SHRM Application Exercise

Infosys Technologies
Presentation By S Vishnupriya Rahul Ck Dheera Divya Akhil V
1 3/30/2014

INFOSYS- OVERVIEW
Indian multinational that provides business consulting,

technology, engineering and outsourcing services.

It is headquartered in Bangalore, Karnataka. Third-largest India-based IT services company by 2012

revenues.
Infosys has 798 clients across 30 countries.

3/30/2014

Contd
It provides software development, maintenance and

independent validation services to companies in banking, finance, insurance, manufacturing and other domains.
Infosys has a growing global presence of more than

160,000+ employees worldwide, 73 offices and 94 development centers in the United States, India, China, Australia, Japan, Middle East, and Europe.

3/30/2014

Mission & Vision

Infosys' Vision: "To be a globally respected corporation that provides bestof-breed business solutions, leveraging technology, delivered by best-in-class people." Infosys' Mission Statement : "To achieve our objectives in an environment of fairness, honesty, and courtesy towards our clients, employees, vendors and society at large."

3/30/2014

Values
Customer delight: The Company has committed itself to

surpass the expectations of their customers. Leadership by example: It has become an example for all the industries by setting themselves a standard in their business. Integrity and Transparency: all the dealings which they carry out are ethical and transparent. Fairness: the company has committed themselves to carry out all their dealings in such a way that they will be earning trust and respect from it. Pursuit of Excellence: They have committed themselves to continuously improve their teams, services and products.
3/30/2014

Industry Verticals or Domains Served

Aerospace and Defense Airlines Automotive Communicat ion Services Consumer Packaged Goods Education Energy Financial Services Healthcare High-Tech Hospitality and Leisure Industrial Manufacturi ng Insurance Logistics and Distribution Medical Devices Pharmaceutical and Biotech Public Sector Publishing Media Resources Industries Retail Utilities

3/30/2014

Diagnosis of Major Problems

1.
2.

New IT landscape
Competition from relatively modest firms and big guns Growing client base (clients has increased to nearly 800 from 460.) Employee dissatisfaction
3/30/2014

3.

4.
7

Basic factor on which Infosys is banking upon ?

Infosys has become more aggressive on pricing

Infosys has selectively diluted its high margin and premium

pricing policy to drive revenue growth. "They are not willing to lose incremental revenue market share to competition. These newer tactics compromises on Infosys's high margin strategy. But the company is trying to use other levers to keep margins from dipping much. One such big lever is improving employee utilization, which has fallen to below 70% in recent quarters.
8 3/30/2014

Major Strategies
The first one was the global delivery model. The model

emphasized on producing where it is most cost effective to produce and selling where it is most profitable to sell.
value chain ensures quality and increases value

The second feature of the strategy was moving up the

The third feature is PSPD. predictability of revenues sustainability of the predictions profitability of revenues a good de-risking model.
9 3/30/2014

2. Tasks undertaken to implement the strategies

Infosys will have to focus on reducing costs by trimming

the number of senior employees and subcontractors it employs at on-site locations as the company is well positioned to regain its lost market share.
It has to rethink about the increasing cost of adherence to

global best practices.

Introduced a service called as PRIDE (Process

10

Repository @ Infosys for Driving Excellence). so that the company can gain efficiency, increased production and better quality in all the processes that are being carried out by the company. 3/30/2014

Contd
Focusing mainly on improving the skills of their employees

Infosys has achieved an enormous growth in their business and this has been a distinguishing factor from all its competitors as per the opinions of the companys customers.
Infosys is trying to extend their competencies by leveraging

on IT Infrastructure Services (IT IS). It contributes only 7% to Infosys's revenues, the lowest in its peer group.
Infosys has forged ties with cloud service providers to
11

service infrastructure clients.

3/30/2014

3.Specialized Competencies

12

3/30/2014

Coordination
Multi-sourcing Governance through Operational Level

Agreements.
Infosys has adopted and refined the concept of Operational

Level Agreements (OLAs), a metric-based approach to coordinate and manage multiple services.

