משאבי אנוש בארגון גלובלי

Motorola Confidential Proprietary

March, 2002


HR Strategy Agenda

▲ Introduction

▲ HR Contributions to Speed Our Return to Financial Health

▲ HR - Transition and Orientation - Strategic Intent, Drivers, Contribution - Business Alignment

▲ The HR Strategy - 5 Focal Areas/ Strategic Thrusts


Introduction

▲ 2002 – 2004 Strategy “FIRST TO RECOVER & PLAY TO WIN”Transactional Excellence, HR Strategy & Planning, Attract & Retain, Leadership Supply, Performance Management

▲ Strong Operational Focus for 2002 in the Face of: - Economic Uncertainty - Flat Revenues - Dramatic Cost Reduction - Improved Profitability

▲ Underlying Themes: - Simplification and Integration - Cost Competitiveness - Focus (through fierce prioritization) and High Impact


$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2000Actual

2001Budget

2001Actual

2002Budget

Total Decrease ($192,561) –40.5%

Definitions:• IBHR • Variable

- In-Business HR - Immigration - LLP Tuition- LLP Business Learning Teams - Global Assignment Centers - GTS-Tactical

• Services- Security - Government Compliance - GTS Strategic- Rewards - AP Regional Services - GECS- Benefits - EMEA Regional Services - HRIS- Child Care - LA Regional Services - Service Center- LLP Core . HR Strategy - Core Process Redesign

• G & A

Global HR Costs ($000)

HR Contributions to Speed Our Return to Financial Health

Source: HR Finance, 03/2002


▲ We Continue to Benchmark “HR Value”▲ We Significantly Cut Cost & Continue to

Contribute to the Bottom Line.

0.86%

0.57%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

2000 2001

HR Cost as % of Operating Cost

$2,146

$1,809$1,755

$1,000

$1,500

$2,000

$2,500

$3,000

2000 2001 2002 (est)

HR Cost per Employee

2001 Saratoga Institute Average HR Cost per Employee – Technology Sector = $2475

13.3% LowerThan 2000 Mkt


2001 Saratoga Institute Average HR Expense as a Percent of Operating Expense – Tech / Mfg Sector = 0.72%


19.4% HigherThan 2000 Mkt



▲ Helped Increase the Cash Reserve of the Corporation Through Significant Contributions:

– Discontinuation of Milestones: $14M reduction in 2001 Fringe Cost plus a liability reversal of $80M

– Restructuring of Officers Life Insurance Plan: One time cash inflow of $62M

– Asset sale: $15M of guaranteed payments within 1 year of sale plus future potential payments




0

1000

2000

3000

4000

5000

HR Associates

0

30,000

60,000

90,000

120,000

150,000

Motorola Associates

1/2001 8/2001 12/2001 2/2002 1/2001 8/2001 12/2001 2/2002

Note: 0.15% Have Resulted in Administrative Charges or Litigation Matters; 0.00% with Adverse Results

Total Decrease = 2,163 (46.7%)

Total Decrease = 41,367 (28.1%)

Sources: TWIN; Corporate Law Dept. 3/2002


Other Key 2001 HR Contributions

▲ Human Asset Strategy Planning System

▲ Leadership Supply

▲ Dramatic Paperless Transactions

▲ Mergers & Acquisitions

▲ HR Global Data System

▲ OneMotorola Functional Strategy

▲ Shareholder & Performance Focused Rewards

▲ Relative Performance Assessment

▲ Exemplary demonstration of treating employees with dignity and respect during downsizing


NO NO ENTRYENTRY

HR OriginsHR Origins

DecentralizedCentralized HR

Integrated

Independent

Centers of Centers of ExcellenceExcellence

Shared Shared ServicesServices

Core/Core/IntegratedIntegratedServicesServices

Transition


P

eo

ple

P

eo

ple

A

cti vitie

sA

cti vitie

s P

roc

es

s

Pro

ce

ss

A

cti

viti

es

Ac

tivi

tie

s

ImplementImplement StrategyStrategy Organization RenewalOrganization Renewal

Strong Operational Focus

Future Strategic Focus

Change AgentStrategic Partner

Transactional Expert Employee Champion

Efficient Infrastructure

Increase EmployeeCommitment & Capability

- D.Ulrich

Our Evolution from the administrative “Personnel” of the’80s, through “Human Resources” in the ’90’s to the focus on Management and Optimization of Human Talent Today

Orientation


Strategic Intent

HR Solutions Create a High Performance Culture which

Optimizes Employee Contributions

and Maximizes Shareholder Value


PerformanceManagement

Business Strategies of Record

TransactionalExcellence

Leader. Supply

IBHR CoreServices/

HR StrategyAnd Planning

Human Asset Plans

Strategic Needs of the Corporation

Attract & Retain

Recover First:

