The Birth of a New Workforce - Presented by Randy Hatcher

The Birth Randy Hatcher - President, MAU Workforce

Solutions

of a New Workforce

Information in this presentation is property of MAU Workforce Solutions

The Birth Randy Hatcher - President, MAU Workforce

Solutions

of a New Workforce



The Birth of a New Workforce © MAU Workforce Solutions

A crime has been committed!



Something has been stolen.



Something precious and limited…



…Your Focus


Bankruptcies


Closings



Hoover DamChrysler Building

Empire State BuildingAlcatraz Island

Bethlehem Steel then…

Hoover Dam Chrysler Building Empire State Building Alcatraz Island



Bethlehem Steel now…



It’s been a



But you’ve survived!



You’re not out of the woods yet!



Length of Each Recession48

-4953

-5457

-5860

-6169

-7073

-75 1980

81-82

90-91 2001

07 to

09

02468

101214161820

M o n t h s


% Real GDP Decline48

-4953

-5457

-5860

-6169

-7073

-75 1980

81-82

90-91 2001

07 to

09

0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%4.5%

% Dec l ine


Jobs Lost During Each Recession

48-49

53-54

57-58

60-61

69-70

73-75 1980

81-82

90-91 2001

07 to

09

01,0002,0003,0004,0005,0006,0007,0008,000

Thousands


S&P 500 Max Decline During Recession

48-49

53-54

57-58

60-61

69-70

73-75 1980

81-82

90-91 2001

07 to

09

0%

10%

20%

30%

40%

50%

60%

% Dec l ine


Going Forward: NEVER Waste a

CrisisInformation in this presentation is property of MAU Workforce Solutions


“Private and public sector leaders believe

that a rapid escalation of complexity is the

biggest challenge confronting them…and their enterprises today are not

equipped to cope effectively.” - IBM Study

1,500+ CEOs

Time

Corporate America

$$$

CORE FunctionsNON-CORE Functions


Patriarchal Model

John D. Rockefeller

Andrew Carnegie

Henry Ford

“Corporate Family”


Patriarchal Model

Executive Maintenance Secretary

“Corporate Family”


100

200

300

400

500

600

HEA

DCO

UN

T

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Patriarchal Model

Production Headcount Full-Time Workforce

Static High CostStable

Understaffed and OvertimeOverstaffed and Layoffs

•Growing legacy costs•Couldn’t respond to market changes


Time $$$

Patriarchal Model



World War IIRise of the Temporary Help Industry


100

200

300

400

500

600

HEA

DCO

UN

T


Patriarchal Model

Production Headcount Full-Time Workforce



100

200

300

400

500

600

HEA

DCO

UN

T


Staffing Workforce Model

Production HeadcountFull-Time Workforce


Flexible Workforce

Fluid Low CostLess Stable

Risk Cost?Responsibility

LayoffRamp Up


Time $$$



Patriarchal Model



The Hidden Costs of Temp Workers•Inefficiency and Waste•Two Class System•Dual Market Valuation


Paying the Piper


Paying the PiperSlashed Retiree Benefits Reduced Wages


Paying the PiperShared Healthcare Costs

Cut-to-the-Bone Layoffs& Involuntary Separations


Paying the Piper

Pensions Replaced by 401k’s Employee Buyouts



A New Business Blueprint


100

200

300

400

500

600

HEA

DCO

UN

T


Patriarchal Model

Production Headcount Full-Time WorkforceInformation in this presentation is property of MAU Workforce Solutions

100

200

300

400

500

600

HEA

DCO

UN

T



Production HeadcountFull-Time WorkforceFlexible Workforce


100

200

300

400

500

600

HEA

DCO

UN

T


Innovative Workforce Model

Full-Time WorkforceFlexible Workforce

Production Headcount

Increased FocusIncreased CapabilityIncreased Capacity

Outsourced WorkforceInformation in this presentation is property of MAU Workforce Solutions

