Avon PPT..HRM.pptx.................................

avon

1. Presenters Salah ud Din ahmad Ahmed waleed

2. AGENDA Introduction Case Analysis Situation Analysis Strategic initiatives Strategic Restructuring Base of strategic implementation Strategic implementation process Conclusion 2

3. Introduction Avon is a globally recognized personal care company with a history spanning over a decade. Avon was founded in 1886 by David H. McConnell, Avon began as a generic perfume business. Avon is 120-year company that focuses on women empowerment and their growth around the world They started business by selling books door to door, and they used to distribute free sample perfume along with the books as good gesture . Soon they decided to shift their business towards perfumes because customers were most interested in it. 3

4. Introduction They launched their perfume company in 1886 . Company had a great growth of 8 billion dollars in 2005 . After 2006 faces many challenges in terms of revenue because their resources were not as competent as it was growing faster in terms of time. Resources were not up to the mark for survival. 4

5. Case Analysis 5 There was a gap existed in Avon talent and their abilities because they were unable to produce new talent. Before the launch of turnaround issue that Avon were facing issues like U nderutilization of resources Ambiguous Infrastructure Gap existed in talent practices, performance management and succession planning.

6. Case analysis To solve growth problem AVON introduced Turnaround model. Turnaround As they were about to introduce turnaround model they faced some issues in the organization. 6

7. Case Analysis Challenges 1. Opaque : Managers don’t have much knowledge about practices 2. Egalitarian : Measuring all employees on same level 3. Complex : Performance management criteria was difficult. 7

8. Case Analysis Challenges 4. Episodic : Performance reviews, talent surveys done on when managers determine. 5. Emotions : Decision taken on both subjective and objective facts. 6. Meaningless : Managers do not have teeth. 8

9. Strategic initiatives by AVON Turnaround Strategic Restructuring/Re- E ngnering 1. Moving from regional to matrix structure: AVON moved from regional and matrix. 2. Delayering: Reduces the hierarchy levels. 3. Investment on executive talent: They have invested on the development of top-level executive like HR head, finance, and marketing. 4. Creation of new capabilities: New capabilities were introduced like supply chain management. 9

10. Strategic initiatives by AVON Turnaroud What and How Execute on what: This emphasizes on simple and well-established practices that should dominate the company and in return company should produce earning and leaders. 10 Differentiate on how: There was issue existed when turnaround model was about to implement, and Avon has highlighted those issues. So according to Marshal smith model where model emphasize on leaders’ behaviour.

11. Strategic implementation process Opaque to Transparent Focus is on transparency. 1. Avon 360 Assessment Turnaround introduced transparency in Avon. The Talent Management group designed a 360 assessment model emphasizing leadership behaviour for success. Information is confidential; shared only with assessors to aid decision-making process, focusing on participants' desired behaviours. 2. Broad based transparency Career development plans "The Deal," outlining requirements and roles for success and knowledge for all associates . 11

12. Strategic implementation process Opaque to Transparent Focus is on transparency. Development courses The leaders are focused on participating in the leadership program to be monitored by the TM group, H ighlighting that Avon's investment in their future will lead to their success or failure being made public. Performance Review: Avon move from 3-point scale to 5-point scale so they can have a proper assessment about the performance. 12

13. Strategic implementation process Simple to Complex They converted from complex practices to simple practices. Traditional practices would also worked if they have properly executed. Some practices were naturally difficult so it as tough to make them simple. 1. Performance Management Ensuring associates align with turnaround goals is crucial. 10 pages performance management form and low participating rate. Business Benefit The purpose is to align associate with business goals and associate must work fir that goal. 13

14. Strategic implementation process Simple to Complex Simplest path Simplest way of aligning goals is to tell associate what their goals are and then they will focus on work in a very simple way. 14

15. Strategic implementation process Simple to Complex 2. Engagement Survey They focus on correlation between increasing engagement and various business matrices. Simplest path M aximize engagement with few questions and craft straightforward questions to prompt managers to boost scores and take clear action . 15

16. Strategic implementation process Egalitarian to differentiate we must assess the talent quality throughout the business, invest in talent based on inventory, achieve expected returns, and differentiate leaders by experience . Communication to leadership team Big bets They bet on small number of leaders and TM observed the performance of 5 to 10 percent of population and proper execution of talent practice. Tools and process 5 point scale performance assume that 15% of leaders failed to meet goals during the year if goals are challenging. 16

17. Strategic implementation process Episodic to discipline Avon had plenty of competent people all were very busy. P rocess like talent reviewing is complex to understand for typical manager. 1. Consistent global tools and processes Many companies have their own performance management tools. C orporate talent management was not as effective for the global competency. Talent management is controlled by SVP of HR and TM in Avon. 2. Adding TM structure globally TM created regional TM leaders and they are responsible for local implementation of global processes. 17

18. Strategic implementation process Episodic to discipline 3. Committed CEO CEO was very effective supporter of turnaround. She conducts performance review and clear goals. 18

19. Strategic implementation process Emotional to factual Company was genuine and focusing on employee relationships the firm got growth. leader’s personal knowledge of their associate performance plays a critical role in talent movement . Qualitative facts Qualitative facts were added everywhere from talent review to leadership. In talent review manager make decisions on individuals rating. Managers also review performance with peers and performance also review on next (top) level. They also provide help to have complete and honest decisions to ensure that data is correct. 2. Quantitative facts 360 assessment which provide survey and quantitative data. Data is based on facts. 19

20. Strategic implementation process Meaningless to consequential In talent practices managerial accountability is a key factor. T urnaround accountability in practice was not existed only some managers take personal responsibility for the implementing . Monetary accountability M aking a difference in leaders pay when they successfully and unsuccessfully managing. levers are used in every targeted way when they applied engagement survey improvement. 2. Associate led accountability TM empower associate to hold their managers accountable. TM sent memo to associates. 20

21. Strategic implementation process Meaningless to consequential 3. CEO led accountability Every six-month executive team member has to present their talent reviews to the CEO. Action taken in the last meeting, reviewed and progress is noted. 21

22. Thank you