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SharedServicesforHR PeterHoran MercerHumanResourceConsulting 2006 HRSharedServicesWhytheinterest SharedservicesintheUShasbeenshowntosave28 ofHRlabourcosts Aswellasbetterquality consistencyandemployeesatisfaction DoesitworkoutsidetheUS Inalargecountryorregion InLatinAmerica inEurope inAsia inChina MercerHumanResourceConsulting 2006 TheSuccessofSharedServicesItworks but Q1 Hasitbeenasuccess Yes Ahugesuccess whenwellplannedandexecuted Q2 Doesitworkforallorganizations Yes but theimpact challengeandROIvariesbetweenorganizationsQ3 Doesitworkineverycountryorregion Yes but theimpact challengeandROIvariesbetweengeographiesQ4 Doesitactuallyresultinbettersupporttothelocalbusinesses Yes providedthat HRskillsandcompetenciesareappropriate Onesizedoesnotfiteveryone MercerHumanResourceConsulting 2006 HRSharedServicesCriteriaforagoodbusinesscase Thefinancialbenefitsdependon LabourCostsJustlikeoutsourcing LocatetheSSCinlowercostlocation LocationsMoresitesordivisions Moreduplicationorvariation Moreopportunitytoimprove PopulationLargeworkforcemeanseconomiesofscalefromconsolidation ConsistencyMorevarietyinprogramsandpolicies andparticularlyregulatoryorcultural thetougheritistoconsolidate MercerHumanResourceConsulting 2006 CriteriaforBusinessCaseHowitvariesbyregionbyregion Driversarethesame impactvariesdramaticallybetweenregions USA Europe LatinAmerica Asia China LabourCost H L H L Locations M H M H Population H H M H Consistency H M M L MercerHumanResourceConsulting 2006 TypicalHRSharedServicesModelInthefinalstate Geography BusinessUnitHRBUspecificAdministrative Geog BusUnitHR HRCentreofExpertise HRServiceCentre OutsourceProviders LocalHRService HRSharedServices BusinessUnits Self Service Managers Employees TechnologyPlatform MercerHumanResourceConsulting 2006 EmergingModelforInternationalHR Ascommonaspossible asuniqueasnecessary HRPartners HRCOE Administrative Transactions LocalHRTeams HRGovernance Common Shared Unique Local LargeWorkforce SmallWorkforce VirtualSharedServices PhysicalRegionalSharedService Local PhysicalRegionalSharedServices LocallyOutsourced RegionallyOutsourced Local Regional Local Regional Local Local mottoofCiscoSystems Sub RegionalSharedService MercerHumanResourceConsulting 2006 PhasingtheChangeRationalisationisthefirststep Don tjuststandardise maximiseconsistencyinprogramsandprocessesConsistencywillenablebetterqualityandexploitationofeconomiesofscale Thejourneymightbeaseriesofsmallersteps MercerHumanResourceConsulting 2006 CriteriaforSuccessNotsameasbusinesscase RationalisationToachieveeconomiesofscaleTechnologyTogetbeyondimmediateborders GovernanceMostcommoncauseoffailureOwnershipMostcommoncauseofROIerosion Showstoppers Enablers SharedServicesisnotoptimisation it srealchange MercerHumanResourceConsulting 2006 GettingReadyforSharedServicesWhatyouwanttodo Highlevelofintegration consistencyandorganisationalcommitment Desire Ability BestPractice JustStarting Consolidating SharedServices Notready Veryready LowROI HighROI MercerHumanResourceConsulting 2006 UnintegratedplatformsInconsistentdataandprocessesLeadershipunwillingtomandateconsistencyHRnotprofessionallytrained PlatformsDataLeadershipCompetence GettingReadyforSharedServicesWhatyoucando JustStarting SomeintegratedplatformsWorkingtowardqualitydataWillingnesstowardconsistentdataandprocessesLeadershipcommitmentIncreasingprofessionalcompetencies Consolidating IntegratedplatformsHighqualitydataConsistentandintegrateddataandprocessesTotalorganisationalcommitmentProfessionallytrainedHRFocusonmeasurement SharedServices MercerHumanResourceConsulting 2006 Internat lTelecomsGreatresult CEO VPHRcommitment GlobalUSChemicalAbandoned Couldnotagreegovernance GlobalUSFoodCompleteautonomy Startwithrationalisation GlobalHi TechFocusonpolicyandprocessharmonisation GlobalJapaneseHi TechInternalteams USusedasthepilot GlobalGermanManufacturerAbandoned Challengetoobig Returntooslow SomeExamplesWithvarietyofoutcomes MercerHumanResourceConsulting 2006 CommonMisconceptionsaboutHRSharedServicesEconomyofscaleanddepthofexpertiseisbetterforbusinesssupport DecentralizedMorecompetitivelocalserviceFewlocalHRservicesadddistinctvaluetobusiness MoreeconomicallocalserviceFeweconomiesofscaleorleverageoftechnology knowthetruecost benefitofserviceLocalscangivebetterserviceSmallvolumesresultinfragmentationwithhigherriskofinconsistency inaccuracy BetteremployeerelationsFastqualityservice supportedbybetterexpertiseprovidesbetterserviceandcustomersatisfaction ConsolidatedBettercorporatecontrolDependsonthegovernancemodel CannotcopewithauniquelocalbusinessesEasiertohavespecialiststhatcanensuredepthANDconsistency CumbersomeandexpensiveConsolidationaffordssuperiortechnology bettermeasurementandlargermoreknowledgeableresourcepool NotberesponsivetomybusinessmissionSpecialistresourcepool ifcoordinatedbytheBusinessHRpartner candeliveramoreresponsiveservice MercerHumanResourceConsulting 2006 OperationofHRSharedServicesModelWheredoesithappen Whereshouldithappen CurrentStatev FutureState IdentifyBusinessNeed HighLevelDesign DetailedDesign RolloutNewProcess OperateNewProcess DefineSuccessMeasures Policy Strategy GlobalGovernance RegionalHR SharedCenterofExpertise SharedTransactionCenter BusinessUnitHR SiteHR MercerHumanResourceConsulting 2006 DeliveringHRServiceinDiverseRegionsOrganisationalOptions DomesticCountry1 RegionHQ DomesticCountry3 DomesticCountry2 RegionHQ ExpatriateManagement Option3 CentresofExcellence RegionSSC Country4 Option4 RegionalCentre RegionalCentre RegionHQ RegionalSouthern RegionalNorth SomehighleveloptionsofthetypeofHRorganisationalmodelsthathavebeendeployedinEurope MercerHumanResourceConsulting 2006 Mainreportingline Secondary administrativereportingline HRFunctioninaRe
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