Your SlideShare is downloading. ×
0
Paige S Cox, Constellation Energy - Magnetic Make-up, World-Class HRSS
Paige S Cox, Constellation Energy - Magnetic Make-up, World-Class HRSS
Paige S Cox, Constellation Energy - Magnetic Make-up, World-Class HRSS
Paige S Cox, Constellation Energy - Magnetic Make-up, World-Class HRSS
Paige S Cox, Constellation Energy - Magnetic Make-up, World-Class HRSS
Paige S Cox, Constellation Energy - Magnetic Make-up, World-Class HRSS
Paige S Cox, Constellation Energy - Magnetic Make-up, World-Class HRSS
Paige S Cox, Constellation Energy - Magnetic Make-up, World-Class HRSS
Paige S Cox, Constellation Energy - Magnetic Make-up, World-Class HRSS
Paige S Cox, Constellation Energy - Magnetic Make-up, World-Class HRSS
Paige S Cox, Constellation Energy - Magnetic Make-up, World-Class HRSS
Paige S Cox, Constellation Energy - Magnetic Make-up, World-Class HRSS
Paige S Cox, Constellation Energy - Magnetic Make-up, World-Class HRSS
Paige S Cox, Constellation Energy - Magnetic Make-up, World-Class HRSS
Paige S Cox, Constellation Energy - Magnetic Make-up, World-Class HRSS
Paige S Cox, Constellation Energy - Magnetic Make-up, World-Class HRSS
Paige S Cox, Constellation Energy - Magnetic Make-up, World-Class HRSS
Paige S Cox, Constellation Energy - Magnetic Make-up, World-Class HRSS
Paige S Cox, Constellation Energy - Magnetic Make-up, World-Class HRSS
Paige S Cox, Constellation Energy - Magnetic Make-up, World-Class HRSS
Paige S Cox, Constellation Energy - Magnetic Make-up, World-Class HRSS
Paige S Cox, Constellation Energy - Magnetic Make-up, World-Class HRSS
Paige S Cox, Constellation Energy - Magnetic Make-up, World-Class HRSS
Paige S Cox, Constellation Energy - Magnetic Make-up, World-Class HRSS
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Paige S Cox, Constellation Energy - Magnetic Make-up, World-Class HRSS

1,328

Published on

Presentation from the 14th Annual North American Shared Services & Outsourcing Week, 2010 …

Presentation from the 14th Annual North American Shared Services & Outsourcing Week, 2010

