MGT300 Assignment: Leading and Managing Organizational Change at HCL

This report provides a detailed analysis of the organizational changes implemented at HCL Technologies, focusing on the leadership of CEO Vineet Nayar. It examines the context of change, the specific changes implemented, and the processes involved, including the introduction of the "Mirror-Mirror" process and the "Employees First, Customers Second" approach. The report analyzes the emotions associated with the change, the factors contributing to these emotions, and the identification of interventions. It also discusses the nature and strength of resistance to change, the effectiveness of the change process, and recommends alternative change interventions. The report highlights the shift from an IT services vendor to an end-to-end global IT services partner and emphasizes the importance of transparency, employee engagement, and the impact of these changes on HCL's market position and financial performance. Finally, the report concludes with a discussion of the success of the change process and the potential for future innovation through disruptive strategies.

LEADING AND MANAGEMENT OF
ORGANIZATIONAL CHANGES
NAME OF THE STUDENT:
NAME OF THE UNIVERSITY:

INTRODUCTION
• Change is something that brings in transformation in the different business processes, structure, strategies,
technologies and different kinds of the operational changes.
• Apart from these transformation, change also relates to the impact that these changes brings within the business
organization.
• The following report has emphasized the importance of the organizational changes and has explained in detail the
changes by citing the example of HCL technologies which has been in the forefront of organizational changes.
• The appointment of CEO Vineet Nayar in the organization and the changes he made has been extensively
highlighted and analysed in this report.
• The analysis has been divided in many aspects and sub aspects which has further made the analysis compact.

CHANGE CONTEXT, CHANGE CONTENT AND
CHANGE PROCESS
• Innovation has brought in new ideas, thoughts and new changes and has led to a major improvement
or major outcome that has helped determine the needs of the organization in the most efficient manner.
• HCL technologies appointed Vineet Nayar as the CEO in the year 2007.
• The CEO was responsible for implementing a new strategic vision in the company and brought in a
number of different changes that helped the company to grant a global outlook in the organization.
• The global outlook in the organization helped the company to become not only one of the best in India
but also helped the organization to challenge global companies like Accenture in the world IT market.

CHANGE CONTEXT, CHANGE CONTENT
AND CHANGE PROCESS
• After having a detailed reading of the case study it can be seen that the CEO Vineet Nayar realized that it was not easy to jump into
the future rather than having a detailed acknowledgement of the management and the employees.
• The presence of the historical and situational factors helped the CEO to take the ultimate call regarding the same.
• The CEO divided the factors in Point A and Point B which were totally important for the success f the organization in the most
effective manner.
• The Point A was based on the identification of the current situation and then sensing the danger. Though the market revenue of the
company was rising at the time, the gradual loss of market share to other companies in the IT sector was a point to worry.
• The second change that was needed in the company or the Point B was identified after analysing the Point A which was the need for
the change in accountability.

OUTLINING THE EMOTIONS ASSOCIATED
WITH THE CHANGE
Emotions and Expression of these emotions
• Emotions played a major role in the implementation of the different changes within HCL. The first thing that the CEO did
after being appointed was to identify the need and purpose for the changes.
• He went to different global locations of HCL and visited all the different offices of the company. This visits were categorized
by meeting with senior managers and small groups of employees.
• Such kinds of meetings helped the management to gain the necessary momentum that led to the actual change. The CEO at
the very beginning started noticing the emotions of the people he interacted with.
• There were mixed emotions amongst the people after he mentioned about the changes.
• A group of people seemed there was no need of a change as there was no such danger, some of the people were sceptical
about the change and they wanted to wait and watch while some others could sense the danger and agreed for a major
change in the organization.

OUTLINING THE EMOTIONS ASSOCIATED
WITH THE CHANGE
Contributing factors to the emotion
• As said earlier there were mixed emotions among the people of the organization when Vineet Nayar asked for new changes
within the organization.
• On one hand there were some people who did not supported the change, while there were others who supported the change
and believed that a change was needed to cope up with the future challenges of the business organization. Thirdly there were
some who had the feeling of wait and watch.
• This mixed emotions were the major pillars or the contributing factors that led to the change.
• The emotions in each of the cases was logical as because the ones who supported the change had the feeling that the company
was having a very slow growth which could not meet the global requirements of the changing IT market, while the others who
did not supported the change believed that until and unless all things were ok, there was nothing to change at all
• These mixed emotions were the result of the absence of any major transformation in HCL over a long gap of years.

