. How did GCPL develop a culture

of high performance? Is it a tough
tightrope to walk, between pleasing
employees and developing a high
performance culture?
Nisaba Godrej: I do not think it is a
tightrope. High performing people want
to be pushed; they want the bar raised all
the time; they want the rope to be tighter
and tighter so it becomes more challenging.
I personally do not think being tough on
people necessarily means that you make
them unhappy. Yes, someone who does
not have the ability and does not want
to perform, will not. The way to push
performance is always to be fair. If you are an
organization where someone gets promoted
because they are close friends with someone
in the organization, I think that is where you
are not pleasing people and are making them
unhappy. But if people understand why they
are getting pushed, and if you are quite open
about why selected people are getting a
higher position, I do not think it is an issue.
At Godrej, while we have been tough and
asked people to leave, we have also taken in
people who have not had the experience you
would think to be in that role. We see a lot of
potential in them and we take a bet, because
we believe they can stretch. If it does not
work out, we see to it then, but if we feel

they can really stretch, why not give them
a shot? In turn this has been increasingly
motivating for people as they feel that the
organization really believes in them.
Vivek Gambhir: To add to this, the strength
of the organization lies in the focus on
value creation and results delivery. GCPL
was one of the earliest companies in India
to implement the balance score card. If we
look at the goal sheet process and how we
cascade targets down, clarity around what
people targets are and what performance
standards are has always been very clear.
Where we have become tougher is in
terms of pushing our people to have a
dialogue to redefine the role of a leader in
the organization. We are working towards
an inspired leadership model. One of the
four vision elements is fostering an inspiring
place to work, where we are saying that
while it is expected that you have to deliver
results, this is no longer enough. Your
responsibility to the organization has to
go beyond results delivery. What is most
important is the kind of legacy created and
how the results are being delivered. It is
imperative to play a role in nurturing and
growing the next generation of leaders to
be able to grow at Godrej. The organization
The grand
score can be
anything, but
the true impact
of engagement
has to happen
on a daily basis
in terms of how
teams work
Volume 1 Issue 1
21
We are learning a lot

from other companies,
but ultimately the
approach to the
workplace has been
around the Godrej
way, which is fairly
unique.
has to be a place where leaders are energizing,

motivating and figuring out the intangible aspects
to motivate and develop the next generation of
leaders. To me, this is where we are getting tougher
such as the how to of results delivery and the role
people need to play to develop the next generation
of leaders. This is really the heart of Tough Love, our
talent strategy. The results delivery was always the
hallmark of the Godrej way of working.
Q. What are the people initiatives at Godrej that
are very popular with your employees and that
you believe have been very effective in achieving
their purpose?
Nisaba Godrej: There are a lot of them! It depends on
which areas we look at. If we look across leadership
development, we have programs called Leading Self
and Leading Others and Leading Business, which
are tied into our competencies. GCPL has built the
capabilities to do Leading Self and Leading Others
in-house. Initially, we realized one of our Senior
Leadership Members, who is currently heading
international HR for Godrej, had a deep interest in
building capability around Leading Self and Leading
Others, and he started experimenting by running these
courses with a few people from Godrej. He was so
good at this that we designed a role specifically around
this. This is one of the many examples of GCPL giving
people opportunities. A lot of focus has been put
on career development at GCPL that has shown us a
significant and sharp increase in the engagement score.
Vivek Gambhir: The people asset score card is a great
way to capture data analytically and feed it into the
goal sheet. Through this, people have a clear sense
of what they need to do to improve their leadership
quotient. There is a certain weightage on the goal
sheet that comes from the how of leadership.
22
The weightage goes up to 30% at the senior level.

