Note On Leadership

Larsen & Toubro Limited
Corporate HR & Personnel Dept.

Feb 08 Page 1 of 16
Career paths for Leadership Capital The L&T way!

The Genesis

The most important resource that builds and transforms any organization is its human
resource. Charles Schwab has rightly mentioned All successful employers are stalking
men who will do the unusual, men who think, men who attract attention by performing
more than is expected of them.

Taking a cue from the above statement, career management at Larsen & Toubro Limited
does not refer to just securing upward career possibilities, but to recruiting, assessing and
developing individual talents, to the mutual benefit of both the corporation and the
employee.

Larsen & Toubro Limited is among the top engineering companies of India, aspiring to
be an Indian multinational. Owing to the nature of our businesses, we need talented
people to take up leadership positions in management as well as technology.

As an organisation, we are also sensitive to the aspirations of our employees. To address
these needs, we have developed a unique leadership module. The module offers two sets
of leadership role paths- one for the would-be managers (MLPs), and another for
technologists (TLPs) who prefer to remain close to technology throughout their careers.

Technologists to build
knowledge base

Business managers to
make commercial use
of that knowledge base

Balanced Growth
Leveraging Technological Edge
Strong Technological
Base
Enhanced Business
Acumen
Technology Leadership
Program (TLP)
Management Leadership
Program (MLP)
Supervisory Leadership
Program (SLP)
Leadership Module
Feb 08 Page 2 of 16
The leadership programs are based on the type of roles the Leaders will be expected to
perform:

Strategic: Management/ Business & Technology Leadership Programmes
Operational: Supervisory Leadership Programme

Leadership Roles

We offer our high potential employees who have been identified for strategic roles
alternate career paths aimed at business leadership positions (Management Leadership
Programme) or related to cutting edge of technology (Technology Leadership
Programme). The employees are groomed and developed along these career progression
paths.

Management Leaders are expected to seek and grow business opportunities in line with
our organisational competencies and capabilities. Technology Leaders will be involved in
core Technology areas and enhance the performance of our businesses through the route
of technology.

Employees who are part of the Supervisory Leadership Programme are expected to gain
and deploy in-depth knowledge and effect operational efficacies in their respective work
areas. The Supervisory Leadership Programme will yield some employees who will grow
into either Management Leaders or Technology Leaders.

Selection Criteria

The primary screening criteria for the leadership identification process is the FAIR rating.
The employees who are nominated to the process are high performing individuals and the
organisation recognises their contribution. The leadership process gives them an
opportunity to understand their strengths and areas for improvement in the competencies
critical for a leader at their level of management.

L&Ts Leadership Programmes

Management Leadership Programme

Management Leadership Programme (MLP) is an organization-wide intervention to
identify, groom and retain a pool of high potential employees, from which dynamic
leaders can be chosen for fulfilling business needs. The leadership talent is identified
using a competency measurement tool i.e. Assessment Centres based on real business
scenario simulations. The program encompasses grooming high potential talent through
coaching initiatives and training programmes designed to strengthen competencies.

Tier 3 & Tier 2 Band
Assessment Centre
Business Leader Interview
Tier 1 & Executive Band
Written Tests
Business Leader Interview
The Assessment Process for a Management Leader
Feb 08 Page 3 of 16

1. Assessment Centres:
Assessment Centre is a multi-rater, multi-tool process of measuring potential.
Spread across 2-3 days, the centres provide an off-line opportunity to demonstrate
competence and they establish a platform to screen the nominees across the
benchmarked competencies. Latent leadership talent is screened and recognised.

2. Business Leader Interview with a senior panel:
The assessment centres are followed by Competency Based Interviews with a
senior panel. The interactions provide a basis to re-confirm the results so
generated through the assessment process.

3. Feedback:
Feedback completes the entire assessment loop and forms a significant part of the
MLP Identification process.

Technology Leadership Programme

The Technology Leadership Programme (TLP) is an initiative directed towards
identifying and developing our employees who have a strong desire to enhance business
performance through the route of technology.

L&T operates in the areas where leadership in technology translates to greater market
share, higher revenue and sustained profits. As we continue to move up the value chain in
our chosen businesses, the future business scenario for L&T will constitute a larger
component of high technology areas.