13

3/30/2014

Managerial competence
Infosys has inducted 12 new faces to the executive council

(EC). This takes the total strength of its highest decisionmaking body to 30. They have strengthened the executive council to help drive focus on key growth areas. Members of the executive council will participate in the company's business direction beyond their functional role. These leaders have the ability to transform themselves as solution providers standing their ground, and some could potentially make it to the company's succession slate as well.
14 3/30/2014

Communication
Employees were encouraged to communicate with each

other and with the higher management about interesting ideas and ways of solving problems through the electronic bulletin boards.
To improve communication, the managing director sent

mails every fortnight.

15

3/30/2014

Creativity @ Infosys
Innovation co-creation at Infosys Labs
At Infosys Labs, co-creation with partners, academics, and

customers sits at the core of innovations in emerging technologies to build tomorrows enterprise.
Cross-industry innovation and co-creation are imperative to

enhance the quality of ideation.

16

3/30/2014

Organizational Alignment with Strategic Task

17

3/30/2014

Organizational Alignment
INFOSYS works with clients in the course of their

everyday work activities to help them achieve needed results.

Infosys have worked with a wide array of organizations

helping them with practical, usable support and advice that can be translated to daily business challenges solved through implementation of new technologies or systems.

18

3/30/2014

 As world continues to change Infosys specialize in

providing strategies that incorporates transition as it relates to technology with flexibility to achieve optimum performance from the systems implemented.
Lack of user input, incomplete requirements and

especially changing requirements are some of the major reasons why information technology projects do not deliver the planned functionality on schedule and within budget.

19

3/30/2014

 Meaningful performance in Infosys is to align every

thought, action and behaviour with clearly defined and communicated goals from the company's executive team.
Infosys has achieved organisational alignment through

listening and observing through organizational assessments and done for other information technology.

20

3/30/2014

Value Message of Infosys

Customer Delight Leadership by example Transparency Fairness

Pursuit of excellence

21

3/30/2014

Culture Ingredients in Infosys

Innovative Detail oriented

Aggressive

People oriented

Organization culture profile

Outcome Oriented

Team oriented

Stable

22

3/30/2014

23

3/30/2014

Infosys leadership process

Skill Training

Action learning

Feedback system

Infosys Culture

360 Appraisal

24

3/30/2014

Infosys Global Strategy

Global Delivery model

-Producing where it is most cost effective to produce and sell where it is most profitable to sell
Moving up the value chain

- Getting involved in a software development program at the earlier stage of its life cycle

25

3/30/2014

PSPD Model
Producti vity

Derris king

PSPD Model

Sustaina bility

Profitabi lity

26

3/30/2014

Creativity and Innovation Barriers

Lack of Motivation and lack of trust Lack of acceptance and tolerance of criticism in the

conflict.

Conservatism and authoritarian management

27

3/30/2014

Infosys creative thinking strategies

Re-engineering of organizational culture Creative education and cultural cooperation Review proposals and re-engineering Appreciation of the creative staff

28

3/30/2014

Infosys Leadership Model

Strategic Leadership Establish and commit to a long range course actionto accomplish a long-range goal or vision that sustainably gives Infosys an edge. Continually creating new differentiators and challenging assumptions made about current strategies in order to persistently move ahead of competition. Manage through the inevitable sources of resistance that comes with transformational leadership Devise change strategy Create processes and systems that mitigate the risk of adoption of new innovation Leading operations involves systematically applying a portfolio of methods that achieve high degrees of efficiency, productivity and quality. Institutionalizing a culture of achievement; proactive prevention of defects, process innovation and improvement in order to realize goals around delighting customers consistently are also 3/30/2014 crucial.

