HOW KNOWLEDGE BASED ADVISORY

SERVICES HELP CONTRIBUTE TO

THE CREATION OF SUSTAINABLE

COMPETITIVE ADVANTAGE

CAMPBELL FISHER

MANAGING PARTNER & SOLICITOR DIRECTOR

FCB GROUP

JASON COLLINS

HR SHARED SERVICES

TELSTRA

INTRODUCTION

▶ HR Shared Services Models

▶ Tier 2 – Tier 3 Advisory Services

▶ Creating sustainable competitive advantage through aligned HR capability

▶ Outsourced Capability

CAMPBELL FISHER – FCB GROUP

▶ HR Direct – a Telstra Case Study on best practice

JASON COLLINS

A LITTLE ABOUT FCB GROUP

▶ Australia’s leading workplace relations law firm

▶ Provider of specialist HR consulting and cloud based technology

solutions - featured in Australian Anthill Magazine's Smart 100 Index as

one of Australia's most innovative products

▶ Three offices – Sydney; Melbourne; Perth

▶ 60 staff supporting our specialist service delivery

▶ Clients – mostly large public and private corporates

ESTABLISHED IN 1993…

SHARED SERVICES CENTRE OF EXCELLENCE MODEL

TIERS OF HR SHARED SERVICE

Tier 0

Self Service

Tier 1

Administrative Service

Tier 2

Subject Expert

Tier 3

Policy Expert

WHY CENTRALISE AN ADVISORY SERVICE?

▶ A centralised model allows the capture of metrics in relation to systemic people

issues which then guide preventative workforce programs enhancing employee

engagement and controlling labour cost base

▶ Consistency of advice and support outcomes to line management

▶ Responsiveness of advisory service to business needs

▶ Technology provides common access to workplace knowledge and tools and

overcomes geographic barriers

▶ Australia moving to national system of Workplace and WHS laws

TIER 2 – TIER 3

SUPPORT FUNCTIONS RECOVERING FROM THE GFC

▶ Many businesses look to cut support function cost (and capability) as an initial

response to economic pressure on their business model

▶ As the economy recovers and business model volumes improve support

function capability is generally not built back to pre economic downturn levels

▶ This results in support function capability becoming stressed and its focus

becoming reactionary to operational needs with limited contribution to creating

sustainable competitive advantage to the organisations business model

▶ The subsequent result is that the cost of capability is disproportionate to the

value it contributes to a business model

HOW DO YOU BREAK THIS CYCLE AND REAPPOINT CAPABILITY TO VALUE

CREATING ACTIVITIES?

FCB’S CLIENT EXPERIENCE

WHAT IS HR PARTNER? – A BESPOKE SERVICE

DELIVERY MODEL

▶ Capability formalised in integrated model July 2009

▶ Integrates telephone advisory services with FCB’s cloud based technology

solution – enableHR and CRM metrics reporting software

▶ 6500 enterprises currently engaged with technology solution

▶ Call volumes vary from 800 to 2500 per month dependent upon client demand

profile

▶ 98% of calls answered first time

TIER 2 & 3 KNOWLEDGE BASED ADVISORY SERVICE

TELEPHONE ADVISORY SERVICES

▶ Objectives:

• Painless, practical, timely advice to line managers

• Every interaction builds capability of line manager to manage their HR/IR

or WH&S

• Scope of advice broad & tailored to client:

▶ Ability to leverage online technology

• access customised online web enabled HR Tool – shared source of truth

• provide detailed reporting metrics for proactive training/advocacy

Workplace Awards NES HR Issues WH&S

Fair Work Act

compliance

Coverage and

entitlements

Performance

Management

Policy and consultation

Independent

Contractors

Contracts Redundancy/Termination Hazard identification

FWO Inspections /

Union Relations

Leave Policy issues Incidents and Accidents

More…. More… More… More…

Board & C Suite Support

SINGLE SHARED

SOLUTION

Legal Advice & Representation

Dashboard

Reporting

HR/WR/WHS Consulting

Customised

Integration

Manager Support Advisory Team Employee File

Employee Details Employee Documents Employee Notes &

Reminders

Organisational Specific Industrial Framework

Awards EBA’s

Wages NES

ER Communications

Online Business Tool Dashboard

Electronic Folders Customised Dynamic Contracts

HR Processes / Workflows Templates and Letters

Contractor Management WHS Processes & Practice Policies SHARED

CONTENT ACCESS to IP

& TOOLS

1300-dedicated#

Client Calls

Advisory Line

Client Call identification

through tailored telco

configuration

Call Auto-Routed to

dedicated Client Advisory

Team

Advisor records notes, identifies immediate

solutions for implementing, or elevates to

case file status for ongoing advice or

escalation to senior client resource in

accordance with protocol.

Caller accesses employee

file, notes and records

through technology interface

Metrics and

Management

Reporting

generated in

accordance with

SLA

Sophisticated data integration

between advisory system and

client system provides complete

to current date, historical record

of employee file, activity

undertaken, advice given and

notes.

