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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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