Leadership Implication for Strategy at HCL

7/23/2019 Leadership Implication for Strategy at HCL

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1. Leadership Implication for Strategy at HCL

HCL takes pride in its philosophy of Employee First, which empowers its 62,000 plusemployees to create real alue for their customers! Employee First Leadership style istrue Hallmark of an HCL leader!

"t descri#es how HCL$ successfully left #ehind outdated 20th century mana%ementpractices and em#raced the mana%ement of the future!Employees First, Customers &econd e'plores the steps of HCL$(s transformational)ourney as the company reco%ni*ed the need for chan%e, created a culture of trust throu%htransparency, turned the or%ani*ational pyramid on its head, and shifted the responsi#ilityof chan%e from the office of the CE+ to the employees usin% small catalysts, or #lueocean droplets, that produced #i% results!

1.1 Employees First Philosophy

HCL$ defied conentional wisdom when it turned the mana%ement structure upside

down! y puttin% employees first and customers second, HCL was a#le to actiate thealue *one - the place where frontline employees interact with customers and create realalue for them!y doin% so, it fired the ima%ination of #oth employees and customers and set HCL$ on a)ourney of transformation that has made it one of the fastest %rowin% and profita#le%lo#al "$ serices companies!.ccordin% to usiness/eek, HCL$ is one of the world(s most influential companies!

1.2 Eol!tion of Leadership Strategy in last 1" years

"n 2000, HCL $echnolo%ies throu%h the lar%est "+ of a domestic "$ company at the

time! &till, HCL was la%%in%! "ts reenue was %rowin% #ut it was losin% market share tocompetitors!.n employee noted, HCL was no lon%er the place to #e! /hen people thou%ht of "ndiancompanies, they thou%ht of places like /ipro, "nfosys and $C&, not us! HCL(s %rowthwas attri#uta#le to its past success and its attrition rate rose to 10, much hi%her than theindustry aera%e!y 2003, &hi 4adar was thinkin% seriously a#out appointin% a new leader for HCL$echnolo%ies! +n .pril 5, 2005, ineet #e%an his tenure as resident of HCL$echnolo%iesineet made it clear that HCL, order to surie, needed to chan%e the way it approachedcustomers! 7ather than do small, pro)ect-#ased work, it needed to %o after #i% deals! $o

do so, it needed to differentiate ourseles and offer multi-serice, uni8ue propositionsthat transform customers( #usinesses! "n order to #e a#le to do this, it needed to remoethe silos and encoura%e colla#oration across the company

"n the first phase, which would #e two years, they planned to %et their house in order#y re)uenatin% employees and improin% operatin% efficiency! "n the second phase,


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they would form strate%ic partnerships with other companies so they could )ointlyoffer more alue and end-to-end serices for customers!

$he third phase, which they planned to complete #y 2090, would #e a radical shift inthe HCL #usiness model!

1.# $a%ing Employee First& C!stomer Second 'EFCS( )eal

y the end of :uly 2005, ,HCL had launched a campai%n that introduced HCLites, asthey decided to call HCL employees, to Employee First, Customer &econd ;EFC&


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"t all starts with the #elief in the core al!e systemsena#led #y the Employees Firstphilosophy! $here are four tenets to ?EFCS:!

9! $irror& $irror& Confronting the +r!th! $hat(s the shakeup call that ineet4ayar %ae the employees! "f employees did know somethin% was wron% and that

they hae to %et some-where, they had to take that leap to %et there!

2! 0sing +ransparency to ;!ild +r!st! y pushin% the enelope of transparency -from open financial information, to the smart serice desk of complaints, to 160de%ree feed#ack to open and online plannin% processes, employees #e%an to#eliee in the mana%ement! .nd once they trusted them, they were ready to )ump!

1! Inert the rgani-ation Pyramid. y makin% support functions and e'ecutiesaccounta#le to employees, rather than the other way round, they were takin%ownership of chan%e in their own hands! /ith power comes responsi#ility! 4otonly did this enhance the alue, #ut also #rou%ht meanin% and clarity to the

structure!

3! )ecasting the ffice of the CE. $his was the power-shift!$he responsi#ility ofchan%e was now on employees -they would ask and answer 8uestions like theCE+! $his increased the speed and 8uality of innoation and decision makin% atthe alue-*one!

.s employees internali*ed these alues, %radually, we reali*ed, that more often than not,chan%e or alue that is #rou%ht in had shifted its direction, from $anagement drien&Employee emana%ement em#raced ideas and initiaties!"t was employees who were now steerin% the ship! rou%ht it out! >ade it into a

esire to $entor&Employees are Ambitious. .spirin% to %row @ enthusin%,

encoura%in% and %uidin% to up-skill talent, eolin% ideas in scope towardsimplementation and %arnerin% scale

Commitment to Harest&Employees are Real. Aeneratin% ideas to renew

enterprise shiftrin%in% in measura#le achieement orientation that reco%ni*esand rewards entrepreneurial spirit

$hese #ehaiors employees delier, #oth at an indiid!aland organi-ationalleel!Employees hae deeloped pro%rams to support these #ehaiors at an institutional anddecentrali*ed leel! "nstitutional leel pro%rams has fie layers and are drienor%ani*ationally, while others throu%h support, or at customer leel! Let us showcase two


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of these main pro%rams, run at the %rassroots, and illustrate how they are ,innoatinginnoationthrou%h a


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HCL$(s reenue per employee is amon%st the hi%hest in the "ndian "$ industry

today

HCL$ was also featured as one of the most innoatie and disruptie companies

%lo#ally @- "ncluded in the first eer E'ecutie Dream $eam pu#lished #y Fortune

Emer%ed as the top rankin% "$ &erices company in ..C, in For#es .sia(s BFa#

50 List( 7anked #y $" in the $op 6 Alo#al &erice roiders #y $C across all 1

%eo%raphies;.mericas, E>E., ..C

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Leadership Implication for Strategy at HCL