Sapience- Workforce Management, Bpo Management Services

Workforce Analytics: Redefining Approach

to Employee Productivity Enhancement

A Frost & Sullivan White Paper

Workforce Analytics: Redefining Approach to Employee Productivity Enhancement

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© 2014 Frost & Sullivan

TABLE OF CONTENTS Page

1. Efficient Workforce Management - Critical to Sustainable Growth.................................................3

2. Transforming Global Workforce Dynamics..........................................................................................4

3. Managing productivity – Paradigm Shift in the New Era....................................................................5

4. Workforce Analytics – Lever to Productivity Improvement .............................................................7

5. The Way Forward ....................................................................................................................................8

6. Frost & Sullivan ICT Awards: 2014........................................................................................................9

a) Award Selection Process ..................................................................................................................9

b) Award Selection Criteria .................................................................................................................9

7. About Sapience Analytics .....................................................................................................................11

8. About Frost & Sullivan..........................................................................................................................12


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Efficient Workforce Management - Critical to Sustainable Growth

As global organizations across sectors face stiff competition from globalas well as regional players, they need to continuously strive towards achieving a sustainable competitive advantage in order to survive and growin the global marketplace. Productivity of employees and operations, bothhas been well recognized by leadership teams as a critical aspect for achieving a sustainable competitive advantage. Although the global macro-economic slump has resulted in a slowdown in salary growth acrossthe world, salaries in many global markets are expected to increase at anaverage of two to five percent in the coming years. As businesses try tocope with complex macro-economic forces and increased competition,they further look towards gaining competitive advantage by optimizing operational costs. In times of subdued industry growth patterns, makingthe most out of available resources and optimizing operational costs is crucial to ensuring steady bottom lines. In most of the global enterprises,human workforce is the largest and costliest resource pool, and it makessense to leverage tools to improve workforce productivity to gain competitive advantage.

Besides cost optimization, improved workforce productivity management is enabling organizationsto achieve effective project management and reduced turnaround times of tasks, thereby leadingto enhanced customer satisfaction. Thus, a methodical approach to productivity managementbuilt on deep real-time insights has a definitive impact on top line and margins of organizations.Gaining visibility of workforce dynamics, time and effort metrics has today consequently become veryimportant for top management and line functionsfor developing a sustainable growth strategy.Source: Frost & Sullivan

Exhibit 1: Factors Determining Competitive Advantage

Exhibit 2: Benefits of Improved Workforce Productivity

Source: Frost & Sullivan



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Transforming Global Workforce Dynamics

Changing demographics and behavioral patterns of population segments are fast altering global workforce dynamics.Gen Y or employees in the age group of 20 to 35 years are increasingly representing an estimated 60 to 65 percent ofthe workforce in global organizations. This determines workplace dynamics of the new era characterized by high usageof digital technologies, preference for workplaces that encourage collaboration and a positive outlook towards blendingof personal and office lives with little perceived need to work from office. Another characteristic of the Gen Y workforceis extensive spending of nearly 25 percent of their work-hours daily in communicating and collaborating on varioussocial platforms.

Exhibit 3: Determinants of Global Workforce Dynamics

Today’s workforce is becoming more and more mobile, with nearly 50 percent of total workforce constituting the mobileworkforce. They either constitute the field force or need to travel extensively as part of the job.

The means and ways to communicate and collaborate have also changed dramatically over the last decade with the changing needs of individuals whenit comes to using their mobile phones for varied purposes apart from justvoice calls. This change has been fuelled by the dropping prices of smartphones and their increasing ability to support usage for varied purposes.

Employees today use social platforms more frequently to communicate whilein office. This trend is bolstered by a gamut of smart portable devices in themarket like tablets and smartphones. Thus, changing patterns in workforce dynamics globally demands more efficient management of the talent pool bytop management of enterprises and right insights about workforce productivity that can enable enterprises to devise their business growth strategy.


Source: Sapience Analytics

- Time in Office is not Time on Work (30-40% loss due to distractions)

- Of the Work Time, only 30-35% is on core activities

- Emails and Meeting increasingly take away 40-50% of Work Time

- Average of 10-12 breaks of 10 minutes or more.


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Managing Productivity – Paradigm Shift in the New Era

Distinctive demographic characteristics of today’s workforce are giving rise to patterns in work-habits atypical to thegeneration before.

With changing workforce dynamics, employees today are distributed across locations and work from a multitude of devices. They have more distractions(personal calls, browsing, social networking platforms, and breaks) at work; allthese concurrently lead to attention deficiency, multi-tasking, etc. Productivitylevels of employees with such patterns in work-habits are inconsistent.

This diversity in work-habits gives rise to challenges in the entire process ofproductivity management.

