RWE GBS HR Journey to efficient HR shared services operations · The GBS HR is an integrated part...

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RWE GBS HR Journey to efficient HR shared services operations

Oliver Henrichs, GPO HR, RWE

Hendrik Schmahl, Director, Deloitte

Linda Gross, Senior Manager, Deloitte



RWE today: Leading positions in core markets*

2

No. 1 in the German

electricity market and

in the East gas market

No. 2 in the Dutch

electricity market

and gas market

No. 3 in the German

gas market

No. 4 in the UK

RWE nPower

electricity and

No. 5 in the

gas market

* Market positions of the RWE Group in terms of sales, 2013.



RWE today: Facts & Figures as of 31 December 2013

3 Deloitte Shared Services, GBS & BPO Conference 2014

RWE’s customers in million

Electricity

16

9 7

Water Gas

RWE´s key figures in € Mio.

54.070 External revenue

66.341 Employees 5.881 Operating results

8.762 EBITDA

Characteristics of the energy & gas industry

• Renewable Production

• Virtual Power Plants

• Energy Efficiency

• Financial Regulation

350+ Legal entities DE

Almost 500 Legal entities Europe



Initial Situation of the HR Journey Lack of focus on an overall HR Model and a missing group wide HR

Strategy were the starting point of the “HR Evolution Program”


Start of 2013 – Initial Situation

• Ongoing economic pressure on the RWE Group in the German and European market

• High and increasing expectations on the support functions to add value for the change

• Requirements set to HR to provide support to the business units in their change

management and efficiency programs

• Independent and heterogeneous HR structures and focus areas in the business units

• Different initial situations of HR model in Germany, in the UK and in the Netherlands

• Moving from an HR SSC and GBS project to an holistic HR program - based on

feasibility study, the focus was on initialization an HR SSC in a multi-tower environment

• High cost pressure on the supporting functions including HR

• Initial steps focus on HR SSC only without considering an holistic view of all HR

functions and roles

• Demand to define a group-wide HR strategy and to move to an holistic HR program

…for the

RWE

Group

…for HR

…in the

context



Framework of the HR Journey The HR Evolution Program encompassed a holistic transformation

starting from the HR Strategy to the implementation of an overall HR

Model


Organization

Process

People

Technology

Burning

Platform &

Business

Strategy

HR Story

(2020)

HR

Management

Agenda (2015)

“RWE 2015” &

“Vision” “Mission”

Framework of the

“HR Evolution Program”



Embedment of the GBS HR The GBS HR is an integrated part of the HR Journey and an essential

building block within RWE’s House of HR and focussed on four

defined HR Cluster during the HR Transformation Journey


Organization

Process

People

Technology

Center of

Expertise

HR Business

Partner

Local HR

HR Governance

HR Shared

Services

Scope of the GBS HR

Transformation Journey RWE’s House of HR

Group HR

* HR Population

(target)

50-60%

10-15%

25%

10%



2012 2013 01-06/14 Since 06/14

HR Cluster Plan & Vision Design Build Operate

Journey of the GBS HR The GBS HR transformation journey was divided into four phases –

each phase was structured along the HR Clusters


Organization

Process

People

Technology

Feasibility Study

Business Case

HR Service

Delivery Model

HR Technology

Strategy

HR SSC

Governance

HR IT

Governance

HR SSC Org

Design

HR SSC

Network

Global Process

Design

Transition

Approach

Functional

Requirements

HR Portal

GBS HR

Transformation

Build the GBS

HR Organization

Built up DE SSC

Hub (Lift&Shift)

Built up UK SSC

Hub (Lift&Shift)

Serving 60,000

customers

(and 50,000

pensioners) after

transition

2013 – our approach 2014 – our approach Today



2012 2013 01-06/14 Since 06/14

HR Cluster Plan & Vision Design Build Operate

Journey of the GBS HR – What did we do so far? The GBS HR transformation journey was divided into four phases –

each phase was structured along the HR Clusters


Organization

Process

People

Technology

Feasibility Study

Business Case

HR Service

Delivery Model

HR Technology

Strategy

HR SSC

Governance

HR IT

Governance

HR SSC Org

Design

HR SSC

Network

Global Process

Design

Transition

Approach

Functional

Requirements

HR Portal

GBS HR

Transformation

Build the GBS

HR Organization

Built up DE SSC

Hub (Lift&Shift)

Built up UK SSC

Hub (Lift&Shift)

Serving 60,000

customers

(and 50,000

pensioners) after

transition

2013 – our approach 2014 – our approach Today

900+ HR employees

transferred during

transition into new

roles

Involvement of all

stakeholder groups

including workers

council

150 to-be processes

designed within 3

months up to level 5

30 workshops with

70 RWE experts

involved in process

design from all over

Europe

7 months of

transition phase

Gathered, validated and

agreed on multiple

requirements for CoE, IT,

Reporting and Portal



HR Shared Services Network The aspiration level of the Business Case and RWE’s regional

structure / culture led to the HR SSC Network


The Migration approach enables the set up

of the HR SSC network

Valu

e d

river

# 4

: B

enefiting f

rom

O

uts

ourc

ing

Value driver # 3: Increased bundling &

& efficiency commitment

Value driver # 1: Enforced Migration

time line

Valu

e d

river #

2:

Pro

cess-b

y-P

roce

ss

mig

ratio

n a

ppro

ach

Group-wide HR cost savings

< 30% of HR population



HR SSC Network Design The ShS Network Design followed a holistic approach and reflected

the European Governance structure


SSC

Governance

Process

Ownership

(GPO HR)

HR IT

Governance

(GPO HR)

Training &

Enablement

Organization

Process

People

Technology

HR Cluster HR SSC Org Structure

GPO HR

Regional

Head UK

Operation &

Delivery

HR

Technology

Portfolio

Management

Regional

Head NL

Payroll , Comp &

Ben. (PO)

Pensions (PO)

Sourcing (PO)

People

Management (PO)

Service

Management

HR Services &

Admin. (PO)

HR IT Demand

Management

HR IT Architecture

& Solutions

Coordination &

Project Mgmt

Strategic HR

Controlling



HR SSC Org & Governance Design Sharing experience along our GBS HR journey…


… and what are your thoughts/experiences?

What are we proud of? What are typical pitfalls you

should be aware of?

• Detailed To-Be process design phase

in less than a year

• Continuous, comprehensive

management of all stakeholders

• Management of co-determination

• Smooth transition of OpCo go-live

• Agreed approach of all roles in the

former HR model

• Alignment of all new HR roles

• Strive for continuous and sustainable

communication and change

management

• Strive for transparency

• Communication to the HR community

on the process to lay off people

• Obtain strong support and buy in from

Top Executive Level




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RWE GBS HR Journey to efficient HR shared services operations · The GBS HR is an integrated part...

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