IN A STRONG ECONOMY…

Strategic

Tactical

Operational

External

Service

Providers $$

Strategic

Tactical

Operational

WELCOME GFC…

External

Service

Providers $$

Strategic

Tactical

Operational

ECONOMIC CONDITIONS STRENGTHEN…

External

Service

Providers $$

Advisor Employee File

HR Leader/Line manager

THE KEY INGREDIENTS TO SUCCESSFUL

OUTSOURCING MODELS

▶ Long term partnering relationship between client and provider

▶ Strong stakeholder engagement prior to finalisation of commercial structures

▶ Alignment of organisation’s objectives, service delivery performance

measurement and commercial structure

▶ Joint commitment to proactive exchange of IP

▶ Agreed, clear and strongly articulated escalation protocols

▶ Recognition that minimising the cost of delivery of capability is not necessarily

the major contributor to business model performance

TELSTRA T

EM

PLATE 4

X3 B

LU

E B

ETA |

TELPPTV4

HR DIRECT: A CASE STUDY PRESENTED BY JASON COLLINS

Highly engaged team, winning culture, outstanding performance

THE HR DIRECT VISION AND MISSION

Vision – Leading the way with every interaction building

capability today to achieve the goals of tomorrow

Mission – Painless access to HR Gurus for insights and support

on immediate HR needs while developing people manager

capability.

Leveraging cool technology in a fun challenging place to work,

we partner with the HR community to create a great customer

experience.

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HR DIRECT – FAST FACTS (THE BASICS)

22 PRESENTATION TITLE | PRESENTER NAME | DATE |

Our 5 office locations:

Hours of Operation: •8am-6pm (AEST) Monday to Friday

•24/7 service for emergency matters

The core service offer: 1. General HR policy and process advice; and

2. Case management (including conduct and

performance, bullying and discrimination,

and complex cases*)

How to contact us: (Multiple Channels)

Our shift structure:

8am -10am (Extreme Shift)

10am -1pm

1pm - 4pm

4pm – 6pm (Extreme Shift)

•HR Consultants and

HR Advisors roster

themselves for 1 shift

per day (2 extreme

shifts per week)

•Senior HR Advisors

roster themselves 2

shifts per week

How HR Direct started: •Commenced with a pilot in Retail in Oct 2009

•Rolled out progressively to each BU over 18

month period

•Fully servicing all of Telstra since 23rd May 2011

Adelaide

Melbourne

Erina

Sydney

Brisbane

Our Technology: •Every interaction in HR Direct is recorded in the

Employee Interaction Centre (EIC); a functional

component of SAP. Each interaction is categorised in

terms of type of matter and severity (Low, Med, High)

•Phone calls, emails & fax are routed by Web CC

HR DIRECT – VOLUME OF INTERACTIONS

23

ADVICE 10,607

CASE 1,877

Employee Interaction Centre (EIC) Activities - YTD

12,484

Interactions YTD 3234

3595 3778

545

591 741

Q1 Q2 Q3

EIC Activities by Type - FY11-12 BY QUARTER

Case

Advice

3.9

4

4.1

4.2

4.3

4.4

0

400

800

1200

1600

2000

Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12

EIC Activities vs Client Satisfaction – FY 11-12

EIC

Activities

YTD Net Promoter Score +40

Client

Satisfaction

CUSTOMER SATISFACTION AND METRICS

24

Customer Satisfaction

Questions

Target

Q1 ‘Accessible and

Responsive’

4.2

Q2 ‘Met my needs’ 4.2

Q3 ‘Left me knowing more’ 4.2

Q4 ‘Advocacy for HR

Direct’

4.2

Overall Customer

Satisfaction:

4.2

Information: 1. Customer Sat Surveys are sent weekly

via email to People Managers for all

‘closed’ matters

2. Each question is rated on a scale out

of 5

3. The Net Promoter Score is calculated

by subtracting the % of detractors

(ratings 1, 2 and 3) from the % of

promoters (rating of 5)

Service Metrics Target

Queries closed in less than 1

day

80%

Cased closed in less than 21

days

65%

Interactions answered first

time

95% 1. Business Experiences (ride-ons) in BU’s

2. Monthly Learning Forums

3. Case Mgt Training with HR Legal

4. Case discussions in weekly team

meetings

How do we

keep learning

in HR Direct?

HR DIRECT TECHNOLOGY PLOT

25

SOME CUSTOMER AND EMPLOYEE TESTIMONIALS

- Great experience. I have not had the support like this from any other job I have had.”

- “The HR person I dealt with was excellent, the best service I have ever had in my life from anyone…“

- “As stated in the past the HR Direct … is the area with the BEST customer service in Telstra as I consider myself the Customer when I call them”

-

26

“HR Direct is simply the best group I have ever worked in and everyone in the

team is such a source of knowledge and energy. While there are peaks (and

troughs) overall it is an amazing place to be and full of such knowledgeable and

practical people. Everyone in it strives to make it a great team (from the top

leadership to the frontline team members). I believe it should be examined re: a

case study on how to set up a highly motivated and high achieving team and

team culture. Thank you for allowing us to be different!!”

Employee Engagement Survey - 2011

CAMPBELL FISHER MANAGING PARTNER & SOLICITOR DIRECTOR

JASON COLLINS HR SHARED SERVICES TELSTRA

QUESTIONS?