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Things Go Better with Governance:Coca-Cola’s Key Considerations for Establishing Governance

16th HR Shared Services & Outsourcing Summit

October 16, 2014

Karla Younger, VP HR ServicesBeth Cord, Sr. Mgr., Support ServicesRick Baron, Sr. Mgr., HR Operations

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Today’s Agenda

• Introductions• About Coca-Cola Refreshments• Session Objectives• What is Governance in Shared

Services?• The Need for a Shared Services

Governance Program• Governance Structure and

Accountabilities• Service Level Agreements/Operating

Level Agreements• Change Management &

Communications• Coca-Cola’s Lessons Learned• Questions & Answers

Introductions• Karla Younger, Vice-President, Human Resources Shared

Services Coca-Cola Refreshments, Brandon, Florida

• Beth A. Cord, Senior Manager, Support Services, Human Resources Shared Services, Coca-Cola Refreshments, Brandon, Florida

• Rick Baron, Senior Manager, Human Resources Operations, Human Resources Shared Services, Coca-Cola Refreshments, Brandon, Florida

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About The Coca-Cola Company

• http://www.coca-colacompany.com/press-center/a-v-library/ko101-bc3663099095001

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HR Services

Customer Service▪ HR query

resolution▪ Specialized pods▪ Self service

navigation▪ Administrative

HR functions▪ Records

Management

Business Relationship▪ Connection to

business▪ Voice of

customer▪ Drive service

delivery model improvements

▪ Address complex issues

Payroll Operations▪ Full in-house

payroll processing

▪ Garnishments▪ Deductions▪ Overpayments▪ Time admin▪ Payroll audits &

compliance

HR Operations▪ Org management▪ HR master data▪ Severance

fulfillment▪ Talent Acquisition

Services▪ Benefits &

Pension▪ Leave Admin▪ Accommodations

HR Services Support▪ Quality

Assurance▪ Workforce

Mgmt.▪ Knowledge

Mgmt.▪ HR Services

projects & reporting

▪ Governance

North America HR Shared Services

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Customer Service Key Stats

2013 HighlightsDirect Access

Inquiry volume

▪ > 498k inquiries 2% PYR

▪ 57% phone

▪ 29% email

▪ 10% web request

▪ 4% fax/mail

▪ ~ 60% first call resolved

▪ 2.2 days to resolve escalated inquiries

Service center operations 8am – 8pm Eastern North America support

(48 states and Canada) Multiple language

support: English, Spanish, French

Self Service

▪ > 91k ESS - 4% PYR

▪ > 34k MSS - 42% PYR

▪ > 4.8M portal hits-24% PYR

▪ 94% direct deposit

▪ Electronic:

▪ Payslip: 92%

▪ W-2’s: 39%

▪ T-4’s: 26%

Interactive IVR

▪ >24k candidate/recruiting vendor inquiries resolved by IVR selection

▪ >78k Help Desk Transfers

▪ >35k 401K/ESIP Transfers

Notable Statistics

▪ >68k employees

▪ >700 summary plan descriptions

▪ >1.68M payroll checks produced

▪ ~1,900 severance packages

▪ >18k hire actions ▪ 4.9k Internal▪ 13.8k External

Session Objectives

• To familiarize attendees with the basic elements of shared services governance using Coca-Cola’s experience as an example

• To discuss and evaluate effective governance practices• To present and discuss the installation of a formal

governance program• To discuss special considerations surrounding

stakeholdering, change management, and communications• To present Coca-Cola’s HR Shared Services governance

journey and discuss lessons learned

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What is Governance in Shared Services?

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So……

Shared Services Governance Defined

• “The purpose of the governance model deliverable is to define how decisions about the Shared Services Organization will be made within the context of the broader organizational environment. An effective governance organization promotes accountability, stakeholder participation, and defined integration points for decision-making.”

