Jan Willemse, Royal Philips Electronics - Philips Case Study

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Jan Willemse, Royal Philips Electronics - Philips Case Study

  1. 1. Continuous Innovation: The evolution of HR IT at Philips Jan Willemse IT Business Partner HR jan.willemse@philips.com HR Tech Europe 2013 1
  2. 2. Agenda • • • • About Philips The HR-IT Evolution 2007 – 2016 The HR-IT Strategy process Lessons learnt Confidential 2
  3. 3. Philips: A strong diversified industrial group leading in health and well-being Philips Businesses1, 2 Geographies1 Healthcare Consumer Lifestyle Lighting Western Europe North America Other Mature Geographies Growth Geographies3 43% 20% 37% 25% 31% 9% 35% Since 1891 €23.5 Billion $9.1Billion 8% of sales invested Headquarters in Amsterdam, the Netherlands 1 115,000+ People employed worldwide in over 100 countries Brand value in 2012 in R&D in 2012 59,000 patent rights, 35,000 trademark rights, 81,000 design rights Sales in 2012. Portfolio consists of ~70% B2B businesses Based on last twelve months sales June 2013 Excluding Central sector (IG&S) 3 Growth geographies are all geographies excluding USA, Canada, Western Europe, Australia, New Zealand, South Korea, Japan and Israel Note - Prior-period financials revised for discontinued operations, the adoption of IAS19R and for restatements included in the Annual Report 2012 (please refer to the Annual Report Confidential “Significant Accounting Policies”) section 12.10 2
  4. 4. At Philips we strive to make the world healthier and more sustainable through innovation We will be the best place to work for people who share our passion Together we will deliver superior value for our customers and shareholders Improving people‟s lives through meaningful innovation Confidential
  5. 5. Agenda • • • • About Philips The HR-IT Evolution 2007 – 2016 The HR-IT Strategy process Lessons learnt 2007 Confidential 2008 -2012 2013 -2016 5
  6. 6. 2007: Where we are coming from…. Business Strategy Process Strategy HR strategy process Organizational capability development • Workforce composition/analytics Processes Global reward • • • • Policy & guidelines Base salary (90+) Annual incentives Long term incentives Job grading Organizational management Local reward • Base salary (80-) • Equity programs Top recruitment Transfer services Talent management • Talent identification • Talent review • Succession planning HR Admin / Workforce Admin Payroll • Policy administration & execution • Time and attendance • Benefits admin • HRIS • Employee & manager self service • HR Vendor management • Regulatory reporting Performance management Learning • Product development • Consultancy for business HR • Deployment Employee engagement Local recruitment On/ off-boarding (Health & safety) Supporting processes Data management Management of HR Function Internal & external relations • Labor & Union relations HR Analytics/ Reporting HR Service Management • Workforce relations & communications • Call management • CRM HR Vendor management …a limited set of limited global processes… Confidential 6
  7. 7. Supported by a set of point solutions requiring a high degree of interaction • Systems not connected or integrated via limited interfaces • Much manual data re-entry, data inconsistencies, and bad user experience • Each country has its specific HR systems Confidential 7
  8. 8. 2008 – 2012 : Consolidation of global processes, core data and new HR Service Delivery • First global employee database • Data quality discipline in HR • Reliable people data feed to non-HR processes • ADP Global View implementation in 29 countries Confidential • Global „value add‟ processes based on SaaS solutions • Five HR Shared Service centers • Truly personalized HR Portal • Integrated back office support (telephony, case management, knowledge management, electronic personnel files)
  9. 9. 2012: The current landscape not up for the new reality “80s user experience” The world we work in is changing fast • Transaction-focused • Different user interfaces • Only PC-enabled Data challenges • Different data definitions • “Hidden data factory” • Mountain of data not used for analytics Adapt to a fast changing world Need to change HR processes and systems Not enabling Integrated Talent Mgt Workforce Workplace Lifestyle Talent Mgt • No sufficient insight, agility, efficiency and consistency in Talent Management processes Complex and expensive • Many interfaces • High cost • Low speed of innovation Confidential 9