This includes a 360 degree scorecard, the number
of people they are mentoring, scores in terms of
developing others and, very importantly, the in-tune
engagement. I think this is one process that we have
implemented extremely well, not just in terms of the
survey, but the kind of discussions it leads to in the
teams and the kind of dialogues we are having in
terms of how to improve. Ultimately, engagement is
at the team level. The grand score can be anything,
but the true impact of engagement has to happen on
a daily basis in terms of how teams work; the process
used to have discussions on engagement, monitoring,
etc. has been the biggest reason as to why the needle
has moved.
On the recruiting side, there has been a fair number of
innovations we have made. One is of course the Loud
Program. This has been a key differentiator that we
can see on campus. We have launched an innovative
fellows program where some of our brightest people
actually get to do an internal fellowship. This used to
be a one-year program, but it is a two-year program
now, simply because we want people to get deeper
into the issues they are working on. A lot of the work
they do is about making Godrej a better place. It is a
great platform for the people as recommendations get
implemented; campus hires get training and there is an
exposure to senior management.
To my mind, these are the ways in which we have
been distinctive and how we bring our value
proposition to life.
Q. Is there anything else that you have done that
has helped in building your external brand for
recruiting talent?
Vivek Gambhir: Our entire approach to recruiting
has been quite different. We changed the interview
process completely. While the Loud Program is one
part of it, before we implemented the Loud Program,
we went to campuses and we said to forget cover
letters. Instead, tell us about yourself in whatever way
you feel like for instance, sing a song, write a poem
or even send us a video! We want to know them as
a person. What we said was that we did not want
the standard group discussions or CGPAs. Once, we
put people into teams and told them that they were
creating bandanas for the Mumbai marathon and
asked them to work on it. We provided them with the
resources, asked them to design it, price it and market

it. For half an hour we watched how they worked
as a team. This process helped as we saw potential
candidates in action. We did many things differently
in our approach to campus visits, such as dressing in
casual attire for campus visit and interacting a lot more
with students. We ensured that our summer programs
were extremely top notch, so when people went back,
they became our biggest brand ambassadors.
Nisaba Godrej: To add, we decided to move away
from the race of interviewing candidates in half an
hour and continued to recruit throughout the summer.
We said that those few summer months will be strong
and focused for us to explore the potential of the
people. This has changed the kind of people we are
bringing in completely, because the onboarding fit
and transition into cultures is much smoother. We
gave Pre-Placement Offers (PPOs). Today, all our
recruitments happen through PPOs.
Vivek Gambhir: Also, the key to our external
branding is that we understand the basic nuance
of someone who will do well at Godrej. Things like
humility, passion, hunger to learn, self-awareness
all these are very important qualities along with
academic scores. I think we developed a much more
nuanced way of understanding fit and then trying to
map what we were good at, our strengths, with what
the individual had to bring.
Q. What is the way ahead for GCPL? How do you
intend to stay ahead of the curve and maintain
your position as an employer of choice?
Vivek Gambhir: If we look at the various phases of
progression, a lot of our focus three to four years
ago was on good team management. However,
the focus in the last couple of years has shifted to
talent development. We want people to be good
coaches and mentors. I think the next big phase in
our journey is what I call inspired leadership. Going
a step beyond developing and coaching people, we
really focus on how to energize and motivate people
and understand the intangible aspects of what drives
people. Thats the big journey we will take.
There are a couple of reasons behind this. To
begin with, customer experience is becoming very
important and it will be a differentiating factor
in the years to come. In a world where consumer
Vivek Gambhir
Managing Director,
Godrej Consumer
Products Limited
experience becomes very important, the way in

which our people experience the culture will also
need to fundamentally alter to meet the dynamic
change. This means that we need a far higher
degree of collaboration than ever before. Take for
example the fact that four or five years ago the senior
management team could define the strategy and
people would then be asked to execute it. In this
world of social media and technology, the world
is becoming so dynamic that strategies have to
be created on the fly. There is an increasing onus
on people to take more responsibility to drive the
business forward. Thirdly, taking a closer look at
the millennia generation, while money is important
for them, the purpose and the mission of the
organization as to what we do, why we do and how
that improves peoples lives has become far more
important than ever before. Godrejs rich legacy and
values prove to be a huge advantage here. But when
we start thinking about the broader purpose of why
we do certain things, it requires a totally different
approach to leadership. It is not just about succession
plans and career plans or development plans. While
those are a part of the course, leadership will have to
take a leap and really go after the intangible aspects
of energizing and motivating individuals. That is the
next big journey we continue to take. A correlation
of this is how we engage our employees how we
use social media and a rewards system that will need
change in a very different manner. While a lot of it
has been financial rewards-based, I think the way the
Godrej Group thinks about rewards and recognition
will undergo a fundamental transformation over the
next three to five years.
Volume 1 Issue 1
23
Measuring the Business