We have identified the areas which have high growth potential and are core to our
business strategy. TLP aims to identify, develop and retain employees with domain
expertise in these areas and knowledge about the latest development in related fields. In
addition to this, the TLP process will also assess relevant leadership competencies.

1. Technology Assessment Centre:
This assessment centre focuses on evaluating the leadership competencies as
applicable to the Technology Leader. The TLP assessment centre is similar to the
MLP centre in terms of the tools used. The tools include group exercise,
presentation, role-play and interview.

2. Tech Talk!
As a part of the assessment process, we have a technical presentation termed as
Tech Talk, to assess the candidates competencies related to Technology. Each
Tier 3 & 2 Band
Technology Assessment Centre
Technical Interview
(Tech Talk!)
Technology Leader Interview
Tier 1 & Executive Band
Written Tests
Technical Interview
(Tech Talk!)
Technology Leader Interview
The Assessment Process for a Technology Leader
Feb 08 Page 4 of 16
candidate is asked to make a presentation on his/her role in the technology
development in his/her department. This panel probes the candidate on specific
competencies and assesses the depth and breadth of technical knowledge. It
consists of senior persons from different ODs and also eminent personalities from
academia and reputed institutes.

3. Technology Leadership Interviews:
The TLP assessment concludes with the Technology Leadership Interview by a
two-member panel consisting of persons from a different Operating Division. The
candidates at Tier 3 & 2 make a brief presentation to the panel focussing primarily
on leveraging Technology for gaining competitive advantage.

Supervisory Leadership Programme

The Supervisory Leadership Programme (SLP) process seeks to identify and groom
employees who joined in Supervisory cadre and show exemplary performance and
potential and provide them scope for faster growth and focused development

As they rise into Executive positions they are given an opportunity to participate in the
MLP and TLP processes.

Assessment Process for a Supervisory Leader

1. Written Tests:
This assessment focuses on evaluating the leadership competencies as applicable
to a Supervisory Leader. The tools include ability test, psychometric tests etc.

2. Functional Interviews:
The SLP assessment includes a Functional Knowledge Interview by a three-
member panel, which focuses on depth and breadth of knowledge in the
functional area.

3. Supervisory Leadership Interviews:
The SLP assessment concludes with the Supervisory Leadership Interview by a
two-member panel consisting of persons from different businesses.
Supervisory Band
Written Tests
Functional & Leadership Interview
The Assessment Process
Feb 08 Page 5 of 16

Development of Leadership Talent

Coaching and Training
While an assessment process and competency based interviews help identify the talent,
Coaching and Training are initiatives that aim at "grooming" and "nurturing" the talent.
They are identified as subsets of the entire Career Management Process.

After the Leadership competencies were identified for each level, an attempt was made to
determine which of these competencies could be developed through training and which
ones through coaching. Once this had been ascertained, road maps were created to
implement Coaching and Training as part of the development plan.

1. The Coaching Initiative

The greatest good you can do for another is not just to share your riches,
but to reveal to them their own -Benjamin Disraeli

Coaching is a powerful one-to-one relationship that provides learning and
support. Recent studies show executive coaching to be the most effective means
for achieving sustainable growth, change and development in the individual,
group and organisations.

The Coach is usually the immediate/ next superior of the employee. The Coach
along with the employee identifies 2 competencies that the employee will focus
on for improvement in that year. It is recommended that the employee choose one
competency where he/she is strong and the other competency where he/she may
be below the benchmark. This plan for improvement is to be captured in the
Performance Oriented Development Plan (PODP) form.

2. Training
Training programs have been put in place to address competency development at
various levels.

The training programs have been customised taking data from the assessment
centre reports and from interactions with domain experts in the area. Faculty from
reputed institutes conducts these programs on a regular basis. Programmes like
Leading high performance teams, Resource Optimization, Risk
Management, etc. have been put together to aid competency development.

Training provides the theoretical support to an individual's development whereas
Coaching provides the more practical and personal support. The combination of both
creates a powerful foundation stone for future development and potential identification.

While the organisation provides avenues for development, it is also up to each individual
employee to undertake assessments in the spirit of self development and take ownership
for development of his/her competencies and skills to enable growth.

