Conference 7.286::digital

    Short Term versus Long Term Focus.
    
    	You hit one of the key issues concerning corporations.  Where the
    focus is.   Right now short term (like the next quarter).   No one
    is talking about Business Cycles.   The Economic Business Cycles,
    as far as I know are four, we are in a recession (or has been).
    Recession/depressions are not forever, this one has been one of the
    longest, but sooner or latter it will end.    What will happen with
    those companies (as DEC, IBM, GM, etc., etc., etc.) who layed-off
    1,000's of employees.....my best guess, they'll loose valuable
    resources when they can not afford it because their already low
    manpower will be needed urgently and any attrition will be devastating
    due to the 'learning curve factor'.    This learning curve factor,
    specially in highly technical and specialized industries, claims that
    an employees is in 'training' its first one/two years and yields
    positive returns in the third year.   So, these industries will have a
    double hit: people going out the door to 'better' jobs and fewer people
    training new recruits while having an increase demand for their
    products.    The picture is clear, you will leave customers waiting
    for your product/service because you don't have enough trained
    resources to meet increasing customer needs.   A very weak position to
    be in.   The winners, will be those companies that have a motivated 
    and flexible workforce ready to meet those customer needs, with 
    quality goods.
    In bad economic times, a company can do whatever they want with
    employees, there are too few places to go to, when the economic
    business cycle improves, its the other way around, employees ability
    to move will permeate the way companies 'behave'.

>>I discovered that DEC's reputation as a place to work is 
>>no longer good.
How did you determine this? Comments of the students, faculty,?.
What reasons were given? Where did they get their info...the grapevine?
How bad is 'no longer good'?

>>Where will the new blood come from now?
Why do you think DEC is looking for (or even wants) 'new blood'.
There's still an abundance of 'old blood' they're still trying to
unload. Its not clear that DEC is going in any direction really.
So, there's not much need to hire someone new when you can flounder
with your current workforce.

    The only thing I heard the Palmeister say was that he would not support
    a package better than IBM's, mentioning their cap of 26 weeks.  A cap
    of 26 weeks would have no effect on 80% of our employees.  (The 80%
    number is made up).  My expectation is for them to whittle down the
    Tiff-So package again, but continue it at least for the next quarter or
    two.
    
    The re-org is proceeding faster than we could have expected, but behind
    their stated deadlines.  In addition, it is inevitable that it will
    take a few months for the effect of all the changes to roll through the
    company; then the fine-tuning will begin.  
    
    For U.S. sales people, it looks sensible to have people stay at work
    through Q4 and have the last major round of Tiff-So a bit later, after
    the CBU's get a better handle on how things have shaken out.  For the
    rest of the company, there will still be the need to fine-tune.  Both
    assumptions lead you to expect some version of the package to remain,
    even though most of the cuts have been made.
    
    Re:  .1
    
    I agree we would lose productivity if we had to ramp up again in the
    next positive swing of the business cycle.  But what if we slowly sink
    into another mild recession and stay there for two years?  Or what if
    the fundamental changes to our industry mean that we have to continue
    to cut forces even in an up-cycle?
    
    And there is one off-setting benefit to the loss of experienced people. 
    If we do have to grow later, we could increase the percentage of "new
    blood" in the company.  One of the things that lead to our troubles was
    insularity.  We simply had too many people who had worked only here,
    and had no idea how things were done elsewhere.  This leads quickly to
    complacency, NIH, and a slow response to changing market realities.
    
    P.S. - not to be blase about the human costs.  Like everyone else, I
    have no idea if I will have a job here.  But you have to do the
    business analysis cooly and dispassionately. 

    Re .3:
    
    Remember, the TFSO "cap" is now 52 weeks.  A new cap of 26 weeks means 
    a reduction of 50 percent in maximum severance.  I would expect EVERYONE 
    who faces TFSO after Q4 to see a similar percentage drop as compared 
    with the current package.
    
    Mac

    
    
    I wish this smaller "cap" had come sooner.  I think I'm more upset by 
    the stories of people ready for retirement getting nearly 2 years of
    severance and still collecting pensions.  This is after having a very
    good career at a Digital that was a low-stress high-paying employer.
    
    Imagine how those of us born after 1960 felt when we saw our colleagues
    (some of whom had skills Digital needs desperately) get a few weeks
    severance and a pat on the head.
    
    -Ed_from_Generation_X
    
    

    
    I have a question that someone out in noteland could probally answer. 
    
    Does the X number of weeks cap include accrued vacation time or not?
    
    Ken
    

re: .3

>    The only thing I heard the Palmeister say was that he would not support
>    a package better than IBM's, mentioning their cap of 26 weeks.  A cap
>    of 26 weeks would have no effect on 80% of our employees.  (The 80%

I can not help but be amused at the selective application of "IBM standards" to
our corporate decision-making process.  So we can't do TFSO more than IBM's
equivalent.

How about limiting our healthcare programs to IBM's .... no payroll deductions
for employees or their immediate families?  Far better than the directions
we've been headed with HealthNet and the HMOs and demise of the DMPs.

Of course I'm not seriously suggesting Digital expend the monies to do this ... 
just pointing out the selective nature of using IBM as our role model as a
corporation.

    Yes, IBM has been a good example of a role model to follow lately.
    Maybe we can try their previous no layoff policy. Shutdown a site,
    move it as far away as possible and tell those who'd like a job 
    they'll have to move to the new site. Some do, many don't and the
    wanted downsizing occurs. Right, more IBMisms don't hep up my morale.
    
    Jim C.
    

    re -1
    
    Been there, done that - in Digital Japan according to a former 
    colleague there.  (Now Apple Japan is benefitting from her considerable
    skills...)
    
    Colin
    

    re .8
    
     Perfect example, Digital Galway. Lots of talent going elsewhere.
    Minimal interest in relocating with the company.

    RE: .6 Ken
    
    No!  The "package" is whatever Digital determines... PLUS your
    vacation time (and Choice/Personal holiday if you haven't taken it
    yet).
    
    My former boss just got TFSOed and he had the max on vaca he could...
    then was told that during the 7 weeks he was in transition it would
    continue to accrue.  He now loses out on an additional 21.56 hours that
    he could have used!

    RE:.11
    
    Thanks!  
    
    Ken