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SAS Presentation

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SAS Presentation

  1. 1. SAS INSTITUTE A DIFFERENT APPROACHTO INCENTIVES & PEOPLE 
 October 10, 2015
  2. 2. AGENDA • Who is SAS? • Company Background and Leadership • Organizational Structure & Design • Job Design and Selection • Employment Deal • Threats and Sustainability • Recommendations
  3. 3. WHO IS SAS? • Mission Statement: “SAS delivers proven solutions that drive innovation and improve performance.” • Values • Approachable • Customer-Driven Source: SAS Institute Website • Swift & Agile • Innovative • Trustworthy
  4. 4. BACKGROUND • SAS was developed in 1970 at North Carolina University • Company was founded in 1976 by Jim Goodnight and John Sall • 13,811 employees located in 140 countries • Reported $3.09 billion in revenue in 2014 Source: SAS Institute Website
  5. 5. LEADERSHIP Goodnight and some of his North Carolina State University colleagues created the software to analyze agricultural-research data Jim Goodnight Chief Executive Officer, SAS From the date of establishment in 1976, Sall designed, developed and documented many of the earliest analytical procedures while also leading research and development efforts John Sall Co-founder and Executive Vice President Source: SAS Institute Website
  6. 6. BUSINESS ENVIRONMENT • No single competitor • Competition in some segments of the business • Multiple goals • 25 product system
  7. 7. ORGANIZATION DESIGN • No organization chart • Hybrid • Flat • Informal
  8. 8. LEADERSHIP STRUCTURE
  9. 9. JOB DESIGN John Boling, a SAS employee, said this about the employees, “We assume that you have talent, creativity, and initiative. You have to be able to take that and run with it” (HBR). • Freedom to make choices - decentralized • Little supervision - working managers • Flexible to meet customer needs
  10. 10. COMPANY FIT: PROS • Business environment is uncertain • Software needs are always changing • Moving to the Internet/cloud-based • 1,000 employees doing development work • Large organization • 13,000+ employees • 140 offices around the world • 31,000 customer sites
  11. 11. COMPANY FIT: CONS • Limited interaction across departments • Less diverse ideas • Slower pace of development • Inefficiencies from duplicate efforts
  12. 12. TALENT SELECTION • A competitive labor market • No stock options • Lowest turnover rate in the industry • 28% of jobs filled by internal promotions • 23% jobs filled by referrals
  13. 13. EMPLOYMENT AT SAS • 4% turnover rate • Fortune’s 100 Best Companies to Work For • How does SAS keep employees coming back? Source: Case
  14. 14. EMPLOYEE “NEEDS” Source: Book
  15. 15. EMPLOYMENT “DEAL” • Work Environment • Company Culture • Competitive Compensation • Work/Life Balance • Benefits Source: SAS Institute Website
  16. 16. EMPLOYEE “NEEDS”VS “DEAL” • Physiological - Salary, physical work environment • Safety - Low turnover, medical and wellness benefits • Belongingness - Co-workers, managers, customers • Esteem - Hired, freedom, private office • Self-Actualization - Work/life balance, training, growth
  17. 17. STRENGTHS & LIMITATIONS • Family Friendly • Competitive Salary • Max employee profit sharing retirement • No Stock Options • Nepotism • Flat/informal Organization Strengths Limitations
  18. 18. OPEN SYSTEMS ANALYSIS Labor Markets: growing need for computer- literate workers Customers: Customer needs Sociocultural/Economical: general environment Technological: drive competition Task General
  19. 19. KEYSTO SUCCESS • Customer driven development process • Attraction and retention of talent • Inventory of skills and experiences
  20. 20. THE FUTURE:THREATS • Heavy investment in creative capital may not pay off • Limited talent in the industry • Lack of diversity impedes creativity • Maintaining competitive work environment • Individual offices hampers creativity
  21. 21. THE FUTURE: SUSTAINABILITY • Competitive benefits/work life balance • Focused on intrinsic motivation • Egalitarian management style • Substantial investment in employees
  22. 22. RECOMMENDATIONS • Restructure offices to create a more open environment • Implement a more frequent feedback/communication process • Provide a clearer promotion process to improve morale • Expand recruiting efforts • Open new development office to attract younger recruits
  23. 23. –Jim Goodnight, CEO “Treat employees like they make a difference and they will.”
  24. 24. ThankYou
  25. 25. REFERENCES • Daft, R. (2014). Management Eleventh Edition. South-Western, Cengage Learning. • Pfeffer, J. (1998). SAS Institute:A Different Approach To Incentives and People Management Practices in the Software Industry. Graduate School of Business Stanford University. • SAS Institute Website (2015). Retrieved 9/27/2015 from: http://www.sas.com/en_us/careers/life-at-sas.html • SAS Institute Website (2015). Retrieved 9/27/2015 from: https://www.sas.com/en_us/company-information.html#1966-1976 


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