View
215
Download
0
Category
Preview:
Citation preview
© Fujitsu Services1 Transforming the HR Function – December 2007
GLOBAL SOURCING MASTERCLASS6TH DECEMBER 2007
© Fujitsu Services 2007
HROTRANSFORMING THE HR FUNCTIONA Fujitsu Services PerspectiveDierdre HardyShaun Dunphy
© Fujitsu Services3 Transforming the HR Function – December 2007
Agenda
• Introduction• What type of HR function are you?• The outsourcing attitude gap• What makes a good HRO partnership• What processes?• Understanding the benefits• Defining and improving SLA’s• The retained organisation• Change challenge• Lessons learned
© Fujitsu Services4 Transforming the HR Function – December 2007
グローバル・プレゼンス
富士通グループ
概要• におけるグローバルマーケット IT システ
・ 分野の 、ム サービス リーダー $432億 (€325 億 ) 規模
• コアビジネス :• テクノロジーソリューション ( およびシステムプラットフォーム サービス )• ユビキタスプロダクトソリューション ( 、 等パソコン ハードディスク )• 電子デバイスソリューション
• IT において、日本サービスマーケットでは第 1 位、世界では第 3 位のシェアを有する
• 世界 70 ヶ国以上でのセールスおよびサポート提供• 従業員数 161,000 人
アメリカ10,000
EMEA*( ヨーロッ
・中パ東・アフリカ )25,000
・アジアパシフィック28,000
日本99,000
* EMEA 従業員数は富士通シーメンス・コンピューターズを除く
© Fujitsu Services5 Transforming the HR Function – December 2007
GLOBAL PRESENCE
Fujitsu Group
In summary• A $43.2bn (€32.5bn) leader in IT
systems and services for the global marketplace
• Core businesses of:• Technology Solutions (System
Platforms & Services)• Ubiquitous Product Solutions
(PCs, HDDs, etc.)• Device Solutions
• Fujitsu has the highest share of the IT services market in Japan, the 3rd highest worldwide
• Sales and support operations in over 70 countries• 165,000 employees worldwide
Americas10,000
Europe25,000
Asia-Pacific28,000
Japan99,000
© Fujitsu Services6 Transforming the HR Function – December 2007
HRO
Why do organisations consider HRO?
HRO providers resolve disparate approaches to delivering internal services, controls costs, improves quality and consistency of services and uses
technology to streamline the process.
It enables clients to concentrate their limited HR team on creating sustainable competitive advantage by getting the right people with the right
competencies in the right place at the right time.
Low impact, high volume non-core administration and employee support are moved to the BPO provider who concentrates on service delivery via economies of scale and automation.
© Fujitsu Services7 Transforming the HR Function – December 2007
DRIVERS
Key drivers stated by clients
2006 Survey (Aberdeen Group)•Better cost accountability and cost control (64%)•Free up valuable HR time and resources (59%)•Improve HR services to end users (33%)
Other drivers mentioned by clients•Overcome poor management information about people•Inconsistencies in internal HR practices•Industrialise or commoditize HR•Not core business•Facilitate integration after merger or acquisition•Looking for a global solution•Economies of scale / cost effective solutions•It has worked in the USA so wish to replicate•Remove bureaucracy / increase line management role•Integrated ERP business system•Better use of technology – intranet, telephony, email for self-service
© Fujitsu Services8 Transforming the HR Function – December 2007
What is HRO?
