Sas Case Study
CASE STUDY
THE SAS INSTITUTE
Succeeding with old-fashioned values in a new industry 1 (revised September 2010)
Adapted by CH Besseyre des Horts from C.A. O'Reilly III & J. Pfeffer (2000) : Hidden Value, how great companies achieve extraordinary results with ordinary people, Harvard Business School Press, pp. 99-117. 1
1
CASE STUDY
THE SAS INSTITUTE : Succeeding with old-fashioned values in a new industry TREATING PEOPLE DIFFERENTLY (and better) than they expect to be treated, and differently than other companies in the industry treat them, is not something that only works in retailing. Even in the world of high technology and software development, there is a case to be made for being different. And few companies in this industry are as different as the one described in this chapter : SAS Institute that was ranked in 2010 the #1 Best Company to Work For in the USA 2 , # 10 in India 3 and among the 25 Top Employers in China 4 . SAS Institute, the largest privately owned software company in the world, is an anachronism. "In an era of relentless pressure, this place is an oasis of calm. In an age of frantic competition, this place is methodical and clearheaded. In a world of free agency, signing bonuses, and stock options, this is a place where loyalty matters more than money." In a world of outsourcing and contracting out, SAS Institute outsources and contracts out almost nothing. Day care workers, onsite health professionals, food service workers, and even most security guards are all SAS Institute employees. In an era of managed care, SAS offers a full indemnity health plan with low deductibles. In almost every respect, SAS Institute seems like a throwback to an earlier era, to a time when there were long-term attachments between companies and their people, and large, progressive organizations such as Eastman Kodak, S. C. Johnson, and Sears offered generous, inclusive benefits in an effort to enhance the welfare of their workforce. Not all observers
THE SAS INSTITUTE
Succeeding with old-fashioned values in a new industry 1 (revised September 2010)
Adapted by CH Besseyre des Horts from C.A. O'Reilly III & J. Pfeffer (2000) : Hidden Value, how great companies achieve extraordinary results with ordinary people, Harvard Business School Press, pp. 99-117. 1
1
CASE STUDY
THE SAS INSTITUTE : Succeeding with old-fashioned values in a new industry TREATING PEOPLE DIFFERENTLY (and better) than they expect to be treated, and differently than other companies in the industry treat them, is not something that only works in retailing. Even in the world of high technology and software development, there is a case to be made for being different. And few companies in this industry are as different as the one described in this chapter : SAS Institute that was ranked in 2010 the #1 Best Company to Work For in the USA 2 , # 10 in India 3 and among the 25 Top Employers in China 4 . SAS Institute, the largest privately owned software company in the world, is an anachronism. "In an era of relentless pressure, this place is an oasis of calm. In an age of frantic competition, this place is methodical and clearheaded. In a world of free agency, signing bonuses, and stock options, this is a place where loyalty matters more than money." In a world of outsourcing and contracting out, SAS Institute outsources and contracts out almost nothing. Day care workers, onsite health professionals, food service workers, and even most security guards are all SAS Institute employees. In an era of managed care, SAS offers a full indemnity health plan with low deductibles. In almost every respect, SAS Institute seems like a throwback to an earlier era, to a time when there were long-term attachments between companies and their people, and large, progressive organizations such as Eastman Kodak, S. C. Johnson, and Sears offered generous, inclusive benefits in an effort to enhance the welfare of their workforce. Not all observers