achieving world-class performance in finance, hr/payroll, procurement and it q1, 2006 executive...
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Achieving World-Class Performance in Finance, HR/Payroll, Procurement and IT
Q1, 2006
Executive Advisory Program
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Hackett Executive Advisory Program
World-Class Scorecard – Progress Report
Stakeholder Survey
Functional Book of Numbers (quarterly and mo. research)
Advisor Inquiry
Access to Functional Best Practices/Hackett knowledge Center
Quarterly Peer group/member presentations
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World-Class ScorecardAn annual quick health-check of Finance, HR/Payroll, Procurement and IT at your fingertips
How it WorksWeb-based submission and results accessGenerated from a subset of the questions in
functional benchmarksEstablishes a framework for process improvement
measurementAllows for multiple locationsComparative to varying peer groupsData will be collected, compared, and posted
annually
What it DoesCommunicates the operational view of your function Identifies strengths to more broadly leverage
throughout organizationMonitors progress on organizational initiatives Identifies potential areas of opportunityAllows for quarterly updates against world-classPaste graphics into internal presentations
Overall Finance – Cost as a % of spend/revenue
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Finance World-class Scorecard delivers key metrics for each of the process groups, including Costs, FTEs, Productivity, Complexity
Overall Finance• Costs as a % of revenue• FTEs per Billion in revenue• Technology cost as a % of revenue
Cash Disbursements• Cost as a % of revenue• FTEs per Billion in revenue• Cost per transaction• % of transactions automated• Transactions per FTE• Use of a procurement card for
purchases
Revenue Cycle• Cost as a % of revenue• FTEs per Billion in revenue• % of cash remittances performed
electronically
Revenue Cycle (cont.)• % of customer bills processed
electronically• Cost per transaction
General Accounting & External Reporting
• Cost as a % of revenue• FTEs per Billion in revenue• % of journal entries automated
Tax Management• Cost as a % of revenue• FTEs per Billion in revenue
Planning and Performance Management
• Cost as a % of revenue• FTEs per Billion in revenue
Treasury Management• Cost as a % of revenue• FTEs per Billion in revenue
Compliance Management• Cost as a % of revenue• FTEs per Billion in revenue
Business Analysis• Cost as a % of revenue• FTEs per Billion in revenue
Management & Administration• Cost as a % of revenue• FTEs per Billion in revenue
Other Costs• Other Costs as a % of revenue
Finance Sample
Finance World-class Scorecard delivers key metrics for each of the process groups, including Costs, FTEs, Productivity, Complexity
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Total HR Cost per Employee Total HR FTEs per 1000 employees Total HR Technology Costs per Employee Total HR Transactional Process Costs per
Employee Total HR Rewards Administration Costs
per Employee Total Payroll Administration Process
Costs per Employee Total Time and Attendance Process Costs
per Employee Total Data Management FTE’s per 1000
employees
Outsourcing cost per Employee Total HR Employee Life Cycle FTEs per
1000 employees Total Staffing Services Process Costs per
Employee Total Organizational Effectiveness
Process Costs per Employee Total Workforce Development FTEs per
1000 employees Fully Loaded Labor Cost per Employee # of Health and Welfare plans per 1000
served # of Employees per HR FTE – HR
Scorecard
HR World-class Scorecard delivers key metrics for each of the process groups, including Costs, FTEs, Productivity, Complexity
HR Sample
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Overall Procurement Cost as a % of spend FTEs per $1 billion in spend Technology cost as a % of spend Technology cost per FTE Ave quarterly FTE turnover % for
managers and professionals Ave quarterly training hours per
FTE
Procurement Operations Cost as a % of spend FTEs per $1 billion in spend % requisitions processed
electronically % purchase orders distributed
automatically to suppliers Cost per purchase order Cost per receipt
Sourcing & Supplier Mgmt (cont.) # of suppliers per $1 billion in
spend % of suppliers comprising top 80%
of spend % of spend from approved
suppliers % of spend negotiated on a
corporate-wide basis % of RFx’s submitted
electronically % of total suppliers for which
formal measures are maintained
Compliance & Function Mgmt Cost as a % of spend FTEs per $1 billion of spend % of total purchased spend supplied
by small, minority, and disadvantaged businesses
Sourcing & Supplier Mgmt Cost as a % of spend FTEs per $1 billion in spend % total FTEs allocation to supporting
