COST & PERFORMANCE TRANSPARENCY FOR HR SHARED SERVICES ORGANIZATIONS

In the last few years, there has been a clear trend towards the "industrialization” of human resource management. An important part of this trend is the automation, consolidation and integration of administrative tasks and routine processes in a Shared Services center.

At the same time the service quality and competitiveness of HR services has to be improved. To ensure this, the service portfolio must be strictly adapted to the requirements of the customers. In addition, the value contribution of HR services in the business process must be transparent for company management and other departments.

These are the challenges for HR management. Even after the introduction of the new delivery model “Shared Service Center”, many HR organizations are not able to create a service catalog adapted to the needs of the customer, with homogenous process standards, uniform criteria of quality and prices conforming to the market. Achieving transparency of costs and performance, however, is the necessary basis for the development of a competitive HR service portfolio focussed on the added value and effective support of long-term human resource strategies in the company.

Transparency of Costs and Performance for HR Shared Services with CATENIC Anafee™

CATENIC specializes in business critical requirements of IT and Shared Services organizations. Anafee™ is the most powerful solution available today for efficient controlling of costs and value added in the area of IT services on the basis of a “classic” costing methodology.

Comprehensive Analysis of Cost Drivers

• Determination of all actually provided services in the area of HR through a comprehensive analysis of financial data and cost types
• Evaluation of turnover, costs and consumption rates of IT services based on functional, technical and organizational criteria
• Identification of inefficient processes through the reporting of all costs and services from the perspective of the business process
• Drawing up of flexible target-performance comparisons for freely definable periods on the basis of “Info Cubes”

Transparent Calculation – Usage-Based Accounting

• Definition of a fully standardized HR services catalog based on individual business requirements and processes
• Automated calculation of service costs taking into account both direct costs and overhead (cost unit accounting), calculation and reporting of internal transfer prices
• Charging of all process-related service costs on the basis of the costs-by-cause principle by using Anafee together with the ERP system (e.g. SAP).

Accurate Planning & Reporting

• Create ad hoc-reports, such as transfer price analyses, cost types/cost center analyses, time series or variance analyses, etc. with a fully web-based reporting tool.
• Flexibly generate reports and charts such as service accounts, management overviews and cost trends and automatically distribute them.
• Plan service quantities and forecast costs for future service demands.
• Create and manage multiple planning scenarios to simulate future business developments or for benchmarking purposes.

Implementing CATENIC Anafee™ - start easily, extend flexibly

Anafee™ is not only a flexible and easy-to-use standard software, but also a comprehensive integrated solution from a single source. In addition to the individual configuration and integration of the software into your system environment, CATENIC offers comprehensive consulting services and numerous “best practice templates” for the swift implementation of transparent controlling structures in your company.

The financial data from the ERP system (usually SAP) are imported as the basis for the calculation into Anafee and after the calculation, transmitted back to the leading accounting system in a suitable format. The necessary consumption and resource information can be consolidated from virtually any type of structured data source. Furthermore, a certified interface to the SAP NetWeaver™ platform enables a transaction-oriented accounting of SAP applications. The open architecture of Anafee, pre-defined designs for standardized service catalogues as well as the know-how of CATENIC are the key for extremely quick project implementations and enable you to start using the solution almost immediately.

After only a few days of “on-the-job” training, key users are able to operate, administrate and improve the system on their own. In general, Anafee requires less than an hour per month for internal system maintenance.

A Greater Scope of Possibilities because of Transparent HR Controlling

Active Control of Services

All IT services are aligned with the requirements of your internal and external customers, transparently calculated and charged according to actual use. The tight tracking of the consumption rates and their costs provides a reliable basis for planning of future service investments and enables transparent cost management of all transactional and non-transactional HR services.

Cost-Effective Service Performance

You provide precise, consistent and relevant information for decisionmakers in real time. You report in a condensed and comprehensible form in the “jargon” of your customers. Through the dialog with the company management and the departments, inefficient processes can be identified and individual service level agreements concluded. You improve services sustainably and raise user awareness of the cost of HR services through the strong focus on the customer.

Higher Productivity

The process costs for planning, calculation, accounting and reporting in the Finance Shared Services Center are significantly reduced. Expensive manual efforts for pulling together financial and consumption data are avoided. Service capacities can be adapted flexibly to changing consumption rates. You expand your scope for active, focussed control of your service portfolio and you increase the effectiveness of your entire service organization.

Strategic Integration

Demonstrate the value proposition of your HR Shared Services organization for every single business process as well as with regard to the overall financial success of the company. You show your competitive strength in comparison to external service providers and create a flexible strategic “sourcing option” for future IT investment decisions.

Standardized Service Processes

You support the achievement of strategic company objectives through effective governance and corresponding metrics, such as process performance and financial performance. Among other things, this enables you to establish and manage HR Shared Services on an international level with a high degree of standardized services.

Legal Compliance

Your entire service organization is aligned to comply with the requirements of international rules for Human Resources (e.g. GoBs, KonTraG, SOX) and the German guidelines for long-term archiving and auditability (GDPdU). Anafee also supports the legal documentation requirements regarding corporate transfer pricing to group divisions at home and abroad (e.g. the German AO §§90(3), 162(3,4). A stringent authorization and role concept of the user administration in combination with a complete and detailed log ensures sustainable auditability.