Time $$$



Staffing Workforce ModelPatriarchal Model



If You Had $1.00 to Spend

EquipmentAutomation

Sales &Marketing

Mergers &Acquisitions

R&DInnovation

Core/Noncore Analysis

JanitorialGroundsCafeteriaSecurity

Equipment and Automation

Sales and MarketingMergers and Acquisitions

R&D and Innovation

ManufacturingFinal Assembly

RecruitingSub-Assembly

Facility MaintenanceFinance & AccountingSupplier Management

IT FunctionPackaging

BenefitsLogistics

ManufacturingFinal Assembly

RecruitingSub-Assembly

Facility Maintenance

Finance & Accounting

Supplier ManagementIT FunctionPackaging

BenefitsLogisticsInformation in this presentation is property of MAU Workforce Solutions


Outsourcing Manufacturing



Outsourcing Manufacturing



Outsourcing Final-Assembly

69% labor cost savingsProductivity, quality, delivery increased



Outsourcing Recruiting

First Pass Yield: 78% to 92%




Time to Fill: 13 to 6.7 weeks



Kimberly Clark

Recruiter


TOTAL

2

Steps BeforeOutsourcing

42

44

12

20

32

Steps AfterOutsourcing

-30

+18

-12

Changein # of Steps

70%$2,625

Cost Reductionin Salaries

TimeReduction

Savings Per Hire


Outsourcing Sub-AssemblySmelting Pot Repair•30% fewer employees•Shelf life extended by 15%• Downtime decreased

by 5%


Outsourcing Facility Maintenance• Can increase asset

productivity by 30 percent• “Maintenance groups are only

33% productive”- Terry WiremanComputerized Maintenance Management Services


Outsourcing Facility MaintenanceOutsource to someone who eats, drinks, and sleeps maintenance…


Outsourcing Finance & Accounting

Purchase to Pay

Finance and Accounting Strategy

Control and Risk Management

Record to Report

Order to Cash

Hire to Retire


Outsource the non-strategy related functions…


Purchase to Pay

Control and Risk Management

Record to Report

Order to Cash

Hire to Retire



Finance and Accounting Strategy

…while you focus on the business strategies.


Obstacles

Can’t Find a Good Outsourcing Partner

Lack of Internal Expertise

Unable to Measure

Internal Cultural Issues

Too Expensive

Status Quo is Okay

0% 20% 40% 80%60%

Knowledge Level

© KellyOCG 2009

Time $$$

Innovative Workforce ModelStaffing Workforce ModelPatriarchal Model

InnovativeWorkforce Model



Core/Noncore Analysis

JanitorialGroundsCafeteriaSecurity

Employment Processes

Supplier ManagementFinance/Accounting

Program ManagementSubassembly

Final AssemblyFacility Maintenance

IT FunctionPackaging

BenefitsLogistics

Equipment and Automation

Sales and MarketingMergers and Acquisitions

R&D and InnovationInformation in this presentation is property of MAU Workforce Solutions

10,000 Hours


The 10,000 Hour Rule

Bill Joy1971

The BeatlesMid ‘60s

Bill Gates1968

Malcolm Gladwell’s “Outliers”


Your Company’sUltimate Goal







…Your Focus


Closings


Outside the PlantFunction

JobDepartmentProcess

UniqueDifferentiatesAdds Value


Walk Through Your Plant

Job Title/Function Core

Noncore

Critical Noncritical

http://www.mau.com/resources Information in this presentation is property of MAU Workforce Solutions

http://www.mau.com/resources

Time $$$



Staffing Workforce ModelPatriarchal ModelInnovative

Workforce Model



It’s a Journey!‘99: Recruiting Process

‘99: Co-ops & Interns

‘00: Contract Professionals

‘02: Temporary Workers

‘02: Outsourced Assembly

‘05: Absenteeism PoolInformation in this presentation is property of MAU Workforce Solutions


Get Started!Information in this presentation is property of MAU Workforce Solutions
