The rules are changing PwC HRD Pulse Survey 1 July 2014

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The rules are changing
PwC HRD Pulse Survey
1 July 2014
HRD Pulse survey results
Ger McDonough
PwC
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1 July 2014
2
Who participated?
Multinationals
44%
Public companies
headquartered
in Ireland
14%
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Private companies
34%
Semi-state bodies
8%
1 July 2014
3
Themes Explored
Talent
Management
Global
Mobility
Confidence
Future & key
HR Priorities
Survey
Topics
Attracting
Leadership
HR Function
& the
Business
Recruitment
Reward
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HRDs view on rising confidence
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A view that is shared by CEOs
Yet rising
labour costs
are top business
threat
according to
Irish CEOs
81%
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Skill shortages a recognised barrier
78% of Irish HRDs are
reporting skill
shortages
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Cause for concern for
CEOs too
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So what is happening with talent – views from
both HRDs and CEOs
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Existence of talent management programmes
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Effectiveness of talent management programmes
The true cost of
losing key talent is
equivalent to 6-24
months’ salary
Source PwC
Saratoga
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The impact on reward?
By 2016 up to 80% of the
global workforce could be
millenials.
41% of millenials prefer to
be rewarded or recognised
for their work at least
monthly.
Source PwC / successfactors
white paper
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The barriers for the HR function in terms of
adding value
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Top HR Internal skills gaps?
16% of Irish CEOs are
happy with information
they receive on ROI in
human capital
CEO Pulse Survey 2014
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What is HR measuring?
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Top HR priorities for next 18 months
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Some Key Messages Emerging
Skill shortages and talent
constraints are still
significantly impacting
business performance
The discipline of analytics (and
demonstrating value) continues
to be a struggle for HR Leaders
To remain relevant and impactful, HR needs to...
..grasp the talent nettle
... equip itself with the
necessary capability and
tools - now
The rules are changing, HR need to adapt to prosper
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HR: Partnering with the business
to deliver in 2014
1 July 2014
Iain F. Witherington
SVP HR
Kerry Group
Our business
1 Kerry
Our HR strategy
Our business structure
Ingredients & Flavours
Consumer Foods
Americas Region
Ireland
EMEA Region
The UK
Agribusiness
Ireland
Asia-Pacific Region
HR: Partnering with the business to deliver in 2014
3
Success metrics
Revenue growth (LFL volume)
Adjusted EPS* growth
10%+ p.a.
Kerry Ingredients & Flavours
4% to 6% p.a.
Consumer Foods
2% to 3% p.a.
Group
3% to 5% p.a.
Margin expansion
Kerry Ingredients & Flavours
50 bps p.a.
Consumer Foods
20 bps p.a.
Group
30 bps p.a.
*before intangible amortisation and non-trading items
HR: Partnering with the business to deliver in 2014
4
Revenue & adjusted EPS* 1986-2013
Revenue (€m)
Adjusted EPS* (cent)
7000
5,837
6000
300.0
257.9
250.0
5000
200.0
4000
150.0
3000
100.0
2000
50.0
1000
0.0
0
1986
1989
1992
1995
1998
2001
2004
2007
2010
2013
1986
1989
1992
1995
1998
2001
2004
2007
2010
2013
* before brand related intangible asset amortisation and non-trading items | Year 2012 – restated to reflect the adoption of IAS 19 (2011) Employee Benefits
HR: Partnering with the business to deliver in 2014
5
Kerry Foods a leading manufacturer of added-value
branded and customer branded chilled foods to the
UK and Irish consumer foods markets.
HR: Partnering with the business to deliver in 2014
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Kerry Foods diversified product portfolio
Meat & Savoury
GB
Sausage
Ireland
Dairy
GB
Yellow Fats
Meal solutions
GB Ready
to Cook
Ireland
GB Frozen
Ready Meals
Ireland
GB
Rasher
€6.7BN
GB
Pastry
GB
Cooked Meats
€4.9BN
GB
Cheese
€3.7BN
GB Chilled
Ready Meals
• #1&2 breakfast product brands in Ireland
• Largest branded dairy supplier in Ireland
• #1&2 cooked meat brands in Ireland
• #1 spreads brand in Ireland
– chilled ready meals
• #1&2 sausage brands in GB
• #1 kids cheese snack in GB
– frozen ready meals
• #2 (fastest growing) meat snacking brand in GB
• #1 customer brand dairy spreads and
RTE cheese in GB
– ready to cook
• #2 customer brand pastry in GB
HR: Partnering with the business to deliver in 2014
• #1 GB customer brand supplier of:
7
Kerry provides the largest, most
innovative portfolio of taste & nutrition
systems and functional ingredients &
actives for the global food, beverage
and pharmaceutical industries.