• Employees
• Management
• HR Professionals
• Applicants
• Pensioners
Tier 0
Tier 1
Tier 2Tier 3
Self Service Assisted Service ProfessionalService
Systems: Internet, Intranet, e-mail forms, workflow s/w
Employee
Advisors, Agents, Clerical, Administrators Case Workers
Systems:Helpdesk,Issue Ticketing
Systems:CRM
Centres of Expertise
SelfService
66% 28% 5% 1%100%>>
includes:• Policy Experts• Process Content
Owners• HR “Partners”
Outsourced as Core HR services
Outsourced as on Demand HR services
Retained within client HR Function
SharedServices
© Fujitsu Services9 Transforming the HR Function – December 2007
THE TRANSFORMATION ROADMAP & BENEFITS
What sort of HR function?E
ffec
tive
nes
s: T
rans
form
atio
n
Traditional HR
• Often unmeasured, or measuring irrelevant statistics• HR focusing on people issues• Fire fighting• HR generalists delivering local services
Streamlined HR• Reduce HR operating costs per FTE (Administrative
costs reduced 20-40%)• Decrease manager time per HR transaction • Decrease cycle time per HR transaction and person-to-
person inquiries,• HR have the fundamentals right:
Administrative excellence, Employee champion, Increasing service at reduced cost
Evolved HR• Reduce HR ops costs per FTE (Admin costs total of 30-40%)• Increase ability of HR to focus on strategic tasks • Increase customer satisfaction levels • Reduce cost per hire / Reduce time to proficiency• Lower influenced costs• HR building capability:
Developing talent, Linking performance mgt to business results, Engaging employees, Change leadership
High Performance
• Grow revenue per FTE, revenue per comp/benefit cost• Improve employee satisfaction• Reduce voluntary turnover• Increase retention of key talent• Improve workforce performance • HR leading change:
Proactive nature, Strategic business partner, Drive culture change, Help create the new business model
Efficiency: “Best Practices”
Driver: Productive & engaged workforce Driver: High performing workforce
Driver: Basic services to workforce Driver: Efficiently managed workforce
© Fujitsu Services10 Transforming the HR Function – December 2007
The outsourcing attitude gap
Fix my processes
Improve management information
Flexible approach
The client’s name / reputation
Regular income
Simple repeatable processes
The ClientThe Client The VendorThe Vendor
There is always a risk of outsourcing going wrong because the client and the vendor are driven by different needs
© Fujitsu Services11 Transforming the HR Function – December 2007
What makes a good HRO partnership
• Clarity of vision• Senior stakeholder champion• Evidence of rapid decision-making in the past• IT literacy of employees• Clearly defined HR policies – the “rules”• Clear ownership of HRO programme• Agreed benefits / outcomes / measures• Prepared to work as a partnership• Prepared to develop services over time• Understands potential impact on employees and line managers as
well as the retained HR organisation• Prepared to commit for at least 5 years
© Fujitsu Services12 Transforming the HR Function – December 2007
CHARACTERISTICS
What processes can we outsource?
Transactional
Independent of location
Not your core business
Process rather than project
Can be visualised as a service commodity
Relatively high volume
Rule-based
Time consuming
© Fujitsu Services13 Transforming the HR Function – December 2007
Rocket Science?
Route Map
It looks relatively straight-forward – just redesign for efficiency and effectiveness
It looks relatively straight-forward – just redesign for efficiency and effectiveness
““As is”As is”
““To Be”To Be”
© Fujitsu Services14 Transforming the HR Function – December 2007
But do we know how it really works?