To find out more about the 2011 event go to:
www.sharedservicesweek.com

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,328
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
20
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. IQPC Shared Services & Outsourcing Network Conference 1
  • 2. Session Agenda • Quick introduction • HR’s Burning platform • HR’s Transformation Roadmap • Building a Shared Services Organization • Achievements and Learning's • Q&A 2
  • 3. Presenter S. Paige Cox, M.B.A., S.P.H.R. Executive Director, Human Resources 3
  • 4. Constellation Energy “The way energy works” • A leading supplier of electric and natural gas energy products and services • A major generator of electricity with a diversified fleet of nuclear and fossil generating units • Among the leaders pursuing the development of new nuclear plants in the United States. • The oldest utility in the U.S. (over 200 years) ; Baltimore Gas and Electric Company. • A FORTUNE 500 energy company, headquartered in Baltimore, Md., strategic generation footprint across N.A., 10,000 employees and revenues of $15.6 billion in 2009 Mission To be the nation's leading energy manager and competitive supplier, generating and delivering power and natural gas safely and reliably to our customers while acting in the interests of our communities, employees, shareholders and the environment. Through disciplined market analysis and agile decision-making, we create value for stakeholders while developing and delivering products and services safely, reliably and with the interests of our communities at heart. Success is more than numbers; we strive to achieve it without losing sight of our larger responsibilities. Performance Imperatives: Resourceful Execution, Enterprise-wide Perspective, Active Accountability and People Development 4
  • 5. Market Conditions • 2000 - 2006 Constellation Energy grows out of BGE (utility) – Launch new businesses – major growth – Expand footprint across U.S. and internationally – Stock price climbs from $23/share in 2000 to over $90/share in 2006 • 2007 Merger with Florida Power and Lighting – Strategic focus on expanding foot print across all global trading markets • 2008 Setting the course for life without FP&L – September ‘08 stock price falls 84% in 1 week due to reaction from market conditions – CE has largest reduction in force in 200 year history of company (~8%) • 2009 Survival of the Fittest – CE divests all non North American businesses/offices – Joint Venture with Electricite’ de France • 2010 – Strategic focus on M&A – Enterprise wide Transformation under way The driver for H.R. Shared Service changed during implementation 5
  • 6. Overall Transformation Timeline for Human Resources 2005 - 2006 2007 - 2008 2009 – 2010 + • Hewitt Assessment • FPL merger ends • New CHRO and benchmarking • New CHRO • HR business partner • HR cost scrubbing role redesign and • Hackett Assessment • Building the and benchmarking training business case for • Enterprise wide • HR website “Transformation” shared services overhauled and • Service delivery launched governance put in model redesign place • Centers of • Centers of Excellence put in (pricing/metrics/SLA) Excellence put in place for Staffing • Technology place for Total and Diversity Assessment Rewards and L&OD • HR business HR Shared Service • FPL knocks on our center launches process and door and all focus enabling technology • Bottom falls out … shifts to merger RFP on street 03/10 6
  • 7. The Burning Platform … 2005 H.R. Assessment by company A 2007 H.R. Assessment by company B 1. Based on the benchmark survey data provided, 1. Current HR Delivery Model exceeds HR is 2nd Quartile Effectiveness and 3rd benchmarks Quartile Efficiency CE cost/TE = $3,667 vs median of $2,413 Effectiveness driven by reported CE Staffing of 166 FTE vs. median of 129 improvements to HR strategy 2. Considerable duplication exist in both of 2. There is a high cost structure impacted by processes and resources redundancy and process fragmentation Constellation’s total cost of delivering HR 3. Opportunity to better leverage technology services is $5,129 per employee, which is 2X Portal unorganized and lack common HR Brand higher than median placing Constellation in the fourth quartile on a cost basis Data integrity issues prevalent Systems highly customized 3. The current HR delivery model cannot support 4. Work Process Inefficiency World Class performance Constellation’s resource allocation is 17% #1 Voice of the Customer Complaint higher across the processes than median and #1 Driver in HR Engagement Survey Results 52% higher than World Class 5. “High Touch” delivery model is inefficient 7
  • 8. HR Efficiency and Effectiveness Challenges Constellation Leading Co. Constellation Leading Co. >$27m* Strategic $25,000 10% >$27m* Strategic Professional 40% $20,000 Services $18.5m 30% $15,000 Professional Services 30% $10,000 Administrative 60% Administrative $5,000 30% $0 HR Resource Allocation Annual HR Operating Expense 8
  • 9. HR Technology Challenges Category Current State Observations User Impact Rating Usability • Main HR site is listed below the fold on myConstellation (to • Might not know where to start—HR Online, unit HR page be updated with new release) • Hunt for information where it might not be located • Each operating unit has individual HR sites and different access points to common resources Info Design • PeopleConnect information is organized by content area and • Scroll through long navigation lists permits specific activities based on role. • Decide which navigation is the right set • HR Online has two sets of navigation • No context for making an information choice • Many separate places to conduct activities and find information Func - • Single sign-on (SSO) is enabled between myConstellation • See many faces of Constellation HR tionality and PeopleConnect • Don’t see the connection