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TRANSCRIPT
6/18/2012
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PARMALAT
CASE
“PERFORMALAT”
London, June 2012
Riccardo Sebastiano Piaggi
6/18/2012
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• Parmalat Presentation
• Performalat Project Introduction
• Executive Summary
• Performalat: The Business Challenge
• Performalat: Model – Process
• Performalat: Project scope and approach
• Performalat: System - Success Factors
AGENDA
Turnover 2011: more than 4 billion euros
75% net revenues outside Europe
Directly present in 16 countries with 69 factories and also present in 9 countries through
licensing agreements
31 brands (whose 2 global + 5 international)
About 14,000 employees
Parmalat S.p.A. is listed on the Italian Stock Exchange since 2005
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PARMALAT IN A NUTSHELL
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PARMALAT IN THE WORLD
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OUR BRANDS
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Parmalat is controlled by the Lactalis Group since July 15, 2011.
TURNOVER OF 14.7 BILLION EUROS
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STARTING JULY 2011:
PARMALAT GROUP AND LACTALIS GROUP
— 198 Factories in 35 Countries, 21 Sale Offices —
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Parmalat present in 16 countries Lactalis present in 44 countries
STARTING JULY 2011:
PARMALAT GROUP AND LACTALIS GROUP
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Performance evaluation, identification and management of key resources and
succession planning represent the declination of the Mission and Values of
the Group within the Human Resources. These, along with training and
compensation plans, are the main tools used by Parmalat to attract, motivate
and retain valuable resources by providing a common framework, respecting
and taking advantage from cultural diversity and Group Companies.
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FOCUS ON PEOPLE
The Parmalat People Performance Management, Performalat, is going to involve all “white
collars” within the Group. The processes managed by Performalat are:
Performance Management
Reporting
Action Plan
Succession Planning
Through an interactive communication process between Leader and Employee.
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The model has been entirely designed and implemented by using an inclusive approach,
involving and engaging Parmalat Professional Families and it reflects our philosophy.
State of the art: around 1.300 employees belonging to 13 countries within the Group are
completing performance cycle 2011 (the first cycle managed through Performalat).
Starting from 2012, Performalat will be deployed to all white collars employees (around
5.500).
Performalat is enabled by a customized SaaS (Software as a Service) tool provided by
SuccessFactors.
PROJECT INTRODUCTION
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Performalat mainly:
Training needs
Development initiatives
Career development
Reward decisions
Succession planning
Talent Management
Performalat
Action Plan
Provides a global and local overview of the state of our Human Capital – i.e. building people capabilities, identifying potential successors, key people, talents;
Provides a tool to assist leaders in better recognizing and differentiating amongst individuals’ contributions;
Supports the development of adequate reward and succession plans, development tracks and talent management plans.
Provides useful information to Leaders aimed to a define a proper Action Plan for each Employee;
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PROJECT INTRODUCTION
Introduction of a unique Performance Management model
throughout Parmalat group
Enablement of a culture of performance pushing workforce
towards a flexible and competitive mindset
Identify talents that can grow within Parmalat to cover new
responsibilities & higher position
Define appropriate development actions and reward plans
System requirements definition and selection of a suitable
Performance Management tool;
System Implementation (SuccessFactors)
Project & Change management
3 - Project Scope and Approach
Performalat
Model Processes
Implemented in few months
Able to support the entire performance management process
Customizable according to Parmalat needs
User friendly and multi language
Performalat aims at evaluating people by measuring:
Achievements: results and behaviors
Competencies: Core and Technical
4 - System (SuccessFactors)
Performalat consists of three integrated phases. Each phase is an essential part of the process to be performed in order to meet individual and organizational objectives.
Integrated Succession Planning processes have been designed as well
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1 - Business Challenge 2 - Performalat
Performalat support us in the Succession Management providing us features aimed at evaluating people readiness to success, measuring:
Competencies: Core and Technical according to the incumbent role.
Minimum job level requirements according to the incumbent role.
Immediate and Future Potential
Succession Information such as Risk to leave, impact of loss etc.
