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Linking Concert’s Strategies, Culture and People

Linking Concert’s Strategies, Culture and People. HR Review March 2000. Linking Strategy and People. Resourcing 2000: Number 1 Priority People Vision for Concert Creating the Culture Linking Strategic and Cultural Priorities Implementation Principles and Policies Source and Select

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Linking Concert’s Strategies, Culture and People

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  1. Linking Concert’s Strategies, Culture and People HR Review March 2000

  2. Linking Strategy and People • Resourcing 2000: Number 1 Priority • People Vision for Concert • Creating the Culture • Linking Strategic and Cultural Priorities • Implementation • Principles and Policies • Source and Select • Develop and Counsel • Reward and Retain • Realizing the Potential

  3. Resourcing 2000: Numero Uno • Deliberate Blend of AT&T/BT/Concert Classic • Global Target: 6569 People in 46 Countries • Resource Pool: 6089 People • Offers*: 92% of Resource Pool; Over 500 Per Week • Acceptance 60%*; Rejections 2%; Balance Pending • External Recruiting for New and Key Skills *as of 28 Feb

  4. Concert Mission / People Vision • To make global communications truly seamless, reliable and hassle-free • To help customers utilize technology to enable and enhance business performance • To collaborate with customers to help them discover and realize new opportunities • To accomplish this through a diverse global team that: • Focuses on the customer • Collaborates across boundaries • Sets new standards for creativity and innovation, and • Achieves business results

  5. Creating the Culture • Gathered Input From Multiple Sources • Transition teams: June 98-april 99 • Dave Dorman’s senior team: Jan 2000 • Concert’s leadership team: Jan 2000 • Drafted ‘Declaration of Culture’ • Integrating with Strategic Capability Requirements to Form Single Concert Leadership Model

  6. ‘Declaration of Culture’ Concert is a diverse global team of committed and enthusiastic professionals who achieve commercial success through: • Customer-Focus -- anticipating and understanding customer global needs and placing them at the center of all we do • Collaboration -- working effectively with each other and within and across teams, organizations and geographic boundaries • Creativity -- leading change and seeking innovative approaches in working relationships and business solutions • Results -- delivering as promised and creating value for our stakeholders

  7. Leadership Capabilities Behaviors Linking Strategic and Cultural Priorities Develop a Leadership Model Which Reinforces Concert’s Target Culture ... Target Culture

  8. Leadership Capabilities Organization Capabilities “Line of Sight” Job Skills / Knowledge Linking Strategic and Cultural Priorities … and is Driven by Business Strategies. BusinessResults Business Strategies

  9. Business Strategies • Create the Target Culture • Move Aggressively on Global IP Strategy • Grow the Business -- Revenue and Reach • Develop New Distribution Channels, New Channel Relationships, and Increased Channel Control • Accelerate Product Portfolio • Reduce Cost Structure; Streamline Processes • Implement Global Service Management Excellence • Leverage Local Capabilities

  10. Advanced Solutions Integration Channel Performance Customer Service Excellence Deal Making Mastery Global Value Creation Innovative Cost Control Network Optimization Product Portfolio Management Sales Mastery Self-Empowered Organization Speed-to-Market Stakeholder Satisfaction Technology/IP Leadership Virtual Organization Winning Culture Organization Capabilities BusinessStrategies

  11. Target Culture Business Organization Strategies Capabilities Leadership Capabilities + • Customer • Customer-centric • Customer / market knowledge • Global effectiveness • Collaboration • Building and managing relationships • Communicating openly • Company-wide perspective • Virtual teaming • Respect and reward • Creativity • Risk-taking • Seeking new approaches • Valuing alternative perspectives • Results • Accountability • Fast, flexible execution • Negotiating for commercial success • Commercial/business acumen • Technology/IP savvy

  12. Customer Concert Leadership Model Collaboration Creativity Results Job Skills and Knowledge Concert Leadership Model Target Culture & Business Strategies Business Results Organization Capabilities LeadershipCapabilities

  13. Linking Strategic And Cultural Priorities Implementation

  14. Concert Leadership Model Job Skills and Knowledge Linking Strategic and Cultural PrioritiesModel being integrated into HR infrastructure: Target Culture & Business Strategies Policies and Principles Source and Select Develop and Counsel Reward and Retain Customer Business Results Organization Capabilities Creativity Collaboration Results LeadershipCapabilities

