hroa: helping hr transform through standards, benchmarking
TRANSCRIPT
The 2009 Global Human Capital Forum Marriott Chicago Downtown | September 22, 2009
© 2009 IAOP® All Rights Reserved
HROA: Helping HR Transform
Through Standards,
Benchmarking and Research
John Hindle
Vice Chairman
HROA
The 2009 Global Human Capital Forum Marriott Chicago Downtown | September 22, 2009
© 2009 IAOP® All Rights Reserved
John Hindle
John is a senior member of Accenture’s Outsourcing
Marketing team, where his responsibilities include managing
research and thought leadership programs, industry events,
and building relationships with analysts, key industry groups,
and sourcing advisers. He also serves as Vice Chairman of
the HR Outsourcing Association (HROA), and Co-Chairman of
HROA Europe, and holds an appointment as Adjunct
Professor of Human and Organizational Development at
Vanderbilt University. John has an extensive international
business background, with over 30 years of experience as a
senior executive and adviser to companies in the U.S. and
Europe. He holds dual U.S. and UK citizenship, and publishes
widely in trade, practice and academic media.
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The 2009 Global Human Capital Forum Marriott Chicago Downtown | September 22, 2009
© 2009 IAOP® All Rights Reserved
HROA Research & Standards
Industry Standards and Research Agenda
September 22, 2009
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What we will cover
Background on HROA
HROA Industry Practices Setting
• The HROA Process
• HROA Practices: The Latest & Greatest
• Benefits for the HRO Practitioner Community
HROA Research Agenda
Q&A
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HROA Background
The HROA is the only independent organization representing
all those who purchase, provide, and advise on HR
Transformation and Outsourcing.
The HROA is dedicated to accelerating the growth and
maturation of the practice of HR Transformation and
Outsourcing around the world. The Board of Trustees has set
forth four primary objectives:
• Industry Practices
• Research & Performance Indicators
• Special Interest Groups
• Education & Events
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HROA Governance
Board of Trustees
Regional ChaptersSpecial Interest
GroupsCommittees
Americas
Asia
Europe
Large Market
BuyersMid-Market
RPO Alliance
Membership
Research
Standards &
Practices
Association
Management
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Setting Standards & Practices
The HROA sought to create an open and transparent process that would:
• Establish broadly accepted practices
• Be subject to peer and public comment
• Create an accessible body of knowledge kept current and available
It set minimum criteria:
• Representative Transparent
• Practical Verifiable
• Economical Timeless
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The Process
Gathering
Initial Ruling
Public Comment
Reconciliation
Final Ruling
Publication
Adoption & Use
Maintenance
Governance
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The Committee’s Charter
Encourage the development of standards programs that advance the state of practice in HR Transformation.
Set and administer standards for HR transformation and the outsourcing industry:
• Oversee the process
• Solicit standards and practices content initiated by member organizations as input to the process
• Substantively contribute to the further development of this body of knowledge
• Make initial and final rulings on HROA Recommended Practices
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Standards: 2009 priorities
Version 2.0 of existing standards
• SLAs
• Pricing Units
Version 1.0 of service catalogue – used to define services
Short position statements on best practice, driven by member concerns – for example:
• Critical deliverables list
• Applying HRO to factory environments
• Approaches to handling language requirements
• Approaches to handling software licences
Links to other useful standards
• Available on HROA website
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HR Service Catalogue Project
Objectives:
Create a standard reference service catalogue for use in HR outsourcing projects, applicable globally
Have the service catalogue adopted by the industry
Help reduce scope misunderstandings between service providers and buyers of HR outsourcing services
Use the service catalogue to help build other standards and benchmarks with standardised definitions
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HR Service Catalogue Project
Progress:
Level 2 of the service catalogue has been
through two rounds of public comment
• Robust and agreed framework is ready to use on the
HROA website
Level 3/4 of the service catalogue is currently
available on the HROA website for public
comment
• Comments close end May 2009 – please contribute
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Example detail
Three or four
levels of detail
Indicative scope
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Key points
We have set the detail at a level that
would be useful in scoping an HR
outsourcing project
It will be necessary to use intelligently;
applying it to the specific situation
We have worked hard throughout to
make the language generic and
international – work initiated and driven
from Europe to help achieve this
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HR Service Catalogue Project
Collaborators:
Accenture
ADP
Alexander Mann
Cadbury
Convergys
EquaTerra
ExcellerateHRO
Kelly
IBM
NorthgateArinso
OpenDoor HRO
PA Consulting Group*
TPI
UBS
Unilever
* Work has been driven by PA Consulting Group
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HR Outsourcing Lifecycle
Develop a representative view of the HR Outsourcing Lifecycle showing the phases/stages of the lifecycle with an overview of the expectations of each phase including:
• Activities
• Roles
• Responsibilities
• Impacts.
