14-15 September 2016

Lisbon, Portugal

#DeloitteSharedServices

Deloitte Shared Services, GBS & BPO Conference

Breakout 7: Driving productivity and business impact through analysis and synthesis

Laurence Collins and Neera Mayor, Deloitte

The power of analysis and synthesis

Progressive shared service centres are increasingly turning to analytics for ways of optimising their contribution to both financial and business performance, by identifying and isolating the components that contribute to positive and negative productive time

In today’s session we will cover:

The link between shared services centre activity and business impact

The push and pull levers to deliver HR services balancing business demand and capacity, cost to serve and quality of experience

How to measure shared services centre productivity, and how to improve productivity through analysis and synthesis

Case study examples to bring analytics and business impact to life

How do we optimise shared services to be scalable, cost efficient and sustainable?

We need to identify the push and pull levers to deliver HR services balancing business demand and HR capacity, cost to serve and quality of experience

Optimising quality and effectiveness of shared services to

deliver organisational efficiency

Quality of

Experience

Cost to

Serve

Impact

Supply and

Demand

Impact

Linking shared services centre activity to business impact

The “impact” of an effective shared services is maximising the ROI from supply and demand control factors, to ultimately deliver value and performance for the business.

• Understanding the process profile helps identify problematic processes and allows organisations to consider the knock on impacts.

• Create predictive capacity models to inform supply and demand for shared services

• Create modelling or simulation capabilities to examine possible ways to eradicate waste

• Consider implications from the findings of the current operating model and suggest ways to drive optimisation of the function

• Utilise scenario based modelling to set target potentials and track progress and ROI

Data points to

establish an

impactful

shared service

KPIs (e.g. no. of

recruits, training

courses delivered)

Key process

measures from

the taxonomy

Customer Data Channel Data

Scope and number

of services offered

How can we create an ‘impactful’ shared service?

Impact

Supply and demand• How do I effectively manage my SSC resources in order to be

able to respond to peaks and troughs of service demand?

• Where do I place my resources in light of my changing

customer mix and channel strategy?

Approach

Ensuring the right people in the right roles, doing the right thing at the right time. How sizing and prioritisation can help optimise your shared service centre.

Sizing Profile

Services

DemandResources

Employees served

Webform PhoneSelf Service

PortalFace to FaceE-mail

Payroll Core HR Recruitment Employee

Relations

Volume and task time information per Service Catalogue process used to build a more accurate requirement of the FTE.

Takes into account shrinkage factors Provides a resource profile for Tier 2

specialist roles based on demand of services from customer base

Current and expected volume demand by each country of services

Headcount by language and Business Function

Productivity & working hours Shrinkage factors such as attrition rate,

non-productive time of workforce Desired level of service

The output displays full SSC model Provides a breakdown of FTE required

for each process including minimum required to serve a business function or language

Ability to re-size based on changing business needs and market demands

Input Sizing Output

Case study - Sizing

Problem

Approach

Challenges

Solution

What would the future resource profiles look like for 3 service hubs to maintain target levels of service?

Global organisation with 6 languages

2 tier of service delivery

Bottom up approach using volumetric data to run a sizing model.

Built shared service catalogue

Segmented activities by advisor level (Tier 1 & 2)

Lack of accurate data

Reliable process volume demand was extrapolated from more mature countries to regions with a lack of data

Sizing model configured based on client data which can be re-run as the business changed

Clear future resourcing model to enable achievement of objectives

Business impact of optimising supply and demand

Improving recruitment processing and understanding the attrition drivers enabled a retailer to identify and manage a £5.5m per annum opportunity benefit

Case Study: A European retailer had broken recruitment processes with no way to prioritise vacancies or respond to the business’ demand for critical Store Manager roles.

• By linking financial and HR data, analysis showed a clear correlation between the length of Store Manager vacancy and sales revenue, an impact of c.£5.5m per annum.

• SSC was unable to deliver on business demand, recruitment and on boarding was slow and inefficient.

1 Understand the impact

Clear negative cost impact that differed by store size, with largest impact in medium sized retail stores.

Total opportunity cost calculated at 0.5% p.a. of gross margin, based on a drop in sales revenue in stores without a manager

2Approach

Recognising that different store sizes and vacancy lengths = different impacts of revenue loss, a resourcing prioritisation tool was built.

Sizing model was built to better understand resources required to deliver on business demand.

3

Solution and benefits

Optimising supply and demand enabled an improvement in store manager recruitment and minimised vacancies.

• Improved internal demand management with greater ability to predict resources required based on business changes and market conditions.

• SSC better able to help the business on-board and deliver outcomes

• Increased visibility of capability and cost within the SSC

• Minimised the opportunity cost by targeting recruitment at stores where it would have the greatest impact on the bottom line

Cost to serve• What is the cost profile of my shared service delivery model

and what is driving it?

• How can I increase productivity levels of existing resources?

Cost to serve – How do you optimise your SSC?

