recovery of shared services approach

Recovery of Services Approach

Paulo Morganho

EMEA HR Services Head

HRS EMEAScope of Services (High Level)

Hiring, Transfer,

Exit

• Documentation

• Interfaces (IT, Finance)

• Guidance and

information

Talent & Learning

• Regional/global

Administration

• Annual training needs

collection

• Regional Catalogue

Mobility

• Relocation

Coordination

• Support (Local Plus

and Expatriates)

Rewards &

Recognition

• Annual Salary

Review

• STI

• Salary surveys

SAP HR Maintenance (Master Data, OM, PA)

HR Reports and Analytics

12/17/2015 2

HRS EMEAHR transformation

2011 2012 2013 2014

Stabilization

Assessment

HRS Maturity

Ma

turi

ty/Im

pa

ct

2015

Country migrations to Krakow in 2011

2011Introduction of SAP HCM as the ERP

2012 complain about poor service

2013 Service sent back to some countries due to poor performance in the hub

2014 Service model redesigned

12/17/2015 4

Dr. Edwards Deming

12/17/2015 4

Are these symptoms familiar?

We start feeling not so good:

• Weird comments about the service (far away on a distant land...)

• KPIs and scorecards with strange trends (volumes with big variation)

• Inconsistent / incomplete master data

• Processes not followed or many ways of doing the same thing

• Stiff expensive ERP systems that can't adjust to business needs

• Atmosphere of uncertainty, high turnover

• Low customer satisfaction scores

• ...

12/17/2015 6

Is time to ask some questions...

How are we fulfilling the

expectations?

Pretty good -end

Thanks

Not muchDo we know

why?

Yes End

Well, NoTime to step

back

12/17/2015 7

Question of value for whom

What is Value? • A value is defined by the value receiver not by

the value creator

• Stakeholders: employees, executives, internal

customers, vendors, have different defintions

of value

• Cost, precision, compliance, accuracy,

satisfaction, alignment, consolidation, etc. Value

can have many strings

How to know the Value?• Know your key and main stakeholders and

what are their needs. If you don't know, just ask.

• Know your operating model and service

• Destil a stakeholder / customer oriented value

proposition

The Value of HRS EMEA is to support the operational efficiency strategy of

Electrolux and actively contribute to the HR People Strategy

12/17/2015 8

Chaos and where to start?

Vendors

Process B

Skills

Turnover

Budget

12/17/2015 9

Not Rocket ScienceExpectations driven approach

Problems Funnel

Value Proposition

Expectations

AnalysisKey Evidences

& Problems

Identification of

Solutions

Plan (short

and long)

Solutions Funnel

12/17/2015 10

The “Attractive Quality” Model or Kano Model

Kano model is useful in gaining understanding of customer’s expectationsOr needs

1. 3 levels of customer expectations

2. More doesn't necessarily means better

3. Expectations changes over time

12/17/2015 11

ExpectationsAnalysis

The Attractive Quality Model or Kano Model

Expectations Satisfaction reaction Examples (usually)

Basic Doesn't increase satisfaction,

only increases dissatisfaction

Clean Bedroom

Baggage arrival

Performance Increases or decreases

satisfaction proportionally

Bank transactions processing

time

Hotel room rate

Delighters Highly increases satisfaction if

in place and doesn't decrease

it if not

Car with lifetime warranty

Free upgrade to Business

Class

Customer Satisfaction depends on the fulfilment of 3 types of expectations/needs

12/17/2015 12


From Stakeholders Analysis to clarity on expectations

Stakeholders Mapping1. List all stakeholders2. Classify them by key and main

3. Map them from interest and power expectations

4. Address Key Stakeholders first5. Stakeholders are dynamic (can

change over time)

Key Stakeholders

Initial Assessment1. Get mandate from you sponsor2. Carefully planed (go trough the

official channels)3. Focus on individuals not groups

4. Focus on what is happening, examples, open questions

5. Get your first assessment6. Prepare second round

Build your Kano Questionnaire1. Brainstorming list of areas and

attributes/features

2. Develop Functional and dysfunctional questions

3. Do a trial run

Evaluate Stakeholders Requirements1. Develop Stakeholder Expectation Matrix2. Split also by key and main stakeholders

