] COREY PEARSON [ ASUG INSTALLATION MEMBER MEMBER SINCE: 2008 CHAVONE JACOBS [ ASUG INSTALLATION MEMBER MEMBER SINCE: 2003 ALLAN FISHER [ ASUG INSTALLATION MEMBER MEMBER SINCE: 2008 HR SHARED SERVICES CANADA POST CORPORATION SYLVIE SARAULT

Real Experience. Real Advantage. [ 2 AGENDA  Why and how we implemented a HR Shared Services model at Canada Post  What went well…and not so well  Lessons learned after go-live

Real Experience. Real Advantage. [ THE BUSINESS CASE

Real Experience. Real Advantage. [ 4 Key Drivers for Shared Services  Canada Post was in a period of significant cost constraint beginning in 2007, with an emphasis on headcount reductions and a hiring freeze among other cost saving strategies  This trend of focusing on cost reduction would continue into the future  At the same time, about 30 to 40% of Canada Post’s workforce would retire within the next 5 to 7 years  This attrition would severely strain parts of the HR organization

Real Experience. Real Advantage. [ Canada Post had recognized that it’s HR department was currently facing three significant challenges that could be addressed by an HR Shared Services delivery model:  Lack of standardized HR process (doing transaction activities a different way) across the company/country was contributing to inconsistent service delivery  Transactional inefficiencies (infrequent transactions and re- work increase processing time) were resulting in increased service delivery costs  Ineffective HR service provision and access (night shift workers unable to contact HR), was adversely impacting employee satisfaction and engagement Challenges in Human Resources

Real Experience. Real Advantage. [ 6 Return on Investment Business case presented to Senior Executives via the Stage-Gate® process:  Headcount reductions of 99 over next 5 yrs as a result of enhanced processes, technology improvements, KM solution and centralization of activities/HR sites * Reductions in HR started in 2007 in anticipation of approved business case * Payroll Contact Centre framework already in place

Real Experience. Real Advantage. [ DESIGNING A SOLUTION

Real Experience. Real Advantage. [ Project Environment  Multi-year, multiple release program  3 different companies involved  Team size peaked at 78 people  6 month Business Case phase, followed by a 15 month Execution phase  Funding of $16.5M for the HR Shared Services project, plus an additional $5.6M for the Short Term Disability initiative

Real Experience. Real Advantage. [ Design Focused on 3 Key Pillars  People – Designing, creating and implementing a new organization of more than 200 people, with new job descriptions, roles and responsibilities  Process – Over 70 new processes to be created and documented  Technology – New technology platform composed of  SAP EIC  SAP Workflow  Enhanced Employee Self Service Portal  Adobe Smart Forms  Expansion of Canada Post telephony solution

Real Experience. Real Advantage. [ Challenges Addressed by Shared Services ChallengeHow the new organization addressed the challenge Lack of standardized HR processes Use of a process based model with supporting processes to ensure consistent delivery of transactional work New and standardized processes managed by a control group Service level agreements to measure effectiveness and track process and service delivery commitments Transactional inefficiencies Transaction Centre has a process based organization model Quality control processing of information Consistent transaction processes with SLA’s Ineffective HR service provision and access HR Contact Centre to provide consistent and effective customer service Contact Centre shift support (open for business 5AM to 10PM EST) Implementation of a new Knowledge Management Tool – Consistent and accurate responses to HR enquiries Employee’s provided with Self Serve access

Real Experience. Real Advantage. [ Organization and Technology

Real Experience. Real Advantage. [ OPERATING MODEL

Real Experience. Real Advantage. [ What is Shared Services at Canada Post? AccessHR is composed of a Contact & Transaction Centre Policy Owners Contact Centre Transaction Centre Self Service The AccessHR community at Canada Post will leverage self service on one side; and will seek guidance from policy owners on the other side for policy interpretation. Contact Centre Hours of operation: 5am to 10pm Eastern time

