think global act local david holroyd

A leading global CRO

How would you ensure alignment of the EMEA HR function into a PPD Global HR function while meeting the specific business needs of the EMEA region? What factors would you take into consideration to ensure success and what prior experiences & lessons learned would your draw upon?

David Holroyd7th June 2010


Caveat

• In pure mathematics and science examinations where there is not necessarily a consensus, the methodology and thinking behind the answer is far more important than the answer itself.

• I am using the 15 – 20 minutes allotted to the task to demonstrate my ability and experience – not to make actual recommendations – again it’s the thinking behind the problem and not the result that is important.


Think Global Act Local?

• Great idea but really a contradiction in terms - it is impossible to produce a top down HR organisation that takes every local issue into account.

• It is critical that organisations balance global consistency with business unit and regional customisation to get the proper blend of process, uniformity and customisation.

• We must use both formal or informal collaborative networks and teams across business units and regions to build a global HR service.


In An Ideal World….

Specialists in the corporate functions maintain responsibility for philosophy definitions, policy design, and high-level program framework (e.g., program intent, metrics and underlying components).

Regional representatives maintain responsibility for local deployment. This process allows for those with local expertise to handle any customisation that may prove necessary.


What Factors Would I Take Into Account • Variations in social, political, economic and historical

circumstances.

• Different locations/offices have their own way of doing things and are resistant to change.

• The perceived value of the HR function varies across locations/offices.

• Different perceived HR Priorities to HQ.

• Universal Performance Management.


Criteria Road Map

• Here is an example decision framework to determine the appropriate balance of global, regional and local HR roles.

• The following three slides suggest a criteria ‘road map’ for making decisions:


Roles and Responsibilities - Global

Primary Considerations or Drivers

• Driving global principles, culture and mindset.

• Managing enterprise-wide assets.

• Global technology solutions.

Examples

• Defining corporate culture.• Comp & benefit

philosophy.• Leadership.• Organisational design.• Ethics and corporate

social responsibility.

Across EnterpriseEnterprise strategy where consistency and/or consolidation creates significant value.


Roles and Responsibilities - Regional


• Regional commonalities (culture, language, law, geography etc.

• Strong regional business orientation.

Examples

• EU works councils.• Region specific strategy /

design (learning and development, compensation).

• Regional service delivery (expatriate, compensation, HR reporting, recruiting.

Across Multiple CountriesNeed for greater coordination and efficiency with flexibility to accommodate regional differences.


Roles and Responsibilities - Local


• Legal and regulatory requirements.

• Dominant Business Unite or country focussed business structure.

Examples

• Payroll, labour relations.• Benefits administration

(retirement, health and welfare).

• Local outsourcing relationships.

By CountryDifferentiation at local country is critical or mandatory based on regulatory requirements.


Theory to Practice

• We have to develop criteria for determining whether a business unit or regional adaptation is necessary.

• That might dictate that a business unit adaptation typically requires a critical impact on business functionality, and a country or region-specific adaptation must be legally mandated or culturally significant.

• The matrix might look something like this:


Standard and Locally Tailored Processes 1Responsibility Corporate Regionally / Locally Tailored

Benefits Core philosophy Implemented based on local laws, customs and regulations

Compensation Pay philosophy and market positioning

Local pay rates within philosophy

Corporate Culture

Data Collection and HRIS

Employee and Labour Relations

Core philosophy Implemented based on local laws, culture and custom

Leadership Development


Standard and Locally Tailored Processes 2Responsibility Corporate Regionally / Locally

Tailored

Mobility

Organizational Design

Performance Management

Implementation based on local laws and customs

Recruitment and Selection

Core philosophy around employment skills for management roles

Implemented based on local laws and labour market variables

Rewards Strategy

Implemented based on local laws

Talent Development

Training Local programs to develop unique needs local workforce


Conclusions

• The concept of top down HR management by a central global organisation is not possible.

• The organisation must strive to build a hybrid model which brings global consistency but which encompasses the views and experiences of global regional and local professionals.

think global act local david holroyd

Documents

leading global cro

global act local

global principles

global technologysolutions

local hr roles

acentral global organisation

ppd global hr function

local country