Free Essay

Hcl Technologies

In: Business and Management

Submitted By lcs1250
Words 1445
Pages 6
Latashia Spears
Unit Assignment 1
3/3/13

HCLT commitment to transparency and their efforts in inverting the pyramid were making a great difference for the company. The blueprint meetings, planning and implementation process has allowed HCLT to successfully compete with the best global players in the IT industry.

Even though HCLT was still a small company, they saw their business growing. They began to hire hundreds of new employees and with worldwide revenue; they were quite diversified with operations in eighteen countries. One of Nayars primary focus was keeping the employees first and customers second, but with the massive growth and gain of new employees, Nayar wasn’t sure how to sustain that focus. “How would new people coming on board understand the importance of trust and transparency”, Nayar asked. This question is what brought about the Starfish and the Spider leadership organizational concept by Ori Brafman and Rod A. Beckstrom.
Most companies, they argue, function like eight-legged spiders. “Cut off the leg of a spider, and you have a seven-legged creature on your hands; cut off its head and you have a dead spider”. “But cut off the arm of a starfish and it will grow a new one. Not only that, but the severed arm can grow an entirely new body. Starfish can achieve this feat because, unlike spiders, they are decentralized; every major organ is replicated across each arm”, (Nayar, V. (2010). Recasting the Role of CEO: Transferring the responsibility for change), The Starfish and the Spider: Unstoppable Power of Leaderless Organizations, by Ori Brafman and Rod A. Beckstrom. In this reading, Nayar realized that HCLT was operating more like the spider rather than the starfish and seeing that they were operating more like a highly centralized organization. With this information a revelation was revealed to Nayar, and this will begin the start of the structural and leadership changes for HCLT.
Nayar set in motion certain trends to start the processes for the new and improved way of building, branding and structuring the company to keep it moving forward now and in the future. The first approach to this is the forecasting of the scenario analysis. Nayar has to look at a series of disciplines and interests with a discussion with the upper management his thoughts on ways this decision may affect the societal, economical, political and technological issues that the company has set in place. With this information in hand, this would be the beginning of the scenario planning phase which would bring about the introduction of the Business-Aligned IT or BAIT project.
The BAIT project was put into place to focus on the specific business processes of the company. Although this was suppose to be a pilot project that were to be shared with only a few members of the Company, the word spread throughout the company, giving one department in particular (Technical Team ) the opportunity to put the pilot in motion and come up with three most critical business processes. This information from CIO was shocking to Nayar, although he was a little concerned about the process being used before it was introduced, he was also excited about the information that he was given through the presentation from the team lead Tarika. Nayar realized that there was a shift in responsibility for changes were being transferred without any involvement from the office of the CEO. With all of the information that he had gathered from the BAIT presentation by Tarika and the technical team, began the introduction with a new section within the U&I called My Problems.
The My Problems section in the U&I, focused strictly on the problems to questions as the CEO that Nayar couldn’t answer or solve. This allowed the employees to get in on some of the opinions on topics that were brought by Nayar. By allowing his employees to participate in this project, this brought about interesting points, ideas and suggestions that would help Nayar understand the problems better while developing his thinking. Nayar engaged in questions with his employees/contributors such as:
What is the fundamental nature of the problem?
How does it really affect us?
Do we really need to do something about it?
Who is the right person or team to think more about this?
What timeline makes sense?
How will we evaluate the process and the solutions?
With these answer and questions conversations, started the SWOT analysis phase of the new structuring and strategy process. The shift in the responsibility of actions created change away from Nayar to other people throughout the organization. Opinion polls were created about the various issues for all to see. Although met with some diversity, the leadership team didn’t always accept the advices that were received, nor did they always follow the majority opinion expressed in the polls. This may have seemed to be a small issue, but Nayar’s ultimate goal was to get the company talking and listening to one another like a good family.
Nayar approach to sustaining the innovation to the company was growing ever so fast. He started by winning the contract with an important global 100 company that would greatly expand HCLT’s scope of engagement in their company. The CIO of the global 100 company saw the innovativeness of their solutions, the quality of their service, there responsiveness along with the facilities, locations and pricing to give the overall win of the contract, but with all of this good news, Nayar was informed that the proposal didn’t address the really important issues, such as “Such as what your people are all about. Who are they? What do they think about? What are their ethics? What are they passionate about”? With such sound advice given to Nayar from the CIO, he had to come up with a way to engage his employees, by implementing these questions and coming up with a solution. If Nayar can find a solution in addressing these questions, through engaging the people around their passions, beliefs and ethics, they would be more likely to take responsibility for change, they would even demand it. This would address both the General environment and the Demographic segments trends. Nayar would address this issue by implementing the Employee Passion Indicative Count or the EPIC initiative. This also included the creation of the employee communities called Employee First Councils. This would prove to be a great move for the company.
With the efforts to share responsibility with his employees and units of the company would show how well they would adapt to merges and acquisition. Understanding the technological, economical, and global segments of business, Nayar new that his company wasn’t as strong in the SAP consulting capabilities, therefore the partening with AXON the largest most successful independent SAP consulting companies in the world would help strengthen their offering and grow faster. This was the beginning of a global working relationship with a company based out of the UK. This merge along with allowing his employees to take part in some of the decisions, played a major role in the new direction the company was headed towards. “IT is increasingly playing an important role in organizations and in society’s ability to produce access, adapt and apply information” (Morale-Gomez and Melesse, 1998). “A number of countries especially those in the developed world and some in developing countries are putting in place policies and plans designed to transform their economies into an information and knowledge economy. This can also have a negative impact on the poor and under develop countries such as Nigeria as well”. Electronic Journal of Academic and Special Librarianship, v6 no1-2 (Summer 2005)
As stated before, Nayar took many risks, faced many challenges and some opposition from upper management. He stood by his vision. Changes had to be made, and Nayar started with himself by realizing that even as the CEO, he doesn’t have the answers to all of the questions. Even he need advise. HLC saw a large growth in business with the new implementations and merge with AXON. To realize and know the importance of information and knowledge as valuable resources will continue to keep this company moving forward.

