CONFIDENTIAL 1

Global Service CentersColgate-Palmolive

Global Service CentersColgate-Palmolive

Pablo AvilaSr. Manager, Global IT

March, 2010

Pablo AvilaSr. Manager, Global IT

March, 2010

CONFIDENTIAL 2

Colgate Palmolive Global Service Centers

Our End-State Vision

Colgate Palmolive Global Service Centers

Our End-State Vision

CONFIDENTIAL 3

Business NeedsBusiness Needs

Lower Total CostManage Increased

expectations

Lower Total CostManage Increased

expectations

Improved service delivery

SAME service levelsSAME user expectations

Proactive environment

Knowledgemanagement practices

Competency Development

Global roles & responsibilities and skill levels

ONE source of informationOne Scorecard and

tracking tool set

Standard & Global Process

SAMEEnd-to-End Support

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ProcessOne End-to-End standard process for all Business & IT services

Requests Life-cycle mgmt

Knowledge & quality mgmt

Customer

The VisionService Centers End-State Strategy

PeopleSingle point of contact (SPOC)

Business centric

Right sourcing

Balanced Scorecard

ProductsOne System, End-to-End visibility

One Enterprise Self-service portal

Same standard service level

PlaceStrategically located Service Desks

Coverage 24x7 support (English)

Select languages

Price (Cost-Effective)

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The VisionManage as a Business

The VisionManage as a Business

Corporate Governance � Process � Standard, Aligned

Sales & Marketing � Products � Same Systems

Manufacturing & � Places � Global OperationsDistribution

Human Resources � People � Managing Globally

P&L � Price � Cost-Effective

Corporate Governance � Process � Standard, Aligned

Sales & Marketing � Products � Same Systems

Manufacturing & � Places � Global OperationsDistribution

Human Resources � People � Managing Globally

P&L � Price � Cost-Effective

Business Function � Equivalent � Core strategy

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Contacts

Subjects

Human Resources

(HR)

Procure to Pay

(P2P)

Information Technology

(GIT)

CustomersVendors (Source: MDM)

Employees (Source: HR/HCM)

IT Equipment,

SoftwarePurchase Order,

PaymentsMaster Data,

Benefits

Record to Report

(R2R)

Accounting, Costing,

Fixed Assets

Process

Streams

The VisionEnd-State Process

Same end-to-end support process globally, with the Global Service Centers as the Single Point of Contact (SPOC)

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Human Resources

(HR)

Employee Data Mgmt Maintenance

Employees Info Center

Workflow management

Procure to Pay

(P2P)

Order Inquiries & Execution

Payables

Follow-up on vendors

Creation of contracts

Catalog Administration

Information Technology

IT Incidents/Inquiries

Front-line resolution

Root-cause analysis

Problem Management

Knowledge management

CustomersVendors (Source: MDM)

Employees (Source: HR/HCM)

Record to Report

(R2R)

Accounts Payable

General Ledger Accounting

Cost Accounting

Fixed Assets

Inter-company Acc.

Financial Reporting

Treasury

Same end-to-end support process globally, with the Global Service Centers as the Single Point of Contact (SPOC)

The VisionEnd-State Process

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Implementation Approach for

Shared Service Framework

Implementation Approach for

Shared Service Framework

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Foundation for a Global SolutionFoundation for a Global Solution

• Shared Service Centers in IT

• Global Model Design

– Workshops with Process Owners and Global Design Teams

– Leverage IT Service Delivery model and best practices across process streams

• Shared Service Centers in IT

• Global Model Design

– Workshops with Process Owners and Global Design Teams

– Leverage IT Service Delivery model and best practices across process streams

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Global Workshop DeliverablesGlobal Workshop Deliverables

• Identified best practices and differences between businesses

• Aligned and prioritized functional requirements for Shared Service framework based on SAP CRM

• Identified process and policy changes

• Achieved agreement about the overall scope and Global Model Design

• Identified best practices and differences between businesses

• Aligned and prioritized functional requirements for Shared Service framework based on SAP CRM

