Page 158 - DMGT548_GLOBAL_HRM

Unit 8: International Compensation

This strategy begins with clear to links Lucent’s five simultaneous equations: five financial Notes
goals (example double return on assets, achieve double-digit growth in revenue and
operating income while maintaining gross margins) and five growth goals (above market
growth rates in five specific business areas). Lucent intends to drive this growth through
the development of a High Performance Operating Environment, using the acronym
GROWS to indicate the importance of:
1. Global growth mindset;

2. Result, not activity focus;
3. Obsession with customers and about competitors;
4. An underlying, pervasive emphasis on Work and Speed.
The new HR structure is organised around a client service model that focuses on its pre-
eminent clients, on the leaders in the major business units charged with achieving these
financial and growth goals. A key feature of this strategy is the movement of as much of
HR as possible to these business units.
High Impact HR Policies at Lucent
Lucent’s new HR structure is the foundation of the high-profile role HR will play in the
company. The model emphasises client services at three levels of the organisation:
individual employee/retiree (nearly 3,00,000) in total, supervisor/coaches (33,000) and
senior leaders (381). There is a delivery channel established for each of these clients that
draws on separate HR policy and centres of excellence. At one level, Lucent is committed
to operational excellence on a one-to-one interface. For example, Lucent reports that 90%
of the clients using the employee centre have their problems handled on the first call.
Business HR Services has moved from 115 days’ job requisition to start date to less than 40
days. More than 85% of all clients using HR’s business services report being ‘very satisfied’
with HR; the goal is 90%.
The lynchpin for value creation throughout Lucent, however, is the role of HR business
partners in which HR leaders work directly with the senior business leaders to implement
business strategy. While the business partners, and indeed each of the three delivery
channels are measured against strict client satisfaction objectives, their ultimate goal is for
the senior executives to say at the end of the year, “we were very successful and could not
have done without HR.” The vision requires strong commitment to the senior leadership
that HR is working on their problems and that all HR initiative are always focused on
solutions for their clients. The details mean going to staff meetings, even when there are
no HR issues to be discussed, so HR representatives can better understand the business
and contribute to business decisions beyond HR issues; or the creation of team of 58 HR
professionals (The HR Accelerators) whose job is to find and eliminate (dismantle) HR
policies and practices that no longer add value to Lucent’s shareholders; or it means
bringing the marketing manager from network systems to address a video town meeting
of the worldwide Lucent’s HR community. The speaker describes what is required to
significantly grow business and how HR can partner in these efforts (better motivational
programmes for the sales force, new competencies based on future oriented thinking, and
so on).
Competency Model for Business Partner Role

Lucent also developed a new competency model to support the development of the business
partner role HR. The competencies were developed using internal reviews and external

Contd...

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