Play to WinCOE’s Regions

Cost Compe-titiveness, Fo-cus , Impact

Simplify/Integrate

An Integrated Strategy With 5 Critical Thrusts


Simplification & Integration

CostCompetitiveness

Focus &High Impact



HR Strategy& Planning

LeadershipSupply

Attract & Retain

Areas of FocusAreas of Focus

Th

emes

Th

emes

Increase Operating Effectiveness : - Continue Internal Paperless Initiative - Improve Quality, Speed & Performance of all HR Base Transactions Globally Determine Viability of a “For Profit” Business: - Global Partner for HR Services / Transactions


▲ Funding Constraints (Expense and Capital)

▲ Alternate (Competing) Systems

▲ Lack of Integration

▲ Systems Sub-optimized Due to Limited / Inconsistent Use of Core Process Redesign

▲ Transactions Centers Are Ahead of Manager / Employee Willingness

▲ Limited Applications to Leverage Infrastructure

Transactional Excellence – Key Gaps


Transactional Excellence

Improve Operational Effectiveness: ▲ Complete Global Consolidation of HR Transactions Global Employee Solutions Center▲ Purchase/Develop System to Cover ALL Compensation Transactions▲ Create Infrastructure/ Integration of Paperless HR Transactions▲ Use CPR Methodology to Achieve Trans. Excellence

( Integration, Cost Competitiveness)


Cost

InternalOwnership

External Ownership

Low

HighCost

InternalOwnership

External Ownership

Low

High

Cost Projections Ability to InfluenceFuture Strategy, Change

Time Time

Flexibility


Outsourcing has Proven to NOT be the Panacea Once Imagined. While Initial Costs do Appear to go Down,

Future Changes Drive Costs Upward While Strategic CourseCorrection Ability & Flexibility Suffer Dramatically.

No - - - - - Changes- - - -Many Year One Future

Acceptable Cost

Acceptable Levels

of Influence

$’s

-R. Charan


Preliminary Partnership Discussion Indicates That There Is a Significant Market Opportunity That Could Result in a Savings From Reduced Fixed Costs Longer Term

Business Partnerships May Offer Rewarding Solutions:- Efficiency & Lower Cost- Retain Control & Strategic Focus- Possible Revenue Streams




CostCompetitiveness

Focus &High Impact




LeadershipSupply

Attract & Retain


Th

emes

Th

emes

Maximize Human Assets & Potential Via the Art & Science of :▲ Creating Human Strategy,▲ Planning (at World Class Levels),▲ Deploying and ▲ Measuring - Our Workforce in a Way that Provides True, Sustainable, Competitive Advantage.


▲ Differing Perceptions of Human Asset Planning, What It Covers, and What It Can Deliver

▲ HAP Not Recognized or Driven As a Core Business Process

▲ Workforce Planning Perceived As a Budget and Global Talent Supply Organization Exercise

▲ Costly and Unpredicted Variations Occurring in Talent Acquisition / Downsizing

HR Strategy and Planning – Key Gaps


Why Human Asset Planning?– 1998 Downsized 15,000 ($618M Severance)

– 1999 Hired 19,700 ($90M Hiring Cost)

– 2000 Hired 26,548 ($105M Hiring Cost)

– 2000 Downsized 3,900 ($140M Severance)

– 2001 Hired 7,908 YTD ($50M Hiring Cost)

– 2001 Downsized 36,800 YTD ($643M Severance)

– 2002 Downsized 4,567 YTD ($??? Severance)

Does This Cycle Make Sense?

H R Strategy & Planning

Total Cost = $1,646MSeverance: $1,401M Hiring: $245M



CostCompetitiveness

Focus &High Impact




LeadershipSupply

Attract & Retain


Th

emes

Th

emes

•Retention (Simplification, Integration, Impact)•Redeployment and internal talent management (Cost Competitiveness)•Employment Promise that delivers against the Motorola Brand (Focus & Impact)


▲ Motorola Brand Promise Is Not Translated Into a Powerful Employment Promise

▲ Lack of Clearly Identified and Developed Candidates to Feed Leadership Supply Pipeline (E09 – E14)

▲ Most Effective / Critical Skills Losses Are Not Currently a Managed Source of Future Talent to Motorola

▲ Most Effective Talent at Risk Where Development and Rewards Don’t Match Performance

Attract and Retain – Key Gaps


Retention and Redeployment

2002 2003 2004 Refocus on retention &

redeployment of most effective 20% and critical skills employees in E12 – E14

Apply leadership supply processes

Develop retention strategies

Retain 95% of specific target population

Ensure rewards programs support retention of specific target population

Create alumni tracking capability for most effective talent & critical skills employees who leave the company

Expand pool to include E09 – E11

Most effective 20% (E09 – E14) used as the feeder pool for open positions E12 – E15

Institutionalize a Center of Excellence for Talent Management across Motorola. Build a bridge to Leadership Supply & Learning processes.

