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Strategic Human Resources
Frontrow Productions
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A Flat World
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The Leveled Playing Field
• Countries could now compete for global knowledge work like never before
• Friedman interpreted this leveling for what it was: The World was becoming Flat
• Innovation and Technology had delivered Columbus proof of a round Globe
• The same paradigm had just changed the shape of it again: Squashed Flat
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10 Flatteners
• 11-9-89 Berlin Wall• 8-9-95 Netscape goes
Public• Work Flow Software• Uploading• Outsourcing• Offshoring
• Supply Chaining• Insourcing• In-forming
– Google, Yahoo
• The Steroids– Digital, Mobile, Personal &
Virtual
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Some Top Flatteners for Infosys
Outsourcing
Offshoring
Uploading
Insourcing“or what the guys in funny brown shorts
are really doing for everyone including
Infosys Technologies”
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Outline
• Who is Infosys?• How was it Founded?• Infosys People• Company Benefits• Change in Attitude, fall from grace• The Goal of HR• What makes a Great company to work for?• Comparative to Wegmans, Zappos, Coach
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• Multinational information technology services and consulting company headquartered in India
• One of India's largest IT companies
• Infosys has a global footprint: 40+ offices and development centers in India, China, Australia, the Czech Republic, Poland, the UK, Canada and Japan.
• Annual revenues exceeded $4 billion on market capitalization of over US$30 billion.
• Infosys defines, designs and delivers technology-enabled business solutions
Who is Infosys?
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Who is Infosys - cont’d
• Infosys takes pride in building strategic long-term client relationships.
• Strategy Shift in 2005 to compete with bigger firms:– IBM– Accenture
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0
150
300
450
600
750
900
$ M
illi
on
s
Year
Infosys Financial Information
Revenue ($ Millions)
Net Income ($ Millions)
0
4,000
8,000
12,000
16,000
20,000
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Year
Employees
Employees
Key Statistics
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How was it Founded
• Infosys was founded on July 2, 1981 & started by seven people with $250
• Today, they are a global leader in IT & consulting– revenues of over $4 billion.
• In 2001 it was rated "Best Employer in India" by Business Today
• Infosys won the Global MAKE (Most Admired Knowledge Enterprises) award, for the years 2003, 2004 and 2005
• Created a company “of the professional, by the professional, and for the professional”
• “Wanted a firm that promised a fair deal to all its stakeholders- shareholders, employees, and customer alike”
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Narayana Murthy- Co-Founder
"We, the founders of Infosys, have donated from our personal money at least 60 percent of our wealth in cash. ..”
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Infosys Employees
• Infosys’ challenge: build a company that lasts for 200 years
• Hired hardworking, diligent, technically adept highly enthusiastic employees
• 1.5 Million job applicants per year
• The job represents an opportunity for a more prosperous life than that of their parents
• Infosys has a need for a new type of employee
• New Strategic Partnerships
• Training and Development Processes
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Infosys Benefits
• The first Indian company to grant stock options
• Made millionaires of many
• Ranked No.1: Business Today Best Employer Survey in 2001 & 2002
• Employee salaries in the top 10-15%
• Issued stock warrants that vested over 5 years to employees
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Infosys Benefits• Invested proceeds of IPO into its 80 acre campus• Added extensive state of the art technology facilities:
– Dinning, residential, entertainment – Green space for recreation
• Stock options (5% of market price)
• Indirect Compensation– Support during emergencies– Health platform HALE
• Yoga, stress audits, professional counseling etc..
– Hobby, cultural and sports clubs
• Three ways to teach Values
1. Learning value-added through training
2. Emotional value-added through work environment
3. Financial value-added through compensation and benefits
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Change in Culture, Fall from Grace
In 2003, Infosys toppled from the Best Employer List
• Employee discontent was on the rise.
• Employees expectations
• Perks of initial years were diminished
• Projects Mundane
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Narayana Murthy
"If you have proper data for the transaction, then you win the transaction. If you don't have, you don't. So people are very comfortable with me because I go purely by data. We have a saying at Infosys: in God we trust - everybody else brings data to the table."
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The Goal for HR
• The cofounders wanted HR to ensure that Infosys was on the Top Ten lists of both Best Performing companies and Best Employers.
• How would HR accomplish this goal?
