Change Management in HCLS Rebranding a Transformational Journey Essay


In mid-2000s, India ‘s taking IT Company HCL Enterprise ( HCL ) all of a sudden was gaining that in malice of standing established as a prominent and of import house in the sector of IT, it was non marketing itself astutely as a consequence of which its equals were hogging the spotlight even being at the same degree of supplying services as it was. The rivals were bringing trades which it could hold, had it been marketing every bit conspicuously as they were.

The house that had started fabricating processors in-house when IBM was coming into image in analogue in planetary market, has more than three decennary heritage, and felt that switching the branding paradigm from ‘volume ‘ to ‘value ‘ and from ‘process ‘ to ‘people ‘ would assist recover its constitution as a company that in some manner or the other could touch the lives of people. The company felt the demand to unify its assorted concern sections and connect with all its stakeholders. In parallel to this idea, EFCS[ 2 ]manner of working and selling came to the bow of all its schemes and had started being the talk of the town.

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Through out India and overseas, HCL has been regarded as India ‘s original IT start-up. Back in 1976, Shiv Nadar, Ajai Choudhary and a few enthusiastic enterprisers came together to develop micro computing machines 3 old ages in front of IBM and in the parallel times of Apple! It had already started interrupting the computing machine market in India and it maintained its gait of laterality for rather a few old ages until it reached a tipping point where it felt the demand to spread out its range and of class, concern. The concern was traveling to be dead otherwise – some twenty-four hours or the other – in future. Get downing FY ’05, HCL kicked off many enterprises to reinvent HCL as a valuable planetary Technology and IT trade name in the ever-changing & A ; dynamic IT landscape. The generation of this rebranding was a simple one – to inform and arouse HCL ‘s cardinal stakeholders ( clients, employees, stockholders ) to acknowledge HCL as one of the iconic Indian trade names that symbolized the spirit of an germinating India.

In this instance survey, we ‘ll discourse how HCL underwent rebranding from a place Personal computer shaper into a taking IT company in India.

Rebranding at HCL

In order to retain the religion of clients under such hard fortunes, Mr Vineet Nayar[ 3 ], who had merely joined as the President in 2005, had to chalk out schemes. Vineet, along with his squad of senior direction had started brainstorming through thoughts and proposals and eventually had zeroed in on switching the branding paradigm from ‘volume ‘ to ‘value ‘ and from ‘process ‘ to ‘people ‘. In fact, ‘volume ‘ to ‘value ‘ paradigm displacement was possible through branding the administration as ‘people ‘ centric which was realised true subsequently by Vineet. He had understood that the critical points of value coevals were people i.e. the ‘Employees ‘ . How and why he came down on this theoretical account when the full industry was concentrating on procedure and Customer as its precedence? How would concentrate on ‘people ‘ aid HCL trade name its name when ‘Customers ‘ are the 1s through whom we were gaining our staff of life and butter? However, at that point of clip, ‘Focus on Customers ‘ was taging the journey of transmutation at HCL.

The CEO in Vineet and perchance his competent squad of directors had to plan a theoretical account of a trade name that had to be strong and lasting. They had to outrun their peers/counterparts in the market. There was one pharmaceutical company HCL drew their inspiration from. That company had established itself through assorted unit of ammunitions of reappraisal and feedback that it took from its clients and by bit by bit working upon them. Consequently the house was successful in turning most of its clients into items of selling for itself. It had achieved this strong suit siting on the moving ridges of strict client interactions as already explained above.

HCL ‘s Verticalisation scheme

At around 2005, HCL had become a dominant participant in banking and insurance sectors. However its concern was turning with a important rate with many other service sectors perched comfortably on its already-strong shoulders. With this gross assurance under its belt, it started geting legion small/medium sized companies across different approaching verticals. Gradually, HCL ‘s sphere was turning out to be a mix of varied civilizations which was so advancing this as a reasonably good diversified administration. Ironically, or should we state, as genuinely a consequence of this, the state of affairs was turning critical as it started losing its focal point and needed clasp over one of its premier verticals – Banking and Insurance.

