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Business Model Transformation: Empowering Employees to Focus on the Customer

A three-page excerpt from our 21-page Best Practice Guidebook:

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Business Model Transformation: Empowering Employees to Focus on the Customer

Best Practice Guidebook

* The value zone is where the essential work of the company occurs. HCL defines the value zone for the IT outsourcing industry as the interface between employees and customers.

• Break up large-scale transformations into incremental changes, rolled out over time. Large ideas, such as a change in service model, provide a singular goal that everyone within the company can get behind. However, these ideas tendtobeoverwhelminganditcanbedifficulttounderstandone’sroleinthetransformation.Aseriesofsmallcatalystsareeasiertomanage,buildmomentumfromsuccessstories,andprovidetheflexibilitynecessarytoreact to challenges and unforeseen side effects.

In2005,HCL’srevenuewasstillgrowing,butitwasnonetheless losing market share to competitors. To regain its competitive edge, HCL needed to reassess its strategy and better capitalize on its strengths.

HCL Technologies Limited

INDUSTRYInformation Technology

REVENUE (2011–12)$4.2 billion USD (as of June 2012)

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HCL invests in a collaborative, employee-focused, customer-centric business model by:

• Realigning the organization to support the value zone*

• Establishing a culture of transparency and collaboration

•Developing tools and processes to support and empower employees operating in the value zone

HCL’sKeyLessonsLearned

SolutionChallenge

CorporateStrategy

Corporate Development

Marketing

CompetitiveIntelligence

MarketResearch

SalesLeadership

R&D/Innovation

Investors/Finance

CEO

CorporateStrategy

ApplicabilitytoExecutiveFunctions

Develop the Strategy » Prepare the Company for Change » Transform the Business Model »

Solution Components

AskTheThoughtLeader(ATL)WebinarRead a summary of the question-and-answer session with HCLLISTEN TO THE ATL NOW »

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Source: HCL Technologies Limited; Growth Team Membership™ research.

HEADQUARTERS Uttar Pradesh, IndiaGEOGRAPHICFOOTPRINT Global

OWNERSHIP PublicEMPLOYEES (2012) 85,300

Overview Page . . . . . . . . 3

Develop the Strategy . . . . . 4

Prepare the Company for Change . . . . . . . . . . 7

Transform the Business Model . . . . . . . . 8

Business Results . . . . . . 13

KeyLessonsLearned . . . . 14

FrequentlyAsked Questions. . . . . . . . . . 15

Supporting Tools & Resources . . . . . 18

Change Management Personality Archetypes 18

Make a Difference (MAD) Jams 19

EPIC Survey: Themes and Indicators 20

Employee First Councils 20

Employees First, Customers Second 21

Contents

Business Results Resources Required

• People: Create a team of transformers who embody and champion the change

• Technology: Provide portals to increase collaboration and enhance the employee experience

• 444% increase in annual revenue (from June 2005 to June 2012)

• 176% increase in market capitalization (from June 2005 to June 2012)

• 40% increase in revenue per employee

• 26% reduction in employee attrition rates

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The contents of these pages are copyright © 2013 Frost & Sullivan. All rights reserved.

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Source: HCL Technologies Limited; Growth Team Membership™ research.

Overview Page

Tactic: Foster Collaboration

Activities• Facilitate collaboration between

the value zone and customers• Encourage employees to create

and execute new initiatives that benefitcustomers

• Incorporate the tactical perspective of employees in strategic planning

Tactic: Support and Enable Employees

Activities• Employ a problem-solution

ticketing platform to appraise enabling functions (e.g., HR and Finance)

• Implement a 360-degree development survey of managers

Tactic: Engage Employees

Activities• Survey employees on their

motivators • Conduct mentoring and training

programs

HCL follows a three-step business model transformation process to prioritize employee empowermentBusiness Model Transformation Process

Develop the

Strategy

Transform the

Business Model

Activities• Assess current business performance and environment• Use a “Mirror, Mirror” exercise to create companywide

awareness of HCL’s current situation and need for change• Identify the company’s competitive advantages and create a

long-term strategy to maximize its strengths

•Determine how to bridge the gaps between the current and desired state

ObjectiveDevelop a long-term strategy to focus the business model on HCL’s competitive advantages.

Prepare the Company

for Change

Tactic: Establish Trust and Transparency

Activities•Distribute company and project information • Facilitate two-way communication between employees and

senior management

ObjectivePrepare the company for change and initiate a culture shift.

ObjectiveReverse accountability, empower employees, and transform the business model over time.

Reverse Accountability Empower Employees

Year Two

Year One

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Business Model Transformation: Empowering Employees to Focus on the Customer

GTMandPrithviShergill,ChiefHumanResourcesOfficeratHCLTechnologies, present this best practice where Prithvi shared his key lessons learned and participated in a Q&A.

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