paris, 6 june september 2013 “our journey paris... · unilever paris, 6 june september 2013 ....
TRANSCRIPT
“OUR JOURNEY:
CONNECTING THE DOTS IN
WORKPLACE…… " ROBERT TUINENBURG DIRECTOR WORKPLACE SERVICES EMEA UNILEVER
Paris, 6 June September 2013
CREATING A BETTER FUTURE EVERY DAY
Unilever is one of the world’s leading suppliers of fast-moving
consumer goods. Our products are sold in over 190 countries
and used by 2 billion consumers every day.
14 BRANDS IN THE €1BN+ CLUB
SCALE AND GEOGRAPHICAL REACH
EUROPE
€20.4 billion turnover
5.7% underlying volume growth
40% of group turnover
ASIA, AFRICA, CENTRAL &
EASTERN EUROPE
EUROPE
€13.9 billion turnover
0.9% underlying volume growth
27% of group turnover
EUROPE EUROPE
€17.1 billion turnover
3.1% underlying volume growth
33% of group turnover
THE AMERICAS
2012 TURNOVER €51.3 BILLION
OUR COMPASS STRATEGY
Our vision is to double the size of
the business, whilst reducing our
environmental footprint and
increasing our positive social
impact.
The Compass provides a blueprint
for success by identifying what we
must do to win share and grow
volume in every category and
country.
STRATEGY
The Compass provides a
blueprint for success by
identifying what we must
do to win share and grow
volume in every category
and country.
Unilever Global Targets Workplace Specific Targets*
OF OUR OFFICE WASTE WILL BE REUSED, RECYCLED OR
RECOVERED BY 2017
BY 2020 WE WILL
HALVE THE ENERGY
(KWH) PURCHASED PER OFFICE OCCUPANT
BY 2015 WE WILL REDUCE PAPER
CONSUMPTION BY
PER HEAD
*Applies to our top 21 countries
100%
30%
ENTERPRISE SUPPORT DEVELOPED TO ALIGN WITH THE COMPASS STRATEGY - OUR JOURNEY STARTED IN APRIL 2010
HR
Workplace
Services
Information
Management
IT
HR IM FS IT
2010
2012
2014
2016
Work-
place
Glo
bal
Re
gio
na
l Glo
bal
Glo
bal
Local
Regio
nal
Regional Regio
nal
Glo
ba
l
Locally cost
competitive,
“Get it first time right”
Act Global Think Local
How do we support Unilever with globally aligned
Services and IT Innovation
AND
remain locally relevant, cost competitive and “close”
to users and clients?
Use our global scale
Support with high
quality, simple
processes
AND
OUR CHALLENGE IN ENTERPRISE SUPPORT
Building one professional
services organisation
Leveraging cost-effective, best practice
Making continuous
improvement
Developing win-win
relationships
Providing excellent services globally
and enabling Unilever to win the market by:
Unilever Sustainable Living Plan
ES’S MISSION ALIGNED TO THE UNILEVER COMPASS
WORKPLACE SERVICES: OUR AIM
To provide greater value to our business and help our business win in the marketplace; to be recognised for this internally and externally; and to have our people take pride in being part of our organisation.
Supporting the Unilever aim to create an environment in
which all employees can fulfil their potential.
Think BIG
OUR JOURNEY SO FAR....
2010
Start SMART
2011
Scale-up fast
2012/13
FORMATION OF WORKPLACE
Q3 – Q4 2010
Org Design
& Build
CONFIDENTIAL
ES Target 3: ES Business Plan for 2010-2013; particular focus on RF 11
Following the company-wide engagement on our draft Service Line strategies we are putting together a focused “Start Smart” 2011 plan, aligned to the needs of the business. During Q4 we will update financial business case that is emerging from this: the plan will generate strong savings and cash-flow improvement. However, the level of investment will be high, and it will require a level of change which will stretch both ES and the wider organisation. Currently we envisage close to €277m in RDI, €173m Capex and €46m trade (mainly included in IT Global Innovation) investment over 3 years generating annual savings of over €330m pa by the end of the plan period (both within ES, in “flow-through” and other supply chain linked benefits).
The summary of the key ES Strategic Initiatives for 2011 is shown in attachment 4, including the names of the proposed business sponsor from the regions or functions.
RF 11
For 2011 Enterprise Support is focused upon the €1.1 billion of costs that fall under our direct control, or that will be quickly transferred into ES. This includes the full cost of IT Services, and all the people and third party service contracts within HR, Finance, IM and Workplace Services, along with our business partnering organisation.
ES has identified €65m in savings that will flow to the bottom line. This is generated from many projects across all the service lines, with particular benefits from the big contract renegotiations in IT:
BT contract renegotiation and end of exclusivity (Janus) deliver €7m in year savings both in lower rates and in reduced fixed costs
Data Network savings for Unified communication and Living on the net of €6m
Vodafone mobile contract (Mosaic) has €10m positive impact
Accenture application maintenance/development contract (Cambridge €10m benefit)
Lower software licence costs through improved asset management (€6m)
Move to single vendor Europe/Americas for outsourcing of PC/Laptops and user help-desk (€5m)
Against these savings inflation and additional operating costs (e.g. end of life equipment replacement, extra network capacity etc) will together add around €39m to costs (+3.5%). This includes the investment in additional resources required to address existing service quality issues. In addition “New” services/capabilities investment will add around €50m in operating cost:
U2K2 and Cordillera lead to higher amortisation and run costs (net €19m)
Additional run costs from other regional projects going “live” (€10m)
Additional Telepresence run-costs, new offices, printer and Blackberry services (€4m)
HR Services €5m in one off-investment including setting up a graduate recruitment website, global recruiting redesign and total reward statements
Sara Lee & Inmarko integration cost of €3m. No impact for Alberto Culver is included, except for any change effort budgeted as part of the M&A proposal.