3Validate the
Readiness Form and Confirm
Succession Plan
1
Identify Potential Successors
Periodically Monitor and Update Succession Plan (HR and Employee’s Manager Responsibilities)
2Confirm /
Integrate Potential Successors list
4
Finalize Succession Plan
End of
Performalat cycle
EXECUTIVE SUMMARY
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Consistent and
Objective Evaluation
Group standardized
paperless system
Development and
Coaching Plans
based on actual needs
and requirements
identified in the
evaluation
More precise
alignment of our
compensation and
reward systems
More accurate identification of successors and
talents
Foster a culture
where decisions on
rewards and
recognition are
based on merit
Identification of
individual skills and
abilities
Better understanding
of our Human Capital
PERFORMALAT: BENEFITS FOR BOTH EMPLOYEES AND THE ENTIRE GROUP
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IMPROVEMENT AREAS
Employees’ needs:
Consistent and Objective evaluation
Appropriate rewards
Appropriate development initiatives
Parmalat Group needs:
Standardized approach in People Evaluation
and process
Build adequate rewards and succession plans,
career and development tracks, and talent
management
Simplified Human Capital Assessment and
Management
Simplified talent identification and development
NEEDS AND REASONS FOR CHANGE
Different approaches towards
Performance Management within
Parmalat Group
Difficulties in understanding and
managing Human Capital and Talents
inside and outside OpCos
Some OpCos completely lacked of a
structured Performance Management
system
Parmalat Group in the 2010 launched a program to develop a Performance
Management model & tool for its personnel worldwide, aimed to foster highly
engaged and empowered workforce, in order to outperform the competition.
PERFORMALAT: THE BUSINESS CHALLENGE
1 - Business Challenge
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Competencies
Y - Axis
Parmalat Core Competencies
Technical Competencies
Technical competencies will be
identified for all Parmalat
Professional Families. A subset of
3-5 competencies will be defined for
each role
1. Consistency with Parmalat Values
2. Leadership
3. Strategic Thinking
4. People Management
5. Result Orientation
6. Communication
7. Teamwork
Achievements
X - Axis
What – Objectives (60%)
From 2 to 4 quantitative objectives
will be identified
How – Behaviors (40%)
Evaluation of the employee
performance in the role, i.e. how the
employee “covers” the role.
Specifically this refers to how the
daily tasks, that are essential to the
position and are the reason why the
role exists, must be performed
Performance
Please note: X and Y axis have the same weight.
Com
pe
ten
cie
s
Achievements
Individual Performance is comprised of two main components: Achievements and
Competencies.
PERFORMALAT: THE MODEL – PERFORMANCE MANAGEMENT
2 – Performalat•Model•Process
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• Action Plan Form has been structured in the following 2
sections:
SECTION 1 - People Development:
• Development initiatives
• Training initiatives
SECTION 2 - Career Development and appointments.
Its structure describes the Group approach on the
Performalat Action Planning.
• Action Plan Guidelines offer to Leaders a framework to
enable the process of feedback and the planning of
future development, trainings initiatives, and career
development and appointments for the employee,
according to Performalat results and employee’s level.
• Discussion and sharing between Leader and Employee
on the Action Plan is crucial.
Employee’s Performalat Results Employee’s Action Plan Model
Definition of a detailed and agreed Action Plan for every single employee according to
the Parmalat Group approach.
+
Achievements
Co
mp
ete
ncie
s
Questionable
FitSolid
Learner
Top
Performer
Question
Mark
Above
Expectation
III
II
I Empty
PERFORMALAT: THE MODEL – ACTION PLAN
2 – Performalat•Model•Process
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The Succession Planning Model is managed from every Performance Cycle end, and aimed to find the right employee
to potentially success leaving or retiring people.
Successor should be identified for N, N-1 and N-2 and key positions / critical roles (e.g.. Cheese recipe maker)
The Employee personal info are a valid source of characterization for analyzing the person as a “successor”, so HR should continuously
invite the employee to self fulfill these fields
In order to guarantee a proper Succession Planning process deployment, it is necessary to fulfill the following information into the
Performalat “My Employee File”:
• Mobility
• Risk to Leave
• Reason for Leaving
• Impact of Loss
• Future Potential Rating
• Immediate Potential Rating
HR only is enabled to view and modify these information into the Employee File
The process of Succession Planning starts after the Year end Performance appraisal, when:
• The main dimensions of the employee performance have been evaluated and shared
• The employee Action Plan has been shared.
