Tata Leadership Practices

1. Tata Leadership Practices How do we create leaders who have a global perspective, deliver sustained performance and live the Tata Values?

2. Contents • Tata Values • Globalization and the Business Imperatives • Tata Leadership Practices • TLPs & Leadership Talent • Using TLPs Context Concept Using TLPs

3. The Foundation “Leadership With Trust” The Group’s growth and businesses continue to be driven by its five core values Integrity Unity Excellence Responsibility Understanding

4. Tata Values Integrity “We must conduct our business fairly, with honesty and transparency. Everything we do must stand the test of public scrutiny.” Understanding “We must be caring, show respect, compassion and humanity for our colleagues and customers around the world, and always work for the benefit of the communities we serve” Excellence “We must constantly strive to achieve the highest possible standards in our day-to-day work and in the quality of the goods and services we provide.” Unity “We must work cohesively with our colleagues across the Group & with our customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation.” Responsibility “We must continue to be responsible, sensitive to the countries, communities and environments in which we work, always ensuring that what comes from the people goes back to the people many times over.”

5. The Group Today: Business Focus • Growth and Leadership through Global Competitiveness • Value Creating Acquisitions • Non-Cyclical New Businesses • Domestic Dominance • Global Competitiveness Context Concept Using TLPs

6. Our Key Need • How do we create Leaders • who have a global perspective • deliver sustained performance • live the Tata Values?

7. Increasing the Group’s Leadership Bench • Delivery of consistent high performance across • Geographies • Time • Assignments • How the high performance is delivered : What behaviour will underpin sustained performance? These behaviours are described through the Tata Leadership Practices.

8. Leadership Behavior TLPs “VISIBLE” More assessable through observation What is demonstrated consistently in day to day activities. What people around the leaders “see”. Behavior Skills Knowledge “WHAT IS UNDERLYING” Difficult to assess Personality Motives Attributes Attitude Traits Values

9. The Tata Leadership Practices • A set of behaviors that is required for superior performance in the Tata context • Excellent performers on-the-job demonstrate these behaviors much more consistently than average or poor performers. • TLPs provide us with a way to define in behavioral (output) terms what we need to do to produce the results the organization desires and do so in a way that lives our values and builds our culture. Context Concept Using TLPs

10. Tata Leadership Practices Three Clusters People Business Results

11. Tata Leadership Practices People Fourteen Success Factors Takes Ownership People Development Interpersonal effectiveness Building Effective Teams Withstanding Pressure Results Business Managing Vision & Purpose Strategic Capability Dealing with Ambiguity Business Acumen Functional Excellence Drive for Results Customer Focus Timely Decision making Innovation Management

12. Each success factor of the TLPs is translated across management levels

13. How TLPs help to chart Potential An example of a manager at Middle Management level having potential for senior management level

15. Tata Values and TLPs Integrity We must conduct our business fairly, with honesty and transparency. Everything we do must stand the test of public scrutiny • Accepting responsibility for the consequences of your decisions and actions (25) • Following through on commitments that you have made (26) • Confronting conflict situations in an honest and direct manner (27) • Consistently demonstrating high levels of integrity in your daily contacts with others (28) • Going to bat for your direct reports when you feel they are right (37) • Being willing to speak out on issues even when your view is unpopular (40) Understanding We must be caring, show respect, compassion and humanity for our colleagues and customers around the world and always work for the benefit of India • Spending time with customers or those who have direct contact with customers (8) • Actively looking for ways to increase value and satisfaction for the customer (9) • Having a clear idea of what works in the market place (11) • Understanding the strategic implications of decisions (17) • Managing change in a thoughtful and well planned rather than reactive manner (19) • Being genuinely concerned about people development (29) • Working with others to continuously improve their personal performance (33)

16. Tata Values and TLPs • Demonstrating extraordinary levels of energy and effort (1) • Establishing high performance goals and standards (3) • Making decisions based on what is best for the customer (7) • Rewarding people for trying new things rather than punishing them for mistakes (10) • Demonstrating awareness of changing industry and market conditions (22) • Keeping up to date with leading edge developments in your field or function (23) • Demonstrating a high level of skill in your functional area (24) • Challenging people to stretch themselves (30) Excellence We must constantly strive to achieve the highest possible standards in our day-to-day work and in the quality of the goods and services we provide. • Actively looking for ways to increase value and satisfaction for the customers (9) • Establishing a climate of openness and trust -35 • Establishing team or group goals as well as individual goals (42) • Demonstrating a balance between the individual and the team - is a good team player (43) • Encouraging people to collaborate with others in the Tata Group (44) • Encouraging an open exchange of ideas and different points of view. (46) Unity We must work cohesively with our colleagues across the Group & with our customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation.

17. Tata Values and TLPs • Solving immediate problems without sacrificing long-term results (5) • Focusing your time and energy on the most important priorities (6) • Communicating an exciting vision for of the future for the business (13) • Helping people understand how their jobs contribute to the overall success of the business (15) • Giving people candid, even-handed feedback on how they are doing on their jobs (31) • Being supportive and helpful in your daily contacts with others (32) • Being open and candid with people rather than being vague or indirect (38) • Handling pressure smoothly and effectively (39) Responsibility We must continue to be responsible, sensitive to the countries, communities and environments in which we work, always ensuring that what comes from the people goes back to the people many times over.”

19. When values and principles are applied consistently, they become behavioral habits and this enables the fundamental transformation of people, of relationships and of organizations.

20. How TLPs Work TLPs Knowledge Understands market pricing dynamics Skill How to set up new product introduction process TLP Demonstration (#11) Has a clear idea of what works in the marketplace TLP Demonstration (#24) Demonstrates a high level of skill in his/ her functional area TLP Demonstration (#28) Consistently demonstrates high levels of integrity in daily contact with others Motives/ Attitude Integrity – wants to work in an honest and direct manner

21. Using TLPs • Performance Management • Potential Assessment • Leadership Development Planning Context Concept Using TLPs

22. TLPs: Manager’s Radar Chart 3: Strength 2: Neither strength nor OFI 1: OFI

23. Leadership Development by Level People Business Results Top Management Middle Management Frontline Management

24. Benefits of TLPs TLPs provide a "road map" for the range of behaviors that produce excellent performance. It helps: • Drive Tata Values • Companies "raise the bar" of performance expectations; • Teams and individuals align their behavior with key organizational strategies; and • Each employee understands how to achieve expected performance standards