The document discusses running HR like a business through operational excellence. It begins with an agenda covering the beginning, financial scenarios, operational excellence in HR, and results, challenges and success factors. It then discusses transforming the HR organization to a business-driven model with HR experts, business partners, and a service delivery focus. The document presents a client case study and outlines challenges around technology, talent, globalization and intangible assets. It proposes applying best practices like standardized processes, self-service, and technology to increase service levels while reducing costs. Finally, it compares sourcing scenarios like an internal HR service center, managed HR services, and full business process outsourcing to achieve benefits like cost reductions, improved customer satisfaction, and
HR Shared Services Benchmarking Study Highlights: May 2017ScottMadden, Inc.
ScottMadden has joined forces with American Productivity & Quality Center (APQC), a benchmarking and best practices research organization, to conduct the forth cycle of the HR Shared Services (HRSS) Benchmarking Study. This study identifies gaps in HR SS benchmarking data specific to service center and center of expertise (CoE) staffing and performance metrics, targeting HRSS organizations with a service center and CoEs.
Planning Expansion and Adding Scope to your Current Shared Services OperationScottMadden, Inc.
Successful scope expansion for an existing shared services operation requires careful planning. Scope expansion can take a number of forms such as new services, new customer groups, and new geographies. “Shared Service Expansion” is the fourth session of a HR Shared Services learning series that ScottMadden is presenting along with Shared Services & Outsourcing Network (SSON). In this session, we cover an approach for planning expansion and keys to adding scope while balancing the demands of your current shared services operation.
A solid business case provides the foundation for implementing a successful shared services organization. This is the first session in an HR Shared Services learning series that ScottMadden presented in conjunction with SSON. In this session, we covered the elements of a good business case including examining current costs, projecting costs and savings based on your future design, and conducting sensitivity analysis to understand possible outcomes. This presentation provides detailed guidelines and lessons learned for developing a sound business case.
For more information, please visit www.scottmadden.com.
Technology is a key enabler for achieving the synergies and savings associated with a shared services delivery model and are important tools for running an HR service center. This is the second session in an HR Shared Services learning series that ScottMadden presented in conjunction with SSON. In this session, we reviewed a range of HR technologies to consider as you plan your shared services operation. We discuss the key functions of different types of technologies, important requirements and tips for evaluating different solutions, and guidelines for estimating technology costs.
For more information, please visit www.scottmadden.com.
EY Human Capital Conference 2012: Service delivery model transformationEY
Current trends and recent experience:
► Challenges affecting HR today
► Anticipated benefits from HR service delivery model
transformation
► HR transformation experience and lessons learned
This presentation gives a very high-level explanation of what a dashboard should be used for, what type of content it should consider and how it should look to be most effective.
Total Economic Impact of ADP Workforce NowAdrian Boucek
From the information provided in the interviews, Forrester has constructed a Total Economic Impact™ (TEI) framework for those organizations considering implementing ADP Workforce Now.
HR Shared Services Benchmarking Study Highlights: May 2017ScottMadden, Inc.
ScottMadden has joined forces with American Productivity & Quality Center (APQC), a benchmarking and best practices research organization, to conduct the forth cycle of the HR Shared Services (HRSS) Benchmarking Study. This study identifies gaps in HR SS benchmarking data specific to service center and center of expertise (CoE) staffing and performance metrics, targeting HRSS organizations with a service center and CoEs.
Planning Expansion and Adding Scope to your Current Shared Services OperationScottMadden, Inc.
Successful scope expansion for an existing shared services operation requires careful planning. Scope expansion can take a number of forms such as new services, new customer groups, and new geographies. “Shared Service Expansion” is the fourth session of a HR Shared Services learning series that ScottMadden is presenting along with Shared Services & Outsourcing Network (SSON). In this session, we cover an approach for planning expansion and keys to adding scope while balancing the demands of your current shared services operation.
A solid business case provides the foundation for implementing a successful shared services organization. This is the first session in an HR Shared Services learning series that ScottMadden presented in conjunction with SSON. In this session, we covered the elements of a good business case including examining current costs, projecting costs and savings based on your future design, and conducting sensitivity analysis to understand possible outcomes. This presentation provides detailed guidelines and lessons learned for developing a sound business case.
For more information, please visit www.scottmadden.com.
Technology is a key enabler for achieving the synergies and savings associated with a shared services delivery model and are important tools for running an HR service center. This is the second session in an HR Shared Services learning series that ScottMadden presented in conjunction with SSON. In this session, we reviewed a range of HR technologies to consider as you plan your shared services operation. We discuss the key functions of different types of technologies, important requirements and tips for evaluating different solutions, and guidelines for estimating technology costs.
For more information, please visit www.scottmadden.com.
EY Human Capital Conference 2012: Service delivery model transformationEY
Current trends and recent experience:
► Challenges affecting HR today
► Anticipated benefits from HR service delivery model
transformation
► HR transformation experience and lessons learned
This presentation gives a very high-level explanation of what a dashboard should be used for, what type of content it should consider and how it should look to be most effective.
