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Business & IT




                Pieter Schoehuijs, CIO
                        February 2013
Agenda

 •   Introduction
 •   Staffing Observations
 •   Approach to Skills Development
 •   3 Examples that work for us




                                      2
Some key facts about AkzoNobel

2011
• Revenue €15.7 billion
• 57,000 employees in 80 Countries
• 40 percent of revenue from high growth markets
• A leader in sustainability: Number 1 in Dow
  Jones Sustainability Indexes


Revenue by business area   EBITDA* by business area




* Before incidentals

                                                      3
Our ambition is to be the world’s leading
Coatings and Specialty Chemicals company
                             •   Top quartile safety
                                 performance
                             •   Top 3 position in sustainability*
                             •   Top quartile performance in
                                 diversity, employee engagement,
                                 and talent development
                             •   Top quartile eco-efficiency
                                 improvement rate
  •   Grow to €20 billion revenues
  •   Increase EBITDA each
      year, maintaining 13-15%
      margin
  •   Reduce OWC/revenues by 0.5
      p.a. towards a 12% level
  •   Pay a stable to rising dividend



* SAM annual benchmark
                                                                     4
Our IT environment sure shows our size
                  and legacy

 41.000 PCs, running                               4.500 servers, 15 data centers
 1000+ apps/versions                                     (with ≥ 30 servers)




                          >10.000 mobile devices


 3.000-4.000 server based applications,     IT internal headcount 992 FTE
  incl. 84 ERP systems (currently)            in 47 countries
 2.558 nodes on data network,               Starting to build comprehensive IT
  incl. 1500 stores                           processes
                                             Many partners/suppliers

                                                                               5
Four strategic “must win battles” have
been formulated to transform IT


 Continue to drive toward       Simplify IT landscape
 shared services model of       e.g. regarding
 commoditized systems and       application portfolio,
 technology platforms           infrastructure and key
                                metrics




 Establish Integral IT
 management through         Transition IT to be more
 teamwork and               focused on optimizing
 transparency regarding     business processes and
 people, financials,        capabilities rather than
 projects and clear         technology implementation
 governance supporting      and support
 business objectives


                                                         6
Typically, IT organizations lag reality

•   E.g. in the areas of
        – Geographic diversity
        – Age distribution
        – Skills
•   Due to
        – Outsourcing
        – Lack of job rotation
        – Insufficient focus on development
        – Legacy support needs

                                              7
Likewise, AkzoNobel IT is not balanced


             992 IT Employees in 47 countries
             but the bottom of the pyramid is missing!



 >60

55-59

50-54

45-49

40-44

35-39

30-34

 <30

        0%      5%    10%    15%   20%    25%
                                                    8
How do we become (and stay) the IT
organization of choice?

                        By:
                        •     Assessment
                        •     Communication
                        •     Motivation
                        •     Challenge
      Diversify         •     Internal Rotation
     Grow Talent             Traineeships
    Balance Skills           Training /
   Nourish Culture            Development
                        ......and much more


                                                  9
Example 1; Traineeships work!

•   Concept:
    –   A program to develop young talents into top IT-
        professionals (caliber: future CIO)
    –   The program offers young talent 4 jobs in 2 years
        including recruitment, support, education & coaching
    –   Cooperation and knowledge sharing between the
        participating CIO’s and organizations, current class of
        5 people rotates between 4 companies
    –   Perfect for jr consultant assignments, e.g. in projects

•   In 2½ years, already 8 passed through our
    organization and 5 are currently working
Embracing the courage and curiosity to ask
  questions!
                                                            10
Example 2; Develop culture to
           work smarter (not harder)
•   Concept:
    – Core Skills program to drive change
    – Mixed groups spend a week on personal and
      team leadership
    – Content includes the use of
      feedback, managing expectations and team
      dynamics
    – Keep people
      engaged, curious, aware, competent, communi
      cative and eager to learn
•   In 4 years, already 300 colleagues passed
    through this training

Significant cultural impact !
                                              11
Example 3; External training is essential

•   Leading by example starts at the top
•   Nyenrode/Delft MBA Business & IT
        – Modular, flexible
        – Program Review Board ensures
          demand driven content
•   >70 Students currently following this
    program from many different organizations
Executive Development stimulated from the top
   grows tomorrows leaders today!


