HROTodayGlobal

Special Report: APAC . Avon wanted global data to know how people were working for the organisation, where they were working, and where the talent was located. In 2006, the company didn't have transparency when it came to numbers. For example, the HR department didn't have a solid figure in terms of the exact number of employees working for the beauty supplier. . Avon aimed to partner with a provider that could handle the transactional HR processes so internal staff could focus on more strategic HR initiatives. This remains a work in progress. Some changes have been effective, while others have proved to be more of a challenge. . IBM worked with Avon on manager and employee self service, global reporting, a global compensation environment, and a global performance environment. In the mature markets, the service levels have seen an increase, and in developing markets, service remains a focus. . Avon has experienced a financial return on investment; this business case has been met. Going Global After the solution was rolled out in the U.S., the contract expanded to include delivery in Canada, the United Kingdom, Hong Kong, Japan, Australia, and New Zealand. IBM had developed a pragmatic solution to accomplish a business solution standardisation, but the trick was to deliver that in 50 countries. In additional to data management, Avon had two other initiatives for the HR delivery model: . IBM worked with Avon to develop a global performance management process for all employees at a certain level and up. This provides transparency for the company's top talent around the globe. . Avon has several growth markets: Philippines, Brazil, and Russia. And the company faced the challenge of controlling salary budgets and limiting salary drift in areas with hyper growth. They sought a process to manage their compensation budgets on a global level. IBM went live in Avon's Asia Pacific (APAC) regions in 2008. The IBM delivery center for APAC is located in Manila. As a standard, countries had to engage in the structure surrounding global compensation, global performance, and global data. Levels of executive support varied per country. Avon's Garg attributes this to the region's sizable cultural footprint. "What makes APAC unique is the wide array of different cultures," she says. "Japan and Australia would have very different reactions to outsourcing so we had to be sensitive to the varying cultures." Lessons Learned The now-successful engagement was not without its bumps. "Most relationships go through a rocky time, but it doesn't help to point fingers," says Garg. "Instead, focus on the issues. Break them down and engage the teams to find workable solutions." Rogers agrees. A few years into the partnership, the relationship became routine and stagnant. She says that typically at this time in a relationship, investment must occur on both sides for future success. "Investment doesn't mean money; it can mean time or energy to keep things on the right scale," she says. If things become too routine, it can affect the impact of the relationship. In 2009, IBM and Avon faced challenges that made them delve into their partnership and opt to make changes and amendments. The solution? IBM developed a program called "Beyond SLAs." One initiative of this program was analysing data from the Manila hub to create a higher level of employee satisfaction. "Monitoring progress through data, we could determine if the process was working or not," says Garg. One aspect that was improved was the employee self-service model, which in turn reduced the number of calls needed for an HR solution. This increased employee satisfaction as well as reduced costs. Both Garg and Rogers emphasise the need for a joint partnership in order for an outsourcing engagement to continue to succeed. For 2011, Avon and IBM developed a joint rewards program that requires participation on both sides. She notes that this initiative is driving more strategic agendas—and thinking—for the next generation of their relationship. FALL 2011 | www.hroglobal.com [29] Data transparency HR strategic enablement Improved service for associates Spend reduction Performance management Global compensation

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