UK companies are more at risk of missing talent opportunities than organisations in the US and Western Europe due to not managing succession planning on a global basis. Less than half (47%) of UK-based international companies manage succession planning globally, compared to 69% of organisations based in Western Europe or North America. This is according to exclusive research by Personnel Today and international HR software company Cezanne, which also found that 27% of UK organisations not conducting succession planning across their global offices would like to do so in the future. For more information on the findings, you must read the full report.

1. Cezanne Software Hot Topics Research
Prepared by Gurur Sarbanoglu
Reed Business Insight

2. Contents
Slide
Background & Objectives 3
Methodology 4
Respondent Profile 6
Main Findings 13
Summary & Conclusions 42
2

3. Background & Objectives
 Headquartered in the UK, Cezanne Software has over 20 years‟ experience of
providing global HR and talent management software solutions to some of the
world‟s leading organisations. Today Cezanne Software support over 700
organisations including companies as diverse as Vodafone, Swarovski, TNT, TSYS,
Bakkavor, TUI Travel, & Kempinski.
 Research was required to understand how companies with offices overseas
manage their day-to-day HR activities, specifically to:
• Explore the HR processes they would like to manage across international
offices;
• Establish the professional skills HR personnel should possess in order to be
effective in an international company;
• Establish the main challenges HR personnel face when dealing across borders;
3

4. Sample & Methodology
 Research was conducted as an online self-completion quantitative survey amongst
HR managers with international responsibility.
 The survey was sent to a panel of HR professionals and supplemented with users
of Personneltoday.com.
 Fieldwork was conducted between 2nd August 2010 and 17th September 2010.
 In total 444 responses were received, of which 200 were eligible (i.e. working in a
company with offices in different countries or with plans to expand internationally in
the near future).
4

5. For more information on Cezanne Software……..
 Case studies - www.cezannesw.com/customers/case-studies
 Latest news and press releases - www.cezannesw.com/news
 Cezanne on-line newsletter - www.cezannesw.com/newsletter
 Free webinars - www.cezannesw.com/webinar
 Product demonstrations - please call +44 (0)207 202 9300
5

6. Respondent Profile
6

7. 45% of respondents either have offices in more than
one country or are planning to expand internationally
Excluded from
subsequent analysis.
Does your company have offices and operations in more than one country?
Base: all respondents (444)
7

8. Three quarters (75%) of respondents have
headquarters based in Europe
75% are based in Europe.
Where are your company headquarters based?
Base: those with int‟l offices (200)
8

9. 16% of respondents work in manufacturing
“Charity”
“Consultancy”
“Housing”
“Legal” etc.
Which of the following best describes the primary business of your company?
Base: those with int‟l offices (193)
9

10. Half have 10,000+ employees within their
organisation
Mean average is just
under 7,500 employees.
How many people are employed within your organisation?
Base: those with int‟l offices (200)
10

11. Two-thirds (67%) of respondents are HR managers
Which of the following best describes your job function?
Base: those with int‟l offices (199)
11

12. More than three quarters (77%) have HR
representation on the board
In your company, does HR have representation on the board?
Base: those with int‟l offices (199)
12

13. Main Findings
13

14. 58% of respondents‟ organisations have been
operating internationally for more than 20 years
Mean average is
approximately 19 years.
How long has your organisation been operating internationally?
Base: those with int‟l offices (200)
14

15. More than half (52%) have become an international company as part
of organic growth, while a third as a result of a merger or acquisition
How did the organisation that you work for become an international company?
Base: those with int‟l offices (192)
15

16. Method of becoming an international company by
years of operating internationally
Less than 5 Between 5 – 20 More than 20
Total
years years years
As a result of
52% 71% 53% 49%
organic growth
As a result of a
merger /
33% 24% 35% 32%
acquisition /
joint venture
Don‟t know 6% - 8% 5%
Other 9% 5% 4% 13%
How did the organisation that you work for become an international company?
Base: those with int‟l offices (192)
16

17. Method of becoming an international company by
employee size
Between 1,001 More than
Less than 1,000
Total and 10,000 10,000
employees
employees employees
As a result of
52% 79% 40% 49%
organic growth
As a result of a
merger /
33% 16% 42% 36%
acquisition /
joint venture
Don‟t know 6% - 8% 7%
Other 9% 5% 10% 8%
How did the organisation that you work for become an international company?
Base: those with int‟l offices (192)
17

