Beverage Industry / Case Story
An Alco Beverage Major with over with ~140 brands, 9000+ employees and 91 Manufacturing Locations, listed on London Stock Exchange
Overview
The organization, an Alco Beverage Major, was facing a complex set of challenges in its HR function.
- With a vast portfolio of over 140 brands and a sprawling presence of 91 manufacturing locations, the organization has grown significantly, but its HR function has become fragmented due to its widespread nature. This fragmentation has led to high redundancy and limited metrics tracking, making it challenging to efficiently manage the workforce. Moreover, the organization needs to revitalize its level mix and balance to optimize the span of control, as the current structure may not be sustainable in the long run.
- Another pressing issue is the limited availability of employee self-service options and inconsistent resolution responses, which can lead to frustration among the workforce. The HR function is described as more of a guiding role rather than an enabling one, which suggests a need for a shift in approach to better support employees and business needs. Additionally, the organization is grappling with the need to strike a balance between high-tech and high-touch approaches, as well as ensuring harmonious communication between employees and the business.
- One of the critical challenges is the limited availability of data for business analytics and decision support. In an era where data-driven decisions are paramount, the organization is at a disadvantage in terms of harnessing HR data for strategic insights. Addressing these challenges will be crucial for the organization to streamline its HR function, improve employee experiences, and make informed decisions that drive business success.
Objectives
The key objective to be achieved in this situation was to "Transform the HR Function into a Strategic Enabler".
"The organization faced challenges including scattered information sources, intricate systems, extensive manual intervention and controls, people-dependent operations, and inefficient payment processes."
Solution
The Transformation Blueprint for Transitioning to a Managed Captive for HR is a comprehensive roadmap that guides the organization through a significant HR transformation. It encompasses crucial elements such as organizational redesign to align with the new model, the design and documentation of optimized HR processes, resourcing strategies, and comprehensive training programs to prepare the workforce for the changes ahead. Additionally, it outlines the setup of a centralized HR Shared Service Center (HR SSC) for improved efficiency.
A critical aspect of this blueprint is the development of a responsibility matrix, which clearly defines the roles and responsibilities of Strategic HR, Regional & Plant HR, HSSC, and Self-Service functions. Furthermore, a people assessment process ensures that employees are reskilled or redeployed as needed, ensuring a smooth and successful transition for both HR Shared Service Center and retained roles.
In an impressive feat, the organization successfully transitioned to a Shared Service Center (SSC) within a mere six months, involving approximately 40 full-time employees (FTEs). During this transformation, the organization achieved remarkable process standardization, eliminating 100% of waste to optimize efficiency. The implementation of a single Enterprise Resource Planning (ERP) system streamlined operations, supported by the establishment of key performance indicators (KPIs), service level agreements (SLAs), process manuals, and tent cards for enhanced process efficiency. Additionally, the introduction of an 'Ask HR' tool through an HR Survey bolstered employee engagement and support. The organization also invested in a Document Flow & Document Tracking System and a Mailroom, ensuring seamless information management. Lastly, there has been a sharp focus on attracting and retaining talent, nurturing skills and capabilities to drive sustainable success.
In an extraordinary achievement, the organization witnessed a remarkable 99% improvement in productivity, controls, and compliance by Year 3, driven by a culture of clear accountability. The Shared Service Center (SSC) has become a comprehensive one-stop-shop for all employee needs, offering streamlined access to policies and procedures. The organization's focus on capability development has not only fueled individual growth but also prepared a robust pipeline for future organizational needs. This success has also triggered the establishment of a multifunctional Global SSC in India, poised to engage approximately 2800 full-time employees (FTEs), marking a significant milestone in the organization's global expansion and operational excellence journey.
Benefits
- The organization achieved approximately 22% cost savings through the implementation of process metrics and dashboards.
- Achieved an impressive 96% payroll accuracy rate.
- Achieved a response time of over 95% within the Turnaround Time (TAT) for employee queries using the ‘Ask HR’ tool.
- Established a multifunctional Global Shared Service Center (SSC) with approximately 2800 full-time employees (FTEs) within a span of 5 years.