T.R | Title | User | Personal Name | Date | Lines |
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1272.1 | Dammed if you do, Dammed if you don't | LRGFMT::FIELDS | | Tue Nov 13 1990 19:50 | 27 |
|
I am caught in the middle of this issue:
I know some engineers who attended that award ceremony
and I must say that they deserved it, and it boosted their morale,
and will effect their performance in the future.
On the one side, can we afford to give out trips
like this, during these times? Its kind of a dammed if you do,
dammed if you don't. There are people who work long hours, away
from family, get called out of bed in the middle of night, or
during dinner for work, and they need to have a pat on the back for
their efforts, something solid that says their not being taken for
granted and they are appreciated.
On the other side, during times where we are forced to bite
the bullet, and trying to turn things around, can we afford to
do something like this? From what I gather, DEC basically took
over Hyatt's resort on the big island, and sent down a couple
hundred people to stay in $300/night rooms for a week for a party.
Any other thoughts?
|
1272.2 | Boy am I green | WMOIS::FULTI | | Tue Nov 13 1990 20:03 | 16 |
| > Any other thoughts?
Yea!!! I have one, "wish to hell I was one of those that went".
Seems like the typical boondoggle that starts out with honorable
intentions "honor them worker bees that have spent more time lately
with the VAXes then the spouses" but ends up with the n honorees plus
(n 4) managers.s.
Typical Grace Hopper approach, something about it being easier to
apologize after then to get permission before.
- George
|
1272.3 | | MU::PORTER | vividly evokes a post-despair world | Tue Nov 13 1990 20:44 | 2 |
| Isn't that one of the official project phases -- 'rewarding
the non-participants' ?
|
1272.4 | | EAGLE1::BRUNNER | Moonbase Alpha | Tue Nov 13 1990 23:05 | 2 |
| Given how rough it is in the field, if at least some of the hard working
folks in the field got to attend this event, then it can't be all bad.
|
1272.5 | Challenge of Excellence | SUBWAY::DILLARD | | Wed Nov 14 1990 00:03 | 21 |
| I think the event you are talking about is the Challenge of Excellence.
This is a combination of the formerly seperate awards programs of
sales, customer services and EIS. For those that may not know these
awards programs have been in place for years.
I can't say for all of the groups, but for EIS the participation rate
was about 12% (depending on the groups performance against revenue,
profit and customer sat. goals).
Given the selection criteria I would hardly call it a boondoggle! If
you made 400% of your budget (not uncommon among the sales criteria)
don't you deserve reward and recognition?
As for the other attendees, I can't say. In the field district
managers only attend if they win the award. In the past it was only
open to the field groups I mentioned. Engineering?
Can the company afford it? Can the company afford not to recognize its
top producers who work with our customers.
Peter Dillard
|
1272.6 | | BLUMON::QUODLING | Don't blame me, I didn't vote... | Wed Nov 14 1990 00:16 | 19 |
| re .0
... while Digital is letting people go....
Watch my (and Jack Smith's, and Ken's ) lips. The company has grown too
fast. It is being down sized. We are not going to the wall. We are
successfull Multi Billion dollar corporation, that's needs have expanded for
the last thirty years without any long range planning. We have reached a
minor down turn in the economy, which has brought it home to us, that we
are over staffed. Now, if we don't stop running around like chicken little
crying "The sky is falling", we will come out of this downturn and not
realize it. As a Multibillion dollar corporation, we still have valid
business expenses, and they include recognition for the achievers.
Cmon, folks, lets stop Nickel and Diming Digital into oblivion, and take
advantage of where we stand.
Q
|
1272.7 | Nickles and Dimes | SAURUS::AICHER | | Wed Nov 14 1990 07:27 | 23 |
| re: > Watch my (and Jack Smith's, and Ken's ) lips.
I think I'll watch his...not yours....
Jack Smith from 1213.0.
"Every area of cost must be examined for cost-reduction
opportunities. There are, of course, the big ticket items;
excess people, space, equipment, travel, etc. But, if you run
the projections, these items only get us half of what we require
to get back on our profit track. The rest must come from the
"little stuff". No cost saving idea is too small, every
suggestion will be heard, analyzed and acted on.
It was suggested to me that I stop publicizing "the small stuff
in bits and pieces"; that it is being interpreted as reactive.
"Smith should be on the 'big stuff'." The advice was to get a
masterplan together and then we could reference everything we are
doing to the masterplan. Clear leadership, organization, forward
thinking, control of the total situation would be the resulting
message. "
Mark
|
1272.8 | | AGENT::LYKENS | Manage business, Lead people | Wed Nov 14 1990 08:46 | 16 |
| Regardless of how people feel about the merit of these events, they are by
virtue of their size planned YEARS in advance. You don't get to occupy an entire
major hotel by calling for reservations a month in advance. I assume this means
a major financial commitment upfront.
Do we stop planning for a recognition event for '92 because of the current
economic climate? If we do and Digital's fortunes once again turn healthy in a
major way, what message will we be delivering to the awardees in '92 when they
pick up their plaque at the local bar and grill? I believe we must keep events
such as this in place to give the hard working folks both the recognition and
a break from the grind.
I'm a manger who had three employees earn the trip to Hawaii...and no, I
didn't go.
-Terry
|
1272.9 | One ex-manager's opinion | MOCA::BELDIN | Pull us together, not apart | Wed Nov 14 1990 08:46 | 22 |
| I have several reactions.
1) Substantial, visible achievements should be recognized when
they occur or when the value becomes apparent, not at a periodic
'recognition activity' for 'all superstars'. When this is the
practice, major expenditures can be avoided because the employee
craves the reward of being treated like a productive human being
more than materialistic and anonymous rewards delayed.
2) Cumulative achievements should be recognized by performance
review impact, backed up with 'pay for the performance'.
Substitution of the legitimate review by a 'boondoggle' is really
poor management practice.
3) Paul Quodling has a point. We should not be in panic mode,
trying to cut every expense in sight. But I believe this
'traditional' reward system is the result of 'traditionally bad
management' as described in 1) and 2) above.
Regards,
Dick
|
1272.10 | A few cents worth | CSOA1::ROOT | North Central States Regional Support | Wed Nov 14 1990 11:14 | 23 |
| RE: .6
Your complaint about lets stop nicke and dimeing DEC to death is
responding just like our congress to budget cuts. They and you forget
that all of DEC (and america) is and should be affected by these
cutbacks. It always hurts when it come home to roost in your own
backyard. All cuts large or small in any one area become large cuts
when rolled up to include the company (or the country) as a whole. Yes
in times like these trips and awards like these still have a tendency
to become overused/abused by tag alongs who really did not participate
in the savings or productity that created the award winning sitiation
in the first place. Business as usual, or continuing to do today as we
did/abused in the past is not acceptable during these hard times. Every
one likes a pat on the back for a job well done but this is not the
time to continue the excesses and bad practices of the past. Either we
get serious about turning this company around or we continue to loose
and continue with the layoffs/buyouts (call them what ever you want)
and lower profits.
Regards
AL ROOT
|
1272.11 | Nauseating.... | COOKIE::LENNARD | | Wed Nov 14 1990 11:14 | 9 |
| These boon-doggles are becoming just a bit too much. How about all the
thousand's of other in the Corporation who are busting their humps
with 60-80 hours a week (I do not include myself in this category)?
I don't think the field folks who set these things up realize what a
slap in the face it is to others.....not to mention to real morale
problems it creates. If these field people are so extraordinary,
quietly give them a bonus.....but don't rub it in everyone else's
face. I don't think there is any place in this company for an elite.
|
1272.12 | Grrrrrr . . . . | GLDOA::FULLER | World's most dangerous FS engineer | Wed Nov 14 1990 11:40 | 26 |
| Well, speaking as one who did go to the COE '90 Hawaii "boon-doggle"...
Yes, I went, and I was happy to go. I've busted my butt for this
company for >11 years, and have attended awards banquets with my
branch/district over the years. This is the *first* time that I, as an
individual have received some type of an award from the company for
my achievements in the company. The COE trip comes on the heels of
receiving:
DECUS award for "Outstanding Technical Performance by a DEC
employee", 1990
DECUServe Wizard award (only 4 "Wizards" in the DECUS world)
I've been rated a 1 for the past several years, and my customers have
written survey scores with an average of 9.0 or higher (with NO
"coaching" by management or me).
I've been instrumental in the sales of $1.5M over the past year
(equipment sales is NOT in my job description, as CS engineer).
I've written an error log reporting tool that is in by CS people, CSCs
and engineering communities around the world (on MY time).
Don't tell me the COE '90 trip to Hawaii was a boondoggle.
|
1272.13 | Several tons of Nickels and Dimes | CSC32::J_WETHERN | John Wethern NSU/LAT @CSC/CS | Wed Nov 14 1990 12:10 | 19 |
| Hmmmm.... I've heard that about 5000 people attended this function, at
about two grand per person (guesstimate). If anyone has more accurate
numbers, please correct me.
You do the math. Sounds a little 'spensive to me. I wonder how much
that many nickels and dimes would weigh? Probably would tilt the earth
on its axis!
I realize that these things are planned long in advance. I bet we
could have backed out of the whole deal long ago though and just
incurred a minor penalty compared to the cost of going through with it.
As far compensating those "hard-working field people", do it in their
paychecks. I spent 10 years in field service, and this is where I
would have liked to have been "rewarded". (In fact, when I did put in
the "long hours", I WAS compensated in the form of OVERTIME... something
my Wage Class 4-ness will never see again.)
Oh well again...
|
1272.14 | | ESCROW::KILGORE | $ EXIT 98378 | Wed Nov 14 1990 12:10 | 9 |
|
Re .11: -- you beat me to it.
If I put out 400% more work than my original goal, I wouldn't get a
trip to Hawaii and a chance to grossly exceed again next year --
I'd get a stern warning to be much less conservative in my scheduling
(I keep thinking of the term "sandbagging").
|
1272.15 | Reply to Fuller | CSC32::J_WETHERN | John Wethern NSU/LAT @CSC/CS | Wed Nov 14 1990 12:26 | 20 |
| RE: .12
Mr. Fuller,
There are many people in this organization that can make claims similar
or more impressive to yours, and they have not been to such a function,
and may never have the opportunity to go to one. Where is the fairness
in this?
Your worthiness to be compensated above the norms for the rest of us is
not the issue here. The issue is is this an appropriate expenditure of
money given the current cost-reduction measures taking place at
Digital. The general consensus so far is no, especially since the
price tag on this thing probably ran into the millions.
This was not a personal attack, please don't construe it as such!
Thanks,
John
|
1272.16 | | MAMTS5::MWANNEMACHER | let us pray to Him | Wed Nov 14 1990 12:38 | 10 |
| There is no question that there are many people who deserve to be
recognized in the company. People who go above and beyond the call of
duty. I would think that we could recognize more of these contributors
if we had something local, and a little less lavish. It could still be
very nice. This would be a motivator/morale lifter for more employees, thus
increasing productivity and improving quality in more areas.
