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Challenges & the road ahead

May 30, 2012

Driving Performance and Talent Management in a

Multi-Business Conglomerate

• About Godrej

• Our Vision

• HR & Technology Challenges

• Godrej Capability Factors

• Our Approach - HR Technology Roadmap & Vision

• SuccessFactors Implementation

• What has changed post SF implementation

AGENDA

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ABOUT GODREJ

• 113 years young (estd. 1897)

• Largely privately owned by the Godrej family

• US$ 4 billion turnover

• 21,000+ people

• 100 manufacturing locations in India & abroad

• Diversified – 7 major companies (4 publicly traded)

• Global operations in 16 countries

GROUP OVERVIEW

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“I hold my brother Godrej in such high regard that if your enterprise is likely to harm him in anyway, I regret

very much that I cannot give you my blessings”

- Mahatma Gandhi to a favour seeking competitor

Godrej touches the lives of 470 million Indians everyday

• The Godrej brand touches more Indian’s on a daily basis than any other Indian

owned group or brand today.

• Godrej sells 6 billion candies a year, that’s approximately one candy for every man,

woman and child on the planet.

• We produce over 1 billion cakes of soaps a year, and the Godrej No.1 brand of

soap is amongst the highest selling soaps in the country today.

• Godrej sells one refrigerator every 30 seconds in India.

• Business Week lists GCPL amongst Asia’s 100 fastest growing Companies.

• Three out of every four Indian banks are secured by Godrej.

• Godrej manufactures Cryogenic engines that power India’s space program.

INTERESTING FACTS

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LEGEND

Holding Company Division Corporate Entity Joint Venture International Subsidiary

GODREJ & BOYCE

Appliances

Construction

Electricals

Interio

Lawkim Motors

Locks

Material Handling

Precision Engineering

Precision Systems

Prima

Process Equipment

Security Solutions

Storage Solutions

Tooling

Godrej Infotech

Godrej Efacec

GODREJ INDUSTRIES

Chemicals

Estate

Finance

Godrej Consumer Products

Godrej Properties

Godrej Agrovet

Godrej Household Products Limited

Godrej Hersheys

Godrej Tyson Foods

Keyline Brands

Kinky

Rapidol

Godrej Global Middle East

Godrej Nigeria

Megasari Group

Issue Group

Argencos

GROUP STRUCTURE

OUR BUSINESSES

We are a group of 6 companies. Godrej Industries operates a

chemicals business and is a holding company for the associated

companies. We are 7500 + people strong and undertake global

operations in Asia, Africa and Latin America, which are the key focus

international markets outside India.

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BUSINESS VISION

OUR IMPERATIVES AS A GROUP

OUR 2020 VISION HAS 4 IMPERATIVES HR IMPERATIVES

Grow 10 times in the next 10 years

•Provide strong leadership and global talent

from within Godrej

•Cost efficiency

•Integrate acquisitions

Be the most trusted and innovative Indian

brand

•Have an authentic and edgy employer

brand

Foster an inspiring place to work •Build the culture around our capability

factors Create shared value through ‘Godrej Good

and Green’

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A LARGE GLOBAL PRESENCE BY 2020, BACKED BY AN HR

VISION WHICH IS TO BE SIMPLE, AUTHENTIC AND EDGY

simple authentic edgy + +

1. Processes 2. Tough Love 3. Leadership Pipeline

4. Technology

5. Differentiated remuneration

• HR Cost/ Employee

• HR process feedback

• Manager Scorecard (Godrej

In tune)

• 360 Degree Score (Leading

Others)

• Employee Engagement Score

• Talent Attrition

• Employee Cost as a percentage

of Contribution

• Internal Successors/ Critical

Positions

• Compensation Positioning –

Fixed and Variable

OUR MEASURES OF SUCCESS

CURRENT HR CHALLENGES

Talent Identification not based on quantitative or qualitative data

Performance process unable to identify “What” from “How”

Employee Capability /Leadership development not following a framework

Group level information not captured & available in one single system

Interlinkages between different HR processes not readily understandable

Technology not attractive enough for managers to “visit” the system

Current HR platform (Peoplesoft) not scalable

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TECHNOLOGY CHALLENGES

OUR IT SYSTEMS DO NOT SUPPORT

OUR GOALS

All employees

HR Users

Payroll Users

Applications operate in silos,. There is no integration between the major HR applications at all. Data is uploaded / downloaded via excel / flat file extracts between systems.

