Hcl Case Study

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1. What were the challenges facing HCL Technologies when Vineet took over?

On April 5, 2005, Vineet began his tenure as president of HCL technologies. Vineet spent his first weeks travelling around India to HCL’s 300 locations to speak with its thousands of employees.

The challenges Vineet facing at take over as a president are listed below,

1. Customers were cancelling their contracts at the beginning of his role as a president.
2. Employees were not very serious about the target and competitions and not with motivation, they were in a feeling “it’s okay to lose”
3. The company lacked in Unity and integration internally among the crew / staff.
4. Challenges in the sales & delivery systems of the company.
5. Objections and obligations from the senior executives and few staff on the centralization of the company.

1. What were Vineet’s key moves? Of the many steps he took what struck you as the most important?

Once Vineet settled up in understanding the current situation of the company and after when he improvised and located the teams, In early July, 2005, Vineet convened a three day Blue print meeting of the company’s top 100 managers. At the meeting, he announced a new strategic direction of the company.

He rather stated,

1. HCL as a company rather than doing small project based works, we need to go for big deals like offer multi-service, unique propositions that would transform customers’ businesses, and need to differentiate ourselves.
2. We need to integrate and collaborate among the teams and across the company.
3. Vineet made executive set up goals for the coming year & work accordingly along with the plan to run the company by comparison between the internal groups of HCL.

Vineet asserted a three phase strategy focused on the value-centricity at the blue print meeting:

Phase 1: Build up the collaboration by rejuvenating the employees and improving operating efficiency.

Phase 2: HCL should form a strategic partnership with other companies so we could jointly offer more value and end-to-end services for customers.

Phase 3: A radical shift in the business model striving for a firm vision to materialize and concrete the idea with the industry changing.

Among the steps taken, the most important thought was “ we are not going to be a me-too player” which means that Vineet wants HCL to be diversified from the market and be innovative and that is obtained by the collaborations and integration across company and he wanted HCL to come up with a tagline “Employees first, Customer second”.

1. How effective has he been to leading HCL?

On April 5, 2005, Vineet began his tenure as president of HCL technologies. Vineet spent his first weeks travelling around India to HCL’s 300 locations to speak with its thousands of employees.

Strategy:

Vineet created a foundation by setting the strategy in a blue print meeting which was in early July 2005. A three phase strategy highlighted.

• Build up the collaboration by rejuvenating the employees and improving operating efficiency.
• A strategic partnership with other companies.
• A radical shift in the business model

Structure & the systems:

Later July, Vineet made number of changes designed to align HCL’s structure and systems with big-deals strategy.

He first organized the company around five lines of business (LOB) namely applications, enterprise consulting, technology, infrastructure and capital markets.

Next he introduced a new finance group that would directly participate with sales and delivery on bringing in value-added business.

Thirdly, he prepared a ground work for the Multi- Service- Delivery (MSD) unit, which he conceived as a separate organization. This unit would focus exclusively on winning and delivery big deals then integrating their learning back into the organization.

Fourth, Vineet began the implementation of consistent systems and processes across all of the LOBs.

The Intranet:

Vineet introduced a tool called Smart Service Desk from Comnet which was a ticket based online system similar to help desk that decreased resolution time and increased transparency in the problem-solving process.