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What Makes a Top Performing Company
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What Makes a Top Performing Company
• Culture that are flexible, adaptive, participative, and innovative– Operationalize attributes through leader behavior and
organizational structure and systems
• Management Promotes Both Employees and Profits– Earn employee and stakeholder trust– Engage directly with employees– Focus and consistency of purpose– Collective leadership building– Fostering shared purpose
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What Makes a Top Performing Company
• Satisfied employees = Corporate profits– A 5% jump in customer loyalty can boost
profits 25-85%– This is the Service-Profit Chain
• Employee Satisfaction soars when internal service quality is enhanced this satisfaction turns to employee loyalty or commitment increases productivity greater external service value for customers enhances customer satisfaction & loyalty.
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Coach• Designer, producer, and marketer of
fine accessories and gifts• 10,100 employees• Available at over 900 store locations• HQ: Manhattan, NY
Uncanny ability to figure out what woman want
Outlet Hedge
Innovative products
Innovative & consumer centric
Ability to recruit and retain top performers
Block and tackle
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Coach Interview
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What Makes a Company a Best Employer?
• Job Design and Customization for high
performance jobs
• Employee Empowerment
• Intrinsic and extrinsic benefits
• Consistency
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What Makes a Company a Best Employer?
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• "trust the people they work for, have pride in what they do, and enjoy the people they work with" – is the idea that a great workplace is measured by the quality of
the three, interconnected relationships that exist there: • The relationship between employees and management. • The relationship between employees and their
jobs/company. • The relationship between employees and other
employees.
What Are Employees Looking For?
Best Employer Scenario
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Shared Purpose
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Great Places to Work Performance
0%
2%
4%
6%
8%
10%
12%
"100 Best Reset
Annually"
"100 Best Buy & Hold"
S&P 500 Russell 3000
11.85%
9.07%
5.93% 6.22%
Fotune 100 Best vs. Stock Market 1998-2007
http://www.greatplacetowork.com/
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Wegmans Retail Supermarket 28,561 employees; 97 US sites Privately held HQ: Rochester, NY
Senior management is informative & accessible
Numerous communication programs
Storytelling
5 values embodied at Wegmans
Employee empowerment
Pay & benefits
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Zappos
Revolutionize how business is done
Best company culture; family-like atmosphere
Departmental Uniqueness
Employee perks & benefits
Accessible management
Build atmosphere where people like to work & clients want to do business
Passionate employees
Training & motivation
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Zappos’ HR Strategy
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What should Infosys Do?
• Lessons learned from Coach• Lessons learned from Weagmans• Lessons learned from Zappos
References • Zappos Clip: http://abcnews.go.com/Business/story?id=5326827&page=1
• MSFT Clip: http://www.youtube.com/watch?v=1rXbAY8qHvg&feature=related
• Wegmans Clip: http://money.cnn.com/video/ft/#/video/fortune/2008/01/22/bpw.wegmans.fortune
• Coach Clip: http://wm-od.cdn.turner.com/cnn/big/business/2007/07/30/lake.lew.frankfort.cnn.ws.wmv
• Top Performing Company Clip: http://www.youtube.com/watch?v=nvPN6bp_tNs
• State Bank Clip: http://www.youtube.com/watch?v=i1MqHclwIsI&feature=related
• http://feedroom.businessweek.com/?fr_story=99e9e71ad624eeb3598889e4ef2419abe85d3a56
• http://www.greatplacetowork.com/
• http://money.cnn.com/magazines/fortune/bestcompanies/2006/snapshots/1558.html
• http://www.onedayonejob.com/jobs/wegmans/
• Five Secrets of Best-Performing Companies, Chris Ceplenski, Senior Editor , May 08, 2006
• www.Coach.com
• www.Infosys.com
• www.zappos.com
• www.wegmans.com
• “Diagnosing Complacency in the Work Force” Harvard Business Press Online Business Subscription: Adapted from A Sense of Urgency, Chapter 2 John B. Kotter, Harvard Business Press “
• Putting the Service-Profit Chain to Work, HBR July-Aug 2008, Heskett, Jones,Loveman, Schlessinger
• HBR “What It Means to Work Here” Tamara Erickson and Lynda Gratton March 2007
• HBR “A Players or A Positions”?: The strategic Logic of Workforce Management, Mark Huselid, Richard Beatty, Brian Becker
• THE WORLD IS FLAT: A Brief History of the Twenty-First Century , Thomas L. Friedman Copyright 2005,2006,2007
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• Wayne Anderman• Adam Berk• Vince Rubiera
Frontrow Productions