Wednesday, January 9, 2008

TI's Technical Ladder

I was reading about Texus Instrument's Technical Ladder recently from Economics Times. I think this is a fantastic idea! At least in isolation! Here's the excerpt from it:

What is the technical ladder? TI first started the technical
ladder in the 1970s to recognise the contribution of its top employees to the
company's bottom line. Although promotions in the company are decided on the
basis of job grades, those on the technical ladder get recognition and are
chosen for more challenging assignments. The selection process is tough. At any
given time, no more than 22% of TI employees can be a part of the technical
ladder. A technical ladder has six steps and the progression
moves from a member to senior member, distinguished member, fellow and then
finally senior fellow of the technical staff. Only 1% of TI employees are chosen
as fellows. Along with the rungs come corresponding status and responsibility.
AfFellow on the technical ladder is the equivalent of a vice
president running a business unit worth $500 million to $1.5 billion. A senior
member of the technical ladder wields enormous influence. For example, Mahesh
Mehendale, the only fellow from TI India, is one of the few people who is
involved in deciding the strategic road map of the new products to come from TI.
Selection process The Technical Ladder measures the level of
innovation and differentiation that the engineer brings to the company. “The
distinguishing feature of this tool is that it is not decided by the management,
but is a peer evaluation process,” says Subramanyam. So, only senior members of
the technical staff can select another senior member and so on.
The technical leadership selection depends on the following
three criteria: 1) Innovation in products leading to business impact, 2) how the
person helps to grow the technical pool in their team, whether they have
mentored and helped others grow technically and, 3) how the person has
contributed to enhancing TI's image in external environment like industry and
forums. It is not a measure of how good an engineer is technically but how much
value he or she creates for the company. So, while publishing papers and patents
are important criteria for selection, a bigger criterion is the impact of the
technology created by the engineer on the business. For instance, if a chip
designer reduces the area of a chip by 10% or if a CAD application developer can
reduce the cycle time for simulation from two days to four hours, he earns the
right to be on the ladder. TI does not start the process of
identifying its technical scholars till they have finished at least 5-6 years in
the organisation. This way the company makes sure that the young recruits have a
variety of experience to choose from. It is also not a
one-time measure of a person's contribution, every year the person's status is
re-evaluated. If a person cannot devote at least 50% of his time to technical
matters then he excuses himself from the ladder and goes to a managerial role.
He then has two years to meet the selection criteria to get reinstated on the
ladder. TI allows people to move between the managerial role
and the technical role. The finest example of a person who has managed both the
two streams is TI India managing director Biswadip Mitra, who started his career
as a technical contributor and now heads TI's operations in India.


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