parmalat case “performalat”

6/18/2012
PARMALAT
CASE
“PERFORMALAT”
London, June 2012
Riccardo Sebastiano Piaggi
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6/18/2012
AGENDA
• Parmalat Presentation
• Performalat Project Introduction
• Executive Summary
• Performalat: The Business Challenge
• Performalat: Model – Process
• Performalat: Project scope and approach
• Performalat: System - Success Factors
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PARMALAT IN A NUTSHELL
Turnover 2011: more than 4 billion euros
75% net revenues outside Europe
Directly present in 16 countries with 69 factories and also present in 9 countries through
licensing agreements
31 brands (whose 2 global + 5 international)
About 14,000 employees
Parmalat S.p.A. is listed on the Italian Stock Exchange since 2005
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PARMALAT IN THE WORLD
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OUR BRANDS
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STARTING JULY 2011:
PARMALAT GROUP AND LACTALIS GROUP
Parmalat is controlled by the Lactalis Group since July 15, 2011.
TURNOVER OF 14.7 BILLION EUROS
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STARTING JULY 2011:
PARMALAT GROUP AND LACTALIS GROUP
— 198 Factories in 35 Countries, 21 Sale Offices —
Parmalat present in 16 countries
Lactalis present in 44 countries
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FOCUS ON PEOPLE
Performance evaluation, identification and management of key resources and
succession planning represent the declination of the Mission and Values ​of
the Group within the Human Resources. These, along with training and
compensation plans, are the main tools used by Parmalat to attract, motivate
and retain valuable resources by providing a common framework, respecting
and taking advantage from cultural diversity and Group Companies.
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PROJECT INTRODUCTION

The Parmalat People Performance Management, Performalat, is going to involve all “white
collars” within the Group. The processes managed by Performalat are:
Performance Management
Reporting
Action Plan
Succession Planning
Through an interactive communication process between Leader and Employee.




The model has been entirely designed and implemented by using an inclusive approach,
involving and engaging Parmalat Professional Families and it reflects our philosophy.
State of the art: around 1.300 employees belonging to 13 countries within the Group are
completing performance cycle 2011 (the first cycle managed through Performalat).
Starting from 2012, Performalat will be deployed to all white collars employees (around
5.500).
Performalat is enabled by a customized SaaS (Software as a Service) tool provided by
SuccessFactors.
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PROJECT INTRODUCTION
Performalat mainly:
Provides a global and local overview of the state of our Human Capital – i.e. building
people capabilities, identifying potential successors, key people, talents;
Provides a tool to assist leaders in better recognizing and differentiating amongst
individuals’ contributions;
Provides useful information to Leaders aimed to a define a proper Action Plan for each
Employee;
Supports the development of adequate reward and succession plans, development tracks
and talent management plans.