3. Prioritize the expectations and service attributes to address

Evaluation Stakeholders Requirements

C.E A M O R Q I Total Grade

1 2 3 16 2 23 O

2 5 4 2 12 23 I

3 3 15 1 1 3 23 M

4 5 5 8 1 4 23 O

5 16 2 1 2 2 23 A

Service Attribute is:

A: Attractive R: Reverse O: One Dimension

M: Must-be I: Indiferent Q: Questionable Result

12/17/2015 13


Group stakeholders, for later

• Sponsor / C-level (Key)

• HR Business Partners (Key and Main)

• Line Managers (Main)

• HR Executives (Key)

• Center Of Expertise (Key or Main)

• Supplier / partner – optional

• ...

12/17/2015 14


Initial Assessment Example of some comments

Stakeholders Comments* Name Key Main

Dimension Capability

“I am the HR Group responsible for ... and there

is some people there in Poland doing some stuff

on my area. I really don’t know what they are

doing but they are nice people.”

John K Service Service

relationship

(service

catalogue)

Is too expensive and I’m planning to stop

approving the invoices

Maria M Results Cost

management

(Cost allocation)

“I am a small country responsible and I want

more services from you. I don't know what but

maybe payroll”

Pawel M Process Process Offering

(small countries)

“Our Headcount calculation is crap and takes

ages. If I need Headcount figures for my business

need to go to controllers. Imagine that I needed to

ask HR for Finance data...”

Theresa K Process Process

Management

(headcount

reporting)

* Excerpt from Stakeholders feedback

Service relationshipProcess Management

Capabilities

Questionnaire

12/17/2015 15


Expectations Analysis and Plot

Step 1 Questionnaire

Dysf

un

ctio

na

l

q1a - The fact that we have a

limited offer to light countries is

something that you:

1. like it that way

2. It expect to be that way

3. I'm neutral

4. I can accept that way

5. I dislike that way

Fu

nct

ion

al

q1b - The fact that we have the

same offer to light countries as

to big countries is something

that you:

1. like it that way

2. It expect be that way

3. I'm neutral

4. I can accept that way

5. I dislike that way

Step 2 Evaluation (Importance Grid)

Customer Expectations

Dysfunctional (negative)

1 2 3 4 5

Like Expect Neutral Accept Dislike

Fu

nct

ion

al

(po

siti

ve

) 1 – LikeQuestionable Attractive Attractive Attractive

One-

Dimensional

2 – ExpectReverse Indifferent Indifferent Indifferent

Must-be

X

3 - Neutral Reverse Indifferent Indifferent Indifferent Must-be

4 – AcceptReverse Indifferent Indifferent Indifferent Must-be

5 - Dislike Reverse Reverse Reverse Reverse

One-

Dimensional

Expectation A O M I R QTotal Category

Light Countries Extended

Support1 1 M

Performance reviews

Headcount reliability

Step 3 Results

12/17/2015 16


Some take from the experiment(Key Stakeholders)

Expectation A O M I R QTotal Category

HRS Induction Program for New

HR BPs2 1 10 5 18 M

Published Service Catalogue 8 3 2 5 18 A

Headcount 99% correct (OM,

ABS, MBS)13 5 18 O

Speed of acknowledge the

Service request < 4 hours4 8 5 1 18 O

12/17/2015 17


Prioritization of attributes

All Key Stakeholders must-be and one dimensional

attributes were considered for the next step

All Main Stakeholders must-be attributes were considered for next step

All attractive attributes were evaluated based on

complexity

25 attributes total

10 attributes considered

for next phase

Sta

bili

zation



1 2 3 16 2 23 O

2 5 4 2 12 23 I

3 3 15 1 1 3 23 M

4 5 5 8 1 4 23 O

5 16 2 1 2 2 23 A






1 2 3 16 2 23 O

2 5 4 2 12 23 I

3 3 15 1 1 3 23 M

4 5 5 8 1 4 23 O

5 16 2 1 2 2 23 A




12/17/2015 18

Key Evidences& Problems

Slide about solutions

25 attributes total

10 attributes considered for

next phase

1. Headcount reports

need to be at least

99% reliable on total

and unit level

•Between 97% and 100% on unit, ABS and MBS•Solid upstream processes linked with IT processes

