HR Outsourcing with NGA. Our Experiences To date
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1 AstraZeneca HR Outsourcing with NGA Our Experiences To date Jenni Hardy, Lee Compeers
2 Introduction Jenni Hardy AZ Global HR Services Elena Schackman NGA EMEA Regional HR Services 2
3 Summary What AstraZeneca & NorthgateArinso set out to achieve... our business case & ambition assumptions The story so far countries live with the core solution in 2 years the challenges along the way If we had our time again... what we would repeat and do differently;
4 Dynamic Business Change Moving East Shifting business shape
5 NGA Company facts HR Consulting HR Technology HR Outsourcing 1,000+ ERP HR implementations globally 3,000+ ERP HR specialist associates 6 million+ employees served on NGA installed ERP systems Global Footprint 8,500 staff in 35 countries 1 out of 4 of Fortune out of 3 of Fortune 10 supporting over 1/3 of the UK workforce 400 ResourceLink customers 1,100 Preceda customers 50+ euhreka customers 5 EOD/EOP early adopter customers 750,000 employees on euhreka 1,000+ international customers 2,700 large/medium customers 7,000 small/medium customers 7 global HR service delivery centers 30+ HR service delivery points worldwide Clients in over 100 countries speaking 25+ languages Over 100 HR BPO customers Peoplesoft install base 600,000 employees served 7 customers 5
6 Vendor selection process Survey Business Strategy Weigh Options Select Right Partner Align Confirm Expectations Set Priorities Define Tasks Implement Monitor Measure Improve
7 Business Case Rationale for AZengage and NGA Challenge Solution: HRO powered by euhreka (EOD) Manage 60,000+ employees in over 100 countries, No global HRIS in place patchwork of 900 applications Significant HR cost improvement required Global Talent Management strategy needed urgently PeopleSoft platform (partly rolled-out) outdated Innovation and best in class HR services needed Changing business context: cultural and behavioural change needed to cope with changing environment (drug pipeline) Results Standard service and processes to fast track process to drive world class processes into AZ Easy to access (internet) and simple to use Available for all employees in all countries in many languages All transactions available through self service Minimal effort to deploy this out of the box software Change management services included to support the deal Why NGA Uniform HR systems landscape 900 systems reduced to 1 global system PeopleSoft and others replaced by SAP HCM globally SAP global rollout less costly compared to complement and upgrade the partially installed PeopleSoft system Change management utilized in addition to other transition services Minimal resources required of AZ IT department HRO solution powered by SaaS technology User experience Low cost through multi-tenant and productized platform Multilingual capability, balance global/local expertise Integrated payroll expertise Strong references & proof of delivery Collaborative working relationship SAP-NGA-AZ Executive confidence
8 Our shared ambition AstraZeneca A global emerging partner we could grow with/ learn to effectively Outsource Enabled core HR & e2e talent management SAAS NGA A global partner for full HRO product from which we could grow future business/global footprint First of its kind implementation in the industry Leverage competitive advantage
9 NGA business model: all around HR HR Consulting The world s largest HRcentric business consulting and systems integration practice supporting a variety of ERP-focused and best-ofbreed technology platforms In HR Technology, we provide the widest choice in HR-centric software options available in the marketplace. We enable platform-based HRO through our IP. HR Outsourcing Through 7 primary service delivery centers and 30+ total service locations, we deliver HRO services in 25 languages in over 100 countries around the world. 9
10 Global Service Delivery Network 80 employees KATOWICE, PL GRANADA, ES 420 employees 270 employee s HYDERABAD, IN KOCHI, IN 471 employees 30 employee s DALIAN, CN MANILA, PH 525 employees BUENOS AIRES, AR 285 employees NGA has 30+ service delivery points supporting more than 25 languages across the globe, including 7 Global Service Delivery Centers.
