Hindustan Petroleum Case Study

Word Count
Hindustan Petroleum Corporaon Ltd.
Driving Change Through Internal Communicaon
Question No. 1
How it HPCL go about building and reaching a vision to be a
world-class company? What actions and practices were most
In 2003, a wave of extensive changes in the Indian oil Industry drove the
leaders of Hindustan Petroleum Corporation Limited to launch a major
organisational transformation e!ort. It was inevitable for the Company to
build a long term strategic vision to survive and also to be World Class
Company. Instead of focusing the strengths and weaknesses of existing
and potential competitors or to channel resources towards one customer
segment or another company it decided to turn inward. Using a variety of
innovating as well as traditional methods of internal communication, the
company sought to integrate employees into the transformation project
and also to engage them personally in the goal of making it work. Most
interestingly the world class vision was not designed by an external
consultant. Company conducted various “vision workshops” to create this
vision. These workshops were conducted by the people selected from the
company and employees from all segments contributed into this vision.
Connecting the personal vision of the employees with the vision of the
company was the key.
Realisation of the fact that ‘If the corporation grows, I can meet my
personal aspirations’ has really helped the company in creating a vibrant
vision and the employees really owned the vision purely because of the
fact that it was created by them.
A problem solving process was designed by the employees itself wherein
they identi/ed the problems, diagnosed the causes, suggested the
solution and a clear plan to implement the solutions. Through regular
internal communications the top management could reach the bottom of
the pyramid and could make them aware the strategy of the top
management. Since the vision paper was made by the employees the
company could avoid the feeling of unrealistic expectation by the
management. It could also be right in saying that the company could
manage the emotions of the employees more e!ectively. It is worth
mentioning that HPCL could develop a relationship among people wherein
they develop a relationship with one another that enable them to
exchange information and wield in1uence. Through regular personal
interactions, the top management could convey their body language to
the people visibly. Personal interaction has helped the company to move
from a monologue mode to a dialogue mode. They could create a feeling
among employees that somebody cares for you and that made a
tremendous impact. The top management could create an internal feeling
of satisfaction among employees that they have accomplished meaningful
for the company. All the above contributed and helped HPCL in building
and reaching a vision to be a world-class company and actions taken by
the top management was purely in line with the thought process of the
Question No. 2
How did employees respond to change and communication
e"orts? Why did they react as they did?
When a monolithic organizaon with PSU work culture like HPCL thinks about
transformaonal organizaonal change, the challenge is not how the outside world views or
accepts the change, rather the bigger challenge is whether the change management concept
itself rises above the scruny of ever cynical and chronically skepcal employees of the
large organizaon. Ge$ng the posive buy in of cross secon of employees who view such
disrupve changes as a challenge against statuesque mindset was the biggest hurdle before
the leadership of HPCL. That is why the organizaon turned inward in their change plan
before focusing outward on the customers.
Much against the convenonal wisdom, the leadership of HPCL decided to be very
aggressive in charng a robust direct communicaon exercise with the employees thru