hr transformation through shared services

Copyright © 2010 Hitachi Data Systems. All rights reserved.

HR Transformation through Shared Services

“Unleashing the Human Potential”

March 2011

Imtiaz ShaikhVP, Americas HR Corp. Functions and Operations

Confidential – Do not Distribute without written consent from HDS

2© 2011 Hitachi Data SystemsConfidential

� Founded in 1910

� 900 subsidiaries

� 360,000 employees

� Over 760 PhDs

world’s largestintegrated electronics companies

No. 47 on the 2010 FORTUNE Global 500®

One of the

Hitachi, Ltd. (NYSE:HIT/TSE:6501)

� Total FY09 sales of $96B

� FY09 R&D Investment: $4.0B

– Approx. 20% in IST

� Approx. $6.2B in cash


Hitachi Data Systems at a Glance

Excellence in Customer ServiceAwarded to Hitachi Data

Systems by:Wholly owned subsidiary of Wholly owned subsidiary of Hitachi, Ltd. (NYSE:HIT)Hitachi, Ltd. (NYSE:HIT)

The focal point for Hitachi, Ltd. for storage The focal point for Hitachi, Ltd. for storage

infrastructure solutions, storage management infrastructure solutions, storage management

software, and storage consulting servicessoftware, and storage consulting services

�� Formed in 1989Formed in 1989

�� Direct and indirect sales in over Direct and indirect sales in over

100 countries & regions100 countries & regions

�� 4,300 employees and expanding4,300 employees and expanding

DATA DRIVES OUR WORLDAND INFORMATION IS THE NEW CURRENCY


Journey to unleash the human potential

- Where to start?….

HR Transformation through Shared Services

5

Realizing HR Transformation

� Historical Challenges

� Need for a Strategic Shift

� Create Vision

� Plan a Roadmap

� Execute-Execute-Execute

� HR Vision Realized!

6

� Historical Challenges

–HR value not visible

–HR Data everywhere– no accuracy

–No Control on Labor Cost

–No Strategy or Vision

–HR Credibility as good as HR Value

Realizing the HR Transformation

7

HRIS – Challenges

Disjointed processes and systems inhibits data

inaccuracy, delays in updates and reporting

Key compensation data process outside of Oracle HRLack of controls

Manual specific resource dependent process

Lack of global organization visibility

Duplicate maintenanceInconsistent data definitionsManual resource intensive process

Dependencies on regional HR

Delays/Inaccurate data submissionsDependency on F&A in EMEA multiple submission

Multiple source of recordkeeping,

Hard to find and locate records Not user-friendly

Out-of-date Employee Directory

Delays in LMS access for New Hires

No visibility to ongoing issues

Redundancy in responses

Lack of drill down HC

analysis capability

Missing key capabilities in all areas

No integration btw systems and processes

Inefficiencies in Req

Approval & Offer Process

Multiple manual activities

Resource intensive

Out-of-date, scattered,

inconsistent and hard to

search information on Intranet


HR Transactions – Process in Rear View

Manual Data MaintenanceHR or “Shadow HR”

Job Changes

Transfers

Termination

LOA

Rewards

Oracle EE SS(US & EMEA)

Oracle Mgr SSView Only

(US & EMEA)

HR Requests(APAC)

Emails

EAR Forms

Phone Calls

Oracle HR (ROW)

Oracle HR (EMEA)

CHRIS(Australia)

HR Requests(APAC)

Excel Spreadsheets(LA, Asia)

Manual Letters(communication)

Payroll, Benefits,Vendors,

HDS Systems

Manual Comp(Merit, ELTI &

STI)

HR credibility is at its lowest point

9

� Need for a Strategic Shift

– “Transaction Processor” to “Business Growth Enabler”

– Tactical to Strategic

– Reactive to Pro-active

– Align to business strategy

– Meet business needs

– Define HR value

– Align Skills

Realizing the HR Vision


Know Your Starting PointTransactional versus Strategic

Develop, monitor and deliver programs that

enhance the company’s overall performance and

HR’s effectiveness/contributions to the company

as a whole

47%

39%

10%

4%% Time and Effort

86% of total HR activity is focused on HR transactions and handling queries.

The proportion of time spent on HR strategy and programs is low -

Much more time is spent on transactional activities.

Processing Transactions

Programs

Strategy

Advice/Employee Relations

Process employee

transactions more

efficiently

Align HR activities and programs with the company’s

strategic direction

20%

20%

20%

Strategy

Processing

Txns

Programs40%

Advice/Employee

Relations

% Time, Effort, Cost

40%

Processing

Transactions

Programs

Strategy

30%

25%

5%

% Time, Effort, Cost

Handle inquiries on policy and

provide advice more effectively

and efficiently

The trend is for organizations to cut volume of transactions and advice needed through self-service (IT enabled) or to reduce costs of transactions and advice via new organization models / outsourcing. This allows the HR organization to

better focus on activities that are of added value to the Business.