Feb 08 Page 6 of 16

Initiatives to augment the Leadership Pool

Management Trainee Scheme (MTS)

The Management Trainee Scheme (MTS) is an endeavour intended to:
acquire the best of external talent at the entry level
to identify talent at the entry level (GETs/PGETs) existing within the organisation
who can be groomed to take on leadership roles in the future.

It aims at augmenting the leadership pool by inducting fresh talent into the organisation.
An employee who has been inducted into the MTS gets an opportunity to be part of the
MLP.

Lateral Recruitment

We rejuvenate and replenish our leadership pool through lateral recruitment. High
potential talent matching our requirements is put through assessment centres and business
or technology leadership interviews before they are taken into the leadership
programmes.

Accolades

We are using instruments that have been internationally validated besides taking the
services of reputed members of academia and industry. Our approach to leadership
assessment is unique and unparalleled as a benchmark HR practice.

L&Ts Leadership practices were ranked 6th in the study conducted by Hewitt Associates
on The Top Companies for Leaders 2003 -- Asia Pacific. Companies from seven markets
in Asia Pacific participated in the 2003 study.

Feb 08 Page 7 of 16

Annexure: Competency List

Competencies for Supervisory Leadership Program

SLP Competencies

1. Adaptability
Is open and adapts to different situations quickly. Accepts change willingly.

2. Analytical Ability
Is able to identify and diagnose key issues, seek relevant information, draw accurate
conclusions / inferences in order to find the appropriate solution

3. Communication
Listens, understands and interprets accurately. Conveys information (technical / functional)
and ideas in a clear, structured and credible manner.

4. Customer Service Orientation
Proactively understands customer (internal / external) requirements and seeks to exceed
customer expectations. Is highly quality conscious. Builds beneficial customer relationships.

5. Functional Knowledge
Has a good grasp of his job and related processes. Can evaluate job related information for its
practical application.

6. Improvement Orientation
Seeks, suggests and implements new ideas for continuous improvements. Can think of
innovative (out of box), multiple options.

7. Interpersonal Skills
Involves others, interacts effectively and is a committed team member. Understands others
and is able to deal with them effectively. Shares information and ideas and seeks to resolve
conflicts.

8. Planning & Execution
Works in an organized and systematic manner. Anticipates constraints. Prioritizes and
effectively utilizes resources and achieves end results.

9. Positive Attitude
Is positive in his outlook towards work and the environment in general. Enthusiastic in
accepting new initiatives / challenges and demonstrates a feeling of optimism and energy.

10. Self-Empowerment
Is confident, decisive and action-oriented. Assumes ownership and responsibility for the job.
Is committed, resilient and energetic and has a clear sense of what needs to be done.

Feb 08 Page 8 of 16

Competencies for Management Trainee Scheme

1. Conveying Thoughts and Ideas Clearly
Conveys information and ideas in a clear, structured and impactful manner.

2. Planning & Organising
Identifies and prioritises resources, anticipates constraints, work scheduling and mobilizes
resources so as to achieve the targets/goals. Is personally organized and systematic.

3. Analytical Skills
Overcomes problems and obstacles through systematic analysis and balanced decision-
making. Seeks all relevant information and finds the optimal solution.

Is an effective and committed team member. Understands other people and relates effectively
to them. Shares information and ideas and seeks to resolve conflicts.

5. Action Orientation
Confident, decisive and action-oriented. Assumes ownership and responsibility for his job. Is
committed and energetic and has a clear sense of what needs to be done.

6. Creativity
Is open and adaptable. Looks at situations creatively and finds new solutions.
Feb 08 Page 9 of 16

Competencies for Management Leadership Program

MLP : Executive Level Competencies

1. Communication
Conveys information and ideas in a clear, structured, interesting and credible manner, both
orally and in writing. Accurately interprets and simplifies business information. Extracts
meaning and makes recommendations.

2. Customer Focus
Maintains frequent customer contact, understands customer requirements and defends their
interests within L&T. Seeks to exceed customer expectations.

Works in an organised and systematic manner. Identifies and prioritises resources.
Anticipates constraints, schedules work and mobilises and monitors resources to achieve
targets.

