global hr systems & processes

Sergei Polianski May, 2012

Global HR Systems & Processes: Are We Getting Benefits?

Human Resources Benefit Realization program

SSON, Amsterdam

© Copyright JTI 2011

JTI today Key numbers and growth milestones

In 2007, Gallaher Group Plc., a FTSE 100 business and formerly the fifth largest global tobacco company, was acquired, doubling our combined employee population. At the time, this was the largest foreign acquisition by a Japanese company

Global HR Systems & Processes: Are We Getting Benefits? 2

In 2011 • we employ about

25,000 people at • 90 offices, • 24 factories

(producing cigarettes), • 6 research &

development centers, and

• 5 tobacco processing facilities around the world

In 2009, the JT Group acquired part of the worldwide business of Tribac Leaf Limited (a company that trades tobacco in Africa), as well as two Brazilian companies active in the tobacco business, Kannenberg and KBH&C. In the same year, the JT Group also set up JTI Leaf Services, a joint venture with two leaf suppliers in the US - Hail & Cotton Inc. and JEB International

In 2009, we celebrated our 10th anniversary

In 1999, Japan Tobacco Inc. purchased, for USD 7.8 billion, the international operations of the US multinational R.J. Reynolds

2011 2007 2009 1999

http://www.gmkfreelogos.com/registro.html

SAP implementation (global model): 2001 - 2003

SAP HR implementation (global HR model): 2004 – 2007

Finance SSC: from 2002, 3 centers (Manchester, St.Pete, KL), 400+ people

• Regional model

IT/SAP Support/Contact SSC: from 2002, 3 centers (Montreal, St.Pete, KL), 120+ people

• Global ‘round o’clock’ model

HR: At regional/local level

JTI Shared-Services Experience Closely linked to global ERP Implementation



HR Process Redesign and ERP Implementation SAP HR Roll-out Roadmap

2004 2005 2006 2007 2008 2009 2010 2011

Preparation

JTI Rollout: Romania Pilot

JTI Rollout: CIS, Africa, Turkey, MENEWA, Baltics

JTI Rollout: Asia

JTI Rollout: Europe / HQ & Americas

Stabilization

Gallaher Integration: UK Pilot

Gallaher Integration: CIS+ and Improvements

Gallaher Integration: SAP HR Upgrade

>GLH Integration: Remaining Countries >Talent Management Functionalities

Benefit

Realization

Global Reference Model for 40 HR Processes Single System for Global usage 24,152 Employees

4

e-Recruitment Wave 1

Leaf Integration

JTI Stabilization Former Gallaher Integration Benefit

Realization


© Copyright JTI 2011 © Copyright JTI 2011 5

Yet…

68 vs. 500 Hired candidates vs. almost 500 posted positions from e-Recruitment Wave 1 implementation



Yet…

46% Have no access to SAP HR portal



Yet…

20% of managers did not log to SAP HR portal in two months…



Yet…

6 Clicks are required to approve Leave Request



Yet…

1.28 out of 3.00 Initial Data Quality Score


© Copyright JTI 2011 © Copyright JTI 2011

HR Benefit Realization Program: Essence

10

1. Secure Management Ownership, Involvement and Engagement. Processes and

technology governance

2. Ensure project governance for all global HR technology initiatives

3. Align HR service delivery and operational model

4. Complete HR Shared-services feasibility study and confirm further roadmap

5. Maintain right border between Global Reference Model and local practices

6. Ensure SAP HR is the lead system for HR everywhere serving data via interfaces to secondary and legacy systems

7. Build internal capabilities (‘power users’, data quality, HR University)

8. Drive Continuous Improvements



Program Focus 5 Priority Areas

11

Friendly, Easy to Use, World-Class, Feeling Global, Credible, ‘Things under control’.

Belonging to a community.

• SAP HR Evolution covering Talent Management, Organization Management Rebuild, Enhanced Compensation & Security, SAP HR Portal Redesign & Reporting • Data Quality Automation • e-Recruitment Roll Out

EMOTIONS

FOCUS AREAS

KPIs

PRODUCT KPIs DEPLOYMENT KPIs POWER TO USE KPIs BRANDING & COMMUNICATIONS

KPIs

PEOPLE KPIs

PRODUCT DEPLOYMENT POWER TO USE BRANDING & COMMUNICATIONS

PEOPLE

Govern SAP HR and other systems.

Enhance functionality according to business

priorities

Ensure HR processes alignment, right

service delivery model and change

management

Nurture the organization’s ability to leverage HR Business Technology and Global

Reference Model

Support change management, create

positive image, Ensure organizational

awareness.

Develop JTI talents by leveraging the

opportunities that knowledge of global systems / processes

provides.

• HR Shared-Services Feasibility Study • End-to-end HR processes: corporate requirements vs. local specifics • Tailored Market Programs • Business Forum • Organizational change management

• Power User community management • Knowledge management • Data Quality Measurement Process • Continuous improvements

• Customer segmentation • Brand Essence Development • Image Campaign • Communication

• HR University concept • Personal Development Plans for team members • Career planning



Organizational Design

Recruitment

Hire Employee

Career Development &

Succession Planning

Resign Employee

Compensation &

Benefits

Manage Personal Information

Corporate Metrics

Manage Performance

Training and Development

Starting with HR Processes Analysis Research based on employee life cycle

I. Interviews (57) II. HR Events (3) III. Reference Visits (8) IV. HR System Inventory (141) V. White Papers


© Copyright JTI 2011 © Copyright JTI 2011

Loca

l • Global: Global Reference Model supported by SAP HR

• Semi-Standardised: Frameworks supported by regional solutions • Processes (e.g. Talent Management, Succession

Management)

• Data Storage

• Training documentation

• Local • For the moment – Payroll

• Local reporting

Global 60%

HR Processes & Systems Finding the right border and aligning Service Delivery Model



Findings: HR Processes Overview

Org. Management

• Mature and stable global process covered by SAP HR

• Streamline reporting standards

Personnel Administration

• Standard GRM in place covered by HR and local systems

• Improve alignment local-global

Time Management

• GRM for negative time management covered by SAP. Mostly local processes with strong link to payroll

Compensation & Ben

• Global process limited by system constraints.