Impact of Employee
Selection Systems to
Improve Performance
Productivity within industries
has historically been perceived
as a function of efficient working
of machines and the capacity
of people working on them.
Industrial employees were merely
viewed as human capital, used for
the sole purpose of profitability.
However, we have now come
a long way, progressing
from Hawthorne Studies to
viewing employees in terms of
their capabilities and fit with
companies. Today, the leadership
of growing businesses views
organizational performance from
multiple lenses, with key focus on
employees capability and quality
of talent.
It is well-known that the capability
of human resources within an
organization has a direct impact
on the overall organization at
performance as the basic unit of
an organization, employees can
be the reason for its success or
failure. Most leaders believe that
high quality talent has the ability
to impact business performance
significantly. Identifying and
quantifying the key elements of
business performance will not
only allow for performance to be
analyzed effectively, but these
elements can also serve as crucial
data points for predicting future
performance. Once quantified,
24
they can also be used to identify

appropriate or high quality
candidates in the selection
process who would be aligned
closer to the organizational
strategy.
A deep analysis of the wide
pool of projects conducted
by Aon Hewitt was leveraged
to describe different ways to
demonstrate the impact of
employee selection system
on business. This enabled us
to elaborate on the relevant
elements or metrics that
impact business performance.
Furthermore,
Aon Hewitt has also attempted
to provide suitable indications on
how to select employees and how
to measure the effectiveness of
the selection process.
Drawing from our studies and
extensive data, the business
impact of employee performance
has been categorized into
3 metrics:
1. Financial Metrics Profitability
is a measurable and tangible
outcome of business
performance in terms of
financial units. This is typically a
lag indicator.
2. Non-Financial Quantitative
Metrics Engagement score
Volume 1 Issue 1
25
Much emphasis is
given to the selection
criteria of an employee
to make sure that he/
she is productive
enough to deliver
economic efficiency
is an example of a measurable and tangible predictor or

outcome of business performance in terms of non-financial
units. This is typically a lead or lag indicator.
3. Qualitative Metrics Rehirability is an example
of intangible predictor or outcome of business
performance in terms of non-financial units. This is
typically a lead or lag indicator.
The process of selection of competitive and high quality
talent remains largely intuitive till date. However, given
the gravity of its impact, we cannot leave this process to
intuition. This makes recruitment one of the most critical
business processes of an organization. For a better and
more accurate understanding of this, Aon Hewitt has
endeavored to substantiate the impact of recruitment
through an exhaustive analysis of key financial and
non-financial data. This study examines each metric to
trace its relevance to the larger organizational picture.
An organization that was studied for one of our key

global assignments was a global quick service restaurant
that was able to achieve an increase in revenues of
about USD 6 million. Our assignment with this client
mandated us to design customized pre-employment
assessments for the store teams. The study was
conducted for the global assignment out of North
America on a control group set up, wherein two groups
of recently hired employees one with low scores
on a pre-employment assessment and the other with
higher scores were studied over a period of time. The
results showed that the higher scoring candidates had
multi million-dollar increases in revenue as depicted
in the graph below, indicating that pre-employment
assessments help in making informed hiring decisions
thus driving better business results.
Employee Sales Per Hour
The key focus is to improve business results of an

organization rather than diminishing the stand-alone
selection cost. However, if high quality candidates are
recruited successfully, this results in significant cost
saving in the long run.
Financial Metrics
To most organizations, financial impact is a primary concern
and needs the most careful evaluation of the right
practices for desired results. Much emphasis is given to the
selection criteria of an employee to make sure that he/she is
productive enough to deliver economic efficiency. Analysis
of an employees impact on the economic productivity of
an organization needs data that can be drawn from multiple
business metrics tracked by the organization or could come
from the team or business units financial metrics to evaluate
the efficacy of the employee selection system.
26
Moreover, in similar assignments conducted in Aon US, it

was observed that hiring highly rated manager applicants
resulted in equating to 50% higher sales and a reduction
of over USD 5000 in labor costs.
This information can be used to suggest that an
employee who is an appropriate fit for the job can
definitely drive the revenue numbers in the favor of his/
her organization, inching it closer to its ultimate goal.
Non-Financial Metrics: Quantitative

