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HR Shared Services: Realising the Full Potential of HR Shared Services

Business Intelligence
February 1, 2004
143 Pages - SKU: BTAI1363144

Abstract Table of Contents Related Reports

Some companies have made dramatic improvements to the efficiency and effectiveness of HR through the introduction of shared services. But as many companies have discovered to their cost, there is no guaranteed payback from moving to shared services.

One survey found that while half the companies surveyed targeted savings of 20 per cent or more from the move to shared services, this was achieved by only a third. Over a quarter of the organizations surveyed achieved less than 10 per cent savings. Yet, for some companies the returns have been substantial. Standard Chartered achieved an $8 million saving with its move to HR shared services. Nor are savings the only form of payback. The introduction of shared services helped Scotiabank to raise its customer service performance to number one position for two years running.

Ten steps to success The report identifies the ten essential elements that underpin successful planning and implementation and shows how these factors are applied by high-achieving companies. Companies that implement effective HR shared services are successful because they:

Win management support
Plan for success
Design for efficiency and service
Communicate and consult
Build strong staff resources
Create a service culture
Draw on your e-HR strengths
Set the right goals
Apply the right measures
Drive the process forward

HR Shared Services - Achieving the business benefits provides you with a clear analysis of all these principles and illustrates, with practical examples, how to put them into practice.

Use HR Shared Services - Achieving the business benefits to help you to:

Create a robust business case for HR shared services
Develop a sound implementation plan
Evaluate the options of retraining existing staff or recruiting new staff
Establish which HR services to transfer to a shared services centre
Win buy-in from operational managers
Gain the enthusiastic support from senior management
Balance improved service delivery with lower cost operations
Develop Service Level Agreements that are realistic and practical
Identify customer needs and opportunities for adding value to the business
Use web-based systems to implement self-service
Handle the change management challenges posed by shared services
Anticipate and handle staff resistance
Establish meaningful measures of service performance
Redesign processes to maximize the benefits of shared services
Determine the most appropriate location for a shared services centre
Choose the most appropriate form of shared service centre for the organization
Balance the relative merits of shared services and outsourcing
Reposition HR as a strategic partner in the organization
Assess your own capabilities to migrate to shared services
Plan your own route to effective HR shared services.

The report will also tap the knowledge of a number of expert advisors to provide a guide to best practice, as well as the common pitfalls to avoid, including

Bob Cecil and Laura Sandstrom, Gunn Partners, an Exult Company
Ron Bradley, Corporate Renaissance Group
Andrew Muras, President, Mevatec Group
Laurel Forst, Amherst Group
Andrew Kris, Akris.com.

Author Profile
Acknowledgements
Overview:From Outsourcing to Insourcing:the development of the shared services concept: Executive Summary; The move to outsourcing and the birth of shared services; Outsourcing HR Services; The core and non-core services debate; Shared Services as an alternative to outsourcing; From cost to value: developing a customer-service ethic; The report: remit and recommendations; Case Studies: Best practice lessons and advice; Realizing the Potential of Shared Services; Ten steps to creating an effective shared services centre
Section 1:Making the Business Case: Executive Summary; Establishing the business basis for shared services; Making the case:identifying the business benefits; Making the case: The benefits to the HR function; Key options:When to use shared services and when to outsource; Key options: which services to include and exclude; How shared services can help to reposition HR; Self-assessment checklist
Section 2: Creating a Robust Plan: Executive Summary; The principles of sound planning for HR Shared Services; Gaining buy-in at all levels of the organization; People-combining the right skills and capabilities; Costing, valuing and redesigning processes; Teams-for knowledge sharing and problem solving; Information technology; Self-assessment checklist
Section 3: Evaluating and Re-engineering Processes: Executive Summary; Avoiding the technology trap; Identifying core and non-core processes; Evaluate the benefits of moving processes to a shared service centre; Deciding whether to re-engineer prior to the move; Identifying best practice benchmarks; Establishing the geographical coverage of shared services; Self-assessment checklist
Section 4: Culture and People Issues: Executive Summary; The change management challenge; The need for communication strategy; Retaining the staff you want to keep; Recruiting new talent; Training; Job satisfaction and career development issues; Creating a service culture; Self-assessment checklist
Section 5: Aligning HR Services with Customer Needs: Executive Summary; Ensuring a customer focus from day one; Should the centre act like a business; Internal marketing; Applying service level agreements; Self-assessment checklist
Section 6: The Future of Shared Services: Executive Summary; Potential largely untapped
Section 7: Case Studies: Sun Microsystems; Standard Chartered Bank; Procter&Gamble; Eastern Health Shared Services; Scotiabank
Section 8: Frequently Asked Questions
References

HR Shared Services: Realising the Full Potential of HR Shared Services

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