Thought Leaders Retreat September 23, 2008
Talent shortages already exist in many areas of the global workforce Effectively handling organizational simplexity is required Multi-dimensional leadership with information and insight Own your function; own your vision 2
Reduce Demand Increase Supply Invest in education and vocational training Improve public-private initiatives Encourage prolonged work life Corporate initiatives Process/job redesign - Automate - Offshore/Outsource 3
5 6 Building the organization and talent levels to create a “Gold standard” HR organization Running lean HR operations that are a reference case within the company for adding value at a competitive cost 1 Getting “in tune” with the CEO and Board, using an HR lens to shape a collective people agenda that maximizes value creation Leading cross-company initiatives to drive growth and productivity 32 Operationalizing the value-creation agenda through effective planning and performance management Communicating progress against the value-creation framework to internal and external stakeholders 4 7 Managing business risk by achieving best-in-class performance for specialty HR functions (e.g., recruiting, employee relations) HR leadership Value creation in the business Value creation within HR 5
Drives Effective Management Practices Effective Management Practices Long-Term Profitability & Growth Long-Term Profitability & Growth Drives Employee Satisfaction Employee Satisfaction Drives Customer Satisfaction Customer Satisfaction Execution Innovation (2) (1) Leveraging the Value-Profit-Chain…At SYSCO SYSCO Practices: Leadership Support Front-Line Supervisor Rewards Quality of Life Diversity/Engagement Customer Focus
Example: In Safety, we reduced the performance gap from top 25% and bottom 25% and increased overall safety results by nearly 50% in past 3 years. This was accomplished through leveraging the key metric process, shared practices and reciprocal visits. Key Metrics/Shared Practices is Working at SYSCO
Safety Update 5,000 Fewer People Injured Each Year
Annual savings: $20 million Shifted the curve in Safety!
HR strategy Focus IR negotiations on life time employability and incentivizing comp & benefits systems HR management Leadership HR development HR function: Multi-dimensional Become sparring partner of top management (CEO/COO) Assess impact of business early on and drive solutions Drive internationalization (of culture and organization) Overall set-up to deliver maximum value to business "HR transformation" Deliver administrative HR-services cost efficiently Build skill base beyond HR Professional management of restructuring Truly support local management in HR-related issues Manage employment costs and flexibility Become the employer of choice Step-up talent manage- ment and rotation Address aging workforce phenomena Establish a performance culture, assessment of performance/potential Leadership quality (and quantity) not matching demand of business 10
SHRM Workplace Trends Continuing high cost of health care in U. S. Large numbers of baby boomers retiring about the same time Threat of increased health-care costs to the economic competitiveness of the U. S. Aging population Retention strategies for current/future workforce
SHRM Workplace Trends Federal health-care legislation Preparing orgs for an older workforce Threat of U. S. or global recession Labor shortages at all skill levels Demographic shifts leading to shortages of highly skilled workers
Actions Taken in Response to Trends Tuition reimbursement Greater investments in training/development Implementing an employee-data privacy policy Policies/procedures to protect from employee/customer identity theft Non-disclosure, non-compete agreements for intellectual property
Actions Taken in Response to Trends Measures to protect company data from natural disasters or cyber attacks More use of technology to perform transactional HR functions Increasing technology training Increasing training in specialized skills Implementing preventive health programs