“I’m a person, not a number!”

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

“There is no new thing under the sun."   -- Ecclesiastes 1:9

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 567690david.viney@theaa.com

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