Sun Microsystems

Shared services and the reengineering process

Summary

Sun Microsystems has redesigned HR according to a four-quadrant model, of which shared services is an intrinsic element.

In this case study senior HR leaders Paul Harrison, Les Gill, Britt Sellin, Mike Boockholdt and Jeannene Michel explain that for Sun Microsystems shared services means more than just a transactional operation. They also describe how the evolving global shared services model builds on the organization's hugely successful US-based SunDial operation.

Introduction

Headquartered in Santa Clara, California, Sun Microsystems creates products and services for network computers based on several core technologies such as Solaris operating environment, and Java programming language. Reporting revenues of $12.5 billion for the fiscal year 2001-2002, the corporation has about 35,500 employees in 50 countries. The largest concentration, about 22,000, is in the US, which accounts for about 46 per cent of Sun's sales.

Despite a history of impressive growth and performance (for example it reported net income of $927 million for 2000-2001) for the fiscal year 2001-2002 a net income loss of $628 million was filed. This was a result of a downtown in the economy, the dot.com collapse and other external influences. Consequently a major retrenching and restructuring has taken place that has led to a nine per cent employee downsizing.

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