and Qualitative
In addition to the financial metrics, the non- financial
metrics are also impacted by the selection systems of
an organization in the long run. To estimate a better
understanding of their impact on an organization, we have
mapped these non-financial metrics and translated them
into quantitative financial returns.
Reflecting upon Aon Hewitts recent projects, it was
found that a high scoring applicant (high score on a
job relevant assessment, therefore a better fit) during a
pre-assessment test was twice as productive as the low
scorers. Moreover, the low scorers were also twice as
vulnerable to on-the-job accidents as compared to the
high scorers as depicted in the graph below.
A selection systems effectiveness can be ascertained

in terms of non-financial qualitative metrics as well.
Qualitative metrics can be seen as early indicators of
organizational success. These qualitative aspects become
quantifiable in the long run, fetching impressive financial
results for the organization. We have been able to trace
the correlation of qualitative metrics to the employment
behaviors that support the organizational strategy
and that lead to effective financial results. A recent
Aon Hewitt assignment has shown that high scoring
candidates on assessments demonstrated a higher
potential to deliver effectively on business results. Other
studies also emphasized that high scorers were more
likely to stay on-the-job and like the work they do as
compared to the low scorers.
Employee Likelihood of Leaving
Employee Accident Rates
Another interesting insight drawn from these studies

was that highly qualified applicants were able to satisfy
customers better than their low scoring counterparts.
This, in turn led to more spending by the customers and
therefore, better financial profits for the organization.
Our analysis of other non-financial metrics has
highlighted that having employees who fit well into an
organizational culture have a lower tendency to leave
the organization, eventually leading to cost savings in
terms of reduced attrition. Therefore, an employment
assessment tool can also lead to reduced turnover.
Even though this does not relate directly to a financial
impact on an organization, it is significant in improving
productivity and reducing training investment. Hence
we have therefore attempted to determine its future
impact of reduced turnover in financial terms through
reduction of operating cost of training new hires post
attrition. Moreover, business impact of such metrics can
be evaluated at a business unit level.
A comparison across two assignments demonstrated a

greater likelihood of attrition for bottom performers on a
pre-employment assessment over the top performers, as
depicted in the graph above. Knowing in advance what
kind of talent fits best and performs well in an organization
helps with systematic selection of the most appropriate
candidates. Acquiring people with the right qualities is
eventually reflected in a magnified manner in the
balance sheet. Therefore, companies should use a
valid job- relevant assessment for effective selection of
candidates. Hiring quality talent is one of the most crucial
drivers of overall competence in any organization.
Ishita Bandyopadhyay
Senior Consultant,
Aon Hewitt
Volume 1 Issue 1
27
28
Leaders as Coaches: Developing

Talent with Compassion
The use of coaching as a leadership development
tool has seen a significant boost in the last few years.
According to Aon Hewitts Top Companies for Leaders
(TCFL) Study 2011, 87% of Top Companies in Asia Pacific
deployed internal or external coaching, as compared to
only 57% in 2009. While external coaches are popular
with senior managers, internal coaches are more
prevalent at the middle and junior management levels1.
Organizations use coaching to improve leadership
effectiveness and build a strong leadership pipeline.
Another benefit of coaching is to use it as a
self-development tool for the person who coaches.
Coaching with Compassion

Coaching with Compassion is defined as the process
of helping others in their intentional change process2.
This requires the coach to understand the aspirations
of others (know), care deeply for their success and
well-being (feel) and act to help them achieve their
goals (do). This is fundamentally different from
transactional coaching, where the primary focus is on
achieving organizational goals without sincere regard
for the person being coached.
When seen in this light, Coaching with Compassion is
important and comes with significant payoffs. It helps
the coach to overcome stress, which is inherent in most
leadership roles. Furthermore, compassionate coaching
enables the leaders to avoid self-preoccupation and
remain connected with people.
Figure 1: Internal versus External Coaching
Possible Limitations for Internal Coaching

