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The Dbriefs HR Executive series presents:

The Global and Local HR


Function: A Balance of
Scale and Agility

Filip Gilbert, Partner, Deloitte Tax & Consulting Sàrl


Michael Stephan, Principal, Deloitte Consulting LLP

June 11, 2014


Agenda

Introduction of facilitators

The global/local challenge

The common model

The case for change

The new model

Key steps for success

Copyright © 2014 Deloitte Development LLC. All rights reserved.


Poll question #1

Which is the most urgent and important trend for large


companies?
• Global HR and talent management
• Leadership
• Retention and engagement
• Workforce capability
• HR technology
• Unsure/NA

Copyright © 2014 Deloitte Development LLC. All rights reserved.


The global/local challenge
Creating global standards, platforms and service centers
only addresses part of the challenge

– HR models need to bring scale to enable speed and growth in


the business
– A key driver of a globally integrated HR strategy is the need
for talent mobility within the company
– HR operating models need to be flexible enough to allow for
local implementation
– Local labor markets have vastly different dynamics that require
agility to customize solutions

Copyright © 2014 Deloitte Development LLC. All rights reserved.


The global/local challenge
HR readiness to implement global mobility and career programs
among the lowest rated

Executives agree that they are not adapting HR and talent


programs well to local needs
Copyright © 2014 Deloitte Development LLC. All rights reserved.
The global/local challenge
85%

42%
Of global companies believe:

Must “transform HR to meet


Of global companies report:
new business priorities”
over the next 3 years
Impact of HR operations
on organizational success
is “weak”

57% want to transform HR now


28% plan to transform HR in 1-3 years

Source: Bersin by Deloitte High Impact HR Research April 2014

Copyright © 2014 Deloitte Development LLC. All rights reserved.


The common model - benefits
Many organizations have been implementing a shared
services model for HR to reduce costs and improve
service delivery

• Benefits
– Reduces cost to operate; saves money
– Increases services to managers and employees
– Provides global scale
– Leverages a common platform to deliver consistent services
– Centralized processing

Copyright © 2014 Deloitte Development LLC. All rights reserved.


Poll question #2

What do you believe is the most common challenge with the


common model?
• Not flexible enough to implement in local markets
• Not agile enough to improve the speed of delivery
• Does not account for widely different challenges that
emerge from operating in dozens of individual markets
• All of the above
• Unsure/NA

Copyright © 2014 Deloitte Development LLC. All rights reserved.


The case for change
As organizations become increasingly more global, the
challenge will exist at the local level:

• How do companies aggressively recruit and build


leaders in fast growing markets?
• How should organizations retain employees in key
regions?
• What is the most effective strategy to developing talent
in priority markets?

Copyright © 2014 Deloitte Development LLC. All rights reserved.


Balancing global and local

Globalized Elements Regionalized Elements

Driven by the strategy and goal of global Driven by language / regional business /
consistency in approach and delivery legislative / regulatory requirements

Global Roles and Key Responsibilities Regional Roles and Key Responsibilities

• Define global strategies, tools, processes and • Provide input into global strategies, tools,
Global policies, based on leading practices Regional processes and policies
CoE • Develop off-the-shelf (turnkey) solutions, CoE • Amend tools, processes, and policies to meet
deployment strategies, governance and coach HR local needs, as required by local legislation /
to execute regulation

• Deliver standard and ad hoc reports • Provide inquiry resolution


• Conduct root cause analysis • Manage day-to-day relationships with regional
HR Shared
HR Shared • Assess and amend data quality vendors
Services -
Services • Manage day-to-day relationships with global • Develop and deliver communications
vendors Regional
• Complete all logistical tasks associated with
• Manage the HR technology event/meeting planning

Copyright © 2014 Deloitte Development LLC. All rights reserved.


Examples of services that are better
provided locally
Some services are done more effectively when local –
examples include:

– Manage visa and work permits


– Event management and training logistics
– Interviews
– Labor relations
– Change management support
– Coaching and leadership development

Copyright © 2014 Deloitte Development LLC. All rights reserved.