Total Economic Impact of ADP Workforce NowAdrian Boucek
From the information provided in the interviews, Forrester has constructed a Total Economic Impact™ (TEI) framework for those organizations considering implementing ADP Workforce Now.
Technology is a key enabler for achieving the synergies and savings associated with a shared services delivery model and are important tools for running an HR service center. This is the second session in an HR Shared Services learning series that ScottMadden presented in conjunction with SSON. In this session, we reviewed a range of HR technologies to consider as you plan your shared services operation. We discuss the key functions of different types of technologies, important requirements and tips for evaluating different solutions, and guidelines for estimating technology costs.
For more information, please visit www.scottmadden.com.
HR Technology Tools: What You May Be MissingNet at Work
How HR Technology Improves Results, Increases Efficiency, and Lowers Costs.
Like most organizations, you probably face several HR-related business challenges including succeeding with limited HR resources, managing compliance & risk of litigation, and ensuring accurate and timely payroll.
In this complimentary live webinar we will demonstrate how today’s Human Resource Management Systems (HRMS) provide an integrated, all-in-one, software solution for automating and managing your organization’s core workforce administration, including:
Employee job & personal information
Government compliance
Employee benefits
Payroll options - including integration with outside payroll services (i.e. ADP, Paychex)
Recruitment
Employee Self Service
Attendance
Planning, analysis, and reporting
Employee development, compensation and retention
Plus! We’ll review in detail how HR technology and applications can positively impact your bottom line through standardized processes, increased productivity, direct cost savings, and better compliance.
Customer satisfaction is a critical measure of success for all shared services organizations. This is the fifth session of a HR Shared Services learning series that ScottMadden is presenting in conjunction with Shared Services and Outsourcing Network (SSON). Part five covers approaches and techniques for measuring satisfaction and we describe key dimensions of satisfaction. The presentation includes trends in customer satisfaction data from ScottMadden’s shared services customer surveys ranging from baseline surveys conducted pre-launch to on-going surveys for mature shared services organizations.
• Key things to know before moving to a global model
• Determining what processes should stay at the regional level
• Determine technologies that will support the global model
• Methods for determining the right scope of service for globalized delivery
• Identifying change management strategies
• Measuring the success
ScottMadden recently partnered with APQC for a complimentary three-part webinar series focused on shared services.
This webinar session, presented by Brad DeMent and Jerred Crosby, partners at ScottMadden, addressed employee engagement, continuous improvement, new service offerings, and expanding the scope of operations.
Leading the Charge, Driving the Change: Delivering the HR of the FutureTowers Perrin
Towers Perrin HR function effectiveness and technology specialists review and interpret the brand-new results of Towers Perrin's HR service delivery research. You'll learn what organizations are focused on now and how they are planning for the future -- despite an uncertain economic climate.
A solid business case provides the foundation for implementing a successful shared services organization. This is the first session in an HR Shared Services learning series that ScottMadden presented in conjunction with SSON. In this session, we covered the elements of a good business case including examining current costs, projecting costs and savings based on your future design, and conducting sensitivity analysis to understand possible outcomes. This presentation provides detailed guidelines and lessons learned for developing a sound business case.
For more information, please visit www.scottmadden.com.
Achieving HR Excellence: A Global and Evidence-Based View - from May 30 Pres...Waldron
Achieving HR Excellence: A Global and Evidence-Based View. Powerpoint Deck from from May 30 Presentation with John Boudreau highlighting findings from his (and Ed Lawler\'s) forthcoming book.
ScottMadden recently joined industry leaders at SSON’s 22nd Annual North American Shared Services & Outsourcing Week (SSOW) to provide strategies for establishing and continuing shared service success. This presentation shares key takeaways from the event, compliments of ScottMadden's Brad DeMent. For more information, please visit www.scottmadden.com.
The Common Challenges of Common Practices: Tips for Effectively Moving to a S...eprentise
Moving to a shared services model reduces costs and optimizes performance, but taking the right steps is necessary for a successful outcome. Explore the initiatives and challenges of a common chart of accounts and calendar for companies moving toward enterprise-wide shared service center operations. We will focus on how standardizing the data streamlines business processes, eliminates silos and facilitates the new functionality of Release 12. Case studies that discuss best practices and impact will be shared.
Website: www.eprentise.com
Twitter: @eprentise
Google+: https://plus.google.com/u/0/+Eprentise/posts
Facebook: https://www.facebook.com/eprentise
Shared services - A Strategic Cost Management PlatformSanjay Chaudhuri
Shared Services Platform (as self defining as it can be) promotes the idea of 'sharing' within an organization or group or may also be provided as 3rd party SBU services.
Creating a Single point of contact for all service deliveries, enabling Cost effective solutions, leverage Automation, optimize workforce and the Speed to fulfillment is the key to success of such organizations.
More and more companies are moving to such platforms and the success rate is very high.
