EADS Procurement Talent Management Maria Granero EADS Defence & Security Head of Procurement...
-
Upload
maud-waters -
Category
Documents
-
view
218 -
download
1
Transcript of EADS Procurement Talent Management Maria Granero EADS Defence & Security Head of Procurement...
EADS Procurement Talent Management
Maria GraneroEADS Defence & SecurityHead of Procurement Projects, Spend Map & ReportingArchamps, 07/12/07
Page 2
EADS at a Glance: A Global Leader
No. 3
No. 3
No. 4
No. 2
No. 1
Commercial Aircraft
Helicopters
Commercial Launch Vehicles
Missile Systems
Satellites
Military Transport
Military Air Systems
No. 1
No. 1
Page 3
Chairman of the Board of Directors
Jussi Itävuori
Human Resources
Hans-Peter Ring
Finance
Marwan Lahoud
Strategy &Marketing
Jean J. Botti
Chief Technical Officer
Ralph D. Crosby Jr.
EADS North America
Fabrice Brégier
OperationalPerformance
Rüdiger Grube
Chief Executive OfficerLouis Gallois
Lutz Bertling
Eurocopter
Carlos Suárez
MilitaryTransportAircraft
François Auque
EADS Astrium
Tom Enders (CEO)Fabrice Brégier (COO)
Airbus
Stefan Zoller
Defence &Security
EADS Management Structure
Page 4
EADS Revenues by Divisionsas of March 07
By Division Revenues in million €
2006 2005
25.190
2.200
3.803
3.212
5.864
-2.0921.257
*ATR, EADS EFW, EADS Socata, EADS Sogerma Services
39.434
22.179
763
3.211
2.698
5.636
-1.4361.155
34.206
Headquarters ConsolidationOther Businesses*
Airbus
Military Transport Aircraft
Defence & Security
Astrium
Eurocopter
Total EADS
Page 5
EADS Procurement
EADS PDB Procurement Directors BoardCPO Council
Chief Procurement Officers
Airbus
Defence & Security
Eurocopter
Astrium
Military Transport Aircraft
Military Air Systems
Defence & Communication
Systems
Defence Electronics
MBDA
Test & Services
ATR
EFW
Socata
Sogerma
HQs Procurement& Services
EA
DS
Div
isio
ns
EA
DS
Bu
sin
ess
Un
its
Organisation
Page 6
EADS Procurement Talent Management
1) Definition of profiles
2) Skills assessment
3) Identification of gaps
4) Corrective initiatives
5) Monitor effectiveness
Definition of profiles at Procurement functions according to job descriptions
Skills assessment as part of annual skillsassessment or employee job review
Compare results of annual skills assessment to defined profiles
Definition of training programmes andselected corrective initiatives
Regular review of the effectiveness of training programmes and initiatives
Process
Page 7
EADS Procurement Talent Management
1) Definition of profiles
2) Skills assessment
3) Identification of gaps
4) Corrective initiatives
5) Monitor effectiveness
Definition of profiles at Procurement functions according to job descriptions
Process
Page 8
1) Definition of profiles
Definition of profiles according to job
descriptions
EADS Procurement population in 2006 was 2.400
employees.
