telecommunication development bureau managing the supply chain itu regional workshop on “strategic...

30
Telecommunication Development Bureau MANAGING THE MANAGING THE SUPPLY CHAIN SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture 8

Upload: brittany-orman

Post on 01-Apr-2015

214 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au MANAGING THE MANAGING THE

SUPPLY CHAINSUPPLY CHAIN

ITU Regional Workshop on “Strategic HR Management”

Cairo Egypt 13-17 April 2008

Lecture 8

Page 2: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

2Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

One of the key roles of Strategic HR Management is the Management of Relationships.

Business survives because there are outsiders.

The know-who (Relationships- network) as well as the Know-how (Skills, Knowledge, Capacity, Talent)

Page 3: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

3Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

The Know-Who are usually the other stakeholders who have a role in the successful implementation of the Business Strategy.

In doing so, avoid stepping on other people’s toes and doing their job (if you cannot beat them –bypass).

Stick to relationships that have a bearing on the business directly, and on HR

Page 4: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

4Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

Traditionally HR has always focused exclusively on the Internal Customer (the workers, the Managers, the unions.)

Now we need to look at the whole business value chain to see who matters

Page 5: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

5Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

MANAGING SUPPLIERSMANAGING SUPPLIERS

Suppliers of products to the company who have been subcontracted to do so on behalf of the Company:

Suppliers of products to HR that have been outsourced markets.

Managing HR to Non Traditional International Markets( managing Diversity)

Page 6: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

6Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

Managing subcontracted Managing subcontracted companies:companies:

Service Providers, Retail Agents etc.To be treated as Business Partners in a Win –Win situation.

Need to maintain Brand image. May need to provide Training on such issues

as Customer care and brand imaging. Need to provide protection and promotion of

brand image. Remember, Brand image is a powerful tool

for the attraction and retention of staff.

Page 7: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

7Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

Managing the Customers Managing the Customers

HR is involved in the Customer Care Program

This is essentially a Culture issue that has a bearing on training and Culture creation program, based on the corporate Strategy.

Implemented in liaison with other departments (Sales, Customer Service).

Page 8: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

8Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

OUTSOURCING HROUTSOURCING HR

Outsourcing HR services directly related to the HR Business Partner role.

A product of Business Process Reengineering, and the introduction of IT( Knowledge Management).

Page 9: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

9Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

OUTSOURCING HROUTSOURCING HR

HR OUTSOURCING HAS BEEN A GROWING BUSINESS IN THE US (UP TO 94 % OF COMPANIES OUTSOURCE AT LEAST ONE HR FUNCTION)

MOST OUTSOURCED SERVICES – HEALTH BENEFIT MANAGEMENT, PENSION BENEFITS, PAYROLL, RECRUITMENT SERVICES, COMPENSATION ANALYSIS, TRAINING)

Page 10: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

10Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

REASONS FOR OUTSOURCINGREASONS FOR OUTSOURCING

COST SAVINGS THROUGH REDUCED HEADCOUNT: 30-40 % SAVINGS

ACCESS TO EXPERTISE AND TECHNOLOGY• YOU USE AN EXPERT WHEN YOU OUTSOURCE. THIS

EXPERTISE DOES NOT EXIST IN YOUR OWN ORGANISATION

NEUTRALITY TO REDUCE YOUR INVESTMENT COSTS IN

TECHNOLOGY INCREASE YOUR FOCUS ON YOUR CORE

COMPETENCIES/BUSINESS

Page 11: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

11Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

DECIDING TO OUTSOURCEDECIDING TO OUTSOURCE

START BY CREATING A STRATEGIC PLAN FOR HR

A CLEAR VISION, MISSION AND STRATEGIC GOALS YOU WANT TO ACHIEVE

EVALUATE YOUR INTERNAL RESOURCES

Page 12: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

12Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

WHAT TO OUTSOURCE: 5 STEPSWHAT TO OUTSOURCE: 5 STEPS

1. CREATE A PROJECT TEAM TO DEVELOP A PROJECT PLAN IDENTIFY DESIRED RESULTS ASSESS POTENTIAL BARRIERS RESOURCES AND SUPPORT REQUIRED PLANNING THE STEPS

Page 13: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

13Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

Outsourcing ProcessOutsourcing Process

2. CONDUCT A PROCESS REVIEW MAPPING ALL THE HR PROCESSES

(RECRUITINT, PAYROLL, PERFORMANCE MANAGEMENT, TRAINING ETC)

DETERMINE WHAT IS DONE, BY WHOM, FOR HOW LONG ? AT WHAT COSTS ?

Page 14: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

14Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

Outsourcing Process Outsourcing Process

3. REVIEW STRATEGIC PLAN ASSESS CURRENT HR ACTIVITIES (STEP 2)

AGAINST THE BUSINESS PLAN IDENTIFY ACTIVITIES THAT NEED TO BE

DONE BUT DO NOT HAVE A DIRECT CONNECTION TO THE BUSINESS PLAN

ASK WHAT YOU AS HR NEED TO DO TO SUPPORT THE BUSINESS PLAN

Page 15: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

15Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

Outsourcing processOutsourcing process

4. IDENTIFY YOUR CORE AREAS CAPITALIZE ON YOUR INTERNAL

EXPERTISE

Page 16: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

16Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

Outsourcing ProcessOutsourcing Process

5. DECIDE WHAT TO OUTSOURCE

ONCE YOU DECIDE WHAT TO OUTSOURCE, THIS IS NOT THE END, BUT THE END OF THE BEGINNING. YOU NEED TO FACILITATE THE OUTSOURCING PROCESS.

