What is IT? What is it? What value? Why now?

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1 January 2010

2 What is IT? What is it? What value? Why now? Tactical: Simpler, quicker, more accurate access to HR data Reported in a way that supports critical business decision making Emphasis on insights to drive rapid operational savings Strategic: Creative insights derived from predictive modeling and scenario planning Actionable insights to strengthen decision making and reinforce innovation Understand workforce and labor effectiveness: Cost Reductions: Labor cost reductions (5-20%*); identify labor cost levers to focus on to drive savings and headcount efficiencies Performance Improvement: Increase productivity (15-20%*); Improve retention of high performers (4-50%*); Increase employee engagement (positive correlation to revenue and customer satisfaction); Reduce risk events and non-compliance reductions Operational Savings: Leaner and more targeted HR organization with $$M savings annually from retention (4-50%*), relocation, recruitment (25-55%*), training (20-50%*), etc. Time to value Requires rapid start to support current cost reduction and revenue protection efforts Longer term savings require infrastructure capabilities to derive insights Support Global organization change in process Requires standardized and single view of HR data to measure human capital link to business results * Based on Accenture results with other clients

3 How do we talk about IT? HR Business Intelligence Program Quick Wins/Segment Learnings Foundation/Technology/Infrastructure Blueprint Data/Information Reporting/Metrics/Analytics Modeling/Predictive Business Intelligence Competency Center Analytics Adoption 3

4 HR Business Intelligence The Journey Our journey to building a world-class HR business intelligence capability and organization that is scalable and sustainable. Basic Developing Defined Advanced Leading HR analytics are not used in business operations HR analytics are used on an ad-hoc basis to improve business operations The organization produces periodical reports which management uses in decision making In addition to periodical reports, management utilizes data to test hypotheses and improve the quality of business operations Sophisticated predictive modeling is used in scenariobased analysis; data points management to opportunities for improving operations and mitigating risks HR Business Intelligence Capability

5 Data Required Report / Metric An Example Attrition Analytics Basic Developing Defined Advanced Leading How many people left? Who left? Did the right people leave? Who is at risk of leaving? Who should we hire? Attrition by Segment/Department/ Job type/position Planned/Unplanned Attrition by Segment/ Department/ Job Type/Position Attrition Performance Ratio by Segment/ Department/ Manager Unplanned Top Performer Attrition Risk by Department Attrition Risk Profile by New Hire Candidate Currently reported using manual and local automated processes Data available today via SAP BW Requires planned/ unplanned calculation in Cognos Requires integration of Performance Connection Data Requires calculation of Attrition Performance Ratio in Cognos Requires integration of Engagement Survey/ Exit Interview data Further integrate Labor Market data to evaluate replacement risk/cost in critical workforce segments Requires development and integration of newhire pre-screening test Track performance and create a feedback loop to optimize test results over time Business Value Generated Basic Developing Defined Advanced Leading Limited value. Allows for enterprise snapshot and simple trending. Little granularity of reporting. Not the whole story. Identify clusters of planned/unplanned attrition and enable deepdive analysis. Search for specific drivers of good and bad attrition (incentives, leadership, career development, etc.) and actively adjust / reinforce strategy. Calculate historical Attrition Performance Ratios (i.e. loss of low performers to high performers) at multiple org levels. Focus on areas/people with low ratios to help drive behavioral change and drive smart retention. Develop Attrition Risk Profiles for critical workforce segments. Predict attrition of Top Performers, evaluate the impact of that attrition against predicted labor market scenarios, and determine cost/benefit for specific interventions. Calculate attrition risk profiles for all candidates prior to hiring. Optimize hiring strategies by addressing attrition proactively at the point of hire, rather than reactively at the point of employee departure.

6 An approach The first steps The Walt Disney Company

7 Program Background, Objectives, and Approach TWDC HR has invested in Enterprise applications to separately support functional requirements. This has resulted in loosely integrated HR applications - each with its own reporting tool Background Today our systems allow us to answer simple targeted questions focused on specific HR functions. This has limited value and does not allow us to easily answer strategic questions that require a comprehensive view of data. Multiple, manual databases with many reconciling steps required to answer most business questions Overall Program Objectives Approach A single Business Intelligence environment with comprehensive data and robust tools to support data-driven decision making Develop infrastructure that supports Enterprise and Segment requirements Drive cost savings through reducing duplicate work and manual reconciliations Quick Wins Diversity Dashboard Leadership Reports Dashboard Benefit: Gain lessons learned through hands-on development Great communication tool in describing the value of BI Achieve value as we grow with analytic maturity Workforce Analytics Foundation Phase I Workforce Strength Talent Development Talent Retention Talent Acquisition Workforce Compensation Foundation Phase II Talent Development Talent Retention Talent Acquisition Analytics Adoption/Change Management: Identification of an analytics subject matter expert to oversee the ongoing transition to an Enterprise HR Data Warehouse and the ongoing development of Analytics Maturity. Governance Education Communication & Training Release 1 Benefits: Enterprise HR Data Warehouse Pre-packaged Data Model Supports multiple reporting tools Enterprise HR Analytics Center of Excellence Segme nt Segments Segment 7

