MOSSCO®

CASE 2E:ACCELERATEDTECHNOLOGY

CHANGEMBHR 601 HUMAN RESOURCES MANAGEMENT

INDIVIDUAL PRESENTATIONJEFF CONRADAPRIL 06, 2004

MOSSCO®

MOSSCO WORLDWIDE

2004: 20 OFFICES IN 12 COUNTRIES

MOSSCO®

MOSSCOMarket Cap: $145.42MEmployees: 268Revenue Growth 0.90%Revenue $58.37MGross Margin 0.66Operating Margins 0.04Net Income ($1.12M)EPS 0P/ E Ratio 39.1

Source: Yahoo! Finance, US Software Industrieshttp://finance.yahoo.com/q/co?s=SAP

MOSSCO®

EMPLOYEE SURVEY 2002

_Strongly Agree

_Agree

_Neither

_Disagree

_Strongly Disagree

_MOSSCO MANAGEMENT IS CREDIBLE

8%

13%

18%

38%

23%

MOSSCO®

CLIENT SURVEY 2003

_Strongly Agree

_Agree

_Neither

_Disagree

_Strongly Disagree

_MOSSCO IS ADAPTING TO CLIENT NEEDS

9%

12%

19%

40%

20%

MOSSCO®

“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

MOSSCO®

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

MOSSCO®

MOSS.866 PLAN

Java

EJB

MOSS.865 MOSS.866Upgrades

RDF

CMMI

HR-XML

XML/XSLT

XCAL

XP

J(n)Unit

CLIENTS

MOSSCO

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

MOSSCO®

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

MOSSCO®

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

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

http://www.mercerhr.com/service/details.jhtml?idContent=1001385

MOSSCO®

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

MOSSCO®

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.

MOSSCO®

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

MOSSCO®

PROGRAMMER SALARIES TODAY

40000 50000 60000 70000 80000 90000 100000 110000 1200000

10

20

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.

MOSSCO®

PROPOSAL 2: CHANGE STATUS

_ PROGRAMMERS: 233, $14.3M

_ EXEMPT: 106 (NEW)

_ NON-EXEMPT: 127_ 54.5 % STAY NON-EXEMPT

_ $14.9M W/TRAINING0.80 x (1.20*1.50) = 104%

_ $13.0M W/TRAINING & EXEMPT

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

MOSSCO®

CHANGE CYCLE

MOSSCO®

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 GAINSAND PROGRESS

_ ANCHOR NEW WAYS

_ MONITOR PROGRESS

MOSSCO®

CONCLUSION

_ FOLLOW LABOR LAWS

_ PROVIDE CBT, TRAINING ON-SITE

_ TESTING

_ PROMOTE 100+ PROGRAMMERS TO EXEMPT STATUS

_ COMMUNICATE AND EXECUTE THE VISION

MOSSCO®

QUESTIONS?