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Stanford UniversityHuman Resources Centers of Expertise

Kickoff Meeting

TBD

Agenda

The objective of this document is to:

Outline our preliminary understanding of engagement objectives

Provide an overview of Huron’s approach

Provide an overview of our work plan

Introduce the Huron team members

Discuss critical issues and dependencies

– Key stakeholders and constituents

– Communications (pre and post project)

– Availability of data and other information

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Huron is pleased to work with Stanford University to develop strategies for creating HR Centers of Expertise to improve Human Resources related services and support.

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Objectives:

To develop the concept and strategy for three HR Centers of Expertise and achieve operational excellence through robust and centralized services and support.

Transaction and Records Management

Employee Relations

Recruiting and Staffing Support

Huron will leverage the HR Task Force report, along with the implementation challenges identified, to develop implementation strategies.

Stanford HR Task Force Recommendations

1. Create “Centers of Expertise” to handle core HR activities (Transaction and Records Management, Employee Relations, Recruiting and Staffing Support, and Job Evaluation and Classification),

2. Shift the HR manager role to strategic partner,3. Improve the quality of supervisors and flattening the organization,4. Develop a strategy to improve communications from HR to non-HR staff,5. Simplify and facilitate the employee management process, and 6. Create more focus on employee development and succession planning.

Engagement ObjectiveHuron will further assess Stanford’s current approach in delivering HR services and develop recommendations to create HR Centers of Expertise.

Note: Job Evaluation and Classification to be completed by Towers Watson, as part of a larger compensation project, and will be integrated with the three Centers of Expertise, under the direction of central HR.

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Example Human Resources ProcessesBuilding on our previous HR experience, and focusing on the identified three centers, we have identified the following HR functions, that are typical areas for focus.

Recruiting and Staffing Support

Creating effective method to identify qualified candidates

Maintaining up to date candidates pool for campus wide recruiting needs

Establishing advertising and marketing recruitment plan

Configuring job opening template

Configuring interview template

Establishing screening criteria

Standardized hiring procedures

Designing effective on-boarding procedures for new employees

Maintaining consistent and up to date employee verification procedures

Ensuring compliance to State and Federal hiring standards

Employee Relations

Communicating standard and annual policies and procedures

Negotiating with collective bargaining units

Interpreting collective bargaining agreements

Resolving disputes

Providing employee termination support

Providing grievance counseling

Providing arbitration support

Administering Unemployment claims

Managing formal complaint responses

Establishing performance evaluation and metrics

Policies enforcement

Transaction and Records Management

Optimizing utilization of current ERP system

Developing common and integrated information systems across HR departments

Ensuring data consistency across campus

Authorizing access to available HR data

Automating manual processes

Standardizing transactional processes

Document preservation

Enforcing privacy policies

Creating and distributing systematic performance metrics and reports

We will work with the Steering Committee and subject matter experts to identify key areas of focus that are critical to Stanford.

Sample HR Processes

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Example Human Resources Organizational IssuesThrough our data analysis and interviews, we will identify critical campus-wide HR issues specific to Stanford, with which we will use to build our recommendations.

Organization structure

Ambiguous authority

Distributed responsibility

Lack of accountability

Technology

Unnecessary manual processes

Existing technology not optimized

People

Lack of training

Ambiguous roles & responsibilities / accountability

Lack of appropriate skill sets

Process

Lack of consistency

Different or lack of central vs. local policies and procedures

Lack of focus on customer service

Reactive operating approaches

Metrics

Reporting & metrics availability

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Stanford’s Executive team will play a pivotal role in setting the tone at the top and enabling behavioral change throughout the University.

Sample Critical Target Concerns:

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Human Resources Process MappingHuron will utilize process mapping, whenever appropriate, to identify areas of inefficiency or redundancy.

Stanford Human

Resources

We will work to determine processes within the three core areas, how these processes overlap, and to determine the current balance of a given key process between central HR and other units and schools.

Illustrative

* Not included in Huron’s scope of work, but will be integrated with other Centers of Expertise, under the direction of central HR.

Huron’s ApproachHuron’s approach is designed to provide Stanford a detailed understanding of current HR services and recommend changes to improve overall service level.

