evolving from single function to end-to-end processing
DESCRIPTION
TRANSCRIPT
Volvo Group Business Services
1 May 2012
Evolving From Single Function to End-to-End Processing
The Volvo Group case
Volvo Group Business Services
2 May 2012
Volvo Group Business Services
Our brands
3 May 2012
Volvo Group Business Services
Volvo Group Organization
4 May 2012
Trucks Joint Ventures
Group Trucks Technology
Group Trucks Operations
Group Trucks Sales &
Marketing APAC
Group Trucks Sales &
Marketing Americas
Group Trucks Sales &
Marketing EMEA
Finance & Business Support
Business Areas
Construction Equipment
Total turn-over: 310 BSEK (35 BEUR) Operating income: 27 BSEK ( 3 BEUR) Truck deliveries: 240 000
Volvo Group Business Services
Volvo Group Business Services
5 May 2012
A Group Function within Volvo Group
Overall • Present in over 30 countries. • ~2 000 employees.
• 75 000 employees served (of total 100 000). • Securing a single-point of contact for
Volvo Group employees and managing personal data, organizational structures, compensation, benefit, international assignments, recruitment and other critical HR activities for 75 000 employees.
Human Resources
Finance &
Accounting • Total turn-over:310 BSEK (35 BEUR) where Business Services handles 250 BSEK (28 BEUR) in 135 legal entities.
• Legal Chief Accountant responsibility for 135 entities.
.
Figures: February 2012
Volvo Group Business Services
2010 2011 2012 6 May 2012
Volvo Group Business Services in the world
Volvo Group Business Services
Volvo Group Business Services
journey
1998 - 2002 2003 - 2006 2007 - 2010 2011 - 2015
Initiate
Mobilize
Optimize
Capitalize
May 2012 7
Volvo Group Business Services
Volvo Group Business Services Organization March 1st, 2012
FBS
CEO
Business Services
Elisabeth Rocke
HR & Communication
Hans Nordström
F&A Development
Staffan Kullberg
HR & Contact Services Development
Kent Abrahamsson
Controlling
Petter Liderfelt
Strategy & Operational Excellence
Niclas Sjöswärd
On Demand
Services
Niclas Sjöswärd
Global & Regional
Delivery
Philippe Theolier
Region
Asia Pacific
Ulrika Toftevik
Region
Americas & EMEA
Christian Johansson
Volvo Group Business Services
Global functions with different focus
Governance / Support Units
Development Units
Operational Units
Business Services
Elisabeth Rocke
HR & Communication
Hans Nordström
F&A Development
Staffan Kullberg
HR & Contact Services Development
Kent Abrahamsson
Controlling
Petter Liderfelt
Strategy & Operational Excellence
Niclas Sjöswärd
On Demand
Services
Niclas Sjöswärd
Global & Regional
Delivery
Philippe Theolier
Region
Asia Pacific
Ulrika Toftevik
Region
Americas & EMEA
Christian Johansson
Volvo Group Business Services
Major global shared service center trends
• Cost reduction by labor arbitrage and resource centralization
• Proven successful and efficient in specific functional areas
• Steps taken to integrate several functions (multi-functional SSC’s)
• Cost reduction by implementing hub-and-spoke models
• Improved scale and synergy effects by combining several functions into integrated SSC’s
• SSC’s becomes independent business in it self
Shared services today Shared services next generation
May 2012 10
Volvo Group Business Services
Hub and spoke model Implemented by Volvo Group Business Services
Global transaction hub
Shared services satellites local centers
Regional centers
Business Areas / Markets
Decision support Market-specific activities
Local support / specialization
Transaction processing & global center of excellence
May 2012 11
Volvo Group Business Services
Global Center
s facts
Total Global Center
2
Employees Global Center
330
F&A
270 HR
60
Figures: February 2012
May 2012 12
Volvo Group Business Services
Regional Center
s facts
Total Regional Centers
4
Employees Regional Center
710
F&A
510 HR
200
Figures: February 2012
May 2012 13
Volvo Group Business Services
Local Center’s facts
Total Local Center
46
Employees Local Center
560
F&A
490 HR
70
Figures: February 2012
May 2012 14
Volvo Group Business Services
On Demand facts
Total Local Center
42
Employees Local Center
513
F&A
459 HR
54
Figures: February 2012
Present in number of locations
6
Employees On Demand
220 Projects &
Partner Services
90
Training
80
Recruitment
50
May 2012 15
Volvo Group Business Services
From fragmentation to end-to-end processing
Volvo Group Accounting or HR
Admin department
Volvo Group Business Services
EMEA,
Americas & Asia Pacific
Volvo Group Business Services
Global & Regional Delivery
Consolidate Alignment and structure
Transition and transform
Optimize, standardize and
deliver
May 2012 16
Volvo Group Business Services
End to End Accounting Conceptual overview
General Accounting SAP Master Finance Legal entity based
Group GAAP & Local GAAP based
Local input Consolidation Legal entity based, Group GAAP based
Legal Entity Reporting Local Management Report Local GAAP Compliance
Legal entity based
Group Consolidation Group Trucks/BA based
Group GAAP based
Group Reporting Group Trucks/BA based
FPP based Group Financial Control Group Trucks/BA based
FPP based
Business Services -Local / Legal Chief Accountant
Business Services – F&A Global & Regional Delivery
Business Services – F&A Global & Regional Delivery
Business Services – Group Accounting & Internal Control
Corporate Function – Group Financial Reporting Business
divisions
Volvo Group Business Services
Operative Vision
Development
• We develop and build integrated solutions that support and contribute to the Volvo Group’s vision
• A global contact services approach
• Working towards one integrated IT solution per business line (F&A and HR)
One of the most innovative shared service center
May 2012 18
Volvo Group Business Services
• We deliver value for the Volvo Group by meeting business needs in our services in regards to:
• delivery precision • lead time • quality • scope of services
• Volvo Production System and lean services are in a natural way included in all our deliveries
Operative Vision
Delivery
May 2012 19
Volvo Group Business Services
Operative Vision
Volvo Group relations
• We work closely to the business and our services are well integrated to the Volvo Group businesses
• We have a trustful interaction in the end-customer contacts for the Volvo Group
• We have a close cooperation with stakeholders within finance and HR
May 2012 20
Volvo Group Business Services
• We measure our performance and we have proven to be a successful shared service center
• We measure our developments, delivery precision, qualitative output, standardization, etc.
• Quality is part of our daily work through VPS • Getting it right from the beginning • Everyone knows how to get the root cause of
a problem
Operative Vision
Performance
May 2012 21
Volvo Group Business Services
Operative Vision
People
• We have successfully realized a competence shift among our employees
• Majority of our employees have changed work content the last years, to support Business Services transformation
May 2012 22
Volvo Group Business Services
Operational Excellence Vision
Quality Focus: Customer satisfaction / output
ISO Focus: Compliance in process documentation
Process Management Focus: Service Delivery Infrastructure
VPS Focus: Integrated Continues Improvement
Integrated Operational Excellence
World Class Business Admin &
Shared Service Center
Yesterday Today Tomorrow
May 2012 23
Volvo Group Business Services
Customer Satisfaction is the key to success
24
Volvo Group Business Services
F&A and HR Services and
Support
Volvo Group customer facing people & processes
Sales & Marketing, Operations,
Technology etc.
End-customers
Efficiently and qualitative internal services drives internal customer satisfaction in the Volvo Group
Internal customer satisfaction keep focus on external customers and world-class products and services
Focus on external customers and world-class products and services drives end-customer satisfaction and profitable growth
May 2012
Contact details [email protected] +46 31 3233104