Case Studies Planning for Healthy Profit Margins

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	Planning for Healthy Profit Margins

Planning for Healthy Profit Margins

Technology Category	Analytics & Modeling - Predictive Analytics Functional Applications - Enterprise Resource Planning Systems (ERP)
Applicable Industries	Healthcare & Hospitals Professional Service
Applicable Functions	Business Operation Human Resources
Use Cases	Predictive Replenishment Remote Collaboration
Services	Data Science Services System Integration
Challenge	To remain competitive in providing research services, this global organization must attract and retain a workforce of qualified consulting and technical staff who work on multiyear projects. With the workforce as the largest expense at the company, its HRIT team plays a key role in helping the business better understand the interplay between workforce factors, productivity, and cost—and, therefore, in improving profit margins as it grows revenue. For its services work to be as profitable as possible, this organization needs to quickly understand in detail the cost of the people required for a contract before preparing a bid. Furthermore, to deliver quality service at the right cost, client projects must be staffed with the optimal mix of junior and senior people in the right locations. However, because the company used a number of workforce systems and analysis tools, there was significant manual effort involved in reconciling costs and headcount, as well as inconsistency in the insights across organizational units. Key stakeholders could not gain a clear picture of how costs by region and role impacted profitability. With data in multiple systems, it was also difficult to quickly provide clients with key information—such as performance rating averages broken down by job level— when responding to Requests for Information (RFIs) and Requests for Proposals (RFPs). HRIT was struggling to produce basic metrics and couldn’t meet the demand for strategic insights at the speed required by the business. Read More
About Customer	This global professional services organization employs over 55,000 people and serves a wide range of healthcare clients. The company needed to implement a workforce plan for its multi-year projects and provide clients with services at optimal costs and profit margins. However, the organization faced challenges due to having multiple separate workforce systems and analysis tools, which made it difficult to understand the total cost of its workforce. Additionally, the company struggled to connect these costs to the workforce plans created by its finance team. To address these issues, the HR information technology (HRIT) team decided to combine workforce analytics and workforce planning within a single, integrated solution, selecting Visier to help pave the way for profit margin growth. Read More
Solution	To address its workforce data challenges in the most practical and cost-effective way, the company’s HRIT team chose to implement Visier’s people analytics and workforce planning solution. The team’s choice of a unified, pre-built platform allows them to consolidate the disparate workforce data and bring workforce analytics and planning under a single umbrella. Visier people analytics included all of the Total Cost of Workforce (TCOW) capabilities that the organization required but could not previously produce. With the unified data from its HR and financial systems, the company could gain a clear picture of TCOW and accurately model how salary increases impact profitability. HR, finance, and other stakeholders can now easily keep track of how headcount and cost targets vary from plan over the life of their multi-year, multi-million dollar projects. With insight into cost and value across the organization, the company is quickly responding to RFPs, answering key questions that clients ask before proceeding with a contract. When a business leader signs a new deal that requires a certain number of people at a fixed cost, it uses Visier to explore multiple staffing options of senior, customer-facing, and junior staff, before any hiring occurs. By identifying how salary costs will rise as employees receive pay increases over projects that span multiple years, they can assign the right mix of staff to improve margins. In addition to making it easy to calculate, analyze, and forecast the total cost of its workforce, Visier provides the organization with insights into retention and recruiting that are vital to helping the company maintain a workforce of qualified staff. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Predictive Analytics

Functional Applications - Enterprise Resource Planning Systems (ERP)

