This presentation proposed implementing Microsoft Lync to address communication problems following Anheuser-Busch InBev's merger. It identified issues like rigid structures, multiple platforms, and lost informal relationships. Social network analysis was discussed to map relationships and identify solutions. Microsoft Lync was introduced as a solution to improve communication through features like instant messaging, video calling, and collaboration tools. Potential benefits included increased productivity, innovation, and cost savings. Implementation costs were estimated along with projected financial benefits over three years. Testimonials from other companies highlighted benefits like increased efficiency and faster problem resolution times.
10. Problems
- Merger Conflicts
- Communication
- Informal Relationships
- Employee Satisfaction
- Lack of Mentorship
11. Management Conflict
Anheuser Busch Values: InBev Values:
• Brand • Increasing Profits
• All American Company • Global Leader
• Long Term Image • Cost Cutting
• Tradition • Production Efficiency
12. Transparency
Jackie Hamel
“…they are trying to be
more transparent. Not
easy with 120,000
employees.”
Jackie Hamel
“InBev sets targets which
are out of reach and asks
you to make them. We
perpetually have gaps we
can hit…”
13. Jeffrey Sonnenfeld
“Companies must take at least
as much time as they spend
with financial analysts and
spend it with their employees.
People care about where they
work. "
Anheuser-Busch Employee
“If you are young and have some
sort of degree, you will like the
campus like office with no
professors to teach and guide
you.”
15. Current Communication System
Lacks variety of
communication channels
Rigid structure of
communication
Multiple platforms and
software Collaborates with all
Microsoft office functions
One training program
company wide
One program serves all
16. Problem: Communication
-Rigid Structure
-Multiple Platforms
-Loss of informal
relationships
26. Case Study: Cisco
• $772mil return on $82mil
• Increased margins by $142 mil
Quantitative • Reduced costs by $251 mil
• Employee time savings: $380mil
• Increased remote collaboration
Qualitative • Better usage of employee skills
• Quicker access to knowledge
Source: Mckinsey/Cisco
36. Case Study: ABI
Relationship • 1,400 salaried workers fired
Map • 1000 employees took buyouts
• "They wasted no time," says Juli Niemann, executive
vice president of Smith, Moore & Co., a Clayton-based
Executive financial advisory firm. "They delivered exactly what
they promised. They demolished the executive suite."
• ABI 14-person executive committee
Management • Zero people from old AB
37.
38.
39. “ Lync is changing the way we
communicate today, but it will
change the way our business tools
work in the future.
”
40. “ The Skill Search feature in Lync
and SharePoint will be easy to
use. Employees can view presence
information and immediately
contact the person they are
searching for with one click
Source: Forrester/ATKearney
”
41. “ Problem resolution through IM
70% of time
Help desk call times down from 5
calls per issue to .3 calls
Lowered labor costs and showed
an 80% improvement in customer
response times
Source: Forrester/Global Crossing
42. Benefits Costs
*(Over 3 Years) *(Over 3 Years)
Replacing private telephone systems - $500,000* Software Licenses and Assurance Costs -
$1,200,000*
Direct Cost Savings from Web and Teleconferencing -
$1,000,000* Server Hardware -
<$60,000
Reduced IT and Telephony Labor -
$1,000,000
Voice Terminal Equipment -
$364,000
Fewer calls to the Help Desk -
$190,000
Internal Labor for Testing -
Increased User Productivity - $24,000
>$12,000,000*
Travel Costs and Carbon Footprint Reduction - Internal Training Labor Opportunity Cost -
$3,800,000 $1,300,000
43.
44. “ Managers spend 2 hours/day
looking for information
50% of the information found is of
no value
”
Source: Accenture
45. “ Respondents reported benefits
that included better access to
knowledge and internal experts,
greater employee and customer
satisfaction, and higher rates of
innovation.
”
Source: Mckinsey
46. “ The magnitude of the gains was
striking
20%=innovation rates
to
35% (access to internal experts).
”
Source: Mckinsey
49. Balanced Scorecard
Strategy Metric
Financial - Zero-Based Budgeting - Number and size of budget
- Cutting Costs requests per project.
- COGS as a % of revenue
targets.
Customer - Customer Retention Program - % increase in sales by
- Brand Equity distributor.
- % market share.
Internal - Voyager Plant Optimization - Comparison of cycle time
- Implementation of Microsoft Lync and capacity utilization by
Process
facility.
- Degree of separation
Learning - Overseas Growth - % of revenue earned
- Prioritization of Focus Brands overseas by region.
and Growth
- % of marketing dollars
spent on key brands
(Budweiser, Stella Artois,
Becks)
50. Presentation Summary
• Company Overview
* • Company Tour
• Introduced problem
*
•Discussed Social Network Analysis
* •Introduced Microsoft Lync
52. Costs Initial Year 1 Year 2 Year 3 TOTAL
Software licenses and assurance $677,695 $169,424 $169,424 $169,424 $1,185,967
Hardware and Maintenance $56,000 $945 $945 $945 $58,853
Voice Terminal Equipment $364,000 $364,000
Pilot and Testing: Internal $24,000 $24,000
Labor
Implementation Costs: Third $90,000 $90,000
Party
Training Cost: Internal Labor $1,300,000 $1,300,000
TOTAL $2,511,695 $170,369 $170,369 $170,369 $3,022,802
53. Ref. Metric Calculation Year 1 Year 2 Year 3 Total
A No. of Workers 5000
B Hourly Rate $48.00
C Number of ~70 min per 1.17
Hours Saved Per week
Week
D Weeks 50
E Percent 50%
Captured
F Rollout of Lync 25% 50% 100%
Total Incremental A*B*C*D*E*F $1,700,000 $3,500,000 $7,000,000 $12,250,000
Output per
Worker
54. Testimonials:
•Nikon Corp.
-“With Lync, communication is much more efficient because people do not
have to switch programs to make a call or join a meeting.”
-- Michiko Noborisaka General Manager of Information System Planning
Department,
Nikon Corporation
•ATKearney
-“The Skill Search feature in Lync and SharePoint will be easy to use.
Employees can view presence information and immediately
-contact the person they are searching for with one click.” - Kevin Rice
Global Network Architect, A.T. Kearney
•Global Crossing
-Problem resolution through IM 70% of time
-Help desk call times down from 5 calls per issue to .3 calls
-Lowered labor costs and showed an 80% improvement in customer
response times
•Fortek
-Developed emergency response system
-Average response times down from 7 mins to < 2 mins