Implementation of an international HR strategy

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1 Implementation of an international HR strategy Michel Segesser, Head HR & Communication CPH Group 29. Deutscher Logistik-Kongress, 10 October 2012

2 Agenda About CPH Chemie + Papier Holding AG Elaborating and implementing an international HR strategy Pitfalls and derailleurs

3 Agenda About CPH Chemie + Papier Holding AG Elaborating and implementing an international HR strategy Pitfalls and derailleurs

4 The CPH-Group at a glance CPH Chemie + Papier Holding AG is an internationally active, medium-sized industrial group with its headquarters in Switzerland; it has been established 1818 as Chemische Fabrik Uetikon (lac of Zurich, Switzerland) The activities include the development, production and distribution of Chemicals : silicate chemistry, other chemistry Papers : newsprint and magazine paper Packaging films : mono films, coated films With a workforce of about 850 employees we run 5 production sites in Switzerland, Germany and the US

5 Strategies of divisions and challenges Strategies built up «bottom up» per division Chemistry Paper Packaging Focus on core business Growth in new regions (Middle East, Asia) Innovation Growth within existing market area Cost leadership Concentration to pharmaceutical market International growth (US, LATAM, Asia) Products at higher level Innovation All divisions Big efforts to raise efficiency and cost optimization Organizational changes Enhance synergies (within divisions and across CPH Group)

6 Agenda About CPH Chemie + Papier Holding AG Elaborating and implementing an international HR strategy Pitfalls and derailleurs

7 Root cause for HR strategy and mission for HR Root cause for HR strategy: Local management teams with division head to coordinate; local management and business structures Lack of business / process integration; lack of efficiency Difficulties to define common (divisional) strategies Localized backup (HR) functions; administrative experts for core processes Transformation of holding from financial holding to management holding Mission for HR: Support transformation and enhance leadership skills Support growth initiatives and ensure readiness for future challenges Establish HR as strategic partner

8 Framework for people management within CPH Engaged management teams: leadership Company s success: engagement, culture Qualified workforce: competencies 3 pillar concept: leadership competencies engagement/culture

9 HR Org Engagement Culture Competence Leadership CPH Chemie + Papier Holding AG HR Roadmap Exec compensation benchmark Review exec comp package Conditions of employment Exec compensation benchmark Exec compensation benchmark Perf Mgmt (Exec) Management review Succession plan Mission statement / l ship framework Management review / succession plan Talent pipeline Leadership development Roadmap competency model Career tracks Training map Recruiting / trainee program Employer branding Employee survey 2013 Action plan from employee survey 2013 Review of employer Salary review benefits Salary review Salary review Salary review Salary review Re-organization Of HR family HR Controlling Continuous improvement of HR activities, processes and tools: terms of employment; working time model; employer brand; recruiting process; resilitation process; continuous improvement; health care; promotion process; training & development; HRIS; employee hand book; (March 2011)

10 New HR Business Model Decentralized but unified Group wide standards Not every division needs to have a fully-fledged HR (shared service approach) For every HR key topic one group wide expert (center of competence) High efficiency with limited resources Not every HR employee needs to be a decathlete Enhance group wide collaboration Ensure regular information flow and exchange of ideas Build up an HR community (HR family) Coach top management at Group level

11 International aspects and challenges Be capable to work with (cultural) diversity Understand but also differ local legal restrictions/obligations from desire of freedom (change resistance) Stay firm regarding culturally important guidelines Embed colleagues in shaping and implementing the HR strategy; make them actors (not subordinates) even if they are located far away Centralize as needed, decentralize as possible (be aware of IT / HR systems) Walk talk walk talk

12 Agenda About CPH Chemie + Papier Holding AG Elaborating and implementing an international HR strategy Pitfalls and derailleurs

13 Pitfalls and derailleurs To achieve the (HR) strategy goals Late (re)alignment of values to your strategic targets Readiness of senior management s competencies to adapt to new situations and keep up with the rhythm of change (credibility of management) Readiness and acceptance from managers and employees to cooperate with a changed HR role To implement a new HR role model High diversity within daily operational HR business; historic believes Lack of competencies within the HR organization regarding the execution of the new roles High pressure on HR employees due to triple impact of ongoing change

14 Implementing an HR strategy is a continuous improvement IOP Sustainability Award 2011

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