LEADERSHIP TERM PAPER ON SHIV NADAR Submitted to:

Mr. Raj Kumar Agarwal

Submitted by :
S.Naveen Kumar Reddy (10227) T.K.Naveen Kumar (10228) Neha Singh (10229) Niladri Gosh (10230) P.Thaneesh Kumar (10231)

Table of contents

Contents

ABOUT SHIV NADAR:..................................................................................................................................... 2 Contribution to company success:................................................................................................................ 3 Change Criteria: ............................................................................................................................................ 4 Unique Ideas that helped Shiv Nadar to deliver results: .............................................................................. 5 Leadership Style: ........................................................................................................................................... 6 Leadership Skills Approach: .......................................................................................................................... 6 Trait Theory:.................................................................................................................................................. 7 Conclusion: .................................................................................................................................................... 8

ABOUT SHIV NADAR:

Shiv Nadar was born on 14 July 1945. Shiv Nadar received a pre-University degree in the American College, Madurai and degree in Electrical And Electronics Engineering from PSG College of Technology, Coimbatore. He began his career at Walchand Group's Cooper Engineering in Pune in 1967. He worked as an engineer with DCM Ltd. But the entrepreneur in Shiv Nadar wanted to set up his own business. Therefore, he along with six of his colleagues launched a firm making office products like copiers. He is the founder and chairman of HCL and the Shiv Nadar Foundation. He is an Indian industrialist and philanthropist. As of 2011, his personal wealth is US$ 5.6 billion. Shiv Nadar founded HCL in the mid-1970s and transformed the IT hardware company into an IT Enterprise over the next three decades by constantly reinventing his company's focus. In 2008, Nadar was awarded Padma Bhushan for his efforts in the IT industry. In late 1970s, when IBM quit India, Shiv Nadar's HCL stepped in to fill the vacuum. In a short span of time, Shiv Nadar has reached pinnacle of success by his hard work, vision, and entrepreneurial spirit.

Contribution to company success:

Shiv Nadar looked at marking a place in the global arena after having captured Indian IT leadership. HCL America was set up in 1989, to market HCL-made computers in the U.S.A. under the name of an American company with which HCL America had partnered. The deal didn't succeed.

In 1991 when the government liberalized the economy to provide a level playing field for foreign players. HCL joined HP and created a JV HCL HP Limited.

In the mid '90s, Shiv Nadar added sale agreement with Ericsson and Nokia to distribute their products in India.

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In 1995, Nadar set a target of Rs 100 billion as target for the HCL Group, a target his group will fall short.

By early 1998, Nadar had consolidated his business into five entities HCL Technologies (global IT service company), HCL Info systems (Indian IT hardware leader), HCL comnet (network services company), HCL Perot (IT applications) and NIIT (education services).

Nadar made an effort to bootstrap HCL with acquisitions in 2001. HCL acquired Apollo Contact center from BT and Deutsche Software Limited (Deutsche Bank's Indian captive software company) to address the BPO and Financial services market. Still HCL continued to underperform competitors through 2005.

Change Criteria:
The changes that he suggested for the organizations are: Nadar never lost sight of being a visionary. The corporate restructuring he undertook over the years resulted in several companies, each with a chosen professional head. The bearded high-tech entrepreneur nurtured HCL in his signature style of decentralized management, making it a billion-dollar group with 100 offices worldwide. In the process, he created wealth for himself, his associates and investors. Another trend-setting company he is associated with is NIIT Ltd, which framed the rules in India for corporate education by establishing a web of computer training institutes in the country before expanding overseas.

Unique Ideas that helped Shiv Nadar to deliver results:

He even ventured into granite business and was thinking of setting up an aquaculture project - that had become fashionable in south India a decade ago. "These were some of our mistakes. But then we were also quick to learn and exit," Nadar said. His original passion for computer hardware, he has his eyes set on the group's latest offering -- India PC, an inexpensive high-performance personal computer for the masses. Perhaps, that is the reason why he was the only person with whom Microsoft founder Bill Gates had a private meeting during his famous India visit in 1996. After fighting pitched battles to dominate the Indian hardware space, Nadar got there by 1987 after he founded HCL Info systems in 1976. By 1996 though, he figured while he was spilling blood over domestic spoils, the real war was waging elsewhere: Outsourcing.

He quickly reorganized and created HCL Technologies to take advantage of the software services opportunity. But Nadar made some strategic mistakes there. He believed the Y2K business was not worth chasing because it was low value. Everybody else though went after it because it helped them build strategic relationships with large American companies. In hindsight we shouldnt have missed it, says Nadar today. We were the most qualified for it.

In 1991 for instance, he got bored with selling. Shiv was taken aback, recalls D.K. Srivastava, senior VP at HCL Tech. His top sales guy didnt want to sell anymore. So Nadar asked Nayar to come up with a business plan, which he promptly did with everything from ready-to-eat omelets, aircraft manufacturing, and satellite-based communication systems. Nadar liked the last idea and HCL Comnet was in business with Nayar at the helm. He didnt realize it then, but Nadar had venture capitalized the future of HCL Technologies.

