CASE STUDY SuccessFactors helps Siemens have the right people, in the right job, at the right time Siemens AG (Berlin and Munich) is a global powerhouse in electronics and electrical engineering, operating in the fields of industry, energy and healthcare as well as providing infrastructure solutions, primarily for cities and metropolitan areas. For over 165 years, Siemens has stood for technological excellence, innovation, quality, reliability and internationality. The company is the world’s largest provider of environmental technologies. Around 40 percent of its total revenue stems from green products and solutions. In fiscal 2012, which endedSiemens AG on September 30, 2012, revenue from continuing operations was €78.3Berlin and Munich, Germany billion and income from continuing operations was €5.2 billion. At the end ofwww.siemens.com September 2012, Siemens had around 370,000 employees worldwide on theEmployees: basis of continuing operations.370,000Industry:Technology Challenge As a market leader across a range of sectors and geographies, Siemens needs toRegion: constantly recruit, develop and retain a highly skilled workforce as diverse as theGlobal, 190 countries company itself. Plus, in a highly competitive market, the war for the “right” highSuccessFactors Solutions: value talent is fierce.• Performance & Goals• Compensation The senior HR leadership team knew that sourcing, rewarding and keeping the• Succession & Development right people was critical to Siemens’ success. In 2008, Siemens was on the• Recruiting cutting edge of a new global transformation strategy designed to enhance the• Learning employee experience across all the major talent functions. The company wasCustomer Since: committed to embed a new standard for world-class recruiting, systematic2009 development, remuneration and retention of their global talent pool. However, it was clear that Siemens’ heterogeneous landscape of HR systems – which included a disparate mix of home-grown and vendor solutions – would be a significant handicap to success.
SUCCESSFACTORS /CASE STUDY Siemens AG “Managers with cross-border teams had to access information across multiple systems. There was no standardization of processes and we had no global insight for development and workforce planning,” says Dr. Jürgen Siebel, Head of Employee Development. Siemens needed a global HR infrastructure that was harmonized with integrated systems for all people processes across the company. HR and business leaders needed one master database on which to base accurate decisions. In addition, Siemens needed a common language for matching competencies, evaluating performance, and“SuccessFactors has become the global IT ensuring transparency across the entire company. standard for our core HR processes, and Recruiting and People Development.” Solution SuccessFactors worked with teams across Siemens HR and with Dr. Norbert Kleinjohann, Siemens’ Chief Information Officer, to help them drive their ambitious transformation. “We evaluated around 50 vendor solutions,” comments Kleinjohann. “We selected SuccessFactors because it is a truly global, proven tool that could integrate all our people processes. It was easy to use, agile enough for fast implementation and offered flexibility to adapt along the way.” Dr. Norbert Kleinjohann The result was “4Success”, the branded global platform that included all the CIO, Siemens AG revamped tools and people processes from SuccessFactors, including: Recruiting, Performance & Goals, Calibration, Succession & Development, Compensation Planning and Learning. Starting in October 2009, the Siemens team rolled out a tailor-made Performance Management Process (PMP) to 44,000 employees in 190 countries. The PMP comprises one-to-one target setting and feedback, as well as performance reviews, called Round Tables. These sessions are attended by management from across the business and HR, and are designed to validate performance evaluations. By March 2011, more than 120,000 employees were using the tool. The other SuccessFactors modules have since been integrated, so that Siemens´ entire workforce of 370,000 is using 4Success. Recruiting, for example, now powers efficient and intelligent processing of both internal and external candidates. SuccessFactors is now advising Siemens on the development of a sophisticated suite of reporting and analysis tools to support management in their decision- making, and add value to the overall business strategy.