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Achieving World-Class Performance in Finance, HR/Payroll, Procurement and IT Q1, 2006 Executive Advisory Program.

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Presentation on theme: "Achieving World-Class Performance in Finance, HR/Payroll, Procurement and IT Q1, 2006 Executive Advisory Program."— Presentation transcript:

1 Achieving World-Class Performance in Finance, HR/Payroll, Procurement and IT Q1, 2006 Executive Advisory Program

2 Page 2 Hackett Executive Advisory Program World-Class Scorecard – Progress Report Stakeholder Survey Functional Book of Numbers (quarterly and mo. research) Advisor Inquiry Access to Functional Best Practices/Hackett knowledge Center Quarterly Peer group/member presentations

3 Page 3 World-Class Scorecard An annual quick health-check of Finance, HR/Payroll, Procurement and IT at your fingertips How it Works Web-based submission and results access Generated from a subset of the questions in functional benchmarks Establishes a framework for process improvement measurement Allows for multiple locations Comparative to varying peer groups Data will be collected, compared, and posted annually What it Does Communicates the operational view of your function Identifies strengths to more broadly leverage throughout organization Monitors progress on organizational initiatives Identifies potential areas of opportunity Allows for quarterly updates against world-class Paste graphics into internal presentations Overall Finance – Cost as a % of spend/revenue

4 Page 4 Finance World-class Scorecard delivers key metrics for each of the process groups, including Costs, FTEs, Productivity, Complexity Overall Finance Costs as a % of revenue FTEs per Billion in revenue Technology cost as a % of revenue Cash Disbursements Cost as a % of revenue FTEs per Billion in revenue Cost per transaction % of transactions automated Transactions per FTE Use of a procurement card for purchases Revenue Cycle Cost as a % of revenue FTEs per Billion in revenue % of cash remittances performed electronically Revenue Cycle (cont.) % of customer bills processed electronically Cost per transaction General Accounting & External Reporting Cost as a % of revenue FTEs per Billion in revenue % of journal entries automated Tax Management Cost as a % of revenue FTEs per Billion in revenue Planning and Performance Management Cost as a % of revenue FTEs per Billion in revenue Treasury Management Cost as a % of revenue FTEs per Billion in revenue Compliance Management Cost as a % of revenue FTEs per Billion in revenue Business Analysis Cost as a % of revenue FTEs per Billion in revenue Management & Administration Cost as a % of revenue FTEs per Billion in revenue Other Costs Other Costs as a % of revenue Finance Sample Finance World-class Scorecard delivers key metrics for each of the process groups, including Costs, FTEs, Productivity, Complexity

5 Page 5 Total HR Cost per Employee Total HR FTEs per 1000 employees Total HR Technology Costs per Employee Total HR Transactional Process Costs per Employee Total HR Rewards Administration Costs per Employee Total Payroll Administration Process Costs per Employee Total Time and Attendance Process Costs per Employee Total Data Management FTEs per 1000 employees Outsourcing cost per Employee Total HR Employee Life Cycle FTEs per 1000 employees Total Staffing Services Process Costs per Employee Total Organizational Effectiveness Process Costs per Employee Total Workforce Development FTEs per 1000 employees Fully Loaded Labor Cost per Employee # of Health and Welfare plans per 1000 served # of Employees per HR FTE – HR Scorecard HR World-class Scorecard delivers key metrics for each of the process groups, including Costs, FTEs, Productivity, Complexity HR Sample