» University of Texas at Austin

• The governance framework establishes the roles and responsibilities for the Shared Services Governance Board, advisory groups, the staff liaison, service providers, and senior managers. The framework for shared services provides the structure required for financial management and business operations, decision-making authorities, service delivery, reporting and evaluation of services, and internal controls.

» Minnesota Department of Natural Resources

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So why do we need Governance in Shared Services?• GROUP EXERCISE:

– Introduce yourselves within your group and share what is your favorite Coca-Cola Product

– Appoint a Leader and Scribe– As a group, list the top three reasons why we need

governance in Shared Services– Leaders please be prepared to present your list the

entire group– Exercise time: 7 minutes

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Checkpoint:

• At this time how many of you have a Shared Services Governance Program?

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Think about the following questions:• Within your Shared Services Center does anyone:

– Currently decide what work comes into Shared Services?– Manage issues and problems that arise?– Stay connected to your customers and stakeholders?– Measure what you’re doing?

• Did you answer yes to one or more of these questions?

– Then you have a governance program– But perhaps haven't formalized it yet

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A Typical Governance Structure and Accountabilities include:• Work Intake• Issue Management and Resolution• Customer Advisory• Operational Monitoring and Measuring• Communications and Change Management• Processes, Routines, and Tracking Tools• Defined Roles and Responsibilities

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Governance Framework

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Work Intake

Synergy Meetings

Operational Reviews

Customer Advisory Council

Governance Owners

Communications

Technology and Issue

Management

Work Intake• Coca-Cola’s Original State

– Business leaders contacting Shared Services to move work– No assessments as to work appropriateness or budget

• Simply stated…Work Intake ...• Decides whether work will come into Shared Services• Deciphers what resources will be needed• Determines whether it’s within the scope of Shared Services• Confirms it is within the Vision and Mission of Shared Services• Concludes it is “right” for the business

• Process Objectives:– Prioritize requests to take on new work into the service center – Provide a clear mechanism in which to shift work between departments.

• Triggers:– Requests from COEs– Government regulation or mandate– Leadership mandate

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Work Intake Process– A “Work Intake” template is completed by the Shared Services

Leader making the request for work intake• This template includes rationale, scope of work, costing,

implementation plan, resources, etc.– A Committee then makes a recommendation to senior

leadership whether to consider the new work– Senior leadership reviews the request and approves or

escalates are required– A Project Management methodology is utilized to onboard the

related work

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Issue/Technology Management• Coca-Cola’s Original State

– Business leaders operating independently when examining new technologies or researching issues on their own

– No collective approach to systemic issues

• Simply stated….Work Intake is..– Process used to request, communicate and document changes or modifications

to SAP, Telephony, or other applications. The change request process begins when a change requirement is identified or when there are operational issues with the existing technologies.

• Process Objectives:– Prioritize change requests to existing ERP, Telephony, or other applications– Provide clear mechanism for resolving technology issues which arise at any

level

• Triggers:– Requests for enhancements or customizations– Operational problem experienced – A change in or new Governmental regulations– New initiatives or functionalities with a technical requirement

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Issue Management can also be used to track vendor SLAs

Voice of the Customer

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• GROUP EXERCISE:– Appoint a Leader and Scribe– As a group, Think of the interactions you have set up to

assess customer feedback– Leaders please be prepared to present your list the

entire group– Exercise time: 7 minutes

Customer Advisory Council• Coca-Cola’s Original State

– Informal communications channels coming to different levels of leadership from associates, HR Services Supervisors, HR COEs, HRBPs, and leaders

– Mostly anecdotal information with little consistency or theme– “Squeaky Wheel” served first

• Simply stated…the Customer Advisory Council include…– A group of HR Business Partners and HR COE members who meet regularly to:

• Review service performance – “check-in”• Discuss outstanding and new issues• New processes, procedures, etc. – sounding board

• Process Objectives– To gather an accurate view of the customer experience

• Triggers– Regular routine meetings and mechanisms for follow-up

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Synergy Meetings• Coca-Cola’s Original State

– Informal communications channels coming to different levels of leadership from HR Services Associates and Supervisors

