We finished a two-day plan meeting Reliance Industries, among the most profitable and most excellent firms in India.
The business runs the world’s largest oil refinery, works the fastest-growing retail network (groceries, clothes, and electronics), and has established the world’s largest 4G VoLTE network Jio.
It’s a fascinating company that executes innovates and develops like no other company I’ve ever noticed.
As I spend some time with all the senior leadership group, one thing becomes crystal clear: people and HR are core to the success of the company. Let me explain.
Who is Reliance Industries?
Reliance is a business in India. Headed by his son Mukesh Ambani, the company operates an extensive conglomeration of companies, each of which will be growing at astounding prices. The company’s tagline is “Growth is Life,” and this is really how Reliance operates.
In 2019 the company generated $89 billion in earnings, a 44% gain from the prior year, with incomes around $5.6 billion (13% year over year increase). One expects the company to grow in earnings to $124 billion by 2024 if you look at analyst projections to the company.
How can this business perform so well? Well, Reliance’s narrative is the narrative of India: as the market evolves, Reliance will there be to accelerate expansion. Reliance’s most fascinating company, Jio (the 4G telecom company that offers an entire range of services for digital life), can be among the largest telecommunications companies in the world.
How can Reliance create such success? Many business schools teach the importance of focus Reliance functions in hydrocarbons, retail, distribution, and digital services. Does it do everything well?
Well, I have had the chance to meet the Chairman and HR leadership group several times, and the key is clear. This is a business that thrives on bold bets, ideas, and investment in people. And when these three things come, we locate a company to grow.
Let us discuss ideas. Each time I meet with Reliance, they ask me concerning innovative new ideas in expansion, rewards, pay, and organization design. The leadership group understands the need to construct a highly enabled organization, and they have experimented with this year after year. These days, the Jio company was designed around a “fractal” organization model — one that empowers thousands of local revenue and service teams to reach Indian markets using a “one-stop” service for all goods.
In the world, Reliance has assembled the world’s largest and most refinery So far as bold bets. The business has dug a deepwater oil the first in India. And in the world, Jio was conceived, built the 5G network at the time. All these “big bets” come from the Chairman and his leadership group, and they do not just bet, they bet cleverly. They spend lots of time thinking, analyzing, and researching the best way to make those bets work. Then with technology accuracy (the top executives are engineers), they launch, iterate, improve, and grow.
In the area of investments in people, Reliance takes every facet of HR and management. While the company is a hard-working location, the leadership group is looking at new strategies to goal-setting, pay benefits, and benefits. Reliance has been implementing OKR’s (a form of aims), agile team-based management, and constant learning. The company does relentless research before they do so, although I feel honored to have the ability to counsel them on a number of these ideas.
And I am not referring to a business that is “good to its people.” It goes further than this. Reliance is focused on support and employee productivity, relentlessly looking for new ways to manage people. Its retail and telecommunications operation is designed using a “fractal” organizational design, allowing small-business components to make decisions fast with real-time info. To encourage its workers, the company has assembled an HCM platform that rivals Workday and SuccessFactors, based on a brand-new architecture.
While a number of these companies are enormous in scale (more than 500,000 workers work in these companies), the company is committed to creating a “team of teams” functioning model. We have discussed this subject many times, and Reliance is pursuing development performance management, and goal setting tools to assist the business remain fast-moving, growth-oriented efficient.
Constantly Improving HR
Learning is core to the company’s growth. Not only do the leadership staff along with Ambani always research businesses and new business models, but they also want to understand everything. In 1 executive interview, the Chairman mentioned to me, “I am taking a course on Python.” I asked him why? He explained, “I need to know AI and advanced analytics. I can’t ask my people to perform all this work if I do not know exactly what it is!” How many Chairmen think this way?
This company is innovative and focused on implementation. Every company area is growing at prices that are shaped and hiring people fast. This means HR must hire, flying, train, and encourage people everywhere, leading to earning HR world-class.
One example of this is the “fractal model” for managing the Jio enterprise. Jio sells services and phones at thousands of small towns all over India. Typically this organization will be designed as a massive matrix, with supervisors, district managers, regional managers, and so-on. The Chairman refused it and looked at that thought. Decision-making would be too slow.
Instead, Reliance designed a model where each sale and service staff work. There are regional and country supervisors, however, they get support, sales, hiring, and financial data in a real-time dash. When information is needed by an employee or local manager or features, they interact using a real-time operations center skip the hierarchy and go online.
And every service that is possible is automatic. After the business was building the network up, the CHRO Sanjay Jog showed me the hiring and onboarding app. New workers could get a telephone, click a couple of times, scan their government paperwork, and have hired in a couple of minutes.
There’s A Lot
Each time I meet with Reliance, I come back to talk about something. We will be creating case research in the Josh Bersin Academy to assist you to hear this story in detail, and the mind of solutions and HR technology, Vaibhav Goel, will be speaking at JBA Live! (June 8-10 at Los Angeles.)
However, the most significant learning of all would be to “be bold.” In Reliance the group avidly studies best-practices and technologies scans the current market, then sits down and says “can we do so at a much quicker, simpler, and more service-centric manner:” The result is a continuous flow of innovation (new tools for performance management, learning, hiring, etc.), and a culture of “let’s just build ourselves.”
That leads me. Vendors like Workday, SAP, Oracle, and others have fantastic products. However, not one of these does all, although none of them are ideal, and your workers need something easy to use that works.
Reliance is. I invite you to come to JBA Live! This year and listen to this story. Not only does it teach you a good deal about HR practices that are bold and strategic thinking, but you’ll also find out about a few of the businesses in the world.