Copyright © 2010 Hitachi Data Systems. All rights reserved.
HR Transformation through Shared Services
“Unleashing the Human Potential”
March 2011
Imtiaz ShaikhVP, Americas HR Corp. Functions and Operations
Confidential – Do not Distribute without written consent from HDS
2© 2011 Hitachi Data SystemsConfidential
� Founded in 1910
� 900 subsidiaries
� 360,000 employees
� Over 760 PhDs
world’s largestintegrated electronics companies
No. 47 on the 2010 FORTUNE Global 500®
One of the
Hitachi, Ltd. (NYSE:HIT/TSE:6501)
� Total FY09 sales of $96B
� FY09 R&D Investment: $4.0B
– Approx. 20% in IST
� Approx. $6.2B in cash
3© 2011 Hitachi Data SystemsConfidential
Hitachi Data Systems at a Glance
Excellence in Customer ServiceAwarded to Hitachi Data
Systems by:Wholly owned subsidiary of Wholly owned subsidiary of Hitachi, Ltd. (NYSE:HIT)Hitachi, Ltd. (NYSE:HIT)
The focal point for Hitachi, Ltd. for storage The focal point for Hitachi, Ltd. for storage
infrastructure solutions, storage management infrastructure solutions, storage management
software, and storage consulting servicessoftware, and storage consulting services
�� Formed in 1989Formed in 1989
�� Direct and indirect sales in over Direct and indirect sales in over
100 countries & regions100 countries & regions
�� 4,300 employees and expanding4,300 employees and expanding
DATA DRIVES OUR WORLDAND INFORMATION IS THE NEW CURRENCY
4© 2011 Hitachi Data SystemsConfidential
Journey to unleash the human potential
- Where to start?….
HR Transformation through Shared Services
5
Realizing HR Transformation
� Historical Challenges
� Need for a Strategic Shift
� Create Vision
� Plan a Roadmap
� Execute-Execute-Execute
� HR Vision Realized!
6
� Historical Challenges
–HR value not visible
–HR Data everywhere– no accuracy
–No Control on Labor Cost
–No Strategy or Vision
–HR Credibility as good as HR Value
Realizing the HR Transformation
7
HRIS – Challenges
Disjointed processes and systems inhibits data
inaccuracy, delays in updates and reporting
Key compensation data process outside of Oracle HRLack of controls
Manual specific resource dependent process
Lack of global organization visibility
Duplicate maintenanceInconsistent data definitionsManual resource intensive process
Dependencies on regional HR
Delays/Inaccurate data submissionsDependency on F&A in EMEA multiple submission
Multiple source of recordkeeping,
Hard to find and locate records Not user-friendly
Out-of-date Employee Directory
Delays in LMS access for New Hires
No visibility to ongoing issues
Redundancy in responses
Lack of drill down HC
analysis capability
Missing key capabilities in all areas
No integration btw systems and processes
Inefficiencies in Req
Approval & Offer Process
Multiple manual activities
Resource intensive
Out-of-date, scattered,
inconsistent and hard to
search information on Intranet
8© 2011 Hitachi Data SystemsConfidential
HR Transactions – Process in Rear View
Manual Data MaintenanceHR or “Shadow HR”
Job Changes
Transfers
Termination
LOA
Rewards
Oracle EE SS(US & EMEA)
Oracle Mgr SSView Only
(US & EMEA)
HR Requests(APAC)
Emails
EAR Forms
Phone Calls
Oracle HR (ROW)
Oracle HR (EMEA)
CHRIS(Australia)
HR Requests(APAC)
Excel Spreadsheets(LA, Asia)
Manual Letters(communication)
Payroll, Benefits,Vendors,
HDS Systems
Manual Comp(Merit, ELTI &
STI)
HR credibility is at its lowest point
9
� Need for a Strategic Shift
– “Transaction Processor” to “Business Growth Enabler”
– Tactical to Strategic
– Reactive to Pro-active
– Align to business strategy
– Meet business needs
– Define HR value
– Align Skills
Realizing the HR Vision
10© 2011 Hitachi Data SystemsConfidential
Know Your Starting PointTransactional versus Strategic
Develop, monitor and deliver programs that
enhance the company’s overall performance and
HR’s effectiveness/contributions to the company
as a whole
47%
39%
10%
4%% Time and Effort
86% of total HR activity is focused on HR transactions and handling queries.
