The next Big Thing:ERM (Employee Relationship Management)
David VineyCentrica plc
BCS K&C12 November 2002
Objectives
To examine the extent to which familiar CRM themes can be extended to suppliers &
employees
To identify the implications of such new thinking for the typical e-Business Programme
An evaluation of best practice, scenarios, processes and architectures for ERM
All product holdings
Current Customer
ValueAccurate Master Data
Recorded Channel
Preferences
Full Contact History
Credit & Billing History
Potential Customer
Value
Marketing Permissio
ns
All product holdings
All supply relationshi
ps
Current Customer
ValueAccurate Master Data
Recorded Channel
Preferences
Full Contact History
Credit & Billing History
Current Strategic
Value
Accurate Master Data
Potential Customer
Value
Marketing Permissio
ns
Potential Strategic
Value
Credit Rating & History
Full Contact History
Single View
All product holdings
All supply relationshi
ps
Current Customer
ValueAccurate Master Data
Recorded Channel
Preferences
Full Contact History
Credit & Billing History
Current Strategic
Value
Accurate Master Data
Full Employment History
Measure of Employee Potential
Measure of Employee
ValuePotential Customer
Value
Marketing Permissio
ns
All Benefit
holdings
Performance History
Accurate Employee Data
Potential Strategic
Value
Credit Rating & History
Full Contact History
Training & Development History
CustomerSegmentation
Up & CrossSell
Campaigns
New Product Development
Strategic
Sourcing
Resource
Planning
Management Succession
Self Serve Informatio
n
Self Serve Personal
Administration
Self Serve Basic
Services
Face-to-face
Relationship
ManagementAssisted
Sales Transactio
ns
Assisted Service
Recovery
Self Serve Informatio
n
Self Serve Terms of
Trade
Self Serve Personal
Administration
Self Serve Basic
Services
Face-to-face
Relationship
ManagementAssisted
Sales Transactio
ns
Assisted Service
Recovery
Self Serve Supplier Details
Self Serve Payment Chasing
Self Serve Call-off
Purchasing
Assisted Payment Disputes Face-to-
face Relationshi
p Manageme
nt
InteractionManagement
Self Serve Informatio
nSelf Serve Employee
Administration
Self Serve Basic
Services
Assisted Employee
Development
Face-to-face Career
Planning
Face-to-face
Employee Counselling
Self Serve Skills
Training
Self Serve Informatio
n
Self Serve Personal
Administration
Self Serve Basic
Services
Face-to-face
Relationship
ManagementAssisted
Sales Transactio
ns
Assisted Service
Recovery
Self Serve Terms of
Trade
Self Serve Supplier Details
Self Serve Payment Chasing
Self Serve Call-off
Purchasing
Assisted Payment Disputes Face-to-
face Relationshi
p Manageme
nt
ReducedCost to Serve
Increased Profit per Customer
Increased Customer Loyalty & Retention
Reduced OpEx
ReducedCost to
Serve
Increased Employee Loyalty & Retention
Does employee retention matter?
A recent survey by the American Management Association states the average cost to replace an employee is 30% of their salary.
This gives, for a typical ‘large’ IT department:
1000 employees x $60,000 x 30% x 25% =
$4.5 million pa !
A recent survey conducted by RHI Consulting revealed that the annual turnover rate for a typical IT Department in a larger US company was more than 25%(based on responses from 1400 CIOs from a random sample of U.S. companies with more than 100 employees)The 2002 Microsoft Certified Professional Salary Survey gives an average salary for an IT Professional of approx. $60k
The “Great Place to Work” Institute surveys companies worldwide in an effort to understand successful strategies for employee motivation and retention. In the UK, it’s results are published in ‘The Times’ and, in the US, in ‘Fortune’ magazine.Year on year, the companies that feature highest on the list are financial and high-tech companies. Why?Arguably, these are the companies who best understand how technology can be used to enhance their business and turn this learning in on their people! This frees HR professionals & line managers to manage people, not tasks!
