5. European Strategic Architecture
= Well advanced Gold text = Europe
= Implementation
White text = Global
▲ = Scoping & development
Business Customers / Technology People
Processes Markets
Hertz Brand campaign Best in class Organisation review
Improvement ▲Customer website Pulse survey
Process experience Strada (Claims Internal
Driving Excellence Fleet collections Management communications
Net Promoter Value brand System) Talent management
Score ▲Replacement P2P (Purchase to Training and
Total Value Vans and Trucks Pay) rollout development
Management Ancillary revenue Rate engine / TAS Sales effectiveness
Asset Backed Acquisitions rewrite ▲Rewarding
Securitisation Network New HR system performance
Supply Chain expansion Self-service
Management kiosks, telematics
6.
7.
8. “Innovation Trophy” 2007 for innovation in the area of Training and Development
On Wednesday 24 October 2007, Hertz France received the “Trophy for Innovation” in Training and Development presented during the annual
National Rental Car Associations open day. This trophy recognises Hertz France for the creation of an internal university – “Université des Métiers”.
This university was created in order to accompany, communicate and facilitate employee comprehension of France’s new training laws which amongst
other things allocates an annual 20 hours of training time to each and every employee.
9. “Professional Training” – New laws in France – making them visible and comprehensible
In January 2006 the « Training Department » of Hertz France was transformed into the « University des Métiers » with the objective of providing a
visual explanation to employees of the new training laws put in place following the 2004 Reform of Professional Training in France :
New laws require that the company’s annual training plan be presented according to three different categories of training:
1. Adaptation to ones work post (Adaptation au poste de travail)
2. Job evolution and the development of the necessary skills to maintain ones competivity (Evolution des emplois et maintien dans le poste)
3. Development of Individual competencies and skills (Développement des compétences professionnelles).
In order to allow each employee to both understand why and how a training course relates to their individual situation and into which of the three
categories the courses presented in our annual training syllabus fall, our 2006-2007 Training Catalogue was accordingly organised around the theme of
excellence. We strongly believe that individual excellence and organisational excellence are both beneficial to a company - excellent people are
attracted to excellent organisations and at the same time excellent organisations tend to inspire individual excellence internally.
10. Thus we organised and regrouped our different training classes as follows:
EXCELLENCE –(The Way of Excellence) - (adaptation au poste de travail) –The entire processes of employee induction
LE CHEMIN D’
EXCELLENCE - (The Road to Excellence) - (évolution des emplois/maintien dans les postes) –all training programs that permit
LA ROUTE D’
employees to keep up with technological and social evolutions.
EXCELLENCE - (The Highway to Excellence) - (développement des compétences) –all training and development that permits
LA VOIE D’
employees to develop their individual skills and competencies.
11. In 2006 the Université des Métiers presented its annual training catalogue (Guide de formation 2006) according to this new organisation:
The notion of targeted competencies also appears in our catalogue with each training class detailing the skills and competencies that the participant
should be able to demonstrate upon his/her return to the workplace.
We define competency as the capacity to produce a successful action in a work situation and we believe that these competencies consist of
behavioural repertories that certain master/manage better than others enabling them to be more efficient in a given work situation. These behaviours
are observable in daily work life and put to work, in an integrated manner, the individuals’ aptitudes, personality traits and acquired knowledge.
Individual behaviours thus represent a link between an individual’s personal characteristics and the professional qualities required to successfully
execute precise missions and tasks in the workplace.
12. Our objective is to evolve from training our employees to providing them with the skills and competencies necessary to successfully execute their roles.
Training does not make any sense if it is not thought out with a logical analysis of its practical utility in a work situation, and if not constructed with a
view to contributing to a project whose objective is to develop both the company and the employee.
For Hertz it is vital to identify and develop globally the competencies and practices that contribute to the best performances. The objective of the
“Université des Métiers” is to cultivate and develop a competitive advantage by excellence in continuously developing precise and perennial employee
competencies and in turn developing the company through the sum of its individual employee skills and talents.
13. Our internal university is built upon the three fundamental needs of any human being:
CLIENT INTERNE CLIENT EXTERNE
OUR NEED TO BELIEVE IN SOMETHING (Notre besoin de croire en quelque chose) :
* My own future, the future of Hertz and thus my employment *The products and services offered by Hertz
OUR NEED TO BELIEVE IN SOMEONE (Notre besoin de croire en quelqu’un) :
* My Colleagues, my Manager, my President * The men and women that rent me my car
OUR NEED FOR SOMEONE TO BELIEVE IN ME :
* Me as an individual * Me, the customer to which Hertz offers its and services
14.
15.
16.
17. The DIF or « Droit individuel de Formation » (individual right to receive training) allocates 20 hours of training time annually to each employee. These
training hours can be used for any training and development that permits an employee to develop his/her competencies and is subject to written
agreement between the employee and employer. The employer has the right to refuse the request if the employer deems that the training requested is
not in-line with the company’s strategy. Concerning the DIF, Hertz’s’ objective is to provide a managed framework for the utilisation of individual DIF
hours without impeding the “individuality” of the request. In order to accomplish this objective Hertz has worked on 4 key points:
1. Hertz has adopted and communicated to its employees a clear training and development strategy :
18.
19.
20.
21.
22.
23.
24.
25. 2. Hertz has reinforced the processes of employee induction – Cycle “The way of Excellence”.
42. 3. Hertz has built its DIF offer around the “entretien professionnel” (Individual Professional Evaluation) which becomes the corner stone
of our training offer.
