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Vineet Nayar [Figure omitted. See Article Image.] There's a story about a physics student who interrupted a test being given by Albert Einstein to complain, "Professor Einstein, these are the same questions from last year!" To which Einstein responded, "Yes indeed, but the answers are different this time." In a business context, we know that question #1 for most organizations is how to create value. In that sense, the questions are the same. But given the wide-spread adoption of new technologies that permit customers, employees and other stakeholders to continuously participate in value creation, the answer is now different. To pass the test, executives must learn how to institute the practices and principles of co-creation throughout their organization.
And so, leading organizations are learning how to use the engagement experiences of individuals and communities as the new basis of value creation.[1] A key finding of these leaders is that becoming a co-creative organization is about changing the very nature of engagement and relationship between the institution of management and its employees, and between them and co-creators of value - customers, stakeholders, partners or other employees. In reality, the co-creation journey always begins inside the organization.
To initiate and implement this co-creation model, especially in established organizations, requires management to adopt a new mindset. Executive leadership must take on a critical role in the initiation and the evolution of a co-creative organization. The case of HCL Technologies, an IT software and services company, examines this process.
Organizational transformation: HCL Technologies
Based in India, HCL was founded in 1976 by Shiv Nadar who is recognized widely as an industry visionary and pioneer. HCL, which stands for "Hindustan Computers Limited" started in "hardware", and is one of the major computer companies of that era that exist today - IBM, Apple, HP and HCL. In the 1990s, as trends in the computer industry changed and software and services started ruling the roost, and companies like TCS, Wipro and Infosys had established themselves, HCL slipped behind as it delayed its foray into the software and services arena (although HCL practically invented the BPO part of the IT services industry with its pioneering remote management services). Finally in 1998, Shiv Nadar reorganized HCL into two components - the India-facing HCL Infosystems,...