oracle seminar-improving your hr service delivery · their hrms investment within three years with...

© Copyright IBM Corporation 2008

IBM Global Business Services

Improving Your HR Service Delivery and HR Effectiveness

April 16, 2009

Heejung Yoon ([email protected])Senior Managing Consultant, IBM GBS Human Capital Management

HR Transformation | Confidential | 14-Apr-09 |2

Business Consulting Services


Unprecedented economic uncertainty requires an greater focus on specific talent management activities

Human capital management in an economic downturn: Seven key areas

Make resourcing decisions based on the organization’s capabilities and gapsFocus attention on core vs. non-core work activitiesDifferentiate high (and low) performers across the organization Transfer critical knowledge and stimulate social network developmentConsider the use of more flexible work environmentsIdentify opportunities to improve HR and learning efficiency Enable leadership to guide individuals through the change




Market research shows a strong link between business performance and investment in Human Capital practices…

Source : Watson Wyatt Research, June 2002




What does the research say ?“Organisations that have implemented HRMS appear to be reaping the promised benefits. More than two-thirds of participants reported payback on their HRMS investment within three years with one-third indicating a three-year payback period.”

(IBM Global Human Capital Survey Jan 2003)

“Organisations investing in B2E applications and administrative processes can realistically expect average reductions in the process costs of 50 percent and a payback period of 3 years.”

(cedar 2002 HR Self Service Survey)

“On an overall basis Giga believes that HR departments can reduce time spent on administrative work by 40% to 50%.”

(2001 GIGA Information group)




The business priorities shape the Human Capital agenda

HR Transformation is about creating the 21st century strategically-minded and enabled HR organisation

The decision to build or buy skills becomes centralRetaining key people when facing a shortage of supply is critical Organizations must measure and reward executives and the HR function by how they deliver on the critical talent agenda Developing skills to support growth, innovation, differentiation and customer satisfaction becomes a top priorityCollaboration across the company, channels, and customers is needed to transform workA variable and efficient cost model for the HR function with high service levels is requiredOrganizations require many delivery channels to ensure employee and manager access CHROs must be able to demonstrate the link between Human Capital activities and business results

CHROs are challenged to ensure the right

balance between strategic effectiveness of HR

and operational efficiency of the function

Source: More than 300 organizations and 100 CHROsIBM Global Human Capital Study, 2005

As people challenges including cultural

development, leadership and collaboration become a critical part of achieving

innovation, the Human Capital agenda must evolve




People & Process Costs: A Significant Opportunity

1% HR Admin

8% Benefits

4% Staffing

30% Compensation

57% Other Operating Expense

43% People costsSource: Saratoga Institute, Talent Market Group



What is HR doing to respond to the challenge?




Enabling Technologies

The HR Function

Role of HR Procedural

Duplicated Administration

Integrated HRMS with Self-Service

Shared service

Strategic HR Partner

HR Leadership

The On Demand Workplace

HR On Demand

Payroll System and Personnel

Database

TODAY

TODAY

TOMORROW

HR needs to TRANSFORM to reduce cost structures and be in a position to provide leadership




Time

ERP Implementations

Shared ServicesAcross

business units countries

Single outsourcing partner accountable for total HR services

Valu

e

Consolidation of ERP platforms

Achievable Organically

Achievable through internal Shared ServicesAutomation

Achievable through Business

TransformationOutsourcing

Tomorrow’s HR Delivery

Model

Tomorrow’s HR Delivery

ModelFull use of self service tools

Global Vision

HR Transformation describes the road of change for an HR organisation

Opportunities Global sourcingEconomies of scaleVariable cost structureLeverage technologyExpand self-service mindsetEnhance data accessibilityDeploy best practices

I/T systems providing data analytics

Common Processes

Introduction of self service tools

Outsourcing selected HR Processes

Process Improvement

Streamlining

Transformational Outsourcing

The choice for a client is not whether to insource or outsource, it is how far to travel down the HR Transformation Continuum

Step 3

Step 2

Step 1




What does HR Transformation mean in terms of change?