The proportion of time spent on HR strategy and programs is low -
Much more time is spent on transactional activities.
Processing Transactions
Programs
Strategy
Advice/Employee Relations
Process employee
transactions more
efficiently
Align HR activities and programs with the company’s
strategic direction
20%
20%
20%
Strategy
Processing
Txns
Programs40%
Advice/Employee
Relations
% Time, Effort, Cost
40%
Processing
Transactions
Programs
Strategy
30%
25%
5%
% Time, Effort, Cost
Handle inquiries on policy and
provide advice more effectively
and efficiently
The trend is for organizations to cut volume of transactions and advice needed through self-service (IT enabled) or to reduce costs of transactions and advice via new organization models / outsourcing. This allows the HR organization to
better focus on activities that are of added value to the Business.
Advice/Employee
Relations
Snapshot from 2006
HR ActivityBreakdown
Increasing HR Organizational Value
Source: Study conducted by Hay / McBer.
11
�Create a Vision
–Vision that inspires HR and its Clients
–Holistic
–Aligned with Business Vision
–Highlights Value and Business Alignment
Realizing the HR Transformation
12
HRIS Vision- Enabling Best in Class HR Capabilities
13© 2006 Hitachi Data SystemsConfidential
Compensation Vision: “Pay for Performance”
Compensation Platforms
Global – LocalGlobal Design, Local Implementation
Performance Management
Job StructureBase Pay Practices
Variable PayPrograms
Technology Platform
Technology investment is necessary to create a solution that is “build to last”
Pay For
Perform
ance
Culture
14
Values
Talent Management Vision & Framework
Stra
teg
y
Leadersh
ip C
riteria
& A
ttribute
s
Workfo
rceP
lannin
g
Onboard
ing
Tale
nt
Acq
uisitio
n
Deve
lopm
ent
Pla
nnin
g
Metrics &
Measu
rem
ent
Solu
tions
Bu
sin
ess
Imp
ac
t
Employee Development
Performance Management
Leadership Development
Succession Planning
Diversity and Inclusion
Communications, Branding and Social Media
Systems Strategy
Deve
lopm
ent
15
�Plan a Roadmap
– Prioritize
– Align
– Publish
Realizing the HR Transformation
16CONFIDENTIAL © 2009 Hitachi Data Systems
Global HR 3-5 Year Strategy & Roadmap
CREDIBILITY COLLABORATION CONTRIBUTION
Stabilize/Execute
•Global HR Database•Process Design•Knowledge Portal/Case Management System•Employee Survey•Manager/EE Self Reliance Portal
•HR Dashboard•Data Reporting•Data Analysis•Governance
•Cross functional integration•SOX Compliance/Internal controls•Productivity Increase•Scalability to support growth
HR Fundamentals
DeliverValue
•Performance Management System
•Pay for Performance Culture
Performance Management
Trusted PartnerBest in class HREnable
Growth
•NMAP•360 Feedback•E-learning•Leadership Development (3E)•Talent Reviews•Company Values/Culture
Organization Development•Skills Inventory•Career Development•Competency Framework•Succession Planning
DriveChange
•HC Analysis and Control•Dashboard•Diversity•Forecast Human Capital
Workforce Planning•Requisition Approval System
•Recruiting Solutions•Onboarding Platform
StrategicAlignment
•Variable Pay Platform•Pay for Performance Systems•SOX Compliance/Internal controls•Labor Cost Control•Attract and Retain Talent
Compensation & Benefits Platform• Compensation System• Standard Job Families, Job Matrix, Salary Bands, Salary Levels
• Career Path• Competitive Market Analysis
• SOX Compliance/Internal control• Increased Performance
Competitive Advantage through Strategic Human Capital Management
•Rewards & Recognition•Benefits Benchmarking
17
� Execute-Execute-Execute
– Project Management Rigor- Prepare for Change
– Creative use of Technology
– Remove Roadblocks-- Always move forward
• 80/20 rule
Realizing the HR Vision - “Unleashing the Human Potential”
18© 2011 Hitachi Data SystemsConfidential
Foundation is critical
19© 2011 Hitachi Data SystemsConfidential
Foundation Global HR database enabling manager/employee self reliance
Global HR database enabling manager/employee self reliance
