Lean Performance Management in HR Operations Helen Moore Head of GBI&NA HR Operations

Adrian Baldwin Orchy Consulting

We are a science-led global healthcare company. We have three world-leading businesses that research, develop and manufacture innovative pharmaceutical medicines, vaccines and consumer healthcare products.

We are committed to widening access to our products, so more people can benefit, no matter where they live in the world or what they can afford to pay.

The Fundamentals of our HR Operating Model

HR Business Leader

Centres Of Excellence

HR Operations

An integral member of a senior leadership team that will diagnose and deploy appropriate HR interventions, required to deliver the business strategy and improve business performance (Tier 3)

Diagnose, Design and Implement expert policies and processes for the enterprise (Tier 3) and ensures expert consultancy to support business aligned activities bringing deep specialist expertise to the specialist areas delivered by each CoE eg Training, Learning & Org Development; Reward; Gemini, Data and Analytics, Inclusion and Diversity.

Deliver operational activities (Tier 0-2) to all Line leaders and employees globally. To optimise service delivery: policies, processes, ways of working are standardised globally. Robust governance processes in place in each country and region that includes HR and Senior Business Line Leader participation.

Draft for discussion purposes only, subject to consultation and applicable legal requirements

Global HR Operations

APAC & J LatAm Europe MEA Asia GBI&NA

Five Regions include:

Our Region

APAC & J

Supporting approx 32,000 employees equating to 30% of global employees

Around 370 GSK Employees in GBI&NA HR Operations

Across 5 countries

Did you know WE support ...

!  10,300 GMS employees

!  82% of Pharma R&D

!  5,500 GSF employees

!  10% Consumer

Global Business Services Foundations

1.  Accountability "  What are your services/processes? "  Who owns it? "  What does good look like?

2.  Capability "  What are the capabilities of your teams in addition to functional?

3.  What is your service infrastructure and management system? "  Governance and leadership behaviours "  Lean (Service) performance management system "  Service standards and playbooks

Key questions in setting up a GBS

Accountability: a) Who owns what ? Define what you do and assign ownership.

JOIN Attraction & Induction

MOVE LEAVE RETIRE

Recruit and On-board Change Job or Location Voluntary

Design Org

Grade Job Recruit Onboard Change

Job Relocate Manage Pay

Manage Benefits

Manage Exit

Involuntary

Design Org &

Consult

Manage Pay Manage

Benefits Manage

Exit

Manage Pay (Including T&A) (Monthly & Annual)

Manage Benefits (Monthly & Annual)

Manage Recognition (Ad Hoc)

Manage Performance & Development

Manage Administration & Absence

Manage Employee Relations

Manage Data Quality & Reporting

Accountability: b) Performance Each service line owner has to define key critical measures annually

Engage Customer & Stakeholders

Agree critical measure/s and target with the Customer & Stakeholder:

Make and Measure Improvement: (Transparent Visual Controls) managed through Comms Cells

Sign Off with Customer and Service Board

2014 Q3/4

End Dec 14

2015Q4 Sign-off

Through 2015

From 2012 to 2015 these measures contributed directly to all CBS employees or Service Line Bonuses

1

2

3

4

Customer Interactions

9

CLICK

CHAT

CALL

TALK

#  Enhanced CBS Search #  Easier navigation #  External and Mobile compatibility

#  Single point of access # Central place to manage requests,

receive alerts

Service Gateway

#  Easily accessible via the Service Gateway #  External & mobile chat capabilities # Real-time help via online chat

# Get help while continuing work

‘Live Help’

#  Live analyst assistance available via ‘Ask CBS’ #  Single internal and external phone number

to access all services

‘Single Access Number’

#  Education on self-help #  Provide service improvement feedback #  Face-to-face service

# Get help and advice in person #  Access to expert resource

‘Help Lounge’

Example of the service infrastructure

FREQUENCY

Service staff

Supervisors

Directors !  Targets meaningful at each level

!  Direction and decisions

!  Performance results, lag metrics and understanding

!  Lead metrics that are predictive of success

!  Issues and opportunities requiring support

Managers

Lead

Lead

Lead

Lead

Lag

Lag

Lag

Lag

Lean (Service) Performance Management System

10

Generic Accountability Process

Comms Cells Frequent (Daily/Weekly) & Quick (15-30 Mins)

Visual Controls Daily Problem Solving •  Immediate issues •  Longer term concerns •  Identify root cause •  Resolution is outside the

meeting

Leader Standard Work

The normal tasks that must be undertaken to

sustain the management system

Gemba Go and see; Real

improvement happens on the

frontline

Generalised approach to evolving end to end services The foundation of how we approached HR operations

Build Infrastructure and Capabilities

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1.  Define high level end-to-end processes

2. Assign ownership of processes and agree accountabilities •  Accountable for defining, agreeing and monitoring overall goals and performance •  May or may not own operations

3.  Define performance review mechanisms – focus on action •  Measure something, take action •  Refine and learn over time

End to End process definition &

improvement

Lean / Six /Service Mgmt. / Project Mgmt. /Change

Leadership behaviours

Service Standards & Governance

Plan

Do

Study

Act

4. Continually improve: measures, processes and behaviours •  Use measures to learn •  Map and Move to an E2E focus. •  Initially people are likely define things by their function

Implementing SPM in HR Operations

What are we trying to achieve? "  Shared understanding of service performance with customers "  Move to a customer-focused and service-orientated HR Operations organisation "  Working together with clear accountability across all tiers of HR delivery

By.. "  Implementing SPM in HR Operations by end Q1 2016

"  1-2 key performance measures and agreed annual targets "  Improved quality of knowledge materials "  Delivery of at least one customer focused process improvement

And.. " Process Ownership

"  Local process owners should have an overarching understanding of their process, have accountability for quality and process from end to end, within a service performance management framework.

2016 – Raising the bar

Getting into the measurement mindset

Initial simple excel template Supported conversation on performance, however

a.  Only showed a three month window – not the full context of performance

b.  Commentaries and actions were light

Currently a more complete review a.  Allows proper visualisation of performance b.  Supports a better conversation on the

actions needed and management support required.

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Measure something and improve

–  Shrunken picture of the current ppt

–  Services.

Key learnings

!  Leadership

!  Capability

!  Don’t underestimate the change

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In summary

"  Establish a process model and accountabilities –  who owns what?

"  Get into the measurement mindset –  it’s a lever to ensure alignment with customer and the basis for

conversations on performance

"  Review end to end processes through a structured approach –  Support teams with capabilities

Key steps

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