Saturday, August 18, 2012

What Payroll strategy/operation model good for your company...

I was preparing for a seminar in Singapore due on last May 2011.............but due to several reasons i couldn't make it.
The thoughts i gathered for the seminar with respect to payroll delivery model were something i wanted to share.
The specific aspect how a companies financial condition impact its payroll model............to outsource or in source .... remote processing or in country processing......... high touch or high tech or both........ERP or best of the bread ........ country focus or region focus or global focus......so on.
I always propagated model of semiglobalisation (slide 4) by Pankaj Gemhawat to analyse the same.Bulleted List
The delivery model is a mix of :
1. Aggregation
2. Arbitrage
3. Adaptability
But question is what drives this mix.
I looked at financial details available on public domain for some companies to chk if that indicate towards difference in their model. Below is some details.
It was very evident that...... revenue per employee and profit margin per employee are big drivers . Along with companies operation profit margin. Though these ratios are industry driven but it is rather the financial position than industry which drove the companies payroll strategy.

Accurate Payroll

Accurate payroll 
is not about 
absence of errors
.....but 
......presence of 
scalable & predictable process, 
robust technology and 
culture of continues improvement.
-Harish

Swadeshi Movement, SDP, Lean, CI etc

I was reading through the book "Gandhi CEO".....

With Vision of Freedom for India Gandhi started Swadeshi Movement as a execution strategy. Calling the Indians to use only the cloths made in India with Indian material was at core of this  strategy . The execution of this strategy dint stop at this high level calling. He clearly understood......though our mills were having capability to weave cloths for Indian demand........but didn't had capacity to spin the yarn . Though he got suggestions about accepting imported yarn.....but he rejected as it didn't align with neither vision nor strategy.
So was the call for Yarn prepared manually using Chraka.

Vision=Indian Freedom
Strategy= Swadeshi movement
Execution= Hand woven yarn-Khadi

In Lean we use SDP or Hoshin Kanri ..... to do the exact above and create  X matrix.

It is such a learning to see ..........if we are search of truth or true north......... we do end up in same mechanism of execution.