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The HR Triangle

Global Business

Universal best practice

Local Employment Law

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Dow Chemical (2010)

• Annual sales of $53.7 billion

• Employed approximately 50,000 people worldwide.

• More than 5,000 products

• Manufacturing in 188 sites in 35 countries

• Customers in approximately 160 countries

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2009 Sales by Geographic Region*

North AmericaSales: $16,800

Latin AmericaSales: $5,242

EuropeSales: $15,431

India, Middle East, AfricaSales: $1,642

Asia PacificSales: $7,529

*2009 data; dollars in millions

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In the eye of the triangle

The HR Generalist

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HR Strategy vs Real-Life

• Starting point:

– Global Strategy to expand in India

– Research and Engineering centers

– Back-Office Service Center

• Tactical Plan:

– Locations defined per center

– Hire targets set

– Global sponsors involved

– Expats on the ground

• Operational Plan:

– Use existing HR on the ground and add local hires

– Provide requirements and profiles from the globe

– Train employees locally in our workprocesses

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HR Strategy vs Real-Life

• Disconnects:

– Global Best Practices versus local reality:

• E.g. Recruiting process

– Business expectations

• E.g. Cost: ‘Different’ then planned

– Local practice vs company culture

• E.g. Efficient Leadership structure took longer then expected

• It is a success but….

• What is the added value of a “stronger” input from HR in setting the strategy and planning of the implementation?

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HR Strategy: a multi-layered challenge

• What has HR accumulated over the last few decades?– Global workprocesses/ efficiency gains– IT supported tools– Reliable data: Headcount, cost per employee, ratio’s (e.g. #of HR per

employees), etc

� Corporate Level

• Higher complexity: Larger reality vs Speed of Change– Regions have different HR life cycle which impacts the relevance of

global tools• Pay cycle - Availability of talent - Leadership development

– Businesses have different plans by regions:• Grow – Harvest – Shrink/Exit

– Regional agenda vs Global agenda• Pension plan – Nationalization - Diversity targets – Aging work

Force

� Business and regional level

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HR Strategy: a multi-layered solution

• Multi-layered by region

– Developing – emerging – consolidation/improving – declining

• HR’s need for credibility

– Structured HR Business plans based on financial- forecasts, employee and market data, timelines and commit to deliver a result

– Linked to Corporate and/or Business direction

• Growth – Harvest (??) – Shrink/Exit

– Learn from other functions: e.g.

• Supply Chain for right talent, at the right time in the right place

• Engineering Project Management for timing

• Finance for cost calculations and cost forecast

• Marketing for labor market analysis and competitor analysis

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The Human Element

Vlerick HR day !

Lunch time !

� Broodjes buffet: restaurant en tuin

� Drie warme maaltijden: restaurant en tuin (6 locaties)

� Dessert – en koffie buffet: Lounge

� IJskar: Atrium

Bedankt voor uw aanwezigheid in deze track

The dessert buffet is being provided by