Page 1. Outline. Adopting SuccessFactors for e-hr strategy at Sulzer. Introduction. Performance Management: issues analysis.
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1 SuccessConnect Conference Adopting SuccessFactors for e-hr strategy at Sulzer Minh Huynh e-hr Project Specialist Outline Introduction Company Overview e-hr Strategy Performance Management: issues analysis Approaches Process Technology Support, Control & Accountability Discussion point Going forward Adopting SuccessFactors to e-hr strategy at Sulzer slide 2 Page 1
2 Sulzer and e-hr strategy: HR Operational Excellence Our portfolio: Four divisions and Sulzer Innotec Sulzer Pumps Market leader in pump technology and solutions Sulzer Metco Market leader in surface technology Sulzer Chemtech Market leader for separation, mixing and service solutions 49% (~52%) Sulzer Turbo Services Leading independent service provider for rotating equipment 19% (~17%) 19% (~18%) 13% (~13%) 1) share of sales 2011; in brackets: pro-forma 2011 including full year Cardo (5 months annualized) Sulzer Innotec Central R&D unit Share of sales 1 Adopting SuccessFactors to e-hr strategy at Sulzer slide 4 Page 2
3 A well balanced and managed portfolio: proven to be resilient in downturns Oil and gas Hydrocarbon processing Power generation Water Automotive Aviation Other industrial markets Share of sales 1) 14% 24% 18% 8% 6% 4% 26% (~13%) (~23%) (~17%) (~13%) (~6%) (~4%) (~24%) Sulzer Pumps Total Order Intake grew 9.1% in First Quarter to 1billion CHF Sulzer Metco Sulzer Chemtech Sulzer Turbo Services >10% of divisional sales <10% of divisional sales 1) share of sales 2011; in brackets: pro-forma 2011 including full year Cardo (5 months annualized) Adopting SuccessFactors to e-hr strategy at Sulzer slide 5 Our global footprint: Adding new locations to capture future growth Sulzer has a network of over 170 locations and around employees Added in 2011: - Cardo pump sites added - Water pump company in Spain acquired - New service centers in China, Colombia and Russia - New service companies acquired in Brazil and Canada Adopting SuccessFactors to e-hr strategy at Sulzer slide 6 Page 3
4 Why e-hr? Achieve flawless administration of HR services Reduce data redundancy Save time, reduce paperwork Increase information accuracy and global availability 35% 65% 60% 40% Business Partner Admin. Expert Enable HR to play a more strategic role Focus on analyzing, consulting and taking actions Measure HR impact (sustainability data) Vision Mission Strategy 1 Culture Values Competencies Attracting and Recruiting 6 5 HR Processes 2 Improve consistency throughout our entire HR processes Allow fast HR process integration of newly acquired companies Provide relevant information and easy access for employees, superiors, next higher and top mgt. Informed people decisions for managers Adopting SuccessFactors to e-hr strategy at Sulzer slide 7 What drives the need to go e for our core HR processes? Growth Consistency: Standardized processes LEAN: Eliminate waste Vision Mission Strategy 2 1 Culture Values Competencies Attracting and Recruiting New Internet Candidate request: Online applications become standard, web 2.0 integration ahead Talent scarcity Support Development: Better guide employees & superiors Enable new learning forms: e-learning, virtual classroom 6 HR Processes Development 4 Talentmanagement Successionplanning 3 Performance and Rewards Development 4 Talentmanagement Successionplanning 5 3 Performance and Rewards Consistency of process, reduced paperwork Efficiency Focus on decisions Transparency Integration: Reduce redundant date, integrate processes Transformation: Ongoing process Current e-hr Focus Potential Future Projects Adopting SuccessFactors to e-hr strategy at Sulzer slide 8 Page 4
5 Performance Management process Learning from experience Performance Management - Evolution timeline Pilot at Sulzer Metco Launch of Hotline support Ask for support / Discuss solutions / Negotiate with SuccessFactors and consultants / / / / /2012 Enterprise wide rollout to global management employee Webinar reminder training Board of Director announced new bonus regulation Launch of new form, new process Roll out communication and webinar Adopting SuccessFactors to e-hr strategy at Sulzer slide 10 Page 5
6 Issues arose during Performance Management Review period Confusing checkboxes Wrong weightings of objectives Forms got stuck in the process 2 nd Level Manager does not understand their system role Manual Financial Targets are difficult to verified Forms are signed without financial targets uploaded Financial ratings are being capped between New Bonus 70 on and Target 130 set by board Managers changed the of Directors in December 2011 Manual point ratings while older calculations for new ratings were being employees or transfer process by HR employees Adopting SuccessFactors to e-hr strategy at Sulzer slide 11 Identifying the common themes of the issues Process Technology Support, Control & Accountability Adopting SuccessFactors to e-hr strategy at Sulzer slide 12 Page 6