  10. 10. Agenda • • • • About Philips The HR-IT Evolution 2007 – 2016 The HR-IT Strategy process Lessons learnt Confidential 10
  11. 11. 2012: Revise the HR-IT Strategy Key inputs to the definition of the HR IT Strategy: HR Strategic Priorities Current Challenges Key Objectives • Integrated Talent Management • Limited self-service functionality • Improved data quality, HR Reporting & Analytics • Multiple point solutions, poor integration • Enhanced self service capabilities Data Deliver the HR IT strategic vision• by quality and reporting capabilities • Improved customer experience • Landscape complexity and TCO deploying an architecture and services which satisfy the following strategic objectives: 1. Meet Key Functional Expectations 2. Deliver Reliable Customer Focused Solutions 3. Enhance Self Service & Data Access 4. Reduce Cost of HR IT Operations • Enhanced flexibility in HR applications 5. Provide an Integrated, Simplified & cost & simplify IT • Reduce • Integrated Talent Management solutions Proof Landscape • Enable E2E processes and growth Future • Self Service & Innovative User Interfaces • Deliver agile on demand services 6. Drive Global Scale • Wireless & Mobile technologies • Adopt innovative best of breed solutions HR IT Strategy HR IT Trends Confidential IT Strategic Priorities 11
  12. 12. HR IT Strategy – To Meet New reality and to Create Value The vision of the HR IT Strategy will deliver the following business value. The level to which it will delivers this, will depend on the chosen deployment scenario: Integrated Talent Management • Integrated and improved Talent Management functionality and tools will maximise HR and manager capability to acquire, reward, retain, and develop the right workforce Self Service • Improved manager and employee self service functionality, will improve the user experience and empower them to play a more active role in HR admin and HR value-add processes, whilst also reducing dependency on HR support Data Quality & Analytics • An integrated people data hub will support further improvement in both quality and availability of HR data for the organization. Supported by new reporting and analytics tools, this will enhance HR and manager decision making capabilities HR Process Improvement Reduced TCO Confidential • Implementation of a new HR IT architecture will be process driven, resulting in further optimization and standardization of HR processes • Through the simplification of the landscape and the efficiencies it will introduce, the delivery of the HR IT strategy will generate annual operational savings 12
  13. 13. Employe es 13 Recruitment: WorkDay Self Service Manager s Philips Enterprise HR portal including self-service Business Leaders Voice HR Clients Mobile devices Consolidate many different platforms into ONE Absence PPM Learning: Philips University OM Global Assignments Reporting Analytics Reward Mngt Talent Mngt Workday Non HR systems HR Admin & Data Hub Core HR & Talent Mng ADP Time ADP/NGA Payroll Other country Payroll Other Payroll & local HR systems Self Service Call and Case Management E-Filing, Document Management Shared Service Process layer Supporting and enabling the end to end transformation of the HR organization Confidential 13
  14. 14. Introduction to Customer Value Prototype (CVP) A rigorous, auditable process to ensure we have the evidence to make a program go/ no go decision • Conducted 9 key business and stakeholder interviews • Identified proof points and key questions • Iterative approach to develop prototype • Auditable evaluation • Core team of 18 participants from across Europe and North America • Mobilised global work group 4 weeks Scope definition and mobilisation Kick off workshop 3 x Iteration workshops • 6 business scenarios • 3 iteration workshops with over 40 participants • 7 Workday SMEs • 128 detailed scenario steps were assessed • Undertook the partner RFP process • 5 HR reporting requirements were addressed • 27 program and solution validation workshops • 6 customer & supplier reference calls occurred Executive showcase and consolidation • Final check point to review outstanding actions • Sign-off the next steps • Initial prototype checkpoint • System testing in multiple geographies • Next steps identified to enable Go/No Go decision • 24 key questions were addressed Confidential 14