References:

Nayar, V. (2010). Recasting the Role of CEO: Transferring the responsibility for change

Leading Organizations. Perspectives for a new era, Second edition; Chapter 3 (pg 25-31).
Morales-Gomez, D. and Melesse, M. {1998}. "Utilizing Information and Communication Technologies for Development: The Social Dimensions". Information Technology for Development. 8{1}. pp. 3-14.
Electronic Journal of Academic and Special Librarianship, v6 no1-2 (Summer 2005)
Ori Brafman and Rod A. Beckstrom. The Starfish and the Spider: The Unstoppable Power of Leaderless Organizations.

Similar Documents

Premium Essay

Hcl Technologies

...HCL Technologies Ltd. HCL Technologies Ltd. (HCLT) is a leading global IT services company offering various services in Application Development & Maintenance (ADM), Engineering and R&D Services, Enterprise Application Services (EAS), Enterprise Transformation Services, Infrastructure Management Services (IMS)and BPO. HCLT delivers solutions across banking, insurance, retail and consumer, aerospace, automotive, semiconductors, telecom and life sciences sectors. Its well-established infrastructure management practice, combined with recent acquisition of Axon, provides significant cross-selling opportunity, which could help HCLT win some of the large size deals. At CMP, the stock is trading at 15.5x FY12E and 12.3x FY13E earnings. We recommend a buy with a price target of `587 i.e (15x FY13e Adj. EPS of `36.62 + value of investments per share of ` 37.5). KEY HIGHLIGHTS ■ HCLT grew faster than Industry: Indian IT exports grew at a 5-year CAGR of 23% from $18bn in FY2005 to $50bn in FY2010. HCLT revenues grew at a 5-year CAGR of 29% from $764mn in FY2005 to $2705mn in FY2010. ■ Axon acquisition adds value: Prior to the acquisition of Axon in 2008, about 11% of HCLT’s revenue came from EAS. With the acquisition of Axon, HCLT’s revenues from enterprise solutions increased to more than 20%. ■ Gaining market share in ADM & IMS space: HCLT’s performance has been particularly strong in deals with bundled ADM and IMS. With the rising traction in restructure/renewal of......