Strategic SourcingProcurement Purchasing
Director
Head of department
Senior Manager
Manager
Staff
Support functions
1)
2) 3)
4) 5) 6)
7) 8)
9) 10) 11)
12)
EADS Corporate Sourcing
Focus
EADS Divisions
&Business
Units Focus
Page 9
1) Definition of profiles
ManagementSkills
ProfessionalSkills
Head of Department Senior Manager
100 %
0 %
ManagementSkills
ProfessionalSkills
ManagementSkills
ProfessionalSkills
Procurement Director
Relation between General Management and Professional Skills
Page 10
EADS Procurement Talent Management
1) Definition of profiles
2) Skills assessment
3) Identification of gaps
4) Corrective initiatives
5) Monitor effectiveness
Process
Skills assessment as part of annual skillsassessment or employee job review
Page 11
2) Skills assessment
Required Management Skills Profile
ManagementSkills
2/3
General Management Leading Edge
Fully Operational
Working Knowledge
Basic Appreciation
1) Strategy / Business Development2) Supply chain management3) Finance4) Sales / Marketing5) Quality ManagementLeadership Leading
EdgeFully
OperationalWorking
KnowledgeBasic
Appreciation
1) People leadership2) Customer focus3) Relationship Management4) Cross cultural skills / languages5) EntrepreneurshipOperations Leading
EdgeFully
OperationalWorking
KnowledgeBasic
Appreciation
1) Project Management2) Engineering / Product knowledge3) Change Management4) Market knowledge
Head of Department / Strategic Sourcing
Page 12
2) Skills asessment
ProfessionalSkills
1/3
Required Procurement Skills Profile
Procurement Skills Leading Edge
Fully Operational
Working Knowledge
Basic Appreciation
1) Supply market intelligence and analysisConsidering: - Identify potential suppliers assessing industrial capabilities & financials, - Analyse market trends and build cost models for commodities.
2) Sourcing strategies developmentConsidering: - Develop sourcing strategies for commodities.3) Procurement policy definitionConsidering: - Identify risk and opportunity elements, - Define adequate contractual terms and conditions.4) Supplier selectionConsidering: - Identify, compare & select suppliers to maximise business value added, - Assess total cost of ownership and key cost drivers.5) Supplier contractual relationship managementConsidering: - Negotiate and implement contractual frameworks with suppliers, - Assess risks elements and select appropiate terms and conditions.6) Supplier performance managementConsidering: - Implement supplier evaluation and development processes, - Work out short term recovery plans and set development targets.7) Supplier's innovation and technology implementationConsidering: - Ensure early supplier integration, - Propose new technical solutions available in the market.8) Optimise supply chain performanceConsidering: - Identify business supplier innovation & support standarisation initiatives.9) Sourcing processes optimisationConsidering: - Set up procurement processes and implement e-procurement tools.
Head of Department / Strategic Sourcing
Page 13
EADS Procurement Talent Management
1) Definition of profiles
2) Skills assessment
3) Identification of gaps
4) Corrective initiatives
5) Monitor effectiveness
Process
Compare results of annual skills assessment to defined profiles
Page 14
3) Identification of gaps
Conclusions:
• Strengths: Results orientation, Expertise and Customer orientation
• Development needs: - Senior Managers: Diversity management and People leadership - Executives: People leadership
• Analysis shows very few Executive potentials for Procurement functions: Succession Planning in procurement function is an issue!
Conclusions:
• Strengths: Results orientation, Expertise and Customer orientation
• Development needs: - Senior Managers: Diversity management and People leadership - Executives: People leadership
• Analysis shows very few Executive potentials for Procurement functions: Succession Planning in procurement function is an issue!
Current Management Skills Profiles in Procurement
0
20
40
60
80
100
Results orientation
Leading edge
People leadership
Diversitymanagement
Customer focus
Senior Managers Results
0
20
40
60
80
100
Results orientation
Leading edge
People leadership
Diversitymanagement
Customer focus
Executive Results
Page 15
EADS Procurement Talent Management
1) Definition of profiles
2) Skills assessment
3) Identification of gaps
4) Corrective initiatives
5) Monitor effectiveness
Process
Definition of training programmes andselected corrective initiatives
Page 16
4) Corrective initiatives
• Objective
Prepare procurement managers with potential for future sourcing challenges:
- Improve the capacity to understand and implement strategic sourcing issues,- Increase awareness of state-of-art sourcing methods & tools,- Develop and promote exchange of best practices accross Business Units.
• Target population (180 participants ~7% of total procurement population)
- EADS Managers with potential or recently nominated Senior Managers (25 participants per edition), - Participants from EADS top suppliers (5 participants per edition).