Some things need to be considered before using
internal leaders as coaches. Firstly, leaders serving as
coaches need to be trained rigorously before being
entrusted with a coaching responsibility. Despite the
increase in popularity of coaching, training for internal
coaches is still not widespread, which is a serious
impediment to the effectiveness of internal coaches.
Secondly, internal coaches may often have multiple
interfaces with the person who is coached. Such a
situation, if not handled proactively and sensitively,
can raise doubts about the confidentiality of the
process. Lastly, there will always be executives for
whom external coaching will continue to be a preferred
choice, given factors such as their personality, role
or specific need for coaching. Organizations should
therefore, view internal and external coaching as
complementary development tools and not mutually
exclusive of one another3.
Leaders serving as
coaches need to be
trained rigorously
before being entrusted
with a coaching
responsibility.
Volume 1 Issue 1
29
It is time for all leaders to consider coaching as a

key part of their role. Even though this requires a
substantial investment of time, it would help them
to develop personal compassion. We know from
research that compassion at work produces various
desired outcomes such as reduced stress and increased
commitment at the individual level and lower turnover
at the organizational level4.
The implication for organizations is the need to train

leaders on coaching skills and sensitize them on the
importance of coaching with compassion. We believe
that an intersection of coaching with compassion
will go a long way towards addressing the current
leadership crisis.
Figure 2: Benefits of Coaching with Compassion
Data Source:
1 Aon Hewitt Top Companies for Leaders 2011 Study Insights and Best Practices - Asia Pacific, 2012
2 Boyatzis, Richard & McKee, Annie. 2005. Resonant Leadership. Harvard Business Review Press.
3 Frisch, M. (2001). The emerging role of the internal coach. Consulting Psychology Journal:
Practice and Research, 53(4).
4 Lilius, J. M., Worline, M. C., Dutton, J. E., Kanov, J., Frost, P. J., & Maitlis, S. (2003, August). What
good is compassion at work? Paper presented at the meeting of the Academy of Management
Meetings. Seattle, WA
Eklavya Sinha
Learning and Development Manager,

(Asia Pacific), Aon Hewitt
30
Aon Hewitt
Selection & Assessment
Find the best-fit for

your organization
with ease
Aon Hewitts ADEPT-15 Adaptive Employee Personality Test

Ideal for pre-employment selection, promotion and development

Measures candidates on 15 traits critical to workplace performance
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Can be taken on any smart device
Write to vishal.singh.6@aonhewitt.com
or visit us at www.aon.com/india
Engaging Employees
for Change
Q: What apprehensions hold back employees
from accepting change?
@Being HR Fear of the unknown, whats in it for
me, own comfort zone, more responsibilities, may
hold back employees from accepting change.
@Vivekparanjpe Logic for change has to
be explained. Need for change must be felt.
Conviction of leaders has to be seen.
Q: How can organizations

communicate for employee
buy-in?
@Mayankkrishna Be
approachable. Leave the
comforts of ivory tower and meet
employees at every level. Become
friend, philosopher and guide.
Q: How can organizations make change stick?

@Chans1965 Try Feviquick. Even Fishy Things Stick.
@BeingHR Reinforce the change by sharing
progress, regular updates and conducting a dip stick
survey, sharing finding, feedback.
@Sundertrg The 'sprinkling' over a period of time
approach works better than one time 'downpour'
approach, when it comes to stickiness.
32
Q: In what ways can leaders effectively

address employees emotional reactions
to change?
@Eklavyasinha By allowing them space. No
one goes from 'hearing about change' to
'committing to change' overnight!
@Pranabchakrab Creating communities
around the change initiative can help
building the conversations at a faster pace.
Q: How can employees readiness for change

be gauged before a culture change initiative is
rolled out?
@Sundertrg Checking Leadership readiness >
checking employee readiness while driving
change programs #chrdx.
@JaganPalukri Focus on creating the need first
and then the readiness will automatically follow.
Volume 1 Issue 1
33
Assessing the Long-term

