“I’m a person, not a number!”
The next Big Thing:
ERM (Employee Relationship Management)
David Viney
Centrica plc
BCS K&C
12 November 2002
Objectives
To examine the extent to which familiar CRM themes
can be extended to suppliers & employees
An evaluation of best practice, scenarios, processes
and architectures for ERM
To identify the implications of such new thinking for the
typical e-Business Programme
“There is no new thing under the sun."
-- Ecclesiastes 1:9
Current
Strategic
Value
All supply
relationship
s
Full
Accurate
Contact
Master Data
History
New Product
Development
Recorded Credit &
Billing
Channel
Preferences History
Single View
Potential
Strategic
Value
Full Contact
History
Up & Cross
Sell Campaigns
Credit
Rating &
History
Measure of
Employee
Value
Measure of
Employee
Potential
Marketing
Permission
s
Potential
Customer
Value
Customer
Segmentation
Strategic
Sourcing
Current
Customer
Value
Accurate
Employee
Data
Full
Training &
Employment
Development
History
History
Performance
History
Accurate
Master
Data
All product
holdings
All Benefit
holdings
Resource
Planning
Management
Succession
Increased Customer
Loyalty & Retention
Self
Self Serve
Serve
Payment
Payment Self
Self Serve
Serve
Self
Self Serve
Serve
Chasing
Chasing
Call-off
Call-off
Terms
Terms of
of
Purchasing
Purchasing
Trade
Trade
Face-to-face
Face-to-face
Relationship
Relationship
Management
Management
Self
Self Serve
Serve
Supplier
Supplier
Details
Details
Assisted
Assisted
Service
Service
Recovery
Recovery
Reduced
Cost to Serve
Increased Profit
per Customer
Reduced
OpEx
Face-to-face
Face-to-face
Relationship
Relationship
Management
Management
Self Serve
Information
Self Serve
Employee
Administration
Self Serve Self Serve
Skills
Basic
Training
Face-to-face Services
Employee
Reduced
Assisted
Counselling
Cost to Serve
Employee
Face-to-face Development
Career
Increased Employee
Planning
Loyalty & Retention
Assisted
Assisted
Sales
Sales
Transaction
Transaction
Self Serve
Serve ss
Self
Self
Serve
Basic
Basic
Basic
ServicesSelf
SelfServe
Serve
Services
Services
Self
Serve
Personal
Personal
Personal
Administration
Administration
Administration
Self Serve
Serve
Self
Serve
Self
Information
Information
Information
Assisted
Assisted
Payment
Payment
Disputes
Disputes
Interaction
Management
Does employee retention matter?
A recent survey by the
American Management
Association states the average
cost to replace an employee is
30% of their salary.
A recent survey conducted by
RHI Consulting revealed that
the annual turnover rate for a
typical IT Department in a
larger US company was more
than 25%
(based on responses from 1400 CIOs from a
random sample of U.S. companies with more
than 100 employees)
The 2002 Microsoft Certified
Professional Salary Survey
gives an average salary for an
IT Professional of approx. $60k
This gives, for a typical ‘large’ IT department:
1000 employees x $60,000 x 30% x 25% =
$4.5 million pa !
The “Great Place to Work” Institute surveys
companies worldwide in an effort to
understand successful strategies for
employee motivation and retention. In the
UK, it’s results are published in ‘The Times’
and, in the US, in ‘Fortune’ magazine.
Year on year, the companies that
feature highest on the list are financial
and high-tech companies. Why?
Arguably, these are the companies who
best understand how technology can be
used to enhance their business and turn
this learning in on their people! This
frees HR professionals & line managers
to manage people, not tasks!
Lessons from Leaders
Directory
CiscoCast
(Newsfeeds)
Cisco Employee
Connection
Travel & Expense
IP TV
FAST Start
(Induction)
VoD
Training
End-to-End Staffing
Executive
Information
System
Benefits
Enrollment
Technical Support
Corporate
Procurement
5306 PA e-strategy
93.4% users
access CEC at
least once per
day
79.3% many
times per day
User
satisfaction
4.23 out of
5.00
ERM Process Architecture
Assisted service channels
Self Service
Web
IVR
Email
Operate
channel
services
Employee Interaction
Management
Manage
leaving
Manage
recruitment &
transfers
Manage employee
contact
Reward & Benefits
Manage
temporary
workers
Manage
relocation
Manage long
service awards
Maintain
person data
F2F
Route &
allocate interaction
Generate person
intelligence
Manage
Case
Manage manpower
availability
Process
enquiry
Process
issue
Personalise
interaction
Employee
Development
Employee
Relations
Manage people
development
Manage discipline
& grievance
Learning
& Training
Organisation
restructuring
Induction
Manage
employment
relationship
Manage
pay
Compliance
Performance
Management
Comply with
Health &
Safety
Manage
Expenses
Common Centrica process
Manage person
prospecting
Business &
Line Manager
Support
Attendance
Reporting
HR Consulting/
HR Development
Develop new
services
Management Info
Succession
planning
Finance & Procurement Integration
Comply with
Corporate
Governance
Manage personal
details changes
Organisational
Effectiveness
Manage
benefits
Manage bonus &
recognition
Resource Planning
Comply with
Inland Revenue
/Taxation
Mail
Segment
persons
Employee Relationship
Management
Resourcing
Phone
Employee Analytics
Headcount
Reporting
Specific process
Manage data
warehouse
Report
KPI
Analyse
data
Shared Services
Print &
despatch
External process
Manage
documents
Manage
content
(Simplified) ERM Technical Architecture
IVR
system
Facilities, IS,
Pensions &
Purchasing
Help Desks
HR & Payroll
Help Desks
Pension
Systems
Case & Asset
Mgmt Systems
Metadirectory
Employee
Extranet
Employee
Intranet
Planning
Systems
Supplier
Extranet
Core
ERP
System
ERP
Client
Middleware
Other
Modules
Non-standard
ERP
ESS
Module
Mobile worker updating her home address, following a move
Office worker requesting leave via the Intranet from home
Scenario: Recruitment
View the Job Ad
on the Centrica
Opportunities
section / pages
Make an
application and
attach my CV
Log-in using my
ID and Pin
Book an interview
slot online from
the available slots
Fill out a travel
expenses form
Receive my offer
letter and phone
& write to confirm
acceptance
Pack invites me
to go online again
using ID & PIN
Hit the desk
running on day
one with all my
admin sorted
Impressed with
how organised
Centrica is
Internet
Intranet
Extranet
Receive an email
inviting me for
interview, which
includes a 6 digit
guest ID number
and four digit pin
to access the
Recruitment
extranet
Receive an email
confirming my
interview and the
name of the
person I will see
Print-off the
attached visitor
pass & car
parking form
Go for the
interview
Online, I fill out
Payroll & Bank
Details Form,
Private Medical
Form, Pensions
Application &
Wish Form, Car
Form, etc.
