This is a pre-recorded webinar session. Join us live! Visit www.saba.com/us/about/events. Integrated talent management solutions, referred to as talent management suites are the most rapidly growing area within human capital management (HCM) software today, replacing the disparate siloed applications that proliferated in many organizations.[1] These separate standalone products, often considered the leaders at the time of purchase are increasingly becoming displaced by single vendor solutions that are integrated or at least modular and easy to integrate. Key takeaways include: 1. Software management issues facing HR today 2. The value of the single suite 3. Getting started: Business case planning and preparation In this webinar, conducted by Dr. Katherine Jones, VP of HCM Technology Research at Bersin by Deloitte, Deloitte Consulting LLP, you will have the opportunity to learn the issues and drivers for this accelerating movement today and how to create the business case to drive investment decisions for unified talent software architecture. Register here to join us on August 7th at 1:00pm ET to learn key steps in creating a compelling business case for talent suite acquisition. [1]Talent Optimization for the Global Workforce: The Market for Talent Management Systems 2014. Katherine Jones. Bersin by Deloitte. 2014.

1. 1
Getting to Yes: Creating a
Business Case for a Talent
Management Suite
Katherine Jones, Ph.D.
Vice President, HCM Technology Research
Bersin by Deloitte
Deloitte Consulting LLP

2. 2
Agenda
 Software management issues facing HR today
 What research tells us
 The value of the single suite
 Getting started: Business case planning and preparation

3. 33
Software Issues Facing HR Today

4. 4
The State of the Art:
HCM Software in Use Today
Source: Investments in Human Capital Management Systems 2014. Katherine Jones. Bersin by Deloitte. Spring 2014.

5. 5
Too Much To Manage
“Large” = 25,000+ employees
Source: Investments in Human Capital Management Systems 2014. Katherine Jones. Bersin by Deloitte. Spring 2014.
2012 18%
2013 33%

6. 6
Talent
applications
are aging…
Recruiting
Performance Management
Compensation
Learning
Time & Attendance
Succession
40%
17%
19%
26%
17%
12%
7+ Years Old
Investments in Human Capital Management Systems 2014, Katherine Jones. Bersin by Deloitte. Spring 2014.

7. 77
What
Research
Tells US

8. 8
organizations are considering purchasing new
HR or Talent Management technology in the next
18 months
54%
90% replacing the existing solutions used today
Investments in Human Capital Management Systems 2014, Katherine Jones. Bersin by Deloitte. Spring 2014.

9. 9
Strategy Matters:
Business Drivers Push
New Software Choices

10. 10
41% Desire to move to new cloud-based
technology/SaaS
Move from disparate local HR
systems to one global system35%
Desire to consolidate around one
vendor's platform29%
Investments in Human Capital Management Systems 2014 Katherine Jones. Bersin by Deloitte. Spring 2014.
Addressing Strategy Shifts through
Technology

11. 11

12. 12
Can’t integrate
with other
systems
60%
Can’t get
analytics
53%
Improve
user
experience
53%
Source: Investments in Human Capital Management Systems 2014.
Katherine Jones. Bersin by Deloitte. 2014.
Top 3
Drivers
for
Replacing
TM
Software

13. 13
Selection Criteria
Improved analytics
Better User
experience
Integration
Cloud
Source: Deploying HCM Technologies: Making Change Work. Katherine Jones.
Bersin by Deloitte. 2014.

