HR-IS Portfolio Cleanup
The Challenge
Most organisations are spending too much on their HR Information System portfolio. Surveys suggest that between 10% and 25% of all HR-IS investment is wasted. At iProCon HCM our research has shown that a rigorous portfolio reassessment can cut 20% or more in the short term, and/or deliver even higher returns by focusing the spend on areas with a clear line of sight to business benefits and cost savings.
This gives those directly responsible for HR-IS portfolios real food for thought: If you are spending too much, the likelihood is that there will be external providers who can deliver the same service for less. If your HR-IS spend is not realising tangible benefits for the business (in bottom line or strategic value terms), then you should cut it or refocus it, before you are given more drastic options by the executive board.
One of the real challenges for those looking at HR-IS spend is that scare tactics are often used to defend operational expenditure – “If you cut the budget people will not get paid/we will be breaking the law/etc”. Making matters more difficult is that there currently is no integrated approach for making and evaluating investment decisions strategically from a holistic perspective.
iProCon HCM addresses these problems through a three step process that helps organisations make the most of their HR-IS spend:
- Understand and categorise the nature of each budget item and its link to value creation or efficiency gain
- Cut any spending that is not delivering clear benefits
- Find opportunities to reallocate these funds to achieve better returns and follow through with a rigorous benefits realisation process
Deliverables
iProCon HCM offer three tiers of service associated with the HR-IS Portfolio Cleanup:
Bronze
Aimed at organisations who have the resources and capabilities required to conduct an internal portfolio review, the Bronze product provides the frameworks, tools and methods needed to guide portfolio management decisions in the form of a one day workshop. At the end of the workshop attendees will understand the various frameworks and methodologies and how to use them, and will have a high-level plan that ensures the portfolio review is conducted with maximum effectiveness in the minimum possible time.
Silver
The Silver product provides a comprehensive, tailored analysis of the HR-IS portfolio, and delivers the following:
- A detailed assessment of stakeholder priorities
- An analysis of the existing portfolio and the benefits it will/will not deliver
- Identification of where immediate savings can be made without compromising service and legal requirements
- Prioritised list of cases where there is a clear investment case to reallocate some spend to yield greater savings and/or benefits
The summation of these deliverables is a prioritised (in terms of both savings/benefits and stakeholder priorities) roadmap that details exactly where cuts and investments should be made in order to maximise value to the business.
Gold
The Gold product provides a comprehensive, tailored analysis of the HR-IS portfolio as per the Silver package, and includes change management to help with implementation and benefits realisation and tracking.
Costs
Bronze: £4k plus VAT plus expenses per package - This is a fixed price and Includes pre-work, workshop facilitation as well as production and delivery of outputs*
Silver: £10K to £35K plus VAT plus expenses per package (range provided as is dependent on scope of activity) – Final price determined is a fixed price and Includes pre-work, analysis, on-site facilitation as well as production and delivery of outputs*
Gold: Price is dependent on planned duration and size of portfolio. Typically we will aim to offer a fixed price contract to give a clear view of the spend required to realise HR-IS savings.
* Includes formal presentation by iProCon HCM to key Project stakeholders
Please note that quoted prices are indicative and subject to final agreement depending upon the size of the assignment.