Before I even
start at Centrica!
And then the final
delight and
surprise.. I find
that my log-on ID
to all the systems
I need and my
first password are
the very same I
used during my
recruitment
“what a great place to work!”
Scenario: Maternity Leave
IVR
Welcome to the
Centrica Help
Desk.
Please press:
Test is
positive, so,
once in work,
I go onto the
Help Desk and
log-in using
my Centrica
ID and Pin
Select the
Payroll option
and check my
remaining
leave balance,
using the
automated
Payroll service
1
2
3
4
5
6
7
for
for
for
for
for
for
for
Systems
Facilities
HR
Payroll
Pensions
Purchasing
Finance
Or press *0 at
any time to talk
to an operative
Go onto the
Intranet from
home through the
secure Extranet
gateway, using
my Centrica ID
and Pin
Navigate to the
HR Online section
and download a
copy of the UK
Maternity Policy &
Guide to my PDA
Read the notes
than navigate to
the online FAQ to
get answers to
my more basic
questions
“they really take care
of my needs!”
The following
morning on the
way into work, I
call the Centrica
Help Desk from
my hands-free kit
in the car
I log-on and go
through to an
operative in the
Employee Service
Centre
I get a few more
answers, but
decide that I
would like to have
a face to face
meeting..
Which I book
there and then
The meeting with
my local HR rep
goes well
And I am left
feeling secure
and happy
Now I only have
hubby to deal
with.. If only he
was as easy to
operate as the
Centrica ERM
processes!
"Art is a step from what is obvious and wellknown toward what is arcane and concealed."
-- Kahlil Gibran (A Handful of Sand on the Shore)
The all-encompassing Philosophy
Powerful
Analytics
Quality
Intelligence
Appropriate
Interactions
Improved
Performance
Effective
Relationships
Enhanced
Strategy
Food for thought
Intelligence & Analytics
Does your eHR solution give you
more than just employee details?
Do you have a single view of their
skills, training, performance and
management potential?
When a key event changes the life of
one of your employees, such as
moving home or having a baby, can
you measure the impact this may have
on your relationship with them?
Can you analyse who your most
important employees are and do
you use target campaigns and
interaction to build loyalty?
Do you really know what the cost is to
your business of employee acquisition
and employee turnover?
Interaction & Relationships
Is your strategy simply to force
every employee to deal with you via
the intranet? For everything?
What about, for example, your
customer-facing, high-value
(mobile?) sales force, who need
access to systems on the move?
Have you even considered a multichannel approach?
Does you eHR Business Case require
you to cut back your HR support
function to a bare minimum, or are you
instead re-skilling and repositioning
them for higher value work, such as
retention of key employees?
Strategy & Performance
Do you treat your employees as
individuals, or are they just a
number to you? Do you value
them in the same way as your
customers?
Is Employee Motivation and
Retention one of your
Company’s top 3 priorities and
if not, why not?
Technology Considerations
Which technologies could be
deployed across all three
spheres (customers, suppliers
and employees)?
Data warehousing
Analytical technology
Case Management
IVR Technology
Portal Technology
Web Hosting (Intranet /
Internet / Extranet)
Campaign Management
Technologies
Conclusions
(1) Customers are all important,
but suppliers and employees
matter too!
(2) Many CRM concepts (with
which your CEO is familiar)
apply equally well to the other
key stakeholders in your
enterprise!
(3) Challenge your e-Business
approach to date. Is it too
transactional in it’s focus?
Have you considered
relationship management
issues at an enterprise level?
(4) Have you looked at where
you could re-use technologies
and deploy them in a wider role?
My Contact Details
David Viney
BISM, E-Commerce
Centrica IS
1F Millstream East
Maidenhead Road
Windsor SL4 5GD
Mobile 07979 567690
david.viney@theaa.com
Telephone 01753 492 429
Facsimile 01753 493 422
www.centrica.co.uk
Download the Presentation at:
My website
http://www.viney.com/DV/eBiz/eBiz.html