0
1
Getting to Yes: Creating a
Business Case for a Talent
Management Suite
Katherine Jones, Ph.D.
Vice President, HCM Techno...
2
Agenda
 Software management issues facing HR today
 What research tells us
 The value of the single suite
 Getting s...
33
Software Issues Facing HR Today
4
The State of the Art:
HCM Software in Use Today
Source: Investments in Human Capital Management Systems 2014. Katherine ...
5
Too Much To Manage
“Large” = 25,000+ employees
Source: Investments in Human Capital Management Systems 2014. Katherine J...
6
Talent
applications
are aging…
Recruiting
Performance Management
Compensation
Learning
Time & Attendance
Succession
40%
...
77
What
Research
Tells US
8
organizations are considering purchasing new
HR or Talent Management technology in the next
18 months
54%
90% replacing ...
9
Strategy Matters:
Business Drivers Push
New Software Choices
10
41% Desire to move to new cloud-based
technology/SaaS
Move from disparate local HR
systems to one global system35%
Desi...
11
12
Can’t integrate
with other
systems
60%
Can’t get
analytics
53%
Improve
user
experience
53%
Source: Investments in Human...
13
Selection Criteria
Improved analytics
Better User
experience
Integration
Cloud
Source: Deploying HCM Technologies: Maki...
14
“Cloud”
GOAL
Technology
Consolidation
Application
Integration
CRITERIA
User
Experience
Analytics
• Lower cost software
...
1515
Preparing the
Business Case
16
Why Buy New Software?
Solve a Business Problem
• Lower operating costs
• Improve employee
productivity
Pursue a Busines...
17
Five Steps for Developing a Business Case for a
Talent Management Suite
18
 Your business case will have a much great likelihood of
success if you have an executive sponsor or supporter.
 It i...
19
CHRO
• High turnover costs
• Employee survey results
• Low employee engagement
CEO
• Growing top-line revenues
• Reduci...
20
Identifying Business Problems
High turnover among
key positions
Difficulty hiring
the right
person
Theft / Loss
Safety ...
21
• Identify the issues
impacting the business
• Identify the organizational
sponsors/influential
leaders
• Articulate in...
22
Structuring the Business Case
• Identify issues
impacting the
business
• Identify
organizational
sponsors /
influential...
23
Define the Solution
 Know what you have
 Consider alternatives
 Account for risks
 Account for dependencies
24
Detail the Solution: Considerations
 Where will the solution be used? In what
offices or facilities? In how many count...
25
Structuring the Business Case
• Identify issues
impacting the
business
• Identify
organizational
sponsors /
influential...
26
Typical Types of Costs
 Technology/Tools costs
 Headcount costs
 Overhead costs
 Training costs
 Testing (Sandbox)...
27
If Benefits > Costs over a given time period,
you have a compelling business case!
Structuring the Business Case
• Iden...
28
 Reduce turnover
 Higher revenues
 Employee productivity
 Revenue per employee
 Cost reduction
 Reduced theft
 H...
29
Cost Savings: Hard Costs Cost Savings: Soft Costs
Quantifying the Benefits: An Example
Reducing voluntary attrition at ...
30
3131
Stumbling Blocks
32
Potential Hazards
Not aligned with a
corporate goal
Lack of a champion or
sponsor
Stakeholders not well
informed or sup...
33
Presenting the Case
34
 Prepare to present your business case
 Socialize and gain support ahead of time
 Be able to your case in 15 minutes...
35
Summary & Wrap-up
36
§ Do your homework.
Final Thoughts
§ Don’t go it alone...collaborate with
others to prepare the business case.
§ Create...
3737
Thank You!
Questions?
LinkedIn: KatherineJones
Twitter : Katherine_Jones
Blog at www.bersin.com: Technology for Talen...
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarant...
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Building a Business Case for a Talent Management Suite

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This is a pre-recorded webinar session. Join us live! Visit www.saba.com/us/about/events.

Integrated talent management solutions, referred to as talent management suites are the most rapidly growing area within human capital management (HCM) software today, replacing the disparate siloed applications that proliferated in many organizations.[1] These separate standalone products, often considered the leaders at the time of purchase are increasingly becoming displaced by single vendor solutions that are integrated or at least modular and easy to integrate.

Key takeaways include:
1. Software management issues facing HR today
2. The value of the single suite
3. Getting started: Business case planning and preparation

In this webinar, conducted by Dr. Katherine Jones, VP of HCM Technology Research at Bersin by Deloitte, Deloitte Consulting LLP, you will have the opportunity to learn the issues and drivers for this accelerating movement today and how to create the business case to drive investment decisions for unified talent software architecture.

Register here to join us on August 7th at 1:00pm ET to learn key steps in creating a compelling business case for talent suite acquisition.

[1]Talent Optimization for the Global Workforce: The Market for Talent Management Systems 2014. Katherine Jones. Bersin by Deloitte. 2014.

