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

3. 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

4. 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

5. 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

6. Core Values

7. Mind Behind EFCS
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

8. Why EFCS In HCL?
Year 2005 ,HCL had begun a series of experiments:
EFCS - turning the traditional management hierarchy upside
down
Aim –
to create trust grow through transparency
Transfer the responsibility to front-line employees

9. Contd…
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

10. Dare To Dream…
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‟

11. 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)

12. Profit And Loss Account
Year 2002 2005 2008 2011
Total 846.93 1508.55 4506.48 6995.30
Revenues
Total 390 1090.48 3388.43 5312.66
Expenses
Reported Net 396.55 329.27 780.65 1198.28
Profit

13. 8000
7000
6000
5000 Total revenues
4000 Total Expenses (in Rs.
Cr)
3000
Reported Net profit (in
2000 Rs. Cr)
1000
0
2002 2005 2008 2011

14. HCL Revenues (Year Ending June)
HCL Tech Revenues have grown by over 3.5 times since HCL
began its transformation journey in 2005

15. 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.

16. 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

17. Five Pillars Of Employee First

18. The EFCS Transformation

19. 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

20. .