Thought Leaders Retreat
September 23, 2008
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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
• Process/job redesign
- Automate
- Offshore/Outsource
• Invest in education and
vocational training
• Improve public-private
initiatives
• Encourage prolonged work
life
• Corporate initiatives
3
HR leadership
Value creation
in the
business
Value
creation
within HR
1
Getting “in tune” with the CEO and Board, using an HR lens to shape a collective people
agenda that maximizes value creation
2
Operationalizing the value-creation
agenda through effective planning and
performance management
3
Leading cross-company initiatives
to drive growth and productivity
4
Communicating progress against the value-creation framework to internal and
external stakeholders
5
Building the organization and talent levels to create a “Gold standard” HR organization
6
Running lean HR operations that are a reference case within the company for adding
value at a competitive cost
7
Managing business risk by achieving best-in-class performance for specialty HR
functions (e.g., recruiting, employee relations)
5
Leveraging the Value-Profit-Chain…At SYSCO
Innovation
Effective
Management Drives
Practices
Employee
Drives
Satisfaction
Customer
Drives
Satisfaction
(1)
SYSCO Practices:
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Leadership Support
Front-Line Supervisor
Rewards
Quality of Life
Diversity/Engagement
Customer Focus
Execution
Long-Term
Profitability
&
Growth
Key Metrics/Shared Practices is Working at
SYSCO
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.
Safety Update
5,000 Fewer People Injured Each Year
Shifted the curve in Safety!
Approxim ately 50% im provem ent for both benchm ark groups and a
50%reduction in the perform ance gap.
Work. Comp. Costs to Sales (%)
Annual savings: $20 million
0.60%
0.52%
0.50%
0.44%
0.40%
0.27%
0.30%
0.23%
0.20%
0.10%
0.08%
0.04%
0.00%
Top 25%
Bottom 25%
.23%
FY 1998
1998 Gap
Top 25%
Bottom 25%
.13%
FY 2001
2001Gap
Leadership
HR strategy
• Establish a performance culture, assessment of
• Become sparring partner of top management
• Leadership quality (and quantity) not matching
• Assess impact of business early on and drive
performance/potential
demand of business
(CEO/COO)
solutions
• Drive internationalization (of culture and
organization)
HR development
• Become the employer of
choice
• Step-up talent management and rotation
HR function: Multi-dimensional
• Overall set-up to deliver maximum
value to business "HR transformation"
• Deliver administrative HR-services cost
efficiently
• Build skill base beyond HR
• Address aging workforce phenomena
HR management
• Focus IR negotiations on
life time employability and
incentivizing comp &
benefits systems
• Professional management of restructuring
• Truly support local management in HR-related
issues
• Manage employment costs and flexibility
10
SHRM 2008-2009 Workplace
Trends
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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 2008-2009 Workplace
Trends
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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
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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
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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