Goal: provide a framework which can build a strong foundation and aligned expectations for buyers of HRO services
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Business Value Metrics Project• Research project initiated by IBM and TPI in Q3 2008
• Objective: To produce a library of research-based results that may represent quantifiable business improvements through transformation projects
How do we quantify the value of transformation?
How do organizations value improvement?
Human Resources Business Review
• Periodic peer-reviewed research journal available on HROA website
Editor: Dr. Anthony Hesketh PhD, Lancaster University
HROA Research Agenda
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HROA Research Agenda
Lessons Learned From 1st Gen HRO
• Insiders Perspective on European HR
Outsourcing
HROA Europe and SAP
• Research kicking off in North America
Where have we been … and what does that mean for where we’re going?
Graceful exits: We hear a lot about HRO contracts not being
renewed, but how much is really occurring?
Managing the future state delivery model: What’s out, what’s
in? How will it look different than Gen1?
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HROA Research: Business Value Metrics
Project participants include multiple organizations
• Clients / Buyers (AT&T, Avon, Unilever)
• Advisory & Research Firms (TPI, EquaTerra, Saratoga, Reed
Group, Bersin & Associates)
• Service Providers (IBM, EHRO, Accenture, Kelly, Hewitt, ADP,
Mercer, Ceridian, NorthgateArinso, PeopleScience)
• ERP Providers (Oracle, SAP)
Approach: conduct focused working sessions to address values by HR functional area
• Recruiting
• Talent (Compensation, Learning, Performance, Succession)
• Payroll & Timekeeping
• Absence Management
• Technology Enablement (HRIS, Self-Service)
• Retained Organization, Reporting & Analytics
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HROA Research: BVM Deliverable
Sample metric: Absence Management
• Best Practice: proper vetting & tracking of qualified leaves (denying unqualified leaves) includes
Confirm employees work hours
Waiting period based on employment
Elective medical event v. required medical event
State-specific leave requirements• Research: average reduction of xx% in approved FMLs
and Disability Leaves compared to pre-sourced administration model
• Sample value calculation:
(Total Client Leaves) x (% reduction) x (Avg Cost of Leave)
2009 deliverable includes a workbook of common Business Value Metrics & associated research
Its never too late to participate! Contact
• Julie Fernandez [email protected]
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Benefits to HRO Practitioners
Why the HRO Community has come together with HROA
• Our stories – why we volunteered
There are benefits for everyone
• Buyers of HR outsourcing
• Practitioners from HR Shared Service Centers and other
internal client HR organizations
• HRO Service Providers
• Sourcing Advisors and
• Legal Counsel
Link to Human Capital Management and the future of HR
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For Further Information
Contact us:
HROA Americas Contact:
Adam Bleifeld, Executive Director Americas
+1 202 905 0351 x19
HROA Europe Contact:
Faye Holland, Executive Director Europe
+44 1638 742 355
HROA Asia-PacificSharon McEneff, Director of Membership
+85 2 815 3884
HROA Committee Leadership
Debora Card
+1 586 677 8351
Linda Merritt
+1 610 909 1210
Tim Palmer
+44 7525 666 171