Talisman Energy’s Global Mobility Transformations_GM_T.pdf · Talisman’s Global Mobility Transformation • Background • Approach & Objectives • Progress to date • Challenges

Talisman Energy’s Global Mobility Transformation

Talisman’s Global Mobility Transformation

• Background

• Approach & Objectives

• Progress to date

• Challenges

• Always Moving Forward

Background

Canada 121 Outbound expats 18 Inbound expats

United Kingdom 34 Outbound expats 21 Inbound expats

Indonesia 0 Outbound expat 13 Inbound expats

Malaysia 9 Outbound expats 45 Inbound expats

Norway 2 Outbound expats 16 Inbound expats

USA 0 Outbound expat 14 Inbound expats

Peru 0 Outbound expat 5 Inbound expats

Vietnam 4 Outbound expats 19 Inbound expats

Talisman’s Global Mobility Population - 2009

Algeria 0 Outbound expats 1 Inbound expat

3048 Employees Globally

• As of January 1, 2009 Talisman had 156 Long Term expat deployments in 9 countries


Australia 0 Outbound expats 9 Inbound expats

Colombia 0 Outbound expats 7 Inbound expats







Poland 0 Outbound expats 3 Inbound expats


Talisman’s Global Mobility Population - 2011 • January 1, 2009 - 156 Long Term expat deployments in 9 countries • June 1, 2011 - 204 Long Term expat deployments in 12 countries




Australia 0 Outbound expats 15 Inbound expats

Colombia 3 Outbound expats 8 Inbound expats







Poland 0 Outbound expats 3 Inbound expats


Talisman’s Global Mobility Population - 2013 • January 1, 2009 - 156 Long Term expat deployments in 9 countries • June 1, 2011 - 204 Long Term expat deployments in 12 countries • February 28, 2013 - 245 Long Term expat deployments in 16 countries


Luxembourg 0 Outbound expats 3 Inbound expats

Singapore 0 Outbound expats 6 Inbound expats

Sierra Leone 0 Outbound expats 1 Inbound expat

PNG 2 Outbound expats 0 Inbound expats


Talisman’s Home / Host Assignment Combinations

Aberdeen Bogota

Brisbane Calgary

Ho Chi Minh City Houston

Jakarta Kuala Lumpur

Lima Pittsburgh

PNG Stavanger

Aberdeen Algeria Brisbane Bogota Calgary Erbil Freetown (SL) Ho Chi Minh City Horseheads Houston Jakarta Kuala Lumpur Lima Luxembourg PNG Pittsburgh Singapore Stavanger Sydney Warsaw

Home Location Host Location

47 Different Home/Host Combinations and 274 Assignees as of February, 2013

Corporate Structure

Why did Talisman undertake a transformation of Global Mobility?

• Between 2009 and 2013, Talisman entered into 7 new locations, nearly doubled the number of employees on international assignments, and encountered a number of new home-host country combinations for assignments

• At the same time, initiating a new assignment was more challenging due to the increased number of policies and exceptions as new policies were created for many of the new countries we entered

• A complex legal structure and corporate veil issues (secondments, LOAs, no standard approach, etc.)

• Talisman business and HR leaders reported difficulties identifying and mobilizing candidates for international assignments and retaining them while on assignment

• An internal audit conducted on Global Mobility in Q4 2010 identified inadequate processes and controls and an annual spend that was feeling like it was out of control

• Assignees complained that the relocation experience was confusing and that there were too many contacts

• Some elements of Talisman’s long term expatriate policy were above market practice when compared to oil and gas peers

In 2011 Global Mobility was identified as a key strategic priority for Talisman

Approach & Objectives

Step 1: Current State Assessment

Step 2: Design Future State Service Delivery Model

Step 3: Design Future Policy and Governance Framework

Step 4: Develop Change and Implementation Plan

Phase 1: Assess Program, Redesign & Develop Implementation Plan

Phase 2: Construct Future State Program

Phase 3: Implement Future State Program

Phase 1: Assess

Phase 1: Current State Assessment

Service Delivery Design Considerations

Process Require clear, streamlined processes for assignee initiation, new country entry and exception management

