Project Vie - Unilever. Where we were, …… Where we were, …… and where we’re going.
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Transcript of Project Vie - Unilever. Where we were, …… Where we were, …… and where we’re going.
Project Vie - Unilever
Where we were, ……Where we were, ……
Where we were, …… and where we’re goingWhere we were, …… and where we’re going
Health Warning
There is no ‘off-the-shelf’ solution available (‘Leap of Faith’) There is NO single provider that can currently do
everything, everywhere. The Scope of Work ‘challenge’ was indeed challenging! All businesses using outsourcing have complaints as well
as compliments TSA ‘greenfield’ vs. P&G ‘brownfield’ Everyone points to the client as one of the major obstacles
to successful outsourcing
Introduction
What did we ask for in the RFP?
What are you buying?
A service provider delivering all of: Service foundation – getting the basics right
Consistent services delivered globally Transformational approach (Industry term, versus ‘transactional’)
Extended services – building on the foundation Existing service provider established infrastructure will have gaps Work in partnership to achieve full scope
PeopleSoft implementation and ongoing support – completing the implementation
HR organization transformation – in parallel with outsourcing services Optional BPO partnership support for the transformation
The Savings Case
8
Sourcing Dimensions
• Scope– Process Scope– Geographic Scope– Languages– Desired Process Maturity
• Delivery Model– Delivery Style– Delivery Channels– Service Delivery Locations
• Resources– Use of Delivery Assets– In-scope People– Severance Approach– Retained People
• Change Approach– Transition Phasing Approach– Transformation Phasing Approach
• Technology– HRMS – PeopleSoft– Other Technology
• Relationship– Pricing Model– Reliance on Pricing Transparency– Desired Relationship with Provider– Desired Contract Term
MaximisingCost Savings ?
MaximisingOrganisational
Comfort
30% to 50% AnnualRun Rate Savings
10% to 20% AnnualRun Rate Savings
HR Information Solution 10%
Geographic Solution 5%
Operations Solution 15%
Service Provider
Experience 10%
Managing Risk 10%
Cultural Fit 5%
Governance Approach 5%
Pricing 20%Transition
Solution 10%
Transformation Solution 10%
Solution
Partnership
PriceImplementation
Risk
Price has a ‘wild card’ effect – if the desired price is not achieved then the bid is unsuccessful
Decision Process
HR-T Business Case – Savings Calculation
(a) Cost of HR - Unilever Baseline (Assumed and Retained) plus Unilever Avoided Costs
(b) Cost of HR in an outsource scenario - sum of:1. Cost of Service Provider Solution
1. SP Mobilisation, Transition and Transformation Charges2. SP Annual Service Charge
2. Retained HR Shared Services3. Unilever Service Provider and Project Management costs4. Redundancy costs5. Retained Organisation Expense
1. FTE cost less Retained Org FTE savings6. 3rd Party Spend less Buying Savings7. Additional Unilever costs due to Outsourcing e.g. toll free
telephony, systems decommissioning costs
Cash Flow (b) – (a) equals savings
Transition & Transformation
Transition The period of time that starts with the transfer of
responsibility to the service provider
Transformation The project work that results in work moving into the
strategic delivery model
Transition and Transformation
Financial Impacts Cost of Transition Project resources & backfill Double running costs Timing of payments Impact of Delays
Solution Overview
Core Service Delivery Model
Solution Overview
Retained
Outsourced
Partially outsourced
Solution - Financial Considerations
Fixed Price vs Variable Invoicing – central vs distributed Invoice timing Delays to Country Go Live Partial Go Live Situations Change Requests - Local Work instructions True Up / Down Disappearing baseline Savings Ownership
Technology Solution
Source of all HR information Automates HR processes
Drives efficiency
Enables Manager and Employee Self Service Single global system for HR (Peoplesoft) Savings tracking
Why is information technology important?
It is going to get tough, so we will need to be equally tough in response
Summary
HRRabbit
Summary
HRRabbit
HRRabbit
It is going to get tough, so we will need to be equally tough in response
“Everything will be better tomorrow”
"History is the version of past events that people have decided to agree upon." : Bonaparte (1769 - 1821)
"History will be kind to me, for I intend to write it." : Churchill (1874 - 1965)
Final Thoughts