Change/Adversity Leadership

Operational Leadership

29

Talent Leadership

Select, develop, and manage the performance of a team capable of executing the vision Attract, develop, and retain highly capable individuals to build the leadership pipeline Create an effective work climate to drive performance and requisite learning Develop, maintain, and leverage long-term internal and external relationships/networks Build effective relationships beyond just transactions with all internal and external business partners to the point of being a completely trusted advisor Create and leverage deep domain expertise in order to energize your strategy and team. Content leadership is about possessing and creating knowledge and mental models in your core discipline to outthink the competition.
3/30/2014

Relationship/Networkin g leadership

Content leadership

30

Entrepreneurial leadership

Incubate new business ideas, models and working arrangements in new markets, new product segments and services to drive growth.

31

3/30/2014

Nine pillars of Infosys values

System process learning

Feedback

Developmental Relationships

Leadership skill training

Infosys culture workshop Developme nt assignments 360 Degre e Feedb ack

32

3/30/2014

Organization Architecture
Shared values
Staff

style

Structure

systems
3/30/2014

33

Major Area Of Deficiencies

Infosys is facing a major deficiencies on the structure of the

organization. There is a major problem considered in regard with the top management running the organization. There is mismatch of the speed in the work progress between the top and lower level peers employees. Lack of relationship between the top and middle management

34

3/30/2014

 Secondly the major deficiencies identified are on the style

of working in the organization.

Employee rating are often biased on the company

performance and the strategic decision taken on the past.

Lack of infrastructure management.

35

3/30/2014

 Lack of balance between scaling up the existing operation

while selling the future vision of the company.

Infosys strategy cement the future of the business while

hurting the performance today..

36

3/30/2014

Infosys Structure

37

3/30/2014

Employee Dissatisfaction
Peer to Peer communication is lacking which is leading to a

time consuming process in the strategy.

Employee are dissatisfied with the pace of work with the

top level management which is leading to the dissatisfaction of the employees.

Employee performance are measured on the company

performance of the strategy which causes slack in the energy of the employees

38

3/30/2014

 Infosys is reluctant to new acquisitions which has lead to a

crisis and establishing themselves in the foreign market. This is hindered the strategy in new IT landscape.
Loosing out traditional strength while dealing with large

clients have mismatched in dealing with a growing client base.

39

3/30/2014

Competition
Lack of devotion to profitability has caused a major

deficiency in the competition in relatively modest firms.

Flexible pricing system of Infosys have hindered in the

operational profitability of the business.

Lack of spending on sales and marketing have created in

the lack of reach of the product and the competitors have over performed by 8 to 16 %

40

3/30/2014

 Lack of aggression have caused deficiencies in the style of

working of the organization.

The top management pace of work is respectively low with

that of the employees.

Lack of clarity have caused problem in the shared value

system of team orientation.

41

3/30/2014

Design a strategically aligned organizational model of your company

42

3/30/2014

Changes In Values
Can develop unconventional approach Focus more on employee centric approach Longer employee working tenure helped the company to

maintain a long-term relationship with customers and to maintain a competitive advantage over its rival software developers

Changes in structure
Decentralization They can divided into IBUs (India Business Units), each

IBU concentrated on a particular sector and this made the company more customer-focused. Managers of each IBU were empowered to take decisions to further the IBUs prospects and within each IBU the project matrix structure was carried forward. Decentralized system with an ability to take quick decisions

Changes in system
Should follow Open system Free-flowing information Output from one system becomes input to another

Reduced Effort: Automated testing of controls reduces effort for review. Reduced Audit Cost: Auditors place greater reliance on automated testing and reduce effort on substantive testing. Increased Frequency of Audit: CCM enables more frequent audit with reduced cost. Multi-Compliance Capability: CCM supports compliance with multiple regulations thereby ensuring controls are tested only once.