– Mostly anecdotal information with little consistency or theme– “Squeaky Wheel” served first

• Simply stated…Synergy Meetings include…– A group of HR Services Supervisors and Leads who meet regularly to:

• Review service performance • Identify system issues • Work to resolve interdepartmental issues• Escalate issues to other Governance groups as required• New processes, procedures, etc. – sounding board

• Process Objectives– To gather an accurate view of the operations

• Triggers– Regular routine meetings and mechanisms for follow-up

• Format– Front-line leadership – Meet monthly 21

Operational Monitoring• Coca-Cola’s Original State

– HR Services leaders defining their own view of measures and metrics– No alignment of measures against true performance

• Simply stated…Operational Monitoring includes ...– Reviewing performance against established metrics and goals– Identifying service downfalls and action plans to improve– Drive collaboration and optimal performance– Opportunity for growth and development of leadership capability

• Process Objectives (Tools):– Quarterly dashboards, metrics, and insights– Customer Satisfaction results and related action plans– Project updates– Other news or updates to share

• Triggers:– Routines of measure and review to include:

• Monthly within HR Services• Monthly HR Services Synergy meeting• Quarterly with HRLT, Finance, Legal• Quarterly with Service Providers

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Communication and Change Management

• Coca-Cola’s Original State– Business leaders operating independently with or without using formal

communications channels.– Mixed or conflicting messaging– No communications strategy or regular routines for communication

• Simply stated…Work Intake is..– Process used to identify key stakeholders and the necessary training, communications

and change management initiatives required to support the work of HR Services

• Process Objectives:– Clearly articulate what is to be communicated and the level of change required– Identify activities and events that HR Services will communicate and build

commitment to change– Identify, by audience, measures and review mechanisms that will enhance the

commitment to change

• Triggers:– System operational issues– Contact Center or Functional Specialist organization performance issue– HR Leader or Business Partner requests– New initiatives and functionalities– Policy changes– Governmental regulations

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Governance Committees

• Work Intake• Issue/Technology Management and Resolution • Customer Advisory• Communications and Change Management

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• Committee Structure includes:– Chair– Three leaders

– HR Services Functional Departments– COEs (i.e. Benefits, HR Technology, Employee Relations)– Internal/External Customers

– Meet at least bi-weekly– Include a formal agenda– Activity tracking with Sharepoint

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What other Committees might considered?• GROUP EXERCISE:

– Appoint a Leader and Scribe– As a group, discuss what committees, groups, or other

meeting forums could be used as an alternative?– Leaders please be prepared to present your top three

list the entire group– Exercise time: 7 minutes

• Work Intake• Issue Management and Resolution• Customer Advisory Council• Supervisor Synergy Meetings

SLA’s & OLA’s

• Service Level Agreement (SLA): defined and agreed upon levels of service provided to customers. Usually has chargeback and penalty implications.

• Operating Level Agreements (OLA): define how parties will interact with each other in order to maintain performance. No chargeback or penalty implications.

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Change Management Exercise:

• What resistance or challenges could you face when implementing a Governance program?

• What strategies can you use to address this resistance?

• Activity:– Appoint a Leader and Scribe– Leaders please be prepared to present your top three list to the entire group– Exercise time: 10 minutes

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Governance Lessons Learned

• Don’t wait to have it perfect, you may need to start small and build

• ‘What gets measured gets done’• Build credibility and trust with data and open dialogue• Evaluate what structure and framework will best meet your

needs• Ask for input and involve others• Ensure you have a form of issue tracking to create

accountability among members and teams

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What are your Key Take Aways?• GROUP EXERCISE:

– Appoint a Leader and Scribe– As a group, list either what you plan to do in the coming

weeks to either establish or improve your shared services function or what you learned from today’s workshop.

– Leaders please be prepared to present your list the entire group

– Exercise time: 7 minutes

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Questions?

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Thank You!

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Have an refreshing and exhilarating remainder of the conference!!