17. February 2016
Source: The Economist
Employers are modifying, not abolishing them
IN RECENT months the business press has reverberated with cheers for the end of performance reviews. “Performance reviews are getting sacked,” crows the BBC. They “will soon be over for all of us”, rejoices the Financial Times. Such celebration is hardly surprising. Kevin Murphy, a performance-review guru at Colorado State University, sums up the general feeling about them: an “expensive and complex way of making people unhappy”. The problem is, they are not in fact being scrapped.
A survey in 2013 by Mercer, a consulting firm, of 1,000 employers in more than 50 countries reported that 94% of them undertook formal reviews of workers’ performance each year and 95% set individual goals for employees; 89% calculated an overall score for each worker and linked pay to these ratings. It is true that a number of big companies have announced that they are abandoning annual performance reviews; this month IBM did so, joining Accenture, Adobe, Deloitte, GE, Microsoft and Netflix. In reality, though, they are no more getting rid of performance reviews than a person who shifts from drinking whisky to wine is becoming teetotal. Employee reviews are being modified, not abolished, and not necessarily for the better. Read the rest of this entry »
1. May 2012
General Electric’s first research laboratory was housed in a barn in upstate New York; its newest is going up in Silicon Valley. In a vivid illustration of how the locus of U.S. innovation has shifted from the East to the West Coast, GE is pouring $1 billion into a facility in San Ramon, Calif., that will be staffed with as many as 400 people.
New hires for the Global Software Center, which is set to open in June, are coming from Oracle, SAP, and Symantec. Bill Ruh, the vice president running the venture, was lured away from Cisco Systems last year. The tech industry veteran says persuading developers to forgo windfalls from initial public offerings to come work at an industrial stalwart is not as difficult as one might think. “They want to be in on the Next Big Thing,” he says.
The big thing Ruh is referring to is called “big data,” the fast-growing market for information technology systems that can sift through massive amounts of data to help companies make better decisions. Just as information on millions of Facebook users is prized by advertisers, the details companies amass from their operations can be used to cut costs and boost profits. Norfolk Southern, which buys diesel locomotives from the Fairfield (Conn.) company, uses customized software to monitor rail traffic, reducing congestion and allowing trains to move at higher speeds. The fourth-largest U.S. railroad estimates that making trains run an average of 1 mile per hour faster will save more than $200 million. Read the rest of this entry »
24. August 2009
aus der aktuellen Business Week über die Zukunft der “Reset Economy”:
Maria Bartiromo talks to the consulting firm chairman about rethinking outsourcing
By Maria Bartiromo
Whether we are truly emerging from recession—as a Wall Street Journal survey of economists and other reports contend—or are setting ourselves up for another reversal, one thing seems clear: When the global economy awakes from its long nightmare, there will be “a new normal.” In short, it won’t be business as usual. To get a sense of the changes afoot, I talked with Paul Laudicina, chairman of the worldwide consulting firm A.T. Kearney and an expert in business strategy.
What kinds of changes—for both countries and companies—do you see coming out of all this turmoil? Read the rest of this entry »
24. August 2009
“This economic crisis doesn’t represent a cycle. It represents a reset,” Jeff Immelt, the CEO of General Electric, said today. “It’s an emotional, social, economic reset.”
And the biggest impact of this “reset” will be greater government involvement in the economy, and in the affairs of business, for better or worse.
“People who understand that will prosper,” Immelt said. “Those who don’t will be left behind.” Read the rest of this entry »