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  • Arinso International engages in 3 main businesses: HR Integration: Setup systems foundations, streamline processes & optimize work environment HR Operations: Helping Clients Build more HR Value HR Strategy: Transforming HR Management to deliver Business Strategy
  • HR information systems integration ERPs (SAP, Oracle, PeopleSoft, Meta4, …) Implementation The regional and highly regulated nature of HR makes it one of the most difficult areas to implement multi-country ERP solutions. Through its global presence and HR focus, ARINSO has become the preferred partner for large HRMS implementation projects. In most key markets and industries, ARINSO can match local regulatory knowledge with technical expertise, giving it a reputation for cost-effective and timely implementations. As a result, clients are successfully moving HR from a local country level to their global business lines. Integration Integrating ERP with legacy systems and web-based applications is a major challenge for any large organization. ARINSO is highly experienced in Enterprise Application Integration (EAI) and can guide you through this process from conception to implementation. This ensures that you have a reliable foundation to open up your HRMS to all employees in assigned roles and tasks. Through strategic partnerships, ARINSO has direct access to technologically advanced platforms, allowing it to offer integrated solutions to meet its clients' changing needs. e-HR e-HR brings corporate strategy to life. Staff can take up responsibility for their personal and managerial day-to-day processes from ordering office supplies to signing up for a specific training. This involves much more than a technological change - it radically alters the company's way of doing business. Self-service portals can reduce administration costs and generate a measurable ROI in a matter of months. But above all, e-HR will take away a lot of frustration, both at the management and employee level - as the speed and quality of information increase exponentially. Enterprise Portals (Tibco, SAP Portals) ARINSO brings e-HR "live" through an Enterprise Portal. With this model, interactive services are offered to employees through a web portal that is context-sensitive and based on role, development needs, and personal details and interests. Managing the cultural change of introducing these HR Portals is a key success factor for ARINSO.
  • HR Information Systems Strategy Consulting: Transforming HR Management to deliver Business Strategy HR Business Analysis In the field of HR Business Analysis Arinso helps organizations to define their HR metrics, in order to provide a benchmark against peers and a baseline for Return on Investment Calculation of new HR service delivery models. Key Performance Indicators enable HR organizations to measure ongoing business improvement, rather than relying simply on best efforts HR Process Improvement We offer HR Process Improvement, which means conducting a study in collaboration with the in-house HR organization, identifying those HR processes that should be retained, redesigned or eliminated. We identify best practices to help our clients achieve higher effectiveness and efficiency in HR. HR Transformation Management Transformation Management is all about ensuring a seamless movement from the "as is" situation to the "to be" situation, as new strategies are implemented. This involves identifying problem areas, tackling bottlenecks, building relationships of trust and implementing action plans.
  • HR Operations HR departments can spend up to 80 percent of their time on routine administrative activities such as payroll, benefits, pension, information management and communication. A significant gap between workload and perceived value leads to overworked and under-appreciated HR departments. In our Delivery Model, HR Shared Services Centers (HRSC) save valuable management time, adding value across the company while reducing overall HR administrative effort and cost. For our customers, HR administration is not their core business. ARINSO can take on these HR administrative tasks, from running payroll to managing complex benefits programs. Our scaleable approach to outsourcing will help set client priorities, as both Business Process Outsourcing (BPO) and Technical Business Process Outsourcing (TBPO) offer significant opportunities in terms of higher HR service levels and lower operating costs.
