Transcript Siemens in the UK - The Forum for Expatriate Management

Managing a Mega Programme –
Kay Vaughan Siemens PLC
Siemens and “Delegation Management” –
Assignment Management
- Brief overview of Siemens globally / Siemens in the UK
- Significance of global business and requirement for delegation support
- Delegation support UK (IDU)
- Delegation support / organisation globally at Siemens
- Recent changes in Expat Management at Siemens
- Ongoing Optimisation projects
- Challenges faced and overcome
- Next Steps for Siemens
Siemens - Committed to profit and growth
Active in three Sectors
Healthcare
€11.2 billion
Cross-Sector
Businesses Asia, Australia,
Middle East
€6 billion
21%
7.7
%
14.3%
49%
Energy
€22.6 billion
Revenue by region
Industry
€38 billion
29%
26%
Germany
17%
36%
Americas
Europe, CIS,
Africa (excl.
Germany)
Location of customer
Revenue and employees
100,000 Employees in thousands
Key figures
Continuing operations
500
FY2008
FY2007
(in millions of euros)
80,000
400
60,000
300
Revenue
77,327
72,448
40,000
200
New orders
93,495
83,916
100
Income
1,859
3,909
Free cash flow
5,739
6,755
427,000
398,000
20,000
FY 1985
Revenue in millions of euros
1990
1995
2000
2008
Employees
As of September 30, 2008
Global presence – basis for competitiveness
Germany
Europe,
23% CIS, Africa
32%
(excl. Germany)
Americas
132,000
12.8 48
68
97,600 20.1
31% 17%
118,400
28.0
28% 36%
79,000 16.4
18% 21%
23% 26%
Employees
Revenue (billions of euros)
Major facilities
As of September 30, 2008
54
Asia, Australia,
Middle East
49
Sectors and Divisions: Industry
Sectors
Industry
Energy
Healthcare
Divisions
Divisions
Divisions
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 Imaging & IT
 Workflow & Solutions
 Diagnostics
Drive Technologies
Industry Automation
Building Technologies
Mobility
Lighting (OSRAM)
Industry Solutions
Fossil Power Generation
Renewable Energy
Oil & Gas
Energy Service
Power Transmission
Power Distribution
Cross-Sector Businesses
Siemens Financial Services
With around 1,900 employees globally, Siemens
Financial Services is an international provider of
financial solutions for the business-to-business
sector. SFS finances infrastructure projects,
equipment and operating costs, and functions as
a competent manager for financial risks at
Siemens.
New orders
Siemens
IT Solutions
/ Innovations
and Services
The business of the cross-Sector Siemens IT
Solutions and Services Division with 41,000
employees worldwide comprises comprehensive
services for IT infrastructure, global sourcing,
outsourcing solutions, and the optimization of
business processes.