Words: 3896 - Pages: 16

Premium Essay

Trends Assement Hcl Technologies

...Purpose HCL Technologies provide a range of outsourcing services, business process outsourcing, and infrastructure services. The purpose of this paper is analyze trends and economic forces that impact changes in the global marketplace, analyze the impact of market trends in driving innovations in organizational, structure, culture, and process, and also to analyze leadership in relation to the effectiveness of general management planning and decision making. Majority of my information will come from HCL Technologies case study with Nayar’s insights about the subject. Analyze trends and economic forces that impact changes in the global marketplace. The product that HCL Technologies sells is a service that customers use to make their business better. Staying with the latest trends is very critical in a service based business like HCL Technologies. The first trend I would like to talk about is Technology trends. Technology trends can drive innovation and influence decision making in the IT service industry. According to Hickman (2010)" Developments in technology lead to new products and services and improve how they are produced and delivered to the end user. Innovations can create entirely new industries and alter the boundaries of existing industries." A future trend that will spread rapidly in the IT industry will be Cloud Computing. There will soon be away a business can obtain and maintain software, hardware, and computing capacity. According to the Nayar Case......

Words: 1539 - Pages: 7

Premium Essay

Hcl Technologies

...revolutionary and helped its product and technology customers reach the market on average 20-25% faster. As requested by HCL, We are here today to identify potential opportunities and issues in both local and global markets and identify our potential solutions. The technology industry in India is growing rapidly with the continued expansion of outsourcing from North American and European countries. In 2011, with the help of its EOOTB solutions the HCL ERS division grew by 26% and business in pipeline grew by 86%. In this paper, we’ll focus on HCL’s EOOTB offerings. HCL knows that they must act fast as the success of (ETOOB) has led to many companies working on second mover strategies. They must reach new markets and demonstrate value to growing existing markets.            After a thorough market analysis into existing industries and emerging markets, we have suggested focusing on creating value added solutions. To address new markets and become thought leader, we’ll focus on the importance of Value Based on Relationship. We will also facilitate more customizable solutions while also providing ‘out of the box’ solutions for our less complex clients. To gain (ETOOB) Provides a solution that is customizable based on vertical, market and business need. We plan to leverage partner base and set up localized sales offices throughout the globe to help better meet the needs of our clients. Introduction In today’s fast paced Information Technology industry, IT companies......

Words: 3037 - Pages: 13

Free Essay

Case Study

...Sign in Screen reader users, click here to turn off Google Instant. About 493 results (0.29 seconds) Search Results John Kotter s Eight Stage Change Model Free College Essay 301 ... www.termpaperwarehouse.com/.../john-kotter's...change-model/16 HCL employees than products or services. 2. To what extent did Vineet Nayar follow the change models proposed by Lewin and Kotter? Explain. Vineet Nayar ... The Case Of The Software Proposal Term Paper 741 - 760 www.termpaperwarehouse.com/subcategory/the-case...proposal/38 2. To what extent did Vineet Nayar follow the change models proposed by Lewin and Kotter? Explain. Vineet Nayar followed the change models... Save Paper ... Forces Of Change At Hcl Technologies Vineet Nayar Free Essays 1 ... www.studymode.com/.../forces-of-change-at-hcl-technologies-vineet... 20+ items – Free Essays on Forces Of Change At Hcl Technologies Vineet ... Vineet Nayar Vineet Nayar is the vice chairman and CEO of HCL ... Hcl Technologies pioneering efforts of its president, Vineet Nayar, HCL ... Vineet Nayar - Harvard Business Review blogs.hbr.org/hbr/nayar/ Feb 18, 2013 – Vineet Nayar is vice chairman HCL Technologies Ltd, an India-based ... Or are you asking only because you think that's the right thing to do? [PDF] kre29368_ch18_528-56.. auth.mhhe.com/qa/connect_docs/.../kre29368_ch18_528-564.pdf File Format: PDF/Adobe Acrobat - View as HTML Dec 7,......