Training needs

Development initiatives

Career development

Reward decisions

Succession planning

Talent Management
Performalat
Action Plan
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EXECUTIVE SUMMARY
1 - Business Challenge
2 Performalat
- Performalat
 Introduction of a unique Performance Management model
throughout Parmalat group
 Enablement of a culture of performance pushing workforce
towards a flexible and competitive mindset
 Identify talents that can grow within Parmalat to cover new
responsibilities & higher position
 Define appropriate development actions and reward plans
Model
Processes
Performalat aims at
evaluating people by
measuring:
 Achievements: results
and behaviors
 Competencies: Core
and Technical
Performalat consists of three
integrated phases. Each
phase is an essential part of
the process to be performed in
order to meet individual and
organizational objectives.
Integrated Succession
Planning processes have been
designed as well
3 - Project Scope and Approach
 System requirements definition and selection of a suitable
Performance Management tool;
 System Implementation (SuccessFactors)
 Project & Change management
Performalat support us in the Succession Management
providing us features aimed at evaluating people
readiness to success, measuring:
 Competencies: Core and Technical according to the
incumbent role.
 Minimum job level requirements according to the
incumbent role.
 Immediate and Future Potential
 Succession Information such as Risk to leave, impact
of loss etc.
4 - System (SuccessFactors)
 Implemented in few months
 Able to support the entire
performance management process
 Customizable according to
Parmalat needs
 User friendly and multi language
1
End of
Performalat
cycle
Identify Potential
Successors
2
Confirm /
Integrate Potential
Successors list
3
4
Validate the
Readiness Form
and Confirm
Succession Plan
Finalize
Succession Plan
Periodically Monitor and Update Succession Plan
(HR and Employee’s Manager Responsibilities)
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PERFORMALAT:
BENEFITS FOR BOTH EMPLOYEES AND THE ENTIRE GROUP
Consistent and
Objective Evaluation
Group standardized
paperless system
Better understanding
of our Human Capital
Development and
Coaching Plans
based on actual needs
and requirements
identified in the
evaluation
More precise
alignment of our
compensation and
reward systems
Foster a culture
where decisions on
rewards and
recognition are
based on merit
More accurate
identification of
successors and
talents
Identification of
individual skills and
abilities
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1 - Business Challenge
PERFORMALAT:
THE BUSINESS CHALLENGE
Parmalat Group in the 2010 launched a program to develop a Performance
Management model & tool for its personnel worldwide, aimed to foster highly
engaged and empowered workforce, in order to outperform the competition.
IMPROVEMENT AREAS
NEEDS AND REASONS FOR CHANGE
Employees’ needs:
 Consistent and Objective evaluation
 Appropriate rewards
 Appropriate development initiatives
approaches towards
 Different
Performance Management within
Parmalat Group
 Some OpCos completely lacked of a
Parmalat Group needs:
 Standardized approach in People Evaluation
and process
 Build adequate rewards and succession plans,
career and development tracks, and talent
management
 Simplified Human Capital Assessment and
Management
 Simplified talent identification and development
structured Performance Management
system
 Difficulties in understanding and
managing Human Capital and Talents
inside and outside OpCos
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PERFORMALAT:
2 – Performalat
• Model
• Process
THE MODEL – PERFORMANCE MANAGEMENT
Individual Performance is comprised of two main components: Achievements and
Competencies.
Performance
X - Axis
Y - Axis
Achievements
Competencies
 What – Objectives (60%)
 From 2 to 4 quantitative objectives
will be identified
 Parmalat Core Competencies
1. Consistency with Parmalat Values
2. Leadership
3. Strategic Thinking
 How – Behaviors (40%)
 Evaluation of the employee
performance in the role, i.e. how the
employee “covers” the role.
Specifically this refers to how the
daily tasks, that are essential to the
position and are the reason why the
role exists, must be performed
4. People Management
5. Result Orientation
6. Communication
7. Teamwork
Competencies
 Technical Competencies
 Technical competencies will be
identified for all Parmalat
Professional Families. A subset of
3-5 competencies will be defined for
each role
Achievements

Please note: X and Y axis have the same weight.
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PERFORMALAT:
2 – Performalat
• Model
• Process
THE MODEL – ACTION PLAN
Employee’s Performalat Results
Employee’s Action Plan Model
•
Competencies
III
Questionable
Fit
Top
Performer
Solid
Above
Expectation
II
I
Question
Mark
Learner
+
Action Plan Form has been structured in the following 2
sections:
SECTION 1 - People Development:
•
Development initiatives
•
Training initiatives
SECTION 2 - Career Development and appointments.
Its structure describes the Group approach on the
Performalat Action Planning.
Empty
Achievements
•
Action Plan Guidelines offer to Leaders a framework to
enable the process of feedback and the planning of
future development, trainings initiatives, and career
development and appointments for the employee,
according to Performalat results and employee’s level.
•
Discussion and sharing between Leader and Employee
on the Action Plan is crucial.
Definition of a detailed and agreed Action Plan for every single employee according to
the Parmalat Group approach.
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PERFORMALAT:
2 – Performalat
• Model
• Process
THE MODEL – SUCCESSION PLANNING
The Succession Planning Model is managed from every Performance Cycle end, and aimed to find the right employee
to potentially success leaving or retiring people.
1
End of
Performalat
cycle
Identify Potential
Successors
2
3
4
Confirm /
Integrate Potential
Successors list
Validate the
Readiness Form
and Confirm
Succession Plan
Finalize
Succession Plan
Periodically Monitor and Update Succession Plan
(HR and Employee’s Manager Responsibilities)

Successor should be identified for N, N-1 and N-2 and key positions / critical roles (e.g.. Cheese recipe maker)