• Identified process and policy changes

• Achieved agreement about the overall scope and Global Model Design

CONFIDENTIAL 11

Global Service Centers

Standard Service Delivery ModelStandard Service Delivery Model

Service Center

Subject Matter

Experts

Change Management

Tier 0 Self-service

Tier 2-3Back-office: Partners, Vendors

CustomerMulti-channel Requests

EmployeesVendors

Customers

Telephone

Fax

Chat

E-mail

e-Support

Inquiry, Transactional Specialization

Knowledge Db

Tier 1 SPOC

End-to-End Integration

85% Resolution 15% Resolution

Portal

CONFIDENTIAL 12

Design PrinciplesDesign Principles

• Standard Service Delivery model globally– Same Process– Standard functionality for Shared Service Framework

based on SAP CRM and SAP ERP

• Strive for simplicity– Same functionality – Global visibility of all Interactions– Shared ownership across Service Centers

• Supportability, Sustainability

• Standard Service Delivery model globally– Same Process– Standard functionality for Shared Service Framework

based on SAP CRM and SAP ERP

• Strive for simplicity– Same functionality – Global visibility of all Interactions– Shared ownership across Service Centers

• Supportability, Sustainability

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Our Progress

Where are we today?

Our Progress

Where are we today?

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One Technical Platform ImplementedOne Technical Platform Implemented

• Live on CRM IC 5.2 (Web Client)– One single Instance for all Service Centers

• One Shared Service Framework

• One Service Ticket

• Same configuration across all regions

• SAP HR System for Employee Data Verification

• English, Spanish and Portuguese Only – Plan: Self-Service in additional selected Local Languages

• No History from Legacy Systems

• Live on CRM IC 5.2 (Web Client)– One single Instance for all Service Centers

• One Shared Service Framework

• One Service Ticket

• Same configuration across all regions

• SAP HR System for Employee Data Verification

• English, Spanish and Portuguese Only – Plan: Self-Service in additional selected Local Languages

• No History from Legacy Systems

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Business Value

� Single point of contact, multiple communication channels � Same standard Process, Products & Service Levels� Increased confidence and perception of service quality� Contingency to guarantee service delivery (Business continuity)

Consistent support

Increase efficiency while reducing cost

� Promoted excellence and consistency of End-user experience � Lowered (TCO) cost of operations, with committed efficiency� Improved efficiencies, controls and compliance

Improve Communication

� Improved communication and relationship with the business� Consistent communication and ownership at all levels� Framework for continues service quality improvements

Realizing the BenefitsRealizing the Benefits

Resource Flexibility

� Focus organization’s resources on building the growth� Greater productivity, responsiveness and best use of skills � Ability to absorb a high rate of change

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• Understand culture differences• Balanced scorecard and skills (soft, hard)• Monitor customer satisfaction

Customer Culture

• Knowledge Mgmt strategies (bridge knowledge gaps)• Promote integration and knowledge transfer• Use best-in-class processes & remote assistance

First Level Resolution

• Actively evaluate depth of linguistic skills• Accent neutralization• Gradually add select languages

Language Richness

Staging the TransformationLessons Learned

Staging the TransformationLessons Learned

Customer’s Experience

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• Recruitment and induction according to business• Retain talent: redesign, redefine, redeploy• “Reassignments” only after complete transition

Staff transition

• Leverage four E’s leading practices – Economy, Employment, Environment, Experience

• Core/Close-located with primary business and time zones

Site Selection

• Reliable and cost-effective voice & IP links• Verify country’s regulations: security/privacy protection• Contingency to guarantee service delivery

Network & Security

Staging the TransformationLessons Learned

Staging the TransformationLessons Learned

Operational Resilience

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• Standard, Simplicity, Cost Effective, Globally Delivered• Strong Sr. Management support• Closed partnership with SAP

• Maintain “high-touch” communication with Stakeholders • Good understanding of business requirements• Educate: Why Global Service Centers?

Core Strategy

Communicate

Manage the Service Centers as a Business

Staging the TransformationLessons Learned

Staging the TransformationLessons Learned

The Fundamentals

CONFIDENTIAL 19