BAYER CORPORATION
Work Structures & Processes Category
After the 2004 strategic realignment and organizational restructuring of Bayer, the Executive Council commissioned an extensive study in 2004 into the competitiveness of its administrative functions, including HR. From the data collected, it was clear that there was room for improvement in both the quality of HR services provided to the international operating business units and in the price-performance ratio of the delivery of these services. The Executive council therefore requested HR to restructure its operations worldwide in order to provide better service with optimized cost structures. The Transforming Human Resources (THR) project was initiated to achieve this.
The project began with consulting their process owners, managers and employees in various countries. International teams analyzed five central HR processes worldwide: recruitment, performance management, training, payroll and international mobility. The focus was on optimization and standardization. As a result, the THR model was developed on the basis of internal customers’ requirements and optimized processes and is designed to support business needs. The new HR operating model is based on the following key elements which bring benefits for the business, managers, employees and the HR function: HR//direct online gives all employees direct access to the internal HR policies and directives applicable to them among other functionalities; HR//direct staff provides an efficient personal service so employees receive individual support; HR//Centers of Expertise work utilize HR experts who develop best practice solutions and concepts; and HR//Business Partners are integrated directly into the Group companies and advise managers on strategic HR issues.
Bayer’s decision to move to a global HR operating model has provided the following improvements: Global standardization with consideration of local issues and demands; Ease of access to data via the shared service center HR//direct and HR//direct online; Better service levels as measured by improvements in key performance metrics; and Greater efficiency and lower expense through economies of scale. THR creates a dynamic team that can quickly respond to business needs, and eventually will lead to lower overhead and higher profitability.
The THR project was and continues to be a dramatic transformation away from the “business-as-usual” mentality that existed in the legacy HR operating model. “Transforming Human Resources” successfully aligns HR with business strategy and has optimized resources and reduced costs. As a result, Bayer has successfully established a best-in-class model that can be benchmarked and replicated at other companies.
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