The document discusses the "Employee First, Customer Second" (EFCS) philosophy implemented by HCL Technologies. EFCS aims to empower and delight employees so they can better serve customers. It established initiatives like automated help desks, transparent performance reviews, and employee councils. Surveys show EFCS reduced attrition while increasing productivity and revenue per employee. The philosophy positions employees as the top priority in order to maximize customer satisfaction and business outcomes.

1. Employee First - Customer Second
November 05th, 2011
HSBC Business School
Mr. Miguel Cortes S. / Executive Coordinator of Presidency 1
HSBC Business School Mr. Miguel Cortes S. / Executive Coordinator of Presidency / Restricted for Company use Only November 05th, 2011

2. Employee First – Customer Second
► “World‟s most modern management idea” Fortune Magazine
Quick Facts:
► One of the most important companies as HCL Technologies which is a leading global
IT services company with over $2 billion revenues.
► In February 2005, Vineet Nayar, CEO, HCL Technologies announced a radical new
philosophy, “Employee First, Customer Second” (EFCS).
► Through this philosophy the aim was to create a unique employee organization, drive
an inverted organizational structure, create transparency and accountability within
the organization, and encourage a value driven culture.
Why it began?
► HCL realized that in service industry the value gets created not in the back office but
in face to face interaction between the customer and employees.
► Hence it is important to empower employees so that they deliver more value to the
customers. When an employee is delighted, he will delight the customer.
► This gave birth to a path breaking philosophy called: 'Employee First, Customer
Second„, termed by Fortune as "The most modern management idea“.
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HSBC Business School Mr. Miguel Cortes S. / Executive Coordinator of Presidency / Restricted for Company use Only November 05th, 2011

3. Employee First – Customer Second
► Five pillars of Employee First philosophy
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HSBC Business School Mr. Miguel Cortes S. / Executive Coordinator of Presidency / Restricted for Company use Only November 05th, 2011

4. Employee First – Customer Second – Employee First Initiatives
► Smart Service Desk HSBC IT Employee Solution
• An automated query resolution mechanism for employees. SSD enables
employees raise their concerns for adequate redressal in just three clicks. On an
average 31,000 tickets, buy orders or invoices are raised every month.
► I4excel HSBC IT Employee Solution
• Employee performance portal which handles end to end appraisal process of all
employees. 24,000 appraisals are completed in 30 days in 2007 vs 9,200 in 45
days. i4excel transparently shares ratings and views of manager‟s manager
(reviewer) with the employee.
► Directions HSBC Team building
• “Directions” is an annual company-wide event that takes strategic discussions
out of closed-door meetings to all employees. The CEO and the leadership team
present at these meetings share the vision and strategy of the company as well
as respond to questions in interactive sessions.
• Directions allows everyone in HSBC to speak the same language and understand
how their individual contributions fit in a larger organizational framework.
• The CEO HSBC and his Executive Coordinator takes two weeks each year to
prepare for the event and spends another two weeks attending Directions events
across the world.
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HSBC Business School Mr. Miguel Cortes S. / Executive Coordinator of Presidency / Restricted for Company use Only November 05th, 2011

5. Employee First – Customer Second – Employee First Initiatives
► U&I HSBC IT Employee Solution
• A two way dialogue mechanism between CEO and the employees. Nearly 90%
questions have been answered by the CEO.
• He spends 7 hrs. in a week replying to the queries raised. U&I started a reverse
blogging, where in CEO posts questions to the employees.
► EFC HSBC Solution
• Employee First councils work on goals that are of common interest to all
employees and also help maintain a balance between work and life.
• The councils allow employees to unleash their creative talent. Last year over
1,500 events were conducted by EFC councils.
► Women First Council HSBC IT Employee Solution
• The purpose of this council is to focus on women development and to create an
inclusive, supporting and caring environment. A women exclusive website was
launched which has information of all women related policies, safety and security
measures, work-life balance techniques.
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HSBC Business School Mr. Miguel Cortes S. / Executive Coordinator of Presidency / Restricted for Company use Only November 05th, 2011