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Transcript of "Building a Business Case for a Talent Management Suite"

  1. 1. 1 Getting to Yes: Creating a Business Case for a Talent Management Suite Katherine Jones, Ph.D. Vice President, HCM Technology Research Bersin by Deloitte Deloitte Consulting LLP
  2. 2. 2 Agenda  Software management issues facing HR today  What research tells us  The value of the single suite  Getting started: Business case planning and preparation
  3. 3. 33 Software Issues Facing HR Today
  4. 4. 4 The State of the Art: HCM Software in Use Today Source: Investments in Human Capital Management Systems 2014. Katherine Jones. Bersin by Deloitte. Spring 2014.
  5. 5. 5 Too Much To Manage “Large” = 25,000+ employees Source: Investments in Human Capital Management Systems 2014. Katherine Jones. Bersin by Deloitte. Spring 2014. 2012 18% 2013 33%
  6. 6. 6 Talent applications are aging… Recruiting Performance Management Compensation Learning Time & Attendance Succession 40% 17% 19% 26% 17% 12% 7+ Years Old Investments in Human Capital Management Systems 2014, Katherine Jones. Bersin by Deloitte. Spring 2014.
  7. 7. 77 What Research Tells US
  8. 8. 8 organizations are considering purchasing new HR or Talent Management technology in the next 18 months 54% 90% replacing the existing solutions used today Investments in Human Capital Management Systems 2014, Katherine Jones. Bersin by Deloitte. Spring 2014.
  9. 9. 9 Strategy Matters: Business Drivers Push New Software Choices
  10. 10. 10 41% Desire to move to new cloud-based technology/SaaS Move from disparate local HR systems to one global system35% Desire to consolidate around one vendor's platform29% Investments in Human Capital Management Systems 2014 Katherine Jones. Bersin by Deloitte. Spring 2014. Addressing Strategy Shifts through Technology
  11. 11. 11
  12. 12. 12 Can’t integrate with other systems 60% Can’t get analytics 53% Improve user experience 53% Source: Investments in Human Capital Management Systems 2014. Katherine Jones. Bersin by Deloitte. 2014. Top 3 Drivers for Replacing TM Software
  13. 13. 13 Selection Criteria Improved analytics Better User experience Integration Cloud Source: Deploying HCM Technologies: Making Change Work. Katherine Jones. Bersin by Deloitte. 2014.
  14. 14. 14 “Cloud” GOAL Technology Consolidation Application Integration CRITERIA User Experience Analytics • Lower cost software contractual arrangements • More rapid response to changing labor markets • Improved employee relationship management • Enhanced scalability via SaaS • . BUSINESS OUTCOMES
  15. 15. 1515 Preparing the Business Case
  16. 16. 16 Why Buy New Software? Solve a Business Problem • Lower operating costs • Improve employee productivity Pursue a Business Opportunity • Increase production • Open new markets Gain a Competitive Edge
  17. 17. 17 Five Steps for Developing a Business Case for a Talent Management Suite
  18. 18. 18  Your business case will have a much great likelihood of success if you have an executive sponsor or supporter.  It is critical to find out who the different “players” are and what their issues are likely to be. - Who are the decision maker(s) for the business case? - Who will be affected by the solution? - Who are the people to approach when gathering information to build the business case? - Does the proposal have a champion or sponsor? - Who are the potential naysayers?  Identify the Business Issues & Stakeholders Define the Solution Identify Costs & Make Informed Assumptions Quantify Impact
  19. 19. 19 CHRO • High turnover costs • Employee survey results • Low employee engagement CEO • Growing top-line revenues • Reducing product costs • Expanding into new markets CFO • Reduce risk exposure • Strategic mergers & acquisitions CMO • Capitalizing on social media • Building workforce capability to deliver a perfect experience to the “connected” customer What Keeps Executives Up at Night
  20. 20. 20 Identifying Business Problems High turnover among key positions Difficulty hiring the right person Theft / Loss Safety issues Growing operations overseas Improving performance/ engagement Meeting regulatory / compliance requirements Reducing operational costs Innovation— out- innovating our competitors
  21. 21. 21 • Identify the issues impacting the business • Identify the organizational sponsors/influential leaders • Articulate in ways that engage the key stakeholders Identify the Issues & Stakeholders Example Example Stakeholders Impacted • Increased Absenteeism • Line Managers, COO • High Turnover • CEO, CHRO, Line Managers • System Consolidation • CIO • Critical Skill Gaps • CEO, CHRO, Line Managers • High Benefit Costs • CFO, CHRO • Labor Law Changes • Legal Counsel • Environmental Emergencies • Heath & Safety, COO Identifying Issues • Talk to business leaders, line managers, HR, and talent leaders • Conduct industry & market research • Identify key stakeholders: Who will make decisions? Who will benefit? Who will be impacted?
