1. Successful HR Business Development in the Age of Disruptive Technology
Peter Kennedy
IBM Director, HR Business Development - Europe

2. IBM HR Business Development Mission Statement
Led by HRBD, HR engages early in the Deal Execution phase and remains involved through Integration phase
The IBM HR Business Development team’s mission is to support IBM's business success in all OUTSOURCING opportunities, ACQUISITIONS and DIVESTITURES globally by:
influencing and designing the right HR solutions and deal structure that contribute to achieving IBM’s growth, profit, and client satisfaction objectives
creating a positive employee experience while minimizing business disruption 2

3. Business landscape change (in 3 to 5 years)
C-suite leaders, including CHROs, expect more competition from rivals outside their own industries
Change from 2013
+26%
2013
Business landscape change (in 3 to 5 years)
43%
29%
2015
54%
39%
2013
no change
More competition expected from within the same industry
More competition expected from other industries
30%
2015
51%
+6%
35%
2013
48%
no change
2013
Global
CHRO

4. C-suite Leaders expect Cloud, Internet of Things and Mobility to revolutionize their businesses
Technologies revolutionizing business (in 3 to 5 years)
Cloud computing and services
63%
61%
Mobile solutions
61%
49%
Internet of Things (IoT)
57%
51%
Cognitive computing
37%
33%
Advanced manufacturing technologies
28%
35%
New energy sources and solutions
23%
33%
Bioengineering
12%
18%
Man-machine hybrids
10%
13%
All CxOs
CHROs

5. WATSON The Era of Cognitive Computing is here!

6. WATSON The Era of Cognitive Computing is here!

7. What does this all mean for HR?

8. Acquisitions & the Evolution of Technical Solutions
2015+
Cognitive Era
2010s
Smarter Planet
1990s
Distributed Computing
1980s
Personal Computer
2000s
e-Business
Standard
Complex
FULL INTEGRATION
DELAYED INTEGRATION
NO INTEGRATION
(middleware)
(SaaS, Human Capital, Platform, Solutions)
BUSINESS IMPACT
The business is intergrated with one invoice to the client
Operate as a wholly owned IBM company in the process of integrating
Continue to operate as before with limited change to structure and business processes
Move to IBM Standard terms of business
Separate business reporting and tax reporting
Synergy is possible
Limited synergy
Very limited synergy
HR ASPECTS
Mandated employment transfers at merger
Potential for "voluntary" transfer of employment - not ARD mandated
No transfer of employment
ARD Consultaiton requirements
Limited changes to employment T's & C's and benefits
Retain back office (HR, F&P, Admin etc)
Solution the back office teams (HR, F&P, Admin etc)
Retain back office (HR, F&P, Amin etc) .

9. Strategic Outsourcing & the Evolution of Technical Solutions
2015+
Cognitive Era
1990s
Distributed Computing
2000s
e-Business
2010s
Smarter Planet
1980s
Personal Computer
Systems Integration
Services Integration
Balance sheet and technical know-how
Large transactions characterized by asset takeover
High number of employees in scope, but limited resource actions required
Global resources and process excellence
Global Centers and supply chain optimization
Transfer of workload to GDC requires to identify an “HR Solution” for the transferring HCs
New Enterprise IT and cognitive computing
Hybrid and services automation / analytics
IT transformation / optimization requires a very limited number of employees to perform services
Bunsiness Challenges HR
Challenges

10. The European Union Commission “Acquired Rights Directive”
Sets a minimum standard of protection for employees in the events of a transfer of undertaking.
The Directive provides protection for employees in three ways in the case of employment transfer from the transferor to the transferee (who becomes the new employer)
Employment contract: automatic transfer of the employment relationship with all its rights and obligations, therefore protection of the employees’ terms and conditions
No dismissals of employees (by the transferor or the transferee) because of the event of the transfer unless ETO (Economic, technical, or organisational) reasons
Information and consultation: both parties are required to inform and consult the representatives of the employees affected by the transfer

11. HR Solution Methodology
7 HR areas for information gathering & Issue identification
5 HR solution options used to address each issue
1. No People Transfer
4. Transfer to JV/Sub
3. Transfer to 3rd Party
2. Secondment
5. Transfer to Buyer
C. Culture
E. Ts & Cs incl Pensions
F. HR Environment
G. HR Team
D. IR/ER
B. Resources
A. Business needs
HR Eng. Principles & Strategy
HR Data Gathering & DD
HR Solution
HR Cost summary
Contract text modules
Transition Project plan
Competitive Analysis
Client segmented HR Value Prop.
Client HR information
IBM
HR Solution
offering

12. IT Learning Curriculum
IBM Confidential
Watson Job Matching for Outsourcing Solution creating transparency and opportunities
Transparency of in-demand jobs, greater career opportunities and focus on developing market-relevant skills
IT Learning Curriculum
People in scope
Resume
Skills
IBM
Redeploy with customer / Outplacement / Exit
Solution
IBM Staffing plan
Business Partner
3rd Party
ANALYSIS & MATCH
High match
Low match
Short-term deployment
Long-term deployment
ADVICE
Deployment
Current
Change
Job profile
Future
Leading IT
Workforce
Match
Non-Match
Career Support Center
Redeploy (internal)

15. ‘Employee Experience’
HR Re-imagined
Cognitive Era
Mobile
Cognitive
Social
Cloud
Standardisation Era
Outsourcing
Big Data & Analytics
Re-focus on the
‘Employee Experience’
Re-engineering
Focus on
Process & Policy

16. New World – New Strategy
How do Employees think of HR….Moving from process/policy driven toward experience outcomes
Compensation
& Benefits
Transformation
& Operations
Cloud & Talent
Join IBM
Employee &
Labour Relations
Onboard
Leadership
& Learning
Separation
Retention
Global Mobility
Cascade
Performance
& Goals
Watson & Cognitive
Pay
Leave IBM
Audit
Finance
CIO
Procurement

17. HRIT Strategy Vision….Enabling Technology for the Employee Experience
Cognitive HR
Workforce Internet of Things (IoT)
Cloud
Sociometer
Safety
Wellbeing
Unstructured
Data
Personalisation
Content
& API’s
Robotic Process
Automation
Personality Insights
Structured
Data
…first

18. THANK YOU!!!