Employee First HCL Group-3 Amrata Agrawal Amrita Ghosh Ravikant Rohit Mahadik Shrikant Agrawal Vivek Nigam
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
.