Technology is a key enabler for achieving the synergies and savings associated with a shared services delivery model and are important tools for running an HR service center. This is the second session in an HR Shared Services learning series that ScottMadden presented in conjunction with SSON. In this session, we reviewed a range of HR technologies to consider as you plan your shared services operation. We discuss the key functions of different types of technologies, important requirements and tips for evaluating different solutions, and guidelines for estimating technology costs.
For more information, please visit www.scottmadden.com.
HR Technology Tools: What You May Be MissingNet at Work
How HR Technology Improves Results, Increases Efficiency, and Lowers Costs.
Like most organizations, you probably face several HR-related business challenges including succeeding with limited HR resources, managing compliance & risk of litigation, and ensuring accurate and timely payroll.
In this complimentary live webinar we will demonstrate how today’s Human Resource Management Systems (HRMS) provide an integrated, all-in-one, software solution for automating and managing your organization’s core workforce administration, including:
Employee job & personal information
Government compliance
Employee benefits
Payroll options - including integration with outside payroll services (i.e. ADP, Paychex)
Recruitment
Employee Self Service
Attendance
Planning, analysis, and reporting
Employee development, compensation and retention
Plus! We’ll review in detail how HR technology and applications can positively impact your bottom line through standardized processes, increased productivity, direct cost savings, and better compliance.
Customer satisfaction is a critical measure of success for all shared services organizations. This is the fifth session of a HR Shared Services learning series that ScottMadden is presenting in conjunction with Shared Services and Outsourcing Network (SSON). Part five covers approaches and techniques for measuring satisfaction and we describe key dimensions of satisfaction. The presentation includes trends in customer satisfaction data from ScottMadden’s shared services customer surveys ranging from baseline surveys conducted pre-launch to on-going surveys for mature shared services organizations.
• Key things to know before moving to a global model
• Determining what processes should stay at the regional level
• Determine technologies that will support the global model
• Methods for determining the right scope of service for globalized delivery
• Identifying change management strategies
• Measuring the success
ScottMadden recently partnered with APQC for a complimentary three-part webinar series focused on shared services.
This webinar session, presented by Brad DeMent and Jerred Crosby, partners at ScottMadden, addressed employee engagement, continuous improvement, new service offerings, and expanding the scope of operations.
Leading the Charge, Driving the Change: Delivering the HR of the FutureTowers Perrin
Towers Perrin HR function effectiveness and technology specialists review and interpret the brand-new results of Towers Perrin's HR service delivery research. You'll learn what organizations are focused on now and how they are planning for the future -- despite an uncertain economic climate.
A solid business case provides the foundation for implementing a successful shared services organization. This is the first session in an HR Shared Services learning series that ScottMadden presented in conjunction with SSON. In this session, we covered the elements of a good business case including examining current costs, projecting costs and savings based on your future design, and conducting sensitivity analysis to understand possible outcomes. This presentation provides detailed guidelines and lessons learned for developing a sound business case.
For more information, please visit www.scottmadden.com.
Achieving HR Excellence: A Global and Evidence-Based View - from May 30 Pres...Waldron
Achieving HR Excellence: A Global and Evidence-Based View. Powerpoint Deck from from May 30 Presentation with John Boudreau highlighting findings from his (and Ed Lawler\'s) forthcoming book.
ScottMadden recently joined industry leaders at SSON’s 22nd Annual North American Shared Services & Outsourcing Week (SSOW) to provide strategies for establishing and continuing shared service success. This presentation shares key takeaways from the event, compliments of ScottMadden's Brad DeMent. For more information, please visit www.scottmadden.com.
The Common Challenges of Common Practices: Tips for Effectively Moving to a S...eprentise
Moving to a shared services model reduces costs and optimizes performance, but taking the right steps is necessary for a successful outcome. Explore the initiatives and challenges of a common chart of accounts and calendar for companies moving toward enterprise-wide shared service center operations. We will focus on how standardizing the data streamlines business processes, eliminates silos and facilitates the new functionality of Release 12. Case studies that discuss best practices and impact will be shared.
Website: www.eprentise.com
Twitter: @eprentise
Google+: https://plus.google.com/u/0/+Eprentise/posts
Facebook: https://www.facebook.com/eprentise
Shared services - A Strategic Cost Management PlatformSanjay Chaudhuri
Shared Services Platform (as self defining as it can be) promotes the idea of 'sharing' within an organization or group or may also be provided as 3rd party SBU services.
Creating a Single point of contact for all service deliveries, enabling Cost effective solutions, leverage Automation, optimize workforce and the Speed to fulfillment is the key to success of such organizations.
More and more companies are moving to such platforms and the success rate is very high.
HR departments are deeply evolving from administrative-focused to business-focus organizations. Thanks to its in-depth knowledge on IT&Ops, CH&cie takes you through the context and stakes of this transformation
Focus HR management efforts on maximizing personnel transactions and service effectiveness including reduction in personnel spending thus increasing HR team’s service orientation and response time to business needs
The HR business partner is the most critical, yet frequently ignored role in the move to HR shared services. Much attention is given to new roles created by a shared services model while little attention is given to how the business partner role must change with the new model. This is the third session of a HR Shared Services learning series that ScottMadden presented in conjunction with Shared Services & Outsourcing Network (SSON). In this session, we discussed the important evolution of the business partner role and the skills and competencies needed to effectively support the business.
