Workforce Optimization

Today, Aug 2005 by Demos, Darryl

Delivering Productivity Improvements Beyond Imaging and Workflow

Demos Solutions applies the Art and Science of Workforce Optimization'" to improve the productivity of leading financial services companies in North America, Australia, Europe and Asia through its unique combination of "hands-on" consulting and workforce management technologies. Thirty-three percent of the top 100 North American bank branches are covered by Demos Solutions' leading-edge resource planning and scheduling tool, StaffSmaif. For more information about Demos Solutions, which is headquartered in Norwell, Mass., please visit www.demossolutions.com.

Workforce optimization - getting the right people to do the right work at the right time - is an untapped source of productivity improvement in even the most efficient operations departments. The most successful avenue to realize and sustain an optimized workforce, and the productivity improvements it provides, is to apply the "Art & Science" methodology. The "Science" component of this methodology uses workforce management technologies to identify proper capacity and establish a statistically valid productivity level on which the business line should run; the "Art" component provides the "hands on" tools, skills and training to achieve and sustain optimum productivity levels in practice.

The Science; Identifying the "Right" Capacity Levels

The first step to optimizing the workforce lies in applying the right "Science" to quantify proper capacity levels. The tools and techniques needs to be designed specifically for white collar business operations for capacity. Traditional metrics and benchmarks typically only tell part of the story. Too many organizations have best in class benchmarks and still run at 15%-20% excess staffing. Software tools and techniques designed specifically for workforce optimization analyze all data points that impact productivity, including the importance of work-to-time relationships which are often missed in traditional benchmarks and metrics.

The Art of Turning Numbers into Results

Managers must now see how to reconcile the theoretical levels with the practical application of running an operations department. Translating the potential productivity increases into actual benefits is the "Art" of workforce optimization. The initial phase of implementation is best achieved through hands-on piloting.

Hands-on pilots confirm the accuracy of the capacity data, and demonstrate in a live environment that simple changes in staff levels, schedules and processes can yield dramatic results. Armed with proof of success, operations managers can begin widespread implementation and adoption of these measures and begin reaping the greatest productivity improvements.

Sustainment of Benefits Requires both Art and Science

The change management required to achieve buy-in on all levels, from upper management to line staff is sustained through the combination of next generation workforce optimization software and operations managers armed with new techniques and proof of success to serve as messengers throughout the organization.

The "Art and Science" Model Yields Better Results

Demos Solutions used its "Art and Science of Workforce Optimization" methodology to improve productivity in the operations areas at Union Planters Bank (Regions Financial Corporation). The same Demos Solutions tools and processes are now used in all Day 1 operations.

Results based upon experience through 2004:

* Excess capacity of 15% to 20% was identified;

* Pilot alone generated an annualized benefit of $980K,

* Savings over time has been in excess of $2MM;

* Results delivered in 16 weeks with payback achieved within 5 months,

* Management has integrated staffing capacity management and productivity indicators in running the operation.

Results based on 1Q comparison to 4Q 2004 comparison;

* 6% reduction in headcount;

* 11% increase in overall volume activity,

* 38% increase on operating margin;

Darryl Demos is the Founder and CEO of Demos Solutions. He can be reached at 781-681-1400 or via e-mail at ddemos@demossolutions.com.