Group Professionals Concept - Randstad · PDF file11/25/2010 Analyst & Investor days 2010, London/ Professionals . 4 ... Grow GP Reduce costs Grow existing business: ... H1. B1. GP/PE

Group Professionals Concept

Robbin Brugman – MD Group Professionals Concept

professionals important aspect in strategic roadmap

11/25/2010 Analyst & Investor days 2010, London/ Professionals 2

* 2009 revenue professionals €2.7 bln.

*

Randstad among leading players in professionals (exclude outplacement at Adecco & Manpower = different service offering )

3

ProfessionalRevenue

ProfessionalGross Profit

ProfessionalGross margin

Share of Professional segment in

group Revenue

Staffing Industry Analysts Revenue ranking

1. Adecco 4.625 1.123 24,3% 28,0% 12. Robert Half Int. 2.186 795 36,3% 100,0% 103. Manpower 2.662 702 26,4% 22,2% 34. Hays 2.762 620 22,5% 100,0% 85. Randstad 2.472 604 24,4% 18,9% 26. Allegis 1.778 434 24,4% 50,6% 47. Michael Page 806 395 49,1% 100,0% 238. Advantage 1.124 234 20,8% 78,1% 99. K-force 655 206 31,4% 100,0% 2810. SThree 584 192 33,0% 100,0% 3011. Hudson 498 188 37,7% 100,0% 3612. Kelly services 849 166 19,5% 27,3% 513. SFN 575 160 27,9% 43,7% 1314. Brunel 738 152 20,6% 100,0% 2615. AMN Healthcare 547 147 26,9% 100,0% 3116. Skilled Group 477 137 28,7% 48,9% 1617. Robert Walters 338 117 34,8% 100,0% 5318. Volt 519 85 16,5% 50,6% 1819. USG people 310 68 22,0% 10,3% 720. Harvey Nash 423 68 16,1% 100,0% 45

Subtotal 24.927 6.594 26,5%Others 54.073 14.006 25,9%Total 79.000 20.600 26,1%

2009€ M

11/25/2010 Analyst & Investor days 2010, London/ Professionals

4

Randstad Professionals global operations 2009


Revenue

split of professionals’ segments

33,2%

18,2%16,9%

12,9%

3,8%

1,8%

1,5%0,8% 10,9%

Professionals

IT Engineering/TechnicalHealthcare Accounting/FinanceEducation LegalHR ExecutiveLocal Specialties

9%6%

15%

6%51%

13%

IT

9%

16%

29%26%

15%

5%

Engineering

5%

51%23%

16%

5%

Healthcare

15%

26%

19%

25%

14%

Finance

Netherlands France Germany UK North America Other

* Figures are based on half year one results

Analyst & Investor days 2010, London/ Professionals 11/25/20105

concept advantages

• Collective learning by combining best practices • Concept described and validated • Drive performance improvements by concept alignment across

current Opcos• Drive focused copy & paste roll-out across sectors/segments across

Opcos • Cost savings by merging companies branding, back-offices, branches,

network efficiency• Higher visability among candidates (e.g. UK campaign)• Cross selling with different segments and countries


10%


Professionals conceptbuild on best practices (e.g. Finance)

Business model A> Market & Process > ....

Business model B> Market & Process> ....

Business model C> Market & Process> ....

Business model D> Market & Process > ....

Business model E> Market & Process > ....

Business model F> Market & Process> ....

BEST PRACTICE


Professionals Supplements (modules)



what’s different????