Tracking:

Challenges faced in tracking the effort invested by employees at work include:

m Distributed work environment: Mapping productivity at enterprise levels can become extremely challenging as enterprises expand across geographies and locations

m Changing execution models: With shared-resource pool models gaining traction, organizations are dealing with diverse work-patterns making the task of work allocation and mapping effective time spent more difficult.

m Increasing mobility of workforce: Perimeters of organizations are fast blurring with a rapid section of the workforce becoming mobile. This includes sales force on field, service teams, top management, as well as an increasing number of employees opting for ‘work from home’. Tracking efforts now needs to extend beyond solutions that were limited to office space.

m Scale of operations: As enterprises are growing rapidly with expanding breadth of products and services, the diversity within operations and business units is only getting more complex. Productivity metrics for a certain unit may not be replicable across other units. This calls for a holistic approach to capture information and ensure contextual analysis.

Analyzing:

To be able to take proactive measures regarding workforce productivity levels and draw actionable insights therefrom,it is of significance that the data be analyzed. Key restraints to the process:

m Integrating challenges: With diverse teams across locations giving multiple sources of data on their effort, integrating all the data to form a single deep strategic insight is tough.

m Lack of real-time data: Lack of availability of proper real-time data hinders a smooth and timely process of analysis of the data thereafter.


Tracking

Analyzing

Improvising

Exhibit 4: Stages of Workforce Productivity Management


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m Inconsistency of data-points: There is considerable lack of consistency of data being captured across business units or distributed locations of an organization, in absence of an automated process. Inconsistent data further impedes effort analysis.

m Need for framework and metrics in line with corporate policies: Lack of framework in place to develop metrics for evaluation purposes will fail to give the right insights useable when formulizing a business strategy by the top management. (Prevalent HR systems in most organizations track competency levels of employees.)

Improvizing:

Although the first two stages (Tracking and Analyzing) demand that organizations invest in sophisticated tools capableof overcoming the challenge, the improvization stage requires a committed top down management effort to translateinputs into implementation of best practice. Adoption of effective technology solutions based on a holistic and strategicapproach to business improvement coupled with a well-defined change management approach can enable organizationsgain operational excellence.


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Workforce Analytics – Lever to Productivity Improvement

Workforce analytics is the arm of analytics that makes use oftools and/or metrics for analysis of workforce productivity.Demand for such products is on the rise as top managementand HR are increasingly realizing the importance of such analytics to track employee productivity levels and effortmapping. With proper workforce analytics tools in place, top-level management, HR, as well as line managers can notonly track final outcomes in the form of project deliverables or revenue/profit, but also the entire process in the deliverylifecycle.

In particular, workforce effort analytics software represents a new dimension, through which an organization gets automated and accurate insights on various aspects of time spent by an employee on work-specific tasks. The quality ofeffort put in by employees has a significant bearing on their contributions and results. By providing automated visibility,these tools help the employee baseline and improve their work effort. Every employee, experienced or junior, highlyproductive or those still learning, will end up contributing more. Some of these tools aggregate user level time data toprovide analytics at each level of the organization, and along business dimensions (such as employee roles, verticals,business types, locations etc.). Such trends guide managers in allocating resources optimally to maximize capacity utilization, thereby helping to build a lean and efficient enterprise.

Availability of tools that have capabilities to provide businesses with a 360-degree view of operations, resources, andcustomers in a real-time environment at desired price points will make workforce analytics a 'must-have' rather than a'good-to-have' solution in the enterprise IT landscape.

Exhibit 5: Key Metrics Leveraged by Typical Workforce Analytics Software

Benefits of Workforce Analytics• Adoption of Best Practices in workforce management• Work time is spent on the core value-add activities• Gain in work hours • Greater real time work visibility

Effort analysis

on-PC activity time

off-PC time

Time spent on reading and answering

mailsTime spent on searching and

gathering information

Time spent on communication

and collaboration

Time spent on role specific

tasks



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The Way Forward

In an era of fast changing global macro-economic-social scenarios, organizations need to constantly look at new ways to ensure sustainable business growth. In addition to spiraling operational costs, the increasingknowledge based value propositions of organizations and the aligned skill setsof talents pool; the cost of maintaining adequate talent will only increase inthe days to come.

Managing the workforce will thus be a critical strategic lever in achieving organization goals across industries.

Technological advancements will partner with people and internal processesto converge towards achieving one single target - derivation of actionable insights on effort of workforce and it's alignment with business goals.

People: Top level management will continue to play a key role in productivityenhancement based on greater visibility into the effort of their talent-pool.As the role of HR functions gets more strategic, developing and managing metrics on employee productivity aligned to organizational goals will be of prime importance.

Processes: In addition to the realization of need for a proper workforce management by top management and HR,best practices need to be put in place in the process in order to achieve strategic excellence. In order to be able to deliver actionable insights on the workforce, the HR function needs to create a framework where data on the workforcecan bolster HR metrics of employee engagement, talent management, organization effectiveness, effectiveness of workprocesses, to create actionable insights on the talent pool. Various business units and HR practices need to work intandem to be able to collectively come up with deep insights on workforce productivity. These insights on workforceproductivity provide a strategic basis for making talent-related decisions that underpin the business goals set by topmanagement.

