Managing the transition to multi-country HR BPO involves dealing carefully with three main tasks (or streams) at the same time: process conversion, implementation and change management and communication. But even more challenging is the integration of the human dimension related to any transition project. During this complimentary 60 minute webcast, Bonnie Skelly, Director, International Payroll, Finance Operations at Microsoft, Barbara Paterson, Director and People Development Specialist for Paterson Consultancy Ltd., and Patrick Nolot, Global Program Director at ADP, will discuss: • Dealing with the complexity of transitioning multi-country HR BPO projects • Managing the three key transition streams according to a proven methodology • Identifying the emerging challenge of international organizations’ permanent transition state • Managing the challenges related to people and transition • Maintaining employee engagement over time

1. Webinar – Transition Your Organization
4 February 2010
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2. Agenda
• Introduction to the Panel
• Definition of Transition
• Transformation at Microsoft
• Transition Methodology
• People and Transitioning
• Executive Sponsor Role
• Keys to Success
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3. Introduction to the Panel
Patrick Nolot
Global Program Director, ADP
Barbara Paterson
Director, Paterson Consultancy ltd.
Bonnie Skelly
PMP, Director International Payroll, GPO - Finance Operations
Microsoft Finance
Moderator:
Andre Rampat
Director, CorporateLeaders
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4. Transition – A Definition
Project/change managers perspective
• Sponsorship must be continuously managed and confirmed throughout the
lifecycle of the project.
• Transition of an Organization must include strong considerations and Plans for
Process and Change Management
Employees perspective
• The passage of time and participation in activities that move you from the old,
comfortable way of doing things to new ways of doing things.
• “What will happen to me?” “When will I know?” and “can I help” - transition for
employees increases anxiety and fear levels surrounding their future.
Provider Perspective
• Implementation of a standardised service
• Transfer of responsibility by a client to an external supplier
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5. Transformation at Microsoft
The Finance 3.0 Vision
“Best in class Finance functions, enabled by process standardization, solid internal controls, and
effective performance management. Achieved by hiring & developing the best people and using
integrated applications that showcase Microsoft technology.”
OneFinance Drivers
• Powerful business insight and performance management
• Process standardization, reduced complexity and outsource non-strategic activities
• Efficient compliance processes that improve control environment
OneFinance Transformation
“Business
Insight”
“Business
End State Insight”
Transactional
As-Is Accounting
Transactional
Accounting
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6. Transformation Drivers at Microsoft
Current State Future State
 40 + existing local  ADP GlobalView – single global payroll vendor
payroll vendors  Consistent global use of tools
 Fragmented
processes & many
 Ability to standardize common systems
systems, varying by
country RESULTS:
 HR dual data entry
into local payroll
system & Headtrax
RESULTS:
 Weak internal
controls
 Inconsistent
employee
experience
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7. Payroll Operations at Microsoft with ADP GlobalView
The payroll processing actions will vary by subsidiary, based on country regulations and company policies.
PREPARATION PROCESSING PAYMENTS REPORTING
MS Sub – GSS
Microsoft HR/Finance ADP Payroll Services Team MS Employees
HR
Enters employee
data into MS tools  Processes payroll data
 Provides call centre support Employees view
Global
 Manages statutory controls pay slips online
Pay
Source
 Data exceptions manually Common
processed by Global Data Reporting
Auto-upload to Services
ADP GlobalView Structure
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8. Transition Methodology
Managing the transition involves dealing with three main tasks (or streams)
at the same time:
• Process conversion
• Service implementation
• Change management and communication
These three tasks/streams need to be managed carefully according to proven
methodology in each country where you transition to HR outsourcing.
But even more challenging is the integration of the human dimension that is
related to any international transition project. You want to be sure not to leave
critical players on the sidelines.
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9. Managing the Transition Streams
Phases
Streams
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10. Microsoft Change Strategy
Leadership Alignment Communications
Demonstrated sponsorship and Clarifying and communicating
reinforcement of the commitment to the Planning throughout the life-cycle of the change
change by key executives. period to keep people informed and
involved.
Clarifying Purpose
Pursuing Alignment Initiating Commitment
Change Intent
Reinforcing Change Planning the Change
Building Capability Creating Followership
Training Organizational Alignment
Development of skills, knowledge and Preparation for moving the “As-Is”
behaviors people need to achieve and organization to the desired “To-Be” state
sustain targeted performance levels. in consideration of the potential impacts
to the workforce.
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11. People and Transitioning
Psychological Strategy :
• Understanding individual emotional reactions to change
• Internal communications
• Leadership behaviors
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12. People and Transitioning
Listen, acknowledge feelings,
Listen, acknowledge
encourage and support
encourage
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13. Talk the Talk
• Devise a robust communications strategy. Decide how you want employees to feel
and anticipate manager skill gaps
• If people do not have answers to the questions “what is in it for me” and “how can I
be involved” they are unlikely to take in any other information
• Increase the frequency of communications. Don’t let rumours fill the gaps.
• Listen and encourage two way conversations. Co-create messages, ask don’t tell.
• Inform people about the rationale for change the “why” not just the “what” use
stories and pictures.
• Messages need to create a sense of belonging even for people “at risk” of leaving.
They are the glue that hold people together in times of turmoil.
• People need messages that support them to maintain their self esteem and reduce
resistance. The organization can enhance its reputation as an employer who
manages change well.
• Be ready to adapt your strategy by understanding cultural sensitivities. 13

14. No place to Hide
• As a leader your behaviour is noticed by everyone. Employees look for positive role
models. Leaders reflect the culture of the organization.
• Impact on others is determined by your own self knowledge, your authenticity and
your wisdom to choose the style and timing of your interventions.
• Leaders who manage change effectively prioritise employee engagement – they
recognize employees want a voice in shaping their futures.
• Leadership skills training for line manages particularly needs to ensure coaching
skills and handling uncomfortable conversations are on the agenda.
• Good leaders know their workforce and their skills and understand the concepts of
change management.
• Good leaders also increase their level of interaction, give consistent messages and”
walk the floor”
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15. Executive Sponsor Role (Transition and Ongoing)
Executive Sponsor Ongoing with ADP
• Act as the ultimate escalation point for the client executive, supporting the
Global Relationship Manager if he/she needs help within ADP beyond the
GlobalView scope and expanding the relationship with the client
• Conduct/Participate in annual or semi-annual client steering committee
meetings
• Information point for clients with alignment of strategies and initiatives
between the client and ADP
Executive Sponsorship as part of Transition at Microsoft
• Sponsors from both HR and Finance (HR and Finance have a role in MSFT
payroll)
• Annual Performance Review includes OneFinance as a commitment
• Supports Global Payroll Director involvement in World Wide Conference and
Staff Agendas
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16. Keys to Success
• Develop a transition methodology and framework that focuses on
process conversion, service implementation, change management and
communication
• Have partner that is flexible to adapt their transition process to your
needs
• Strong leadership is essential
• Plan to support your subsidiaries at the local level
• Don’t ignore the psychological factors when dealing with people and
change
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17. Thank you for Joining
Patrick Nolot
Global Program Director, ADP
Barbara Paterson
Director, Paterson Consultancy ltd.
Bonnie Skelly
PMP, Director International Payroll, GPO - Finance Operations
Microsoft Finance
Moderator:
Andre Rampat
Director, CorporateLeaders
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18. Contact Details
For further information, please visit our websites:
www.adp.com
www.globalhrstudio.com
www.corporate-leaders.com
Or email us at:
Patrick Nolot: patrick.nolot@europe.adp.com
Andre Rampat: a.rampat@corporate-leaders.com
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