�Global HR Database�Process Design�Knowledge Portal/Case Management System�Employee Survey�Manager/EE Self Reliance Portal
�HR Dashboard�Data Reporting�Data Analysis�Governance
�Cross functional integration�SOX Compliance/Internal controls�Productivity Increase�Scalability to support growth
HR Fundamentals
Stabilize/Execute
20© 2011 Hitachi Data SystemsConfidential
Foundation
Paperless forms with approval
workflow- Improved efficiencies and
controls
Paperless forms with approval
workflow- Improved efficiencies and
controls
Data Operations Dashboard to
support data entry and improve data
accuracy
Data Operations Dashboard to
support data entry and improve data
accuracy
�Global HR Database�Process Design�Knowledge Portal/Case Management System�Employee Survey�Manager/EE Self Reliance Portal
�HR Dashboard�Data Reporting�Data Analysis�Governance
�Cross functional integration�SOX Compliance/Internal controls�Productivity Increase�Scalability to support growth
HR Fundamentals
Stabilize/Execute
21© 2011 Hitachi Data SystemsConfidential
FoundationSingle Portal for Managers to
Manage Employees
Single Portal for Managers to
Manage EmployeesOnline case management system
with built in workflow to manage
case volume globally.
Online case management system
with built in workflow to manage
case volume globally.
�Global HR Database�Process Design�Knowledge Portal/Case Management System�Employee Survey�Manager/EE Self Reliance Portal
�HR Dashboard�Data Reporting�Data Analysis�Governance
�Cross functional integration�SOX Compliance/Internal controls�Productivity Increase�Scalability to support growth
HR Fundamentals
Stabilize/Execute
Global HR portal with online case
management system allowing HR to
spend more quality time with
business
Global HR portal with online case
management system allowing HR to
spend more quality time with
business
22© 2011 Hitachi Data SystemsConfidential
Foundation
HR Analysis driving business resultsHR Analysis driving business results
Stabilize/Execute
-Data Accuracy-Data Reporting-Develop HR Capabilities-Global Database
-Data Analysis-Data driven decision-Center of Excellence-Governance
-Cross functional integration-Fool proof controls-Self service transactions-Scalability to supporting growth
HR Fundamentals
23© 2011 Hitachi Data SystemsConfidential
A Roadmap to “Pay for Performance”
StrategicAlignment
�Variable Pay Platform�Pay for Performance Factors�SOX Compliance/Internal controls�Labor Cost Control�Attract and Retain Talent
Compensation & Benefits Platform�Compensation System�Standard Job Families, Job Matrix, Salary Bands, Salary Levels
�Career Path�Competitive Market Analysis
Job Structure
• Job content definition
• Definition and assignment of Functional Area, Job Family, and specific job type
• Job codes
• Level definition and career progression
• Policies, guidelines, and processes
Base Pay Practices
• Sales and non-Sales pay ranges known competitive to market
• Country specific pay ranges established
• Policies, guidelines, and processes
Performance Management
• GIP & ELTI bonus plans aligned to market and HDS internal objectives
• integrated with job structure, base pay, and PPR
• Individual Performance Factor (IPF)
• Policies, guidelines, and processes
Variable Pay Plans
• Fully integrated system: Base pay, variable pay, and job structure
• Policies, guidelines, and processes
Compensation Platforms
OracleTechnology investment is necessary to create a solution that is “build to last”
�Rewards & Recognition�Benefits Benchmarking
24© 2011 Hitachi Data SystemsConfidential
Compensation/Benefit Platform Recognition direct tool to improve recognition by
allowing employee/manager nominations
Recognition direct tool to improve recognition by
allowing employee/manager nominations
StrategicAlignment
�Variable Pay Platform�Pay for Performance Factors�SOX Compliance/Internal controls�Labor Cost Control�Attract and Retain Talent
Compensation & Benefits Platform�Compensation System�Standard Job Families, Job Matrix, Salary Bands, Salary Levels