4. Problem Solving
making. Seeks all relevant information, draws accurate conclusions and inferences and finds
the optimal solution.

Has a good grasp of his subject and related processes. Keeps abreast of changes and
developments and can evaluate information for its practical application.

Involves others, interacts effectively and is a committed team member. Understands other
people and is able to utilise them effectively. Shares information and ideas and seeks to
resolve conflicts.

7. Self Empowerment
Is confident, decisive and action-oriented. Assumes ownership and responsibility for the job.
Is committed, resilient and energetic and has a clear sense of what needs to be done.

8. Flexibility
Is open, adaptable and willing to change. Learns from experiences.

9. Creativity
Can think of innovative, multiple options, suggest new ideas for improvements.

MLP: Tier 1 Competencies

1. Business Communication
Produces clear and effective documentation and communication. Is able to make accurate
interpretations of complex material.

Involves others, interacts effectively and is a committed team member. Understands other
people and is able to utilise them effectively. Shares information and ideas and seeks to
resolve conflicts.

Feb 08 Page 10 of 16
3. Customer Focus
Builds effective relationships with the internal or external client and acts to ensure that all
stages of the transaction are smooth and efficient. Makes the additional effort to exceed
expectations and delight the customer.

4. Creativity
Can think of innovative, multiple options, suggest new ideas for improvements.

5. Improvement Orientation
Keeps own skill set up to date and is proactive in ensuring the implementation of new and
better ways of achieving desired objectives. Ensures that learning is shared and that quality is
maintained and improved upon.

Has a good grasp of a wide range of operational issues and demonstrates good technical
project skills. Keeps updated on new developments, theories and methods and continuously
expands his knowledge base. Capable of conducting research in a specialist area.

7. Drive
Is committed to the job and works hard for the long term good of the organisation. Takes on
responsibility and accepts challenges.

Works in an organised and systematic manner. Identifies and prioritises resources.
Anticipates constraints, schedules work and mobilises and monitors resources to achieve
targets.

9. Analysis
making. Seeks all relevant information, draws accurate conclusions and inferences and finds
the optimal solution

10. Decision Making
Proactively seeks and accurately evaluates the available data. Anticipates outcomes and
implications. Chooses the optimal solutions from all those available and implements the
necessary actions in a timely manner. Involves others and ensures buy-in to decision-making
process.


1. Networking:
Collects, interprets and shares information effectively. Interacts, liases and builds
relationships with a diverse range of parties both internal and external to the organisation.

2. Resource Management:
Acts in a line management capacity to translate business objectives into functional activities.
Sets goals and processes and organises resources to ensure that the desired results are met.

3. Customer Focus:
Builds effective relationships with the internal or external client and acts to ensure that all
stages of the transaction are smooth and efficient. Makes the additional effort to exceed
expectations and delight the customer.

4. Decision-Making:
Proactively seeks and accurately evaluates the available data. Anticipates outcomes and
implications. Chooses the optimal solutions from all those available and implements the
necessary actions in a timely manner. Involves others and ensures buy-in to decision-making
process.

5. Team Leadership:
Is an effective team player and team leader. Guides and supports the efforts of team members
towards the achievement of the business objectives. Is proactive in avoiding or resolving
conflicts.

6. Motivating Employees:
Creates an urge in an employee to achieve specific objectives. Shows genuine concern and
respect and is sensitive to employees needs. Is committed to supporting and protecting
employees.

7. Empowering Employees:
Creates an environment where people have the confidence to assume responsibility and
ownership of the job. Supports ongoing feedback and development and helps employees to
realise their full potential through appropriate interventions.

8. Competitive Analysis:
Looks at information from a commercial angle. Is sensitive to the business environment and
applies models and theories in order to understand it. Evaluates possibilities in terms of
products/ processes/ services/ systems and finds the right USP for the client.

9. Improvement Orientation:
Keeps own skill set up to date and is proactive in ensuring the implementation of new and
better ways of achieving desired objectives. Ensures that learning is shared and that quality is
maintained and improved upon.

10. Drive:
Is committed to the job and works hard for the long term good of the organisation. Takes on
responsibility and accepts challenges.

