【正文】 ? HR specific experience ? Support function Resources Used 1/20/2023 8 A working philosophy for the future: The “BusinessWithinABusiness” concept 1/20/2023 9 ? Determine what they do and do not need ? Have choices for sourcing support products/services ? “Make” in Business Unit and/or ? Purchase from NCE Shared Service and/or ? Purchase in the marketplace ? Will bee more astute consumers, demanding value (the bination of cost quality) and service (the bination of cost and timeliness of delivery) ? If their needs aren?t met, they will vote with their pocketbook Customers Drive ? Strategy is about choices: what you will and will not offer to customers ? Some choices are really not “choices” . regulatory, Corporate mandated ? It is difficult to concurrently work under 3 “strategic models”: ? Lowest cost ? New product/service innovator ? Customer intimate ? Revised as customer needs change over time Strategy Dictates ? Focus on customer needs, translate into best delivery structure ? Organization built around skills, petency, experience as opposed to longevity, tenure, relationships ? “Process” orientation is important since anization structure and the people in the boxes will change over time they always do! ? “Dynamic tension” between Shared Services HR and Business Unit HR personnel ? Business Unit personnel will “go native”, and in many ways they should! ? Revised as customer needs change over time Structure Supports delivery of ? Mix of cyclical, planned deliverables (transactions, reports) and occasional needs (consultation) ? Must be managed accordingly ? One size doesn?t fit all ? Need to be well defined, well understood by customers and “buyable” ? Not ?one big charge? ? Understood in terms of cost and price (given regulatory mandates) ? Will e and go: new needs emerge, some will be outdated or not in demand ? Revised as customer needs change over time Products/ Services Monitored by ? Contracts (or Service Level Agreements) are the market mechanism for buying services ? Service agreements facilitate resource planning how many people and what skills are needed ? Measurable, accountable, meaningful, tied to individual and team rewards ? Cost ? Quality ? Time ? Have an “owner” ? Who?s responsible ? If you can?t measure it, you can?t manage it ? Revised as customer needs change over time Performance Measures To understand the context for our remendations, it is important to understand our assumptions about the potential “future state” of HR at NCE. We assume that HR will need to operate as a “Business within a Business”, driven by the “market economy” that the Business Unit corporate structure is creating. That are used to manage business performance in serving BusinessWithinABusiness 1/20/2023 10 Key Issues: Challenges facing NCE HR today 1/20/2023 11 NCE HR Benchmark Overview Some key performance indicators our team gathered indicate that NCE?s HR anization today does not pare favorably to other HR anizations in terms of headcount and cost, and has room for improvement in meeting the needs of customers in the current NCE anization. . 0204060801001205 , 0 0 0 1 0 , 0 0 0 e e sU t i l i t yI n d u s t r yNCE00 . 511 . 522 . 53Work SafetyPayrollRecruitingBenefitsPerf MgmtEE RelationsCompensationHR MgmtTrainingNot Perf. Some Perf. Meet Needs Excellent What is the current performance? Importance in meeting the future needs of NCE? Ratio of HR employees to total employees HR expense as a percent of operating expense %%%%%%%%%Saratoga NCECustomer Satisfaction Results Good Good = No Gap Good 1/20/2023 12 Key NCE HR Issues Today ? Larger staff and higher cost in NCE HR pared to other similarly sized anizations ? Ratio of HR employees/total employees: Saratoga Institute* 120:1 (5,000 10,000 employees) 94:1 Utility Industry NCE** 79:1 ? Many NCE HR professionals indicate that they are short staffed. ? Reasons for NCE?s ratio are inefficient structure, processes, use of technology, rework and error correction ? HR operating expense per employee: Watson Wyatt: $873 NCE: $2,086*** ? HR expense as a percent of operating expense: Saratoga: .74% NCE: .53%*** ? HR expense per HR FTEs: Watson Wyatt: $70,367 NCE: $98,745*** ? The ratio of management personnel to staff is 1:。 however, this ratio is unevenly distributed and there is opportunity to reduce costs by expanding the span of control in some areas (ex: pensation), and under the modified HR anizational structure to be discussed later in the presentation. ? * Benchmarks exclude Safety, IH, Payroll and Learning ** FTE count excluding current temporary employees *** NCE data is based on HR budgeted operating expense in the 1998 business plan. These numbers may contain or exclude cost ponents that are excluded or contained in the benchmarks from Watson Wyatt and Saratoga. **** This number is based only on the HR employees who responded, . it is not extrapolated, and includes the 12 FTEs detailed in the HR functional group analyses remendations. Several NCE HR employees reported significant amounts of rework caused by reasons such as duplication/uncertainty of responsibility and maintaining standalone spreadsheets to work outside of HRizon. By eliminating only the rework reported, NCE HR could free up roughly 14 FTEs**** to devote to othe