�Career Path�Competitive Market Analysis
�Rewards & Recognition�Benefits Benchmarking
25© 2011 Hitachi Data SystemsConfidential
Performance Management
�Performance Management System�Pay for Performance Culture
Performance Management
� Visibility to performance� Increased Performance
DeliverValue
Performance Management System tied to Pay for Performance
Performance Management System tied to Pay for
Performance
26
�HR vision Realized
– Scalable Infrastructure
• Single Source of HR data
– Compensation Structures
– Talent Management
• Integrated Applicant Tracking
• Performance Management
• Talent Reviews
• Succession Plans
– Workforce Analytics
Realizing the HR Vision - “Unleashing the Human Potential”
27© 2011 Hitachi Data SystemsConfidential
Shared Services Transactions - Self Reliance Portal
Job Changes
Transfers
Termination
LOA
Rewards
Mgr/EE
Self
Reli
an
ce
Glo
bal H
R D
ata
base
Payroll, Benefits,Vendors,
HDS Systems(e.g, Academy)
CompensationManagement Tools
Productivity Governance Global Processes
Web Letters
Administrative Excellence
Performance Excellence
Service Delivery Excellence
28CONFIDENTIAL © 2009 Hitachi Data Systems
Global HR 3-5 Year Strategy & Roadmap
CREDIBILITY COLLABORATION CONTRIBUTION
Stabilize/Execute
�Global HR Database�Process Design�Knowledge Portal/Case Management System�Employee Survey�Manager/EE Self Reliance Portal
�HR Dashboard�Data Reporting�Data Analysis�Governance
�Cross functional integration�SOX Compliance/Internal controls�Productivity Increase�Scalability to support growth
HR Fundamentals
DeliverValue
�Performance Management System�Pay for Performance Culture
Performance Management
Trusted PartnerBest in class HREnable
Growth
�NMAP�360 Feedback�E-learning�Leadership Development (3E)�Talent Reviews�Company Values/Culture
Organization Development•Skills Inventory•Career Development•Competency Framework�Succession Planning
DriveChange
�HC Analysis and Control•Dashboard•Diversity•Forecast Human Capital
Workforce Planning�Requisition Approval System�Recruiting Solutions�Onboarding Platform
StrategicAlignment
�Variable Pay Platform�Pay for Performance Systems�SOX Compliance/Internal controls�Labor Cost Control�Attract and Retain Talent
Compensation & Benefits Platform�Compensation System�Standard Job Families, Job Matrix, Salary Bands, Salary Levels
�Career Path�Competitive Market Analysis
� SOX Compliance/Internal control� Increased Performance
Competitive Advantage through Strategic Human Capital Management
�Rewards & Recognition�Benefits Benchmarking
29
�As administrative HR functions are centralized and employees and managers take advantage of self-service, HR is expected to spend more time on strategic activities.
� Contribute to the development of the organization’s
strategy
� Develop an HR Strategy with activities and programs
that improve workforce performance and support the
organization’s business objectives
� Develop standard, consistent global HR processes
� Establish strategic HR measures
� Develop HR governance and organization design to
deliver on the HR Strategy
� Execute the HR Strategy (e.g., Leadership
Development, Competency Design/Performance Mgt)
� Manage technology-enabled HR service delivery
(e.g., HR Service Centers, HRMS)
� Vendor management
� Reduce HR operating costs per
FTE and technology maintenance
costs
� Decrease cycle time per HR
Transaction
� Reduce cost per hire
� Increase revenue per FTE
� Increase revenue per
compensation/benefit cost
� Improve employee satisfaction
� Reduce voluntary turnover
� Increase retention of key talent
� Increase customer satisfaction
levels
� Reduce time to proficiency
� Improve workforce performance
�Sample HR Activities �Sample Value Levers
� Efficiency
�Effectiveness
HR becomes more effective and enables business value
30© 2011 Hitachi Data SystemsConfidential
Thank you
Imtiaz Shaikh
Hitachi Data Systems
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