The Employee personal info are a valid source of characterization for analyzing the person as a “successor”, so HR should continuously
invite the employee to self fulfill these fields

In order to guarantee a proper Succession Planning process deployment, it is necessary to fulfill the following information into the
Performalat “My Employee File”:
•
•
•
•
•
•
Mobility
Risk to Leave
Reason for Leaving
Impact of Loss
Future Potential Rating
Immediate Potential Rating
HR only is enabled to view and modify these information into the Employee File

The process of Succession Planning starts after the Year end Performance appraisal, when:
•
•
The main dimensions of the employee performance have been evaluated and shared
The employee Action Plan has been shared.
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PERFORMALAT:
2 – Performalat
• Model
• Process
THE PROCESS – PERFORMANCE MANAGEMENT
Parmalat Group Performance Management Model is comprised of three
phases (Planning, Reviewing and Appraising) supported by a continuous
process of coaching .
1. Performance Planning:
This is the phase where the
following elements are defined:
• what is to be accomplished
(objectives)
• how daily tasks must be
carried out (behaviors)
• Technical Competencies
• Parmalat Core Competencies
2. Performance Review:
In this phase the Employee’s
Achievements
and
Competencies are reviewed,
through:
• Employee’s Self-assessment
• Leader’s assessment
• Consolidation
• Action Plan
Action Plan phase has been
included within the performance
management process
Coaching and Feedback:
On-going process which takes place
throughout the entire Performance
cycle.
3. Year-End Performance Appraisal:
Leader and Employee review, discuss
and share the performance appraisal
outcome and agree on future steps
.
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PERFORMALAT:
3 - Project Scope and
Approach
PROJECT SCOPE AND APPROACH
Design new Performance Management model and processes
Select the suitable Talent Management suite by a choosing SuccessFactors as selected Software
Analyze, Configure and test the following SuccessFactors modules:
1.
2.
3.
4.
Goal management (objective setting)
Performance Management (competency and objective form management, workflow,...)
Employee Profile (es. organizational chart, employee profile)
Calibration (performance calibration activities management)
Four languages implemented: English, Italian, Spanish, French.
2011: Initially roll-out Performalat to Parmalat Group higher job positions (CEO, CEO -1 and CEO n-2)
and just for Corporate and Australia to all the white collars. 1.300 employees and 16 countries
involved.
2012: Extension to 5.500 employees and to Action Plan and Succession Planning modules.
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PERFORMALAT:
THE SYSTEM - SUCCESSFACTORS
4 – System:
SuccessFactors
SuccessFactors is the system enabling Perfomance Management, Action Plan
and Succession Planning model and processes, by an user friendly interface
and effective features.
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PERFORMALAT:
SUCCESSFACTORS – REPORTS
4 – System:
SuccessFactors
ACHIEVEMENTS VS COMPETENCIES MATRIX
The Achievements vs Competencies Matrix is a custom report created for Parmalat
purposes. This report enables Leaders to view the cluster distribution of their team. For
each cluster will be able to see:
a) Number of employees belonging to the cluster
b) Percentage
c) Employee’s data.
Compared to other SF
reports, the launch of the
Achievements
vs
Competencies
Matrix
implies the prior uploading
of the necessary Trend
Data of the Leader’s team
employees.
a
b
c
a
b
c
Once uploaded the Trend
data the Leader will be able
to launch the report and to
see the distribution of his
team members in terms of
last Performance ratings.
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PERFORMALAT:
SUCCESSFACTORS – SUCCESSION PLANNING
Performalat Succession Plan Report:
This report is structured in the two
sections containing different information:
Succession Hierarchy
Role Description
• Incumbent Section: This section includes
all the information about the incumbent.
Incumbent First Name Incumbent Last Name Incumbent Local Job Role