Real Experience. Real Advantage. [ Flow of Information in AccessHR CC Agents Supervisors Master Data On Line Forms s CONTACT CENTRE TRANSACTION CENTRE Employee Movement Phone CC Mailroom Level 2 SMEs Leave of Absence Hard Copies Fax Subject Line Identifier Users via MSS in SAP Portal: Managers, Operations functions, HR

Real Experience. Real Advantage. [ THE REALITY

Real Experience. Real Advantage. [ 16 Contact Centre Tidal Wave of Calls and Volumes  Build a HR Contact Centre and everyone will call…even if it is not related to HR business First 4 months of 2010 Calls Offered18,92997,89066,973 Calls Answered18,03480,28741,657 Abandon Rate %1.4%10.82%35,13% Average Speed of Answer 65 seconds90 seconds265 seconds (4 minutes 42 s) s8,50030,56019,760 Total Contacts26,667128,45086,733

Real Experience. Real Advantage. [ Transaction Centre Starting Fresh – With a Significant Backlog of Work

Real Experience. Real Advantage. [ And Just to Make Sure We Made It Interesting  Allocated resources reduced from 84 to 40 prior to go-live  Three months into stabilization: another ask to reduce an additional 20 resources  Lack of understanding of Shared Services delivery model by employees, supervisors and our own HR  Resistance to the change  New employees in the Contact Centre and Transaction Centre  New initiatives developed by Policy Owners

Real Experience. Real Advantage. [ STABILIZATION EFFORTS

Real Experience. Real Advantage. [ What We Have Been Through CONTACT CENTRE Hired 7 additional resources to cope with abandon rates Introduced skill sets on the IVR Redirect communications away from phones (don’t call us if…) Re-designed the website so that it: was more user friendly answered the most frequent employee enquiries rather than letting employees write their questions in a free-text format on-line form provided a drop-down menu driven on-line form only if enquiry still not addressed

Real Experience. Real Advantage. [ What We Have Been Through TRANSACTION CENTRE Realign work within work pods Overtime Training of new employees on SAP PA40 New on-line forms flowing work directly to the Transaction Centre rather than the Contact Centre Enhanced use of WinShuttle product to automate PA40 transactions, form letters, DI kits, payroll validation Rapid alignment with Policy Owners to fix clunky processes Deeper reporting to assess volumes in EIC and allow for load-levelling to other sites or groups

Real Experience. Real Advantage. [ 22 Reporting

Real Experience. Real Advantage. [ Reporting

Real Experience. Real Advantage. [ IF WE KNEW THEN WHAT WE KNOW NOW

Real Experience. Real Advantage. [ If I Could Go Back in Time…  Go live during a low volume (calls, s, transactions) period e.g. summer  Plan for nine months of stabilization and be prepared for numerous change requests in technology solution  Don’t be conservative in your estimates (call volumes and transactions) – you will get more than you planned for  Don’t underestimate your change management efforts  Make sure the rest of HR knows the Shared Services solution and understands their new roles  Establish an escalation network in key areas to support users during stabilization  Implement SLAs even if you’re not sure of your numbers  Don’t spend too much time and effort in the build phase on reporting requirements – you will not know exactly what you need until a few months into stabilization

Real Experience. Real Advantage. [ Today and Tomorrow Today:  Viewed as a success story by Senior Executives  Achieved the Business Case within 1 yr rather than 5 yrs  Shared Services Steering Committee  Policy Owners have tangible numbers and comments to address Employee Engagement, improve the employee experience, improve communication vehicles, introduce new policies  Independent Shared Services Health check report

Real Experience. Real Advantage. [ Today and Tomorrow Tomorrow:  Independent Shared Services Health check report  Negotiation of SLAs  Increased use of WinShuttle  Extension of Shared Services in other areas of HR

Real Experience. Real Advantage. [ 28 ]  Thank you for participating.