TIE Mumbai chapter organised a meeting with Mr Harsh Mariwala, CMD of Marico Limited, earlier this week, This was a small closed group interaction, with the objective of understanding challenges that Marico has experienced during its journey (from being a family managed company to one of India’s leading FMCG companies) and how he overcame those challenges.
Here are some key take-aways from the meeting that I would like to share :
( a) In early stage of the company ( at that time company was already about 50cr, today it is probably close to 2500 cr) he created a vision document. Ran into quite a few pages. Got the entire top management team of about 40 people involved in creating and discussing the same. Then the management team members took the vision document to their respective teams, explained them and got their inputs. This was again percolated upwards. Final vision document was crystallised, translated into multiple languages (for convenience of workers, sales force etc) and then circulated.
Take away
* Vision can’t be that of one person. It has to be that of a group
* Even if everyone can’t contribute to the document, keep them present during the meeting, gives them a sense of ownership and participation
* Not everyone may contribute to something, but keeping them in the loop, gives them a sense of ownership. Involvement leads to commitment
* One has to invest substantial time in building a vision..this is then the lighthouse
(b) Based on the vision document, company identified key values. All stakeholders were asked to rate the company on key values. First time around rating was 2.8 out of 4.
Process of getting the company’s key values rated by stakeholders continue
(c) From day one work atmosphere is informal. Open cubicles, glass cabins, no ties. Everyone addresses everyone by first name
(d) Dissent is encouraged..formal processes to allow dissent to be voiced
(e) Job rotation : Current CMO was formally Head of HR; current HR person is a CA by profession. However this should be done only when the organisation has a certain base. Else it could mis fire resulting in disastrous consequences
(f) When HUL launched Nihar and threated Marico’s cash cow brand “Parachute”, Marico created a “war room” atmosphere in the company. Actually created a video with background sound” Parachute, Parachute, tujhko meri kasam, tere kadmon mein Nihar to chadhe jayenge:..played to the tune of “Ae wata, Ae watan, tujhko meri kasam….”. Harsh showed us the video. It gave me goosebumps seeing the video..great tool to inspire the team. This was just one thing but across board this was the kind of approach that Marico followed…. Finally HUL (who at one time wanted to buy Parachute, sold out NIhar to Marico and exited the coconut oil business)
(g) Harsh’s learning from Nihar experience : Single minded focus can overcome brute force. People down the line are the ones who really win the battle for you
(h) Trust your people. Start with “Trust”. Dont assume, do not mistrust unless you have evidence for the same. When dealing with your team, operate from a position of trust.
(g) When Marico reached 1000 cr, organised a get-together where ex-employees were also called. This did great for the motivation of the current employees (realised they would always be treated as part of Marico family, even after they quit the job)
(i) When you take on something, put your best resources in the project and have no “escape” button. When Marico launched ERP, they created a team of their best people, and put them at a separate location. This teams only job was to work on ERP. Project was completed in record 9 months without any glitches. Most companies would load the ERP work to the current team members and the already stretched HOD becomes the cause of ERP failure
(j) While doing recruitment, first recruit the right search firm. Dont just have any firm throwing resumes at you. Dont work with anybody and everybody. Your search firm is like your partner.
(k) While interviewing people, recognise that it is not a one way a traffic. You need him and he needs you. Hence go with that kind of mind set. Not with a you-have-come-to-me-for-a-job kind of mindset. If you find a good person, invest in him during the interview process. Sometimes he may come back and join you later. Hence treat every interview seriously.
(l) As an organisation grows, some people are not able to grow the organisation. It is OK to let them go
(m) Innovation is not just in the market place (new product, new packaging). Innovation needs to happen inhouse also. Eg at Marico, employees can self-authorise expenses , dont need anyone’s approval (if it is within some parameters or norms). Random audit is done to be sure process not being abused.