between the information and • No SSO to other third-party service providers the applications • Transaction scattered among many different sites Technology • PeopleConnect has search function for its content • Visit every possible link to evaluate information • HR Online has no search function • Log in to multiple applications • Content management system for HR Online could be in place next year Content • Personalized content and targeted messages/alerts are not • Determine what information is relevant to them Delivery currently being delivered • Don’t know what’s going on day-to-day • There is no channel for HR news or announcements of interest to employees or managers Brand • No evidence of an HR brand or employment brand identity • Visually lost Alignment • Companies have different interfaces • Don’t see a cohesive organization Credibility • Content is sporadically dated • Might not trust that the information is current • Content managers for only some pages are listed • Don’t know why they should trust information if no one • Page load times are acceptable stands behind it Rating vs. Hewitt HR Intranet Best Practices Above Average Average Below Average 9
  • 10. HR Future State Shared Services Model implemented July ‘08 10
  • 11. Our Mission: Operational Excellence in Transaction Processing Team Customers Processes Technolog Change y Management 11
  • 12. Foundational Values 12
  • 13. Team • Organizational Design and Structure (Q4, 2007 - Q1, 2008) – Identified Functional Areas Payroll Benefits Operations Data Administration Customer Services – Tier 1 – Employee Self Service via “myHR” intranet – Tier 2 - Call Center HR Technology Business Services (compliance, budget, PMO) • People – Identified Leaders (Q4, 2007) – Skill assessment and rationalization of transactional roles (Q4, 2007 - Q1, 2008) Elimination of shadow organizations – Centralized transactional processing teams (2008) – Built career matrix (2009) Reduced headcount – Cross functional team building by 10% before HR Direct go live by Monthly community service events eliminating shadow Cross functional project teams roles. – Launched Morale & Motivation (M&M) Team (2009) Absenteeism Employee of the quarter reduced by 13% “Block parties” 13
  • 14. Example: Career Matrix 14
  • 15. Customers • Identified “Customers” – Internal – External • Training for organization – Basic Customer Service (2008) – Telephone Technique (2009) – Adopted “Hassle Free Customer Service” (2010) • Customer Service performance goal (2008 – current) • Multi –channel approach – Email – Telephone • Tracking our metrics Customer sat rates – Identifying best practice have exceeded • Implemented Service Level Agreements (2009) 85% since survey – Basic services only implementation and have been above • Implemented quarterly customer survey (2008) 90 % since Q3/09 – Sent only to employees who’ve engaged our services that quarter Qualitative and quantitative • Implemented Quarterly Newsletter for all HR (2009) 15
  • 16. Processes • Process Rationalization (2008, 2009, 2010 …) – Standardization of process across enterprise Example: Consolidated 4 on-boarding processes into 1 Reduced total number of transactional processes by 34% – Documented all processes Procedures Work Flows – Reduced # of touch points in every process Example – On-boarding reduced from 7 touch points to 4 – Leveraged technology to eliminate manual processing when available Pension calculation SLA reduced by 2 weeks Eliminated 96% over - • Accountability Performance Goal (2008 – current) time in organization – Accuracy ($250K/yr) and reduced payroll run by 48 hours – Continuous Improvement within first 6 months of – Empowerment operation. Eventually – Decision Making reduced headcount additional 8% via • Single points of failure eliminated (by Q3 ‘09) process improvement – Cross training • Controls put in place to reduce human error (ongoing) 16
  • 17. Technology – • Serious issues with technology – Highly customized and fragmented – Serious data integrity issues – IT was driving HR’s tech strategy due to skill deficits – Lack of ownership of HR Technology • Plan for turnaround – Created HR Technology group (2008) Hired experienced PPSFT func. leader and team Took back ownership of HR Technology – Implemented HR Technology road map (2008) – Defined Roles and Responsibilities (2009) – Implemented PPSFT CRM tool for call center (2008) Reduced number of – Worked with IT to schedule regular patch updates (2009) HR systems by Not a single patch had been applied in 4 years 50%, eliminated – Implemented change control board and process (2009) compliance issues by cleaning up data – Rationalized core HR systems (2009 and ongoing) integrity issues, Implemented 19 phased PPSFT system clean up customers have Upgrade pension system faith in data Implemented ePerformance Implemented Talent Acquisition Manager (TAM) 17
  • 18. Business Process Cycle Example: Technology Roadmap Projects (1st Quarter) (4th Quarter) (2nd Quarter) 2009 (3rd Quarter) PSFT Data Cleanup/Remediation (HR Tech/Business Partners) Complement Control Parking Self Service Manager and Employee Self Service Enhancements Nuclear Fatigue Benefits Data Warehouse W2 Open Enrollment – 3 Year rolling cycle to bid new plans/vendors HR DirectPhase II EDF – Design and Configuration Year ePerformance – End Processing Annual Review Cycle Documentum and Applimation eComp/ LMS Analysis Planning PSFT Learning Management System Key Contributor Cycle On Line Orientation Updates- Phase II Medical System Implementation eTime Patching HR Transformation Phase III Web 2.0 Strategy HireRight Implementation – Background Checks/I-9 and Drug Testing (non –Nuclear) Workforce Lifecycle Manager – other phases 18
