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A Case Study: Building Vale’s
Global Onboarding Program
         Desie Ribeiro                  Marta Enes
         General Manager of Education   Director of
         and People Development         Educational Technology
         desie.ribeiro@vale.com         marta.enes@affero.com.br
You will learn


                 • All the steps that made this organization’s global
                   onboarding program a successful case.



                 • How to engage stakeholders worldwide and to
                   build an effective and motivated network of local
                   HR professionals.



                 • How to design a global onboarding program for all
                   levels of the organization taking into consideration
                   cultural and profile differences.
Introduction




The onboarding process affects all Vale employees, located in over 30 countries
around the world.
Despite the cultural differences inherent in global work operations,
Vale employees perform a wide range of activities, supervised by global and
regional HR managers.


            Presented with these characteristics, how can we create a global
                                                         onboarding program?
Affero Partnership
                                                         affero.com.br




                     Affero is a leading Corporate Education company in
                     Brazil. It aims to be the key partner of top
                     organizations in the country, supporting the
                     implementation of organizational strategies through
                     a complete understanding of business needs and
                     the effective combination of products, services and
                     people.


                     It has been Vale’s strategic partner for 8 years,
                     developing and implementing several projects
                     involving the training and development of its
                     employees worldwide, Knowledge Management and
                     other initiatives.
Introduction

To create the new onboarding program, a diagnostic study was performed.
The necessary data was collected and analyzed in order to answer to three main
questions.
Who are we and
how do we act?
Who are we and how do we act?

To determine who are the people that make Vale the second largest mining
company in the world and how these people act, we considered the following
aspects:



                                Employee
                                 profiles




                                              Current
                    Cultural
                                            onboarding
                    aspects
                                             scenario
Who are we and how do we act?
Vale
                                                                                           Market capitalization2
    1       # 1 global Iron ore producer
                                                                                           US$ bn
    2       # 2 world nickel producer
                                                                                                     BHPB                               186

    3       # 2 metals and mining company in the world                                               VALE                         131

    4       # 21 company in the world1                                                          RIO TINTO                       107


    5       Market cap of US$ 131 bn, on Mar 05, 2012                                     ANGLO AMERICAN                 54


                                                                                                 XSTRATA                 54
            20 hours/day of trading: BM&F Bovespa, NYSE,
    6       Euronext and HKEx
                                                                                                FREEPORT               39

            3rd most traded ADRs in the NYSE in 2011,
    7                                                                                          GOLDCORP                38
            ranked by trading volume

    8                                                                                      NORILSK NICKEL              38
            Revenues (2011): US$ 60.3 Bn

    9                                                                                         NEWCREST              26
            EBITDA (2011): US$ 33.8 Bn

    10      Net Earnings (2011): US$ 22.9 Bn
                                                                                                    2As   of March 05th, 2012
8   ¹ Ranking of the 500 largest companies in the world by market cap – Financial Times
Who are we and how do we act?
Vale
An illustration: Vale in 1997 was a Brazilian exporter company with 10,865
employees¹




                                               Belgium
                 USA
                                                                             Japan
                                                             China




                                     Brazil




       Legend
       Operations
       Offices
       Exploration offices
       Headquarters



9 ¹ Vale’s employees including third parties
Who are we and how do we act?
Vale

Vale in 2012 is a global company with more than 140 thousand employees¹ around
the world…




10 ¹ Vale’s employees including third parties
Who are we and how do we act?
  Vale

…with a diversified business portfolio




          Iron Ore                     Logistics                       Nickel                        Fertilizers



                                    Operation of ports and ~                                     7.4 million tons of phosphate
          323 million tons                                         242 thousand tons
                                  10 thousand Km of railroads                                                  rock




               Coal                      Copper                 Steel minority                           Energy
                                                                 investments

                                                                 2 operations (joint-ventures)    Hydro Plants in Brazil, Canada
       4.51 / 2.82 million tons        302 thousand tons
                                                                        and 3 projects                   and Indonesia



  11
Who are we and how do we act?
Vale

               To transform natural resources into prosperity and sustainable
     Mission   development




     Vision    To be the No 1 global natural resources company in creating long-term
               value, through excellence and passion for people and the planet




               Passion for people               Excellence

                  Life matters most             Do what is Right
     Values
                Value our People                  Improve Together
                Prize our Planet                  Make it happen

12
Our challenge:
     To be the No 1 global natural resources
      company in creating long term value,
      through excellence, with passion for
             people and the planet.