Route Map
““As is”As is”
““To Be”To Be”
Often poorly captured – relies on tacit knowledge of the people who run the process
Often poorly captured – relies on tacit knowledge of the people who run the process
Often defined in terms of desired business outcomes (e.g. cost savings) rather than a shared vision of how it will work
Often defined in terms of desired business outcomes (e.g. cost savings) rather than a shared vision of how it will work
© Fujitsu Services15 Transforming the HR Function – December 2007
Example of an HR Process Taxonomy
EMPLOYEE EXIT processes
Involuntary exit
Voluntary exit
EMPLOYEE EVENTS
Personal information
Data changes
Temporary assignments
Pay changes Transfers Leave of absence
Unpaid leave of absencePaid leave of absence
EMPLOYEE ENTRYHiring
Failure to start work
Hiring a new employee
Hiring a temporary employee
Rehiring an ex -employee
Hiring an employees via
company acquisition
Taking paid maternity leave
Taking paid military leave
Taking paid long term disability
Taking unpaid maternity /paternity
leave
Taking unpaid military leave
Taking unpaid educational leave
Taking unpaid compassionate
leave
Taking unpaid long term disability
leave
Returning from unpaid leave of
absence
Returning from paid leave of
absence
Resignation
Mutual agreement
Voluntary redundancy
End of temporary employment
Compulsary redundancy
Outsourcing /transfer of
undertakings
Death in service
Failed pre-employment
No showChanging from temporary to permanent
employment
Promotion without a pay change
Changing between full-time and part -
time hours
Off-cycle market adjustment
Merit pay
Promotion with grade change
Demotion with grade change
Cost of living adjustment
Pay increase on transfer
Re-organisation
Cost centre (department )
change
Location change within country
Job change with no pay change
Temporary foreign assignment
Return from temporary foreign
assignment
Permanent transfer between
countries
Transfer to affiliate company within
country
Vacation / holiday tracking
Sickness reporting
Personal details update
Benefits enrolment
Benefits change
Benefits exit
Dismissal / Unsatisfactory performance
Employee Relations
Equal opportunities
Inefficiency
Disciplinary
Grievance
Performance
Learning & Development
Performance appraisal
Personal development
© Fujitsu Services16 Transforming the HR Function – December 2007
Rethink HR processes as business processesM8) Offer a foreign employee a temporary assignment with my team
Line manager
Resourcing (SSC)
HR Services (SSC)
Employee
Payroll Admin (SSC)
Internal service providers
Authorisers
Complete Transfer Request Form
Releasing MgrAuthorise temporary assignment
HR PoC Arrange temporary assignment
Send out temporary
assignment pack
Accept temporary assignment
Receive offer acceptance
Update HRMS If necessary, add to payroll
Update employee file
Add new employee to pay
run
Plan for new starter arrival
Notify manager of acceptance
Receive transfers report
Monthly pay run
Receive first pay
Successful processes are designed around desired outcomes
Successful processes are designed around desired outcomes
Always define
• Entry and exit conditions
• Intermediate inputs/outputs
• Controls and methods
Always define
• Entry and exit conditions
• Intermediate inputs/outputs
• Controls and methods
Express interest in an assignment
Identify a sutiable candidate
© Fujitsu Services17 Transforming the HR Function – December 2007
Cost control is a common theme
• Cost savings are not as large as expected base on whole life costs
• Only 30% of companies moving to BPO achieve their cost savings targets
• SLAs can drag the service down to the lowest acceptable quality
• Service providers are not good at managing customer expectations
• Every last minute change increases the risk of failure, even if the service provider agrees to it
• Service providers may promise services that are beyond their current capability
• You will discover stuff done by HR that isn’t documented and therefore is not in scope
What damages the cost savings?