People Clearly define and communicate responsibilities of Global Mobility COE, HRBPs, functional business leaders and assignees

Vendor Establish clear service level agreements with external service providers and clearly articulate exception management processes

Policies Redesign the suite of policies to meet differing business and assignment type needs, while minimizing the number of policies

Technology Review technology solutions, integrate where possible and seek out opportunities to leverage vendor technologies

Governance

Develop and implement a clear governance structure which outlines grants of authority for assignment approval, policy management and exception management

Business Requirements

Requirement Business Priority

Current Effectiveness

Change Impact

Business Partnering

Employee Experience

Speed

Consistency

Controls

Scalability & Adaptability

Operational Cost

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Key business requirements and design priorities emerged from the program assessment and were used to drive the redesign process. Interviews and workshops were conducted with HR stakeholders representing HR leadership (including the senior HR business partners from each business), the Global Mobility team and other process partner specialists. Additional interviews were conducted with functional stakeholders, external vendors and business representatives.

Phase 1: Outcome of Current State Assessment

• Objectives were defined :

– To enable fast, effective global deployment to support Talisman’s business objectives, our mobility program must:

• Be adaptable to business needs and different talent markets

• Provide a positive employee experience regardless of the home and host countries involved

• Enable business managers and employees to focus their effort and attention on their core business rather than being distracted by logistics

• Be cost efficient and competitive with our oil and gas peers

Step 1: Resource Requirements Identification

Step 2: Service Delivery Model Process Design

Step 3: Policy and Terms & Conditions Design

Step 4: Develop Implementation and Assignee Transition Plans




Phase 2: Design


Phase 2: Our comprehensive assessment led to eight key recommendations focusing on two core areas

• Proposed program changes will help enhance our assignees’ mobility experience by improving the processes and support provided throughout their assignments

• Close linkage between assignment planning and career development

• Improved speed of deployment • Effective technology platform for assignment planning, tracking

and providing cost implications of mobility decisions

Program administration • New global mobility

support team and processes

• New service delivery model

• Relocation services vendor

Policy changes • Consolidated policies

from 19 current policies and practices down to 5 (Long term, Short term, Domestic/International Transfer, Commuter, Rotator)

• The policy changes will create more global consistency and equity for all assignees

• We firmly believe that these changes are fair to our people, competitive with our peers in the oil and gas market, and the right thing to do to progress Global Mobility to meet our current and future business needs

• Alignment of policy provisions to their true intent (e.g. tax as an equalize rather than incentive)

• Ability to comply to applicable laws and regulations

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2

Benefits of implementing Key changes

Recommendations must support our overarching strategy of putting the right people in the right place...however, it is imperative that the implementation strategy

minimizes risk

• Inconsistency across regions creates inequity among assignees

• Continued above market provisions

• Lack of alignment to Oil & Gas peers practices

• Difficulty mobilizing employees across locations

• Expected savings not achieved:

• Approx. $4M per year, once all assignees transitioned

Implications of not implementing

Phase 2: Global Mobility Service Delivery Model

• The CoE focuses on governance and program improvement to improve policy and process controls; the centralized CoE also helps to achieve consistency

• Dedicated Regional Global Mobility Specialist roles partner with the Business to better plan and expedite deployments

• Mobility Services roles support a positive Employee Experience

• A global Relocation Services Provider will improve process controls as well as effectiveness and efficiency;

Global Mobility Center of Expertise

(CoE)

Regional Global Mobility Specialists

Global Mobility Services Reps

Global Mobility Service Delivery Model – Implemented in 2012

Relocation Services Vendors

Key Responsibilities:

Policy, Governance, Controls, Reporting

Assignment Planning, Advisory, Policy Administration

Policy Administration, Day-to-day support

Delivery of relocation services

1 2 3 4

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2

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HR BP

Business Leader

Talisman’s current 19 mobility policies and program highlights have been streamlined and realigned into a suite of 5 new Global Policies

Phase 2: Our new policy framework simplifies mobility options globally

• Expatriate Policy • Cross-border Assignment Policy (Pittsburgh / Horseheads only) • North American Expatriate Policy (all other locations ) • Expatriate Transfers to Australia

• Short Term International Assignment

• Commuting Assignment

• Rotational Terms & Conditions

19 Policies

Long Term (1-4 yrs)