Job Classification Level Incumbent Risk to Leave Incumbent Manager First Name Incumbent Manager Last Name Nominee First Name Nominee Last Name Nominee Local Job Role
CARLO
2b
CARLO
CARLO
ANTONELLA
ANTONELLA
ANTONELLA
ANTONELLA
GIOVANNI
GIOVANNI
GIOVANNI
POLESE
Group CIO
Low
PIERLUIGI
BONAVITA
VINCE
CAMPANELLI
Employee to be succeeded
Leader
Employee’s
Leader
• Nominee Section: This section includes all
the information about the nominee.
VP, Information Technology
POLESE
Job Classification Level
POLESE
Executive&VP
RIGOLLI
3
RIGOLLI
3
RIGOLLI
6
RIGOLLI
Executive&VP
DELL'AMICO
5
DELL'AMICO
5
DELL'AMICO
4
Group CIO
2b
Low
Date appointed in the local Job Role Nominee Performance Rating Label
Group CIO
2b
Low
N/A
Responsabile Affari Societari 3
N/A
Responsabile Affari Societari 3
N/A
Responsabile Affari Societari 3
N/A
Above Expectation
Responsabile Affari Societari 3
N/A
Responsabile Ammnistrazione 3
Medium
N/A
Responsabile Ammnistrazione 3
Medium
N/A
Responsabile Ammnistrazione 3
Medium
N/A
4
N/A
Not Defined / Pending
4
N/A
Not Defined / Pending
Employee to be succeeded
PIERLUIGI
BONAVITA
RICCARDO
PIAGGI
Responsabile Organizzazione Gruppo
Nominee Future Potential Rating Nominee Immediate Potential Rating Nominee Risk to Leave Nomination Readiness Succession Initiatives
PIERLUIGI
BONAVITA
ENRICO
FEREOLI
Solution Manager
Not Defined / Pending
PIERLUIGI
BONAVITA
MONICA
STRIZZOLO
Medium
A
Medium
Within 12 months
kkkkkkkkkkkkkk
PIERLUIGI
BONAVITA
TONY
CUGLIARI
VP, Legal Affairs & General Counsel
Medium
B
Medium
Not Defined / Pending kjcbkvwjnok
PIERLUIGI
BONAVITA
DARIA
ANGELINI
Internal Audit Senior specialist
Not Defined / Pending
PIERLUIGI
BONAVITA
LUIGI
CHIARA
Within 24 months
PIERLUIGI
BONAVITA
ALESSANDRO MAGNELLI
Low
Within 12 months
fafafafafafafafafafafaf
PIERLUIGI
BONAVITA
ROBERTO
GUADAGNINI
Direttore AFC
Immediate
PIERLUIGI
BONAVITA
GIANNI
CERQUETANI
Medium
B
Low
Not Defined / Pending XXXXXXXXX
Successor Readiness Assessment Form :
This report contains all the information
needed for the HR representative and for the
Incumbent manager to evaluate the
readiness of the potential successors.
This report will also include
the Succession initiatives
defined for the potential
successor.
4 – System:
SuccessFactors
Employee
Employee’s potential
Successor
Successor
Successor
HR Succession Planning User
HR
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PERFORMALAT & SUCCESSFACTORS:
PROS & CONS
Cons
Pros
1 - Some effort to fit Successfactors configuration to
Parmalat Performance management model
specificity, anyway everything has been worked out
by workarounds.
1 - Software as a Service (SaaS) consolidated
experience and robust technologies (security,
performance, user friendliness)
2 – Managing the configuration Through virtual
meetings and call conferences doesn’t guarantee a
quicker and more accurate effectiveness
(SuccessFactors standard configuration workbooks
in some case can’t collect effectively specific
requirements)
2 - High rate of coverage vs Parmalat Performance
Management requirements
3 - Quickness in implementing the system; easiness
to configure the performance management workflow
and other features; effective project management and
change management.
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BACKUP
• The Forms
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PERFORMALAT:
SUCCESSFACTORS –
PERFORMANCE MANAGEMENT FORM
4 – System:
SuccessFactors
 The Performance Management Form summarizes: Employee’s information, Objectives
and Competencies (Core and Technical) and the related comments. This Form is where the
Leader and the Employee will gather their own evaluations and represents the basis for the
whole Performance Cycle
Employee’s Information and
Introduction Section
Objectives and
Behaviour Section
Technical and Core
Competencies Sections
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PERFORMALAT:
SUCCESSFACTORS – ACTION PLAN FORM
4 – System:
SuccessFactors
 The Action Plan is collected in a form called “Action Plan Form” which gathers the initiatives
identified for the Employee according to his last year performance overall results and job
level
Employee’s Information and
Introduction Section
SECTION 1 - People Development:
A. Development initiatives
B. Training initiatives
SECTION 2
Career Development and appointments
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