Unibail Rodamco was formed when the two property management giants from France and the Netherlands came together in 2007 in a historic merger. Here we analyze the successful HR strategy of the company and what could be changed to make this strategy even more impactful

1. Human Resources strategy
Human Resources Management
Unibail-Rodemco
Designing a Winning
IE Business School Unibail Rodamco was formed when the two property management
giants from France and the Netherlands came together in 2007 in a
IMBA Nov 2010 N8 historic merger. Here we analyze the successful HR strategy of the
Group B company and what could be changed to make this strategy even more
impactful
Bertrand Rousseau
Daniel Balsemao Pires
Holly Ann Wright
Kundan Bhaduri
Mariana Penzini
Shaheen Samavati

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Table of Contents
INTRODUCTORY ANALYSIS .......................................................................................................................................................... 2
COMPANY DESCRIPTION ............................................................................................................................................................... 2
COMPANY CULTURE PRE-MERGER ........................................................................................................................................... 2
NEW CORPORATE CULTURE POST-MERGER ........................................................................................................................ 3
CURRENT HR POLICIES AND PROPOSED IMPROVEMENTS ............................................................................................ 4
FIVE FACTOR ANALYSIS ................................................................................................................................................................. 5
CONCLUSION....................................................................................................................................................................................... 6
APPENDIX ........................................................................................................................................................................................... 7
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INTRODUCTORY ANALYSIS
The following project analyses Unibail-Rodamco’s (UR) history, company culture and current HR
systems in an effort to detect the need for improvements between external alignment and
internal consistency to ensure the long-term growth of the company. Upon review, our team has
concluded that the changes made after the M&A and the current systems provide a good match for a
vibrant culture and organization. Organizational approach adopted during the merger was well
matched with the overall strategy. However we recommend the company review its financial and
team incentive policies as well as its adherence to standards concerning the environment.
COMPANY DESCRIPTION
Unibail-Rodamco is the largest commercial real estate company in Europe. Formed in April 2007 by
the merger of Unibail (Leading French construction business) and Rodamco (Dutch consortium of
independent companies with presence in 14 European countries), Unibail-Rodamco (UR) has adopted
a vertical integration strategy within the real estate business with interests in development,
investment and management of commercial properties. The company is known for its strength in the
shopping mall leasing space and has several agreements with prominent retailers in the market.
COMPANY CULTURE PRE-MERGER
Rodamco Europe
Sharing: Rodamco sought to bring transparency and openness to all their projects thereby driving
asset, financial and risk management of the best retail property portfolio. There was emphasis on
professional communication, clarity of thought and constructive feedback. Rodamco strongly repelled
secretiveness and cover-ups.
Predictability: Predictability and reliability were the foundations of Rodamco’s values that
encouraged people to give their best at their job. Associated values of honesty, consistency,
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responsible behavior and accountability were also linked to the success of the organization.
Team play: At the very heart of a successful organization is a strong team culture. Rodamco was no
different – Team player skills and cooperation were the basis for their multidisciplinary expertise. The
company seemed to form long-term relationships; both internally and externally, founded in mutual
respect, motivation and inspired engagement.
Constant Improvement: In addition to the focus on customers, results and quality, employees
were encouraged to value and promote proactively entrepreneurship to raise the bar in retail
property management, something that brought the company its success.
Unibail Europe
Technical Excellence: Unibail thrived on the technical competence of its people. The company’s
focus on using cutting edge technology to develop the latest structural designs was a statement of
the brilliance that Unibail expected from its people.
Financial eagle: Before the merger Unibail Europe had very healthy financial figures that made
them the strongest commercial property developers. The employee culture at Unibail valued financial
excellence that led the company to being the strongest player in the French commercial development
market.
Teamwork: Unibail’s strength as a company laid in their ability to harness their collective learning
for the benefit of the entire organization – whether in marketing, property development, leasing or
management.
NEW CORPORATE CULTURE POST-MERGER
The merger allowed the creation of a new company that combined Unibail’s development skills and
Rodamco’s retail footprint, investment strength and experience to ensure long-term value creation.
The resulting post-merger culture gathers elements from both companies and unlocks great value for
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all stakeholders. The resulting values are:
Customer Satisfaction: UR places the end customer at the heart of its strategy. It offers a bigger
value proposition that encourages them to select UR shopping centers. They build a complete
experience for the consumer by providing a memorable and enjoyable shopping experience through
the design of the shopping centers, scents, sounds, light effect, quality of stores, among others.
Performance & Results: The Company is focused on results and seeks the best people that would
be able to provide them out of the box thinking and help improve their competitive advantage.
Diversity: UR seeks a balance in terms of gender (currently at 49% women and 51% men 3), age
and background diversity that encourages creativity and different way of thinking.
Financial Soundness: UR is recognized by its low financial and business risk given it’s conservative
risk philosophy, being the only company in this sector with an A debt credit rating.
Entrepreneurial, autonomous, leadership centric, proactive focus: Skills development,
international rotation of roles and empowerment are tools UR uses to develop the leadership and
entrepreneurial skills for its employees.