There is no standardized implementation platform. Skills ranging from .Net, Mfg-Pro, PeopleSoft, SAP etc are required to maintain these applications

There are multiple applications to run Payroll back-office. Group companies have implemented either SAP-Payroll, Mfg-Pro or use range of applications (Agrovet).

No Golden Data Source: Same data is entered in multiple systems individually. For example: new employee record is inserted in multiple systems.

Portfolio comprises of legacy and non-supported platforms: Mfg-Pro is a legacy platform, while Godrejite is implemented on an old version of MOSS (2007).

Stability of GEMS: Stability of GEMS post PMS customization is a concern area.

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GODREJ CAPABILITY FACTORS (GCF)

THE GCF FRAMEWORK

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THE GCF MODEL IS BASED ON THE 3 PILLARS OF OUR LEADERSHIP PHILOSOPHY

Leading Self Fundamental to successful development as a leader is an understanding of self –

of one’s own abilities and areas of improvement. Leading yourself is a commitment

towards a continuous journey of learning and growth.

Leading Others Leaders interact with others in many ways, whether as supervisor, mentor,

manager, team member, team leader, peers, or co-workers. Leading others is

working with and influencing those you work with to achieve common goals.

Leading Business Leading business is about delivering results and about being able to see the

bigger picture today and acting on it. It is also about leaving a legacy and creating

a brighter Godrej.

COMPETENCY BASED TALENT MANAGEMENT

Recruitment

Induction

Talent Management & Leadership Development

Learning

360 Degree Feedback

Performance & Career

Management

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OUR APPROACH - HR TECHNOLOGY

ROADMAP & VISION

• We partnered with a leading consulting organization to study our HR processes & the technology supporting it

• They studied our As-Is processes & systems

• They gave recommendations about the To-Be processes & the supporting systems

• They prepared a HR Technology roadmap

HR TECHNOLOGY ROADMAP

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HR IT STUDY

• Leverage economies of scale

across the group companies

• Self service driven flexibility

Customer

Intimacy

Design

Excellence

Operational

Efficiency

Integrated Talent Management

HR

Analytics

Godrej – HR Vision

HR Focus Themes

• HR measurement and budgeting

model

• Enabling strategic decision making

through workforce insights

• New Competency framework

planned with linkage to PMS

• Leadership development is driven

by corporate

HR IT Road Map

Functional Applications

Sourcing Options

Rent

Buy off the shelf

Outsourcing

HRMS

SAP

PeopleSoft

Best of Breed

HR-IT LANDSCAPE OPTIONS

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PROCUREMENT STRATEGY –

EVALUATION MATRIX USED

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Criteria as discussed in Prioritization Workshop Suggested

Weightage

Suggested Option Scores

Custom

Developed

Buy Off-the-

Shelf

Rent

(SaaS)

The system scores high on usability and can be rolled

out to users with minimal training 25% 2 1 3

Low Total Cost of Ownership over the product lifecycle 15% 1 2 2

Ability to handle technology obsolescence 11% 1 1 3

Integration is easy with existing processes and data and

applications 10% 3 2 1

Codifies best-practices and processes 7% 1 3 3

Low implementation risk: Fast and assured

implementation 7% 1 2 3

Low vendor related risks 7% 3 2 1

Low initial costs 5% 1 1 3

Low exit costs 5% 1 2 3

Enterprise-development and user-support organizations

are not required 4% 1 2 3

Less likelihood of defects 4% 1 2 3

Total Scores 1.59 1.66 2.51

Scoring Scale: 1: doesn’t satisfy requirement 2: partially satisfies requirement 3: fully satisfies requirement

LIST OF PROJECTS IDENTIFIED

Projects Description Target Outcomes

1 Payroll outsourcing Fully outsourced payroll processes for all in-scope Godrej companies

Live Employee payroll-service interface

Operational Service support framework (L1, L2 support)

2 Talent Management

System

Design Skill Gap Analysis, Performance Improvement Framework and Individual Development Plan

Define Succession Profiles

Define Employee Appeal Process

Define Reward and Retention process

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Learning

Management

System

Define Training strategy, Needs Assessment and the budget forecasting process

Define a Common Learning Measurement framework

Implement a Group-wide Certification Program and Learning Management Model

Establish Communities of Practice and a Learning Vendor Management program

Create a Content Development and Management Framework

4 Intranet redesign

and upgrade

Detailed usability analysis and identified wire-frames / mock-ups

Migrate existing functionality to new site

Live new functionality (CKM and profile management)