Words: 705 - Pages: 3

Premium Essay

It Equity Research Report

...been growing vary to a great extent. Even in terms of future guidance, one company hovers around 6-10% vis-a-vis another at 17%. Volatility has seeped into this industry. It is becoming increasingly difficult for the investors to invest in any of the companies, thanks to the sinusoidal growth of some of the bellwether IT companies. An investor needs to do an in depth analysis of the business model being followed by various companies. I need to look into their target geographies, service lines and industries. Scrutinising these parameters along with the valuation of the respective stocks will give a better idea about the future prospect of these companies. In this research, I have taken top four Indian IT companies- TCS, Infosys, Wipro and HCL. An in-depth analysis of each of the companies is done. I have looked into various domains of the companies. IT industry has many service lines- IT Services, Consulting, Products & Platforms. Place - Mumbai Date – 04/06/2013 Vaibhav Jha 2 Acknowledgement I take this opportunity to express my profound gratitude and deep regards to my guide Mr.Vinit Bolinjkar (Head, Equity Research) for his guidance and constant encouragement throughout the course of this project. I am highly indebted to Mr Chintan for his guidance and support in understanding the working of...

Words: 8190 - Pages: 33

Free Essay

Hcl Case

...COMPETITOR HCL CASE STUDY Submitted to Prof. Rahul K. Mishra Prof. Anomitro Bhattacharyya Mr. Dinesh Kumar INTRODUCTION HCL was founded by Shiv nadir in 1976. Through Nadar’s sophisticated R&D capabilities it took the lead in Hardware market. Nadir was receiving international recognition for his ability to spot technological trends early and capitalize them. Vineet Nayar, President of HCL joined the company in 1985 as a senior management trainee and later founded HCL Comnet, IT Infrastructure and Networking Business. HCL had golden years till 1980 after that the company’s growth started declining. The company ignored the changing trends of the industry. In 2005, Vineet took the lead of the company and invented the corporate strategy called “Employee First and Customer Second”. ISSUES OF HCL * Government of India deregulates the policy of MNC’s entering into the market. IBM returned to India * Changing Trend in customer demanding IT services * The nature of service industry was changing * Within the organization employees were working in Silos * Huge challenges in Sales and Delivery Groups * HCL was no longer the place where employees wanted them to get associated with. * Company was focusing on small time engagements PORTER’S FIVE FORCE MODEL OF HCL Threat of New Entrants There is a very high risk of threat of new entrant. Companies like Acer,...

Words: 882 - Pages: 4

Premium Essay

Analysis of Leaders Innovation

...and new beginnings. One who introduced this concept to a failing organization, was an innovative leader named Vineet Nayar. In 2007, Nayar was named CEO of IT Services and Outsourcing Firm HLC Technologies. With his strategic vision and global outlook, he catapulted the then dismal firm into the leader of the organizational pack in a short amount of time. In the beginning of Nayar's 2010 article "A Maverick CEO Explains How He Persuaded His Team to leap into the Future”, he describes his appointment as President of HLC technologies as a “leap to safety.” (Nayar, 2010) It became apparent that there was something he needed to do to change the interface of this company. He began to create a vision, but knew that it would not take place without some major adjustments. Vineet formulated the” employee first, customer second approach” and took HCL to be one of the most successful IT outsourcing businesses in the world. It worked magic at HCL and the company created 34% percent revenues even at the time of turbulence (sparks.wisdomjobs.com). Key insights from his approach were: 1.) Be transparent – share information, show you......

Words: 1664 - Pages: 7

Free Essay

Trends Assessment

...Building an Innovative Organization The president of HCL Technologies, Vineet Nayar started with the company in 1985 as a management trainee, working his way up through the company as president. Through Nayar’s pioneering efforts, he is putting into place a series of small changes that will have a potentially dramatic effect on how employees in the company work. In order for Nayar to deliver on that promise, he realized he needed to make changes inside the company. Nayar’s focus was to create an innovative company. Nevertheless, he was unable to do that without making sure that the internal organizational structure was innovative. Nayar’s objectives were to, reverse the pyramid and place the power in the hands of his employees, making managers accountable to their employees, instead of the employees accountable to their managers. Although his methods may be considered unique, drastic, and definitely risky, he had a few principles that would shape the changes, he was putting in place (Employees First, 2007): • Employees first and the customer second, was that of Nayar’s thoughts and that of spoiling the employees would make them believe that HCL was a great company to work for, his return would be that the employees would then deliver value. (Employees First, n.d.) • He also believed that simplicity would reduce the gap between a manager and their employees. Nayar wanted to reduce the restriction of information flow by setting up artificial borders......

