Discuss the leadership transition at SAP and succession planning.

Principles & Practice of management

 Discuss the leadership transition at SAP and succession planning.

Case Studies
Case Study (20 Marks)
MAM (Meetings, Agenda, and Minutes) is the hallmark of all business activity. The objective of all businesses is growth and success. In order to achieve success and projected growth, the organization should have a vision, translate the vision into an objective, accord a proper direction to achieve the objective, generate ideas, and decide on a course of action, decide the budgets, get proper approvals, and above all, translate all the oral or verbal transactions into recorded documents. Meetings are the simplest means of bringing together people in the organization and discussing the situation or the problem at hand. Meetings have to be conducted in an orderly manner to meet the stated objective and ensure that the team spirit is sustained. They have to be conducted within a fixed time frame. Disorderly meetings result in a lot of time being wasted. Apart from that, the participants come out of it with a lot of dissatisfaction and dissonance.
Answer the following question.
 
Q1. Discuss the MAM (Meetings, Agenda, Minutes) and its importance.
 
Q2. What are the procedures and protocols for formal business meetings?
 
Q3. Prepare the agenda for a sales conference/ product launch, assuming the various relevant points
 
Q4. Prepare the minutes of meeting held on a sales conference/ product launch showing resolutions.
Case Study (20 Marks)
ICICI OneSource (IOS), set up in December 2001, became India’s leading third-party BPO company, offering services to consumer industries in financial services, retail, telecom, media and utilities. This caselet highlights the initiatives taken by ICICI OneSource to attain BS7999 certification and COPC certification, which are well-known ratings for security and service standards. This also discusses the employee focus of the company by means of its recruitment, training and promotion programs. ICICI OneSource (IOS) set up in December 2001, became India’s leading third-party BPO companies, offering services to consumer industries in financial services, retail, telecom, media and utilities. Its global delivery standards resulted in multiple long-standing client relationships with FTSE 100 and Fortune 500 companies and have made it a clear leader among Indian BPO companies catering to the UK market. IOS with a commitment to quality was the world’s first company to achieve COPC (Customer Operations Performance Center) -2000 CSP certification for back office processing and the first Indian BPO company to attain BS 7799 certification. The company had approximately 4000 employees in 2004, across five offshore delivery centers in Bangalore and Mumbai, and in-market teams in the US and UK.
Answer the following question.
 
Q1. Technology and process are core aspects of an outsourcing company. Explain how ICICI One Source (IOS) has imbibed quality in these aspects to achieve world- class service levels?
 
Q2. Quality in service is enhanced by investments in people. How has IOS leveraged human resources to improve their service capabilities qualitatively?
 

Discuss the leadership transition

Case Study (20 Marks)
The Past three years at VXM software Have been very good as the company grew well in terms of business and growth rate. It managed to get huge contracts for ten very large companies and is in the process of setting up its fourth office in Pune. Since its inception six years back, the company has come a long way and the founder CEO, Vijay Kamath, has embarked upon a massive expansion plan. He has planned to grow into international market and double their turnover within the next three years. As Vijay compared many options available to him for getting the required finance to support this expansion, he was impressed by the concept of loans by venture capitalist. He asked the chief financial officer, Suryakant, to get more information on the subject and discuss it with their advisor. Within fice months, the deal was finalised and the company received a loan of Rs. 20 crores to put in their expansion plans. In the coming year, the company rose up to double their employees and business grew by thirty five per cent. The Business from international market started coming in slowly but by the end of the year 1998, the business from this sector rose to almost double. Vijay, however, felt that the focus on increase in business has led to other problems like those of performance and quality. Back from meeting Vijay realized that the non-financial parameters such as employee, turnover, and customer retention should be developed and he must do something in this direction. With growing business, our focus has been on developing products and expansion strategies and we have done reasonable well but neglected the performance measurement since we don’t have single and objective tool to judge and evaluate our performance on non-financial parameters. Vijay personally felt that they should have system to guide internally to develop the customer, employee and our strengths to improve upon these areas. Hearing his views his HR Manager reminded of their model for assessing human assets with annual satisfaction survey and appraisal system. After many debates and discussions they decided to focus on the following relationships. a. Customers – Many issues related with this were how clients see the organization, their needs, reducing lead time and developing relationships. b. The strengths i.e. the competitive advantage the company has, their efforts in marketing ans product development. c. The finanacial perspective d. The perspective of learning, emphasis on training and development. Once the performance parameters were finalised, Vijay decided to seek an opinion from his advisors and a practicing consultant. “For an organization like yours, is important to have such a tool. The business today is more complex than it was some years back and financial measures are no more considered the only measurements of parameters. You need wider indicators that measure the critical factors that influence success”. Further suggested ESKEWED a readymade package to have such a tool. Which covers the tools. To ensure the whole process didn’t loose the momentum, he linked the phases of implementation with performance appraisal. Within an year, his employees turnover rose but the software developers were worst hit. Vijay himself felt that the system has not worked and they have to look for other options to resolve such parameters.
Answer the following question.
 
Q1. Why is Vijay Kamath facing these problems and not getting the expected result?
 
Q2. Could the external consultants have made it more successful? Justify your reply.
 
Case Study (20 Marks)
With the aim of preparing Leo Apotheker, a board member and Deputy Chief Executive, as the next CEO, Henning Kagermann, SAP’s executive board’s Chairman and Chief Executive Officer (CEO), requested the supervisory board to appoint Leo as co-CEO. In the past, the same pattern of leadership transition was adopted by SAP for grooming successors at SAP. Leo would work with Henning as co-CEO at SAP for a year before taking over as sole CEO of the company. Henning’s contract with SAP expires in May 2009. Moreover, SAP had invested heavily to create trendsetting innovations in the areas of service-oriented architecture (SOA), new solutions and business models for the mid-market, but it faced challenges from its nearest competitors like Oracle, which is moving fast ahead in SOA. For executing its strategy, SAP was looking forward to Leo, who was different from the previous bosses of SAP as he was neither a member of the founder’s generation nor a geek. Leo had a strong sales background. The case facilitates discussion on the leadership transition at SAP and Leo’s ability to rise to the occasion.
Answer the following question.
 
Q1. Discuss the leadership transition at SAP and succession planning.
 
Q2. Explain the cultural changes in the organization & opportunities for business growth.
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