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NOV. 21, 2004
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The iPod Effect
Now you see it, now you don't. All sub-visible phenomena have this mysterious quality to them. Sub-visible not just because Apple's hot new sensation, the handy little iPod, makes its physical presence felt so discreetly. But also because it's an audio wonder more than anything else. Expect more and more handheld gizmos to turn musical.


Panasonic
What route other than musical would Panasonic take, even for a phone handset, into consumer mindspace?

More Net Specials
Business Today,  November 7, 2004
 
 
BT SPECIAL: BEST COMPANIES TO WORK FOR IN INDIA
8 Satyam Computer
In Search of Leadership

Satyam spent the 90s getting its people processes in place. This decade it wants to focus on getting that system to deliver top-notch leaders-and leadership.

Pause perfect: Satyam Computer employees, or associates as they are known internally, take a break at the company's technology centre in Hyderabad

In early September this year, Keshab Panda, Satyam Computer's head of Europe, decided that he needed a development centre in Budapest to better service customers in the region. By the first of November, a 10-employee centre put together with an initial investment of Rs 3 crore, was up and running. How did Panda, who manages business worth $100 million, pull off a corporate miracle? Because "there were no steering committee approvals and ceo involvement". He only had to get hr and finance in on the act, that too because people and money were involved.

Panda's example illustrates a new kind of organisation that the 17-year-old Satyam Computer is trying to be: one where business heads are not just responsible for results, but free to commandeer resources and make decisions like true leaders. Says B. Ramalinga Raju, the company's Chairman who emails to each one of his 18,500 employees once a quarter: "We are now promoting a type of leadership that is distributed (across levels), real time (quick decision making) and virtual (across the globe)."

THE SCORE
ATTRIBUTE
SCORE
(/100)
WEIGHTAGE
(%)
WEIGHTED
SCORE
HR Metrics
60.00
15
9.00
HR Processes
60.00
30
18.00
Stakeholder Perception
66.67
10
6.67
Employee Perception
77.53
40
31.01
Attrition
85.00
5
4.25
Total SCORE (/100)
68.93

If it seems odd coming from the mouth of an owner-manager, it's because Satyam believes that no other style of management will do. With its industry changing every day, the company finds that its "associates" (Satyam-speak for employees) don't just have to keep learning, but need the freedom and power to make decisions faster. Despite its roll-call of 18,500 employees, Satyam has a three-tier management structure. There are the top 50 who are responsible for a significant part of the business or hold independent functions. The next 150 are key team leaders who report into the top 50. The last tier comprises 300 associates such as solution architects, key account managers and programme managers. Bulk of these people across the three levels are involved in providing long-term direction to the organisation, and are not expected to get bogged down by the day-to-day operations. In fact, the tier-one executives are encouraged to look at issues from a 90-day to one-year time perspective. "We want to move our leaders from the treadmill to the easy chair," says A.S. Murty, Director and Senior VP (HR). "Everybody needs to whiteboard (company jargon for strategic thinking), but most of all the senior leaders."

SNAPSHOT
TOTAL EMPLOYEES
14,850
ATTRITION (PER CENT)
14.7
AVERAGE CAREER TENURE
3 years
GENDER (FEMALE: MALE)
1:5
TRAINING BUDGET (BUDGETED/ACTUAL)
BUDGETED: Rs 2,827.97 LAKH
ACTUAL: Rs 1,636.86 LAKH
% UTILISATION: Rs 57.8
TRAINING COST AS A % OF REVENUE
0.81
TRAINING MAN-HOURS (BUDGETED/ACTUAL)
ACTUAL AVAILABLE
85,000
For the financial year ended March 31, 2004

However, it doesn't mean that leadership is not required at lower levels. On the contrary, says Murty, with so many employees, there is bound to be, say, a visa problem in some case or on-site problems in some others. "So we need leaders at various levels to handle such issues and back them up with efficient processes," he says. The answer, as Satyam discovered, was "not to throw more manpower, but mind power" at the problems. There's a "6 PS process" that it employs to that end, where the ps stand for people, processes, products, proliferation, promotion and patent. Each of these, says Murty, needs to be looked at for best results. But what happens when the processes are in place, but the results are not coming through? There is Satyam's version of the five Olympian rings, with the top three representing "faster, better and cheaper", while the bottom two stand for "larger and consistent". So a process is not considered improved if it isn't faster, better and cheaper than before, besides being larger (in terms of coverage of people) and consistent.

Despite its emphasis on hr systems and processes, Satyam has a long way to go. It's way behind TCS, Infosys and Wipro in terms of revenues, profits and market cap. Says Raju, "We have not yet arrived there (leadership position), but are serious in our efforts and desire to get there."

INTERVIEW/R. Raju/Chairman
"The need is for lifecycle leaders"

How has your HR strategy changed over the years?

Earlier, organisations were divided into three types of people: The thinkers, communicators and the do-ers. That environment has totally changed. The need now is to churn out more full lifecycle leaders (those who can handle end-to-end responsibility).

How will this decade be different for Satyam?

The 90s were a decade of process improvements. This is a decade of leadership. In other words, in whatever we do, we should be the leaders. Our reference point and benchmark should be the best in the world. While we have not yet arrived there, we are serious in our efforts and desire to get there.

What challenges do you see ahead?

The first is the need to cope with the changes in a demanding environment. Second, while we have 95 per cent of the business coming from a global customer base, 95 per cent of our workforce is of Indian origin. As we become a more global company, we'll need to better integrate global talent with our culture. The third is that while women constitute 20 per cent of our workforce, we don't have the same proportion of leaders among them.

 

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