Summary of Business Case Savings - PowerPoint PPT Presentation

palmer-maxwell
summary of business case savings n.
Skip this Video
Loading SlideShow in 5 Seconds..
Summary of Business Case Savings PowerPoint Presentation
Download Presentation
Summary of Business Case Savings

play fullscreen
1 / 35
Download Presentation
Summary of Business Case Savings
109 Views
Download Presentation

Summary of Business Case Savings

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. 1 2 3 4 7 6 5 8 9 10 11 Number 2 and 6 seems to be the same thing, cannot these be merged into one? Summary of Business Case Savings Cost Reduction Length of Implementation High Confidence Target Stretch Target Shared Services • Create global templates $0.0M $0.0M Quick Win Quick Win to Medium $0.0M $0.0M • Global Alignment of HR Data Management Quick Win to Medium • Intranet Standardization $0.0M $0.0M Quick Win to Medium • Marketing Company systems consolidation $0.8M $0.0M Number 9 is not long – it should be quick win – medium (this since a lot can be done through communication etc). Think that 8 also can be changed to quick - medium • Global Information & metrics $1.5M $2.0M Quick Win to Long $1.16M $1.74M • Global Alignment of HR Shared Services Quick Win to Long $0.0M $0.0M Medium to Long • Creation of European Shared Services $0.0M $0.0M Medium to Long • Review existing infrastructure $0.0M $0.0M Long • Simplify Self-Service Long $0.0M $0.0M • Roll-out ARP globally $0.0M $0.0M Length of Implementation Quick Win = 6mths to 12mths Medium = 12mths to 24mths Long = > 24 mths $00.0M $00.0M Total:

  2. 12 13 14 15 18 17 16 19 20 21 22 Amy Bataille: The review of resource level in local markets should be made in light of business plans and priorities . The resource level is also linked to the creation of skills center and the technology used  All of this must be done before resource level are reviewed – LONG not QUICK WIN Summary of Business Case Savings Cost Reduction Length of Implementation High Confidence Target Stretch Target Recruitment $0.07M $0.1M Recruitment Interview Skills Quick Win Recruitment Marketing Consolidation Quick Win $0.0M $0.0M Harmonize induction program $0.0M $0.0M Quick Win Recruitment a- Act as a global function Quick Win to Medium $0.0M $0.0M Taleo Implementation $0.58M $1.16M Medium Recruitment Supplier Rationalization $0.0M $0.0M Medium Business Partner $0.0M $0.0M Long $0.0M $0.0M Review resource level in local markets Medium to Long HR Business Partner Upskilling and Alignment $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M Length of Implementation Quick Win = 6mths to 12mths Medium = 12mths to 24mths Long = > 24 mths $00.0M $00.0M Total:

  3. 23 24 25 26 29 28 27 30 31 32 33 Summary of Business Case Savings Length of Implementation Cost Reduction* High Confidence Target Stretch Target Transition L&OE resources to a regional structure L&OE $0.0M $0.0M Quick Win HR L&OE Stop Facilitation $0.32M $0.64M Quick Win L&OE Vendor Rationalization and reduce spend $0.0M $0.0M Quick Win to Medium Medium to Long Move from classroom training to e-learning $0.0M $0.0M Long $0.0M $0.0M Centralize training $0.0M $0.0M Other $1.74M $3.59M Strengthen the regional HR Structure in ISMO Quick Win $0.39M $0.78M Reduce travel costs Quick Win $0.0M $0.0M Increase span of control and decrease layers Quick Win to Medium $0.0M $0.0M Integrate processes and reduce bureaucratic waste Quick Win to Long $0.0M $0.0M Length of Implementation Quick Win = 6mths to 12mths Medium = 12mths to 24mths Long = > 24 mths $00.0M $00.0M Total:

  4. Shared Services

  5. Key Findings: Key Assumptions: 3 Potential Actions: Opportunities: Assume no technology investment? Opportunity- Create global templates Benefit Area: Shared Services Learning and Development Recruitment Business Partner Upskilling Other • Currently each country has their own templates for many of the HR processes • A global manager has to complete different formats for completing one process • HR spends time locally to develop and maintain templates • Define and allow minimum level for local customization within global templates • Global place to store and update documents are in place • Roles and responsibilities for maintenance of templates are clear • Global templates would support global processes and functions • High quality delivery from HR where we can spend more time in developing 1 good template instead of 10 different local ones • Supports shared terminology (vacancy should mean the same thing everywhere for example) • Decide where there is an opportunity for global templates • Review existing templates Benefits Range High Confidence Target $???M to Stretch Target $???M