6. Employee First – Customer Second – Employee First Initiatives
► Career Power HSBC IT Employee Solution
• A comprehensive career planning and development program, which provides a
framework where each employee is empowered to plan desired career path.
► O2 league of Extraordinary HSBC IT Employee Solution
• O2 is a system created in HSBC to recognize high performers. The league
constituted those employees who have been outstanding performers since last 2
years.
► Xtramiles HSBC IT Employee Solution
• HSBC‟s created a unique reward and recognition portal where all employees can
see extraordinary efforts & performances and appreciate them at a click of a
button. The purpose of Xtramiles is to ensure timely and public instantaneous
recognition of employees who have displayed exemplary performance.
► MITR HSBC IT Employee Solution
• MITR lends helping hands to all HSBCLites and their family members by
providing them expert counseling 24X7 on any issue concerning them.
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HSBC Business School Mr. Miguel Cortes S. / Executive Coordinator of Presidency / Restricted for Company use Only November 05th, 2011

7. Employee First – Customer Second – Employee First Initiatives
► Genie HSBC IT Employee Solution
• The personal assistant, the all purpose coordinator, the private shopper, the
entertainment guide, the travel planer, located within the office premises &
programmed to take any request. Genie can manage all trivial and not so trivial
chores.
► Weekly Polls HSBC IT Employee Solution
• Polls are conducted on weekly basis to gather employee feedback on various
issues. The results are shared on the intranet and guide decision making.
► Catalyst HSBC IT Employee Solution
• A employee driven team building program, catalyst enables much of the desired
work-life balance for his/her team by rolling out various activities in a year.
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HSBC Business School Mr. Miguel Cortes S. / Executive Coordinator of Presidency / Restricted for Company use Only November 05th, 2011

8. Employee First – Customer Second – Training
► HSBC has adopted a number of innovative methods of training and
developing talent within the organization. The extensive program includes:
• Five methods: Computer Based Training, Instructor Led Training, Web Based
Training, On the Job Training and Blended Learning.
• Four tracks: in Campus, Fresher, On-going, Re-skill.
• Three streams: Technical Training, Domain Training, and Behavioral Training.
• Two channels: Leaders Teach (an internal training program), Talent
Transformation and Entrepreneurship Development Team.
► Results
• HSBC‟s attrition rate has dropped significantly for nine consecutive quarters.
• Employee utilization rate and revenue/employee has seen an increase.
• Through Employee First initiative, HSBC strives to provide excellent human
resources leadership and expertise to the organization, and also attract and
retain a workforce that is diverse, inclusive and committed to creating quality
customer service.
• „Employee First‟ is featured as the „World‟s Most Modern Management Idea‟ by
Fortune Magazine and termed as „Disruptive Force‟ by a leading analyst group.
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9. Employee First – Customer Second – Training
► Open 360 degree feedback HSBC IT Employee Solution
• HSBC‟s annual survey of 20,000 people across the company rates 1,500
managers on 20 aspects of their performance.
• There is nothing unusual in running such a process. But what is unusual is that
the results of the survey are aggregated and published online for every
employee to look at.
• This is a simple change in practice, but one with profound consequences. For the
manager, there is nowhere to hide if he or she gets negative feedback. Most
managers take the feedback very seriously and make changes; a few choose to
move on.
• 360-degree feedback is not linked to the annual appraisal or to the
compensation package. It is open for everyone to see, and that is enough to
encourage changes in behavior.
► Key Learning's
• Technology: Leverage technology to make life simple. Automate process and
empower employees to raise there voice.
• Changes: Put in place a series of small changes that will potentially have a
dramatic effect on how people work.
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HSBC Business School Mr. Miguel Cortes S. / Executive Coordinator of Presidency / Restricted for Company use Only November 05th, 2011

10. Employee First – Customer Second
HSBC Employee First initiative
reveals how innovation
can apply to organization
systems as well.
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HSBC Business School Mr. Miguel Cortes S. / Executive Coordinator of Presidency / Restricted for Company use Only November 05th, 2011