This presentation has been created by Steve Pierce for his keynote session at our HR Innovation and strategy Challenger Meeting Spring 2016

1. © Hitachi Europe Ltd. 2014. All rights reserved.
New Era in HR: Creating and leading an effective and valued HR function
Stephen Pierce
Chief HR Officer, Hitachi Europe

2. Founded in 1910 as a machine repair shop at Kuhara Mining
Company in Hitachi City, Japan
Hitachi founding spirit (Values): Harmony, Sincerity, Pioneering Spirit
Corporate credo: Contribute to society through the development
of superior, original technology and products
Founder Namihei Odaira Original repair shop (1910)
Hitachi

3. Information & Telecommunication Systems Power Systems
Railway Systems Construction Machinery
Service
IT Service, Data Centre Solutions, Consulting
System Solutions
Large-scale systems, Highly reliable systems
Finger Vein Authentication
Healthcare
Hardware, Software
Rolling stock + maintenance
Electrical components
Signaling / Train control systems
Nuclear Power Business
T&D - Transmission & Distribution
Platforms
Hitachi in Europe
Hydraulic Excavators
Wheel Loaders
Mining Equipment

4. Global Talent Challenge
4
〔FY2012 Results〕 〔FY2015〕
Total
Overseas
Japan
FY2015 Target : Overseas revenue ratio 41% ⇒ over 50%
[20]
[12]
[8]
[10]
[50]
[16]
[9]
[7]
[9]
[59]
North
America
North
America
Europe
China
Japan
Overseas
Revenue
Ratio
Over 50%
Europe
Asia and others
Japan
Overseas
Revenue
Ratio
41%
Emerging
countries
Emerging
countries
Asia and others
China
Overseas Revenue Ratio
【Revenues by Region】
[ ]: % ratio
Headcount
326k
118k [36%]
208k
350k
150k [43%]
200k

5. 1) What the world thinks of HR
2) Key focus areas for success
3) The HR team
4) You as the leader
5) Summary of what matters
6) Questions, comments and discussion
Agenda

7. © Hitachi, Ltd. 2016. All rights reserved.
The Conference Board: 2016 CEO Challenge Report

8. Hitachi - Activity analysis survey:
181 companies, 4318 respondents (HR/GA)
8
Global Overall Result

9. Function summary
9
About 50%
26.1%
13.0%
9.2%
8.4%
7.9%
6.4%
6.2%
5.9%
5.9%
2.7%
2.3%
2.3%
1.4%
1.1%
0.8%
0.3%
Time per Function (hours)
Main Findings:
 Most time is spent on General
Affairs, Recruiting and Staffing,
and Employee/Labor Relations
activities
 Time dedicated to Talent
Management, Organizational
Development, and HR Strategy
and Planning shows minimal
effort in these critical areas
General Affairs
Recruiting and Staffing
Employee/Labor Relations
Training
Payroll and Time & Attendance
Benefits
HR Department Management
Safety
Compensation
Talent Management
Non - HR Activities
HR Information Systems
Organizational Development
HR Communication
HR Strategy and Planning
Other

10. Gap Between Importance and of Satisfaction
HR/GA fundamental activities
Organizational effectiveness
Talent development and management
Business growth
Cost efficiency
Governance and risk management
A gap between importance and satisfaction indicates a point of
disconnect between business expectations and delivered results
HR assessment survey
5837 respondents (Business Line: 4397HR/GA:1440)
10

11. CEO Questions for Global HR
How do we accelerate a
culture embracing
Globalisation and excited
by change?
How do we find/ attract
‘top talent’ into our
company?
Who is our top
talent? How do we
develop/retain
them?
How can we grow
our people to meet
tomorrow’s
challenges?
How do we maximise
the contribution from
our staff?
How does the
performance of my
Management team
and staff compare
to others?
.

14. It’s the
Business,
Stupid!

15. 1. Focus on the Business:
What action must we take so our organisation’s
people capability can deliver its business goals?
But do we know the business’s customers,
markets, strategy, P&L....and speak their
language?

