Employee first

Employee First

HCLGroup-3Amrata AgrawalAmrita GhoshRavikant Rohit MahadikShrikant AgrawalVivek Nigam

Contents

Introduction to Employee First About HCL Core Values Why concept of “Employee First” came ? Implementation Of Employee First in HCL Quick Facts Impact on Profit and Loss Account Impact of Employee First in HCL Important Points of Employee First Five Pillars of Employee First The Employee First Transformation Key learning from Employee First

About HCL In 1976, Shiv Nadar, Arjun Malhotra, Subhash Arora, Badam

Kishore Kumar, T.V Bharadwaj & Arun Kumar H started Microcomp Limited

Transformation from Scientific calculators business to Computer Manufacturing

The company name "HCL" used to stand for "Hindustan Computer Limited" but now HCL is the only one name that the company goes by

Contd…

The HCL team – 90,000 professionals 31 countries 505 centres of presence in India

Global partnerships with leading Fortune 1000 firms

HCL is the first company that not only thinks on the customer satisfaction but also looks after employees’ satisfaction

Core Values

Vineet Nayar started his career with HCL in 1985

He went on to reshape the organization with his 'Employee First, Customer Second' philosophy

Nayar - author of the book Employees First,Customers Second: Turning Conventional Management Upside Down

Mind Behind EFCS

Year 2005 ,HCL had begun a series of experiments:

EFCS - turning the traditional management hierarchy upside down

Aim – to create trust grow through transparencyTransfer the responsibility to front-line employees

Why EFCS In HCL?

Q.: What is the core business of any corporation?Ans.: To create different shared value for its customers

Q.: Where does that different shared value get created?Ans.: In the interface of the employees and the customers

Contd…

If employees create different shared value, why manager & management are required?

To enthuse and encourage employees so that they can create a different shared value

Employees need to be ‘heard’ and not ‘herded’

Dare To Dream…

Quick Facts

HCL Technologies is a leading global IT services company with over $6.2 billion revenues

In February 2005, Vineet Nayar, CEO, HCL Technologies announced a radical new philosophy, “Employee First Customer Second” (EFCS)

Profit And Loss Account

Year 2002 2005 2008 2011

Total Revenues

846.93 1508.55 4506.48 6995.30

Total Expenses

390 1090.48 3388.43 5312.66

Reported Net Profit

396.55 329.27 780.65 1198.28

2002 2005 2008 20110

1000

2000

3000

4000

5000

6000

7000

8000

Total revenuesTotal Expenses (in Rs. Cr)Reported Net profit (in Rs. Cr)

HCL Revenues (Year Ending June)

HCL Tech Revenues have grown by over 3.5 times since HCL began its transformation journey in 2005

Impact Of Employee First

HCLT grew at a CAGR of 24 % and increased its market capitalization by 186% in the last 3 years (2005-2008) and at present CAGR is 12%

Doubled the number of $10Mn, $20Mn & $50Mn customers and tripled the number of $100Mn customers

HCLT’s revenue per employee is amongst the highest in the Indian IT industry today.

Important Points Of Employee First

The interface between the company and the customer

Encourage workers to use their own initiative and make decisions themselves

Employees can rate their managers

Complete transparency within the company

Five Pillars Of Employee First

The EFCS Transformation

Key Learnings From EFCS

Make yourself the example Vineet Nayar’s idea of making 360 degree feedback public online was designed to hold managers

accountable. The first year Nayar posted his own review before asking his team

Put your time on line Vineet spends about seven hours in each week to answer questions asked by employees

Technology Leverage technology to make life simple. Automate process and empower employees to raise there voice

Changes Put in place a series of small changes that will potentially have a dramatic effect on how people work

.