Winning People

Human Capital
“Hiring, retaining and developing

great people is the biggest

challenge and single greatest asset to
the success of any business..”

Scott Mc Nealy, CEO Sun Microsystems

Winning companies understand that people provide the real advantage.

However, skilled employees are a prime resource that is becoming
increasingly scarce. The Human Capital team at Ernst and Young
understands the challenges of developing talent and growing
organisational capability through people. Our consultants work with
you to design and implement people-oriented strategies that benefit the
business, employees and other key stakeholders. Our team brings
together professionals with functional experience, implementation skills
and business focus to assist clients in achieving strategic objectives.
We work collaboratively with clients to find solutions based on their
knowledge of business and our understanding of HR best practices.

Winning solutions
People Strategy Performance & reward
ƒ Human Resource Strategy ƒ Corporate Governance & Board Performance
ƒ Leadership & Change ƒ Performance Management
ƒ Mergers & Acquisitions ƒ Compensation & Rewards
ƒ Restructuring & Privatisation
ƒ Communication
ƒ Talent Assessment & Acquisition
ƒ HR Outsourcing

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Winning People People strategy
Human Resource Strategy

“In 1978, on average, book value represented

95% of market value, while 10 years later it was
28%. Today it is estimated that 80% of stock
market value is driven from assets that do not
appear on the balance sheets, assets like people,
brands, knowledge and relationships.”

Richard E S Boulton, Barry D Libert, Steve M Samek,

Cracking the Value Code (2000)
 Building a human
resource strategy that
delivers
Challenge:
How can HR teams link their strategy and processes to
business needs of the organization and show their impact
on the bottom line?

Solution:
At Ernst & Young, we work with your HR professionals to develop the most effective business solutions.
Combining your knowledge of business and its priorities with our skills, experience and methodologies, we help
your HR function deliver demonstrable business results through:

• Clarification of organizational values which will drive people practices

• Streamlining and improving the HR functional structure and design
• Measurement and development of HR capability to work as a partner in
forming and implementing business strategy
• HR benchmarking
• Definition of key performance measures
• HR audit and due diligence
• Employee surveys

Design and implementation of HR business processes and policies including:

• Recruitment, selection and induction
• Performance management
• Compensation strategy
• Career and succession planning
• Training and development
• Retention and exit management
• HR policies and procedures
• HR technology

ERNST & YOUNG WINNING PEOPLE 3

Winning People People strategy
Leadership & Change

“A more complex economy demands more

sophisticated talent with global acumen,
multicultural fluency, technological literacy,
entrepreneurial skills and the ability to manage
increasingly delayered organizations.”
Chambers, E. G. et al,
‘Win the War for Top Talent’, Workforce vol 77 no 12,
December 1998

“The turmoil of the last 15 years is small

compared to what we will see in the next 15
years.”
Tom Peters
 Changing with the times –
leadership and change

Challenge:
Change is unsettling and it requires strong
and empathetic leadership. The organization
also needs to balance between its business
and people priorities.

Solution:
The Ernst & Young Human Capital team has worked with businesses experiencing
significant drivers for major change; like mergers, acquisitions, privatization or major
shifts in environmental factors. We draw on our experience to support you in defining
an agenda for change and equipping the organization to enable it and its leaders to
guide it. Our tools and approaches include:

• Assess organizational readiness towards change

• Design an organization linked to the business strategy
• Leadership assessment and identification
• Assist leaders in articulating a vision for change
• Support the development of business goals as well as targets
• Align performance management and rewards to the change process
• Identify competencies for success and assess and position key talent
• Conduct training on leadership skills such as coaching, counseling, teamwork,
motivation, empowerment etc.
• Communicate change and provide feedback on its impact to the leadership

WINNING PEOPLE 5
ERNST & YOUNG
Winning People People strategy
Mergers & Acquisitions

“One - third of all acquired firms are sold off

within 5 years and 90% never live up to their
expectations.”

(M. Leofke, “Why so many mergers?” Fortune Magazine)

Mergers and acquisitions

Challenge:
Mergers are not just about balance sheets,
cash flows or marketing synergies – they
are about people making the synergies
projected during the deal REAL.

