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

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$ M

illi

on

s

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Infosys Financial Information

Revenue ($ Millions)

Net Income ($ Millions)

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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