EY Strategy and Consulting Supports Panasonic Connect's HR Management Reform Implementation

Transforming Human Resource Management at Panasonic Connect

In today's rapidly evolving business landscape, organizations are compelled to adopt strategies that allow for quick and agile responses. EY Strategy and Consulting (EYSC), located in Chiyoda, Tokyo, has recently announced its role in reforming the human resource management (HRM) system at Panasonic Connect, a subsidiary of the Panasonic Group located in Chuo, Tokyo. This transformation focused on the implementation of a job-based HR management system powered by the integration of SAP SuccessFactors®.

The Need for Reform in HR Management

As organizations face unprecedented changes in their operational environments, the need for flexible and robust HR strategies becomes evident. At Panasonic Connect, legacy human resource practices—characterized by siloed structures and a rigid vertical culture—posed challenges in its quest for a more agile and flat organization.

The company’s previous membership-based HR practices hindered the dynamic deployment of diverse personnel. Despite lofty ambitions, the culture surrounding job rotation severely limited the organization’s ability to create an atmosphere conducive to diverse talent. In addition, although nominally non-seniority based, the existing compensation framework, influenced by fairness considerations, failed to recognize performance disparities adequately, effectively leading to a lingering seniority-based approach.

Acknowledging these challenges, Panasonic Connect launched a strategic initiative in 2022, coinciding with the corporate structure transition to a new group comprising a holding company and its subsidiaries.

EYSC's Comprehensive Support in Reform Implementation

EYSC supported Panasonic Connect throughout this journey—from strategy formulation and systemic design to the actual implementation of a new operating framework. Central to this transformation was the shift to job-based resource management. EYSC emphasized the interconnection between business and HR strategies, redesigning core HR functions such as job definition, evaluation, recruitment, and compensation.

Another significant aspect was empowering frontline managers, enabling them to take ownership of HR management decisions. To ensure that the new policies were not merely theoretical but were integrated into daily operations, EYSC implemented SAP SuccessFactors® (Employee Central and Compensation). This platform melded HR theories into the working processes, letting frontline teams practice robust talent management in their daily functions.

Achievements: Frontline-led HR Management

The results of this initiative have brought HR management into the forefront of daily operations at Panasonic Connect. There has been a notable shift toward frontline-driven decisions. For instance, operational changes such as personnel transfers and procedures, which traditionally required HR department significance, are now predominantly enacted at the frontline level. Just two months post-implementation, approximately 2,000 HR-related processes were initiated from the frontline.

Moreover, this change has fostered a heightened sense of ownership among managers, accelerating decision-making processes. EYSC’s approach adopted a 'Fit to Standard' strategy, avoiding excessive system customization, which allowed for an on-budget and on-time completion of the system installation.