- HR Transformation in the Internet Era
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1 Haier s Global HR Management - HR Transformation in the Internet Era Xiaonan Wang Haier Group HR Director 1
2 I. Introduction of Haier II. Haier s Global HR Management III. Haier s HRIS - Workday 2
3 I. Introduction of Haier II. Haier s Global HR Management III. Haier s HRIS - Workday 3
4 Before Introduction of Haier Today 5 R&D Centres 24 Manufactories 18 Countries 80,000 Employees 61 Trading Companies USD 25.8 billion Turnover World s No.1 major appliance brand for four consecutive years Profit CAGR: 35% from 2007 to Haier ranks No. 8 in The World s Most Innovative Companies list 7 RMB billion 1 8.6% 2 5.5% 3 4.2% Haier is the only Chinese brand among the top ten Companies list. Haier ranks the best among enterprises of consumer and retail sector Source: Euromonitor, ranking according to retail volume sales in units based on brand 2012 data 4
5 Haier Brand 5
6 Haier Product Solution for Smart Home 6
7 Haier s Strategies Create Haier Brand Create Haier Individual-Goal Combination Model 7
8 Haier s Exploration of Networking Strategy and Structure Win-win model of individual-goal combination Strategy Determine Structure Ecosystem of ZZJYT parallel connection platform under opening system Follow 8
9 Haier s Transformation in the Internet Age Before After Transformation through cloud platform Platform of product resources & channel service Platform of mechanism and culture Haier creates competitiveness of single brand Platform of open resources Platform of mechanism and culture Haier creates platform competitiveness of multi-brands There are no successful enterprise but only enterprises changing with the times. Mr Zhang Ruimin 9
10 I. Introduction of Haier II. Haier s Global HR Management III. Haier s HRIS - Workday 10
11 Organization Change Strategy (Win-win Model of Employee-Customer Integration) decides Organization driver Self-organization Self-driven Self-ownership teams bid to join the unity of stakeholder to create value added Sharing value added and optimizing constantly Former department s Past Former Partner Former Consumer The unities of stakeholder become end-to-end nodes of networking platform rather than points of linear process chain. External opportunity capturing and internal mechanism innovation Hierarchy Inverted triangle Dynamic network organization 11
12 Talent Management Model Change Resources gathering and dispersing based on goal and customer needs Reward by value added; Profit sharing based on performance against target Human capital management in a Wiki way: On-line employee rather than contracted employee 12
13 Performance Management Transformation Haier Strategic P/L (I) Interactive users (strategy) Leading competitiveness of interactive users is the key, or the core (III)Zero difference (161) Daily conclusion goals under the principle of three zeros (Zero inventory, zero signature, zero redundancy) ZEUS model (II) Human resource (ZZJYTs) The ecosystem of ZZJYT parallel connection platform under opening system (IV) Closed-loop optimization (the rewards system) Automatic optimization cycle of individual-goal 10 Zones each has leading targets for different quadrant. Between Zone 2 to 10 are to create user value in stages from templates to the whole. Haier 2-D Matrix Y (strategic performance) - zone 8 - zone 6 - zone 4 Zone 10 - target Leading competitiveness Building the parallel connection platform system, closing the gap by implementing the individual-goal positive feedback mechanism and motivating ZZJYTs to create added value and to be the best performance COI. Allocating all the company s liabilities to each individual and everyone taking the responsibility for performance and goal. Zone 2 - basics X (market competitive) Zone 1 - prerequisite Quadrant I - IV average average 1.2x No. 1 Leading Continuous improvement 13
14 Performance Management Transformation(Con t) Item Superior Peer Subordinate Customer BD online interaction Target Ownership Customer Focus Integrity Best Performance Incentive Team work Confidence Communication Authorization Skill Development Marketing 0 distance Logistics On-time delivery Customer Customer evaluation 0 defect Design super experience Traditional 360 evaluation (classic practices by multi-nationals) Customer 360 evaluation 14
15 Employee Transformation New role of employee : I am my own CEO. Micro company Micro company Micro company Micro company Haier s Platform Micro company Micro company Micro compnay Different external parties including customer, supplier joint Haier to become community of interest to meet the customer needs and goal, they create and share the value added on Haier s platform. Command receiver (Employee follow the command passively ) Resources interface (Employee interact with the customer needs and global resources) Entrepreneur & CEO (Micro companies incubated on Haier platform, gathering and dispersing based on customer needs 15
16 Challenges of Global HR Management There are plenty of issues to consider and balance in Global HR Management 1. Strategic alignment cross countries 2. Cross-cultural adaption and language barrier 3. Consistency and differentiation of HR policy and processes among region 4. HR compliance with local country s labor law 5. C&B design for employees in varied economic environment 6. Platform to handle complex global HR management Decentralization? Centralization? 16
17 Challenges from Business Where are my talents and who are they around the world? Where is the most effective place for Supply Chain? How to motivate my talents to achieve business objectives? Is my organization healthy? How can HR work as a strategic business partner to drive the business change under the internet era? Dancing with Business 17
18 I. Introduction of Haier II. Haier s Global HR Management III. Haier s HRIS - Workday 18
19 Roll out Overseas HRIS Workday Project at the Right Time From strategy to implementation, HRIS project paves the way of transforming challenges into achievements in the internet era by cloud technology Aligned global business and HR strategy Proper HR process to sustainably realise the strategy Technology platform to implement the process 19
20 What Can Workday Bring To You? Executives Provide a holistic view of company and its workforce Provide comprehensive data to Executives to make strategic decisions HR Make the process efficient and accurate Enable HR teams to act as business partners Managers Provide managers a more strategic people management role Provides a dashboard of reliable and comprehensive workforce data Employees Incorporate self-services functions, for example keep a timely tracking of their various application processing status 20
21 HRIS Management Overview Strategic Decision 360 Talent Searching Engine Talent Management - Big data deployment - Data accuracy and on real time - Global talents network - Holistic view of organization and people - Identify talents - Use best fit talents for achieving business objectives Base Personnel Information, Org, C&B, Processes & Policies etc 21
22 HRIS Management Overview Strategic Decision 360 Talent Searching Engine Talent Management - Big data deployment - Data accuracy and on real time - Global talents network - Holistic view of organization and people - Identify talents - Use best fit talents for achieving business objectives Base Personnel Information, Org, C&B, Processes & Policies etc 22
23 23
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