  22. 22. 22 Structuring the Business Case • Identify issues impacting the business • Identify organizational sponsors / influential leaders • Articulate in ways that engage the key stakeholders Identify the Business Issues & Stakeholders Define the Solution Identify Costs & Make Informed Assumptions Quantify Impact • Detail the solution • Consider alternatives • Determine risks, dependencies, and assumptions • Identify both hard costs and opportunity cost drivers • Engage stakeholders to guide cost assumptions and validation • Provide assumptions and benchmarks for costs • Identify expected benefits • Quantify the benefits • Identify intangible benefits (and quantify if possible)
  23. 23. 23 Define the Solution  Know what you have  Consider alternatives  Account for risks  Account for dependencies
  24. 24. 24 Detail the Solution: Considerations  Where will the solution be used? In what offices or facilities? In how many countries?  Does the solution build upon your current resources and/or infrastructure?  How quickly does the solution need to be in place?  Will we roll it out over time or all at once?  Should we combine the solution with another related initiative?  How should we measure the solution’s effectiveness?
  25. 25. 25 Structuring the Business Case • Identify issues impacting the business • Identify organizational sponsors / influential leaders • Articulate in ways that engage the key stakeholders Identify the Business Issues & Stakeholders Define the Solution Identify Costs & Make Informed Assumptions Quantify Impact • Detail the solution • Consider alternatives • Determine risks, dependencies, and assumptions • Identify both hard costs and opportunity cost drivers • Engage stakeholders to guide cost assumptions and validation • Provide assumptions and benchmarks for costs • Identify expected benefits • Quantify the benefits • Identify intangible benefits (and quantify if possible)
  26. 26. 26 Typical Types of Costs  Technology/Tools costs  Headcount costs  Overhead costs  Training costs  Testing (Sandbox) costs  Hiring costs + onboarding  Allocated time for current staff  New analytic-specific software  Upgraded modules of existing software  Hardware  New or revised facilities
  27. 27. 27 If Benefits > Costs over a given time period, you have a compelling business case! Structuring the Business Case • Identify issues impacting the business • Identify organizational sponsors / influential leaders • Articulate in ways that engage the key stakeholders Identify the Business Issues & Stakeholders Define the Solution Identify Costs & Make Informed Assumptions Quantify Impact • Detail the solution • Consider alternatives • Determine risks, dependencies, and assumptions • Identify both hard costs and opportunity cost drivers • Engage stakeholders to guide cost assumptions and validation • Provide assumptions and benchmarks for costs • Identify expected benefits • Quantify the benefits • Identify intangible benefits (and quantify if possible)
  28. 28. 28  Reduce turnover  Higher revenues  Employee productivity  Revenue per employee  Cost reduction  Reduced theft  Higher customer satisfaction  Reduced errors  Better health outcomes  Reduced safety incidents Impact on the Business: Examples *
  29. 29. 29 Cost Savings: Hard Costs Cost Savings: Soft Costs Quantifying the Benefits: An Example Reducing voluntary attrition at a pharmaceutical client • Factoring in both hard and soft cost savings Economic (Soft) Costs Time to source / identify new candidate 10 days Time to recruit new candidate 50 days Time to train/develop in year 1 20 days Total 80 days 16 wks (80 days) x $2,000/wk $32,000 Time to reach productivity of lost employee 20 days 20 days X ($100 rev / ee hour) $16,000 $48,000 Cost of Voluntary Turnover to Organization 1% Voluntary Turnover Rate X 30,000 employees X $76,000 cost per employee Total Cost $22.8M This organization stands to save $22.8 million for every 1 point decrease in their voluntary turnover rate Total Cost of Voluntary Turnover Per Lost Employee Hard Costs $28,000 Economic (Soft) Costs $48,000 Total $76,000 per lost employee Hard Costs Recruiting and hiring costs per employee $20,000 Training and orientation costs per employee $ 8,000 Total hard costs per lost employee $28,000
  30. 30. 30
  31. 31. 3131 Stumbling Blocks
  32. 32. 32 Potential Hazards Not aligned with a corporate goal Lack of a champion or sponsor Stakeholders not well informed or supportive Costs not well-defined or validated Benefits not defined in business terms Solution not clearly defined
  33. 33. 33 Presenting the Case
  34. 34. 34  Prepare to present your business case  Socialize and gain support ahead of time  Be able to your case in 15 minutes, with backup materials available Are Your Ducks in Order? State the issue / problem: Explain the business need Describe the solution Risks, dependencies, assumptions, timeline Detail the Costs– financial implications Describe the Benefits / Impact Reiterate briefly: issue, costs, benefits, impact 1 2 3 4 5
  35. 35. 35 Summary & Wrap-up
  36. 36. 36 § Do your homework. Final Thoughts § Don’t go it alone...collaborate with others to prepare the business case. § Create a business case that reflects your stakeholders’ issues and realistic benefits.
  37. 37. 3737 Thank You! Questions? LinkedIn: KatherineJones Twitter : Katherine_Jones Blog at www.bersin.com: Technology for Talent Email: Kathjones@deloitte.com
  38. 38. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright © 2014 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited
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