Words: 1196 - Pages: 5

Premium Essay

Hcl Case Study

...Case Analysis: HCL transforming itself to compete with the Big IT Services Firms The underlying issue for HCL Technologies was how to achieve even better growth than it already was and to find a way to compete with the larger IT services firms. HCL’s CEO, Vineet Nayar believed if he could transform the way his company thought and behaved he could continually improve HCL. He wanted a company that continued to get better and evolve. He created this by changing the way people think and by leading by example, creating results through change in philosophy, change in transparency and change in what the companies actual product was. This organizational change was actually a change in behavior that was carefully crafted through a positive and reinforced change in culture and mindset. Vineet’s problem was how to accomplish this while he already had a successful company growing already. He was willing to take the chance to grow his company though change while most CEO’s would have sat back and enjoyed their thirty percent annual growth. Vineet understood that even though they had a good growth number that his company still lagged behind the larger IT companies and he wanted to make sure HCL reached that same level or better. Utilizing Lewin and Kotter’s models for change he was able to enable his employees the opportunity to become the focal point of his plan of change. He was successful because he championed the change, created plans and allowed his employees the......

Words: 891 - Pages: 4

Free Essay

Maple Retreat

...991 - HCL Technologies Limited was originally incorporated on 12th November, as "HCL Overseas Limited". The certificate of commencement of business was received on 10th February, 1992. On July 14, 1994, the name of the Company was changed to "HCL Consulting Limited". The Company changed its name to "HCL Technologies Limited" on 6th October 1999 to better reflect the line of activities of the Company. - HCL provides new technology development services to its clients. 1996 - The 50:50 joint venture with Perot Systems Corporation in the year, provided access to high value client base of Perot Systems. - The Company has one of the largest software development infrastructures in India. This state-of-the-art infrastructure, which comprises seven software factories, is designed to take advantage of the high productivity and scalability as well as the relatively lower cost of software development in India. 1998 - The Company started addressing the markets in Europe and Asia Pacific. - The company has a rich heritage in technologies like the Internet and e-Commerce, networking and internetworking, Internet telephony, telecom, embedded software, ASIC/VLSI design and testing, satellite communication, wireless communication and component based object technologies like COM, DCOM and CORBA. - The Company has the capability to work with a wide variety of computing platforms ranging from Open Client Server systems comprising all flavors of UNIX, Microsoft platforms,......

Words: 4787 - Pages: 20

Premium Essay

Hcl Employee Innovation

...* What was the strategy and culture of HCL Technologies in 2005? Focus on three phase strategy focussed on value centricity: * Phase 1 The company had to move up the value chain - Differentiate themselves and start going for larger , more complex engagements, * Phase 2 - Move from just Infrastructure and software business services to multi service offering - Form strategic partnerships with other companies so they could jointly offer more value and end to end services for customers. * Phase 3 – Innovation change the business model, 50% of revenue would come from service that did not exist in 2005 - Remove the silos - Encourage Collaboration (everyone working towards the same goals) * What are the key external conditions impacting HCL Technologies? * Indian government began to deregulate, multinationals like IBM returned adding more competition. * Customer wanted competitive advantage such as global IT Leader transforming themselves into service delivery businesses. * Companies were increasingly offshoring recoding and application development work to India to take advantage of lower costs * Given these internal and external environments how did Vineet Nayer (the CEO) use people management to drive performance?  * Making Employees “first, customer second” approach- Employee First’ is a management approach, proposed by HCL’s CEO, Vineet Nayar. It aims to turn the organisational pyramid upside down and make management......

