What’s common to these firms?
A privately held Fortune 500 Company
that provides various services to
residences and firms.
“It is not just what we are doing but what
we are becoming in the process that gives
us our distinct value.”
- William Pollard, Chairman
The largest airline in the United States by number of
passengers carried domestically per year.
“To Provide the Best Customer Service, Put your
Employees First.” - Colleen Barrett, President
The largest coffeehouse company in the
world, with 15,012 stores in 44 countries.
“We built the Starbucks brand with
our people, not with consumers.
Because the best way to meet and
exceed consumer expectations
was to hire and train great people.
We invested in employees.”
- Howard Schultz, Chairman
Guarantees Made to HCL Employees
• We will not give you responsibilities
• We will not respect your aptitude
• We will not treat you equally
Guarantees HCL to Employees
• We will not give you responsibilities
– You will have to take responsibilities
• We will not respect your aptitude
– We will respect your attitude
• We will not treat you equally
– We will treat you fairly
Stepping back in Time
STATE OF BUSINESS IN 2005
State of Business - Assessment of 2005
 Employee driven market conditions
 Recruitment, engagement and attrition
needed new approaches
 Traditional outsourcers extending focus from cost to
innovation, productivity, resilience and flexibility
 New generation outsourcers looking for
transformational gain
 Disruptive technologies and new business models
Customers
Employees
Competition
2005
 Strong aspiration quotient to be
leaders in the service space
HCL
Leadership
 The “Me too” phenomenon and the
need to differentiate
 The value volume conundrum –
linear extension of business model
largely through application business
Shareholders
 Increased revenue growth rate
and profitability to be in line with
peers
The Big Change
HCL TRANSFORMATION
Four basic questions
1. How do you differentiate in today’s world
• By adding value
2. Who adds Value?
• Employees
3. Where do they add value?
• Value Zone – the interface between the
Service provider & Customer
4. If Employees add the ultimate value..
What should the role of
management be?
Enable, Engage
& Empower
employees
Cycle of Transformation
Implementation Challenge
Vision,
Mission &
Values
Strategy
Creation
“What” of strategy
New Products
New Propositions
New Markets
Change
Management
Implementation
“How” of strategy
How the business runs
Engagement
Empowerment
Owners of change
What Changed in HCL
From
Effort and
Input Focus
Discrete
Services
To
Traditional
ADM Services
To
Output /
Outcome
Focus
To
Integrated
Services
New Services
From
Indian IT
competition
To
Global &
Indian IT
competition
EMPLOYEE
From
COMPETITION
From
From
Factory
approach
To
Individual
Identity
-4-
LEADERSHIP
CUSTOMER
From
Aspiration
To
Empowerment
and
Enrichment
Departing from Traditional Leadership
Model
Customers
Customer
Employees
The Value
Zone
Employee
Enabling Function
Management
Why Employees First ?
Customer
Maximizing the WOW in the value zone
The Value Zone
Employee
Enabling Function
Management
In a knowledge intensive industry, value gets created in the interface
between the customer and the employee
Employees First Enables, Engages and Empowers employees to
maximize the value by creating the WOW in the value zone
EFCS is not……
EFCS is about the individuals, their individuality and their diversity
What is Employees First
Employees First is a philosophy
that recognizes employees as
strategic to the ownership of the
companies functions and its way
of working.
The tenets of Employees First
1
2
Mirror,
Mirror…
Trust through
Transparency
Accepting
imperfections as
catalysts for
transformation
Seeding trust by
stretching the
envelope of
transparency
3
4
Inverted
Pyramid
Reversing
accountability
by bringing
the bottom to
the top
Recasting the
role of the
CEO
Decentralizing
decision making
EFCS….inspiring change
Our Approach-achieving EFCS @ HCL
Practices
Process
Tools
Our Approach:
P(Processes)P(Practices)
T(Tools)
The U&I Portal
U&I, is an online forum was formed to bring a new level of transparency in the
organization. Employees can post any question, which the CEO, along with his
Leadership team, would answer. Stretching the envelope of transparency, it gives a
voice to all its employees and ensures that it is heard.
Transferring CEO’s Responsibility
To strengthen the Concept of EFCS further a new section called “MY
PROBLEMS” was introduced in the U&I portal where the CEO shares a
problem faced by him with the employees who then respond with
unique/innovative ways to deal with it.
Employee Passion Indicative Count
EPIC
Passion being the essence of an “HCL-ite”, EPIC was designed with the aim
of enabling the individual measure and identify his/her passion drivers which
would eventually assist him/her in utilizing those identified passion drivers in
their jobs, thereby, increasing productivity and satisfaction.
HCL’s top five Passion Indicators
Customer support
Collaboration
Creativity
Planning & Organizing
Interest
Open 360 Degree Feedback
360 Degree Feedback, Employees can rate their managers, even the CEO, and the
feedback/rating is made public across the organization. This inverts the pyramid and
makes the employee a part of the development journey of the manager and the CEO.