Advice/Employee

Relations

Snapshot from 2006

HR ActivityBreakdown

Increasing HR Organizational Value

Source: Study conducted by Hay / McBer.

11

�Create a Vision

–Vision that inspires HR and its Clients

–Holistic

–Aligned with Business Vision

–Highlights Value and Business Alignment


12

HRIS Vision- Enabling Best in Class HR Capabilities


Compensation Vision: “Pay for Performance”

Compensation Platforms

Global – LocalGlobal Design, Local Implementation

Performance Management

Job StructureBase Pay Practices

Variable PayPrograms

Technology Platform

Technology investment is necessary to create a solution that is “build to last”

Pay For

Perform

ance

Culture

14

Values

Talent Management Vision & Framework

Stra

teg

y

Leadersh

ip C

riteria

& A

ttribute

s

Workfo

rceP

lannin

g

Onboard

ing

Tale

nt

Acq

uisitio

n

Deve

lopm

ent

Pla

nnin

g

Metrics &

Measu

rem

ent

Solu

tions

Bu

sin

ess

Imp

ac

t

Employee Development


Leadership Development

Succession Planning

Diversity and Inclusion

Communications, Branding and Social Media

Systems Strategy

Deve

lopm

ent

15

�Plan a Roadmap

– Prioritize

– Align

– Publish


16CONFIDENTIAL © 2009 Hitachi Data Systems

Global HR 3-5 Year Strategy & Roadmap

CREDIBILITY COLLABORATION CONTRIBUTION

Stabilize/Execute

•Global HR Database•Process Design•Knowledge Portal/Case Management System•Employee Survey•Manager/EE Self Reliance Portal

•HR Dashboard•Data Reporting•Data Analysis•Governance

•Cross functional integration•SOX Compliance/Internal controls•Productivity Increase•Scalability to support growth

HR Fundamentals

DeliverValue

•Performance Management System

•Pay for Performance Culture


Trusted PartnerBest in class HREnable

Growth

•NMAP•360 Feedback•E-learning•Leadership Development (3E)•Talent Reviews•Company Values/Culture

Organization Development•Skills Inventory•Career Development•Competency Framework•Succession Planning

DriveChange

•HC Analysis and Control•Dashboard•Diversity•Forecast Human Capital

Workforce Planning•Requisition Approval System

•Recruiting Solutions•Onboarding Platform

StrategicAlignment

•Variable Pay Platform•Pay for Performance Systems•SOX Compliance/Internal controls•Labor Cost Control•Attract and Retain Talent

Compensation & Benefits Platform• Compensation System• Standard Job Families, Job Matrix, Salary Bands, Salary Levels

• Career Path• Competitive Market Analysis

• SOX Compliance/Internal control• Increased Performance

Competitive Advantage through Strategic Human Capital Management

•Rewards & Recognition•Benefits Benchmarking

17

� Execute-Execute-Execute

– Project Management Rigor- Prepare for Change

– Creative use of Technology

– Remove Roadblocks-- Always move forward

• 80/20 rule

Realizing the HR Vision - “Unleashing the Human Potential”


Foundation is critical


Foundation Global HR database enabling manager/employee self reliance

Global HR database enabling manager/employee self reliance

�Global HR Database�Process Design�Knowledge Portal/Case Management System�Employee Survey�Manager/EE Self Reliance Portal

�HR Dashboard�Data Reporting�Data Analysis�Governance

�Cross functional integration�SOX Compliance/Internal controls�Productivity Increase�Scalability to support growth

HR Fundamentals

Stabilize/Execute


Foundation

Paperless forms with approval

workflow- Improved efficiencies and

controls

Paperless forms with approval

workflow- Improved efficiencies and

controls

Data Operations Dashboard to

support data entry and improve data

accuracy

Data Operations Dashboard to

support data entry and improve data

accuracy




HR Fundamentals

Stabilize/Execute


FoundationSingle Portal for Managers to

Manage Employees

Single Portal for Managers to

Manage EmployeesOnline case management system

with built in workflow to manage

case volume globally.

Online case management system

with built in workflow to manage

case volume globally.




