Martin Ratelband, B/E Aerospace - Debunking the Myths of HR Technology


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  • Good morning.My name is Martin Ratelband. I was born and raised in the Netherlands. I have a masters degree in Law as well as an MBA. I spent the first part of my career in the Netherlands, where I worked for 10 years at the Department of Defense, followed by a career as Sr. Consultant and Practice Leader Compensation and Benefits with the HayGroup. During my tenure at HayGroup I wrote a book on compensation targeted at middle managers. I continued my career with Haygroup in Canada and later on in the US. After leaving the HayGroup in the US, I worked for international organizations. I currently work for B\E Aerospace. Why am I here? Obviously I cannot easily pass up an opportunity to visit Amsterdam and my home country. More importantly, I have a desire to share with you my experience regarding HR technology. Technology can help us and hinder is. Think about this, being in Amsterdam: what is the optimal technology to get from A to B? (pause) Is it a car, trolley, scooter, bicycle, train or going by foot. The answer: it all depends. How far do you have to go; what do you need to carry with you; who is going with you; are you traveling during rush hour; is cost an issue?Technology can be tempting as it unlocks opportunities so far not available to us. It can easily become a myth for resolving all existing and future problems. It is so tempting,that it can easily drive our decision making as HR professionals, with HR implementing the best methodologies, however without resolving the most critical business challengesI am a firm believer that HR should drive technology, rather than technology driving HR.In this presentation I will take you on B\E Aerospace’s journey in what it meant for us to use an HR driven technology approach. I like to explore with you:What were we facing in 2011 and what did we do about it?Where are we now in 2013?What do we envision for the near future?
  • B/E Aerospace is the world’s leading manufacturer of aircraft cabin interior products and the world’s leading distributor of aerospace fasteners and consumables.B/E Aerospace designs, develops and manufactures a broad range of products for commercial, business jets and military aircraft. B/E Aerospace manufactured products include aircraft cabin seating, lighting, oxygen, galley systems and inserts, monuments, de-icing systems, water and waste systems, lavatory systems, electronic systems, and brazing technology. B/E also provides cabin interior reconfiguration, program management and certification services.If you came to this conference by air, changes are one out of 2 that you were seated in a B\E seating product.
  • B/E has seen strong organic growth and growth by acquisition since its inception in 1987. Just in the last 9 years it went from around ¾ of a billion to 4 times that size. In that time period it also expanded its sales outside of the US, with the majority of sales now being abroad.Globally the workforce grew while the organization expanded, with in 2013 9,000 employees and 1,500 contingent workers employed in over 20 countries.B/E’s development can be characterized in many ways:From US Centric go globalFrom relatively small to relatively largeFrom entrepreneurial to a more structured approachBased on our development and our continued growth expectation, we have a need across the organization for:Global systems, processes and procedures, thereby capitalizing on scale while streamlining our operationsA need also for managing the corporation more holistically from a external client facing perspective (how we manage our customer base) and from an internal perspective (how do we manage resourcing).This brings me to the following slide: our business objectives for implementing a global technology solution.
  • Our business objectives for implementing a global HR Technology solution are multiple. I will focus on the 4 most important onesInnovation: products and processesInnovation in our products and processes is driven by our ability to attract, retain and develop our talent base globally. We need to be able to answer such questions as: How many FAA certified aerospace engineers do we have, how many do we need in the future and how do we close the gap?How can we bring them on board, expedite the onboarding and development?Global TeamsWe are a global organization that needs to capitalize on its global talent: use the talent where it is available and ensuring 24/7 development as well as client supportEngineering development support in India is handed over each day to a US team to continue the development and back again to the engineers in IndiaNew product development will involve engineers across multiple countriesProcess improvements and manufacturing best practices are shared globally, thereby improving our learning curvePerformance CultureOur passion to innovate and our power to deliver are equally importantWe need to be able to align goals within and across business units and geographies, as they are key to our successGoals such as: Product innovation; on-time delivery; quality; costFlexible skillsCompeting in yesterday’s world is not the same as in today’s world and will be different in tomorrow’s world.We need a workforce that is flexible and can quickly adapt to future business challengesIt is therefore critical that we have an understanding of our current and future needs and capabilities. This allows us to manage the transition from current to future success.
