Global deployment of a core HR SaaS solution: Is it worth the effort?Joost van Daelen

Introduction

YES, IT’S WORTH IT, BUT …

Essential ingredients

Essential protection

Essential color

Global paints, coatings and specialty chemicals company

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€14.3 billion revenue (2014)80+ countries~46,000 employees~200 production sitesLeadership positions in many markets

Revenue by Business Area

42%

19%

39%

15%

10%

37%8%

26%

4% North AmericaLatin AmericaMature EuropeEmerging EuropeAsia PacificOther

39%

27%

34%Performance Coatings

Decorative Paints

Specialty Chem-icals

Operating income by Business Area Revenue by geographic region

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Support functions are transforming towards Global Business ServicesDecentralized functions

Function reporting and alignment

Shared Services Global Business Services

Human ResourcesInformation Management

Finance

Procurement (non product related)

6Capital Markets Day 2015

Our case

We needed to improve quality of HR dataIssue

Impact

Solution

• Many processes, systems and data definitions• No global organizational structure• Employee data not visible to managers or employees • Legacy Global HR database inflexible and not up to date

• Data inconsistency and errors• International managers lack overview of employee data• Workflows lack managerial lines• Low quality and speed of onboarding to systems• “Hidden data factory “

• One HR core, ‘real time’, including org structure• View access to managers and employees in all countries • Self service in 9 countries (70% of employees) • Automated reuse of data (no manual data intervention)• Data quality via HR Shared Services

Not one system of record

HR data not available

SaaS solution: myHR

Value from creating a single source of employee data now (not tomorrow)Value from creating a single source of employee data

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• Introduce standard way of working (shared services)• Harmonize processes (global unless)• One HR data source, connected to payroll

we needed to increase speed as money and patience were running out, so we moved to:

• Connecting to other global systems• Double data entry for small countries

The core HR system in the landscape: driving value delivery (blue are global systems)

In Country Payroll

myCareer

Recruitment, Performance,Talent & Succession, Learn

Expenses

Financial ReportingFTE files

Identity & Access Mgt

Active Directory

myHR

Personnel AdministrationOrganization Management

myTime

Time & leave data

Time data collection(Time Clocks)

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Lessons learned

This is what we learned…

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Double data entry is difficult, connecting to payroll is more difficult

Only disrupt if you can bring something in return

You can implement without consultants, but it’s a lot of work

The environment is never stable

Focus on data quality

and would have done differently

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Payroll: more detailed strategy how to connect

Benefits: control over downstream benefits projects

External help: more and higher quality resources

Change mgt: simplification and harmonization upfront

Data Q: stronger central team to drive data quality

Global deployment of a core HR SaaS solution: Is it worth the effort?

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Consider: All your data is with your vendor

You rely fully on the solution and services of the vendor

The more you integrate and reuse the data, the greater the lock in with that vendor.

YES, IT’S WORTH IT, BUT …

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Next steps

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Establishing a data quality mindset and understanding

Evaluate our vendor and prepare roadmap for next steps

Keep connecting our ‘core HR database’ to make the lives of our managers and employees easier