Driving Value in HR Shared Services

0Copyright © 2011, Technology Partners International, Inc. All Rights Reserved.

Driving Value in HR Shared Services –

It’s All About Change Management

Maribeth Sivak, TPI, Inc.

Renee Tehi, TPI, Inc.

March 3, 2011

Copyright © 2011, Technology Partners International, Inc. All Rights Reserved. No part of this document may be reproduced in any form or by any electronic or mechanical means, including

information storage and retrieval devices or systems, without prior written permission from Technology Partners International, Inc.


Copyright © 2011, Technology Partners International, Inc. All Rights Reserved.

No part of this document may be reproduced in any form or by any electronic or

mechanical means, including information storage and retrieval devices or systems,

without prior written permission from Technology Partners International, Inc.


Today’s Agenda

Why Manage Change?

� Maximizing probability of success

� Working together

� Change management fundamentals

Northrop Grumman’s Change Management Approach

� Program management discipline

� Change management framework

� Communication, education, training

� Executive Sponsorship and Organizational Readiness critical

� Vision and consistent messaging threaded throughout strategies

Lessons Learned

� What went well

� Other valuable lessons


Why Manage Change?


Source: DTCG Survey

10 Top Barriers % of Companies

36%

41%

43%

44%

44%

46%

56%

65%

72%

82%

IT Perspective Not Integrated

No Horizontal Process View

No Change Management Program

Scope Expansion/Uncertainty

Project Team Lacks Skills

Case for Change not Compelling

Poor Project Management

Unrealistic Expectations

Inadequate Sponsorship

Resistance to Change

Many projects fail to deliver!

Here are the top 10 barriers that inhibit project success.

Avoiding Project FailureAvoiding Project Failure


SatisfactionI am satisfied with where I am today.

DenialThis initiative is not

relevant to me or not necessary.

ResistanceI disagree with this initiative and I am

not supporting this.

ExplorationCould this work

for me?

CommitmentThis is a positive change that will

benefit me and my colleagues

HopeI can see positive benefits from this initiative & it could

work for me.

The Change CurveThe Change Curve


Working Together to Ensure SuccessWorking Together to Ensure Success

• Provide governance team design and role descriptions

• Develop Service Level Agreement recommendations

• Conduct provider management workshops

• Review contract relative to industry leading practice

• Assess provider service delivery and relationship; develop remediation plan as needed

• Provide ongoing governance services, serving as interface to provider, analyzing results

Clients have varying needs depending on their strategy and resources.

We leverage the client’s capabilities, supplement with leading practices, tools and expertise.

• Assess current delivery model and capabilities relative to leading practice

• Develop improvement opportunities and transition plan

• Harmonize HR policies

• Harmonize and re-engineer processes

• Develop and deliver training

• Develop detailed process and policy documentation

• Develop and deliver training

• Establish project management strategy, plan and tools

• Provide project management oversight and advice

• Lead project management, monitor and report results, identify risks, develop mitigation plans

• Develop communications strategy and materials

• Conduct Organizational Readiness / Stakeholder Analysis

• Develop retained organization structure recommendation, job descriptions

• Establish project management strategy, plan and tools

• Develop communications strategy and materials

• Conduct Organizational Readiness / Stakeholder Analysis


� Change Management is critical to the success of any delivery strategy

• Internal shared services

• External providers

� Change Management must be owned by the client, throughout the organization

• Enterprise leadership

• Project sponsors and team

• Business unit leadership

� Change Management tasks must be integrated into overall program management

• Rigorously planned, tracked and reported on

• Executed from project initiation to go-live and beyond

� Lessons learned must be gathered and acted upon immediately

Change Management FundamentalsChange Management Fundamentals


Northrop Grumman’s Change Management Approach

9Copyright © 2011, Technology Partners International, Inc. All Rights Reserved. 9

HRSC is the

foundation for

transforming

HR in Northrop

Grumman

HR Operating Model

Foundation

(One HR / HRSC)

People Strategy

Transforming HR

Common (Harmonized) Services 2007-2008

� Services = policies, processes and procedures

� Harmonized: Common policies, processes and procedures across sectors to the extent possible given business variation