To learn more, please visit www.scottmadden.com.
The HR business partner is the most critical, yet frequently ignored role in the move to HR shared services. Much attention is given to new roles created by a shared services model while little attention is given to how the business partner role must change with the new model. This is the third session of a HR Shared Services learning series that ScottMadden is presenting in conjunction with Shared Services & Outsourcing Network (SSON). In this session, we discuss the important evolution of the business partner role and the skills and competencies needed to effectively support the business.
* Sophisticated decision support through customizable reporting feature
* Scalable application with highly flexible deployment infrastructure
* Manage workforce planning to support project specific requirements and exits
* Connect different departments and delivery center under one umbrella of review and policy management
* Streamline entire Onboarding to Off boarding processes
* Reduce time spent on low & high end operational, routine activities
* Connect and Engage with employees and usher in transparency
There is a lack of trust, and employers must be careful to handle the employee relationship securely. Blockchain can support that trust if you find the right use case.
In 2011 I wrote in a whitepaper: The workplace will be more flexible, more virtual, more global, more freelance, more collaborative and far less secure.When I was invited to present at HR Change and Transformation in London, I decided to zoom in on the keywords of that quote and discuss the HR & Technology Trends including the Consumerization of HR.
There are 3 main HR service delivery challenges:
Drive down cost
Improve delivery quality
Standardization and best practices
How can you measure the service center contribution to those goals?
Meerwaarde in HR, meer waarde voor uw organisatieAnita Lettink
SAS invited me to present at their Human Capital Intelligence Briefing.I started my presentation with an overview of external trends and then talked about 5 key focal points for HR. And then we focused on 2 key questions:
- How can you make the contribution of Human Capital on the company strategy visible (if at all)?
- What are the Human Capital activities that HR should execute to influence the company results?
STZ invited me to speak on HR (Out)sourcing. We discussed reasons to consider outsourcing (part of) HR services and then talked about what to do to make an informed decision.
Presentatie over de ontwikkelingen van HR Business Process as a Service, gegeven tijdens het Mini-Seminar BPO en Cloud van Platform Outsourcing Nederland
Imagine, if you will, your company without an HR function. Now suppose you're asked to set up HR: What would you do? Would you create something similar or radically different? Would you create it at all?
4. 4
1. Is there a case?
Why should HR change?
Is it worthwhile to invest company money in it?
2. How to move from current to desired end-state?
Which are the steps to take?
... but how do you answer
the following 2 questions?
HR Transformation
Evolving HR Organization (2)
5. 5
Business Driven
Run HR like a Business, including Experts
(R&D), Business Partners (Sales&Mkt) and
Service Delivery (Production)
Operational Excellence
Efficiency gain through focus on
operational excellence and optimized
sourcing mix: Each party must focus on
delivering the best value & quality for
money
Optimization of internal
cash flow
Administration
Guidelines
Procedures
Consulting
Planning
Strategy
HR Shared
Services
Business
Partners
HR
Experts
&
3 Key Principles
Optimize Internal HR Cash Flow: spend
the HR budget on processes that add the
most value to the business
6. 6
Client Case:
Challenges for HR
Technology War for talent Globalization Intangibles
The external economy
All core
processes are
restructured
and in ERP
Virtual teams
Not everyone
has access to
IT
Large employers
in the area
Readiness for
job changes
High demands
on job contents
and working
conditions
Aging workforce
Great interest in
incentives and
performance
related pay
Mobile staff
members
Cultural
diversity
Integration
Ability to
change
Knowledge
and
competencies
are far more
important
than material
assets
Ideas are
crucial for the
company´s
result
People are the
prime source
of competitive
advantage
7. 7
Business Driven HR:
Contribute to company results
Business Goals and Objectives
Prepare to
incorporate
acquisitions
Prepare to
incorporate
acquisitions
Growth
strategy &
eliminate waste
Growth
strategy &
eliminate waste