• Local process for Benefits consolidated at HQ level

Recruitment

• Global process is in place. High demand for an IT system. E-recruitment is a priority

Training and Development

• Global process is being developed.

• High demand for an IT system

Performance Management

•Global process well covered by SAP

Succession Planning

•Global process is in place.

•High demand for an IT system

- Opportunity for consolidation

© Copyright JTI 2011 15

Findings: Governance Factor Governance per functional area based on interview feedback



General opportunity for consolidation. Requires more sophisticated and tailored approach compared to classical Transactional Shared Service Centers

Low number of transactions (in comparison with Finance Service Centers)

High Influence of Legal or Local Authority Regulations

HR Specialists profile

Specifics of HR Customers

• Geographical split

• Local Languages Requirements

• Labor Unions

• Shift workers

Yet opportunity for consolidation: Ranked #2 after Finance

HR Shared-Services Research Learning from external practices



Document Management System

Tools for simplified data entry

Global HR Systems

(SAP or similar)

Requests Management System

Employees’ and Managers’ Self-

Service

Interactive

Form

Portal (ESS/ MSS)

SAP HR

JTI BSC SRT

Users

HR Service Centers Technology Enablers

HR Shared-Services Technology Enablers


Existing HR Service Center Model Enhancement

Pilot scope for new HR Services

Continue Consolidation of HR Activities at Market and

Regional Levels

Continue Technical Track

Pre-Recruitment Services Consolidation: “Internal Agency” Business Model (Consider CIS as a pilot) Onboarding & Departure Management Reporting Services New Dialogue Administration

Implement Interactive Forms Ensure no Double-Entry of data Evaluate Service Quality Confirm Tangible Benefits Extend service scope Make an effective “Prototype” for further roll-out

Scope Extension And Rollout

Consider Synergy with existing JTI Service Centers Evaluate Pilot Results

Longer-Term Agenda

HR Shared-Services JTI Approach


Not Assessed

9%

Black15%

Gold35%

Silver37%

Blue4%

JTI ‘Power User’ Approach: 180+ HR Power Users Ongoing activities to secure knowledge of HR systems and processes

On-Boarding Conference Calls

Role Acknowledgement via Dialogue

Knowledge Assessment Support

Training Opportunities

Collaboration Tools

Documentation / Knowledge Management

Power User Meetings

Power User Succession Management

Best-Practice Sharing Team

19 Global HR Systems & Processes: Are We Getting Benefits?


• Ownership for Global Reference Model by each process • Leveraging Technology

• Process Methodology and strategic planning • GRM technical expertise, IT ownership, maintenance

• Participation in user groups, partnership with key providers • Technology trends, best-practices

• Best-practices sharing, industry trends • Translating business requirements into technical solutions

• Validation of business requirements • Implementation project management

• HR change management • IT change management

• Ownership for global HR technology • System production support

HR Governance IT Centre of Excellence

Corporate Sponsorship is Key!

Governance Structure HR Shaping Demand – IT Providing Supply



Working together to make it happen Approach to resourcing

5

21

HR Power User Community

Global IT supporting HR

• Involvement and Duration • Min 50%, Normally 100% • From 9 months to 2 years

• Teaching Faculty • Permanent

‘Benefit Realization University’ • Teaching Faculty • Permanent

Project Assignments: • Education • Distance Learning • On-Job Practice • Planned Trainings • Alumni Support with Career Planning

42 280




22

Friendly, Easy to Use, World-Class, Feeling Global, Credible, ‘Things under control’.

Belonging to a community.

• SAP HR Evolution covering Talent Management, Organization Management Rebuild, Enhanced Compensation & Security, SAP HR Portal Redesign & Reporting • Data Quality Automation • e-Recruitment Roll Out

EMOTIONS

FOCUS AREAS

KPIs

PRODUCT KPIs DEPLOYMENT KPIs POWER TO USE KPIs BRANDING & COMMUNICATIONS

KPIs

PEOPLE KPIs

PRODUCT DEPLOYMENT POWER TO USE BRANDING & COMMUNICATIONS

PEOPLE

Govern SAP HR and other systems.

Enhance functionality according to business

priorities

Ensure HR processes alignment, right

service delivery model and change

management

Nurture the organization’s ability to leverage HR Business Technology and Global

Reference Model

Support change management, create

positive image, Ensure organizational

awareness.

Develop JTI talents by leveraging the

opportunities that knowledge of global systems / processes

provides.

• HR Shared-Services Feasibility Study • End-to-end HR processes: corporate requirements vs. local specifics • Tailored Market Programs • Organizational change management

• Power User community management • Knowledge management • Data Quality Measurement Process • Continuous improvements

• Customer segmentation • Brand Essence Development • Image Campaign • Communication

• HR University concept • Personal Development Plans for team members • Career planning


Enterprising Open Challenging

global hr systems & processes

Business

complete hr

hr university8

sap hr portal copyright

hr process redesign

hr service delivery

erp implementationsap

hr benefit realization

sap hr upgrade glh integration