Linking Concert’s Strategies, Culture and People
HR ReviewMarch 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– Develop and Counsel– Reward and Retain
• Realizing the Potential
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
Concert Mission / People Vision
1 To make global communications truly seamless, reliable and hassle-free
2 To help customers utilize technology to enable and enhance business performance
3 To collaborate with customers to help them discover and realize new opportunities
4 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
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
Concert is a diverse global team of committed and enthusiastic professionals who achieve commercial success through:
‘Declaration of Culture’
• 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
TargetCulture
BehaviorsLeadershipCapabilities
Linking Strategic and Cultural Priorities
Develop a Leadership Model Which Reinforces Concert’s Target Culture ...
Linking Strategic and Cultural Priorities
… and is Driven by Business Strategies.
LeadershipCapabilitiesLeadershipCapabilities
OrganizationCapabilitiesOrganizationCapabilities
BusinessResults
BusinessResultsBusiness
StrategiesBusinessStrategies
Job Skills /KnowledgeJob Skills /Knowledge
“Line of Sight”
BusinessStrategiesBusinessStrategies
• 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
BusinessStrategies
OrganizationCapabilitiesOrganizationCapabilities
• 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
+ LeadershipCapabilitiesLeadershipCapabilitiesBusiness Organization
Strategies Capabilities
Target Culture
• 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
CustomerCustomer
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ResultsResults
Concert Leadership
Model
Concert Leadership
Model
Job Skills and Knowledge
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LeadershipCapabilitiesLeadershipCapabilities
Target Culture &Business Strategies
Target Culture &Business Strategies
Concert Leadership Model
Linking Strategic And Cultural Priorities
Implementation
Policies and Principles
Source and Select
Develop and Counsel
Reward and Retain
CustomerCustomer
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reativityC
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ResultsResults
Concert Leadership
Model
Concert Leadership
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Job Skills and Knowledge
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LeadershipCapabilitiesLeadershipCapabilities
Target Culture &Business Strategies
Target Culture &Business Strategies
Linking Strategic and Cultural PrioritiesModel being integrated into HR infrastructure:
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
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)
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
Goal:A world-class team of professionals capable of developing and achieving
Concert’s global business goals
Develop and Counsel - Model
CustomerCustomer
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reativityC
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ResultsResults
Concert Leadership
Model
Concert Leadership
Model
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LeadershipCapabilitiesLeadershipCapabilities
Target Culture &Business Strategies
Target Culture &Business Strategies
Job Requirements
Individuals:Job Skills and Knowledge
Individuals -- Core Leadership Capabilities
Enterprise -wide -- Culture
Organizations -- Team Effectiveness
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)
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
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)
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
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
Reward and Retain:Benefits Information
• Benefit Information Dissemination– Local meetings– Information on WEB - US & UK first– Local HR best point of contact
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
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
CustomerCustomer
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ResultsResults
Concert Leadership
Model
Concert Leadership
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Job Skills and Knowledge
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LeadershipCapabilitiesLeadershipCapabilities
Target Culture &Business Strategies
Target Culture &Business Strategies
Realizing the Potential