© 2013 Towers Watson. All rights reserved.
Explore the Possibilities 2013 HR Service Delivery Forum
Developing an HR Service Delivery Strategy That
Leverages HR Shared Services and Technology at
Illinois Tool Works (ITW)
© 2013 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. towerswatson.com
Agenda for today
What is ITW?
Our strategic imperatives for the company and HR
Our HR evolution approach
How we made the case for Workday
Robust change management
Obstacles and lessons learned
Next steps
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What is ITW?
The largest company you never heard of
ITW has been a leading, global manufacturing company for over 100
years
ITW is a highly decentralized company that has approximately 60,000
employees across 840 business units
Global patents and patent applications exceed 19,000
Decentralization is not just a structure, but also a core philosophy that
is regarded as a competitive advantage
Source: ITW Forging the Tools for Excellence — Commemorative Booklet.
BACKGROUND
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HR Mission As business partners, we develop and deliver best-in-class processes and tools to attract, develop, motivate and retain a
diverse workforce, enable ITW’s organizational readiness/capability to manage change and execute on the enterprise strategy.
Partnering and supporting businesses in
developing organizational change
readiness
Operationalizing and protecting ITW’s
unique culture and values to drive high
performance
Accelerate building a diverse leadership
pipeline: right people, right place, right
time
Differentiate rewards to drive high-
performance culture
Increase HR skills and capabilities while
positioning HR as an enabler/
accelerator of change
Leverage technology and shared
services to inform decisions, improve
visibility to talent, increase efficiency
Leaders understand implications of
change and effectively anticipate and
lead their organizations to deliver
enterprise strategy results
A measure provides visibility of culture
and values throughout organization
VP/GM and functional division roles are
filled 80% internally
VP and above are 25% women
100% diverse slates for all openings
Top performers receive above-market
median total comp mix
Division, Platform and Segment HR
roles are filled 80% internally
A measure provides visibility of
employee satisfaction of HR services
High adoption rates of ESS, MSS
Create leadership development and talent management strategies
that will
HR
Str
ate
gic
In
itia
tive
s
2017
Go
als
Solid Growth Strong Returns
Best-in-Class Operator
Portfolio Management Business Structure Simplification
Strategic Sourcing
80/20 Business Model Sustainable Differentiation
Entrepreneurial Culture
ITW’s Unique Core Capabilities
Differentiated Performance
Enterprise Strategy
Translates Enterprise Strategy
Identifies priorities and defines HR philosophy for the Enterprise
Identifies HR implications of division LRP
Drives execution
Connects Enterprise and Segment strategies
Translates/embeds HR framework and tools to drive results
Business HR
LR
P i
n
Ac
tio
n
STRATEGIC IMPERATIVES
Build organizational capabilities by
Develop skilled and enabled HR team to
HRLT
Deep functional expertise
Creates frameworks, processes, tools
HR Long-Range Plan
COE
GHRD
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We created an initial three-year plan to change HR service delivery
2012
Preparation and Infrastructure
2013
Initial Deployment
2014
HR Service Center Maturation
Develop HR Service Delivery model
and business case for change
Conduct vendor selection for HRMS
Develop detailed deployment and
change management plans
Initiate deployment of selected HRMS
Initiate policy harmonization efforts
Select and initiate implementation of
future state HR Service Center
technology including: knowledge
management; telephony, case
management and document
management
Finalize descriptions of and
competencies for HR roles; assess
talent and identify gaps
Go live with new HR Technology Platform
Outsource leave of absence
administration
Finalize HR Service Center infrastructure
design and implement quick hits
Introduce tiered model and new HR roles
Deploy technology enhancements and
employee and manager self-service for
talent management and compensation
Enhance HR portal
Go live with Service Center
Conduct additional process redesign and
vetting sessions
Begin to deploy employee and
manager self-service tools for
workforce administration and
reporting
Provide additional content in HR
portal
Complete transition of Field HR focus
on building business acumen and
supporting talent management
Complete transition of transaction
work from COEs to HR Service
Center and/or technology
Deploy technology globally
Project Management
TIMELINE AND APPROACH
Change Management and Communication
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We created a business case for Workday
Current technology platform (2007) does not provide required
capabilities to support our enterprise and HR strategies
Very limited visibility into global talent
Lack of reporting for leadership and HR to confidently make business
decisions
Deployment of needed functionality requires rebuilding outdated core
application and licensing additional applications
Cumbersome process to make necessary changes to organizational
structure — requirement to support “Business Simplification”
Eventually Oracle will no longer support PeopleSoft 9.0
BUSINESS CASE – SAMPLE EXCERPT
Technology investment will be required to support business simplification and strategic imperatives
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Business case for Workday
Is Your Organization Currently Implementing or Planning to
Implement a New Primary HRMS?
New HRMS Chosen
*Other responses are primarily regional or local solutions. Those mentioned more than once include Exact HR.
