Book review: Employees First, Customer second

Jwritings - Employee first, Customer second
EFCS - Vineet Nayar

Author: Vineet Nayar

Price: 499 INR (Audio version of the book)

Employees First, Customer Second (EFCS) is creating buzz for a while now! Coined by HCL vetranVineet Nayar, this term has created a bunch of different interpretations, perspectives and discussions. I picked up audio version of this book from Reado, mainly to bring pace  to my reading habit. Listening to audio book, especially in busy city traffic conditions, makes it a enriching experience by putting better use of time. Also audio book helps to read book faster than the traditional printed books. I used to be an advocate of buying books in printed form and have them as my priceless possessions. Thanks to the busy schedule at work and home kindled me to explore innovative ways to keep my reading habit alive. EFCS is the first audio book I have heard (long time back I did similar stuff with one of the Tamil books, by having them listen during travel), so listening to an English audio book is also equally interesting experience.

Coming to EFCS book, author Vineet Nayar shares his transformational journey in HCL using EFCS framework. HCL, one of the top notch software services companies in India, steadily lost its stream both in business and people elements.  HCL was not considered as a preferred employer by many of people due to not so favorable work environment. Based on his experience by meeting HCL employees Vineet felt many key issues, which pushed him to make transformation in HCL by implementing EFCS. Fundamentally Vineet believed what he describes as ‘value zone’, which is nothing but an employee linkage with its customer. This critical zone where  customer interacts with software service organization like HCL to get the necessary assignment done. For customers, they see the software company and its value generation thru its employees who are interfacing with him/her. So from the organization perspective, if employees in the value zone, who can be enabled and empowered, would result in more value for customers. In order to take care of its customers better organizations need to work with their own people, to put them first before customers. Because every action they do eventually gets converted into value for customers thereby maximizing many things which include employee satisfaction, customer value, revenue, profitability etc. This doesn’t mean providing a second-class treatment to customer, but in order to give them first-class treatment, employees of the organization needs to be taken care.

With this basic principle, Vineet goes on executing EFCS by taking few important but bold changes in the organization. To start with, he gets his top 100 leadership team to buy in this concept of EFCS by creating what he describes  as ‘blueprint’ meetings.  Initially most of the senior leader were not able to buy in this idea with ‘yes, but….’ Thinking, but over a period of time, they start seeing the value of doing such things customers. Second, Nayar believes in order to implement EFCS successfullym, he need to build trust in the organization at all levels. In order to open up conversation with employees, he creates an internal two-way transparent web based system called ‘U and Me’ by openly making conversation with employees. Employees at any level can open conversation with the CEO (Nayar himself) or any of the senior leadership team. In case of specific questions, pertaining to a business line, the corresponding leader would provide the response. When this started off, initial days were more of making it as a compliant box, but over a period of time it turned out to be a platform to build two-way transparent conversation for building trust in the leadership. After attaining certain level of maturity, Vineet opened up this platform with a new item titled ‘My problems’ where he started seeing suggestions/inputs from employees for the issues faced by him with respect to competitors, business changes/challenges, media etc. He started getting very creative and workable suggestions from employees from all the level, which in turn created more belief in the leadership among employees.

Third, internal systems were tuned to support/empower and aid people in the ‘value zone’. For example business support functions like HR, finance, operations etc, need to be tuned for getting support to the business needs by creating a ticketing system with automatic upward escalation. This also broke the traditional power center concept by truly tuning the organization to be people centric, thereby eventually passing on the value to customers. In the same lines, Vineet opened up business results (revenue, profit, current status etc..) data of individual businesses as a transparent information across the organization. Every individual group/team were able to clearly see where their team/business stood with respect to other organizations. While this created some initial issues (ex: information leaking to the press, as HCL is a public listed company) but this created a sense of urgency and bias to take action for improving the situation. It took about four years time for Vineet to implement EFCS in multiple phases and he also explains the benefit/results of this framework in terms of revenues/profits/employee satisfaction. By taking certain big bold steps like EFCS, HCL is transformed into a multi billion dollar organization with capability to handle larget client base with higher criticality.

When such large scale tranformational changes are implemented, any organization will have its mixed response from people side. When I talked with some of my HCL friends about EFCS they were not so excited but admitted that it did had impact in the way HCL has done business. It required lot of courage backed with common-sense to float something like EFCS, but Nayar’s no non-sense common sense approach was really interesting to challenge stereotype management thinking.

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