Applicable Industries

Healthcare & Hospitals

Professional Service

Applicable Functions

Business Operation

Human Resources

Use Cases

Predictive Replenishment

Remote Collaboration

Services

Data Science Services

System Integration

Challenge

To remain competitive in providing research services, this global organization must attract and retain a workforce of qualified consulting and technical staff who work on multiyear projects. With the workforce as the largest expense at the company, its HRIT team plays a key role in helping the business better understand the interplay between workforce factors, productivity, and cost—and, therefore, in improving profit margins as it grows revenue. For its services work to be as profitable as possible, this organization needs to quickly understand in detail the cost of the people required for a contract before preparing a bid. Furthermore, to deliver quality service at the right cost, client projects must be staffed with the optimal mix of junior and senior people in the right locations. However, because the company used a number of workforce systems and analysis tools, there was significant manual effort involved in reconciling costs and headcount, as well as inconsistency in the insights across organizational units. Key stakeholders could not gain a clear picture of how costs by region and role impacted profitability. With data in multiple systems, it was also difficult to quickly provide clients with key information—such as performance rating averages broken down by job level— when responding to Requests for Information (RFIs) and Requests for Proposals (RFPs). HRIT was struggling to produce basic metrics and couldn’t meet the demand for strategic insights at the speed required by the business.

About Customer

This global professional services organization employs over 55,000 people and serves a wide range of healthcare clients. The company needed to implement a workforce plan for its multi-year projects and provide clients with services at optimal costs and profit margins. However, the organization faced challenges due to having multiple separate workforce systems and analysis tools, which made it difficult to understand the total cost of its workforce. Additionally, the company struggled to connect these costs to the workforce plans created by its finance team. To address these issues, the HR information technology (HRIT) team decided to combine workforce analytics and workforce planning within a single, integrated solution, selecting Visier to help pave the way for profit margin growth.

Solution

To address its workforce data challenges in the most practical and cost-effective way, the company’s HRIT team chose to implement Visier’s people analytics and workforce planning solution. The team’s choice of a unified, pre-built platform allows them to consolidate the disparate workforce data and bring workforce analytics and planning under a single umbrella. Visier people analytics included all of the Total Cost of Workforce (TCOW) capabilities that the organization required but could not previously produce. With the unified data from its HR and financial systems, the company could gain a clear picture of TCOW and accurately model how salary increases impact profitability. HR, finance, and other stakeholders can now easily keep track of how headcount and cost targets vary from plan over the life of their multi-year, multi-million dollar projects. With insight into cost and value across the organization, the company is quickly responding to RFPs, answering key questions that clients ask before proceeding with a contract. When a business leader signs a new deal that requires a certain number of people at a fixed cost, it uses Visier to explore multiple staffing options of senior, customer-facing, and junior staff, before any hiring occurs. By identifying how salary costs will rise as employees receive pay increases over projects that span multiple years, they can assign the right mix of staff to improve margins. In addition to making it easy to calculate, analyze, and forecast the total cost of its workforce, Visier provides the organization with insights into retention and recruiting that are vital to helping the company maintain a workforce of qualified staff.

Impact #1	The company achieved real-time answers when responding to Requests for Information (RFIs) and Requests for Proposals (RFPs), significantly improving response times.
Impact #2	The organization gained a clear picture of total workforce costs, enabling better decision-making and strategic planning.
Impact #3	Visier's solution allowed the company to explore multiple staffing options before hiring, ensuring the optimal mix of junior and senior staff for projects.

Impact #1

The company achieved real-time answers when responding to Requests for Information (RFIs) and Requests for Proposals (RFPs), significantly improving response times.

Impact #2

The organization gained a clear picture of total workforce costs, enabling better decision-making and strategic planning.

Impact #3

Visier's solution allowed the company to explore multiple staffing options before hiring, ensuring the optimal mix of junior and senior staff for projects.

Benefit #1	$1 to $3 million in profit margin improvements per contract.
Benefit #2	$3 million saved by the pilot group using the workforce plan.
Benefit #3	The time needed to perform workforce analysis for a typical RFP was cut in half.

Benefit #1

$1 to $3 million in profit margin improvements per contract.

Benefit #2

$3 million saved by the pilot group using the workforce plan.

Benefit #3

The time needed to perform workforce analysis for a typical RFP was cut in half.

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Overview

Planning for Healthy Profit Margins

Operational Impact

Quantitative Benefit