Anil M Naik, chairman, L&T, talks about qualities he’s looking for in his successor and his search for an ideal candidate, whom he assures will be found by 2017, in an email interview.
L&T is criticised for not having a new man (or woman) at the helm for over a decade. How would you respond to this view?
Our board has undergone major changes in the last decade, and more than 60 per cent of the executive board is new with members having long experience in the company. Each has the potential to head the company at some stage.
What effort is on to find a successor? What are the challenges and does it create friction within L&T?
The process of developing prospective successors is well down the road. It is the prerogative of the board to appoint my successor. While merit has always been our criteria, the contenders are longstanding L&T employees. They are the ones with a strong sense of commitment that will help them take a rational view, accept my successor and continue with their commitment to take L&T to the next level. I am absolutely confident of meeting the thirty-month deadline for a seamless succession.
What are the ideal qualities in a person L&T would like to see at the helm after you?
My successor will bring global experience, familiarity with L&T, an open mind, and high energy levels. Most important, he would need to be a strong leader, and inspire them to stretch themselves to their limit. I am sure my successor will be a stronger leader than me.
What is the position of your restructuring plans?
As a diverse conglomerate with various businesses that have grown over the years, with some now as big as other large companies, and addressing different markets, there is a need for focused management teams. Given our diversity, businesses that are not core to us and do not have visible potential to grow, will be hived off to give us better focus.
How have your employees responded to the restructuring?
It has been well received externally and internally, as borne out by investor confidence in our stock. Restructuring will help us attract and retain global talent. Employees in divested businesses could see more focus and growth when they become part of a group in their line of business. Our clients will also be better served. This is win-win all around.
How independent are these units now?
A few years ago we created an advisory board managed structure for each business. These boards include senior management of the business, and outside members selected on the basis of experience. Decentralization has created a stronger sense of ownership in each unit. This is the first major step in creating a holding company structure, and is possibly the most important change effected in the last five years. It has fostered strong management teams for each business.
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