the business case for hr shared services

© 2017 ServiceNow All Rights Reserved 1© 2017 ServiceNow All Rights Reserved

The Business Case for HR Shared Services

© 2017 ServiceNow All Rights Reserved 2

Presenters

Jim ScullyFounder and President

HR Shared Services Institute

Jeffrey GoreDirector, HR Product Management

ServiceNow

© 2017 ServiceNow All Rights Reserved 3© 2017 ServiceNow All Rights Reserved 3

Why ServiceNow is the Obvious Choice

“We seem to be about 10 years behind in creating user-friendly, intuitive solutions online for our employees.”

“Should be a frictionless process…should not take away from my ability to do my job.”

“Make it fast and easy… replicate what we deliver for our customers everyday.”

“Empower managers… make our lives easier .”

Employee Service Expectations Have Changed


“When is open enrollment?”“How do I promote someone?”

“There’s an error on my paycheck…”

ITHR

Operations

PayrollEmploy

eeRelatio

ns

Facilities

DepartmentsHR Systems of Record

Poor ExperienceInefficient, Costly

No Visibility


“When is open enrollment?”“How do I promote someone?”

“There’s an error on my paycheck…”

ITHR

Operations

PayrollEmploy

eeRelatio

ns

Facilities

DepartmentsHR Systems of Record

• Consumerize the Employee Service Experience

• Increase HR Efficiency, Reduce Cost• Gain Visibility to Improve Service


The ServiceNow SolutionEmployee Portal & Smart

ServicesCase & Knowledge

Management

• Manage the interactions between HR and employees

• Enable employee self-reliance • Make HR services employee centric


440+ Companies Have Chosen ServiceNow for HR Service Delivery


HR Service DeliveryJourney to Transformation

Managed Interactions

Self-Reliance

Smart Services

Low Tech,Manual

Case for the Less-Is-More HR Shared Services Model

The “Hockey Stick” Curve of Technological Change

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Technological change occurs at an accelerating pace, which may be depicted by a “hockey stick” curve.

Ogburn’s Theory (1922)• Technology is the primary driver of social change• Technological progress goes through phases:

Invention Diffusion Adjustment➤ ➤

Diffusion is the socialization of new inventions which leads to convergence of thought and thus new inventions

“Cultural lag” is the period during which culture struggles to adjust to new technologies

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Corollary: The internet and cloud computing have a dramatic accelerating effect on the diffusion process

In The Beginning

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Alfred Sloan

The Evolution of Shared Services

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Pre-Digital Model

Cloud-BasedModel

Mainframe Model

Client-Server Model

1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s

Telephone (proliferation)

Long Distance Calling

Carbon Paper

Computer Networking

Client-Server Computing

Email/Internet

Cloud Computing

Mobile Apps

Social Media

Personal Computer

Packaged Software

Mainframe Computing

Magnetic Data Storage

Real-Time Mainframe

(a.k.a. “green screens”)

The Big Question: What’s Next?

Evolutionary Perspective

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Waste for Less Business Case• Labor rate-oriented

• Transaction/SLA-focused

• SOP/KB/CRM-dependent

• Organizing principle: Perform different types of work at the lowest cost, most skill appropriate level

• Economic imperative: economies of scale

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Rate x Time = Cost

Less Waste Business Case• Process oriented

• Outcome-focused (holistic)

• Knowledge/ skill-dependent

• Organizing principle: Deliver outcomes with minimal waste

• Economic imperative: economies of flow

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Rate x Time = Cost

Less Business Case• Leverage consumer-grade cloud HR service

delivery solutions and other self-service enablers

• Don’t improve the process, obliterate it

• Organizing principle: Teach to fish

• Economic imperative: economies of demand

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Rate x Time = Cost

Eli Goldratt on Achieving Technology ROIAchieving the ROI promise requires answering four sequential questions:1. What are the capabilities of the new technology?2. What business limitations do these capabilities diminish?3. What rules1 exist today to address these limitations?4. What new rules should be adopted to leverage the new

technological capabilities?

1Rules can be policies, defined procedures, defined roles, controls, authorizations, conventions, etc.

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The Four Questions and Gen 3 Shared Services1. What are the capabilities of the Gen 3 shared services model?

• Broad and deep self-service capabilities• Ability to create custom self-service transactions with

configurable workflows and APIs• Integrated transactions with configurable workflows• Virtual “artificial intelligence” assistance• Process robotics• Mobile access to information and transactions• Vast market of inexpensive SaaS applications

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The Four Questions and Gen 3 Shared Services2. What business limitations can these capabilities diminish?

• Expert processors required to administer routine transactions• Employees and managers often require hand holding from local

HR or HRSS contact center• Manual processes required where self-service option is not

available• HR must review transactions to ensure compliance and

correctness• Employees and managers must have access to a computer to

access online information and transactions

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The Four Questions and Gen 3 Shared Services3. What “rules” exist today to address these limitations?

• Multi-tiered service delivery roles• SLAs to manage manual performance levels• HR approval requirements• Centrally located HRSS staff• Alternatives to self-service provided• Kiosks in non-office work environments

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The Four Questions and Gen 3 Shared Services4. What new rules should be adopted to leverage these capabilities?

• Self service as the service• Comprehensive, consumer-grade portal and self-service• Smart phone as kiosk/ scanner /fax machine• HRSS staff located wherever it makes sense• Gen 2’s tier 2 = Gen 3’s tier 1• Fishing instructors in HRSS

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Other Gen 3 Business Case Rules• Account for employee time and effort

• Focus on cost per valued outcome vs. transaction

• Compare future state A vs. future state B or C; not future state vs. current state

• Keep investment horizon short

• Virtual centralization vs. physical centralization

• See beyond hard-dollar benefits

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• Don’t miss Knowledge17, May 7 – 11, Orlando

• Join us at:• ServiceNow HR Summits: coming to a city near you

• HR Shared Services & Outsourcing Summit, May 15 -18

• Learn more at www.servicenow.com/hr

Q & A

http://www.servicenow.com/hr