Post on 19-Dec-2015
transcript
AREVA
Best in France Case StudyJanuary 2005 – June 2005
Jennifer Chuppe
Miguel Diez-Blanco
Chen Guo
Alessandro Pagella
Roger Pelaud
Executive Overview
The objective of this study is to understand how a major French public company adapts its domestic HR strategy to attract and retain talents abroad
The focus is on the US and China The HR strategy is very much in line with the company’s
strategy Internationalization of the group operations is very much
facilitated by HR strategy The purpose of this presentation is to detail the triggers that
enable a major company to be more efficient abroad thanks to their HR approach and perspective
In a nutshell, let’s discover the best of HR practices acting as an engine for the company mid to long term policy and need for internationalization
AREVA
Number 1 in the world for nuclear energy
Number 3 for electricity transmission and distribution
Number 3 in connectors
We bring solutions for electricity
production and delivery
AREVA’s Mission
Innovate to contribute to an ever cleaner, safer and economical way to produce and deliver electricity.
Basic principles : Profitable growth : Client satisfaction, economic
and financial performance, innovation and R&D. Socially responsible : Involvement, dialogue and
consensus-building, community involvement. Respect for the environment : Risk management
and prevention.
The AREVA Company
Simplified legal organizational chart
AREVA’s 5 businesses
[C] COGEMA[F] Framatome ANP [T] AREVA T&D[Fi] FCI
11 22 33 44 55FRONT END DIVISION
REACTORS & SERVICES DIVISION
BACK END DIVISION
TRANSMISSION & DISTRIBUTION DIVISION
CONNECTORS DIVISION
CCCCCC
CC
FF
FF
C/FC/F TT
TT
TT
FiFi
Communications Data Consumer, Automotive, Electrical power interconnect, Micro-connections
2 %19 %
21 %58 %
Europe & CEI
Americas
Asia-Pacific
Africa
Key Figures
Sales by activity (In millions of € )
2 683
24 %
2 124
19 %
2 023
19 %
2 859*
26 %
1 338
12 %
Front End Division
Reactors &Services Division
Back End Division
Transmission &Distibution Division
ConnectorsDivision
Sales by region
Sales Consolidated Net Income Workforce
11 109 M€428 M€71 590
8 265 M€240 M€50 147
2004 2003 2002
11 114 M€357 M€69 816
Workforce20 principaux pays (sur 70) = 94 % des effectifs
France
Who are the company’s clients?
Nuclear
ENERGY DIVISION
T&DIntegrated electric utilities
Transmission companies
Major consumers of electricity
Who are the company’s clients?
OEMs
EMS
Telecom Market IT MarketCONNECTORS DIVISION
What are clients’ expectations?
Receive products, services and expertise enabling them to grow while meeting their responsibilities with regard to their own stakeholders
Receive what is promised
Respect for their culture and protect their image and their interests
Protect their data and know-how with the same degree of care as if they were Areva’s own, to the fullest extent of the law and regulatory requirements.
The importance of France
France still represents 29% of their sales revenues. The largest customer, EDF,
represents less than 20% of the Group’s consolidated sales revenue.
France still is, and will be, a key factor for AREVA’s core business.
Company values
AREVA’s values are the group’s commitment to its customers, its employees, its shareowners and all of the communities in which AREVA plays a role, directly or indirectly. These values are:
CUSTOMER SATISFACTION PROFITABILITY RESPONSIBILITY INTEGRITY EXCELLENCE SINCERITY PARTNERSHIP
Company values
These values are rooted in the conviction that rigorous business ethics are integral to strong financial performance
As a French company, Areva has no problems to encourage these values in France
Globally, Areva ensures that these values are instilled by means of the AREVA values charter counting on every person belonging to the company, regardless of his/her duties, affiliate or country, to put the company values into practice, to defend them, and to promote them.
Areva’s Global HR Policy
France still most employees French company
Government owned Unique culture
Hiring: 70% engineers No extraordinary high compensation, but
Opportunity to develop Talent cultivation
Areva-University (focus on top-level management) Formal, both locally and internationally focused courses
for each hierarchy level of management Training centers in France, U.S., France First time: expression of the HR policy in the annual
report
Areva’s Regional HR Policy
Most important countries Europe: France & Germany USA China !
France & Germany: steady/declining number of employees Germany: political climate unfavorable concerning
nuclear plants USA: Trying to hire high-potentials, but difficult to compete
with other companies (i.e. GE, Westinghouse) due to Salary offered by competitors Fact, that it is a French government-owned company:
no stock options. Agreements with MIT: knowledge center
Areva’s Regional HR Policy: challenges
Europe: shaping talent, talent building
Asia: talent development and retaining
USA: knowledge management, compensation and benefit
Areva’s Regional HR Policy - China
Clear Focus on China Chinese Market seen as key-market, because of
proximity to customers (note: not primarily because of lower labor costs!)
Trying to attract mainly Chinese high-potentials, who have been studying abroad, preferably in France
Key characteristics: well-known schools, international exposure, native Chinese speakers, mobility
French language is an asset Problematic: high employee turnover rate! Compensation system very different in China
Employees demand benefits apart from salary, such as pension plans for parents, housing assistance, etc.
Key Constraint Costs
Costs important for site and operational business – movement towards low cost HR will not be outsourced since it is important from a
strategic standpoint for Areva to have a global HR policy as well as regional management to address specific cultural differences
Tradeoff between cost and quality – prefer to produce in ‘low cost’ country, but must maintain a high level of quality – complex tasks completed in France
Compensation varies by region to account for various cultural differences Example: in China there is a movement to offer a
benefit whereby the employee’s parent is offered retirement benefits (Areva has not implemented this as of yet)
Key Benefits
Areva wants to be close to their clients (i.e. Asia, Americas) while maintaining their roots as a French company Currently building expertise in Asia Operations in France and Germany are higher cost in
comparison to other regions Company is owned by the French government but does not
have assistance from ‘local governments’ in the regional (international) locations
Recruiting in France is easier in comparison to other region thanks to Areva’s strong brand Striving to improve and educate other regions about the
Areva brand
Key learnings and recommendations
“Think global, act local” applicable to HR
Transition to become a global player driven by HR
Learn about local nuances and competitive advantage, hence focus
HR can tackle competition from the recruitment point of view
We Thank
For their contribution, support and trust Mr. Frédéric Thoral, Vice President Human Resources
and Managerial Communication Mr. Henry Dufourmantelle, corporate Campus
Management Director Their input was exhaustive and acted as a trigger for
further and deeper understanding of the HR strategic role