Foundations of Leading InnovationsIntroduction In 2008, the economic downfall that hit many people as well as organizations affected leadership within the companies. Many companies were forced to downsize and required many employees to take up the slack of other departments. Nayar was not trying to downsize HCL he wanted to find ways to help with growth and maintain employees along with the changes that needed to take place in the organization In 2007, Vineet Nayar became the CEO of the IT Services and Outsourcing Company, HCL Technologies. The company was struggling but Nayar was able to turn the company into a leader in a short period of time.” Nayar created the “employee first, customer second approach, this approach made HCL one of the most successful IT outsourcing business in the world. There were four keys to HCL transformation: “1) Create trust through transparency-find ways to build a culture that consist of trust so people could adapt to change 2) Talk honesty, face the truth 3) Invert the organizational pyramid, make support functions and executives accountable for frontline workers, rather than the other way around, 4) Recast the CEO’s role, transfer the ownership of change from the office of the CEO to employees” (Nayar, 2010).Factors of Global Environment In 2008, when the economy took a major hit Nayar was able to turn HCL around from $700 million-dollar company to a $2.6 billion-dollar company. This enabled the company to make money and not have to downsize the workforce, like many others companies had to resort to. Nayar wanted to implement his EFCS (Employee first, customer second) around the world not just in India. In America most, companies always say the customer is always right and always first, but Nayar took a different approach that worked well in India and decided it could work worldwide. Nayar adopted the five discovery skills that were demonstrated in the book “Innovator’s DNA” written by Dyer, Gregersen, and Christiansen. The five discovery skills are: associating, questioning, observing, networking, and experimenting. He adopted these skills and created innovation throughout the organization. Nayar involved the employees in the decision-making process, to come up with the ideas, and to solve issues within the company. This was changing the businesses pyramid model. Instead of the frontline workforce being accountable to upper management, Nayar wanted the opposite, so that senior management could become accountable to their employees.What Nayar found to be vital was involving the employees in the decision-making process, to come up with creative ideas to solve the issues within the organization. This would mean the business pyramid would not be a traditional one anymore. Nayar wanted to change the way employees were being accountable to, Nayar wanted senior management to be more accountable to the employees versus the other way around. Nayar book titled, Employees First, Customers Second: Turning Conventional Management Upside Down, “he believed by putting employees first and allowing them to be a part of the decision-making process this could help improve customer service quality and increase the sales of the organization. Nayar argues that the aptitude, ingenuity, and enthusiasm of HCL’s more than 65,000 employees lead directly to greater value for customers, and thus better performance” (Kleiner, Sehgal, 2010). “Nayar doesn’t claim to be the best CEO but he is a good leader who recognizes the importance of his employees and how much value they can add to the success of the organization” (Nayar, 2010). This has the employees more engaged, and they see that there is a culture of trust in the workplace, this will enable them to provide better service, and when management has to be more accountable, the company can create a better value to their customers and become more innovative in their organization.Use of Five Discovery Skills When innovators combine different pieces of information that results in a new idea is known as associating. People use skills to connect questions, problems or ideas. Ask questions that are challenging the norm and open a bigger picture is known as the skill of questioning. Innovators observe the behavior in people. Innovators love to experiment, by trying new experiences. Seeking diverse and engaging in networks to get different viewpoints is referred to as networking. Nayar used all of these discovery skills in HCL organization to help them during this very difficult time. Nayar knew several aspects of the organization need to change the direction of the organization. Losing shares in the market, competition within the market could hurt, and anytime change is happening within a company customer become weary and some loss may occur during the transition part. He was taking a big leap, that would turn the organization into an innovative company. By using associating he recognized the lack of trust from upper management down to the employees was lacking. Employees were only able to look at financial information that pertained to only the projects of their own. The employees never really knew that the organization was doing. Nayar decided that financial should be available to all employees throughout the company. By allowing the financials to be available the employees can see what their department is doing and how the company is doing and where there is room for improvement. He used questioning to ask questions relating to how business is done to today, why this way, and how they could make change or how business could be disrupted. By meeting with the employees, they were able to input what they think was wrong with the company and how the company can be improved and how to go about implementing the ideas to improve the organization. Nayar set up an online system that would allow employees to make complaints or suggestion. He had a process how to handle each ticket and made sure the management responded to every ticket, when a resolution was suggested the employee who created the suggestion they would be the only one who could accept. “This has not only helped resolve issues but it effectively puts managers in the service of frontline employees” (Nayar, 2010). With the recession he was able to use the suggestions of employees and find alternatives to cut costs.Nayar used networking and observing when he first came to HCL. Observing is very simple, Leaders observe and watch the market that HCL was in, including competition within the market, customers, products, services, technology being used by competitors. By observing one can gain ideas on new ways of doing things. Networking allows the innovators to find time to test and experiment ideas through a network of individuals with various backgrounds. When Nayar first became CEO, he was meeting with various people asking questions and gaining feedback and realized that HCL was a traditional pyramid business. Nayar experimented by revising the current comprehensive 360-degree performance reviews. The current system in place had employees questioning what was the purpose of the reviews and what was the gain from doing so. This happens in a lot of companies if employees do not understand the purpose of the information being asked from them. So, “Nayar decided to allow employees who had provided feedback to a manager to see the results” (Nayar, 2010). Nayar was questioning employees for ways to help get the organization through the rough times, that he did not want to lay employees off. Mostly offered suggestions for cost cutting, others focused on increasing profits. The result out of this questioning built trust with employees and they were eager to help get through the rough times of the organization.Opportunities for Improvement “According to Nayar three fundamental areas that a leader should succeed at are: “1) you must provide new levels of satisfaction to your customers, 2) bring new products and services to the market, this shows customers that you are committed to innovation, 3) innovation should be effective in the marketplace where it is accepted” (Nayar, 2010). To engage creativity, it’s important for employees to be passionate about the company they work for and the products and service that the company offers to the public. By changing some of the ways HCL was operating helped employees be more engaged and passionate about HCL and made them want to do better to increase business and provide greater value to their customers. Nayar ran with this, he changed a traditional pyramid model to a business model that put HCL on top. To keep the company an innovative company he needs to keep his EFCS mentality. Employees love to feel and know that their ideas help within the business growth, and with growth this means new products and services must be innovated. With the success of the using the discovery skills Nayar must continue to ask questions, examine current conditions within an organization and realize change is needed and making changes helps the organization reach the next level of success. Three key leadership traits, “Nayar believes will never go out of style. Trust, mentorship, and empathy are traits that a good innovative leader possesses and uses to build a successful business” (Nayar, 2010). I believe Nayar can boost HCL Technologies and any other business he chooses with his EFCS model to reach the next level of innovation. I do believe if more companies would implement Nayar’s EFCS system their employees would be happier, more engaged to do a better job in representing their company that is positive and when employees are happier they trust the products and services and can sell their products and services in a more positive and enthusiastic atmosphere. Employees just want to know they work for a company that trusts them and their ability to do a good job representing the company they are employed by. By showing the employees, they are appreciated and that their ideas and suggestions are important and are welcomed can have the employees thinking more in a positive manner and encourages them to become more engaged in the everyday business decision-making process.Summary Whether it is a job or a person’s personal life, change is inevitable. Change is usually for the good in the end, but it is how one handles and accepts the change. In the workplace having an open-door policy can make employee’s feel valued and that their ideas are important. Most of the time employee’s just want to have a voice. Since most of us live and work in a diverse world we all have had to adjust to change and the way people understand one another, by asking questions, observing, networking all parties involved can learn how to handle and communicate in a way that others can relate and maybe help each other adapt to the changes taking place.