HR: Partnering with the business to deliver in 2014
Connected,
Unique,
Innovative
Leading sensory,
applications
and culinary
8
Kerry’s leading taste position
No.1 globally
for Taste and
Ingredient
Solutions
HR: Partnering with the business to deliver in 2014
Leading
Sensory,
Applications
& Culinary
Expertise
Food &
Beverage
Focused
Top 5
Player in
Global
Flavours
9
Worldwide success
Head Offices
Manufacturing Plants
Sales Offices
HR: Partnering with the business to deliver in 2014
10
Acquisitions 1987-2013: Strength in numbers
19
Food companies
Including:
Mattessons
Wall’s
Golden Vale
Noon Products
Brecco Foods
Headlands Foods
HR: Partnering with the business to deliver in 2014
89
Food ingredients, flavour & food service companies
Kerry Jackson
Beatreme Food Ingredients
Dairyland Products
Malcolm Foods
Research Foods
SPI Foods Inc.
Kerry de Mexico
DCA, DCA Solutech
Ciprial S.A.
SDF Foods
Dalgety Food Ingredients
Star & Arty Ingredientes
Burns Philp Ingredients Div.
Três Corações
Tukania Gmbh
Shade Foods (SFI)
York Dragee
Armour Food Ingredients
Alferi Laboratories Inc.
Corol S.A.
Creative Seasonings
Iowa Soy
San Giorgio Flavours
Tingles Ltd
Nutrir S.A.
Geneva Flavours
Hickory Flavours
Voyager Foods
Siber
Aromont S.A.
Stearns & Lehman
Ringger Foods
Roskam
IDSA
EBI
Rector Foods
IFI
St Louis Flavors
Metarom
SunPure
Pacific Seasonings
Guernsey Bel
Crystals International
Da Vinci Gourmet
Oregon Chai
Extreme Foods
Quest Food Ingredients
Cremo Ingredients
Flavurence
Laboratorios Krauss
Fructamine
Manheimer
Ernsts Food Ingredients
Lanli Food Industry Company
Custom Industries
Nuvex Ingredients
Titusfield Ltd
Sugar & Spice
Shanghai Vega Fragrance & Flavour
Presco Food Seasonings
Can Pan Candy
Fountainhead Manufacturing
QA Products Inc
X-Café LLC
PT Armita
Prima S.A.
Dera Holding NV
IPM Foods
NutraCea’s cereal ingredients
Tea Wave
Agilex Flavors
GM’s Australian lifestyle bakery
KMC Foods
Newmarket Creameries
SpringThyme Oils
Caffe D’Amore
CF Chefs
EBI Cremica
General Cereals S.A.
Cargill’s flavour business
SuCrest GmbH
FlavourCraft
Lactose India
IJC Fillings
Millennium Foods
Griffith do Brasil
Big Train
Angsana Food Industries
Food Spectrum Group Pty
Orley Foods
WynnStarr Flavors
11
End use markets
Savoury & Dairy
● Dairy
● Meat
● Prepared meals
& side dishes
● Savoury snacks
● Soups, sauces & dressings
HR: Partnering with the business to deliver in 2014
Cereal & Sweet
● Bakery
● Cereal & bars
● Confectionery
● Ice cream & desserts
Beverage
● Alcoholic beverages
● Dairy beverages
● Dairy beverages
● Nutritional beverages
● Soft drinks
● Tea & Coffee
12
Our customer channels
Retail
HR: Partnering with the business to deliver in 2014
Food service
Retailers
13
Growth strategies
Taste
Nutrition
Developing Markets
Organic & Acquisitive Growth
HR: Partnering with the business to deliver in 2014
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Business focus
● 1 Kerry business model to leverage know
how and scale
 Go To Market Strategies
 Kerry Excel
 Kerry Connect
● Increased productivity
● Accelerated growth in emerging markets
● To acquire and grow strong leaders
● Lead people through change and beyond
HR: Partnering with the business to deliver in 2014
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Naas Global Technology Centre Facts
● Is the focal point for taste and nutritional innovation.
● Set on 28 acres in the Millennium Business Park, Naas, Co. Kildare, Ireland
● Building completion expected early 2015
● Will be home to 800 employees including over 200 RD&A scientists.
