Jenni Hardy, Lee Compeers

AstraZeneca HR Outsourcing with NGA Our Experiences To date

2

Jenni Hardy AZ Global HR Services

Introduction

Elena Schackman NGA EMEA Regional HR Services

Summary

What AstraZeneca & NorthgateArinso set out to achieve... our business case & ambition assumptions

The story so far...

100+ countries ‘live’ with the core solution in 2 years the challenges along the way

If we had our time again...

what we would repeat and do differently;

Moving East Dynamic Business Change

Shifting business shape

HR Consulting HR Technology HR Outsourcing

• 1,000+ ERP HR implementations globally

• 3,000+ ERP HR specialist associates

• 6 million+ employees served on NGA installed ERP systems

NGA Company facts

Global Footprint

• 400 ResourceLink customers

• 1,100 Preceda customers

• 50+ euHReka customers • 5 EOD/EOP early

adopter customers • 750,000 employees on

euHReka

• 7 global HR service delivery centers

• 30+ HR service delivery points worldwide

• Clients in over 100 countries speaking 25+ languages

• Over 100 HR BPO customers

Peoplesoft install base • 600,000 employees served • 7 customers • 8,500 staff in 35 countries

• 1 out of 4 of Fortune 500 • 1 out of 3 of Fortune 10 • supporting over 1/3 of the UK

workforce

• 1,000+ international customers

• 2,700 large/medium customers

• 7,000 small/medium customers

5

Survey Business Strategy Weigh

Options Select Right

Partner

Align

Confirm Expect- ations

Set Priorities

Define Tasks

Implement Monitor Measure Improve

Vendor selection process

• Manage 60,000+ employees in over 100 countries, • No global HRIS in place – patchwork of 900

applications • Significant HR cost improvement required • Global Talent Management strategy needed urgently • PeopleSoft platform (partly rolled-out) outdated • Innovation and best in class HR services needed • Changing business context: cultural and behavioural

change needed to cope with changing environment (drug pipeline)

Challenge

• Standard service and processes to fast track process to drive world class processes into AZ

• Easy to access (internet) and simple to use • Available for all employees in all countries – in many

languages • All transactions available through self service • Minimal effort to deploy this out of the box software • Change management services included to support the

deal

Solution: HRO powered by euHReka (EOD)

• Uniform HR systems landscape • 900 systems reduced to 1 global system • PeopleSoft and others replaced by SAP HCM globally • SAP global rollout less costly compared to

complement and upgrade the partially installed PeopleSoft system

• Change management utilized in addition to other transition services

• Minimal resources required of AZ IT department

Results

• HRO solution powered by SaaS technology • User experience • Low cost through multi-tenant and productized platform • Multilingual capability, balance global/local expertise • Integrated payroll expertise • Strong references & proof of delivery • Collaborative working relationship SAP-NGA-AZ • Executive confidence

Why NGA

Business Case Rationale for AZengage and NGA

Our shared ambition

AstraZeneca A global ‘emerging’

partner we could grow with/ learn to effectively Outsource Enabled core HR & e2e

talent management SAAS

NGA A global partner for ‘full

HRO product’ from which we could grow future business/global footprint First of its kind

implementation in the industry

Leverage competitive advantage

NGA business model: all around HR

9

HR Consulting The world’s largest HR-

centric business consulting and systems

integration practice supporting a variety of

ERP-focused and best-of-breed technology platforms

HR Outsourcing Through 7 primary service delivery centers and 30+ total service locations , we deliver HRO services in 25 languages in over 100 countries around the world.

In HR Technology, we provide the widest choice in HR-centric software options available in the marketplace. We enable platform-based HRO through our IP.

Global Service Delivery Network

BUENOS AIRES, AR

GRANADA, ES

DALIAN, CN

MANILA, PH

KATOWICE, PL

KOCHI, IN HYDERABAD, IN

285 employees

420 employees

80 employees

525 employees

471 employees

270 employees

30 employees

NGA has 30+ service delivery points supporting more than 25 languages across the globe, including 7 Global Service Delivery Centers.