18. HR data managed across countries
Already manage
1- Headcount 78%
2- Organisational structure 69%
3- Performance 67%
Would like to manage
1- Skill gaps 30%
2- Succession planning 23%
3- Competencies 20%
Do not manage
1- Absence 37%
2- Competencies 28%
3- Employee turnover 27%
See the following slide for the full data tables
What HR data do you look to manage across countries?
Base: those with int‟l offices
18

19. HR Data managed across countries
What HR data do you look to manage across countries?
Base: those with int‟l offices
19

20. HR Data managed in companies w/ 10,000+
employees
What HR data do you look to manage across countries?
Base: those with int‟l offices
20

21. HR Data managed in companies based in the UK
What HR data do you look to manage across countries?
Base: those with int‟l offices
21

22. HR Data managed in companies based in Western
Europe or North America
What HR data do you look to manage across countries?
Base: those with int‟l offices
22

23. Key obstacles HR staff encounter when operating
globally
“Cultural alignment –
what‟s good in one “Inconsistencies within
country is not „good‟ in the HR systems.”
another.”
“Remote from the UK “Ensuring each international
headquarters creates a office works towards shared
local „them v us‟ approach goals whilst ensuring local
sometimes.” needs are met.”
“Finding a system that “Language, local
allows different rules employment laws, time
based on geography.” zone differences, big
travel bills.”
What are the key obstacles that HR staff encounter when operating internationally?
23

24. Competencies and skills sets with the highest net
importance* for the respondents *Very or fairly important
Net importance
Showing an appreciation of the ways in which culture influences core 98%
organisation behaviours.
Having respect for the countries and communities being dealt with. 98%
Capacity for and tolerance of the ambiguities and uncertainties inherent 97%
in new business situations.
Becoming a broker of appropriate knowledge, learning and ideas across 95%
a loose connection of people.
Being a process facilitator, with diplomatic sensitivity to complex 95%
organisational politics and power struggles.
Being a provider of information and advice within the business network. 95%
Mobilising the energy and engagement behind ideas. 95%
Being a strategic thinker 94%
See the following slide for the full data tables
In your opinion, how important are the following competencies and skills sets recommended by CIPD for HR
staff to have in order to be effective ?
Base: those with int‟l offices
24

25. Importance of competencies and skills sets
In your opinion, how important are the following competencies and skills sets recommended by CIPD for HR
staff to have in order to be effective?
Base: those with int‟l offices
25

26. 63% said gaining efficiencies and 60% said minimising data security
risks are very important benefits of a global HR system
Net importance
95%
92%
91%
95%
92%
89%
87%
85%
92%
89%
87%
89%
83%
In your opinion, how important are the following benefits of / drivers for a global HR system?
Base: those with int‟l offices
26

27. Legislative complexity, culture of the organisation and a fragmented HR
process are seen as the main barriers to implementing a global system.
In your experience, which one of the following is the main barrier to implementing a global system?
Base: those with int‟l offices (199)
27

28. More than half have a formal documented succession
planning process.
How long has your succession planning process
been used within your company?
Don't know, 8%
No, 40% Yes, 52%
Base: those with succession planning process (103)
Does your company have a formal documented succession planning process?
Base: those with int‟l offices (200)
28

29. Formal documented succession planning by region
Total UK Rest of Europe North America
Yes 52% 45% 56% 57%
No 41% 47% 33% 35%
Don‟t know 8% 8% 11% 8%
Does your company have a formal documented succession planning process?
Base: those with int‟l offices (200)
29

30. In 43% of respondents‟ organisations, senior management
level of employees are managed for succession planning
What levels of employees are managed for succession planning?
Base: those with succession planning (103)
30

31. On average a quarter of those with succession
planning spend time in different international offices.
Mean average= 25%
What percentage of those who are managed for succession planning in your company spend time in different
international offices?
Base: those with succession planning (103)
31

32. 84%
of respondents‟ companies‟ HR activities are aligned
with business objectives
No – 10%
Don‟t know – 6%
Are your company‟s HR activities aligned with corporate objectives?
Base: those with int‟l offices (198)
32