43.
44. 4. We have communicated visually the different means of training available for employees with the objective that each employee
becomes an actor in his/her own development.
The Individual Professional Evaluation (Entretien Professionnel) in 2008 will become the corner stone of our DIF training offer. As the various training
laws introduced by the reform stipulate that all employees must have access to life long training possibilities, we will use Professional Evaluation to
better prepare our management teams for this new responsibility – the initiative to send an employee to a training program is no longer the unique
initiative of the company; the employee now becomes co-actor, as an individual, in the determination of his own training and development.
THe DIF represents the right for any employee, at their initiative, to initiate a negotiation with their employer in order to participate in a training program
of their choice, (financed by the company) by using the DIF training hour available to them.
Hertz’s objective is to use the Individual Professional Evaluation “Entretien Professionnel” as a platform for the introduction of the DIF. A platform
around which both the annual training plan and additional DIF training offer will be constructed. Thus, the “Entretien Professionnel” affirms itself as the
key tool for the management of individual and collective training and development needs for the future.
45. Hertz’s objective is to use the « Entretien Professionnel » to provide:
• A better management and measure of individual and collective employee skills and competencies;
• A constructive dialogue between the manager and the employee;
• A better match and synergy between the company’s annual training plan and the company’s strategic development needs;
• A real recognition of individual contributions and motivation factors;
• Increased performance at every level.
The DIF training offer is constructed around the « Entretien Professionnel ». Hertz, France adheres to the DIF concept and in order to facilitate
employee use of their DIF hours, has integrated a DIF training offer into its annual training plan. The DIF is thus:
• A credit of individual training hours;
• The right to take the initiative to ask;
• An incitation to a negotiation « win-win » outcome;
• An incitation to contractualise the decisions taken during the fore-mentioned negotiation;
• An additional legal framework that can be used to organise employee training and development.
46. The development of the DIF requires a closely managed training offer that reflects both the needs of the company and the individual skills and
competencies required by employees to meet the company’s needs.
« A training offer that is constructed in parallel with the company’s strategy -; accessible by the bias of an
individuals DIF hours - providing the opportunity to participate in various additional training classed presented
and financed by the company ».
The essential steps necessary to succeed in the set up and execution of this new DIF training offer are:
• Motivate our employees to train and develop themselves.
• Channel individual requests toward a training offer validated by the company
• Negotiate two party agreements on the conditions of participation and results expected of the training
47.
48. New Management Training Syllabus constructed Vision of the construction of a DIF offer - November 2005
49. Our new management training syllabus designed to accompany managerial development from the beginner to the experienced manager. These
management courses are available to all employees via the use of their DIF hours or via the company’s annual training plan.
50.
51. In order to kick-off the DIF training offer the “Université des Métiers” wanted to propose English language training in order to better prepare Hertz
France employees for the ever increasing need to communicate in English, and this by means of E-Learning.
52.
53.
54. In July 2006, we kicked-off an on line English language training programme, “Global English” which was made accessible to all employees on condition
that they had an internet connection and personal e-mail address at home. Each participant signed a learners agreement (contract) agreeing that in
counterpart to Hertz paying for their one year access to the Global English Internet Site, they agreed to complete at lease 7 activities per month or
approximately 90 minutes of E-Learning/month and this during their own time.
Each participant was required to provide written motivation as to why they wanted to improve their English Language skills (see above « contrat
d’apprentissage »). The programme was kicked off by Monsieur Eric POKROVSKY, President of Hertz France at the time (See e-mail below).
The first full year of on-line language learning was completed in July 2007, with 250 participants who completed 18 000 hours of learning for 22, 362
activities completed. This represented a ROI (return on investment) of 9€ per hour of study.
55. At the end of each month, the President of Hertz France sent a monthly report to all participants and their respective management. This report divided
learners into 3 different categories – “those that need to be congratulated for going beyond the number of activities stipulated in the learners
agreement “, “those that need to be thanked for respecting the number of activities stipulated in the learners agreement” and finally “those
who needed to be encouraged because they hadn’t managed to respect their learners agreement”.
56. For almost 2 years the Univérsité des Métiers has actively worked with Thompson Net G, Hertz’s US supplier of e-learning, in order to build an online
training offer. The offer today, in its pilot programme stage, is composed of more that 1500 different courses, of which a hundred or so are in French.
The DIF offer will be launched in January 2008 on the new Skillport platform.
57.
58. The benchmark for Employee Integration and the Training Passport (Photo Service – Photo Development - 400 agencies in 5 countries)
59.
60.
61. The Training Passport (passeport formation) was implemented in 2006 to allow each employee to vision his/her individual training plan and to follow the
subsequent validation of the competences acquired during training. This information is available in real-time via our internal communication platform
(Hertz Interactive Platform or HIP).
62. In order to view the training path of the employees in a particular Hertz agency, the Station Manager connects to HIP – Heading Univ. Métiers
63. Then he chooses the name of his agency – in this example we will use « Paris Airports »
64. Then appears the name of all personnel assigned to Paris Airports and the training classes that they have completed – the training classes that reflect
the company’s actual training syllabus in use.
65. Mid - 2007 we put our entire training syllabus catalogue on the HIP platform which is accessible to all employees.
66.
67.
68.
