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Globalisation of HR

GVFHRA

Kimberly Wipf, Executive Director, Global Recruitment

AstraZeneca

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Top 5 Reasons to Go Global• You like to collect air miles on airlines that you will never

be able to us

• You like getting up at 3:30am for a 1 hour conference call with the UK

• You like carrying large suitcases up hotel stairs filled with import/export for your family and friends

• You like getting a smaller bonus than expected because your European Boss thinks Americans are paid too much

• You like eating fish for the fifth meal in a row because you don’t know any other words on the menu

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Agenda• Background

• Globalisation

• Standardisation or “why can’t I do things the way I want?”

– Where does value come from? Why does it matter?

• Managing the “white space”

– Integration points for other functions/processes

• Learnings

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Background -- AstraZeneca

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SOME FACTSOne of the world’s leading pharmaceutical companies.

A 70 – year track record of innovation that includes theIntroduction of many world – leading medicines

Active in over 100 countries; strong presence in key markets;growing presence in important emerging markets

Over 67,000 employees: 17% in the UK, 38% in ContinentalEurope, 30% in the Americas and 15% in Asia, Africa and Australasia

17 principal research centres in 8 countries.

29 manufacturing sites in 20 countries.

Extensive sales and marketing networks worldwide.

Cancer

Cardiovascular

Gastrointestinal

Infection

Neuroscience

Respiratory & Inflammation

THERAPY AREAS

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Addressing the Globalisation of the Workforce

Traditional hierarchical models

are giving way to matrix organisation, project teams, and

collaboration models

Organizational Unit Country

Global

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Global Trends

“Old HR”

• Some centralised capacity

• HR processes managed independently

• Multiple, disparate budgets and investments

• Multiple systems with regional/functional variation

“New HR”

• Extensive centralised capacity

• Delivery responsibility consolidated across process

• Clear allocation of financial resource from central HR

• Single, simple connected systems with global consistency

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Specific Global Business Challenges

• Industry/Economic forces unlike anything in past experience

• Different growth patterns

– Western vs Eastern markets

• Overcoming past experience

– Prior technology projects

• Language

• True global capabilities

– HR and the Line

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Learning Mgt

HR Strategic/ Decision Support

Talent Mgt.

HR Data, HRIS, & Records Mgt.

Payroll & Benefits

Administration

Recruitment Admin. and Staffing

Non Core - Transactional Core – Decision Support

Operational HR – What is it?

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Standardisation – A “four letter word”?

• “My business is different!”• “I don’t like that format”• “You don’t understand how my

business works”• “It’s easier/faster for me to do it my

way”• Need to get a handle on true value

drivers• Risks of non-compliance and

complexity of business rising• Duplication of effort drives higher

business costs

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A Case in Point -- Technology

• “My business is different!”• “I don’t like that format”• “You don’t understand how my

business works”• “It’s easier/faster for me to do it

my way”

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Questions to Answer

• What are the business drivers for my company? Do they differ by geography?

• What differentiates our people management practices? Will globalisation impact those differentiators?

• Do I have the HR capabilities to drive standardisation and consistency?

• How do I better understand the needs of my customers?

• What is the “global glue” for my organisation? How can I exploit that?

• What does the line value from HR?

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AZ’s Approach

Lead Where It Matters Most

Provide value adding advice, challenge and support with courage and confidence

Use expertise, data and insights to guide people management decisions and actions to deliver outcomes

Be Lean and Agile

Get the basics right

Keep it simple and have clear points of contact

Set and deliver service standards

Challenge ourselves to be better than our competitors on cost and value

Be HR Professionals who make

every interaction count

Demonstrate clear accountability at all levels

Think and act as “one HR” globally

Deliver to the highest standards

Be business leaders first, with HR expertise

Lead Simplify DeliverProvide People Practices and Support…

…To Drive Business Success

HR Functional Strategy

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Opportunities & Challenges at AstraZeneca

• Strong engagement with line management

• Global has become the way we work

• Strong employee value proposition

– Employee engagement drives business value

• Lack of standardisation – across functions/geographies

• Duplication of roles/processes and systems

– Some overlap of roles within HR and between HR and line managers

– Disparate and unconnected systems

• Customer experience can be disjointed and complex

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AZ’s Approach

Organisation structure and governance

HR processes and technology

HR individual capabilities, skills and

behaviours

Greater separation of strategic, operational and transactional services and support

Global alignment of specialist resources

Stronger governance from HRLT

Simpler, more standardised and intuitive global processes

Shared service approach for transactional and operational activity

Improved technology that is easier to use

Higher levels of expertise in key roles

Investment in development of HR capability particularly in analytics and business acumen

Clear accountability and more effective performance management

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The Global HR Structure

HRVP, Global HR Services

HRVP, Performance & Reward

HRVP, Workforce Planning & Talent Management

HRVP, Leadership and Organisational Effectiveness

Executive VP HR

HRVP, R&D

HRVP, Corporate Functions

HRVP, Operations

HRVP, NA and Global Marketing

HRVP, International Marketing

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Lessons Learned• Manager skill is critical – spend more time on this than you

might think is necessary

• HR capability and capacity must be factored in. Don’t overestimate the readiness of HR staff to work differently

• Business Partner model – how many do you need? Focused on what?

• Transparency and honesty build trust in change

• Keep the customer at the forefront of decisions

• Clarity of the desired state is as important as the path to getting there

• Visibility and alignment of leadership drives trust in the strategy

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Global Recruitment

GovernanceCapability

Model

Organisation Structure

Global Processes

Metrics

Technology

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Integration Points

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In a nutshell

• Standard – Drive consistency where difference doesn’t drive value

• Simple – Core HR processes and activities must be easy to be effective

• Intuitive – Think like the user, not like HR

• Customer centric – does it help the user be more effective in delivering value to external customers?