Specialist Credible partner (line manager)

> Tenure consultants

Value focused

Mid to High Job level

Individual accountability

Sales led culture (every body sells & sales hooks)

Commission/BonusRecognition/ Awards

Team structureBilling managers

Candidate focus (buckets & Leads)

Separate perm & temp Open & Strict Field steering(White boards, League tables)

High performance model High competitive marketConcentrated distribution

Reviews/PEP/PAP

credible partner

good quality candidates

properly vetted candidates

knowledge of our market

value for money

credibility with line manager

relationship with individual consultants

‘straight talking’ approach

ability to positively ‘represent’ client brand

provision of valuable market intelligence

deep client understanding

value differentiatorsmandatory factors but not consistent through opcos

desirable

11 Analyst & Investor days 2010, London/ Professionals 11/25/2010

true knowledge

strategic targets


Professionals Concept (targets)

↑GP/PE, OP > 10%, ↑GP/FTE

Copy & paste Professionals concept in case of new implementation (time to market)

Concept alignment to improveoperational & financial performance


achieve profitable growth by using concepts

Achieveprofitablegrowth

Grow GP

Reducecosts

Growexistingbusiness

Grow in newbusiness

Growmarket

GrowRandstad share

CopyRandstad models

… new forRandstad

Growbusiness as is

Transfer to optimalbusiness model


achieve profitable growth by using concepts

Achieveprofitablegrowth

Grow GP

Reducecosts

Growexistingbusiness

Grow in newbusiness

Growmarket

GrowRandstad share

CopyRandstad models

… new forRandstad

Growbusiness as is

Transfer to optimalbusiness model


> Control the professional recruitment engine> KPI and process driven approach

small packages influence smallest entity

16

Sales target Companies Client relationships > Fill rate

Predict demand Prepare Control “Sell”

$ 185 K

Analyst & Investor days 2010, London/ Professionals

Calculation example, per consultant: Perm Interim/Temp

Yearly target per consultant : $ 185.000 (A) Average Fee per hour: 20% x $50,- = $ 10,-

Average fee per placement : $ 9.000 (B) Average job duration : 26 weeks x 35 hrs

Required # placements to meet target : A/B = 21 placements Value placement 26 x 35 x $ 10,- = $ 9.100

Fill rate on validated jobs : 50% Fill rate 60%

Required # jobs in a year : 21 * 50% = 42 ($185.000 / 9.100) / 60% = 34 (20 filled)

11/25/2010

gross profit/FTE (actual example)

17

60

70

80

90

100

110

120

130

Gross Profit FTE


Decrease costs

- Shared services

- Accommodation

- Remuneration

Revenue decreasing

- No sales led organization

- Low productivity

Transform

- Improved market focus

- Transparent Management Steering

- Excellence in execution

- Higher productivity / FTE

gross profit/FTE (actual example)

18

60

80

100

120

140

160

180

200

Gross Profit FTE


Internal changes-Integration

Decrease costs

- Locations

-Shared services

Joint effort

- Business scans per Zone

- Training management

Concept alignment

- Improved Focus

- Strict Management steering

Temp Billing Per Day vs. Avg. Corporate Staff

60

70

80

90

100

110

120

130

140

Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10

Temp Billing Avg. Corporate Staff

Inde

x


improve performance by concept alignment↑ EBITA, ↑ GP/PE


Case 1

Case 2

J1I1

H1

B1

K1

GP

/PE

EBITA

21

concept alignment/ ↑performance

index development GP/FTE

60

80

100

120

140

160

180

200

Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10

Accountants Int'l - US Randstad Technologies UK CPE London (former BBT Team) Engineering Canada

Analyst & Investor days 2010, London/ Professionals 11/25/2010

Summary Professionals – Building Blocks


strong concepts - Prof concept defined and validated- Drive performance improvements

by concept alignment across current Opcos

- Drive focused copy & paste roll-out across sectors/segments across OpCos

best people - HR module for professionals

(competencies, profile & remuneration)

excellence in execution - Drive performance improvements

by concept alignment across current OpCos

strong brand - Professionals brand integration - Professionals design completed- Joint campaign materials in use- New web platforms implemented- Operational Marketing module for

professionals

Documents

Group Professionals Concept - Randstad · PDF file11/25/2010 Analyst & Investor days 2010, London/ Professionals . 4 ... Grow GP Reduce costs Grow existing business: ... H1. B1. GP/PE