• Major ERP solutions can be restrictive leading to a desire to customize (£££)
• Poor data moved form old systems is replicated in new HR system
• Timescales to “go-live” are often underestimated by both parties
• Resistance to change is badly managed
© Fujitsu Services18 Transforming the HR Function – December 2007
But some clients report benefits
• Reduction in HR operating costs of between 20% - 40%• Access to improved management information, and performance metrics• Improvements in HR service quality and introduction of e-HR service
models• Increase productivity within the HR department, e.g. reduction in number
of HR staff per employee• Enable internal HR staff to become “business partners” and move away
from spending the majority of their time on low impact administrative, transactional tasks
• More predictable cost base for service delivery• Improved and consistent HR vendor management• Consolidation of HRO function into regional (and potentially global)
shared service centres• Increase in organisations’ employee satisfaction with employee services
© Fujitsu Services19 Transforming the HR Function – December 2007
Improved cut off
submission timescale
Improved cut off
submission timescale
Single Pt. of contact for
transactions created
Single Pt. of contact for
transactions created
Absence levels
reduced
Absence levels
reduced
Quality of HR Service increased
Quality of HR Service increased
Case management installed in
SSC
Case management installed in
SSC
KPI
Staff absence
decreased
KPI
Staff absence
decreased
KPI
Percentage of approved vacancies decreased
KPI
Percentage of approved vacancies decreased
‘No show’ rates at training courses
decreased
‘No show’ rates at training courses
decreased
Implement Self-serviceImplement Self-service
Implement Electronic Handbook
Implement Electronic Handbook
Implement service regime
Implement service regime
Implement SLAs
Implement SLAs
Implement retained
organisation structure
Implement retained
organisation structure
Implement standard service
processes
Implement standard service
processes
Speed of HR Service increased
Speed of HR Service increased
Talented and Effective
Workforce
Talented and Effective
Workforce
Benefits identified and measured across the end to end service
Time taken to fill
vacancies decreased
Time taken to fill
vacancies decreased
Transformed Business
Processes
Transformed Business
Processes
Consistency of request handling created
Consistency of request handling created
Telephony within Shared
Service Centre (SSC)
installed
Telephony within Shared
Service Centre (SSC)
installed
Programme Enablers
Strategicoutcomes
‘Capability’ Outcomes
‘Operational’ Outcomes
‘Strategic’ Outcomes
HR Service & People Management Outcomes
Consistency of applying HR policy increased
Consistency of applying HR policy increased
Ratio of HR staff to total
staff decreased
Ratio of HR staff to total
staff decreased
Real Customer
Focus
Real Customer
Focus
Consistently Top
Performer
Consistently Top
Performer
Programme-led Delivery
Programme-led Delivery
© Fujitsu Services20 Transforming the HR Function – December 2007
Service Level Agreements
• Measuring for measurement sake?• Decide those that are important to you – understand
what will make an impact• What level of service do you need?• What timescales do you apply to achievement?• Long lists of SLAs and KPIs make for a lot of monitoring
and reporting work – is it adding value?
© Fujitsu Services21 Transforming the HR Function – December 2007
The retained organisation – getting it right
A large part of my work has disappeared – what
do I do now?
What exactly is a strategic HR
business partner?
As an HR professional how do I use the new service?
Maybe I should just check their
work when it comes back?
© Fujitsu Services22 Transforming the HR Function – December 2007
The change challenge
• Quality applied to understanding the client’s needs, process mapping, re-design, implementation, deployment, steady-state service management and future evolution of services
• Acceptance related to people involvement, communication, listening, gaining commitment, overcoming resistance to change
Quality of the Technology
Effectiveness of the solution = ……..multiplied by……..
Acceptance of Change
© Fujitsu Services23 Transforming the HR Function – December 2007
What have we learnt?
ServiceCost is an important driver but it cannot only be about cost savings. If HRO is to be successful, service and quality must be up there as one of your top priorities.
People
While high quality recruitment, training, rewards and targets are very important, these have become hygiene elements – essential to good performance but not a guarantee to outstanding performance. The differentiator is the presence of the appropriate skills – leadership, people skills, customer focus and an ability to build strong relationships with the business.
LocationLocation is a major decision – not least because of its labour arbitrage potential but also the right location will provide the right people, language skills, cultural awareness. It also provides the setting for delivering change which HRO is all about.
TechnologyIt is not enough to focus on standardised ERP systems. Enabling technologies such as scanning, workflow, self service and mobile devices are raising the performance bar to deliver a radical change in service levels. HRO provide the ideal platform to implement such technologies.
BenefitsIdentify the outcomes you are seeking across the end to end service and monitor benefit delivery by both provider and your own organisation. Very often, suppliers can enable benefits – only owning organisations can realise them!
InvestHRO is an investment. Doing it well requires a mix of different skills both during the project and deployment phase. Getting it right upfront reduces your costs long term.
© Fujitsu Services24 Transforming the HR Function – December 2007
Recommended