5306 PA e-strategy
CorporateProcurement
Directory
End-to-End Staffing
Technical Support
FAST Start(Induction)
Cisco EmployeeConnection
BenefitsEnrollment
Travel & Expense
ExecutiveInformation
System
IP TV
VoDTraining
CiscoCast(Newsfeeds)
Lessons from Leaders
93.4% users access CEC at least once per day79.3% many times per dayUser satisfaction 4.23 out of 5.00
Common Centrica process Specific process External process
ERM Process Architecture
Employee RelationshipManagement Manage employee
contactProcessenquiry
Processissue
Personaliseinteraction
Manage personal details changes
Employee InteractionManagement Route &
allocate interactionManage
Case
Employee Analytics
Management Info
HR Consulting/HR Development
Generate personintelligence
Manage personprospecting
Maintainperson data
Segmentpersons
Manage datawarehouse
Analysedata
ReportKPI
Develop newservices
EmployeeDevelopment
Reward & BenefitsResourcing
Resource Planning
EmployeeRelations
Managerecruitment &
transfers
Manageleaving
Managetemporaryworkers
Manage relocation
Manage manpoweravailability
Induction
Learning& Training
Manage people development
Manage bonus &recognition
Managepay
Manage longservice awards
Managebenefits
Successionplanning
PerformanceManagement
Manage discipline& grievance
Organisation restructuring
Manageemployment relationship
OrganisationalEffectiveness
Business & Line Manager Support
AttendanceReporting
Compliance Shared Services
Print &despatch Manage
documents
Comply withHealth &Safety
Comply withCorporate
Governance
Comply withInland Revenue
/Taxation
Managecontent
Finance & Procurement Integration
ManageExpenses
HeadcountReporting
Email F2FPhone Mail
Assisted service channels
Web
Self Service
IVR
Operate channelservices
(Simplified) ERM Technical Architecture
IVRsystem
HR & Payroll Help Desks
ERPESS
Module
ERPClient
OtherModulesMiddle-
ware
CoreERP
System
Facilities, IS,Pensions & Purchasing Help Desks
Case & Asset Mgmt Systems
Meta-directory
PensionSystems
EmployeeIntranet
EmployeeExtranet
SupplierExtranet
Non-standard
PlanningSystems
Mobile worker updating her home address, following a move
Office worker requesting leave via the Intranet from home
Scenario: Recruitment
View the Job Ad on the Centrica Opportunities section / pagesMake an application and attach my CV
Receive an email inviting me for interview, which includes a 6 digit guest ID number and four digit pin to access the Recruitment extranet
Log-in using my ID and PinBook an interview slot online from the available slotsFill out a travel expenses form
Receive an email confirming my interview and the name of the person I will seePrint-off the attached visitor pass & car parking formGo for the interview
Online, I fill out Payroll & Bank Details Form, Private Medical Form, Pensions Application & Wish Form, Car Form, etc.Before I even start at Centrica!
Receive my offer letter and phone & write to confirm acceptance Pack invites me to go online again using ID & PIN
And then the final delight and surprise.. I find that my log-on ID to all the systems I need and my first password are the very same I used during my recruitment
Hit the desk running on day one with all my admin sorted Impressed with how organised Centrica is
“what a great place to work!”
Internet
ExtranetIntranet
Scenario: Maternity Leave
Test is positive, so, once in work, I go onto the Help Desk and log-in using my Centrica ID and PinSelect the Payroll option and check my remaining leave balance, using the automated Payroll service
Go onto the Intranet from home through the secure Extranet gateway, using my Centrica ID and PinNavigate to the HR Online section and download a copy of the UK Maternity Policy & Guide to my PDARead the notes than navigate to the online FAQ to get answers to my more basic questions
The meeting with my local HR rep goes wellAnd I am left feeling secure and happyNow I only have hubby to deal with.. If only he was as easy to operate as the Centrica ERM processes!
The following morning on the way into work, I call the Centrica Help Desk from my hands-free kit in the carI log-on and go through to an operative in the Employee Service Centre I get a few more answers, but decide that I would like to have a face to face meeting..Which I book there and then
Welcome to the Centrica Help Desk.
Please press:
1 for Systems2 for Facilities3 for HR4 for Payroll5 for Pensions6 for Purchasing7 for Finance
Or press *0 at any time to talk to an operative
“they really take care of my
needs!”
IVR
"Art is a step from what is obvious and well-known toward what is arcane and
concealed." -- Kahlil Gibran (A Handful of Sand on the Shore)
The all-encompassing Philosophy
QualityIntelligence
PowerfulAnalytics
AppropriateInteractions
EnhancedStrategy
EffectiveRelationships
ImprovedPerformance
Food for thought
Is your strategy simply to force every employee to deal with you via the intranet? For everything?
What about, for example, your customer-facing, high-value (mobile?) sales force, who need access to systems on the move? Have you even considered a multi-channel approach?
Interaction & Relationships
Does you eHR Business Case require you to cut back your HR support function to a bare minimum, or are you instead re-skilling and repositioning them for higher value work, such as retention of key employees?
Intelligence & Analytics
Does your eHR solution give you more than just employee details? Do you have a single view of their skills, training, performance and management potential?
Can you analyse who your most important employees are and do you use target campaigns and interaction to build loyalty?
When a key event changes the life of one of your employees, such as moving home or having a baby, can you measure the impact this may have on your relationship with them?
Do you really know what the cost is to your business of employee acquisition and employee turnover?
Strategy & Performance
Do you treat your employees as individuals, or are they just a number
to you? Do you value them in the same way as
your customers?
Is Employee Motivation and Retention one of your Company’s top 3 priorities and if not, why not?
Technology Considerations
Which technologies could be deployed across all
three spheres (customers, suppliers and employees)?
Data warehousingAnalytical technology Case ManagementIVR TechnologyPortal TechnologyWeb Hosting (Intranet / Internet / Extranet)
Campaign Management Technologies
Conclusions
(1) Customers are all important, but suppliers
and employees matter too!
(2) Many CRM concepts (with which your CEO is familiar) apply equally
well to the other key stakeholders in your
enterprise!
(3) Challenge your e-Business approach to date. Is it too transactional in it’s focus? Have you considered relationship management issues at an enterprise level?(4) Have you looked at where you could re-use technologies and deploy them in a wider role?
David VineyBISM, E-CommerceCentrica IS
Mobile 07979 [email protected]
1F Millstream EastMaidenhead RoadWindsor SL4 5GD
Telephone 01753 492 429Facsimile 01753 493 422www.centrica.co.uk
My Contact Details
Download the Presentation at:My websitehttp://www.viney.com/DV/eBiz/eBiz.html