global hr forum2008-reginald bull-achieving hr transformation through outsourcing

14
Global HR Forum 2008 Creative Talent for Global Collaboration Stream B: Change in Global Environment and Corporate Strategies for Human Resources Session 4: Evolution of HR Leadership Achieving HR Transformation through outsourcing Achieving HR Transformation through outsourcing (Unilever case) (Unilever case) Reg Bull Reg Bull CHO, LG Electronics CHO, LG Electronics

Upload: global-hr-forum

Post on 29-Nov-2014

353 views

Category:

Documents


1 download

DESCRIPTION

 

TRANSCRIPT

Global HR Forum 2008Creative Talent for Global Collaboration

Stream B: Change in Global Environment and Corporate Strategies for Human Resources

Session 4: Evolution of HR Leadership

Achieving HR Transformation through outsourcing Achieving HR Transformation through outsourcing (Unilever case)(Unilever case)Reg BullReg BullCHO, LG ElectronicsCHO, LG Electronics

Scale and geographic reach

The Americas | €13.8bn | 36%

2007 Turnover €39.6 billion

Europe | €15.0bn | 38%

Asia/Africa | €10.9bn | 27%

Present in 150 countries

206,000 employees*

*as at end 2007

Our Peoplepersonal growth

team growthorganisation growth

HR Business Partnersoverall HR accountability

organisation & leadership capabilityculture

HR Servicesupport

transactionstechnology

HR Expertisesolutions

policies and systemsbest practice / knowledge

Policy interpretationProcess improvement

Individual, Team and Organisation Capability

Individual support and transactional enquiries

Solutions Development and activation

PerformanceCost / quality of service

The Ulrich ‘Business Partner, Expertise, and Service Delivery’ model

'Cheshire Puss….would you tell me, please, which way I ought to go from here?'

'That depends a good deal on where you want to get to,‘ said the Cat.

'I don't much care where --' said Alice.

'Then it doesn't matter which way you go,' said the Cat.

The shift ...The shift ...

Group As Is

Line Managers 1) Being served2) People Mgt deliveredfor them3) Internal single pointHR service

Employees 1) Dedicated inhouse HRservice2) Personalised attention

Retained HRemployees

1) Working in virtuallyindependent roles2) Serving business3) Internal interfaces

In Scoped HRemployees

1) Security of Unilever2) Opportunity to dodifferent HR roles

To Be

1) Self Service 2) Do some People Mgt actions themselves, with reverse SLAs 3) Interface with an external service provider 1) Self Service 2) Issue based interface

1) New interdependent HR Operating framework 2) Ensuring business is served 3) Regular external service provider interface 1) New Employer 2) Focus on core HR skills

Change

8

Sourcing Dimensions

• Scope– Process Scope– Geographic Scope– Languages– Desired Process Maturity

• Delivery Model– Delivery Style– Delivery Channels– Service Delivery Locations

• Resources– Use of Delivery Assets– In-scope People– Severance Approach– Retained People

• Change Approach– Transition Phasing Approach– Transformation Phasing Approach

• Technology– HRMS – PeopleSoft– Other Technology

• Relationship– Pricing Model– Reliance on Pricing Transparency– Desired Relationship with Provider– Desired Contract Term

MaximisingCost Savings ?

MaximisingOrganisational

Comfort

30% to 50% AnnualRun Rate Savings

10% to 20% AnnualRun Rate Savings

HR Information Solution 10%

Geographic Solution 5%

Operations Solution 15%

Service Provider

Experience 10%

Managing Risk 10%

Cultural Fit 5%

Governance Approach 5%

Pricing 20%Transition

Solution 10%

Transformation Solution 10%

SolutionPartnership

PriceImplementation

Risk

•Price has a ‘wild card’ effect – if the desired price is not achieved then the bid is unsuccessful

Why Accenture? The decision making process

In 2006, Unilever signed a 10 year global outsorucing deal with Accenture with a value of over US$1 billion. It remains the most comprehensive and largest deal ever in the history of HR BPO.

Country Classifications

OUTSOURCED SERVICE:

• The majority of Unilever employees will be served by this model

• Transactional and administrative work will be provided by Accenture through Regional Delivery Centres (RDCs)*

• Some high-touch work will remain local e.g. telephone interviews, candidate shortlisting, instructor led training for General Skills & Leadership curricula

IN-SOURCED SERVICE:

• Transactional and administrative work will be provided in-house by Unilever with support from Accenture

• Appointment of an Accenture Territory Manager to:

• Operationalise the Service Management Framework

• Advise on process and technology changes that could improve the Service Delivery Model

• Appointment of a Unilever Single Point of Contact (SPOC) to manage operational change in the HR organisation and to allow for a single point of escalation to the Territory Manager for retained HR (Business Partners/ Expertise Teams)

* An Accenture Shared Services location in a particular Unilever region providing HR services to Unilever employees

UNILEVER

Workforce

Line Mgmt

HRLeadership

BusinessLeaders

Former Employees

Integrated HR Information Systems

Regional Delivery Centre (HR SERVICES)

Transaction Support & Case Workers

HR Expertise TeamsHR Business Partners

Service Governance & Management

Res

ourc

ing

/Rec

ruiti

ng

Rew

ard/

Exit/

Wor

kfor

ce A

dmin

Perf

orm

ance

Customer Contact

Employee/Manager

Self-Service

Vendors

Email

Call Centre

Mail/Fax

Empl

oyee

/Indu

stria

l Rel

atio

ns

& C

omm

unic

atio

ns

HRMS Management/ HR Reporting

3rd party management

Recruits

HR Transformation Projects

Lear

ning

RetainedPartially outsourced/ managed on a consulting basis

Outsourced

The HR Service Delivery Model illustrates how HR services are delivered to Unilever

The HR Service Delivery Model for Outsourced Model Countries

Payr

oll

So what about LGE? Design Principles for the HR Operating Framework

In order to facilitate the move towards true globalisation, these are the guiding design principles for the proposed HR organisation

• ‘One’ HR Team, accountable for ‘one’ HR portfolio

• Strong interdependency between Global Business units and the Regions

• HR Regional influence very significantly enhanced to reflect the reality that this is the operating environment where our people live and work. Company HR adjusted to this new reality.

•Similarly, Country HR must play a much larger gate-keeping role to limit unnecessary complexity raining-in to their location.

• Rigorous division of HR responsibilities within a clarified Business Partner, Expertise, and Service (enabling) structure

• Service delivery increasingly leveraged through global technology where this is feasible and cost effective

• Operating mindset to be: Customer/consumer focus (ease of use, timely, aligned); simplicity in all things; invent together; execute one-way-; do it once and do it right; harmonisation between units; concentrate on similarities – not differences; an ‘LGE’ mindset – not a ‘unit’ mindset.

• Clear, single global HR framework for structures, policies, and approaches with local (country) implementation that is powerfully co-ordinated by Companies and Regions

It is going to get tough, so we will need to be equally tough in response

HRRabbit

How important do you think the mindset of HR is in an implementation of this sort?

HRRabbit

HRRabbit

It is going to get tough, so we will need to be equally tough in response

How important do you think the mindset of HR is in an implementation of this sort?