16. 2. Focus Externally

17. Megatrends:
The trends shaping work & working lives
Key changes that have shaped work in recent
times, include:
• De-industrialisation
• Demographic change
• Educational attainment
• Decline of collectivism
• Dramatic shifts in organisation size

18. Workplace Trends
• Flexibility abounds
• More people are working for themselves
• Not sticking with one job for a lifetime
• Work-life balance is a priority
• Personal branding is all the rage

21. © Hitachi, Ltd. 2014. All rights reserved.
3. Focus on Change
21
Change our
Approach
= Growth
Accept the
status quo
= DeclineBusiness Change Curve
Strategic Inflection Point
From ‘Only the Paranoid Survive’ - Andy Grove
The Inflection Point

22. © Hitachi, Ltd. 2014. All rights reserved. 22
“If you keep doing what you are doing,
you’ll keep getting what you are getting”

23. 4. Focus on Organisation Culture
FOCUS
CONNECTION
ATTRACTION

24. “Ignoring the health of your culture
is like letting aquarium water get dirty”

25. Global Hitachi Values
FOCUS
CONNECTION
ATTRACTION
Harmony
Sincerity
Pioneering
Spirit

26. Values for New Rail Company
FOCUS
CONNECTION
ATTRACTION
Harmony:
Respect
Trust
Sincerity:
Integrity
Open Comms
Pioneering
Spirit:
Innovation
Ingenuity

27. Hello,
my name is
CULTURE

28. © Hitachi, Ltd. 2014. All rights reserved.
5. Focus on Delivery
28

29. 6. Focus on
engagement & developing relationships
to build trust & influence

30. 7. Focus on Financial Benefits

31. © Hitachi, Ltd. 2016. All rights reserved.
22%
10%
Results by: Hitachi Respondents
Transactions
70%
Planning
20%
Strategy
10% Strategy
15%
Planning
55%
Transactions
30%
FY12
HR Transformation
Hitachi HR Focus Transformation
FY18
Decreased
Cost
Increased
Value
Efficiency
Effectiveness

32. © Hitachi, Ltd. 2016. All rights reserved.
Hitachi’s HR Roadmap
Global Basic HR
-Global HC visibility
-Global Compensation Structure (HGG)
-Global Performance Management
-Global hire process/Taleo
-Employee Survey
-HR Shared Services
-Introduced Talent Management (O/TR)
- Global Leadership Development
programs
Future is Here
-Integrated GPM on Workday
-Integrated GLD/OTR on Workday
-Integrated Learning and Development
(CSOD)
-Skills and Competency Management
-Search Global Talent by skills and
competencies
Expand Accountability culture
Transform HR Role
Transform Business Leader Role
Best in Class HR
Capabilities
-Introduce LMS (CSoD)
-Introduce Global HRIS
(Workday)
-HCDB on Workday
-Continue Global Survey
(Hitachi Insights) annually
-Comp & benefit governance
and cost control on a global
scale
-Compensation Career Ladders
and HGG utilization
-Strategic Analysis: Cross
Reference – Financial, Survey,
Business Performance data.
-Introduce EWLC & Expand
HRSS in 5 RHQ
Business Value
2015 and beyond
2013-2015
2017-2018
2015-2018
32

33. © Hitachi, Ltd. 2016. All rights reserved.
Interview and
Select
(Taleo)
Onboarding
(Taleo)
Performance
Management
(Workday)
Talent Reviews
(Workday)
Succession
Planning, GLD,
360°
(Workday, DDI)
Learning &
Development
(LMS)
Hitachi Competencies
Hitachi – Technology Solutions

34. Employee
Benefits
>$5 million Cost
reduction per year
Employee Survey
152,000
employees
participated with
a 78% response
rate
Database
Data for 250,000
employees registered
In Hitachi database
Workday ‘go-live’
In February 2016
Job Grading
50,000 positions
graded for
managers and
above
Careers Site
3,000 jobs
advertised
Around 2,500
hires and a talent
pool of 90,000
Performance
Management
100,000
employees
participated
Hitachi HR -
Progress….

35. © Hitachi, Ltd. 2014. All rights reserved.
Hire for attitude – never compromise
Don’t underestimate the importance
of emotional intelligence
‘Hire only people who are better than you’
Attitude x EQ x Capability = Achievement
What about your team?
35

36. © Hitachi, Ltd. 2014. All rights reserved.
And Finally….Look in the Mirror
36
Why should anyone be led by you?
What do you need to change to maximise your value
to your organisation?

37. Building an effective & valued HR function
1. Know the business & speak the language
2. Know what’s going on outside
3. Be a change agent
4. Develop the culture
5. Deliver results
6. Build great relationships with key stakeholders
7. ‘Show me the money’
8. Hire those who can do 1 to 7
9. Develop your team so they can do 1 to 7
10. Look in the mirror