Viability and Sustainability
of Family-led Businesses
Entrepreneurs and families running businesses
uniformly highlight bandwidth management and
family governance as a key driver to long-term
sustainable growth. Since family-led businesses need
to leverage their time and resources on key aspects
of the strategy and long-term viability, it is crucial for
businesses to:
#1 Align strategy, leadership and organizational
resource management for sustainable growth
#2 Lead organizational growth by enhancing the
bandwidth of senior leadership and family. Induct the
right people in the right roles with right competence
across the organization
#3 Establish robust family governance processes that
ensure induction of right family talent, based on
business needs. The board of directors must proactively
establish regulatory and legal compliance. This will also
ensure that they remain globally competitive and are
able to maximize shareholder value
#4 Ensure a systematic program for induction of
family members, imbibing family values for sustaining
longevity of the enterprise purpose
It is imperative for organizations to evolve

continuously in the ambiguous and volatile market.
While in the last century, transformation challenges
presented themselves over two generations, todays
marketplace is evidently different. The volatility,
ambiguity and complexity of the economic forces
drive multiple transformations within the one
generation itself, which have a direct impact on
growth and longevity. Entrepreneurs and family-led
businesses therefore, continuously need to fight a
battle on three fronts (see Figure 1):
1. Sustainability in the competing and volatile
market place. Sustaining with the products and
services in the current market place by best-in-
34
class processes and systems which lead to uniform

customer experience
2. Renewing a focus on next generation products and
services in the organization, which would ensure
enterprise viability in the future
3. Being agile Despite the best sustain and
renew strategies there are always forces that
bring novelty and newness in any product and
service across markets, economies and the globe
After analyzing more than 100 family-led businesses
in the last three years, we have found that in order
to work with these challenges, entrepreneurs need
to free their bandwidth and focus on renewing
their strategies for the future and being agile in
order to respond to the change in market forces.
Therefore, they need to develop second line talent
that is responsible for strategy implementation and
is completely accountable for strategies related
to sustainability. As most of the promoters in the
industry have to focus on direct operational issues,
their bandwidth to manage growth-led strategies
focuses only on expansion, rather than also focusing
on overall capability enhancement strategies that
ensure longevity and sustainability of the organization.
Organizations remain successful over a short cycle with
products and services relevant to the market place
but lose out over 10-15 years as better products and
services replace them in the market. This is a dilemma
all family-led businesses struggle with. Therefore,
the earlier promoters make themselves irrelevant to
operations, the better it is for the organization.
So what do family-led organizations do to ensure
long-term viability and sustainability? While there are
multiple ways of managing enterprises, enterprises
need to manage their transitions well.
Entrepreneurs, like all other people, must focus on
what they do best Entrepreneurship, which is
Volume 1 Issue 1
35
Figure 1: Responding to Business Continuity while

Preserving Value and Beliefs is a Key Leadership
and Entrepreneurial Challenge
Renewability
Ensure continuous
organization renewal
and evolution of
products and service
in the markets and segments in which they

operate.
This essentially requires family-led businesses and
entrepreneur-driven firms to work on establishing
strategies as soon as they have established
sustenance of their firms and established their
original ideas in the market. This can be achieved
when organizations:
1. Establish overarching and far-reaching long-term
vision and values architecture
Agility
Respond to
change and
developments
in the external
markets
Sustainability
Sustain current
products and
services for
continuous topline
and bottomline growth
about renewal and agility linked strategies, and

they should ensure that there is a senior leadership
team that is aligned to the long-term vision of
growth. Sustain and operational strategies must
be driven by empowered management teams that
focus on growth and sustenance of the enterprise
36
2. Establish family governance and charters that take care

of wealth distribution systems. Also, clear articulation
of criterion for family members entering the business
The establishment of strategies pertaining to

long-term vision and non-negotiable value systems
acts as a guiding light. To drive the organization,
this must focus on an alignment of the three
forces sustainability, renewability and agility.
These three forces must function as a mutually
intertwined and interdependent system, ensuring
that there is synergy between all of them. Execution
is required for the success of any enterprise, and
if any of the forces is looked at in isolation, the
chances of its success are limited.
Figure 2: Ingredients of Sustainability and Enterprise Longevity
As a next step, it is important to align organizational

strategies that would ensure continuous enterprise
success. In doing so, the organization needs seven
strategies that would ensure operational excellence and
a continuous renew and agile focus (Figure 2).
1. Ecosystem and Vision Alignment
Align the organizations vision to the ecosystem and
social-economic scenario of markets and society. This
requires the vision to be socially and economicallyrelevant, as both play an important role in ensuring
longevity of the enterprise.
a close-knit leadership team within the family. For

entrepreneurs, commitment to the vision and long-term
success rather than short-term gains and management of
resources. Leadership commitment is a crucial strategic
requirement, as it is a key driver of operational success of
any organizational strategies.
4. Relentless Renewal Focus
Renewal is important to evolution, and it is equally
critical for the enterprise. As we focus on renewability,
organizations have to focus continuously on next
generation products and services. This requires people
2. Vision and Strategy Alignment

