5 Differentiated talent capabilities of Pinnacle Shared Services / Global In-house Centers: Talent strategy, talent acquisition, and talent development, technology, and performance management
3 ways Pinnacle Shared Services / Global In-house Centers Outperform Others: cost, operational, and business impact
The HR function faces challenges on multiple fronts, caused by talent-related issues, the need to improve the employee experience, and the high cost of operations
The idea of creating an analytics roadmap for the enterprise can be daunting, what with the expansion of new data sources, the proliferation of new analytics systems and tools, and the tremendous demand from the business for faster insights.
“The biggest challenge we see with organizations going down the analytics journey is that they start with a technology-led approach,” says Jimit Arora, a partner with Everest Group. “For example, companies feel invested to buy the latest big data tools and visualization technologies, and then determine how to create optimal usage.” Those seeking to create an effective analytics strategy should start with key business objectives, such as top-line growth, cost reduction, or risk management.
Talent strategies of Pinnacle GICs™ produce superior business outcomes and a ‘future ready’ workforce.
Shared services organizations are also known as Global In-house Centers (GICs), and in its recently released report, “Talent Strategy in Global In-house Centers (GICs): Pinnacle Model™ Analysis 2019,” Everest Group assessed the talent strategies of 43 GICs. Five GICs who rated highest in terms of the maturity of their capabilities and the impact delivered were deemed Pinnacle GICs™. In comparison to other GICs, Pinnacle GICs have achieved significant impact in three key areas:
- Cost optimization: Twice as many Pinnacle GICs (as compared to other GICs) have kept their human resources (HR) costs to less than 5 percent of overall GIC costs.
- Operational impact: The talent programs of Pinnacle GICs have improved operational metrics two to three times greater than other GICs.
- Business impact: Pinnacle GICs deliver 1.5 times greater satisfaction from their talent programs than other GICs.
“With unemployment levels reaching generational lows in the US and other regions of the world, enterprises are desperate to know what talent strategies are delivering the most impact,” said Michel Janssen, chief research guru for Everest Group. “Our research on Pinnacle GICs shows that there is a cause-and-effect relationship between advanced capabilities and advanced outcomes. This means there are definitely concrete things enterprises can do to get the talent results they are looking for.”
Specifically, GICs are investing in five key capability areas to drive superior outcomes:
- Talent strategy. Pinnacle GICs have a 2.6 times higher proportion of their programs targeted to high-performing talent as compared to other GICs.
- Talent acquisition. Compared to others, Pinnacle GICs invest considerably more in partnering with educational institutions, hiring from adjacent industries and leveraging social media.
- Talent development. Pinnacle GICs are much more likely that other GICs to focus on developing in-house talent to be future ready. Examples include investing in learning and development tools such as gamification-based learning and employee-to-employee networks.
- Performance management and employee value proposition. Compared to other GICs, Pinnacle GICs are twice as dedicated to adopting structured career paths for most employees and are 1.6 times as likely to have invested in 360-degree appraisal approaches for performance management.
- Relative to other GICs, twice as many Pinnacle GICs have adopted cloud-based HR systems and 2.3 times as many Pinnacle GICs have invested more than 20 percent of their overall HR spend in next-generation technologies such as artificial intelligence (AI) and robotic process automation (RPA).
“One of the important takeaways of our research is that the talent strategies of Pinnacle GICs do not involve any secret tools and techniques that other shared services organizations lack,” said Rohitashwa Aggarwal, practice director of Global Sourcing at Everest Group, “Rather, what Pinnacle GICs have that others do not is a higher commitment to investing in talent strategies and a greater dedication to thorough execution of those strategies.’
More detail on the differentiating talent capabilities of Pinnacle GICs is provided in an Everest Group webinar, “Is Your Shared Services Strategy Future Ready? 5 Differentiating Talent Capabilities.”
About the Pinnacle Model™
Everest Group’s Pinnacle Model™ approach explores what the very best organizations are doing in terms of optimizing costs, improving operations, and delivering strategic impact. The journeys of these best-of-the-best companies provide insights into the key enablers needed to achieve desired outcomes and point to the investments required for the greatest speed to impact. By examining what Pinnacle Enterprises have in common, others can learn how to succeed, whether they desire to make incremental changes or achieve major transformations.
