HR Technology Needs Assessment

(1)

watsonwyatt.com

HR Technology Needs Assessment

Michael Cornetto

Rufino Lomba

(2)

Session Agenda

Drivers for Acquiring HR Solutions

Improving the HR value proposition

Levers of change

What corporate HR buyers want

HR Solutions Marketplace

Technology landscape

Choices in acquiring HR solutions

Marketplace overview

The talent management niche

Selecting HR Technology Solutions

Strategic alignment

Selection methodology

Selection lessons learned

Planning deployment

Outlining your HR technology strategy

Q&A

(3)

(4)

Improving the HR Value Proposition

Value Creation

Ali h it l D li ith b i l

Drive

• Align human capital Delivery with business goals • Deliver and develop world class talent

• Align organizational and Individual goals Reward success

Long term impact. Focus is on human capital excellence

HR

Efficiency and

• Reward success • Plan the workforce

Cost Containment

Effectiveness

Cost Containment

• Reduce cost and level of effort to acquire staff • Reduce workforce administration costs

Eliminate redundant spending

Immediate impact. Focus is on operating efficiency

• Eliminate redundant spending • Increase HR delivery scale • Automate activity

(5)

Levers of Change

Redefining the roles and

responsibilities of HR employees

ORGANIZATION DESIGN TECHNOLOGY PROCESS REDESIGN

Designing an electronic

communication network of fully

Redesigning the work to support the strategy and underlying responsibilities of HR, employees

and managers to support the HR service delivery strategy

communication network of fully-integrated HR related data, information, tools and

transactions available to HR, employees and managers

the strategy and underlying business model Shared services Call centers Centralization / decentralization HRMS -Integration Advanced applications Employee/manager self-service Streamlining HR processes Performance measures Comparison to benchmarks Workforce reallocation _{HR portals}

OUTCOMES

- Increased service - Strategic focus

- Decreased costs - Alignment with business objectives - Efficient administrationEfficient administration - Increased shareholder valueIncreased shareholder value

(6)

Our Research Shows: Wide Use of Internet to

Deliver and Support HR Services

Leading companies continue to use technology to improve employee access to

information and capability. Trends suggest the HR departments have renewed

interest in delivering HR services, supporting change, customer service.

I i HR i d li Easier/faster inform ation access Enabling or im proving em ployee com m unications

From Intranet, Internet and Websites to:

Im proving em ployee/w orkplace productivity Collaboration/sharing w ithin com pany Im proving HR service delivery

2006 2004 Portals Social Media Podcasting Blogging

Reducing com m unication costs Im proving perform ance/efficiency of com m . dept. Driving/supporting culture change

Blogging

Wiki’s

Collaboration

MySite

1

2

3

4

Im proving custom er service

6

1=Low priority 4=High priority

(7)

Typical HR Portfolio of Technology Solutions

Employee Self-Service Manager Self-Service Employee Communications Mgmt Reporting & Analysis Self-Service Interaction

User

Experience

Training Learning

C Learning Candidate Applicant New-hire Contingent

Learning Management Recruitment Processes

Training

Administration _ManagementContent

Learning Delivery Candidate Sourcing Applicant Tracking New hire Onboarding Contingent Staffing Employee P f Succession Pl i Competency M t Compensation & R d Planning & A l i

Performance and Talent Management

Strategic

Performance Planning Management Rewards Analysis

Ti & F ti & Ab

Workforce Management Processes

O

ti

l

Time & Attendance Forecasting & Scheduling Absence Management EE Records &

Benefits Admin Payroll Position HR Compliance

Transactional HRMS

Operational

Source: Adapted from

Personnel Action Benefits Admin Payroll Management HR Compliance Forrester Research, Inc.

(8)

What HR Buyers Want

Deliver HR service, application, and content via the web

to compete with ubiquitous web consumer models

Amazon, Airlines, Banks

Acquire the ‘Best Fit’ solution -multiple

vendors/sites/applications are acceptable, but they are

concerned about them being “seamless”, integrated and

t

l ti

i

d b

d

easy to use solution as viewed by end users

Control over their own content

Reduced technical administration and support needs

(non technical staff)

(non-technical staff)

Corporate/HR Branding

Provide education and modeling where appropriate

“Fit”

ithi th i

i

d li

t t

“Fit” within their service delivery strategy

Flexible, scalable and high functionality

Save time and money

(9)

(10)

HR Systems/Solutions Marketplace:

Complex Offerings

ADP

Oracle

PeopleSoft

JD Edwards

S b

Taleo

SAP

SumTotal

Capterra

AccuTime

Kronos

Vurv

PeopleClick

ADP

Taleo

Ceridian

Fidelity

Convergys

JD Edwards

Saba

click2learn

Salary.com

eTime

Vurv

PeopleClick

CyberShift

Softscape

Halogen

Best Software

Watson Wyatt

Plateau

Lawson

Kenexa

Pilat

Silkroad

Workscape

Benefit Concepts

SHPS

Meta4

Ultipro

Kenexa

Ultimate Software

W

kSt

WisdomNet

Pilat

Genesys

GlobalKnowledge

Aon

Employease

Authoria

Greentree

SuccessFactors

WorkStream

SAS

10

Mercer

Genesys

…And 100’s More!

Aliquant

Employease

(11)

Some Order for the Chaos

HR

Delivery

(12)

Acquiring Technology Support – More Options

Than Ever

Outsourcing

System Self-Service

_SaaS

Data Management Administration Fulfillment

Model

SW License

Model

Fulfillment Call Center Reps

Insourcing

(13)

Latest Focus/“Hottest Market”

Talent Management

(14)

Most HCM Capability is Underutilized

Utilization of ERP HCM Modules

Most payback on technology investment is in driving talent solutions.

But much HRIS capability goes unused. How best should HR acquire

and deploy HR technology that drive human capital programs like:

• Performance Management

• Compensation Administration

• LMS – eLearning

g

• Portal/ERM/Knowledge Management/Employee

Communications

Deployment and Use of HCM Modules

Manage the Workforce 100% Base Benefits 60%

Payroll 45%

Deployment and Use of eApplications

eProfile 55%

eBenefits

35%

ePay

57%

y Ben Admin 45% Enterprise HR Portal 22% Recruiting 21%

Time and Labor 17%

P f M t 10%

ePay

57%

eDevelopment

22%

eRecruit

21%

eCompensation

17%

ePerformance

10%

14 14 Performance Management 10%

(15)

Talent Management from Single Solution to

Suites

(16)

Selecting Technology? - Lets Get Started

(17)

Strategic Alignment (sample)

Corporate HR Strategy:

Grow the core business

Grow outside the core business

Business Strategy

Human Capital Strategy

Grow outside the core business

Have fun doing it

HR Vision:

T b

i

d

th

l

f h i

Strategy

HR Priorities

:

– Performance Management Process & Tools

Talent Integration

To be recognized as the employer of choice

HR Goals:

– HR Service Delivery

Employee Centric

Employer of Choice – Talent Integration – Employee Support and

Communication

– Total Rewards Philosophy

– Employer of Choice Employee Integration Retention Strategy – Technology Enablement

C

Wid HR T

h

l

St

t

HR Technology Strategy

Company-Wide HR Technology Strategy

Example –Core HRIS/Payroll –Talent Solutions HR Helpdesk/Communications/Portal –HR Helpdesk/Communications/Portal –Skills/Workforce Management

(18)

Watson Wyatt HR Technology Selection Model

Assumption:

Boyd can identify functionality key to the operation of the

business. HR and Finance have the flexibility to redefine business processes

y

p

based on HRMS offered best practices.

Characteristics:

z

Assumes vendor list can be narrowed using high-level expectations and

g

p

expert’ opinion

z

Average organizational complexity and solution expectations

z

Utilize Watson Wyatt selection ‘acceleration’ tools. Such as requirements

repository

z

Limited mix of sourcing alternatives e.g. Software, ASP, limited ‘services’.

z

Selection team chartered and empowered to make sourcing

recommendation

RFP and Evaluation Selection, Business Case & HR/Financials Delivery Strategy Project Planning & Business 18 Negotiation Business & Technical Requirements Objectives

(19)

Selecting a Technology Solution

Key Activities Description Deliverables / Milestones

Project Planning & Business Objectives

Project Planning & Business Objectives

Establish project team and charter

Set up team and logistics. Define roles and scope. Identify executive sponsors.

Project plans and schedules Conduct stakeholder workshops Define expectations of business leadership HR High-level requirements summary

workshops business leadership, HR,

and employee customers

summary

Overall service objectives Key decision drivers

Review and establish Define range of scope of Sourcing strategy

sourcing alternatives investigation

Key Considerations

¾

Define a well represented selection team

¾

Identify ‘must have’ capability –include stakeholders beyond HR e.g.