  6. Key Assumptions: Key Findings: 5 Potential Actions: Opportunities: • Technology investment req: • Move SC to low cost location. Opportunity- Global Alignment of HR Data Management Benefit Area: Shared Services Learning and Development Recruitment Business Partner Upskilling Other • PeopleSoft is live in 11 countries with the opportunity to provide consistent people data • The cost to perform people data management varies per country • Local differences create confusion for managers • Lack of global framework and guidelines in some areas • Ability to identify a low cost country to move data management • Development of smart templates that work across multiple languages • Efficiency – all customers can go to a single source of data for manpower figures • With one team managing all data management – greater adherence to process and accuracy • Reduced costs by moving data management to a low cost country • Ensure one usage and definition of codes • Develop framework for all global data (example headcount, position management) • Increase global usage of data (example contract module, job codes) • Consolidation of all data management functions to a low cost country • Development of smart templates that work across multiple languages A lot can be done within existing organization, we do not need to take the step to move all functions to one country to achieve a win, and is consolidation to one country something that should be covered within the improve ourselves scenarios? Benefits Range High Confidence Target • Reduction of data management costs – $$$ = $$$ • Cost to move data management to a low cost country - $$$ $???M to Stretch Target • Reduction of Global hr.1 global positions – 15 positions x $$$ = $$$ $???M

  7. Key Findings: Key Assumptions: 1 Potential Actions: Opportunities: Sophie Mannia: There are similar opportunities with AZ internet HR related pages too Assume no technology investment? (standardising info and website) Opportunity- Intranet standardisation Benefit Area: Shared Services Learning and Development Recruitment Business Partner Upskilling Other • Global HR online is hard to navigate to and only available in English • Each country have separate HR pages • ISMO have a portal plus country websites • All websites look and feel different, different HR offerings are being published • Navigation for global managers is tough • Your;.AZ portal is coming, potentially there could be huge benefits if designed correctly • Web based self service is not intuitive, it’s HR language and there’s no global consistency in terminology • One person needs to be accountable for HR intranet sites and global governance is in place • HR develop standard terminology that is in business language • Intranet sites are available in languages required • Define and allow minimum level of local customization within portal/ pages / websites • There is a global intranet framework that is mandatory • Reduce number of local HR doing “web development”, stop “double, triple doing” • HR increased perceived professionalism and appears as one organisation • Improve offering to employees/Line Managers • Navigation simple • Answers are there • Information is up to date • Less calls through to helpdesk due to self service efficiencies • Reduced cost on outsourcing web development • Appoint accountable web owner • Develop terminology with GPOs, test with business • Develop content in line with Your.AZ launch • Monitor and improve continuously • Work closely with Employee Brand Management (or is this a part of it?) Benefits Range High Confidence Target $???M to Stretch Target $???M

  8. Key Findings: Key Assumptions: 7 Potential Actions: Opportunities: Significant Technology investment and implication. Canada project is already ongoing. (costs can potentially be estimated from the to-be xls) Opportunity- Market Company Systems Consolidation Benefit Area: Shared Services Learning and Development Role Clarity and Process Improvement Recruitment Business Partner Upskilling Other • UK Marketing and UK Delivery Services each have their own Shared Services. People Soft in UK Marketing has its own front end. There is double data entry. • Canada and the US have separate Shared Services and separate People Soft systems • Denmark, Norway, and Finland could be placed on the Swedish People Soft platform with minor impact to the business • Funds would need to be available to add Denmark, Norway and Finland to People Soft • The already identified countries for hr1 implementation will be linked into the HR FF roadmap going forward. • One major condition for this consolidation is that the actual countries can link into the system with no or minor adjustments. • Reduce costs and increase the level of service by consolidating the marketing companies systems into the 3 major countries (UK,Swe,US) currently on Shared Services. • Efficient use of resources already in UK,Swe and US Shared Services • Roll Canada into the US and decommission Canada People Soft • Add UK Marketing to the UK Delivery Services Platform • Add Denmark, Norway and Finland employees to Swedish People Soft and shared service Benefits Range High Confidence Target • Reduce UK Marketing Headcount in Shared Services by 4 = 4 X116,000 = $464,000 • Reduce Canada Headcount in Shared Services by ? = • Decommission Canada People Soft = xxx • Reduce HR transactional support in Denmark, Norway and Finland by 3 FTEs = 3X116,000= $348,000 $0.8M to $???M Stretch Target

