Presentation for ASMI HR Measures, Metrics & Analytics Summit, August, 2010 Arlington, VA

1. Your Mission – Our Passion Driving Workforce Transformation Through Metrics Present by: Russell M. Klosk, MBA, SPHR, GPHR Paul Thornton, Ph. D.

2. Everybody loves Dilbert

3. What are we going to cover? What are leaders asking of the HR organization? How do metrics support this? The role of Metrics as an enablement mechanism in HR Transformation Are you measuring the right things? Real world examples In other words Which key data should be shared and highlighted to your executive team Review your data to determine what changes will spur new innovation and growth (Transformational data) Architecture & tools to help accomplish this Understand where your workforce resources should be allocated What does it look like

5. More than 70,000 employees globally

6. UK Headquartered and operating in 50 countries around the world

7. US Headquarters in Reston, VA

8. Over 11,000 US Based skilled and dedicated professionals

9. Professional service firms offering a full range of Management Consulting services.

10. We embed metrics into everything we do, both HR metrics and performance metrics.

11. 30+ years corporate experience driving HR TransformationRussell Klosk, MBA, SPHR, GPHR Paul Thornton, Ph.D. We are a leading provider of professional, technology and management services. Advise | Design | Integrate | Deliver

12. Organizational priorities are changingShift from transactional to strategic Mission attainment is leadership’s top priority - and innovation is required to enable it Responsiveness and agility are the new key competencies, requiring innovation across three areas: Offerings and services Operation of core functional areas Overall enterprise model (especially collaboration) Operatingmodelinnovation is becoming as important as traditional offering and service innovation. Organizations that outperform focus on this But, collaboration and model reinvention require strong leadership of change, notably in the areas of: Culture Rewards Integration of process and technology Source: 456 CEOs, IBM Global CEO Study, 2004765 CEOs, IBM Global CEO Study 2006

13. The Question Leaders Aren’t Asking How do I make decisions about human resources with the same rigor as I do about finance or operations? What types of metrics and dashboards empower me (leaders) to accomplish this?

15. Organizations require many delivery channels to ensure employee and manager access

16. CHROs must be able to demonstrate the link between Human Capital activities and business results

17. The decision to build or buy skills becomes central

18. Retaining key people when facing a shortage of supply is critical

19. Work must transform to shortages

20. Organizations must measure and reward executives and the HR function by how they deliver on the critical talent agenda

21. Developing skills to support growth, innovation, differentiation and customer satisfaction becomes a top priority

23. Developing your expertise: Metrics & Analytics enable the transformation

25. Talent sourcing, selection & deployment

26. Industry workforce solutions (aging, diversity, immigrants, absence, third party cost mgmt, employee experience, forecasting & scheduling)

27. Time & labour

28. Competency, performance & succession management

29. Role-based transformation

30. Knowledge management & collaboration

31. Human capital / HR strategy and change

32. HR operations and service delivery

33. Process and organization design and improvement

34. Shared services and employee service centers

35. HRIT strategy, systems implementation and upgrades

36. HRBTO and system outsourcing, maintenance and hosting

37. Corporate learning strategy & analytics

38. eContent

39. Business applications and process training

40. Learning technology

41. Business skills training

42. Merger training programs

43. Learning BTO and system outsourcing, maintenance and hostingData is used to spur new innovation and growth (Transformation) Identifies areas of focus, and areas for improvement

44. Workforce Intelligence Architecture “Tie HR to the business”(strategic impact) Business Analytics “Monitor HR performance”(operational effectiveness) HR Metrics “Run the department”(transactional efficiency) Workforce Reporting

45. Using “Workforce Intelligence” as Your Tool This will insure that … Operational reporting is more comprehensive and efficient Individual application data is integrated You have desktop reporting tools Graphically-rich information is easily utilized Dashboards are user specific You can measure progress against benchmarks and internal targets HR practices and investments can be aligned with enterprise goals Relationships between investment and results can be demonstrated Efficiency Transactional Effectiveness Operational Strategic Impact

46. Do we really measure the HR Value Proposition Actual HR Measures (tactical) Headcount Turnover Rates Succession Candidates Time-To-Fill, Train, On-Board, Utilization Training Hours Cost Reductions Training Completed Grievances Client Satisfaction Surveys Performance/Potential Ratings Productivity per employee Best Practices Recognition Human Capital Objectives (strategic) Driven to Win Leaders Flexible Embracing Risk Self Developing Creative Fast Global Engaged Mission Aligned

47. Value Creation Increasingly Dependent on the “Talent” market Measure what you need Value Creation Strategy SMART ≠ MOTIVATED EXPERIENCED ≠ PRODUCTIVE AGGRESSIVE ≠ EFFECTIVE CHARMING ≠ CONSTRUCTIVE Product / Service Financial Talent Value Analysis in this Market is Critical

48. Change Brings Opportunity A revolution in the way people are valued in the workplace. Instead of treating people as units of cost, measure and maximize their strategic value to the enterprise. ‘Headcount’ gets cut. ‘Infrastructure’ gets attention! From Transactional to Strategic Human Resources to Human Infrastructure

49. Transition of the HR Functions + Analytics +

50. Business Analytics Understanding how your workforce resources are allocated is what the analytics do for you. Identify top workforce drivers and allocate appropriate investments to drive company success. Align workforce performance with business strategic goals. Focus workforce practices on critical business success levers. Focus is on certifications, qualifications, competency and performance, measure not only performance but potential, maximize investments.

51. So what do we tell to leaders? What the workforce is capable of, What the workforce needs to evolve to, How successful are we executing, Where does $’s spent generate the best results, How should we form teams, Who, when, where, Where & How should work be performed and measured, What & How do we reward & recognize, Which employees are the future and how do we get them what they need to get there.

53. Some more examples Navy Budget Process Issue: Navy submits a Five Year Defense Plan and Program Objective Memorandum to justify budgetary requirements. Personnel costs, direct and supporting, represent a significant portion of the overall budget. Costs are driven by both internal and external factors. Solution: Developed predictive forecasting models allowing policy analysis and resulting strength and budget requirements (planning) and execution tracking models which allow month to month analysis (expenditures to target) Metrics: Annual and monthly strength, Costs, Readiness levels US FBI Strategic Planning Issue: The FBI recognized the changing nature of crime and trends would require reorganization and realignment. Solution: Developed a workforce strategic planning model which allowed analysis to develop future scenarios (requirements), forecast the gaps between the projected existing and future requirements and solutions for closing the gaps Metrics: annual gains, promotions, losses, experience levels and gaps by scenario

54. Questions

55. Thank You Russell.Klosk@serco-na.com (240) 778-1233 Paul.Thornton@serco-na.com (703) 939-6590