Processes in scope Level1

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2000 Payroll

2010 Benefits

2020 Time &

Attendance

2030 Workforce

Administration

Country Processes (20)

1000 Organisational Management

1020 Global

Reporting

Enable Processes (10)

3010 Performance Management

3020 Rewards

3030 Talent Management / Succession

Planning

3040 Learning

Global Processes (30)

3050 Recruiting

ARCHITECTURE (50) 5000 Interfaces 5010 Data Migration

Support Processes (40) 4000

Application Management Outsourcing

4010 Infrastructure

Services Outsourcing

4020 Contact Center

4040 Service Delivery

Management

4030 Quality

management

The Process Design Methodology

Level of Detail

Level 1

Level 2

Level 3

Level 4

Level 5

HR Process

Framework Process Hierarchy

& SIPOC Logical combination of sub-processes abstracted from main HR Processes

Process “Swim lanes” Role-Activity mapping describing the sequence of

activities mapped to roles

Standard Operating Procedures Detailed description of roles and activities including

system support, decisions, responsibilities and document flow of a sub-process

Work Instructions Function- or work based guidelines describing the way activities within a process need to be

executed

Recruit & StaffRecruit & Staff

3. DevelopBranding &

communication

1. DevelopRecruit & Staff

Framework

5. Vacancy Need

2. DevelopRecruit & Staff

plan7.

Sourcing

9. Assess & Select

10. Hiring management

11. Measure & evaluate

Recruit & Staff process

6. JobProfiling

4. Talent Database

Management

8. Job Posting

12

100000 MAINTAIN ORGANIZATIONAL STRUCTURE.VSD

Approved By:Date:

100000 MAINTAIN ORGANIZATIONAL STRUCTURE.VSDMaintain org.struct.

Global OpX

Business Partner

T1 – Agent

T2 - SME

Business Partner

AMO lead

T3 – Payroll Manager

LSDM

Employee

ManagerRequest change Organiszational

Structure

Check change request

Approve request?

Criticize change request

Authorization OK?

Analyze consequences

Apply change in organizational

structure

Inform Business Partner

Approve request? End

Start

InformManager

Data correctly applied?

no EndAdjust and/or

complete request change

Convert request change in SCM ticket

InformBusiness Partner

yes

Endno

yes

no

yes

yes

no

C

Request changeOrganizational

Structure Start

End

Escalate SCM ticket

to T2

Close SCM ticket

Archive

Inform 3rd parties & departments

involved if necessary

Engl

ish

AZ

part

: 30

lang

uage

s N

GA

par

t: En

glis

h

Global Program Set-up &

Preparation

Global Template & Planning

Global realization

Global Maintenance

& Support

Waves and Country Rollouts

Glo

bal

Rea

lizat

ion Pilot

Country Rollout

Glo

bal

Rea

lizat

ion Final

Template & Core System

Glo

bal

Rea

lizat

ion Roll-out all

countries (in waves)

13

Transition approach Integrated Program Plan

Integrated Country Project Plans (Large SAP, BDO medium, BDO small)

Prepare Fit-Gap Design Build Deploy Close Operate

Prepare Fit-Gap Design Build Deploy Close Operate

Prepare Fit-Gap Design Build Deploy Close Operate

Global On Boarding Approach

Fit To Standard approach

14

~10 weeks Fit To Standard

Kickoff • Global NGA + AZ to

host • Audience : All key

stakeholders • Overall Project

objectives and context • Schedule and resource

plan • ½ day

Fit to Standard workshop • Global NGA + AZ to host • NGA operations to

participate to cover the service aspects

• Audience : HRD - business • Explain, discuss and

finalize OM, WFA, global time & pay interaction and global reports

• Confirm the interfaces scope

• Confirm the key data migration parameters

• English discussion and documentation; by exception facilitated

Fit to Standard blueprint • Output of the 4 day fit

to standard workshop • Document with all

questionnaires filled in – all issues clarified and described (English)