CHANGES IN STYLE
recognizes the importance of staffing, the value of

its human resource. So they put lot of attentions towards their assets. They have:Long working hours High variable salary Stiff dress code policy Low package than industrial average. ESOP options Reward system for overtime pay, merit par & skilled based pay.

contin..
A virtual organization has parts of the organization in

different physical locations Computer networks and communications technology are used to work on projects

47

3/30/2014

Describe exactly how things will function differently to increase one or more capabilities

Continue..
We think that by improving employee skills it helps infosys

to deliver the products as fast as possible according to the client specification through process quality and process cycle time. Through this company can achieve customer satisfaction and finally it will lead to increase in revenue of the organization

What are the flaws in design what new problems does it create?
Employee centric approach will lead to increase cost for the

organization trimming the number of senior employees and subcontractors will lead to employee dissatifaction The change in structure can effect the flaw of the organization

Diagnosing organizations capabilities

51

3/30/2014

 Employee dissatisfaction. There is a need for change. The

manager has a responsibility to facilitate and enable change. Change must involve the people - change must not be imposed upon the people. To implement model of how the business organized & managed to achieve its strategic tasks To diagnose the capabilities of the organization & the environment in which it works.

52

3/30/2014

The Environment of Infosys

Environmental scanning -

External environment - PESTEL analysis

1. Political Stability: Indian political structure is considered stable enough and Govt. of India has set up a National Task Force on IT and software development to examine the feasibility of strengthening the industry. 2. U.S government declaration that U.S companies that will outsource I.T works to other locations other than U.S will not get tax benefit. 3. Government owned companies and PSUs have decided to give more IT projects to Indian companies. 4. Terrorist attack or war. Positive

Politica l

Negativ e

Positive
Negativ e
3/30/2014

53

Economi c

1. Global IT Spending (Demand) from USA will increase in FY 2010. 2. Domestic IT Spending (Demand): The Indian domestic market will grow by 12.9 percent through 2013. 3. Currency Fluctuation. 4. Real Estate Prices: Decline in real estate prices has resulted in reduction of rental expenditure. 5. Attrition: After U.S recession in 2008-2009, companies are on a hiring spree and there is a revival of the job market, attrition rate is going to be high in 2010. 6. Economic Attractiveness due to cost advantage and other factors.

Positive Positive

Negativ e Positive Negativ e

Positive

54

3/30/2014

55

3/30/2014

Social

1. Language Spoken: India has the second largest English-speaking scientific professionals in the world, second only to the U.S. English medium being the most accepted medium of education. Thus India boasts of large English speaking population. 2. Education: It is estimated that India has over 4 million technical workers, over 1,832 educational institutions and polytechnics, which train more than 67,785 computer software professionals every year. 3. Working age population

Highly Positive

Highly Positive

Positive

56

3/30/2014

Working population as a percentage of total population

57

3/30/2014

Technologi cal

1. Telephony: a. India has the worlds lowest call rates b. Expected to have total subscriber base of about 800 million by 2015. c. India has the second largest telephone network after china. d. Teledensity of India is 49.50% e. Enterprise telephone services, 3G, Wi-max and VPN are poised to grow. 2. Internet Backbone: Due to IT revolution of 90s, Indian cities and India is well connected with undersea optical cables. 3. New IT Technologies: Technologies like SOA, Web 2.0, High definition content, grid computing etc and innovation in low cost technologies is presenting new challenges and opportunities for Indian IT industry.

Highly Positive

Positive

Positive

58

3/30/2014

Environmen tal

Energy efficient processes and equipments: Companies are focusing on reducing the carbon footprints, energy utilization, water consumption, etc.

Positive

59

3/30/2014

Legal

1. IT SEZ Requirement: IT Companies can set up SEZ with minimum area of 10 hectares and enjoy a host of tax benefits and fiscal benefits. 2. Contract / Bond requirements: Huge debates surrounding the bonds under which the employees are required to work, which is not legally required. 3. IT Act: Indian government is strengthening the IT act, 2000 to provide a sound legal environment for companies to operate especially related to security of data in transmission and storage, etc. 4. Companies operating in Software Technology Park (STPI) scheme was getting tax-benefit till 2010.

