Human Resource Management in Times of Change.

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Human Resource Management in Times of Change.
Dr. Schmidt-Reintjes, BMW Group.
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Agenda.
BMW Group A history of change and
challenges How is change managed at BMW
Group? Discussion / QA
3
BMW Group.Overview.
BMW Group
CarsBMW, MINI, Rolls-Royce
Motorcycles
Financial Services
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BMW Group. Global Vendor of Premium Vehicles.
Locations in Germany
Production Plants
CKD Plants
RD
Joint Ventures
BMW Group 2009 BMW Group 2009 BMW Group 2009
Car sales 1.286.310
Motorcycle sales 87.306
Employees 96.230
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BMW Group.Annual Comparison 2005 to 2009.

3rd Quarter 2010 Profit before tax 3.166m EUR
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BMW Group.A short history of change (1/2).

• 1917 Foundation of BMW GmbH as a limited
  company. Registration of the white-and-
• Blue logo as the Companys official trademark.
  Production of the first aircraft engine.

1923 Developed within just a few weeks, the R 32
motorcycle hails the advent of BMWs great
tradition in the two-wheeler market.
1928 Taking over Fahrzeugfabrik Eisenach, BMW
enters the car business (Dixi).
1945 Following destruction and dismantling of
its facilities, BMW starts to re-built in a
very hard process.
1952-1955 Large saloons, coupés, convertibles
and roadsters in the 501 507 model
range continue BMW car production after the war,
now for the first time at the Munich Plant. The
BMW Isetta, BMW 600 and BMW 700 meet customer
demand in the post- war years
1959 At the Annual General Meeting on 9 December
1959, small shareholders and Dealers prevent the
company from being sold off. With BMW thus making
a new Start as an independent mobility
enterprise, Dr Herbert Quandt becomes the Major
shareholder.
1962 BMW successfully makes its way out of the
crisis with the sporting and compact midsize New
Class Saloons.
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BMW Group.A short history of change (2/2).

• 1972 The new Headquarter designed by Professor
  Karl Schwanzer is completed
• For the 1972 Olympic Games. To this day the
  Four-Cylinder Building characterizes
• the Munich skyline.

1986 The new Research and Innovation Centre
(Forschungs- und Innovationszentrum, or FIZ) is
built near the Group Headquarters and the Munich
Plant. The FIZ is the hub of the Groups global
research and development network.
1992 BMW AG took the decision to built a car
production plant in the USA the Spartanburg
Plant.
1994 Purchasing Rover Group Ltd with its main
brand ROVER, LAND ROVER, MG and MINI, BMW AG
enters new market segments.
2000-2007 Rover Demerger and concentration on
premium segments with the BMW, MINI and
Rolls-Royce brands.
2007 Strategy Number ONE and new mission
towards a sustainable economic management.
2008/2009 Mastering world financial and economic
crisis.
2010 Strong growth in BRIC markets, record
performance on operating level. 2011ff. More to
come
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BMW Group. Strategy Number One has raised the
necessity for continuing change.
Annual Report 2007
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BMW Group. New challenges and needs for change
are under way
Challenges and trends
Market, customers und competitors
External challenges

• Shortage of raw materials
• Tighter legislation
• Changing values
• Mega-cities
• Demographic effect
• Sustainability
• Economic developments
• Capital market

• Growth in premium segment
• Opening up new customer segments
• Differentiation and individual mobility
• Product differentiation
• Downsizing/Downgrading

Innovations and targeted business model design
Internal challenges

• Efficiency and profitability
• Demographic effects

• Discernible customer benefits
• Partner management
• Changes to sales channels
• Service and after-sales business

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Changes in emissions legislation.CO2 regulations
becoming much stricter worldwide.
EU 27
China
Japan
USA
CO2
Group fleet 2008
2010
-10
-10
by2015

• 5
• to-20

gt -20
-20
-25
as of 2013under discussion
as of 2015

• 25
• to-30

by2016
-30
as of 2020
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Customer requirements.Understanding future
customer requirementswill demand a more
international approach.
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Agenda.
BMW Group A history of change and
challenges How is change managed at BMW
Group? Discussion / QA
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Leading Change Situation Analysis. Factors of
success in the change process.
Reward /Sanctioning
Alignment of managers
Enabling
Mobilisation
Resources
Communication Dialogue
Structures Processes Guidelines
Outward Orientiation