Leadership Style:

The benchmark which I will use is how well is this organization serving its stakeholders, and how strongly is it built to serve its stakeholders. See, stakeholders are basically three: the customers, the employees, the shareholders. We follow a principle of employee first. If we put our employee first, and if they are satisfied and they are happy, and if their aspirations are filled here, then they will do things which will be naturally making our customers extremely happy, which in turn will take care of the shareholder. This says about his employee orientation. He put a target of Rs. 100 billion for HCL group. This says about his task orientation.

Leadership Skills Approach:

Acknowledged as a visionary by the IT industry and his peers, Shiv Nadar has made daring forays based on his conviction of the future. At a time when hardware was the name of the game, he foresaw the huge potential in IT education and learning. This resulted in the birth of NIIT. Albeit a more recent entrant in the software services space, since its listing in 2000, HCL is already among top four Indian IT software majors in India. HCL's in-depth knowledge of UNIX led to the development of a fine grained multi-processor UNIX in 1988, three years ahead of Sun and HP. In January 2005 Shiv Nadar received the CNBC Business Excellence award from the Prime Minister of India. In February 2005 he was listed by India Today in the Power List of Indias leaders from all walks of life, for building a global IT Enterprise from scratch in three decades, creating valuable JVs and alliances with marquee partners such as Hewlett Packard, Cisco, Perot Systems, Deutsche Bank and NEC Corporation, among others.

Shiv Nadar was conferred the Padma Bhushan Award - the third highest civilian honor conferred by the President of India in January 2008, in recognition of not just his contribution to trade & industry in India but also his deep commitment to public good

Trait Theory:
Integrity: His honest work towards society is the biggest evidence of his leadership trait. In an interview with Forbes magazine he told that it is the time to give something to the society. He never felt bad as his peers leave him in a crucial time and made the technology learning hub NIIT. He only kept faith in his strategies. He employed Nayar as president of HCL Technologies in April 2005 to reshape the organization with his 'Employee First, Customer Second' philosophy, which placed the needs of the employee before those of the customer. The strategy was created to drive an inverted organization structure, create transparency and accountability within the organization and encourage a valuedriven culture. Intelligence: He is the pioneer of Computer Business in India. Starting life with a high package salary and a stable career he took the decision of making the HCL was an example of his intelligence. Through 1984, the company focused on designing microcomputers and writing custom applications for clients on these systems. When the Indian government liberalized regulations for import of technology, the computer market was in effect opened for adopting new global technologies. HCL utilized the opportunity to develop Personal computers solutions and UNIX platform based solutions. In the IT hardware business, the company opened a subsidiary called HCL office Automation that quickly became Indias leader in office solutions. By 1987, HCL recorded revenue of Rs 100 crores and featured as Indias number 1 company. Sociability: I am a product of education and I have felt its power in transforming my life. Therefore I established the Shiv Nadar Foundation with a vision to give back to the society what it had given me. His work for the education of India reflects the sociability trait of him. He created SSN Foundation in Chennai and right now it is situated in more than 4 states in country.

Determination: The determination level of Shiv Nadar can be seen in his endeavor to make the HCL Tech as one of the biggest company of India. After long years of working still he is driving himself to reach the different verticals of his dream. From the day one of making HCL a computer giant to creating a proper educational environment in the society in the form of SSN, he is working relentlessly. The foundation follows the route of Creative Philanthropy: the foundation's focus on education has evolved from Shiv Nadar's personal belief in education, as the single most powerful tool, for individual and social change. This has been fused with the need to fill the huge gaps that exist in India, in the realm of education. This form of philanthropy drives the foundation, towards the empowerment of individuals for social change - via transformational education. After missing the Y2K deal and application development and maintenance business in the era of 2000 his approach was like HCL actually missed the bus to become the Microsoft as they are in the operation from 1977. But due to his vision HCL came into the business in the year of 2002. Self Confidence: Shiv Nadar was confident enough about his decisions. In 1971 DCMs data products division was already doing some interesting work for the 4-bit microprocessor-based desktop calculators, which were the precursors to the computing machines of today. At the time of the advent of the 8 bit microprocessor in the 1970s, many people left their jobs, including Steve Jobs, Bill Gates as they believed that the microprocessor would change the world, and it did. This bunch also included me and my fellow founders.

This story says the confidence level he had to find out the opportunity to making it as the real one.

Conclusion:

As economies contract and the job environment remains challenged, we at HCL are committed to creating local jobs, contributing to the welfare of local communities and pushing the pedal on enterprise philanthropy in continuing cognizance of our social responsibility all these great words just define the leadership characteristics of Shiv Nadar. Starting a company with a handful

of capital and making it as the one of the top notch corporation of India is the example of his leadership quality. All these efforts result in the following: In 2008, Government of India awarded Shiv Nadar with Padma Bhushan, the third highest civilian award for his contribution to IT industry. In 2007, Madras University awarded him honorary doctorate degree (D Sc) for his contributions in promoting software technology. Nadar was also recognized as E&Y Entrepreneur of the Year 2007 (Services). In October 2006, Shiv Nadar received an honorary fellowship from All India Management Association-AIMA. May be the list will not end and his work also.