Leading to create workforce effectiveness

LEADING

Future State

Operational Excellence

Affecting Change

Optimizing HumanCapital

Partnering to meet evolving business needs

PARTNERING

Transition State

Role Transformation

Process Redesign

Integrated Systems

Selective Outsourcing

Supporting the basic needs of the business

SUPPORTING

~10%

~30%

~60%

Current State

Strategic Planning

Employee Service

Administrative




Simplified and globally harmonized• HR policies

(‘what to do’)• HR processes

(‘how to do’)

Global IT platform New HR operating model

Transformed Human Resources

Inpu

tIm

prov

emen

t driv

er

Challenges/ objectives

Best practice models

Customer requirements

Components of Transformed HR Organisation




Improving effectiveness and efficiency with the major HR building blocks

Strategy

Administration

Performance Enhancement

Transactions

Developing, delivering and using HR products and services that have a productive impact on the workforce and the organization.

Effectiveness

Reducing the resource demands and time required to develop, deliver and use key HR products, services and processes.

Efficiency

Business Partners

Centers of Expertise

Shared Service Center




Think Co

Touch Co Serve Co

Corporate/Global HR

Enterprise HR strategy Change leadershipInnovationBusiness intelligenceGovernance

Business Advisors(Divisional HR)

Divisional customer-focusedDivisional HR strategiesTailored HR solutionsLine managers areprimary customer

HR Customer Shared Service Centre and Self Service

Tiered Service DeliveryTechnology enabledAligned and integrated internal consultants / outsourced vend or managed servicesLow cost / high value products and services

Emerging/evolving roles of HR




Measuring the value of HR to the business

Most HR organisations are challenged to define and measure how HR adds value to the business. HR’s value proposition is derived by answering three fundamental questions….

What is the Value Proposition of HR?

Are we helping to deliver corporate

strategy?

Are we helping to deliver corporate

strategy?

Are we contributing to the company’s financial

goals?

Are we contributing to the company’s financial

goals?

Are our present services

satisfying our customers?

Are our present services

satisfying our customers?

Are we developing future services that

better meet customers’needs in a timely

manner?

Are we developing future services that

better meet customers’needs in a timely

manner?

Performance Drivers

Performance Measures



Are we meeting our strategic needs?

Are we meeting our strategic needs?

Are we optimizing our service delivery

processes?

Are we optimizing our service delivery

processes?

Are we meeting our customers’ needs?

Are we meeting our customers’ needs?

Do we have adequate service

levels?

Do we have adequate service

levels?

Customer Service Index




HR Service Delivery – is it focused on operational efficiency?

Decreasing costs

Meeting key HR

customer needs

Increasing the efficiency of HR service delivery

Data qualityand

consistency

Meeting employee and manager

demands for accessand control

Integrationwith external

providersCapturing

realizable data and metrics to enable

analytics

Maximizing lowest cost

deliverychannel

Managing HR policy and procedural knowledge

Easy, one stop help

Collaboration tools

Linkagebetween HR applications

Increasing productivityof employees

Increasing the Value of HR




HR needs to transform itself …the total picture

Tactical non-standard HR processes

Standard end-to-end processes

implemented

Standard end-to-end HR

processes

Policy Program Design

Delivery Administration

Technology

Data

Multiple access

channels, unleveragedtechnology

Self-service and technology support

implemented

Self-service, leveraged technology

Change management and communication

executed

Undefined governance and buy-in

?? ? ? Revised partnership

between HR and businesses, and

within HR

Cost Cost/Employee

ValueIncreasedcustomer satisfaction

High costs, low value

Cost/Employee

Low perceived value in strategic priority areas

Competitive costs,

strategic value

Cost/Employee

Strategic value add

Costly duplicate

HR structure

HR service delivery model

deployed

10% StrategicPlanning

30% Customer Service/

Consulting

Administration60%

20% StrategicPlanning

60% Customer Service/

Consulting

Administration

20%

Lean, strategic HR organization

Where we are now Where we are goingHow we get there




To obtain business results, HR is changing the shape of its service provision through HR TransformationMost organisations want to move their non-core HR activity to a highly efficient, lower cost delivery modelHR activity is concerned mainly with Employee Lifecycle events and Query-Handling – most of which

HR Subject Matter Experts

15%

55%

HR Strategy and Policy

30%

HR Administration

50- 60%

40 - 50%

Automation & Self Service

BPO Outsource

Customer HR Organization

Future StateCurrent State

20%

30%

25%

Customer HR Organization

20-40% Cost

Savings

15%

10%

involves interaction with employees or managers at some stage of the process

Shared Services and/or BPO Provider

Technology Enabling Change




..and Major Organisations are implementing a Tiered HR Service Delivery Model

SelfService

SpecialistsGeneralists

Case Mgmt ToolService Center

CustomersTier 0

Tier 1 Tier 2

Tier 3

DW

web

AssistedService

phonephone

e-maile-mail

Business PartnersProcess Owners

Tier 3

Workstations/kiosks

In-Country HR

Local compliance,Planning

Other employee data(legacy apps)

