defining quality and efficiency metrics in an hr ssc
TRANSCRIPT
Defining Quality and Efficiency Metrics in an HR SSC July 24, 2013
#dovetailhr
Housekeeping
• This webinar is approved for 1.0 hours of recertification credit.
• You MUST attend for the entire 60 minutes to receive credit.
• Emily Lewis ([email protected]) will email you the program id # within 24 hours.
• The webinar is being recorded and the slides and recorded presentation will be emailed to you as well.
#dovetailhr
Who is Dovetail?
• Delivers SaaS-based HR Case Management & Help Desk solutions
• Helps HR pros better communicate with each other & employees
• Supports HR Pros through education and technology
@dovetail
Dwane Lay, SPHR Head of HR Process Design
Dovetail Software
@DwaneLay
Today’s Speaker:
#dovetailhr
Objectives and Expectations
By the end of this session, you will:
• Understand how to determine the right metrics for your HRSSC
• Understand your options for tracking and reporting on these metrics
• Have options for pursuing continuous improvement in these areas
Phase One
Defining the Metrics
CUSTOMERS
INTERNAL EXTERNAL
Voice Of the Customer (VOC)
Quality Delivery
Cost
Service and Safety
Corporate Responsibility
Critical to Quality vs Critical to Process
Parts not delivered on
time
24 hour delivery
95% in stock
Payments not delivered on
time
Invoices issued in one week or less
Delivery parameters not meeting
needs
Billing process
inefficient
VOC
Issue
CTQ
VOB
Issue
CTP
Identify CTQ Components
Internal and External Data
Listening Research
Company
Information
Industry Experts
Competitors
Customer
Service Team
Sales Team
Delivery Team
Customer Feedback
Focus Groups
Interviews
#dovetailhr
Identifying Your Stakeholders
Stakeholder List Example
Stakeholders Influence Involvement
StakeholderInfluence or impact on
project outcome
How might they be involved in the current initiative? What will/should they do differently as a
result of the initiative?
Champion Critical Attend gate reviews. Approve decisions/design. Keep it on the agenda for
SLT.
Process Owner Critical Manage resources. Participate in team decisions. Demand results from
week to week.
IT (programmers) Significant Subject matter experts. Implement many changes. Change the way they
report outages & problems. Need to be more proactive in root cause
identification and resolution
HR Bus. Partners Moderate Advise on HR implications. Help coordinate training needs
Engineering (all) Significant Change the way they request and process drawing changes.
ISC (buyers) Significant Subject matter experts. Coordinate work with vendors who will need to
submit new bids.
Payroll Minimal Need data from them.
Legal/Ethics Minimal Need to get okay on some of the changes to vendor contracts
Business Strategy
HR Strategy
A series of activities that transform a set of inputs into a specific set of outputs. Everything we do is a process.
PROCESS
Output: Goods, Services, Products
Function: The steps that transform the Inputs
Inputs: Equipment, Process, People, Environment, Materials, Management
#dovetailhr
Y to X Tree - Applying LSS to HR
Apply LSS Principles
LSS Metrics
LSS Deployment Sessions
LSS ROI
LSS Belt Certifications
Y X – Level 1 X – Level 2
LSS Champion Certification
Number of BB/GB Projects Completed
Project Tracking Mechanism
#dovetailhr
Y to X Tree - Revenue Growth +15%
Y X – Level 1 X – Level 2
Revenue Growth +15%
Service Personnel
Sales Personnel
Retention of top talent
Sales training for new/existing team
Finance Personnel
Revised comp plan to emphasize revenue
Exit plan for bottom 10%
Y
21
24
Phase Two
Leveraging Technology
#dovetailhr
Central Tendency
Mean
Median
Mode
Range
Standard Deviation
Mean
X =å (X1 + X2 + X3...)