Continued use of feeder pool as next generation candidates for Leadership Supply positions


Employment Promise

2002 2003 2004 Integrate our efforts to

translate the Motorola brand into an employment promise Define concept & rationale Develop informational

material Secure Sr. management

support (office of CEO, CMO, Corporate Strategy, Kitchen Cabinet etc.)

Develop project plan & obtain sponsorship, including funding, for 2003 implementation

Implement project plan Continue implementation & evaluate. Conduct internal & external discovery of desired employment promise vs. perceived employment promise



CostCompetitiveness

Focus &High Impact




LeadershipSupply

Attract & Retain


Th

emes

Th

emes • Add Additional “Extraordinary

Apps”

• Investigate External Business


▲ Top 100 Most Leveraged Jobs Not All Filled by Most Effective Performers

▲ Most Effective Talent at Risk Where Development and Rewards Don’t Match Performance

▲ Lack of Diversity in Leadership Supply and Pipeline

▲ Leadership Supply Process Is Attracting External Attention Creating a Potential Revenue Opportunity

Leadership Supply – Key Gaps


• Motorola Leadership Supply metrics were tracked on 2001 Global HR Scorecard and achieved the following:

97.0%

99.4%

84.3%

50% 60% 70% 80% 90% 100%

Transition

Retention

Performance

80% of Top 50 positions held by Most Effective Performers

95% retention of Most Effective Performers

80% transition of Least Effective Performers (100)

2001 Goals

Leadership Supply - 2001

(200)


Execute “Theme of the 100’s” with “Extraordinary Applications"

▲ Personal Development 100-Ensure Advanced Development

needs are Met.-Top 100 Attendees from the Initial Executive Institute to be Invited to Phase II.

▲ The “Diverse Next 100” Pipeline Identify a Pipeline for the Next 100 Future Leaders, Including Diversity Candidates from Across the Company.

▲ Internal Talent AgentDevelop the Business Case for Implementation of an Internal Talent Agent

▲ Leader Supply as a BusinessBuild a Business Case for Sale of Leadership Supply Process

Strategic Intent:100% Match Between: 100 Most Effective Leaders100 Most Leveraged Positions

&Reward to ensure 100% Retention & Exceptional Performance



CostCompetitiveness

Focus &High Impact




LeadershipSupply

Attract & Retain


Th

emes

Th

emes

▲Energize Tools by Holding Sr. Level Execs. Accountable for Re-building the Performance Culture

▲Integrate Fact-Based Tools for Mgrs./ Emps. to Discuss, Celebrate, &

Confront Individual Performance

▲Create Intensely Personal Performance Management Experience for ALLEmployees


▲ Lack of a Consistent High Performance Culture

▲ Personal Commitment Viewed As More Developmental Than Performance Management Orientated

▲ Consequences Not Aligned / Consistent

▲ Insufficient Management Tools and Training on Effective Behaviors

▲ Rewards Do Not Differentiate Sufficiently Between Organizational and Individual Performance

▲ Current System Largely Employee Driven

Performance Management – Key Gaps


Performance Management

Integrate/ Refine Existing Tools▲ Define & Agree: Components of Performance Management. Conduct Best Practices Study, Baseline Motorola System to Findings

▲ Clear Goal Setting – Linked to Next Layer

▲ Target Training: Employees & Managers

▲ Integrate: PC, Relative Performance, 360 Feedback

▲ Tighten Linkage to Rewards & Development

(Simplification, Integration, Impact)



CostCompetitiveness

Focus &High Impact




LeadershipSupply

Attract & Retain


Th

emes

Th

emes

-IntegratedTools/

-Simplified Goal Setting

-Sr. MgmtAccountability

-Increase Effectiveness/-Short TermStrategy

-“For Profit”Business/-Long TermStrategy

-Employment Promise/ CMO

-HAPContent/Process /FutureStrategies

-Rewards

-Exec.Ownership

-HAPProcessStrategy

-Retain

-Redeploy

-EmploymentPromise/

CMO Brand Promise

-Develop- ment

-New Apps.

-HAPProcessStrategy

-LeadershipSupplyAs Biz

Summary

-100’s



Cost Effectiveness

-and Creates “For Profit” Business Opportunities

Human Asse

t Plan. Attract/Develop/Retain

Lead

er ship

Performance Mgt.

Consequences/R

ewards

Human Resource Value Proposition

Drives Shareholder Value

משאבי אנוש בארגון גלובלי

Leadership & Management