Peace,
Mike
|
1272.17 | | RICKS::SHERMAN | ECADSR::SHERMAN 225-5487, 223-3326 | Wed Nov 14 1990 12:56 | 34 |
| re: .9 and others
We have a gross misconception here at Digital, IMHO. We do need to cut
costs. We may need to let people go. But, we are cutting our own
throats if we hold back incentive programs or training for the sake of
reducing costs. When times are tight, that's when it is even more
important to provide incentives for top performance and more training.
IBM does this on a REGULAR basis when times get tight for them. They
have PROVEN that this works. We, on the other hand, are doing EXACTLY
the opposite.
My own cost center has cut back on how much we are encouraged to get
training. Enrollment in courses (except in mandated courses which are
something of an anomaly) and participation in external conferences is
way down. As an example, I wrote a paper for a conference that I
finally got to submit after having it squashed last year (needed to file
patents). But, I was informed that, given the current political
climate at Digital, I should withdraw the paper from the signature
cycle this time ... because it would have required Digital to fly me
to Hawaii to present it. This is the third time that a paper I've
written has been squashed. My next attempt will be to submit to
another conference that is not as oriented to the application as the
conference of choice. But, at least this one will be in Cambridge.
It's like pulling teeth to participate in conferences or to go for
extra training nowadays. Instead of being encouraged, my perception is
that folks are being DISCOURAGED from seeking training or other
incentives. We are being asked to perform more for the same pay and to
just be thankful we have jobs. If we do go the "extra mile" this is
often discounted as already being part of our jobs. Not exactly what you
need to have a motivated and dedicated work force.
Steve
|
1272.18 | Don't ask me to break a promise | ODIXIE::LAMBKE | Rick Lambke @FLA dtn 392-2220 | Wed Nov 14 1990 12:59 | 14 |
| The point is that if you offer a form of recognition to an employee,
and then the employee works hard to achieve it, you can't just take
the reward away without seeing dire consequences. The employee will
quit -- maybe not leave the company -- but s/he will never work quite
as hard again.
The argument as to weather the Circle of Excellence is the appropriate
recognition is a separate discussion. But we must have SOME form of
public recognition for our sales people, and cash doesn't do the job
(although they will get the $ too). One sales person I know has a sales
goal of $5MM to achieve this fiscal year. He knows he must book $15MM
to be a clear cut Circle of Excellence (DECathlon) winner. If you
announce that Digital is cancelling it's 92 COE, do you think he will
achieve the $15MM or the $5MM?
|
1272.19 | I can pack tonight. | ELWOOD::BERNARD | | Wed Nov 14 1990 13:09 | 13 |
| I kind of like the idea of a trip to Hawaii, just the kind of place
to hold the 25 year awards dinner, make it a luau. Some of us who have
been with DEC through all kinds of ups and downs have never even gotten
a weekend away with the wife, not even a dinner for two at some local
restaurant. So this seems like a perfect way to reward those employees
who have busted their butts for a lot of years. How many of you who
worked in some of the manufacturing and engineering facilities remember
when the pressure was on to "make the quarter", meet "First Revenue
Ship", work almost every holiday weekend? Even a weekend at the Cape
would have been nice.
Paul
|
1272.20 | What's an Award??? | COOKIE::LENNARD | | Wed Nov 14 1990 14:13 | 11 |
| Sorry, .12....I still think it's a major boon-doggle. If you per-
formed as well and consistently as you say, you should have gotten
a series of nice raises...maybe even a couple stock options. That's
enough!!! I can't understand why engineering management in this
company doesn't stand up and stop this.
By the way, what's an "awards banquet"? As a matter of fact, what's
a banquet.
I repeat, there's no place for an elite in this company, and that's
what we've created.
|
1272.21 | | ALOSWS::KOZAKIEWICZ | Shoes for industry | Wed Nov 14 1990 14:37 | 8 |
| I was going to try and say something contructive in this topic but
decided that most of the replies are pretty pathetic rationalizations
of sour grapes.
So I won't...
Al
|
1272.22 | | ESCROW::KILGORE | $ EXIT 98378 | Wed Nov 14 1990 14:44 | 5 |
|
...but you broached the subject anyway, and as some of the arguments
against the Hawaii boondoggle seem much too sensible to be attributed to
sour grapes, please enlighten us...
|
1272.23 | It's My BAT & Ball | 7R7NET::EIDSON | OATBRAN..Silent Killer | Wed Nov 14 1990 15:22 | 3 |
| The beatings will continue until morale improves!!!!
|
1272.24 | valuing differences | XANADU::FLEISCHER | without vision the people perish (381-0899 ZKO3-2/T63) | Wed Nov 14 1990 15:54 | 14 |
| I get the impression that the reward structure that is deemed
necessary and/or appropriate for the field is very different
from the reward structure that is deemed necessary and/or
appropriate for the "center" (or whatever the opposite of
"field" is).
Central, or at least central engineering, gets promotions,
raises, and stock options.
The field gives parties to the star performers.
I don't know if this is unfair, but it is a difference.
Bob
|
1272.25 | | COOKIE::LENNARD | | Wed Nov 14 1990 16:46 | 5 |
| I beg to differfy...the field doesn't get raise, promotions and stock
options??? They certainly do, plus cars, plus a nice bonus system
for sales.
This is not sour grapes.....this is gross inequity. So there!
|
1272.26 | How do other orgs motivate their people? | NEWVAX::PAVLICEK | Zot, the Ethical Hacker | Wed Nov 14 1990 17:53 | 44 |
| re: .25
I presume the stock options must be a mgmt perk, no? I've never heard
of a SW Spec receiving stock. Do non-mgmt Engineers get stock options?
As far as raises go, it seems that the distance between a "1" performer
and a "3" performer is about 1%-2%. Not exactly reason to make the extra
effort. You can make more money for your family by clipping coupons
from the Sunday papers than by racking up 500-1000 extra hours per
year.
There are promotions occasionally. Of course, it doesn't seem to
change the financial picture much, so if your trying to keep up with
inflation, it doesn't help much. And, if your "years in current
position" are less than two, you haven't much chance to get a promotion
anyway. And by the time you've been around long enough, you go thru
yet-another-inevitable-reorg, so the what-have-you-done-for-me-lately
rule tends to win out. Not a great reason for running hard for the
next promotion from the starting gate.
Cars: today yes; tomorrow well... I'm not holding my breath.
Cubes, telephones, etc.: for lotsa EIS PSS folks, no. Too expensive.
Hardware: see cubes, telephones, etc. (although things have gotten
considerably better locally).
I'm not trying to say that GMA folks have it easier. But there isn't
much incentive provided out here to do a good job. Attaboys can even
be scarce when you only see your manager once every "n" weeks.
Even the Excellence stuff can be counterproductive. People bust their
tails and still don't get it because the Area/Region or District didn't
make the numbers, "you went last year", etc.
How do the orgs closer to corporateland manage to keep people
motivated? For example, is there anything that, say, a SW Engineer can
do to make a significant difference in his/her total compensation
(beyond 1% or so)?
Just trying to see if other orgs have managed to do a better job with
limited resources than what I see and hear in the Field.
-- Russ
|
1272.27 | Selection Process | KYOA::RUMP | | Wed Nov 14 1990 20:07 | 3 |
| I know of one office that had a very simple way of picking the lucky
persons. Each unit put 4 names in a hat, reach in and pick out 2. Good
friends put each others names in the hat. I'll say no more.
|
1272.28 | I've been in both places... | STLACT::MOSER | St. Louis DCC guy... | Wed Nov 14 1990 20:22 | 44 |
| I've worked both in the field and back east (engineering)...
They are two different companies and I am not entirely sure they are on the
same planet. I think the reward structures reflect that...
My characterizations based on personal experience (your mileage may vary):
Engineering...
:: very team oriented... You had a problem to solve and you employed a very
strict methodological process to get to an answer. Sure you had to be
creative in certain phases but when it came down to producing a product your
mission was quite clear... Your ulimate success or failure generally was
not so much a function of your individual efforts but of the teams... i.e.
if my modules or part works but the person next to me does not, the project
still goes down in flames despite my success... Working conditions are also
much better... We had a very loose culture, you didn't have to watch every
word you said (no customers around!) for fear of letting something slip and
you usually had the best equipment and so on to work with... It was almost
like being in college...!
Field...
:: very individualistic. The one "right" person can make or break an
opportunity. Most field activity seems to be between lone wolf types who form
loose teams to go attack the opportunity of the moment, but usually do not
stay together for any length of time. Not only is there generally a technical
problem to solve but there are a raft of political and cultural issues both
internally and externally that must be navigated to get to a successful
conclusion. Teams are generally smaller and each individual generally has a
much larger impact on the outcome. Opportunities also are much closer
together and a person may be working many at once. Working conditions are
generally bad (small offices, lack of gear to accomplish things) and there is
a constant pressure from being in the customers face all the time (gotta have
a suit on!)... You are in the front lines and baby it's trench warfare...
Sometimes you gotta pull out the troops and send them to the rear...
When I was in engineering I never really felt that need to be sent to the
"rear"...
Anyway... How would you like it if we came busting into Maynard and lopped 40
square feet outta all your cubes to save on office space? I'm not saying there
is a right or wrong answer, but I think I understand why there is such a
different reward structure and unless you are going to start providing the
front line troops the same amenities as the rear area folks, why don't we
leave the party/boondoggle alone...
|
1272.29 | | SAUTER::SAUTER | John Sauter | Thu Nov 15 1990 07:02 | 16 |
| re: .26---Do non-management engineers get stock options?
Yes. I got one in 1978. In 1988, when it matured, I used it to
rebuild my garage and add a room onto my house.
As for keeping people motivated, in addition to the insights in .28
I would like to add that motivation is based on team success. Our goal
(not "my" goal) is to ship a product that customers will buy because it
satisfies their needs, and does this quickly and reliably. I get my
reward from customers telling me that they like the product I worked on
for five years.
I suppose there is a selection process going on. Different people are
motivated by different things. You tend to gravitate towards the
environment that provides what you want.
John Sauter
|
1272.30 | Lone wolf.. present and accounted for. | NEWVAX::MZARUDZKI | I am my own VAX | Thu Nov 15 1990 07:22 | 17 |
| re -.1 "gravitation towards what you want"
So where can I find "pay for performance"?
re .26
I heard of management types in IS who got considerable stock options
during the 80's. Almost to the point of bragging about them. These were
the equals to "our" UMs.
Got to get back in my customers face. They are not in yet, but i's
gots to be readi.
Russ, Have you seen my cube lately? I saw the other side of the
building yesterday..... all gutted out.... again...
-Mike Z.
|
1272.31 | lots of places | SAUTER::SAUTER | John Sauter | Thu Nov 15 1990 08:44 | 6 |
| re: .30--Where can I find "pay for performance"?