  9. Key Findings: Key Assumptions: 1 Potential Actions: Opportunities: Significant Technology investment and implications (potentially) Sofistication of the ”DW” solution is a swing item. HR cost Opportunity- Global information & metrics Non HR cost Benefit Area: Shared Services Learning and Development Recruitment Business Partner Upskilling Other • AstraZeneca has not harnessed the reporting intelligence from the Peoplesoft core foundation • There is no ability to consistently pull the ‘key data’ points globally and what is consistently important to making a difference in operation/decision quality • HR does not consistently use data to drive consistent continuous improvements • HR is not transparent to our customers on the Cost of Non-compliance • Business Partners adopt, and are consistently compliant, the standard tool report set to help them in their SLT discussions • A thin layer of data warehouse can be created to pool global data together within a reasonable cost Business Analytics & SD&T work together to make this happen with BPs and Senior Leaders • Joint HR/Finance headcount policy integrating people strategy& budget guidance processes to avoid the wrong behaviour on sourcing resource • Focus reporting on what will help Leaders to lead better, creating a standard report, becoming a common language and basis for having a people agenda discussion at SLTs, lead by the Business Partner • Consistent metrics will drive HR effectiveness by monitor approp. frequency to ensure productivity and SLAs are achieved and improved • Data becomes more accurate as Leaders value the information and keep it up to date through MSS • Business Partner will need upskilling on how to use the information to see the value of it helping the People agenda • Implement a thin layer data warehouse reporting solution cheaply, leveraging the US Business Objects solution and GFR EPV reporting solution Benefits Range High Confidence Target • Reduction in HR SD headcount – 5 headcount (guess) = $580,000 • Cost of Thin Layer Data warehouse solution = $1m (need Tech view) • Consolidate and reduce all HR reporting roles – 5 headcount (guess) $1.5M to Stretch Target • Lower headcount costs as tighter governance facilitates better decisions (reduced Temp, Consultant spend/use) • Consolidate and reduce embedded Business HR and Finance headcount reporting roles 10% impact $1m NonHR

  10. Key Assumptions: Key Findings: 3 Potential Actions: Opportunities: Assumes no technology investment? Is this not an overlap with the other HR data option? What do the mean with consolidation of hr.1 organization – and what is the headcount reduction based on. I cannot see that the above opportunities will give these savings – needs to be developed further Opportunity- Global Alignment of HR Shared Services Benefit Area: Shared Services Learning and Development Recruitment Business Partner Upskilling Other • Post hr.1 the global BAU organization was implemented with XXX roles • New global processes are not fully implemented and compliant • Not all roles between global and country responsibilities are clear • The minimal global structure is required to support the work in the countries • Countries must be held accountable for compliance to global processes • Aligned global organization that sets strategy and provides global direction • Global process fully implemented post hr.1 implementation resulting in increased efficiency • Consolidation of hr.1 global organization • Full implementation of global processes Benefits Range High Confidence Target • Reduction of Global hr. 1 global positions – 10 positions x 116,000 = $1,160,000 $1.16M to Stretch Target • Reduction of Global hr.1 global positions – 15 positions x 116,000 = $1,740,000 $1.74M

  11. Key Assumptions: Key Findings: 4 Potential Actions: Opportunities: Significant Technology investment and implication. (costs can potentially be estimated from the to-be xls) Opportunity- Creation of a European Shared Services (need two examples – offshore and current consolidation) Benefit Area: Shared Services Learning and Development Recruitment Business Partner Upskilling Other • Currently Shared Services is provided in the 3 major countries but still many managers use the HR Partner as the first level of contact for HR information • Need to move HR Partners to higher level strategic work • Only Sweden and UK currently have a shared services center with HR Partners in other European countries doing Tier 0 and Tier 1 work • Only Sweden and UK have employee and manager self service • Dollars are available to implement PeopleSoft in major European countries • A low cost country with appropriate language skills can be identified • Implement PeopleSoft across all major countries in Europe to create a European Shared Services Center • Move Tier 0 and Tier 1 work to a shared services center from the HR Partner • Ability to operate globally standardized processes and utilize PeopleSoft and other globally consistent technology platforms • UK MC – 12 months • Work with an external consultant to identify an appropriate location • Create implementation plan for 18 month implementation • Create PeopleSoft implementation project plan Benefits Range High Confidence Target • Get numbers from Equaterra $???M to Stretch Target • Get numbers from Equaterra $???M

  12. Key Assumptions: Key Findings: 4 Potential Actions: Opportunities: • Significant Technology investment and implications. • (costs can potentially be estimated from the to-be xls) • Some things you would only do if you decided to stick with current platform. (platform to be retained to yield the value of the investments). Opportunity- Review existing infrastructure (integrate existing technology and decommission where possible) Benefit Area: Shared Services Learning and Development Recruitment Business Partner Upskilling Other • Currently there is lack of automated data flow between existing systems • The managers and HR are asked to do updates in several systems • In some processes there is also requirement to complete more than 1 form to ensure correct system update • Several systems beside hr.desktop and recruitment systems are currently used (example Resource) • Dollars exist to make necessary customisations in new hr.desktop modules (only when have-to-have requirements) • Dollars exist to develop interfaces to downstream systems • Develop global automated data flow from e-2-e perspective, example: • Automatic end of security and IT account on termination • Automatic update of security for new hires • Interface between travel management and payroll • Headcount reporting (hr.desktop to Affirm) • Treat hr.desktop as master system and fully utilise existing functionality before acquiring new systems, example: • Market data • Performance Management • Review existing data flow and decide where we have potential gains in developing interfaces • Review existing interfaces and upgrade where necessary (i.e. ensure that existing interfaces does not require any manual intervention) • Review new technology requirements from hr.desktop availability first Benefits Range High Confidence Target • Get numbers from Equaterra $???M to Stretch Target • Get numbers from Equaterra $???M