11. Business Communication:
Produces clear and effective documentation and communication. Is able to make accurate

12. Functional Knowledge:
Has a good grasp of a wide range of operational issues and demonstrates good technical
project skills. Keeps updated on new developments, theories and methods and continuously
expands his knowledge base. Capable of conducting research in a specialist area.

13. Influencing:
Makes an impact and puts his/her ideas and views across clearly. Establishes credibility,
gains acceptance and converts resistance to acceptance.

14. Entrepreneurship:
Identifies business opportunities. Considers various options in terms of developing business,
supported by data, analysis of resources required, detailed plans, time-lines and critical
performance parameters. Pursues the opportunity with passion and determination.


1. Risk Management:
Proactively assesses and benchmarks the wider business environment and reacts rapidly and
decisively as a consequence of accurate interpretation. Acts after evaluating the feasibility
and likely impact of all available courses of action. Plans effectively to make the best
possible use of the existing resources

2. Influencing:
Is able to impact upon, gain the acceptance of, and effect behaviour changes in individuals,
groups and large audiences either through directly presentational skills or liasing, negotiating,
setting examples, networking and indirect influence.

3. Customer Orientation:
Understands fully and responds rapidly to the customers needs. Champions the customer
within L&T and seeks to streamline the entire transaction. Develops and maintains close
relationships with key individuals within the client organisation.

4. People Management:
Shows genuine concern for staff and takes responsibility for their welfare and development.
Seeks to improve and optimise man-management processes and the working environment.
Achieves optimal handling of both people and task elements. Taps the potential in people.

5. Multi-functional Thinking:
Has a complete overview of the operation and business area. Understands the specific
operational components and diverse functional responsibilities and ensures their smooth
integration

6. Team Building:
Is an effective team player and team leader. Sees team working as a value addition and
promotes a culture of empathy and mutual respect and win/win solutions.

7. Leadership:
Motivates, inspires, influences and pushes people to attain organisational and project goals.
Leads by example and delegates effectively

8. Strategic Thinking & Visioning:
Examines and accurately evaluates the competitive strengths and weaknesses of L&T.
Chooses the correct course of action to derive long term business advantage after assessing
all relevant environmental factors. Internalises the Company/Group/SBUs goals and
objectives and translates these into specific action plans.

9. Organisation Development Orientation:
Initiates and supports a continuous process of increasing the skill base and systems and
process improvement. Makes optimal utilisation of various people management techniques
for effective recruitment, reward and development. Sets goals and objectives, monitors
progress and responds rapidly when required.

10. Drive:
Fully internalises the L&T philosophy of doing business and acts as a role model and
example. Does whatever he/she believes to be right in spite of pressures to the contrary.

11. Business Communication:
Produces effective high level documentation and communication. Is able to make accurate

12. Entrepreneurship:
Identifies business opportunities. Presents an effective case for starting a new business or
turning around an existing business, supported by data, analysis of resources required,
detailed plans, time-lines and critical performance parameters. Pursues the opportunity with
passion and determination.


1. Strategic Thinking / Visioning
Demonstrates breadth of outlook and seeks to anticipate future developments. Makes
valuable contributions to the vision and strategy of the organisation and is able to conceive a
higher level for L&T. Invokes belief in the vision in others and helps others to appreciate the
broader perspective and mission.

2. Entrepreneurship
Views issues in terms of costs, profits, markets and added value. Finds creative ways to build
the business, identifies fresh approaches and shows a willingness to question traditional
assumptions.

3. Risk Assessment / Management
Makes rational, realistic and sound decisions based on consideration of all the facts and
alternatives available. Chooses the best option and takes timely and committed decisions on
the basis of limited information if necessary.

4. Influencing/ Negotiation
Influences, convinces or impresses others in a way that results in acceptance, agreement or
behaviour change. Identifies and utilises the arguments or approaches that will get the
necessary results. Projects credibility and makes an immediate positive impression.

5. Networking
Develops and maintains useful contacts both within and outside of L&T that can be leveraged
for business advantage. Is patient, sensitive and diplomatic in his interactions. Reads others
well and builds rapport quickly.