13
Who are we and how do we act?
Vale Employees Profile

Research to gather social, cultural and work characteristics of the
employees, regions and countries that may affect the onboarding design
and delivery.




14
Who are we and how do we act?
Cultural aspects

In order to construct a global process, the cultural aspects of the initially mapped
countries were analyzed. To organize the actions, it was defined that the countries
should be divided into four large groups in accordance with their interests.

Besides religion and communication the criteria used were those established by
Geert Hofstede:



                  Uncertainty
                  avoidance                          Individualism
                    index
      Power
     distance                       Long term
       index                        orientation                       Masculinity




15
Who are we and how do we act?
Cultural aspects




 • Group 1

     Group 2

     Group 3

     Group 4




                     High-context communication, strong Uncertainty Avoidance Index, large
                     Power Distance Index, Catholic and Collectivity(Except New Caledonia
                     that is individualist).



16
Who are we and how do we act?
Cultural aspects




     Group 1

     • Group 2

     Group 3

     Group 4




                     High-context communication, weak Uncertainty Avoidance Index,
                     Feminine large Power Distance Index, Collectivitiy and Catholic (except
                     Guinea that is Muslim).



17
Who are we and how do we act?
Cultural aspects




     Group 1

     Group 2

     • Group 3

     Group 4




                     High-context communication, large Power Distance Index, Collectivity,
                     weak Uncertainty Avoidance Index (Oman has a strong UAI) and
                     Muslim (exceptions, Singapore is mainly Budhist; China is politically
                     defined as Atheist).


18
Who are we and how do we act?
Cultural aspects




     Group 1

     Group 2

     Group 3

     • Group 4




                     Low-context communication, weak Uncertainty Avoidance Index,
                     Masculine, small Power Distance Index, Individualistic and Catholic.




19
Who are we and how do we act?
Current onboarding scenario




      The current scenario of Vale’s            HR managers from the locations were
      onboarding process was studied in         interviewed to determine not only what
      several countries.                        the process is like, but also the gaps.




     Deve entender a importância de gerenciar
     a In Brazil, in addition toVale na sua
        implementação do GO the interviews, a   New hire and the regional HR were also
     regional. Employee” was sent to
       “Mystery                                 interviewed in a focal group conducted
       participate in the current onboarding    in Carajás.
     Devemos in Rio de Janeiro.
       process comunicar a sensação de
     dono no process relativa à organização
     e disparo do GO localmente.




20
What do we
want to be?



21
What do we want to be?
     Interviews with key-stakeholders




Vale’s executives involved in the onboarding program were asked to provide
information on strategic guidelines and business goal alignment for the project.

Key stakeholder requirements were used as input to the onboarding
process design, measurement and materials.




22
What do we want to be?
     Benchmark




23
What do we want to be?
     Benchmarking


In addition to the survey with other companies, we consulted the best-in-class
program survey (source: Aberdeen Group). These are some of the results:

       increase of 31% iof new hire retention rate;
       reduction of 24% in the time for productivity;
       reduction of 12% in the cost per new employee.

The study of the Aberdeen Group indicated that the performance of the best-in-
class presented :

       a success rate of 84% in relation to fitting the culture;
       a success rate of 68% in socialization.



24
How do we
get there?
How do we get there?


To depict the manner in which we will achieve the objectives we propose it is
necessary to determine:
How do we get there?
Who are we going to focus on?
How do we get there?
What should we resolve?



                          Comunication




   Informartion/                                Process
      training




          Management                     Infrastructure
How do we get there?
 What should we resolve?



Incomplete, outdated, non-motivational, unbalanced and
unorganized contents
and materials.
Lack of guidance from Vale’s
                                             Deficient communication process between
head offices regarding the
                                             the company and employees and
onboarding process and
                                             between employees.
contents.

