RannNiti

CASE STUDY
Like many large organisations, Vision Corporation, the world’s second-largest software
company, is grappling with issues relating to management of a worldwide workforce.
Headquartered in the United States and led by founder and chairman Larry Ellison, annual
revenues exceed US$ 9.8 billion.
The company now operates with 67 offices, with approximately 49000 employees
worldwide. Originating in North America, Vision’s software applications follow
technological expansion into global markets. As knowledge management becomes a science
and global knowledge-based economies emerge, applications suppliers such as Vision enable
businesses to benefit from the technologies. Originally a company of many separate business
groups, each managed by self-reliant autonomous generalists, Vision has become a company
of inter- dependent business groups managed by specialists and valuing knowledge and team-
work. Vision has all its business application products on the Internet, and now boasts 100 per
cent globalised IT systems, which are hosted in the US. Marketing, customer sup- port, sales,
buying and HR functions are carried out on the Internet by Vision employees around the
world. Strong leadership and direction are provided by head office, while empowerment
within geographic regions is encouraged. Global initiatives at times require change
management when implemented in other parts of the world.
The company is structured using both functional lines and geographic regions, resulting
in a complex organisational structure. Sales and consulting functions are organised around
geographic regions (Africa/Middle East, Asia–Pacific, Europe, Latin America and North
America), with multiple countries reporting in each region. Other support functions such as
marketing, human resources and legal divisions have dual reporting lines. They report
vertically through global (not geographic) divisional vice presidents. Their primary
accountability is to their globally headed vertical line of business, but they also have ‘client’
responsibility to their local countries. Consequently, countries are headed by a managing
director who has direct influence over the sales and consulting organisations reporting to him
or her, and indirect influence over the support functions that report vertically. Adding further
complexity, technology groups such as product development and information technology
teams report globally with few geo- graphic limitations. Such a structure differs markedly
from organisations of the 1980s, including Vision itself, in which all functions reported to the
country managing director.
Both global and geographic virtual teams are dynamically formed across the organisation
for purposes of client focus, problem solving, projects or company initiatives. This means
individual team members come and go from the team as projects, needs and circumstances
change.

Technology as an enabler
Teams are able to operate globally owing to leading-edge communications technology. With
100 per cent of employees online, communication is achieved through email, regular
conference calls and net meetings. Additional regular communication globally using
interactive web seminars provides an effective way to keep up to date and to clarify
understanding of functional directions. Smaller global teams and virtual teams take the
opportunity to meet at a mutually convenient location when projects require a concentrated
effort over several days. Such meetings will generally include team building as part of the
meeting agenda. A vast array of information is provided and accessible on the company web
site.

Leadership
Early attempts at globalisation created some initial tensions. Strong leadership in Vision in
earlier days introduced global initiatives prescriptively, which resulted in some resistance by
country management. Like many national managers, local country managers sometimes felt
their local differences weren’t given due consideration. They were most familiar with the
local territory, customs, culture and language and felt head office were not in touch with the
local conditions. This problem has evolved over time with the increased emphasis on change
management and a consultative process at both geo- graphic regional level and globally. Such
tensions are a result of an expected resistance to change. Tensions tend to resolve as trust and
knowledge build. The directive approach has become more consultative: a plan — rather than
a directive — becomes a ‘proposed plan’, local feedback is requested and plan developments
are regularly communicated. Global management has matured.

Remote team management

Managing teams remotely is the logical consequence of the organisational structure for some
teams in Vision and other, similar organisations. For example, a global information
technology (IT) manager based in Melbourne may have staff reporting to him or her from
Singapore, Taiwan, India, Sydney and other parts of the world. In some instances, such team
members may operate alone in their country of residence or have team colleagues in their
own location. Vision provides managers with training in how to manage performance
remotely, and how to engender a sense of belonging across vast distances, creating a team
with common purpose. Cross-cultural issues are directly addressed and differences between
countries are taught using a ‘Cultural Intelligence’ specialist. Country-specific cultural issues
such as communication (verbal, written, non- verbal and body language), time orientation and
power distance (degree of respect for leaders) are considered.

Managing individuals
Increasingly, global and Asia–Pacific managers have common and specific standards for
employee performance, no matter where in the world team members reside and what
individual and country cultural differences exist. Functional Scorecards for team performance
are being introduced in some lines of business, supported by online reporting tools. Managers
are encouraged to implement individual development plans, provide regular feedback
(including six- or twelve-monthly appraisals), use non-financial rewards and coach
employees. The company provides generous benefits and invests in developing their
employees. Online tools and training programs support employee development. Managers are
developed through both internal Vision and external pro- grams, and are offered self-
assessments and survey tools to highlight potential areas for further development. Vision
attracts high-quality, talented applicants for vacancies and boasts low employee turnover.
Senior managers have the opportunity to network with others through industry and peer
networks, mixing with others experiencing similar changes in their organisations. This
provides an effective way to maintain perspective and to develop effective personal and
organisational strategies for managing the changes that globalisation brings.
Organisational goals reflect market changes
Vision has evolved from a company primarily focused on database technology to an
organisation that supplies both technology and applications solutions for businesses. With
that change has come the need to better understand their customers and to work more closely
in partnerships with their clients. This development has had implications for Vision
employees, who have changed their focus accordingly, listening and responding to
customers’ requirements and working more closely with their client groups. Over time, subtle
and not-so-subtle market changes will continue to affect the business, which needs to be able
to adapt and respond flexibly.

Summary
Globalising a workforce is not as simple as issuing directives from head office and expecting
immediate compliance. A great deal of effort at all levels is required to deal with the
technology, communications and management issues that arise from a complex globalised
workforce. Vision continues to work to build a workforce that can respond to changing
customer and organisational needs to support the organisation and its customers around the
world.

Questions

1. What is a traditional structure for an international organisation? How might Vision’s

structure differ from a traditional international structure?
2. If you were the IT manager in Melbourne, what non-technical training or
development might help you manage your workplace challenges?
3. Perform SWOT analysis.
4. Not all international organisations have the technology of Vision. Speculate on the
impact of that technology as an enabler for Vision. How does an international
organisation without these technologies manage its globalised workforce? Vision is
on the leading edge of technology. What lower technology activities do other
organisations engage in?