Metrics: The Why, The How and The When Not

© Chazey Partners 2016
Metrics: The Why, the How and the
When Not?
December 1, 2016| Arlington, Virginia
DELIVERING THE PROMISE …

North America | Latin America | Europe | Middle East | Africa | Asia©Chazey Partners 2016 2
This session will explore the key concepts, best practices and
lessons learned from our years of public sector experience and
other case studies. Attendees will learn how to:
 Establish or rebuild your metrics framework
 Implement metrics that are S.M.A.R.T. (Specific, Measurable,
Achievable, Relevant and Time-bound)
 Identify what metrics your internal clients care about and how
to engage them
 Drive relevance and performance from your metrics reporting
Metrics: The Why, the How and the When Not?

Agenda
Who We Are
Case Studies & Your Experience
Shared Services & Client Engagement
Performance Measurement Concepts
Establishing or Re-Building Frameworks

Your Facilitators
PHIL SEARLE
CEO & Founder
Phil Searle has more than 25 years of experience in Finance, Shared Services,
Technology and Outsourcing and is a globally recognized expert in business
transformation, shared services, offshoring, and outsourcing, covering both the
private and public sectors.
Prior to his current role, he was Group Vice President and CFO of Cendant TDS
International, responsible for all aspects of Finance across four continents, including
Decision Support, Financial Planning & Analysis, and Controllership and Financial, as
well as certain HR Shared Services. Prior to Cendant, Phil was VP Finance and
Corporate Controller at 3Com Corporation. Here he headed the Corporate Controller
Function and the Worldwide Shared Finance Services team. His responsibilities
included far reaching organizational, technology, service delivery and business process
improvement initiatives resulting in the global roll-out of ERP solutions and Shared
Services for Finance, HR, Supply Chain, Logistics and Customer Support.
He trained and qualified as a Chartered Accountant (ICAEW) in the UK with KPMG. He
has a BA Honours Degree in Economics from the University of Exeter and is also a
member of Financial Executives International (FEI).
Contact:
Tel: +1 408 402 3008
philsearle@chazeypartners.com
ROBERT TOWLE
Managing Director
Robert has over 20 years of experience in finance, shared services and technology
implementations. He has managed multiple shared services transformation projects and
has held multiple roles managing shared services operations in the U.S., U.K. and in
multiple locations in India. Recently he has lead an assessment of a multi-university system
including Finance, Information Technology and Human Resources. He has also led efforts
with a multi-functional shared services center and migrated finance functions to a third-
party outsourcer. He is currently leading an engagement for the transformation for the
EMEA region of a multi-billion financial services firm, including building an Accounting
Shared Services Center and Center of Expertise for FP&A.
Previously, he was the Vice President of Finance for Pinkerton Consulting. the Vice
President of Global Operations Finance for Travelport Limited, with responsibilities that
included the management of company’s Indian Shared Service Center, Global Corporate
Travel and North American Payroll Operations and the US Controller for Hewlett Packard.
He holds an MBA with Dual Concentrations in Finance and Information Technology from
Auburn University.
Contact:
Tel: +1 862 812 7851
roberttowle@chazeypartners.com

SHARED SERVICES BUSINESS TRANSFORMATION ENTERPRISE WIDE SECURITY
End-to-End solution: From
assessment to implementation
Optimization & Rebooting
Outsourcing Assessment
Technology Enablement
Global Business Services
Robotic Process Automation (RPA)
Coaching
GLOBAL MANAGEMENT CONSULTING
& ADVISORY SERVICES
Organization Design
Staffing Services
Mergers & Acquisitions
Technology Enablement
Business Continuity Planning
Audit Services
Cybersecurity
Operational Security
Business Continuity Planning
Global Consulting & Advisory: Three Pillars

Our Global Profile
Background: Founded 2006 • Global offices headquartered in California • Over 50 full-time and 70 specialist resources
The Chazey Difference: Continuity of staff • Practitioners first • Knowledge transfer • Engage client in transformation
Chazey Partners:
Serving multiple
industries, globally,
both private & public
sector

Who We Worked With
OUR CLIENTS
WHERE WE COME FROM

Agenda
Who We Are

• US Federal Government
• Corporate demanded
explanations &
remediation plans if
targets not achieved
Aggressive
• SSO groups resented
corporate function
• Seen as paper exercise
Pushback • Took “extra care” that
reports showed targets
@100%
• Reports less meaningful
Impact
• Impact ≠ intent
• People will seek to
avoid pain
• About getting better,
not about punishment
Lessons
Learned
Evil: Metrics as Punishment

