HR Transformation During M&A
Building the Playbook
for the Unpredictable
Atlanta/SE 2nd Quarter Meeting
June 15, 2017
Introducing Jim Pettit
Seasoned HR technology and process leader
Career included stops as a
Corporate HR Leader
HR Systems Implementation Consulting
Author
Business Owner
Coach
IHRIM Volunteer
Today’s Topics
 Building the M&A Playbook during an HR Transformation
‒ Case Study – All roads lead to Rome
‒ The M&A Playbook
 IHRIM Update
Building your M&A Playbook
An HR Transformation Tale of Two Cities
Why have a Playbook?
 Due diligence focus – not HR systems
 HR systems = first impression to new workers
 Different game plan depending upon characteristics of M&A
“companies spend more than $2 trillion on acquisitions every year. Yet
study after study puts the failure rate of mergers and acquisitions
somewhere between 70% and 90%.” HBR, March 2011
The Caveat
 “I know of no case study in history that describes an organization that
has been managed out of a crisis. Every single one was led.” Simon
Sinek, Leaders Eat Last
“Alpha” Company
 Created as a result of a divestiture in Sept 2009
‒ Medical device manufacturer created as a spin-off from conglomerate.
•
120 HR staff
•
1500 Contingent Workers
•
600 Managers
•
15,000 employees in 22 countries
•
17,000 positions
‒ Newly formed HR Service Delivery team, partnering with IT, tasked with sourcing, contracting,
converting and implementing all HR vendors/systems and services from parent.
 People: Employees were transitioned to the new Workday solution during two stages:
• US, Canada and International bonus eligible employees – Completed September 2010
• Remainder of international employees converted from legacy ADP Freedom– June 2012
 Process:
• Create an in-house HR Service Center with high touch world class customer service – (September
2010)
• Design and implement a new HR Service Delivery model (including Service Center, HR Service
Delivery organization, HR COE’s, and external vendors) – (US/CAN September 2010)
• Evaluate and re-engineer processes to streamline, standardize where possible – (Ongoing)
“Beta” Company
 Created as a result of a divestiture in Nov 2014
‒ Medical device manufacturer created as a spin-off from consumer products company.
•
120 HR staff
•
1500 Contingent Workers
•
600 Managers
•
12,500 employees in 17 countries
•
17,000 positions
‒ Newly formed HR and IT teams tasked with utilizing copy of systems inherited from parent.
 Systems:
• Inherited Workday HCM, SAP HR and SAP payroll for US
• Global payroll processes differ by country
 Process:
• Utilize an outsourced HR Service Center for US/CA for tier 1 HR and payroll support
• Replaced inherited Taleo Recruiting application with Workday Recruiting
• Clean-up and optimize existing Workday configuration – (Ongoing)
• Develop global payroll strategy to consolidate payroll with one aggregator (CloudPay)
M&A Timeline
 Months Since Divestiture
12
18
24
30
36
42
48
54
60
HRIT Organization Transformation
Alpha
Beta
 6 HRIS team based in HR
(50% seasoned IHRIM
members)
 2 HRIS in HR
 4 HR IT in IT (25% IHRIM
members)
 4 IT Developers in IT
 Outsourced Tier 1 Support
 In-house 5 person Tier 1
support
HR Non-M&A Activities in Years 1-3
Alpha
Beta
 Implement Workday HCM
 Implement Workday
Recruiting
 Implement ADP Payroll
 Develop integrations to all HR
administrators & Finance
 Optimize Workday
 Develop home grown LMS
 Change 401(k) and Benefit
Administrators
 Develop HR portal globally
 Implement Taleo Recruiting
 Deploy Compensation planning
 Implement CloudPay payroll
The M&A Playbook
Alpha
Beta
 Leverage project plan
templates
 Leverage project plan
template
 HR migration stand alone
project run by HR
 Integrate HR systems as part
of total IT run initiative
 Quicker
 Slower
Audience Participation
IHRIM Update
A year in review with an eye towards the future
Topics of Discussion
 IHRIM Story
‒ The Price of Legitimacy
‒ An Outdated Playbook
‒ An Engagement without a Wedding
 The Next Chapter
‒ Operations
‒ Membership
‒ Education
‒ Community
‒ Meetings & Events
‒ Marketing
‒ HRIM Foundation
A Tribute to Adam West
IHRIM Operations
 The Jam
‒ Staff Expenses Exceed Revenue
‒ Outdated systems
 The Rescue
‒ 75% decrease in staff expenditures
 Next Steps
‒ Investigate partnership with incubator
 The Heroes
‒ Volunteer Leader:
 Shafiq Lokhandwala, Director: [email protected]
‒ Staff & Key Volunteers
 Gary Morlock CFO: [email protected]
 Laurie Carantit, Director of Operations: [email protected]
IHRIM Member Services
 The Jam
‒ Renewal rate declining
 The Rescue
‒ Certification increased 10% in 2017
‒ Record enrollment in current IHRIM certification review course
‒ Membership audit completed
 Flat during 2017
 New replacing expirations
 Next Steps
‒ Investigate different pricing models
 The Heroes
‒ Volunteer Leader:
 Catherine Honey, Director: [email protected]
‒ Staff & Key Volunteers
 Megan Tanner, Member Services Administrator: [email protected]
IHRIM Education
 The Jam
‒ 3 non-conference educational programs in 2015
 The Rescue
‒ Average 2 virtual educational events / month in 2017
 Raising attendance
 Raising satisfaction scores
 Next Steps
‒ Organize course offerings into tracks
 The Heroes
‒ Volunteer Leader:
 Joyce Brown, Secretary; [email protected]
‒ Staff & Key Volunteers
 Laurie Carantit, Director of Operations: [email protected]
 Lynne Mealy: [email protected]
IHRIM Community
 The Jam
‒ 5 Affiliates left from over 20 Chapters
 The Rescue
‒ Pilot a Community in a Box concept
 38 attendees at introductory happy hour
 50 attendees at first event
 14 new IHRIM members
 Next Steps
‒ Seed additional communities
‒ Partner with Affiliates/Communities to host events
 The Heroes
‒ Volunteer Leader:
 Mary Ann McIlraith, Director; [email protected]
‒ Staff & Key Volunteers
 Megan Tanner, Member Services Administrator: [email protected]
 Affiliate & Community leaders
IHRIM Meeting & Events
 The Jam
‒ Commitment to Toronto Conference
 The Rescue
‒ Renegotiate contract terms
‒ Profitable Toronto conference with volunteers
 Next Steps
‒ Change the model
 The Heroes
‒ Volunteer Leader:
 Stuart Rudner, Director: [email protected]
‒ Staff & Key Volunteers
 Jan Fretwell: [email protected]
 Dave Binda: [email protected]
IHRIM Marketing
 The Jam
‒ Ad hoc marketing efforts
‒ Poor social media presence
 The Rescue
‒ SmartBriefs
‒ Social Media Focus – After 1 month
 1% increase in LinkedIn
 .5% increase in Twitter
 4% increase on Facebook
 Next Steps
‒ Improve the process & build the brand
‒ Extend marketing to new markets
 The Heroes
‒ Volunteer Leader:
 Doug Sampson, Director: [email protected]
‒ Staff & Key Volunteers
 Larry Hemley, President SJ Hemley, [email protected]
 Violetta Taborska, Technical Support: [email protected]
Merci
Obrigada
Danke schön
Kiitos
Gracias
Dank u
Shukriya Tesekkür ederim
Terimah Kasih
Dziêkujê
Arigato
Go Raibh Maith Agat

Tack
Grazie
Takk
Krop Kuhn Kah
Asante Sana
Thank You!