  13. Potentially Significant Technology investment and implications. • (costs can potentially be estimated from the to-be xls) • Some things you would only do if you decided to stick with current platform. (platform to be retained to yield the value of the investments). • Suggest to start with the non-tech improvements? Key Assumptions: Key Findings: 2 Potential Actions: Opportunities: Opportunity- Simplify Self-Service Benefit Area: Shared Services Learning and Development Recruitment Business Partner Upskilling Other • Manager self-service today is considered to be (in some areas): • Complex • Inefficient • Non-global • In some cases manual intervention is required even if process starts in MSS • ESS works well • Dollars exists to upgrade self-service (significant investment) • Data Management has standardised their data structure to enable one global portal and MSS • Light version of portal exists to enable implementation in small countries (i.e. net and gross version) • Global templates are in place • Leverage training and documentation to improve to current usage • Initiate the processes that require employee approval from ESS (example resignation) • Standardise data management to enable a global portal • Define a global framework how to manage transactions (example when to do an assignment) • Remove, where possible, data validation form HR • Align approval levels globally • Enable automatic data flow from MSS to hr.desktop • Collect managers existing view of MSS • Measure which transactions that are most time consuming in MSS for managers and HR • Measure where most errors are in MSS • Review which areas that hr support gets most questions about • Use the above and cost as prioritisation for what to improve MSS • Review where local differences stops usage of global SS and remove them where possible • Where no opportunity for technological investment: • Training (both HR and managers) • Quick reference guides • Global guidelines and framework for transactions High Confidence Target $???M Stretch Target $???M

  14. Potentially significant Technology investment and implications. • (costs can potentially be estimated from the to-be xls) • Some things you would only do if you decided to stick with current platform. (platform to be retained to yield the value of the investments) Key Assumptions: Key Findings: 7 Potential Actions: Opportunities: Opportunity- Roll-out ARP Globally Benefit Area: Shared Services Learning and Development Role Clarity and Process Improvement Recruitment Business Partner Upskilling Other • An integrated annual pay process exists (=ARP) but is used today only in the a few countries (mostly the hubs) . ARP needs to be rolled out globally • Dollars exists to roll out ARP in major countries • Local customization of ARP is possible • Improved clarity and transparency around total remuneration components • Improved governance through consistent technology, tools, timelines, templates • Improved experience for Line managers • Reduction in HR cost by enabling time consuming calculations to be made through ARP rather than XLS • Identify if ARP is cost efficient for all countries • Investigate possibility of upload to ARP of core HR data (to use ARP in countries where HR1 is not yet implemented) • Create an implementation plan • Develop a global training module for all Managers on Remunertaion • Upgrade HR partner skills Benefits Range High Confidence Target • ??? $???M to Stretch Target $???M

  15. Recruitment

  16. Key Assumptions: Key Findings: 7 Potential Actions: Opportunities: Assumes no technology investment? Opportunity- Recruitment Interview Skills Benefit Area: Shared Services Learning and Development Recruitment Business Partner Upskilling Other • Currently in the UK, Sweden and ISMO a Recruitment Partner interviews all external candidates and most internal candidates. • The value of the Recruitment Partner is very high when ensuring the development of a high quality slate of candidates and when challenging the Hiring Manager on the final hiring decision based on fit and long term potential • Managers will be skilled in interviewing • New Managers will have support from Recruitment Partners until their skill set reaches the minimum accepted level • With a skilled manager, the Recruitment Partner could provide greater value in the sourcing phase of the process and the decision making meeting. • Eliminate Recruitment Partners in level D (Band 5) and below interviews and focus on the decision making meeting, • Develop a global on-line training module for all managers on interview skills • Increase the facilitation skills of Recruitment Partners in the Decision Making Meeting • Communicate the new responsibilities to the Manager community Benefits Range High Confidence Target • For Band C Interviews and below = Time Savings for UK = 110 of interviews (50% of external hires) x 425 (100% of internal hires) $70 per hour = $37,550 • For entry level manager and below Interviews =Time Savings for SE = 150 external interviews (50% of external hires) +350 (50% of internal hires) x $70 per hour = $35000 • * At this time data is not available for ISMO $0.07M to $0.10M Stretch Target • For Band D Interviews and below = Time Savings for UK = 150 of interviews (50% of external hires) x +540 (100% of ixternal hires) $70 per hour = $48,300 • For all Manager roles and below =Time Savings for SE = 250 of external hires +700 (50% of external hires) x $70 per hour = $66,500 • * At this time data is not available for ISMO

