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Project Vie - Unilever. Where we were, ……. Where we were, …… and where we’re going. Introduction. Health Warning. There is no ‘off-the-shelf’ solution available (‘Leap of Faith’) There is NO single provider that can currently do everything, everywhere.
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Introduction Health Warning • There is no ‘off-the-shelf’ solution available (‘Leap of Faith’) • There is NO single provider that can currently do everything, everywhere. • The Scope of Work ‘challenge’ was indeed challenging! • All businesses using outsourcing have complaints as well as compliments • TSA ‘greenfield’ vs. P&G ‘brownfield’ • Everyone points to the client as one of the major obstacles to successful outsourcing
What are you buying? What did we ask for in the RFP? A service provider delivering all of: • Service foundation – getting the basics right • Consistent services delivered globally • Transformational approach (Industry term, versus ‘transactional’) • Extended services – building on the foundation • Existing service provider established infrastructure will have gaps • Work in partnership to achieve full scope • PeopleSoft implementation and ongoing support – completing the implementation • HR organization transformation – in parallel with outsourcing services • Optional BPO partnership support for the transformation
Price has a ‘wild card’ effect – if the desired price is not achieved then the bid is unsuccessful Decision Process
HR-T Business Case – Savings Calculation (a) Cost of HR - Unilever Baseline (Assumed and Retained) plus Unilever Avoided Costs (b) Cost of HR in an outsource scenario - sum of: • Cost of Service Provider Solution • SP Mobilisation, Transition and Transformation Charges • SP Annual Service Charge • Retained HR Shared Services • Unilever Service Provider and Project Management costs • Redundancy costs • Retained Organisation Expense • FTE cost less Retained Org FTE savings • 3rd Party Spend less Buying Savings • Additional Unilever costs due to Outsourcing e.g. toll free telephony, systems decommissioning costs Cash Flow (b) – (a) equals savings
Transition The period of time that starts with the transfer of responsibility to the service provider Transformation The project work that results in work moving into the strategic delivery model Transition and Transformation • Financial Impacts • Cost of Transition • Project resources & backfill • Double running costs • Timing of payments • Impact of Delays
Solution Overview Core Service Delivery Model Retained Partially outsourced Outsourced
Solution - Financial Considerations • Fixed Price vs Variable • Invoicing – central vs distributed • Invoice timing • Delays to Country Go Live • Partial Go Live Situations • Change Requests - Local Work instructions • True Up / Down • Disappearing baseline • Savings Ownership
Technology Solution Why is information technology important? • Source of all HR information • Automates HR processes • Drives efficiency • Enables Manager and Employee Self Service • Single global system for HR (Peoplesoft) • Savings tracking
Summary It is going to get tough, so we will need to be equally tough in response HR Rabbit
Summary It is going to get tough, so we will need to be equally tough in response HR Rabbit HR Rabbit
Final Thoughts “Everything will be better tomorrow” • "History is the version of past events that people have decided to agree upon." : Bonaparte (1769 - 1821) • "History will be kind to me, for I intend to write it." : Churchill (1874 - 1965)