Some serious program needed to be chalked out to win back the stableness and the balance. Vineet was already cumulatively collating his ideas and experiences but was yet to set something solid in practise. The clock stroke right one all right twenty-four hours and Vineet wanted to believe in EFCS and implement it. Details in the following session, and what served as the gunpowder to trip the fire.

Vineet ‘s program on HCL Enterprise – EFCS

In the earlier yearss of his calling at HCL, Vineet was taking the in-house Infrastructure start-up called HCL-Comnet. Although this start up went on to going the best substructure services company subsequently, it had seen disruptive yearss in its younger yearss. At one point of clip, many of its clients were already upset.

Once, while Vineet was poising one purportedly unhappy client of his company, he was cheerily surprised that the client was truly happy in many aspects of the service it had been touched upon which was non seeable to the top direction at a superficial degree. More surprising to Vineet was the fact that after acquiring the salutation from Vineet, the client executives had about wholly neglected him as the head-man and were directing most of their remarks and regards towards the nucleus undertaking squad. The squad was being praised where the supposedly-leader of the herd, Vineet, received minimum mentions. This meeting proved to be turning point in Vineet ‘s doctrine of direction. He realised that the true value-zone for the client ballad at the employees ‘ perimeter and the locality. And ‘Employees ‘ , non a 1000 in-place procedures are the true value Godheads.

The Management realised that authorising employees made sense towards adding value to its service and which farther could besides be considered as a stigmatization subject to court clients to the true value-zone.

Therefore was born the ‘EFCS ‘ doctrine. This doctrine was marketed inside the office and exterior every bit good – at all those possible client and potential-customer exhibitions – the prominent of them being the ‘Global Meet ‘ that is organised by HCL every twelvemonth pulling concern intellectuals and legion concern moguls from around the universe. As a portion of the EFCS thrust, legion subjects and executions started happening inside the company that catered to assorted demands and comfort of employees. It was in belief that one time the employees were happy, value creative activity would ever be merely a byproduct.

But was it traveling to truly work? Were there any constrictions to get the better of? What were the challenges that now appeared apparently tall to be scaled?

Vineet and his squad wanted to advance their doctrine through the voice of their ain employees ‘ .Yet they knew really good at the beginning that employees would non take anything for granted which even had a odor or feel of pretension or opacity. As awaited, many of them had a intuition that this EFCS material was merely a promotional catch from the council chambers of the corporate. Nevertheless, many embraced the thought of being an “ HCLite. ”[ 4 ]The corporate moralss and values have to vibrate in resonance with the employees ‘ ain value system and it was really improbable a possibility that such a immense employee base would be swayed and influenced by a pitch that rang doubting. Influencing the mentality of 55,000 employees spread over 17 states in a 32-year-old organisation was non traveling to be expected as an easy undertaking.

Stakeholders ‘ Opinion on EFCS ( Employees, Customer, Shareholders )

Although the EFCS motto seemed highly glamourous and had the potency of striking the right chord with the employees and the customers/potential clients with equal appeal, much was left to be seen on how the construct went down with all the stakeholders. HCL ‘s selling squad started interacting with their cardinal stakeholders to cognize how rebranding with EFCS doctrine is working to the melody of their demands. The outlooks were high, but execution and the preceding perceptual experiences were the challenges in front. Surely, it was interesting Waterss in front.

In the first stage, HCL ‘s selling executives made a study to cognize employees feedback on EFCS. Entry degree junior employees were non yet in complete perceptual experience of EFCS doctrine and they were someway anticipating this to be making something with their wage hikings.

HCL carried over a study on its EFCS stigmatization enterprise and circulated a questionnaire to over 100 chaps across all the degrees in the administration. Merely 50 % of them responded which indicated towards a fact that EFCS policy was non traveling down good down the pharynx of the employees and they were doubting about believing and about execution of a construct so off-beat and unusual as this when about the full industry was keening about the ‘Customer is GOD ‘ take on service.

In a measure towards understanding client sentiment, HCL direction squad examined client satisfaction tonss[ 5 ]. It covered geographically spread clients across its line of operations to collate positions.

The sentiments that were collated from assorted clients were of assorted sort. A few of them sought to be in a manner of partnership with HCL. Thus the expected focal point was more on value than volume. The important difference they observed with HCL after 2005 was majorly in footings of answerability, capableness, invention & A ; entrepreneurship. They did non experience being obscured to the executing of their contracts and felt HCL was rather crystalline to them in arousing the costs and nest eggs.