Additional resourcing in ES of €4m to prepare for the take-over of IM run responsibilities from regions/MCOs (into “Akili”) and for the establishment of the global Workplace Services organisation.
The full year cost of establishment of the ES Service Control and Service Development (€4m).
Overall, this means that the ES forecast is €1135m, €11m above our internal ambition to keep cost as close as possible to “ZOG + ERP Amortisation”.
On top of the savings outlined above in directly controlled costs, the Enterprise Support business plan for 2011 includes programmes that will generate benefits to the MCOs “flow-through” costs: European Facilities tender and the Global Expense Transparency and Efficiency programme (travel, professional services, temporary labour) together with Ariba Buyer implementation. This programme will be conducted in close coordination with the Controller and Indirects Procurement. Total saving €50m.
Forecast Investment 2010/11: Capex and RDI
Over the plan period ES is currently forecasting to require an annual investment of around €100m RDI/trade and €50m capex (as outlined in our July paper). For the remainder of 2010 and 2011 we are currently expecting that we will spend €110m in RDI and €70m capex over-and-above existing approved proposals.
We will be seeing immediate approval for a number of major projects which are the key drivers of 2011 savings:
Smart & Mobile Phones (Mosaic) – for the implementation of the new Vodafone global mobile contract. Total investment of €7.5m RDI and €3m capex.
Data Network and Fixed Voice (Janus) – the implementation of the revised BT contract, including the ending of their exclusivity. Total investment of €4m RDI and €2.5m capex
Application Development and Maintenance (Cambridge) – contract with Accenture for the outsourcing of application maintenance and development. Total cost €19m RDI and €3.5m capex.
Strategy Approval
Project Definition
2011 – 2013
Strategy
Ian Dunning
Global
Facilities
Director
VP Workplace Services
Global Real
Estate Director
Global
Workplace
Services Travel
and Fleet
Director
Workplace
Services
Delivery
Director, Latin
America
Workplace
Services
Delivery
Director, Asia
Africa Russia
Workplace
Services
Delivery
Director, Europe
Agile
Workplace &
Project Director
WHAT DOES WORKPLACE ENCOMPASS AND HOW IS IT STRUCTURED
Workplace
Services
Delivery
Director, North
America
Delivering Capability Globally
Activating Locally with our regional
teams and business partners
Delivery at regional level and
through our country Workplace
SDM teams
HR BP Finance BP IT BP Comms BP (Travel)
Procurement BP
(Workplace)
Procurement BP
Transformation
Manager
Ensure balance
between global
capability and
local relevance
WORKPLACE SERVICES: OUR JOURNEY
Creating a workplace
that maximises
flexibility and choice
for our people
Delivering services at
the right cost, to the
right standard, with
consistency Unlocking value from
our real estate
portfolio
Delivering a
best-in-class
service
that provides the
right service at the right cost
VIRTUAL PHYSICAL
IMPROVING OUR
OPERATING LEVERAGE
EMPLOYEE
ENGAGEMENT
Global
Resource
Booking
Global Travel
Transformation
Facilities
Management
Transformation
Global
Physical
Access
Security
Agile
Certification
AGILE WORKPLACE
& PROJECTS TRAVEL
MEETINGS
& EVENTS
GLOBAL
FACILITIES
MANAGMEN
T REAL
ESTATE
FOCUS ON
REAL ESTATE OTI
FULFILLING OUR
ULSP COMMITMENTS
BETTER GENDER
DIVERSITY
ACHIEVING OUR
SERVICE QUALITY
METRICS
To provide greater value to our business and help our business WIN IN THE
MARKETPLACE; to be RECOGNISED FOR THIS INTERNALLY AND
EXTERNALLY; and to have our people TAKE PRIDE in being part of our
organisation.
Integrated
Workplace
Management
Services
Real
Estate
Sustainability/
Energy,
Auditing,
Monitoring
Workplace
Project
Management/
Design
standards
OUR AIM:
OU
R K
EY
PR
OG
RA
MM
ES
:
Video
Defining site
specifications for
k
THE FACILITIES MANAGEMENT JOURNEY CHALLENGES
Mixtures of
In-house and
Outsourced
Service Delivery
teams
Complex
portfolios
Starting Local
Going Global
No accurate
Baseline data Local
Management
Transformation
against site type Development
of key
management
reporting
Development of
overarcing Service
specifications and
SLA
Standardisation
of Service
Delivery
models
Regional
and
Global
Structure
Varying
Service
Specifications
/ SLA’s
Remaining locally relevant
KEY TO SUCCESS
Capabilities Relationships
Governance Partners
QUESTIONS
THANK YOU