In the parts of Engineering where I've worked, I've worked hard and been
paid well. As far as I'm concerned, that's "pay for performance".
I don't know how I compare to others.
John Sauter
|
1272.32 | | REGENT::POWERS | | Thu Nov 15 1990 09:00 | 23 |
| > <<< Note 1272.20 by COOKIE::LENNARD >>>
> ...
> I repeat, there's no place for an elite in this company, and that's
> what we've created.
Why don't we have a place for an elite in this company?
This is an instance where an elite (if you even choose to recognize
it as such) is ostensibly based on excellence and extraordinary
contribution to the corporate good. We do have heroes among us.
The argument at hand is whether the Hawaii "boon doggle" was effective in
terms of 1)rewarding the deserving and 2)encouraging others to be deserving.
It also encompasses the matter of whether it was COST effective in terms
of both the money spent and the side effects on morale because some
of the undeserving (hangers-on) were also rewarded.
I believe the best conclusion to be drawn from the discussion is that
different heroes would wish different rewards, but that the desired
effects of enhancing group morale require a more public display of
the reward than many of the recipients might personally desire,
or that some observers wish to see.
- tom]
|
1272.33 | | COOKIE::LENNARD | | Thu Nov 15 1990 11:46 | 7 |
| Maybe the reason I have such a sour taste in my mouth for all these
trips (promise I won't use the b-d word again), is that in the one
instance I am personally familiar with, the abuses would make the
S&L scandal pale in comparison. I won't mention the organization,
but a lot of non-performers were selected base on purely political
criteria ("he's a team player"), and every manager and secretary in
the organization went as well. It was disgusting.
|
1272.34 | | CLOSUS::HOE | Sammy, don't flush it down the... | Thu Nov 15 1990 13:20 | 15 |
| Most reward recognition trips are planned 6 months in advance to
take advantage of negotiated travel/place to stay prices. I agree
that perhaps that it might be bad timing for moral reasons but if
the trip was planned and paid for, the money's been spent and if
the troopers don't go, they loose all around.
I also know some of the stars of the support team. They do spend
a lot more time than the 7-5 jobs that most of DECies work with
very little of the time being compensated for. If the complainers
are willing to work the 60 to 70 hours weeks for the WC4 jobs,
then the company might not be in the same money crunch.
cal who-used-to-work-the-60+-hours-in-the-field.
|
1272.35 | livewire | LRGFMT::FIELDS | | Thu Nov 15 1990 13:43 | 4 |
|
Livewire has the full scoop on the Circle of Excellence program
under Wordwide News, for anybody who's interested.
|
1272.36 | | RBW::WICKERT | MAA USIS Consultant | Thu Nov 15 1990 14:17 | 13 |
|
When I went to the SWS excellance awards my three times it was very
different. This was back in the days when each region/area/whatever did
their own and it was a three day weekend. My three were in Pittsburgh,
Atlantic City and Hilton head. All managers and consultants went
because they weren't eligble, among other reasons. These were much
smaller affairs and, in many ways, more enjoyable. I can't imagine
these cost the company nearly as much money and they achieved the same
results.
-Ray
|
1272.37 | The process is broken... | BIGRED::DUANE | Send lawyers, guns & money | Thu Nov 15 1990 17:09 | 48 |
| The Circle of Excellence awards are more often the cause of
lower morale out here in the Field than a goal to be attained or
a source of motivation. We ( the Specialists ) have asked every
year what the winners did to win the award. We've received
answers ( from management ) ranging from "We really don't know
ourselves." to "We can't read the write-ups because it's against
Company Policy." It would appear obvious to even the most
casual observer ( I love that phrase ;-) ) that for an
award/reward system to be effective, people need to know exactly
what it is they are supposed to be striving for. It's like
going in for a salary review and being told you only get an x%
raise instead of an y% raise, but "We can't tell you what you
can do to get a y% raise next year or what you could have done
to get a y% raise this year." I was talking to a former winner
about what he did to win the award, and he told me he won
bacause he sold some VAXmates to his customer. He said when
they read the write-up at the award dinner he almost had to hide
because of his embarrassment. It was generally acknowledged
that he should win it by everyone in our unit, but not for the
reason given. This year's award controversy was that two weeks
before the winners were to be announced we were told there would
be nine winners from our district ( ~80-90 people ). When we
were all notified of the winners, there were only four. Again,
we got answers like "We don't know what happened." plus a number
of contradictory reasons.
It appears the system is very broken. Most of us would probably
rather have a) bigger raises, or b) smaller awards that more
people can attend. Choice "a" above could also mean a greater
raise differential. A couple of replies back mentioned the
difference between a 1 and a 3 performer is only 1%-2%; that's
only $350-$1000/year before taxes. Hardly enough to warrant
volunteering to do middle-of-the-night/weekend upgrades and work
overtime and drive an hour and a half each way on your own time
to get to a customer site in the middle of nowhere at 7:00am to
deliver a year-long residency on a product you have no shred of
interest in whatsoever with no real guarantee that it'll make a
difference anyway.
Excellence awards are nice, if it happens to be your turn/you're
lucky enough to get one/your residency or current job has some sort
of potential to allow you to shine enough to be noticed/whatever the
reason of the day for winning fit you best. Excellence awards as
they are now tend to do a whole lot more harm than good; they cause
feelings of bitterness not only between the GMA and the Field, but
within Field Districts and Units as well.
d
|
1272.38 | Gee...I feel bad about complaining! | STAR::DIPIRRO | | Fri Nov 16 1990 08:40 | 16 |
| Yes, that's all very interesting, but such "trips" seem to be rare
or nonexistent in engineering. I remember a stretch of about a year and
a half a while back where all the engineers in my group were putting in
60-80 hours a week steady in order to get a product out the door. We're
talking hard work that resulted in a few broken marriages, ulcers, and
other disorders I won't go into. We had to FIGHT and ARGUE for a field
test DINNER for God's sake. I was the project leader and threatened to
leave the group if *something* wasn't done to pat the people on the
back that had worked so hard. After enough brow-beating and
complaining, we had a dinner. Times weren't as tough then as they are
now.
I've heard about some engineering groups doing a little better than
that...but nothing like a trip to Hawaii. So forgive me if I think
there's a little double-standard around here regarding who gets
rewarded for what.
|
1272.39 | I would rather see it in the salary! | SKYWAY::ZAHNDR | | Fri Nov 16 1990 09:23 | 5 |
| Holiday in Hawaii is a little too much for an award. A closer
look at WHO receives an award would be in place. By the way - How
many women got an award?
Just wondering?
Ruth
|
1272.40 | | BAGELS::CARROLL | | Fri Nov 16 1990 09:44 | 22 |
| re .38, I agree. I am aware of many software engineers who work both
long days and nights to get a product out the door while maintaining
the existing products. Their ability and dedication are second to
none in this industry. I see very little recognition for them. They
are percieved as "just doing their jobs" when they put in 50-60 hours
a week in the office then go home, login and work even more. There
are many engineers who are worthy of recognition. Coffee cups and/or
t-shirts are not enough.
I cannot, however, complain about the bennies the field people get.
Anyone who has worked for a vendor in the field knows that it is a
hell of a job, probably the most difficult, as far as stress goes,
of any in the company. Not only does the Hawaii trip give them a
reward but it also provides a great stress reliever.
There are pros and cons to everything. I think in this instance, the
pros outweigh the cons and make the trip cost effective. I cannot
comment on whether or not the people who went on the trip were the
right ones since I do not know the selection criteria.
|
1272.41 | Fairness is the problem | TANG::TANG | | Fri Nov 16 1990 12:06 | 8 |
| One of the reasons causing bitterness in this kind of the reward
activities is some who deserved to go were not selected to go; some who
think themselves deserved to go were not selected to go; and some who
did not deserve to go were selected to go. Basically, the selection is
based on a quota system, not on a well defined criteria.
GF
|
1272.42 | Spread a little sunshine. | ELWOOD::BERNARD | | Fri Nov 16 1990 12:29 | 16 |
| re:-1
>Basically, the selection is based on a quota system, not on a well
defined criteria.
Agreed, but to a point. It is defined enough for those in Engineering
and Manufacturing to know that they will never be sunning their buns
on a beach in Maui as a reward for doing a great job on a project. Were
it not for those groups, sales would have nothing to sell. I don't
want to suggest that "Sales" is not worthy of recognition for their
efforts, but naturally there is bitterness from many folks who have
been told we have to "bite the bullet". We're not talking about a
little "Attaboy Certificate" or coffee cup, this is something that
many would consider a dream trip, a once in a lifetime experience.
Paul
|
1272.43 | | GENRAL::BANKS | David Banks -- N�ION | Fri Nov 16 1990 12:36 | 22 |
| Re: .26
> As far as raises go, it seems that the distance between a "1" performer
> and a "3" performer is about 1%-2%.
If this is the case, then there's probably a problem with those doing
the salary planning, though it could be your lack of understanding of
the process.
Being a 1 performer or 3 performer should not be the sole factor in
determining a salary adjustment percentage. It should also depend on
where you are in your salary range. The idea of a salary adjustment is
to put you into or towards the place where you belong in your range
based on your performance. So, for example, a 1 performer who is low
in their range should get a larger raise than one who is higher in
their range. Someone high in the range who is only a 3 performer may
be perceived as being already too high for their performance and may
not merit any (positive) adjustment at all.
This is how we operate and it seems quite equitable to me.
- David
|
1272.44 | | TOMK::KRUPINSKI | C, where it started. | Fri Nov 16 1990 12:56 | 10 |
| The problem I see with awards is that they are binary. You are
either a "winner" or a "loser" and there are many more
"losers" than "winners". If, say, 10% of the people in a unit
"win" and get to go to <award>, that sort of tells the other
90% they are losers. I'd hate to think that 90% of the people
in *any* organization in DEC are "losers". Better to take that
money and put it in the envelope, proportional to each persons
contributions. That way, most people win, to some extent.
Tom_K
|
1272.45 | W2 time | SCCAT::HARVEY | | Fri Nov 16 1990 13:07 | 3 |
| Has anyone thought how much will be added to each persons W2 this year
that went on this trip to Hawaii??? Just a thought...
Renis
|
1272.46 | | NEWVAX::PAVLICEK | Zot, the Ethical Hacker | Fri Nov 16 1990 13:31 | 28 |
| re: understanding the salary process (-.2 ?)
I know the salary theory. What I am trying to point out is that the
implementation (hereabouts, at least) does not tend to give any
significant reward for the exceptional (vs. average) performer.
If you remove some form of "Excellence" award, you have a job that
doesn't encourage you (much) financially to excell and doesn't even
have many attaboys for encouragement (as you rarely see your
manager). The result is an atmosphere almost devoid of positive
motivation beyond that which you derive from your own circumstance (and
that can be VERY minimal if you're assigned to a difficult customer).
