Towards a global learning organisation in a cyclical economical context

Christian Standaert

General Manager ArcelorMittal University

London – 11 February 2011

Present in more than 60 countries

ArcelorMittal 2010 key figures

An integrated leader of the metals and mining sector

281,000 employees in more than 60

countries

15%

12%

9%

16%

7%

17%

24%

EU15

Rest EU (EU27)

Other European countries

North America

South America

Asia

Africa

16%

61.0 78.0

5.6 8.5

(1.5) 3.6

69.6 85.1

71.6 90.6

2009 2010

Net income/

(US$ billion)

Sales

(US$ billion)

EBITDA

(US$ billion)

Shipments

(million tonnes)

Operating income/ /(loss) (US$ billion)

Steel production

(million tonnes)

0.2 2.9

CST

ArcelorMittalThe result of numerous mergers…

Global acquisitionUpstream integration

Consolidation EuropeDownstream Integration

Regional leadership Eastern EuropeIncrease presence in Asia and Africa

Regional leadership South Am.Leadership in value added

Leadership in value added

Capture growth and increase presence in growing market

Continued consolidation:

ArcelorMittal University

The New Campus

Mission & Objectives of ArcelorMittal University

Transforming tomorrow through the development of all our employees.

Build the ArcelorMittal culture and share best practices

“Grow” our own future leaders

Attract, retain and develop talent

Target the excellence in functional expertise

Increase networkingBring support to local training centres

AMU Statistics

• A strong emphasis on distant learning as a low cost solution per user.• Re-installed and redesigned key programmes supporting talent

retention, career development and skills upgrade slightly increased.

0

5000

10000

15000

20000

25000

30000

35000

pre-merger

2007 2008 2009 2010 2011

Language

Online Learning

Steel & Mining

Management & Functional

Induction & Leadership

#people trained

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

pre-merger

2007 2008 2009 2010 2011

Language

Online Learning

Steel & Mining

Management & Functional

Induction & Leadership

#mandays of training

Budget and Headcount at AMU

• Budget in USD, without re-invoicing taken into consideration.• Budget optimised to create a sustainable situation.• Budget still considerably lower than in 2007, with a huge increase in

mandays.

2006 2007 2008 2009 2010 2011

Bu

dg

et

0

5

10

15

20

25

FT

E A

MU

Operating Expenses

Thematic Conferences, Lunch &Learn, Ulearn

Elearning

Steel & Mining Academy

Functional Academies &Customized Training

Management Programmes

Leadership Programmes

Special projects & On Boarding

Team

What we learned from the 2008/2009 crisis

A Focus on the FutureLearning and Development in 2011 – Duke CE’s Client Study

The ‘perfect storm’ in 2008/2009

– Budget cuts required L&D be done with significantly fewer resources

– Travel restrictions contributed additional impetus to finding new ways to enable employees to learn

– Improvements in learning technology offered new methods of achieving learning in impactful and cost-effective ways

Talent Pipeline Programmes 2007/2008Explore , Challenge , Pioneer

Selection ProcessProject Presentation

Project Design Pre-readings and e-

learning

Training

E Learning modules

« Virtual » Conferences with

internal Guest Speakers

Challenges launched by key AM leaders

→ Change Management

→ Results Orientation

→ Coaching & Communication

→ Sustainable cost reduction

→ H&S

→ Teamwork

→ Strategic Thinking

→ Cross-culture

→ Wide variety of themes → Real challenges facing the group

→ Best proposals can be implemented in 2010

Recognizing Potential in 2009

Talent Pipeline Programmes in 2010

• Learning from 2009– Much of the learning could be provided through e-learning paths.– Webinars are a cost effective and engaging means of connecting

with experts.– Classroom could mainly focus on

• Discussion on application challenges• Contact with GMB and MC• Networking• Discovering “Self”

– Projects could be efficiently organized once people are ‘connected’.

• Talent Pipeline Programmes are being redesigned in 1 week modules, complemented with e-learning paths, webinars and a project.

How Technology changes the Paradigm

Size of target audience“Reach”

“Richness of content”

Technology driven

Negotiation with vendors

Cost per license (in USD)

2006 2007 2009 2011

Lunch & Learn 90 minutes session, focused on Leadership and Management topics. It will

be managed locally. 15-20 participants who will watch a broadcast and discuss openly about the topic. The facilitator will get guidelines and the material to run the session.

Thematic Conferences

These conferences will be led by internal speakers. The first sessions will beorganised in Luxembourg but the idea is to extend this initiative to other locations.

Going Global

Grow with us

Towards a Global Learning Network

ArcelorMittal University

Regional Training Centres of Excellence

Local Training Units

ArcelorMittal UniversityArcelorMittal University

Regional Training Centres of ExcellenceRegional Training Centres of Excellence

Local Training UnitsLocal Training Units

Training Design by ArcelorMittal University

Designing Large programmes– ACT Project - Galati– Career Accelerator Programme– Finance Future Leaders Programme– Maintenance Project in Annaba and Morocco

Helping the creation of online modules :e-Sourcing Tool, e-GEDP, HR 101…

Training the trainers– Train occasional trainers course– Training Engineering course

Setting up new and innovative learning methods– Health & Safety game– World Class Manufacturing

A few examples

Career Accelerator Programme-I-CAP NEW !!! 2 years blended learning programme, launched every 6 months in different locations,

collaboration between AMU, Finance Academy and Internal Assurance Academy

CIS-Finance Future Leaders Programme 18 months programme for developing the succession pipeline for Finance in CIS 17 participants for Wave 1; Excellent feedback ; graduation ceremony 9 th Feb. 2011 Wave 2 launched in December 2010 in Ukraine and will be launched soon in

Kazakhstan early 2011 Programme structure copied to other locations and other functions

CTO – FCE Leadership programme NEW !!! 1 year curriculum designed by AMU & sponsored by CTO – FCE 60 participants trained in Project Management and soft-skills in Luxembourg Blended learning curriculum including online modules and classroom sessions

CFO Programme NEW !!! AMU (and Finance Academy) designed programme ; Pilot starts in Feb 2011 Sponsored by Aditya Mittal 1 year programme that targets all ready now candidates on Tier 1 CFO Succession

plans Programme is a “blended-learning” approach that uses classroom interventions (by

Duke CE), Internal Case Studies, Guest lectures and e-modules.

Questions & Discussion

Thank You