EHRM To Support EITM Case Study Improving strategic capability of HR: Capacity building measures to

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EHRM To Support EITM-Case Study -Improving
strategic capability of HR Capacity building
measures to stimulate organizations
growthNASSCOM HR Summit 2007July 5-6, 2007
Sreekanth AK Vice President- International HR CA
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Agenda

• Need for HR Transformation
• Re-engineering HR delivery Capability
• Measuring the transformation and its Impact
• Aligning to the Business

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Transformation at a Glance
GUIDED BY THE CA CHARTER AND CORE VALUES

• Widely regarded as the IT management industry
  leader
• Growth through innovation, quality and
  acquisition
• Provider of solutions and expertise that
  simplifies and unifies IT
• Sustainable vision Transforming the way the
  world manages information technology
• Profitable and growing

• An IT original 30 years in the industry
• Growth through acquisition
• Provider of point solutions and products
• No clear, stated mission
• Profitablebut flat

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Marketplace Challenges Have HR Delivered ?
Key HR Initiatives
69
Improving worker productivity
6
Improving the adaptability of the business to
New Opportunities
68
11
66
Facilitating organizational change
12
Improving employee engagement with/advocacy for
the Company
65
11
64
Improving the delivery of HR services
14
0
10
20
30
40
50
60
70
80
Satisfaction with Progress
Importance
Source The Accenture High-Performance Workforce
Study
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However, HR must transform itself before it can
play an effective role in driving high
performance
Transformed HR has a solid vision, efficient
delivery, a dedicated delivery team with the
appropriate competencies, and the discipline to
execute.

• How do we make it happen?

Most HR organizations have ghettoized themselves
literally to the brink of obsolescence . . .

• What does effective HR look like?
• What does HR do to improve the performance of
  the workforce?
• How can we build an effective HR culture?
• Where do we start?

• Keith H. Hammonds. Why We Hate HR Fast
  Company, August, 2005.

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Typical Stages of the Journey

• Transformed HR
• Strategic solutions,
• High Performing Workforce
• Increased revenue per FTE
• Improved employee satisfaction
• Reduced voluntary turnover
• Increased retention of key talent
• Improved workforce performance

HR Transformation Spectrum Value Proposition

• Evolved HR
• Reorganized, proactive services
• Increased ability of HR to focus on strategic
  tasks
• Reduced cost per hire
• Reduced time to proficiency
• Increased customer satisfaction levels
• Lower HR influenced costs

Effectiveness Improvement

• Streamlined HR
• Reduced cost to serve
• Reduced HR operating costs per FTE Decreased
  manager time per HR transaction
• Decreased cycle time per HR transaction

Traditional HR Manual, back office function
Efficiency Improvements
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Value Proposition to Business
Sample Value Levers
CA HR Component
Future

• Increase revenue per FTE
• Improve employee satisfaction
• Reduce voluntary turnover
• Increase retention of key talent
• Increase customer satisfaction levels
• Reduce time to proficiency
• Improve workforce performance

HR Consultant / Business Partner
Effectiveness Developing, delivering and using
HR products and services that have a productive
impact on the workforce and the organization.
Center of Expertise

• Reduce HR operating costs per FTE
• Decrease manager time per HR transaction
• Decrease cycle time per HR Transaction
• Reduce cost per hire
• Decrease person- to-person inquiries

HR Center of Scale (COS -Outsourced )
Efficiency Reducing the resource demands
and time required to develop, deliver and use key
HR products, services and processes.
SAP Manager / Employee Self Service
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Comprehensive Change in HR Roles
Truly transforming HR requires a comprehensive
change in all HR roles and processes in addition
to improving the efficiency with which HR
employee services are delivered.
Transformed HR
Traditional HR
Business Partners
HR Generalists
Strategic Consultative Facilitative
Strategy
Performance Enhancement
HR Shared Services
Transactions Administration