Short Term (2 mos. – 1 yr)

Permanent Transfer

(One way move)

Commuter Ongoing

Rotator (Up to 3 yrs)

5 Global Policies

• New Hire Global Transfer Policy (Tier 2 - Below M2) • Employee Relocations • New Hire Global Transfer Policy (Tier 1 - M2 and above) • Local Plus Transfers to Australia • New Hire Global Transfer Policy - Australia (Tier 1 - M2 and above) • New Hire Global Transfer Policy - Australia (Tier 2 - Below M2)

• Domestic New Hire Transfer Policy (Tier 1) • Domestic New Hire Transfer Policy (Tier 2) • Relocation Program - New Grads • Group Move Transfer Policy • Domestic Transfer Policy - Australia • Temporary Student Transfer Policy

Phase 2: The new policies are aligned with consistent global principles

Guiding Principle

Alignment Long Term assignees will be financially aligned to home country, with a reasonable incentive for being on assignment

Clarity Provisions are clear, simple to explain and easy for assignees to utilize

Adaptability Provisions will be adaptable to local conditions and business needs

Market Competitive Terms & Conditions will be competitive with our peers in the market

Consistency Assignees will be treated consistently and equitably across all regions

These principles were developed to guide policy development and ensure that they meet the needs of our business

Phase 2: Our new framework provides transparency by aligning policy provisions with their true intent

Provision Category Description Decision

Owner Adaptability

Core Compensation & Benefits

Provisions including base remuneration and benefits

Total Rewards and Business

Established by Total Rewards and decided by the business

Equalizers Provisions designed to ensure employees are no better and no worse off than if they had not taken an assignment

Global Mobility CoE

Not Flexible • Components are set by Global Mobility COE

based on industry methodology and vary by location

Enablers Provisions to help the employee relocate and focus on their role

Business and Global Mobility Specialist

Flexible • ‘Dial Up’ / ‘Dial Down’ options available and

determined by the Business with the Global Mobility Regional Specialist and HRBP

Situational • Provided as needed for the assignee’s

specific circumstances

Incentives

Provisions to incent employees to take an international assignment

Global Mobility CoE

Not Flexible • Components are set by Global Mobility COE

based on industry methodology and vary by location

Situational • Provided as needed for the assignee’s

specific circumstances

Phase 2: Common Transition Approaches Em

ploy

ee S

atisf

actio

n Adm

inistration Costs

Grandfather Current assignees continue to receive reimbursements and allowances as per the legacy policy terms and conditions for the duration of their current assignment. Assignment extensions would follow the new terms and conditions

Pros • Employee friendly for those who will be

negatively impacted by new terms & conditions

• Assignee support (e.g. allowances & net compensation) remains the same until the current assignment concludes

Cons • Inconsistencies will be created between “old”

and “new” policy expatriates • High level of administration for ongoing

payroll/support services

Phase-Out Allows current international assignees to maintain current allowances and support for a defined period of time. Support then decreases over time with a full transition to the new policy after the “transition period” expires.


negatively impacted by new terms & conditions

• Any reduction in assignee support is reduced over time to avoid an immediate disruption to assignee experience and quality of living

Cons • Inconsistencies will be created between “old”

and “new” policy expatriates • High level of administration for a longer

period of time during the phase-out schedule or transition period

Buy Out Provides for a one-time lump sum payout to current assignees equal to the difference between the legacy and new terms and conditions for any provisions which negatively impact the assignment package


negatively impacted by new policy • Employee is kept neutral through receipt of a

lump sum payment to offset reduction in allowances for the remaining assignment term

• Not applicable to positively impacted expatriates

Cons • Moderate levels of administration during

short period of time • Increases Company costs in the year of

transition to the new terms and conditions • Increased administrative cost to explain and

illustrate that assignees’ will be equally compensated for reduced assignment support

Immediate Transition All existing assignees would transition to the new policy terms and conditions on a specific date with no reimbursement provided to assignees adversely affected by the new terms and conditions