69. Planning prévisionnel 2008
Lun Mar Mer Jeu Ven Lun Mar Mer Jeu Ven Lun Mar Mer Jeu Ven Lun Mar Mer Jeu Ven Lun Mar Mer Jeu Ven
1 2 3 4 7 8 9 10 11 14 15 16 17 18 21 22 23 24 25 28 29 30 31
Réunion
J Dpt TDM 1 SP HOF GEN HOF MDL HOF
A
N CPG BF&ST
SERV HOF Séniors
GAR IA
HOF
1 4 5 6 7 8 11 12 13 14 15 18 19 20 21 22 25 26 27 28 29
Réunion
F Dpt GEN HOF CPG BF&ST DR9
E CORR SP PERF
V
CPG BF&ST DR5
TDM2 HOF SERV HOF
3 4 5 6 7 10 11 12 13 14 17 18 19 20 21 24 25 26 27 28 31
Réunion CPG BF&ST
M Dpt CORR SP DR8/4 DYE HOF
GAR CPG BF&ST
A HOF DR6/7
R
SERV HOF
PMG1 SP HOF GEN HOF LED HOF
Chemin Route Voie Congés scolaires
X AFS = Affirmation de soi (DIF) X GPO = Gestes et postures X + U RSS = Recyclage Sauveteur Secouriste
U CAR = CarRent X LED = Développer son leadership U SERV = Service Gagnant
X CG = CEGOS U LOC = Circuit de location U SEL = Sélection Ciblée
U COR = TAS correspondants U MD = Moyenne Durée U SIT = Gestion des situations délicates
X DYE = Dynamique d’une équipe X MEX = Manipulation des extincteurs U STO = Stop Contact
X IE = Intelligence émotionnelle X MDL = Mobiliser autour de la délégation X + U SST = Sauveur Secouriste du travail
U ENT = Entretien annuel & entretien professionnel U NAV = Navigator U TAN = Tactiques de l’animation
X EEV = Entretien d’évaluation X HAB = Habilitation Electrique U TAS = Découverte du système TAS
U FIN = Finance pour non financiers U PER = Perfectionnement U TDM= Technique du Management
U FFA = Faire face à des situations difficiles U PMG = Pratiques du management U TEL = Téléaction
X G&P = Gestes et Postures X + U PMP = Performance management programme U TIP = TIPS
U GAR = GAR U PNL = Gestion de performances Financières U TUT = Tuteur
U FRI = FrigoRent X PRB = Pare Brises U VCI = Visite ciblée
U GEN = Génération Excellence U QAL = Qualité
U GCC = Gestion des comptes clients
102. Delighted, loyal customers
The road ahead and partners
Motivated, trained and
rewarded employees
Leading market share and
profitability
Constant stream of new
Vision, Mission, Values products
Strategic Architecture Reduced bureaucracy
Regions Centres Shared Councils State-of-the-art technology
of Services Transparent, real-time
Expertise communications
Alpha / Genesis Europe & Global Culture of feedback and
Business Operating System
continuous improvement
Have fun and celebrate
success!
103. How do we know we’re there?
Double digit growth in targeted segments
and markets
NPS >50%, Contact ratio <1%
Gold program >40% of revenue
Best in class pulse survey result: 4.2+
Complete 10+ acquisitions within 5 years
104. European Strategic Architecture
= Well advanced Gold text = Europe
= Implementation
White text = Global
▲ = Scoping & development
Business Customers / Technology People
Processes Markets
Hertz Brand campaign Best in class Organisation review
Improvement ▲Customer website Pulse survey
Process experience Strada (Claims Internal
Driving Excellence Fleet collections Management communications
Net Promoter Value brand System) Talent management
Score ▲Replacement P2P (Purchase to Training and
Total Value Vans and Trucks Pay) rollout development
Management Ancillary revenue Rate engine / TAS Sales effectiveness
Asset Backed Acquisitions rewrite ▲Rewarding
Securitisation Network New HR system performance
Supply Chain expansion Self-service
Management kiosks, telematics
105. Alpha Europe status
New organisation implemented July 2
Finalising European CoEs including
SLA’s, funding model and recruitment
Commercial and Operating Councils now
active
Annualised savings of $27m implemented
by this year end
106. Centres of Expertise
Organisational group of experts
Global / regional / country programs
based on business requirements
Establish standards and processes
Best practice sharing, efficiency,
consistency
Deliver to agreed service levels
107. Active collaboration between Countries,
CoEs and other CoEs
Priorities / needs
Co u n t r i e s Service levels
Resources and
• • • • • costs
• • • •
CoE
10
111. Genesis update: Business Process
Re-engineering (BPR)
In Europe, three key domains:
Vehicle Rental Europe Fleet Management Europe HCM Global
Leader: Neil Cunningham Leader: Alf Thomson Europe leader: Pat Smith
17 Sub-domains, with 50 people working on
over 100 projects
Business case, project management needs,
and IT support
112. Leading BPR projects in Europe
Vehicle Rental Fleet Management HCM
Base rate upselling Daily fleet planning Strada Europe
Automated delivery & Enforcement of Fraud management
collection charges contractual terms
Self-service kiosks Recovery fuel end of life Receivables to HESC
RFID Car sales web portal Strada implementation
Damage: process Pan European car sales for US & Canada –
Turnaround efficiency structure project lead
Reduce RA pages Buyback reconditioning eARF pan-E interfacing
Optimise one ways Intelligent dispatch with Strada
Reduce no shows
Sales of super cover
113. Pulse survey: Europe
Understand Senior Team Customers Know how Motivated to # of
why we are is focused on benefit from my job help Hertz Surveys
changing future success change contributes succeed
Survey 1 3.8 3.5 3.4 4.2 4.1 3,397
Survey 2 3.7 3.4 3.2 4.0 4.0 3,953
Manager Manager acts Opportunity Intend to stay Recommend Average
listens to me on my to develop six months Hertz Score
suggestions career
Survey 1 3.7 3.4 3.2 4.2 3.4 3.7
Survey 2 3.6 3.3 3.0 4.0 3.2 3.5
114. In response to the pulse survey
Continued emphasis on communications
New Global Talent Management CoE
Many local actions took place – examples:
– More department meetings and country briefings
– Change management support to leaders
– Roll out of Net G training courses
– 10 competition winners joined
German management team event
– English courses in Italy
115. Functional Competencies
Human Agility and
Resources Adaptability Effective
Communication
Personal Operations
Accountability Drive
Pe Collaboration
l
na
Trust and op
so
Integrity le Build talent
r
Pe Th Demonstrates Initiative
lt s
Use Insightful
Finance Judgment ou su
Drives Execution
Principled
gh
t Re Displays Global
Perspective
Leadership Passion for Customer
Service
Strategic Operational Marketing
Thinking Excellence
Sales
116. The PMED system: driving a
performance based culture
Charter:
Performance
Accountability Pay for
for results performance
Management &
Employee Development
integrates people and
Execution
Feedback organisation
priorities
for results development toward
collective achievement
Business-led of the company’s short-
Integrated career training and long term
management & development
objectives.
