benchmarking solutions for hr

8/13/2019 Benchmarking Solutions for HR

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Management Consulting

Achieving High Performance through

Human Resources: The Value of

Accenture Benchmarking Solutions



2 Performing thebenchmarking

comparison

4 Trackingimprovements

over timeInsight to Action

1 Collecting

data

3 Identifying and

quantifying

improvement

opportunities

Benchmarking delivers three critical

benefits for private- and public-sector

organizations looking to improve the

performance of their HR function. Thefirst such benefit is a current-state

assessment of the organization’s HR

function. This assessment includes

a rigorous baseline of cost, quality

and cycle time; external and internal

comparisons (for example, by region

or business unit) of cost and perfor-

mance; and the identification of

meaningful gaps. The result of this

assessment is a better understanding

of the HR function’s cost and/or

performance drivers.

A second benefit of HR benchmarking

is a strong foundation for HR transfor-

mation programs. An effective

benchmarking initiative enables an

organization to more easily identify

and prioritize opportunities—by

process, region and cost driver—which,

in turn, results in more informed andrelevant improvement targets and a

stronger overall business case for the

transformation effort.

A third major benefit is a strong

basis for continuous improvement.

Benchmarking helps create or renew

a culture of managing by metrics

by enabling periodic measurement

against the initial baseline. Importantly,

this baseline assessment is process-

based, so it remains relevant regardlessof subsequent organizational changes.

3

Working in close collaboration

with an organization’s HR leadership,

Accenture’s skilled professionals use

the comprehensive assets of Accenture

Benchmarking Solutions to deliver a

detailed assessment of the HR function.

The Accenture team then helps the

organization translate insights from

the benchmarking analysis into an

actionable set of initiatives—supported

by a business case that addresses

shortcomings identified through the

benchmarking process—that help

drive high performance.

Accenture’s benchmarking process

involves four phases that help

organizations to discover, deliver and

maintain enhanced business value

from their HR function (Figure 1).

Why is HR benchmarking important?

Accenture Benchmarking Solutions:

from insight to action

Figure 1: Accenture Benchmarking Solutions helps HR organizationstranslate insight into action



Figure 2: Accenture Benchmarking Solutions covers all major HR processes across the HR life cycle

• Organization Management

• Recruiting and Deployment

• Performance and Development

• Learning

• Learning Administration

• Compensation Administration

• Rewards

• Knowledge Management

• Employee Services

• Employee Administration

• Payroll

• Pension and Benefit Administration

• Mobility Services

• HR Customer Management

• HR Information Management

• HR Operations

We begin the first phase by working

with executives to understand their

key objectives and determine the

scope of the benchmarking initiative

(for instance, the entire HR function,

specific business units or countries, or

certain processes). Next, we give theorganization a predefined template

to guide subsequent data-collection

activities. This template provides a

standardized and structured way of

collecting headcount, cost and perfor-

mance data across the HR life cycle.

(Figure 2).

The second phase entails a “deep-dive”

analysis of the cost, quality and cycle

time of the HR function’s operations,

which results in a median and quartileranking of the function against data

from global, cross-industry organizations

in the Accenture benchmarking database.

The Accenture team also conducts a

detailed qualitative assessment of the

function and root-cause analysis of its

performance. The output of this phase

is a report—tailored to the organiza-

tion’s specific situation—that provides

a clear picture of the function’s perfor-

mance relative to other organizationsin our benchmarking database or, if

part of the scope of the initiative, an

internal comparison of performance

among internal business units.

With an understanding of the func-

tion’s performance and the context in

which to understand that performance,

we next identify specific areas with

potential for improvement, identify

initiatives that may generate such

improvement, and quantify the potentialvalue of these initiatives to the orga-

nization. Importantly, we also provide

a road map that helps the organization

prioritize and execute these plans.

4

During the final phase of the bench-

marking effort, Accenture works with an

organization to establish an approach

it can use to continually assess its

performance against established base-

lines. We also can conduct periodic

benchmarking to determine whether theorganization is generating the desired

results from its improvement initiatives

and making progress toward its goals.

One of the major advantages of

Accenture Benchmarking Solutions is

its flexibility. It can be used in a variety

of settings to provide insights into a

wide range of challenges. The following

are just a few examples of how

different organizations have used

Accenture Benchmarking Solutionsto gain insight into improvement

opportunities in their HR function.