Finance, Business Operations

¾

Schedule demonstrations to ‘level set’ terminology and expectations

(20)

Business Strategy Drives Prioritization

Applying strategic and tactical filters to the evaluation

process will help you focus on solution priorities

Strategic Filters: Tactical Filters: Criteria

p

p y

p

Evaluation of Initiatives Strategic

A R k AVG R k

Tactical Strategic Filters:

Being Employer of Choice

Improving Long Term Human Capital Management Tactical Filters: Time Cost Resources (IT) Resources (HR)

Average Rank AVG Rank

1 Searchable Resume Database - - - -2 Automated Recruitment Process 3.20 6 2.33 5 3 Automated New Hire Process 3.50 4 3.08 10 4 Online Pay Stubs 1.50 10 1.33 1 5 Online Total Compensation Statements 2.80 8 2.42 6 6 Benefits Administration 2 00 9 2 08 3 Management Creating Competitive Advantage Increasing Growth Capacity Leveraging Cost (HR) Change Capacity Client Demand 6 Benefits Administration 2.00 9 2.08 3 7 Policy & Program Management 3.10 7 2.92 9 8 Compensation Management Tool 3.60 3 2.92 9 9 eLearning 4.10 2 3.67 11 10 Performance Management Tool 3.60 3 2.67 8 11 Exit Tracker 1.30 11 1.92 2 12 Training Management 3.60 3 2.58 7 g g

Savings

g g

13 Knowledge Lab Tracking - - - -14 Balanced Scorecard Reporting 3.40 5 2.33 5 15 Online Service Center Manuals 1.50 10 2.17 4 16 Skills Inventory 4.40 1 2.33 5 17 Payroll / Headcount Forecaster - - -

(21)

Selecting a Technology Solution

HR/Financials Technology

Business Strategy and Requirements

Technology Strategy Business & Tech Requirements Define requirements -Conduct process review and workshops

Collect and review existing process documentation and metrics

Eight to ten process review workshops outline

Current state best practices

Improvement Opportunities

Self-service priorities current delivery and

identify best practices

Self service priorities Functional and application requirements summary Conduct technology

requirements workshop

Review of current

platforms and technology delivery capability

Technology requirements summary

delivery capability

Overall service objectives Review and establish

vendor alternatives

Screen vendors for fit to Boyd decision criteria such as capability, platform, delivery model,

t

Vendor short list

cost

Key Considerations

¾

Link technology choices to business/HR priorities

(22)

Selecting a Technology Solution

RFP and Evaluation

RFP and Evaluation

Convert business and technical requirements to RFP questions

Develop RFP. Define demonstration scripts. Establish evaluation criteria and scoring tools

RFP, Demo Script, Evaluation templates

Evaluate RFP responses Evaluate vendor based on RFP responses. Conduct follow-up

RFP assessment report

Schedule and conduct product demostrations

Scripted product demos with schedules

Demo assessment summaries

Key Considerations

y

¾

Define RFP requirements such that they differentiate vendors

¾

Ensure that evaluation mechanism is not biased by prior knowledge

or preferences

22

(23)

RFP – Vendor Evaluation and Scoring

Functional Requirements – HR Administration

No. Business P Description Degree f Fit Briefly Describe F ti lit Comments

Process of Fit Functionality

Available

1.0 HR Administration

1.1 New Hire Setup A) Automatically import and populate new hire record with information from GreenTree recruitment system.

B) Provide integration of HR, Benefits and Payroll, so personnel changes are recorded in all appropriate database records.

C) Provide capability to enter new hires in advance of their hire date

their hire date.

D) Ability via workflow or similar tool to notify support staff and other departments as to the arrival of new employee.

E) Store Background Check and Drug Testing Information

Information

Degree of Fit

1 = Delivered Functionality, No Modifications Required 2 = Adaptation Using Vendor Tools

3 = Requires Custom Programming

4 = Targeted in Future Release (Specify Release) 4 = Targeted in Future Release (Specify Release)

5 = Use of a 3rd Party Product Recommended (Specify Product) 6 = Not Feasible

(24)

Selecting a Technology Solution

Selection

Selection and

Selection and Business Case

Selection and Business case

Selection and Business Case

Finalize Selection Process Arrive at selection

consensus. Perform due diligence. Identify gaps

Final HRMS

Recommendation

C t t Hi h L l C ti t f B i C

Construct High Level Business Case

Compose estimates of economic and business benefits. Outline costs to achieve

Business Case, Risk & Benefits, Critical Success Factors

Begin Contract Define and document key Negotiation prep Begin Contract

Negotiations

Define and document key terms and expectations to be negotiated

Negotiation prep document

Key Considerations

y

¾

Careful due diligence and TCO modeling

¾

Integrate legal and purchasing in project

¾

Socialize decision based on business case

(25)