Smart Service Desk (SSD )
Smart Service Desk 2.0, an online problem management system to resolve issues
that employee face with the enabling functions. Only employees can close these
tickets, if satisfied. This brings in a culture of reverse accountability.
Value Portal
Value Portal, is about incorporating the efforts of every employee into a business
strategy that will support performance and profits over the long haul. It requires each
member of a team to take ownership of the organizational assets he or she manages
and translate organizational strategy into a personal plan of action.
But does EFCS Really work?
Proof of the Experiment
In 2011 HCL ,
In 2005 HCL ,
18000 Employees
CAGR of 30 %
$ 700 Mn in Revenues
79,000 Employees
Operations in 18 Countries
CAGR of 30 %
$ 5.7 Bn in Revenues
Operations in 31 Countries
EFCS: Impact Across The Organization
Evidence of BUSINESS SUCCESS:
Evidence of CUSTOMER IMPACT
Evidence of PEOPLE SUCCESS:
•HCL has grown by 3.3 times in terms of employees from 18,000 employees in 2005 to 79,000 in 2011.
•Won awards and accolades, e.g. Hewitt No 1 Best Employer in India and amongst the Top 25 Best Employers in Asia, one of
Britain’s top employers 4th year in a row, one of the 44 most democratic workplaces in the world by WorldBlu.
Proof of the Experiment:
•In 2009, during recession, HCL grew +23.5% while most of its competitior de-grew to the extent of -11.8%.
Forrester
In a survey done by
(external organization) among clients served by multi vendors,
HCL has been voted as No.1 by its customer in application outsourced
Transformational Impact Created by EFCS
HCL- Large Pharma Relationship Growth
Pattern
2010
2009
2008
2007
2006
2005
 IS EMEA - HCM
Support
 ESS – Multiple
Application
Support
 Short listed Global Vendor
 MRL Testing
 IS AP – Payroll
support
Team Size
34
 EAI – TIBCO
 GHH IS - MSI
Packaging
 MRL- CDS
support, CALM,
Partnernet
 GHH - M&O
 MSD Thailand –
DW Integration
 IS AP –PS HCM
 IS EMEA
Team Size
225
 RIS- CDS,CGA
support, ADF,CBT
 INFRA support
 First in Man
Research
 Managed care
 Process Consulting
 MMD Data 3
support
 SAS support
 Business
Intelligence
 Ent ArchitectureMETIS
 App Rationalization
Strategy
 MSD Singapore
 Volume Deal
 MSD EMEA PDA SFA
 DBA support
Team
Size 450
 GTS – Comet 2.0
 EMEA - Portfolio
Mgmt/Univadis
Portal Mgmt
 HH – CDB, Email
Marketing
Campaign, DAY &
FAST support
 HH Banyu
 ISS – Production
support
 Infra – DC Tracks,
IBM AS400 ,
 Preclinical M&O
 PTP BPO services
 MRL- Integration
Program Mgmt
 GDS support
 PS enhancements
 Web eVoc
Team Size
700
 GTS – Univadis
Directory services
EIC, One Large
Pharma portal
 Solution manager &
Global Banking
 MMD M&O
 MRL App Dev
 FACTS DSS BI
Migration
 ECCM Search
Technical Architect
 ISM Framework
Creation
 Infra GSOC
 MGCS Project
 Large Pharma BI
Support EMEA
 M&O ETL Portal
Development
(PR1909312)
 Large Pharma HH
Siebel Call Center
 MMD EA OSI PI
Support
 MMD Handel M&O
 MMD IT Quality
portal
Team Size
790
 GDAM_Integration
 Infosec_Sustenanc
e Engg
 GSHardware_Apps
 HPC Support
 Large Pharma HPC
MRL DBA
 MRL_BasicResearc
h&Licensing_M&O
 Large Pharma O2C
 SAP Htr Support
 SM SOP Creation
Phase
 Data Centre
Consolidation
Team Size
1075
Key Performance Parameters
Resource Mix
Service Quality
12,0 00
11,206
74%
800
10,041
27.8
30. 0
26.6
10,0 00
700
8,384
8,112
25. 0
22.4
8,00 0
22.8
59%
8,285
62%
75%
64%
70%
600
21.3
500
80%
60%
41%
50%
38%
20. 0
400
36%
40%
6,00 0
26%
25%
300
30%
15. 0
4,00 0
1,943
200
10. 0
1,732
1,161
259
159
1,366
20%
1,328
2,00 0
100
200
189
188
10%
34
226
507
708
XXXX
2005
2006
2007
2008
2009 (Q1)
0
5.0
0%
-
Q1 '08
Q2 '08
Q3 '08
Q4 '08
Q1 '09
0.0
Standard
High Priority
Emergency
Total
MTTR (Hrs)
Headcount Vs Attrition
Offshore%
Onsite %
CSAT KEY HIGHLIGHTS
5%
1075
4%
3%
708
790
507
1%
1%
1%
2008
2009
2010
A- CSAT Score
HCL Large Pharma
Engagement
HCL
Average
2010
59.1
47.8
2009
47.2
39.5
226
34
2005
2006
2007
Attrition %
Headcount