6 Page 6 Overall Procurement Cost as a % of spend FTEs per $1 billion in spend Technology cost as a % of spend Technology cost per FTE Ave quarterly FTE turnover % for managers and professionals Ave quarterly training hours per FTE Procurement Operations Cost as a % of spend FTEs per $1 billion in spend % requisitions processed electronically % purchase orders distributed automatically to suppliers Cost per purchase order Cost per receipt Sourcing & Supplier Mgmt (cont.) # of suppliers per $1 billion in spend % of suppliers comprising top 80% of spend % of spend from approved suppliers % of spend negotiated on a corporate-wide basis % of RFxs submitted electronically % of total suppliers for which formal measures are maintained Compliance & Function Mgmt Cost as a % of spend FTEs per $1 billion of spend % of total purchased spend supplied by small, minority, and disadvantaged businesses Sourcing & Supplier Mgmt Cost as a % of spend FTEs per $1 billion in spend % total FTEs allocation to supporting Sourcing and Supply Management Total cost reduction as a % of spend Total cost avoidance as a % of spend % total indirect spend influenced/managed by procurement organization Procurement World-class Scorecard delivers key metrics for each of the process groups, including Costs, FTEs, Productivity, Complexity Procurement Sample

7 Page 7 IT World-class Scorecard delivers key metrics for each of the process groups, including Costs, FTEs, Productivity, Complexity Overall IT Total IT cost per end-user Technology Infrastructure Total cost per end-user FTEs per 1000 end-users % Technology Infrastructure costs outsourced # of help desk calls per 1000 end-users % of primary help desk calls resolved on first call Application Management Total cost per end-user FTEs per 1000 end-users % Application Management costs outsourced Application Management (cont.) % Custom Applications % Packaged Applications % Projects completed on time % Projects completed on Budget % Projects completed to Business Specifications % projects managed through a PMO % Projects that adhere to a common methodology Applications per 1000 end-users Planning & Strategy Total cost per end-user FTEs per 1000 end-users % Planning & Strategy costs outsourced IT Management & Administration Total cost per end-user FTEs per 1000 end-users % IT Management & Administration costs outsourced # Hardware Suppliers per 1000 end-users # Software Suppliers per 1000 end- users # Contractor Suppliers per 1000 end-users % of business adhering to Hardware Standards % of business adhering to Software Standards % of internal SLAs met IT Sample

8 Page 8 The Stakeholder Survey is administered via the Web

9 Page 9 Locating questions Select a set of questions (Only the ones assigned to your location will be visible) Web based data collection and reporting

10 Page 10 Generating a report Choose the report type, locations, currency, and format (pdf recommended) Click View Report to view. Print or save the file and review for errors Web based data collection and reporting (cont.)

11 Page 11 Book of Numbers & Best Practice Research Hard Copy Quarterly 70-100 pages Hard Copy Mail & Soft Copy 3-4 pages Soft Copy 3-4 pages

12 Page 12 Value of Benchmarking and Practice Assessment Knowledge Center - Access to Best Practices and Client Presentations

13 Page 13 Hackett Knowledge Center: On-line Resource of Performance Metrics, Process Definitions, Best Practices and Related Research Best Practices Quick Wins

14 Page 14 Peer Interaction Peer-to-peer contact and executive interaction Webcasts (monthly) Cover relevant issues related to business processes, organization designs, leverage of technology, etc. – members choose the topics Restricted to members due to confidentiality and sensitivity of information Each is recorded; presentation materials are posted and available for download Advisory Member Forums (annual) Each advisory service program holds an annual forum for client members Presentations are generated from within the membership Advisory Member Roundtables (annual) Conducted in conjunction with Hackett Conferences Executive Advisory members only Best Practices Conferences (annual) Hacketts premier annual event attracting a cross-functional audience of business executives committed to world-class performance – half price registration for members

15 Page 15 Advisory Access Unmetered, on-demand phone access

16 Page 16 Executive Advisory Program Pricing – State Government 1 Functions -$30,000 each year / function 2 Functions - $25,000 each year / function 3-4 Functions -$20,000 each year / function Three year membership program NASACT fee: 3% Plus: Any travel related expenses

17 Page 17 For further information please contact Pat OConnor NASACT Association Manager Lexington, KY poconnor@nasact.org Ph: 859-276-1147 Jim Anthony Hackett Account Director Chicago, IL janthony@thehackettgroup.com Ph. Work: 312-664-0878 Cell: 312-543-6938


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