A new business model
A "Service Center Personnel" emerges from turning a pay-as-you-go financed personnel department into an organisational unit, which self-finances fully, or at least to a large extent, through provision and marketing of personnel services for money. Primarily, purchasers are in-house customers or, as the case may be, also external customers.
Implementing the guiding principle:
Michael W. Mercer: „Turning your Human Resources Department into a Profit Center", (New York 1989)
The guiding principle is simple, but the implementation is rather difficult.
Model versions:
- the "Value Added model", characterised by mixed financing of the traditional personnel department; (reduced) pay-as-you-go financing and self-financing through defined personnel services, e.g. advanced training
- the "Shared Service Center model", characterised by bundling previously locally performed personnel duties in a group of companies and by conferring these tasks upon a central organisational unit, the Shared Service Center Personnel; a fee is charged for claiming these benefits
- the "Spin-off model", here, personnel duties are outsourced and provided by an outsourcing partner who charges fees for calling upon this service
- the "Service Center Personnel" in the literal sense (so far only implemented in a few cases)
Consulting focuses:
ISPA consult supports innovative companies on their way to becoming a Service Center Personnel (SCP) with process and/or content consulting:
- SCP market research
- SCP product design and product planning (service provision)
- SCP product marketing
- SCP controlling, e.g. with a customised HR Balanced Scorecard
Instruments/Methods:
- customer survey and satisfaction measurement
- service quality measurement (SERVQUAL)
- comparisons self-perception - interpersonal perception
- Service Level Agreements
- method-based pricing
- benefit-cost analyses etc.
Reference projects:
- introduction of internal customer surveys for personnel service providers in industry and service companies (including follow-up service)
- introduction of the internal customer survey for the central purchase department of an international automotive supplier
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