SIG, the premier membership organization for sourcing, procurement and outsourcing executives, today announces a new partnership with Everest Group, a leading consulting and research firm that advises clients on strategic IT, business services and sourcing.
This relationship provides SIG buy-side members with insights and analysis to help them capture greater value from their contracts and provider relationships. SIG members can gain practical knowledge from the insights that Everest Group’s research leaders offer in session presentations at SIG’s Regional SIGnature Events and Global Executive Summits, including proprietary research that identifies and details what the best enterprises are doing to achieve exceptional outcomes through their sourcing strategies.
In March of this year, Everest Group and SIG will kick off joint research based on surveys and interviews to determine what the best-of-the-best companies are doing to achieve innovation in strategic sourcing. They expect to release findings of this Pinnacle Model™ analysis in October 2019. This will the first of several joint research projects the two organizations have planned.
“We are excited to partner with SIG, an organization truly dedicated to offering its members education, information, and insights to advance their sourcing journeys. With our keen focus on strategic sourcing and procurement, we are confident that the research we contribute will support SIG and its members’ objectives,” said Michel Janssen, Chief Research Guru, Everest Group.
Dawn Tiura, President and CEO of SIG, added, “We are delighted to partner with Everest Group to educate the market and provide our members with premier research that will assist them in making better decisions and understanding how to overcome the challenges of this radically evolving industry.”
This partnership also provides SIG members with special pricing on Everest Group’s Strategic Outsourcing and Vendor Management membership. To learn about the full benefits of this partnership and gain access to the research, visit our website.
SIG, https://sig.org/ is a membership organization that provides thought leadership and networking opportunities to executives in sourcing, procurement and outsourcing from Fortune 500 and Global 1000 companies and the advisors who serve them. SIG is widely known as a forum for sharing “next” practices and thought leadership through live networking events, virtual forums and a comprehensive online SIG resource center (SRC), which was developed by and for professionals in sourcing and outsourcing. The organization is unique in that it blends practitioners, service providers and advisory firms in a non-commercial environment. SIG is also the parent organization for SIG University, a one-of-a-kind certification and training program for professionals and executives seeking deep expertise in sourcing and governance for themselves or their teams, as well as Future of Sourcing, which provides unrivaled digital content for the opinion-formers and decision-makers at the heart of the outsourcing space.
Measuring the return on digital transformation investments is a tricky business. Digital change transcends functional and business boundaries, from how a company goes to market, to the ways it operates, to how it interacts with customers or even its own employees. While some individual initiatives may have a definitive and short-term payoff, others may only cost money in the short term in the service of potential long-term business value.
“When determining how well digital transformation investments are performing, it’s best to take a portfolio view and not a project level view,” says Cecilia Edwards, partner with digital transformation consultancy and research firm Everest Group. Just as a mutual fund manager or venture capital firm would look at overall performance to determine how well things are going, digital transformation leaders must take a holistic view of digital change efforts.
Zomato may be preparing for a future with drone deliveries, but for some of its immediate problems, the food-delivery app’s solution is old-world: bicycles.
The firm is introducing mechanical and electric bikes into its last-mile delivery fleet, it said in a press release yesterday (Feb. 11). Those using e-cycles will make short-distance deliveries of 2.5 kilometres on average.
Bicycles are also way cheaper than motorbikes, which means more job seekers may be able to afford joining the Zomato delivery team (Food-delivery startups in India typically expect executives to bring their own vehicles).
Then there is fuel cost. Food delivery startups can save up to 20% by reducing dependence on fuel, said Yugal Joshi, vice-president at Texas-based consulting firm Everest Group.
The global multi-process HR outsourcing market (MPHRO) will continue its 6% to 8% growth over the next three years, exceeding $5 billion in 2020, the Everest Group has predicted. The group’s new report covers the 2017 to 2018 HRO market and analyzes the evolving market situation and buyer adoption trends.