Transforming HR One Day at a Time

Hershey’s Global Shared Services

Transforming HR One Day at a Time

March 3, 2011

Beth Klahre

Kerrie Wolfe

Agenda

� The Hershey Company

� Human Resources (HR) Organization Structure – new design

� HR Operations Vision

� Global Shared Services (GSS) Vision

� Roadmap to our Future

Agenda






� Founded The Hershey Chocolate Company 1894

� 12,000 employees

� $5 Billion+ in Revenues

The Hershey Company

#1 Brand Equity

#1 Pure Chocolate

Brand#1 Sugar Brand

#1 Confectionery

Brand

The Hershey Company

The Hershey Company

Social CommitmentSocial Commitment

Milton Hershey’s Legacy continues today

The Hershey Difference

Health and WellnessHealth and Wellness

SustainabilitySustainability

Agenda






HR Organization

� Why change?

–Current structure in tact for 7+ years

–HR wasn’t meeting needs of business

–Too slow and not flexible

–Not enough investment in Talent

–Lack of investment in people holding Hershey back

–Performance Management broken

Transformation means a change in what work we do, how we do it, and how we engage together.

It is more than just a structure change...

HR Vision

� HR working with you to drive business results

� Strategic, pro-active focus

� Decision making in HR closer to business

� Solution Centers that are solutions oriented & globally focused

� Streamlined, efficient processes

A New HR Delivery Model

Policy interpretationProcess improvement

Individual, Team and Organization Capability

Individual support and process inquiries

Solutions Development and activation

PerformanceCost / Quality of service

HR Business Partners• Assigned by client• Identifies HR needs

• Consistent application of HR policies,processes and systems

• Organization & leadership capability

PeopleEmployees & Managers

• Personal growth • Team growth

• Organization growth

HR Operations Center• HR global knowledge base andservice center based on common

processes and technology

HR Solutions Centers• Develop HR solutions (policies,

processes, systems) enterprise-wide andshare best practices

Diagnose NeedsDeliver

Design Solutions

HR Business Partners

Moving Away From:� Reactive; do what asked for

� Only involved in ‘people issues’

� Transaction Focused

� Compliance & control

� Generalists – creating own solutions to meet business requests

� Not interviewing talent

� Business ‘owns’ decision vs. HRBP having a point of view

Moving To:� Leadership team members

� Search for business insights to develop or seek proactive HR solutions

� Focused on people strategy to achieve business objectives

� Drivers of talent capability for the function through talent selection, development

� Participates on key business projects supporting Change management and OD

� Contracts with Solution Centers to seek customized solutions or supports enterprise work

Solution Centers

Moving Away From:� Reactive

� One off customized solutions

� Non-prioritized

� Brokered in via business without HR Business Partner involvement

Moving To:

� Strategic

� Deep technical expertise in area of specialty

� Standardized enterprise strategies and business-specific solutions

� Consults with HRBPs and clients to adapt solutions to fit business needs

� Solution and customer service oriented

HR Operations

Moving Away From:

� Benefits call center (WorkLifeCenter)

� No scripts (knowledge base) for agents to use

� Hours of operation are 8:30 to 5:00 (closed for lunch)

� Limited metrics available/call tracking

Moving To:

� Global knowledge base of all HR offerings

� Self help through myHR w/o need for call center intervention

� Call center available 24x7

� Multi-channel contact applications (calls, emails, chats, web, IVR)

� Robust call tracking and reporting

� Insights for HR Organization

Agenda






HR Operations HR Operations Model:Model:how how we interact with our customerswe interact with our customers

ACCESSthe Employee/ Manager

Self Service via “myHR”

CONTACTmyHR Support

Center Online

or over the

phone

CONSULTHR Ops &

Solution teams

HR’s Customers

NEED

TIER 0 TIER 1 TIER 2 & 3

Majority of customer requests answered by myHR & the myHR support center

HR Operations aligned with Solution CentersHR Operations aligned with Solution Centers

myHR:

� Employee

Self Service

� Manager Self

Service

Call Center:

� Data entry/record

creation/updates

� Answer inquiries

� Retiree inquiries

� Answer emails

� Escalate calls

� Basic policy issues

� Leave administration

� Employee assistance admin

� Unemployment comp claims

Administration of:

� Benefits

� Training

� Recruiting

� Relocation

� HR Budget

� Compensation

HR Technology:

� HR Master Data

� Performance

Management

� Feedback Tool

� Organization

Management

� iRecruiter

� Report generation

� Future technology

Simplify Plans, Programs

and Policies

Optimize HR Operations

Increase Self Service

Functionality, Usability and Integration

Implement Global Reporting and

Analytics

RecruitmentTraining &

DevelopmentCompensation Payroll Benefits

18

HR Master Data Maintenance

Global HR VisionGlobal HR Vision

Excellence in execution of seamless, standardizedprocesses across the entire employee lifecycle

What does this mean for our What does this mean for our employeesemployees

and and our company?our company?