Support and
replace aging
workforce
Support and
replace aging
workforce
Business Results
HR
Contribution
8. 8
Business Driven HR:
Contribute to company results
HR Role
Business Goals and Objectives
Employee-
Related
Processes
HR is Business
Partner to
Managers and
Employees
HR is Business
Partner to
Managers and
Employees
HR is Service
Provider to the
organization
HR is Service
Provider to the
organization
Engagement,
Interaction,
Collaboration
Engagement,
Interaction,
Collaboration
Transaction,
Administration,
Support
Transaction,
Administration,
Support
HR is
Expert for
the Business
HR is
Expert for
the Business
Recruiting,
Mobilty,
Development,
Retention
Recruiting,
Mobilty,
Development,
Retention
Business Results
9. 9
Client Case:
Business Driven HR goals
Business Driven HR
transforms the service that HR provides with focus on assisting managers
and employees in their working activities to achieve business results
Current Environment
Administrative waste
Paper-driven processes
Control orientation
Legacy processes – long
process cycle times
Inflexible legacy support
systems
Information and systems not
user friendly
Target Environment
Lower cost of operations
Self service
Customer orientation
Innovated processes on
Internet time
Flexibility and mass
personalization
Information becomes a
strategic resource
Strategic partner contributing
to competitive advantage
10. 10
Client:
Applying Best Practices
Apply Best practices to…
Increase service level (both number & quality) at a reduced cost and enabling
technologies:
• Redesign process components and place where they are most valuable or cost
effective (be that at the call center, a center of expertise, or the business unit)
• Support redesigned processes by applying standardized ERP and web-enabled
technologies
Enable a focus on value-added services driving to “employer brand”
• Focus on HR leadership to achieve business return on investment
• Change management to obtain leadership buy-in and employee commitment
Benefit from other potential outcomes, such as:
• To pilot an approach to enable similar benefits for other non-core functions
• To develop an approach that can easily be repeated to incorporate acquisitions
• To participate in a profitable business (if equity partner)
11. 11
Agenda
1. The Beginning
2. Financial Scenarios
3. Operational Excellence in HR
4. Results, Challenges and Success Factors
12. 12
HR Business Plan
Benefit cost 269 6,8%
Social cost 476 12,1% Facility cost 187 4,8%
Performance
related pay
0 0,0% Personal IT cost 221 5,6% IT cost 136 3,4%
Annual base salary 2.265 57,5% Function cost 113 2,9% Third party cost 275 7,0%
Direct staff cost 3.010 76,3% Indirect staff cost 522 13,2%
Direct process
cost
411 10,4%
Total HR FTE's 65,3
3.943
HR Cost in (k€)
HR process costs in %
27%
7% 9% 9%
28%
11%
5%
4%
Personnel administration Payroll
Communication w ith Employees Benefits and compensation
Recruitment HR reporting
Time & Attendance Others
Activity distribution per process (relative distribution)
Basic
Absences (illness)
Exit Management
Employee communications
Payroll
a
Value
Competence Management
Performance Management
Performance Management
Strategic
Enabler
HR Reporting
Enabler
21% 21%58%
Administrator Specialist Generalist
Total HR FTE
Workforce Planning Vendor Management
Benefits & Compensations
a
Health & Safety
Labour & Employee Relations
a
Recruitment
Training
HR Strategy
Personnel administration
13. 13
Client Vision
Our Vision for HR:
To maintain only what’s needed in-house, and outsource or use self-service for the
majority of the workload
10%
30%
60%
Strategy
• Compensation & Benefits
• Career & Succession Planning
• Function Evaluation System
• Identification of Staffing Needs
Consultative Services
• Training
• Customer Reporting
• Recruitment
Procedures & Administration
• HR Administration
• Payroll Accounting
• Legal reporting
• Service Center Transaction Processing
HRM
Core
Competence
Push to
Employee &
Management
Desktop
Outsource
14. 14
Sourcing scenario’s
Full BPO
Outsourcing of
multiple HR
processes
Vendor Mgt
Center of Expertise
Transfer of both
Technology & Staff
Outsourced
HRSC
Managed Payroll
(including Subject
Matter Experts)
HR Service
Center
Managed Payroll
HR Admin
Outsourcing
Discrete
Processes
(regional)
Recruiting
Payroll
Benefits
Technology
Outsourcing
(ISO)
Application
Maintenance
Outsourcing
(AMO)
Payroll Handling
As Needed
Special
Processes &
Local Projects
Inhouse
HR projects
15. 15
Organizational Framework
Corresponding to the vision, the organisational model
included an external partner.
