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    The concept of revenue-generating vs. non-revenue-generating at most
    levels is a false deliniation. It assumes you can draw a hard
    line, from top to bottom in the company, between those of us who are
    directly responsibile for encouraging customers to give us money, and
    those of us who are not. It induces corporate micromanagement.
    
    Value-added and non-value-added (or perhaps value-added and
    value-subtracted) is a much more useful concept, because it can be
    applied to every business, functional group, cost center, team and
    individual in the company. The key is that you have to be willing to
    delegate the responsibility of making value-added judgements to the
    appropriate level of control.
    
    Stand-by pay is a case in point for the diference between these
    concepts. Recently, a high-level corporate decision was made to change
    the stand-by pay policy, to the effect that people who are directly
    supporting customers receive stand-by pay, while people who are
    supporting internal folks do not. This was a deliniation drawn at the
    corporate level based on revenue generation, and does not reflect any
    judgement of value added. There is no doubt in my mind that having
    people available on demand to customers encourages those customers to
    give DEC more money. But what about the people who used to be available
    on demand to fix network or node problems and thus help speed the
    development and delivery or a product to the market? Does timely
    delivery of products not also encourage customers to give DEC more
    money? And how can the corporate decision makers determine the relative
    value added in these two instances?
    
    My understanding of the New DEC is that business units will sell
    products to customers, and contract engineering groups to build the
    products that they deem sellable. Does that mean that the business
    units are revenue-generating, and the engineering units are
    non-revenue-generating? Does that mean that people in business units
    will be eligible standby-pay, second phone lines to their homes, and
    pencils and Post-Its, and engineering units will not?
    
    In a value-added model, the corporation can decide which business units
    bring in more revenue, and support those business units. Business units
    can decide which products will add more value to their portfolios, and
    contract engineering groups to build those products. An engineering group
    can decide what services it needs to build a product, and contract with
    appropriate service groups. A network service group can decide whether it
    is more useful to use stand-by pay or additiona shifts or other incentives
    to provide the services required by its contract.
    
    I know this is going to sound like heresy, but it is not the ultimate
    responsibility of everyone in this company to generate revenue. The
    business units and up-front sales folks generate reveuue; that is their
    ultimate responsibility, and their value-added work should revolve around
    how best to generate that revenue. The ultimate responsibility of
    everyone else in DEC it to support the front-line revenue generators,
    or the next group up in their particular location in the supply line to
    the front-line revenue generators; their value-added work should be
    tightly focused on meeting the requirements of the next group up the
    line. Forcing revenue-generating deliniations too far down in this
    model (ie, below the first level) tends to remove some of the options and
    resources but none of the responsibilities.
    
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|  |  >>>The concept of revenue-generating vs. non-revenue-generating at most
 >>>levels is a false deliniation. It assumes you can draw a hard
 >>>line, from top to bottom in the company, between those of us who are
 >>>directly responsibile for encouraging customers to give us money, and
 >>>those of us who are not. It induces corporate micromanagement..
    
    Agree. Some interesting quotes come to mind from a hard-liner
    "if you don't touch the mail, your overhead". Apply that literally
    to a certain entity and see what happens.
    -Mike Z.
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|  | re: .2 
   
>    My understanding of the New DEC is that business units will sell
>    products to customers, and contract engineering groups to build the
>    products that they deem sellable. Does that mean that the business
>    units are revenue-generating, and the engineering units are
>    non-revenue-generating? Does that mean that people in business units
>    will be eligible standby-pay, second phone lines to their homes, and
>    pencils and Post-Its, and engineering units will not?
    
I think this will free up the engineering managers to do what they think 
best.  If spending money on post-its, WSs for home and phone lines help 
them generate "better" (earlier, higher quality, less expensive) products 
than they would be silly not to approve them.  I think that they will find 
another scape goat, however, as the real blocks are not the "corporate" 
penny pinchers, but the lack of effort on these issues by the very 
engineering managers that are complaining.  I see little effort in 
protecting the individual contributors by most engineering managers and 
consulting engineers.
Matt
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