EMI Music: the HR perspective

19 May 2011:

Private equity firm Terra Firma bought music giant EMI Music in late 2007, amid severely declining retail conditions and much scepticism about any chance of a successful turnaround.

Nevertheless, in January 2008, Terra Firma announced the global restructuring of the business across 26 countries, with the loss of 1,500-2,000 jobs and cost reductions of £200 million. Remarkably, this feat was to be achieved within six months and without disrupting the everyday running of the business.

As a specialist in major corporate restructuring programmes (at BMW/Rover, Marconi and Northern Foods), I was parachuted into EMI as interim president of HR. It was to be a complex and challenging project but one, despite media reports, that did have successful outcomes, not least the trebling of operating profits and securing of job reductions without business disruption or any individual claims. Ultimately, as a result of the change programme, EMI was put into better operating shape and this remains the case today.

One of the first tasks of the restructuring programme was the appointment of highly experienced senior leaders at board level who would drive change through the organisation. Once in place, this operating group set about changing the business model from one with a geographical focus, where each country within the EMI Group managed its affairs autonomously, to a global functional matrix. This was critical to minimising waste and achieving efficiency throughout the business.

The new structure of the organisation was mirrored within the HR function itself, with global business partners taking the place of HR managers. An HR Service Centre with improved global HR data collation and reporting was also created to improve efficiency.