Transcript from Christine Briodyâ€™s video interview June 2009
Quantifying the retained organization
Christine Briody’s Biography
Senior Director of Global Consulting, ADP Christine is Senior Director of Global Consulting and is responsible for supporting the Sales effort in the global Employer Services marketplace. Christine has a background in operational and service management. She joined ADP in the UK in 1995 and headed up the Managed Payroll Service department for UK and Ireland. From there she moved into a European role working as a Strategic Account Manager for key accounts within ADP. Christine is based in the UK but travels extensively mainly across Europe. She can be reached at: firstname.lastname@example.org
Transcript from Christine Briody’s video interview Watch the video
Mapping process [09s - 52s] Quantifying your retained and future HR organization requires adopting a structured approach. A prerequisite is to have clearly defined both the geographical and functional scope of tasks and processes to be outsourced. This goes hand in hand with the selection of the service delivery model and service provider that will
best suit your new business needs. Once you have done that, the next step is to work on the “to-be” stage, in other words, designing the organization that will remain in-house once the outsourcing contract goes live - We call this phase the mapping process
Responsibility matrix [53s - 1mn25s] The service provider will be able to assist you in this mapping process as they will clearly document the tasks which will remain your responsibility and the tasks which will be outsourced.
The responsibility matrix or detailed statement of work, with defined roles and responsibilities, should be a contractual document.
Example of responsibility matrix The Responsibility Matrix Where?
Type of Service Delivered: Managed Services Client
System and Application Services and Maintenance Data Management Payroll Time Data Inputs Employee Self Service / Manager Self Service (if applicable) Pre-Payroll Processing SSC
Client Service Supplier
2 • Create, maintain and distribute Payroll Schedule for each country on a calendar year basis.
3 • Load pay variation data.
4 • Verify data loads.
Client Service Supplier
1 • Conﬁrm timely funding of accounts for dispersal of employee payroll through agreed upon bank.
5 • Monitor work/non work time; monitor annual leave. 6 • Calculate termination payments. 7 • Validate and approve termination payment calculations. Payroll Processing Post-Payroll Processing Leave Management Termination Management Off-Cycle Processes End-of-Month Activities Client Relationship Management
However, the responsibility matrix is not the only consideration to take into account End–of-Year Activities in the process of quantifying your future HR organization. You also need to understand Other Payroll Activities how the work is getting done today.
Activities audit [1mn26s - 1mn56s] A task versus time audit of current activities will help you to understand where outsourcing will generate the greatest benefits. In fact, by doing this, you will take full advantage of outsourcing as an ideal opportunity to change
the roles and tasks handled by your HR organization and also identify any risks with your current model. Needless to say, this will have a direct consequence on the way jobs will be defined in the new organization.
Job descriptions [1mn57s - 2mn27s] The ultimate goal of the mapping process is to ensure that the tasks performed by your service provider do not overlap with those that remain in-house. It may also identify broader opportunities for the advancement of existing staff.
Take the time to work on new job descriptions for your future organization. It is important that each new job description clearly states the activities to be performed and the relevant skills.
Governance [2mn28s - 3mn31s] Companies that have allocated Process Owners and implemented Governance Boards to guide the retained organization structure are increasing their levels of standardization to lower overall costs. And contrary to conventional wisdom, comparisons of headcount before and after the implementation of the outsourcing contract may not be relevant due to changes in how new jobs and functions are defined.
In some cases, total headcount may not go down, but the organization will see a marked improvement in overall productivity and effectiveness. In other instances, there is a significant reduction in headcount, not just within the functions outsourced, but also in the broader HR organization due to strategic realignment. To wrap-up, designing the retained and future organization needs careful planning in order to achieve your strategic goals and reduce your total cost of ownership.