117. Key features of PMED system
Create alignment around key result areas
Enable formal, two-way communication
Links achievements to total rewards
Reviews leadership & functional competence
Drives development and career plans
Feeds succession & high potential process
118. Simple method to
reward performance
Key Results Areas Reward
Company Impact Bonus
Objectives
Personal Set Performance
Objectives Rating
Performance Drives Total
Rating Reward
119. Performance management process
Launches the development of a performance based
culture. Focus of the 2008 plan rollout:
Create an objective picture of performance
No changes to the current bonus plan
Bi-annual reviews (mid year and end year)
Enable ongoing dialogue
Individual development and career plans
120. Europe Sales CoE mission
Win, manage and co-ordinate
multinational accounts and partnerships
Support Regions and Franchisees
through system and product enhancement
Align strategy, develop sales policies,
processes, tools
Example customers and partners
121. President
Michel Taride
Europe Sales CoE
organisation Sales Director Europe
Fabrice Quinquenel
Annette Page
(0.5)
Corporate Sales Support Manager Replacement Franchise S&M Director of
Sales Managers Sales Director Manager Travel Distribution
Breda Fitzpatrick Bridget Williams
Maxine Korobuk Edouard Brinon Anne Leonardi Gina Costa
Mathias Thill
Bruno Kauffmann Manager Airline Business
Ryanair Business Development Europe
Development Manager
Bid Coordinators Arthur de Perthuis (interim)
Enda O’Toole
Anup Sondhi Ryanair Account
Sales Automation Director Executive (Vacant) European Account
Fabia Henriques Manager Online
William Hennessy
Priya Tailor (Maternity Leave) Richard Bowden
Booking & Distribution Travel Distribution Managers in Country
Matt Hoyle (Maternity Cover) Italy (1) – Vacant
Mark Hayward Head of Online Agency
Project Executive Germany (2) – Bernadetta Kada, 1 vacant Sales Europe
Product Development
Colin Pointer United Kingdom (2) – Claire Flack, 1 vacant Arthur de Perthuis
Stuart Noel
Spain (2) – Olga Cebrian Fernandez 1 vacant
France (1) – Jacky Callieau Business Travel Managers
United Kingdon (1) – Phillipa Stone
Partnership Managers in Country Germany (1) – Adriane Petlic
France (1) – Vacant
Manager Travel Industry
Germany (1) Vacant
and Associations
Europe (Vacant)
122. Activities
Growth strategy: emerging markets,
insurance replacement business and
contract
Business highlights: Philips, BP, IBM,
Mars, AT Kearney, Gulf Air, American
Express, Michelin, Volvo
Sales transformation: joint project with the
countries
123. Europe Marketing CoE
Research trends, customer needs
Develop and maintain:
– Brand, loyalty and product strategies
– Value proposition, customer experience
and price positioning
– Products and ancillary revenues
Manage communications throughout
all sales channels and segments
– Sales force, reservations, branches,
partnerships, online
124. Europe Marketing CoE Organisation
President
Michel Taride
Director of
European Marketing
Lesley Lindberg
Assistant
Annette Page
Customer
Associations
Experience
John Andrews
Vacancy
Product Mgmt & Brand & Marketing Online Marketing Integrated Marketing Integrated Marketing
Dev Communications Programs Germany, UK, Switzerland France, Spain, Italy
Elizabeth Norris Netherlands, Belux
Gianluca Pinto (27/11/07) Jamie Stepien Sabine Wagner (Acting) Carol Gue (Acting)
David Oliver
Web Marketing Manager
Product Manager Alex Beard
Fleet Marketing #1 Club & Gold Germany France
Product Managers: Manager Sabine Wagner
Dan Gabay (Acting) Affiliate Manager Carol Gue
Isabelle Kerdat Clayton Spencer Helen Horwood Italy
Program Manager Emanuela Clementi
James Cowan Content Manager UK
Staff & Member Benefits
Christo Caratossidis Vacancy Simone Cornelio Temerity Vinson Spain
Communications
Managers Andrea Popa
Vacancy Web Analyst
Theresa Sidhu Program Manager Andy Williams Switzerland Netherlands/Belux
Ed Freeman – External Programs
Stuart Raymond (Jan 08) Isabel Klug Vacancy
Tracey Stammers Search Marketing Mgr
Vacancy
125. “State of the nation”
Fleet and interest cost increase
Market volatility
Weak $ and high oil prices
Intense competition
Stronger growth in Q3 and Q4
Restructuring and other initiatives well underway
Business Plan 08 in final stages
127. Global Organizational Learning & Development
The journey towards an integrated structure
Blueprint (November 5, 2007)
Global Talent Management CoE
Karl-Heinz Oehler
Updated: Draft
128. The strategic architecture underpins the overarching operating principle for
Global Centers of Expertise
Value Creation
Strategy
Global Succession and High Global Selection Global Performance and Global Organization
Potential Management and Recruitment Career Management Learning and Development
Change Management
HR Due Diligence Mergers & Acquisitions (Asia)
Global Organization Design
Karl-Heinz Oehler - August 2007
Updated: October 18, 2007 Global Talent Management – The people part of business planning Page - 1
129. Strategic Architecture for the Talent Management CoE
Drive budget discipline Drive organizational
and manage cost of transformation to a high
Enable acquisition due Enable effective entry
service to impact ROI performance culture
diligence and integration into new businesses and
markets
Global CoE Leadership for Best-in-Class Services Position Hertz as the Employer of Choice
Courageous leadership Create talent pools for Demonstrate Promote a global, Leverage the brand “Build a career with