3Validate the
Readiness Form and Confirm
Succession Plan
1
Identify Potential Successors
Periodically Monitor and Update Succession Plan (HR and Employee’s Manager Responsibilities)
2Confirm /
Integrate Potential Successors list
4
Finalize Succession Plan
End of
Performalat cycle
PERFORMALAT: THE MODEL – SUCCESSION PLANNING
2 – Performalat•Model•Process
2 – Performalat•Model•Process
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Parmalat Group Performance Management Model is comprised of three
phases (Planning, Reviewing and Appraising) supported by a continuous
process of coaching .
Coaching and Feedback:
On-going process which takes place
throughout the entire Performance
cycle.
2. Performance Review:
In this phase the Employee’s
Achievements and
Competencies are reviewed,
through:
• Employee’s Self-assessment
• Leader’s assessment
• Consolidation
• Action Plan
1. Performance Planning:
This is the phase where the
following elements are defined:
• what is to be accomplished
(objectives)
• how daily tasks must be
carried out (behaviors)
• Technical Competencies
• Parmalat Core Competencies
.
3. Year-End Performance Appraisal:
Leader and Employee review, discuss
and share the performance appraisal
outcome and agree on future steps
Action Plan phase has been
included within the performance
management process
PERFORMALAT: THE PROCESS – PERFORMANCE MANAGEMENT
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Design new Performance Management model and processes
Select the suitable Talent Management suite by a choosing SuccessFactors as selected Software
Analyze, Configure and test the following SuccessFactors modules:
1. Goal management (objective setting)
2. Performance Management (competency and objective form management, workflow,...)
3. Employee Profile (es. organizational chart, employee profile)
4. Calibration (performance calibration activities management)
Four languages implemented: English, Italian, Spanish, French.
2011: Initially roll-out Performalat to Parmalat Group higher job positions (CEO, CEO -1 and CEO n-2)
and just for Corporate and Australia to all the white collars. 1.300 employees and 16 countries
involved.
2012: Extension to 5.500 employees and to Action Plan and Succession Planning modules.
PERFORMALAT: PROJECT SCOPE AND APPROACH
3 - Project Scope and Approach
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SuccessFactors is the system enabling Perfomance Management, Action Plan
and Succession Planning model and processes, by an user friendly interface
and effective features.
PERFORMALAT: THE SYSTEM - SUCCESSFACTORS
4 – System: SuccessFactors
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a
b
c
a
c
b
The Achievements vs Competencies Matrix is a custom report created for Parmalat
purposes. This report enables Leaders to view the cluster distribution of their team. For
each cluster will be able to see:
a) Number of employees belonging to the cluster
b) Percentage
c) Employee’s data.
Compared to other SF
reports, the launch of the
Achievements vs
Competencies Matrix
implies the prior uploading
of the necessary Trend
Data of the Leader’s team
employees.
Once uploaded the Trend
data the Leader will be able
to launch the report and to
see the distribution of his
team members in terms of
last Performance ratings.
PERFORMALAT: SUCCESSFACTORS – REPORTS ACHIEVEMENTS VS COMPETENCIES MATRIX
4 – System: SuccessFactors
4 – System: SuccessFactors
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Performalat Succession Plan Report:
This report is structured in the two
sections containing different information:
• Incumbent Section: This section includes
all the information about the incumbent.
• Nominee Section: This section includes all
the information about the nominee.
