Challenge OF LeadershipSHARED SERVICES JOURNEY

Jeff Kemmerer, former VP Global Shared Services, The Hershey Company

Thoughts to consider

• Shared/Business Services is a capability

• “Define” to promote opportunities…NO one right answer

• Linkage to “organization” strategies creates ownership to define

Shared/Business Service goals/strategies

• Organizational culture can be your greatest enabler…

or the most challenging barrier

• The “How” is a critical success factor

• Development of new capabilities within “Business” Service centers

(Engagement Services, Knowledge and Insights Services, etc.)

• Governance can create and strengthen ownership

Integrated model includes enabling technology

• ~$7 billion net sales

• ~14,000 employees aroundthe world

• Products available in over 70 countries around the world

• Hershey products manufactured in 14 countries

Hershey, a global company 2015

GSS Service Center Locations

33

194

3 11

5723

15

36

4

Guadalajara Hershey Cataño Mumbai Manila Shanghai

375 GSS team members around the globe

Journey to Global Shared Services

2010

Process Optimization /

Service Desk

Source to Settle

Record to Report

Order to Cash

2011

20

10

20

11

Process Optimization / Service Desk

Order to Cash

Source to Settle

Record to Report

ConsumerRelations

Global Inside Sales

2012

20

12

Product Lifecycle

Mgmt

2013

20

13

Process Optimization / Service Desk

Global Inside Sales

ConsumerRelations

Product Lifecycle

Mgmt

Order to Cash

Source to Settle

Record to Report

Enterprise Information Management

Travel & Events Mgmt

2014

20

14

GSS HR

Global Master Data Management - TBD

Chief Information Officer Chief Finance Officer Chief Strategy & Admin Officer

Three Drivers to Achieving the Mission

Develop the vision for best practice, cost effective business processes that support the Strategic PlanProcess

• Build a capability to effectively deliver business processes and information services to internal and external customers, driven by customer experienceService Delivery

• Create an organizational culture that builds relationships based on teamwork, collaboration, integrity, and continuous improvement while encouraging career development and personal growth

Organizational Culture

Building trusted business capabilities

• Our Global Process Owners (GPOs) understand and embrace their responsibility to oversee our mission, strategic direction, finances and operations of our workstreams.

Responsible Governance

• We maintain and enhance standard global processes to manage a flat to declining cost structure (excluding growth). “Until proven different, unique is not an option.” J.P. Bilbrey, CEO

Standard Global Processes

• We cultivate mutual beneficial relationships with our stakeholders, partners and customers.Customer Experience

• We are responsive, accessible, visible, agile and adaptive in all business processes and initiatives.Flexibility

• Continuous improvement is embedded in the GSS culture and is an essential component to our success.

Continuous Improvement

• In accordance with our Hershey Values, our people bring different perspectives and innovation into the workplace. Employee involvement and skill development is a way of life.

Diverse Culture

Guiding Principles: How we operate

• Ensure alignment of strategies among their respective

processes is consistent with Global Shared Services

capabilities

• Provide direction around:

• GSS work stream priorities

• Service level agreements

• Changes in Services provided

• Planning and budgeting

• Issue escalation resolution

Global Process Owner model and integral role of IS Business Process Manager

• The Global Process Owner will serve on the GSS Advisory Council to:

• Ensure alignment of strategies among their respective processes are consistent with Global

Shared Services vision and capabilities

• Provide direction around:

• GSS priorities

• Service level agreements

• Changes in Services provided

• Planning and budgeting

• Issue escalation resolution

GPO role on GSS Advisory Council

GPO will be accountable for

• Defining the mission, strategy and vision of the global process

• Developing goals and objectives for the process

• Working collaboratively with the Business Partner Organization Process Leader(s), the GSS

Process Leader and I.S. Business Process Managers (BPM’s) to define process performance

measures and assesses performance against metrics

• Working collaboratively with the Business Partner Organization Process Leader(s), the GSS

Process Leader and BPM’s to define and prioritize process improvement initiatives e.g.

implementing initiatives to move toward the “Open to Possibilities” vision

• Acting as the “voice” of the process to constituents

GSS Leadership Team

• Day to day service delivery issues

• Continuous improvement identification and feedback

• Service Level Agreement performance review

• Service issues review

• Provide multi-directional feedback

GSS Talent:HersheyManilaShanghaiIndiaGuadalajaraPuerto Rico

Director Order to Cash

Director Source to

Settle

Director Record to Report

Sr. Mgr.