Main UK locations
Offices
Manufacturing / Offices
Headquarters
Glasgow
Newcastle,
Hebburn
Durham
Belfast
Bradford
Blackpool
Congleton
Harrogate
Leeds
Manchester
Lincoln
Nottingham
Ashby
Newtown
Milton Keynes
Worcester
Aylesbury,
Stroud
Monmouth
Eynsham, Oxford Slough, Stoke Poges
London, Sunbury
Frimley
Tonbridge
Romsey
Crawley
Poole, Christchurch
International Delegation Unit UK
Siemens global presence has led to a high volume of assignments
globally:
International Delegation Unit (IDU) – established as Centre of
Competence in UK
 IDU is a business unit within Global Shared Services (CIT / GSS) UK
 Professional Services section of GSS UK (Recruitment, L&D,
Procurement, Risk, Fleet & Travel Management, IP)
 Strategic reporting line to Corporate Personnel UK
International Delegation Unit (UK Delegation Centre)
 Responsible for all types Inbound and Outbound delegations to / from
the UK
 Extensive service portfolio:
Core Expatriate Management services
UK specific services
Governance
Service Management
Expatriate Projects
Core Delegation Services provided by IDU
Consultancy / advice
to businesses
Spousal / Partner
Support
Expatriate
Banking
SAP HR
Support
Orientation
School Search
Assistance
Contractual
Support
Services
Pension / Social
Security Advice
Tenancy
Management
Cost
Calculations
Expatriate
Accounting
Removals / relocation
Tax
Support Remuneration
Support
Language / Intercultural
Training
Advice on medical
requirements /
vaccinations
IDU Helpline - the delegate equivalent to ‘999’
Non-delegate support
(tax, NI, pension)
International Delegation Unit UK
 Focus on quality – adherence to process standards, customer
satisfaction (EFQM, PMMA)
 Focus on compliance - adherence to legal requirements and internal
guidelines
 Focus on cost savings/efficiencies - economies of scale, IT enhancements,
optimization of vendor management
 Regulated profit centre approach
 Internal customer focus
 Rolling customer education compliance programme
 One of main delegation centres within Siemens worldwide
 Active participation at global level (advisory, steering board)
Current major delegation centres within Siemens
1
Great Britain
Germany
*2
USA
Austria
China
Dubai
India
Brazil
Delegation experts within 73 countries – all trained in global tool / processes / policy
IDU act under Corporate Personnel Mandate
The International Delegations Policy is a globally binding policy established by
Siemens AG. The IDU is responsible for ensuring compliance with that policy.
A: Principles
global framework
Global Delegation
Principles (GDP)
B: Guidelines
detail supporting global principles
Localization and Customization
Country Delegation
Guidelines (CDG)
Each country has developed
Country Delegation Guidelines
in accordance with GDP
Policies: GDP versus CPDP
Employment in the interest of Siemens outside the
home country for a specified period of time
Global Delegation Principles (GDP)
Duration
6 month, maximum 4 years1
Construction / Project Delegation Policy (CPDP)
Determined by the period of the customer project,
but maximum 4 years1, no minimum defined
Employment for a specific internal/external customer
order/project (including software orders)
Specific
Conditions
Employees whose primary job responsibility is to work
outside their specific employment location
Type of
Activity
Location of
employment
contract
Know-How Transfer
Execution of a specific function
Personnel development
Further education measure
Technical or commercial project management
Installation
Maintenance
Modification
Consulting
Commissioning
Servicing
Host based
delegation
Home based
delegation
Home based
CPD
Standard case
Exceptional case, only when
the employee is exclusively
working for the home country
Standard case
Host based
CPD
Tax concept, immigration law or
other legal regulations require
an employment contract in the
host country
Delegation period > 6 months2
1) any extension to be approved by the coach of the relevant country and by the coach for the group / corporate department of the Corporate Executive Committee
2) if delegation < 6 months, administration according to CPD Home Guideline
Considerations prior to launch of Global Expatriate Management
Programme at Siemens
Expatriate Management Trends and Implications – trend towards standardisation
and global service delivery models
Market Trends
General
 Increase focus on:
Compliance, Controls, Coordination, Consistency, Competitiveness
 Growth in expatriate population diversity (ie. varied types and nature of assignments)
Expatriate Service Delivery
Management
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Standardisation of global service delivery
Continued growth in outsourcing and/or off-shoring administrative tasks
Consolidation of vendor services
Cost effective design and rigorous policy application
Key Implications for a global service delivery model:
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An enhanced IT platform is essential to support the global processes
Transfer pricing/ other tax and social security considerations
Funding (cross cost charging)
Training and Change Management
Global expatriate management (GEM) at Siemens –
expatriate management change programme
Global Expatriate Management (GEM) project:
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New global organisational model implemented
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Global/regional service management established
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New global delegation policy/country guidelines implemented
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Design and implementation of global expatriate tool – IHRIS
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Global rollout of online delegate order system – DOS
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Implementation of delegate travel tracker tool
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Review and implementation of global delegation processes
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Global vendors selected for taxation and allowance data provision
Shared Service Initiative
HR Shared Services for Siemens
Governance
 Strategy
 Control
HR Governance
CHR
Service
Management
Service
Delivery
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Account management
Business development
Product management
Service Management
Supplier management
Administration
HR Service delivery
 Processing
AM
(Americas)
GEM Service
Delivery will remain
with the countries
Source: top+ Shared Service Initiative, CHR
EMEA
HRs
(Europe, Middle East,
Africa)
HRs
AA
(Asia, Australia)
HRs
GEM is governed by CP and managed by CP SPMC
and E HR CPD
Current delivery model and key principles
Global Service Delivery Model for GEM
Service Model1)
Governance Structure
CF
Responsibilities
CP
 Overall GEM strategy & targets & budget approvals
 Auditing & controlling
 GEM Policy governance & process ownership
CF
 Tax governance
GEM Steering Board
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Global customer strategy alignment
Coordination of CPD & home / host delegation processing
GEM strategy & target & budget
Global service delivery standards
Performance feedback & controlling
CP SPMC
PG HR5 (CPD)
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Process management
Vendor, policy & IT management
Performance monitoring
Compliance/Risk controlling
Governance
CP
GEM Steering Board
GEM Service Mgmt.
CP SPMC
Regional
Service Mgmt.
Americas
PG HR5
Regional
Service Mgmt.
EMEA
Regional
Service Mgmt.
Asia
Service
Mgmt.
Global IT-platform
Americas HR’s
(Delegation
Consultant)
EMEA HR’s
(Delegation
Consultant)
Asia HR’s
(Delegation
Consultant)
Global Tax Advisor
Groups & Operating Companies / Delegates
1) According to definition of Siemens Shared Service Initiative
Source: GEM Project
Service
delivery
 Delegation processing and BU consulting remains as
Service Delivery
of today
 Mandatory processes and IT tool due to compliance
risks and SOA
 Global Tax Advisor
Clear roles and responsibilities were critical for the
new service delivery model
Key responsibilities for the GEM organization
Service management board
(Global Responsibilities)
GEM Governance1
 Policy governance
 GEM strategy
 Vendors
 Service Portfolio
 Service Levels
 etc
 Performance tracking
 Compliance
 International coordination of all GEM
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monitoring
(visa, immigration, tax, policy)
 Issue resolution
 Controlling, auditing
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services
 Service portfolio,
 Quality management (KPIs)
 etc
Coordination between corporate functions
and regions
Customer satisfaction monitoring
Issue resolution/escalation
Benchmarking
Risk management
Vendor management
Process Management
IT Management
1) CP W and GEM Steering Board
Source: GEM Project
Service management
(Regional Responsibilities)
 Support for Country Policy implementation
 Establishment and maintenance of a delegation
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2) BU and end-customer
Service delivery
(HR , GROC Shared Service )
 Administration & operational services
 Delegation Processing, such as:
 Policy Interpretation
 Delegate briefing and relocation co-
consultant network in the region
Professional lead of delegation consultants in
countries of the region (dotted line)
ordination
Training, coaching of delegation consultants in
 On assignment administration
countries
 Tax administration
Change Request Management
 Expense authorization
Escalation management (regional level)
 Business Administration:
Customer satisfaction2 - KPI reporting, cost reporting
 Payments, invoicing, accounting
(regional level)
Vendor management (regional level)