CURRENT HR POLICIES AND PROPOSED IMPROVEMENTS
CURRENT STAGE CRITICAL ANALYSIS AND
RECCOMENDATIONS
Recruitment and Selection: Overall Human Resource Policies:
- European Graduate Program (EGP) - Focus placed on EGP could cause
rotational program – 1 year, multi- oversight in other areas – ie ‘blue-
country, multi-function collar’ staff. Consider increased
- UR has been recognized as the #1 attention to improving HR policies and
company in France for the ‘high level of allowing for best practices in terms of
responsibility offered to recently-hired health, safety and standards
young graduates’4 /guidelines for this class of workforce.
Career Management & Performance Management by Competencies
3 http://www.unibail-rodamco.com/W/cms_sites/SITE_16406/ressources16406/pdf1/2007_Full_Year_Results.pdf;
4 http://www.universumglobal.com/IDEAL-Employer-Rankings
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Appraisal It is important to have previously
- Standard job-grading framework for defined competencies and skills
career management and progression – required for each role in order to have
creates transparency and increased job a clear understanding on what it takes
mobility to continue growing in the company
- Pay grade system to ensure employees and to meet the requirements of each
doing a similar job receive equity in pay role.
– scope > seniority > core skills Incentives + Teamwork:
- 360-degree feedback to encourage - Performance based rewards are critical
coaching for development and in maintaining company culture (best
assessment on employee performance. performing employees should receive
As a result, an action plan is defined a higher bonus).
based opportunities including training. - In an effort to foster collaboration,
sharing of best practices and common
Compensation: goals, UR could implement team or
- The total compensation plan includes business unit based financial
other benefits besides salary such as a incentives.
company Saving Plan, Stock Options and Performance Reviews:
a standard Pension Fund Increase frequency: quarterly goal and
Employee Development: performance discussions; semiannual review;
- EGP Rotational annual 360-degree feedback analysis
- Training to develop a ‘common language’ Environmental Focus:
among the staff to ensure processes are - Increase company focus on
carried out the same way through the sustainability and environmentally
organization regardless of location friendly methods to ensure long-term
Designed to empower employees to success beyond the code of ethics
make sound decisions in complex through incentives.
situations involving huge investments.
Code of Ethics: 3rd Party, Subcontractors + Supplier
Set of values and principles that every Standards:
employee, manager and director in the - Protect reputational risk by increasing
company must respect and should public transparency and creating
comply with. Values are based on the policies to ensure the highest
respect of law, individuals and Group’s standards for 3rd party vendors,
internal rules and regulation. subcontracted employees and supplies
used by UR
FIVE FACTOR ANALYSIS
I. Environment: Given that UR is active in a wide range of business functions (construction, project
finance, sales and maintenance), it is critical for the company to attract a human capital base with a
wide range of skill sets. For this reason, it is imperative that it has access to the Pan-Euro talent pool
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for recruiting purposes, and hence the diversified generalist hiring methodology works for the
company at the moment.
II. Strategy: UR differentiates itself with high-level, unique and architecturally advanced assets.
Given this focus, the skills and experience of UR’s employees serve as the company’s unique asset.
III. Workforce: The company seeks to build its human capital with individuals possessing a diverse
range of profiles: experience in finance, economics, engineering or other related fields. This
highlights the company’s commitment to bringing diverse perspectives to issues. The company is
focused on hiring bright, ambitious, results driven, detail oriented individuals educated at the top
schools in the countries that UR operates in. The company wants flexible learners and believes that
its approach to workforce selection helps get people who are adaptable and can take educated risks.
IV. Work Organization: As per the UR’s code of ethics, accountability within the work organization
comes from teamwork, one of the Group's core strengths. Clear communication and mutual respect
foster a high-ownership environment that empowers every individual to act and achieve. The
organization encourages its teams to be ambitious and therefore seeks a close fit on this aspect of
the work organization. The Group's work organization is built around excellence based on
commitment, responsiveness, initiative, creativity and innovation.
V. Culture: Results and performance oriented.
CONCLUSION
The team believes Unibail-Rodamco has incorporated many of the right HR tools and changes to the
company culture after the M&A to ensure long-term success in the market. The organization today
values diversity, skills, training and international mobility allowing the company to develop a ready-
to-go workforce that can perform under global challenges, new areas, demanding fast decision
making, handling risks and delivering results.
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APPENDIX
Unibail-Rodamco Portfolio of Investments:5
76% in Shopping Centers
8% in Conventions & Exhibitions
16% in Offices
Unibail-Rodamco International Presence Figures:6
63% in France
7% in Netherlands
9% in Nordic
8% in Spain
7% in Central Europe
6% in Austria
Visuals from Unibail-Rodamco Properties in France
Carrousel du Louvre (Paris, France)
CNIT La Defense (Paris, France)
5http://www.marketwatch.com/story/unibail-to-buy-rodamco-in-148-billion-property-merger
6 http://www.marketwatch.com/story/unibail-to-buy-rodamco-in-148-billion-property-merger
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