• University with Health System
• Established multifunctional Shared
Service
• Measured only the part they
controlled
• Not the end-to-end process
No Client
Engagement
• Only looking at the small portion
of end-to-end process, metrics
were green
• Presented to clients as evidence of
success of Shared Services Center
Metrics Green • Service was horrible
• Clients had to pay chargeback
based on volume regardless of
whether SSC process volume;
some clients still handled own
transactions
Clients Red
• Need to develop metrics in
partnership with clients
• Whole process has more
relevance (output metric)
• Also measure inputs and
components (operational metrics)
to enable root cause analysis
Lessons
Learned
Evil: Metrics Green, Clients Red

• Pharmaceutical company
• Setting up HR hub in Hong Kong for
time zone, culture & language
support
• Planned for full slate of new
technology including case
management, applicant tracking
and payroll
Technology
Enablement
• None of technology was ready at
go-live
• Tried to re-implement existing US-
centric case management system
• Eventually settled on manual
process (macro-enabled
spreadsheet)
Manual
Process • Five metrics were implemented at
go-live
• Manal processes were integrated
into day-to-day procedures
(seamless)
• Resulting performance reports
were more timely and relevant than
those of established hubs with the
old case management system
Outcome
• Technology is oversold
• Better to have a small number of
the right metrics, than a large
number of less relevant metrics
• Macro-enabled spreadsheets &
optimized workflow can be
transformative
Lessons
Learned
Good: Less is More

• Introduction of
input KPIs
• SSO concerned
about client
reaction
Input KPIs
• Positive reaction
• Clients embracing
concept
Client
Reaction • Client actively
asking for
information
• “How can I make
this better?”
Evolution
• Finding efficiencies
• More partner-led
initiatives
Growth
Good: Engage Client, Drive Improvement

Agenda
Who We Are

Shared Services is the Organization that…
Simply a service that is shared
shared
services
Leading practice shared services: Treats the internal client as if they were an external client.
Shared
Services
Provides non-core services to the “business”, employing a specialist team, geographically unconstrained, and
focusing on the requirements of the internal client. This involves a philosophy and approach totally unlike
traditional “corporate-driven” centralization.
Definition
Has the goal of providing high quality, non-core, but mission critical services (which can include both repetitive
common processes and more specialized professional services) to the business at lower cost and more efficiently
than the business could otherwise provide for itself.
Goal
Achieves cost savings and higher quality of service by leveraging organizational re-alignment, economies of
scale, technology, lower cost locations, standardized end-to-end processes and best practice.How-To

Client Interaction Framework
Account
Management
Provider to client; via
reporting, communication, &
intentional interactions
Client Contact
Management
Client to provider; planned
operating model for client to
submit queries and actions
Service Partnership
Agreements
2-way agreements clarifying
relationships, including
service levels & inputs
Client
Feedback
Surveys, case management &
other tools to monitor
feedback and satisfaction
Continuous
Improvement
Follow up on feedback &
performance reports to
improve processes & systems
Process Control
Database
Document & maintain matrix
of client & provider
responsibilities
Performance
Measurement
Input, output & operational
metrics with targets,
covering multiple parameters
Performance
Reporting
Creation & distribution of
performance reports &
resulting action plans
Recharging
Methodology
Funding models & strategies
to link client impact on
process to chargeback

Metrics Enable the Client Interaction Framework
Recharging
Methodology
Performance
Reporting
Performance
Measurement
Process Control
Database
Client
Feedback
Client Contact
Management
Service Partnership
Agreement
Account
Management
Bring reality check to
client conversations
Measure input volumes
and exceptions
Documentation of
negotiated service levels
Process
handover points
Reported regularly to all
stakeholders
Full framework of input, output,
and operational metrics
Measure
client satisfaction
Chargebacks typically
linked to metrics
Continuous
Improvement
Support culture of
continuous improvement

Agenda
Who We Are

Definitions
• Metrics: The list of items being measured with their specific definitions
• Key Performance Indicators (KPIs): A sub-set of metrics that typically focus
on input and output measures, often are used to populate dashboards, and
provide a good sense of overall performance despite their limited number
• Measures: The actual values/past results recorded against the metrics
• Benchmarks: The measures against which the organization assesses its
performance
• Targets: The negotiated and agreed service levels, often set with reference
to benchmarks