14. 14
“Cloud”
GOAL
Technology
Consolidation
Application
Integration
CRITERIA
User
Experience
Analytics
• Lower cost software
contractual
arrangements
• More rapid response
to changing labor
markets
• Improved employee
relationship
management
• Enhanced scalability
via SaaS
• .
BUSINESS OUTCOMES

15. 1515
Preparing the
Business Case

16. 16
Why Buy New Software?
Solve a Business Problem
• Lower operating costs
• Improve employee
productivity
Pursue a Business Opportunity
• Increase production
• Open new markets
Gain a
Competitive
Edge

17. 17
Five Steps for Developing a Business Case for a
Talent Management Suite

18. 18
 Your business case will have a much great likelihood of
success if you have an executive sponsor or supporter.
 It is critical to find out who the different “players” are and
what their issues are likely to be.
- Who are the decision maker(s) for the business case?
- Who will be affected by the solution?
- Who are the people to approach when gathering information to
build the business case?
- Does the proposal have a champion or sponsor?
- Who are the potential naysayers?

Identify the
Business
Issues &
Stakeholders
Define the
Solution
Identify Costs
& Make
Informed
Assumptions
Quantify
Impact

19. 19
CHRO
• High turnover costs
• Employee survey results
• Low employee engagement
CEO
• Growing top-line revenues
• Reducing product costs
• Expanding into new markets
CFO
• Reduce risk exposure
• Strategic mergers &
acquisitions
CMO
• Capitalizing on social media
• Building workforce capability to
deliver a perfect experience
to the “connected” customer
What Keeps Executives Up at Night

20. 20
Identifying Business Problems
High turnover among
key positions
Difficulty hiring
the right
person
Theft / Loss
Safety issues
Growing operations
overseas
Improving
performance/
engagement
Meeting
regulatory / compliance
requirements
Reducing
operational costs
Innovation— out-
innovating our
competitors

21. 21
• Identify the issues
impacting the business
• Identify the organizational
sponsors/influential
leaders
• Articulate in ways that
engage the key
stakeholders
Identify the Issues
& Stakeholders
Example Example Stakeholders Impacted
• Increased Absenteeism • Line Managers, COO
• High Turnover • CEO, CHRO, Line Managers
• System Consolidation • CIO
• Critical Skill Gaps • CEO, CHRO, Line Managers
• High Benefit Costs • CFO, CHRO
• Labor Law Changes • Legal Counsel
• Environmental Emergencies • Heath & Safety, COO
Identifying Issues
• Talk to business leaders, line managers, HR, and talent
leaders
• Conduct industry & market research
• Identify key stakeholders: Who will make decisions? Who will
benefit? Who will be impacted?

22. 22
Structuring the Business Case
• Identify issues
impacting the
business
• Identify
organizational
sponsors /
influential leaders
• Articulate in ways
that engage the
key stakeholders
Identify the
Business
Issues &
Stakeholders
Define the
Solution
Identify Costs
& Make
Informed
Assumptions
Quantify
Impact
• Detail the solution
• Consider
alternatives
• Determine risks,
dependencies, and
assumptions
• Identify both hard
costs and opportunity
cost drivers
• Engage stakeholders
to guide cost
assumptions and
validation
• Provide assumptions
and benchmarks for
costs
• Identify expected
benefits
• Quantify the
benefits
• Identify intangible
benefits (and
quantify if possible)

23. 23
Define the Solution
 Know what you have
 Consider alternatives
 Account for risks
 Account for dependencies

24. 24
Detail the Solution: Considerations
 Where will the solution be used? In what
offices or facilities? In how many countries?
 Does the solution build upon your current
resources and/or infrastructure?
 How quickly does the solution need to be in
place?
 Will we roll it out over time or all at once?
 Should we combine the solution with
another related initiative?
 How should we measure the solution’s
effectiveness?

