Transcript Client Case Study: Faurecia - ADP

HR BPO Journey
Charles-Henry Duroyon
Group HR Systems & Efficiency Director
Agenda
1. About Faurecia
2. Setting the Scene – Building the sourcing case
3. Achievements to date
4. Key success factors
5. Influencing the future
Faurecia at a Glance
Annual Revenue
Worldwide Presence
Employees
$15 billion
220 sites in 32 countries
70,000 employees
including 791 HRs
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Setting the Scene : HR in Faurecia
EVP Group
Human Resources
Faurecia
University
Compensation Benefits
France
CBG HR
Germany
ESBG HR
North America
Recruitment
ISBG HR
Industrial Relations
MSBG HR
Countries
PG HR
Management &
Development
ASBG HR
Portugal
Slovakia
Employee Empowerment
Spain
HR Efficiency
Information System
South America
HR Controlling
United Kingdom
791 HR covering 67,000 employees
65% at site level (220 sites)
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Setting the Scene
> Preliminary Studies in 2005 showed the following “Facts”
 Multiplicity of Systems and environments (35)
 No Interfaces possible between systems
 No Central Database for all employees (core system)
 Historical and Local Operating Rules
 Weak Underlying Processes leading to discrepancies and/or major inefficiencies
 On-going and Mandatory Investments
 Weak launches and new country implementations
Total cost of HR Administration is €25,40 per
employee/month in HCC
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Our initial objectives
 Align payroll, personal administration and Time & Attendance organization
and processes
 Improve HR Quality of Delivery and Efficiency
 Ensure perfect control over HRIS and Payroll costs and limit financial and
legal uncertainty
Quality, Simplicity, and Efficiency
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Building our case
Temps
Renewals
Compliance
-20 +X % per ee per month
direct
2.5m€/y
X : Retained
Organization
IT
Initial
TCO
ADP
Processing
Costs
Personal
CSPs/MS
Costs
Final Case
Target
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Our HR BPO Model
 Hybrid in High Cost Country (>800 ee)
– Outsourcing “Means” to ADP Globalview for HR, PA, Payroll, Time Management
(Processing Services)
– Shared Services Center operated by country/region (Min Cluster is 5k ee)
 Full BPO in Low Cost Country (>400 ee)
– Complete Outsourcing to ADP GV for HR, PA, Payroll, Time Management
(Managed Services)
 Outsourcing to either ADP Streamline or Local Best of Breed for other
smaller countries
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Global HRIS Architecture
SSC, Site HR, Local administrative
ADP SSC
Data entry
Recruitment
Talent
management
Data entry
Personal
Administration
Self
Service
Payroll
Interface
MTS Self
Service
Compensation
Interface
Time Management
Global HR Process Layer
Interface
HR
Business
Intelligence
DW
Learning Mgt
Syst
Financial
Systems
Group HR
Reporting
on 21 Key
Indicators
Other FRC
Dowstream
Systems
Functional Scope
Personal Administration
Faurecia Core System
•60 common employee data
worldwide
•Common Processes for Hire,
Transfer, Expatriates, Temps
Payroll
Common SAP Engine
•Secured, Consistent, Compliant
•Robust controls & employee
satisfaction
Time Management
Manager Self Service
•Manager portal
•Personal Administration
workflows
HR
Secure all employee data in
one place
•M&P only
Interfaces
•Reporting
•SAP FI, CO
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Milestones
GV Countries Deployed
7
Employees Serviced
45,000
Functionalities Deployed
PA/Payroll
Time Management
Active SSC
3
Employees Serviced
26,000
GV Implementation
5 countries
Employees
11,000
HR/Training
ESS/MSS
Org Management
Extension on going
SSC in deployment
3
Employees
16,000
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Current Priorities
1. Secure Vendor
Relationship
• Stabilize France and Spain
• Share Best Practices
among countries
• Establish Standards and
Processes
• Control Change Request
Volume
• Ticket Management Level
II ( No ticket aging >14
days Group Wide)
• Follow Global KPI and
Satisfaction Survey
2. Global Interfaces
Deployment
• Deploy GV/DW Interface
• Extend to Additional HR
Indicators
• Introduce Cost Reporting
• Monitor and Measure
existing Interface
• Deploy MTS to Spain and
France
• Reinforce SAP FI/CO
Interfaces and Process
sharing
3. Extend
GlobalView Scope
4. Address
New countries
• Address HR data Transfer
into GlobalView
• Introduce Organization
Management
• Deploy Solution for
Training Management and
Salary Review
• Reinforce HR Data
Management Processes
• Evaluate ESS/MSS
opportunities
• Automate Finance
Integration
• Deploy Remaining Countries
: MEX, BRA, SVK, POL,
CHN, SKA, MAR, remaining
acquisition by end of 2011
• Adapt methodology following
France Implementation
• Evaluate ADP “Managed
Services” Model
Increase Project Value for Low Cost Countries
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“Lies, Lies and Damn Statistics”
The Good
• 56,000 payroll processed every month
• Payroll accuracy over 99%
• No SLA penalties ever
The Bad and the Ugly
• France, French, les français…
• Implementation is a tiring and complex journey
• Retained organisation above anticipated figures
• Over cost 8% above of initial estimate
• Resolution vs Responsiveness (SLA)
• Average ADP satisfaction Rate at 4,3/6
• Extended Transition phase
• Governance model in place
• SAP Job Market currently difficult
• High Cost Country model very competitive
• Global Model in low cost countries is challenging
• Move from Financial to Partnership
• Agility of Global Solution vs Local Solution
• I survived..
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Client Services Escalation Model
Level 4
Global
Sponsor
Level 3
Global
Support
Level 2
Regional
&
Global
Support
Level 1
Regional
& Local
Monitoring
Operations
Jean-Pierre Sounillac
Executive Sponsor
• Service Scope change
(Global level)
• 4th Escalation step
Todd Sprague
Executive Sponsor
Charles-Henry Duroyon
Global Engagement Manager
• GRM support for GSDM on Service
escalations
• Commercial escalations
• Service Scope Change
(Global level)
• Service Escalations
• 3rd Escalation Step
Nicolas Aimez
Global Relationship Manager
Global Field Services
America’s
EMEA
APAC
Corporate Service Coordinator
Regional
SC
Regional
SC
Country HR operational
Regional
SC
Americas
APAC
EMEA
GV Service Delivery Manager
Regional
SDM
Regional
SDM
Regional
SDM
Country Service Centre Tier 1 &2
GlobalView
StreamLine
Team or
Partners/
Country lead
Central Team
• RRM support for Regional CS
Director and SDM on service
escalations
• Contract monitoring
• Service scope changes
• 2nd escalation step
• Service Scope change
(Regional/Local level)
• Service/SLA monitoring
• 1st escalation step
• Daily Operations
• Case resolution
according to SLA in single CRM
tool through Tier 1
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The 10 Commandments
 You will ensure your vendor does a proper transition between Sales/Pre-sales and Implementation
 You will have a shared governance model as of day 1 and monitor it closely
 You will spend sufficient time in Global Preparation and Project Management tools before starting the project
 You will ask your provider to have systematic Gap Analysis on functionalities but also on Level of Services
 You will keep financial arbitration separate from day to day local project management
 You will not underestimate your own workload
 You will need internal SAP expertise to possibly challenge some implementation choices
 You will request local consultants and management for complex payroll countries (e.g. Belgium, France, Italy)
 You will be inflexible on quality, unit and regression testing before starting your User Acceptance Testing phase
 You will keep your key people in the governance model after go live
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Questions?
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