THIS HAS PROVED TO BE TRICKY !

Page 17: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

17Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

DISADVANTAGES OF DISADVANTAGES OF OUTSOURCINGOUTSOURCING

NEED TO CHECK THE VENDOR – THE TASK DOES NOT GO AWAY

DEMOTIVATION OF STAFF INVOLVES RISKS (DISSAPOINTED

STAFF) CONFIDENTIALITY – PLACING

COMPANY INFO IN HANDS OF OUTSIDERS

Page 18: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

18Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

HR OUTSOURCING EFFECTIVENESS SURVEY

By Towers Perrin, now in its third year.

Assesses State of Outsourcing and HR transformation.

Says that the honeymoon is over. Both Buyers and providers are now expecting more from the relationship.

Page 19: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

19Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

WHAT HR NEEDS TO KNOW WHAT HR NEEDS TO KNOW BEFORE OUTSOURCING:BEFORE OUTSOURCING:

In terms of the work an organization does prior to outsourcing, HRO can take it to a new level of effectiveness in how HR spends its time;

Before signing the contract, know your own situation in terms of current quality levels, volume, and the level of transaction quality fundamental to your organization;

Page 20: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

20Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

2006 Survey of 38 of the 70 Fortune 100 Companies in the midst of large scale outsourcing deals.( ie those involving outsourcing more than six processes to one vendor).

The picture shows increasing frustration.

Page 21: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

21Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

Buyers increasingly focus on “getting it right” and are less tolerant of poor quality than they used to be;

HR departments are not realizing the cost and time savings they seek from outsourcing major HR functions;

In an outsourcing world that’s all about quality, companies can make key interventions to help ensure satisfaction before the deal, when it’s signed, in mid-process, and beyond; and

As experience levels rise, expectations are changing among buyers and sellers.

Page 22: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

22Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

Sixty-seven percent of those surveyed noted that the vendor’s ability to continuously improve service quality of contracted services has become more important since deal inception;

Organizations that invest more in governance of the outsourcing arrangement tend to be more satisfied with their results;

Twenty-four percent spend five to six percent of annual outsourcing costs on governance;

Page 23: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

23Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

Buyers’ satisfaction levels with “next-generation processes” such as staffing and training administration are considerably lower than their satisfaction with the delivery of first-generation processes;

Fifty-seven percent were “very” to “somewhat dissatisfied” with staffing/recruitment outsourced processes;

Thirty percent were “very” to “somewhat dissatisfied” with learning/training administration outsourced processes;

Page 24: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

24Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

Satisfaction is low overall. Buyers report that they are spending more time than anticipated on managing the HRO deal, and they report that the time they allocate in many areas of HR has not changed significantly post-outsourcing;

Page 25: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

25Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

On a scale of 1 (strongly disagree) to 5 (strongly agree), those surveyed averaged a 4.06 when asked if they focused a significant amount of time on the HRO project, and averaged 3.97 when asked if they invested significant time and other resources on the change management efforts to support the HRO deal;

Page 26: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

26Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

Most respondents believe client retained organizations will require new competencies to get the most value from the outsourced HR model; and

Fifty percent indicated they need to add new competencies to a “great” or “very great” extent to leverage the full value of the outsourced HR model.

Steps can be taken on both sides to improve quality. “From the buyers’ side, it’s about having a common set of objectives that vendors agree with and buy into

Page 27: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

27Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

What that tells us is that it’s becoming a high priority to define quality as quickly as possible. Users are less tolerant of poor performance or of correcting ongoing issues for very long.

Page 28: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

28Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

Build quality into the contract through improvement clauses and metrics. Do not give quality a backseat to financial measures; and

Develop and execute a quality plan in stages; tackle critical areas first and move forward incrementally. Consider a quality council as part of governance to ensure the quality process is followed.

WHAT HR NEEDS TO KNOW WHAT HR NEEDS TO KNOW BEFORE OUTSOURCING:BEFORE OUTSOURCING:

Page 29: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

29Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

Towers Perrin advises its clients to understand their business operations thoroughly. “If you outsource a certain function such as recruiting or payroll or whatever, know how you operate today, what the key drivers are, what are the customers’ expectations, the costs, and the historic service levels,”.

“Understand the business environment very well before sourcing someone else to do it. Get a clear understanding of what’s happening and what the expectations are, so that when you start to transition, you know what you are transitioning over, and you have a better expectation set based on how you operate today.”

Page 30: Telecommunication Development Bureau MANAGING THE SUPPLY CHAIN ITU Regional Workshop on “Strategic HR Management” Cairo Egypt 13-17 April 2008 Lecture

30Tele

com

mu

nic

ati

on

Develo

pm

en

t B

ure

au

CONCLUSIONCONCLUSION

Managing the external customer down the Business value chain is becoming an important component of the HR Manager as a Business Partner.

Care however needs to be taken to avoid conflicts with other departments for whom certain functions might be seen as Line Functions