Defining Quality and Efficiency Metrics in an HR SSC July 24, 2013

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Housekeeping

• This webinar is approved for 1.0 hours of recertification credit.

• You MUST attend for the entire 60 minutes to receive credit.

• Emily Lewis (elewis@dovetailsoftware.com) will email you the program id # within 24 hours.

• The webinar is being recorded and the slides and recorded presentation will be emailed to you as well.

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Who is Dovetail?

• Delivers SaaS-based HR Case Management & Help Desk solutions

• Helps HR pros better communicate with each other & employees

• Supports HR Pros through education and technology

@dovetail

Dwane Lay, SPHR Head of HR Process Design

Dovetail Software

@DwaneLay

Today’s Speaker:

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Objectives and Expectations

By the end of this session, you will:

• Understand how to determine the right metrics for your HRSSC

• Understand your options for tracking and reporting on these metrics

• Have options for pursuing continuous improvement in these areas

Phase One

Defining the Metrics

CUSTOMERS

INTERNAL EXTERNAL

Voice Of the Customer (VOC)

Quality Delivery

Cost

Service and Safety

Corporate Responsibility

Critical to Quality vs Critical to Process

Parts not delivered on

time

24 hour delivery

95% in stock

Payments not delivered on

time

Invoices issued in one week or less

Delivery parameters not meeting

needs

Billing process

inefficient

VOC

Issue

CTQ

VOB

Issue

CTP

Identify CTQ Components

Internal and External Data

Listening Research

Company

Information

Industry Experts

Competitors

Customer

Service Team

Sales Team

Delivery Team

Customer Feedback

Focus Groups

Interviews

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Identifying Your Stakeholders

Stakeholder List Example

Stakeholders Influence Involvement

StakeholderInfluence or impact on

project outcome

How might they be involved in the current initiative? What will/should they do differently as a

result of the initiative?

Champion Critical Attend gate reviews. Approve decisions/design. Keep it on the agenda for

SLT.

Process Owner Critical Manage resources. Participate in team decisions. Demand results from

week to week.

IT (programmers) Significant Subject matter experts. Implement many changes. Change the way they

report outages & problems. Need to be more proactive in root cause

identification and resolution

HR Bus. Partners Moderate Advise on HR implications. Help coordinate training needs

Engineering (all) Significant Change the way they request and process drawing changes.

ISC (buyers) Significant Subject matter experts. Coordinate work with vendors who will need to

submit new bids.

Payroll Minimal Need data from them.

Legal/Ethics Minimal Need to get okay on some of the changes to vendor contracts

Business Strategy

HR Strategy

A series of activities that transform a set of inputs into a specific set of outputs. Everything we do is a process.

PROCESS

Output: Goods, Services, Products

Function: The steps that transform the Inputs

Inputs: Equipment, Process, People, Environment, Materials, Management

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Y to X Tree - Applying LSS to HR

Apply LSS Principles

LSS Metrics

LSS Deployment Sessions

LSS ROI

LSS Belt Certifications

Y X – Level 1 X – Level 2

LSS Champion Certification

Number of BB/GB Projects Completed

Project Tracking Mechanism

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Y to X Tree - Revenue Growth +15%

Y X – Level 1 X – Level 2

Revenue Growth +15%

Service Personnel

Sales Personnel

Retention of top talent

Sales training for new/existing team

Finance Personnel

Revised comp plan to emphasize revenue

Exit plan for bottom 10%

Y

21

24

Phase Two

Leveraging Technology

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Central Tendency

Mean

Median

Mode

Range

Standard Deviation

Mean

X =å (X1 + X2 + X3...)

n

Average

1+1+1+1+2+66 Average = 6

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Mean

2 3 4 4 5 6 6 7 54

10

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Median

2 3 4 4 5 22 32 32 55

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Mode

2 3 4 4 5 22 32 32 55

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Max

2 3 4 4 5 22 32 32 55

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Min

2 3 4 4 5 22 32 32 55

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Range

R = Max - Min

R = 55 – 2 = 53

2 3 4 4 5 22 32 32 55

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Range

• P95 - top 95 % value in the data set

• P5 - bottom 5%value in the data set

• P95 – P5 - Range of the data set that ignores the top 5% and bottom 5% of the values (requires at least 20 data points)

