Mergers and movers and shakers—oh my!
By Debbie Bolla
Activity was the name of the game for 2011. It seemed as if every other week brought a major announcement—a landmark contract, a strategic merger, an executive on the move—all proving the continued growth and merit of HR outsourcing. Here we spotlight the visionaries who had the wherewithal to make this past year a game-changer.
IBM and Air Canada
For the nearly eight-year, $80 million (CAD) contract, IBM will provide HR services for Air Canada employees, managers, and retirees. The deal covers an HR contact center, employee data management, employee travel support, payroll, benefits administration, leave management, and certain recruiting services, all in support of Air Canada’s North American Operations. IBM will also provide software application support for the HR systems used to provide the services.
Kevin Howlett, senior vice president for employee relations, Air Canada
Howlett has plenty in his HR wheelhouse at the airline: strategic support to the business units, organizational alignment and strategy, talent management, recruitment programs, employee and occupational health services, employee development, and total rewards, including pensions and benefits. So it’s no wonder that he is looking to IBM to drive transformation, deliver service level agreements, and lower costs with this multi-year mega deal. Howlett has more than 25 years of related experience in the airline industry. He previously held senior-level positions at Air Canada Jazz and Canadian Airlines International.
Mark Levy, general manager, human resources and learning solutions, IBM
Levy says Air Canada will take advantage of leading technology, analytics, and more efficient business processes through the outsourcing agreement. The shift in resources will drive efficiencies to achieve a high level of services, as well as improve the overall employee experience.
NorthgateArinso and AstraZenca
The seven-year, multi-million-dollar deal includes streamlining HR services onto a global platform (euHReka), providing in-country payroll services for more than 100 countries, and delivering HR administration and talent management services from Manila, Buenos Aires, Granada, and Katowice for the pharmaceutical’s 65,000 employees in more than 100 countries.
Lynn Tetrault, executive vice-president, human resources and corporate affairs, AstraZeneca
Overseeing a swift delivery of aligning 65,000 employees in more than 100 countries onto the same systems and software was no easy feat for Tetrault. In fact, NorthgateArisno’s Chief Executive Mike Ettling recognized Tetrault for her courage, wisdom, and her ability to visualize her strategy (she was also named the 2011 Buyer Executive of the Year by the HROA). Before joining AstraZenca in the early 90s, Tetrault had a stint in private law practice, specializing in general corporate and healthcare law.
Mike Ettling, chief executive, NorthgateArisno
Ettling calls the seven-year contract with AstraZeneca a transformational event encompassing more standardization, more usability, and more automation than ever before in HRO. At NGA, he is responsible for leading and growing the global HR services businesses.
Kenexa and Eli Lilly
The five-year engagement will streamline Eli Lilly’s global recruitment strategies through Kenexa’s tools for on-boarding, recruiting, assessment, survey solutions, and employment branding.
Nancy Lange, senior director for global recruiting and staffing, Eli Lilly
Lange has elevated the staffing function at Lilly through the development, implementation, and management of recruitment delivery solutions. Overseeing operations with a presence in more than 50 countries, Lange sought to increase talent acquisition efficiencies for the pharmaceutical company in several of its global growth markets. Access to Kenexa’s centers of excellence in Asia, Europe, and the Americas will help to align services and technology.
Phil Stewart, president of recruitment solutions, Kenexa
Stewart says Kenexa’s ability to deliver comprehensive solutions that leverage all of the tools in the recruiting toolbox is what makes them a differentiator for Lilly. Stewart joined the company in 2007 and has held human resources director positions at DENTSPLY International and Sara Lee Corporation.
SAP acquires SuccessFactors
Legacy enterprise software provider SAP announced plans to acquire cloud-based business software provider SuccessFactors for $40 per share, a deal netting $3.4 billion. SuccessFactors delivers online tools for managing employee performance to its 3,500 customers on a subscription basis, which currently totals 15 million. The company agreed to purchase employment-recruiting service Jobs2web for $110 million just days later.
Bill McDermott and Jim Hagemann Snabe, co-CEOs, SAP
This dynamic duo is at the heart of SAP’s drive for innovation. With this move, McDermott and Snabe are striving to make the largest maker of business-management software better at meeting demand for new technologies, such as cloud computing, real-time analytics, and mobile applications. Snabe says the combination of the two companies’ assets can cover lines of business for any size organization.
Lars Dalgaard, founder and CEO, SuccessFactors
No shrinking violet, Dalgaard took a chance with SuccessFactors, piecing together assets from multiple companies, raising venture capital, and chalking up $1 million in sales in three months. In addition to improving how companies execute and transforming the software market, he has an optimistic view of the acquisition, calling the newly found ability to deliver solutions in the cloud historic.