Align market and product led strategies to the vision.
While short-term requirements may desire a deviation
at times, a continuous focus on vision is the key to
longevity. For enterprise success, all agility linked
strategies also need to be aligned to the vision and
ecosystem.
in the organization to be continuously and positively
3. Leadership Commitment
For family-led businesses, commitment to having
Enterprises may easily slip into silos, which are the
dissatisfied with the current products and services. This

is a dilemma, as organizations thrive on repeatability
of tasks and on employee satisfaction in sustaining the
tasks. However, dissatisfaction is essential to growth, and
hunger in the cadres is vital to renewal focus.
5. Culture of Innovation, Collaboration and Trust
single most counter-productive system in managing
Volume 1 Issue 1
37
Peoples actions
determine enterprise
success, and an
engaged workforce is
crucial for this success.
organizations, as they harm both

the sustainability and agility of the
organization. This is highly relevant in a
family-led business as the growth requires
buying talent from outside as the internal
talent pool is not large enough to pick
up new roles. Entrepreneurs and leaders
continuously have to focus on ensuring
collaboration, trust and innovation
supported by sufficient mechanisms to
reward these behaviors.
6. Middle Management Capability
to Lead
Middle management is accountable for
supervising and ensuring execution.
However, in the volatile and ambiguous
environment in which todays enterprises
live, the most important aspects that
the middle management is responsible
for begins with taking accountability for
implementing change. It is important for
the them to be able to see the big picture
and be able to coach others to achieve
the vision.
Their role is not command and control

as is usually perceived. It is extremely
critical that they are always completely
clued in to the big picture and implement
change relentlessly.
7. Engaged and Striving Workforce
Peoples actions determine enterprise
success and an engaged workforce is
crucial for this success. Aon Hewitts
engagement studies suggest a direct and
positive correlation between the two. It is
critical to focus continuously on employee
engagement as a critical strategic pillar to
ensuring high commitment by the people
across organization levels.
In a nutshell, family and entrepreneurled businesses must focus on capability
enhancement strategies early enough
to ensure longevity. In a rapid growth
phase of the organizations lifecycle,
it is fundamentally difficult to create
capabilities that result in growth
slowdown and stagnation.
Lokesh Nigam
38
Aon Hewitt
Aon Hewitt Learning Center
Certify your HR with

Aon Hewitt Learning
Center
Aon Hewitt Learning Center combines world-class HR consulting expertise with
leading- edge capability development programs to design, deliver, manage and conduct
learning labs and certificate courses for HR professionals and business managers in the areas
of business skills, HR technical expertise, business partnership and personal effectiveness.
Open Certificate Courses: Behavioral Event Interviewing, Certified Rewards Professional,
Certified Human Resource Professional.
Reach out to Virat Vaid at aonahlc@aonhewitt.com or

Call us at +91 9650944899 to participate, nominate or
know more about Aon Hewitt Learning Center.
About Aon
Aon plc (NYSE:AON) is the leading global provider
of risk management, insurance and reinsurance
brokerage, and human resources solutions and
outsourcing services. Through its more than 66,000
colleagues worldwide, Aon unites to empower
results for clients in over 120 countries via
innovative and effective risk and people solutions
and through industry-leading global resources and
technical expertise. Aon has been named
repeatedly as the worlds best broker, best
insurance intermediary, best reinsurance
intermediary, best captives manager, and best
employee benefits consulting firm by multiple
industry sources. Visit aon.com/india for more
information on Aon and aon.com/
manchesterunited to learn about Aons global
partnership with Manchester United.
Aon plc 2014. All rights reserved.
The information contained herein and the statements expressed
are of a general nature and are not intended to address the
circumstances of any particular individual or entity. Although we
endeavor to provide accurate and timely information and use
sources we consider reliable, there can be no guarantee that such
information is accurate as of the date it is received or that it will
continue to be accurate in the future. No one should act on such
information without appropriate professional advice after a thorough
examination of the particular situation.
aon.com/india

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Aon Hewitt

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