March 2012

Creating a Multi-Functional Shared Services Model to Enable Rapid Response

to Ever-Changing Business Needs

An Overview of Kelly’s

Operations Shared Services Center

Agenda

• Kelly Services Overview

• Kelly’s Journey – Development of a Multi-Functional Shared Services Model

– The Case for Change

– Shared Services’ Value Drivers

– The New Operating Model

– Implementation Approach

• OSSC Business Model

– Mission

– People

– Process/Components

– Technology

• Value to Business – Case Studies/Success Stories

• Challenges/Lessons Learned

• Questions

Proprietary and Confidential to Kelly Services, Inc. • 2

Kelly Services Overview

• Founder of the temporary staffing industry

– Strong financial position in the industry

• $5.6B in Revenue (2011)

– Company-owned and -operated offices worldwide with fully networked operating system

• Kelly offers a comprehensive array of outsourcing and consulting services as well as world class staffing on a temporary, temporary-to-hire and direct-hire basis

• Industry-leading quality management system – Kelly Quality Management System (KQMS)

– Compliance of all Kelly locations

– Best-in-class programs

– Fully integrated total quality management system

Kelly Services, Inc.

530,000 Temps | 7,900 FTEs

AMERICAS EMEA APAC

40+ Countries | 1,500 Branches

Commercial, Professional, Technical

OUTSOURCING & CONSULTING GROUP

• Contingent Workforce Outsourcing • HR Consulting • Business Process Outsourcing (BPO) • Recruitment Process Outsourcing (RPO) • Independent Contractor Services • Executive Outplacement

TECHNOLOGY PARTNERS

Fieldglass | Peoplefluent | Provade| IQN

Kelly’s Journey Development of a Multi-Functional

Shared Service Center

The Case for Change at Kelly

•Less time to focus on core, revenue-generating activities •“Filling and billing” •Candidate and customer care •Compliance challenges

Increased complexity • Range of tasks required • Customer servicing requirements • Number and variety of technologies/systems • Regulatory requirements (e.g., work eligibility verification) • Processes (e.g., background screening)

Performance Gap

3.5 FTEs

1.7 FTEs

The Trend (Past 10-15 years) •Reduced Branch Headcount • Increased Complexity

Shared Service Value Drivers

Proprietary and Confidential to Kelly Services, Inc. • 6

• Key Kelly Value Drivers – Facilitate business growth – Improve customer/candidate experience – Reduce costs – Improved compliance to customer and regulatory

requirements

• Additional Benefits

– Standardize roles, processes, policies – Decreased organizational complexity/eliminate redundancy – Transforming/re-engineering processes

Sourcing Center

Contact Center

The Vision – A New Operating Model

Proprietary and Confidential to Kelly Services, Inc. • 7

Transaction Center

Staffing/OCG Operations/Service Delivery

Servicing Employees, Candidates, Customers, and Suppliers

High volume, high transaction, administrative tasks from operating divisions Op

erat

ion

s Sh

ared

Se

rvic

es C

ente

r

• Division of tasks between operating tiers • Focus/concentration on tasks leading to:

– Improved quality – Flexibility – Efficiencies – Economies of scale – Compliance

Product CoEs

Strategy/Branding/ Business Development

• In 2008, a project team prioritized a list of branch tasks to centralize

– Criteria:

• Frequency/Volume/Amount of time spent by Branch

• Financial Impact – Cost Savings/Revenue Generation

• Impact on Candidate/Customer Experience

• Impact on Compliance

• A bit of a haphazard implementation approach from 2009 - 2011

– OCG and Staffing initially worked independently building centralized

teams to execute prioritized tasks from Headquarters

– Simultaneously, “Lift and Shifts” of existing functions considered “red-

headed step-children” of other departments, i.e., Switchboard, Global

Mobility, eCenter

– Reactive builds of programs in response to new government

regulations and compliance gaps

• An intentional roadmap developed in December 2011

Proprietary and Confidential to Kelly Services, Inc. • 8

Implementation Approach

Evolution of Kelly’s Operations Shared Services Center

Proprietary and Confidential to Kelly Services, Inc. • 9

2008 2009 2010 2011 2012 • 4Q - First Level Canada Payroll Support Program

•First Level Payroll Support – US •Billing of Screenings •Kelly Switchboard •Order Entry

•Candidate Document Processing •First Level Technical Support (IT Help Desk) •Adverse Action Letters •Third Party Order Transactions •Data Integrity (Audit Function)

•Global Mobility Services •Screening Requests

•Centralized Sourcing •Customer Requirements Documentation Support •Healthcare Credentialing • NY Wage Theft Notification •CA Screening Notification •Screening Requests •PPO “Admin” Tasks •CWO “Admin” Tasks

READY, SET , GO!!!

Fragmented management of centralized

services

1Q - OSSC “officially” established as an entity

OSSC business model evolves and matures

Proven Model

Adding Value to Business

OSSC delivers

almost $1 million in savings to Business

OSSC Business Model People. Process. Technology.