Technology: In order to make insightful data-driven decisions, an organization needs to identify the right technologyplatforms and tools that arm the top management with analysis of the data in real-time. Emerging technologies, such asin workforce effort analytics, are fast changing the topography of workforce productivity management and will need tobe integrated with an organization’s resource management strategies to fast-track towards its business goals. Such toolson workforce analytics provide significant quantifiable insights about work-patterns of employees.

h kf b l i f lSource: Frost & Sulli

Exhibit 6: Key components providing Actionable Insights on Workforce

Productivity



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Frost & Sullivan ICT Awards: 2014

The Frost & Sullivan India ICT Awards 2014 was held on June 24, 2014, to acknowledge exemplary companies and individuals that have pushed the boundaries of excellence, risen above the competition, and demonstrated outstandingperformance in the Information and Communications Technology (ICT) sector in India.

Award Selection Process

The following selection process is employed in benchmarking nominees/contenders and determining the Award recipients:

• Frost & Sullivan analysts shortlist/nominate major contenders in each Award category• Analyst teams conduct detailed research and assessment on market performance of companies and table the

findings, along with recommendations and justifications• An independent panel of judges deliberates on the findings of the analyst team and decides on the deserving

Award recipients

Award Selection Criteria

Frost & Sullivan follows a rigorous measurement-based methodology to select the recipients in each category.

Measurement parameters are used to conduct a detailed study of each nominated company on the basis of actual marketperformance indicators as given below:

• Demonstrated leadership and innovation in new product value proposition business/market strategy• Revenue and customer growth

The base year for the benchmarking study was calendar year 2013.

The 2014 Frost & Sullivan ICT award for “Product Innovation Leadership: Functional Analytics” category has been conferred upon Sapience Analytics for its innovative product offering that enables workforce analytics with virtually nomanual intervention, providing insights into ‘Time/Effort’ in real-time basis driving increased organization productivity.


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The 2014 Frost & Sullivan ICT award for “Product Innovation Leadership: Functional Analytics” has beenconferred upon Sapience Analytics.

Sapience Analytics has leveraged strong market understanding to develop an offering that addresses a key business needfor workforce productivity enhancement across industries today. The award recognizes Sapience Analytics for its compelling value proposition coupled with market strategy approach to drive growth.

”Sapience has exhibited strong alignment to the global Mega Trends in the space of analytics by developing a compelling value proposition for industries globally. High customer centricity of the offeringbacked by growth initiatives highlights the excellence of the software product”

Nishchal Khorana,Associate Director, ICT

Frost & Sullivan


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About Sapience Analytics

Sapience Analytics (www.sapience.net) provides a patent-pending, innovative solution that delivers a 20+% gain in organization productivity. This is a game-changer for any company, since it significantly improves business outcome, lead-ing to higher profitability.

Organizations typically have good tools to track financial results and delivery status, but no accurate and objectivemethods to assess team effort that drive the outcome. Business results and employee wellbeing are being significantlyimpacted by sub-optimal effort, but without the right tool, it is not possible to accurately baseline the quality of effortand to initiate improvements.

Sapience promotes the concept of a ‘Mindful Enterprise’. It sources work effort and patterns in a highly automatedmanner with virtually no manual intervention. Along with Enterprise Effort Analytics Sapience also drives effort transformation through innovative techniques that we call ‘Work Yoga’.

Every stakeholder in the business gets meaningful insights at a sufficiently high level to facilitate informed decision making:

• CxOs get accurate facts about capacity utilization across different business dimensions, through which they can build an efficient enterprise.

• Managers get the ‘big picture’ of their team’s effort. They can guide their teams to work smart. Delivery becomes more predictable and additional bandwidth becomes available for innovation.

• For employees, it provides a personal dashboard that is like a ‘mirror’ to their work. Sapience encourages improvements in work habits through its unique concept of ‘Work Yoga’, which helps users to adapt their work days for greater focus on key activities, and achieve more with less stress.

Sapience has scaled to 60+ installations and nearly 100,000+ users in just 3 years. Customers include two FortuneGlobal 200 enterprises, several billion dollar global ISVs, 4 of India’s Top 10 IT companies, and many small and mediumfirms in different verticals. One of the world’s Top 3 consulting companies has partnered with Sapience for their leanmanagement diagnostics deployments at some of the world’s leading enterprises. We recently signed a distributor agreement with the world’s largest technology and mobile solutions distributor, Ingram Micro.

Sapience has been recognized as an innovative and amongst the fastest growing Enterprise Software products by TiE50(Top 50 Emerging Technology company, Silicon Valley, California – 2014), Frost & Sullivan (Outstanding Innovation inFunctional Analytics - 2014), Dun & Bradstreet (Best Emerging India SME – 2013), NASSCOM (India’s Top 10 – 2013),IDG Channel World (50 Hot Global Companies - 2013), iSPIRT (Most Popular Product Company - 2014), Red Herring(Asia Top 100 technology start-up - 2011), and Economic Times (Top 14 Companies to look out for in 2014).

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