HCL CARES C SAT Rating of 6.2 on a 7 point scale for Nov 2010
Value Dashboard (2010)
Value Scorecard - for December2010
Division Wise Idea Split
9
18
Total Value of Ideas
$469,528
Large Pharma Accepted Ideas
17
Value of Large Pharma Accepted ideas
$464,596
Ideas completed/realized
14
Value of completed idea
$432,912
3
3
1
0.02
0
0.04
0.02
# of ideas
100%
Idea/Value Split across different areas
24%
80%
12%
60%
72%
Support Cost Reduction
Process Improvement
40%
64%
20%
11%
17%
0%
# of Ideas
0.35
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
Millions
Total Ideas generated
Number of Ideas
10
Value of Ideas
Operational Cost
Reduction
1
0.01
Value of ideas
1
0.04
Service Maturity Map
SBS IT, $5.14
MRL Preclinical ,
$1.46
MRL Clinical, $7.70
GeneSYs, $1.38
GTS GDS M&O, $1.92
PLatform Infra,
$4.49
Banyu Ops Center,
$0.11
• Transactional
EMEA Ptp, $0.48
• Project –based
HH M&O, $6.18
• Discrete Managed Services
MMD IT M&O, $0.29
Business Alignment
• Integrated Service Management
Service Maturity
Transactional
Project Based
Discrete Managed Service
Integrated Service Mgmt
No SLA for Vendor
SLA for provider Box
End to End SLA
Outcome Based SLA
T&M
Fixed/Rate Card
Fixed
Fixed + Service Catalog
NA
0-5 %
5-7 %
10 % +
All M&O
Resource Mgmt, L3
Application Mgmt
Service Strategy, Governance
Dependency
People
People
People, Tool
Tool, Process
Cost Savings
Baseline: Labor Arbitrage
5 % Incremental
10 % Incr. to Baseline
15-25 % Incr. to Baseline
Key Metrics
Attrition, On-boarding
Response/ Resolution
MTTR, Biz. Case
Cycle Time, Productivity
Maturity^
SLA
Pricing Model
Productivity (YoY)
Big Pharma Role
Studio Workshops–
1. Strategic Partner
Workshop
(A workshop moderated by industry
though leaders like Tarun Khanna,
brings Big Pharma & HCL Sr. Leadership
onto a common platform to identify a
shared vision for the relationship: A
Value Roadmap)
2. Axon: ERP Benefit
Realization
Deriving greater ROI on SAP
Investments
Moderated by Chris Beiswenger, COO
HCL Axon
3. Asset Rationalization &
Archival
Execution Plan to accelerate IT Portfolio
Optimization in a M&A Scenario
HCL Enterprise Architect Dharmender Kapoor
Towards a New Thought Relationship
Taking EFCS Beyond Boundaries
EFCS @ Speaking Forums










Henley Business School
Harvard Business School
MIT Sloan School of Management
Oxford University
ICEDR
LRN
CIPD
La Fosse CIO Submit
Leadership Spectrum, Nasscom
Wall Street Journal-Leadership Submit
There is something unique about HCL’s
management model that the world is talking about…
Most Influential – Five companies to watch:
Facebook, HCL Technologies, Craigs List, SKS MicroFinance, LI & Fung
Acknowledges HCL Technologies as the “world’s most modern management”
“HCL’s Employee First and ‘democratization’ of management concept could
‘bring about a corporate renaissance.”
HCL wins FT ArcelorMittal Boldness in Business Award
40
HCL Technologies was amongst the two examples of companies with Authentic
Leadership which was presented at the WEF discussion in 2008
Why HCL Technologies is Disruptive and Bears Watching
– Barry Rubenstein
“…though it has not received the hype of a salesforce.com or Google, we believe
HCL may very well be one of the contenders to lead the IT services world of the
very near future.”
“HCL’s Employee First as a new and radical management philosophy which will
catch on with the world sooner or later.”
HCL Technologies is Best Company(listed in India) in Investor Relations
41
HCL is taught at Harvard as a premier case study on strategy
and organizational leadership
HCL is featured as a case study in a global best-seller
Darden School of Business has done a case study on the
impact created by HCL through its “Employee First
Customer Second” practice
IBM and the other multinationals are becoming increasingly
nervous about HCL Technologies…
42
What if we invest in
our employees,and
they leave?
What if we don’t
invest in our
employees and,
they stay ?
Thank You
For your attention and participation!
Th
Twitter: Anand__Pillai