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Standard Deviation

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Standard Deviation

N

N

iix

1

2average

Sigma

Sample Line Chart

16

17

18

19

20

21

22

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Month

Me

asu

reSample Bar Chart

16

17

18

19

20

21

22

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Month

Me

asu

re

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Seeking Process Stability

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Line Chart

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Bar Chart

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Pareto Chart

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Histogram

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Histogram: Example

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Information Delivery Options

• Automated Emails

–Efficient, consistent, dependable

–No context, outliers, setup

• Ad hoc reporting

–Control, context, focused

–Manual, reactive, limited

• Individual delivery

–Detailed, context, explanations

–Manual, labor intensive, static

Phase Three

Continuous Improvement

Value Added Parameters

Resumes Interviews

Non-Value Added Waiting

Approvals Forms

TRANSPORTATION

INVENTORY

MOVEMENT

WAITING

OVERPRODUCTION

OVERPROCESSING

DEFECTS

UNDERUSED

PEOPLE

Well there’s your problem.

Chart of Electricity Consuming Devices

$90.00

$80.00

$70.00

$60.00

$50.00

$40.00

$30.00

$20.00

$10.00

Y = f(X1, X2, X3…)

Impact Category Definition

Net Hard Savings Total estimated hard savings less investment to implement

Number of Task Owners

Total number of people performing the job function within the impacted area

Impact Scope Area of project impact

HR Index Score How closely related is the project to strategic goals?

Effort Category Definition

Project Expense (T&E)

Expected spend on travel to bring the project team together to execute the project. Does not include implementation costs

Time Expected time to execute project and begin realizing savings

Functions Involved Number of functions that are responsible to execute the project and capture the savings

Systems Impact/Change

Impact the project implementation will have on any of the HR systems or applications

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Fishbone/Ishikawa/Cause and Effect Diagram

• Identify contributing causes of a problem

• Visual

• Organizes around categories

• Systems thinking

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Fishbone Construction

Identify the problem to be solved

Top Talent Leaves

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Fishbone Construction

Define the categories (bones) of the causes People

Material

Process

Environment Equipment Management

Top Talent Leaves

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Fishbone Construction

Construct potential cause detail

Compensation

Training

Culture

Product

Stay Interview Tools

Strategy

Leaders

Team

Projects Recognition

Tech

Territory Turnover

Top Talent Leaves

People

Material

Process

Environment Equipment Management

Peers

Job Market

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Fishbone Construction

Prioritize causes for investigation

Compensation

Training

Culture

Product

Stay Interview Tools

Strategy

Leaders

Team

Projects Recognition

Tech

Territory Turnover

Top Talent Leaves

People

Material

Process

Environment Equipment Management

Peers

Job Market

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5 Whys

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5 Whys

• Problem: Delays in processing FMLA requests.

• Why? Vendor not timely in processing requests.

• Why? Forms are not correctly completed in 60% of cases.

• Why? Instructions are unclear.

• Why? Were translated from French.

• Why? No English versions were created by vendor.

• Solution: Create new English version with clear instructions.

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Summary

• Understand how to determine the right metrics for your HRSSC

–Stakeholder concerns, CTQ, CTP, Y= f(X)

• Understand your options for tracking and reporting on these metrics

–Measurements, graphs and uses

• Have options for pursuing continuous improvement in these areas

–Pareto chart, impact/effort matrix, fishbone diagrams, 5 whys

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What’s Next

Upcoming Event:

HRSSI Executive Retreat July 29th – July 31st, 2013

Commerce Club, Atlanta, GA

www.hrssi.net

Upcoming Webinar:

Making Shared Services Work: Keys to Setting up

your HR Services

August 15th, 12:30 – 1:30 CDT

www.dovetailsoftware.com/hr-webinars

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Thank You

Dovetail Software

(800) 684-2055

@dovetail

dovetailsoftware.com/dovetailconnectblog

dovetailsoftware.com

info@dovetailsoftware.com