March 2012
Creating a Multi-Functional Shared Services Model to Enable Rapid Response
to Ever-Changing Business Needs
An Overview of Kelly’s
Operations Shared Services Center
Agenda
• Kelly Services Overview
• Kelly’s Journey – Development of a Multi-Functional Shared Services Model
– The Case for Change
– Shared Services’ Value Drivers
– The New Operating Model
– Implementation Approach
• OSSC Business Model
– Mission
– People
– Process/Components
– Technology
• Value to Business – Case Studies/Success Stories
• Challenges/Lessons Learned
• Questions
Proprietary and Confidential to Kelly Services, Inc. • 2
Kelly Services Overview
• Founder of the temporary staffing industry
– Strong financial position in the industry
• $5.6B in Revenue (2011)
– Company-owned and -operated offices worldwide with fully networked operating system
• Kelly offers a comprehensive array of outsourcing and consulting services as well as world class staffing on a temporary, temporary-to-hire and direct-hire basis
• Industry-leading quality management system – Kelly Quality Management System (KQMS)
– Compliance of all Kelly locations
– Best-in-class programs
– Fully integrated total quality management system
Kelly Services, Inc.
530,000 Temps | 7,900 FTEs
AMERICAS EMEA APAC
40+ Countries | 1,500 Branches
Commercial, Professional, Technical
OUTSOURCING & CONSULTING GROUP
• Contingent Workforce Outsourcing • HR Consulting • Business Process Outsourcing (BPO) • Recruitment Process Outsourcing (RPO) • Independent Contractor Services • Executive Outplacement
TECHNOLOGY PARTNERS
Fieldglass | Peoplefluent | Provade| IQN
Kelly’s Journey Development of a Multi-Functional
Shared Service Center
The Case for Change at Kelly
•Less time to focus on core, revenue-generating activities •“Filling and billing” •Candidate and customer care •Compliance challenges
Increased complexity • Range of tasks required • Customer servicing requirements • Number and variety of technologies/systems • Regulatory requirements (e.g., work eligibility verification) • Processes (e.g., background screening)
Performance Gap
3.5 FTEs
1.7 FTEs
The Trend (Past 10-15 years) •Reduced Branch Headcount • Increased Complexity
Shared Service Value Drivers
Proprietary and Confidential to Kelly Services, Inc. • 6
• Key Kelly Value Drivers – Facilitate business growth – Improve customer/candidate experience – Reduce costs – Improved compliance to customer and regulatory
requirements
• Additional Benefits
– Standardize roles, processes, policies – Decreased organizational complexity/eliminate redundancy – Transforming/re-engineering processes
Sourcing Center
Contact Center
The Vision – A New Operating Model
Proprietary and Confidential to Kelly Services, Inc. • 7
Transaction Center
Staffing/OCG Operations/Service Delivery
Servicing Employees, Candidates, Customers, and Suppliers
High volume, high transaction, administrative tasks from operating divisions Op
erat
ion
s Sh
ared
Se
rvic
es C
ente
r
• Division of tasks between operating tiers • Focus/concentration on tasks leading to:
– Improved quality – Flexibility – Efficiencies – Economies of scale – Compliance
Product CoEs
Strategy/Branding/ Business Development
• In 2008, a project team prioritized a list of branch tasks to centralize
– Criteria:
• Frequency/Volume/Amount of time spent by Branch
• Financial Impact – Cost Savings/Revenue Generation
• Impact on Candidate/Customer Experience
• Impact on Compliance
• A bit of a haphazard implementation approach from 2009 - 2011
– OCG and Staffing initially worked independently building centralized
teams to execute prioritized tasks from Headquarters
– Simultaneously, “Lift and Shifts” of existing functions considered “red-
headed step-children” of other departments, i.e., Switchboard, Global
Mobility, eCenter
– Reactive builds of programs in response to new government
regulations and compliance gaps
• An intentional roadmap developed in December 2011
Proprietary and Confidential to Kelly Services, Inc. • 8
Implementation Approach
Evolution of Kelly’s Operations Shared Services Center
Proprietary and Confidential to Kelly Services, Inc. • 9
2008 2009 2010 2011 2012 • 4Q - First Level Canada Payroll Support Program
•First Level Payroll Support – US •Billing of Screenings •Kelly Switchboard •Order Entry
•Candidate Document Processing •First Level Technical Support (IT Help Desk) •Adverse Action Letters •Third Party Order Transactions •Data Integrity (Audit Function)
•Global Mobility Services •Screening Requests
•Centralized Sourcing •Customer Requirements Documentation Support •Healthcare Credentialing • NY Wage Theft Notification •CA Screening Notification •Screening Requests •PPO “Admin” Tasks •CWO “Admin” Tasks
READY, SET , GO!!!
Fragmented management of centralized
services
1Q - OSSC “officially” established as an entity
OSSC business model evolves and matures
Proven Model
Adding Value to Business
OSSC delivers
almost $1 million in savings to Business
OSSC Business Model People. Process. Technology.