HR Leadership
Employee and Manager Self Service
Employ-
ees &
Manager
HR
Consultants
• Payroll
• Compens
ation
• Benefits
• Time
Con-
tact
Center
• HR
Adminis-
tration
• Reportin
g
• Recruitme
nt
• Training
Career &
Successio
n
• Competenci
es
• Management
Developmen
t
Technology Center
HR Policy
Experts /
Process Owner
Central
Manager
HRSSC
HR Leadership
Employee and Manager Self Service
Employ-
ees &
Manager
HR
Consultants
• Payroll
• Compen
-sation
• Benefits
• Time
Con-
tact
Cen-
ter
• HR
Adminis
-tration
• Reporti
ng
• Recruit-
ment
• Training
Career &
Successi
on
• Competenci
es
• Managemen
t
Developmen
t
Technology Center
HR Policy
Experts /
Process Owner
Central Manager
HRSSC
Manager
Technology
Centre
Account
Manager
HR Internal Shared Service Center Managed services Full BPO
1 2 3
PartnerCompany
HR Leadership
Employee and Manager Self Service
Employ-
ees &
Manager
HR
Consultants
• Payroll
• Compen-
sation
• Benefits
• Time
Con-
tact
Cen-
ter
• HR
Adminis-
tration
• Reportin
g
• Recruitme
nt
• Training
Career &
Successio
n
• Competencie
s
• Management
Development
Technology Center
HR Policy
Experts /
Process Owner
Central
Manager
HRSSC
Account
Manager
Manager
Technology
Centre
Account
Manager
16. 16
Benefits of Future Scenarios
Scenario 1
Internal HRSC with
In-Country Centralization
Scenario 2
Managed
HR & Payroll Services
Scenario 3
HR Business
Process Outsourcing
Tangible Benefits
(impacting
financials)
HR Headcount reduction due
to proposed organizational
model
IT costs reduction due to
centralization of IT
infrastructure and IT support
(Savings associated to
hardware and manpower
mutualization)
Cut off of multiple vendor
contracts (elimination of
contract services)
Same as Scenario 1
Initial investment costs can
be pre-financed
Additional HR Headcount
reduction due to proposed
organizational model
transferring HR Operations
activities to the provider for
the processes concerned
Additional IT Headcount
reduction due to proposed
organizational model
transferring Application
Maintenance activities to
the provider
Same as Scenario 2
Additional HR Headcount
reduction due to proposed
organizational model : full
HR Support & Operations
activities and Application
Maintenance for the
processes concerned
Intangible Benefits
(impacting
customers,
processes and
competence)
Efficiency due to process
standardization
Improve customer satisfaction
due to standardized service
model
Better governance and
measurement
Benefit from high standard
technology
Better prepare for tomorrow:
next steps - Scenario 2 and 3
Same as Scenario 1
Better cost control due to
limited usage of variable
costs on the processes part
being outsourced
Rely on a professional to
retain necessary skills and
focus people on core
competencies
Same as Scenario 2
Total cost cost control due
to extended usage of
variable costs on the full
processes partly outsourced
Extend easily the model to
all HR processes
Full process handled end to
end
18. 18
Agenda
1. The Beginning
2. Financial Scenarios
3. Operational Excellence in HR
4. Results, Challenges and Success Factors
19. 19
Transition Approach
What ?
How ?
With what ?
26. Bearbeitung Familienheimfahrten
27. Bearbeitung Telefonkostenzuschuss
28. Erfassen Prämien BVW/KVP
29. Zuschuss Haushaltshilfe
30. Überzahlung (z.B.EADS-Aktien)
31. Berechnung und Überw. der
Erfindervergütung/
BVW/KVP an nicht Betriebsangehörige
32. Zahlung von Trenngeld
33. Versand DEÜV (Inkl. Jahresmeldung)
34. Steuerkartenaufkleber (altes Jahr)
35. Erstattungsantrag ATZ
36. Beitragsnachweise an KK inkl.
Rückfragen
37. Überprüfung der Jahresentgeltgrenze
38. Cluster: Bescheinigungen
a) Bescheinigung Arbeitslosenhilfe
b) Bescheinigung BG Entgeltnachweise
c) Bescheinigung BfA/LVA Arbeitsentgelt
d) Bescheinigung Bundeswehr/Zivildienst
e) Bescheinigung Erziehungsgeldantrag
f) Bescheinigung Gerichte und Sozialhilfe
g) Bescheinigung Haushaltshilfe
h) Bescheinigung IGM unbezahlte Freistellung
i) Bescheinigung Kindergeld Ausbildung
j) Bescheinigung Kindergeld Fortdauer + Ende
k) Bescheinigung Krankengeld
l) Bescheinigung § 312SGB III Arbeitsamt
m) Bescheinigung Unterhaltssicherung
n) Bescheinigung Verdienstausfall
o) Bescheinigung Wohngeld
p) Zwischenbescheinigung
26. Bearbeitung Familienheimfahrten
27. Bearbeitung Telefonkostenzuschuss
28. Erfassen Prämien BVW/KVP
29. Zuschuss Haushaltshilfe
30. Überzahlung (z.B.EADS-Aktien)
31. Berechnung und Überw. der
Erfindervergütung/
BVW/KVP an nicht Betriebsangehörige
32. Zahlung von Trenngeld
33. Versand DEÜV (Inkl. Jahresmeldung)
34. Steuerkartenaufkleber (altes Jahr)
35. Erstattungsantrag ATZ
36. Beitragsnachweise an KK inkl.
Rückfragen
37. Überprüfung der Jahresentgeltgrenze
38. Cluster: Bescheinigungen
a) Bescheinigung Arbeitslosenhilfe
b) Bescheinigung BG Entgeltnachweise
c) Bescheinigung BfA/LVA Arbeitsentgelt
d) Bescheinigung Bundeswehr/Zivildienst
e) Bescheinigung Erziehungsgeldantrag
f) Bescheinigung Gerichte und Sozialhilfe
g) Bescheinigung Haushaltshilfe
h) Bescheinigung IGM unbezahlte Freistellung
i) Bescheinigung Kindergeld Ausbildung
j) Bescheinigung Kindergeld Fortdauer + Ende
k) Bescheinigung Krankengeld
l) Bescheinigung § 312SGB III Arbeitsamt
m) Bescheinigung Unterhaltssicherung
n) Bescheinigung Verdienstausfall
o) Bescheinigung Wohngeld
p) Zwischenbescheinigung
Content and Processes Service
Catalogue
... transactions will
be performed and
what services will
be offered by the
HR SSC?
