HR BPO Journey

Charles-Henry Duroyon
Group 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

Faurecia at a Glance

Annual Revenue

Worldwide Presence

Employees

$15 billion

220 sites in 32 countries

70,000 employees including 791 HRs

Setting the Scene : HR in Faurecia

EVP Group Human Resources

Faurecia

University

ASBG HR CBG HR ESBG HR

Countries

France Germany North America Portugal

Management & Development Compensation Benefits Recruitment

PG HR

ISBG HR MSBG HR

Industrial Relations
Employee Empowerment HR Efficiency Information System HR Controlling

Slovakia
Spain South America United Kingdom

791 HR covering 67,000 employees 65% at site level (220 sites)

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

Building our case

Temps Renewals Compliance

2.5m/y

-20 +X % per ee per month direct

X : Retained Organization ADP Processing Costs

IT
Initial TCO Personal

CSPs/MS Costs

Final Case

Target
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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
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Global HRIS Architecture

SSC, Site HR, Local administrative
ADP SSC

Data entry Data entry

Personal Administration

Recruitment Talent management

Compensation

Self Service

Interface

Payroll

Learning Mgt Syst

Interface
MTS Self Service

Time Management

Global HR Process Layer

Financial Systems Group HR Reporting on 21 Key Indicators Other FRC Dowstream Systems

Interface
HR Business Intelligence DW

Functional Scope
Personal Administration Faurecia Core System
60 common employee data worldwide Common Processes for Hire, Transfer, Expatriates, Temps

Time Management Manager Self Service

Manager portal Personal Administration workflows

Payroll Common SAP Engine

Secured, Consistent, Compliant Robust controls & employee satisfaction

HR Secure all employee data in one place

M&P only

Interfaces
Reporting SAP FI, CO

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Milestones
GV Countries Deployed 7 Employees Serviced 45,000 Functionalities Deployed PA/Payroll Time Management Active SSC 3 Employees Serviced 26,000

GV Implementation 5 countries Employees 11,000

HR/Training ESS/MSS Org Management Extension on going

SSC in deployment 3 Employees 16,000

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Current Priorities
1. Secure Vendor Relationship 2. Global Interfaces Deployment 3. Extend GlobalView Scope 4. Address New countries

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

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

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

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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Lies, Lies and Damn Statistics

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

The Bad and the Ugly

France, French, les franais 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

High Cost Country model very competitive

Move from Financial to Partnership I survived..

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Client Services Escalation Model

Level 4 Global Sponsor
Jean-Pierre Sounillac Executive Sponsor Todd Sprague Executive 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

Level 3 Global Support

Charles-Henry Duroyon Global Engagement Manager

Nicolas Aimez Global Relationship Manager Global Field Services

Level 2 Regional & Global Support

Level 1 Regional & Local Monitoring

Americas

EMEA

APAC

Americas

EMEA

APAC

Corporate Service Coordinator

GV Service Delivery Manager

RRM support for Regional CS Director and SDM on service escalations Contract monitoring Service scope changes 2nd escalation step Service Scope change (Regional/Local level) Service/SLA monitoring 1st escalation step Daily Operations Case resolution according to SLA in single CRM tool through Tier 1

Regional SC

Regional SC

Regional SC

Regional SDM

Regional SDM

Regional SDM

Operations

Country HR operational

Country Service Centre Tier 1 &2 GlobalView StreamLine Team or Partners/ Country lead Central Team

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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?

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