• Frequency
- Yearly (10 training days) with currently closing 6th edition of programme.
Managers - Procurement Managers Development Programme
Page 17
4) Corrective initiatives
• Content
- Sourcing strategy: commodity strategy, future trends, global sourcing,- Sourcing tools: Supplier evaluation, eSourcing, sourcing risk management,- Sourcing practices: legal aspects in procurement, TCO, KPIs,- Visits to EADS procurement departments & external companies presentations.
• Best practice projects
- Participants work in groups in selected best practice projects, - Final presentation of results and recommendations to EADS CPO Council.
• Organisation
- Organised together with EADS Corporate Business Academy, - Participants nominated and selected by Procurement Directors & BUs HR.
Managers - Procurement Managers Development Programme
Page 18
4) Corrective initiatives
• Professional training
Yearly training with the objective to support EADS Lead Buyers in the areas of:- Commodity strategies,- Supplier risk assessment,- Global sourcing.
• Personal training
Yearly training with the objective to support EADS Lead Buyers in the areas of:- Change management,- Project management,- Virtual and remote team management.
• Collaborative tool
- Introduction of a collaborative tool (based in eRoom technology) to support Procurement Synergy Groups.
Lead Buyers - Support: Training & Collaborative tool
Page 19
4) Corrective initiatives
• Objective
Scope of responsibilities has grown. To meet future challenges, it is required:
- Change Management,- Excellence in Leadership & People Management,- Intercultural Competencies.
• Target population (28 participants)
- Senior Managers reporting to Procurement Directors, - High Performers with potential for promotion,- Selected and nominated by Procurement Directors and Business Units HR.
• Frequency
- 1 time programme in 2005 to closed the skills gap,- Following years integrated into Corporate Business Academy programmes.
Senior Managers - Procurement for Procurement
Page 20
4) Corrective initiatives
• Objective
Enhance mobility within EADS Group, functions and locations through the exchange of information regarding: open positions, potential candidates and preparation of succession plans.
• Target population
Executives & Senior Managers below Procurement Director level. • Frequency
- 1 Round yearly for Executives,- 2 Rounds yearly for Senior Managers.- Organised from 2005 to 2006.
• Organisation
- EADS Management Development and EADS Corporate Sourcing.
Executives & Senior Managers - Procurement job rotation
Page 21
EADS Procurement Talent Management
1) Definition of profiles
2) Skills assessment
3) Identification of gaps
4) Corrective initiatives
5) Monitor effectiveness
Process
Regular review of the effectiveness of training programmes and initiatives
Page 22
5) Monitor effectiveness
How much did the PMDP supported you to …?
My understanding of the strategic sourcing challenges facing EADS
0030%
50%
20%
No ExtentA Little ExtentSome Extent
A Great ExtentA Very Great Extent
My ability to think more globally about my business
16%
50%
22%6% 6%
No Extent
A Little Extent
Some Extent
A Great Extent
A Very Great Extent
My understanding of sourcing best practices and experience across BUs
0 5%15%
55%
25%
No ExtentA Little ExtentSome ExtentA Great ExtentA Very Great Extent
PMDP was valuable to me personally
0 5%
25%
55%
25%
No Extent
A Little Extent
Some Extent
A Great Extent
A Very Great Extent
2002-2005 PMDP Participants Survey Results
Procurement Managers Development Programme
Page 23
5) Monitor effectiveness
2002-2005 PMDP Participants Survey Results
Your Management Level before beginning PMDP
55%
5%
40%
Manager
Senior Manager
Other
Your Management Level today
40% 40%
20%Manager
Senior Manager
Other
Procurement Managers Development Programme
Conclusions:
Programme supported the career development of participants: - To develop strategic understanding of sourcing challenges,- To think globally about EADS businesses,- To exchange practices with other Business Units.