33. How a global mindset across the organisation is
managed
“Regular conference calls, a “It is a constant battle to
single point of contact on the convince corporate that the
senior management team with global mindset has to be
responsibility for HR globally.” flexible enough to cater for
local mindsets.”
“Board level sponsorship. Top
down communication and
collaboration through working
groups.”
“Standardisation of processes
and policies to fit global ones, “With difficulty. We attempt to do
harmonisation as far as this through open communication
possible, if not applying a „one channels and ensuring all the
company‟ HR philosophy.” different areas understand what is
happening and why.”
How do you manage to foster a global mindset across the organisation?
33

34. Initiatives to get a local buy-in
“Global policies on “CEO and senior board visits
compensation and benefits, to country firms to engage
global annual pay review and local management teams.”
bonus process with better
communication.”
“Data management strategy –
single repository / home for data
to ensure accurate MI reporting
that in turn drives more informed
decision making.”
“Work very closely with the
“Local involvement and centres
local office, build an
of practice / communication of
environment of trust and
local deployment to the wider
reliability. Open
audience.”
communication channels.”
What initiatives have you put in place to get a local buy-in?
34

35. Developing relationships with international HR
colleagues
“Bi-annual face-to-face meetings
“I look after all HR activities in UK
in Western Europe region and
and abroad.”
annual meeting by global division.
Regular „same-time‟
teleconferences.”
“Regular phone calls. Visits are very important to
gain face-to-face contact. Monthly HR conference
calls enable all HR colleagues to interact and
learn from one another. Meetings at one
another‟s facilities would help in developing
relationships, however this has not been set up.”
“Occasionally by exchanging staff “Creation of regional HR teams to
or knowledge where necessary. minimise distance. Regular
Not as a rule.” communication, sharing and
forums.”
How do you develop relationships with international HR colleagues?
35

36. 93%
feel it is very or fairly important to be able to provide
HR data to the management team
Not very important – 6%
Not at all important – 1%
In your opinion, how important is it to be able to provide global HR data to the management team?
Base: those with int‟l offices (200)
36

37. More than half (57%) have a common HR system.
Does your company use a common HR system to manage its global workforce?
Base: those with int‟l offices (200)
37

38. Key functionalities of HR system software they use
Currently have
1- Core HR 94%
2- Performance 70%
3- Compensation management 64%
Planning to add
1- Succession & career 30%
2- HR analytics dashboard 27%
3- Employee self-service 23%
No plans to add
1- Multi-language capabilities 34%
2- Local legislation support 33%
3- Integration w/ Outlook/Lotus notes 31%
See the following slide for the full data tables
Which of the following key functionalities does your main HR system software have?
Base: those with int‟l offices
38

39. Key functionalities of HR system software they use
Which of the following key functionalities does your main HR system software have?
Base: those with int‟l offices
39

40. More than a third (36%) of those without a common HR system
expect to switch to a common HR system in the future
Do you expect to switch to a common HR system in the future?
Base: those w/o common HR process (85)
40

41. 36% would like their HR system to have the ability
to provide key metrics / reports.
In your opinion, which one of the following functionalities would you like your HR system to have?
Base: those with int‟l offices (192)
41

42. Summary & Conclusions
42

43. Key Findings (1)
 HR Data managed across countries:
 The HR data managed most commonly across countries are Headcount (78%),
Organisational Structure (69%), and Performance (67%).
 Respondents have also expressed their desire to manage Skill Gaps (30%), Succession
Planning (23%), and Competencies (20%).
 Absence (37%), Competencies (28%), and Employee Turnover (27%) are three of the
least managed sets of data across different countries.
 Importance of competencies and skills sets recommended by CIPD for HR
staff:
 Respondents feel it is either very or fairly important that HR staff have the respect for the
countries and communities they deal with (98%) and show an appreciation of the ways in
which culture influences core organisation behaviours (also 98%).
 Also important are the capacity for and tolerance of the ambiguities and uncertainties
inherent in new business situations (97%).
43

44. Key Findings (2)
 Main barriers in implementing a global HR system:
 Legislative complexity (27%) and the culture of the organisation (20%) are two main
barriers in implementing a global HR system.
 Respondents also point out to their fragmented HR process (19%).
44

45. For more information on Cezanne Software……..
 Case studies - www.cezannesw.com/customers/case-studies
 Latest news and press releases - www.cezannesw.com/news
 Cezanne on-line newsletter - www.cezannesw.com/newsletter
 Free webinars - www.cezannesw.com/webinar
 Product demonstrations - please call +44 (0)207 202 9300
45

46. Cezanne Software Hot Topics Research
Prepared by Gurur Sarbanoglu
Reed Business Insight