The new model
Organizations should create a high impact HR operating
model that combines global integration with local
“optimization”

– Implement a global technology platform that provides common


HR standards, frameworks, and tools
– Empower local teams to innovate and to customize corporate
programs
– Define HR success not simply in terms of cost-cutting, but by
HR’s ability to drive business performance and growth
– Bring localized services to the customers in their own
language with knowledge of local policies
– Manage relationship with local service providers and offer on
premise support to staff
Copyright © 2014 Deloitte Development LLC. All rights reserved.
Key characteristics of high impact HR
– Federated to Coordinated: Silos replaced by governed
coordination across internal and outsourced capability
– Generalist to Advisor: Business HR roles are embedded in
the business and empowered by data & insights
– Static to Fluid: HR team members may work as part of
multiple teams or support more than one business
– Center to Community: CoEs are enterprise-wide
communities with central and virtual / embedded resources
– Admin to Operational: Operational Services deliver effective
administration and functional specialty services
– Technology to Experience: HR technology is intuitive and an
integrated part of the HR customer experience

Copyright © 2014 Deloitte Development LLC. All rights reserved.


Benefits of having a hybrid model
Recognizing that part of the service delivery should be
provided locally offers a number of benefits:

– Combine different HR roles with one person to optimize the


delivery of local services. There is the emerging new role of
local HR Generalist
– Better align the delivery of specific projects and services with
the rest of the organization through embedding of resources
– Integrate local HR staff in a feedback loop to enable
continuous improvement and provide direct feedback to the
SSC and CoEs

Copyright © 2014 Deloitte Development LLC. All rights reserved.


Creating linkage: High impact HR drives
business performance High Impact HR
Multiplier

Business
Outcome

Source: Bersin by Deloitte High Impact HR research


Copyright © 2014 Deloitte Development LLC. All rights reserved.
Poll question #3

Which countries are struggling to adapt from global


“rationalization” to “optimization”?
• Brazil
• Japan
• India
• United Kingdom
• Belgium
• Unsure/NA

Copyright © 2014 Deloitte Development LLC. All rights reserved.


Who is leading, who is lagging?

Source: Global Human Capital Trends 2014: Engaging the 21st-century workforce
Copyright © 2014 Deloitte Development LLC. All rights reserved.
Key steps for success

• Leverage global technology


• Common global platform to support the global HR organization
• Offer easy-to-use self service capabilities to managers and
employees

• Rationalize core global services


• Establish a core set of services for HR and Talent communities of
expertise
• Learn from local business partners to determine leading practices
in the field

Copyright © 2014 Deloitte Development LLC. All rights reserved.


Key steps for success (continued)

• Encourage country initiatives within global processes


• Local HR leaders create, customize and deliver local programs
• Leverage the common, standard infrastructure to drive impact at
the country level

• Create deep specialists


• Move HR generalists into the role of HR specialists
• Operate as a “network of expertise,” sharing skills with each other

Copyright © 2014 Deloitte Development LLC. All rights reserved.


Key steps for success (continued)

• Build HR “skill masters”


• Invest in training, certifying, and developing the HR team
• Create connection to the larger community of leading practices and
new ideas in the marketplace

• Governance
• Think through the governance and reporting lines to make sure
that the local part of the organization remains aligned with the
overall objectives of the function

Copyright © 2014 Deloitte Development LLC. All rights reserved.


Poll question #4

Which recommended step do you believe will be the biggest


challenge to implement in your organization?
• Leverage global technology
• Rationalize core global services
• Encourage country initiatives within global processes
• Create deep specialists
• Build HR “skill masters”
• Unsure/NA

Copyright © 2014 Deloitte Development LLC. All rights reserved.


Question and answer
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Contact info

Filip Gilbert
Partner
Deloitte Tax & Consulting Sàrl
fgilbert@deloitte.lu

Michael Stephan
Principal
Deloitte Consulting LLP
mstephan@deloitte.com

Copyright © 2014 Deloitte Development LLC. All rights reserved.


This presentation contains general information only and Deloitte is not, by means of this
presentation, rendering accounting, business, financial, investment, legal, tax, or other
professional advice or services. This presentation is not a substitute for such professional advice
or services, nor should it be used as a basis for any decision or action that may affect your
business. Before making any decision or taking any action that may affect your business, you
should consult a qualified professional advisor. Deloitte shall not be responsible for any loss
sustained by any person who relies on this presentation.

Copyright © 2014 Deloitte Development LLC. All rights reserved.


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