• Shared Service Center
• Transactional activities
• Services delivery

Functional Experts, e.g., Staffing, Comp.
HR Centers of Expertise
Transactions Administration
Performance Enhancement
Strategy
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Making a science out of art
Effective HR organizations correctly identify
where they need to focus energy and resources and
measure achievements in order to positively
impact business results.
Business Partners
Level of Human Capital Mastery
Core
Advanced
Mastery
Strategic Activation Facilitation
Leadership Capability
Illustrative
Employee Engagement
Workforce Adaptability
Ability to Change
HR Center of Expertise
Design Architect Develop Evaluate
Human Capital Efficiency
Talent Management
Workforce Performance
The key is in understanding the levers that help
achieve excellence in these areas as well as
anticipating the people and technology walls
that will prevent mastery and making
cost-effective investment to address those
barriers.
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Value of Enhanced HR Roles
Enhanced HR Roles
Organizational Capabilities
Business Results
Leadership Capability

• HR Leadership
• Develops HR Strategy
• Build organizational culture

Employee Engagement
High Performance Organization

• HR Consultants
• (Account Managers)
• Aligns HR to business needs
• Ensures HR issues are resolved

Workforce Adaptability
Ability to Change
Shareholder Return
Increase in Shareholder Return
Workforce Performance

• Center of Expertise
• (Architects)
• Provides expert knowledge-based HR solutions
• Develops policy designs process

Nasdaq
Talent Management
Tech Index
Human Capital Efficiency
1990
1995
2000
2004
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Service Delivery Optimization
Quality

• Reengineered and Global
• Technology Enabled
• Integrated Fully aligned with business
• Delivery partnered with vendors

• Reengineered Role
• Redefined Competencies
• Competency Assessment Development

People
Process
Technology
Business Excellence
Speed
Cost

• Integrated, ERP as core platform
• Use of Self Service People Call Centre
• Analytical Engine for BI

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HR Operating Model

• Global
• Centers Of Excellence
• Total Rewards
• Organizational Develop.
• Recruiting
• Global Mobility

• Global Field HR
• Raising the bar on
• the retained HR organization
• Strategic HR Consulting
• HR Competency Model
• Global assessment
• Training

• Leveraging our investment
• Usability through ESS/MSS
• Consistent global service platform

• HRO
• True Globalization With
• Multiple Language Call Centers and Talent
  Management System
• Consistent Processes and Procedures Across
  Geographies
• Greater Economies of Scale

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Human Resources Competency Model An Overview of
Clusters
BUSINESS MASTERY
BUSINESS PARTNER
knows business and can be a business partner
prerequisite to join business team
PERSONAL ATTRIBUTES
lives CAs Values, and demonstrates personal
integrity, credibility, judgment and courage
a CA leader
HR MASTERY
CHANGE AGENT INTEGRATOR
CHANGE AGENT PROCESS MASTERY
fulfills the HR roles and is an expert in HR
technology and practice knows and is ableto
deliver HR best practices establishes
functional credibility
COE FUNCTIONAL EXPERTISE
applying the tools of Process Change Mgt
adding value
III-1
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CA HR Competencies Identified
HR Competency Interviews Held
Skill Gaps Identified
Potential COE Resources Determined
Appropriate Development Plans Created
Underpinned by CA Core Values Innovation
Excellence, Teamwork Integrity Performance
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Human Capital Bridge Framework

• Are the connections between the
  human-capital metrics and the ultimate success of
  the organization clear and compelling?
• When the organizations strategies change,
  do the measures identify where human capital
  strategies need to change?
• Does the measurement system support the
  development of human capital strategies tailored
  to the organizations unique competitive
  advantage?
• Will the measurement system drive
  distinctive human capital investments in the
  talent group that has the potential to create the
  greatest economic impact?
• Can the measurement system support decisions
  about HR programs before they are implemented
  (rather than after)?
• Can the measurement system reveal when HR
  programs should be discontinued?
• Does the measurement framework identify how
  talent creates value within the organization in a
  way that is understandable and motivating to all
  employees?