8 HR Systems Infrastructure September 2008 Many solutions solving a common problem Fragmented reporting Inconsistent user experience TALENT ACQUISITION Internal TWDC Sites External TWDC Sites External Job Postings Applicants Talent Acquisition (VURV) SOR = Applicants College Program Recruitment (SAP Recruitment) SOR = Applicants Cognos R3/BW Hire s On-Boarding (Aloha) Temp Staffing (DOTS) MS Access LEARNING Learning Management (DDC) SOR = Training History PORTAL Business Objects Scheduling Systems (WDP&R) TALENT PLANNING Talent Planning (Performance E Connection) SOR = Talent Plan None Payroll (SAP) PAYROLL ADP (International) Other Local Providers (non-us) EMPLOYEE LIFE EVENTS & MASTER DATA Human Resources (SAP) SOR = Employee Master Data Contacts SOR = Work Location R3/BW/ Cognos HR Data Repository (CORE) Policy (Authoria) Org Charts (OrgPublisher) (SAP) Executive Presentation Employee Data (CHRIS) Contract Admin (CARS) Hummingbird SOR = Employee Files ESS/MSS Self Service (SAP) PERFORMANCE MGMT Performance Mgmt (Performance Connection) SOR = Performance Rating E None TIME Workbrain Kronos SC Kronos TDS STAR Mannet Hours to Gross Rerun MICROS CATS (SAP) Theatrical Intl Time Systems CORE BENEFITS Health, Welfare & Pension Admin (Hewitt) SOR = Elections 401(k) Admin (Fidelity) SOR = Elections COMPENSATION Merit, Bonus, Stock & Off-cycle Planning (Workscape Coming Soon) Compensation Planning (SAP) East Coast Relocation (ReloCC) MS Access West Coast Relocation (DORS) Stock Option Admin (Merrill Lynch) SOR = Stock Grants Excel (WDP&R & ESPN) E International Relocation (KPMG/LINK) NOTE: All systems exclude Pixar (until FY10) & Tokyo Disneyland LEGEND: Global multi-lingual E Global English Only U.S. Only Reporting Tool Employee Facing

9 HR Systems Infrastructure - Vision Establish and agree on global, regional & local processes Aggregated data for comprehensive, global reporting Process System Data Global Reporting Talent Acq Comp Internal System of Record Global: Talent Acq Comp Learning & Dev Talent Dev User experience Metrics Global Mobility Regional: I-9 Onboarding Payroll Time Common Data & Policy Common Data & Policy Outsourced: H & W admin Pension admin 401(k) admin Stock Option admin Common Data & Policy TWDC Site Job Postings Talent Acquisition (Kenexa) On-Boarding Temp Staffing (TBD) College Program Recruitment (SAP) Talent Planning Perf Mgmt (TBD) Talent Dev EE Admin (SAP) Third Party Partners Comprehensive Plng Tool Merit, Stock,Bonus (Workscape) Common Solutions Learning Mgmt Scheduling (DDC) Learning & Dev Merrill Lynch Fidelity Hewitt CIGNA Proprietary and Confidential. Not complete without accompanying verbal presentation. SAP: Emp Master Domestic pay Domestic time Labor/Workforce Finance DDC: Training History Talent Dev database: Talent plan Perf rating Reporting Data Warehouse Applicants Benefits Comp Planning history External payroll DLP HRIS data PIXAR HRIS data Market analysis data Business data Ad Hoc Analytics Workforce Intelligence Dashboards Modeling w/ Internal & Market Data 9

10 HR BI Investment A Stepwise Approach Gain commitment to a 3-5 year HR Business Intelligence strategy Separate work into measured deliverables, individually funded, providing immediate value Take executive checkpoints along the way with appropriate governance to greenlight next steps and guide the program Months 1-18 Funding Request #1 Delivery of Diversity Dashboard; Delivery of Leadership Reports; Implementation of Workforce Analytics package; Implementation of Enterprise Data Warehouse infrastructure; Ongoing change management and education of Business Intelligence Months Funding Request #2 Aggregation of additional enterprise data; Aggregation of segment specific data, Delivery of Total Rewards statements Ongoing analytic maturity Months Funding Request #3 Completion of data aggregation; Metrics to support predictive decision making; Ongoing analytic maturity 10