IntranetKnowledge

managementHRIS




A 4-tier Model will help by leveraging technology and best in class processes

Business Partner & Center of Expertise

Subject Matter Experts

Employee Interaction Center

Tier 1 Tier 2 Tier 3

Generalist:Provides employee support, processes transactions, handles FAQs and conducts basic research

SME: Provides complex solutions and transactions, administers policy, conducts in-depth research, resolves issues

CoE:Development of policy and strategy, policy interpretation

BP:Operationalizes HR strategy to business-specific needsA

ll Em

ploy

ee A

cces

s

Tier 0

Employee and Mana-ger Self-Service

Via InteractiveVoice Response

Knowledge Base andother ESS/MSS Solutions Accessed via Web/Wireless Devices

80 – 90% of Contacts 10 – 20% of ContactsHR




How efficient is HR Service Delivery today?“HR professionals’ time is predominately devoted to administrative activities”

* HR on the Web Investigation Report - June 1999

Program/Policy Design

Professional Service Delivery

Administration

How is time spent by the average HR Professional ?5%-10%

35%-40%

30%-60% *

HR professionals’ time is predominately devoted to administrativeactivities because:

HR Processes are not integrated, they are also highly localized, and customized Web/Self Service is not used as efficiently as it might beAccess to HR services is possible through multiple /concurrent channelsHR will customise upon request (e.g. incentive compensation) -this results in “platinum costs”HR is too focused on ‘Exceptions Management’ (e.g. incentive compensation) and the minimization of complaints / conflicts




Administrative activities absorb the largest part of an HR department’s time38%+ of an average HR department’s working hours are spent on Administration, Payroll and HRIS maintenance and support.

Source: PwC EMEA HR Benchmarking 2000

3

1

2

2

3

3

3

3

3

3

4

4

5

7

9

10

17

18

0 5 10 15 20

Other

Expatriate management.

Redundancy

Job design

HR planning

Organisat ional development

Industrial relat ions

Performance assessment

M anagement development

HR information systems

HR policy

Health and welfare

Compensat ion and benef its

M anagement

Recruitment and select ion

Training and educat ion

HR administrat ion

Payroll




IBM has transformed its HR Function to respond to the business needs

Business Issues: • Reduce overall spend associated with HR service delivery• Improve service levels for IBM employees• Implement and e-HR solution

Scope of work:• Creation of Employee Portal• Linking following tools to Portal

• Employee Self Service Transactions• Management Self Service• Form morphing to put forms into native language• Base Pay Planner• Personal Business Commitments – Performance and

Evaluation tool• Training Administration• Training Delivery• Time and Attendance • Enterprise Directory

• HR Transformation to re-engineer process and procedures to leverage technology investment.

Achievements:• ROI: -- e-learning - over $350 million in 2001

– Customer self-service - over $700M– On-line Health Enrollment - over $1M in 2000– Blue Pages - estimated $10M– Consolidating News Sources - $2M– HR Process Reengineering - reduced costs by 40%

and increase satisfaction to over 90% • Transformational:

– A key tool to facilitating the integration of IBM from the dis-integration strategy of the early 90’s

– W3 is the most useful and trusted source of information for IBM professionals to get their work done

– HR re-design a “Key Reason” IBM leads in e-revolution.

IBM Prize: • Saving of over $1 billion across the enterprise.• Highly efficient platform on which new functionality can be

built• Trusted source of news and information for employees

Performance ImprovementVariable-ized

costsReduce

headcountAttract & Retain

Talented Staff

Time

Cos

t

Consolidated 6 HR / Payrolls to 1Instituted Electronic Pay Statement

Self Service for HR / Payroll ChangesHR Electronic Jacket Imaging Web HR Information

Delivery Centralized Worldwide HR Reporting Strategic Outsource of

Selected Services

Early 90’s 2002

HR Delivery Cost

HR Staff To Employee Ratio

HR Cost Per Transaction

IBM’s Journey




$20 million in direct cost savings through self-service HR54,000 employees live in less than nine months

200% ROI expected on collaborative apps and HCM suiteSelf-service alone generating $10M direct cost savings

$128 million direct cost savings from HR self-service300 FTE staff reductions

65% reduction in HRIT costs by implementing single instanceRemoved 127 servers and 14,000 terminals

Real Operating Results – Using PeopleSoft HCM

North America



Why choose IBM for PeopleSoft implementations?