Types of Metrics
OutputProcess
Input
Metrics
Operational
Metrics
Output
Metrics
Measure provider contribution
Efficient, effective, timely
processing?
e.g., Cost to screen resume for
minimum requirements
Become “individual metrics” if
broken down by person
Measure end-to-end process
What does client need overall
from this process?
e.g., How long it takes from
vacancy to onboarding
A.K.A. “lagging” metrics
Measure client input
Timely, standardized and in the
prescribed format?
e.g., Completeness of
information in request to hire
A.K.A. “leading” or “reverse”
metrics
Input

Parameters for Metrics
Consistent, accurate and complete to agreed standardQuality
Responsiveness and turnaround timesTimeliness
Meets policy, regulatory and statutory requirementsCompliance
Volume measuresWorkload
Effort and cost per unit of outputEfficiency
Client and employee satisfactionSatisfaction
Parameter Description

Specific
Standardized
definition
Not subject to
interpretation
Measureable
Possible to measure
and compare
against
target
Relevant
Link to strategy of
organization
Acting on it
impacts
performance
Time-Bound
KPI only has
meaning if linked
to period of time
Metrics need to be S.M.A.R.T.
Accountable
Possible to assign
accountability for
action plan &
results

Identify Client
& Goal
Define Metrics Set Target
Develop
Initiative
Targets are Practical, Relevant & Achievable
Why What When How
Why are you
setting a target?
Identify the
client and goal
to be achieved
What are you
going to measure?
Define a specific
metric & agree
with client
When have you
achieved success?
Define the target
in reference to
benchmarks
How will you
achieve goal?
Develop specific
actions to
achieve goal

1. Start by identifying your client and the goal for performance measurement
2. Overall framework should include all types (input, operational, and output) and parameters
(quality, timeliness, compliance, workload, efficiency, satisfaction)
3. Cascade organizational strategy/goals through Performance Measurement Framework
4. Negotiate and agree with the client and departments
5. Include targets for current and future operations and comparisons to external benchmarks
6. Establish a process to refresh metrics as targets are achieved or become less relevant
7. Include key exception indicators to go after exceptions/defects in processes and drive
continuous improvement
8. Enable with technology to minimize/eliminate manual data collection/reporting
9. Use to drive continuous improvement and all elements of the Client Interaction Framework
10. Ensure metrics are S.M.A.R.T. (Specific, Measureable, Achievable, Relevant, Time-bound)
Leading Practices in Performance Measurement

Agenda
Who We Are

RecommendationsGap AnalysisAssessmentMobilization
• Define the scope of the
process being measured
• Identify your client
• Mobilize your resources
• Clarify your goals/
objectives for
performance
measurement
• Collect existing metrics,
measures & reports
• Interview stakeholders
• Develop a technology
landscape and appraisal
• Review action plans and
follow up resulting from
prior performance
reporting
• Compare existing
metrics against:
• Three types
• Six parameters
• Targets
• S.M.A.R.T.
• Prioritize gaps
• Identify resourcing
• Technology requirements
• Leverage strengths and
addressing challenges
• Change management
• Targets and service levels
• Implementation
timeframes
• What does the future
state look like if we
continue as-is?

Three Sets of Metrics
Initial Metrics
• To be ready at go-live
Deferred Metrics
• To be implemented
when a constraint
such as technology is
addressed
Potential Metrics
• That are lower
priority but could be
implemented in the
future
Typically, organizations completing this review will have three sets of metrics:
It is important to establish a process to refresh the framework on a regular basis. When
looking to replace existing metrics, the pool of potential metrics is a great place to start.

• Create vision and develop clear roadmap
• Don’t expect 100% buy-in on framework, but identify champions and sponsors
• Negotiated and agreed between providers, clients & stakeholders
Achieve Buy-In
• If you go too fast, you’ll lose prior supporters and sponsors
• Build understanding through working with teams
• Build skills in analysis, management and continuous improvement
Watch Speed
• Metrics done properly improve client engagement & understanding of client needs
• Dig deep to understand issues
• Frank, open and honest conversations with the client
Overcome
Resistance
• Push/Pull Dynamic (client expectations vs. affordability)
• If achieve 100% every period, change target or drop metric
• Continually evaluate to ensure meaningful, aligned & relevant
Set targets
Winning Strategies

1. Metrics enable and support a
proactive, structured approach
to client relationships
2. Metrics can be used for good or
evil – don’t be evil
3. Picking the right metrics is just
as important as deciding to use
metrics – wrong choices will
drive wrong behaviors
Leverage Our Experience
for Your Success
Top Three Takeaways

www.chazeypartners.com
enquiries@chazeypartners.com

Metrics: The Why, The How and The When Not

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