HR BPO JourneyCharles-Henry DuroyonGroup HR Systems & Efficiency Director

Agenda

1. About Faurecia

2. Setting the Scene – Building the sourcing case

3. Achievements to date

4. Key success factors

5. Influencing the future

4

Faurecia at a Glance

Annual Revenue Worldwide Presence Employees

$15 billion 220 sites in 32 countries 70,000 employees including 791 HRs

5

Setting the Scene : HR in Faurecia

791 HR covering 67,000 employees65% at site level (220 sites)

EVP GroupHuman Resources

ASBG HR

CBG HR

ESBG HR

ISBG HR

MSBG HR

PG

HR

Faurecia University

Management & Development

Compensation Benefits

Recruitment

Industrial Relations

Employee Empowerment

HR EfficiencyInformation System

HR Controlling

France

Germany

North America

Portugal

Slovakia

Spain

South America

United Kingdom

Countries

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Setting the Scene> Preliminary Studies in 2005 showed the following “Facts”

Multiplicity of Systems and environments (35) No Interfaces possible between systems No Central Database for all employees (core system) Historical and Local Operating Rules Weak Underlying Processes leading to discrepancies and/or major inefficiencies On-going and Mandatory Investments Weak launches and new country implementations

Total cost of HR Administration is €25,40 per employee/month in HCC

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Our initial objectives Align payroll, personal administration and Time & Attendance organization

and processes

Improve HR Quality of Delivery and Efficiency

Ensure perfect control over HRIS and Payroll costs and limit financial and legal uncertainty

Quality, Simplicity, and Efficiency

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Personal

IT

ComplianceRenewals

Temps

Initial TCO

ADP Processing

Costs

2.5m€/y

TargetFinal Case

CSPs/MS Costs

-20 +X % per ee per monthdirect

X : Retained Organization

Building our case

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Our HR BPO Model Hybrid in High Cost Country (>800 ee)

– Outsourcing “Means” to ADP Globalview for HR, PA, Payroll, Time Management (Processing Services)

– Shared Services Center operated by country/region (Min Cluster is 5k ee)

Full BPO in Low Cost Country (>400 ee)– Complete Outsourcing to ADP GV for HR, PA, Payroll, Time Management

(Managed Services)

Outsourcing to either ADP Streamline or Local Best of Breed for other smaller countries

Global HRIS Architecture

HR Business

IntelligenceDW

Financial Systems

Other FRC Dowstream

Systems

Group HR Reporting on 21 Key Indicators

SSC, Site HR, Local administrative

Talent management

Data entry

Data entry Data

entry Recruitment

Compensation

Learning Mgt Syst

Global HR Process LayerInterface

Interface

Interface

ADP SSC

Personal Administration

Payroll

Time Management

SelfService

MTS Self

Service

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Functional Scope

Personal AdministrationFaurecia Core System

• 60 common employee data worldwide

• Common Processes for Hire, Transfer, Expatriates, Temps

Time ManagementManager Self Service

• Manager portal• Personal Administration

workflows

PayrollCommon SAP Engine

• Secured, Consistent, Compliant

• Robust controls & employee satisfaction

HRSecure all employee

data in one place• M&P only

Interfaces• Reporting• SAP FI, CO

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Milestones

GV Countries Deployed

7Employees Serviced45,000

Functionalities DeployedPA/Payroll

Time Management

Active SSC 3

Employees Serviced26,000

GV Implementation

5 countriesEmployees

11,000

HR/TrainingESS/MSS

Org ManagementExtension on going

SSC in deployment3

Employees16,000

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Current Priorities

1. Secure Vendor Relationship

• Stabilize France and Spain• Share Best Practices

among countries• Establish Standards and

Processes• Control Change Request

Volume• Ticket Management Level

II ( No ticket aging >14 days Group Wide)

• Follow Global KPI and Satisfaction Survey

2. Global Interfaces Deployment

• Deploy GV/DW Interface• Extend to Additional HR

Indicators• Introduce Cost Reporting• Monitor and Measure

existing Interface• Deploy MTS to Spain and

France • Reinforce SAP FI/CO

Interfaces and Process sharing

3. Extend GlobalView Scope

• Address HR data Transfer into GlobalView

• Introduce Organization Management

• Deploy Solution for Training Management and Salary Review

• Reinforce HR Data Management Processes

• Evaluate ESS/MSS opportunities

• Automate Finance Integration

4. Address New countries

• Deploy Remaining Countries : MEX, BRA, SVK, POL, CHN, SKA, MAR, remaining acquisition by end of 2011

• Adapt methodology following France Implementation

• Evaluate ADP “Managed Services” Model

Increase Project Value for Low Cost Countries

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The Good

• 56,000 payroll processed every month

• Payroll accuracy over 99%

• No SLA penalties ever

• Over cost 8% above of initial estimate

• Average ADP satisfaction Rate at 4,3/6

• Governance model in place

• High Cost Country model very competitive

• Move from Financial to Partnership

• I survived..

“Lies, Lies and Damn Statistics”

The Bad and the Ugly

• France, French, les français…

• Implementation is a tiring and complex journey

• Retained organisation above anticipated figures

• Resolution vs Responsiveness (SLA)

• Extended Transition phase

• SAP Job Market currently difficult

• Global Model in low cost countries is challenging

• Agility of Global Solution vs Local Solution

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Level 2Regional&GlobalSupport

Client Services Escalation Model

Level 3GlobalSupport

Level 4 Global Sponsor

Level 1Regional& LocalMonitoring

Operations Country HR operational

• Daily Operations• Case resolution according to SLA in single CRM

tool through Tier 1

• Service Scope change (Regional/Local level)

• Service/SLA monitoring• 1st escalation step

APACEMEAAmericas

Jean-Pierre SounillacExecutive Sponsor

Charles-Henry DuroyonGlobal Engagement Manager

GV Service Delivery Manager

Todd SpragueExecutive Sponsor

• Service Scope change (Global level)

• 4th Escalation step

• GRM support for GSDM on Service escalations

• Commercial escalations• Service Scope Change

(Global level)• Service Escalations• 3rd Escalation Step

America’s EMEA APAC

Corporate Service Coordinator

• RRM support for Regional CS Director and SDM on service escalations

• Contract monitoring• Service scope changes• 2nd escalation step

Global Field Services

Country Service Centre Tier 1 &2 GlobalView

Team or Country lead

StreamLinePartners/

Central Team

Regional SDM

Regional SDM

Regional SDM

Nicolas AimezGlobal Relationship Manager

Regional SC

Regional SC

Regional SC

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The 10 Commandments You will ensure your vendor does a proper transition between Sales/Pre-sales and Implementation

You will have a shared governance model as of day 1 and monitor it closely

You will spend sufficient time in Global Preparation and Project Management tools before starting the project

You will ask your provider to have systematic Gap Analysis on functionalities but also on Level of Services

You will keep financial arbitration separate from day to day local project management

You will not underestimate your own workload

You will need internal SAP expertise to possibly challenge some implementation choices

You will request local consultants and management for complex payroll countries (e.g. Belgium, France, Italy)

You will be inflexible on quality, unit and regression testing before starting your User Acceptance Testing phase

You will keep your key people in the governance model after go live

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Questions?