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Employee Engagement for Competitive Advantage

Employee Engagement for Competitive Advantage. Marie Moynihan Human Resources Director Dell EMEA – Home and Small Business. Agenda. Who we are What we are trying to achieve Challenges we face How we engage our employees Globalisation – the employee experience Measuring success Summary.

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Employee Engagement for Competitive Advantage

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  1. Employee Engagement for Competitive Advantage Marie Moynihan Human Resources Director Dell EMEA – Home and Small Business

  2. Agenda • Who we are • What we are trying to achieve • Challenges we face • How we engage our employees • Globalisation – the employee experience • Measuring success • Summary

  3. Who We Are • #1 computer systems company in the world* • #1 in US, #2 in EMEA, #3 in Japan, #4 in Asia Pac • Pioneered direct model • Fastest growing and most profitable company in our industry • $45.4 billion in global revenue • Fortune 31 Company • Almost 50,000 employees worldwide • #1 computer systems company in Ireland • 4,500 employees in Ireland • 40% of Dell EMEA employee base • Ireland home to Dell’s European Manufacturing Facilities • Dell is Ireland's largest exporter, largest technology company and its second largest company overall** • IDC Q2 2004 Final Data • ** Irish Exporters’ Journal and Business and Finance 2004

  4. 20 Years of Unprecedented Success 50 41.0 40 30 20 year inflation adjusted revenue 20 10.7 * 10 * 4.7 2.0 0.3 0.1 0 Founded: IPO: 1975 1986 1962 1970 1878 1896 1939 1957 1888 1911 1984 1988 * Forerunner companies used to count down first 20 years of existence Note: 20th year revenue: GE’s = $22M (1898); Walmart’s = $2.4B in (1982); Microsoft’s = $9B (1995); HP’s = $48M (1959); IBM’s = >$5M (1908) Source: Company archives, websites and annual reports; Fortune.com; Inflation rates from Bureau of Labor Statistics (BLS)

  5. What We’re Trying to Achieve WW: $60B Dell Revenue by Product S&P Services Server/ Storage Client Systems

  6. Product Leadership The best products Grow in servers, storage, services and printer markets Maintain price and cost leadership in all products No weakness in: features, availability, reliability, value and speed to market Customer Experience Best value due to lowest cost Most critical beyond-the-box support Easy to do business with Dell Globalisation Grow outside United States at a multiple of market growth Transfer global best practices Accelerate share gain by focusing on most critical countries, products and customer segments Winning Culture Develop leadership skills Encourage personal accountability Build a workforce of diverse backgrounds, skills and potential Maintain high standards of ethics and integrity Key focus areas of our mission

  7. The Challenges We Face to Get to $60B • An increasingly competitive IT market • Industry consolidation and globalisation • Maintain lowest cost structure for competitive advantage • Intense pressure to control/lower operating costs – do more with less • Need to expand portfolio of products and services • Greater complexity for employees • Need to grow global workforce, adding new employees in new locations, without compromising quality of the Customer Experience we deliver • Managing dynamic change

  8. How We Respond • Foster a culture where there is a constant awareness and focus on staying ahead of the curve amongst all employees • Continual improvement is in our DNA • Focus on a culture of ‘winning’ and clear demonstration of what is in it for our employees • Align our people to our business goals • Apply the same rigour and focus to building a great place to work as we have to building a great financial company • Measure metrics hourly, daily and weekly • For customer satisfaction, business performance and employee engagement

  9. The Dell Team is Central to Our Values & Success We are committed to… • Being a meritocracy • We value accountability and reward those teams and team members who continually improve their capability and contribution. • Developing, retaining and attracting the best people, reflective of our worldwide marketplace. • Hire and promote based on performance, capability and qualifications as key criteria. Look first to promote from within Dell. • Providing training and learning opportunities to maximize team and individual performances. • Investing in our people leadership capabilities as a competitive advantage. • Managing our talent as a key asset. • Utilizing job assignments across and within regions to build global leadership capability. • Promoting an environment that values individual differences, engages people in decision-making and encourages employees at all levels and across all parts of the company to work as a team. • Maintaining base pay and benefit programs competitive with successful companies relevant to our marketplace. The Soul of Dell At Dell, we value and are committed to: • Customers:Creating loyal customers by providing a superior experience at a great value. • The Dell Team: Our continued success lies in teamwork and the opportunity each team member has to learn, develop and grow. • Direct Relationships:Being direct in all we do. • Global Citizenship:Participating responsibly in the global marketplace. • Winning:Having a passion for winning in everything we do.

  10. How We Engage Our Employees • Competency based hiring – drive for results, flexibility, tolerance for ambiguity are key attributes • Objectives agreed and reviewed quarterly with each employee • Expectation that each employees has an Individual Development plan which is worked on with direct manager • Minimum 40 hours training per employee per year • Meritocracy – pay for performance and profit related bonuses • Open job postings advertised with preference given to internal candidates

  11. How We Engage Our Employees • Open and regular communication – strategy and business results shared, metrics reviewed daily in huddles • All staff meetings quarterly with question and answer session • Employee meetings with visiting senior executives – Michael Dell and Kevin Rollins • Quarterly Middle management meetings • Regular employee forums with senior managers (brown bag lunches) • Recent standing employee forum concept launch in UK/I sales • One to One meetings - typically bi-weekly – minimum monthly • Coaching and mentoring programmes • Weekly bulletin; monthly printed newsletter featuring company news plus Dell employees at work and in the community • Focus on non-work personal development • Community Involvement/volunteerism actively encouraged • Sports and Social events

  12. How we engage our employees – BPI • BPI is a set of tools and skills used to understand, investigate and improve business processes. • BPI Mission: • To empower employees with the knowledge, skill and tools in order to make Dell more efficient through reduced cycle time, improved quality or lower costs. • Why has Dell made BPI a priority? Because of its inherent benefits: BUSINESS: Quality, cost savings (more than $1.55B during FY04) EMPLOYEES: Effective teams, empowerment, career enhancing CUSTOMERS:Better Customer Experience through cost, quality and cycle time improvements

  13. Globalisation – the employee experience • Globalisation strategy enables growth by reaching new markets and ability to leverage resources around the world to provide our customers everywhere with great value and services, 24x7 • For UK & Ireland, this means dual site strategy for the home and small business (HSB) market with sales and support locations in both Ireland and India • Initial reaction amongst employees of fear and uncertainty has changed due to lack of impact on employment & one team approach • Keys to success: • Open communication • Sending employees on assignment to new locations – this has helped to create more of a sense of one team • Integration: regular updates on Indian team, features on Indian team in newsletter and other communication forums • Ongoing focus on sharing best practice with new teams in new locations • Growth brings opportunity: career development through redeployment & training

  14. Employee Engagement Trust Providing Feedback Developing Capability Creating Alignment Winning Culture Work/Life Effect. Instilling Ownership Managerial Effectiveness Inclusion Measuring How We’re Doing: “Tell Dell” • Twice-a-year, all-employee survey opinions on important drivers of Employee Engagement and a Winning Culture Which all drive

  15. Summary • Engagement requires understanding and buy-in to the dream! • Understanding is built on good communication, clarity of purpose and teamwork • Buy-in is based on people identifying with the dream either from a personal or organisational perspective, ideally both! • Also recognising & acting upon the fact that people need to have fun and a bigger sense of community. • Applying equal focus to building a great company & a great place to work

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