How you match the supply to the demand and identify ways in which you can optimise and reduce the cost of the current Operating Model

Route 1 – Traditional Analysis

Activity Assessment & Process Optimisation

Context:

• Identify the amount of time & activity your function are spending on repeatable and manual tasks in order to create efficiencies at both process and task level

Approach:

• Detailed analysis of how much time colleagues spend on processes / rework taking into account the cost profile of the roles carrying out the activity and spend across the function

Outcome:

• In-depth analysis on KPIs and performance to ensure the Shared Services strategy and operations are successful and delivering the requirements of the business

Route 2 – Predictive Analysis and Insight

Context:

• Using predictive modelling, driver based forecasting and simulation modelling to provide the parameters and risk profile to understand the thresholds that can be tolerated

Approach:

• Software platforms utilising all your data sources to analyse peoples behaviours and predict the future of your workforce

Outcome:

• Enables effect planning, smoothing of resources and a more consistent approach to delivery

Data / Metric Driven

Real User Data

Point-in-time view

Predictive

Dynamic

Prescriptive

Data / Metric Driven

Real User Data

Continuous data feed

Predictive

Dynamic

Prescriptive

Optimising your SSC: Route 1 - Activity Impact Measurement

Optimising your SSC: Route 2 - Predictive Analysis and Insight

We now have the ability to use people data to predict people behaviours and

We now have the ability through analytical methods, models and software to shift from the using static,

point in time data to make decisions, to a positions where we can use predictive analysis to make dynamic

decisions on HR Data

Qlearsite could be changing the way we make analytics decisions in HR

Predictive modelling, driver based forecasting and simulation modelling could be used to:

Provide the parameters and risk profile in understanding the thresholds that the shared services can tolerate and how ‘shocks’ can better be managed.

Provide more effective planning, the smoothing of resources and a more consistent approach to delivery.

Drive more automated and forward thinking decision planning and making. Reducing the need for reactive planning and human management.

https://youtu.be/rGqICbIkh2Q

Optimising your SSC: Predictive Productivity Markers

By baselining the as-is landscape from a variety of data sources organisations are able to identify areas of inefficiencies and improvement; this enables you to identify pockets of waste to reduce in the function

Example: Recruitment Process highly fragmented with significant amount of management time being spent on transactional tasks. Significant opportunity exists to improve the process and have a positive business impact

Work delivered by the wrong

role

• Inefficient allocation of resource with high cost colleagues delivering low value work

• Work is being done wrong / again which contributes to overtime and a less productive working time for each employee

• Time spent in the SSC delivering work that does not benefit the SSC bottom-

line (directly or indirectly)

• Fragmentation, inefficient allocation of resources, rework and non-functional work all contribute to waste. Once the amount of waste is understood –interventions can be better targeted to reduce it

Fragmented diluted delivery

Rework Waste in the SSC

Non-functional

Fragmentation & Diluted Delivery

Colleagues touching multiple processes for a limited period of time meaning their effort and attention is spread too thin

The Waste Equation

Business Impact of cost to serve

Activity Impact Measurement (AIM) uses analytics to identify positive and negative productive time, and prioritises areas for improvement to maximise efficiency and quality of service delivery.

Quality and effectiveness• Are the shared service centres meeting target service levels?

• How can we understand services at the risk of missing a KPI

and intervene so it doesn’t impact customer service?

Scoring calls and providing detailed feedback quickly to improve staff communication

Offer training and learning to increase consistency level across the SSC

Through gamification to provide continuous improvement across employees

Quality and effectiveness

Understanding how quality drivers in shared services impact service delivery

New technologies are allowing rapid feedback and development to improve for shared service staff instantaneously:

Gweek Speech Intelligence Analytics scores SSC advisor communication to improve “quality” of shared services by:

Increased Customer Satisfaction

Achieving Compliance

Shared Service KPIs and SLAs are met

Ensuring consistency of services across regions

Quality

Gweek and other technologies are helping shared services achieve…

Quality – Gweek Speech Analytics

Gweek is a speech intelligence analytics application that can record and provide feedback on how to become a more personable and effective communicator

The business impact of “quality” Shared Services

Improved Shared Services for Supermarket chains could be leading to better store managers and store performance

If….

• Shared services can improve the quality of their service delivery

• Store managers are more likely to receive what they need, when they need it

• They can spend more time on the shop floor!

Can improving the quality Shared Services delivery

lead to better Front-line performance?

We’ve proven the link in several environments –

including in retail!

Greater staff productivity

Higher overall store ratings

Increased sales

Increased store cleanliness

+

In Conclusion

Quality of

Experience

Cost to

Serve

Analytics is a powerful enabler to achieve maximum business impact through SSC optimization.

A multifaceted approach to analytics in shared services;

Impact

Supply and

Demand

Supply and

Demand Impact

Utilizing analytical techniques such as sizing to ensure resources are available and linked to business demand.

Analytics enables a deeper understanding of where costs are incurred and process inefficiencies within the SSC. Greater visibility ensures minimal wastage and efficient use of resources.

Measurement and impartial scoring of SSC quality enables continuous improvement for maximum impact on service delivery to the business.

Analytically enabled SSC created impact through;

• Increased support ensures people are focusing on what they do best to deliver to business objectives

• Anticipate future requirements

• More agile organisation equipped to respond to changing business conditions

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