Starting her mission in 2003 for Tyco International, Laurie Siegel, as Senior Vice President of Human Resources and Internal Communications, was responsible for the company's strategies for organizational performance, leadership development, staffing, employee compensation in the form of benefits, training. personnel, building processes and internal communication. It is useful to note that Tyco International Ltd. is an international company that provided products and services in the following segments: fire safety, electronics, healthcare, engineering, plastics and adhesives. It was a complex distributed system.
Upon analysis it was found that human resources play a key role in overcoming the company's crisis. To rectify the situation in the company, it was assumed that leadership should be developed based on values, at the same time, employee involvement should ensure a favorable transition through a situation of high uncertainty.
To complete the task, were required to perform 5 functions:
A new management team had to be hired to take the company to the next level of development.
Laurie Siegel helped set up processes for identifying, developing and promoting talents. The next step was to establish best practices in the company to maintain the values that unite team members for the work involved.
Laurie Siegel, of course, tried to hire the best people and fine-tune the hiring process itself. It was about the restoration of the board of directors. The main difficulty was the uncertainty of the future of the company, an unstable reputation. Leadership in the team had to come naturally in the course of the work, since the best people were hired. After the ideas were manifested, it was necessary to establish training of personnel for implementation. If the work was truly creative, it could improve work ethics and morale in the company. Further, it was required to develop a compensation plan, support for career growth in the company, develop a practice of recognizing the valuable qualities and competencies of employees in order to stimulate work to a new level. Employees were supposed to receive a smooth growth of qualifications and development of competencies, relying on educational and development activities. The employee database was supposed to help motivate employees correctly. Engaging auditors could help improve the performance of the company's departments and improve operational efficiency.
Tyco recruited over 100 internal auditors to follow through on the planned steps. Laurie Siegel planned to conduct ethical policy seminars at the company. Laurie Siegel has developed a strong corporate code of ethics, 260,000 employees received a multi-page ethical policy that has been translated into 12 languages. Then 25,000 managers were awaiting the update of the bonus policy. Before the crisis, bonuses were awarded to everyone who somehow increased the company's numbers. This turned into something exorbitant for the company, stalling performance gains and increasing managers' appetites.
In carrying out the steps of the new plan, the company took bold steps and lowered the level of wages, also shifting the emphasis on long-term development prospects. Performance metrics have been revised to support the change. The previous version of the compensation plan had been changed. The new system included profit margins for each business unit as well as the overall performance of Tyco International.
The management of the company saw new perspectives for work and assessed the contribution of Laurie Siegel positively.
Finally, all together led the company to the need to implement a new information system.
As a result, the fiscal 2003 budget was cut by $ 90 million. In 2004 and 2005 the goal was to improve operations, strengthen balance sheets, strengthen corporate governance standards and improve the company's reputation.
Since Laurie Siegel has quit, we understand that something went wrong.
Looking at this situation from 2021, we can say that the task of transforming the company was doomed to failure. Today it is clear that it is impossible to separate the personnel system from the general system of the company. Today it is known, as many times described by McKinsey analysts, for example, that we are talking about a complex and radical change in the company's operating model.
The first thing to start with was to establish what kind of value the company creates for consumers. The next step was to establish end-to-end processes to ensure the delivery of value to the consumer. The next step was to establish which departments are needed to support the business processes that deliver value to customers. Today it is clear that if the values and method of value delivery are not clear to the consumer, then the consumer will not pay, and any changes within the company become meaningless.
End-to-end business processes mean that an employee compensation plan is related to how quickly and efficiently the value is delivered to the consumer. An end-to-end business process means that each node and department is included in a single process of delivering value to the consumer at its level and is compensated depending on how it has completed its part of the work to deliver value to the consumer.
In conclusion, large distributed companies emerged at the turn of the 20th and 21st centuries, the true value to humanity of these companies has yet to be comprehended. The economic crises of recent decades are often associated precisely with the activities of large companies, since they are difficult to manage, their structure is too complex. The process of analyzing business inefficiency is being conceptualized to this day, it cannot be disregarded that successful companies are often small companies, employing several people who know each other well, who understand well what values they deliver to consumers. Based on this, Laurie Siegel's mission was most likely impossible.