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HRO TRANSFORMING THE HR FUNCTION A Fujitsu Services Perspective

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HRO TRANSFORMING THE HR FUNCTION A Fujitsu Services Perspective

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    2. GLOBAL SOURCING MASTERCLASS 6TH DECEMBER 2007 HRO TRANSFORMING THE HR FUNCTION A Fujitsu Services Perspective Dierdre Hardy Shaun Dunphy

    3. 3 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

    4. 4 ??????? ?? ????????????????IT????ˇ??????????????$432? (€325?)?? ????????: ?????????????? (???????????????? ?????) ???????????????????? (????????????????) ??????????????? IT????????????????????1???????3?????????

    5. 5 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 Who we are Fujitsu Group is a US$45 billion (€37 billion) leader in customer-focused IT systems and services for the global marketplace. The cornerstone of the Fujitsu Group's business strategy is an interlocked value chain of Services, Platforms and Technologies. In IT Services, Fujitsu commands the highest market share in Japan and the third highest worldwide. We have deep expertise in the full array of IT services from IT consulting and systems integration to managed services and outsourcing. The Fujitsu Group Business Software & Services Principal IT Consulting, Application Management, Systems Integration, IT Infrastructure Management, Outsourcing, Network Services (ISP, ASP, etc.) Business Integration and Systems Management Middleware, Storage Management Software, Package Software (ERP, CRM, etc.), Business Applications l Business Areas Platforms Servers, Storage Systems, Personal Computers and Mobile Devices, Storage Devices & Peripherals, Optical Transport Solutions Mobile and Wireless Systems, Submarine Network Solutions, IP Network Solutions, IP Telephony and VoIP, Retail & Financial Products Electronic Devices Semiconductors, Compound Semiconductors, Media Devices, Electromechanical Components, Displays.Who we are Fujitsu Group is a US$45 billion (€37 billion) leader in customer-focused IT systems and services for the global marketplace. The cornerstone of the Fujitsu Group's business strategy is an interlocked value chain of Services, Platforms and Technologies. In IT Services, Fujitsu commands the highest market share in Japan and the third highest worldwide. We have deep expertise in the full array of IT services from IT consulting and systems integration to managed services and outsourcing. The Fujitsu Group Business Software & Services Principal IT Consulting, Application Management, Systems Integration, IT Infrastructure Management, Outsourcing, Network Services (ISP, ASP, etc.) Business Integration and Systems Management Middleware, Storage Management Software, Package Software (ERP, CRM, etc.), Business Applications l Business Areas Platforms Servers, Storage Systems, Personal Computers and Mobile Devices, Storage Devices & Peripherals, Optical Transport Solutions Mobile and Wireless Systems, Submarine Network Solutions, IP Network Solutions, IP Telephony and VoIP, Retail & Financial Products Electronic Devices Semiconductors, Compound Semiconductors, Media Devices, Electromechanical Components, Displays.

    6. 6 Why do organisations consider HRO?

    7. 7 Key drivers stated by clients

    8. 8 What is HRO?

    9. 9 What sort of HR function?

    10. 10 The outsourcing attitude gap

    11. 11 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

    12. 12 What processes can we outsource?

    13. 13 Rocket Science?

    14. 14 But do we know how it really works?

    15. 15 Example of an HR Process Taxonomy

    16. 16 Rethink HR processes as business processes

    17. 17 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 (ŁŁŁ) 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

    18. 18 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

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    20. 20 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?

    21. 21 The retained organisation – getting it right

    22. 22 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

    23. 23 What have we learnt?

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