What’s common to these firms?

2. 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 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 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

3. Guarantees Made to HCL Employees • We will not give you responsibilities • We will not respect your aptitude • We will not treat you equally

4. 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

5. Stepping back in Time STATE OF BUSINESS IN 2005

6. Customers Employees Competition 2005 HCLLeadership Shareholders State of Business - Assessment of 2005 • 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 • Employee driven market conditions • Recruitment, engagement and attrition needed new approaches • The “Me too” phenomenon and the need to differentiate • The value volume conundrum – linear extension of business model largely through application business • Strong aspiration quotient to be leaders in the service space • Increased revenue growth rate and profitability to be in line with peers

7. The Big Change HCL TRANSFORMATION

8. 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

9. 4. If Employees add the ultimate value.. What should the role of management be? Enable, Engage & Empoweremployees

10. Vision, Mission & Values Strategy Creation Cycle of Transformation Implementation Challenge Change Management Implementation New Products New Propositions New Markets How the business runs Engagement Empowerment Owners of change “How” of strategy “What” of strategy

11. From From From Effort andInput Focus DiscreteServices Traditional ADM Services To To To Output /Outcome Focus IntegratedServices New Services From From From Indian IT competition Factory approach Aspiration To To To Global & Indian IT competition Individual Identity Empowerment and Enrichment What Changed in HCL C U S T O M E R E M P L O Y E E C O M P E T I T I O N L E A D E R S H I P -4-

12. Departing from Traditional Leadership Model Customer Customers Employees The Value Zone Employee Enabling Function Management

13. Maximizing the WOW in the value zone The Value Zone Why Employees First ? Customer 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

14. EFCS is not…… If we took away all the enabling functions, the fancy infrastructure and air conditioning, would Employee First still exist???? EFCS is about the individuals, their individuality and their diversity

15. 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.

16. 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 Recasting the role of the CEO Reversing accountability by bringing the bottom to the top Decentralizing decision making

17. EFCS….inspiring change

18. Our Approach-achieving EFCS @ HCL

19. 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.

20. 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.

21. Employee Passion Indicative CountEPIC 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 Planning & Organizing Creativity Interest

22. 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.

23. 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.

24. 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.

25. But does EFCS Really work?

26. Proof of the Experiment In 2005 HCL , In 2011 HCL , 79,000 Employees $ 5.7 Bn in Revenues 18000 Employees $ 700 Mn in Revenues CAGR of 30 % Operations in 31 Countries CAGR of 30 % Operations in 18 Countries

27. EFCS: Impact Across The Organization

28. Evidence of BUSINESS SUCCESS:

29. 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.

30. 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%. In a survey done by Forrester (external organization) among clients served by multi vendors, HCL has been voted as No.1 by its customer in application outsourced

31. Transformational Impact Created by EFCS

32. HCL- Large Pharma Relationship Growth Pattern 2010 2009 2008 2007 • GDAM_Integration • Infosec_Sustenance Engg • GSHardware_Apps • HPC Support • Large Pharma HPC MRL DBA • MRL_BasicResearch&Licensing_M&O • Large Pharma O2C • SAP Htr Support • SM SOP Creation Phase • Data Centre Consolidation 2006 • 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 • 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 • 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 Architecture- METIS • App Rationalization Strategy • MSD Singapore • Volume Deal • MSD EMEA PDA SFA • DBA support 2005 • EAI – TIBCO • GHH IS - MSI Packaging • MRL- CDS support, CALM, Partnernet • GHH - M&O • MSD Thailand – DW Integration • IS AP –PS HCM • IS EMEA • IS EMEA - HCM Support • ESS – Multiple Application Support • Short listed - Global Vendor • MRL Testing • IS AP – Payroll support Team Size 700 Team Size 1075 Team Size 34 Team Size 225 Team Size 450 Team Size 790

33. KeyPerformanceParameters Service Quality Resource Mix CSAT KEY HIGHLIGHTS • HCL CARES C SAT Rating of 6.2 on a 7 point scale for Nov 2010

34. ValueDashboard(2010) Value Scorecard - for December2010 Division Wise Idea Split Total Ideas generated 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 Idea/Value Split across different areas

35. Service Maturity Map Managed Services (HCL BA-IT Framework) • Integrated Service Management Managed Strategic Sourcing • Discrete Managed Services Co-Sourced • Project –based Staff Augmentation Business Alignment • Transactional Service Maturity

36. Studio Workshops– Towards a New Thought Relationship 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

37. Taking EFCS Beyond Boundaries

38. 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

39. There is something unique about HCL’s management model that the world is talking about…

40. 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

41. 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 believeHCL may very well be one of the contenders to lead the IT services world of thevery near future.” “HCL’s Employee First as a new and radical management philosophy which willcatch on with the world sooner or later.” HCL Technologies is Best Company(listed in India) in Investor Relations

42. 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…

43. What if we invest in our employees,andthey leave?

44. What if we don’t invest in our employees and, they stay ?

45. Thank You For your attention and participation! Th Twitter: Anand__Pillai