Lack of qualified and   The onboarding                         Leadership            New hire work
motivated local HR      program is short,   New hire                                 tools, including
personnel to develop                        motivation rates   uninvolved with the
materials and           lacks efficiency                       onboarding process;   IT, are not
                                            drop very          Lack of engagement
conduct the             and                                                          promptly
onboarding process.     optimization.       quickly.           from managers.
                                                                                     provided.
Rethinking
the process
Rethinking the process?
 Phase II

As we have seen in the previously presented gaps, three categories stand out:
information/training; communication and infrastructure.


This indicated a need to redesign the onboarding process by re-modelling the
areas that do not either satisfy the needs of the stakeholders or maintain good
practices.
Rethinking the Process?
Phase II




     Step 1              Step 2                Step 3
                                               Step 3             Step 4

                                     Sep 3


                    Review list of        Re-design the       Design
    Outline         Gaps and              workflow to         instrucional
    the                                   eliminate gaps      strategies and
                    requirements
                                          and meet            materials to
    existing        related to
                                                              support the
                    each part of          requirements.
    workflow                                                  workflow.
                    the workflow.
    1.         1.   2.               2.   3.            3.   4.            4.
Rethinking the Process




Program Deployment
Rethinking the Process
Current Scenario




   • Company and employees profile.

   • Key-stakeholders interviews.

   • Benchmarking.

   • Gap Analysis.
Rethinking the Process
Change Management


  An easier way sell the new process:
  • Risks and Opportunities (impact x probability).
  • Checkpoint with stakeholders to validate strategies.
  • Workshop with pilot countries:
           a- planning best training session methodology for
  implementation;
           b- training sessions and tools validation with local onboarding
  facilitators.
Rethinking the Process
Change Management

Implementation Game
Rethinking the Process
Communication Plan

We want to comunicate:


                                      Care for
 Processes               Ownership
                                     Employees

The expected benefits are:


      Trust              Belonging   Integration
Rethinking the Process
   Management Model

  The Management Model integrates People, Resources and Technology

                                                               Administrative Portal
   Regional HR and
              SSO                                              User Portal

    Hiring Managers                                            HR Systems and Softwares

            Trainers
                         People       Technology
Corporate Structures
    (HR Processes,
  Health and Safety,
       Environment,
 Communication, IT,
                              Resources
                etc)                                Process

                                                    Tools (checklists, guides and
                                                    references, templates and
                                                    communication pieces)
Rethinking the Process
Management Model


Workflow


                   1                                      2
                Strategies and                         Models and
                Guidance                               Guidelines
                                                                        Cultural Groups
  Onboarding
   Sponsors
                                 Center of Expertise                   Local Onboarding
 (HR + SSO +
                                    (Corporate)                          Focal Points
Communication
   Directors)                                                           (Regional HR)
                Results of the                         Applicability
                Program                                Feedback

                       4                                      3
Rethinking the Process
 Performance Support, Education, Communication



  The global onborading program is composed by 5 macrosteps




                         Educating on Vale         My Role
Before Day 1   Day 1                                                Monitoring
                         and Our Business    and My Business Area
Rethinking the Process
     Performance Support, Education, Communication

     Divided in 8 shelfs, each one with an objective:

                                     1 – Select new hire
                                     2 – Onboarding setup
                                     3 – Infrastructure and working tools
                                     4 – Hiring procedures
                                     5 – Current employees awareness
                                     and orientation
                                     6 – New hire first welcome
                                     7 – Area and functional onboarding
                                     8 – Follow up and evaluation




41
Rethinking the Process
     Performance Support, Education, Communication

     Toolboxes, designed to different target audiences are displayed on each shelf.



              HR regional      Hiring        Current        New Hire
                              Manager       Employees




42
Rethinking the Process
Performance Support, Education, Communication



 Tools are grouped in boxes aligned with each activity’s objectives.
 The categories are:




    Communication                 Education              Performance Support
Rethinking the Process
     Communication

                 We have created tools to support a change management plan in order to
                 engage managers and current employees.




      Several tools help our employees to properly inform new hires.

44
Rethinking the Process
     Education



                    At Day 1, besides training the new hire, we should engage
                    them by presenting our Mission, Vision and Values and
                    teaching them how to find more information about their areas
                    of interest.