  • Given our business objectives, we identified the following key HR Related challenges.Global InfrastructureManaging a global workforce requires us to have global data at our fingertips – Data translates into knowledge - knowledge into managementIt also requires us to have processes in place that are global in nature for managing talent – we can’t afford to have dissimilar processes in place where we are facing global challenges; our approach is: global unless… there is a compelling reason (statutory) for a different approach.Human Capital PlanningEfficiently managing and optimizing the global workforce was identified as a key challengeTurning data into meaningful metrics was identified as another key challenge, allowing us to set targets for how we want to move the cheeseCultureWe needed to further change the culture, moving away from entitlement to a performance driven cultureAnother cultural challenge is the ability to work not just global, but to ensure that global diversity propels our success, rather than hindering our success
  • Our status in 2010 did not meet our business needs. We lacked a global infrastructure with all employee data in one place, global processes and definitions. Where we managed some global processes, we used spreadsheets. Challenges:Are we using the same definitions (e.g. base pay is defined very differently in the US versus India)Data integrity: Local operations did not have an incentive to keep data current in the global JDE system (their payroll systems were their primary systems)Human Capital PlanningThe lack of global infrastructure handicapped our ability to manage human capital proactively. Culture: We were organized more as a group of countries/business units all successful in their own right. Success in the past did result in an entitlement culture
  • Single Sourceof TruthWe need all data in one place and managed from thereDefinitions need to be globally alignedGlocalWorking globally is a balancing act between global transparency/efficiency and ensuring we don’t lose sight of local statutory and competitive labor environmentsCostWho likes the burden of ongoing system development, upgrades and servers?Integration and scalabilityMany data are used in multiple processes (e.g. employee data for performance management, merit, succession planning). Ideally those separate HR talent management processes all pull from the same source data. Ideally PM results can be used for merit, succession planning, learning management etc. The system needs to be scalable/flexible in different ways:Support organic growth and acquisitionsGrow where we need additional HR solutions: we may have our priorities now on PM, Merit, Recruiting, but what if we want to expand to succession planning, workforce planning, etc.SpeedIs essential in meeting today’s business demandsSpeed in finding solutions, implementing them and in changing them; we can’t afford 3 year projects – we need 3 month projectsIn SuccessFactors we found a partner able to meet (and actually beat) these requirements. As such we started working with them on building the HR framework globally.
  • So where are we now: 2 years laterOur implementation was based on our business priorities:Employee Central is the central hub in SuccessFactors for employee, employment, and organizational dataEmployee Central established for us a global database of record and thereby our single source of truth; from there we also feed other modules like talent development and rewardsEmployee Central comes with Employee and Management Self Service, thereby increasing transparency across the globe. Work processes are supported with mobile applications, so that managers have employee information at their fingertips 24/7 and across the globeI mentioned earlier on that for us closing the gap on critical talent is key for B\E’s success. It will therefore not come as a surprise that we focused on implementing Recruiting, onboarding, talent development and succession planning. This also helps us manage talent related business risks. I talked also about culture being local and entitlement based in nature. Our switch to global processes and platforms certainly expedited the process of moving from a local to a more global approach. The tools available using SuccessFactors, allowed us to build a more rigorous performance management process and a stronger alignment between pay and performance. With all data in a central place and HR processes managed centrally, we are also better able to report out to the business, allowing for more proactive and targeted human capital management.
  • Technology SelectionWe selected Successfactors because they met the technology requirements we talked about earlier in this presentationDid SF meet all our needs? No. Their offering is not perfect, but very promising as it is quickly developing to meet developing customer needs. My highlights:Their willingness to listen to evolving client needs (we are on a journey together) and to make things work for usTheir ability to share their innovation on a quarterly release basis (including significant improvements/enhancements, that can be shared downstream with managers and employees)Accelerated development that comes with the SAP acquisition: more engineers working on our issues than ever beforeImplementation TeamImplementation takes dedicated HRIS/Tech resources working together with Subject Matter Experts. In our case we worked with a 3 person HRIS/Tec team and were able to deliver within a two year period. We worked with Aasonn as our implementation consultant. Core for the implementation consultant to add value:Experience with the different modules separately AND how they work togetherUnderstanding the B/E business model and to think with us on what solutions work bestUnderstanding of how the product is developingUser ExperienceSAAS allows us to deploy it as the organization changes over timeA great success story for B\E is the ability to deploy SF for our most recent acquisition within a month’s period. Mind you, the acquisition was outside of our traditional Aerospace field, as B/E Aerospace plans to provide high quality products and services to remote drilling sites.Managers are sold on how intuitive our tools are and the ability to have Employee information available 24/7 using their computer as well as mobile devices. Employees are excited to have more information available with regard to their employment and their career, allowing them to be a more active player in managing their careers.
