Haier's Global HR Management - HR Transformation in the Internet Era Xiaonan Wang Haier Group HR Director

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Haier's Global HR Management - HR Transformation in the Internet Era Xiaonan Wang Haier Group HR Director
Haier’s Global HR Management
   - HR Transformation in the Internet Era

                                Xiaonan Wang
                       Haier Group HR Director

                                          1
Haier's Global HR Management - HR Transformation in the Internet Era Xiaonan Wang Haier Group HR Director
I. Introduction of Haier

II. Haier’s Global HR Management

III. Haier’s HRIS - Workday

                                   2
Haier's Global HR Management - HR Transformation in the Internet Era Xiaonan Wang Haier Group HR Director
I. Introduction of Haier

II. Haier’s Global HR Management

III. Haier’s HRIS - Workday

                                   3
Haier's Global HR Management - HR Transformation in the Internet Era Xiaonan Wang Haier Group HR Director
Introduction of Haier
Before

 Today             5 R&D Centres                       24 Manufactories           18 Countries                 ……
                                    80,000 Employees                61 Trading Companies       USD 25.8 billion Turnover

World’s No.1 major appliance                       Profit CAGR: 35% from 2007 to 2012          Haier ranks No. 8 in “The World’s
brand for four consecutive years                   9
                                                                                               Most Innovative Companies” list
                                                   8

                                                                                     RMB

                                                                                               •Haier is the only Chinese brand
                                                   7
                                                                                     billion
                                                   6
   1                                   8.6%        5

                                                   4
                                                                                               among the top ten Companies list.
                                                                                               •Haier ranks the best among
                                                   3

   2                                   5.5%        2

                                                   1

                                                   0                                           enterprises of consumer and retail
   3                                   4.2%
                                                                                               sector
Source: Euromonitor, ranking according to retail
volume sales in units based on brand 2012 data

                                                                                                                             4
Haier's Global HR Management - HR Transformation in the Internet Era Xiaonan Wang Haier Group HR Director
Haier Brand

              5
Haier's Global HR Management - HR Transformation in the Internet Era Xiaonan Wang Haier Group HR Director
Haier Product – Solution for Smart Home

                                          6
Haier's Global HR Management - HR Transformation in the Internet Era Xiaonan Wang Haier Group HR Director
Haier’s Strategies

        Create Haier Brand   Create Haier Individual-Goal
                                 Combination Model

                                                            7
Haier's Global HR Management - HR Transformation in the Internet Era Xiaonan Wang Haier Group HR Director
Haier’s Exploration of Networking Strategy and Structure

                            Determine
                                                 Ecosystem of
  Win-win model of                               ZZJYT parallel
   individual-goal   Strategy        Structure   connection platform
    combination                                  under opening
                                                 system

                                Follow

                                                                       8
Haier's Global HR Management - HR Transformation in the Internet Era Xiaonan Wang Haier Group HR Director
Haier’s Transformation in the Internet Age

                 Before                                                                   After

                                                    Transformation through
                                                        cloud platform

                                                                                   Platform of open resources
  Platform of product resources & channel service                              Platform of mechanism and culture
         Platform of mechanism and culture

Haier creates competitiveness of single brand                       Haier creates platform competitiveness of multi-brands

  There are no successful enterprise but only enterprises changing with the times.

                                                                                            Mr Zhang Ruimin
                                                                                                                    9
Haier's Global HR Management - HR Transformation in the Internet Era Xiaonan Wang Haier Group HR Director
I. Introduction of Haier

II. Haier’s Global HR Management

III. Haier’s HRIS - Workday

                                   10
Organization Change

                                                                                  Self-ownership teams bid to join the unity of
    Strategy                                               Self-organization      stakeholder to create value added
                      decides                   driver
                                Organization
 (Win-win Model of
Employee-Customer                                                                 Sharing value added and optimizing constantly
    Integration)                                              Self-driven

                                                                                                                         Former
                                                                                                                       department
                                                                                                                            s

                                                                                                                   Former      Former
                                                                                                                   Partner    Consumer

   Past
                                                                                                                The unities of stakeholder
                                                                                                                become end-to-end nodes
                                                                                                                of networking platform
                                                                                                                rather than points of linear
                                                                                                                process chain.

                                                                                                       External opportunity capturing and internal
                                                                                                                 mechanism innovation

               Hierarchy               Inverted triangle                    Dynamic network organization

                                                                                                                                              11
Talent Management Model Change

          Resources gathering and dispersing based on goal and customer needs

         Reward by value added; Profit sharing based on performance against target

                          Human capital management in a Wiki way:
                                  On-line employee rather than
                                      contracted employee

                                                                                     12
Performance Management Transformation

                 Haier Strategic P/L

     (I) Interactive users               (II) Human resource (ZZJYTs)
            (strategy)
 Leading competitiveness of              The ecosystem of ZZJYT
 interactive users is the key,           parallel connection platform
 or the core                             under opening system
                                 ZEUS
                                 model

  (III)Zero difference (161)             (IV) Closed-loop optimization
                                              (the rewards system)

