The Strategic HR Summit London, June 23, 2005
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HR AS A MEANS TO RE-ENGINEER A RUSSIAN INDUSTRIAL GIANT Victoria Petrova Deputy General Director for Human Resources The Strategic HR Summit London, June 23, 2005
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HR AS A MEANS TO RE-ENGINEER A RUSSIAN INDUSTRIAL GIANT Victoria Petrova Deputy General Director for Human Resources. The Strategic HR Summit London, June 23, 2005. A global leader, from Russia. Top 3 producer of aluminium and alloys globally 2.7 million tonnes of aluminium produced in 2004 - PowerPoint PPT Presentation
Transcript of The Strategic HR Summit London, June 23, 2005
HR AS A MEANS TO RE-ENGINEERA RUSSIAN INDUSTRIAL GIANT
Victoria PetrovaDeputy General Director for
Human Resources
The Strategic HR SummitLondon, June 23, 2005
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A global leader, from Russia
Top 3 producer of aluminium and alloys globally
2.7 million tonnes of aluminium produced in 2004
Over USD5.4 billion in annual sales in 2004
Today, 63% of products sold directly to end-users
Production development and expansion investments exceeded USD534 million in 2004
Over 47,000 employees
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From Siberia to the World
We operate in 7 Russian regions and 11 other countries, plus we sell to customers throughout the world
Nikolayev Refinery
RUSAL Bratsk
RUSAL Achinsk RUSAL Krasnoyarsk
RUSAL Novokuznetsk
CBK
RUSAL Sayanogorsk RUSAL Sayanal
RUSAL Armenal
RUSAL RostarRUSAL DmitrovRUSAL Mosmek
RUSAL Construction Profiles
RUSAL China (Beijing)RUSAL America Corp. (New York)
RUSAL Germany (Dusseldorf)
Moscow Headquarters
ACG (Friguia)
**
*
Mining and Refining
Office
Smelting
Fabrication
*
RUSAL Rostar-Vsevolozsk
*
*
RUSAL Japan (Tokyo)
RUSAL Singapore
RUSAL Boksitogorsk
*RUSAL Australia
BCGI (Guyana)
*
Queensland Alumina Ltd.
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We started just five years ago!
March 2000: Sibirsky Aluminium and Sibneft create RUSAL, Russia’s largest aluminium producer
USD4,078 billion revenue (2001 results)
9.9% of global aluminium production
72.3% of Russia’s aluminium output
An enormous post-Soviet organisation
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An extraordinary challenge: Soviet heritage
Role of “township-forming” enterprises
Rampant overstaffing
• Number of production unit employees – four times higher than in the west*
• Number of management and service units staff – nine times higher than in the west*
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*According to Accenture research commissioned by RUSAL, 2000
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An extraordinary challenge: Soviet heritage
Employee mindset
• “Work is not a wolf, it can’t be scared off into the woods” – job is a social entitlement
• There is no Russian word for “performance” !!
• “The slower you go, the farther you’ll get” – process-oriented, not result-focused
• Little or no motivation
• Process-driven not goal-oriented
• No competition
• Nepotism
• Corruption and even plain stealing
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Understanding and developing our people for the first time
Independent corporate culture research, Dec. 2003
• Questionnaires and focus groups at two production units and headquarters, 1,059 total participants
• 15% of employees disloyal and not ready for change
• Disloyal group aged 30-40
RUSAL employee profile
• Dynamic
• Motivated
• Loyal
• Result-oriented
• Willing and able to learn and enhance skills
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Involving employees in culture change
Grassroots development• 18,000 employees suggested
amendments;• 4,000 participants in roundtable
discussions and training sessions as part of the Code approval process
Launch• 40 ombudsmen• Central ethics committee• Code published in corporate
weekly and posted on Intranet (planned)
• Copies distributed throughout the company (planned)
Our first Corporate Ethics Code
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A new people-centred system
Mentor vs. Warden• Employee groups managed by
foremen• Ample authority over evaluation,
reward and reprimand Performance assessment
• Grade-based annual employee evaluation through individual meetings
• Clearly set strategic goals and tactical objectives, development planning
• Self-assessment• Salary increase and bonuses
based on evaluation
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Introducing new information tools
Corporate communication tools structured by target audiences
Information days
Vestinik RUSALa, weekly newspaper in Russian with a circulation of 26,500 – main source of information for 82.4% of employees *
La Voix de RUSAL – bimonthly newspaper in French, for Guinea workers
Quarterly full color magazine with 10,000 copies in circulation
Corporate radio station – key source for 23.7% of employees*
Intranet news wire
_____________________________________
*According to recent corporate polling results (December 2004)
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Modernising conditions
Corporate labour protection and industrial safety policy
Conditions for higher labor efficiency
Workplace standardization
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Spotting and nurturing talent
Unique managerial staff bank
Intensive training and career planning program
Open call, higher education – only requirement
700 responded, 221 participated
15-25% promoted annually as a result of participation
The RUSAL Golden Reserve
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Reinventing training
Cost effective personnel development program
Introduced December 2000
Easy access from any corporate computer
96 training courses
4,000 hours of planned training time
Over 5,700 certificates of completion issued to date
Russia’s first e-learning programs
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Motivating and rewarding stars
Incentive contest for production employees and line managers
21 categories Self-nomination and by direct
managers Coverage: 14 plants and 1,200
individual participants in 2004 Professional knowledge, skills and
personal efficiency – key criteria 87 prize winners Over USD135,000 in valuable prizes
and cash awards
A new award scheme
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Results: A surge in productivity
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Driving towards our vision
To make RUSAL the employer of choice by creating a partnership between the company and its employees, where expectations and
responsibilities are shared.
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What next?
Labour conditions exceeding highest Russian standards
Enhanced career opportunities
Wider spectrum of professional development tools
Social package which includes:
• Healthcare services and medical insurance
• Retirement benefits
• Sports facilities
• Entertainment events
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Results: A truly global player
Top 3 aluminium industry leader
Working to grow our share in today’s global markets