11 Drive Successful Adoption Goal : Analytics will eventually be embedded in day-to-day, instantaneous decision making and tracking. Develop Internal Marketing, Branding, and Communication Motivate Organizational and Behavioral Change Develop Comprehensive Process and Tech Training Comprehensive Change and Launch Plan Stakeholder Management Plan Executive Sponsorship 11

12 Executive Sponsors CIO SVP, Enterprise Comp, Benefits & HRIS SVP, Segment HR SVP, Corporate Finance

13 Marketing & Buy-In with a Quick Win deliverable The data is readily available & consistently defined Content can be enterprise-wide view; ability to filter for segment Simple security requirements Provides value immediately, with initially developed version. Can be developed in a short timeframe window 13

14 Quick Wins WHY? Phase 1 (BW as DW) Phase 2 (Cognos BI Cube) Functionality Cognos functionality is restricted Additional Cognos functionality Capability of joining with other non-sap data Development Agility Dependence on SAP development and releases Faster POC development Faster modifications Data Latency Same as BW cube load Can be controlled independently of BW loads Performance Data Security Maintenance Slower Caching helps. Data Security is inherited from SAP. No additional maintenance. Low maintenance since no data movement Better performance since the data is precalculated and restricted to the specific dashboard requirements. Cognos data security requires additional maintenance. High Maintenance due to more data movements and also introduces more data reconciliation requirements 14

15 Diversity Dashboard 15

16 Integrated HRBI Project Work Stream approach Project Work Streams DATA GOVERNANCE: Define a data governance organization, the supporting processes and supporting tools to establish and monitor HR BI data definitions and data quality. BICC: Define a cross-operating unit organization that identifies the data and measures needed to answer strategic business questions and develops methods to present interactive complex information for decision making. ANALYTICS EXCELLENCE: Design a program that enables a shift from siloed reporting to sophisticated analysis and reporting of HR functions and strategic initiatives. Define the future-state goal for analytics at enterprise and segment levels, and assess the level of readiness. Develop an approach and plan to execute adoption and advance analytics excellence within each operating unit. TECHNOLOGY: Design, configure, and implement the Workforce Analytics Solution, and manage integration with the Disney environment. DAY-2: Characterize and drive the key information requirements to support the strategy of the business segments. Through interviews with key analytics stakeholders, Day 2 will generate a prioritized list of opportunities to help plan the next, and future, phases of workforce analytics across the enterprise.

17 How Do We Get There? Technology Data Value Governance Organization Process Adoption What enablers are required? How do we get the most out of our data? What business issues are we trying to solve? How are analytical decisions made? What capabilities do we need? What process changes are required? How do we make the shift? TECHNOLOGY: Design, configure, and implement the Workforce Analytics Solution. Manage integration with the Disney environment. DAY-2: Visioning to showcase the short- and longterm opportunities and value. Generate a prioritized list business analytic solutions to help plan the phases of workforce analytics across the company. DATA GOVERNANCE: Define a data governance organization, the supporting processes and supporting tools to establish and monitor HR BI data definitions and data quality. BICC: Define a crossoperating unit organization that identifies the data and measures needed to answer strategic business questions. Manages enterprise programs and initiatives to evolve analytics capabilities. ANALYTICS EXCELLENCE: Define a program that enables a shift from siloed reporting to sophisticated analytics. Develop a marketing and communications strategy to drive adoption and analytics excellence across the company.

18 Overview of 5 HRBI Work Streams

19 Technology Work Stream Overview Build out an analytic application that can provide insight into human resource and workforce issues. Workforce Performance Workforce Benefits: Strength The application is designed to provide rapid deployment of industry standard metrics while providing the flexibility to grow and adjust the data and metrics to address specific business requirements. Talent Acquisition Compensation Talent Development Talent Retention Value for the Business Transforms data from HRIS solutions into actionable information, enabling executives, managers, business analysts, and human resource (HR) specialists to measure, monitor, and report on workforce performance. Value for IT Streamlines the configuration of reports and enables users to add new content to meet changing workforce requirements quickly and cost-effectively.

20 Day-2 Work Stream Overview Objectives Characterize and drive the key information requirements to support the strategy of the business segments. Through interviews with key analytics stakeholders, Day 2 will generate a prioritized list of opportunities to help plan the next, and future, phases of workforce analytics across the enterprise Sep Oct Nov Dec Jan Feb Assessment Evaluate Opportunities Functional Design Technical Detailed Design and Metrics Definition Develop and Test Deploy Conduct Interviews and Assess Interview Output Summary Analyze and Identify List of 5 Additional Analytic areas for Day 2 Functional Design & Visual Mock-ups 1. Attrition 2. Diversity 3. Organizational Movement 4. Productivity 5. Talent Planning 4 5 COMPLETE Technical Design and Metrics Definition COMPLETE Develop, Test and Deploy

21 Day 1 Cognos Users Can Develop Insights Using Two Different Methods: Dashboards and Assisted Deep Dives Dashboards Pre-configured dashboards provide end-users with consistent and easy access to established metrics. Dashboards may provide enterprise-level data, or segment- and function-specific information, and some basic drill-down functionality. Ad Hoc Analysis For business challenges that require data beyond the established dashboards, users will need to utilize ad hoc analysis functionality. Here, end users can partner with analysts to dive deeper into the high-level data that they have accessed through the dashboard.

