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Off from a running start When Robert Metcalfe invented Ethernet in the famed Xerox research lab in the 1970s, he was a little ahead of his time. Metcalfe, who later co-founded 3Com, had developed a powerful networking tool that would in 15 years become the industry standard for connecting personal computers. But in 1979 (the year of 3Com's founding), few people had heard of PCs, and the market for PC networking was miniscule. When IBM came out with its first widely-popular PC in 1982 however, 3Com saw sales take off. The company went public in 1984. Out to prove its mettle When 3Com announced its acquisition of U.S. Robotics in 1997 in a $7.3 billion deal, analysts everywhere described the move as "bold," "dramatic," and "daring." They did not, however, speak in consensus on the wisdom of the move. After the merger was announced, a series of complicated negotiations and inventory problems drove 3Com's stock price down considerably. More problems integrating U.S. Robotics led to shrinking profits and layoffs. But 3Com believes that U.S. Robotics' brand name is extremely important to small businesses and customers looking for a familiar company to handle their networking and Internet services. To help build its own brand, until the 2000 baseball season, 3Com lent its name to Candlestick Park in San Francisco. Look ma, no wires In 1999, the company pushed into the wireless realm, spurred by its $17.4 million purchase of Smartcode Technologie, a French wireless technology company. As part of its wireless initiative, 3Com announced a new LAN (Local Area Network) system, AirConnect, which can support 63 wireless-equipped PCs up to 200 feet away. 3Com also announced the Palm VII, which features its new Palm.Net wireless communication service. And in August of that year, 3Com agreed to a licensing deal with IBM expected to generate $1 billion in sales. Spinning wheel? Once famous for making the nuts and bolts of telecommunications networking, and then celebrated as the maker of the enormously popular Palm Pilot handheld data organizer, 3Com began the new millennium by radically reinventing itself. Having spun off its Palm Pilot division and dropped its modem business (which included U.S. Robotics) early in 2000, the company decided to move away from the production of switches, hubs, remote access concentrators, routers, and network management software, the building blocks of modern telecommunications networks. Tough competition from Lucent, Nortel, and Cisco had forced 3Com into the new field of technology development for businesses. But not everyone has welcomed these changes. Many 3Com partners are concerned about future support and upgrades of their high-end networks now that 3Com has stopped producing them. Moreover, the massive restructuring is expected to cost 2,000 employees their jobs, although 3Com has promised to help most of them transfer to other companies. A new focus 3Com plans to target consumers, small- to mid-sized companies, and network service providers with IP telephony products, wireless, broadband, and high-capacity Ethernet applications and devices. To accomplish that goal, 3Com signed a deal with network equipment designer Accton Technology Corp and Singapore's NatSteel Electronics Ltd. that calls for the three companies to form a new, Chicago-based enterprise that will design and sell Internet access products. 3Com plans to sell its modem business to the new company. When the smoke clears, analysts expect 3Com's annual sales to be around $3 billion, roughly half what they were in 1998. The company hopes that its transition will ultimately make it more efficient, with total company growth in excess of 20 percent and operating returns of more than 14 percent.
The interview process with 3Com usually involves several rounds, with interviewing by both managers and potential colleagues. Although one insider tells Vault.com that "some managers like to use brainteasers or riddles," this practice seems uncommon. Be ready for technical questions, though, even if you're not an engineer. "As a technology company we are very concerned with having people who are technology literate even in non-technology positions," says one manager. "That does not mean that an individual needs to have a strong technical background, simply technology and possibly industry awareness." "3Com really likes engineers," says one former marketing MBA intern. "Know your technical stuff before interviewing." And, says one product manager, "learn about the product before you interview. A little knowledge goes a long way." That manager, an MBA, suggests reading the book How Networks Work by Frank Derfler (Ziff Davis, 1996). Insiders also stress that when it comes to personal traits, the company values teamwork highly. "There are two aspects they look at: how you deal with yourself (motivation and enthusiasm) and your interpersonal skills (working in a group)," says one. "Be sure to have examples of each, especially the working in a group part. The big companies usually look for team players." Employees tell us that 3Com is good about making employment decisions soon - interviewees usually hear in a week or so.
The 4th Com - Communal Many employees Vault.com surveyed note that 3Com's company culture is difficult to define in large part because it has grown through acquisitions, not organically. "The acquired company is turned into a division and tends to keep their pre-acquisition culture," explains one employee. One thing seems certain, however - 3Com's work environment is marked by communication and teamwork. "3Com has tried to minimize the class divisions of more traditional companies. Everyone in the company, including the VPs and the CEO, have cubicles," says one employee. "They want to reinforce an open-door policy for all employees. Understandably, the executives' cubicles are larger, but still without a door." Says another, echoing the company's name origins: "Open communication is a very important part of our culture." Welcome to the jungle The absence of hierarchy which one employee describes as "fraternalistic rather than paternalistic," does have its drawbacks: "You need to fend for yourself, but you will be supported in what you are trying to do, rather than having your manager responsible for steering your career," says one employee. "It is a hard-driving place, so anyone coming here should be ready to hit the ground running, and running hard and fast," says another insider. Former U.S. Robotics employees describe much the same situation: "U.S. Robotics became big in a short time and hence the environment here is one of go-getters with less bureaucracy but that also means a bit less organized." Hiring for keeps Still, employees seem very satisfied. Says one employee, who has stayed with 3Com for more than a decade, about his tenure, "This [length of employment] is somewhat unheard of for high tech but 3Com is a company that works hard to retain its employees." Part of the reason employees may stay is that they get to spend a lot of time away from the company. Every four years, 3Com employees get an extra one month paid "sabbatical" which employees say is "mandated." This is in addition to an already whopping 28 days of paid vacation for starting employees. Also, there is a "company wide shutdown between Christmas and New Year's." To encourage employees to take time off, 3Com "doesn't let employees accrue more than 120 hours. If you earn more you lose it because you don't take what you've got." Although many employees report working nine- to 10-hour days, and some complain about long hours, others remark that "unlike the unwritten rule at many high-tech companies who really want 50 to 60+ each week, you work hard while you're here and then go home or go play. You're expected to work 40 hours a week." The compound that never sleeps And it's not as if life at the Santa Clara 3Com campus, located next to the San Francisco Bay is particularly austere. "We have a 24-hour, 7-day-a-week, 365-days-a year on-site gym with aerobics classes, stationary and free weights, treadmills, bikes, stairmasters, and locker rooms for $20 a month," reports one health enthusiast. The gym features also include a sauna and a massage service, employees say. "There is also a cafe, a cafeteria, movie rentals, dry cleaners service, a Starbucks coffee shop, commuter shuttles, and a car wash service," according to another employee. Also, "you get to purchase personal use 3Com products for a discounted price, including modems, Palm pilots, and various plug-in cards for PCs." Monetary perks include a "3reward" system that offers cash bonuses for outstanding performance, a stock purchase plan that lets employees buy company shares at a 15 percent discount (10 percent of one's gross pay can be set aside for this plan). And, all employees are offered stock options upon their hiring.
Eileen Nelson Human Resources
Network Interface cards;High function switches;Boundary switches;Internetworking platforms;Stackable networking systems;Multi-function switching hubs;Network management;Palm Connected Organizers;Remote access platforms More Company Profiles For more career information, go to Vault.com ©2000, Vault.com Inc
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