Case study: Assessing the HR function’s current stateand opportunities forimprovementWith a highly decentralized HR function

operating under a loose association of

HR departments, an insurance companywanted to understand its current HR

function’s efficiency, effectiveness and

strategic value compared with other

organizations delivering leading-practice

HR services.

The company used Accenture’s suite of

diagnostic tools—including Accenture

Benchmarking Solutions—to identify

opportunities to reduce HR and training

costs, understand where the function’s

more than 500 HR employees spendtheir time, and align HR roles to high-

value activities. Based on the analysis,

the company gained insight about

specific workforce activities that were

ineffective and inefficient—something

prior studies had not been able to do.

The diagnostic results further enabled

the company to determine how best

to align resources and correctly size

the organization, which executives

valued greatly and considered highly

differentiating.

Case study: Reducing HR headcount to deliver HR sustainabilityChallenged by a high-cost, low-value-

adding HR function, an energy company

mandated a reduction of HR headcount

by 30 percent and a drive toward a

sustainable HR operating model.

Using Accenture BenchmarkingSolutions, the company assessed and

validated the business case of imple-

menting a long-term HR transformation

program. Once the company understood

its HR baseline, it focused the bench-

marking analysis on key HR headcount

metrics at the process level. This

approach enabled HR leadership to

clearly identify and prioritize specificimprovement opportunities. They

then reinforced this analysis with an

in-depth internal benchmarking of

HR performance across the company’s

business units, which provided visibility

into targeted efficiencies that could be

achieved in each area. This independent,

data-driven benchmarking analysis

enabled the company to gain buy-in

from the business units and demon-

strate targeted headcount reductions

necessary for long-term sustainability.

Case study: Driving continuousimprovement through targetedkey performance indicatorsFollowing the implementation of a

multi-function shared services organi-

zation for HR, finance and facilities, a

utilities company had an immediate

need to stabilize these operations and

prepare for future growth.

Using Accenture Benchmarking

Solutions for both HR and finance, the

company conducted a comprehensive

multi-function benchmarking analysis

of the new shared services organiza-

tion. The benchmarking findings clearly

identified target areas for long-term

standardization and continuous

improvement initiatives. The company

combined this analysis with HR shared

services leading practices to identify

key performance indicators it coulduse to track and monitor the success

of internal change programs.

5



Accenture is uniquely qualified to

help private- and public-sector orga-nizations improve their HR operations

through the application of Accenture

Benchmarking Solutions.

For starters, we focus on more than

just “the numbers.” In other words,

while benchmark comparisons highlight

gaps in cost and performance, these

comparisons should be considered

directional rather than definitive, and

descriptive rather than prescriptive.

Indeed, various factors can influence

an organization’s performance on

the key HR metrics being evaluated,

including the number of countries in

which the organization operates,

which business units the HR function

supports, the range of languages used

across the organization, and the types

of workforces in the organization (for

instance, the percent of the workforcethat is unionized, the percent that is

professional versus clerical, and the

percent of permanent versus tempo-

rary employees).

Thus, while benchmarks are valuable

in identifying cost and performance

gaps, they do not by themselves explain

why gaps exist, define how to improve

performance or reveal organization-

specific nuances (for instance, there

may be good reasons for some gaps).

This is why Accenture builds a qualita-

tive assessment into every benchmark-

ing project. This qualitative analysis

provides the appropriate context for

the cost and performance data that

are uncovered by a quantitative

benchmarking exercise. Such context

is critical to distilling the true meaning

of cost and performance data and

identifying initiatives an organizationcan pursue to help it become more

efficient and effective and, conse-

quently, increase the value HR generates

for the larger enterprise.

In addition to this synthesis of

qualitative and quantitative analysis,

Accenture has unparalleled depth and

breadth of experience and highly

skilled professionals working on HR

benchmarking projects. Accenture has

a long track record of working collab-

oratively with HR executives to drive

successful change in their organizations

that can generate greater value for

the larger enterprise. We also have

a dedicated talent and organization

performance practice, which is focused

Why Accenture?

6



7

on all aspects of a company’s talent

management agenda and which includes

a dedicated core of professionals deeply

experienced in HR function operations.

Indeed, our industry-specific insights,

global market access and skilled prac-

titioners help organizations across all

industries and geographies develop

a deeper understanding of their HR

capabilities and drive transformational

change. Furthermore, our highly expe-

rienced people have access to detailed

tools and assets that differentiate

Accenture Benchmarking Solutions from

other approaches. We use a proven

project methodology with a rigorous

process for data collection, consolidation

and comparison, as well as results

analysis and interpretation. For example,

our quantitative and qualitative

assessment tools include a formal list

of more than 250 cross-HR and process-

specific metrics for cost, headcount,

quality, cycle time and volume across

16 key HR and learning areas. We also

use a proprietary Accenture database—

covering leading organizations across

all industries, geographies and sizes—

that provides the external perspectiverequired to compare an organization

with others.