Words: 319 - Pages: 2

Premium Essay

Analysis of Leaders

...What is innovation? The basic definition is the act of introducing new methods, ideas or products. When thinking about innovation, we have to think about innovative leader Vineet Nayar and how he introduced this concept to HCL in 2007. His strategic vision and global point of view propelled the then gloomy firm into the leader of the industry in a short amount of time. Factors in the global environment that influenced Nayar’s need to create a more innovative organization. Vineet Nayar was appointed CEO of HCL Technologies, an IT services provider at a moment when the company, although it was presenting revenue growth, it was losing market share and mindshare. Nayar (2010) mentions how the competitors were growing at a rate of 40% to 50% a year, while HCL was growing at a rate of 30%. The IT services industry was changing rapidly. Customers wanted long term partners that would provide end to end services. These factors alongside the traditional pyramid organization that HCL had influenced Nayar to transform the company into what was known in 2009 as India’s best employer. The company was able to triple their annual revenue and double their market share. Nayar embrace the culture of Employees First Customers Second, this practice was about alignment towards a common goal and making sure everyone is involved. An engaged organization is one where people are aligned towards the organization’s goal, and where management is in the business of making sure they have the......

Words: 1095 - Pages: 5

Free Essay

Future Changes-Technology

...Paulla Fowler Message to Prepare for Future Challenges March 11, 2012 MBA 6006 Nayar at HCL Technologies prides himself and his office on being transparent. They encourage their employees to be responsible for their actions: Through the value portal where employees and customers collaborate together to develop new innovations. With the improved use the of Blue Print portal for the main managers peer-to-peer reviews to create new innovations. To the various forms of internal and external messaging used on a local bases to improve overall employee passion and customer satisfaction. In 2006 the CEO had recast the role of his office and transferred the responsibility for change on to his employees for many initiatives. One example is that of the value portal. The company wanted to change the relationship with their customer by enabling them to be more responsible for their partnership with the company. Nayar wanted his customers to be actively involved while also challenging his employees to go beyond their defined roles and responsibility. He accomplished this by creating a portal that could be used between customers and employees. This portal the “Value Portal” allowed customers to evaluate and rate the new ideas that HCLT employees generated. The portal was very successful and hundreds of HCLT customers join and thousands of ideas were generated with a potential savings of hundreds of millions of dollars(Nayar, V. 2010) . With this success Nayar felt his......

Words: 1265 - Pages: 6

Free Essay

Analysis of Leaders in Innovation

...introduced this concept to a failing organization, was an innovative leader named Vineet Nayar. In 2007, Nayar was named CEO of IT Services and Outsourcing Firm HLC Technologies. With his strategic vision and global outlook, he catapulted the then dismal firm into the leader of the organizational pack in a short amount of time. In the beginning of Nayar's 2010 article "A Maverick CEO Explains How He Persuaded His Team to leap into the Future”, he describes his appointment as President of HLC technologies as a “leap to safety.” (Nayar, 2010) It became apparent that there was something he needed to do to change the interface of this company. He began to create a vision, but knew that it would not take place without some major adjustments. When one thinks of innovation, it is a term used to described new ideas and new beginnings. One who introduced this concept to a failing organization, was an innovative leader named Vineet Nayar. In 2007, Nayar was named CEO of IT Services and Outsourcing Firm HLC Technologies. With his strategic vision and global outlook, he catapulted the then dismal firm into the leader of the organizational pack in a short amount of time. Vineet formulated the” employee first, customer second approach” and took HCL to be one of the most successful IT outsourcing businesses in the world. It worked magic at HCL and the company created 34% percent revenues even at the time of turbulence (sparks.wisdomjobs.com). Key insights from his approach were: 1.) Be......

Words: 2205 - Pages: 9

Premium Essay

How the Best Indian Companies Drive Performance by Investing in People

...Leadership style of Indian CEOs find echo in the words of Mr. S. Ramdorai, the former head of Tata Consultancy Services, when he said of his company’s success,“It’s all about human capital at the end of the day.”. The authors of the case also find that Indian business leaders emphasize upon the social mission of their work. According to them Indian business leaders regard Corporate Social Responsibility (CSR) as a key part of social mission and employee motivation. Achieving CSR targets is monitored regularly by 40% of Indian companies while only 17% of US companies report regularly paying attention to this goal. Most of the western CEOs single-mindedly pursue shareholder value while ignoring social concerns. CEOs like Vineet Nayar (CEO of HCL Technologies), Ratan Tata ( Chairman of TATA Group), Azim Premji (Chairman of Wipro Ltd.) are the shinning example of Indian CEOs who are Transformational Leaders and take a long-term, internally focused view. Mr Vineet Nayar, for instance, invited employees to evaluate their...

Words: 1298 - Pages: 6