to drive change timely placements business acumen diverse culture name Hertz”
Selection and Recruitment Performance and Career Organizational Learning and Succession and High Potential
Management Development Management
Identify talent and facilitate Leverage the performance Link the learning & development Identify talent and facilitate talent
movement of talent across management process as catalyst portfolio to business priorities mobility across businesses
businesses for succession and high potential Support key Hertz initiatives with Assess and close critical
Retain high potential employees management targeted training programs competency gaps
and key leaders Link total rewards to achievements Build partnerships with external Create global succession plans
Attract and retain the best talent in in key result areas learning providers Link succession and high potential
the industry Facilitate best practice sharing Facilitate 360 degree programs placement decisions to critical
Establish core leadership Cascade objectives to achieve Establish adaptable development recruitment needs
competencies execution alignment tools
Reduce turnover through better Create a feedback culture through Develop Hertz’s change
selection ongoing dialog management capabilities
Deliver consistent value to achieve internal effectiveness and external competitiveness
Provide world class Establish Hertz core Enhance organizational Facilitate and enable Design effective
selection systems competence models effectiveness organizational change organizations
Karl-Heinz Oehler - August 2007
Updated: October 18, 2007 Global Talent Management – The people part of business planning Page - 2
130. Functional Competencies
Human
Resources
Agility and
Adaptability Operations
Personal
Accountability
al
Pe
Trust and
on
op
rs
Integrity
Pe
le
Hertz
Leadership
Model Demonstrates
Finance
Initiative
Th
Use Insightful ou lts
su
Judgment gh Drives Execution
Re
t
Display Global
Principled Perspective
Leadership
Operational Excellence
Passion for Customer Marketing
Strategic
Service & Stakeholder
Thinking
Success
Sales
2007
Global Talent Management – The people part of business planning
131. Leveraging the diversity of people united by a compelling vision is
fundamental to building a global company
Karl-Heinz Oehler - August 2007
Updated: October 18, 2007 Global Talent Management – The people part of business planning Page - 4
132. What the Global Talent Management Center of Expertise stands for
Karl-Heinz Oehler - August 2007
Updated: October 18, 2007 Global Talent Management – The people part of business planning Page - 5
133. Global TM CoE value proposition – Impact on business results
Business
Results
TM CoE programs
linked to business
drivers
Challenge status-quo
and drive change
HROD Credibility
Live the values
Ethics
Business Deliver the promise Business
Integration Acumen
CoE proficiency
Company value chain Best practices
focus Customer intimacy
Systemic, business- Industry knowledge
led services Responsiveness and
Balanced scorecard achievement orientation
with TM-CoE KPIs Drive for stakeholder
Performance driven success
Karl-Heinz Oehler - August 2007
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135. The proposed charter of the Global Organizational Learning and
Development Organization
Karl-Heinz Oehler - August 2007
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136. Summary of Global Talent Management CoE practice area roles and key
services (may not be exhaustive)
Development of a strategic vision for the GOLD function
Implementation of business-led and global organizational learning initiatives
Provision of a global GOLD solution portfolio
Building of a continuous learning culture in Hertz
Provision of seamless training, development, and learning process consulting services
Translating GPCM & GSHP outputs into targeted development solutions
Annual GOLD planning & budgeting
Creation and management of an organizational learning dashboard
Link results of GOLD statistics to key business performance indicators
Access to training through flexible and adaptable delivery methods
Lead and manage the organizational learning & development function
Drive the evaluation, selection, and implementation of an OLMS
Karl-Heinz Oehler - August 2007
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137. Summary of key deliverables - (may not be exhaustive)
3 year global GOLD strategy white paper
Annual operations plan
Annual GOLD budget
Global needs analyses
Integrative development plans
Global business-led learning and development curricula
Annual training calendar
Development methodology and tools
Learning transfer tracking
External provider management
Global GOLD policy
GOLD dashboard
GOLD process consultancy services
Karl-Heinz Oehler - August 2007
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138. Global Organizational Learning and Development structure
Practice area based (5 maximum)
Lean, simple, and effective
Global coverage
Business-led GOLD portfolio
Accessible and transparent
Adaptable and fluid
Karl-Heinz Oehler - August 2007
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139. Global TM CoE impact on business results will be measured in different
ways
Organizational
P&L Lines TM CoE Touch points TM CoE Measures TM CoE Contributions
Measures
Total Revenues Cost of Sales Sales Effectiveness Program cost as % of Competence models
Pipeline opportunity cost Return on Sales Selection Assessments