                                            12
MBA in Business & IT

•   Strategy and Organization
•   Ownership of Enterprise and Governance
•   Change Management and Organizational
    Development
•   Risk and Finance
•   Market, Law and Business Ethics
•   Business Processes and Technology
•   Leadership and cooperation
•   Demand and Supply Management
•   International study trip



                                             13

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CIO Summit 2013 - Keynote Pieter Schoehuijs

  • 1. Business & IT Pieter Schoehuijs, CIO February 2013
  • 2. Agenda • Introduction • Staffing Observations • Approach to Skills Development • 3 Examples that work for us 2
  • 3. Some key facts about AkzoNobel 2011 • Revenue €15.7 billion • 57,000 employees in 80 Countries • 40 percent of revenue from high growth markets • A leader in sustainability: Number 1 in Dow Jones Sustainability Indexes Revenue by business area EBITDA* by business area * Before incidentals 3
  • 4. Our ambition is to be the world’s leading Coatings and Specialty Chemicals company • Top quartile safety performance • Top 3 position in sustainability* • Top quartile performance in diversity, employee engagement, and talent development • Top quartile eco-efficiency improvement rate • Grow to €20 billion revenues • Increase EBITDA each year, maintaining 13-15% margin • Reduce OWC/revenues by 0.5 p.a. towards a 12% level • Pay a stable to rising dividend * SAM annual benchmark 4
  • 5. Our IT environment sure shows our size and legacy 41.000 PCs, running 4.500 servers, 15 data centers 1000+ apps/versions (with ≥ 30 servers) >10.000 mobile devices  3.000-4.000 server based applications,  IT internal headcount 992 FTE incl. 84 ERP systems (currently) in 47 countries  2.558 nodes on data network,  Starting to build comprehensive IT incl. 1500 stores processes  Many partners/suppliers 5
  • 6. Four strategic “must win battles” have been formulated to transform IT Continue to drive toward Simplify IT landscape shared services model of e.g. regarding commoditized systems and application portfolio, technology platforms infrastructure and key metrics Establish Integral IT management through Transition IT to be more teamwork and focused on optimizing transparency regarding business processes and people, financials, capabilities rather than projects and clear technology implementation governance supporting and support business objectives 6
  • 7. Typically, IT organizations lag reality • E.g. in the areas of – Geographic diversity – Age distribution – Skills • Due to – Outsourcing – Lack of job rotation – Insufficient focus on development – Legacy support needs 7
  • 8. Likewise, AkzoNobel IT is not balanced 992 IT Employees in 47 countries but the bottom of the pyramid is missing! >60 55-59 50-54 45-49 40-44 35-39 30-34 <30 0% 5% 10% 15% 20% 25% 8
  • 9. How do we become (and stay) the IT organization of choice? By: • Assessment • Communication • Motivation • Challenge Diversify • Internal Rotation Grow Talent  Traineeships Balance Skills  Training / Nourish Culture Development ......and much more 9
  • 10. Example 1; Traineeships work! • Concept: – A program to develop young talents into top IT- professionals (caliber: future CIO) – The program offers young talent 4 jobs in 2 years including recruitment, support, education & coaching – Cooperation and knowledge sharing between the participating CIO’s and organizations, current class of 5 people rotates between 4 companies – Perfect for jr consultant assignments, e.g. in projects • In 2½ years, already 8 passed through our organization and 5 are currently working Embracing the courage and curiosity to ask questions! 10
  • 11. Example 2; Develop culture to work smarter (not harder) • Concept: – Core Skills program to drive change – Mixed groups spend a week on personal and team leadership – Content includes the use of feedback, managing expectations and team dynamics – Keep people engaged, curious, aware, competent, communi cative and eager to learn • In 4 years, already 300 colleagues passed through this training Significant cultural impact ! 11
  • 12. Example 3; External training is essential • Leading by example starts at the top • Nyenrode/Delft MBA Business & IT – Modular, flexible – Program Review Board ensures demand driven content • >70 Students currently following this program from many different organizations Executive Development stimulated from the top grows tomorrows leaders today! 12
  • 13. MBA in Business & IT • Strategy and Organization • Ownership of Enterprise and Governance • Change Management and Organizational Development • Risk and Finance • Market, Law and Business Ethics • Business Processes and Technology • Leadership and cooperation • Demand and Supply Management • International study trip 13

Hinweis der Redaktion

  1. A training program to work smarter, to drive the cultural change we strive for, towards a high performing team, adding value to our businesses effectively