1 Measuring HR/OD Initiatives and Projects “A Taste of Learning” Conference Office of Human Resource Development United States Government Washington DC September 29, 1999 Presented by Chuan “Yo” Yeong and Lawton Harper Organization Development

2 “…measurement can cause extreme stress. The unconsciously incompetent will become consciously incompetent. The consciously incompetent will be required to take action to become consciously competent.” Texas Instruments, 1997

OVERVIEW Second largest telecommunication company in the US with more than 300 offices globally Top three internet backbone in the world More than $30 billion annual revenue $1,000 investment in 1989 is worth about $80,000 in th largest company in the world based on market capitalization * * 9/27/99 Wall Street Journal’s World Largest Company Ranking

4 Challenges in measuring organizational and HR initiatives Increasing pressure to prove value-added and bottom-line impact in the highly competitive industry like telecommunication Difficult to link fragmented metrics to company’s overall strategy and bottom-line Difficult to quantify “soft” benefits - employee satisfaction, leadership development, diversity, managerial effectiveness, organizational effectiveness Currently there is no standardized methodology, process, and tools in the HR field

5 Here’s how we began our journey... 1.Define and communicate group charter to the HR community and the client base (line managers) 2.Develop processes and tools to keep track of the progress 3.Hold periodic progress review sessions to formulate corrective actions and to share learning 4.Periodically publish achievements and project status to the HR community

6 1 - Define and communicate group charter to the HR community as well as client base - include areas of measurement in the charter SAMPLE CHARTER Lead and facilitate initiatives that drive cost reduction, productivity, and revenue growth in the field, through: -providing dedicated HR and organization development expertise and practical tools to solve line manager problems -managing cross-functional HR projects and initiatives

7 Project Team Capabilities Complex Management Consulting and Project Management capabilities Cost Reduction / Productivity improvement Re-organization and Employee Transitions Resource Planning Surveys - design, admin, analysis, reporting Work Life/ Employee Retention

8 Translating corporate objectives to projects CORPORATE OBJECTIVESPROJECTS PURSUED Revenue - Top-line Growth- provide HR expertise in in-sourcing account team ($1.2B+ opportunities) - Focus on Data products- product mgmt competency model - Internet business- UUNET/Legacy Compuserv merger integration - Global growth - Global Data Marketing Org Design Cost/ Productivity - Facilities-based - provide HR expertise in call center startup - Cost reduction- Recruiting process simplification - FCC consumer complaints respond time reduction Resource Planning & Diversity - Retain key talent & improve diversity- company-wide executive resource planning and diversity

9 2 - Develop processes and tools to keep track of the progress Consulting engagement contract –Problem/ Opportunity Summary –Project Objectives / Business Case for Change –Results/ Benefits/ Deliverables –Approach / Methodology –Assumptions –Work Plan, Timeline and Resources Project scan template

10 ProjectsKey metrics Product Management Competency retention, new hire satisfaction model development Recruiting process improvementcycle time, labor costs reduction, early turnover, overall administrative costs, % of exception (approval) Post-merger integrationtop talent turnover, integration speed, savings on external consulting service Climate survey projectemployee satisfaction & retention FCC complaint respond processfine avoidance, cycle time reduction Sample projects and key metrics

Hold periodic progress review sessions to formulate corrective actions and to share learning Periodic progress review with clients Project Scan –Bi-weekly –Broken out by project type –Communication/ updating tool –Managed informally

12 PROJECT EXAMPLES 4 - Publish achievements and progress to the HR community

13 PROJECT EXAMPLES (cont’d)

14 Q&A