Common HR System Platform 2008-2011

� Consolidate all sectors onto one Common HR (CHR) System

� Build on the One Source Enterprise Resource Planning (ERP) platform

HR Service Center 2008-2013

� Create a shared service organization to provide more consistent, efficient, and cost effective service delivery

Components 2007-2013

Provide the foundation for transforming HR through high

quality HR shared services that are easily accessible,

responsive, timely, accurate, consistent and cost effective

• Enable sector HR Business Partners to focus on human capital strategic priorities, business needs and business relationships

• Facilitate seamless HR operations across the company

• Facilitate harmonization of HR services including policies, procedures, processes, forms, and systems

• Improve the HR experience for employees

• Enhance HR decision making and customer service focus

• Maximize efficiency and cost effectiveness of HR

Charter

Foundation for Success

Used by permission from Northrop Grumman Corporation.


One HR PMO Program Hierarchy

The program is managed at multiple levels with:

- Varying

business rules

- Reporting

guidelines

- Structured

communication

process

-Comprehensive

tool set

PRA

Executive Level reviews of various programs, including One HR. The

One HR Program Office presents to the PRA executive committee program status report, including all aspects of the program.

PMO

An organizational structure that centralizes the management of One HR related projects and defines how status updates and reportingguidelines are structured, performed, and monitored. The One HR

Program Office ensures coordination and alignment across all projects. The PMO will also monitor activities, dependencies, risks,

issues and communicate progress to Stakeholders.

PP05

Tactical management of activities are identified, performed and

managed at the project PP05 level. Each project team manages the day-to-day operations and provides status updates as

required by the PMO.

2009 One HR

Special Projects

Change

Management

Sector

TransitionsHRSCHarmonization

TALXCHR

Releases

HRSC Tools

ReleasesEdAssist

Document

Automation

Leave of

Absence

PRA

One HR

Program

One HR

Program

Office

Individual Projects

or Tracks (aka PP05)

PMR

Disciplined Program Management



Managing Change: Two Approaches…NGC Used Coalition

Change Management by DIRECTIVE

• “An order that must be obeyed”

• REACT TO implementation challenges

• Address whatever issues arise

Change Management by COALITION

• “A group of people acting together”

• PREPARE FOR implementation challenges

• Collect “advance intel” on what to expect



One HR/HRSC Change Management Framework

Project Implementation Plans

OneHR

Vision,

Strategy

and

Objectives

Strategy Outcome

Transformed

Organization

&

Manager

and

Employee

Enablement

Change Management Framework (and Workstreams)

Services Harmonization

HR Service Center

Technology Platform (One HR/CHR)

Prepare Implement Reinforce

Executive Sponsorship

Organizational Readiness

Communications

Workforce Planning (org design, role impact, stakeholder analysis, job mapping)

Training (behavioral and technical training development and delivery)

Wo

rkst

rea

ms

Business Drivers, Executive Buy-In & Sponsorship, Enterprise & Sector Lead



Change Management Framework

StrategyChange Management Framework (and Workstreams)



Communications

Workforce Planning (org design, role impact, stakeholder analysis, job mapping)

Training (behavioral and technical training development and delivery)

Prepare Implement Reinforce

Wo

rkst

rea

ms


•HRPC briefings

•CFO meeting briefings

• CIO briefings

• Transition sector updates

Workforce Planning

•Design/redefine org structure

•Assess headcount impact

• Develop and execute plan


• ORA focus groups identified

• ORA process executed

•Consolidate and analyze ORA

input; integrate into

communications /education

• Revisit during stabilization

Communications

• ID audiences, content to

be shared and timeline

• Briefings to HR community

first, management

second, then employees

• Establish website and update

vehicles (newsletters, etc)

• Leverage PMO materials

Training

• HR community: What &

How, HRBP, Leading Change

• Management: What & How,

Leading Change, MDA/EDA

• Employees: EDA, What

& How (education vs training)