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HR Functional Score Card

Revenue per FTE, Employee Satisfaction, Retention
of Key Talents, Attrition Analysis, Labor
Productivity, Time to Proficiency,
HR Operating Cost, HR Transaction Cycle Time,
HR/FTE ratio, Separation cost,

• Recruitment

Total Rewards
Employee Development
HR Consulting

• Time to Proficiency
• Talent Up-gradation
• Cross Skill Ratio
• Promotion / Progression Ratio

• Quality of Hire
• Talent Mix Hiring
• Diversity Hiring
• New Hire Attrition

• Employee Satisfaction
• Retention/ Attrition
• Labor Productivity

• Total Cost (to market)
• TR cost to revenue
• ROI on TR programs

• Cycle Time
• Cost
• Position Filled
• Source Mix
• New Hire Satisfaction
• Hit Ratio

• Employee Touch Points
• PIP Action identified Vs
• Completed.

• Hours trained
• (Employee/Course)
• Training Cost
• Training Satisfaction
• PMS completion
• Skill Gap ratio
• Succession ratio

• Total Rewards (cost by
• components)
• Benefit cost to payroll
• Budget Variance
• Reward / Employee
• Year to Year ratio (Merit/ Variable)

Centre Of Scale Statistics
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HR Metrics Maturity Journey- Talent
Acquisition

• Quality of hire
• New Hire Talent Retention

Effectiveness Improvement(Strategic HR Workforce)

• Talent Mix
• Diversity Hiring

• Cycle time of hiring
• New Hire satisfaction

• Cost of Hire
• Hit Ratio

• position filled
• Source Mix

Efficiency Improvements (Technology-enabled
Service Delivery)
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HR Metrics Maturity Journey- Talent
Development

• Transfer of learning
• Time/ cost to proficiency

Effectiveness Improvement(Strategic HR Workforce)

• ROI on Training
• ROI on CM/ SM programs

• IDP ratio
• IDP execution Vs Completion
• Training satisfaction
• Ratio

• Skill Inventory
• PMS rating
• Promotion ratio
• Succession plans

• Training Programs
• Hrs. Trained

Efficiency Improvements (Technology-enabled
Service Delivery)
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HR Metrics Maturity Journey- Talent
Retention

• Churn Management ratio
• Impact analysis

Effectiveness Improvement(Strategic HR Workforce)

• Cost of TO
• ROI on RP

• AA by Demography

• Attrition Analysis
• AA by Mgr.

• Attrition rate
• AR by category

Efficiency Improvements (Technology-enabled
Service Delivery)
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Analytical Tool Box
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HR Analytical Templates
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To Build Strategic ValueHR Must Balance both
Supply and Demand
Demand-Focus
Supply-Focus
Improve Service
Align to Business
Manage Cost
Manage Risk
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Aligning the Goals and Needs
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Managing Cost
Replace
Retain
Turnover Rate (Search Costs, Training Costs,
Productivity Loss, Vacancy etc.,)
y
X
Optimal Turnover Point
At high turnover rates, relatively low investment
in retention (y) can dramatically lower turnover
(x)
Costs ()
At Low levels of turnover, it takes a lot of
money (y) to shift turnover (x) even slightly
X
y
Retention Costs (Salary, Benefits, Training,
Bonus etc.)
Turnover Rate
Low
High
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HRs FY08 Vision
DifferentiatedCulture
EE Value Propositon
Attraction Retention

• Managing
• Service
• Risk
• Cost
• Goals

Aligned Processes
Employee Engagement (1) Driving growth through
managed attraction and retention strategies (2)
Driving sustainable business through high
Employee Engagement (3) Achieving business goals
through increased employee productivity
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Thank You

• The more you know (Metrics), the more luck you
  will have.  
• Chinese proverb