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Conference 7.286::digital

Title:The Digital way of working
Moderator:QUARK::LIONELON
Created:Fri Feb 14 1986
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:5321
Total number of notes:139771

1280.0. "The Art of Transitioning Fairly - An Example" by HERON::PERLA (Tony Perla) Thu Nov 22 1990 09:10

The London Sunday Times reported recently on a novel idea for transitioning
"redundant" personnel who, nonetheless, had a great deal of service - and 
therefore skill - which could be of marketing use to IBM. The article is
entitled "Thinning down payrolls the IBM way."

Recognizing that early-retirement schemes are costly and may mean the loss of 
valuable skills, they help create a consulting enterprise that sets the 
over-fifties free but keeps their talents on tap. This consultancy company, 
called Skillbase, offers those who retire a new career, without the difficulties
and financial risks usually encountred by long-term employees who strike out on 
their own.

It does this by providing them with a guaranteed amount of part-time employment,
90 days of work a year at 40% of previous base pay. They are then responsible to
obtain further client consultant contracts. Consultants may work at the rythm
which suits them and can take on as many client studies as they can responsibly
handle. Apparently, the business is off to a good start. Obviously, they have
a number of references from IBM itself which, for the initial capital 
investment, retains 40% of the equity stake.

T.RTitleUserPersonal
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1280.1BLUMON::QUODLINGDon't blame me, I didn't vote...Fri Nov 23 1990 01:2414
   A friend of Mine in IBM Australia, pointed out a similar plan to me. They
   had a number of Marketing people who were "marginally" beyond requirements.
   As with most employees, the cost of employment was close to 3 times their
   base salary (say 50,000). IBM helped them start their own consultancy,
   consulting Back to IBM. Their hourly rate went up, their utilization was
   lower. They made more money, IBM Spent less and got more for it. All were
   happy. 
   
   The "transition" organization seems to be concentrating on locating people
   in other corporations. Perhaps a few "mini-startups" funded by Digital may
   be in order. 
   
   q
   
1280.2COOKIE::LENNARDWed Nov 28 1990 14:253
    Yeh, we could sure use a similar approach for the management of some
    of our declining businesses, such as the PDP-11 world for the next few
    years.  I gotta think about this.....interesting
1280.3"Classic products", "Elite services"...BEAGLE::BREICHNERTue Dec 04 1990 09:4246
    re.2
    Dick,
    That idea is already beeing circled around.
    There was this "white book" describing "elite support" for "classic
    products". The conclusion was basically that the PDP world, classic
    products, cannot be supported to customer expectations nor cost-
    effectively within the "new" DEC.
    Logistics throw away precious spare parts because of low turn-around,
    First line service cannot motivate people to stay skilled in "old
    stuff"
    Existing software skills are hidden and difficult to locate.
    Engineering opportunities (e.g interface new periphals to replace
    unrepairable old ones) are lost because of the high overhead
    (worldwide maintainability requirements etc..)
    These sample problems led the author to propose "elite service"
    to be created. Sort of a traditional, small DEC within the big.
    
    When I read the proposal a few monthes ago, "packages", "redundancy"
    etc... became the hot topics of discussion.
    So I thought:
    Maybe we can solve both problems (too many people, PDP support)
    with one solution:
    It just happens now that as PDP11's (and 8's, 15's...) have matured,
    so have a few people. Why not match things.
    Folks who enter the 50ies just need to look forward to a 10 to 15
    professional career ahead before reaching formal retirement age.
    The PDP business might just have the same live-span.
    Therefore instead of offering "packages" it might be wiser to
    offer "PDP business" under some corporate umbrella.
    It's a win-win-win situation:
    Customers win the resources and service they need
    DIGITAL wins by "throwing away" less money and still reducing head-count.
    People win by beeing able to do and get paid for what they like(d)
    to do.                                               
    DIGITAL might be the only computer company beeing able to do this,
    as:
    1- The early days customers where mostly technical OEM's
    2- Many industrial control applications built by them  are still
       operational and need not necessarily to be migrated because
       of availability of "UNIX hot boxes"
    3- Enormous software investment hinders migration
    4- Up to now, DIGITAL has a reputation of beeing able to support
       "whatever has been sold in the past"
    
    What do you think ?
    /fred
1280.4Anyone else?ALOSWS::MULLERFred MullerSun Dec 09 1990 17:011
    -.1:  I heard this rumor too.  I am over 50. - Fred
1280.5good ideaHERON::LYSAABritt LYSAA @VBO E/ACTFri Dec 28 1990 11:195
    RE:
    
    The idea is great - what about getting it implemented?
    
    britt