MEMBER TAKEOVER
Analyse A great way to do this is to focus on the area you feel will have the biggest impact. On a small chart it’s quite easy to see this,
but when you’re dealing with a lot of data, this can be challenging. A way to approach this is the use of a Pareto Chart (Rule) also known as the
80/20 rule. A method of looking at this is to re-order the data into the number of calls, then accumulate this:
Reason for call
Number of calls
Accumulative numbers
Accumulative percentage
Overtime incorrect
42
42
42.00%
HMRC query with my tax code
35
77
77.00%
Change of circumstances
15
92
92.00%
Pro-rata incorrect
7
99
99.00%
1
100
GDPR query
100.00%
With a Pareto Chart, you measure the number of instances (blue), then the accumulative effect (grey). When the grey bar reaches 80% (*) then theoretically this will have the biggest impact on your change. For example, if we fix ‘overtime incorrect’ and ‘HMRC query with my tax code’, this will have the maximum impact. Once you have this information (note the change from data to information), you can now work on further analysis. In the example above, we know ‘overtime incorrect’ and ‘HMRC query with my tax code' caused the highest number of calls to the payroll team. There are several methods and tools that can be used to do this. One very simple method is the ‘five whys’, with the goal to get to the root cause of the problem. Note that this tool is very linear and may not suit every investigation.
Calls to payroll team in one month
Although, an example could be:
Overtime incorrect: Why 1? – my overtime was wrong
Why 2? – because the payroll team based overtime on the spreadsheet provided by the line manager Why 3? – because the manager created the file based on what was entered by the employee Why 4? – because the employee entered the value correctly on the input spreadsheet Why 5? – because the employee wasn’t aware there was a cut-off time.
Therefore, the final root cause is because the employee entered overtime past the payroll cut-off. You don’t necessarily stick with five though – it could go above or below this number. Note the ‘five whys’ is a very linear problem-solving tool. There are others l reviewing points with those involved in the project l feedback on the process, and communication around the benefits. So, going back to the example, we could then review calls to the payroll team. Have they reduced for overtime queries, and has this had an impact
which can be used, such as a technique called Ishikawa diagram or fishbone. Here, you can take problems in a less linear way and focus on other areas, such as people, process, technology and environment, thereby looking at the root cause from a number of areas. on the number of queries raised with the payroll team? If so, this will allow the team more time to spend on other queries or more strategic work. As with any process improvement process, this should be regarded as continual, so once one issue is resolved, you can move onto the next one. n
Root cause
Ishikawa diagram
Control The final stage is key in this process. This will encompass activities such as: l creation of a future state l the rollout of a new process, including any standard operating procedures l agreed data analytics to ensure the rollout is successful
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| Professional in Payroll, Pensions and Reward |
Issue 86 | December 2022 – January 2023
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