  17. Key Assumptions: Key Findings: 2 Potential Actions: Opportunities: Technology implications. Taleo? Opportunity- Recruitment Marketing Consolidation Benefit Area: Shared Services Learning and Development Recruitment Business Partner Upskilling Other • Currently there is one “I want” campaign that is being effectively integrated across the 3 major countries • Each country uses a separate vendor to implement the marketing program • AZ uses multiple job boards to post position and may be able to leverage the overall spend. • Currently the UK and US have separate websites for their Employee Referral Programs (does Sweden have a employee referral website) • Implementation of Taleo System with one Employee Referral website • Ability to identify a recruitment marketing vendor who is truly global • Reduce Recruitment Marketing spend through selection of one global vendor • Reduce cost to maintain separate employee referral websites • Reduce cost of job boards by leveraging spend with one vendor • Consolidation of the Recruitment Marketing Program globally • Incorporate employee referral website with Taleo implementation • Renegotiate job boards costs with a consolidated vendor Benefits Range High Confidence Target • Reduction of Recruitment Marketing Program Spend = $$$ • Consolidation of Employee Referral Websites = $$$ • Reduction of 1 Recruitment Marketing Manager = $116,000 $???M to Stretch Target • Reduction of Recruitment Marketing Program Spend = $$$ • Reduction of 2 Recruitment Marketing Manager = 232,000 $???M

  18. Key Findings: Key Assumptions: 1 Opportunities: Potential Actions: Assumes no technology investment? Opportunity- Harmonise Induction Programme Benefit Area: Shared Services Learning and Development Recruitment Business Partner Upskilling Other • Today there are many different programmes, all with different content and emphasis, most are site based, practice in all countries is inconsistent • Few include Leadership Capabilities/Line Manager training • Induction programmes are not mandatory in all countries • Attendance is patchy and not recorded • Little induction occurs before day 1 • One person to be accountable, global governance in place • Global content consistency • Relevant & up to date information • Evaluate sessions, monitor attendance and improve • Work closely with Employee Brand Mgt • Significantly improve understanding of AZ approaches to Performance Management/Leadership capabilities and what the expectations are of employees and Line Managers • An early investment in people will have a positive impact on retention as it displays how serious AZ is about their people • To instill AZ culture consistently at the beginning of employment • Gain efficiencies by investigating and acting upon further “group” sessions and alternative suitable methods of deploying programmes • Push certain activities to pre day 1 (pre-boarding) eg policy reviews • Appoint accountable owner • Develop minimum standard programme contents • Monitor and improve continuously • Work closely with Employee Brand Management (or is this a part of it?) • Decide on opportunities to push to pre-boarding Benefits Range • ???? High Confidence Target $???M to Stretch Target • ???? $???M

  19. Key Assumptions: Key Findings/Opportunities: 1 Potential Actions: Opportunities: • Signifcant technology investments/implications. • Implement a global recruitment platform? • Can we define the savings a bit more detailed? Opportunity- Recruitment – Act as a global function Benefit Area: Shared Services Learning and Development Recruitment Business Partner Upskilling Other • Limited global ownership for recruitment activities and policies, however there is some alignment in the HUBS and shared learnings • Metrics are defined differently and policies are not consistent • HR/Manager capability is variable • Some technology is deployed but maximum benefit of spend is not realised • Processes are inconsistent with limited sharing of candidates globally • No global join up in approach to headhunter usage/agencies etc (deals) • Approach to outsourcing is inconsistent, the are opportunities to learn her • One global process owner with an aligned global structure • Globally aligned processes with clear measurements • Resourcing of global candidate slates • Reduced vendor costs with global deals • Alignment with Talent Management and Strategic Workforce Planning • Leveraged technology with maximum outcomes • Develop global policies/terminology/SLAs/metrics including slotting guidelines and accountabilities • Develop HR/Line capability • Look to negotiate global deals with vendors and govern the use of headhunters/agencies closely • Look for spot outsource opportunities • Work globally, share candidates, pool resource and learn from each other High Confidence Target 10% of global recruitment spend = $???M Stretch Target 20% of global recruitment spend = $???M