ADP acquires The RightThing
The multi-process HRO vendor was able to round out its list of services with the acquisition of RPO specialist TheRightThing for an undisclosed amount. The deal increases ADP’s HR business process outsourcing functions, and also complements its existing applicant tracking and talent management solutions.
Regina Lee, president of ADP’s national account services, major account services, GlobalView and ADP Canada business units
Wearing her account services hat, Lee is responsible for overseeing major business initiatives to expand ADP’s market opportunity. Lee says the acquisition of The RightThing makes ADP a major player in the RPO field and help clients drive better manage talent, find quality hires and control costs associated with the recruitment process.
Terry Terhark, founder and CEO, The RightThing
The sale of The RightThing isn’t Terhark’s first RPO rodeo. He launched the recruitment process outsourcer in 2003, five years after his firm Selective Staffing, Inc., (SSi) was acquired by Aon in 1998. Terhark expects the long line of success of his company and ADP to deliver a strong value proposition to their combined portfolio of clients.
Randstad acquires SFN Group
Netherlands-based staffing-firm Randstad Holding substantially expands its North American footprint with the acquisition of SFN Group for $709.8 million in cash. The deal arguably makes Randstad the third-biggest human resources services provider in North America, while doubling its presence in the United States.
Ben Noteboom, CEO, Randstad
Fearless Noteboom was ready to make another big move for his temporary-staffing firm after helping it nearly triple its annual revenue since he took over in 2003. In addition to bolstering Randstad’s presence in the U.S. and increasing its portfolio of services, Noteboom says the deal has high potential for cross-selling, growth, and development.
Roy Krause, president and CEO, SFN Group
Krause has served at the helm of the company since 2003, leading the initiative to expand its professional services and outsourcing footprint. As a result, SFN Group has emerged as a market leader in recruitment process outsourcing—recently recognized as the number one overall RPO provider by HRO Today. Krause sees the merger as a continued growth mechanism for both companies, combining their services on a global level.
Movers and Shakers
New executive committee for the HROA
The HROA welcomed a new chair, vice chair, and secretary/treasurer for its executive committee to serve a two-year term starting in January. Encompassing more than 7,500 members, HROA strives to foster professionalism in HR outsourcing.
Chair: Rebecca Callahan, President, SourceRight Solutions
Callahan’s commitment to the industry continues to remain strong and grow as she takes on her new role as chair of the HROA. She plans on adding value to membership through enhancements to the website and providing educational initiatives. She is also a member of the global board of trustees and a board member of the RPO Alliance, a special interest group of the HROA.
Vice Chair: Kevin McDonald, director of HR, The E. W. Scripps Company
McDonald boasts more than a decade’s worth of experience working within both large and mid-market companies in virtually every aspect of HR operations, technology strategy, and implementation. A member of the HROA since 2007, McDonald enjoys being part of an organization of like-minded individuals who work together to improve the industry from all perspectives. For 2012, he sees the rollout of the COP-HR certification to the industry as a top priority.
Secretary/Treasurer: Michael Andrus, vice president of HR operations, Catholic Health Initiatives
Andrus has a unique perspective on outsourcing, having worked on both sides of the fence with a stint at Convergys and his role at CHI, managing the implementation of more than 16 outsourced HR processes. Also a member since 2007, Andrus says the scope of the HROA— technology, processes, governance, role transformation, and insight on contracts, vendor management, and finances—is impressive. He looks to further integration of the Buyers Group SIG into the HROA for 2012.
Movers and Shakers
Previous executive committee for the HROA
These luminaries lent their time and forward thinking to the group’s 7,500 members to make historic strides in transformation of the HR profession. This trio also improved internal collaboration with the RPO Alliance, HROA chapters, SIGs and committees to share best practices and align transformational goals.
Immediate Past Chair: LeAnne Andersen, vice president of global HR services, Best Buy
At the electronics retailer, Andersen is responsible for creating and executing strategies to ensure human capital excellence to support the financial growth goals of the company.
Past Vice-Chair: John Hindle, global marketing & communications lead, Accenture
Based in the United Kingdom, Hindle has been with Accenture since 2004 before his previous stint overseeing a consulting firm. Hindle is also an adjunct professor at Vanderbuilt University.
Past Secretary/Treasurer: Mary Sue Rogers, global managing director of HR managed services, Talent2
With more than 25 years’ experience, Rogers this year made the move to Talent2 after being with IBM since 2007. In her current role, she owns the strategic and day-to-day responsibilities for Talent2’s payroll and learning businesses.