Business & IT

Pieter Schoehuijs, CIOFebruary 2013

• Introduction

• Staffing Observations

• Approach to Skills Development

• 3 Examples that work for us

Agenda

2

Some key facts about AkzoNobel

2011• Revenue €15.7 billion• 57,000 employees in 80 Countries• 40 percent of revenue from high growth markets• A leader in sustainability: Number 1 in Dow

Jones Sustainability Indexes

* Before incidentals

Revenue by business area EBITDA* by business area

3

• Grow to €20 billion revenues

• Increase EBITDA each year, maintaining 13-15% margin

• Reduce OWC/revenues by 0.5 p.a. towards a 12% level

• Pay a stable to rising dividend

• Top quartile safetyperformance

• Top 3 position in sustainability*

• Top quartile performance in diversity, employee engagement, and talent development

• Top quartile eco-efficiency improvement rate

* SAM annual benchmark

Our ambition is to be the world’s leading Coatings and Specialty Chemicals company

4

Our IT environment sure shows our size and legacy

3.000-4.000 server based applications, incl. 84 ERP systems (currently)

2.558 nodes on data network, incl. 1500 stores

IT internal headcount 992 FTEin 47 countries

Starting to build comprehensive IT processes

Many partners/suppliers

41.000 PCs, running 1000+ apps/versions

>10.000 mobile devices

4.500 servers, 15 data centers (with ≥ 30 servers)

5

Four strategic “must win battles” have been formulated to transform IT

Continue to drive toward shared services model of commoditized systems and technology platforms

Simplify IT landscape e.g. regarding application portfolio, infrastructure and key metrics

Establish Integral IT management through teamwork and transparency regarding people, financials, projects and clear governance supporting business objectives

Transition IT to be more focused on optimizing business processes and capabilities rather than technology implementation and support

6

7

Typically, IT organizations lag reality

• E.g. in the areas of

– Geographic diversity

– Age distribution

– Skills

• Due to

– Outsourcing

– Lack of job rotation

– Insufficient focus on development

– Legacy support needs

8

Likewise, AkzoNobel IT is not balanced

992 IT Employees in 47 countries

but the bottom of the pyramid is missing!

<30

30-34

35-39

40-44

45-49

50-54

55-59

>60

0% 5% 10% 15% 20% 25%

9

How do we become (and stay) the IT organization of choice?

Attract, build and

retain the best talent

DiversifyGrow Talent

Balance SkillsNourish Culture

By:

• Assessment

• Communication

• Motivation

• Challenge

• Internal Rotation

Traineeships

Training / Development

......and much more

10

Example 1; Traineeships work!

• Concept:

– A program to develop young talents into top IT-professionals (caliber: future CIO)

– The program offers young talent 4 jobs in 2 years including recruitment, support, education & coaching

– Cooperation and knowledge sharing between the participating CIO’s and organizations, current class of 5 people rotates between 4 companies

– Perfect for jr consultant assignments, e.g. in projects

• In 2½ years, already 8 passed through our organization and 5 are currently working

Embracing the courage and curiosity to ask questions!

11

Example 2; Develop culture towork smarter (not harder)

• Concept:– Core Skills program to drive change– Mixed groups spend a week on personal and

team leadership– Content includes the use of feedback,

managing expectations and team dynamics– Keep people engaged, curious, aware,

competent, communicative and eager to learn

• In 4 years, already 300 colleagues passed through this training

Significant cultural impact !

12

Example 3; External training is essential

• Leading by example starts at the top

• Nyenrode/Delft MBA Business & IT

– Modular, flexible

– Program Review Board ensures demand driven content

• >70 Students currently following this program from many different organizations

Executive Development stimulated from the top grows tomorrows leaders today!

13

MBA in Business & IT

• Strategy and Organization

• Ownership of Enterprise and Governance

• Change Management and Organizational Development

• Risk and Finance

• Market, Law and Business Ethics

• Business Processes and Technology

• Leadership and cooperation

• Demand and Supply Management

• International study trip