  20. Key Assumptions: Key Findings: 1 Potential Actions: Opportunities: • Signifcant technology investments/implications. Opportunity- Taleo Implementation Benefit Area: Shared Services Learning and Development Recruitment Business Partner Upskilling Other • Currently unable to post roles across the 3 major countries • Recruitment processes are different across the 3 major countries which leads to inefficiencies and errors (especially in support of global countries) • Lack of system integration between the recruitment applicant tracking system and PeopleSoft resulting rekeying of work • Lack of consistent metrics across the 3 major countries and ISMO providing indications where improvement can be made • Implementation of Taleo System across US, UK and Sweden that is fully integrated to PeopleSoft • Reduce time and increased efficiency of global postings and hiring. • Increased positive candidates experience by being able to see and apply for roles globally • Reduction of data management support to rekey information through an integrated system • Ability to generate consistent metrics that drive continuous performance • Implement Taleo System • Develop detailed globally consistent staffing process • Creation of automated consistent metrics Benefits Range High Confidence Target • Reduction of HR data management support = 5 positions x $116,000 = $580,000 • Cost of Taleo Implementation = $$$$ $0.58M to Stretch Target • Reduction of HR data management support – 10 positions x $116,000 = $1.160,000 $1.16M

  21. Key Assumptions: Key Findings: 7 Potential Actions: Opportunities: • Assume no technology investment. Opportunity- Recruitment Supplier Rationalization Benefit Area: Shared Services Learning and Development Recruitment Business Partner Upskilling Other • Currently the 3 major countries use various vendors for background screening, elements of assessment, search, recruitment marketing, relocation, etc. • Limited time has been focused on overall global recruitment spend • There are global vendors available to meet the AZ demands • Partnering with Purchasing is essential for success • Negotiate deals with suppliers on an AZ basis as opposed to country basis therefore making the most of AZ’s significant buying power • Identify all Recruitment vendor spend. • Select the highest spend areas and partner with Purchasing to consolidate vendors and/or renegotiate contracts. Benefits Range High Confidence Target • Reduction of 10% of vendor spend = $$$ x 10% = $$$ $???M to Stretch Target • Reduction of 15% of vendor spend = $$$ x 10% = $$$ $???M

  22. Business Partner Upskilling

  23. Key Assumptions: Key Findings: 6 Potential Actions: Opportunities: • Assume no technology investment. Opportunity- Review resource level in local markets Benefit Area: Shared Services Learning and Development Recruitment Business Partner Upskilling Other • By reviewing the local resources we have today could we make some short term savings • By approaching this in another way could we challenge the HR headcount budget. • The majority of headcount reductions will be coming from the way we built up the future shared services. HR reductions cannot be done until we can invest again and until local business priorities have been clarified (we need to make sure the headcount in HR organisation locally is able to deliver the support needed to reach business goals) • Define and discuss with local markets(MCPs/ local Directors) the local business priorities and then define the support needed from HR (HR key activities and HR headcounts needs) • Critical to start defining local business priorities when reviewing resource level in local markets • Opportunity to discuss, define and agree the roles and accountabilities for line managers and hr resources. • Visualise the role for HR and thereby get a platform to increase our credibility. • Map the resources we have today including Job Descriptions • Define the roles needed based on the business need in each local markets. Benefits Range High Confidence Target • Reduction number of HR Partners - # positions X $$$$ = $$ $???M to Stretch Target • Reduction number of HR Partners - # positions X $$$$ = $$ $???M

  24. Key Assumptions: Key Findings: 6 Potential Actions: Opportunities: • Assume no technology investment. Opportunity- HR Partner Upskilling and Alignment Benefit Area: Shared Services Learning and Development Recruitment Business Partner Upskilling Other • The HR partner needs to add value and support the business to deliver its objectives – Shouldn’t HR partners be more business oriented than today ? Shouldn’t we recruit /appoint HR partners with a business background and not necessarily an HR background – HR expertise should be delivered b skills centers • ??? • ??? • List /define future roles and activities of HR Partner and assess gaps of individuals versus requested capabilities Benefits Range High Confidence Target • Reduction number of HR Partners - # positions X $$$$ = $$ $???M to Stretch Target • Reduction number of HR Partners - # positions X $$$$ = $$ $???M

  25. L&OE

  26. Key Assumptions: Key Findings: 6 Potential Actions: Opportunities: • Assume no technology investment? Opportunity- Transition L&OE resources to a regional structure Benefit Area: Shared Services Learning and Development Recruitment Business Partner Upskilling Other • The menu of L&D services look different in different parts of the organisation and it’s not clear what the customer in terms of HR BP’s or the Line Manager can expect in terms of services or service levels • Today's Training delivery is patchy and we are not using resources in an efficient way. By creating a global/regional structure we are going to create a foundation to implement change in this area and cost savings identified in this document could be realised quicker. • By using the resources in a more efficient way and leverage the resources we have reduce the number of people with 40%, from 19 to 11. • Resources could remain deployed locally, but would be leveraged and managed as needed for broader reach as demands shift • Sales force training is out of scope • Map today's resources including their Job Descriptions, skills, experience, and tools/approaches • Clarify Service Levels and develop a common agreement structure to facilitate align service levels and increased customer satisfaction • Standardize tools & processes – reskill as needed • ISMO together with GPO define the basic regional program and accountability • To increase efficiency and thereby creating opportunities to reduce Head Count or adding more responsibilities • To get an improved leverage of resources by using them for a bigger group of people/countries • Increase reach / impact by making regional resources available to ISMO Benefits Range High Confidence Target • Reduction number of HR Partners - # positions X $$$$ = $$ (Potential reduction identified Further investigation needed to quantify savings ) $???M to Stretch Target • Reduction number of HR Partners - # positions X $$$$ = $$ (Potential reduction identified Further investigation needed to quantify savings) $???M