HR Fundamentals

Stabilize/Execute

Global HR portal with online case

management system allowing HR to

spend more quality time with

business

Global HR portal with online case

management system allowing HR to

spend more quality time with

business


Foundation

HR Analysis driving business resultsHR Analysis driving business results

Stabilize/Execute

-Data Accuracy-Data Reporting-Develop HR Capabilities-Global Database

-Data Analysis-Data driven decision-Center of Excellence-Governance

-Cross functional integration-Fool proof controls-Self service transactions-Scalability to supporting growth

HR Fundamentals


A Roadmap to “Pay for Performance”

StrategicAlignment

�Variable Pay Platform�Pay for Performance Factors�SOX Compliance/Internal controls�Labor Cost Control�Attract and Retain Talent

Compensation & Benefits Platform�Compensation System�Standard Job Families, Job Matrix, Salary Bands, Salary Levels

�Career Path�Competitive Market Analysis

Job Structure

• Job content definition

• Definition and assignment of Functional Area, Job Family, and specific job type

• Job codes

• Level definition and career progression

• Policies, guidelines, and processes

Base Pay Practices

• Sales and non-Sales pay ranges known competitive to market

• Country specific pay ranges established



• GIP & ELTI bonus plans aligned to market and HDS internal objectives

• integrated with job structure, base pay, and PPR

• Individual Performance Factor (IPF)


Variable Pay Plans

• Fully integrated system: Base pay, variable pay, and job structure


Compensation Platforms

OracleTechnology investment is necessary to create a solution that is “build to last”

�Rewards & Recognition�Benefits Benchmarking


Compensation/Benefit Platform Recognition direct tool to improve recognition by

allowing employee/manager nominations

Recognition direct tool to improve recognition by

allowing employee/manager nominations

StrategicAlignment

�Variable Pay Platform�Pay for Performance Factors�SOX Compliance/Internal controls�Labor Cost Control�Attract and Retain Talent






�Performance Management System�Pay for Performance Culture


� Visibility to performance� Increased Performance

DeliverValue

Performance Management System tied to Pay for Performance

Performance Management System tied to Pay for

Performance

26

�HR vision Realized

– Scalable Infrastructure

• Single Source of HR data

– Compensation Structures

– Talent Management

• Integrated Applicant Tracking

• Performance Management

• Talent Reviews

• Succession Plans

– Workforce Analytics

Realizing the HR Vision - “Unleashing the Human Potential”


Shared Services Transactions - Self Reliance Portal

Job Changes

Transfers

Termination

LOA

Rewards

Mgr/EE

Self

Reli

an

ce

Glo

bal H

R D

ata

base

Payroll, Benefits,Vendors,

HDS Systems(e.g, Academy)

CompensationManagement Tools

Productivity Governance Global Processes

Web Letters

Administrative Excellence

Performance Excellence

Service Delivery Excellence

28CONFIDENTIAL © 2009 Hitachi Data Systems

Global HR 3-5 Year Strategy & Roadmap

CREDIBILITY COLLABORATION CONTRIBUTION

Stabilize/Execute




HR Fundamentals

DeliverValue

�Performance Management System�Pay for Performance Culture


Trusted PartnerBest in class HREnable

Growth

�NMAP�360 Feedback�E-learning�Leadership Development (3E)�Talent Reviews�Company Values/Culture

Organization Development•Skills Inventory•Career Development•Competency Framework�Succession Planning

DriveChange

�HC Analysis and Control•Dashboard•Diversity•Forecast Human Capital

Workforce Planning�Requisition Approval System�Recruiting Solutions�Onboarding Platform

StrategicAlignment

�Variable Pay Platform�Pay for Performance Systems�SOX Compliance/Internal controls�Labor Cost Control�Attract and Retain Talent



� SOX Compliance/Internal control� Increased Performance

Competitive Advantage through Strategic Human Capital Management


29

�As administrative HR functions are centralized and employees and managers take advantage of self-service, HR is expected to spend more time on strategic activities.

� Contribute to the development of the organization’s

strategy

� Develop an HR Strategy with activities and programs

that improve workforce performance and support the

organization’s business objectives

� Develop standard, consistent global HR processes

� Establish strategic HR measures

� Develop HR governance and organization design to

deliver on the HR Strategy

� Execute the HR Strategy (e.g., Leadership

Development, Competency Design/Performance Mgt)

� Manage technology-enabled HR service delivery

(e.g., HR Service Centers, HRMS)

� Vendor management

� Reduce HR operating costs per

FTE and technology maintenance

costs

� Decrease cycle time per HR

Transaction

� Reduce cost per hire

� Increase revenue per FTE

� Increase revenue per

compensation/benefit cost

� Improve employee satisfaction

� Reduce voluntary turnover

� Increase retention of key talent

� Increase customer satisfaction

levels

� Reduce time to proficiency

� Improve workforce performance

�Sample HR Activities �Sample Value Levers

� Efficiency

�Effectiveness

HR becomes more effective and enables business value


Thank you

Imtiaz Shaikh

Hitachi Data Systems

[email protected]

hr transformation through shared services

Business

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