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CYPRESSNo Excuses Management

MBAM 613March 7, 2005

Presented by: Ahmed Alshaie, Derek Barker, Demetrius Beasley, Angela Copeland, Ajax Singh, Mikhail Tekeste

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Introduction – Angela Hiring – Demetrius Resource Allocation – Derek Goal Setting & Valuation – AJ Activity – Mikhail Conclusion – Ahmed

Agenda

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Presentation Format:– IT Implications– Article Comparisons– Beyond the Readings

Professional Examples What’s missing?

Interaction: Get your participation points here (but, don’t forget the whistle)!

Introduction

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Cypress– Silicon Wafer Manufacturing– Round Rock, TX and San Jose, CA

Revolutionized by IT– Successful CEO

Revenue per employee, Product line trends, Performance of company executives, etc.

– Professional Example

Introduction

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Why use a system?1. Competitive Advantage2. Consistency Amongst Hires3. Sets Guidelines (Control)

Q: Is hiring good people a way to maintain control?

Hiring Systems

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Data Collection

Accessible through software web-based application:– www.hiringsoftware.com

Hiring Systems: IT Implications

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The Entire Organization

Management Held Accountable Q: Is this the role of management?

Results: 1 week fill rate (75% of the time); 85% of offers accepted

Hiring Systems: Implementation

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1. Maximize Productivity

2. Prevent middle management myopia by forcing collective thinking at all levels

3. Address false confidence created by prosperity

Resource Allocation Strategy

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1. Head Count System2. Allocating Capital System3. Expense Control System

Q: Which system is the most important?

Resource Allocation System

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1. Meeting with VP’s & middle managers2. Revenue Review: Past, Present,

Forecast3. Use forecast with RA System variable

to determine new allocation 4. Negotiate allocation through

departments5. Repeat every quarter

Resource Allocation System Template

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1. Real Time Negotiations2. Online Departmental Micro-

performance Index3. “Killer Software”

Q: Where is the IT Security?

Resource Allocation Use of IT

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1. Belief in the system- “No doe – no show”

2. Upper Mgmt (VPs) checking the EGO- Trade offs - Letting middle management in on decision

process

Q: Additional human variable examples?

Resource Allocation Human Variables

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1,400 employees

Each week, 6000 goals come due (average 4 per employee)– Extensive database of information

Weekly reviews – New Years resolution syndrome prevented

Goal Setting

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Monday: Set goals & time limits. Functional managers receive printout

Tuesday: Evaluation & discussion of goals

Wednesday: – Presidents receive goals reports of their

subordinates– Problems in workforce

“Two-Pass” Plus Wednesday

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Measure trends through the year

Eliminate…Proximity Effect

Monthly Reports

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Ranking the middle majority

“Socialist” rewarding to keep troops happy

Merit ≠ Equity

Focal Group

Performance Appraisal

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Class activity

Exercise

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What about big companies? Cypress today

Conclusion