Another client felt that the productiveness was lower with HCL employees even though their enthusiasm degrees were high and at par with other Service biggies. HCL-account caput was turn outing to be truly proactive but at that place seemed to be no such system or procedure in topographic point to do certain that proactiveness was scalable to the grade. Customer believed that, at that present, company ‘s relationship with HCL was between a seller and a spouse. HCL was seeking to offer multiservice attacks, but the civilization of the undertakings that manner was killing the integrated attack. Multiservice offerings used to hold liabilities of their ain. They perceived HCL employees as enthusiastic but “ sensible self-seekers ” -resulting in accomplishment mismatches. In kernel, they were seeking to get down bytes that they could n’t masticate which really meant that they were urgently assuring to follow with the undertakings they were non wholly ready with.

Analysts had a negative sentiment on HCL ‘s rating of portion options and administering inducement to employees, within the net income and loss reported for peculiar verticals.

In add-on, direction statements such as “ hiring was slow as we could make the same work with fewer people ” surprised institutional equities. Furthermore they were discerning about how the EFCS stigmatization policy was traveling to hit the clients. Vineet was openly marketing this scheme in all possible planetary forums and was ask foring treatments for the same. Investors felt that a important shackle to the image and concern could be inflicted if EFCS mantra is repeatedly elicited before the customers/potential clients who may experience offended by it. And yes, that turned to be true. There were assorted response to this policy, many were positive, but still many were glowering bad and were walking out. In the class of enlargement and selling of this policy, HCL had lost a few trades as the concerned clients were non convinced plenty. Possibly, it was to be seen that HCL had something else in destiny – if some sour, some were likely to be sweet excessively.

In a important disclosure, some analysts had noted that prior to 2005 there were many enterprisers within HCL who prevented HCL ‘s working without any variegation and free mobilization of ideas and thoughts from the value zone “ EMPLOYEES ” .

Gross growing v/s border betterment for the major Indian IT services was looked upon by stockholders. Share of grosss from new concern for HCL and rivals was analyzed by investors. Quarter-on-Quarter growing rates for HCL compared with the mean quarter-on-quarter growing rates for the top four Indian IT services participants in 2008 was analysed.

The Road Ahead

In a ‘fight or perish ‘ concern infinite of that period, there was agnosticism drifting about about how such apparently a soft attack of ‘EFCS ‘ was traveling to cut through the stigmatization fiercenesss of legion houses prophesying similar constructs.

Anyhow, to implement EFCS, HCL had come up with assorted Employee friendly motions such as SSD ( Smart Service Desk ) , 360 grade feedback ( feedback for directors ) , Genie ( Employees ‘ personal service desk ) , U & A ; I ( treatment forum with the CEO ) and many more. However all major houses across the Earth were by this clip, already implementing some or the other such theoretical accounts and there was a feeling at the beginning that the constructs were non really new to the industry. Nevertheless, the execution of the mentioned theoretical account was a existent challenge. Many companies had taken the spring to implementing them, but there were perchance many loopholes to be plugged here and at that place. They were non in executing in the fullest of their signifiers. HCL had to stand tall and stout in implementing all of its EFCS enterprises to the upper limit of extent. Merely so could it walk the talk and derive the existent trust of its stakeholders and possible clients.

The route was in front. The way was set. It had to walk past all the obstaclesaˆ¦ And more significantly, it had to walk its talk.



Table A

Customer Satisfaction Scores

Based on HCL Internal Portal

Table Bacillus

QoQ Growth of HCL in 07-08

Based on Internet beginnings.

Table C

Gross across different Verticals at HCL

Based on HCL Annual Report 2005 & A ; 2009.

Questions for Discussion

Why after so many old ages, HCL did experience the demand to rebrand its communicating run? Discuss.

Inspite of being in the IT industry for 33 old ages, HCL still is non the lead in the market portion. Comment your positions?

How HCL verticalisation scheme worked with EFCS transmutation? Discuss.

How existent was the EFCS transmutation? Was HCL walking the talk, or was it all smoke and mirrors?