Lucent Technologies inFrance
Best in France Case Study
April 2004 - July 2004
By: Ms Cheong, Mr Coulom, Mr Girma, Mr Moreno, Mr Remmele
Executive Overview
•What's your business?
•Company productsand clients
•Do company values fitthe French culture?
•Constraints in France
•Adaptation to France
•Key Constraint Costs
•Key Benefit Numbers
•Essential Advice
Lucent Technologies
•Acquisition of TRT (France) fromPhilips in 1996
•Telco equipment Supplier
•World Sales 8.5 B$
•European Market 500 M$
Company products
•No Production in France
•Production Outsourcing:Factory sold to Flextronics
•2004 trend to outsource R&D
Company's clients
•“Top 50 operators”
•Local Support
•Sensitivity to technical localsupport: example of the DSLexpertise center with FranceTelecom
Why it came to France
•France, Alcatel
•Germany, Siemens
•Local Confrontation in theirhome market with directcompetitors
Company values
•Creative Force/Produce growth
•Awesome execution
•Unmatched customer value
•Winning environment/WinningTeam
Constraints in France
•No constraints
•Existing Structure
•Social habits different from the US
•Adaptation for international teams leadby non-French managers
•Lower Adaptability/Flexibility, projectsmoved to Germany/Netherlands
Adaptation to France
•What kinds of adaptations did/is the companymaking to its people management systems?
–Recruitment/Selection
–Compensation
–Management Development
–Performance Appraisal
–Motivation
–Job Design, Job Assignment
–Communication Policies
–International Transfers, Use of Expatriates
–Training
–etc.
Key Constraint Costs
•What are the key costs to coming toFrance that are more or less thanoperating in other locations?
–Any or all HR type costs (hiring, paying,training, dismissing, etc.)
–Other organisation structure costs (realestate, travel, taxes, "culturalconsultants," etc.)
–Communication constraints (language)
–Integration of French managers intoglobal organization
Key Benefit Numbers
•What are the key benefits of being inFrance?
–Revenue/profit (revenue/profit per Frenchemployee)
–Location benefits (transport, time zone, qualityof life, employee satisfaction with France)
–Government assistance
–Market Potential (product penetration or growthpotential, customer demands for culturaladaptation of product(s), launch platform forother European countries, etc.)
Essential Advice
•What advice do you offer to othercompanies in this sector concerninguse of France as a location?
–Real International Culture
–Local Partners
–Hiring the right Person
–Flexibility with the local legalconstraints
We Thank
•Manager 1: Virgine Robichon,HR Account Manager
•Manager 2: Marc Thivet, FranceTelecom General AccountManager
•Manager 3: Michel Muzy, CFO,Customer Group Central
Our Team
•Sze-Pei Cheong
•Vincent Coulom
•Eric Girma
•Christiano Moreno
•Claus Remmele