Pros • Maintains consistency with new expatriates • Moderate level of administration during initial

transition period • More efficient implementation of technology

and vendor processes

Cons • May positively or negatively impact current

assignees • High risk of attrition of current assignees due

to reduction in net compensation • Strong probability that this approach may not

be legal in some jurisdictions

Phase 3: Implementation

Step 1: Implement Change and Communications Plan

Step 2: Finalize Policy and Supporting Documents

Step 3: Transition to Operations

Step 4: Implement Service Delivery Model




EVPs

Current Expats

Business Unit Leaders

Engage: July-Sept

Go Live Period: Sep-Mar

Persist: Post Go Live

Prepare: May- June

• One-to-ones prior to OpCom meeting

• Key messages and QA’s

• One-to-ones with focus on regional impacts and ways to address

• Participate in select country-level meetings

• One-to-ones with focus on regional roll out progress

• Executive-level handbook


• One-to-ones with focus on regional issues

• Communication or FAQ to address concerns

• One-to-ones with GM team to review impact statement

• Road shows with EVP participation

• Feedback touch point via Regional Specialists

• Communication or FAQ to address concerns

• One-to-ones to prepare for go live


• Preparedness communications/ calls for Go Live

• One-to-ones during Global Mobility roadshow visits

• Executive-level handbook


• One-to-ones with focus on country specific issues

• One-to-ones with focus on country specific impacts


All Talisman Employees

• General communication and information on changes

• Potential “lunch and learns” in uniquely affected regions

Phase 3: A Robust Change and Communication Plan was Key

Phase 3: Post Project Evaluation – Lessons Learned

• Once the project was complete we conducted a lessons learned review with representatives of key project stakeholders.

• Summary of findings from this exercise include:

– Dedicated project manager is required due to the scope and size of the effort

– Defining policy principles upfront helps guide the design and communication

– Define & communicate the key business drivers

– Communicate early & often - transparency in communication is key

– Have GM SMEs involved in the change management and communication

– Complete a current state assessment of policy and practice early to adequately prepare for implementation

– Identify system/tool impacts early to allow for adequate time for updating and operationalizing

– Leverage global resources

– Maintain alignment with the business (allow for flexibility)

Progress to Date

Global Mobility Mandate

Talisman recognizes that the effective use of international assignments serves to support both employee development and the organization’s ability to excel within the global marketplace.

The Global Mobility team is accountable for ensuring Global Mobility policies and programs are aligned with Talisman's needs and administered consistently throughout the organization, and provides full lifecycle support for Talisman employees on assignment, transferees or new hires

Global Mobility Policy

Governance and Compliance

Policy design based on industry benchmarking and regional input Policy advisor to Business Leaders, HRBPs and employees

Cost controls for relocation costs Tax compliance in both the Home and Host locations Visa & Immigration compliance Consistent policy application globally

Consistent & Equitable Employee Experience

Efficient & Effective Service

Delivery

Speed of deployment of mobile employees across regions Service delivery that meets regional needs Variable cost model (scalable) Consistent processes, tools and templates

Consistent service levels Consistent & equitable treatment of employees across regions Clear contacts & accountabilities

Data and Metrics Capture, monitor and report on data globally Global metrics and survey capabilities

Global Mobility Program Objectives Talisman’s Global Mobility function is responsible for:

Four policies have been fully implemented.

Policy progress to date

• New Hire Global Transfer Policy (Tier 2 - Below M2) • Employee Relocations • New Hire Global Transfer Policy (Tier 1 - M2 and above) • Local Plus Transfers to Australia • New Hire Global Transfer Policy - Australia (Tier 1 - M2 and above) • New Hire Global Transfer Policy - Australia (Tier 2 - Below M2)

• Domestic New Hire Transfer Policy (Tier 1) • Domestic New Hire Transfer Policy (Tier 2) • Relocation Program - New Grads • Group Move Transfer Policy • Domestic Transfer Policy - Australia • Temporary Student Transfer Policy

• Commuting Assignment

19 Policies

Long Term (1-4 yrs)


Permanent Transfer

(One way move)

Commuter Ongoing


5 Global Policies

April 2012

Implementation Date

September 2013

April 2014

April 2013

Future

• Expatriate Policy • Cross-border Assignment Policy (Pittsburgh / Horseheads only) • North American Expatriate Policy (all other locations ) • Expatriate Transfers to Australia

