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Using An Exercise On The Business Environment

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Using an exercise called Mirror Mirror, HCL CEO Vineet Nayar proved to his employees that internal forces existed that required an organizational response. With this technique, Nayar forced his employees to talk honestly as they saw the truth of their business environment. This enabled him to learn, for example, that most employees knew the financial status of their incumbent projects, but had little participation or insight into the performance of other teams or even the entire company. As further discussions and structural realignments revealed, middle management positions were less exciting and offered little organizational value, leading to job dissatisfaction and increasing turnover as these managers left HCL for greener pastures. Overall, a lack of transparency contributed to an unvoiced malaise (Nayar, 2012).
Nayar recognized that losing both market share and mindshare represented an external force in the area of market change. The competition was growing at 40%-50%, yet HCL’s revenues were only increasing 30% annually. This difference forced Nayar to realize that the business model for the worldwide IT services industry was in flux. Instead of the traditional service provider with a menu of work packages to choose from, customers now wanted a long term partnership with a provider who could globally manage entire IT processes. Finally, discussions with managers revealed that customers did not perceive HCL as a major player in the industry, excluding HCL from

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