OSSC Mission Statement
Proprietary and Confidential to Kelly Services, Inc. • 11
OSSC Business Model – People
• Flexible Staffing Model – 40% Full-Time Employees
– 60% Temporary Employees; many part-time
• Floater Pool – Skilled group of specialists trained
on multiple programs
• Competency Profile – Customer Service Experience/Orientation
– Continuous Improvement Focus/Mindset
– Technology-Adept
– Quality/Metrics Driven
– Flexibility and Adaptability
• Business Owner Role – Represent the (internal) “customer”
for OSSC program(s)
Proprietary and Confidential to Kelly Services, Inc. • 12
Operations Shared Services Center (OSSC) - Functional Structure
OSSC Vendor Management Office (for Operations Supply Chain Providers)
Shared Services Transaction Center “Captive” SSC executing Kelly-specific transactional processes for Kelly Divisions
Shared Services Knowledge Center “Captive” SSC executing Kelly-specific knowledge-based processes for Kelly Divisions
Shared Services Contact Center Outsourced Contact Center Solution – Services provided by KellyConnect
Employee Service Center
Field Service Center IT Service Desk Supplier Service Center
HQ Switchboard
Global Mobility Services
Proprietary and Confidential to Kelly Services, Inc. • 13
• FTE International Assignment/Travel • KTE International Travel • Global Mobility Consulting Services
Shared Services Sourcing Center “Captive” SSC executing Kelly-specific sourcing services for Kelly Divisions
Sourcing Services
• Billing of Screenings • Adverse Action Letters • Data Integrity • NY Wage Theft Program
• Candidate Document Processing • I-9 Processing • Screening Requests • PPO Admin • CWO Admin
• Third Party Order Transactions • Order Entry/Compliance • Healthcare Credentialing • ESPM/CAD Maintenance
OSSC Business Model – Process/Components
• Clearly Defined Scope/Transactions
• Transaction-Based Pricing
• Detailed Statements of Work for each program
• Forecasting Process/Tool
• Weekly/Monthly Operations Review Meetings with Business Owners
• Visibility into Performance via Monthly Dashboards and Quarterly Meetings /Business Reviews
• Voice of the Customer Engagement Methodology
• Proactive Focus on Continuous Improvement/Innovation
Proprietary and Confidential to Kelly Services, Inc. • 14
Sample Performance Dashboard
Proprietary and Confidential to Kelly Services, Inc. • 15 The goal for Order Entry is 100%, which we've been hitting each month of the year (this is represented by the
black line in the chart above).
31 34
29 26
29 27 22
28
35 31
0
2000
4000
6000
8000
0
10
20
30
40
Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11
Tran
sact
ion
Vo
lum
e
OP
Tim
e (
min
ute
s)
Order Processing Time
OP Transaction Volume Order Processing Time Goal
7.73 9.09 9.45 12.04 6.30 3.72 2.21
5.67 5.91 3.93
0
500
1000
1500
2000
0
10
20
30
40
50
60
Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11
PO
Tim
e (
ho
urs
)
PO Changes Processing Time
PO Changes Transaction Vol PO Changes Proc Time Goal
1.70 1.17
1.53
0.79
1.83 2.07 1.77
2.30 2.54
1.61
0
500
1000
1500
2000
0.0
1.0
2.0
3.0
4.0
5.0
Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11Kfi
rst
Tim
e (
ho
urs
)
Kfirst Processing Time
Kfirst Transaction Volume Kfirst Process Time Goal
29 29 25
20 24
21 17
21
28 26
0
1000
2000
3000
4000
0
10
20
30
40
Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11
SP T
ime
(m
inu
tes)
Submittal Processing Time
Submittal Transaction Volume Submittal Processing Time Goal
46 62 68
41 23 20 21
59
81
55
0
50
100
150
Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11
IP T
ime
(m
inu
tes)
Interview Processing Time
Interview Processing Time Goal
0
2000
4000
6000
8000
50%60%70%80%90%
100%110%120%
Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11
Ord
er
Entr
y %
Order Entry
Order Entry - Transaction Volume Order Entry %
OSSC Business Model – Technology
• Salesforce
– Activity Tracking Tool
– Automatically generates performance dashboards and charge-backs Enables escalation to “n”-level support groups
– Enables OSSC to provide critical data analytics to Business to drive process improvements
• Emerald Software
– Candidate document processing tool
• Bullhorn (Applicant Tracking System)
• Kelly StaffNet (Front Office System)
• SharePoint
• KellyWeb (Company Intranet)
• HDI Survey Tool (Contact Center Survey Tool)
• Docusign (Electronic Signature Tool)
Proprietary and Confidential to Kelly Services, Inc. • 16
OSSC Brings Technology to the Table AND Adapts to/Uses Our Customer’s Technology
OSSC Value to Business – Case Studies/Success Stories
• Business Objective: Increased Profitability – Situation: Payroll calls from employees ranked highest on Branch Task List -
significant time NOT being spent on revenue-generating activities
– Solution: Developed Employee Service Center to provide focused first-level payroll support to employees and remove burden from branch
– Results: Significant branch time savings – 18 FTE across field organization
– BONUS! Improved employee experience - Payroll support previously ranked lowest on sat survey – ranked highest post deployment
• Business Objective: Improved Compliance – Situation: Customer audit revealed gaps in compliance to screening
requirements; immediate fix required to maintain customer relationship
– Solution: Centralized initiation of background screens into OSSC; Program built and launched in 3 weeks
– Results: 100% compliance to screening requirements
– BONUS! Significant branch time savings (i.e., enable revenue
growth via increased focus on revenue-generating activities)
Proprietary and Confidential to Kelly Services, Inc. • 17
Challenges/Lessons Learned
Proprietary and Confidential to Kelly Services, Inc. • 18
– Do not underestimate the importance of change management practices
– Don’t “blur” the lines – be clear on roles and responsibilities between the Business and the SSC – maintain the integrity of the model
• Challenges
– Lack of awareness of the Business about Shared Services and
the OSSC operating model
– Fragmented approach to Program Management by Business
– Business typically does not have visibility into current state
costs/performance before moving a function into OSSC
• Lessons Learned – Strong executive sponsorship and governance is critical to
advancing a shared services strategy
Questions?