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Textron, one of the pioneers of the multi-industry enterprise, has forged its success with a remarkably diverse network of businesses. A member of the Fortune 500 with revenues in excess of $14 billion, Textron employs roughly 37,000 people in 29 countries, with the majority in the United States. The company also operates key facilities in Canada, the United Kingdom, France and Germany. Textron allows subsidiaries to operate with significant independence, a tradition that extended into HR practices and procedures. As a result, the company greeted the 21st century with a patchwork of HR operations.
Textron's goals were two-fold: improve employee support through unified HR processes and reduce operating costs.
In 2002, Textron began exploring the business case for unifying and standardizing its HR processes, and, in 2003, began work on an ambitious project to create a single, consolidated global HR system and service-delivery model. As that work got under way, the company began considering approaches for providing centralized support for HR services. Textron leaders decided to outsource the work for two primary reasons:
* Lack of a core competency managing global HR systems with no interest in developing this in-house; and
* The need to reduce costs immediately and for the future. An expert business partner that could manage HR and payroll support, as well as develop and maintain a knowledge base, was a more efficient solution -- delivering immediate and ongoing cost savings.
The company began the search for a business partner to provide HR and payroll support. It selected Convergys in May 2003 and work began immediately.
The Convergys Solution
Convergys was well-equipped to build a strong working partnership to meet and exceed Textron's goals. When Convergys began work in mid-2003, it was well into development of its global HR system, with implementation targeted for Jan. 1, 2004.
Upon rollout, Convergys provided:
* HR administration and employee and managerial support via phone and e-mail for the United States, Canada, United Kingdom, France and Germany;
* Payroll administration for the United States with the agreement to add the United Kingdom;
* Benefits administration for Canada; and
* HR support and data entry worldwide.
For the Convergys team, the first challenge was to meet the company's implementation timeline using two simultaneous work streams:
* Process Engineering: While requirements for the new HR system were defined by Textron, it had not yet developed detailed work processes. Convergys defined and designed specific workflows required for both administrative and support functions.
* Online Service Centers: Textron planned to roll out the new system and services in phases by subsidiary rather than geography. As a result, Convergys would open service centers for both North America and Europe to support English, French/French Canadian and German. All existing HR records had to be mapped and converted to the new system.
In the end, the partnership resulted in an improved employee experience with lower operating costs and improved efficiencies.
Convergys helped Textron achieve its primary goals of improving operational compliance and efficiency, increasing organizational flexibility and revolutionizing workforce reporting. Additionally, Textron has achieved:
* Reduced projected budgeted cost-per-employee for service and payroll.
* Improved employee service: Call-quality and case-quality metrics routinely exceed 98 percent -- and employee satisfaction regularly exceeds a rating of 9 out of 10.
* Data-entry accuracy consistently exceeds 99 percent.
"Convergys is truly an extension of my team -- we brainstorm solutions together," says Wendy Raymond-Dunham, HR Operations at Textron. "I consider our relationship essential to accomplishing our corporate goals."
Headquarters: Providence, R.I.
Primary Business: Textron, one of the world's best-known multi-industry companies, is a pioneer of the diversified business model. Founded in 1923, Textron has grown into a network of businesses with total revenues of $14.2 billion and approximately 37,000 employees in 29 countries serving a diverse and global customer base.
HR Outsourcing and Consulting Challenge: Improve employee support through unified HR processes while reducing operating cost.