n
Average
1+1+1+1+2+66 Average = 6
#dovetailhr
Mean
2 3 4 4 5 6 6 7 54
10
#dovetailhr
Median
2 3 4 4 5 22 32 32 55
#dovetailhr
Mode
2 3 4 4 5 22 32 32 55
#dovetailhr
Max
2 3 4 4 5 22 32 32 55
#dovetailhr
Min
2 3 4 4 5 22 32 32 55
#dovetailhr
Range
R = Max - Min
R = 55 – 2 = 53
2 3 4 4 5 22 32 32 55
#dovetailhr
Range
• P95 - top 95 % value in the data set
• P5 - bottom 5%value in the data set
• P95 – P5 - Range of the data set that ignores the top 5% and bottom 5% of the values (requires at least 20 data points)
#dovetailhr
Standard Deviation
#dovetailhr
Standard Deviation
N
N
iix
1
2average
Sigma
Sample Line Chart
16
17
18
19
20
21
22
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
Me
asu
reSample Bar Chart
16
17
18
19
20
21
22
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
Me
asu
re
#dovetailhr
Seeking Process Stability
#dovetailhr
Line Chart
#dovetailhr
Bar Chart
#dovetailhr
Pareto Chart
#dovetailhr
Histogram
#dovetailhr
Histogram: Example
#dovetailhr
Information Delivery Options
• Automated Emails
–Efficient, consistent, dependable
–No context, outliers, setup
• Ad hoc reporting
–Control, context, focused
–Manual, reactive, limited
• Individual delivery
–Detailed, context, explanations
–Manual, labor intensive, static
Phase Three
Continuous Improvement
Value Added Parameters
Resumes Interviews
Non-Value Added Waiting
Approvals Forms
TRANSPORTATION
INVENTORY
MOVEMENT
WAITING
OVERPRODUCTION
OVERPROCESSING
DEFECTS
UNDERUSED
PEOPLE
Well there’s your problem.
Chart of Electricity Consuming Devices
$90.00
$80.00
$70.00
$60.00
$50.00
$40.00
$30.00
$20.00
$10.00
Y = f(X1, X2, X3…)
Impact Category Definition
Net Hard Savings Total estimated hard savings less investment to implement
Number of Task Owners
Total number of people performing the job function within the impacted area
Impact Scope Area of project impact
HR Index Score How closely related is the project to strategic goals?
Effort Category Definition
Project Expense (T&E)
Expected spend on travel to bring the project team together to execute the project. Does not include implementation costs
Time Expected time to execute project and begin realizing savings
Functions Involved Number of functions that are responsible to execute the project and capture the savings
Systems Impact/Change
Impact the project implementation will have on any of the HR systems or applications
#dovetailhr
Fishbone/Ishikawa/Cause and Effect Diagram
• Identify contributing causes of a problem
• Visual
• Organizes around categories
• Systems thinking
#dovetailhr
Fishbone Construction
Identify the problem to be solved
Top Talent Leaves
#dovetailhr
Fishbone Construction
Define the categories (bones) of the causes People
Material
Process
Environment Equipment Management
Top Talent Leaves
#dovetailhr
Fishbone Construction
Construct potential cause detail
Compensation
Training
Culture
Product
Stay Interview Tools
Strategy
Leaders
Team
Projects Recognition
Tech
Territory Turnover
Top Talent Leaves
People
Material
Process
Environment Equipment Management
Peers
Job Market
#dovetailhr
Fishbone Construction
Prioritize causes for investigation
Compensation
Training
Culture
Product
Stay Interview Tools
Strategy
Leaders
Team
Projects Recognition
Tech
Territory Turnover
Top Talent Leaves
People
Material
Process
Environment Equipment Management
Peers
Job Market
#dovetailhr
5 Whys
#dovetailhr
5 Whys
• Problem: Delays in processing FMLA requests.
• Why? Vendor not timely in processing requests.
• Why? Forms are not correctly completed in 60% of cases.
• Why? Instructions are unclear.
• Why? Were translated from French.
• Why? No English versions were created by vendor.
• Solution: Create new English version with clear instructions.
#dovetailhr
Summary
• Understand how to determine the right metrics for your HRSSC
–Stakeholder concerns, CTQ, CTP, Y= f(X)
• Understand your options for tracking and reporting on these metrics
–Measurements, graphs and uses
• Have options for pursuing continuous improvement in these areas
–Pareto chart, impact/effort matrix, fishbone diagrams, 5 whys
#dovetailhr
What’s Next
Upcoming Event:
HRSSI Executive Retreat July 29th – July 31st, 2013
Commerce Club, Atlanta, GA
www.hrssi.net
Upcoming Webinar:
Making Shared Services Work: Keys to Setting up
your HR Services
August 15th, 12:30 – 1:30 CDT
www.dovetailsoftware.com/hr-webinars
#dovetailhr
Thank You
Dovetail Software
(800) 684-2055
@dovetail
dovetailsoftware.com/dovetailconnectblog
dovetailsoftware.com