I just think that there's got to be a better way. That's why I
wondered if Engineering, etc. had a better solution. The stock option
business is interesting...
re: W-2
I had the good fortune to go last year. The amount added to the W-2 on my
account was minimal (most of it was considered a "business trip", since
there are mandatory seminars and functions -- including one dude
delivering a bunch of New Age stuff that I didn't think the company
should be paying for; but that's another subject 8^). The amount
added to my W-2 for my WIFE to attend was another matter. That amount
was ~$1000, as I recall. I think there was some partial tax adder put
on the W-2 as well, but I don't remember the details.
-- Russ
|
1272.47 | 2 cents worth | CSOA1::ROOT | North Central States Regional Support | Fri Nov 16 1990 13:54 | 34 |
| RE:.43
The problem with your logic is just when you figured you knew the
answers to what it takes to get to midpoint in your pay range DEC
changed the questions. A few years back the goal was to get people to
midpoint as 3 performers. Then DEC needed to cut expenses so they
changed midpoint to be a 2 performer. This shift automatically put
everyone in an overpaid portion of their pay range for the same
performance and effort. As a result people started getting very low or
non-existant pay raises. The old catagories for performance was 1(hi)
to 5(low). Now they eliminated one of the catagories and shifted
everyone down 1 point or catagory on the pay range chart. The net
affect was that DEC no longer sees a 3 performer as average but a 2
performer as average. In the field getting to be a 1 performer is seen
as next to impossible because they perceive the extra work after a
short while to be the norm and as a result becomes your average (3)
to above average (2) performance rating. The old comment stated is if
you do all your paper work (or daily activities) in a timely manner
with no errors, thats what is expected of you and as a result you
can't do any better, hense no above average performance and this
drags down any other catagories in your performance appraisal so a
1 level is next to impossible to get and a 2 level is treated as
average to slightly above average performance. I have heard managers
here in the field state outright that they do not believe in 1
performers (nobody walks on water) and 5 performers should be
fired. I might believe this for a 5 performer but not for 1 performers.
The net affect is during hard time like we are seeing today it becomes
even harder when the system (pay range shifts in relation to
performance for the sake of saving dollars) works against your
getting good, honest, impartial ratings on your PA's.
Regards
Al Root
|
1272.48 | | BIGRED::GALE | Okay, I'll settle for 12/11/90 | Fri Nov 16 1990 14:06 | 5 |
| RE: W2
The last time (last year) I got a monetary reward from DEC, a tax-adder
was added at the end of the year, so that the award was worth what is
supposed to be...
|
1272.49 | Some rewards needed and deserved | CANYON::NEVEU | SWA EIS Consultant | Fri Nov 16 1990 14:51 | 120 |
| I did not get to go to Hawaii in 1990. The group I was in became
ineligible because we were perceived as part of corporate. I did
not get to go to Hawaii in 1988, I was selected and ranked 8th out
of nine who were supposed to go, but a week before the announcement
our group got only 7 slots! I was extremely fortunate an got to go
to the Cruise in 1989, it was an extremely satisfying experience
which built teamwork and friendship among those lucky enough to go.
There were managers (above the district level to be sure) and support
personnel who got to do their jobs in a pleasant location for a week.
Indeed there were some people who got to do the trip more than once
to make sure it would be the best experience possible for the recipients
and their significant others.
So what's wrong with this picture!
Some people complain because their organization is unable or unwilling
to offer such programs. Welcome to the real world!!! Engineers have
the best equipment to do their jobs, because they need it, you would
not want someone to do a loosy job developing hardware or software
simply becuase we couldn't afford the best tools. Sales people get
freer access to expense budgets and reward mechanism because that's
the best way to attract the best Sales people.
Those people who have to travel, get company cars or stipends for use
of their cars. This makes good business sense since we don't want
employees deciding not to go to a customer today because he/she can't
or won't afford it. Similarly we design reward systems and incentives
that we hope bring out the best in our employees. Hopefully, we do
not design them to reward the reward system designers!
As someone who has received three excellence awards (only one of the
really big ones) and missed one I really wanted in 1988, I think the
difference between getting the reward and not getting it is too large
for the people who everyone agrees should be rewarded for their extra
efforts. In 1988, when I thought I would be going to Hawaii, I worked
my normal work week... All the attaboys and management comments about
my being rated a "1", did not help my morale that particular week and
several weeks thereafter.
I worry less about a few mildly deserving or politically connected
people getting a large award, then I do about the deserving being
passed by, when we artifically limit the number of people eligible
for recognition.
Large expensive award programs have positive and negative incentives
built in. Hawaiin trips for thousands of people cost big bucks, and
renting Cruise Ships ain't exactly cheap.... But then neither is
DEC World or attendance at numerous trade shows... The question is
and must be, do the positive incentives and benefits create greater
revenue for Digital and/or improve employee moral among the people
the reward system is being designed for.
I came back refreshed and motivated from my 1989 Cruise, it was
great, but I personnaly doubt it motivated me more, than my missing
the cutoff to Hawaii in 1988 de-motivated me for a long period that
year.
Several people have suggested to management that a smaller reward
spread over a larger deserving pool would be better. Unfortunately
the people designing these rewards always want to make them better
than the last one and each year we seem to drive to more and more
expensive solutions which of necessity must be offered to fewer and
fewer people. The result is a reward system that demotivates more
people than it rewards/motivates. Do not get me wrong rewarding
everyone equally suffers as badly as rewarding too few people
greatly..
In other notes here, it has been expressed that getting 1% to 2%
more in salary for doing "1" work instead of "3" work is not enough
to get people motivated. Giving out a one time reward which costs
DEC $1,200 to $3,000 dollars and recharges the employee might seem
to the designers of these rewards to be just the ticket. The problem
is, it recharges too few people, and demotivates so many others.
I said in 1988, if I was deserving of going to Hawaii, but got cut
off due to costs, then I should have gotten the week off without
the trip to compensate me for my extra effort, sort of a second tier
for those deserving but not receiving the reward. It would have
not been as good as going, but certainly better than being treated
as if I did no better than below average employee!!!
It also took something away from my receiving the award in 1989, as
it wasn't clear if someone was trying to make up for my not getting
it in 1988. One of the people who made the 1988 cut really understood
how I felt when he missed the 1989 Cruise, and it had a similar effect
de-motivating him in 1989.
I can't call the reward a boon-doggle... I can call it less than
perfectly designed. The purpose is to reward Excellence and to
promote teamwork among Sales, EIS, and Customer Services. As such
it must involve bringing many people together in a location to allow
them to network and celebrate their accomplishments. The nicer the
place and the longer the period allowed for networking the more
likely these objectives will be met, unfortunately the fewer people
able to attend or the more exclusive the reward appears to be, the
less likely it will be to motivate the employees left behind.
We need to find a way to get everyone motivated to do more to raise
revenue and cut costs. Events that celebrate the accomplishments
of too few, that appear to be too expensive, or too exclusive, do not
help us motivate the numbers of employees, who need to be motivated.
I hope that the planners for 91 and 92 design rewards which are not
as costly or as limiting, then maybe we can motivate more people to
contribute to Digital's success. When less than a third of a groups
top performers receive recognition and/or a reward, then competition
to be in that top third, can destroy the team work necessary to build
a truly effective organization.
Congratulation to those who received the award, and to the many more
who deserved it but got to stay home and generate income for the rest
of us to stay in business. I have changed groups, so I am once again
eligible for excellence awards, and I truly hope the work I do is
deserving of the award, whether I receive it or not. Because this is
the attitude which it will take to bring DEC enough revenue to keep it
in business until I am eligible and ready for retirement.
|
1272.50 | | RICKS::SHERMAN | ECADSR::SHERMAN 225-5487, 223-3326 | Fri Nov 16 1990 15:28 | 14 |
| re: -.1
Reminds me of something I've learned as an engineer at Digital.
Basically, it is that the reward for designing is having gotten to
design, for patenting is having gotten to patent, for publishing is having
gotten to publish. The cash rewards I've gotten for these activities
were much less than the cash tendered by another engineer I knew who spent
less time in the evenings working for UPS part-time than I spent
midnight-hacking on the terminal. I've been told that it looks great on
my resume and I know I have Digital to thank for the opportunities. But,
what this also tells me is that I should expect to be rewarded by another
company. This is probably how startups get started ... ;)
Steve
|
1272.51 | | COOKIE::LENNARD | | Fri Nov 16 1990 17:16 | 8 |
| If we have to have these trips, I think part of the answer to the
de-motivation of losers problem is simple. Establish good, solid,
objective criteria for the award.....and if the whole damned branch
meets it...then fine let them all go!!
But, I still think these things are wrong. It's like the field is
hanging on to this as some sort of holy-cow perc.....even knowing that
the perc is starting to smell to high heaven.
|
1272.52 | Sex not a factor | CANYON::NEVEU | SWA EIS Consultant | Fri Nov 16 1990 17:29 | 25 |
| r .39
You would have to ask Customer Services, Sales, and EIS management
how many women attended .vs. how many are in their employ and eligible
for recognition. Since ISWS was not eligible for 1990 I could not
comment for the COE event, but in previous years when I was eligible
approximately half my groups representation was female who brought
one significant other (i.e husband, lover, friend, daughter, son,
etc...) along for the reward.
Overall women appeared to be between 1/4 and 1/3 of the recipients
in 1989 on the Cruise, but then I didn't get around to all the group
meetings to see if some regions had greater representation then mine.
The idea of bringing along a significant other is to compensate them
also for all the time the employee spends away from home/family/their
relationship to meet Digital's customers needs. I whole heartily agree
with compensating the significant other who helped make the employee
more successful. For a few people out there, getting away from you
spouse and family may seem like a better idea! But for the majority
of us, we could not devote the extra time we devote to this company
were it not for the support we get from our significant others. So
they earned there way to the award as much as I did and hope to do so
again.
|
1272.53 | My Last $0.02 worth | CANYON::NEVEU | SWA EIS Consultant | Fri Nov 16 1990 17:56 | 30 |
| re. 51
There were some good solid objectives.. I had to have been part of the
revenue generating district for at least 9 months, I had to receive a
customer satisfaction score in the top 10% of the district, I had to
be rated a "1", etc.... But when it was all said an done, 7 people
out of probably 12 or 14 in the district of 75 delivery people who
met all of the objective criteria actually got to go, because given
limited funds for such expensive awards you can only do it for some
of the people who qualify. Having no sliding scale or second tier
rewards devistates those who think they put in as much as the ones
who got to go, but they failed to make the magic cut!!! I found it
extremely difficult to rank people from my own group in order of
excellence, its easy to pick the top few and the bottom few so long
as you don't have to rank them 1 thru 7 or 65 thru 75. Sometime its
easy to name number 1 or 1 and 2, but it soon gets messy, why is #7
number 7 rather than #8 etc... Binary award mean you get it or you
don't and excellence is not something you have or you don't!!!
