HRM and organisational development for insourcing KLM data network

September 2003 to January 2004

In 2003 KLM outsourced its worldwide network of more than 1600 data connections to KPN. All operational processes and supplier relations concerning these connections, and all the KLM employees whose jobs were involved, were transferred to KPN.

Because of the size of the network, KPN established a separate unit at Schiphol Airport to be able to handle ordering, billing, change and incident management processes. Because KLM is a global organisation and its planes are in the air night and day, the incident management processes needed to be designed on a 24 x 7 hour basis.

With a small team I first defined the activities of the new unit, on the basis of which the processes were designed. Using these process designs I was then responsible for the organisational design and for determining the numbers and types of positions.

Parallel to this I was project manager for the transfer of KLM employees to KPN. I co-ordinated the activities of the human resources managers and line managers of KPN and KLM, who had to reach consensus on the financial and social conditions under which the employees were to be transferred. Developing sound proposals was often complex and delicate because a balance had to be found between financial and social effects of different choices, the legal obligations involved, and the fact that the employee benefits of KLM employees had to be tailored to fit KPN’s collective labour agreement.

In this period of proposals and negotiation I set up and managed information sessions with KPN’s workers’ council and with KLM employees in order to make sure that the people were well informed and involved. While they found the outsourcing rather threatening at first, this initiative strongly contributed to the motivation of KLM employees to transfer to their new employer with a very positive attitude.