Positive

Negativ e

Positive

Negativ e

60

3/30/2014

Internal Environment- SWOT Analysis

Strengths:

Leadership in sophisticated solutions that enable

61

clients to optimize the efficiency of their business. It has proven Global Delivery Model. (GDM). Commitment to superior quality and process execution. Strong Brand and long term client relationship. Status as an employer of choice in 2004. Ability to scale up. Innovation and leadership.
3/30/2014

 Weakness:
Excessive dependence on US for revenues

62

67% revenue from USA Excessive dependence on BFSI sectors for revenues. Weak player in Indian market. Only 1% revenue from India.. Low R&D spending as compared to other global IT companies. Only 1.3% of total revenue. Low expertise in high end consultancy and KPO. Infosys faces the highest attrition rate of 16% in the Indian software industry. Low compensation packages.
3/30/2014

 Opportunities:
Domestic market to grow by 20%. Expanding into new

63

geographies like Europe, Middle East, Latin America, China etc. Cash Rich (around USD 1 Billion) Acquiring companies to increase expertise in consultancy, KPO and package implementation capabilities. It acquired Zurich-based Lodestone Management Consultancy, which gives Infosys a profitable and strategic SAP customer base. Opening new offices and development centres in cost advantage countries such as Latin America and Eastern Europe. Aggressive strategy of expansion of ADMs, BPO, and software products into emerging markets. Diversification into new areas such as aviation, 3/30/2014 telecom and health care.

 Threats: The economic pressure, rising wage, pricing

pressure in India and abroad. Intense competition in market for technology services could affect cost advantage. Failure to complete fixed priced, fixed time frame projects on time. So the company needs to shift to Time and Money kind of projects. Indian currency fluctuation.

64

3/30/2014

Snow Card Technique

The Snow Card Technique is a means by which

ideas are filed into clusters of similarity. Clusters are then identified as categories which are sorted in some meaningful manner. The diverse ideas of a group of contributors can be aligned in ways that represent the overall group notions and agreements for particular issues.

65

3/30/2014

Process
Participants are faced with questions and write

down possible answers on a sheet of paper. Participants choose a handful of their best answers and write them, one each, on large white cards. The facilitator takes all cards and attaches them to a board or wall in clusters of similarity. The group chooses a category name to represent each cluster and the facilitator labels them as such. Participants, as a group, are given the chance to rearrange cards, refine categories, and remove redundancies.
3/30/2014

66

 As a group, order the clusters in some meaningful

way such as in order of importance or temporally. Discuss the results with respect to the original question, hopefully arriving at further insights through comparison and contrast. Finally they come to some common solutions to the question.

67

3/30/2014

Improve capabilities
Reward system compensation package not up

to industry average performance based reward , spot reward. Performance Appraisal -360 degree, MBO ,modern techniques. Employee Retention Programs- employee engagement, coaching ,mentoring, flexible working hours.

68

3/30/2014

If you are the general manager what are the implications for your own role, particularly your leadership of the organization, and how will you spend your time?
Being the GM first duty is to make sure that strategies

69

implemented are executed with out fail. Monitoring the tasks undertaken to implement the strategies. Keep an eye on the existing employees morale during terminations. Effectively look after people management. Leadership by aligning personal and organizational goal. create more control while creating IBUs.
3/30/2014

Cont...
Monitor the decentralized approach.

Control the cost incurred in frequent audits.

Proper time keeping. Motion study. Over time work assessment. Play a vital role in employee skill development.