  • Arinso-2004

    1. 1. AR IN SO in France Best in France Case Study September 2003 - May 2004 <ul><li>Team MBA BSi: </li></ul><ul><li>Rachel ROSA </li></ul><ul><li>Martial FEVRIER </li></ul><ul><li>José R. VALENZUELA </li></ul><ul><li>Christophe VANIER </li></ul>
    2. 2. Purpose <ul><li>The Best in France case study aims at : </li></ul><ul><li>Identifying what adaptations firms must make when opening business units in France, </li></ul><ul><li>Assisting students, companies and government ministries by identifying and benchmarking managerial strategies that add value to the French economy and to firms operating in France, </li></ul><ul><li>Creating a database of the detailed studies, available to the participating firms. </li></ul>
    3. 3. Executive Overview <ul><li>Success Story & Key numbers </li></ul><ul><li>Ar in so Business Model </li></ul><ul><li>Company Products </li></ul><ul><li>Operating Strategy </li></ul><ul><li>Ar in so Clients </li></ul><ul><li>Why did Ar in so come to France </li></ul><ul><li>Ar in so values in France </li></ul><ul><li>Constraints in France </li></ul><ul><li>Adaptation to France </li></ul><ul><li>Key Costs of France </li></ul><ul><li>Key Benefits of France </li></ul><ul><li>Ar in so ’s Essential Advice </li></ul>
    4. 4. Arinso Success Story <ul><li>1994 : creation of AR gus IN tegrated SO lutions in Belgium by Jos Sluys (former SAP executive) </li></ul><ul><li>Creation of international subsidiaries </li></ul><ul><ul><li>1996 : France , Nederland </li></ul></ul><ul><ul><li>1997 : USA, Luxemburg </li></ul></ul><ul><ul><li>1998 : UK, Canada and Spain </li></ul></ul><ul><ul><li>1999 : Italy </li></ul></ul><ul><ul><li>2000 : Germany, Portugal, Morocco, Argentina, Mexico, Brazil, Asia-Pacific (Singapore, Malaysia, Thailand) </li></ul></ul><ul><ul><li>Swiss, Sweden, Finland, Poland (October 2003 ) </li></ul></ul><ul><li>Gone public in 2000 (Euronext Brussels: ARIN) </li></ul>
    5. 5. International Coverage 22 Countries on 5 Continents
    6. 6. Key Corporate Numbers <ul><li>10 years of existence </li></ul><ul><li>22 countries of operation </li></ul><ul><li>1300 Employees Worldwide (1 77 in France) </li></ul><ul><li>121 M€ turnover * (France #1 with 25M€) </li></ul><ul><li>11% EBIT * (to sales) </li></ul>* Annual Report 2002
    7. 7. Ar in so Business Model 7% 45% 1% 89% 45% 15% 4% 10% 10% <ul><li>22 countries, 1 business model, 3 key activities: </li></ul><ul><li>HR systems integration </li></ul><ul><li>HR Operations </li></ul><ul><li>HR Strategy </li></ul><ul><li>French affiliate: </li></ul><ul><li>Sales breakdown today </li></ul><ul><li>( total sales 25M€ ) </li></ul><ul><li>Target breakdown </li></ul><ul><li>Market share </li></ul>
    8. 8. Ar in so Products/Services <ul><li>HR IS Integration: Ar in so is an established partner of the leading providers of HR management solutions </li></ul><ul><li>ERP: Establishing the foundations </li></ul><ul><ul><li>Implementation </li></ul></ul><ul><ul><li>Integration </li></ul></ul><ul><li>e-HR: Streamlining administrative processes </li></ul><ul><li>Enterprise Portals: Optimizing work environment </li></ul>
    9. 9. Ar in so Products/Services HR Strategy: Transforming HRM to deliver Business Strategy <ul><li>HR business analysis </li></ul><ul><li>HR process improvement </li></ul><ul><li>Transformation management </li></ul>
    10. 10. Ar in so Products/Services HR Operations: Helping clients build more HR value <ul><li>HR Shared Service Centers (HRSC) </li></ul><ul><li>HR Technical Business Process Outsourcing (TBPO) </li></ul><ul><li>HR Business Process Outsourcing (BPO) </li></ul>
    11. 11. Operating Strategy <ul><li>Products: </li></ul><ul><ul><li>Software tools (global offer) </li></ul></ul><ul><ul><ul><li>Design in Belgium </li></ul></ul></ul><ul><ul><ul><li>Coding & maintenance in Malaysia (lower labor costs) </li></ul></ul></ul><ul><ul><li>Bespoke developments (sold in France) </li></ul></ul><ul><ul><ul><li>Local design </li></ul></ul></ul><ul><ul><ul><li>Coding in Morocco, India, Malaysia (lower labor costs) </li></ul></ul></ul><ul><li>Services sold in France: </li></ul><ul><ul><li>HR Strategy consulting  Locally </li></ul></ul><ul><ul><li>HR Integration consulting  Locally </li></ul></ul><ul><ul><li>HR Operations </li></ul></ul><ul><ul><ul><li>HR Shared Service Centers  Atlanta, Brussels </li></ul></ul></ul><ul><ul><ul><li>Business Process Outsourcing  US ( Atlanta ), CAN (Montréal ), SPAIN ( Barcelona Call center ) + Shared Service Centers </li></ul></ul></ul><ul><ul><ul><li>Technical Business Process Outsourcing  US ( Atlanta ), BEL ( Brussels ) </li></ul></ul></ul>
