global transformation - kpmg transformation ... how are we defining the new organisations and making...

Global TransformationThe HR role in Managing Successful Transitions

Jacky SimmondsGroup HR Director – 18 February 2015TUI GROUP | Global Transformations I Jacky Simmonds | February 2015

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Outline

• Background to TUI

• Business Model Challenges

• Change & Transformation

• Approach to Managing Transition

• Lessons learned

TUI GROUP | Global Transformation I Jacky Simmonds | February 2015

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The world’s number one integrated tourism business at a glance*

*Based on numbers from FY 2013/14

More than 30 million customers from 31 source markets travelling to 180 destinations

Revenues of €18.7 billion

Over 300 hotels with 210,000 beds

A FTSE 100 business

136 aircraft

Global Company –domiciled in Germany

12 cruise shipsMarket

capitalisation €7 billion About 1,800 retail

shops in Europe

77,000colleaguesin 130 countries

Underlying EBITA €869 million


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At a glance – over 250 brands

Sun & beach

Luxury

Oceans & riversAccommodation

Responsible travel

Activity & adventure

Inbound services


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Competitive landscape – Business Model Challenge

TOUR OPERATOR PACKAGE DYNAMIC PACKAGE SELF-ASSEMBLED PACKAGE


https://www.google.co.uk/imgres?imgurl&imgrefurl=http://allbabyadvice-blog.com/index.php/2012/02/thomson-first-choice-treating-us-to-a-fab-rainforest-lunch/&h=0&w=0&sz=1&tbnid=8M1uo4ISKlg3JM&tbnh=115&tbnw=439&zoom=1&docid=XuaJC9gYCp0EaM&ei=tKrWUeOoNbDv0gWz9YHYBg&ved=0CAMQsCU


http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=DGmq1Ry6L5qUnM&tbnid=w_7qxMPvzzAk5M:&ved=0CAUQjRw&url=http://www.alpes-seminaires.com/notre-societe/5/ils-nous-font-confiance.html&ei=jZrnUargGvPK0AWxmoCgCQ&bvm=bv.49478099,d.d2k&psig=AFQjCNEli2mDN_DC3QrnxTM8OSGM-F4NKA&ust=1374219273149900


https://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=F0a1f027qeNHYM&tbnid=2eCXlGfbQL9oEM:&ved=0CAUQjRw&url=https://twitter.com/Arke&ei=6ZrnUYy8EeWm0AWAlIGADw&bvm=bv.49478099,d.d2k&psig=AFQjCNHMTpgCg_wnnyGV79kwuEtbncdIuQ&ust=1374219362806834


http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=DZpMoscqQ8rE2M&tbnid=1j9cvhKGdAntDM:&ved=0CAUQjRw&url=http://www.travelifecollection.com/tour_operators/67/SE&ei=opvnUaDuJ6fZ0QWg-4HoBA&bvm=bv.49478099,d.d2k&psig=AFQjCNFa6BW0pnSggFjagyNfPdOsylWEFA&ust=1374219475521239


http://www.google.co.uk/url?sa=i&source=images&cd=&cad=rja&docid=Is-GTvKw9-yg3M&tbnid=7KkJmPcTexxoPM:&ved=&url=http://www.bitterwallet.com/dear-stephen-mcnamara-head-of-communications-ryanair/27201&ei=RKvWUZehJ8OS7AbghoCQBA&psig=AFQjCNFkTGein9UphvuCW_u6zbFaABfxLg&ust=1373109444728527


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Our Customers are spoilt for choice as the competitive landscape continues to grow

1990s 2000s 2014

The travel market has

evolved hugely over the past 20

years and become

increasingly crowded






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Digital Technology increasing dynamic and self-assembly packaging

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TOUR OPERATOR PACKAGE DYNAMIC PACKAGE SELF-ASSEMBLED PACKAGE

Technology is at the forefront of travel, and we need to keep upTUI GROUP | Global Transformation I Jacky Simmonds | February 2015











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Technology changing landscape

2013Announcement of Pope Francis

2005 Announcement of Pope Benedict XVI


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Where we have come fromThe development of the Operating Model

Retaining market accountability, while leveraging operational and capability synergies

