The presentation discusses the transition from traditional "patriarchal" employment models to innovative workforce models. It argues that outsourcing non-core functions can increase efficiency and allow companies to focus on core competencies. Examples are given of how outsourcing various business functions like manufacturing, recruiting, and facilities maintenance have reduced costs and improved productivity for companies. The presentation encourages companies to identify core vs non-core functions and consider outsourcing areas that are not critical to their business strategies.

1. The Birth
of a New Workforce
Randy Hatcher - President, MAU Workforce Solutions
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2. The Birth
of a New Workforce
Randy Hatcher - President, MAU Workforce Solutions
Information in this presentation is property of MAU Workforce Solutions

3. Information in this presentation is property of MAU Workforce Solutions

4. A crime has been committed!
The Birth of a New Workforce Information in this presentation is property of MAU Workforce Solutions © MAU Workforce Solutions

5. Something has been stolen.
The Birth of a New Workforce Information in this presentation is property of MAU Workforce Solutions © MAU Workforce Solutions

6. Something precious and limited…
The Birth of a New Workforce Information in this presentation is property of MAU Workforce Solutions © MAU Workforce Solutions

7. …Your Focus
The Birth of a New Workforce Information in this presentation is property of MAU Workforce Solutions © MAU Workforce Solutions

8. Bankruptcies
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9. Closings
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10. Bethlehem Steel then…
Hoover Dam
Hoover Dam Chrysler Building Chrysler Building
Empire State Building Alcatraz Island
Empire State Building
Alcatraz Island
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11. Bethlehem Steel now…
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12. It‟s been a
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13. But you‟ve survived!
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14. You‟re not out of the woods yet!
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15. Length of Each Recession
20
18
16
M 14
o 12
n
10
t
8
h
6
s
4
2
0
The Birth of a New Workforce © MAU Workforce Solutions

16. % Real GDP Decline
4.5%
4.0%
3.5%
%
3.0%
D 2.5%
e 2.0%
c 1.5%
l
1.0%
i
n 0.5%
e 0.0%
The Birth of a New Workforce © MAU Workforce Solutions

17. Jobs Lost During
Each Recession
8,000
7,000
6,000
T
h 5,000
o
4,000
u
s 3,000
a 2,000
n
1,000
d
s 0
The Birth of a New Workforce © MAU Workforce Solutions

18. S&P 500 Max Decline
During Recession
60%
50%
%
40%
D
30%
e
c 20%
l
i 10%
n
e 0%
The Birth of a New Workforce © MAU Workforce Solutions

19. Going Forward:
NEVER Waste a Crisis
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20. “Private and public sector leaders believe
that a rapid escalation of complexity is the
biggest challenge confronting them…
and their enterprises today are not
equipped to cope effectively.”
- IBM Study
1,500+ CEOs
The Birth of a New Workforce © MAU Workforce Solutions

21. Corporate America
Time $$$
NON-CORE Functions CORE Functions
Information in this presentation is property of MAU Workforce Solutions

22. Patriarchal Model
“Corporate Family”
John D. Andrew Carnegie Henry Ford
Rockefeller
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23. Patriarchal Model
“Corporate Family”
Executive Maintenance Secretary
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24. Patriarchal Model
600
500
HEADCOUNT
400
• Growing legacy costs
300
• Couldn’t respond to market changes
Static Stable High Cost
200
Understaffedand Layoffs
Overstaffed and Overtime
100
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Production Headcount Full-Time Workforce
Information in this presentation is property of MAU Workforce Solutions

25. Patriarchal Model
Time $$$
NON-CORE Functions CORE Functions
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26. World War II
Rise of the Temporary Help Industry
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27. Patriarchal Model
600
500
HEADCOUNT
400
300
Static Stable High Cost
200
100
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Production Headcount Full-Time Workforce
Information in this presentation is property of MAU Workforce Solutions

28. Staffing Workforce Model
600
500
Ramp Up
HEADCOUNT
400 Fluid Layoff Less Stable Low Cost
300
Static Stable High Cost
200
Risk Responsibility Cost?
100
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Full-Time Workforce
Production Headcount Flexible Workforce
Information in this presentation is property of MAU Workforce Solutions

29. Staffing Workforce Model
Patriarchal Model
Time $$$
NON-CORE Functions CORE Functions
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30. The Hidden Costs of Temp Workers
• Inefficiency and Waste
• Two Class System
• Dual Market Valuation
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31. Paying the Piper
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32. Paying the Piper
Slashed Retiree Benefits Reduced Wages
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33. Paying the Piper
Cut-to-the-Bone Layoffs
Shared Healthcare Costs & Involuntary Separations
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34. Paying the Piper
Pensions Replaced by 401k‟s Employee Buyouts
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35. A New Business Blueprint
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36. Patriarchal Model
600
500
HEADCOUNT
400
300
200
100
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Production Headcount Full-Time Workforce
Information in this presentation is property of MAU Workforce Solutions

