I m a person not a number The

“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 Potential Customer Value Up & Cross Sell Campaigns Credit Rating & History Measure of Employee Value Measure of Employee Potential Marketing Permissions Customer Segmentation Strategic Sourcing Current Customer Value Accurate Employee Data Full Training & Employment Development History Performance History Accurate Master Data All product holdings All Benefit holdings Resource Planning Management Succession

Increased Customer Loyalty & Retention Self Serve Payment Self Serve Chasing Call-off Terms of Purchasing Trade Face-to-face Relationship Management Self Serve Supplier Details Assisted Service Recovery Reduced Cost to Serve Increased Profit per Customer Reduced Op. Ex Face-to-face Relationship Management Self Serve Information Self Serve Employee Administration 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 Sales Transaction Self Serve s Self Serve Basic Services Self Serve Services. Self Serve Personal Administration Self Serve Information Assisted Payment 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. $60 k 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 Cisco. Cast (Newsfeeds) Cisco Employee Connection Travel & Expense IP TV FAST Start (Induction) Vo. D 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 Employee Interaction Management Operate channel services Manage recruitment & transfers Manage relocation Manage leaving Manage employee contact Reward & Benefits Manage temporary workers Manage long service awards F 2 F Route & allocate interaction Maintain person data Generate person intelligence Manage Case Manage manpower availability Process enquiry Employee Development Process issue Personalise interaction Employee Relations Manage people Manage discipline development & grievance Manage pay Compliance Learning & Training Organisation restructuring Induction Performance Management Comply with Health & Safety Manage person prospecting Business & Line Manager Support Attendance Reporting Manage employment relationship Manage Expenses Common Centrica process 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 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 e. HR 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 e. HR 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 1 F Millstream East Maidenhead Road Windsor SL 4 5 GD 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/e. Biz. html