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Hughes Software: Fun &
Flexibility
(Contn.)
That Warm Cocoon
That's also the reason HSS places a high
emphasis on communication. ''It is something I am paranoid about. People
have to know what is going on,'' says Goyal. The company's intranet, 'Anthra',
comes in handy here. Then there are various newsletters, one catering to
general news, the other, technical stuff. There is even an electronic
message board called 'Techtalk' where the engineers can host technical
queries that are then answered by someone in the company. And, of course,
there is Junk, as the informal bulletin board is called. From complaints
about the strangely decreasing diameter of parathas in the canteen, to the
fact that employees have to waste some time getting around the
insignificant electronic blockades the company has placed on cricket
sites, this is the place where HSSians say what they want-some with their
name printed at the end, others anonymously.
The company has also launched popular
awards that reinforce desired qualities of the HSS-employee: best
trouble-shooter, best mentor, and best leader. Each employee has a vote,
and the top 20 employees in each category are named. Goyal is no doubt the
most popular employee in the company; he has so far won eight of of the 12
awards given. Recognition and feedback are a constant refrain in
employee-speak at HSS. The company has a 360-degree feedback system in
place where each individual gets feedback from nine other people in the
company. Explains Anupama Babbar, Assistant Manager (Human Resources):
''When we introduced the system, we wanted to make it totally unbiased,
which is why it is developmental, not evaluative. That means the results
are not used for promotions or increments.''
Fun is accorded a high priority at the
company. There's a cricket club, an adventure club, and a dramatics club.
The last-mentioned staged a comedy, Veerappan in HSS, at the company's
annual Diwali bash last year. At an activities meet, you come across
employees who are strident in their demand for snooker and table tennis
tables, and badminton and tennis courts. ''We want to be able to write
back to our friends in Infosys and be able to show off.'' This
inter-industry comparison is something of an obsession at HSS, be it the
more lucrative options at HCL, or the great campus at Infosys.
The campus is another issue. Right now, the
HSS facility is just four buildings interspersed with roads of the kind we
have already talked about. A campus figures in CEO Arun Kumar's radar, but
he doesn't want to talk about it till it happens. All he says is: ''When
we built our first facility it was the best in the industry. Today, we
have outgrown it. Tomorrow, when we build our campus, it will again be a
trendsetter in the industry.'' Yet, when you question the cribbers why
they joined HSS if they knew the salary and options were not really
best-in-class, and the campus, much smaller, the answer is categoric: the
work. Most employees know they are working on cutting-edge projects that
they may not have access to in other places.
As far as stock options are concerned, the
fact that the major manpower expansion has happened in the one year after
the IPO, has led to some anxiety among employees. The company gives
options only to freshers who have been with the company at least six
months, and the quantum is based on performance. All those who got shares
pre-IPO got them at a discounted price of Rs 30 and Rs 75, and, therefore,
made a lot of money. But all those given shares post-IPO get (and got)
them at market prices. Says Vimal Khanna, CFO, HSS: ''Our system is fair;
you have to take a long-term look at how the stock will appreciate. And we
do give our star performers more.''
Manpower is definitely a problem, but
that's something endemic to the industry. The fact that HSS concentrates
on offshore work is one of the reasons it tends to lose a lot of engineers
who have stars and stripes in their eyes. Setting up some sort of
facilities in other markets is something the management admits it will
have to consider. Says Vinod Sood, Vice-President and Head (Engineering):
''There are a lot of people we lose to the US who would be interested in
joining us again if we could employ them abroad.'' An emphasis on products
is part of HSS' business strategy. By moving into projects, the company
can earn higher margins. Besides, in software services, the IPRs of all
the work the engineers do is with the customers not the company. By
shifting to products HSS can sell the same technology to more customers
and make more money on the work its engineers are doing.
