hroa: helping hr transform through standards, benchmarking

The 2009 Global Human Capital Forum Marriott Chicago Downtown | September 22, 2009

© 2009 IAOP® All Rights Reserved

HROA: Helping HR Transform

Through Standards,

Benchmarking and Research

John Hindle

Vice Chairman

HROA



John Hindle

John is a senior member of Accenture’s Outsourcing

Marketing team, where his responsibilities include managing

research and thought leadership programs, industry events,

and building relationships with analysts, key industry groups,

and sourcing advisers. He also serves as Vice Chairman of

the HR Outsourcing Association (HROA), and Co-Chairman of

HROA Europe, and holds an appointment as Adjunct

Professor of Human and Organizational Development at

Vanderbilt University. John has an extensive international

business background, with over 30 years of experience as a

senior executive and adviser to companies in the U.S. and

Europe. He holds dual U.S. and UK citizenship, and publishes

widely in trade, practice and academic media.

Proprietary and Confidential - Copyright © 2009 HRO Association



HROA Research & Standards

Industry Standards and Research Agenda

September 22, 2009


What we will cover

Background on HROA

HROA Industry Practices Setting

• The HROA Process

• HROA Practices: The Latest & Greatest

• Benefits for the HRO Practitioner Community

HROA Research Agenda

Q&A


HROA Background

The HROA is the only independent organization representing

all those who purchase, provide, and advise on HR

Transformation and Outsourcing.

The HROA is dedicated to accelerating the growth and

maturation of the practice of HR Transformation and

Outsourcing around the world. The Board of Trustees has set

forth four primary objectives:

• Industry Practices

• Research & Performance Indicators

• Special Interest Groups

• Education & Events


HROA Governance

Board of Trustees

Regional ChaptersSpecial Interest

GroupsCommittees

Americas

Asia

Europe

Large Market

BuyersMid-Market

RPO Alliance

Membership

Research

Standards &

Practices

Association

Management


Setting Standards & Practices

The HROA sought to create an open and transparent process that would:

• Establish broadly accepted practices

• Be subject to peer and public comment

• Create an accessible body of knowledge kept current and available

It set minimum criteria:

• Representative Transparent

• Practical Verifiable

• Economical Timeless


The Process

Gathering

Initial Ruling

Public Comment

Reconciliation

Final Ruling

Publication

Adoption & Use

Maintenance

Governance


The Committee’s Charter

Encourage the development of standards programs that advance the state of practice in HR Transformation.

Set and administer standards for HR transformation and the outsourcing industry:

• Oversee the process

• Solicit standards and practices content initiated by member organizations as input to the process

• Substantively contribute to the further development of this body of knowledge

• Make initial and final rulings on HROA Recommended Practices


Standards: 2009 priorities

Version 2.0 of existing standards

• SLAs

• Pricing Units

Version 1.0 of service catalogue – used to define services

Short position statements on best practice, driven by member concerns – for example:

• Critical deliverables list

• Applying HRO to factory environments

• Approaches to handling language requirements

• Approaches to handling software licences

Links to other useful standards

• Available on HROA website


HR Service Catalogue Project

Objectives:

Create a standard reference service catalogue for use in HR outsourcing projects, applicable globally

Have the service catalogue adopted by the industry

Help reduce scope misunderstandings between service providers and buyers of HR outsourcing services

Use the service catalogue to help build other standards and benchmarks with standardised definitions



Progress:

Level 2 of the service catalogue has been

through two rounds of public comment

• Robust and agreed framework is ready to use on the

HROA website

Level 3/4 of the service catalogue is currently

available on the HROA website for public

comment

• Comments close end May 2009 – please contribute


20 level 1 services


Example detail

Three or four

levels of detail

Indicative scope


Key points

We have set the detail at a level that

would be useful in scoping an HR

outsourcing project

It will be necessary to use intelligently;

applying it to the specific situation

We have worked hard throughout to

make the language generic and

international – work initiated and driven

from Europe to help achieve this



Collaborators:

Accenture

ADP

Alexander Mann

Cadbury

Convergys

EquaTerra

ExcellerateHRO

Kelly

IBM

NorthgateArinso

OpenDoor HRO

PA Consulting Group*

TPI

UBS

Unilever

* Work has been driven by PA Consulting Group


HR Outsourcing Lifecycle

Develop a representative view of the HR Outsourcing Lifecycle showing the phases/stages of the lifecycle with an overview of the expectations of each phase including:

• Activities

• Roles

• Responsibilities

• Impacts.

Goal: provide a framework which can build a strong foundation and aligned expectations for buyers of HRO services


Business Value Metrics Project• Research project initiated by IBM and TPI in Q3 2008

• Objective: To produce a library of research-based results that may represent quantifiable business improvements through transformation projects

How do we quantify the value of transformation?

How do organizations value improvement?

Human Resources Business Review

• Periodic peer-reviewed research journal available on HROA website

Editor: Dr. Anthony Hesketh PhD, Lancaster University




Lessons Learned From 1st Gen HRO

• Insiders Perspective on European HR

Outsourcing

HROA Europe and SAP

• Research kicking off in North America

Where have we been … and what does that mean for where we’re going?

Graceful exits: We hear a lot about HRO contracts not being

renewed, but how much is really occurring?

Managing the future state delivery model: What’s out, what’s

in? How will it look different than Gen1?


HROA Research: Business Value Metrics

Project participants include multiple organizations

• Clients / Buyers (AT&T, Avon, Unilever)

• Advisory & Research Firms (TPI, EquaTerra, Saratoga, Reed

Group, Bersin & Associates)

• Service Providers (IBM, EHRO, Accenture, Kelly, Hewitt, ADP,

Mercer, Ceridian, NorthgateArinso, PeopleScience)

• ERP Providers (Oracle, SAP)

Approach: conduct focused working sessions to address values by HR functional area

• Recruiting

• Talent (Compensation, Learning, Performance, Succession)

• Payroll & Timekeeping

• Absence Management

• Technology Enablement (HRIS, Self-Service)

• Retained Organization, Reporting & Analytics


HROA Research: BVM Deliverable

Sample metric: Absence Management

• Best Practice: proper vetting & tracking of qualified leaves (denying unqualified leaves) includes

Confirm employees work hours

Waiting period based on employment

Elective medical event v. required medical event

State-specific leave requirements• Research: average reduction of xx% in approved FMLs

and Disability Leaves compared to pre-sourced administration model

• Sample value calculation:

(Total Client Leaves) x (% reduction) x (Avg Cost of Leave)

2009 deliverable includes a workbook of common Business Value Metrics & associated research

Its never too late to participate! Contact

• Julie Fernandez [email protected]

mailto:[email protected]


Benefits to HRO Practitioners

Why the HRO Community has come together with HROA

• Our stories – why we volunteered

There are benefits for everyone

• Buyers of HR outsourcing

• Practitioners from HR Shared Service Centers and other

internal client HR organizations

• HRO Service Providers

• Sourcing Advisors and

• Legal Counsel

Link to Human Capital Management and the future of HR


Q&A


For Further Information

Contact us:

HROA Americas Contact:

Adam Bleifeld, Executive Director Americas

+1 202 905 0351 x19

[email protected]

HROA Europe Contact:

Faye Holland, Executive Director Europe

+44 1638 742 355

[email protected]

HROA Asia-PacificSharon McEneff, Director of Membership

+85 2 815 3884

[email protected]

HROA Committee Leadership

Debora Card

+1 586 677 8351

[email protected]

Linda Merritt

+1 610 909 1210

[email protected]

Tim Palmer

+44 7525 666 171

[email protected]









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