  15. 15. We have tested six end to end critical scenarios against business and IT proof points within the HR IT landscape Confidential 15
  16. 16. We have tested six end to end critical scenarios against business and IT proof points within the HR IT landscape Key Inputs CVP Scope Business Scenarios  External hire & on-boarding  Performance Management  Calibration  Objective Cascading  Leave request  Sick leave  OM/ reorganisation /mass change  Personal details/ self-service Combining the key questions with the outcome of the scenarios provided a full and comprehensive picture of the Workday solution and program. Confidential 16
  17. 17. This thorough decision process took 15 months Phase 1 Q1, 2012 Overall Strategic Intent High Level Delivery Scenario Analysis Vision  Approach  Review of current HR Strategy  Participants  IT Strategy Review  Planning  HR IT Trend Analysis  Pain-points  Issue Review & Root Cause Analysis  Market/Vendor Research  Definition of HR-IT Strategy principles  Multiple vendor workshops with each vendor on :  Capabilities  Implementation scenarios  Cost  Cost Breakdown of Current Situation & All Scenarios  Agreed HR IT Strategy, Vision, Mission and Objectives  Workday and SAP / SuccessFactors deployment scenarios to be further investigated  Team to be widened to involved additional HR representation Phase 2 Phase 3 Q2 & Q3, 2012 Q4 2012, Q1 2013 Overall Strategic Intent  Multiple vendor workshops HR LT Briefing & Final Decision Contract Negotiation Customer Value Prototype HR LT Briefing  Cost Breakdown of Current Situation & All Scenarios, including Transition  Strategy Update  Commercial  Vendor Demo  Terms & Conditions  System  User Experience workshop with CoEs, HR BP and Managers  Next Steps Discussion & Proposal  Service Level Agreements  Business  Strategic Relationship  Program  Functional capabilities workshops with CoEs and PPS  Transition scenarios  Long term roadmap and strategy with vendors  Key Questions  Architecture Final Decision  Strategy Update  Workshops  Executive Showcase  Go/ No-go decision  Customer references Confidential 17
  18. 18. So the HR journey continues… We launched the HR Digital program to transform the business Our current HR processes and systems are not effective enough and do not meet the growing demand for an easier user experience, more precise people data and integrated, End-to-End Talent Management processes. Workday will be our new Global Philips HR system that empowers users with a modern user interface, more precise people data and integrated talent processes in order to enable our HR vision and serve our clients in the most optimal way 1 2014 Core HR Global 2 2014 Talent Management Global 3 2014-2016 Full suite 35 countries Whilst there will be cost benefits, the real value of the new solution results from focus on our business, supporting our new culture and future generations Confidential 18
  19. 19. Agenda • • • • About Philips The HR-IT Evolution 2007 – 2016 The HR-IT Strategy process Lessons learnt Confidential 19
  20. 20. Our journey has taught us many lessons Leadership Involvement Business Priorities • Ensure active HR and IT top leadership support and participation from the start and throughout the entire process • Clear guidance and alignment from HR upfront is critical in terms of their priorities. Revisit this throughout the entire process Strategic priorities Contract Negotiations • Solutions can meet most requirements, select a small critical subset for prototype test. Focus on strategic priorities for a strategic choice in RFP • Negotiating a SaaS contract will take longer than expected. Many changes to our traditional expectations. Validate your selection Key Lessons Selecting your partner • Before signing, validate key proof-points in a prototype that focuses on your organisation (not a highly configured sales demo). Involve all stakeholders • Experience is limited on the most innovative modern solutions. Demand is high (and tariffs). Know and validate the team your partner puts forward Change will occur HR and IT • Be prepared to revise decisions and incorporate change when business priorities, technology market, or project status requires to do so • And of course full cooperation and trust between HR and IT is essential Confidential 20
  21. 21. Questions Confidential 21
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