22

23 Data Governance Work Stream Overview Objectives Define a data governance organization design, the supporting processes and tools to establish and monitor HR BI data definitions and data quality. Sep Oct Nov Dec 2010 Disney Data Integrity Project Data Governance Requirements Requirements Development Data Governance Organization Design, Role Profiles Requirements Sign-off Process Flows and Supporting Narratives Application Landscape Document Data Governance Implementation Plan Process Flows Training Curriculum Tool Analysis & Recommendation Implementation Plan Organizational requirements to manage data issues and drive towards effective and timely resolution Ensure accurate, consistent and reliable data that can be more seamlessly integrated and reported, resulting in greater business confidence in information Define a structured process for the on-going maintenance and communication of standard structures, naming conventions and data standards Provide policy and direction to ensure data integrity, maximize the use of data, and minimize the costs associated with data collection and data management Reduce proliferation of departmental solutions/data definitions and drive segment accountability

24 HR Business Intelligence Competency Center (BICC) Work Stream Overview Objectives Define a cross-operating unit structure that provides BI focus & leadership for TWDC HR: identifies the data and measures needed to answer strategic business questions, develops methods to present interactive complex information for decision making, and provides tools, support & capability to the segments Oct Nov Dec Assess Design Plan Jan BICC Requirements BICC Organization Design, Role Profiles Long-Term/Permanent BICC Implementation Plan BICC Capability Definition and Maturity Model BICC Process Flows and Supporting Narratives Talent Acquisition Strategy Training Curriculum and Plan 2011 Feb Mar Apr Deploy Tool Analysis and Recommendations Start-up and transition to new processes and operating model Advanced resources are available to provide statistical and predictive modeling capability Users, at all levels, know where to get reports, dashboards and critical HR information. and, where to get help Leadership is in place to drive key BI initiatives, facilitate governance, make decisions and ensure business segment needs are being met

25 Communication Strategy Analytics Excellence Work Stream Overview Objectives Design a program that enables a shift from siloed reporting to sophisticated analysis and reporting of HR functions and strategic initiatives. Define the future-state goal for analytics at enterprise and segment levels, and assess the level of readiness. Develop an approach and plan to execute adoption and advance analytics excellence within each operating unit Nov Analytics Capability Definition and Maturity Model (each operating unit) Enterprise Definitions for Analytics Excellence Current State, Interim and Desired State Dec Jan Analytics Capability Definitions AE Marketing and Communications Strategy 2011 Develop BI Adoption Accelerator Strategy Feb Tools to accelerate the adoption of HR BI (vignettes, communications, day-inthe-life) Phase I Basic Phase II Developing Phase III Defined Phase IV Advanced Phase V Leading Audience Analysis Vehicle/Channel Inventory Messaging & Timing Strategy Analytics Excellence Capability Adoption Readiness Assessment Adoption Strategy and Maturity Roadmap Adoption Plans Develop Adoption and Maturity Plans (each operating unit) R Is the vision and mission of the BI Analytics project clear? Are stakeholders receiving accurate and timely information? Are project leaders and sponsors visibly championing the project? S1 S2 S3 Roles needed to advance HR BI Analytics Adoption Definition of different degrees of adoption Plan and timeline to execute adoption and advance analytics excellence within each operating unit Are stakeholders demonstrating support for the project? Do the organization s infrastructure, culture and work process support the BI Analytics success?

26 The CoE Leads the Charge for Data-Driven Decision Making HR Analytics Center of Excellence Responsible for HR Analytics Drives framework to focus on key HR business performance drivers Staffs the most advanced analytic expertise to focus on strategic initiatives with quicker and more accurate turnaround Collaborates with and across Segments to identify hypotheses Leverages and shares internal and external best practices Value Derived from Segments Identify business hypotheses for exploration Value Delivered to Segments Provide actionable insights Uncover potential gaps and undiscovered opportunities Provide consulting support Mine for over-arching insights to be enhanced at the Segment level Segment-specific Analytics Groups Focuses on segment specific dynamics and challenges, anchored on same key business performance drivers 26

27 Contact Information Thank you! Jane Bemis VP, Enterprise HRIS The Walt Disney Company Ken Nigro Director, HR Business Intelligence The Walt Disney Company 27

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