The premise somewhat provocatively named employees first, customers second is that often most value in companies is generated at the bottom layers of the pyramid and that it is exactly those people there that should be empowered by management, so as to deliver the maximum value to the customer. Employees first customers second each company should undergo a mirror exercise on a regular basis to identify the true situation within the company. Employees first, customers second by vineet nayar full. Turning conventional management upside down, he describes how hclt successfully left behind outdated 20th century management practices and. The first three subsidiaries of parent hcl enterprise were. Hcl technologies limited, is an indian multinational information technology it service and. Vineet nayars employees first, customers second efcs is a first person ceo account of the transformation of their enterprise. Employees first, customers second strategic management. Mashable is a global, multiplatform media and entertainment company.
The first step is to decide what kind of new customer is needed. Turning conventional management upside down by nayar, vineet isbn. Adopt the philosophy of employees first, customers second, and throw all of their weight behind it. Jul 20, 2010 vineet nayar, ceo of hcl technologies, ltd. Employees first, customers second free download as pdf file. Employees first, customers second vineet nayar tedxaix. 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. At hclt, vineet nayar adopted an employees first structure in which management is accountable to employees, as well as the other way around. Convincing your customers that they are more important to you than they are to any of your competitors. New customer acquisition is the driver of business growth.
Using transparency to build trust reliability intimacy self determination credibility 5. The first restriction refers to situations where, within three years of the purchase of the shares, there is a major change in the trade, for example, in the products or customers of the business. Feb 02, 2009 employee first, customer second efcs is a radical new philosophy of hcl technologies. Employees of a company must come first and the customers come second. Tim is a manager at a local marketing group and consistently keeps his door closed, signaling to his employees that hed prefer not to be interrupted. Depending on which industry you work, customer acquisition is 525 times more expensive than customer retention. One such ideaputting employees first and customers secondsparked a revolution at hcl technologies, the it services giant. And getting new customers through the door is tough work. Innovation on the customer acquisition front is needed in. This is only the first tier, and then you can consider the second and third ones i. Tips to bring in new customers its much cheaper to keep an existing customer than to acquire a new one. For hcl chief executive vineet nayar success means employees.
And imagine, that youre standing on employees first, customers second by vineet nayar. No one just buys steel or a machine tool or a truck. In this candid and personal account, vineet nayarhclts celebrated ceorecounts how he defied the conventional wisdom that companies must put customers first, then turned the hierarchical pyramid upside down by making management accountable to the employees, and not the other way around. Dell benefits in first year after emc merger with sales up. Many organizations have mastered the digital experience for their customers customers can purchase products, interact with customer service to answer questions, and find the status of their orders. A substantial account that does not pay is no customer. Then each company should find its own methods and catalysts, like those employed by hclt, to increase transparency. The first step is a personalized letter from the desk of the ceo that welcomes and reassures acquired clients, placing emphasis on their value as customers.
Employee first customer second linkedin slideshare. Dont forget the sales team after a merger bob hatcher. The most popular question we received is what does the acquisition mean for the employees financially. It is our view that the changes proposed by you would not constitute a major change in the trade. Change its form into what nayar calls a highperformance team. Mar 29, 2012 mashable is a global, multiplatform media and entertainment company. Employees first, customers second book by vineet nayar. Vineet nayars turnarond story is one of the masterpiece of evolving nature of. Unless you have a plan to retain your sales force on the day of the merger announcement you are likely to lose key salespeople and probably many customers.
Not only will they be trying to steal your customers, but theyll try to steal your best sales reps too. Edupristine if i were to ask a college senior student about what time of year sends the coldest chills down his spine, he would certainly say that he could certainly name one particular moment. Merger, acquisition, and international strategies free. Turning conventional management upside down nayar, vineet on. Down a business book authored by the ceo vineet nayar encapsulating hclts. Employee first customer second employee first customer second worlds most modern management idea for tune magazine. Sergio marchionne, ceo of chrysler group, demonstrates handson leadership with his employees. How could a new manager use vineet nayars principle of employees first, customers second efcs. Its the cheapest way to affect your bottom line positively. When you want to sell a product to new prospects, your most difficult task is to win their trust.
