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Is it Working?

Is it Working?. Tools and Strategies for Measuring Benefit Program Success . Helping companies optimize their HR / benefits / payroll service partnerships . Agenda. What to measure? Service delivery evaluation Procesess and programs Monitoring success Case study Q&A.

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Is it Working?

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  1. Is it Working? Tools and Strategies for Measuring Benefit Program Success Helping companies optimize their HR / benefits / payroll service partnerships

  2. Agenda • What to measure? • Service delivery evaluation • Procesess and programs • Monitoring success • Case study • Q&A

  3. Is it Working?What to Measure Design Success Communication Delivery

  4. Is it Working?Delivery of Services • Delivery of benefit services is a critical component to overall success of program • This is the face to the employee • Process and oversight become critical here, regardless of delivery model (in/out/co source) • End-to-end process and data flow is critical

  5. Is it Working?Measuring Delivery • How do you measure delivery? • Must first identify processes and owners • Misidentification leads to: • Ambiguity • Redundancy • Inefficiency • Missed expectations • Use tools to identify process owners

  6. Is it Working?Identifying Responsibility

  7. Is it Working?Identifying Responsibility • The responsibility matrices: • Clearly identify process owners • Provide meaningful documentation (vs. flow charts) • Applicable in any delivery environment • May be used for contracting with outsource provider

  8. Is it Working?Service Level Agreements • Process ownership leads to enhanced • Accountability • Responsibility • Continuous improvement • Service level agreements (SLAs) • Can not be set without identifying process owners • Are important in all processing environments • Are not only for financial guarantees • Determination of SLAs should be carefully considered • Can follow a process for determination • Tools are available

  9. Step III: Categorize Standards Step V: Set Proposed Financial Guarantees Step IV: Define Performance Standards Step II: Determine Importance of Standards Step I: Identify Key Performance Standards • Determine functions to be measured. • Determine key performance metrics that are important from both an employee and employer perspective. • Take into account organization’s culture, strategic vision, service needs, philosophy and historical perspective. • Standards should be manageable. • Determine relative importance of each of the standards in Step I. • Develop a prioritized listing of all of the performance standards to be monitored. • Categorize the listing from Step II in a matrix identifying performance standards that: • Have financial guarantees attached • Are part of an on-going vendor management program • Could be cause for termination of contract or service • Identify how the standards will be measured and provide its corresponding measurement standard. • Measurement standard should be attached to each function within the measurement category. • Recognize vendor performance by associating a financial reward/penalty with the attainment of the measurement standard. • Financial guarantees are primarily utilized as mechanisms to encourage process improvement by the vendor. Is it Working?A Process

  10. Is it Working?A Program

  11. Is it Working?Monitoring Success • SLAs anticipate active monitoring of performance • Monitoring process should include end-to-end reviews • All parties involved • Process and data flow • Measure performance against expectations • ASA or accuracy? • Client satisfaction • Upstream process affects down stream effectiveness

  12. Is it Working?Monitoring Success • Importance of base lining • Critical for new relationships • Measure improvement over time, not absolutes • Impact of satisfaction and performance by other areas • Anticipate negative impact from other activity

  13. Is it Working?Example Process Review Outsourcing Relationship Review Engagement Management

  14. Is it Working?Case Study • Fortune 500 transportation company • Outsource benefits administration • Very rapid implementation in order to realize immediate significant financial gain resulted in: • Service issues • Expectation gaps • Overall dissatisfaction

  15. Is it Working?Case Study • End-to-end process review was performed • Onsite review at both client and ADP administrative offices • Review of service levels, correspondence, communications materials, interviews, etc. • Ownership review with use of responsibility matrices • Results: • Recommendations were made to both client and ADP • Ongoing responsibilities were clarified • New service level base lines were established • Relationship was enhanced

  16. Is it Working?Question and Answers Donald Glade 770-509-4816 dglade@sourcinganalytics.com Sally Sidwell 770-360-2033 Sally_Sidwell@adp.com Helping companies optimize their HR / benefits / payroll service partnerships

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