• Services Changes



HRSC Change Management

EDUCATIONEDUCATION

• Use communication material

for brown bags, employee

sessions, staff briefings

• Continually calibrate what

else is needed and provide

additional tools and resources

• PMO supports sector

requirements – driven

primarily within sector

COMMUNICATIONSCOMMUNICATIONS

• About the HRSC Status/progress to CHRO, CPC,

Sector Exec Teams

• HRSC-Specific Newsletter, Web

Site, FAQs, Fact Sheet, Brochure,

Posters, Welcome Packet

• Sector-Specific Transitioning

messages for managers and

employees from Sector

VP/Sector HRVP

• Project and Sector-Specific EdAssist, PTO, LOA, Expatriates

TRAININGTRAINING

• What & How of HRSC for

sector HR, managers, and

employees

• Changing Role of HRBP

for sector HR

• CSR Training

• Business Simulation

• New online MDA / EDA

Training & Resource Guide



Peers & Key Peers & Key

StakeholdersStakeholders

• Monthly PRAs with

transitioning sector

HRVPs

• Monthly meetings

with HR&A VP peers

• Promotes positive

progress

• Assess concerns or

changes in support

• Builds relationship

and trust

• Engage sector

champions

HRSC Visits to HRSC Visits to

SectorsSectors

•Understand sector

cultural and

transactional

nuances/challenges

•Help sector leadership

understand corporate

vision of One HR and

role of HRSC

•Field concerns, answer

questions

Sector Leaders Sector Leaders

Visit HRSCVisit HRSC

• Share customer

perspective and

expectations

• Provide a picture of

employee culture and

environment

• Generate excitement

around the future

state of the

organization

Account Managers Account Managers

• Embedded in Sectors

• Serving as a bridge

between HRSC and

sector customers

Situational Awareness

Numerous methods used to stay in touch with customers, Numerous methods used to stay in touch with customers, to understand their challenges, their concerns, to understand their challenges, their concerns,

and their cultureand their culture



Communication, Education, Training Plan



Posters, Brochures

Welcome Packets for each employee as their sector transitions

to HRSC

Welcome Letter

Badge Tag

5x8 Delivery Card

Refrigerator Magnet

HRSC Materials



HRSC Communications


Lessons Learned


� Major project components were achieved on time (HRSC tools, processes, technology, testing, training, etc.)

� All teams were committed to the same objectives (i.e., same goal in mind) and collaborated as appropriate

� Phased implementation let us start small and grow

� Cross-disciplinary support was consistent throughout the project

� Communications with similar look and feel provide cohesive image to current and future customers

� Harmonizing your services prior to go-live is key

Lessons Learned Lessons Learned –– What Went WellWhat Went Well


� Face-to-face support and planning increased productivity and strengthened our relationships with customers

� Strong executive commitment resulted in buy-in at all levels

� Account Managers are our eyes and ears within the sectors

� Program Management approach enabled us to ‘talk the talk and walk the walk’ with stakeholders

� Dedicated PMO Core team became heart of the transformation and implementation

� Mutual site visits between HRSC-Irving and sector leadership before sector joined the HRSC


� Don’t be afraid to ask for help. It’s not viewed as a sign of weakness, but

a sign of strength; assurance that you are

looking for every opportunity to make the

program succeed.

� Don’t let your most talented people become stretched to the point of failing. Instead, place the right team around them.

We should never create situations that

allow people to fail; a personal failure is

a program failure, and neither is acceptable.

Musketeers win.

� Don’t underestimate the importance of sharing your progress as a shared service. Without positive updates, people will fill in

the blanks with their own perceptions, and

you’ll end up fighting a battle to overcome

perceptions, not real issues.

Other Valuable LessonsOther Valuable Lessons


� Ensure cross-functional project members are included in every aspect of operations

� Track decisions and action items to avoid revisiting of issues and reopening decisions for discussion

�Continually work to move from reactionary to proactive project management

� Ensure PMO and project teams have easy access to tools and documents in a central shared center archive

�Provide clear delineation of duties, roles, and responsibilities


www.tpi.net

Copyright © 2011, Technology Partners International, Inc. All Rights Reserved. No part of this document may be reproduced in any form or by any electronic or mechanical means, including

information storage and retrieval devices or systems, without prior written permission from Technology Partners International, Inc.