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Global hr forum2009-peter_sanborn-managing hr on a global scale-highlights from hewitt's 2009 global hr study


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  • 1. Global HR Forum | November 5, 2009 I Legend Series Part 2: Top Consultant Program, Global Talent Management and Organization Movement Managing HR on a Global Scale: Highlights from Hewitt’s 2009 Global HR Study To protect the confidential and proprietary information included in this material, it may not be disclosed or provided to any third parties without the approval of Hewitt Associates LLC.
  • 2. Hewitt Is A Global Leader in HR Amsterdam Milan Athens Atlanta World’s largest HR Consulting and Outsourcing firm. Milwaukee Minneapolis Auckland Bangalore Unmatched HR domain expertise: strategy, organization, Montréal Montré Mumbai Bangkok delivery, process and technology. Munich Beijing Neuchâtel Belfast New Delhi Boston New York Brussels Nicosia Budapest 60 years of client service and market leadership, over 25,000 Paris Buenos Aires Calgary Associates, 1700 clients, 98 offices, 37 countries, and approx. Philadelphia Pittsburg Charlotte USD 3.0 Billion revenues Prague Chengdu Pune Chennai Rome Chicago Rotterdam Cleveland San Francisco Dallas Clients include - 75% of Fortune 500 and all of the top 25 San Juan Dubai São Paulo Dublin Seoul Edinburgh Shanghai Eindhoven Geneva Independently ranked #1 HR Consulting firm in Asia Shenzhen Singapore Guangzhou St. Louis Hong Kong Stockholm Hyderabad Sydney Kolkata Insert Korea Capability information Houston Krakow Tokyo Kuala Lumpur Toronto London Trondheim Los Angeles Vancouver Madrid Manila Our Mission Our Mission Vienna Warsaw Melbourne Washington Making the World aaBetter Place to Work Mexico City Wiesbaden Miami Making the World Better Place to Work Zurich 2
  • 3. Hewitt's HR Effectiveness Consulting Capabilities A Comprehensive Understanding of Five Critical Factors is Critical to Begin the Transformational Path Eight Critical Questions for HR Organizations Focusing on Driving HR Efficiency, Effectiveness, and Alignment Organization Right number of Structure and Streamlined 1 How does the business view HR? resources in the right HR processes focused roles at the right Service Delivery processes on key needs of the levels at the right business costs – internally or Model externally 2 What services and capabilities Customer are valued by your customers? Alignment 3 Do you know your total HR spend; HR competencies HR HR Capabilities is it competitive and sustainable? and skills that are Technology Optimally aligned to business leveraged needs technology 4 Do you know how your resources spend time across functions? Across BUs/ regions? Hewitt’s Unique HR Analyzer™ Tools can Help 5 Do you have highly paid resources Leading organizations use a range of these tools to arrive at a current state assessment and help design their strategies for the future doing transaction work? Complex HR Activity 6 How streamlined are your Analysis HR business processes? HR Capability Web assess- customer ment surveys 7 Are you effectively leveraging technology and expertise Complexity HR Process- HR Bench- (internally or externally) to deliver HR services? mapping marking 8 Is your HR team equipped with the right capabilities Executive to help drive your business imperatives? Interviews Basic Narrow Target audiences Wide 3
  • 4. About Hewitt’s Global HR Study Comprehensive study on how companies manage their HR function to respond to 85 Global Participants global business needs Asia – Detailed survey 25% North – Selected case interviews America 46% Highlights – A global HR strategy is a deliberate mix of global, regional, and local approaches Europe – Being global is about global capabilities, 29% not just structure or systems – Despite increasing levels of standardization and efficiency… Annual Participant Revenue (Billions) > Significant opportunities remain in both HR program management and < $1 > $25 service delivery 18% 29% > Talent management is still largely managed at a local level – A rigorous approach to HR governance $1 - $5 $10 - $25 and metrics is increasingly critical in 27% 12% $5 - $10 managing global risk and effectiveness 14% 4
  • 5. Globalization Is a Continuing Trend Impacting HR Consider These Issues And Their Impact on HR Shift from autonomous business HR is getting stretched by the need to operations to global strategies, balance global strategy with local needs and principles, and platforms constraints Growing complexity and uncertainty in Increasing role in managing Corporate Social business operations Responsibility, Risk, and Governance Increasing number of employees in Managing a global workforce is a top priority non-headquarter country (e.g., >50%) Greater opportunity to drive both strategic Global sourcing of operations and talent growth and cost efficiency with a global focused on capabilities and costs model The acceleration of globalization the last several decades will continue Multinational (6%) International (35%) Transitioning to Global (40%) Global (15%) An organization with cross- An organization with An organization that is taking An organization that border operations that are headquarters that retains concrete steps to develop develops strategies and primarily decentralized and some control over decisions worldwide strategies and policies on a worldwide autonomous but still remains largely policies basis and shares resources decentralized across borders 5
  • 6. How Leading Companies Manage “Global HR” Focus on four interconnected HR “disciplines” Leading practice mind set: – Global is more about strategy and Global strategy and Effective and aligned coordination than uniformity vision for HR’s HR structures and priorities capabilities – Business drivers should guide the mix of global, regional, and local HR approaches Strategy and Organization Program Design Design Governance Service and Delivery and Metrics Technology Culture of Operational high performance effectiveness and accountability and ethics efficiency in transactions 6
  • 7. Taking Action: Delivering on the Four Global Disciplines Primary Goal Critical Questions to Answer What are your human capital priorities in the next 5 years? Global strategic vision on HR’s How will you address these priorities? Strategy and How can you ensure global alignment of your Program priorities Design programs/processes? What is your total HR spend, and how do your resources Effective and spend time across locations? aligned HR Is HR structured to deliver optimal value? Organization structures and Design capabilities Is your HR team equipped with the right capabilities to drive business imperatives? Service Operational How standardized are your operations? Delivery and effectiveness and Are there opportunities to streamline and consolidate service Technology efficiency in delivery? transactional services Are you effectively leveraging technology to deliver HR services globally? Governance Culture of high What is HR’s role in supporting corporate social and performance, responsibility and ethics? Metrics accountability, and How do you manage HR risk and compliance? ethics Do you have a global metrics capability? 7
  • 8. Next Steps: Improving Global Capability Conduct a rapid assessment of your HR function’s global capability, based on four global disciplines Identify opportunities for improved global/regional coordination, standardization, integration, and cost savings Review current gaps/opportunities with key stakeholders to determine priorities for change Develop action plan to address key priorities; determine milestones and critical metrics to gauge progress and success. 8