OSSC Mission Statement

Proprietary and Confidential to Kelly Services, Inc. • 11

OSSC Business Model – People

• Flexible Staffing Model – 40% Full-Time Employees

– 60% Temporary Employees; many part-time

• Floater Pool – Skilled group of specialists trained

on multiple programs

• Competency Profile – Customer Service Experience/Orientation

– Continuous Improvement Focus/Mindset

– Technology-Adept

– Quality/Metrics Driven

– Flexibility and Adaptability

• Business Owner Role – Represent the (internal) “customer”

for OSSC program(s)

Proprietary and Confidential to Kelly Services, Inc. • 12

Operations Shared Services Center (OSSC) - Functional Structure

OSSC Vendor Management Office (for Operations Supply Chain Providers)

Shared Services Transaction Center “Captive” SSC executing Kelly-specific transactional processes for Kelly Divisions

Shared Services Knowledge Center “Captive” SSC executing Kelly-specific knowledge-based processes for Kelly Divisions

Shared Services Contact Center Outsourced Contact Center Solution – Services provided by KellyConnect

Employee Service Center

Field Service Center IT Service Desk Supplier Service Center

HQ Switchboard

Global Mobility Services

Proprietary and Confidential to Kelly Services, Inc. • 13

• FTE International Assignment/Travel • KTE International Travel • Global Mobility Consulting Services

Shared Services Sourcing Center “Captive” SSC executing Kelly-specific sourcing services for Kelly Divisions

Sourcing Services

• Billing of Screenings • Adverse Action Letters • Data Integrity • NY Wage Theft Program

• Candidate Document Processing • I-9 Processing • Screening Requests • PPO Admin • CWO Admin

• Third Party Order Transactions • Order Entry/Compliance • Healthcare Credentialing • ESPM/CAD Maintenance

OSSC Business Model – Process/Components

• Clearly Defined Scope/Transactions

• Transaction-Based Pricing

• Detailed Statements of Work for each program

• Forecasting Process/Tool

• Weekly/Monthly Operations Review Meetings with Business Owners

• Visibility into Performance via Monthly Dashboards and Quarterly Meetings /Business Reviews

• Voice of the Customer Engagement Methodology

• Proactive Focus on Continuous Improvement/Innovation

Proprietary and Confidential to Kelly Services, Inc. • 14

Sample Performance Dashboard

Proprietary and Confidential to Kelly Services, Inc. • 15 The goal for Order Entry is 100%, which we've been hitting each month of the year (this is represented by the

black line in the chart above).

31 34

29 26

29 27 22

28

35 31

0

2000

4000

6000

8000

0

10

20

30

40

Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11

Tran

sact

ion

Vo

lum

e

OP

Tim

e (

min

ute

s)

Order Processing Time

OP Transaction Volume Order Processing Time Goal

7.73 9.09 9.45 12.04 6.30 3.72 2.21

5.67 5.91 3.93

0

500

1000

1500

2000

0

10

20

30

40

50

60

Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11

PO

Tim

e (

ho

urs

)

PO Changes Processing Time

PO Changes Transaction Vol PO Changes Proc Time Goal

1.70 1.17

1.53

0.79

1.83 2.07 1.77

2.30 2.54

1.61

0

500

1000

1500

2000

0.0

1.0

2.0

3.0

4.0

5.0

Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11Kfi

rst

Tim

e (

ho

urs

)

Kfirst Processing Time

Kfirst Transaction Volume Kfirst Process Time Goal

29 29 25

20 24

21 17

21

28 26

0

1000

2000

3000

4000

0

10

20

30

40

Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11

SP T

ime

(m

inu

tes)

Submittal Processing Time

Submittal Transaction Volume Submittal Processing Time Goal

46 62 68

41 23 20 21

59

81

55

0

50

100

150

Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11

IP T

ime

(m

inu

tes)

Interview Processing Time

Interview Processing Time Goal

0

2000

4000

6000

8000

50%60%70%80%90%

100%110%120%

Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11

Ord

er

Entr

y %

Order Entry

Order Entry - Transaction Volume Order Entry %

OSSC Business Model – Technology

• Salesforce

– Activity Tracking Tool

– Automatically generates performance dashboards and charge-backs Enables escalation to “n”-level support groups

– Enables OSSC to provide critical data analytics to Business to drive process improvements

• Emerald Software

– Candidate document processing tool

• Bullhorn (Applicant Tracking System)

• Kelly StaffNet (Front Office System)

• SharePoint

• KellyWeb (Company Intranet)

• HDI Survey Tool (Contact Center Survey Tool)

• Docusign (Electronic Signature Tool)

Proprietary and Confidential to Kelly Services, Inc. • 16

OSSC Brings Technology to the Table AND Adapts to/Uses Our Customer’s Technology

OSSC Value to Business – Case Studies/Success Stories

• Business Objective: Increased Profitability – Situation: Payroll calls from employees ranked highest on Branch Task List -

significant time NOT being spent on revenue-generating activities

– Solution: Developed Employee Service Center to provide focused first-level payroll support to employees and remove burden from branch

– Results: Significant branch time savings – 18 FTE across field organization

– BONUS! Improved employee experience - Payroll support previously ranked lowest on sat survey – ranked highest post deployment

• Business Objective: Improved Compliance – Situation: Customer audit revealed gaps in compliance to screening

requirements; immediate fix required to maintain customer relationship

– Solution: Centralized initiation of background screens into OSSC; Program built and launched in 3 weeks

– Results: 100% compliance to screening requirements

– BONUS! Significant branch time savings (i.e., enable revenue

growth via increased focus on revenue-generating activities)

Proprietary and Confidential to Kelly Services, Inc. • 17

Challenges/Lessons Learned

Proprietary and Confidential to Kelly Services, Inc. • 18

– Do not underestimate the importance of change management practices

– Don’t “blur” the lines – be clear on roles and responsibilities between the Business and the SSC – maintain the integrity of the model

• Challenges

– Lack of awareness of the Business about Shared Services and

the OSSC operating model

– Fragmented approach to Program Management by Business

– Business typically does not have visibility into current state

costs/performance before moving a function into OSSC

• Lessons Learned – Strong executive sponsorship and governance is critical to

advancing a shared services strategy

Questions?