© webster buchanan research 2010 and northgatearinso managing the long tail: perspectives on...
TRANSCRIPT
© Webster Buchanan Research 2010 and NorthgateArinso
Managing the long tail: perspectives on handling multi-country payroll operations & globalization.NGA Human Resources
www.ngahr.com/payroll
Webster Buchanan’s Multi-country Payroll Summit 2010© Webster Buchanan Research 2010 and NorthgateArinso
The Long Tail
© Webster Buchanan Research 2010 and NorthgateArinso
© Webster Buchanan Research 2010 and NorthgateArinso
4 MCP scenarios
© Webster Buchanan Research 2010 and NorthgateArinso
River tree
© Webster Buchanan Research 2010 and NorthgateArinso
• “Accidental” solution – typically Excel• Unstable, but good enough for now• Not fit for large volumes or extensive
auditing• Questionable compliance • Unfit for complicated payroll
regulations• Data manually entered and maintained• Not integrated with other systems• Easy to adapt and replicate in other
locations/geographies• No expert knowledge required
Bamboo jetties
© Webster Buchanan Research 2010 and NorthgateArinso
• Built-for-purpose maze of non-connected local solutions
• Workable solution, yet unreliable• Difficult to maintain• Fit for low to medium payroll
complexity• Difficult to audit due to non-aligned
processes• Data manually maintained• No internal integration, limited external
integration• Easy to adapt and replicate• Limited expert knowledge required to
maintain – what about monsoon changes?
Railway bridge
© Webster Buchanan Research 2010 and NorthgateArinso
• Large, single-country solution• Reliable and fit for high volume traffic• Capable of complicated payroll
regulations• Robust and ready for extensive
auditing• Labor intensive: data manually
maintained, duplicated between multiple systems
• Scope typically more than payroll• Limited or non-existent integration to
other systems• Difficult to rebuild or replicate in other
geographies
Spaghetti junction
© Webster Buchanan Research 2010 and NorthgateArinso
• Global HRIS or payroll solution, typically ERP-based
• Capable of any degree of complexity in payroll regulations in many countries
• Extensive auditing by external regulators
• High degree of automation• Wide range of internal and external
integration options• Costly to implement and maintain• Expert knowledge required
© Webster Buchanan Research 2010 and authorCopyright NorthgateArinso. All rights reserved.
The challenge: bridge the gapbetween reliability and flexibility
HR leaders’ challenges
Copyright NorthgateArinso. All rights reserved.
Drive down cost
Improve delivery quality
Create a more agile organization
• Process standardization
• Transactional efficiency
• Self Service adoption
• Strategic outsourcing
• Fast ROI
• Global HR service delivery model
• Deep HR process expertise
• SLAs & reporting
• Preconfiguration
• Proven & integrated technology
• Single global HRIS
• Uniform technology landscape
• Hybrid deployment options
• Multi-device access
Options & complexity
11
Hosting
IT resources
Geographical growth
HR service center
Investment
HR processesCustomization Standardization
Upfront Recurring
In-house Shared Service Center
Limited Easy expansion
In-house Outsourced
Local Global
ESS/MSS Contact ManagementDocument ManagementKnowledge Management
ESS/MSS Contact ManagementDocument ManagementKnowledge Management
Compensation & RewardPerformance ManagementTraining & DevelopmentRecruitmentSuccession Planning
Compensation & RewardPerformance ManagementTraining & DevelopmentRecruitmentSuccession Planning
PayrollTime managementOrganisational ManagementPersonnel Administration
PayrollTime managementOrganisational ManagementPersonnel Administration
A unique platform for standardizationTypical HR/IT landscapeTypical HR/IT landscapeUnified HR systems landscapeUnified HR systems landscape
Self-ServiceSelf-Service
HR Document & Knowledge managementHR Document & Knowledge management
Talent Management processesTalent Management processes
Enabling processesEnabling processes
Functional blocksFunctional blocks
America’sAmerica’s EMEAEMEA APACAPAC
Country 1Country 1 Country 2Country 2 Country 3Country 3 Country 4Country 4 Country 5Country 5 Country XCountry X
Aggregator model
© Webster Buchanan Research 2010 and NorthgateArinso
Source: The Hackett Group
Standardization: do you have your ducks in a row?
© Webster Buchanan Research 2010 and NorthgateArinso
‘What if’ scenarios
© Webster Buchanan Research 2010 and NorthgateArinso
River tree
© Webster Buchanan Research 2010 and NorthgateArinso
• What if you need to replicate this times 20?
• What if your excel file gets lost?• What if your system crashes?• What if your resource quits?• What if you get a lot of volume
(M&A)?• What if you fail compliance?
Bamboo jetties
© Webster Buchanan Research 2010 and NorthgateArinso
• What if you get massive legislative changes?
• How do you create visibility on the data and uniform reporting?
• What if you need integration to other systems?
• What if you have to scale up rapidly?
Railway bridge
© Webster Buchanan Research 2010 and NorthgateArinso
• What if you need to replicate under different circumstances?
• What if your long-term experts leave?• What if your local solution is no longer
supported?• How do you ensure visibility across
your entire employee population?• How do you ensure accuracy of both
HR and payroll data?
Spaghetti junction
© Webster Buchanan Research 2010 and NorthgateArinso
So how can this possibly be cheaper, bring more consistent quality, and be more flexible?
Only with a long term perspective
•Predictability around TCO•Viability and longevity•Uniformity and repeatability in new markets/situations•Scale if you grow and contract•No need to rebuild•Consistent quality around the world
© Webster Buchanan Research 2010 and NorthgateArinso
10 Critical Success Factors
1. Culture & values
2. Management information
3. Identify key staff
4. Project induction
5. Financial control
© Webster Buchanan Research 2010 and NorthgateArinso
10 Critical Success Factors
6. Ownership at exec level
7. Clear functional vision
8. Country level support
9. Project governance
10.Living communication plan
© Webster Buchanan Research 2010 and NorthgateArinso
Questions
[email protected] www.northgatearinso.com/payroll