HR Driving Operations Strategy

Steve Geiger, Cameron

19 April 2016

Overcoming HR’s Reputation

Why We Hate HR

“After close to 20 years of hopeful rhetoric about

becoming strategic partners with a seat at the table

where the business decisions that matter are

made, most human resources professionals aren’t

nearly there. They have no seat, and the table is

locked inside a conference room to which they

have no key. HR people are, for most practical

purposes, neither strategic nor leaders.”

-2005 Fast Company article

Human Resources:

Strategic Partner or Paper-

Pusher?

“ORGANIZATIONS OFTEN CLAIM THAT:

‘People are our greatest asset’…

• But do they understand how HR influences

company performance?

• Do HR people feel like they play an important

role in implementing the organization’s

strategy?

• Does HR really matter?

-Juan I. Sanchez, Ph.D.

Department of Management & Int’l Business

Florida International University

2007

Moving from Cost Center to

Strategic Business Partner

Becoming Strategic… • Start Testing the Roots of Your

Vulnerability.

• Challenge Your Creativity.

• Seize the Opportunity: Take Control &

Act Now!

• Think Like a Business Person First.

• Perfect Market Conditions for New

Ideas.

Clint Tripodi

The Pendolini Group

April 2014

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3

HR as a Strategic Business Partner

Business Relationships Business Relevance

HR Leadership Mindset

and Capability HR Change Management

▼ ▼ ▼ ▼ Does your HR team have

strong relationships with

the CEO and the

Company’s top leaders?

Does your HR team have

a deep understanding of

the Company strategy and

the role they play in

helping the organization

achieve its goals?

Do your HR leaders have

the business acumen and

leadership skills to be the

trusted advisors your

executive team needs?

Is your HR organization

ready to reposition itself as

strategic business

partners?

A Look Back: Cameron International 2011

Revenue: $6.9 Billion

Headcount: 22,500

Five Divisions:

Drilling Systems

Surface Systems

Subsea Systems

Valves & Measurement

Process & Compression Systems

2011 Executive Strategy Meeting

Strategic Direction:

• Customer & Service Excellence

• Significant 2012 Profit Objectives

• Shared Service Model

Consensus:

Missing the glue to successfully

achieve these objectives.

Barrier to HR as a Strategic Partner:

CEO Trust

Root Cause of this Barrier:

Leadership Mindset & Capability

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2012 Launch of One Cameron: The Glue

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2012 Launch of One Cameron: The Glue

2011 Annual Report

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©1994-2016 Senn-Delaney Leadership Consulting Group, LLC. All rights reserved. 7

Barrier #2: Culture =

Executive Alignment

Root Cause Barrier:

Leadership mindset

jaws of culture

low results

few out

many in

cultural barriers

initiatives

One Cameron

Customer experience

Quality

Aftermarket

Enterprise excellence

OPTIMUS

turf issues

resistance to change

hierarchy

bureaucracy

blaming and excuses

lack of:

bias for action

trust

openness

teamwork

“can-do” attitude

customer focus

2012: Ability vs. Willingness

Launch of Cameron Strategy Map

2013 STRATEGIES

• No one gets hurt,

Nothing gets

harmed

• Promote a healthy,

high performance

culture:

Accountable,

Empowered,

Informed

• Select, train,

develop and

recognize qualified

& engaged

employees

People Process & Technology

Customer Finance

• Acquire and retain

best customers

• Deliver on our

customer

commitments

• Build trust-based

relationships through

service excellence

• Grow enterprise value

• Grow revenue faster

than the market

• Grow EBITDA faster

than revenue

• Continuously improve

Working Capital

• Grow return on

invested capital

• Grow EPS

A PEOPLE STRATEGY

We create the flow control technology that energizes the world 8

2013: HR Implementing the ONE CAMERON Strategy

Managing HR as a Business:

Barriers to Success

Barrier #3: HR Mindset

Barrier #4: HR

Misalignment

Barrier #5: HR Systems &

Resources

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HR Strategy Map

We create the flow control technology that energizes the world

CAMERON STRATEGY MAP

2014 CAMERON HR STRATEGIC INITIATIVES & FOUNDATIONAL OPERATIONS

People Process & Technology

Customer Finance

• Employee Engagement

• Talent Readiness: Hire to

Retire o Executive Talent o Plant managers o Engineers o Field service o Project managers

• Global Recruiting

optimization

• Employee

Communications

• GRDP and University

Relations

• Training optimization oLearning Management

System (LMS)

• HR Optimus value

realization

• Recruiting Effectiveness

& Efficiency

• Payroll oOptimus, SAP oMaster data

management

• Benefits Process &

Technology oUS Healthcare trend oBusiness Solver,

Healthy Roads

• Mobility effectiveness

• HR Compliance

• HR Customer Satisfaction o Business leaders o Employees o Candidates

• Recognized value

HR Value to Cameron and One

Subsea:

We deliver the right people in

the right jobs at the right time to

meet the business’ needs. We

develop, deploy and manage the

highly effective and cost-efficient

HR processes and systems

required to create, reinforce and

sustain a qualified and engaged

workforce. We support Cameron

and One Subsea in being

increasingly profitable.

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To the Cameron Board of Directors

#1 HR Barrier to Company’s Success:

2013: HR Implementing the ONE CAMERON Strategy

Barrier #1: Leadership Bench

Strength Root Cause:

Leadership Development

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Finance

(Internal Selection)

June 2014 -

August 2015

CIO

(Internal Selection)

August 2014

T100

(Development)

October 2014 – August

2015

President

(Development)

December 2014 -

Present

CEO

(Development)

January 2015

CIO

(External Selection)

February 2015

Leadership Assessment Timeline

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2014: Measurement & Recognition

Measurement: HR engagement with top 75+ KPIs

HR strategy and objectives aligned to Cameron’s

Established goals; ongoing measurement & assessment

Significant positive correlation with TRIR, DAFW, OTD, Customer

Satisfaction, margin improvement

Board and President Support

HR alignment to Company strategy and objectives

Measurable HR goals and objectives drove executive-level support

HR earned “seat at the table”

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Key Takeaways

Business Relationships Business Relevance

HR Leadership Mindset

and Capability HR Change Management

▼ ▼ ▼ ▼ Earn the trust of executive

leadership through

measurable results in key

areas that align to business

objectives.

Align HR goals and

objectives with company

strategy.

Ensure HR leadership has

business acumen needed

to align strategy

development and

execution to company

objectives.

Drive positive

transformation of HR

organization from

administrative focus to

strategic business partner.

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