I would opt for smaller but significant demonstrations of appreciation,
and for some alternative demonstrations of appreciation for those who
meet the objective criteria but can not be given the larger prize due
to cost considerations. I would also hope that the field recognize
the contribution of our corporate, manufacturing, and engineering part-
ners in delivering solutions.
|
1272.54 | Throw Money | COOKIE::WITHERS | Bob Withers | Fri Nov 16 1990 18:20 | 29 |
| I have heard the opinion (which I share to some extent) that such trips
are, in fact, penalizing to some. My perpective:
I travel a fair amount, often on Sunday or Saturday. I also tend to spend
weekends at work or work late as I see its needed. That's part of the job.
But, my most precious moments are spent with my wife and 18 month old
daughter. When we do things together, we do them together: concerts,
movies, dinner, shows, festivals. That's the way we want it.
A recent "reward" for groups in the CSC was a trip to a ski resort for
couples. No children. Period. Had I been elligible (I was not in the
CSC, so I don't count) and been awarded the trip, I would have been forced
to turn it down because I could not be with my daughter. I don't even have
someone nearby I could leave my daughter with had I chosen to go. There
were, of course, no alternatives. So, the reward for doing an outstanding
job would have been a trip I would not take.
Instead of giving people a "glorious vacation in the sun" (turning my wife
into a crispy-fried sunburnt cinder), would it have been more appropriate
to give the deserving a week's vacation and money to take whatever trip
they wanted (or even hotel and plane coupons)?
For some, these rewards are viewed as gross insensitivity on the part of
the company.
For me, its "throw money".
BobW
|
1272.55 | Our most valuable people wouldn't win these awards | GUIDUK::B_WOOD | Having a wonderfull Alaska Summer | Fri Nov 16 1990 21:12 | 18 |
| I think the whole idea of excelence awards needs to be more carefully
thought out. Not to take a single bit of recognition or apprectiation
to those who win awards, their efforts contribute daily to the bottom
line in this company since they deal directly with our bosses, the
customer.
My area of concern is many of these awards are given to hose of us
who are most polished and have the best preception with the nominating
managers. Every year, these are the same people who win excellence
awards. Those people that maybe a bit ecentric or not the most
polished, don't get them. The negative motivator is feeling that
you know you'll never stand a chance so why try?
The saddest part is that I know many people in DEC that never get
recoginition and would never have a snow ball's chance in h*ll of
winning an excellence award. They are socially clumsy,
physically unattractive, nerdy, and smart. Without out them,
we wouldn't have products that lead the industry!!!!!
|
1272.56 | Can of worms here.... | SOFBAS::LIVINGSTONE | the horizon is nothing save the limit our sight... | Sat Nov 17 1990 12:34 | 8 |
| I know absolutely nothing about the selection criteria, but many a
manager or technician or sales person would not survive without
secretarial support backing them up in a thousand little ways...
Are any secretaries eligible and if so, did any go?
Just curious,
Linda
|
1272.57 | Dont tell anybody | GLOWS::MENDEZ | | Sun Nov 18 1990 09:42 | 11 |
| In my office at least 90% of the people don't know that this
trip took place even though several are selected from our
office to attend every year. The selection process and the
criteria for winning are kept secret and the individuals
are the only ones that are informed.
I wonder if there are other organizations that do it the same
way.
mm
|
1272.58 | boondoggle-boondoggle-boondoggle-bonndoggle... | ESCROW::KILGORE | $ EXIT 98378 | Sun Nov 18 1990 16:59 | 14 |
|
Keeping it a secret? (.57)
Not sharing the rules? (.37)
Arbitrary cutoffs? (.53)
Sounds like a well devised incentive program to me!
It would be wonderful if, next year, some brave manager said, "Thanks
for the slots, but I respectfully ask for the money instead, so I can
reward _all_ my qualifying employees in some more appropriate way, and
also get some much needed equipment for the office."
|
1272.59 | ZERO SALES_ BUT WENT TO DECATHALON ! | MR4DEC::SRINIVASAN | | Sun Nov 18 1990 23:24 | 7 |
| There is nothing wrong in rewarding a genuine hard work.. However ...
I am aware of a situation ,where a sales rep went to Australia
(DECATHALON) and this person did not sell a dime to her SCMP account.
All she did was to beat the system and collect the reverse star
credits on the sales made by other reps on CMO's software, thus making
her sales number as 104%.
|
1272.60 | baby and the bathwater | KEYS::MOELLER | Born To Be Riled | Mon Nov 19 1990 17:02 | 23 |
| Are field award programs a waste of money ? Not when we as a company
are competing for talent with other companies that pay commissions on
sales. I haven't heard any of the naysayers complain about DECathlon
sales winners' "SP2" money ... this cash award can be as high as $12-15K.
Those that want to eliminate the award system on the grounds that it's
"elitist" and that it demotivates those not selected ought to think
about socialism, where everyone is treated equally poorly. .. this is
NOT a 'love it or leave it' message, just consider systems where
performers are NOT rewarded, and you get... Moscow. And some horror
stories should not eliminate the awards system. I know a few myself.
Yes, there's problems with the selection criteria being murky. I was
selected for the SWS Excellence Award in '87 and '88, and not since.
As I've been doing more and better work since then, I don't know what
magic I committed in those years, and don't know what's missing now.
At least in Sales it's clear, based on numbers.. however, if you have a
volume rep doing 120% at $10M/yr and an end-user rep doing 190% at
$750K/yr, who is doing more for the corporation ? The pure dollars
favor volume, percentages favor end-user. It's easier to blow out a
smaller budget, ask anyone who dabbles in penny stocks.
karl
|
1272.61 | | ALOSWS::KOZAKIEWICZ | Shoes for industry | Mon Nov 19 1990 21:36 | 56 |
| For Sales, the guidelines for SP2 and DECathalon are some of the most
lucidly written documents in the corporation. Arguably, they are
clearer than the guidelines for splits, which is pretty amazing
considering the frequency with which the latter process occurs and the
heat generated as a result.
At any rate, the selection process for Sales is pretty objective with
somewhat more than half the criteria based upon percent of budget
attained (with the comments made in -1 on the size of the budget being
right on the mark, though at least everyone knows the implications of a
large budget at the beginning of the year) and the rest based upon somewhat
subjective "management points". Of course, you still have anomalies.
I entertained briefly entering some examples, but discretion got the
better of me. Suffice it to say that they exist. The bottom line,
however, is to recognize and reward the very top performers. DECathalon
meets that need by and large.
For the service and support arms of the Field, the goals are
essentially the same, to recognize the top performers. The criteria
are, by nature, somewhat murkier for a couple of reasons. First of
all, no one can tell you at the beginning of the year what any
individual needs to accomplish in order to number among the top 7-12%.
You do your best and hope that it's good enough. There are also not
nearly enough slots to recognize ALL of the excellent role models.
Since I cannot send everyone who deserves to go in any particular year,
I find myself considering factors such as previous attendance in making
choices. The solution is greater participation.
An interesting tidbit more than casually related to this topic: Part of
a salary planning presentation given by my Personnel Consultant was
some statistics which show that the percentage of 1 and 2 performers
(key criteria for COE) goes up markedly as SRI increases. Might
explain why some of these events seem disproportionately loaded with
staff weenies...
An important part of the culture in any sales/support/service job is
a universal need for recognition. It's one of the main reasons
we elect to put up with these jobs. This is probably a foreign concept
to someone in Engineering, Manufacturing or Marketing. Suggestions by
any of these to do away with Field recognition programs in the interest
of saving money are likely to be treated by us with the same contempt
reserved for freezing salaries. Why don't we shrink per-capita
engineering space and eliminate flex-time in the interest of efficiency
while we're in a cost-cutting mood, eh? Perhaps because such actions
have a superficial appeal only, due to the complex relationship to
costs?
What I would like to see in Circle of Excellence is greater
participation. I see no reason why the stature of the award would be
greatly diminished as a result. To accomplish this, we need to either
spend more money on world-wide venues or spend the same amount on
regional venues. Take your pick. I don't see cutting back on
recognition programs as a viable option.
Al
|
1272.62 | Kind of a double-standard | STAR::DIPIRRO | | Tue Nov 20 1990 09:18 | 16 |
| I don't object to incentives for sales people if that's what it
takes to attract and keep the best sales people. Whether trips to
Hawaii during tough times is easy to swallow, I don't know.
I just think the same effort should be made to attract and keep the
best software people in the industry since the future is largely in
software. I remember the software group at Apple Computer got a trip to
Hawaii for two weeks (with a guest) when they shipped the Mac. So it's
not unheard of. Here at DEC a few years ago, a half-assed attempt at
rewarding engineers with certificates and cash rewards of $250 or $500
for a group-wide recognition. I thought this was a good idea, but it
just kind of fizzled out after about a year or so. I guess it's
unfortunate that good engineers will typically work hard without
incentives and without the best pay, but long term I have to think we
won't attract the best software people or be able to hold onto them.
The companies that place a high value on these people will eventually
attract them away.
|
1272.63 | supply and demand | SAUTER::SAUTER | John Sauter | Tue Nov 20 1990 09:42 | 24 |
| I think some of this is market-driven. If you need to compete for a
scarce resource (people with certain skills) you do what you must to
attract them. If that requires treating them a certain way, you do
that. Apparently, senior management feels that the best way to attract
top sales people is to offer them a chance at a trip. I can't argue
with their judgement.
With other kinds of people, other kinds of rewards have been judged to
be appropriate.
In areas where there is an overabundance of supply, regardless of the
value of the people to the company, little or no rewards are needed to
attract a sufficient number of people.
Thus, I claim, the reward structure is not based on your value to the
company (your contribution to the bottom line) but rather on what is
required to attract and retain a sufficient number of people with your
skills.
If you don't like the situation that leaves you in, you have a couple
of choices: learn a skill that Digital must provide greater rewards to
attract and keep, or find a place to work where your skills are more
in demand. That place might easily be within Digital.
John Sauter
|
1272.64 | disappointed, but not surprised | WJOUSM::GASKELL | | Tue Nov 20 1990 09:59 | 14 |
| REF. note .12
I have "busted my hump" for this company for "13+ years" and have often
been rated a 1. The secretaries of this company work harder than most
of the people they work for and almost never receive any reward, other
than their paycheck. And please don't tell me that secretaries aren't
revenue earners, as if that justifies lack of reward or recognition.
Just see how far you, your cost center or this company would get without
us.
I am disappointed that the company could be so insensitive at such a
time as this. I thought the R.A.P. awards were supposed to be the company
vehicle for rewarding excellence, not trips to Hawaii!
|
1272.65 | | SAUTER::SAUTER | John Sauter | Tue Nov 20 1990 11:23 | 7 |
| re: .64
I'm glad you aren't surprised. Good secretaries are easier to find
than good salespersons, so good secretaries don't get the incentives
that good salespersons get. It isn't fair, it's business. See .63
for a longer description.
