SAS (Statistical Analysis Software) Institute, with a track-record of being the largest private Software firm raises many an eyebrow on its ability to stay a cut above the rest especially considering the fact that thriving in a highly competitive industry such as software development is no trivial accomplishment. With a sprawling 200 acre campus that reminds one of a picnic retreat, an extensive customer base unparalleled reputation and many accolades to its credit, SAS has distinctively carved a niche for itself. A study of its management practices and philosophy led to the revelation of several interesting facts contributing to its success.
Jim Goodnight, the founder of SAS Institute has steered the development process toward a customer focussed one and this has been attributed as a key factor in the success. He has been known to reiterate on listening to customers and giving them the software they want. The Company has an annual ballot surveying the preferences of the customers which are tabulated and considered during implementation of new features. Customer feedbacks from user group conferences also play a vital role in determining the product development process. The Company has an active publications program in which it publishes the work of non-SAS employees again breaking the industry norms. Its approach in selling is again unique. As opposed to other companies which would resort to selling a software product and then selling upgrades on a regular basis, SAS offers a trial period, and then with the annual license offers free upgrades. The level of integration and the range of product line is a huge contributing factor.
The Company spends 30% of its revenue on Research and Development in sharp contrast to the industry average of 15% SAS is knowledge-based business with the constant need to evolve keeping with the current trends and therefore acquiring and retaining talent is essential.
The principles of management are simple yet outstanding. The first principle is to treat everone fairly and equally. The company maintains an egalitarian approach. Every employee has a private office as the company believes that when its employees are taken care of, the company is taken care of. The second principle is based on intrinsic motivation and focussing on coaching and mentoring rather than controlling and monitoring. The third principle is to think long-term. The fourth principle is based on bottom-up decision making. There are no specific growth goals.
SAS has an enviable reputation of being a great place to work leverages its recruiting efforts.The huge number of applicants when a job is posted speaks for itself.
The work culture is based on co-operation, teamwork and mutual respect. There is emphasis on internal promotion and employee referral. Although stock options are not offered, bonuses are offered based on the reports from managers. The general philosophy is to deemphasize financial incentives as a source of motivation. Commission culture is considered high pressure and do not contribute to long-term relationships. The Company encourages collective orientation rather than competition. The sales team is customer driven and not focussed on short-term results.
The Company offers generous employee benefits and a comfortable work environment giving the employees a sense of belonging. Employees have a 35 hour week, a 7,500 medical facility, child care, gym just to mention a few. The company also sells plots at subsidised rates for employees. The Company is firm on doing everything inhouse and follows the policy “if you want something done right, own it and control it. Outsourcing is not resorted unless circumstances are unavoidable. Most of the technical training is also done in-house. The Organizational structure is impressive in the sense, for a company this vast, there are only 4 levels. The Company has an open door policy and communication normally is at one level below the CEO. Performance is considered a relationship not an infrastructure. There is a lot of movement within the company and employees are free to move to different department that suit their skills and expertise.
In an industry where the growing trend is to outsource to reduce costs, SAS stands out in the fact there is little or no outsourcing. It also varies in the fact that incentives and stock options are not encouraged.
Jim Goodnight, the founder of SAS Institute has steered the development process toward a customer focussed one and this has been attributed as a key factor in the success. He has been known to reiterate on listening to customers and giving them the software they want. The Company has an annual ballot surveying the preferences of the customers which are tabulated and considered during implementation of new features. Customer feedbacks from user group conferences also play a vital role in determining the product development process. The Company has an active publications program in which it publishes the work of non-SAS employees again breaking the industry norms. Its approach in selling is again unique. As opposed to other companies which would resort to selling a software product and then selling upgrades on a regular basis, SAS offers a trial period, and then with the annual license offers free upgrades. The level of integration and the range of product line is a huge contributing factor.
The Company spends 30% of its revenue on Research and Development in sharp contrast to the industry average of 15% SAS is knowledge-based business with the constant need to evolve keeping with the current trends and therefore acquiring and retaining talent is essential.
The principles of management are simple yet outstanding. The first principle is to treat everone fairly and equally. The company maintains an egalitarian approach. Every employee has a private office as the company believes that when its employees are taken care of, the company is taken care of. The second principle is based on intrinsic motivation and focussing on coaching and mentoring rather than controlling and monitoring. The third principle is to think long-term. The fourth principle is based on bottom-up decision making. There are no specific growth goals.
SAS has an enviable reputation of being a great place to work leverages its recruiting efforts.The huge number of applicants when a job is posted speaks for itself.
The work culture is based on co-operation, teamwork and mutual respect. There is emphasis on internal promotion and employee referral. Although stock options are not offered, bonuses are offered based on the reports from managers. The general philosophy is to deemphasize financial incentives as a source of motivation. Commission culture is considered high pressure and do not contribute to long-term relationships. The Company encourages collective orientation rather than competition. The sales team is customer driven and not focussed on short-term results.
The Company offers generous employee benefits and a comfortable work environment giving the employees a sense of belonging. Employees have a 35 hour week, a 7,500 medical facility, child care, gym just to mention a few. The company also sells plots at subsidised rates for employees. The Company is firm on doing everything inhouse and follows the policy “if you want something done right, own it and control it. Outsourcing is not resorted unless circumstances are unavoidable. Most of the technical training is also done in-house. The Organizational structure is impressive in the sense, for a company this vast, there are only 4 levels. The Company has an open door policy and communication normally is at one level below the CEO. Performance is considered a relationship not an infrastructure. There is a lot of movement within the company and employees are free to move to different department that suit their skills and expertise.
In an industry where the growing trend is to outsource to reduce costs, SAS stands out in the fact there is little or no outsourcing. It also varies in the fact that incentives and stock options are not encouraged.
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this post is out of order!!
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