Project Team (example)

Typical Selection Team

z

Project Leader

z

Functional Specialists

p

z

Technical Specialists

Management Team

Responsibilities Title Responsibilities Title

Project Manager Individual dedicated 50% to 70% who serves as a leader and main contact of the Project Team. Coordinates the selection of the Project Team. Supports team in completion of project

requirements, manages deliverables. Presents progress to management.

Functional Team

HR Specialist(s) Strong knowledge of HR policy and procedures. Provides necessary requirements information Responsibilities

Title

HR Specialist(s)

Payroll Specialist(s)

Strong knowledge of HR policy and procedures. Provides necessary requirements information in such areas as employee life cycle, development, selection, regulatory compliance and salary administration to help with the selection process.

Strong knowledge of all payroll processing requirements. Provides necessary information requirements in such areas as interface to payroll and backfeed requirements

(26)

Project Team (example)

Typical Selection Team

z

Project Leader

z

Functional Specialists

Responsibilities Title z

Functional Specialists

z

Technical Specialists

Technical Team

Development Software Specialist(s) Hard are &

Provides organization specific knowledge of system development and maintenance standards. Represents/evaluates technical capabilities on technology.

Pro ides organi ation specific kno ledge of s stem design s stem platform specifications and Responsibilities

Title

Hardware & Infrastructure Specialist(s)

Provides organization specific knowledge of system design, system platform specifications and system operating environments necessary to support the selection process. Knowledge of network protocols, system standards.

(27)

RFP & Vendor Selection

Key Lessons Learned

Application Selection

– Have clearly defined scope & set of system/process requirements

– Create/enforce specific timeline with key project team and procurement team members

– Ensure comprehensive evaluation approach, timeline, and scoring method (weights and ranks)

– Ensure demo scripts are defined in advance for product vendorp p

– Interview at least 3 current application clients who recently implemented similar modules

– Obtain Market data on current application pricing options

Vendor (Implementer) Selection

– Identify specific service requirement and expectations for vendor

– Clearly communicate scope of product implementation scope

– Develop key decision criteria and vendor rating scale(s)

– Validate capabilities across all application modulesValidate capabilities across all application modules

– Oral presentation should address specific implementation requirements per your needs (versus general implementation approach)

– Meet the entire team (not just the sales team)

– Contact at least 3 references for each vendor; use a standard interview sheet for each vendor

(28)

Defining a Deployment Plan

Plan Big. Optimize. Scale Up.

4th Wave

Illustrative

• Plan Big:Start with a well-thought strategy that

t A ’

Speed to

Business

3rd Wave - Web Self

_Service

_Workforce

supports Amgen’s business goals. • Optimize:Gain early successes by focusing on near

Results

Manager SS Workflow Workforce Analytics Talent Mgmt Other

2nd Wave - Add

Functionality

Service

Value

focusing on near-term goals, while allowing for future expansion of the vision

Risk

Reduction

Time & Labor Applicant Tracking Training HR Portal Measurement/ Scorecard

1st Wave -Build

Foundation

1st Wave -Build

Foundation

• Scale Up:Use the existing/ planned infrastructure to continue to expand

Smooth

Transition

Base HR System Benefits Admin

Payroll/Time & Labor

Performance Mgmt Employee SS

p and enhance the model

28

(29)

HR Strategy Defines a Model for the HR

Portfolio

Candidate Sourcing Applicant Tracking Contingent Employee Self-Service Manager Self-Service Employee Mgmt Reporting_{& Analysis}

Training Ad i i t ti New-hire Onboarding g Staffing Communications y SOA and SOA and Best-fit

Applications Administration Learning Content Management Learning Delivery Time & Attendance Forecasting & Scheduling Absence Management

ERP

Core

Middleware Delivery Employee Performance Succession Planning EE Records &

Personnel Action _{Benefits Admin} Position _{HR Compliance}

Core

Data

g Competency Management Compensation & Rewards Planning & Analysis Position Management Payroll HR Compliance y

(30)

Q&A

Michael Cornetto Office: 212/251-5849 [email protected] Rufino R. Lomba Office: 781/283-9520 [email protected] 30