William Metz, Proctor & Gamble - GBS Journey & Tips on Going Global

GBS Journey &Tips on Going GlobalTips on Going Global

Shared Services & Outsourcing Week

May, 2010

William P. Metz

Procter & Gamble Global Business ServicesProcter & Gamble Global Business Services

William Metz

Current role:Global Business Services External Strategic Alliances

Previous roles:Previous roles:GBS External Business Development ManagerPMO Section Manager IT Strategic Sourcing Section ManagerIT Strategic Sourcing Section ManagerTechnology Solutions Consulting Section ManagerApplication & Data Technologies ArchitectFounder of P&G’s Jedi competencyFounder of P&G s Jedi competency development program

Certified Outsourcing ProfessionalCertified Outsourcing Professional

Contact Information: metz.wp@pg.com

Ab t P&G/GBS1 About P&G/GBS12 O J2 Our Journey

343 Results

Tips on going global4Wh N t5 Where Next5

• Founded 1837 ce• Headquarters in Cincinnati• $76.7 Billion annual sales la

nc

• 135,000 employees• More than 300 brands sold in 180

countries a G

l

countries • Operations in more than 80

countries at a

countriesWilliam Procter

&G

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James Gamble

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Touching and nspi

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Touching and Improving More

Consumers’ Lives in More Parts of se

-Inw

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in More Parts of the World…More

Completely urpo

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Global Business Services is one of the 4 Pillars of P&G By transforming the way business isof P&G. By transforming the way business is done we ensure that P&G can fulfill its Purpose.

globalbusiness

units

marketdevelopmentorganizations

corporatefunctions

globalbusiness

units gservices

Transforming the Way Business is DoneWhat we Stand For

Ab t P&G/GBS1 About P&G/GBS12 O J2 Our Journey

3Ti i l b l4

3 Results

Tips on going global4Wh N t5 Where Next5

P&G 1985 - 1999

Global Expansion…• Entered 55 new markets• Increased operations to 86 countriesp

We Saw…• Duplicated services across regions• Structural inability to take advantage of economies y g

of scale• Inefficiently-allocated staffing and budgetsInefficiently allocated staffing and budgets

We Had A Dream…Vision:Transform the way business is doneTransform the way business is done

We accomplish this by delivering the “AND”:AND :

• Scale and agilityCost saving and quality services• Cost saving and quality services

• IT- driven innovation and support• Greater flexibility and flow to the workGreater flexibility and flow to the work

…and to offer a strong foundation for P&G Growth

We didn’t need to run fasterto run faster

We needed toWe needed to change the way

we ranwe ran

Changing the Way We Ran

• Structuring for success without losing the local touch

• Thinking holistically about our services

G i i P t hi• Growing in Partnership

• Integrating IT

• Evolving to stay relevant

Structuring for SuccessCentralized

One services

Global

6 hubs in low

Holistic

170 business and One servicesorganization cost locations employee services

Ci i ti

Newcastle

BrusselsBrussels

Cincinnati

San Jose

Singapore

Manila

Singapore

Delivering Employee Services for 135,000 & Business Services across 80 countries

Thinking HolisticallyNot just IT or HR… but all aspects of business support:

• Employee Services for 135,000• Business Services across 80 countries

Employee Services

Employee Services

Business Services

Strategic Sourcing & Procurement

People Management

Facilities

Computers & Communications

M ti S i

Financial Services & Solutions

Product Innovation

Supply Network Solutions

Consumer SolutionsMeeting Services

Travel Services

Consumer Solutions

Customer Solutions

Initiative Management

Business Performance Solutions

Growing in PartnershipWe could grow faster, stronger with the Traditional

Relationshipexpertise of our strategic partners

RelationshipCustomer to

Supplier basedWin-loseWin lose

relationship

Strategic PartnershipPartnership

Grows the pie and delivers a win-win

ps • $4.2 billion agreementsrs

hip

Employee Services

• 11 months start-to-finish

•Quality AND speed execution

tner

Q y p

• Shared measures for success

Par

t

Facilities

tial P Management

IT Infrastructure + Applications +

Init

Applications +Transactional Accounts

Payable3

… and now

A Network of Excellence

Integrating ITg g

• From technology to solutionsFrom what’s needed to what’s possible

IT St t i

Business • From what s needed to what s possible StrategiesNeeds IDS

And a unique name for our IT organization:Information Our unique asset Decisions What we want to enableDecisions What we want to enableSolutions What we want to deliver

Continuing to Change the W W RWay We Run

Ab t P&G/GBS1 About P&G/GBS12 R i f2 Recipe for success

343 Results

Tips on going global4Wh N t5 Where Next5

Overall Results

• Reduce GBS cost as a % of sales by 33%• Service levels up

17 points (from 80 to 97)• Speed to market 2x fasterp• Delivering 75% more

service scope than 7 years agoyears ago

Overall Results• Managing 3x the number of

complex initiativescomplex initiatives• Acquisitions & Divestitures time cut

in halfin half• And more capacity to Innovate

Gillette acquisition; 1100 j t• 1100 projects• 15 months to complete• $1.2 Billion in synergy savings

Digitize - Video CollaborationEasy Collaboration – $4 return for each $1 spent

example

Visualize - Decision Cockpitsat

a

Faster – Better business decisions

Raw

Da

tsis

ion

Coc

kpit

Dec

i

example

Simulate - VirtualizationSpeed to Market – More than $10 million saved

example

Ab t P&G/GBS1 About P&G/GBS12 R i f2 Recipe for success

343 Results

Tips on going global4Wh N t5 Where Next5

1 The globe is big and has much to offer1 to offer

2 Global capability is growing rapidly2 rapidly

3 Shared services model eases the transition3 the transition

4 Change management is key4

5 Culture Counts5

6 Process Rigor is Essential6

7 Collaboration tools can be a big help7 big help

Ab t P&G/GBS1 About P&G/GBS12 R i f2 Recipe for success

3Ti i l b l

3 Results

4 Tips on going global

Wh N t54

Where Next5

Scale Our Work• Continue to leverage scale to innovate,

standardize and simplify • Expand our Shared Services scope• Expand our Shared Services scope

Scale Our Network• Systemically move what is non-core to us to

an external provider for whom that work is core businessco e bus ess

• Priority access to innovation capabilities of our partners

Design for Flow• Ability to ramp up our key priorities quicklyy p p y p q y• 50% of organization is designed to “flow-to-

the-work”