Solution:
Our team at Ernst & Young can make the transition fuelled by mergers and acquisitions more effective. Successful
mergers and acquisitions require an integrated approach that connects business needs to people priorities.

It requires a comprehensive merger and acquisition strategy that includes:

• M&A due diligence including HR due diligence
• Announcement of the merger, its benefits and implications
• Finalizing post merger organization structure and leadership
• Announcement of key integration processes
• Developing consistent grades and fitment of employees within these grades
• Compensation and rewards policy
• Personnel policies and processes
• Cultural diagnostic and interventions

ERNST & YOUNG WINNING PEOPLE 7

Winning People People strategy
Restructuring & Privatisation

“Government enterprises represent the single

largest economic sector in the world economy.
Collectively they employ more people, command
a greater asset base and spend a greater
proportion of global GDP than any other
economic activity. The way in which reforms are
progressing in this sector includes
corporatisation, commercialization and
privatization of state owned enterprises. The key
driving force behind these initiatives is the
technical and functional restructuring of
business. This includes stakeholder buy in,
organizational and people related changes and a
change enablement process that runs through
the entire programme.”
World Bank Report on Privatization
 Privatizing through
institutional strengthening

Challenge:
Economic forces in India have aligned in a
manner, which has compelled traditional
government-run entities in the infrastructure,
power and telecom sector to privatize and
compete against global players.

Solution:
At Ernst & Young, we believe that to be able to steer our institutional clients to
become globally competitive players, a single window solution is critical. These are
solutions where we converge all our expertise in the areas of business consulting,
corporate finance and human capital. Some of our key offerings in a restructuring or
privatization context are:

• Develop a restructuring plan

• Define organizational design and corporate governance framework
• Developing commercial, finance, regulatory, information technology and
human resource processes
• Change in personnel policies and personnel information system
• Finalization of staffing and employee transfers
• Large scale training and communication exercises
• Leadership coaching and change enablement

WINNING PEOPLE 9
ERNST & YOUNG
Winning People People strategy
Communication

“Take at least as much time as you spend with

your financial analysts and spend it with your
stakeholders. Make them a strategic partner.”

Jeffrey Sonnenfeld
Communicating with key
stakeholders to build a
responsive organization
Challenge:
How can your organization engage in a
dialogue with employees that involves them
and ensures that knowledge and
information flows to where it is needed, in a
timely manner?

Solution:
We partner with our clients to ensure that employee communication is aligned to the key stakeholders and addresses
the fundamental issues of organization and its people. Some of our deliverables in the area of organizational and
employee communication are:

• Identifying key stakeholders

• Assessing stakeholders’ needs
• Developing a focused communications strategy
• Media selection and development of key messages
• Design of print, video and electronic communications
• Employee communication training and involvement in organizational communications
• On-going communication and feedback

ERNST & YOUNG WINNING PEOPLE 11

Winning People People strategy
Talent Assessment & Acquisition

“If we don’t get the people thing right, we lose; it

is the most important thing in all our
businesses.”

Jack Welch, former CEO, General Electric.

 Assessing and acquiring
talent
Challenge:
Strategic talent is the primary asset of most
organizations. Do you recognize that
strategic talent is in greater control than ever
before and talented employees understand
their value to the employer? Furthermore,
they do not comply with the rules of the
retention game.

Solution:
The Ernst & Young talent assessment & acquisition team is uniquely positioned to
work across industry segments, to provide strategic talent acquisition solutions to key
clients. The team works in close co-ordination with clients to provide inputs to the
process of identifying and acquiring talent. Ernst & Young’s talent acquisition services
provides comprehensive solutions, focusing on:

• Acquiring key executives for strategic positions

• Developing strategies for executive development

• Leadership assessment

WINNING PEOPLE 13
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Winning People People strategy
HR Outsourcing

“Now that network is becoming a strategic part of

most businesses, many outsourcing customers
aren’t looking for providers who can do it more
cheaply than they can…they want providers who
can do it better than they can.”

Interweek
Outsourcing HR to create
value internally
Challenge:
As a start up or rapidly growing dynamic
business, how can you resolve your people
issues efficiently without diverting precious
time and money to support an in-house HR
function? Alternatively, as an established
business, how do you free up your HR team to
operate more strategically?