  15. Principles and Policies • Reinforce the Target Culture • Global Principles to Set Broad Direction • Global Policies Where Uniform Compliance Required • Regional Procedures to Meet Local Needs • HR Policy Priorities -- April + • Diversity; Harassment; etc. • Other Policies From Other Departments • E.G., travel from Finance; code of conduct from Legal

  16. Source and Select • New Website • Online applications • Global approach • Concert Global Advertising -- simple, multipurpose • Ultimately Entire Resource Process Online • Placing ads for internal vacancies • Monitoring responses • Making hiring decisions • Ability for BT and Concert to See Respective Vacancies (From April 2000)

  17. Develop and Counsel • Leadership effectiveness for today • Leadership depth and breadth for tomorrow • Skills/Knowledge to maximize performance Goal: A world-class team of professionals capable of developing and achieving Concert’s global business goals

  18. Enterprise -wide -- Culture Organizations -- Team Effectiveness Individuals -- Core Leadership Capabilities Individuals:Job Skills and Knowledge Develop and Counsel - Model Target Culture & Business Strategies Customer Concert Leadership Model Business Results Organization Capabilities Creativity Collaboration Results LeadershipCapabilities Job Requirements

  19. Develop and Counsel:Top Priorities • Global Effectiveness: Partnering at a Distance • Global capabilities for a global company • Fast delivery: March to July • Local delivery: simultaneously in US/ Europe/Asia • Alternative delivery options: 1 and 2 day programs • IP Development • Awareness to mastery • Modular structure; interactive distance learning • Supplemented with instructor led workshops • Unit Culture Initiatives (vary by unit)

  20. Reward and Retain:Compensation Philosophy • Competitive in Local Markets • Stress Variable Portion of Pay -- Closely Tie Individual Reward With Performance • Ensure Compensation Structures & Processes Encourage Risk Taking and Recognition • Tie to Concert’s Business Objectives • Reinforce Target Culture • Be Cost Efficient

  21. Reward and Retain:Total Compensation • Base • Few initial increases • Market competitive review to build salary structure: late summer • Bonus • Company and individual performance (70/30) • Individual performance: ‘what’ and ‘how (culture factors)’ (60/40) • Paid annually • All employees eligible (except if on sales comp.) • Scheduled for rollout early March • Sales Compensation • Global Accounts • Global Markets • ICS (pending)

  22. Reward and Retain: ‘Ownership’ • Founders Award • Employees eligible if signed by July 1 • Business criteria being discussed • Roll out scheduled early April • Payout after close of 2001 business results • Equity • High priority/complex issue; alternatives being evaluated • Option to board in March; more details in April • ESPP • Objective: discounted stock available globally (where possible) • US and UK: details available end of March • ROW: details staggered as local laws followed

  23. Reward and Retain:Benefits Philosophy • Competitive in Local Markets • Utilize AT&T and BT Efficiencies Where Possible • Provide Employee Choice • Worldwide, Over Time, Develop a Baseline Level of Common Benefits for all Concert Employees

  24. Reward and Retain:Benefits Information • Benefit Information Dissemination • Local meetings • Information on WEB - US & UK first • Local HR best point of contact

  25. Reward and Retain:Talent Management • Performance Management • Consider both ‘what’ achieved (objectives) and ‘how’ achieved (cultural/leadership capabilities) • Assessment tools (including 360º) • Succession Planning • Following first annual performance management cycle • Both individual replacements and replacement pools • Senior Team / future potential replacements • Key strategic contributors / future potential replacements • Major functions / replacement pools • Targeted retention strategies

  26. Ongoing Communications • Web Pages • Brochures • Audio Calls of Management Team (e.g., bonus plan, founders award, etc) • Local Orientation Meetings • Benefit Sign-up Meetings • Employee Surveys

  27. Target Culture & Business Strategies Customer Concert Leadership Model Business Results Organization Capabilities Collaboration Creativity Results LeadershipCapabilities Job Skills and Knowledge Realizing the Potential

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