70

3/30/2014

If you are not the general manger of the organization how can u help your boss gain new insights about the organization and lead a change process?
Collecting the feed back from the employees regarding

71

the present problems. Analyzing their view towards the change. Finding out ways to improve employee satisfaction Suggesting proper appraisal system Could help the boss to create a continuous learning organization. Preparing the environment prior to change. Post change feed backs and follow ups.
3/30/2014

Plan in concrete terms the first step you plan to take when you return to your organization to begin the change process , what are the personal and organizational risk?
Preparing both internal and external environment

for change is the first and foremost challenge. Freezing process. The change in structure can effect the flaw of the organization. It could increase the cost. trimming the number of senior employees and subcontractors will lead to employee dissatisfaction.
72 3/30/2014

References
http://my.safaribooksonline.com/book/-/9780749465506/13-

73

organizationdevelopment/organizational_diagnosis#X2ludGVybmFsX0J2ZG VwRmxhc2hSZWFkZXI/eG1saWQ9OTc4MDc0OTQ2NTUwNi8z Mg== http://www.virginia.edu/processsimplification/resources/Impleme nting%20Change.pdf http://www.uri.edu/research/lrc/scholl/webnotes/Strategy.htm http://hal.univnantes.fr/docs/00/49/79/33/PDF/Organizational_capabilities_ass essment.pdf https://www.inkling.com/read/diagnosing-and-changingorganizational-culture-cameron-quinn-3rd/chapter-5/steps-fordesigning-an http://hbr.org/web/ideas-in-practice/the-secrets-to-strategyexecution-the-idea-in-practice http://www.innovationpoint.com/Strategic%20Innovation%20White%20Paper.pdf 3/30/2014 http://www.raumer.com/articles%20and%20presentations/Strateg ic%20Innovation%20White%20Paper.pdf

 http://www.marketingteacher.com/swot/infosys

74

swot.html http://rswotdotcom.wordpress.com/2013/05/19/sw ot-analysis-infosys-technology/ http://project-managementsj.blogspot.in/2013/06/infosys-technologies-swotanalysis-from.html http://www.moneycontrol.com/news/management/ infosys-swot-analysis_220864.html http://www.scribd.com/doc/30441698/SwotAnalysis-Infosys http://www.slideshare.net/ArunPrakash21/442286 77strategicmanagementatinfosysbusinessstrategy http://www.cooperationcompany.com/Miscellaneo 3/30/2014 us-files/Snow%20Carding%20Tip%20Sheet.pdf

 http://sloanreview.mit.edu/article/five-steps-to-leading

75

change-successfully/ http://www.performancexpress.org/wpcontent/uploads/2011/11/Organizational-ChangeMotivation.pdf http://mld.mckinsey.com/downloads/centers/How_do_I_ret ain_and_motivate_my_key_people_during_organizational_ change.pdf http://smallbusiness.chron.com/three-methods-motivateemployees-organizational-change-35669.html http://blog.eskill.com/employees-engaged-motivated/ http://www.businessballs.com/changemanagement.htm http://guides.wsj.com/management/managing-yourpeople/how-to-motivate-workers-in-tough-times/ http://www.mindtools.com/pages/article/MonroeMotivatedS equence.htm http://www.carlsonschool.umn.edu/assets/42582.pdf http://www2.pathfinder.org/site/DocServer/Strategic_Planni 3/30/2014 ng.pdf?docID=321

References
http://www.ukessays.com/essays/business/review-strategic-aims-and

76

objectives-of-infosys-business-essay.php http://www.asec-sldi.org/dotAsset/292791.pdf http://timesofindia.indiatimes.com/tech/enterprise-it/strategy/Infosysnew-strategy-for-deals-looks-to-be-payingoff/articleshow/19484364.cms http://articles.economictimes.indiatimes.com/2013-1224/news/45540187_1_nr-narayana-murthy-v-balakrishnan-infosysstock http://www.infosys.com/infosys-labs/publications/Documents/socialmedia-computing/social-networking-coordinate-business-processes.pdf http://timesofindia.indiatimes.com/tech/careers/job-trends/Infosysinducts-12-executives-into-managementteam/articleshow/24678879.cms http://www.infosys.com/infosys-labs/innovation-co3/30/2014 creation/pages/index.aspx

77

3/30/2014