Daily conclusion goals under
the principle of three zeros             Automatic optimization cycle
(Zero inventory, zero signature,         of individual-goal                                Haier 2-D Matrix
zero redundancy)
                                                                                                                                                       Leading
                                                                                                   Y (strategic performance)
                                                                                                                                                   competitiveness

                                               10 Zones each has leading targets for different
                                                                                                       Zone 10 - target
                                               quadrant.
                                                                                                  - zone 8
                                               Between Zone 2 to 10 are to create user value      - zone 6
                                               in stages from templates to the whole.             - zone 4

                                                 Building the parallel connection platform
                                                system, closing the gap by implementing the
                                                individual-goal positive feedback mechanism           Zone 2 - basics
                                                and motivating ZZJYTs to create added value
                                                and to be the best performance COI.
                                                   Allocating all the company’s liabilities to                                              X (market competitive)
                                                   each individual and everyone taking the              Zone 1 - prerequisite
                                                   responsibility for performance and goal.                      2             4     6         8            10

                                                                                                             average      average   No. 1    Leading     Continuous
                                                                         Quadrant I - IV                                    1.2x                        improvement
                                                                                                                                                               13
Performance Management Transformation(Con’t)

                                         Subordinate

                                                       Customer
                       Superior

                                  Peer
       Item                                                                                        BD
                                                                                             online interaction

       Target
    Ownership                                                                                                                Design
  Customer Focus                                                  Marketing
                                                                  0 distance
                                                                                                                        super experience

      Integrity                                                                              Customer
                                                                                            Customer 360 °
                                                                                           360evaluation
                                                                                                evaluation
        Best
   Performance
     Incentive
    Team work
    Confidence                                                                 Logistics
                                                                          On-time delivery
  Communication                                                                                                   0 defect
   Authorization
        Skill
   Development

        Traditional 360 ° evaluation                                              Customer 360° evaluation
        (classic practices by multi-nationals)

                                                                                                                                           14
Employee Transformation

                          New role of employee : I am my own CEO.

                                                                                        Micro company
                                                                                                                     Different external
                                                                        Micro company                                parties including
                                                                                                                     customer, supplier
                                                                                                     Micro company

                                                                Micro company
                                                                                                                     joint Haier to
                                                                                Haier’s Platform                     become community
                                                                                                                     of interest to meet
                                                                                                     Micro company

                                                                    Micro company                                    the customer needs
                                                                                     Micro compnay                   and goal , they
                                                                                                                     create and share
                                                                                                                     the value added on
                                                                                                                     Haier’s platform.

         Command                         Resources                               Entrepreneur & CEO
          receiver                        interface
 (Employee follow the command     (Employee interact with the     (Micro companies incubated on Haier
          passively )             customer needs and global        platform, gathering and dispersing
                                         resources)                     based on customer needs

                                                                                                                                     15
Challenges of Global HR Management
There are plenty of issues to consider and balance in Global HR Management

1. Strategic alignment cross countries

  2. Cross-cultural adaption and language barrier

    3. Consistency and differentiation of HR policy and processes among region

        4. HR compliance with local country’s labor law

             5. C&B design for employees in varied economic environment

                 6. Platform to handle complex global HR management

                                                                   Decentralization?

            Centralization?

                                                                                       16
Challenges from Business

                               How to
                             motivate my
         Where are my         talents to
          talents and          achieve
         who are they         business
          around the         objectives?
             world?
                                             How can HR work as a strategic
                                              business partner to drive the
            Where is the                       business change under the
            most effective    Is my
                                                     internet era?
              place for       organization
               Supply         healthy?
               Chain?

                                                 Dancing with Business

                                                                      17
I. Introduction of Haier

II. Haier’s Global HR Management

III. Haier’s HRIS - Workday

                                   18
Roll out Overseas HRIS Workday Project at the Right Time

From strategy to implementation, HRIS project paves the way of transforming
challenges into achievements in the internet era by cloud technology

                  Aligned global                 Proper HR process to
                 business and HR                 sustainably realise the
                     strategy                           strategy

                               Technology platform to
                               implement the process

                                                                              19
What Can Workday Bring To You?

               • Provide a holistic view of company and its workforce
 Executives    • Provide comprehensive data to Executives to make strategic
                 decisions

               • Make the process efficient and accurate
    HR         • Enable HR teams to act as business partners

               • Provide managers a more strategic people management role
  Managers     • Provides a dashboard of reliable and comprehensive
                 workforce data

               • Incorporate self-services functions, for example keep a timely
 Employees       tracking of their various application processing status

                                                                              20
HRIS Management Overview

Strategic Decision                 360° Talent Searching Engine       Talent Management

- Big data deployment               - Global talents network          - Identify talents
- Data accuracy and on real time    - Holistic view of organization   - Use best fit talents for
                                    and people                        achieving business objectives

                                              Base
                     Personnel Information, Org, C&B, Processes & Policies etc

                                                                                                 21
HRIS Management Overview

Strategic Decision                 360° Talent Searching Engine       Talent Management

- Big data deployment               - Global talents network          - Identify talents
- Data accuracy and on real time    - Holistic view of organization   - Use best fit talents for
                                    and people                        achieving business objectives

                                              Base
              Personnel Information, Org, C&B, Processes & Policies etc

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