                               If the new hire does not achieve a satisfactory
                               result in the learning evaluations, there are tools
                               that will support Learning & Development teams in
                               planning reinforcement activities.


45
Rethinking the Process
     Performance Support




                           GO Vale Portal


46
Conclusion
Conclusion

This study was broad and complex and it involved
several areas of the company worldwide.

It provided inputs to create GO Vale (Vale’s Global
Onboarding Process), with structured processes,
well defined roles and responsibilities and support
tools for all the activities.

Now the HR professionals in the filed and
corporate areas should work together to create
a welcoming culture for the new hire,
guaranteeing a productive, integrated and high
performance work environment.
Thank you!



Desie Ribeiro                  Marta Enes

General Manager of Education   Director of Educational Technology
and People Development
                               marta.enes@affero.com.br
desie.ribeiro@vale.com


                                  affero.com.br
A Case Study: Building Vale’s Global Onboarding Program

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A Case Study: Building Vale’s Global Onboarding Program

  • 1. TU 116 A Case Study: Building Vale’s Global Onboarding Program Desie Ribeiro Marta Enes General Manager of Education Director of and People Development Educational Technology desie.ribeiro@vale.com marta.enes@affero.com.br
  • 2. You will learn • All the steps that made this organization’s global onboarding program a successful case. • How to engage stakeholders worldwide and to build an effective and motivated network of local HR professionals. • How to design a global onboarding program for all levels of the organization taking into consideration cultural and profile differences.
  • 3. Introduction The onboarding process affects all Vale employees, located in over 30 countries around the world. Despite the cultural differences inherent in global work operations, Vale employees perform a wide range of activities, supervised by global and regional HR managers. Presented with these characteristics, how can we create a global onboarding program?
  • 4. Affero Partnership affero.com.br Affero is a leading Corporate Education company in Brazil. It aims to be the key partner of top organizations in the country, supporting the implementation of organizational strategies through a complete understanding of business needs and the effective combination of products, services and people. It has been Vale’s strategic partner for 8 years, developing and implementing several projects involving the training and development of its employees worldwide, Knowledge Management and other initiatives.
  • 5. Introduction To create the new onboarding program, a diagnostic study was performed. The necessary data was collected and analyzed in order to answer to three main questions.
  • 6. Who are we and how do we act?
  • 7. Who are we and how do we act? To determine who are the people that make Vale the second largest mining company in the world and how these people act, we considered the following aspects: Employee profiles Current Cultural onboarding aspects scenario
  • 8. Who are we and how do we act? Vale Market capitalization2 1 # 1 global Iron ore producer US$ bn 2 # 2 world nickel producer BHPB 186 3 # 2 metals and mining company in the world VALE 131 4 # 21 company in the world1 RIO TINTO 107 5 Market cap of US$ 131 bn, on Mar 05, 2012 ANGLO AMERICAN 54 XSTRATA 54 20 hours/day of trading: BM&F Bovespa, NYSE, 6 Euronext and HKEx FREEPORT 39 3rd most traded ADRs in the NYSE in 2011, 7 GOLDCORP 38 ranked by trading volume 8 NORILSK NICKEL 38 Revenues (2011): US$ 60.3 Bn 9 NEWCREST 26 EBITDA (2011): US$ 33.8 Bn 10 Net Earnings (2011): US$ 22.9 Bn 2As of March 05th, 2012 8 ¹ Ranking of the 500 largest companies in the world by market cap – Financial Times
  • 9. Who are we and how do we act? Vale An illustration: Vale in 1997 was a Brazilian exporter company with 10,865 employees¹ Belgium USA Japan China Brazil Legend Operations Offices Exploration offices Headquarters 9 ¹ Vale’s employees including third parties
  • 10. Who are we and how do we act? Vale Vale in 2012 is a global company with more than 140 thousand employees¹ around the world… 10 ¹ Vale’s employees including third parties
  • 11. Who are we and how do we act? Vale …with a diversified business portfolio Iron Ore Logistics Nickel Fertilizers Operation of ports and ~ 7.4 million tons of phosphate 323 million tons 242 thousand tons 10 thousand Km of railroads rock Coal Copper Steel minority Energy investments 2 operations (joint-ventures) Hydro Plants in Brazil, Canada 4.51 / 2.82 million tons 302 thousand tons and 3 projects and Indonesia 11