• Short Term International Assignment

• Rotational Terms & Conditions

New Ways of Working

• Global Processes – Assignment initiations – Assignment approvals – Assignment extensions – Exceptions management

• Team Communications – Sharepoint – Discussion board – Monthly calls – 1:1 calls amongst Specialists – GM Specialists attend HRBP & Business meetings

• Tools & Templates – Exception request template & exception log – Business case form – LTA cost projection tool (PWC) – Assignment Letter Templates – Flag sheets of allowances & site specifics (by country)

Resources available to support the new policy and programs

Global Mobility Services Representative

Global Mobility Specialist

Global Mobility Selection Guide

Employee Handbook Long Term Assignments

Assignment Letter

Relocation Services Vendor

Business Case Tool Assignment Cost Estimate

Estimate of Assignment Allowances

HR Guidebook Long Term Assignments

Global Mobility

Challenges

Transformation Challenges

• Change in business strategy with increased focus on regional autonomy

• Business’ appetite and understanding of mobility’s role (value add)

• Role clarity – GM vs. HR and Host vs. Home • Policy implementation – took a lot longer than anticipated • Systems and data • Exception management • JVCos (new operating model) • High amount of organizational change and impact on home

sponsorship • Country exits

Pre-Planning Pre-Assignment On-Assignment Re-Assignment

Overlap of responsibilities leads to confusion for both the assignee and Global Mobility

Manage escalated exception requests

Initiate relocation & vendor services

Coordinate with business on next role and succession plans

Prepare program metric and strategic reporting analysis

Contact employee and conduct pre-departure orientation Initiate end of assignment /

repatriation activities

Feed mobility data into talent review cycle

Develop assignment package and socialize with approving authority

Facilitate mobility planning discussions with business leader

Global Mobility Services

Vendor Network

HR Business Partner

Global Mobility Regional Specialist

Maintain employee data record management Complete internal

accounting and cost allocations

Administer expense reimbursements

Support visa application process

Conduct post-assignment tax briefing

Conduct pre-assignment tax briefing

Collection of assignment costs

Coordinate relocation services

Conduct assignee on-boarding

Complete assignment business case and advise Business Leader and HRBP of applicable assignment types

Confirm employee’s interest in relocation

Direct employee support

Indirect employee support

Discuss initial questions / concerns with employee

Finalize assignee package with employee

Manage redeployment / reassignment activities six months prior to end date

Transfer knowledge of assignee profiles to new host Global Mobility Regional Specialist for assignees that are redeploying

Key Assumptions -Employee support is provided by the Host Global Mobility Regional Specialist

Complete annual compliance returns

Generate assignment balance sheets

Keep Moving Forward

The not so distant future vision for Talisman GM:

Long Term (1-4 yrs)


Permanent Transfer

(One way move)

Commuter Ongoing


5 Global Policies Talent

• All assignees transferred to new policy terms and conditions (no more grandfathering)

• Regional talent management strategies for assignee population

• Management of assignment end dates through integration of career planning and assignment planning

• Increased focus on deploying assignees for talent development

Objectives

• Be adaptable to business needs and different talent markets

• Provide a positive employee experience regardless of the home and host countries involved

• Enable business managers and employees to focus their effort and attention on their core business rather than being distracted by logistics

• Be cost efficient and competitive with our oil and gas peers

Relocation Services Management – Global Approach (desired future state)

Aberdeen Bogota

Brisbane Calgary

Ho Chi Minh City Houston

Jakarta Kuala Lumpur

Peru PNG

Pittsburgh Stavanger

Aberdeen Algeria Brisbane Bogota Calgary Erbil Freetown (SL) Ghana Ho Chi Minh City Horseheads Houston Jakarta Kuala Lumpur Lima Luxembourg PNG Pittsburgh Singapore Stavanger Sydney Warsaw

Host Location Home Location

Two ways to manage: 1. Different vendors – regionally managed 2. One global vendor – regionally located

with global oversight

Americas

Asia Pacific

Changing the Way we Work • New HRMS system implementation helps to

bring us full circle • Still considering a full expat management

software to eliminate the manual tracking we still need to do

Questions?