HR Transformation Putting the Pieces Together. Amway

Transcription

1

2 Putting the Pieces Together Amway

3 Who we are Timeline Reasons for transformation How Lessons Learned

4 Where We Work

5 Who We Are Amway Privately Held 2 Families Founded in 1959 Headquartered in Ada, Michigan More than 17,000 Employees Worldwide $8.4 Billion 09 Sales Access Business Group (ABG) Alticor Company Enterprises (ACE) Nutrilite and Artistry Products Amway Hotel Properties

6 What We Sell

7

8

9 Pre 1995 Traditional, functional HR organization structured to: Support large non-union Manufacturing/Distribution organization Decentralized international marketing and selling organization No long-term strategy Growth thru geographical expansion High level of internal satisfaction Business felt no real competitive threats Value in Brick and Mortar

10 1995 Client survey on HR s effectiveness Importance Effectiveness Based on Saratoga metrics Originally focused on Staffing

11 1995 Findings Acceptable results in most areas Too many touch points within HR Each area attempting to develop its own relationships Each department in HR talked a different language Touching an elephant No single person within HR knew their business

12 Responses to survey Did not change the HR structure Began to emphasize Generalist duties Assigned HR Advisor to single client Expanded their Employee Relations and Staffing focus Revised skill set Executive relationships Process orientation vs. results Sense of urgency Holistic view & understanding of client Political savvy Hub of the Wheel

13 Establishment of the Burning Platform Over extended Decreased Profitability Losing market share Took our eye off the ball Too Headquarters centric Not enough focus on growth markets Influence of newly appointed external Board members

14 Response Client teams selected to examine and redesign their areas HR actively involved with client design teams HR actively involved in its own redesign Heavy communications during change

15 Implementation of changes New company structure Autonomous business units Holding company created Alticor Increased focus on Global Supply Chain Selling organization Marketing organization Beauty and Wellness focus Mergers and Acquisitions

16 Alticor HR Operating Model HR Consulting Centers of Expertise ACE Companies Amway Access Business Group Alticor (Corp HQ) Talent Management Education, Development, Performance Consulting & Succession Planning Talent Acquisition & Communications Compensation, Benefits, Medical/ Disability, Wellness/Life Resources, People Services, HRIS & Optimal You Business Intelligence Know the Client Know Client Needs Optimize HR Processes within Client Apply HR Products & Tools Apply HR Practices Apply HR Processes Act as Voice of Client within HR Continuous Improvements Lead Development Teams Own Products, Tools, Processes Participate on Development Teams Suggest Improvements Develop Products & Tools Develop Services Develop Processes Manage & Improve Processes

17 Implementation of Changes New HR Operating Model Re-designed HR processes, tools, deliverables and focus Increased transparency and sharing of financial data

18 Install & Implement New HR Operating Model Business Partner focus Assist clients with final installation of new structures Centers of Expertise HR Service Center Delivery and refinement of newly developed HR processes and tools Pay for Performance New Incentive Plans Broad Pay Bands Talent Management/Succession Planning

19 Uncomfortable Plateau Business Incremental business growth No new large markets Erosion of profitability Loss of market share Human Resources Not comfortable want to prepare for next change

20 Uncomfortable Plateau Human Resources Continued with it s evolution Transactional Business Partner Consulting Prepare existing staff/hire new New HR competencies New Performance Expectations/Standards Cobblers Kids Articulate HR s Value Proposition

21 Growth Thru Innovation Revised Business Focus Emphasis on organic growth vs. Geographic expansion Review of key processes Innovation Consumer Driven Marketing Acquire, incent and develop innovative talent Establish effective global strategic planning process Develop and implement business intelligence framework

22 Growth Thru Innovation Global Review and Design Teams Management Priorities Develop and nurture culture of innovation Enhance Performance driven culture Develop Consumer orientation Target for Implementation 2008 Actual implementation on selected basis began in 2007

23 2008-Current HR Consulting Adjustments HR Service model not changed All Domestic HR Consulting aligned under one Executive started with four Improved communications Aligned overall strategy Provided effective links to International HR Employee Relations duties removed from Consultants Separate group developed Consultants have more time Reduced split allegiance management/employee advocate

24 2008-Current HR Consulting Adjustments Continued to upgrade Consulting Group New, experienced staff with proven consulting skills and competencies Formal training - USC In House development Change Management Stretch Assignments

25 Revised Competencies Personal Factors Effective Communications Building Trust and Credibility Adaptability Influencing and Negotiating Collaborates Passionate about who we are and what we do Strategic Understands the Business Makes Sound Recommendations Demonstrates Strategic Focus Translates strategies into actions and plans

26 Revised Competencies Organizational Effectiveness Demonstrates Leadership Achieves Results Champions new initiatives Serves as catalyst for change Builds customer insights thru all available channels HR Delivery Organizational Design Performance Management Total Rewards Employee Engagement

27 HR Value Proposition Increase the value and flexibility of the workforce Partner in organizational design to achieve desired outcomes: Business Customer Employee Develop, administer and leverage total rewards for competitive advantage Foster and maintain employee engagement through a positive work environment

28 Current Training and Skills Development Future Next Steps