Incumbent First Name Incumbent Last Name Incumbent Local Job Role Job Classification Level Incumbent Risk to Leave Incumbent Manager First Name Incumbent Manager Last Name Nominee First Name Nominee Last Name Nominee Local Job Role
CARLO POLESE Group CIO 2b Low PIERLUIGI BONAVITA VINCE CAMPANELLI VP, Information Technology
CARLO POLESE Group CIO 2b Low PIERLUIGI BONAVITA RICCARDO PIAGGI Responsabile Organizzazione Gruppo
CARLO POLESE Group CIO 2b Low PIERLUIGI BONAVITA ENRICO FEREOLI Solution Manager
ANTONELLA RIGOLLI Responsabile Affari Societari 3 PIERLUIGI BONAVITA MONICA STRIZZOLO
ANTONELLA RIGOLLI Responsabile Affari Societari 3 PIERLUIGI BONAVITA TONY CUGLIARI VP, Legal Affairs & General Counsel
ANTONELLA RIGOLLI Responsabile Affari Societari 3 PIERLUIGI BONAVITA DARIA ANGELINI Internal Audit Senior specialist
ANTONELLA RIGOLLI Responsabile Affari Societari 3 PIERLUIGI BONAVITA LUIGI CHIARA
GIOVANNI DELL'AMICO Responsabile Ammnistrazione 3 Medium PIERLUIGI BONAVITA ALESSANDRO MAGNELLI
GIOVANNI DELL'AMICO Responsabile Ammnistrazione 3 Medium PIERLUIGI BONAVITA ROBERTO GUADAGNINI Direttore AFC
GIOVANNI DELL'AMICO Responsabile Ammnistrazione 3 Medium PIERLUIGI BONAVITA GIANNI CERQUETANI
Job Classification Level Date appointed in the local Job Role Nominee Performance Rating Label Nominee Future Potential Rating Nominee Immediate Potential Rating Nominee Risk to Leave Nomination Readiness Succession Initiatives
Executive&VP N/A Not Defined / Pending
3 N/A Medium A Medium Within 12 months kkkkkkkkkkkkkk
3 N/A Medium B Medium Not Defined / Pending kjcbkvwjnok
6 N/A Above Expectation Not Defined / Pending
Executive&VP N/A Within 24 months
5 N/A Low Within 12 months fafafafafafafafafafafaf
5 N/A Immediate
4 N/A Medium B Low Not Defined / Pending XXXXXXXXX
4 N/A Not Defined / Pending
4 N/A Not Defined / Pending
Successor Readiness Assessment Form :
This report contains all the information
needed for the HR representative and for the
Incumbent manager to evaluate the
readiness of the potential successors.
This report will also include
the Succession initiatives
defined for the potential
successor.
PERFORMALAT: SUCCESSFACTORS – SUCCESSION PLANNING
Succession Hierarchy
Employee
Successor Successor
HR
Employee’s
Leader
Role Description
Employee to be succeeded
Leader
Employee to be succeeded
Employee’s potential
Successor
HR Succession Planning User
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Pros
1 - Software as a Service (SaaS) consolidated experience and robust technologies (security,
performance, user friendliness)
2 - High rate of coverage vs Parmalat Performance Management requirements
3 - Quickness in implementing the system; easiness to configure the performance management workflow
and other features; effective project management and change management.
Cons
1 - Some effort to fit Successfactors configuration to Parmalat Performance management model
specificity, anyway everything has been worked out by workarounds.
2 – Managing the configuration Through virtual meetings and call conferences doesn’t guarantee a
quicker and more accurate effectiveness (SuccessFactors standard configuration workbooks
in some case can’t collect effectively specific requirements)
PERFORMALAT & SUCCESSFACTORS: PROS & CONS
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• The Forms
BACKUP
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Employee’s Information and
Introduction Section
Objectives and
Behaviour Section
Technical and Core
Competencies Sections
The Performance Management Form summarizes: Employee’s information, Objectives
and Competencies (Core and Technical) and the related comments. This Form is where the
Leader and the Employee will gather their own evaluations and represents the basis for the
whole Performance Cycle
PERFORMALAT: SUCCESSFACTORS –
PERFORMANCE MANAGEMENT FORM 4 – System:
SuccessFactors
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Employee’s Information and
Introduction Section
SECTION 1 - People Development:
A. Development initiatives
B. Training initiatives
SECTION 2
Career Development and appointments
The Action Plan is collected in a form called “Action Plan Form” which gathers the initiatives
identified for the Employee according to his last year performance overall results and job
level
PERFORMALAT: SUCCESSFACTORS – ACTION PLAN FORM
4 – System: SuccessFactors