37. Staffing Workforce Model
600
500
HEADCOUNT
400
300
200
100
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Full-Time Workforce
Production Headcount Flexible Workforce
Information in this presentation is property of MAU Workforce Solutions

38. Innovative Workforce Model
600
500
Increased Capacity
HEADCOUNT
400
Increased Capability
300
Increased Focus
200
100
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Production Headcount Full-Time Workforce
Outsourced Workforce Flexible Workforce
Information in this presentation is property of MAU Workforce Solutions

39. Innovative Workforce Model
Patriarchal Model Staffing Workforce Model
Time $$$
NON-CORE Functions CORE Functions
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40. If You Had $1.00 to Spend
Equipment Sales & Mergers & R&D
Automation Marketing Acquisitions Innovation
The Birth of a New Workforce © MAU Workforce Solutions

41. Core/Noncore Analysis
Manufacturing
Manufacturing
Final Assembly
Final Assembly
Recruiting
Recruiting
Sub-Assembly
Sub-Assembly
Facility Maintenance
Facility Maintenance
Finance && Accounting
Finance Accounting
Janitorial Equipment and Automation Supplier Management
IT Function
Grounds Sales and Marketing
Packaging
Cafeteria Mergers and Acquisitions
Benefits
Security R&D and Innovation Logistics
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42. Outsourcing Manufacturing
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43. Outsourcing Manufacturing
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44. Outsourcing Final-Assembly
69% labor cost savings
Productivity, quality, delivery increased
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45. Outsourcing Recruiting
First Pass Yield: 78% to 92%
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46. Outsourcing Recruiting
Time to Fill: 13 to 6.7 weeks
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47. Outsourcing Recruiting
Steps Before Steps After Change
Outsourcing Outsourcing in # of Steps
Kimberly
Clark 42 12 -30
Recruiter 2 20 +18
TOTAL 44 32 -12
The Birth of a New Workforce © MAU Workforce Solutions

48. Savings Per Hire
70% Time
Reduction
$2,625
Cost Reduction
in Salaries
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49. Outsourcing Sub-Assembly
Smelting Pot Repair
• 30% fewer employees
• Shelf life extended by 15%
• Downtime decreased
by 5%
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50. Outsourcing Facility Maintenance
• Can increase asset productivity by
30 percent
• “Maintenance groups are only 33%
productive”
- Terry Wireman
Computerized Maintenance
Management Services
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51. Outsourcing Facility Maintenance
Outsource to someone who
eats, drinks, and sleeps
maintenance…
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52. Outsourcing Finance & Accounting
Finance and Accounting Strategy
Control and Risk Management
Record to Report
Hire to Retire
Order to Cash
Purchase to Pay
Information in this presentation is property of MAU Workforce Solutions

53. Outsourcing Finance & Accounting
Outsource the non-strategy related functions…
Control and Risk Management
Record to Report
Hire to Retire
Order to Cash
Purchase to Pay
Information in this presentation is property of MAU Workforce Solutions

54. Outsourcing Finance & Accounting
Finance and Accounting Strategy
…while you focus on the business strategies.
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55. Obstacles
Status Quo is Okay
Too Expensive
Internal Cultural Issues
Unable to Measure
Lack of Internal
Expertise
Knowledge Level
Can‟t Find a Good
Outsourcing Partner
0% 20% 40% 60% 80%
© KellyOCG 2009

56. Innovative Workforce Model
Innovative
Patriarchal Model Staffing Workforce Model Workforce Model
Time $$$
NON-CORE Functions CORE Functions
Information in this presentation is property of MAU Workforce Solutions

57. Core/Noncore Analysis
Employment Processes
Supplier Management
Finance/Accounting
Program Management
Subassembly
Final Assembly
Janitorial Facility Maintenance
Equipment and Automation
IT Function
Grounds Sales and Marketing
Packaging
Cafeteria Mergers and Acquisitions Benefits
Security R&D and Innovation Logistics
Information in this presentation is property of MAU Workforce Solutions

58. 10,000
Hours
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59. The 10,000 Hour Rule
Malcolm Gladwell’s “Outliers”
Bill Joy The Beatles Bill Gates
1971 Mid „60s 1968
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60. Your Company’s
Ultimate Goal
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61. Information in this presentation is property of MAU Workforce Solutions

62. Information in this presentation is property of MAU Workforce Solutions

63. Information in this presentation is property of MAU Workforce Solutions

64. Information in this presentation is property of MAU Workforce Solutions

65. …Your Focus
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66. Closings
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67. Outside the Plant
Function Unique
Job
Differentiates
Department
Process Adds Value
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68. Walk Through Your Plant
Noncore
Job Title/Function Core
Critical Noncritical
http://www.mau.com/resources
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69. Innovative Workforce Model
Innovative
Patriarchal Model Staffing Workforce Model Workforce Model
Time $$$
NON-CORE Functions CORE Functions
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70. It’s a Journey!
„99: Recruiting Process
„99: Co-ops & Interns
„00: Contract Professionals
„02: Temporary Workers
„02: Outsourced Assembly
„05: Absenteeism Pool
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71. Get Started!
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