John Sauter
|
1272.66 | not surprised by last reply either! | WJOUSM::GASKELL | | Tue Nov 20 1990 11:56 | 5 |
| Have you TRIED to get a secretary, any secretary, not to mention a GOOD
one? I know quiet a few salespersons looking for jobs, but no
secretaries.
|
1272.67 | addition to note .66 | WJOUSM::GASKELL | | Tue Nov 20 1990 12:05 | 3 |
| FYI, there are 154 positions open for secretary in this company--300+ before
adjustment closed many old reqs (some older than a year). How many
open reqs for "salespersons"?
|
1272.68 | need more background | SAUTER::SAUTER | John Sauter | Tue Nov 20 1990 13:50 | 15 |
| One has to ask why those reqs are still open. Is the compensation
inadequate? Are the working conditions unreasonable? Are there better
places where secretaries can work? Are the reqs limited to internal
transfers only?
I don't know the answer to these questions, because I am not familiar
with the departments which hold these reqs. If the reqs are still open
because of the limitation to internal transfers only, then we are not
serious about filling them. They are "paper reqs only". If any of the
other reasons apply, then I was wrong when I said that good secretaries
are harder to find than good salespersons. If we wish to attract and
keep good secretaries (assuming they are scarce) we must reward them in
an appropriate way. That's probably a combination of good wages and
good working conditions.
John Sauter
|
1272.69 | Over and out | WJOUSM::GASKELL | | Tue Nov 20 1990 15:26 | 12 |
| To note .68
Please read Note 1271.2 -- Quote: (The company is) "afraid...that to many
of the wrong people would except the package...and too many slugs and
hangers-on would not." Secretaries were exempt from the package from
the majority of DEC--they were viewed in too short supply and too vital
to let go.
As for working conditions--a trip to Hawaii would put a smile on my
face anytime.
Over and out.
|
1272.70 | Strecker went | ODIXIE::BONE | Osteopath | Wed Nov 21 1990 12:06 | 9 |
| For those of us in Engineering, did everyone know that Bill Strecker,
V.P. of Engineering went to Circle of Excellence? I guess he was an
invited guest of some other organization. Now that he has an
appreciation for this "boon-doggle" maybe he will put one together for
those in the effected groups.
Just wondering;
AEB
|
1272.71 | Sour grapes? Another opinion. | FDCV08::CONLEY | Chuck Conley, DTN 223-9636 | Wed Nov 21 1990 17:38 | 83 |
| Sour grapes? Welllll....
Maybe and maybe not. I'm all for rewarding the top performers in our
company. That's important, but PLEASE let's keep things in perspective!
1. Digital's earnings are down significantly.
2. We are letting people go. (Call it voluntary separations or whatever.)
3. Most of the people I work with haven't had a raise in so long that they
can't remember exactly when it was.
4. Just about all our personal expenses (and taxes) have been going
through the roof. Even luch at Tobin's (Digital Cafeteria) is
more expensive.
5. Digital is asking most of us to pay a larger part of our health
insurance costs.
6. A small perk, bottled water, was paid for by our cost center; now
we are being asked to pay ourselves. (Just an example.)
7. And on top of everything else, many of us have seen a significant
part of our life savings (Digital stock) decline in value by some
70% since 1987.
Star peformers are important to Digital's future success, but it takes
a lot more people than that, ALL doing their jobs competently, for DEC
to be successful.
It should be obvious by now that Digital is facing a difficult period
ahead. In order to make it through this, EVERYONE is going to have
to pitch in; even the star performers! I don't think many people are
saying we shouldn't have recognition functions, we are saying, let's
do them with moderation.
Finally, some people have said these things are planned long in advance.
People! these problems didn't develop overnight! I was reminded of this
when I happened across the following note.
<<< HUMAN::DISK$HUMAN_WRKD:[NOTES$LIBRARY]DIGITAL.NOTE;2 >>>
-< The DEC way of working >-
================================================================================
Note 54.8 DEC Layoffs? 8 of 10
SDSVAX::SWEENEY "Patrick Sweeney" 8 lines 5-AUG-1988 08:24
-< As reported in the New York Times >-
--------------------------------------------------------------------------------
(Three years since the last reply...)
"Thousands of employees in the manufacturing sector have been laid off
at companies like General Electric, Digital Equipment, and Gillette,
all major Massachusetts employers. The layoffs [in manufacturing],
which contine, reflect a national trend."
New York Times August 5, 1988 d1, Wages that Raise Eyebrows
--------------------------------------------------------------------------------
and just in case anyone is doubtful about the layoff issue:
From: ICS::CISMAIL "21-Nov-1990 1103" 21-NOV-1990 11:09:21.57
To: @MISG
CC:
Subj: Computer Industry News from MISG
********************************************************************************
DIGITAL FIRSTS: CLOSING, LAYOFFS
"Two First for Digital Plant Closing, Layoffs" (The Boston Globe,
11/21/90, PP:53)
Digital Equipment Corp. will be closing its plant in Phoenix, affecting 475
workers. Jeff Gibson, a Digital spokesman, said the company will try to
relocate employees to other sites. He conceded that some will likely be forced
out of work. Laid-off workers will receive a separation package similar to the
voluntary package Digital is currently offering in hopes of cutting 6,000 jobs.
An earlier, more generous package voluntary severance plan eliminated about
3,000 jobs. Gibson said the company could not rule out further closings or
layoffs. Last week Digital informed workers at the Springfield plant that disk
drive production would be shifted elsewhere. The company expects about 150 of
the plant's 470 workers to accept the voluntary severance. The plant will
continue to manufacture tape drives.
--------------------------------------------------------------------------------
For the sake of all our futures, let's hope that sanity prevails.
/Chuck
|
1272.73 | "Look at me, Mummy! Look what I can do!!" | COUNT0::WELSH | dbdx sccs | Thu Nov 22 1990 06:44 | 33 |
| re .61:
>>> Might explain why some of these events seem disproportionately
>>> loaded with staff weenies...
Another good reason relates to the "upwards" management
style remarked on elsewhere in this conference. In a culture
where "if it's not presented to you every second day it
doesn't exist", ONLY staff weenies are in the office
enough to "get visibility".
By contrast, the really hard workers are out earning our
living up to 100 hours a week. The only people who know
how good they are are the customers, and maybe the sales
people - and who's about to ask them anything8? Unless they're
smart enough to ask the customer to write letters to their
manager saying how great they are (a practise that sends
cold shivers down my back, but the alternative is obscurity).
When will managers adopt the philosophy of the inverted
pyramid, understand that the people at the customer interface
are the really important ones, and start making the effort to
find out what happens there? Instead of sitting back getting
their picture of the world from computer listings and self-
serving presentations. These guys are like a fighter pilot
flying on instruments - and the instruments are broken. If
he looked out of the canopy, he might notice he's upside
down!
(Actually, there is one instrument that works - the altimeter
or "stock price" in flying jargon)
/Tom
|
1272.74 | | CSC32::J_OPPELT | Save time -- see it my way. | Sat Nov 24 1990 18:59 | 50 |
| After reading through 70-some entries, I have a few things to
add.
There *are* people in this company who deserve a trip to Hawaii.
The author of .12 seems pretty deserving to me, although were I
him I would not have stuck my chin out to take the blows of those
who do not agree. :^)
I suspect that there were people on that trip who did not deserve
it. But I'd also bet that most of the people who did go were
quite deserving.
I read the LIVEWIRE report on the trip. One of the people cited
in the article was a Customer Response Rep. My first reaction
was indignation, I must be honest. To be a competent CRR you
don't need any particular technical background. You don't make
any sales (although you are in a position to lose some...) You
don't write any software. So how does a CRR merit this trip?
But then I got to thinking about it. The CRR is one of the lower
paying jobs at a CSC. So they are paid based on the skill set
required to do the job. Pay for performance. Why shouldn't
the best CRRs be rewarded for doing the best job of the bunch?
Just like the best sales rep is rewarded for being the best of
the bunch. Or the best account manager. All are paid relative
to the requirements for the job. But some just do their job
better than the rest, yet will receive little else for being the
best. I'd have to go along with the secretary a few replies back
who asked why secretaries didn't go.
Actually, secretaries DID go. In some cases, whole groups went --
managers, individual contributors, secretaries -- everybody. But
I'd like to bet that there wasn't one secretary on that trip who
was there on his/her own merits like the CRR mentioned above.
Perhaps there should have been.
Maybe we should cut the number of "top" trips to 1000 instead of
3200 (per the article), and divide the extra 2200 trips into
smaller incentives. Under the current Hawaii scenario, it costs
about $2000 for an employee and his/her guest. Well, $250 would
make a decent get-away weekend for two, and $500 would make a
super one. We could break up those 2200 trips into 4-8 weekends
each! Maybe have some varying levels of weekends and/or bonuses
and/or stock options.
So what about the folks who are ineligible for the trip because
their organizations don't budget for them? I don't believe that
taking it away from the organizations that DO budget for it is
the answer.
Joe Oppelt
|
1272.75 | | MU::PORTER | spam spam spam spam | Sat Nov 24 1990 21:37 | 7 |
| So do engineers (you know, those people that actually make the stuff
that DEC sells) ever get fancy trips like this?
I've never heard of it happening.
I might be a little biased, but it seems to me that engineering
is fundamental to DEC's profitability. No?
|
1272.77 | | LESLIE::LESLIE | Andy Leslie | Sun Nov 25 1990 13:58 | 1 |
| Sometimes.
|
1272.78 | | ESCROW::KILGORE | $ EXIT 98378 | Sun Nov 25 1990 15:43 | 3 |
|
And never in Hawaii.
|
1272.79 | | CVG::THOMPSON | | Sun Nov 25 1990 16:11 | 4 |
| And sometimes engineering management funds the release parties out
of their own pocket.
Alfred
|
1272.80 | | LESLIE::LESLIE | Andy Leslie | Sun Nov 25 1990 17:21 | 3 |
| Sometimes the ENGINEERS fund the parties from their own pockets and
have to hold them off-site because of legal worries around *gasp*
aloholic consumption.
|
1272.81 | | SCAACT::RESENDE | Digital, thriving on chaos? | Tue Nov 27 1990 23:14 | 9 |
| There are probably very few technical types who went to Hawaii who wouldn't
have willingly, eagerly traded their trip for access to the kind of
equipment / software that engineers get.
As for Sales getting the fancy trips ... Digital does what is necessary to
attract and keep good sales reps. The other large computer companies offer
trips to their top sales people, so Digital feels it just offer them too.
Steve
|
1272.82 | Eng tools a red-herring | AUSSIE::BAKER | Everything is mutable,in its own way | Wed Nov 28 1990 00:27 | 53 |
| > <<< Note 1272.81 by SCAACT::RESENDE "Digital, thriving on chaos?" >>>>
>
>There are probably very few technical types who went to Hawaii who wouldn't
>have willingly, eagerly traded their trip for access to the kind of
>equipment / software that engineers get.
