CASE 2E:
ACCELERATED
TECHNOLOGY
CHANGE

MBHR 601

HUMAN RESOURCES MANAGEMENT

INDIVIDUAL PRESENTATION

JEFF CONRAD

APRIL 06, 2004

MOSSCO WORLDWIDE

2004: 20 OFFICES IN
12 COUNTRIES

MOSSCO

Source:	Yahoo! Finance, US Software Industries

http://finance.yahoo.com/q/co?s=SAP

EMPLOYEE SURVEY 2002

_Strongly Agree

_Agree

_Neither

_Disagree

_Strongly Disagree

_MOSSCO MANAGEMENT IS CREDIBLE

8%

13%

18%

38%

23%

CLIENT SURVEY 2003

_Strongly Agree

_Agree

_Neither

_Disagree

_Strongly Disagree

_MOSSCO IS ADAPTING TO CLIENT NEEDS

9%

12%

19%

40%

20%

“When I set out to create MOSS.865, do you think it just happened overnight? No. There was MOSS.1, that burnt down my Dad’s garage, there was MOSS.2 that would only schedule appointments in January, and 862 others that I learned from.”

- PETE BECKER, CEO, CTO

MOSSCO

MOSSCO - A HISTORY OF ADAPTING

TECHNOLOGY CHANGE

GLOBAL COMPETITION

CURRENT PRODUCT WRITTEN IN PERL, iCALENDAR (vCALENDAR), PROPIETARY DATABASE

NOT SCALABLE, DIFFICULT TO INTERNATIONALIZE

CLIENTS WANT MOSS TO ADAPT TO RDF, XCALENDAR, JDBC

Source:	http://www.w3.org/2002/12/cal/

http://inet-consulting.com/xcal.txt

MOSS.866 PLAN

Java

EJB

MOSS.865

MOSS.866

Upgrades

RDF

CMMI

HR-XML

XML/XSLT

XCAL

XP

J(n)Unit

CLIENTS

MOSSCO

TRAINING - INITIAL PROPOSAL

18 MONTHS UNTIL MOSS.866

3 MONTHS OF TRAINING PER EMPLOYEE

“DUE TO FINANCIAL SITUATION, CANNOT PAY FOR TRAINING DURING WORK HOURS”

TODAY'S PROGRAMMER WORK FORCE IS NON-EXEMPT

FLSA (1938)

Training taken during nonovertime hours of an employee's regular work day is work payable at the employee's basic rate.

Professionals working in a "computer related occupation" who earn more than $27.63 per hour can still be paid on an hourly basis and remain exempt from overtime under the FLSA.

Source:	http://www.topechelon.com/recruiters/

contracting/flsa1.htm

FLSA PENALTIES

DETERMINED BY 29 CFR 578.4

1-3 YEARS OF BACK PAY PER EMPLOYEE.

CIVIL PENALTIES OF $1,000 FOR EACH PAYCHECK THAT DID NOT INCLUDE OVERTIME

INDIVIDUAL LIABILITY FOR THE MANAGERS RESPONSIBLE

CRIMINAL PENALTIES AND JAIL TIME

Sources:	http://www.dol.gov/dol/allcfr/

ESA/Title_29/Part_578/29CFR578.4.htm

http://www.mercerhr.com/service/

details.jhtml?idContent=1001385

LINEAR ANALYSIS

FORECAST

TREND ANALYSIS

FORECASTING SOFTWARE (SINCE MOSS.800)

RESULTS - STATUS QUO

80% CURRENT WORKFORCE (20% LESS)

NON-EXEMPT: 150% OVERTIME PAY

ESTIMATE 20% TIME PER WEEK IN TRAINING

NOT INCLUDED IN ESTIMATES: 4x PRODUCTIVITY

PROPOSAL 1: COMPUTER-BASED TRAINING (CBT)

ANALYZE TRAINING NEEDS

INTERACTIVE TECH REDUCE TIME BY 50%

PROGRAMMED INSTRUCTION IS AT OWN PACE

PHASED IN LEARNING

COMPUTER-BASED TESTING

Source:	Miller, R. (2004). “New Training Looms.”

Hotel and Motel Management. April 4, 1994.

CBT - TESTING /QUALIFICATION

3 PERIODS - 18 MONTHS

EACH PERIOD 6 MONTHS

TESTING AT END OF EACH PERIOD

CANNOT ENTER MOSS.866 PIPELINE WITHOUT UNDERSTANDING REQUIREMENTS

PROGRAMMER SALARIES TODAY

EMPLOYEES

SALARY [USD}

EXEMPT:

$27.63/hr x 40hr/wk x 52wk = $57,470

NON-EXEMPT:
127

POTENTIALLY EXEMPT:

106

Source:	Approximate compensation ranges from:
http://www.monster.com.

PROPOSAL 2: CHANGE STATUS

PROGRAMMERS: 233, $14.3M

EXEMPT: 106 (NEW)

NON-EXEMPT: 127

54.5 % STAY NON-EXEMPT

$14.9M W/TRAINING
0.80 x (1.20*1.50) = 104%

$13.0M W/TRAINING & EXEMPT

0.8*(#Non-exempt*(1.2*1.5) + #Exempt) = 91%

CHANGE CYCLE

PROPOSAL 3: LEAD THE CHANGE

ESTABLISH URGENCY

JOINT DIAGNOSIS

GUIDING COALITION

SHARED VISION

COMMUNICATE THE VISION

HELP MAKE THE CHANGE

GATHER SHORT-TERM WINS

CONSOLIDATE GAINS
AND PROGRESS

ANCHOR NEW WAYS

MONITOR PROGRESS

CONCLUSION

FOLLOW LABOR LAWS

PROVIDE CBT, TRAINING ON-SITE

TESTING

PROMOTE 100+ PROGRAMMERS TO EXEMPT STATUS

COMMUNICATE AND EXECUTE THE VISION

QUESTIONS?

2004-04-05T22:10:10