Sourcing and Supply Management Total cost reduction as a % of spend Total cost avoidance as a % of spend % total indirect spend
influenced/managed by procurement organization
Procurement World-class Scorecard delivers key metrics for each of the process groups, including Costs, FTEs, Productivity, Complexity
Procurement Sample
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IT World-class Scorecard delivers key metrics for each of the process groups, including Costs, FTEs, Productivity, Complexity
Overall IT Total IT cost per end-user
Technology Infrastructure Total cost per end-user FTEs per 1000 end-users % Technology Infrastructure
costs outsourced # of help desk calls per 1000
end-users % of primary help desk calls
resolved on first call
Application Management Total cost per end-user FTEs per 1000 end-users % Application Management
costs outsourced
Application Management (cont.) % Custom Applications % Packaged Applications % Projects completed on time % Projects completed on Budget % Projects completed to Business
Specifications % projects managed through a
PMO % Projects that adhere to a
common methodology Applications per 1000 end-users
Planning & Strategy Total cost per end-user FTEs per 1000 end-users % Planning & Strategy costs
outsourced
IT Management & Administration Total cost per end-user FTEs per 1000 end-users % IT Management & Administration
costs outsourced # Hardware Suppliers per 1000
end-users # Software Suppliers per 1000 end-
users # Contractor Suppliers per 1000
end-users % of business adhering to
Hardware Standards % of business adhering to
Software Standards % of internal SLAs met
IT Sample
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The Stakeholder Survey is administered via the Web
1.00 2.00 3.00 4.00 5.00 6.00
EE Reten, T&D
Comp Strat
EE Rels
Succession Plng
Recruit
Perf Mgt.
Onboarding
Comp Admin
EE Commun
Diversity
Recog
EE Data Mgt.
Org Effec
Ben Admin
Int Placement
HR Pol Devel
Exit Mgt.
Ben Strat
Strat Pln Devel
Strat Pln Facil
Importance
HR Responses Stakeholder Survey Responses
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• Locating questions• Select a set of questions (Only the ones assigned to your location will be visible)
Web based data collection and reporting
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• Generating a report• Choose the report type, locations, currency, and format (pdf recommended)• Click “View Report” to view. Print or save the file and review for errors
Web based data collection and reporting (cont.)
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Book of Numbers & Best Practice
Research
Hard Copy Quarterly70-100 pages
Hard Copy Mail &Soft Copy3-4 pages
Soft Copy 3-4 pages
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Value of Benchmarking and Practice Assessment
Knowledge Center - Access to Best Practices and Client PresentationsKnowledge Center - Access to Best Practices and Client Presentations
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Hackett Knowledge Center: On-line Resource of Performance Metrics, Process Definitions, Best Practices and Related Research
Best Practices
Quick Wins
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Peer InteractionPeer-to-peer contact and executive interaction
Webcasts (monthly) Cover relevant issues related to business processes, organization designs,
leverage of technology, etc. – members choose the topics Restricted to members due to confidentiality and sensitivity of information Each is recorded; presentation materials are posted and available for download
Advisory Member Forums (annual) Each advisory service program holds an annual forum for client members Presentations are generated from within the membership
Advisory Member Roundtables (annual) Conducted in conjunction with Hackett Conferences Executive Advisory members only
Best Practices Conferences (annual) Hackett’s premier annual event attracting a cross-functional audience of
business executives committed to world-class performance – half price registration for members
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Advisory AccessUnmetered, on-demand phone access
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Executive Advisory Program Pricing – State Government
1 Functions - $30,000 each year / function
2 Functions - $25,000 each year / function
3-4 Functions - $20,000 each year / function
Three year membership program
NASACT fee: 3%
Plus: Any travel related expenses
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For further information please contact
Pat O’Connor
NASACT Association Manager
Lexington, KY
Ph: 859-276-1147
Jim Anthony
Hackett Account Director
Chicago, IL
Ph. Work: 312-664-0878
Cell: 312-543-6938