For employees this means:

� Enhanced employee and manager self service capabilities putting HR information at your fingertips

� Increased convenience through additional interaction channels

� Improved interaction and ease of doing business

� Self help through myHR

� Automate previously manual processes

� Efficient identification of customer needs

For the company, this means:

� Greater access and global knowledge base of HR offerings

� Increased data accuracy, integrity and reliability

� Improved customer satisfaction through process efficiencies and information available on demand

� Scalable to support peak times more cost efficiently

� One technology platform

� Lower costs and increased employee services

Agenda






Global Shared Services

� Project Overview– Timing and scope

� Project Deliverables– As Is

– Vision

– To Be

� Approval by executive steering committee

� Move in

� Stabilization

22

OTCHRRTR

RTR STS

Hershey Business

RTR STS

HR RTR

OTC

S E R V I C E S

S H A R E D

HR

RTR

STSRTR

OTC

IS

� Create a Service Desk

as a single point of

contact at the heart of

our Shared Services

organization

� Common tools and

processes that enable

� Service Desk

agents to answer

questions in more

than one area

� Global workforce

management

� Knowledge base for

trend identification and

pushing and pulling

information

ServiceDesk

Service Desk Vision

RTR

Level 2

STS

Level 2

HR

Level 2

OTC

Level 2

Customer/

Employee

CRM-

IC

RTR

Level 3

STS

Level 3

HR

Level 3

OTC

Level 3

Shared Services

ISLevel 2

IS

Level 3

System

Events

Web Site, IVR

Phone, Fax, Email, IM, Chat, Remote Control

Customer/

Employee

How it fits together

3/10/2011

24

Knowledge Management

Ticket Management System

Knowledge Base(Internal Support Access)

myHR( HR Interactive & Internal Support

Access - Enwisen)

SAP(Interactive &Internal SupportAccess)

Public Portal(Interactive)

Other SystemsTBD

Contentmanaged byService Desk

Contentmanaged byBusinessUnits / GSS

Contentmanagedby HR

Agenda






Accomplishments in 2010Accomplishments in 2010

� Completed HR reorganization

� Completed project milestones for Global Shared Services Project

� Completed Change Leadership Training for anyone moving into Global Shared Services

� Transitioned to IP (internet protocol) telephones and wireless headsets

� Completed blueprint design for CRM tool…

CRM Workflow OverviewCRM Workflow Overview

WHOClient Type

HOWThe Channel

WHATInteraction Type

WHYCategory/Topic

WHEREEE Responsible

METRICS & REPORTING

• Active Employee

• Retired Employee

• Terminated Employee

• Candidates• Contractors• Third Party

Vendor• Public Entity• Job Seeker• Unknown

• Call

• Email

• Voice Mail

• Postal Mail

• Mobile

• Fax

• Walk-in

• myHR

• Inquiry -question

• Work Request

• Case Review- Event (OE)- Incident(PandemicResponse)

• Categorize Request using drop down menus

• Select client type and interaction

Tier 1• myHR

Support Center

Tier 2• Help within

HR Ops

Tier 3• Talent &

Total Rewards Solution Centers






� Completed blueprint design for CRM tool

� Launched myHR portal…

Launched myHR…..

……what you need, when you need it.what you need, when you need it.






� Completed blueprint design for CRM tool

� Launched myHR portal

� Moved to new space in Hershey…

New Space within the original Hershey Plant

SpaceSpace

Roadmap for 2011 and BeyondRoadmap for 2011 and Beyond

� Continuous Improvement - ongoing

� Implement CRM for myHR Support Center - 2011

� Introduce Total Reward Statements - 2011

� Enhance Employee & Manager Self Services – 2011-2013

� New Applicant Tracking system- 2012

� Onboarding application - 2012

� Implement Learning Management system - 2013

� Identify and bring in additional work:

– Employee Relations

– Global HR Reporting

– Assessments