This case study is about free scale Semiconductor Company who deals in computer chips in Austin Texas. It has over 24,000 employees in 30 countries.
It starts by quoting Allan Mulalley the CEO of Ford who use to say “data will set you free” at the start of meetings and also “ you can’t manage a secret” In order to change the culture of Ford where little information is shared among others to one based on increased accountability, more information sharing and hard metrics. This strategy has somewhat helped Ford manage recession of his employees in a better way than its competitors.
Now coming towards the Free Scale Company their main concern is the retention of their employees because the director of the company Jignasha Patel believes in the importance of tenured employees and the skills and experience they have. He says “when you have got a tenured employee that decides to walk out the door it’s not just one person leaving it’s that person’s knowledge and network and skills”
To manage the talent so that they have the right people at the right time and at the right place and to prevent turnover free scale extensively rely on “an elaborate set of metrics” designed by the company and the line managers are accountable for recruiting, hiring, and retaining employees.
They work by reconciling their talents with projected availabilities. Patel provides census data to the line manages that help them make their projections, but at the end of the day the responsibility is theirs. He also provides them benchmarks data which include the number of people hired, turnovers, promotions so that they can compare their effectiveness with that of other units. Patel believes that “there is a return on investment for everything we do”
Question 1- why do you think free-scale focuses on metrics? Why don’t more organizations follow this approach?
Answer 1- Free scale is a large organization with 24,000 employees over 30 different countries so in order to