    12. 12. Clients <ul><li>Who are they? </li></ul><ul><ul><li>Big multinational groups </li></ul></ul><ul><ul><li>Local companies </li></ul></ul><ul><li>What do they expect? </li></ul><ul><ul><li>HR Transformation: </li></ul></ul><ul><ul><ul><li>Systems </li></ul></ul></ul><ul><ul><ul><li>Organization </li></ul></ul></ul><ul><ul><ul><li>Processes </li></ul></ul></ul><ul><ul><li>Better value at lower cost </li></ul></ul><ul><li>How a presence on the French ground helps satisfying customers? </li></ul><ul><ul><li>Requirement to know the French HR regulations </li></ul></ul><ul><ul><li>Minimize cultural gap (for sales & consulting) </li></ul></ul>
    13. 13. Clients <ul><li>Arinso counts 90+ clients in Fortune Global 500 </li></ul>
    14. 14. Clients: Some Big Names
    15. 15. Why coming to France? <ul><ul><li>Demand from global clients for Ar in so to roll-out projects for all of their affiliates  international expansion plan </li></ul></ul><ul><ul><li>Belgian market would have quickly become too small </li></ul></ul><ul><ul><li>French market was big & new (and need to be in France to deal with French customers) </li></ul></ul><ul><ul><li>Proximity </li></ul></ul><ul><ul><ul><li>Geography </li></ul></ul></ul><ul><ul><ul><li>Language </li></ul></ul></ul><ul><ul><li>Being in France seemed a must for a company with international ambitions </li></ul></ul>
    16. 16. Company values <ul><li>Core values: </li></ul><ul><ul><li>Value creation </li></ul></ul><ul><ul><li>Harmony </li></ul></ul><ul><ul><li>Humility </li></ul></ul><ul><li>Anticipated conflicts with France: Humility vs French culture </li></ul><ul><li>Verified good fit with France: Value creation (from the education system obviously ; French university) </li></ul>
    17. 17. Company values <ul><li>Values instilled in France the same way as anywhere else: </li></ul><ul><ul><li>Through the personality of the charismatic founder & CEO </li></ul></ul><ul><ul><ul><li>Customer-oriented, efficient, hardworking, … </li></ul></ul></ul><ul><ul><ul><li>Academy-type management, clear communication, … </li></ul></ul></ul><ul><ul><ul><li>Close to the base, always flying in economy class, … </li></ul></ul></ul><ul><ul><li>Through the structure of the organization </li></ul></ul><ul><ul><ul><li>Flat, reactive, identifying & rewarding potentials, dropping dead weights, … </li></ul></ul></ul><ul><ul><ul><li>Homogeneity in organizational structure, business model and bonus plan structure across countries, … </li></ul></ul></ul>Jos Sluys
    18. 18. Constraints in France <ul><li>Expected constraints: Costs </li></ul><ul><ul><li>Structure </li></ul></ul><ul><ul><li>Labor </li></ul></ul><ul><li>Some more discovered after settlement </li></ul><ul><ul><li>Rigidity of labor regulations (increased even more since 1996) </li></ul></ul><ul><ul><li>Employer-Employee relation not easy to manage </li></ul></ul><ul><ul><li>Poor language skills of French professionals (even young grads) </li></ul></ul><ul><ul><li>More requirements from young graduates: </li></ul></ul><ul><ul><ul><li>compensation & benefits (1999-2001) </li></ul></ul></ul><ul><ul><ul><li>little flexibility (still true) </li></ul></ul></ul><ul><ul><li>Backing of the value “labor” in the French society </li></ul></ul><ul><li>Worst constraints </li></ul><ul><ul><li>Labor costs (35hrs/week) </li></ul></ul><ul><ul><li>Lack of of flexibility and decrease of professional commitment </li></ul></ul><ul><ul><li>Operations management made more complex from 35 hrs/week </li></ul></ul>
    19. 19. Constraints in France <ul><li>Difference with other locations </li></ul><ul><ul><li>Labor costs: Profit margin </li></ul></ul><ul><ul><ul><li>France/Luxemburg = 1/5 </li></ul></ul></ul><ul><ul><ul><li>France/Belgium = 1/4 </li></ul></ul></ul><ul><ul><ul><li>France/Holland = 1/4 </li></ul></ul></ul><ul><ul><li>215 workdays/yr in France vs 240 in the majority of the rest of Europe </li></ul></ul><ul><ul><li>Far better flexibility in the UK, Holland, Belgium… </li></ul></ul><ul><ul><li>Labor regulations and social environment better than France anywhere else apart from Italy and Germany </li></ul></ul><ul><li>Lost opportunities outside France? Why? </li></ul><ul><ul><li>Not competitive on labor costs </li></ul></ul><ul><ul><li>Poor language skills </li></ul></ul><ul><ul><li>Low flexibility of employees and need more coaching abroad </li></ul></ul>
