Project Vie - Unilever

Where we were, ……Where we were, ……

Where we were, …… and where we’re goingWhere we were, …… and where we’re going

Health Warning

There is no ‘off-the-shelf’ solution available (‘Leap of Faith’) There is NO single provider that can currently do

everything, everywhere. The Scope of Work ‘challenge’ was indeed challenging! All businesses using outsourcing have complaints as well

as compliments TSA ‘greenfield’ vs. P&G ‘brownfield’ Everyone points to the client as one of the major obstacles

to successful outsourcing

Introduction

What did we ask for in the RFP?

What are you buying?

A service provider delivering all of: Service foundation – getting the basics right

Consistent services delivered globally Transformational approach (Industry term, versus ‘transactional’)

Extended services – building on the foundation Existing service provider established infrastructure will have gaps Work in partnership to achieve full scope

PeopleSoft implementation and ongoing support – completing the implementation

HR organization transformation – in parallel with outsourcing services Optional BPO partnership support for the transformation

The Savings Case

8

Sourcing Dimensions

• Scope– Process Scope– Geographic Scope– Languages– Desired Process Maturity

• Delivery Model– Delivery Style– Delivery Channels– Service Delivery Locations

• Resources– Use of Delivery Assets– In-scope People– Severance Approach– Retained People

• Change Approach– Transition Phasing Approach– Transformation Phasing Approach

• Technology– HRMS – PeopleSoft– Other Technology

• Relationship– Pricing Model– Reliance on Pricing Transparency– Desired Relationship with Provider– Desired Contract Term

MaximisingCost Savings ?

MaximisingOrganisational

Comfort

30% to 50% AnnualRun Rate Savings

10% to 20% AnnualRun Rate Savings

HR Information Solution 10%

Geographic Solution 5%

Operations Solution 15%

Service Provider

Experience 10%

Managing Risk 10%

Cultural Fit 5%

Governance Approach 5%

Pricing 20%Transition

Solution 10%

Transformation Solution 10%

Solution

Partnership

PriceImplementation

Risk

Price has a ‘wild card’ effect – if the desired price is not achieved then the bid is unsuccessful

Decision Process

HR-T Business Case – Savings Calculation

(a) Cost of HR - Unilever Baseline (Assumed and Retained) plus Unilever Avoided Costs

(b) Cost of HR in an outsource scenario - sum of:1. Cost of Service Provider Solution

1. SP Mobilisation, Transition and Transformation Charges2. SP Annual Service Charge

2. Retained HR Shared Services3. Unilever Service Provider and Project Management costs4. Redundancy costs5. Retained Organisation Expense

1. FTE cost less Retained Org FTE savings6. 3rd Party Spend less Buying Savings7. Additional Unilever costs due to Outsourcing e.g. toll free

telephony, systems decommissioning costs

Cash Flow (b) – (a) equals savings

Transition & Transformation

Transition The period of time that starts with the transfer of

responsibility to the service provider

Transformation The project work that results in work moving into the

strategic delivery model

Transition and Transformation

Financial Impacts Cost of Transition Project resources & backfill Double running costs Timing of payments Impact of Delays

Solution Overview

Core Service Delivery Model

Solution Overview

Retained

Outsourced

Partially outsourced

Solution - Financial Considerations

Fixed Price vs Variable Invoicing – central vs distributed Invoice timing Delays to Country Go Live Partial Go Live Situations Change Requests - Local Work instructions True Up / Down Disappearing baseline Savings Ownership

Technology Solution

Source of all HR information Automates HR processes

Drives efficiency

Enables Manager and Employee Self Service Single global system for HR (Peoplesoft) Savings tracking

Why is information technology important?

It is going to get tough, so we will need to be equally tough in response

Summary

HRRabbit

Summary

HRRabbit

HRRabbit

It is going to get tough, so we will need to be equally tough in response

“Everything will be better tomorrow”

"History is the version of past events that people have decided to agree upon." : Bonaparte (1769 - 1821)

"History will be kind to me, for I intend to write it." : Churchill (1874 - 1965)

Final Thoughts