Operational Service support framework (L1, L2 support)

5 HR Portal Define HR portal roadmap / strategy

Define HR Portal integration and information architecture

6 ESB Implementation Define target integration architecture and messaging design

Build adapters for Intranet, PeopleSoft and other HR applications

Implement middle-ware, test and deploy

7 HR Analytics Integrated HR analytics and decision support platform at Godrej

Live pre-defined and configurable dashboard, reports based on user profile

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LEADING TO THE HR IT ROAD MAP…

Project/Phase 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

Preparation for roadmap

Payroll Outsourcing

Performance Management system

Learning Management System

ESB Implementation

Intranet Redesign / Upgrade

HR Portal

HR Analytics

HRIS Assessment

(Upgrade versus replace analysis /

decision)

2011 2012 2013 2014

HR-IT STRATEGIC ROADMAP - PROGRAM PORTFOLIO TIMELINE

OUR HR IT VISION

• An easy to use and intuitive technology platform for all employees

• Scalable and global

• A predictable cost structure and overall lower investment in HR systems

• HR Analytics driving business decision making

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SUCCESSFACTORS

IMPLEMENTATION

HOW SUCCESSFACTORS WAS EVALUATED

• We evaluated leading traditional on premise software

• Organization broad goal to move to cloud based systems helped start the

evaluation process

• SF India presence gave it an edge over Taleo, Saba etc

• Evaluated SF over 2 months with demos to multiple stakeholders e.g. HR

process owners, HR heads & finally to the management committee

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• Engagement with SuccessFactors spread over 5 months

• Modules launched in a phased manner as opposed to a “big bang” approach

• Alignment with our HR process calendar

• Roll out planned for 1000 international employees & with multi lingual capabilities in

the next few months

IMPLEMENTATION ROADMAP

360 degree

Top Talent Management

Performance Management

Career Development

Succession

Planning

• First process that was launched on SF

platform

• Used the new competency framework

• Launched within 2 months of starting the

engagement

• 600 managers globally got their 360 degree

feedback

• Record high scores of completion - ~93%

Feedback on ‘360 degree feedback’:

“my compliments on the excellent format and

presentation this year.

Great to see such quality work.”

360 DEGREE FEEDBACK PROCESS

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• Launch of the 9 Box process – called

top talent management integrated

with competency framework

• Integration of the GLF promotion

process with the GCF

Feedback :

“My compliments to HR on a stronger

and employee development / career

plan, focused mode.”

TALENT MANAGEMENT/CAREER DEVELOPMENT

• Annual performance integrated with GCF – SF’s biggest launch for over 3700

employees worldwide

• Old goal sheets with previous quarter ratings migrated from Peoplesoft

• For employees it was a seamless transition as data was available as before

• Moderation carried out by Function Heads in the system – reduction in numerous

spreadsheet preparation & thus errors

ANNUAL PERFORMANCE REVIEWS

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POST IMPLEMENTATION

One stop shop for all talent data across the group companies e.g. Talent data of top 100 employees.

Increased usage of quantitative data to make decisions in calibration & even in Godrej awards

360 degree evaluation is now increasingly used for downstream developmental initiatives

Reduction in HR effort for addressing standard manager queries

Reduction in cycle time for launching & completing HR processes like 360 degree feedback, 9 box with new competencies, moderation

Minimal change management intervention while rolling out SF

System look & feel, intuitiveness making it “pull” based for managers

WHAT HAS CHANGED POST IMPLEMENTATION

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SOME TIPS & LESSONS

TIPS

• Do not be tempted to roll out all modules at once; ensure that modules are released

after doing adequate change management

• Completed the process documentation before we started the implementation

• Get buy in from all stakeholders, esp in a multi business environment

• Ensure you have the project team formed & staffed adequately esp during testing

phases

• Data clean up is very important – e.g. Org Hierarchy

LESSONS

• 360 – too many raters for an individual e.g. for top management some had as many as

20 raters

• 360 – participants should have been chosen by employee

THANK YOU FOR YOUR TIME AND CONSIDERATION

Contact me at nikhil.shembekar@godrejinds.com