Risk management, compliance tracking (regional
level)
 legal, tax, policy
Technology implemented – Access via GEM employee portal
Availability of GEM Application IHRIS in the Employee Portal
Employee Portal - GEM
IHRIS Applications are available in the global Siemens
Intranet Portal after PKI Login:
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My Work >> Personnel Development >> Global Expatriate
Management
3 IHRIS Applications:
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Delegation Administration System (KPMG LINK E)
 Target Group: Delegation Consultants worldwide
 Access rights: Application via Account Order Form
(https://sfsnet.siemens.com/livelink/livelink.exe/Open/20204504)
 Availability: PILOT – 14.1.2008
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Delegation Order System (DOS)
 Target Group: HR / BU Manager (to order services with
the delegation centers)
 Access rights: all employees globally
 Availability: After GO LIVE
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Travel Diary / Tracker for delegates
 Target Group: Delegates
 Access rights: Delegates that have an ACTIVE assignment
in KPMG LINK E
 Availability: GO LIVE – 11.02.2008
DOS – Process Overview
Overview main workflow functionalities
Submit
Automated
upload into
IHRIS every
1 hours
Automated
Email
Delegation Centre
Home
KPMG
LINK
Creator
(line manager)
Automated
Email
Forward
Edit Rights
Delegation Centre
Host
Contributors
(line manager)
Print out a hardcopy
and sign before
sending to delegation
centre
Key Challenges faced during transition
- Communication to and acceptance from key stakeholders
- Speed and depth of change
- Training of team + ongoing support
- Interface management (other delegation partners, payroll)
- Customers enhanced focus on cost/more for less
- Changes at same time as enhanced focus on compliance internally
- Increase in internal/external audits
- Increase in legislative changes (e.g. PBS)
- Transition to global providers
Key Challenges faced during transition
- Major restructure of Siemens organisation and HR organisation
- Requirement to take on “residual HR activities”
- Set up of Global Shared Services organisation
- Cost reduction programme – FTE reduction
- Transition of acquired businesses to Siemens process/policy
- Non standard delegations/requests
- Increase in M&A / Divestment activity within Siemens
Global Expatriate Management (GEM 2)
1) International Business Traveller project
2) Centre of competence - set up
3) Optimisation of service delivery – regional hub set up
Why bundle international delegations service
delivery?
 Enhance quality of service, reduce risk whilst lowering cost through
implementing a regional hub structure
 Ensure adherence to local laws and regulations in home and host
country
 Ensure higher level of process standardization
 Reduce delegation administration cost through economies of scale
 Improve service quality with dedicated international delegation team
 Ensure implementation of Siemens regulations & processes
Current versus future scope of service provision
- example NWE
Current model – delegation service delivery in
each country
Customer 1
Norway
HR
 Service focus on country specific needs
 smaller countries: no dedicated
delegations separately
Denmark
HR
NWE
Hub
Ireland
HR
Customer 3
Customer 4
 No bundling, each country manages
UK
HR
Sweden
HR
Customer 2
Local
Delegation
centres
delegation FTE, but split FTE
Future model: one delegation hub
Finland
HR
Poland
HR
Netherlands
HR
 Service focus on international needs and standardization
 Clear separation of country specifics to international services for
delegations
 Bundling delegation activities within hub
Different roles will be present in the Hub to secure
a high service quality - Overview Hub Roles
Hub Lead
Delegation
consultant
Delegation
manager
By country
-Inbound
-Outbound
-Home/Host
-CPD
Key Account
coordinator 2
Policy expert
Partner / customer
trainer
Business support
ICS /SOA Officer
Project consultant3
Knowledge
coordinator
IT Key user
Support functions
Core Business
Tax expert1
Immigration
expert1
Process manager
Process
owner2
Social sec.
expert1
Legal expert1
Specialist Functions / Interfaces
1
General expertise and interface to local experts within countries
2
Could be Delegation Manager
3Depending
2
on the organizational asignment of the CoC (Center of Competence)
Contract/ Vendor
Mgmt
Service Delivery Management
Business
administration
Manager
Business Administrator
Delegation
Administration
Manager
Delegation
Administra-tor
Business administration /
Delegation administration
Next steps for consideration
- Implementation of regional hubs:
Americas (North/Latin America)
Europe, Middle East and Africa
Asia, Australia
- Implementation of Regional Governance + Regional Service Delivery
Management
- Delegation Services versus Delegation Advisory