Solution:
You need great thinking, the right people and the best technology to get and stay ahead of competition – and
create wealth and success. We help clients in achieving this by:

• Identifying HR activities that can be outsourced

• Delivering technology-enabled HR self-services

• Providing retainer services of key HR capabilities

• Redesigning HR processes based on best practices

• Providing implementation support

ERNST & YOUNG WINNING PEOPLE 15

Winning People Performance & reward
Corporate Governance &
Board Performance

“Success lies in a Board’s taking full,

independent responsibility for the smooth
functioning of each of the organization’s core
processes.”

Robert F Felton
 Corporate governance and
board performance
Challenge:
With an increased focus on effective
corporate governance, Company
Directors and Boards are becoming far
more interested in understanding what
effective Board performance and
contribution “look like”, what they can do
to improve stakeholder value and build
transparency and accountability.

Solution:
Our experience has shown that the conduct of annual Board reviews ensures that
Board members are able to receive regular feedback. This generally includes an
understanding of organizational performance as per stakeholder expectations,
corporate governance practices, risk management and accountability. Sometimes,
Directors prefer us to facilitate a Board “self-assessment” process based upon
confidential interviews and a tailored questionnaire administered to Board
members, the CEO and members of the executive team. Some of key areas
wherein we have assisted clients include:

• Board structures

• Board review process

• Board committees

• Operating committees

• Director’s remuneration

• Performance measures

ERNST & YOUNG WINNING PEOPLE 17

Winning People Performance & reward
Performance Management

“Sometimes what counts can’t be counted, and

what can be counted doesn’t count. ”

Albert Einstein
Total performance
management
Challenge:
The increasing competitive pressures and
stakeholder demand for management
accountability necessitates greater clarity and
accountability across the organization. It is
imperative for organizations to build objective
and transparent means of defining, measuring
and monitoring performance.

Solution:
Our experience has shown that objective and transparent means of measuring performance can be the most effective
driver of business success and employee morale. We have helped clients define measurable performance criteria,
aligned to their strategy, and cascaded it down to the last employee. We have assisted clients to achieve greater
accountability across the organization and more consistent and transparent reward mechanisms based on performance.
Some of our key solutions in this area are:

• Performance measures

• Performance appraisal process

• Performance pay

• Performance feedback and counseling

• Career and succession planning

ERNST & YOUNG WINNING PEOPLE 19

Winning People Performance & reward
Compensation & Rewards

“If you pick the right people and give them the
opportunity to spread their wings – and put
compensation and rewards as a carrier behind it
– you almost don’t have to manage them. ”

Jack Welch
 It is not always about
money. It is about how
much you value them.
Challenge:
How do you ensure that you are able to create
and maintain the delicate blend of base pay,
incentives, perquisites and stock options,
while ensuring that the compensation
philosophy is aligned to business strategy?

Solution:
At Ernst & Young, we strive to partner with our clients to create powerful
compensation solutions that help them attract, motivate and retain employees.
These include:

• Developing compensation strategy & policy

• Benchmarking market compensation levels

• Compensation structuring

• Executive compensation management

• Defining reward strategy and policy

• Design of reward management, variable pay and incentive processes

• Valuation and cost assessment of new reward strategies

• Designing flexible benefit programs

• Designing Employee Stock Option Plans

WINNING PEOPLE 21
ERNST & YOUNG
….about our services
“...Definitely would hire them again”
Mahindra & Mahindra Ltd

“… a very fruitful experience…..A job well done”

Ranbaxy Laboratories Limited

“Level of commitment and passion that the

team displayed was of a very high level”
Pfizer Ltd

“Understood the organisation well, handled people sensitivities,

new thinking ...”
DCM Shriram Consolidated Ltd

“Great chemistry, clear scope, all promises kept,

smooth closure”
Adidas

“Solutions that have been developed are innovative and practical..

communicate well and are responsive ”
Andhra Pradesh State Electricity Board

“We are confident of the team we are dealing with”

Ports, Customs & Free zones, Dubai

“Enthusiastic, energetic & technically sound team”

ARAMCO Gulf Oil Company, Saudi Arabia
BANGALORE
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