Asset turns Contribution to cost of Coaching
sales Targeted development
Workforce planning
Sales Productivity Sales per person
Retention planning
<Variable Cost> Impact on Operation Market Share
Account Penetration
Gross PFT Margin % Margin Growth
<Fixed Cost> Cost of Operations G&A Cash flow contribution Targeted development
Capacity Utilization PPI as % of HR/OD Assessments
Utilization Operating cost Performance management
Yield Career Planning
Operating PFT Impact on cash flow EPS Savings from turnover eLearning
Impact on shareholder value reduction Action learning
<Corporate O/H> Resource optimization Overhead cost as % Return by % of charges Succession management
Organizational efficiency of total revenues Organization design
Organization effectiveness
PBT Organization Effectiveness
Internal customer satisfaction
<Tax>
PAT
Karl-Heinz Oehler - August 2007
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140. Net impact on bottom line implementing a three year selection and
recruitment plan (US only)
Estimated
Turnover analysis and Target change Target change
2006 change TOTALS
improvement plan (US only) 2007 to 2008 2008 to 2009
2006 to 2007
Annualized ytd turnover (People) 6,195 6,014 4,210 2,947 19,366
Average turnover cost ($) 46,462,500 45,105,000 31,573,500 22,101,450 145,242,450
Estimated gross savings from
1,357,500 13,531,500 9,472,050 24,361,050
operational efficiencies (1) ($)
Turnover cost as % of 2007 PR/B 3.03% 2.94% 2.06% 1.44%
Selection and recruitment investments
38,000 0 1,500,000 750,000 2,288,000
($)
Estimated net savings after
1,319,500 12,031,500 8,722,050
investments (1) ($)
OPT cash flow impact (cum) ($) 1,319,500 13,351,000 22,073,050
(1)
BPO
Headcount reductions
Time-to-hire reduction
Cost to hire reductions
Turnover reductions
Karl-Heinz Oehler - August 2007
Updated: October 18, 2007 Global Talent Management – The people part of business planning Page - 13
141. Fundamental analytics to establish a baseline
Current portfolio (Pareto use)
Categorize training days (by employee/by business/by program)
What happens in the field (self made or contracted)
Consulting hours/days/fees
Distribution (%) of delivery mechanism (by program/by business)
Transfer of acquired knowledge
Karl-Heinz Oehler - August 2007
Updated: October 18, 2007 Global Talent Management – The people part of business planning Page - 14
142. Group challenge for the next 2.5 days
Design the most effective global GOLD structure
Outline the “optimal” portfolio for 2008
Identify key GOLD processes
Define key touch points with other GTM practices
Ideal program delivery by major practice area
Establish key performance indicators (dashboard)
Transition plan into the new structure (timelines)
What does success look like in 12 months
Karl-Heinz Oehler - August 2007
Updated: October 18, 2007 Global Talent Management – The people part of business planning Page - 15
143. Planned Accomplishment for Next Period – Driving Execution
Focus Next 30 days Next 60 days Next 90 days
Action 1 Action 1 Action 1
T&D Analytics Action 2 Action 2 Action 2
Action 3 Action 3 Action 3
Action 1
Budget Action 2
Action 3
Karl-Heinz Oehler - August 2007
Updated: October 18, 2007 Global Talent Management – The people part of business planning Page - 16
144. CoE Practice Area Development Briefing
Global Organizational Learning & Development
What it is & How we’re going to get there
Nov 9 2007
Version 0-3
145. Becoming a CoE means big changes for L&D
1. Hertz needs something different for L&D
2. We need to re-evaluate our internal customer
3. Our internal customer needs
4. GOLD will be structured through six Practice Areas
5. Delivery routes
6. Becoming a CoE means big changes for L&D
7. The GOLD Charter
8. The Way Forward
November 9, 2007 GOLD CoE Practice Area Development Page - 18
146. Hertz needs something different for L&D
In terms of bring training and learning resources together under one
global umbrella, something different is needed to:
Control costs
Have Hertz be seen as a learning organization
Send a single message how Hertz Learning and Development operates
Homogeneous offerings,
November 9, 2007 GOLD CoE Practice Area Development Page - 19
147. We need to re-evaluate our internal customers
The L&D CoE will serve …but will not serve [directly]:
Business Units (Worldwide) Transactional Units / Business
Administration units
360 Program Evaluation
Equipment (technical training)
High Pot (HIPO)
Routine recruitment processes
Consultation
Some of the sales / Op training
November 9, 2007 GOLD CoE Practice Area Development Page - 20
148. Our internal customer needs
Main Challenges for our internal customers Common needs across internal customer groups
Turnover L&D that enables differentiation (and brand
enhancement)
Morale through transition
Business skills
Productivity / How to do more with less (culture)
Developing a culture of empowerment to find ways of
Expansion & scale of revenue growth expectation in
doing more with less
an increasingly competitive environment
Effective & efficient delivery
Sustainability of improvement benefits
Basic Management and Personal effectiveness
Cost impacts of Language & Diversity (translation,
development
recruiting, relocation)
Performance management / coaching
Career progression paths
Robust practice / training environmennts
Revenue & profitability during layoffs
November 9, 2007 GOLD CoE Practice Area Development Page - 21
149. GOLD will be structured through six Practice Areas:
GOLD CoE Practice Areas:
1. Operational 2. Operations 3. Sales & 4. Management & 5. Executive
Excellence Effectiveness Marketing Personal Leadership
The Hertz Way Effectiveness
Systems training From basic sales… Principled Leadership
Procedures training (front-line) Team member Global Business Vision
On-boarding Strategy execution
Intro to Hertz Customer service & Managers
Our customer experience “Personal management”
For… (& Building Talent
Vision in Practice Cross-team management Performance Management
Values in Action …to strategic marketing Performance Management
‘Front Office’ Executive Coaching)
“One Team” Management Development
Lean, Six Sigma, HIP Personal Effectiveness [360]
TVM Field Operations
Business & financial
Quality Tools orientation
Safety Customer Contact Center
Empowerment
Selection & Recruiting
Diversity
Language
6. Learning & Development Quality
L&D effectiveness and value KPIs, L&D standards (& Quality Brand)
L&D evaluation tools (including impact on business results, transfer to higher performance on the job, learner tests / assessments, learner satisfaction, audit)
Vendor controls, Learning Council, Communications tools
e-Platform (including LMS)
November 9, 2007 GOLD CoE Practice Area Development Page - 22
150. Delivery routes
The 6 primary delivery routes:
1. e-Platform
4. The
4. The
5. H.R.
5. H.R.
6. GOLD
6. GOLD Business
Business
Business
Business
CoE
CoE (Line
(Line
Partners
Partners Mgmt)
Mgmt)
GOLD
GOLD
CoE
CoE
Design, Build,
Design, Build,
Buy 2. HR Operations
Buy
3. Alliance / Outsource Partners
November 9, 2007 GOLD CoE Practice Area Development Page - 23
151. Becoming a CoE means big changes for L&D
We are not principally a delivery Lean, simple, and effective
mechanism
Global coverage
Delivery is through HR Business Partners
Business-led GOLD portfolio
GOLD CoE defines what learning &
Accessible and transparent
development to meet the need, and the
Business Partners get’s it done (by using Adaptable and fluid
HR Ops and Business line)
The CoE provides strategy, tools, advice,
methodology and process
Defining KPIs that meet business needs
Measuring the impact of training through
specific, adopted ROI metrics
November 9, 2007 GOLD CoE Practice Area Development Page - 24
152. Global Organizational Learning and Development Charter
Purpose Lead the transformation of Hertz into a learning organization, in which individuals are supported to take ownership of their learning and
development. Ensure the development / procurement and implementation of cost-effective, business-oriented learning and development
Provide Hertz employees access to appropriate professional development and continuous learning. Implement effective program delivery
methods to provide flexible and adaptable means to access programs anywhere at any time.
Main Services Develop the learning & development portfolio, linked to business priorities & strategic architecture
Active support for the key Hertz initiatives, with targeted training programs
Develop and implement leadership and management development programs (and facilitate the 360 degree feedback process for the leadership
executive development programs)
Develop Hertz’s change management capabilities.
Main Business needs analysis and prioritization. Review the sources of material. Commission or develop content to meet business needs
Processes Customize as appropriate. Assess readiness for delivery and determine appropriate methods. Evaluate and validate against the business needs
Build partnerships with internal & external stakeholders and learning providers.
Build reliable metrics to assess effectiveness in business terms.
Roles / Touch Development of a strategic vision for the GOLD function; provision of one global training, development, and learning process; consulting services;
Points Translating Global Performance & Career Mgt & Global Selection & High Pot outputs into targeted development solutions.
Structure Six Practice Areas: 1. Operational Excellence (The Hertz Way); 2. Operations Effectiveness; 3. Sales & Marketing; 4. Management and Personal
Effectiveness; 5. Executive Leadership; 6. L&D Quality
Main 3 year global GOLD strategy white paper, Annual operations plan, Annual GOLD budget, Global needs analyses, Integrative development plans,
Deliverables & Global business-led learning and development curricula, Annual training calendar, Development methodology and tools, External provider
Benefits management, Global GOLD policy, GOLD process consultancy services, Learning transfer tracking, GOLD dashboard.
Indicators Evaluation outputs. Training spend as a % of revenue, and payroll. Training days and spend per employee. Program cost as % of Business area
Contribution, Sales per person, Cash flow contribution as % of HR/OD Operating cost, Savings from turnover reduction. Pulse Survey and
employee feedback.
November 9, 2007 GOLD CoE Practice Area Development Page - 25
153. The way forward
Transformation, while ‘keeping wheels on the bus
Opportunity
Global, consistent standard and quality of L&D
Cost reduction through consolidation
Leverage scale with suppliers/reduce no of suppliers
We need from KHO
Clear feedback and direction
Clarity of MPF’s expectations
Barrier Busting
Timescales
Communication with and enrolment of stakeholders
Still to solve the puzzle of how best to deliver training to the field
November 9, 2007 GOLD CoE Practice Area Development Page - 26
154. Goal 30
Build the most effective structure
to sense the organisation!