    20. 20. Adaptation to France <ul><li>Recruitment/Selection </li></ul><ul><ul><li>Errors cost much  recruitment process kept internal </li></ul></ul><ul><li>Compensation </li></ul><ul><ul><li>Implementation of attractive packages (company car, stock-options, profit-sharing) </li></ul></ul><ul><ul><li>Increase of the variable part of remuneration for some positions </li></ul></ul><ul><li>Management Development </li></ul><ul><ul><li>Setup of a middle management </li></ul></ul><ul><ul><li>Good technical culture need to be more Project cultured (most projects are fixed-price nowadays)  Training on Project Management </li></ul></ul><ul><li>Workforce Planning </li></ul><ul><ul><li>Recruitment: Quarterly plan </li></ul></ul><ul><ul><li>Management succession: No planning </li></ul></ul><ul><ul><li>Delocalization of low-margin activities abroad (near-shore / off-shore) </li></ul></ul>
    21. 21. Adaptation to France <ul><li>Motivation </li></ul><ul><ul><li>Initiation of a career plan process </li></ul></ul><ul><li>Communication policies </li></ul><ul><ul><li>External: PR agency </li></ul></ul><ul><ul><li>Internal </li></ul></ul><ul><ul><ul><li>Formal “Company” or “Business Unit” meetings </li></ul></ul></ul><ul><ul><ul><li>Informal get-together evenings (restaurant, bar, cultural event, …) </li></ul></ul></ul><ul><li>International transfers, use of expatriates </li></ul><ul><ul><li>20 French employees abroad / 180 </li></ul></ul><ul><ul><li>Lots of impatriates (international projects on the French ground) </li></ul></ul><ul><ul><li>Training of Moroccan technical engineers in France </li></ul></ul><ul><li>Training </li></ul><ul><ul><li>Quite substantial training budget (Structural & cultural expectation for training and career development in France) </li></ul></ul>
    22. 22. Key Costs of France <ul><li>HR type costs </li></ul><ul><ul><li>Hiring </li></ul></ul><ul><ul><li>Paying </li></ul></ul><ul><ul><li>Training </li></ul></ul><ul><ul><li>Dismissing </li></ul></ul><ul><li>Structural Costs </li></ul><ul><ul><li>Offices </li></ul></ul><ul><ul><li>Taxes </li></ul></ul><ul><li>Communication constraints </li></ul><ul><ul><li>Poor foreign language skills </li></ul></ul><ul><li> </li></ul>
    23. 23. Key Benefits of France <ul><li>Product/Service quality </li></ul><ul><ul><li>Very high productivity (education, mindset, behavior) </li></ul></ul><ul><ul><li>“ Must” country for customer image </li></ul></ul><ul><li>Revenue/profit </li></ul><ul><ul><li>Revenue increase </li></ul></ul><ul><ul><li>Profit decrease </li></ul></ul><ul><ul><ul><li> Re-positioning on high value-added activities </li></ul></ul></ul><ul><ul><ul><li> Watch out for structure costs </li></ul></ul></ul><ul><li>Location benefits </li></ul><ul><ul><li>quality of life (impatriates do not wish to leave France) </li></ul></ul><ul><li>Market Potential </li></ul><ul><ul><li>customer demands for cultural adaptation of product(s) </li></ul></ul>
    24. 24. France vs Corporate Figures of 2002
    25. 25. Essential Advice <ul><li>Before coming to France </li></ul><ul><ul><li>Project & analyze profit margin (operating costs : costs of sales + other expenses ) </li></ul></ul><ul><ul><li>“Paris vs. rest-of-France ?” </li></ul></ul><ul><li>Adaptation while in France </li></ul><ul><ul><li>Capacity to adapt to regulatory constraints </li></ul></ul><ul><ul><li>Prudence and anticipation (small errors can have greater consequences than in any other country) </li></ul></ul>
    26. 26. We Thank <ul><li>Denis TOURNESAC , Managing Director Arinso France, [email_address] </li></ul><ul><li>Catherine AIELLO , Finance & HR Director France, [email_address] </li></ul><ul><li>Olivier CARPENTIER , Operations Director France, olivier [email_address] </li></ul><ul><li>AR IN SO France </li></ul><ul><li>Espace 21 </li></ul><ul><li>31, Place Ronde </li></ul><ul><li>F-92986 Paris La Défense 7 </li></ul><ul><li>Tel: +33 (0)1 49 00 31 31 </li></ul><ul><li> </li></ul>
    27. 27. Bibliography <ul><li>References: </li></ul><ul><ul><li>Ar in so website </li></ul></ul><ul><ul><li>http://www. arinso .com </li></ul></ul><ul><ul><li>Ar in so Annual report 2002 pdf </li></ul></ul><ul><li>Appendix </li></ul><ul><ul><li>Questionnaire </li></ul></ul>
    28. 28. Our Team <ul><li>Rachel ROSA, rachel . rosa @ mailhec .net </li></ul><ul><li>Martial FEVRIER, [email_address] </li></ul><ul><li>José Ramon VALENZUELA, ramon [email_address] </li></ul><ul><li>Christophe VANIER, christophe [email_address] </li></ul><ul><li>HEC School of Management </li></ul><ul><li>1, Rue de la Libération </li></ul><ul><li>78351 - Jouy en Josas Cedex </li></ul><ul><li>Tel: +33 (0)1 39 67 70 00 </li></ul><ul><li> </li></ul><ul><li> </li></ul>
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