• 9 Source Markets carrying out all operating activity separately

• 6 airlines acting independently • IT/HR/Finance all organised to support

source markets

2011 2014• Source Markets grouped under 5 Clusters• Common operations and platforms through

Functions • Source Markets focused on local sales

Operating Model

Mai

nstr

eam

Fun

ctio

ns

Airline

Product Development & Purchasing

Distribution & Online

Customer Experience

Destination Services

Digital Transformation (IT)

UK&I GASP* Nordic France BelgiumHolland

5 Clusters

* GASP – Germany, Austria, Switzerland, PolandTUI GROUP | Global Transformation I Jacky Simmonds | February 2015

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Challenges

• Over-emphasis on local differences

• No common platforms for delivery

• Staying aligned with overall business strategy

• Limited collaboration and knowledge of each others businesses

• Support function infrastructure doesn’t support desired future state operating model


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The model we are changing to requires every source market to review their

structure, change roles, requires different leadership and ways of working


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HR Challenges

• 40+ HRIS systems

• Completely decentralised HR functions

• Few common processes across the Group

• Leadership capability

• Changes occurring at different times

• Multiple change programmes locally underway

• Unions / Local Works Councils / Group Works Council / European Works Council

• For good measure – we then decided to merge with TUI AG!


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Key Questions for HR Teams

How are we defining the new Organisations and making sure they work?

How do we identify our obligations to consult on the changes proposed and how is this managed?

How do we understand the impact of the new Organisations on current roles and our people?

What support and development is there for meeting the leadership challenges that organisation change presents ?

How do we move people into the new roles and out of the existing roles thathave changed?

How do we make sure we redeploy impacted people effectively and pro-actively manage impact on talent?

How can this be done consistently across several geographies?


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HR Approach to Managing the Transition

Design GroupClear methodologyStandard “output”“Stress Test” proposals

ORGANISATION DESIGN

PEOPLE IMPACT

CONSULTATION

TRANSITION PRINCIPLES

Standardised ProcessMaps current roles against design workLooks at accountabilities, decision making, KPI’sCompetencies and skills required

Local Works Councils Unions / - vs –European Forum & Group Works CouncilsMultiple impacts in local geographies & numerous change programmes

Needs common approachSome guidance mandatoryLocal HR responsible for making leadership teams and line managers informed


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PEOPLE TRANSITION

REDEPLOYMENT & TALENT

DEVELOPMENT

Redundancies, vacancies, new opportunities“SPOC”Clarity on selection & resourcing approach

RetentionAcquiring new skills & competencies“SPOC”

Significant shift required in Leadership CapabilityNew skills requiredNew cross national teams being formed

HR Approach to Managing the Transition


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New Ways to Lead

Be collaborative& lead in a

virtual matrixenvironment

Engender commitment & loyalty amongst

people of different ages/cultures & values

Understand the changing digitallandscape, the business goals &

what our customers want

Operate internationally

& drivebusiness

transformation

Manage higher levels of ambiguity

?


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DEVELOPMENT One TUI – Making a Success of the Transition

SUSTAINABILITY

CONSISTENCY

FUTURE PROOFTHE BUSINESS

Strategic, measurable approach to

shifting performance &

behaviour

Transform our business

through our leaders

“Enabling leaders to

create new

realities”

Delivered through…

Ensure alignment, engagement &

capability to take us in to the future

Goals - ONE TUI

Breakthrough performance

Setting New Teams Up for

Success

Leading Global High Performance

Teams

Leading in a Digital Age

?

Performing While Transforming


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Last few months focus has been on…………………

• Engagement on the ‘Story’

• Alignment of leadership across the businesses

• How we improve collaboration at senior level to penetrate further down the organisation

• Shifting Mindsets – local to global

• Driving the benefits of ‘Developing once deploying to many’

• Overcoming the resistance to change

• Looking further at how we can simplify our organisation


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Lessons learned to date……………….

1. Leadership have to take ownership of the change and transition

2. You can’t go faster than the organisation is ready for

3. There will be compromises

4. Cross-border change very difficult and complex

KEEP IT SIMPLE


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Our People Destination 2020

In 2020 our people will:

• Say TUI is customer focused

• Feel part of one global team

• Will love working at TUI and recommend it as a great place to work

• Will talk about TUI as an industry leading employer


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