hr transformation through shared services
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DESCRIPTIONUnleashing the Human
- 1. Confidential Do not Distribute without written consent from HDSHR Transformation through Shared Services Unleashing the Human Potential March 2011Imtiaz ShaikhVP, Americas HR Corp. Functions and OperationsCopyright 2010 Hitachi Data Systems. All rights reserved.
2. Hitachi, Ltd. (NYSE:HIT/TSE:6501) One of the worlds largest integrated electronics companies Founded in 1910 Total FY09 sales of $96B 900 subsidiariesFY09 R&D Investment: $4.0B 360,000 employees Approx. 20% in IST Over 760 PhDs Approx. $6.2B in cash No. 47 on the 2010 FORTUNE Global 500Confidential 2011 Hitachi Data Systems 2 3. Hitachi Data Systems at a Glance Excellence in Customer ServiceWholly owned subsidiary ofAwarded to Hitachi DataSystems by:Hitachi, Ltd. (NYSE:HIT)Formed in 1989Direct and indirect sales in over100 countries & regions4,300 employees and expanding The focal point for Hitachi, Ltd. for storage infrastructure solutions, storage management software, and storage consulting servicesDATA DRIVES OUR WORLD AND INFORMATION IS THE NEW CURRENCY Confidential 2011 Hitachi Data Systems 3 4. HR Transformation through SharedServicesJourney to unleash the human potential - Where to start?.Confidential 2011 Hitachi Data Systems 4 5. Realizing HR TransformationHistorical ChallengesNeed for a Strategic ShiftCreate VisionPlan a RoadmapExecute-Execute-ExecuteHR Vision Realized! 5 6. Realizing the HR Transformation Historical Challenges HR value not visible HR Data everywhere no accuracy No Control on Labor Cost No Strategy or Vision HR Credibility as good as HR Value 6 7. HRIS Challenges Out-of-date, scattered,No visibility to ongoing issues inconsistent and hard to Redundancy in responses search information onLack of drill down HC Intranet analysis capabilityMultiple manual activities Missing key capabilities in all areasResource intensive No integration btw systems and processesInefficiencies in ReqApproval & Offer ProcessDisjointed processes andsystems inhibits dataDelays/Inaccurate data submissionsinaccuracy, delays in updatesDependency on F&A in EMEA and reportingmultiple submission Manual specific resource dependent processLack of global organization visibilityDuplicate maintenanceManual resource intensive process Inconsistent data definitionsKey compensation dataDependencies on regional HRprocess outside of Oracle HR Lack of controlsMultiple source of recordkeeping,Hard to find and locate recordsNot user-friendly Out-of-date Employee Directory Delays in LMS access for New Hires 7 8. HR Transactions Process in Rear ViewHR credibility is at its lowest point Manual Data Maintenance HR or Shadow HR Oracle EE SS (US & EMEA)Oracle HR(ROW)Job Changes Manual LettersOracle Mgr SS(communication)View Only(US & EMEA)Transfers Oracle HR (EMEA) Emails Payroll, Benefits,Termination Vendors, CHRISHDS Systems (Australia) EAR FormsLOA HR RequestsManual Comp (APAC)(Merit, ELTI &RewardsSTI) Phone CallsExcel Spreadsheets HR Requests(LA, Asia) (APAC)Confidential 2011 Hitachi Data Systems 8 9. Realizing the HR VisionNeed for a Strategic Shift Transaction Processor to Business GrowthEnabler Tactical to Strategic Reactive to Pro-active Align to business strategy Meet business needs Define HR value Align Skills9 10. Know Your Starting Point Transactional versus StrategicThe proportion of time Align HR activities and programs with the companys% Time and Effortspent on HR strategy strategic direction 4% Develop, monitor and deliver programs thatStrategyand programs is low -Much more time isenhance the companys overall performance andPrograms10% Snapshot HRs effectiveness/contributions to the companyspent on transactional as a wholefrom 2006activities.Advice/EmployeeHR Activity39% Relations86% of total HRHandle inquiries on policy and Breakdown provide advice more effectivelyactivity is focused on and efficientlyHR transactions and47%handling queries. Processing Transactions Process employee transactions more efficiently % Time, Effort, Cost% Time, Effort, Cost Increasing HR Organizational Value 20%5%StrategyStrategy 25%40% ProgramsThe trend is for organizations to cutPrograms volume of transactions and advice30%needed through self-service (IT Advice/Employee enabled) or to reduce costs of Advice/Employee40%Relations transactions and advice via newRelations20% organization models / outsourcing. ProcessingThis allows the HR organization to Processing Transactionsbetter focus on activities that are of Txns20% added value to the Business.ConfidentialSource: Study conducted by Hay / McBer. 