Hold on, this may be so, but its a red herring. I use the equipment
on my desk as a tool-of-trade (my chisel, hammer, saw etc.), if there
is a problem with the Hawaii "technical types" missing out on equipment
they NEED (rather than want), that is an entirely different issue that goes
to the heart of why companies think they can get away with providing
workers with less than what they need to do that job. If I'm a
mechanic, I expect to be able to reach for a wrench (and possibly
several hundred thousand dollars worth of computer test equipment);
if I'm a field-service engineer, I expect a full electronics toolkit
(the test equipment is often built-in, by H/W & S/W engineers); if I'm a
Software Engineer, I expect a workstation with development software and
the hardware needed for the development. I dont think the "greatest
toy" argument holds that well when the toy is now the standard tool.
If the field is not getting the tools it needs, its not engineering's
fault because they are (if they are). There are programs in place to
get field developers trained in CASE (CASE/START...) on
workstations. Getting the field managers to look beyond the next quarter
is not Engineering's responsibility.
On the other hand, we should not strangle reward systems. We should,
however, ensure they are fairly administered and available to all.
During a tough time, its important to cut back, but not at all costs.
You should not hit reward and incentive to the point where you lose
good workers. The art of coping with business downturn is to cut the
fat without cutting out your vital organs. Managers should encourage
even more during hard-times, and we should always look at any
expenditure as investment, not just cost, and assess it in regards to
pay off.
>As for Sales getting the fancy trips ... Digital does what is necessary to
>attract and keep good sales reps. The other large computer companies offer
>trips to their top sales people, so Digital feels it just offer them too.
Yes this is true, its part of the market place for those services. You
have to ask though: are the reward structures adequate in other parts
of the corporation? Are we rewarding good ideas and effort beyond the
call in ALL areas? Are our reward systems commensurate with other
companies?
>Steve
John
EIC/Engineering, Sydney
|
1272.83 | gut reaction | DELREY::MEUSE_DA | | Wed Nov 28 1990 12:19 | 8 |
| My own personal feeling, not based on the arguments I have heard, for
or against is simple. If things are so bad a company must shut down an
entire plant, and the news is more "big" closures/layoffs are foreseen,
than a trip to Hawaii is rather extravagant. That is just the way I
feel about it.
Dave
|
1272.84 | | ESCROW::KILGORE | Its not over til Milli Vanilli sings | Wed Nov 28 1990 15:22 | 3 |
|
Smart gut! Would that some brains worked as well.
|
1272.85 | Someone to hand out the plaques? | WORDY::JONG | Steve | Wed Nov 28 1990 20:35 | 6 |
| I've skimmed this topic too, and I have no problem with people being
rewarded, even with such an extravagance as a trip to Hawaii.
I do wonder, though, if the rewardee's supervisor and manager and group
manager and senior group manager and vice president and senior vice
president, and their spouses, should come along as well...
|
1272.86 | Engineering was well represented, luckily. | SWAM2::MCCARTHY_LA | Value indifferences? | Fri Nov 30 1990 12:34 | 13 |
| re: .70
Bill Strecker went as the guest of a winner in the Sales organization
(his wife, I believe). He graciously agreed to present some high-level
strategic information to the attendees. This sort of stuff, apparently
common knowledge in Engineering, is unknown to us boondogglin' field
types. I, for one, appreciated it.
- Larry.
p.s. - As has been implied in earlier replies, "field" is, of course,
just another word for "Endless Party"! And we have lots and lots of
openings, too! C'mon out! Join the fun! :-)
|
1272.87 | Presentatioin = non-taxable income | ODIXIE::QUINN | | Fri Nov 30 1990 13:15 | 7 |
| re: .86
Boondogle or not, when someone volunteers to make a presentation at
these trips, they are considered business and as such are not taxable
items I believe. So Uncle Sam is deprived of a few extra bucks also.
- John
|
1272.88 | Note international difference valuing in this note | SWAM2::MCCARTHY_LA | Value indifferences? | Fri Nov 30 1990 13:26 | 9 |
| re: .87
The value of the guest's trip is added to the winner's W2 (if one
brings a guest). The winner then gets a "tax-adder" which approximately
cancels the tax impact. So, no, Uncle (or the Inland Revenue or whoever
else is deserving) gets the appropriate poundage of flesh. Bill was
just being a nice guy. He could have stayed pool-side.
|
1272.89 | Please -- keep it quiet! | WORDY::JONG | Steve | Mon Dec 03 1990 17:17 | 30 |
| I think legitimate questions are being asked here about incentive
programs. We can't afford B-D. But I warn you: The whining is
reaching alarming proportions. I accept different reward structures
for different groups and different locations, but I see no reason why
the company must offer all awards to everyone. Clearly, there are
reasons why the company *cannot* afford such largesse, even to the
relatively limited extent they are offered now.
I remember a department at a company where the manager came into a
little extra end-of-year money and offered to spend it on a party for
the employees. The only condition was that they specify how they wanted
the money spent. An employee committee was quickly set up to discuss the
selection. Some felt the money was best given as money; some wanted an
event. Some wanted a formal party, some an informal one. Some wanted
an evening event, some a daytime event. Some wanted an indoor event,
some an outdoor one. Some wanted this restaurant, some that one. This
was only a small committee, but they quickly became deadlocked. They
discussed and sampled and went out and argued and squabbled and fought
over this party, and it went on and on for weeks.
Finally, the manager grew tired of listening to the arguing and said
"to hell with it all," and kept the money. We never did anything.
If you think this story is an invention, you don't know me well 8^)
This note is probably a substitute for the traditional "why a turkey?"
note, which annually makes me cringe in fear that KO will decide that
too many turkeys are being REwarded, not Awarded. I hope this topic
dies down soon, before Jack Smith reads it and decides to cancel the
whole boondo -- trip.
|
1272.90 | | ESCROW::KILGORE | Wild Bill | Tue Dec 04 1990 08:14 | 22 |
|
Re: "Please -- keep it quiet!" Nothing will make people touch a wall
more than a "wet paint" sign.
"Keep it quiet" implies that there's something going on under the
sheets that polite people don't talk about in public -- is that the
case?
And I object strenuously to the blanket categotization of feelings
expressed in this string as "whining". Evidently, many respondents find
that awarding a Hawaiian trip for two to so some people who are good at
their jobs, and a handshake (or less) to other people who are good at their
jobs, smacks of eletism in a company that prides itself on equality.
How do Hawaiian boondoggles fit in with the handful of people who have
private offices, the virtual nonexistence of reserved parking spaces,
open communication and open door policies? Not very well at all.
The party money story has much less to do with awards than with the
hopelessness of management by committee. The manager who came into the
money should have asked some trusted compatriots for ideas, then made
a decision and stuck by it.
|
1272.91 | It doesn't just cost money either... | SNOC01::NICHOLLS | Free the PDP 11 | Tue Dec 04 1990 17:54 | 3 |
| 3200 people (as the facts suggest) spending a week in Hawaii is also 60
person years of employee time. This when people are being asked to
leave seems a bit strange....
|
1272.92 | where it's at | SHIRE::GOLDBLATT | | Wed Dec 05 1990 03:54 | 9 |
| 3200 x 2000 = 6.4mio $
How many CERTS equate to this profit ? How much selling and support
effort ?
Those are the numbers that should be balanced against the benefits of
the award.
David
|
1272.93 | There probably wasn't a Salesperson there ... | YUPPIE::COLE | Opposite of progress? Con-gress! | Wed Dec 05 1990 10:13 | 17 |
| ... with LESS than $6.4M in total CERTS over the measurement period.
The Sales support people probably leveraged at least that much over the year
in support of said Sales force. The delivery people went out to the customer
site and made it all work to the customer's satisfaction, so he didn't end
up sending it back for an A/R write-off.
Now, to correct a minor syntax flaw in the previous reply:
CERTS .NE. PROFIT !!!!!!!
CERTS is a management planning tool for predicting revenue stream. It ain't
PROFIT until the customer check clears! As they are now starting to hold some
Account Managers accountable for PROFIT in their accounts, you may see some
change in quality AND quantity of Sales attendees at Circle of Excellence, at
least I hope so.
My $.02 worth.
|
1272.95 | RE: .-1 In my "previous" life at "DEC", ... | YUPPIE::COLE | Opposite of progress? Con-gress! | Wed Dec 05 1990 12:57 | 4 |
| ... from '76 to about '85, Salespeople were being turned out on a
dime for non-performance. From '85 until now, at "Digital", I can't recall
ever hearing of a Salesperson being fired, only moved to a "staff position
at Area" (some of them are still around)!
|
1272.96 | Don't bitch about sales, they keep us employeed | GUIDUK::B_WOOD | Compared to Alaska, Seattle winters are warm | Wed Dec 05 1990 18:10 | 33 |
| re: .93
Profit is accrued when the customer issues an order and the goods ship
and invoice. This is not Digital policy, this is GAAP for accrual
based accounting. (GAAP = Generally Accepted Accounting Principals
as determined by Financial Accounting Standards Board - FASB).
Income = Sales less ( Associated Costs including allowances for
Bad Accounts recievable)
Debit - Accounts Recievable
Credit - Equipment Sales
When the customer check is deposited:
Debit - Cash
Credit - Accounts Recievable
I get particular because prior to becoming a *hacker*, I was a
Certified Bookie.
Re: .94
Anyone is sales thinks salespeople are primadonnas. Maybe many
are. However, one adage holds true: "You can never pay a good
Salesperson too much". If a salesperson is really selling our
product, the $3000 to $4000 dollars necessary to send them to
Hawaii is money well spent. The general consensus amoung many
of our sales people is that Digital's sales compensation package
isn't competitive with the rest of the world to which I have to
agree.
Let me state for the record, I am not a sales person!
|
1272.97 | | PSW::WINALSKI | Careful with that VAX, Eugene | Wed Dec 05 1990 19:18 | 11 |
| RE: .96
> Profit is accrued when the customer issues an order and the goods ship
> and invoice.
REVENUE (income) is accrued when the customer issues an order and the goods ship
and invoice.
PROFIT accrues (if it accrues at all) when revenue exceeds expenses.
--PSW
|
1272.98 | accounting and suggested reading | SDSVAX::SWEENEY | Patrick Sweeney in New York | Wed Dec 05 1990 21:00 | 22 |
| .96 almost has it right. It's so close I can't resist the impulse to
correct it. Receipt of an order has NO accounting impact. None. Zip.
The thing ships:
Increase (debit) accounts receivable
Decrease (credit) inventory (other companies use "finished goods")
The customer pays:
Increase (debit) cash
Decrease (credit) accounts receivable
Profit (or Net Income) is a residual of the aggregates of all revenue
and all expenses and this is reflected in the income statement
Identifying profit on a transaction basis requires a lot of effort to
accurately assign revenue and costs to that one transaction. Find
people in Digital who can agree on this for extra credit in Accounting
101.