Conclusions:
Programme supported the career development of participants: - To develop strategic understanding of sourcing challenges,- To think globally about EADS businesses,- To exchange practices with other Business Units.
Page 24
EADS Key Performance Indicators
SurveyCustomer SatisfactionINT CUSTOMER
Sum training days conducted in period/Nr of all members of within procurement organization at defined date (e.g. year end)
Nr of employees in procurt with experience in other functions or country /Nr of all members within procurement organization at defined date (e.g. year end)
Quantity of potentials in procurt/Total quantity of procurtemployees
Training
Mobility
Potential Ratio in Procurement
HUMAN RESOURCES
Vol. of suppliers covered by supplier evaluations /Vol. of suppliers
Sum supplier performance ratings/Best possible performance
Aggregated sourcing volume/Number of suppliers
Sourcing volume in defined countries
Supplier Evaluation CoverageSupply Base PerformanceSupply Base ProfileGlobal Sourcing
SUPPLY BASE MANAGEMENT
Vol. PO covered by valid EADS frame contracts /Total vol. PO
Sourcing vol covered by material group strategy/Total sourcing vol.
Number of e-Rfx
Number of manual PO/ Total number of PO line
Total value of invoices paid via PO/Total value of invoice paid
EADS Frame Contract CoverageCommodity Strategy Coverage RFX-AutomationOrder AutomationSourcing Volume controlled by Proc’t
PROCESS
Savings generated by Procurement projects/ Spend Baseline
US$ Sourcing/ Total Sourcing
(Payables (in €)/Cost of Sales (€/year)) * 365
Savings target achievementUS$ SourcingPayment Terms
VALUE
DefinitionKPIDimension
SurveyCustomer SatisfactionINT CUSTOMER
Sum training days conducted in period/Nr of all members of within procurement organization at defined date (e.g. year end)
Nr of employees in procurt with experience in other functions or country /Nr of all members within procurement organization at defined date (e.g. year end)
Quantity of potentials in procurt/Total quantity of procurtemployees
Training
Mobility
Potential Ratio in Procurement
HUMAN RESOURCES
Vol. of suppliers covered by supplier evaluations /Vol. of suppliers
Sum supplier performance ratings/Best possible performance
Aggregated sourcing volume/Number of suppliers
Sourcing volume in defined countries
Supplier Evaluation CoverageSupply Base PerformanceSupply Base ProfileGlobal Sourcing
SUPPLY BASE MANAGEMENT
Vol. PO covered by valid EADS frame contracts /Total vol. PO
Sourcing vol covered by material group strategy/Total sourcing vol.
Number of e-Rfx
Number of manual PO/ Total number of PO line
Total value of invoices paid via PO/Total value of invoice paid
EADS Frame Contract CoverageCommodity Strategy Coverage RFX-AutomationOrder AutomationSourcing Volume controlled by Proc’t
PROCESS
Savings generated by Procurement projects/ Spend Baseline
US$ Sourcing/ Total Sourcing
(Payables (in €)/Cost of Sales (€/year)) * 365
Savings target achievementUS$ SourcingPayment Terms
VALUE
DefinitionKPIDimension
5) Monitor effectiveness
Page 25
Conclusions
• Support the development of the procurement function from operational to more strategic role and activities,
• Update procurement employees toolbox to ensure continuous cost reduction and demand management achievements,
• Adapt to supply market changes (e.g. global sourcing, e-procurement),
• Address every procurement community according to their different needs,
• Involve the supply base, in order to address together the challenges related to procurement
• Support the development of the procurement function from operational to more strategic role and activities,
• Update procurement employees toolbox to ensure continuous cost reduction and demand management achievements,
• Adapt to supply market changes (e.g. global sourcing, e-procurement),
• Address every procurement community according to their different needs,
• Involve the supply base, in order to address together the challenges related to procurement
Increased attractiveness of the procurement functionIncreased attractiveness of the procurement function