11 Processes in scope Level1 Global Processes (30) 3010 Performance Management 3020 Rewards 3030 Talent Management / Succession Planning 3040 Learning 3050 Recruiting Country Processes (20) 2000 Payroll 2010 Benefits 2020 Time & Attendance 2030 Workforce Administration Enable Processes (10) 1000 Organisational Management 1020 Global Reporting Support Processes (40) 4000 Application Management Outsourcing 4010 Infrastructure Services Outsourcing 4020 Contact Center 4030 Quality management 4040 Service Delivery Management Interfaces ARCHITECTURE (50) 5010 Data Migration
12 Employee Manager Business Partner T1 Business Agent Partner T2 - SME T3 Payroll Manager LSDM AMO lead Approved By: Date: Start Request change Organiszational Structure Criticize change request Check change request MAINTAIN ORGANIZATIONAL STRUCTURE.VSD Approve request? Authorization OK? yes Escalate SCM ticket to T2 Analyze consequences C no no Inform Manager Inform Business Partner Approve request? yes yes no End End Inform Business Partner Adjust and/or complete request change Apply change in organizational structure End Convert request change in SCM ticket no Data correctly applied? Inform 3 rd parties & departments involved if necessary yes Request change Organizational Structure Maintain org.struct. Archive Start Close SCM ticket End The Process Design Methodology Level of Detail Level 1 Level 2 Level 3 HR Process Framework Process Hierarchy & SIPOC Logical combination of sub-processes abstracted from main HR Processes Process Swim lanes Role-Activity mapping describing the sequence of activities mapped to roles 1. Develop Recruit & Staff Framework 2. Develop Recruit & Staff plan 3. Develop Branding & communication 4. Talent Database Management 5. Vacancy Need Recruit & Staff 6. Job Profiling 7. Sourcing MAINTAIN ORGANIZATIONAL STRUCTURE.VSD 8. Job Posting Global OpX 9. Assess & Select 10. Hiring management 11. Measure & evaluate Recruit & Staff process English Level 4 Level 5 Standard Operating Procedures Detailed description of roles and activities including system support, decisions, responsibilities and document flow of a sub-process Work Instructions Function- or work based guidelines describing the way activities within a process need to be executed AZ part: 30 languages NGA part: English 12
13 Transition approach Integrated Program Plan Global On Boarding Approach Global Program Set-up & Preparation Global Template & Planning Global Realization Pilot Country Rollout Global realization Global Realization Final Template & Core System Global Realization Roll-out all countries (in waves) Global Maintenance & Support Waves and Country Rollouts Prepare Fit-Gap Design Build Deploy Close Operate Prepare Fit-Gap Design Build Deploy Close Operate Prepare Fit-Gap Design Build Deploy Close Operate Integrated Country Project Plans (Large SAP, BDO medium, BDO small) 13
14 Fit To Standard approach Kickoff Global NGA + AZ to host Audience : All key stakeholders Overall Project objectives and context Schedule and resource plan ½ day Fit to Standard blueprint Output of the 4 day fit to standard workshop Document with all questionnaires filled in all issues clarified and described (English) Exceptionally an open issue can be carried forward Signed off by the HRD Data migration Cycle 1 DM activities organized and executed by global team as per plan ews early solution build Earlier start of AZengage frontend build based on signoff to allow for earlier start of testing Payroll and time blueprint Detailed description of payroll and time rules in the local language Detailed review with Q&A foreseen to ensure first time right WFA update triggered by payroll & time if required Payroll and time blueprint to be signed off by the HRD Plan & Define Tollgate Formal acceptance of the tollgate Start of payroll build activities ~10 weeks Fit To Standard Fit to Standard workshop Global NGA + AZ to host NGA operations to participate to cover the service aspects Audience : HRD - business Explain, discuss and finalize OM, WFA, global time & pay interaction and global reports Confirm the interfaces scope Confirm the key data migration parameters English discussion and documentation; by exception facilitated Payroll and time workshops AZ Payroll manager / clerk Local NGA / BDO payroll and time consultants Workshop 1 2 approach for payroll and time calculation rules detailed schedule to be agreed depending on expected complexity Workshops in local language 5-6 weeks Interfaces workshops AZ local/global HR IS NGA Global (and Local) Interface consultants Agreed workshop schedule and format based on volume and expected complexity of workshops Interfaces blueprint Detailed functional and technical design of the local interfaces in scope Interfaces blueprint to be signed off by the HRD 14
15 Current status and year ahead Live today Jan 2013 Countries 104 US and Sweden Languages 25 Global Processes Performance Management Learning # Employees DoA (2012) Reward (2012) Succession (2012) Recruitment (2013) 15
16 AZengage Governance return authority 1. Executive Leadership Board (AZ / NGA) Stakeholder engagement; approval based on DOA 2. Programme Steering Committee (AZ / NGA) Decision making body; approval based on DOA 3. Transition (AZ / NGA) Led by Budget Owners BAU Operations (AZ / NGA) 4. Wave Level Regional Level (AZ / NGA) 5. Country Level Country Level 16 Title of presentation 00 Month Year (Go Header & Footer to edit this text)
17 Assumptions we made (that turned out to be accurate vs not) AstraZeneca HR are the biggest resistor to the change Open book drives trust Cultural fit Partnership is crucial More languages the better NGA deliver 80% Global standard solution NGA Ability to jointly implement challenging roll-out schedule Ability to implement first rate joint people readiness Leverage the global footprint and expertise Ability to achieve self service targets within year 1 Under 25% system localization
18 What it takes to get 100+ countries live... in just 2 years AstraZeneca NGA Visible ownership by the business Good project & commercial management Ambitious & pace setting CHRO Start small; leave large countries till last Resilience x 100 and more Focused & determined project management Visible senior leadership global, regional & local Visionary CEO Commitment to governance Strong process documentation & adherence Solution expertise (brightest brains)
19 The challenges along the way AstraZeneca Payroll over-validation Delayed Functionality Controls & SOx We didn t know what we didn t know. Time vs Cost vs Quality NGA Moving from consultants to delivery of standard Consistency of service and solution across country/region Expectation management of what will be the new world
20 Pros & Cons of advisors Fill critical Capability Gaps Know what questions to ask & when Objective Remediation The third person in the marriage - mistrust Manage the $$$ vs benefit rigourously
21 What we would repeat and do differently Repeat Spend time detailing the contract; then work reality through together post deal signing e.g. SLAs Start small and build Talk to others who are ahead on the journey Agree local ways of working from day 1 Strong governance in place Do Differently Define good enough early Review and consistently apply go-live go/no go criteria Manage transition from project to operational phases more closely Provide more context around core issues & requirements
22 AstraZeneca HR Outsourcing with NGA Our Experiences To date Jenni Hardy, Lee Compeers
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