ABC Software Pursuing A People First Strategy Scribd

ABC Software pursued a people-first strategy that has led to great success. The company attributes much of its growth from $189 million to being acquired for $1 billion to prioritizing employees. The CEO cites three guiding principles: make it a great place to work, give employees ownership from entry-level positions, and help people grow professionally and individually. Great Plains facilitates this culture through a flat structure, perks like stock options and on-site childcare, and extensive training programs to develop leadership skills. This people-first approach has kept employee turnover extremely low at 5% compared to the 18-25% average in the information technology industry.

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ABC Software Pursuing A People First Strategy Scribd

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dioune

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Case Exercise

ABC Software: Pursuing a People first Strategy

ABC software is a success strory. Begun in 1983, today it employs 2,500 people, generates $189
million, and was recently bought by another software giant for $1 billion. Management attributes
much of it success to the companys people first strategy. The companys CEO, says that the
companys growth and success can be attributed to thrree guding principles. First, make the
company such a great place to work that people not only wont want to leave, theyll knock down
the door to get in. Second, give employees owenership at entry level. And third, let people grow-
as professionals and as individuals. What does Great plains do to facilitate its people first culture?
Managers point to the companys structure, perks, and commitments to helping employees
develop their skills and leadership. Great plains has a flat organization structure with a minimal
degree of heirerarchy. Work is done mostly in teams, and there are no traditional status
accouterments such as executive parking spaces or corner office suites. Perks include stock
options for evryone, casual dress standards, and on-site child-care center, and daily
extracurricular classes in everything from aerobics to personal finance. But management is proud
of its commitment to the development of its people. The company offers a long list of training and
educational opportunities to its employees. These are run on site and designed to help employees
build their skill level. Great Plains premeir training program is called Leadership is everywhere. Its
designed to ensure that the company will have people who can assume new leadership roles in a
continuously changing enviornment. The company reinforces class training by placing its works in
departmental teams. At the helm of these teams are team leaders whose job is to help foster
their charges ideas and projects. They are also expected to provide one-on-one job coaching and
career planning advice. Nearly all Great Plains employees are given then opportunity to become
team leaders.

The CEO has more than just increased revenues to support his belief that his people-first strategy
works. It has also succeeded in keeping employees contented. Turnover for instance, is a
minuscle 5 percent a year-far below the information-technology average of 18 to 25 percent.