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RWE GBS HR Journey to efficient HR shared services operations
Oliver Henrichs, GPO HR, RWE
Hendrik Schmahl, Director, Deloitte
Linda Gross, Senior Manager, Deloitte
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RWE today: Leading positions in core markets*
2
No. 1 in the German
electricity market and
in the East gas market
No. 2 in the Dutch
electricity market
and gas market
No. 3 in the German
gas market
No. 4 in the UK
RWE nPower
electricity and
No. 5 in the
gas market
* Market positions of the RWE Group in terms of sales, 2013.
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RWE today: Facts & Figures as of 31 December 2013
3 Deloitte Shared Services, GBS & BPO Conference 2014
RWE’s customers in million
Electricity
16
9 7
Water Gas
RWE´s key figures in € Mio.
54.070 External revenue
66.341 Employees 5.881 Operating results
8.762 EBITDA
Characteristics of the energy & gas industry
• Renewable Production
• Virtual Power Plants
• Energy Efficiency
• Financial Regulation
350+ Legal entities DE
Almost 500 Legal entities Europe
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Initial Situation of the HR Journey Lack of focus on an overall HR Model and a missing group wide HR
Strategy were the starting point of the “HR Evolution Program”
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Start of 2013 – Initial Situation
• Ongoing economic pressure on the RWE Group in the German and European market
• High and increasing expectations on the support functions to add value for the change
• Requirements set to HR to provide support to the business units in their change
management and efficiency programs
• Independent and heterogeneous HR structures and focus areas in the business units
• Different initial situations of HR model in Germany, in the UK and in the Netherlands
• Moving from an HR SSC and GBS project to an holistic HR program - based on
feasibility study, the focus was on initialization an HR SSC in a multi-tower environment
• High cost pressure on the supporting functions including HR
• Initial steps focus on HR SSC only without considering an holistic view of all HR
functions and roles
• Demand to define a group-wide HR strategy and to move to an holistic HR program
…for the
RWE
Group
…for HR
…in the
context
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Framework of the HR Journey The HR Evolution Program encompassed a holistic transformation
starting from the HR Strategy to the implementation of an overall HR
Model
5 Deloitte Shared Services, GBS & BPO Conference 2014
Organization
Process
People
Technology
Burning
Platform &
Business
Strategy
HR Story
(2020)
HR
Management
Agenda (2015)
“RWE 2015” &
“Vision” “Mission”
Framework of the
“HR Evolution Program”
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Embedment of the GBS HR The GBS HR is an integrated part of the HR Journey and an essential
building block within RWE’s House of HR and focussed on four
defined HR Cluster during the HR Transformation Journey
6 Deloitte Shared Services, GBS & BPO Conference 2014
Organization
Process
People
Technology
Center of
Expertise
HR Business
Partner
Local HR
HR Governance
HR Shared
Services
Scope of the GBS HR
Transformation Journey RWE’s House of HR
Group HR
* HR Population
(target)
50-60%
10-15%
25%
10%
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2012 2013 01-06/14 Since 06/14
HR Cluster Plan & Vision Design Build Operate
Journey of the GBS HR The GBS HR transformation journey was divided into four phases –
each phase was structured along the HR Clusters
7 Deloitte Shared Services, GBS & BPO Conference 2014
Organization
Process
People
Technology
Feasibility Study
Business Case
HR Service
Delivery Model
HR Technology
Strategy
HR SSC
Governance
HR IT
Governance
HR SSC Org
Design
HR SSC
Network
Global Process
Design
Transition
Approach
Functional
Requirements
HR Portal
GBS HR
Transformation
Build the GBS
HR Organization
Built up DE SSC
Hub (Lift&Shift)
Built up UK SSC
Hub (Lift&Shift)
Serving 60,000
customers
(and 50,000
pensioners) after
transition
2013 – our approach 2014 – our approach Today
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2012 2013 01-06/14 Since 06/14
HR Cluster Plan & Vision Design Build Operate
Journey of the GBS HR – What did we do so far? The GBS HR transformation journey was divided into four phases –
each phase was structured along the HR Clusters
8 Deloitte Shared Services, GBS & BPO Conference 2014
Organization
Process
People
Technology
Feasibility Study
Business Case
HR Service
Delivery Model
HR Technology
Strategy
HR SSC
Governance
HR IT
Governance
HR SSC Org
Design
HR SSC
Network
Global Process
Design
Transition
Approach
Functional
Requirements
HR Portal
GBS HR
Transformation
Build the GBS
HR Organization
Built up DE SSC
Hub (Lift&Shift)
Built up UK SSC
Hub (Lift&Shift)
Serving 60,000
customers
(and 50,000
pensioners) after
transition
2013 – our approach 2014 – our approach Today
900+ HR employees
transferred during
transition into new
roles
Involvement of all
stakeholder groups
including workers
council
150 to-be processes
designed within 3
months up to level 5
30 workshops with
70 RWE experts
involved in process
design from all over
Europe
7 months of
transition phase
Gathered, validated and
agreed on multiple
requirements for CoE, IT,
Reporting and Portal
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HR Shared Services Network The aspiration level of the Business Case and RWE’s regional
structure / culture led to the HR SSC Network
9 Deloitte Shared Services, GBS & BPO Conference 2014
The Migration approach enables the set up
of the HR SSC network
Valu
e d
river
# 4
: B
enefiting f
rom
O
uts
ourc
ing
Value driver # 3: Increased bundling &
& efficiency commitment
Value driver # 1: Enforced Migration
time line
Valu
e d
river #
2:
Pro
cess-b
y-P
roce
ss
mig
ratio
n a
ppro
ach
Group-wide HR cost savings
< 30% of HR population
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HR SSC Network Design The ShS Network Design followed a holistic approach and reflected
the European Governance structure
10 Deloitte Shared Services, GBS & BPO Conference 2014
SSC
Governance
Process
Ownership
(GPO HR)
HR IT
Governance
(GPO HR)
Training &
Enablement
Organization
Process
People
Technology
HR Cluster HR SSC Org Structure
GPO HR
Regional
Head UK
Operation &
Delivery
HR
Technology
Portfolio
Management
Regional
Head NL
Payroll , Comp &
Ben. (PO)
Pensions (PO)
Sourcing (PO)
People
Management (PO)
Service
Management
HR Services &
Admin. (PO)
HR IT Demand
Management
HR IT Architecture
& Solutions
Coordination &
Project Mgmt
Strategic HR
Controlling
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HR SSC Org & Governance Design Sharing experience along our GBS HR journey…
11 Deloitte Shared Services, GBS & BPO Conference 2014
… and what are your thoughts/experiences?
What are we proud of? What are typical pitfalls you
should be aware of?
• Detailed To-Be process design phase
in less than a year
• Continuous, comprehensive
management of all stakeholders
• Management of co-determination
• Smooth transition of OpCo go-live
• Agreed approach of all roles in the
former HR model
• Alignment of all new HR roles
• Strive for continuous and sustainable
communication and change
management
• Strive for transparency
• Communication to the HR community
on the process to lay off people
• Obtain strong support and buy in from
Top Executive Level
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© 2014 Deloitte LLP. All rights reserved.
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