Agribusiness Multinational Case Study

Bottom Line: NAVICENT designed and implemented a global HR shared service delivery model for a global agribusiness -- improving the quality of service transactions, reducing compliance risk and delivering a 20% reduction in overall HR administration costs. Our client's global HR function now delivers better service to their internal customers and improved value to the organization.

Business Problem: After years of mergers and acquisitions, our client became one of the largest consumer products firms in the world, consisting of more than 70 business units with operations in more than 60 countries. Many of these business units handled their HR functions in-house. Even routine and transactional activities, such as training, payroll processing, and recruiting, were handled differently from one business unit to the next. The company struggled with high administrative costs and limited effectiveness as a result of redundant and sub-scale activities, incompatible systems, and inconsistent procedures.

Solution: NAVICENT designed and implemented a three-tiered shared service model for the company's Human Resources function. For administrative and operational services like payroll and HRIS management, NAVICENT designed regional and country shared service centers to best capture scale, ensure consistency and guarantee transaction integrity. In order to best leverage learning and best practices across the corporation, these centers also included expertise services like compensation management.

In addition to the regional and country shared service centers, certain HR functions remained embedded in the business units to meet unique and critical HR requirements of a BU or cluster of BU's. Also, a streamlined corporate HR function was implemented which was focused on corporate-wide strategic HR issues.

NAVICENT's Role: NAVICENT drove this effort from architecture to implementation - leading a team of stakeholders through our Shared Service Design Methodology. Using our proprietary decision tree tool, NAVICENT worked collaboratively with the client to organize and place the complex array of functions into the appropriate delivery model. Additionally, NAVICENT consultants employed an extensive database of commercial best practices to reengineer these complex processes and optimize the design of the new organization. Finally, NAVICENT helped the client implement the shared service program, supporting program management, site selection, staffing, performance standards, service-level agreement and contract setup.

Results: As a direct result of this project, our client has greatly improved the overall quality, and compliance of their human resources function. HR processes are now fully documented, measured, managed and, where appropriate, automated improving accountability and reducing compliance risk. Embedded HR resources can now focus on the strategic needs of their business unit and on driving top-line growth. Additionally, the client has reduced the cost of HR administrative processes by 20% and is better architected to quickly and efficiently integrate new acquisitions and startups.

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