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How to determine if self-services is right for your organization based on readiness and cost

by The Tip Doctor

April 30, 2010

This tip was taken from the presentation Self-service strategies and best practices customers are using to reduce HR costs, presented at HR2010, March 16-19, 2010 in Orlando by Rebecca Bartlett of Exaserv. 

Before embarking on a self-services implementation and investment, here are some tips to help you ensure that your organization is ready to embrace such an initiative, both from an organizational readiness and cost perspective. 

Main aspects to consider initially:

-Cost

-Savings

-Organizational readiness 

Value vs. Cost — Return on Investment

-Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments

-To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio 

Value vs. Cost — Calculate ROI

Traditional ROI calculations take into account the savings on labor and materials

-Determine current operation costs

-Calculate operation costs utilizing ESS/MSS

-Determine the savings

-Identify the technology costs associated with implementing ESS/MSS (hardware, licensing, implementation teams, etc.)

-Calculate the Return on Investment—divide the benefits by the cost 

Technology Costs

Certain technology expenses may influence IT costs:

-Hardware

-Maintenance

-Licenses

-Installation

-Network infrastructure

-Security 

Value vs. Cost — Consider Other Returns

Workforce productivity

-Managers and employees spend less time carrying out HR-related activities

-HR representatives handle fewer requests as employees can make certain data changes on their own

-Administrative materials: Paper-based processes (print, copy, mail, file) are replaced or reduced 

Is My Organization Ready?

-Organizational readiness is an organization’s ability to undergo and accept a change – in this case, a shift towards enterprise self-service applications delivered via ESS and MSS

-Organizational readiness can be determined through an in-depth assessment

 Several areas should be considered, including:

-The availability of funds

-Time and resources to implement the functionality

-Willingness to streamline and standardize global business processes

-Communication and training procedures to announce the change

-Eagerness of employees to utilize the services through this medium

 

  • The Path to Organizational Readiness

There are three fundamental actions companies should take to ensure that their organization is ready for effective change:

 1-Understand the challenges 

-Organization structure change

-Cultural change

-Business process change

-Resistance to the overall project

 

2-Assess your current level of readiness

-Ask the right questions

 3-Implement effective change management strategies

-Mobilize the business

-Manage everyone’s transition

-Prepare people to perform

-Recognize that change management is both an art and a science

-Take advantage of the wisdom of others

Source: “SAP Executive Insight: Organizational Readiness” by Kerry Brown and Rob Urbani

 

 

 

 

 

 

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