IT-Systems /
Infrastructure /
Data
...technology
support and tools
will the HR SSC
operate and the
work be performed?
Organization
... will the HR SSC
be organised and
how will the
transition be
managed?
?? ?
Change Management
As-Is To-Be
HR Leadership
Employee and Manager Self Service
Employ-
ees &
Manager
HR
Consultants
• Payroll
• Compen-
sation
• Benefits
• Time
Con-
tact
Cen-
ter
• HR
Adminis-
tration
• Reportin
g
• Recruitme
nt
• Training
Career &
Successio
n
• Competencie
s
• Management
Development
Technology Center
HR Policy
Experts /
Process Owner
Central
Manager
HRSSC
Account
Manager
Manager
Technology
Centre
HR Leadership
Employee and Manager Self Service
Employ-
ees &
Manager
HR
Consultants
• Payroll
• Compen-
sation
• Benefits
• Time
Con-
tact
Cen-
ter
• HR
Adminis-
tration
• Reportin
g
• Recruitme
nt
• Training
Career &
Successio
n
• Competencie
s
• Management
Development
Technology Center
HR Policy
Experts /
Process Owner
Central
Manager
HRSSC
Account
Manager
Manager
Technology
Centre
Scan Station
(Kofax Ascent Capture)
Service Center NL
WebTop WebTop WebTop
WebTop
Client Site
WebTop WebTop
Database
(Oracle)
ContentServer
Application Server
(Tomcat)
File Server or SAN Kofax
Scan Server
Brussels Data center A
AcrobatPDF
Rendition
Content Rendition
Services
21. 21
Guiding Principles
Process Technology
Circle of Influence
in Process Design
Enables
and restricts
Defines and
simplifies
Guiding Rules in HR Process Design
Don‘t automate, obliterate
Start with visioning, don‘t start getting stuck in the as-is situation
Simplify and standardize as much as business requirements allow
Use IT as an enabler for process simplifications, value-adding variations and
innovations
Assess the As-is situation for current weaknesses and adress quick wins first
The Importance and Benefits of
HR Process Design
1. Simplification and standardisation
key enablers for efficiency and
productivity benefits
2. Value Analysis
unified view of global HR business and
chance to improve value-adding
processes and eliminate non value-adds
3. Flexibility and Quality
react to increasing needs to deliver high
quality HR services and to be flexible
22. 22
Process Level Overview
Level 1: Company
model
Level 2: Process
Hierarchy
Level 3: Main
Activities &
Responsibilities
Level 5: Work
instructions
Level 4:
Detailed
Activities & Roles
LevelofDetail
Recruiting
0. Human Resources
Workforce
Planning/
Needs
Assessment
Planning and
Sourcing
Selecting Onboarding Evaluation
Recruiting
Sourcing
Planning
Create
Candidate
Pool
Selection
Process
Negotiate
and
Make Offer
Joining
Measurement
& Feeback
Center of
Expertise
Service
Center
Business
Partner
Manager
Employee /
Candidate
Approved
vacancy
4.1 Detail
approved
vacancy
4.1 Detail
approved
vacancy
Performance Mgt.Performance Mgt.
Career Mgt.Career Mgt.
4.2 Identify
sourcing
channels
4.3 Initiate sourcing
and communication
of open position
(in/external)
4.4 Manage
initial application
and queries
(in/external)
4.4 Manage
initial application
and queries
(in/external)
4.5 Screen
applications for
appropriate fit
4.6 Initiate
interview
process
1Dependent on
level of position,
to include job
description,
competencies,
compensation,
timeframe
Dependent on
level of position,
to include
- telephone
- face-to-face
- assessments
- testing
LineManagerSSC(T1/T2)
Recruitment: Selection
HRBusinessPartnerCandidate/CurrentE,ployeeInterviewTeam
ARINSO International
PROCESS TRIGGER
STEP 1
Candidate
Pool
Process
Select
Interview
Team
members
Set up interview
dayschedule
and logistics
Travel
arrangements
required?
Receive notification
of interview day
schedule and
logistics
No
Arrange traveland
accommodations
Yes
Conduct initial
interview
Update RMS
with interview
notes
Viable
candidate?
Notify
unsuccesful
candidates of
outcome
No
Conduct
interviews
Receive
notification
and invitation
Accept?
No
Review job
specifications and
targeted selection
questions in RMS
Yes
Yes
Update RMS
with interview
notes
Review RMS
interview
notes
Discuss
interview results
and identify top
X choices
Notify
unsuccesful
candidates of
outcome
Is final
interview
needed?
