Haier’s Global HR Management
- HR Transformation in the Internet Era
Xiaonan Wang
Haier Group HR Director
1
I. Introduction of Haier
II. Haier’s Global HR Management
III. Haier’s HRIS - Workday
2
I. Introduction of Haier
II. Haier’s Global HR Management
III. Haier’s HRIS - Workday
3
Introduction of Haier
Before
Today
5 R&D Centres
24 Manufactories
80,000 Employees
World’s No.1 major appliance
brand for four consecutive years
18 Countries
61 Trading Companies
Profit CAGR: 35% from 2007 to 2012
9
……
USD 25.8 billion Turnover
Haier ranks No. 8 in “The World’s
Most Innovative Companies” list
8
7
6
1
8.6%
5
4
3
2
5.5%
2
1
0
3
4.2%
RMB
billion
•Haier is the only Chinese brand
among the top ten Companies list.
•Haier ranks the best among
enterprises of consumer and retail
sector
Source: Euromonitor, ranking according to retail
volume sales in units based on brand 2012 data
4
Haier Brand
5
Haier Product – Solution for Smart Home
6
Haier’s Strategies
Create Haier Brand
Create Haier Individual-Goal
Combination Model
7
Haier’s Exploration of Networking Strategy and Structure
Determine
Win-win model of
individual-goal
Strategy
Structure
combination
Ecosystem of
ZZJYT parallel
connection platform
under opening
system
Follow
8
Haier’s Transformation in the Internet Age
After
Before
Transformation through
cloud platform
Platform of product resources & channel service
Platform of mechanism and culture
Haier creates competitiveness of single brand
Platform of open resources
Platform of mechanism and culture
Haier creates platform competitiveness of multi-brands
There are no successful enterprise but only enterprises changing with the times.
Mr Zhang Ruimin
9
I. Introduction of Haier
II. Haier’s Global HR Management
III. Haier’s HRIS - Workday
10
Organization Change
Strategy
Self-organization
decides
(Win-win Model of
Employee-Customer
Integration)
Self-ownership teams bid to join the unity of
stakeholder to create value added
driver
Organization
Sharing value added and optimizing constantly
Self-driven
Former
department
s
Former
Partner
Former
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
(strategy)
(II) Human resource (ZZJYTs)
Leading competitiveness of
interactive users is the key,
or the core
The ecosystem of ZZJYT
parallel connection platform
under opening system
ZEUS
model
(III)Zero difference (161)
Daily conclusion goals under
the principle of three zeros
(Zero inventory, zero signature,
zero redundancy)
(IV) Closed-loop optimization
(the rewards system)
Automatic optimization cycle
of individual-goal
Haier 2-D Matrix
Leading
Y (strategic performance)
competitiveness
10 Zones each has leading targets for different
quadrant.
Between Zone 2 to 10 are to create user value
in stages from templates to the whole.
Building the parallel connection platform
system, closing the gap by implementing the
individual-goal positive feedback mechanism
and motivating ZZJYTs to create added value
and to be the best performance COI.
Allocating all the company’s liabilities to
each individual and everyone taking the
responsibility for performance and goal.
Zone 10 - target
- zone 8
- zone 6
- zone 4
Zone 2 - basics
X (market competitive)
Zone 1 - prerequisite
2
average
Quadrant I - IV
4
average
1.2x
6
No. 1
8
10
Leading
Continuous
improvement
13
Performance Management Transformation(Con’t)
Target
Ownership
Customer Focus
Integrity
Best
Performance
Incentive
Team work
Confidence
Communication
Authorization
Skill
Development
Traditional 360 ° evaluation
Customer
Subordinate
Peer
Superior
Item
BD
online interaction
Design
Marketing
super experience
0 distance
Customer
Customer
360 °
360evaluation
evaluation
Logistics
On-time delivery
0 defect
Customer 360° evaluation
(classic practices by multi-nationals)
14
Employee Transformation
New role of employee : I am my own CEO.
Micro company
Micro company
Micro company
Micro company
Haier’s Platform
Micro company
Micro company
Micro compnay
Different external
parties including
customer, supplier
joint Haier to
become community
of interest to meet
the customer needs
and goal , they
create and share
the value added on
Haier’s platform.
Command
receiver
Resources
interface
Entrepreneur & CEO
(Employee follow the command
passively )
(Employee interact with the
customer needs and global
resources)
（Micro companies incubated on Haier
platform, gathering and dispersing
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
Where are my
talents and
who are they
around the
world?
Where is the
most effective
place for
Supply
Chain?
How to
motivate my
talents to
achieve
business
objectives?
Is my
organization
healthy?
How can HR work as a strategic
business partner to drive the
business change under the
internet era?
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
business and HR
strategy
Proper HR process to
sustainably realise the
strategy
Technology platform to
implement the process
19
What Can Workday Bring To You?
Executives
HR
• Provide a holistic view of company and its workforce
• Provide comprehensive data to Executives to make strategic
decisions
• Make the process efficient and accurate
• Enable HR teams to act as business partners
Managers
• Provide managers a more strategic people management role
• Provides a dashboard of reliable and comprehensive
workforce data
Employees
• Incorporate self-services functions, for example keep a timely
tracking of their various application processing status
20
HRIS Management Overview
Strategic Decision
360° Talent Searching Engine
- Big data deployment
- Data accuracy and on real time
- Global talents network
- Holistic view of organization
and people
Talent Management
- Identify talents
- Use best fit talents for
achieving business objectives
Base
Personnel Information, Org, C&B, Processes & Policies etc
21
HRIS Management Overview
Strategic Decision
- Big data deployment
- Data accuracy and on real time
360° Talent Searching Engine
- Global talents network
- Holistic view of organization
and people
Talent Management
- Identify talents
- Use best fit talents for
achieving business objectives
Base
Personnel Information, Org, C&B, Processes & Policies etc
22
23