  • So what is beyond 2013?We feel comfortable that we have our global data and processes in place. We still have longer way to go with regard to human capital planning. We have the reportsWe are developing a set of meaningful metrics, but it will probably take us another 1-2 years to socialize these within HR and with management AND use them as part of the day-to-day dashboard; This is a major shift from reactive to proactive talent management. Does that mean we have to wait two years for all analytics. No, we can focus on those areas that are most critical for the business and where we see some low hanging fruit: e.g. total cost of labor as a percentage of revenue. Others we already use, like succession bench strengthWork force planning, including business and talent scenarios is further out, but certainly within the scope of our current thoughts. SuccessFactors includes very sophisticated tools for workforce analytics and workforce planning. Awesome stuff; tempting stuff. We however decided that based the current status as an organization it would be too far ahead of where we are now. InterfacesIn 2013 we build interfaces with JD Edwards and US payroll. We will continue to build them for non-us payroll, to avoid inefficiencies and to improve data integrityThe integrated solution SuccessFactors provides us, also makes us think about Benefits Administration, Time and Attendance and the use of social media.
  • Debunking the myths of HR Technology. In this overview we discussed B/E’s business needs as a growing global organization: innovation, global teams, performance culture and flexible skills. We then visited the challenges we were facing in 2011 in terms of global infrastructure, Human Capital Planning and Culture. Based on our challenges we reviewed our Technology requirements and discussed what was implemented in 2013, while also looking forward to what is next and what is maybe next.Key message 1: Technology is not a solution, unless we understand our fundamental business and HR challenges. Once we understand those, Technology is an extremely forceful factor in finding solutions we face as HR professionals. Key message 2: Don’t try to solve everything at once. Prioritize, prioritize, prioritize!I like to thank the organizers of this technology conference for the opportunity provided for sharing my experience with you. I hope you have found this presentation useful for the Business, HR and Technology challenges you are facing. So let’s open it up for any questions you may have.
  • Martin Ratelband, B/E Aerospace - Debunking the Myths of HR Technology

    1. 1. Martin Ratelband Debunking the myths of HR technology Managing Human Capital in the Information Age CONFIDENTIAL © B/E Aerospace
    2. 2. Company Overview Commercial Aircraft Business Jet Seating Products Executive Aircraft Seating Interior Systems Super First Class Environments Life Support Systems Structures & Integration Brazing & Electronics CONFIDENTIAL © B/E Aerospace Cabin Lighting Systems De-Icing Equipment Consumables Management Largest Distributor of Aerospace Hardware and Consumables 825,000+ part numbers in stock OEMS, Military & Commercial Aftermarket 2
    3. 3. Business and Organizational Dynamics 2004 – 2013 • Revenue quadrupled • Workforce more than doubled • >50% of revenue outside of the US • From local to globally integrated solutions • Employees in 24 countries (14 in 2004) • 24/7 customer support • Endogenous growth + acquisitions CONFIDENTIAL © B/E Aerospace 3
    4. 4. Passion to Innovate Power to Deliver Innovation Global Teams Performance Culture Flexible Skills CONFIDENTIAL © B/E Aerospace 4
    5. 5. HR Challenges Global Infrastructure Human Capital Planning Culture • Data • Hire-to-Retire • Innovate & Deliver • Processes • Metrics • Pay-4-Performance • Global CONFIDENTIAL © B/E Aerospace 5
    6. 6. 2011 Status Global Infrastructure Human Capital Planning • Local data, processes, definitions • Re-active HC Management • Global JDE as a secondary system CONFIDENTIAL © B/E Aerospace • Multiple systems/Processes Culture • Local • Entitlement driven • No goal alignment 6
    7. 7. Technology Requirements Single Source Glocal Cost Integrated Scalable Speed ## Interface H2R Core Data CONFIDENTIAL © B/E Aerospace Solutions Growth 7
    8. 8. BE Aerospace 2013 Succession Planning Performance Talent Recruiting & Onboarding Employee Central Rewards Self Service CONFIDENTIAL © B/E Aerospace Reports 8
    9. 9. Technology Experience Technology Solution Implementation Team • Not perfect, but promising • Shared journey • Integrated solutions • Business needs  Solutions User Experience Business Managers Employees Acquisitions 24/7 Information Employment Flexible Self Service Career CONFIDENTIAL © B/E Aerospace 9
    10. 10. B/E Aerospace beyond 2013 Talent Management Human Capital Planning Interfaces •Payroll •Finance Systems Workforce Planning Analytics Reports Data CONFIDENTIAL © B/E Aerospace Benefits T&A Social Media 10
    11. 11. In Closing Innovation Global Teams Performance Culture Flexible Skills CONFIDENTIAL © B/E Aerospace 11