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Vineet Nayar, former CEO of HCL, wished to destroy the office of the CEO within 5 years by drastically changing the company culture to prioritize employees over the company. He sought to invert the organizational structure so that decisions were made by employees on the front lines and the CEO became irrelevant. A survey of Indian leaders found they valued envisioning the future, inspiration, talent development, and core values more than Western leaders, who focused on short-term shareholder interests. Indian leaders also motivated employees through creating a sense of mission, transparency, empowerment, and extensive training.

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Mwo Presentation

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Saksham

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ARTICLE REVIEW

Interview of Vineet Nayar, Former CEO, HCL

• When he was asked by an interviewer, what he wished his greatest legacy to be in 5
years?

He replied, “ That I have destroyed the office of the CEO.

What he mean by saying this?

He was saying that in this 5 year of tenure he have changed things drastically and he led
to a charge that give rise to the company’s bracing motto, “ EMPLOYEE FIRST,COMPANY
SECOND”
• He said that he sought enough transparency and empowerment in the company
“that decisions would be made at the point where the decisions should be made”.
That is by employee, where the company meet the clients.

• He said “ the organization would be inverted, where the top is accountable to the
bottom and therefore the CEO’s office will become irrelevant.
A Research on Indian leaders

A research team interviewed senior executives at 98 of the largest India- based

companies. The survey included companies like Infosys, Tata, Reliance, M&M and among
others but none of the organization suggested that there company had succeeded
because of the efforts of a top team.

Skills Indian Leaders Value Most:

• 61% of Indian leaders said envisioning and articulating a path to the future, strategic
thinking, guiding change.

• 57% said being inspirational, accountable, and entrepreneurial.

• 52% said supporting careful talent selection, grooming, and practices that advance
business goals.

• 43% said optimizing organizational structure and articulating core values.

• 22% said understanding competitors and markets; managing outside relations.

DIFFERENCE BETWEEN INDIAN LEADERS AND WESTERN LEADERS

INDIAN LEADERS WESTERN LEADERS

1. Indian Leaders take an internally 1. Western Leaders focus more on

focused, long-term view and put external demands- regulatory concerns,
motivating and developing employees the board, and shareholders.
higher on the priority list than short- Shareholder interests are their number
term shareholder interests. one concern.

2. Indian leaders see their role in strategy 2. Western Leaders often leave it to profit
development. center heads.

3. Indian leaders make aggressive 3. Western Leaders are more of the

investments in employee development, mindset where they tell employees the
despite tight labor markets and end goal and trust them to find the right
widespread job-hopping. way to get there.
Leadership Lessons from Ratan Tata

 Ratan Tata set a new strategic course for the Tata Group when he joined in 1991.

 At the time it was doing no business outside India. Against some internal opposition,
he asserted that the company had to go global, in part to reduce the risk of
dependence on a single country’s economy.

 This globalization was accomplished not by an explicit, careful strategy but by Ratan
Tata’s personal vision for how to compete across international markets.
Motivating Employee

 Assessed by the Multifactor Leadership Questionnaire (MLQ), the most widely applied
tool in the United States.

• The Bosses of Indian companies scored high on “transformational” or “charismatic

leadership”-designed to encourage employee to take care about the goals of the leaders
and the organization.

• The Bosses of U.S companies scored high on “Transactional Leadership” -motivating

employee to act in the interest of the business by striking deals with them (IF YOU WANT
A PROMOTION MEET THESE SALES TARGET).
Inspiration from the Employer to Employee

The leaders surveyed attributed the success of their companies to Employee’s

positive attitude, persistence, and sense of reciprocity, which the executives
inspire in four specific ways.

1. Creating a sense of mission

2. Engaging through transparency and accountability

3. Empowering through communication

4. Investing in training
Creating a sense of mission

• Sense of mission is the means whereby enhanced human performance and quality
of life is achieved. Not goal setting, rather a place of whole hearted commitment
aligned with highest values.

• Indian Leaders are involved in CSR Activity: In India, CSR is reputational asset.
Investing in community services and infrastructure, investing in Human capitals.

• Unlike the feel good statements that Western companies make about, say, improving
customers’ lives, the social missions of Indian companies are integral to their
strategy and often the route to profits.
Engaging through transparency and accountability:

• Indian leaders also build employee commitment by encouraging openness and

reciprocity.

• They look after the interests of employees and their families, and implicitly ask
employees to look after the company’s interests in return.

• HCL’s “Employee first, customer second” policy, supported by initiatives designed to

make employees feel more personally responsible for the company’s offerings and
give them a voice with upper management, does exactly this.

• Vineet Nayar’s public 360 degree feedback system is another example.

Empowering through communication:

• So that engagement will translate into action, Indian leaders go to considerable

lengths to empower employees, although this challenges the traditional.

 Quality Control Tickets:

• Can post problems related to quality

• Can post problems related to management
• Can post problems related to their bosses

 Valuing employee’s suggestion and giving them credit:

• Make them feel involved

• Giving them a sense of satisfaction for the job well done
Investing in training:

• Both qualitative and quantitative data show that Indian companies invest heavily in
employee development—often more than Western companies. This is partly to ensure
that employees have the knowledge of their work, but it’s also designed to strengthen
their commitment to the company.

• Indian leaders were asked in an open-ended question about their human

resources development, their responses consistently touched on four themes:

 Managing and developing talent

 Shaping employee attitudes
 Managing organizational culture
 Internationalization
• Statistics also suggest that about a quarter of new hires in the United States
received no training of any kind in their first two years of employment. In contrast,
Indian companies take an aggressive approach to training, despite—or perhaps
because of—a competitive labor market in which employee turnover is estimated at
close to 30%.
Conclusion

 The practices that define Indian leadership are not new, individually, they’ve been
effective in a range of circumstances. Indian leaders simply combine them in a
coherent package and consistently give them high priority.

 Creating a real sense of social mission, whereby employees can feel that their work
has impact, is a harder but achievable goal—as is becoming a role model for
employees.

 Western leaders would do well to understand the managerial approaches that have
fueled the rise of India’s largest companies, and might adapt them.
THANK YOU