Consumer Relations

Director Global Travel

& Events

Sr. Mgr. Product Lifecycle

Mgmt

Sr. Mgr. Global Inside

Sales

Director

GSS HR

OTC GPO STS GPO RTR GPOCR GPO

Consortium* Global Travel GPO

Consortium*

Global Master Data GPO

Consortium*

Global Inside Sales GPO

Information Services

Internal Audit Legal

EIM GPOHR GPO

Consortium*

SVP Chief Corp Strategy & Admin

Officer

VP Global Shared Services

Vice President , Global Shared Services

Director Support Center and Process Optimization

TBD, Leader GSS Master Data Mgmt - Future

Director Enterprise Information Management

Director GSS Asia

Senior ManagerGSS Guadalajara

GSS Hershey

GSS GovernanceStructure

GSS Talent: Hershey, USA Manila, Philippines/Shanghai, China/Mumbai, India Guadalajara, Mexico/Cataño, Puerto Rico

GSS Governance Structure

Order to Cash

Customer Service

Credit

Deduction

Accounts Receivable

Global Inside Sales

Record to Report

General Accounting

Payroll Processing

Payroll Accounting

Source to Settle

Sourcing Admin

Disburse-ments

Accounts Payable

Engage-ment

Services

Consumer Relations

Global Travel Services

IS Support Center

GSS HR

myHR Support Center

Talent Admin

Total Rewards

Employee Master

Global Master

Data

PLM

Material Master

Vendor Master

Customer Master

Pricing Master

Knowledge & Insights

Center of Excellence

Planogram

Nielsen Reporting

Category Mgmt

Process Optimization

OTC GPO RTR GPO STS GPO Engagement Services GPO Consortium*

GSS HR Consortium*

Global Master Data GPO

Consortium*

Knowledge & Insights GPO

Information Services

Internal Audit Legal / EIM

GPO

SVP Chief Corp Strategy &

Admin Officer

VP Global Shared Services

Consumer Relations GPO Consortium

VP Corporate Communications

Director Corporate Communications

VP Quality and Regulatory Compliance

Sr. Counsel Global Regulatory

VP Global Insights

GM Global Hershey Exp & Licensing

Sr Director BE Global Commercial Systems

Global Travel GPO Consortium

GM Mexico

VP AEMEA Supply Chain

GM US Customers NA

GM Canada

National Sales Director, China

Chief Accounting Officer

Sr Director HR AEMEA

Global Master Data GPO ConsortiumVP Global Logistics

SBP Finance & Planning

VP Finance SBU & Planning

VP AEMEA Supply Chain Solutions

VP Chief Information Officer

Audit Director Global IT & Operations

VP Global Customer Capability

VP Global Shared Services

VP Global Sourcing & Strategic Alliances

VP Global Technical Solutions

VP Human Resources

VP HR Strategy & Analytics

GSS HR GPO Consortium

VP Global Total Rewards

VP HRBP Regions & Commercial

VP Talent

VP HRBP Global Functions

• Sustained support from Global Leadership Team

• GSS proven ability to deliver results; build credibility

• Consistently “high” customer satisfaction

• Fully integrated “24/7” working relationship with IS

• Internal Audit and Legal as trusted business partners

• Company Strategic Focus: leveraging global SG&A Expense

Fueled Acceleration and Growth

Dialogue?Questions, Comments, Feedback

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