  • 12. Who are we and how do we act? Vale To transform natural resources into prosperity and sustainable Mission development Vision To be the No 1 global natural resources company in creating long-term value, through excellence and passion for people and the planet Passion for people Excellence  Life matters most  Do what is Right Values  Value our People  Improve Together  Prize our Planet  Make it happen 12
  • 13. Our challenge: To be the No 1 global natural resources company in creating long term value, through excellence, with passion for people and the planet. 13
  • 14. Who are we and how do we act? Vale Employees Profile Research to gather social, cultural and work characteristics of the employees, regions and countries that may affect the onboarding design and delivery. 14
  • 15. Who are we and how do we act? Cultural aspects In order to construct a global process, the cultural aspects of the initially mapped countries were analyzed. To organize the actions, it was defined that the countries should be divided into four large groups in accordance with their interests. Besides religion and communication the criteria used were those established by Geert Hofstede: Uncertainty avoidance Individualism index Power distance Long term index orientation Masculinity 15
  • 16. Who are we and how do we act? Cultural aspects • Group 1 Group 2 Group 3 Group 4 High-context communication, strong Uncertainty Avoidance Index, large Power Distance Index, Catholic and Collectivity(Except New Caledonia that is individualist). 16
  • 17. Who are we and how do we act? Cultural aspects Group 1 • Group 2 Group 3 Group 4 High-context communication, weak Uncertainty Avoidance Index, Feminine large Power Distance Index, Collectivitiy and Catholic (except Guinea that is Muslim). 17
  • 18. Who are we and how do we act? Cultural aspects Group 1 Group 2 • Group 3 Group 4 High-context communication, large Power Distance Index, Collectivity, weak Uncertainty Avoidance Index (Oman has a strong UAI) and Muslim (exceptions, Singapore is mainly Budhist; China is politically defined as Atheist). 18
  • 19. Who are we and how do we act? Cultural aspects Group 1 Group 2 Group 3 • Group 4 Low-context communication, weak Uncertainty Avoidance Index, Masculine, small Power Distance Index, Individualistic and Catholic. 19
  • 20. Who are we and how do we act? Current onboarding scenario The current scenario of Vale’s HR managers from the locations were onboarding process was studied in interviewed to determine not only what several countries. the process is like, but also the gaps. Deve entender a importância de gerenciar a In Brazil, in addition toVale na sua implementação do GO the interviews, a New hire and the regional HR were also regional. Employee” was sent to “Mystery interviewed in a focal group conducted participate in the current onboarding in Carajás. Devemos in Rio de Janeiro. process comunicar a sensação de dono no process relativa à organização e disparo do GO localmente. 20
  • 21. What do we want to be? 21
  • 22. What do we want to be? Interviews with key-stakeholders Vale’s executives involved in the onboarding program were asked to provide information on strategic guidelines and business goal alignment for the project. Key stakeholder requirements were used as input to the onboarding process design, measurement and materials. 22
  • 23. What do we want to be? Benchmark 23
  • 24. What do we want to be? Benchmarking In addition to the survey with other companies, we consulted the best-in-class program survey (source: Aberdeen Group). These are some of the results: increase of 31% iof new hire retention rate; reduction of 24% in the time for productivity; reduction of 12% in the cost per new employee. The study of the Aberdeen Group indicated that the performance of the best-in- class presented : a success rate of 84% in relation to fitting the culture; a success rate of 68% in socialization. 24
  • 25. How do we get there?
  • 26. How do we get there? To depict the manner in which we will achieve the objectives we propose it is necessary to determine:
  • 27. How do we get there? Who are we going to focus on?
  • 28. How do we get there? What should we resolve? Comunication Informartion/ Process training Management Infrastructure
  • 29. How do we get there? What should we resolve? Incomplete, outdated, non-motivational, unbalanced and unorganized contents and materials. Lack of guidance from Vale’s Deficient communication process between head offices regarding the the company and employees and onboarding process and between employees. contents. Lack of qualified and The onboarding Leadership New hire work motivated local HR program is short, New hire tools, including personnel to develop motivation rates uninvolved with the materials and lacks efficiency onboarding process; IT, are not drop very Lack of engagement conduct the and promptly onboarding process. optimization. quickly. from managers. provided.