Global/Multinational Organizations only
Source: Towers Watson 2012 Service Delivery Survey.
n = 346
BUSINESS CASE – SAMPLE EXCERPT
18%
8%
74% Yes, new HRMS has been chosen
Yes, currently evaluating options
No
9%
19%
3%
2%
2%
0%
0%
2%
5%
2%
0%
31%
22% SAP
Will be provided by an HRO vendor
Workday
Oracle (Legacy PeopleSoft)
Ultimate Software/Ultipro
Oracle Fusion
ADP EmployEase
Lawson
Oracle (Legacy Oracle HRMS)
ADP Globalview/Streamline
SuccessFactors Employee Central
Custom, In-house solution
Other*
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We built a robust change plan
Defined change management guiding principles for HR evolution
Compiled objectives and success metrics for the near, mid and long
term
Identified stakeholder groups
Developed change management major activities timeline and work
plan, including existing communications vehicles to leverage (largely
Workday-focused)
Created template for mapping major changes on HR evolution roadmap
Developing a change management toolkit for field HR
Drafted a key message map to inform various stakeholder groups (largely
Workday-focused)
Developing a roadshow presentation for painting the case for change
— Field HR
— Business Leaders
— Employees
CHANGE MANAGEMENT
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Our change plan includes branding for our project
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We have encountered obstacles along the way
The “when” and “how” were unclear
The highly decentralized structure is well entrenched
Problematic past technology implementations
Slow decision-making process
Difficulty in making decisions that don’t “stick”
Self-service is viewed as disruptive to the business
Underestimating the ability of employees and managers to embrace new
technology
The culture is slow to embrace change — including both Corporate HR
Staff and Field HR
LESSONS LEARNED
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We have learned a lot as an HR team and as a company
Keep the message simple and repeat it often — You can never overstate the message
Know your critics and meet before the meeting — Involve your critics in the vetting
process before the meeting so that you get their buy-in early
Know your stakeholders and what you are trying to achieve — Didn’t position it as a
technology play, position it as changing how we deliver services and then justify
technology as the enabler
Start with small decisions — To keep the momentum, break down your big decisions
into smaller decision points that are more palatable
Be inclusive — Remove barriers so that people aren’t siloed. Include COEs and Field
HR
You need the right team — Have the courage to make tough decisions for your team
and their performance to ensure that you have the right team members to collaborate and
support the vision both today and in the future
Get energized by the small wins — Even though you are focused on the end goal,
celebrate the small wins that help you get there, even if they are slower to come than you
would like
Appreciate the past — You can only tackle the future if you understand the past and
recognize that implications cannot be ignored
LESSONS LEARNED
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What’s next: 2012 – 2014 HR evolution timeline
Project Phases Dec
2012
Jan
2013
Feb
2013
Mar
2013
April
2013
May
2013
June
2013
July
2013
Aug
2013
Sept
2013
Oct
2013
Nov
2013
Dec
2013
Q1
2014
Q2
2014
Q3
2014
Q4
2014
Field HR Role
Evolution
Continued assessment of HR Talent
Talent Gap Analysis
Create Development Plans and/or hire
HR
Operations
Evolution
Determine HR Tech and Ops Support
Strategy
Staffing
Scope of services
Vendor responsibilities
Records Strategy
Process Redesign
Hire HR OPS Supervisor
Hire Call Center Representative
Begin Global HR OPS Planning
Scanning Historical Records Complete
Telephony System Review
Telephony Configuration
Telephony Launch
Portal,
Knowledge
Base (KB) and
Case
Management
(CM)
Vendor Contracting for KB and CM
Hire Portal Manager
Design and Configure: KB and Case Mgmt.
Design and Configure: New HR Portal
Build Technology and Content: KB and Case
Mgmt.
Build Technology and Content — HR Portal
UAT/Training/Launch KB and CM
UAT/Training/Launch Portal
Launch KB and CM
Workday HRM and Comp Planning Deployment
Mss/Ess
Change
Management
Develop Branding Strategy and Key
Message Platform
Stakeholder Change Impact and Needs
Create Change Strategy
Engage Stakeholders
Training, Communication & Involvement
Aug 2014: New Telephony System Go Live
Go Live – Workday Support for HR
July 2013: Deploy KB and CM (and Begin Training)
Workday Go Live June 2014: Employee and Manager Self-Service Go Live
Begin Global Workday Deployment Strategy
March 2013: Hire HR Operations Supervisor
Comp Plan Go live
Leave Outsourcing Support*
Employee and Manager Self-service Go Live
December 2014: Launch HR Portal
Begin supporting Wilsonart Divested Employees
Complete Scanning
*Dependent on when Leave Administration is outsourced.
NEXT STEPS
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Questions?
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© 2013 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. towerswatson.com
Today’s presenters
Yvonne Hurlbutt
Director, HR Technology and Operations
847.657.5109
Denise LaForte
Director
312.201.5212
Jennifer Narbutis
Manager, HR Operations and Process
Improvement
847.657.4065 [email protected]
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