  27. Key Assumptions: Key Findings: 7 Potential Actions: Opportunities: • Assume no technology investment. Opportunity- HR L&OE Stop Facilitation Benefit Area: Shared Services Learning and Development Recruitment Business Partner Upskilling Other • Often, L&OE resources are asked to support meetings in the capacity of process facilitator • L&OE resources will contract with key clients and HR Partners that they do not offer process facilitation as part of the L&OE service offering • Facilitation skills need to be a capability of Line Managers and HR Partners otherwise you risk the business going outside for facilitation support and realizing the cost savings to the business • L&OE resources will only be involved in facilitation as part of a learning intervention (e.g. team effectiveness) • Contract with the business • Provide facilitation training Benefits Range High Confidence Target • HR Benefit – Headcount reduction of 2 to 5 % = 2 to 4 Headcount – 2x $116,000 = $536,000 Since L&DE resources is asked for in many other areas there is a risk that saving potential is not realized $0.32M to Stretch Target • HR Benefit – Headcount reduction of 2 to 5 % = 2 to 4 Headcount – 4 x $116,000 = $536,000 $0.64M

  28. Key Assumptions: Key Findings: 7 Potential Actions: Opportunities: • Assume no technology investment. Opportunity- L&OE Vendor Rationalization and Reduce Spend Benefit Area: Shared Services Learning and Development Recruitment Business Partner Upskilling Other • Currently the 3 major countries and ISMO use a variety of vendors for Leadership and Organization Effectiveness • There are some instances of the business moving outside of HR and engaging their own leadership and OE consultants and programs • AstraZeneca could achieve significant cost savings by approaching vendors in a more professional way and to leverage from making global or regional agreements with a limited number of vendors. • Business functions will comply with the preferred vendor list • Identify all L&OE vendor spend within HR globally. • Select the highest spend areas and partner with Purchasing and key stakeholders to consolidate vendors and/or renegotiate contracts. • Develop & implement a vendor performance mgt system • GPO design & implement L&OE governance model (demand mgt, resource allocation, budgeting & control, innovation) • Negotiate deals with suppliers on an AZ basis as opposed to country basis therefore making the most of AZ’s significant buying power • Reducing number of vendors thereby leverage size and reduce cost • Implement performance metrics and performance tracking Benefits Range High Confidence Target • Reduction of 10% of vendor spend = $$$ x 10% = $$$ $???M to Stretch Target • Reduction of 15% of vendor spend = $$$ x 15% = $$$ • Including spend outside HR $???M

  29. Key Assumptions: Key Findings: 7 Potential Actions: Opportunities: • Technology investments? • Technology standard for e-learning? Opportunity- Move from classroom training to e-learning Benefit Area: Shared Services Learning and Development Recruitment Business Partner Upskilling Other • Classroom training is an ineffective and expensive type of training by introducing blended learning and e-learning significant cost saving could be achieved • This refers to classroom training – experiential learning / OJT cannot be moved to a e-Learning format. • Cost savings will vary by region. • Move training currently in the business to HR to be integrated and managed • Identify capability to support additional use of e-learning • Identify candidates to move from class room training to e-learning • Deliver e-learning for a limited number of training interventions • Evaluate and review Benefits Range High Confidence Target • 40% cost reduction per training intervention x 10% of classroom training moving to e-Learning $???M to Stretch Target • 80% cost reduction per training intervention (based on experience from 7 training interventions in Se 2004) x 20% of classroom training moving to e-learning $???M

  30. Key Assumptions: Key Findings: 7 Concerns: Opportunities: • Assume no technology investment. Opportunity- Centralize training Benefit Area: Shared Services Learning and Development Recruitment Business Partner Upskilling Other • L&D spend is spread in a number of different budgets between functions • We are therefore not leverage size in an efficient way • By centralising Training we could achieve significant saving through two different paths • Leverage organisational efficiency by centralising tasks that are now spread to many roles and not carried through in an efficient way • Leverage size in procurement in global or regional agreements with vendors • Move training currently in the business to HR to be integrated and managed • Leverage investments in a global LMS system and achieve advantages by global deals with vendors • HR Reputation in the business may not be where it needs to be to start a cross functional project of this size Benefits Range High Confidence Target • Cost targets not clear due to lack of financial data. Assuming cost in the business is three times current L&D cost cost reduction of 10 % would be about $???M to Stretch Target $???M