  • 19. Example: Roles and Responsibilities Vision for HR Technology platform/roadmap shared by HRLT, HR Corp Apps IT - HR Technology & IT-HR HR Technology Functional Area • Liaise with IT Infrastructure • Lead/own strategic vision for HR • Lead/Own Business Process • Liaise with Corp Apps PMO Technology • Participating in UAT Testing as • Participates in gathering requirements • System Implementation required by project • Testing (Unit, Performance, Integration) • Provide Program/Project management • Delivering Requirements • Provides input into Business case resources as needed • Leading Business case development development • Leads requirements gathering • Participating in design sessions • Participates in functional design sessions • Testing (System, Data, Integration) • Strategic vision for area of expertise • Awareness of technology best practice • Provides input into Business case • Reporting system issues • Operational application maintenance, development • Awareness of Industry (expertise) best troubleshooting and break-fix • Leads functional design sessions practice • Lead/own technical architecture, • Awareness of HRT best practice • Execution of existing reports integration, design and security • Application security, troubleshooting, • Lead Operational and Change • Manage IT budget and ERP vendor configuration and break-fix readiness relationships • HR functional reporting and analytics • Responsible for working with HR/Audit • Participates in evaluating new technology • Liaison between IT and other HR areas for SOX readiness • Co-Lead Change Control Board • Review/Prioritize AWRs • Lead Communications • Provide level 2 user support • Participates in Change Control Board • Co-Lead Change Control Board • Lead DR Planning for business processes All areas responsible for operational and project related change management L&OD responsible for training and sustainability 19
  • 20. Change Management Enterprise Leaders & BU change agents are a critical levers in driving change Road Progress Leader Staff Coffee Town Halls Shows Updates Meetings Meetings Chats Visit staff meetings to Regular updates Share information Share information Host dialogue with Informal forum for provide functional/ “From the Desk of with teams on with broader HR team about changes employees to connect COE overview CHRO” ongoing basis audience with HRLT Communicate to Orient BU to new Utilize HR Zone Provide forum for Provide open forum employees WIIFM Create informal COE structure for ongoing, people to ask for employees to ask environment to ask Connect peoples regular questions and raise questions questions, share Socialize concept of activity to broader communications concerns concerns self-service in BU Reinforce values and transformation effort (e.g., Week in meetings Arm leaders with performance HRLT solicits Review) Reinforce vision for toolkits/talking points imperatives feedback, issues, Socialize concept of HR of the future to communicate concerns Integrated Delivery effectively Model 20
  • 21. What we’re working on now … • Continued focus on operational Excellence – Employee satisfaction – Process improvement – Customer satisfaction – Efficiency and effectiveness – Implement Manager Self Service – Increase HR professionals business and industry acumen • Leveraging HR Direct model/best practice to build Finance and IT Shared Services organizations • Governance – Working with business to create SLAs for all operational services – Working with HR Professionals, IT and Finance to create OLAs – Development of pricing model for all services – Working with business to increase transparency and drivers of costs • Sourcing model – Launched RFP in March, 2010 HR transactional business process Enabling technology – Moving away from RFP – Model development targeted for completion by June, 2010 • Keep the trains running! 21
  • 22. Summary of Achievements since go live … Reduced labor costs by $600K/year (reduction of 18% headcount) Eliminated $250k/year in overtime (reduced 98% of OT via process improvement) Increased productivity by $5K/year (reduced absenteeism by 13%) Track and monitor customer satisfaction scores (consistently achieve better than best practice results at average of 89% satisfaction rate Reduced total number of transactional processes by 34% via standardization and rationalization Rationalized HRT systems by 50% Increased payroll accuracy to 99.999% year over year via process and technology improvements Rebuilt customer faith in our ability HR Direct team members are “cherry picked” by the organization for project work and open positions ! 22
  • 23. What we did right … Engaged a strong consulting partner during assessment and design phase Released our strong partner during implementation Leveraged peer companies who’d gone before us (why reinvent the wheel ?) Created a brand Created foundational values for organization Built a new leadership team Hired HR technology experts to manage the technology Created and implemented robust and detailed change and communications management plans Refused to allow “but that’s the way we’ve always done it” to be said – at all Empowered our employees to become a part of the creation and development of the organization Embrace the notion that happy HR employees beget happy customers! Monthly “Open Mike” sessions 23
  • 24. What we’d do differently (aka Lessons Learned) Require that Sr . Business leadership be ambassadors for the effort Complete system rationalization before go live Complete process rationalization before go live Implement robust business intelligence strategy and tool before go live Ensure rigorous selection process for all roles within shared services vs. assuming incumbents could make the transition Hire customer service professionals to staff the call center Redesign and implement HR Business Partner/Generalist role changes in parallel to designing and implementing shared services to assist with role clarification and transition Increase focus on improving business acumen within shared services team – if you don’t understand the business, you can’t truly support it! 24

×