7 Sulzer LEAN approach to solve issue Goals KAIZEN Customer First PDCA Visual Management Broad based education & training Eliminate sources of waste: Waiting (stalling, server response time) Unnecessary hand-off electronic data (too many s, unnecessary involvement of Next higher Level manager) Unnecessary motion (too many clicks, confusing navigation) Over-processing or incorrect processing (complex process with many iterative steps) Defects (system errors, incorrect user operations) Adopting SuccessFactors to e-hr strategy at Sulzer slide 13 Simplifying process Kaizen point value approach 4 stages, 9 steps 3 stages, 6 steps 13 Quick Reference Guides in Quick Reference Guides in 2012 Adopting SuccessFactors to e-hr strategy at Sulzer slide 14 Page 7
8 Technology: working within limitations. Examples Adopting Sulzer s bonus regulations Not capping on single Financial Objective Pre-calculated achievement lookup table Adopting SuccessFactors to e-hr strategy at Sulzer slide 15 Adopting SuccessFactors to e-hr strategy at Sulzer slide 16 Page 8
9 Technology: working within limitations. Examples Adopting Sulzer s bonus regulations Not capping on single Financial Objective Capping on Total Financial Objective ratings Different employee grade requires different objective weightings Pre-calculated achievement lookup table Variable pay module Release different personal objective forms Adopting SuccessFactors to e-hr strategy at Sulzer slide 17 Warning check for total weights based on form configuration Adopting SuccessFactors to e-hr strategy at Sulzer slide 18 Page 9
10 Technology: working within limitations. Examples Adopting Sulzer s bonus regulations No single unifying report Non-user-friendly goal import Not capping on single Financial Objective Capping on Total Financial Objective ratings Different employee grade requires different objective weightings Different data fields from different reports Global HR Heads not comfortable to have goals upload centrally Pre-calculated achievement lookup table Variable pay module Release different personal objective forms Excel Pivot & Lookup functions Manually entered Financial Targets Adopting SuccessFactors to e-hr strategy at Sulzer slide 19 Building support, control and accountability: 2 - prong approach End-users HR Admins Webinar training Central support resources Hotline Strengthening internal support network SuccessFactors to provide more reliable and timely technical support and advice Adopting SuccessFactors to e-hr strategy at Sulzer slide 20 Page 10
11 Discussion point What is your experience? What is your approach to solve issues? Adopting SuccessFactors to e-hr strategy at Sulzer slide 21 Expectations to SuccessFactors User-friendly, robust reports Knowledg e-able, prompt and serviceoriented Technological improvements Competent consultants Help resources Comprehensive Admin help guides Adopting SuccessFactors to e-hr strategy at Sulzer slide 22 Page 11
12 Going forward Continue the e-hr strategy journey Recruitment module: Launch date July 6 th Other modules in pipeline to be completed in Q4: Variable Pay Competency Appraisal Adopting SuccessFactors to e-hr strategy at Sulzer slide 24 Page 12
13 Contact Info Minh Huynh e-hr Specialist Zürcherstrasse 14, Winterthur, Switzerland Tel: Adopting SuccessFactors to e-hr strategy at Sulzer slide 25 Back up slides Adopting SuccessFactors to e-hr strategy at Sulzer slide 26 Page 13
14 Simplifying process Adopting SuccessFactors to e-hr strategy at Sulzer slide Process Adopting SuccessFactors to e-hr strategy at Sulzer slide 28 Page 14
15 Lesson learned Process Simplifying process route map Controls & Accountability More HR controls and reviews Clearly define the responsibility of staff in a decentralized and global structures Information More training and support channels for users and HR admins Technology Clearer and less confused navigation Improved form clarity Checking mechanism embedded in form Adopting SuccessFactors to e-hr strategy at Sulzer slide 29 Applying Sulzer LEAN concept to Performance Management Process Sulzer LEAN Principle: KAIZEN! Goals Customer First Eliminate sources of waste: Waiting (forms got stuck) Unnecessary hand-off electronic data (Next higher level manager) Unnecessary motion (too many clicks) Over-processing or incorrect processing (complex process with many iterative steps) Defects (vulnerable areas for incorrect operations) Adopting SuccessFactors to e-hr strategy at Sulzer slide 30 Page 15
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