  • 31. Rethinking the process? Phase II As we have seen in the previously presented gaps, three categories stand out: information/training; communication and infrastructure. This indicated a need to redesign the onboarding process by re-modelling the areas that do not either satisfy the needs of the stakeholders or maintain good practices.
  • 32. Rethinking the Process? Phase II Step 1 Step 2 Step 3 Step 3 Step 4 Sep 3 Review list of Re-design the Design Outline Gaps and workflow to instrucional the eliminate gaps strategies and requirements and meet materials to existing related to support the each part of requirements. workflow workflow. the workflow. 1. 1. 2. 2. 3. 3. 4. 4.
  • 34. Rethinking the Process Current Scenario • Company and employees profile. • Key-stakeholders interviews. • Benchmarking. • Gap Analysis.
  • 35. Rethinking the Process Change Management An easier way sell the new process: • Risks and Opportunities (impact x probability). • Checkpoint with stakeholders to validate strategies. • Workshop with pilot countries: a- planning best training session methodology for implementation; b- training sessions and tools validation with local onboarding facilitators.
  • 36. Rethinking the Process Change Management Implementation Game
  • 37. Rethinking the Process Communication Plan We want to comunicate: Care for Processes Ownership Employees The expected benefits are: Trust Belonging Integration
  • 38. Rethinking the Process Management Model The Management Model integrates People, Resources and Technology Administrative Portal Regional HR and SSO User Portal Hiring Managers HR Systems and Softwares Trainers People Technology Corporate Structures (HR Processes, Health and Safety, Environment, Communication, IT, Resources etc) Process Tools (checklists, guides and references, templates and communication pieces)
  • 39. Rethinking the Process Management Model Workflow 1 2 Strategies and Models and Guidance Guidelines Cultural Groups Onboarding Sponsors Center of Expertise Local Onboarding (HR + SSO + (Corporate) Focal Points Communication Directors) (Regional HR) Results of the Applicability Program Feedback 4 3
  • 40. Rethinking the Process Performance Support, Education, Communication The global onborading program is composed by 5 macrosteps Educating on Vale My Role Before Day 1 Day 1 Monitoring and Our Business and My Business Area
  • 41. Rethinking the Process Performance Support, Education, Communication Divided in 8 shelfs, each one with an objective: 1 – Select new hire 2 – Onboarding setup 3 – Infrastructure and working tools 4 – Hiring procedures 5 – Current employees awareness and orientation 6 – New hire first welcome 7 – Area and functional onboarding 8 – Follow up and evaluation 41
  • 42. Rethinking the Process Performance Support, Education, Communication Toolboxes, designed to different target audiences are displayed on each shelf. HR regional Hiring Current New Hire Manager Employees 42
  • 43. Rethinking the Process Performance Support, Education, Communication Tools are grouped in boxes aligned with each activity’s objectives. The categories are: Communication Education Performance Support
  • 44. Rethinking the Process Communication We have created tools to support a change management plan in order to engage managers and current employees. Several tools help our employees to properly inform new hires. 44
  • 45. Rethinking the Process Education At Day 1, besides training the new hire, we should engage them by presenting our Mission, Vision and Values and teaching them how to find more information about their areas of interest. If the new hire does not achieve a satisfactory result in the learning evaluations, there are tools that will support Learning & Development teams in planning reinforcement activities. 45
  • 46. Rethinking the Process Performance Support GO Vale Portal 46
  • 48. Conclusion This study was broad and complex and it involved several areas of the company worldwide. It provided inputs to create GO Vale (Vale’s Global Onboarding Process), with structured processes, well defined roles and responsibilities and support tools for all the activities. Now the HR professionals in the filed and corporate areas should work together to create a welcoming culture for the new hire, guaranteeing a productive, integrated and high performance work environment.
  • 49. Thank you! Desie Ribeiro Marta Enes General Manager of Education Director of Educational Technology and People Development marta.enes@affero.com.br desie.ribeiro@vale.com affero.com.br