webcast: the retained organization
DESCRIPTION
Webcast: The Retained Organization The retained organization represents the specific organization structure which stays in house after a completed transformation process, Shared Services implementation and/or Outsourcing project.TRANSCRIPT
Designing the Retained Organizationin Shared Services and Outsourcing
Webcast: The Retained Organization 22 October 2009
Introduction to the Panel
Karsten SoderbergDirector, CorporateLeaders
Christine BriodySenior Director Global ConsultingADP
ModeratorModerator
Ray PorterDirector APJ Employee ServicesDell
The Retained Organization – a Definition
The retained organization represents the specific organization structure which stays in house after a completed transformation process, Shared Services implementation and/or Outsourcing project.
Dell Organization – APJ Payroll 2007
Multiply legal entities
Commissions based & expat. employees
7X24X365call centers
Multiply manufacturing sites
Dynamic Business Environment
13 payroll providers
11 processing locations
3 different functions doing payroll
Vendor performance not measured
No operational indicators or SLA’S
Low levelof system
integrationControl
concerns
Process relies on
Human Glue’
Data integrity issues
Peoplegetting paid
Dell Organization – Results: APJ Payroll 2009
Org. CapabilityService DeliveryBusiness PartnershipControls
• Support for payroll vision• Structure SLA’S• Increased ownership for source data• Early engagement in new programs• Increase business value through cost reporting consolidated reporting capability
• SAS70 Type 11• Auto interface of source data• Systems Change management process• Auto interface of source data• Vendor performance score card• Internal operational indicators• Privacy & data protection enhanced• No issues with segregation of duties• Legal & Statutory news letter
• Productivity increased, 35% people moved out of core operations• Expanded Roles & responsibility• Transformation was seen as positive development resulting in 0 attrition,
• High Quality output 99.9%• Cost within budget/ savings on track• Customer Service enhanced-ESS , E-pay slip-Decrease in customer calls
Simplification
78% employee paid by One vendor, (99% by end of 2009)
Two processing location V’ Eleven
Payroll consolidate into one functionMalaysia, Singapore,
Taiwan, Pakistan, Indonesia, Thailand, Vietnam,
Philippines, Australia (Q1)
India (out of scope)
China, Hong Kong, Korea (Q2), Japan (Q3)
SA Shared Service Center
SA Shared Service Center
Making good progress towards end vision
Quantifying the Retained Organization
• Quantifying your retained and future HR organization requires adopting a structured approach. A prerequisite is to have clearly defined both the geographical and functional scope of tasks and processes to be outsourced.
• This goes hand in hand with the selection of the service delivery model and service provider that will best suit your new business needs.
• The next step is then to work on the “to-be” stage, in other words, designing the organization that will remain in-house once the outsourcing contract goes live – This phase is called the mapping process.
Factors Influencing the Retained Organization
• Geographical coverage
• Functional scope• Payroll• HR• Time & Attendance
• Technology model• Systems integration• Interfacing• Self service• Portal integration
• Geographical coverage
• Functional scope• Payroll• HR• Time & Attendance
• Technology model• Systems integration• Interfacing• Self service• Portal integration
• Operational model• Shared Services functions• Decentralized roles
• Level of outsourcing• Processing Services• Managed Services• Comprehensive Services
• Phasing - Roll-out
• Operational model• Shared Services functions• Decentralized roles
• Level of outsourcing• Processing Services• Managed Services• Comprehensive Services
• Phasing - Roll-out
Roadmap to the Retained Organization
Sample - Defining the Scope
Benefits of a well designed retained organization
• Providing broader opportunities for advancement of talent through the new business structure.
• Increasing levels of standardization resulting in lower overall costs
• Implementation of Governance Boards to monitor and measure the performance of all parties.
Challenges in putting a new organization in place
Challenges will be encountered from two aspects:• Firstly internal challenges within the new organisation. You will experience
resentment and resistance to:– Resentment of new skills which might need to be bought in– Resistance to increased formality and perceived inflexibility– Resistance to the need for consistency of processes
• Secondly external challenges from outside the new organisation. Need to communicate and educate stakeholders on changes to service delivery and the future vision:
– To learn how to get things done– To understand the "big picture”– To see the benefits
In Summary
• Plan well and well in advance• Secure the internal maturity before kick-off• Articulate the objectives and expectations – With the perspective
“what’s in it for me?”• Be prepared organisationally and personally to deal with the challenges
that inevitably will arise • Involve internal and external stakeholders
Thank you for joining
Karsten SoderbergDirector, CorporateLeaders
Christine BriodySenior Director Global ConsultingADP
ModeratorModerator
Ray PorterDirector APJ Employee ServicesDell
Contact Details
For further information, please visit our websites:
www.adp.comwww.globalhrstudio.comwww.corporate-leaders.com
Or email us at:Christine Briody: [email protected] Porter: [email protected] Soderberg: [email protected]