Key Findings &Validation

•95% total headcount precision (compared with payroll data)•90% ABS and MBS precision

Expectation(example)

Current status

Data Evidence

What’s the best practice

•Standard Hiring and Exit process not followed across Europe. Strong impact in HC

12/17/2015 19

Key Evidences& Problems

We had 2 big questions:

12/17/2015 19

Do we address every single service

expectations with individual initiatives?

Do we group all expectations findings and data to find the

best solutions?

Identification of Solutions

Grouping findings, problems and recommendations

Best

Practice

Data

Evidences

Status

Key Findings Clustered Key Problems Solutions

12/17/2015 21


HR Services Europe EvolutionHigh Level Assessment

Key Findings Clustered

Units works in functional and cluster silos

SolutionKey Problems

1. Individual knowledge rather than team knowledge

2. HR BPs, COEs unclear about who is doing what

and the cost of service. Multiple points of contacts

3. Inconsistent and fragmented processes (poor

processes interfaces). Poor interfaces

4. Workload not balanced. High turnover and low

morale. Service continuity at risk

5. Some process knowledge is not documented

6. …

Several HRS scope changes along the years

Inconsistent SAP HR Maintenance

Inexistent interaction with customer on regular service performance

…

Define the HRS Value, Redesign the HRS Model

Standardize HRS processes

…

Improve upstream SAP processes and governance (hiring, transfers, leavings)

Clarify HR and allocation model to countries

Standard Operations Procedures quality review Q

uic

k W

ins

En

ha

nce

me

nt

12/17/2015 22


Expectations correlation with the solutionsContribution Matrix

12/17/2015

S1 S2 S3 …

Customer

Expectations 1

Customer

Expectations 2

Customer

Expectations 3

Customer

Expectations 4

12/17/2015 23


HR Services Europe Evolution3 Years High Level Roadmap

23

Clarify Simplify Optimize

FOCUS AREAS

1. Assess HRS model and performance

2.Create clear HRS vision and blueprint

3.Gain senior leadership support for vision

4.Quick wins

FOCUS AREAS

1. Establish standard service portfolio & performance

2.Deploy service consistency across geographies and sectors (SN+SPA)

3.Introduce process automations (SN)

4.Improve service levels

FOCUS AREAS

1. Increase efficiency by reducing non value activities

2.Increase scope

3.Increase process automations

4.Improve the user experience

Legend: Completed / In Progress

Plan (short

and long)

Solution Implementation

S3 - Clarify HR and allocation model to countries

Initiative Owner HRS Management

Deliverables

quality

Evaluation against

the expectation

12/17/2015 25

Plan (short and long)

Some results

25

Metrics

3.2

3.43.5

3.78 3.83.94

2013 Q1 Q2 Q4 Q1 Q3

Customer Satisfaction

23.1%

52.6%

20.2%

2.9% 1.2%

Very

satisfactory

Satisfactory

Sufficient

Dissatisfactory

Very

dissatisfactory

Metrics (Krakow)

Q1 Q2 Q3 Q4 Q1 Q2 Q3

Turnover HRS Quarterly

Turnover of HRS Quarterly Krakow

Jan Feb Mar April May June July

HRS Headcount

Heacount HRS (Krakow) Heacount HRS (Localised)

Some recommendation

• Use the concept and adjust to you reality

• Some key expectations might be left out

• The elaboration of questions is key. Make a second round in case questions are badly

formulated

• Kano Model can be used in many other VOC exercises

• The contribution of the team is key for understanding what needs to be done

• Inform your stakeholders about your conclusions and plans

• Don’t leave your intuition out

12/17/2015 26