Case Study: How Web Technology Facilitated

Implementation of a Business Plan

NAPEO 2004

Presented by: Dan Danzig, VP Marketing

SpectrumHR, LLC

9/22/04 SpectrumHR, LLC 2

Overview of SpectrumHR as of 9/2001

In business since 1999

Limited growth due to limited offering

Commoditized service offering

Minimal human resource based services

No web-based services / tools

9/22/04 SpectrumHR, LLC 3

The ChallengeStrategic Goals

Significantly grow revenue create improved economies of scale

Increase margins increase profits by delivering value added services decrease operating expenses by improving internal efficiencies

Tactical Goals

Total revision of product offering Focus on human resource services, benefit offering, self-service customization/tools

Re-engineer production & delivery of services (payroll, customer service, etc.)

** Technology, including web portals, were viewed as a method of facilitation, not a goal in itself.

9/22/04 SpectrumHR, LLC 4

Critical Factors in Platform Selection

1. Cost max. 6 figure investment minimize total cost of ownership

2. Implementation Time 3 months or less

3. Integration w/ Back End Platform & Providers Seamless integration & reporting

4. Flexibility customization integration w/ external tools

5. The “Sizzle” Factor

9/22/04 SpectrumHR, LLC 5

Key Client Web Portal Features

All features must be convenient, intuitive & fast

Payroll/Timesheet functionality

Automated report updates

Self reporting functionality

Status changes & manager approval process

Benefits open enrollment

Seamless links to providers

Form retrieval

HR tools to complement delivery of services

9/22/04 SpectrumHR, LLC 6

Implementation Lessons

1. Project planning, functional area participation, executive support

2. Extensive internal marketing & training

3. Multiple client communications via various channels

4. Incremental training & adoption (be realistic)

5. Develop training process based on priorities

6. Be prepared to customize the delivery of training

7. Promote early adopters

8. New Clients Web is how service is delivered

9/22/04 SpectrumHR, LLC 7

Web Attributable Results

1. Pay-tech productivity doubled over the initial 12 months

2. Reduced customer service calls by 40%

3. Re-investment in HR staff & service

4. Significant increase in customer satisfaction Strong correlation based on clients utilization of web

tools

5. Attracted more desirable client base Larger Less cost sensitive/value driven Improved risk portfolio

9/22/04 SpectrumHR, LLC 8

Q & A