Corner-Room View
Arun Kumar will brief you on the deep
attachment HNS has with India. A HNS employee, he runs the show for all
Hughes ventures in India. An IIT-Kanpur alum, he tells you about the
cluster of Indians in HNS, including Chairman Pradman Kaul. HSS, for those
who came in late, had three articulated objectives when it started ops in
1992. One, it would start by supplying to only HNS, but would grow by
developing non-HNS customers. Two, it would start with services, but later
move on to products-the idea being to become the Microsoft of India. And
three, it would attain a more independent status. So far, things have
moved just according to the initial blueprint. Until 1996, all work done
by the company was for HNS; today, only 56 per cent is. As far as products
are concerned, this year, 20 per cent of the company's revenue will come
from products. This figure will eventually reach 50 per cent. And post-IPO,
HNS' holding in HSS went down to 56 per cent.
Meeting Kumar is what gives you the
perspective on HSS. He explains the synergies the company enjoys with the
Hughes Electronics family, and the direction in which it is moving.
Clearly he's the one who steers the boat, albeit, without making too much
noise. Getting hold of him is a tough job, but once you've got him he has
lots to say. He's very quick to point out that there's no harm in being
low-profile and under-stated; he's a CEO, not a showman. Dancing at press
conferences is not something you can imagine this man will do. But catch
him boogeying to Colonial Cousins at the company's Christmas bash and it
shows that the HSS spirit of fun and flexibility percolates from the top
down.
|
Why
Hughes Is Number 5 |
| Following
a yellow HSS balloon perched on top of the building is the easiest
way for visitors to locate the HSS campus. For employees, who use
company provided buses to reach the campus, what awaits them is an
environment, which is open, friendly, warm, non-hierarchical, and
flexible.
Campus relationships are
built ''virtually'' through the HSS website, which includes features
such as dates for placement and a section on career counselling. All
new recruits undergo an eight week long induction program, Oasis,
which is a combination of both technical and non-technical training.
Lateral recruitment is made effective through the employee referral
program, where bonuses range from Rs 7,500 to Rs 30,000. Last year,
33 per cent of the 9,000 job applications received were through
employee referrals. The internal job posting program, where openings
are posted on the intranet has been a great success here: over 100
positions have been filled this way. The flexibility to change roles
within the company, thereby reducing the need to look for a job
change, was cited by a number of employees as something that make
HSS a great place to work in the employee survey.
HSS' pay is competitive,
positioned at the fourth quartile, and reviewed every six months;
all employees are also offered stock in the company. What is
strikingly different is the incentive program for managers, which
besides using corporate, functional, and individual measures, also
has one on leadership, which includes people-related variables like
retention, development of employees, employee relations, performance
management, and career planning. An integral part of the HSS culture
is the recognition of employees: from informal and easy-to-use
methods of recognition like e-greetings with readymade templates
available on the employee-portal Anthra, to formal awards for the
best sense of humour, outstanding performance, or adherence to
company values. When they complete their first year with the company
employees are presented with a watch; when they complete five years,
they (and their families) are given a company-paid holiday. Other
forms of recognition include both cash and non-cash components like
holidays, gifts, parties, and certificates.
HSS gets all HSS
employees as well as their families together while celebrating
events, big or small. Some regular celebrations include the
company's anniversary party, the quarterly results celebration,
parties associated with different festivals (like Diwali and
Christmas), annual picnics, and sports meets. To encourage
communication, regular skip level meetings are conducted between the
employee and a member of the senior management team, where employees
have a frank and open discussion on all things related to the their
professional life, right from the quality of the cafeteria-food to
project-related issues. An action plan with time-lines to resolve
the issues is drawn in the meeting itself.
HSS' contribution extends
both to the environment and the society. One environmental
initiative is the recycling of all paper used. Charity boxes are
visible all over the campus, encouraging employees to contribute to
different causes. The company also contributes to different
charities and funds on a regular basis.
-Madhavi
Misra and Purva Misra, Hewitt Associates LLC |
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