6. Developing People
Is a powerful force for releasing human potential and challenging inertia within the
organisation. Is alert to and acts upon development needs and opportunities. Utilises
feedback, coaching, training and special assignments to stretch peoples abilities and
encourage development.

Collects relevant and comprehensive information. Breaks the problem down and applies
appropriate logic. Reaches balanced and rational decisions and acts accordingly.

8. Expression
Communicates in a logical, concise and structured manner. Presents ideas succinctly
accurately and effectively. Holds the attention, achieves understanding of others and gets the
message across clearly.

9. Awareness of global trends
Is well informed about current global and national business trends and events. Has an in-
depth understanding of relevant issues and their implications for his own situation.

Competencies for Technology Leadership Programme

TLP: Executive Level Competencies

1. Domain Knowledge: (Includes Engineering Knowledge):
The candidate displays an understanding of the concepts and application of the technical
knowledge pertaining to his area of work. Is aware of the latest developments and technical
trends in the industry.

2. Technology Focus:
The candidate displays a penchant for technology; has a predilection to acquire knowledge/
skills and scan information for useful inputs. Considers technology as the prime source for
competitive advantage.

3. Perseverance:
Ability to remain committed to the completion of task even in adverse circumstances.

4. Conveying thoughts and ideas clearly:
Conveys information and ideas in a clear and structured manner. Accurately interprets and
simplifies technical information.

5. Initiative:
Ability to define/identify goals on her/his own and acting on the displays an ability to remain
committed to the completion of task even in adverse circumstances.

6. Innovation:
Comes out with new ideas/approaches. Ability to think beyond the defined frames (Out of the
box thinking).

7. Analytical Skills:
making. Seeks all relevant information and finds the optimal solution.

8. Spatial Ability:
Ability to conceptualise figures/drawings/designs in 3 dimensional space.

TLP: Tier 1 Competencies

1. Domain Knowledge
Has depth of technical knowledge and a thorough grounding in his own subject. Has the
ability to apply new engineering concepts in his relevant field of operation.

Proactively seeks and accurately evaluates the available technical data. Anticipates outcomes
and implications. Chooses the optimal solutions from all those available and implements the
necessary actions in a timely manner.

3. Technology Focus
Propensity to proactively learn new knowledge / skills and scan information for useful inputs.
Sees technical knowledge as a source of competitive advantage.

4. Creativity
box thinking).

5. Initiative
Ability to define/identify goals on her/his own and acting on the displays an ability to remain
committed to the completion of task even in adverse circumstances.

6. Perseverance

7. Communication


1. Creativity:
box thinking).

2. Analytical Ability:
Proactively seeks and accurately evaluates the available technical data. Anticipates outcomes
and implications. Chooses the optimal solutions from all those available and implements the
necessary actions in a timely manner.

3. Perseverance:

4. Knowledge Sharing:
Tendency / Inclination to share knowledge assimilated from various sources. To stay abreast
of the latest trends and practices in the field and continuously learn.

5. Communication:

Creates an environment where people have the confidence to assume responsibility and
ownership of the job. Supports development and helps staff to realise their full potential
through appropriate interventions.

7. Customer Focus:
Builds effective and lasting relationships with the internal and external customer and acts to
ensure that all stages of the transaction are smooth and efficient. Makes the additional effort
to exceed expectations and delight the customer.


9. Domain Knowledge:


1. Knowledge Sharing:
Tendency/inclination to share knowledge assimilated from various sources and to stay abreast
of the latest trends and practices in the field and continuously learn

2. Influencing & Communicating:

3. Decision Making:
Ability to arrive at an objective decision considering techno-economic feasibility
/competitive advantage.

4. Customer Success:
Understands fully and responds rapidly to the customers needs and adds value to customers
business. Achieves customer insight beyond the written brief.

5. Strategic Thinking:
Demonstrates breadth of outlook and seeks to anticipate future developments. Makes
valuable contributions to the vision and strategy of the department and its contribution to
business objectives.

Shows genuine concern for staff and takes responsibility for their welfare and development.
Seeks to improve and optimise man-management processes and the working environment.

7. Perseverance:


9. Domain Knowledge:

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Larsen & Toubro Limited

Corporate HR & Personnel Dept.

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