IBM & PeopleSoft – Partners in Excellence

The PeopleSoft Award of Excellence recognizes alliance partners with:

• Best customer satisfaction ratings

• Highest worldwide performance in the areas of sales and services teaming

• Most dedicated resources

• Largest revenue growth

In addition, IBM has received numerous regional Business Partner awards from PeopleSoft over the last several years.




TransitionBuildDesignDefine

BenefitsRealization

DefineCheckpoint

Test Planning

Organization Design

RICE Design

DesignCheckpoint

Project Management

RICE Build Prototype Build

Application Testing

End User TrainingDevelopment

Transition Planning

Integration Testing

BuildCheckpoint

TransitionCheckpoint

Mobilize Business

AcceptanceTesting

Rollout

PostImplementation

Support

ACTIVITY DOMAIN KEY

OrganizationalReadiness

End User Training &Documentation

Organization Alignment

ARCHITECTURE DOMAIN WORK STREAM

End User Training

Solution Definition

Initial Scope andRequirements

Planning & Initiation

Mobilize Design Review Board

Business Modeling &Application Design

Organization DomainOperations DomainEngagement DomainBusiness DomainArchitecture DomainApplication Domain

Vision-To-Value PeopleSoft Implementation Method




IBM ADT: Accelerated Deployment Toolkit for PeopleSoftImplementation Managers Toolkit

Country and IT AssessmentsKick Off PresentationFit Gap PresentationGlobal ProcessesGlobal ReportsScope DocumentProject Plan

Configuration WorkbookData Mapping TemplatesConversion ScriptsTraining MaterialsSecurity WorkbookGo-liveHand Over Pack




Tools are an integral part of PeopleSoft Global Delivery

PeopleSoft Vision-To-Value Methodology

Tracking / Management Tool

Measured Results

Global Quality Management System (QMS)

Schedule AdherenceDefect reductionOn-budget deliveryService Level Compliance

Ef fort Variance

-12-10

-8-6-4-202468

101214

1 3 5 7 9 11 13 15 17

DER's

Effo

rt V

aria

nce

Project A

UCL

LCL

Mean

Community Knowledge Management ToolRPM / Knowledge View




Plan

Assign

Record

Report

Extract

Generate Metrics

Tools are an integral part of PeopleSoft Global Delivery –Rational Portfolio Manager usage for Oracle ISV




IBM & PeopleSoft – Partners for SuccessIBM GBS has been involved with over 1000 successful engagement across PeopleSoft’s entire suite of applications, in over 50 countries around the world.

IBM GBS has been involved with more than 480 v8.x projects globally to date, serving over 250 different clients.

Financial Services

CommunicationsIndustrial Public SectorDistribution




KOREA delivery PeopleSoft HRMS projects

현대캐피탈 -ImplementationPeopleSoft HRMS

동양그룹 -ImplementationPeopleSoft HRMS

IBM GBS, First & Only Winner of PeopleSoft Solution

in Korea!!




IBM & PeopleSoft – The Comprehensive ChoiceTechnology:• Joint solution development• Numerous PeopleSoft/IBM

technology projects• IBM components built right

into PeopleTools - OSL, DB2e, WAS

Consulting:• 2,000 PeopleSoft consultants• Deep Product Expertise• Industry and Process focus• Global Hosting Partner

Joint Initiatives:• iAnalytics / EPM• B2E / Portal• CRM Accel• Financial Services• Utilities• Higher Ed - Student Admin• Automotive• Dynamic Workplaces• Life Sciences• SPDE• Customer Centricity

Global Financing• Largest IT Financier• Asset base of over $30 billion• 125,000 customers• 40 countries• Match cash flow to business

benefits

Platforms:

• iSeries• xSeries• pSeries• zSeries• Storage

Customer Support:• Joint competency centers• Seamless problem handling

E-Business Hosting• Variable Pricing Structure-Align

with Business Volume• Limited Upfront Investment• Risk Mitigation• Leverage IBM Expertise




Questions?

Contacts:

• 신원무, Global Partner – [email protected]• 윤희정, 수석Consultant – [email protected]

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