• Exceptionally an open issue can be carried forward

• Signed off by the HRD

Payroll and time workshops • AZ Payroll manager / clerk • Local NGA / BDO payroll

and time consultants • Workshop 1 – 2 approach

for payroll and time calculation rules – detailed schedule to be agreed depending on expected complexity

• Workshops in local language

• 5-6 weeks

Payroll and time blueprint • Detailed description of

payroll and time rules in the local language

• Detailed review with Q&A foreseen to ensure first time right

• WFA update triggered by payroll & time if required

• Payroll and time blueprint to be signed off by the HRD

Plan & Define Tollgate • Formal

acceptance of the tollgate

• Start of payroll build activities

Interfaces blueprint • Detailed functional

and technical design of the local interfaces in scope

• Interfaces blueprint to be signed off by the HRD

Interfaces workshops • AZ local/global HR

IS • NGA Global (and

Local) Interface consultants

• Agreed workshop schedule and format based on volume and expected complexity of workshops

Data migration Cycle 1 DM activities organized and executed by global team as per plan

eWS early

solution build Earlier start of AZengage frontend build based on signoff to allow for earlier start of testing

Current status and year ahead Live today Jan 2013

Countries 104 US and Sweden

Languages 25

Global Processes

Performance Management Learning

DoA (2012) Reward (2012) Succession (2012) Recruitment (2013)

# Employees 45.000 10.000

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AZengage Governance “return authority”

Executive Leadership Board

(AZ / NGA) Stakeholder engagement; approval based on DOA

Programme Steering Committee (AZ / NGA)

Transition (AZ / NGA)

Decision making body; approval based on DOA

BAU Operations (AZ / NGA) Led by Budget Owners

Wave Level Regional Level (AZ / NGA)

Country Level Country Level

1. 2.

3.

4.

5.

Assumptions we made (that turned out to be accurate vs not)

AstraZeneca HR are the biggest resistor

to the change ‘Open book’ drives trust Cultural fit Partnership is crucial More languages the better NGA deliver 80% Global

standard solution

NGA Ability to jointly implement

challenging roll-out schedule Ability to implement first rate

joint people readiness Leverage the global footprint

and expertise Ability to achieve self

service targets within year 1 Under 25% system

localization

What it takes to get 100+ countries ‘live’ ... in just 2 years

AstraZeneca Visible ownership by the

business Good project & commercial

management Ambitious & pace setting

CHRO Start small; leave large

countries till last Resilience x 100 and more

NGA Focused & determined

project management Visible senior leadership

global, regional & local Visionary CEO Commitment to governance Strong process

documentation & adherence Solution expertise (brightest

brains)

The challenges along the way

AstraZeneca Payroll ‘over-validation’ Delayed Functionality Controls & SOx We didn’t know what

we didn’t know…. Time vs Cost vs Quality

NGA Moving from consultants

to delivery of standard Consistency of service

and solution across country/region Expectation

management of what will be the ‘new world’

Pros & Cons of ‘advisors’

Fill critical Capability Gaps Know what questions

to ask & when Objective Remediation The ‘third person in

the marriage’ - mistrust Manage the $$$ vs

benefit rigourously

What we would repeat and do differently Repeat

Spend time detailing the contract; then work reality through together post deal signing e.g. SLAs Start small and build Talk to others who are ahead

on the journey Agree ‘local ways of working’

from day 1 Strong governance in place

Do Differently Define ‘good enough’ early Review and consistently

apply go-live ‘go/no go’ criteria Manage transition from

project to operational phases more closely Provide more context

around core ‘issues’ & ‘requirements’

Jenni Hardy, Lee Compeers

AstraZeneca HR Outsourcing with NGA Our Experiences To date