OUTLINING THE EMOTIONS ASSOCIATED
WITH THE CHANGE
Identification of the intervention
• The CEO of the IT services in HCL Vineet Nayar decided to use these emotions and create a basis through which the change
can be brought in the company.
• The formal meetings with the supervisors and the employees helped the CEO to come up with a new process named Mirror-
Mirror which was quite different from the other companies as it helped the employees of the organization to held up a mirror
to the company in a completely new manner which made them capable of verifying the exact reality of the current situation.
• This helped the employees to easily identify the facts and the situation and analyse the total system in the most effective
manner.
• This process helped the employees to identify the present issues and gradually every one of them agreed that there was indeed
a change required within HCL. This concept led to the growth of the EFCS approach and helped the company to add value to
the employees.

IDENTIFICATION AND DISCUSSION OF
UNDERLYING PERSPECTIVES
• The aim of the CEO was to develop a collaborative strategy that could address each and every of the needs and desires of the
employees as well as increase the performance of the business enterprise.
• The first major change that was proposed by him included the change in approach of the enterprise and making HCL from an
IT services vendor to an end to end global IT services partner which could help the organization capable of competing with
the giants like IBM, Accenture and EDS.
• The EFCS approach of the company was employed in the organization that made the business to transform its accountability.
• The new changes compelled the managers to be accountable to the employees. This upside down change in the trend help the
organization to be more flexible and brought in major changes.
• The changes identified in this time was equally important for the organization and helped the business to gather the pace of
the organization in the smartest manner. These underlying perspectives helped the management to get rid of different issues
and make the company better over the period of time.

NATURE AND STRENGTH OF THE
RESISTANCE TO CHANGE
• There were some major strength and resistance to the changes that were proposed by the management of the
business organization.
• The announcement of the change process itself was a major problem for the organization as because there
were a number of mixed reactions from the employees.
• There were people who opposed the change as they believed that all was quite good in the organization.
• However, the nature and strength of the resistance was not quite severe as after the introduction of the
Mirror-Mirror process, the employees were convinced about the need for a major overhaul of the enterprise.
• The major factor to the less resistance in the change process was that HCL took the challenges as major
opportunities that helped them to smoothen the approach to the change.

OUTLINING THE CHANGE PROCESS
• The change process started with the bridging of the gap in between the CEO and the employees of the organization.
• To make the employees feel comfortable, Vineet Nayar organized informal meetings with the managers and the
employees and also started new forms of recreational processes to attain the trust of the employees.
• The first thing in the change process was the sharing of the financial data where the CEO started the change by
sharing his own financial data in the intranet.
• Such a step was a welcome process as all the others gained the trust from such a move and followed him
accordingly. Apart from this, the CEO also opened up a new service desk which helped the employees to file
complaints and make suggestions by opening a ticket.

EFFECTIVENESS OF THE CHANGE
PROCESS
•The change process was quite effective in nature as the results were the greatest proof of the same.
•The changes that were effected within the organization was quite effective and helped the business to gain competency amongst
the employees of the business. The major change that was brought in by the new change process were the transparency of the
board.
•The constant progress meetings, sharing of the financial data, sharing of the growth data, the performance of the organization,
an improved communication process was the major factors that played a strong role in the business effectiveness.
•The change which was effected in the year 2005 showed its results in the year 2006 as the company started to win number of
global IT contracts.
•In the same year the company closed five major outsourcing deals that amounted to a total of $700millon.
•Thus the positive step of the CEO to think and implement the change process at a much earlier period helped the organization
to ensure success for the change process.

ALTERNATIVE CHANGE INTERVENTIONS
TO BE RECOMMENDED
• Though the change process was a huge success, it would be better for the management of
HCL to continue with such changes and follow the process of disruptive innovation.
• The process of disruptive innovation can be continued as the IT sector considering the
continuous changes occurring in the business as a result of changes in the demand of the
customers.
• The focus of HCL must shift to providing more value to the products and services that they
offer and concentrate on more such innovations that can help them to retain their unique
status in the business market.

CONCLUSION
•The following report has presented a great picture of the innovative process and changes that have been
adopted by Vineet Nayar, CEO of HCL IT industry.
•The report has identified the changes by describing the factors and the different aspects associated with
the business organization.
•The changes that has been proposed here has helped to identify the different needs of the modern day
changes and the importance of such innovative changes.
•The thorough analysis of the report can help the readers to gain a detailed idea on change management.
•The report will surely feature as an informative one for the future studies and research on the same
subject.

REFERENCES
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