Conduct final
interview
Yes
Make final
selection
Notify
unsuccesful
candidates of
outcome
Negotiate
and Make
Offer
STEP 2
STEP 2A
STEP 2B STEP 2C
STEP 3
STEP4 STEP 5
STEP 6
STEP 6A
STEP3A STEP7 STEP 8
STEP 9
STEP 10
STEP 9A
STEP 11
STEP 12
STEP 10
No
23. 23
Process Approach
Global Process
Designs
(Level 1-3+)
• Started with Best Practice Global HR Process Designs
• Global Focus
• HR SMEs
• 4 Weeks of workshops
Local Process
Designs
(Level 4-5)
Standard
Operating
Procedures
Ongoing
Process
Optimization
• Addressed local and regulatory requirements
• HR SMEs
• Validation Client & ARINSO
• 12 Weeks of Workshops
• Detailed procedures for
Service Center
• Based on Global and Local
Process Designs, Client SME
Input, and existing ARINSO
Standards
24. 24
Evaluating inhouse versus outsourced
1. Is this service from outside vendors difficult to find in the market place?
2. Is this activity non-repetitive, low-volume, and requiring significant
professional judgment?
3. Does this activity contribute to developing the knowledge capital within the
company (i.e., does doing it in-house truly enhance company’s
competitive advantage?)?
4. Does this activity require significant company knowledge/expertise?
5. Does this activity require a large degree of interaction inside the company
businesses?
6. Is this activity difficult or expensive to measure? Does having a
measurement add value to the organization?
7. Are the individual transaction costs difficult to define/identify?
8. Does this activity have a low level of standardization/harmonization?
25. 25
Agenda
1. The Beginning
2. Financial Scenarios
3. Operational Excellence in HR
4. Results, Challenges and Success Factors
27. 27
Call Distribution
67%
11%
3%
19%
T1 processed Redirected
T2 processed Cancelled etc.
Calls are mostly handled
by Tier 1 agents
N = 22,916 calls
0
500
1.000
1.500
2.000
2.500
3.000
3.500
jan feb mar apr may jun jul aug sep oct nov dec
Distribution of calls
over time
T1 processed
Cancelled
Redirected
28. 28
Functional Ticket Distribution
Payroll
46%
Benefits
15%
HR Admin
31%
ESS
7%
1%
Payroll
Benefits
HR Admin
ESS/MSS
(T)BPO & Misc.
Distribution of Service Center inquiries
(‘tickets’) across functional areas
22,916 calls have created a total of 18,699 ‘tickets’
The difference are employees calling on the status
of an existing ticket.
29. 29
0
200
400
600
800
1000
1200
1400
1600
1800
jan feb mar apr may jun jul aug sep oct nov dec
Benefits
Payroll
HR Admin
Benefits
17%
HR
Admin
62%
Payroll
21%
Distribution of ESS
transactions across functional
areas
N = 10,280 MSS/ESS
Transactions
(transactions only, no page
views)
Distribution of ESS
transactions over time
ESS Distribution
30. 30
30%
32%
38%
0%
Tier 1 T2 HR & Bene T2 Payroll T3 (T)BPO
Ticket Resolution
Resolution of Service
Center inquiries
(‘tickets’) across ESC
N = 19,276 Tickets (IVR)
(a limited number of tickets are
created by T2, most by T1)
0
500
1000
1500
2000
2500
3000
3500
4000
jan feb mar apr may jun jul aug sep oct nov dec
T3
T2 Pay
T2 HR & B
T1
Resolution of Service
Center inquiries
(‘tickets’) over time
T2
Payroll
T2 HR &
Ben
T1
31. 31
Some of the challenges we faced...
In working with Employees and
Managers
Computer illiteracy
Wide range of computer experiences
Expectation of service of former service
provider
HR program, Payroll
Lack of understanding of service levels
Acceptance of new processes
Confusion on roles: whom to call in
which case?
Incidentally: perceived lack of proper
training
In working with HR:
Standardization and centralization is
new
‘This is not the way we are used to do
things around here!’
HR-, Benefits-, and Payroll-resources
were affected by the transition to BPO
‘Why would I care?’
Most processes are ‘spread out’ over
several parties
‘Why are you asking me? You guys
should solve this issue!!’
Significant reorganizations were
expected: sabotage?
‘It’s not my problem anymore!’
Additional implementation phases
might be coming up
‘I don’t have time for that’
Tired of change
32. 32
Success Factors
Accurate As-Is financial information and monthly business case update
Factual discussion of all possible scenarios including outsourcing
Provide security and direction
Clear management decisions
Early warning for dismissals (but not too early)
Individual development plans
Dialogue: many individual talks/meetings
Walk the talk
Involvement of all affected persons in on-site and process workshops
Free up staff for project duties and have them work in the project room
(hire external help)
Clear structure and documentation
High management attention
33. Drive & Commitment
Unique blend of Consultancy, Technology and Outsourcing
Global company, local presence and knowledge
Dedicated to HR since inception
ARINSO KEY DIFFERENTIATORS