• BMWs Change Model is based upon
• Concrete experience in BMW change projects
• Kotter (1997) Leading Change
• Results of empiric research to Change Management
  by Cap Gemini (2005) / TU München (2006)

Change Objective
Basic Principles
Strategy Content
Challenges
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Leading Change Situation Analysis. Ability to
change and implement.
1. Companys Change requirements Conviction
that company must change. 2. Companys
Vision Support for the companys future
vision of itself 3. Companys transformation
plan Knowledge of an adequate plan for
conducting the change 4. Companys
performance Trust in the companys ability to
change 5. Leading and Advice Conviction
that practical change support will be given
Push Factors Pull Factors Path
Factors Energy Factors Engagement Factors
6. Personal wish for change Ambition and
readiness for personal change 7. Personal
match of values perception that personal and
company values are matched 8. Personal
transformation plan Knowledge of an target
oriented plan for personal change 9. Personal
efficiency Trust in the individual ability and
energy to change 10. Integration and
participation Perception that one is part of
the companys change activities
Binding Processes
for self-study
Source Harvard Business Review, Cracking the
code of Change, May (2000)
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Leading Change Change progress and
implementation. Change direction is determined
by the change concept followed.
high
Change Map
Securing survival Crisis Management/
organizational restructuring
Radical repositioning Strategic
turnaround/organizational redesign
Renewal Growth potentials
Current necessity for change
Learning organization Market responsiveness
Mobilizing Adaptability and developmental
capacity
low
Change capability/readiness
high
Source Doujak, Corporate Development
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Leading Change Change progress and
implementation. Leaders in the role of Change
manager.
Personally perceived competence for change
7. INTEGRATION of successful processes and
behaviours in ones own active repertoire
False sense of security exaggerated view of own
process and behavioural competence
2. DENIAL
3. RATIONAL INSIGHT that new processes and
behaviour are necessary
6. RECOGNITION why certain processes and
behaviours are successful, and others not
5. TRIAL AND ERROR Trying new processes and
behaviours Successes Failures Confusions -
Frustrations
1. SHOCK Major discrepancy between own and
others expectations, and actual reality
of reality letting go of old processes and
behaviour
4. EMOTIONAL ACCEPTANCE
Time
INFORMATION
COMMUNICATION
QUALIFICATION
COACHING
MONITORING
Source Change Works
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Change Competences HR perspective. Changed
competence needs on a corporate level are broken
down to the level of individual employees and
realized.
Competence
On a corporate level, competence means necessary
abilities of the enterprise which ensure current
and future success in business. On the
individual level, competence means usable
abilities, skills and knowledge which employees
are able to use to contribute to the achievement
of corporate requirements and targets in the
degree expected.
?
Strategic and operating Competence Management
The more change is necessary, the more HR
processes need to work hand in hand and in a
larger context to deliver expected results.
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How can competence be structured?One proposal
among many.
Top Level Job Families
Job Families
Overall Competence Level
Detailed Job Families
Specific Job Description
Functions, Technologies, Services, Products, Marke
ts,
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Change Competences HR perspective.A process to
propagate change from corporate down to employee
level was successfully piloted in a division of
BMW.
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Change Competences HR perspective.
Complementary to this top-down approach,
possibilities are currently investigated to
strengthen employee self-organization and
responsibility.
Daily needs of employees and supervisors
Synergy potentials of an internal Social Network
Easy search of expert knowledge and
transfer, identification of candidates for new
areas / shifting employment focus. Future
contact point for structured competence
management. Strengthening of networks /
self-organization / change in habits. Spread of
knowledge to groups instead of focusing on few
experts. Efficient co-work, savings in time
spent, increased quality. Reproducible exchange
on parallel topics as part of daily work.
Transparency across countries and time zones.
Find or found by myself professional topic
groups Find experts / co-workers or be
identified as an expert or as a contributor
myself. Work on professional topics
together, deliver individual contributions. Stay
informed on any topic of interest / adapt my
interests as needed.
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It is People who will make the Change work.Thank
you for your attention.
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Agenda.
BMW Group A history of change and
challenges How is change managed at BMW
Group? Discussion / QA