To provide additional context in which

to evaluate an organization, Accenture

Benchmarking Solutions also includes

HR ”mastery scales,” which help a

company determine the maturity of its

HR function. Such determination is

critical given that one of the biggest

factors influencing performance is the

maturity of the HR organization being

assessed. HR functions typically fall

into one of four categories of maturity

or mastery: traditional, streamlined,

evolved and transformed (Figure 3).

Each of these types of functions has

distinctly different characteristics that

must be understood when assessing

the function’s current state and com-

paring it with external benchmarks.

Finally, Accenture Benchmarking

Solutions also benefits from having

access to a comprehensive inventory

of HR processes, assembled from our

extensive experience gained from

working with clients around the world.

This inventory underpins our standard-

ized data collection tools that ensure

organizations capture and consolidate

relevant data for every project as

well as help clients undertake a holistic

and complete assessment of their

HR processes.

On the journey to highperformanceContinued globalization and an

unpredictable economy are introducing

considerable complexity into howorganizations attract, retain, develop

and deploy talent—which, in turn,

is putting the HR function under a

cost and performance microscope.

Providing genuine business value in

such an environment requires HR

executives to truly understand the

current state of their function and

develop a clear vision of where they

want their function to be in the

future. This is where benchmarking

can prove invaluable.

By using Accenture Benchmarking

Solutions, HR executives can get

an accurate picture of the cost and

performance of their HR function and

how these figures compare with other

organizations. In doing so, executives

can see where improvement is needed

and, importantly, the changes necessary

to drive that improvement—both in

the short and the long term. With

Accenture’s help, HR executives can

use benchmarking as a critical first

step in transforming their HR function

into a streamlined and highly efficient

organization that makes a significant

contribution to the overall enterprise’s

drive toward high performance.

Traditional HR

Rules & compliance focused,

manual, back office function

Streamlined HR

Reduced cost to serve

• Reduced HR operating costs per FTE

• Decreased manager time per HR transaction

• Decreased cycle time per HR transaction

Evolved HR

Reorganized, proactive services

• Increased ability of HR to focus on

strategic tasks

• Reduced cost per hire

• Reduced time to proficiency

• Increased customer satisfaction levels

• Lower HR influenced costs

Efficiency improvements (Technology-enabled service delivery)

E f f e c t i v e n e s s i m p r o v e m e n t ( S t r a t e g i c H R w o r k f o r c e )

Transformed HR

Strategic solutions,

High Performing Workforce

• Increased revenue per FTE• Improved employee satisfaction

• Reduced voluntary turnover

• Increased retention of key talent

• Improved workforce performance

Figure 3: Four stages of HR mastery



Copyright © 2009 Accenture

All rights reserved.

Accenture, its logo, and

High Performance Deliveredare trademarks of Accenture.

About AccentureAccenture is a global management

consulting, technology services and

outsourcing company. Combining

capabilities across all industries and

business functions, and extensive

research on the world’s most successfulcompanies, Accenture collaborates with

clients to help them become high-

performance businesses and govern-

ments. With approximately 177,000

people serving clients in more than

120 countries, the company generated

net revenues of US$21.58 billion for

the fiscal year ended Aug. 31, 2009.

Its home page is www.accenture.com.

About Talent & Organization PerformanceThe Accenture Talent & Organization

Performance practice provides solutions

that enable clients to improve the

performance of their people, their

organization and their business. Thisgroup of skilled professionals has

extensive experience across a range of

talent, organization, human resources,

change management, analytics, col-

laboration and learning capabilities.

Backed by a comprehensive research

program, global resources with deep

knowledge and insights and unparalleled

tools and assets, Accenture collaborates

with thousands of clients every year,

including many of the FORTUNE®500

companies, to multiply their workforcetalent and organizational capabilities

into a strategic force that can drive

high performance. For more information,

visit www.accenture.com.

ContactFor more information about how

Accenture Benchmarking Solutions

can help your human resources

organization move from insightto action to high performance,

please contact:

Ian Page

[email protected]

Talent & Organization Performance

Charles Wise

[email protected]

Finance & Performance Management

benchmarking solutions for hr

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