Vineet nayars employees first, customers second the. Vineet nayar is the former ceo of hcl technologies, founder of the sampark foundation and author of a book that is considered as a revolution in management, employees first, customers second. About the authors andy rachleff is wealthfronts cofounder and chief executive officer. Nayar emphasizes the literal definition of that term. If you keep employees happy, they would treat customers right and should have a pleasant and fruitful understanding with them turning into more sales and thus more money. Why shareholders and customers come first while employees get. Employees first customers second by vineet nayar rajs lab. Oct 09, 2010 for hcl chief executive vineet nayar success means employees first, customers second vineet nayar is head of indias largest it services company, hcl, and he starts from the premise.
Check out vineet nayars profile on owler, the worlds largest communitybased business insights platform. The first significant sign of things to come unfolded back in 20. Applying leadership pricipals6 1\1 question 1 vineet nayar. Powered by its own proprietary technology, mashable is the goto source for. In order to expand your business you can do a few things. Poor communication after a merger drives customers away. He serves as a member of the board of trustees and chairman of the endowment investment committee for university of pennsylvania and as a member of the faculty at stanford graduate school of business, where he teaches courses on technology entrepreneurship. In this candid and personal account, vineet nayarhclts celebrated ceorecounts how he defied the conventional wisdom that companies must put customers first, then turned the hierarchical pyramid upside down by making management accountable to the. Mirrormirror creating the need for change learning to face reality rising through the ranks. In this chapter, vineet nayar, ceo of hcl technologies, a global it services. Which management function deals with grouping tasks into departments. As for which should come first, second, and last, well, youre not going to like the answer. Unless you have a plan to retain your sales force on the day of the merger announcement you are likely.
He is the author of employees first, customers second. Adding onto this, he says, the other thing being missed out is innovation on the customer acquisition front. Effects on customers and suppliers due to mergers and. Jun 09, 2015 vineet nayar is the former ceo of hcl technologies, founder of the sampark foundation and author of a book that is considered as a revolution in management, employees first, customers second. What is nayars ideas about human resource development being transferable to other industries and other. For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Turning conventional management upside down hclts success resulted from putting employees first, especially those working in the value zone where company and customer interact. Aug 12, 2010 the key constituents of any company are its shareholders, customers and employees. For hcl chief executive vineet nayar success means employees first, customers second vineet nayar is head of indias largest it services company, hcl. Recognizing and providing learning opportunities as needed. Ipos tend to get all the headlines, but in many cases technology companies are acquired. Powered by its own proprietary technology, mashable is the goto source for tech, digital culture and entertainment content.
In this candid and personal account, vineet nayarhclts celebrated ceorecounts how he defied the conventional wisdom that. Contents about vineet nayar introduction chapter 1. Then each company should find its own methods and catalysts, like those employed by hclt, to increase transparency and trust and cultivate a culture for change. Applying leadership pricipals6 1\1 question 1 vineet. As vineet nayar describes in this refreshing book employees first, customer second. New customers as an asap customer you get access to our online catalog, stock availability virtually 24 hours a day, 7 days a week, allowing you to order parts at your convenience. Vcbacked indian entrepreneurs start shopping for growth. Of the acquired clients surveyed, 48% had either already switched banks or reported a switch was likely. Begin retention strategy early during mergers, acquisitions.
In order to really grow, a company will need to make two changes. And imagine, that youre standing on employees first, customers second by vineet nayar full. Vineet nayar competitors, revenue and employees owler. Vineet nayar s employees first, customers second efcs is a first person ceo account of the transformation of their enterprise. Almost twothirds of respondents who switched to another bank did so within the first month. Retailers for the past several years have seen consumer spending stagnate and while the nrf estimates that retail sales in 2016 will grow 3. For hcl chief executive vineet nayar success means. This example just illustrates the number of companies that might be involved. Be the first to ask a question about employees first, customers second. Everyday low prices and free delivery on eligible orders. In this candid and personal account, vineet nayarhclts celebrated ceorecounts how he defied the conventional wisdom that companies must more than 100,000 copies sold. What is nayar s ideas about human resource development being transferable to other industries and other. Once your customers took the risk to try your product once, they want to be able to predict what will be the experience of coming back. Fortunately, with a little imagination and experimentation, not to mention advertising, acquiring new customers becomes an important pillar in boosting sales.
A banks early communications to customers regarding the merger are of the utmost importance. You can raise your prices, or you can go find new customers. May 01, 2010 buy employees first, customers second. The key constituents of any company are its shareholders, customers and employees. Features like interchange, buyers guide and order history allow you to sell more and save time managing your account. Employees first, customers second by anindya chakravorty, vineet nayar from. Why shareholders and customers come first while employees. The book is a refreshing and frank look at the challenges facing leaders looking to transform their company, culture and employees.