25. 25
Structuring the Business Case
• Identify issues
impacting the
business
• Identify
organizational
sponsors /
influential leaders
• Articulate in ways
that engage the
key stakeholders
Identify the
Business
Issues &
Stakeholders
Define the
Solution
Identify Costs
& Make
Informed
Assumptions
Quantify
Impact
• Detail the solution
• Consider
alternatives
• Determine risks,
dependencies, and
assumptions
• Identify both hard
costs and opportunity
cost drivers
• Engage stakeholders
to guide cost
assumptions and
validation
• Provide assumptions
and benchmarks for
costs
• Identify expected
benefits
• Quantify the
benefits
• Identify intangible
benefits (and
quantify if possible)

26. 26
Typical Types of Costs
 Technology/Tools costs
 Headcount costs
 Overhead costs
 Training costs
 Testing (Sandbox) costs
 Hiring costs + onboarding
 Allocated time for current staff
 New analytic-specific software
 Upgraded modules of existing
software
 Hardware
 New or revised facilities

27. 27
If Benefits > Costs over a given time period,
you have a compelling business case!
Structuring the Business Case
• Identify issues
impacting the
business
• Identify
organizational
sponsors /
influential leaders
• Articulate in ways
that engage the
key stakeholders
Identify the
Business
Issues &
Stakeholders
Define the
Solution
Identify Costs
& Make
Informed
Assumptions
Quantify
Impact
• Detail the solution
• Consider
alternatives
• Determine risks,
dependencies, and
assumptions
• Identify both hard
costs and opportunity
cost drivers
• Engage stakeholders
to guide cost
assumptions and
validation
• Provide assumptions
and benchmarks for
costs
• Identify expected
benefits
• Quantify the
benefits
• Identify intangible
benefits (and
quantify if possible)

28. 28
 Reduce turnover
 Higher revenues
 Employee productivity
 Revenue per employee
 Cost reduction
 Reduced theft
 Higher customer satisfaction
 Reduced errors
 Better health outcomes
 Reduced safety incidents
Impact on the Business: Examples
*

29. 29
Cost Savings: Hard Costs Cost Savings: Soft Costs
Quantifying the Benefits: An Example
Reducing voluntary attrition at a pharmaceutical client
• Factoring in both hard and soft cost savings
Economic (Soft) Costs
Time to source / identify new
candidate
10 days
Time to recruit new candidate 50 days
Time to train/develop in year 1 20 days
Total
80 days
16 wks (80 days) x $2,000/wk $32,000
Time to reach productivity of lost
employee
20 days
20 days X ($100 rev / ee hour)
$16,000
$48,000
Cost of Voluntary Turnover to Organization
1% Voluntary Turnover Rate
X 30,000 employees
X $76,000 cost per employee
Total Cost $22.8M
This organization stands to
save $22.8 million for every 1 point
decrease in their voluntary turnover rate
Total Cost of Voluntary Turnover Per Lost Employee
Hard Costs $28,000
Economic (Soft) Costs $48,000
Total $76,000 per lost employee
Hard Costs
Recruiting and hiring costs per
employee
$20,000
Training and orientation costs per
employee
$ 8,000
Total hard costs per lost
employee
$28,000

30. 30

31. 3131
Stumbling Blocks

32. 32
Potential Hazards
Not aligned with a
corporate goal
Lack of a champion or
sponsor
Stakeholders not well
informed or supportive
Costs not well-defined or
validated
Benefits not defined in
business terms
Solution not clearly
defined

33. 33
Presenting the Case

34. 34
 Prepare to present your business case
 Socialize and gain support ahead of time
 Be able to your case in 15 minutes, with backup materials available
Are Your Ducks in Order?
State the
issue / problem:
Explain the business
need
Describe the
solution
Risks, dependencies,
assumptions, timeline
Detail the
Costs–
financial
implications
Describe the
Benefits / Impact
Reiterate
briefly: issue, costs,
benefits, impact
1 2 3
4 5

35. 35
Summary & Wrap-up

36. 36
§ Do your homework.
Final Thoughts
§ Don’t go it alone...collaborate with
others to prepare the business case.
§ Create a business case that
reflects your stakeholders’ issues
and realistic benefits.

37. 3737
Thank You!
Questions?
LinkedIn: KatherineJones
Twitter : Katherine_Jones
Blog at www.bersin.com: Technology for Talent
Email: Kathjones@deloitte.com

38. About Deloitte
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