ZONEPaving the road for digitalized HR processesHeini Kämi 15. March 2016 HRTechnology London

Company Overview Company name:

Headquarter location:

Industry:

Main products/services:

Operating countries:

Annual turnover:

# of employees:

Cargotec shapes the cargo handling industry for the benefit of its customers and shareholders. Our products are present in every major cargo hub worldwide. They are used in ships, ports, terminals, distribution centres, heavy industry and in on-road load handling globally. Cargotec's business areas MacGregor, Kalmar and Hiab are recognized leaders in their fields.

Operations in more than 100 countries

Sales 2015: approximately EUR 3.7 billion

Approximately 11,000 employees

Cargo handling solutions

Helsinki, Finland

Cargotec Corporation

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Agenda

1. Starting point – Key change drivers & targets

3. Key success factors and business benefits achieved

2. Project and solution

“The best thing after sliced bread.”

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Starting point - Key change drivers

Lacking control and understanding of

organization & headcount

Inability to effectively manage a complex organisation

140 different HR info systems to manage people related data

Non standardized HR processes

Resources fragmented across

organizations, lacking coordination

HR policies loosely implemented Need for

centralizedHR system

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Starting point - Key targets

Create basis for organizational

analytics

Fact-based people management

Consistent and transparent HR

information availability

Standardize HR processes globally

Get a grip of resources across

organization

Follow-up of HR policy

implementation Uniform HR system

PEOPLE MANAGEMENTGOES DIGITAL

WHAT IS ZONE?Cargotec’s online personnel management system for managers, employees, HR and the Executive Board

HOW MANY SYSTEMS?One global personnel management system for all (Cargotec, MacGregor, Hiab and Kalmar) to streamline procedures

WHAT WILL BE THERE? ZONE includes personal development planning (PDP) info and process, employee life-cycle and employment details . Also yearly compensation planning is covered in ZONE

LESS WHAT?Less manual work, excel sheets and paper work

MORE WHAT?More time saved, transparency and accurate data

WHEN?Launch in December 2014, training started in Q4

Phase 1 Dec 1 2014 Global head count data

including external employees

Global comparable salary data

Organization structure Global job architecture Manager, Employee and HR

portal to manage data

Phase 2 Dec 1 2014 Target setting and target

cascading to organization Performance Review Performance Evaluation and

calibration of results

Phase 3 2015 Spring Global annual salary review

process Bonus payout for 2016

Project – What we needed to get done

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• Data collected from 51 countries, 92 data providers

• 11,000 employees • 800 externals

Phase 4 2016 Spring Succession planning Talent management

Project Overview

Project duration:

Go-live date(s):

# of users implemented:

Additional users planned:

Estimated project effort:

All Cargotec 10.500 employees out of which 8000 login users and all 800 externals

No, system fully implemented

1600 man days

1 December 2014

8 months

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Solution – We call it ZONE

Competitive advantage through world-class HR business platform. There is now a platform for fact-based business transformation through which we can manage Cargotec global organization, workforce and performance and use it to enable strategy deployment and follow-up

Operational efficiency and saving: Different ways of working were transformed into one and manual processes digitalized which realizes in massive savings in time spent in the process by HR, line management and employees

Transparency and control: HR policies, processes and control points are all in the same global tool, fully transparent and fully auditable

Future business benefits plannedContinue utilizing ZONE as business transformation platform to support Cargotec turnaround e.g. by introducing talent management to enable leadership development. ZONE is paving way in creating digitalization culture in Cargotec

Business benefits achieved

We are shaping the future of cargo handling