But what I really entered the conference was to mention that
Wednesday's Wall Street Journal had an article "More Firms Try to
Reward Good Service, But Incentives May Backfire in Long Run"
|
1272.99 | See CARM for Actual Wording | NRADM::PARENT | IT'S NOT PMS-THIS IS HOW I REALLY AM | Thu Dec 06 1990 09:15 | 13 |
| Re last few
Digital's Revenue Recognition Policy, which has remained unchanged
(other than adding provisions for more complex transactions) for years:
Revenue is recognized at the time product ships or service is rendered.
This is accomplished by the generation of a sales invoice OR by
accruing for shipments not invoiced during the period.
This is documented in the Corporate Accounting & Reporting Manual
(which covers domestic, foreign and subsidiary sales) Section 302
which is available on VTX.
Evelyn
|
1272.100 | a clarification | SHIRE::GOLDBLATT | | Mon Dec 10 1990 03:33 | 11 |
| re. .93 et al
Excuse me for not making myself clear. By "equate to profit" I meant
"will generate this much profit" ie. the amount of CERTS that will
generate 6.4 mio $ profit.
In any case, I was only pointing our that the "funny money", used to
finance the Hawaiian trip, was produced by a lot of hard work by
Digital people. This point is often overlooked.
David
|
1272.101 | X+Y+Z+...n = Sales??? | RAVEN1::DJENNAS | | Tue Dec 11 1990 13:23 | 17 |
| There will be no sales until we invent, develop, manufacture
profitable, competitive products.
It seems to me to be an extremely simplistic and banal a strategy for
DEC to concentrate only on the more visible, obvious correlation between
revenues and and their immediate link, i.e. Sales. I am afraid there is
a simple analogy which should make my point: I will not sell a dime's
worth if I do not have competitive products regardless of my sales people
prowess. I can sell a million's worth if I have the best products on the
market, regardless of my sales people caliber. I believe in rewarding,
however I do not believe in the disproportionate rewards that DEC now
has in place. Please do not misunderstand me, good sales people are as
important as any other function peolpe. The number of replies this base
note has recieved so far emphasises this point better than any
dissertation could.
reflects this view rather
|
1272.102 | So what do we do to keep top sales talent? | NEWVAX::PAVLICEK | Zot, the Ethical Hacker | Tue Dec 11 1990 13:56 | 58 |
| re: .many
All of this discussion about the "obscene" sums available to sales
people is quite interesting. However, it effectively skirts the real
point.
If I, as a salesrep (which I'm not, by the way), know that my top-notch
skills can result in DOUBLE my current salary on the open market (on
average over time), why should I stay here? Some argue for stability,
lack of commission pressure, etc. Fine. But how many top sales reps
will you lose? In a word, LOTS.
If I, as a salesrep, know that my average skills probably won't result
in much more commission than I make on salary here, guess where I'm
staying.
Shoe on the other foot: A lot of noise has been made about Digital
being a few percent below "industry average" in paying our Engineers
(rathole: I believe we should be at LEAST at industry average).
Suppose the survey showed that our top Engineers were paid 25% less
than average? Or 50% less? How many top Engineers would we lose?
We can mouth off all we want about "it's not fair", etc. Problem is
that we need to do SOMETHING to attract and keep top talent in a field
which has a very high pay scale. So what do we do?
re: .101
> There will be no sales until we invent, develop, manufacture
> profitable, competitive products.
> I am afraid there is
> a simple analogy which should make my point: I will not sell a dime's
> worth if I do not have competitive products regardless of my sales people
> prowess.
Simple and, I'm afraid, incorrect. There are several companies I know
of that survived YEARS selling hopes and garbage. There is one HUGE
company I can think of that used agressive selling techniques to turn
mediocre products into MONSTER revenue.
You think you need substance to sell? Pick up a copy of any
supermarket tabloid. Here is the essence of of the term "worthless".
Yet they are among THE MOST PROFITABLE COMPANIES IN THE INDUSTRY.
> I can sell a million's worth if I have the best products on the
> market, regardless of my sales people caliber.
I don't believe that for a minute. In a heavily competitive
environment, you need excellent sales people to make inroads -- even
when you are selling the BEST solution! I've seen poor selling botch
golden sales a number of times...
So, should we sell junk? No. Should we forget Engineering, etc.? No.
But we need to compete for top-notch salesreps. How about we quit
ranting and come up with a way to compete in the sales talent market?
-- Russ
|
1272.103 | 1272.102 is very well put | FASDER::AHERB | | Tue Dec 11 1990 20:50 | 1 |
|
|
1272.104 | We Created a Monster! | RAVEN1::DJENNAS | | Wed Dec 12 1990 12:56 | 48 |
| re: 102
Your opening argument is well taken, however it applies to other
disciplines as well. You keep emphasizing the need for TOP sales
talent, is that an artifact of our present situation or a real
lack of specific resources.
You mentionned that my simple analogy was incorrect. In the context
it was used, referring to tangible products (computers), could you give
us some examples of how you could sell some non-existent product for
the long term. Your analogies are not fair unless we only want to
SURVIVE for a FEW years only.
What is worthless to you and I, is NOT obviously worthless to people
who regularily buy these magazines, they get something out of them
that you and I don't. We are NOT all equal.
BTW , they are no salespeople, as we know them, involved in your stated
example of "worthless" high success products.
> You think you need substance to sell?
> So, should we sell junk? No.
You made my point, again in the context of my comments, we better have
substance.
There is at least one computer company that is doing very well with NO
Sales force of their own, How? simple, they have the best product on the
market, demand begs supply, no need for sale pitching.
The need for Top sales people is inversely proportional to the market's
demand for a product. Would you hire more salespeople or engineers if
demand overtakes supply, the outcome of an outstanding engineering
product. BTW the reverse rule applies, more salespeople will be needed
if supply is higher than demand.
My point in my previous remark and this one is that I do not believe
that Sales are more important than engineering, however due to the
fact that they are on the front line, they get more visibility and
thus get rewarded accordingly, though I believe unfairly.
Over And Out.
Franc.
|
1272.105 | We cannot compete without both excellent engineering and sales | NEWVAX::PAVLICEK | Zot, the Ethical Hacker | Wed Dec 12 1990 21:18 | 58 |
| re: .104
I smell certain elements of a violent agreement here... 8^)
We certainly both agree that we need substance in our products. My
argument is that we need equal substance in salesmanship when our
products cannot establish themselves in a clear, they-sell-themselves
leadership position.
The era of the bulk of our business "selling itself" is long gone.
Even with the best products, other companies are there to compete with
us. One certain Blue-colored competitor is notorious for knowing how
to sell even when a competitor's products may be superior in almost every
way. Other competitors use price advantage to unseat superior
technology. Many of these don't use a large salesforce, as you
mention. But they successfully harness the power of OTHER salesforces
by making it possible for retailers and distributors to make good
profits through the sale of the products.
[By the way, using another company's sales force can also be done in
Engineering: by buying technology instead of inventing it. I once
interviewed at a company which is very well known in the VMS system
utilities market. I was shocked to find out that up until 1988 or so
they had purchased almost ALL of the systems they were selling! They
were only beginning to do serious in-house SW engineering on their
own.]
My thesis point still stands: we need to attract and maintain
excellent talent in both the Engineering and Sales arenas (and many
other areas as well). In order to do this, we must be prepared to
offer both groups attractive compensation. If we are not prepared to
offer Sales high salaries, excellence trips, or other incentives
because "Engineering doesn't get them", then how are we to maintain a
highly motivated and talented sales force?
If we decide to do away with direct sales and go back to an emphasis on
distributors, we will need to cut distributor prices to stimulate
selling. Such talk of reducing precious margins is considered heresy
these days.
We've got a real life problem here, folks. Reducing Sales compensation
is an excellent way of "eating the seed corn". We'll save some bucks
up front, people will feel warm and fuzzy, and we'll starve to death...
By the way, I, as an EIS PSS Delivery body, see other inequities as well.
There are PSS people here who are billing $90-$150 per hour and up.
Do you think they get paid anywhere NEAR that amount? No way. Often,
we're right up front -- just like Sales. Likewise, Sales Support might
do a very Sales-like job. Do we get as high salaries as sales
folks? Usually, no. Why? Because our talents aren't in the same market
as sales folks. Do I like it? Of course not, but I can't change the
American free-market any more than anyone else can. So we just have to
find creative ways to compete without compromising our values.
-- Russ
PS/ An example of GREAT technology that clearly HASN'T sold itself --
even when industry analysts seem to be begging for it -- VAX NOTES.
|
1272.106 | | MU::PORTER | waiting for Baudot | Wed Dec 12 1990 21:44 | 30 |
| > One certain Blue-colored competitor is notorious for knowing how
> to sell even when a competitor's products may be superior in almost every
I heard a good anecdote about that. Seems a lot of companies
are implementing a certain network protocol (I forget which,
doesn't matter, it was round about the data link level).
In the computer, we think of things coming in chunks
called "integers" and the like, but on the wire, it's
one bit at a time, and obviously the order matters -- which
end do you transmit first?
To over-simplify, IBM had managed to misinterpret the
spec and passed an address the wrong way round. In some contexts
this could be fixed up by clever software, but other contexts
couldn't be handled.
DEC architects help convince IBM that for the good of the protocol
(which was supposed to be "open") they *had* to fix their
bug and do it the same as everyone else. After all, they were
clearly the ones in error.
IBM issued a press announcement which heralded this change
to their software in order to enable communication to
companies such as DEC, and said how this demonstrates
that IBM is truly committed to open networking, how IBM
is flexible in adapting to customer's needs, blah blah.
How come I don't get press announcements when I fix a bug?
|
1272.107 | Because it's nobody's job to make you look good | COUNT0::WELSH | What are the FACTS??? | Thu Dec 13 1990 07:43 | 15 |
| re .106:
>>> How come I don't get press announcements when I fix a bug?
Compared to IBM, Digital has no central Marketing function.
I mean one that is proactive, creative, and acts with
authority to enhance IBM's image in the market.
Thanks to their Marketing function, IBM can actually do
things wrong, and come away looking better than us (who
did things right). This is also partly because Digital
PR people seem to be past-masters in the art of putting
achievements in a negative or (worse) boring light.
/Tom
|
1272.108 | IBM is only one of many competitors too... | TOOK::DMCLURE | DEC is a notesfile | Thu Dec 13 1990 18:05 | 22 |
| re: .107,
> Thanks to their Marketing function, IBM can actually do
> things wrong, and come away looking better than us (who
> did things right). This is also partly because Digital
> PR people seem to be past-masters in the art of putting
> achievements in a negative or (worse) boring light.
It might also have something to do with IBM's emphasis on
marketing. Way back when I was a programmer for Sales Training
IVIS courses, the talk was that IBM's Sales Force (which might
or might not have even included their marketing division) was
larger than DEC. Of course, since then they have since downsized,
and we have probably upsized to try and compensate.
The point being, with so many professionals specializing
in mind control (another way to look at marketing and/or sales),
employed by the competition, you should always think twice about
what you hear from the industry and trade press. Luckily, Ken Olsen
is hip to most of their tricks.
-davo
|