  31. Other

  32. Key Assumptions: Key Findings: 6 Potential Actions: Opportunities: • Assume no technology investment. Opportunity- Strengthen the regional HR Structure in ISMO Benefit Area: Shared Services Learning and Development Role Clarity and Process Improvement Recruitment Business Partner Upskilling Other • Strengthen the regional structure by using the resources on a regional basis and by letting them be more accountable for plans and deliverables across the region. • Local resources in local “Skill Centres” : L&D:50 FTE, C&B:33 FTE, Staffing: 30 FTE, HRSD: 41 FTE. • We need to stop doing things to start the change • By using the resources in a more efficient way and leverage the resources we could reduce the number of people with 10%. • FF training is out of scope • This will have an impact on the business and needs to be manage by the SMT in each market : The approach is not right : we should start by looking at local business needs and then define the support needed from HR • To define (not necessarily decrease) the number of people working locally – Number of people working locally need to be defined in light of local business plans and priorities – The number of HR people needed locally is a consequence of business plans, possibility of use of a regional HR structure. • To get an improved leverage of resources by using them for a bigger group of people/countries • To use resources on regional basis will help us to stop do nice-to-have’s and focus on the needs-to-have. • Use virtual solutions as an interim solution to use the resources we already have, built on the knowledge and cost efficient. • Conduct a survey to be answered by local markets to identify gaps in service delivery (vs business plans) for each market • And also to identify new areas of support needed (for example in the context of the project “Reshaping the business”) • Per region define the important areas to work with going forward, and coordinate that with HR, Business and GPO. • Scope the regional accountabilities and map the present resources already in ISMO. Benefits Range High Confidence Target • Reduce the number of local HR Specialist by 10% – 15 positions X 116,000= $1,740,000 $1.74M to Stretch Target • Reduce the number of local HR Specialist by 20% - 31positions X 116,000 = $3,596,000 $3.59M

  33. Key Assumptions: Key Findings: 7 Potential Actions: Opportunities: • Technology investments: • Personal VC equipment for key people (HRLT for example) ? • Assess productivity tools. Opportunity- Reduce Travel Costs Benefit Area: Shared Services Learning and Development Role Clarity and Process Improvement Recruitment Business Partner Upskilling Other • Travel and Entertainment is currently $7.8M globally. • The start-up of a new global structure with global planning teams could increase this cost if not managed correctly • HR employees leading meetings will have strong meeting planning and meeting management skills to optimize the meeting outcomes • HR employees are trained in using webex, video conferencing and audio conferencing techniques • Use video conferencing for all meetings less than 2 days • Ensure all meetings have clear objectives and agendas planned at least one week in advance to ensure optimum planning, preparation and outcomes • Meetings should be held in low cost countries where possible (e.g. don’t plan meetings in London) • Train employees on webex, video conferencing and audio conferencing techniques • Develop a governance model for approval of global travel Benefits Range High Confidence Target • Reduce travel costs by 5% = $390,000 (savings is low due to the start-up of global organization) $0.39M to Stretch Target • Reduce travel costs by 10 % = $780,000 $0.78M

  34. Key Assumptions: Key Findings: 7 Potential Actions: Opportunities: • Assume no technology investment. Opportunity- Increase Span of Control and Decrease Layers Benefit Area: Shared Services Learning and Development Recruitment Business Partner Upskilling Other • ??? • ??? • Move training currently in the business to HR to be integrated and managed • ???? Benefits Range High Confidence Target • ??? $???M to Stretch Target $???M

  35. Key Findings: Key Assumptions: 7 Potential Actions: Opportunities: • Significant technology investments/implications required. Opportunity- Integrate processes and remove waste and bureaucracy Benefit Area: Shared Services Learning and Development Recruitment Business Partner Upskilling Other • HR are currently seen as bureaucratic and difficult to work with. • Internally there are to many manual steps in our processes • Necessary controls that are not integrated in the processes leading to longer lead-time and lower customer satisfaction • HR is implementing a Lean approach to process development and are utilising process development team on all levels to achieve a cost reduction and improved customer experience • The new organisation requires people to walk cross functionally • Eliminate waste in all processes • Employees should have a broad competence • Integrate control functions in the day-to-day-work and in the process • No additional workforce or approval functions - problems needs to be solved in the normal process • Continues improvement • Cross functional flexible teams • Implement cross functional process improvement teams with clear accountability to implement changes within there area Investment required • Integration of Taleo and PeopleSoft • Implementation of integrated solutions based on proposals and Business Case from each ‘Process Improvement Team’ Benefits Range High Confidence Target • Reduction of 10% of spend and headcount over three years in all HR Service Delivery related processes $???M to Stretch Target • Reduction of 15% of spend and headcount over three years in all HR Service Delivery related processes $???M