Quantifying the value of employee activity
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Transcript of Quantifying the value of employee activity
Business Modelling on Personnel Contribution
London, March 2016
Greg Tzavelopoulos, Head of Corporate Performance Management, Pipelife International GmbH
CPM / Activity Based Costing Business Modelling: on Personnel Contribution
Business Modellingon
Personnel Contribution
Personnel Cost
Change Management
SharedServices
Time Allocation
Personnel Development
Value Chain Analysis
Increase Quality Reduce Costs
CPM / Activity Based Costing
40 20 20 A
30 20 10 A
10 10 B
5 2 3 C
10 5 5 C
3 3 C
2 2 C
Personnel Time Allocation
Marketing/SalesDirect Sales
Contact Customer
Visit Customer
Sales Rep
Management
Sales AdminMaintain CRM
Projectsfor
Productsfor
Systems
ReportingReport ResultsImprove Data
Quality Benefits
Cut low VA tasks
Focus on high VA tasks
Measure contribution
Manage Time
Set Org. Targets
CPM / Activity Based Costing Personnel Development
FuturePresentPast
KPIs
Manager
Position
Activities
Projects
Improvements
Personnel
Soft Skills
Hard Skills
Experience
Training
Rol
eC
apac
ityPe
rfor
man
cefor workers, employees,
ext. consultants
Registered HR data
Registered ABC data
Personnel development
Future contribution
Career Plan
KPIs
Each job position requires
a certain minimum skillset Quality Benefits
Track personnel skills
Plan future tasks
Delegate projects
Fulfill career path req.
CPM / Activity Based Costing Resource Value Chain Analysis
Purchase Production Warehouse Delivery
Adm
inist
rativ
eO
pera
tive 60
100
Customer
61
64
67
70
72
73
74
75
84 88
86
93 SalesCostProfit
100 93 7
Quality Benefits
Track value chain
Product cost analysis
Optimize operations
Question processes
Mgmt
CPM / Activity Based Costing Personnel Cost
FTE Total Sales Purchase Prod/ion Logistics Admin2014 2013 2014 2013 2014
Total 63 65 963.000 953.000 169.530 79.800 222.490 65.360 425.820
Management
General Manager 1 1 100.000 97.000 30.000 15.000 20.000 3.000 32.000
Finance Director 1 1 76.000 74.000 3.800 3.040 1.520 3.040 64.600
Sales Director 1 1 74.000 72.000 49.580 3.700 5.180 2.220 13.320
Prod. Manager 1 1 72.000 70.000 2.160 2.160 40.320 2.160 25.200
Sup. Chain Man. 1 1 65.000 64.000 1.950 16.900 3.250 29.900 13.000
White Collar
Controllers 2 2 52.000 52.000 1.040 1.560 49.400
Accountants 4 4 46.000 46.000 46.000
IT Experts 1 1 47.000 47.000 47.000
Purchasers 1 1 42.000 42.000 34.440 1.260 6.300
Sales Force North 7 8 48.000 48.000 38.880 1.440 1.920 5.760
Sales Force South 12 11 52.000 52.000 42.120 1.560 2.080 6.240
Sales Desk 5 5 43.000 43.000 43.000
HR Team 1 1 39.000 39.000 39.000
Office Mngment 1 1 35.000 35.000 35.000
Blue
Collar
Shift Leaders 3 3 40.000 40.000 40.000
Production Labour 12 13 32.000 32.000 32.000
Maint. Leader 1 1 40.000 40.000 40.000
Maint. Workers 3 4 31.000 31.000 31.000
Warehouse 5 5 29.000 29.000 5.220 23.780
Cost Benefits
Monitor:Full resource costCost developmentCost per process
Plan accurately the cost of new recruits
Optimize process cost
CPM / Activity Based Costing Change Management
Automate Production
Outcome
Improve Current Workflows
Automate/Eliminate Low Value Added Tasks
unloading unloading
Cost Benefits
Compare human/machine cost
Eliminate low VA tasks
Automate processes
Focus on productive tasks
Simplify workflows
CPM / Activity Based Costing Shared Services
Cost Benefits
Measure cost of doing things multiple times
Redesign workflows
Reduce time required
Reduce cost
Measuring quality of services
Increase quality
CPM / Activity Based Costing Organisational Behaviour
Complex systemscould be simpler
than simple people
Simple but hardComplex but easy
MetricsConflicts
A strategist defines what to doand a project manager how to do it
Resistance vs Acceptance
Product vs Sales
Complexity vs Simplicity
Effect = Quality x Acceptance
Time = Quality + Acceptance
IT Complexity = User Simplicity
CPM / Activity Based Costing
Profitability
Indirect Cost Analysis
Model Mechanics
CC 01 CC 02 CC 03 CC 04 … CC 99CC 04
Delivery Sales AdminProduction Purchase
Direct Analysis
Gross SalesDiscountBonusFreight Rev.Freight CostMaterialEnergyPackaging
(per product and customer)
CPM / Activity Based Costing Closing
Thank you for your attention