2011 Hitachi Data Systems 10 11. Realizing the HR TransformationCreate a Vision Vision that inspires HR and its Clients Holistic Aligned with Business Vision Highlights Value and Business Alignment 11 12. HRIS Vision- Enabling Best in Class HR Capabilities12 13. Compensation Vision: Pay for Performance Compensation Platforms Global Local Global Design, Local ImplementationPerformancePerformanceBase Pay Variable Pay Job StructurePay ForCultureManagement PracticesPrograms Technology PlatformTechnology investment is necessary to create a solution that is build to lastConfidential 2006 Hitachi Data Systems 13 14. Talent Management Vision & Framework Values LeadPerformance Management DevDev ersh WoelMet elip opmrkfoopm Onboarding TaleCrite Employee Development ricsStrategyBusinessrce Planninge e Impact nt Soluti nt Ac nt Plann& Meas ria & Aquis Leadership Developmentttribuo ing remitionnsutesent Succession PlanningDiversity and InclusionCommunications, Branding and Social MediaSystems Strategy14 15. Realizing the HR TransformationPlan a Roadmap Prioritize Align Publish 15 16. Global HR 3-5 Year Strategy & RoadmapTrusted Partner EnableBest in class HR GrowthCompetitive Advantage through Strategic Human Capital Management NMAP 360 Feedback Organization Development E-learning Skills InventoryDrive Leadership Development (3E)Career DevelopmentChange Talent Reviews Competency Framework Company Values/Culture Succession Planning Requisition Approval HC Analysis and ControlSystemWorkforce Planning DashboardDeliver Recruiting Solutions DiversityValue Onboarding PlatformForecast Human Capital Performance Management System PerformanceStrategicAlignment Pay for Performance Management SOX Compliance/Internal control Culture Increased Performance Compensation System Compensation & Benefits Platform Variable Pay Platform Standard Job Families, Job Matrix, Pay for Performance SystemsStabilize/Salary Bands, Salary LevelsSOX Compliance/Internal controls Rewards & RecognitionLabor Cost ControlExecute Career Path Benefits BenchmarkingAttract and Retain Talent Competitive Market Analysis Global HR Database HR DashboardCross functional integration Process DesignHR Fundamentals Knowledge Portal/Case Management SystemData ReportingSOX Compliance/Internal controls Employee SurveyData Analysis Productivity Increase Manager/EE Self Reliance PortalGovernanceScalability to support growthCREDIBILITY COLLABORATION CONTRIBUTION CONFIDENTIAL 2009 Hitachi Data Systems 16 17. Realizing the HR Vision - Unleashing the Human PotentialExecute-Execute-Execute Project Management Rigor- Prepare for Change Creative use of Technology Remove Roadblocks-- Always move forward 80/20 rule 17 18. Foundation is criticalConfidential 2011 Hitachi Data Systems 18 19. Foundation Global HR database enabling manager/employee self relianceStabilize/ExecuteGlobal HR DatabaseHR Fundamentals HR DashboardCross functional integrationProcess DesignData ReportingSOX Compliance/InternalKnowledge Portal/Case Management SystemData AnalysiscontrolsEmployee SurveyGovernanceProductivity IncreaseManager/EE Self Reliance PortalScalability to support growth Confidential 2011 Hitachi Data Systems 19 20. FoundationPaperless forms with approvalworkflow- Improved efficiencies andcontrolsData Operations Dashboard tosupport data entry and improve dataaccuracyStabilize/ExecuteGlobal HR DatabaseHR Fundamentals HR DashboardCross functional integrationProcess DesignData ReportingSOX Compliance/InternalKnowledge Portal/Case Management SystemData AnalysiscontrolsEmployee SurveyGovernanceProductivity IncreaseManager/EE Self Reliance PortalScalability to support growth Confidential 2011 Hitachi Data Systems 20 21. Global HR portal with online case Single Portal for Managers to Online case management system toFoundation management system Manage Employees allowing HR with built in workflow to manage spend more quality time with case volume globally. businessStabilize/ExecuteGlobal HR DatabaseHR Fundamentals HR DashboardCross functional integrationProcess DesignData ReportingSOX Compliance/InternalKnowledge Portal/Case Management SystemData AnalysiscontrolsEmployee SurveyGovernanceProductivity IncreaseManager/EE Self Reliance PortalScalability to support growth Confidential 2011 Hitachi Data Systems 21 22. FoundationHR Analysis driving business results Stabilize/ Execute-Data Accuracy -Data Analysis-Cross functional integration-Data ReportingHR Fundamentals -Data driven decision -Fool proof controls-Develop HR Capabilities -Center of Excellence -Self service transactions-Global Database -Governance -Scalability to supporting growthConfidential 2011 Hitachi Data Systems 22 23. A Roadmap to Pay for PerformanceCompensation PlatformsJob Structure Base Pay PracticesPerformanceVariable Pay PlansManagement Job content definition Sales and non-Sales GIP & ELTI bonus Fully integratedpay ranges known plans aligned to system: Base pay, Definition and competitive to marketmarket and HDS variable pay, and assignment of internal objectivesjob structure Functional Area, Job Country specific pay Family, and specific job ranges established integrated with job Policies, typestructure, base pay, guidelines, and Policies, guidelines,and PPRprocesses Job codesand processes Individual Level definition andPerformance Fact