To learn, what not to say instead of saying!
155. Presentation of... 31
Shared Services in Dublin
Europe RAC HIP & Sales Academy
Van & Truck Germany
US Sales
US HERC
& Marketing
US RAC HIP
156. Expectations 32
- Common view of how to the preferred internal
customers/business partners
- Understand each other roles, work together, have a global view
- Understand how to learn from/adept each other best practice
- Be able to go back and tell people what its going to look like and
what opportunities are
- Share experience, listen, recognize value
- Have an action plan
- Share successes, what works
157. Expectations 33
- Get clear direction for the future, to be able to start helping our
people
- Leave with understanding of our goals and objectives
- Use opportunity to get to know each other, make new friends
- Be clear about what we can bring to business to enable our
differentiate itself
- Surface necessary conflicting points of view, overcome issues
collaboratively
158. Expectations 34
- Move away from “training” towards a broader view of L&D
- Become business led, business focused
- Share HERC experience
- Clarity on structure
- Drown up experience in the room from those who are not in
Hertz
- Keep focus on employees
- Understand, what we all do
- Hear and share the best practice
- Get help filling gap, esp. management issues
159. Additional statements to KH presentation 36
Two ways of outsourcing:
1. Outsourcing at all
2. Outsourcing in pieces
Definition Teamwork:
Teamwork means not to allow another team member to fail!
Trial & Error → a key component to any change
processes
160. Additional statements to KH presentation 37
Find different solutions → other ways of doing stuff
Consider the difference between effectiveness and efficiency!
Providing direction is critical, but one company, one voice.
Message: Just one way!
Performance Management = key factor for L&D!
161. Additional statements to KH presentation 38
Goals: an individuell L&D plan for each employee
reduce turnover about 35 %
Position: Hertz as an employer of choise!
Recruiting isn`t existing today!
Functional competencies → competence model for HR
162. Additional statements to KH presentation 39
Global or local:
80 % should be global
Max. 20% should be local → national facts
Our role: the best type of training delivery for...
Decisions are open: people can say, what they like to work
for... Business partners, COE, and so on
163. Additional statements to KH presentation 40
Practice area solutions:
(1) Quality
(2) Executive education & leadership development
(3) Organization effectiveness (Operational effectiveness)
(4) Sales and marketing
(5) Management & Frontline Development
E-learning → “delivery mechanism or practice area”
164. Additional statements to KH presentation 41
No structure by organisation
(e.g. HERC, RAC)
Best methodology isn't decided
Certification programmes for CSR
165. “One List” of all countries 46
Customers:
- Field operations
- Support areas
- Everybody (for HIP)
Main challenges:
- Sustainability to benefits
- Turnover
- Morale through transition
- Productivity
- Do more with less
166. “One List” of all countries 47
- Clear career progression
- Increase revenue
- Expansion
- Diversity/language
- Customer service
- Competition
- Unrealistic sales quotas
- Sell through 3rd parties
- Enthusiasm for a better way of doing things vs. lay-off`s
167. “One List” of all countries 48
Needs:
- Differentiation (enhance brand)
- Management development and people development
- Effective/efficient delivery
- Business skills
- Achieve more with less
- Implications of Lean environment
(big down to source and fix, empowerment)
168. “One List” of all countries 49
Meet demand:
- Instructor led
- On-line
- Helpline calls
- Field visits
- Training needs
- Coaching
- Onsite with people (especially HIP)
169. Karl-Heinz Statement for building our Practice Area model 50
“As a COE we are not a delivery mechanism.
We deliver through HR Business.
We say (“Here is how you...”) and they do it,
or get it or done by somebody else.
We (the COE) provide strategy, tools,
advice, methodology and process consulting.”
170. Practice Area model (“home room”) 51
GOLD CoE Practice Areas:
1. Operational 2. Operations 3. Sales & 4. Management 5. Executive
Excellence Effectiveness Marketing & Personal Leadership
The Hertz Way Effectiveness
Systems training From basic sales… Principled Leadership
Procedures training (front-line) Team member Global Business Vision
On-boarding Strategy execution
Intro to Hertz Customer service & Managers
Our customer experience “Personal management”
For… (& Building Talent
Vision in Practice Cross-team management Performance Management
Values in Action …to strategic marketing Performance Management
‘Front Office’ Executive Coaching)
“One Team” Management Development
Lean, Six Sigma, HIP Personal Effectiveness [360]
TVM Field Operations
Business & financial
Quality Tools orientation
Safety Customer Contact Center
Empowerment
Selection & Recruiting
Diversity
Language
6. Learning & Development Quality
L&D effectiveness and value KPIs, L&D standards (& Quality Brand)
L&D evaluation tools (including impact on business results, transfer to higher performance on the job, learner tests / assessments,
learner satisfaction, audit)
Vendor controls, Learning Council, Communications tools
e-Platform (including LMS)
171. Practice Area model 52
The 6 primary delivery routes:
1. e-Platform
4. The
4. The
5. H.R.
5. H.R.
6. GOLD
6. GOLD Business
Business
Business
Business
CoE
CoE (Line
(Line
Partners
Partners Mgmt)
Mgmt)
GOLD
GOLD
CoE
CoE
Design, Build,
Design, Build,
Buy 2. HR Operations
Buy
3. Alliance / Outsource Partners