Pilot
Plant
HR: Partnering with the business to deliver in 2014
Sensory
Rapid Fire
Flavour/Taste/Texture
Nutrition
Analytical Lab
R&A Labs
Beverage Suite
Food Suite
General Wellness
& Nutrition Suite
Office
Space
16
The values that have sustained us
Cultural Strengths .. Our Heritage & A Solid Foundation for the Future
Energy, Drive Commitment
Belief in People
Belief in Kerry
Risk Taking
Desire to Win
Commercial Focus
Irish Heritage & Roots
Passionate
Customer Focus
Teamwork
Learning from Mistakes
High Personal Ownership
High Trust and Ethics
Do What it Takes
Change Orientation
Close knit Leadership Cadre
Entrepreneurial / Innovative
Execution Focus
HR: Partnering with the business to deliver in 2014
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Kerry’s transition – Bringing it together
From sum of parts…
SBU Focus
EMEA/US Focus
Do whatever it takes
Hero managers
Remuneration practices based on history
Irish companies working globally
Duplication of activities
Reactive
Inconsistent people data
HR: Partnering with the business to deliver in 2014
…To value of whole
>
>
>
>
>
>
>
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Customer / Consumer Focus
Strong Customer Focussed Regions
with Global Capability
Focussed and Effective
Team Coach
Aligned practices that recognise
and reward performance
Global Company with Irish roots
Aligned people practices and tools
Aligned people practices and tools
Decision Support
18
Changing requirements for leaders
HR: Partnering with the business to deliver in 2014
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Building a growth machine: 1 Kerry
● 1 Kerry requires people to work, think, act differently, this creates both opportunity and uncertainty.
● 1 Kerry requires effective matrix management which in turn requires high performing
Leadership Teams and a clear Governance Structure to enable effective cross business/cross functional
interdependency.
● This is a pivotal time in Kerry’s history. With significant changes to our organisation and ways of
working (along with substantial external hiring) our challenge is to help people be successful
through the changes and beyond.
● Our challenge is organic growth. We are building the infrastructure and need to deepen our skills
and capabilities to grow sustainably with our large accounts and in developing markets.
● Employees want to be part of the journey: to hear an aligned, transparent message in terms of
– Who we are – what shapes us and what we stand for
– Where we are – what are the opportunities we have and the challenges we face
– Where we need to be – what are our aspirations, and hence how people can help us get there
HR: Partnering with the business to deliver in 2014
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Our HR objective:
Align the organisation with
1 Kerry and set our people
up for success to grow
the business
HR: Partnering with the business to deliver in 2014
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Business focus
Opportunities to improve
business performance
HR organisational structure
Global HR Leadership Team
● HR has demonstrated an increased ability to
enable business strategy over the past 3 years
● There is more we can do to drive better
business performance through our
people agenda
● We need enable scalability and agility, and
optimise our assets and people – better data,
better decisions, better business
● HR can contribute to our 1 Kerry business
EMEA
HR
Americas
HR
APAC
HR
Foods
HR
Scalable Global Processes and Tools
Group HR
strategy, and leverage cross business
capabilities to improve efficiency and agility
HR: Partnering with the business to deliver in 2014
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Initially focused on 3+1 priorities
Key HR features
● Enable agility and scalability
Integrated Performance Management
(reduce complexity)
● Increased performance orientation
& differentiation
● Building talent for a global organisation
● An employer of choice globally
1
2
3
Pipeline of
Talent to Win
Rewards &
Recognition
Helping People
be Successful
Tools to recognise
performance
Hearts
& Minds
Find, Hire, Asses,
Develop, Deploy
HR Infrastructure
Operating Model and Capability
HR: Partnering with the business to deliver in 2014
+1
23
Integrated HR, Enabling Strategy
1 Kerry
People & Organisation Capabilities
Pipeline of Talent To Win
Recruitment Process
and Headcount
Management
Talent Review, Career
Development,
Succession Planning
Leadership Framework
Learning and Development
Tools To Recognise
Performance
Hearts and Minds
Develop Global Rewards
Framework
Engaging and Enrolling
Employees in our Journey
HR Operations (HR Shared Services: Payroll & Other Transactional Activities)
Process Development and Change Management
Data Analytics and Governance (Security; Maintenance; Reporting, KPI’s)
Global System Development, Reporting, Help and Support. (SAP HCM, Kronos, Sharepoint, SeviceNow, etc…)
EPS +10% • Customer Intimacy • Employee Engagement
HR: Partnering with the business to deliver in 2014
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HR linkage to business strategy
Kerry Group global strategy
Foods/Ingredients & Flavours
Regional/Business strategies (NA,LATAM, EMEA, APAC, Foods)
Developed markets & Emerging markets
HR strategy
Globally aligned
Regional/Business implementation
HR: Partnering with the business to deliver in 2014
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For more information please contact:
Iain Witherington
SVP HR
[email protected]
Thank You!
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