Transitioning through turbulent times

A perfect storm is brewing !

Turbulent times• Great financial turbulence and uncertainty• Extremes of volatility• A totally novel situation in known memory

‘Turbulence’ – a word we had heard only in flights…….TILL NOW!

What caused the meltdown? Rising Real

Estate prices

Declining Share prices

Declining Commodity

Prices

Declining Non Domestic

Reserves

Tighter Money

Declining Real Estate Prices

Rising Share Prices

Rising Commodity Prices

Rising Non

Domestic Reserves

Easier Money

Factfile – Indian IT Industry ( as on May’08)

Source: The Hindu Business line, with data from Mc Kinsey & NASSCOM May 13 2008

ü IT Exports 2007-08: $40 Billion USD

ü Jobs: 2 million direct + 7 million indirect

ü 5.4% of GDP

ü 33% of total country exports

ü To reach $80 billion usd by 2010

ü The US buys 67% of India IT services exports

ü Direct employment grew from 280K professionals in 1999-2000 to 2 million in the 07-08 period

Boom

Slow Down

Slump

Corporate Failures

Gloom

Recovery Begins

Hesitant uneven

recovery

General Recovery

Strong Recovery

Understanding the Economic Cycle

Stages of IT outsourcing Gartner offshore maturity model

Utility Enhancement TransformationRates Improves Process Customer FocusHigh level market &

Pricing reviewIdentification of most variable

alternativesManaging Business Change

Technical metrics Balanced Metrics Value Creating

Technical Competencies Business Competencies Behavioral Competencies

Cost effectiveness

Effectiveness Business Value Add

High LowRisk Levels

Low HighInvestment &Return Levels







Cost effectiveness


High LowRisk Levels







Cost effectiveness


High LowRisk Levels








Cost effectiveness


High LowRisk Levels








Cost effectiveness


High LowRisk Levels








Cost effectiveness


High LowRisk Levels



The challenge

Managing growth, innovation, talent, engagement and performance when the pressure is to do more with less!

So what do you do?

The war for talent doesn’t go away in a downturn, it intensifies

How do you stop your top talent from walking out the door when times get tough?

By engaging with your workforce and providing clarity of direction.

Downturn spells opportunity

Where good times disguise all manner of ills, bad times ask for the courage to deal with poor performance.

Non-performance is a cost

Don’t be an Ostrich!

Adopting a head in the sand approach is Futile!

The environment has changed , so should your organization…

Sticking your head up…How?

Learn from past mistakes Companies have learnt tough lessons around talent issues from past

downturns and are ready to learn from their mistakes

New trends require new responsesTrends like globalization, off-shoring and outsourcing require different

responses to the talent implications of this recession

Creative Solutions needed Economic stagnation is the ultimate “stress” test for human capital strategy

– and staying the course requires creative solutions

1

2

3

Prioritizing Learning and Development

Percentage of organizations that rank the following as the top two challenges addressed by Learning and Development

Best in class strategies for learning and development

Prioritizing Learning and Development

Converting threat into opportunity

Put your employees FIRST!

After all, they are the only ‘assets’ you can rely on to sail through…

Nurturing Talent to tide over difficult times

Take your employees along Build FAITH and TRUST

Standard Cycle of Transformation

23

Engaged employees

6

Satisfied customers

1

CompetitiveShare Gain

2

Operating Efficiencies

3

New New InitiativesInitiatives

4

Great place to work

5

24

Engaged employees

1

Satisfied customers

2

CompetitiveShare Gain

3

Operating Efficiencies

4

New Initiatives

5

Great place to work

6

Employee First

HCL’s Cycle of Transformation

Employee First is…

25

• Accepting imperfections as catalysts for transformation

• Seeding trust by stretching the envelope of transparency

• Reversing accountability by bringing the bottom to the top

• Decentralizing decision making

• Collaborating to create value

26

In a world full of customers,I see my employees first....

One of India's leading global IT Services companies, providing software-led IT solutions, remote infrastructure management services and BPO.

The Employee First mantra @ HCL

27

Take care of the Employee……Who takes care of the customer…….Who in turn takes care of the Profits….

Employee First…Time to Think

Tools to Use and Space to Grow

Why Employee First

28

In a knowledge intensive industry, value gets created in the interface between the customer and the employee.

Employee First Enables, Engages and Empowers employees to maximize this value by creating the WOWin that interface

29

Inverted Pyramid

Trust through Transparency

Mirror ,Mirror…

Destroy the office of the CEO

Learn from the kids!

Open

Initiate

Invert

Involve

Grow

Own

Collaborate

Create

Communicate

Partner

Media Testimonials

30

The Employee Is Always Right At India's HCL Technologies, workers get to grade the boss, and everybody can see the ratings

CEO's bold experiment: Management by democracyIndia is the world's largest democracy, so it seems fitting that the New Delhi-based

information technology services giant HCL Technologies is attempting what may be the most ambitious effort yet at installing a workplace democracy. That may sound

impossible, but so did running nations as democracies in past centuries.

Offic

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cam

pus

Offic

e is

cam

pus

Employees are Employees are THETHE assetsassets

Busi

ness

is C

urric

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Busi

ness

is C

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Lead

ers a

re fa

culty

Lead

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re fa

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Cust

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is th

e dr

iveCu

stom

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drive

Technology is the enablerTechnology is the enabler

What if we Invest What if we Invest What if we Invest in our in our in our

employees, and employees, and employees, and they leave?they leave?they leave?

What if we Invest What if we Invest What if we Invest in our in our in our

employees, and employees, and employees, and they leave?they leave?they leave?

What if we don’t What if we don’t What if we don’t invest in our invest in our invest in our

employees and, employees and, employees and, they stay ?they stay ?they stay ?

What if we don’t What if we don’t What if we don’t invest in our invest in our invest in our

employees and, employees and, employees and, they stay ?they stay ?they stay ?

35Attrition Rates down for both Core Software and Infra

Employee First Impact

36

Increase in Utilization rates from 70% to 72.7% in FY’08

Employee First Impact

Remember!!!

“Prosperity is a great teacher; adversity a greater.”

- William Hazlitt (English writer, 1778 – 1830)