Confirm Project Scope and Objectives

Jointly define criteria that will be used to measure the project’s success

Send data request documents

Schedule interviews

Draft preliminary project plan

Conduct interviews and inventory all HR services

Obtain an understanding of current state of the HR function: organizational structure, processes, tasks, activities, transactions, and performance metrics

Develop current state HR process maps, as necessary

Validate understandings with subject matter experts

Identify process breakdowns and inefficiencies

Revise and finalize project plan

Evaluate the efficiency and effectiveness of services

Identify unique and common HR service requirements across the university

Understand software capabilities both centrally and at local units and schools

Review budgets and spending, if available

Extract and recommend new standard business processes governing work flow between units and the centers

Document and vet recommendations to include organizational structure, processes, tasks, activities, transactions, and performance metrics

Prioritize recommendations, including timeline, resource needs and identified challenges and risks

Quantify the benefits and define expectations of the various changes

Evaluate alternative operating models /processes and organizational structures

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Assist in delivering the change management and communication efforts required for each center

Articulate the benefits and expectations of changes to affected departments, units, and schools

Assist in the development of a high-level implementation plan for each of the centers including organization structures, staff required, broad job descriptions, and timelines

Assist with the development of the governance model for the Center of Expertise

Assist in developing service-level agreements

Our approach encompasses the detailed steps required to understand the current operations, and to build implementation recommendations for each center.

Key Activities Weeks 1-2 Weeks 3-4 Weeks 5-6 Weeks 7-8 Weeks 9-10 Weeks 11-12

Pre-Engagement• Confirm our understanding of the project’s objectives and

jointly define criteria that will be used to measure the project’s success

• Send data request documents and schedule interviews

Documents and Evaluate Current State• Kick-off meeting• Conduct Interviews• Reviewing HR Task Force report to identify areas of focus• Gather and review HR related financial and operational data• Draft current process flow charts, if necessary• Gain added insight into Stanford’s current operations to be

used as a foundation for developing functional assessments and recommendations

• Finalize project plan

Perform Data Analysis and Conduct Additional Interviews• Assess the current state of HR support and services, to

provide an understanding of service efficiencies, technical architecture, organizational structure, resource allocation, and employee skill sets

• Identify major areas of potential performance improvement and associated enablers

Develop and Validate Recommendations • Document and vet final recommendations to include

organizational structure, processes, tasks, activities, transactions, and performance metrics

• Prepare findings and potential recommendations and gain consensus

Deliver Final Recommendations• Deliver final business cases and recommendations • Deliver the change management and communication efforts

including potential governance models required for each center

Steering Committee MeetingHuron Deliverable

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Preliminary Project Work-planThis 12 week project plan provides an overview of Huron’s approach and will likely evolve as the team obtains a deeper understanding of the HR related activities.

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Sample Project Update Template

Project Plan

Project Activities

Week Beginning

09-20 09-27 10-04 10-11 10-18

Documents and Evaluate Current State

Perform Data Analysis and Conduct Additional Interviews

Develop and Validate Recommendations

Deliver Final Recommendations

Project HR Center of Expertise

Primary Objective

To evaluate integrating all Stanford HR functions into a centralized location.

Illustrative

Date September 29, 2010

Resource Advisory Team (Core)

John Doe Joe Doe Jane Doe

Accomplishments for the Week

Conducted 4 interviews

Key Activities

Confirmed project scope

Held kick-off meeting with the steering committee

Critical Dependencies

Cooperation from local HR departments

A project plan will be utilized to track accomplishments and issues as well as communicate interim findings to the Steering Committee.

John Curry (Managing Director)

John will have overall responsibility for the project. John has worked with Huron for almost five years leading projects ranging from incentive-based

budgeting, to rationalization of complex IT organizations and library systems, to cost reductions through benchmark analysis and shared services,

among many others. Prior to joining Huron, John was Executive Vice President of MIT. Prior roles were: Vice President for Business and Finance at

Caltech, Administrative Vice Chancellor and CFO at UCLA, and Vice President for Budget and Planning at USC. His last three positions included

responsibility for Human Resources.

Loren Mann (Director)

Loren will serve as Project Director to ensure product quality as well as provide oversight for fieldwork and analysis. Loren has more than ten years of experience with Higher Education and Non-Profit organizations and has focused primarily with organizational design, operating and capital budget development, strategic analysis and planning, business case development, and financial due diligence. Most recently, he has worked with a large public university with the organizational design and development of their Human Resources department and a large private university in the organizational design and development of their Finance department. Loren holds a Master of Business Administration from the Harvard Business School, a Master of Science in Mechanical Engineering from Rensselaer Polytechnic Institute, and a Bachelor of Science in Mechanical Engineering from the University of Illinois at Champaign-Urbana.

Alan Chen (Manager)

Alan has 8 years of experience in providing consulting and business advisory services to universities, hospitals, mission-driven organizations and corporate companies. Most recently, he worked with Loren Mann at a large public university system in the Midwest to redesign its Human Resources, Payroll, and Benefits departments that serviced approximately 30,000 employees. Alan’s other focuses include financial modeling, financial analysis, strategy development, and process improvement. He is a Certified Public Accountant and has significant knowledge of the financial reporting and general business processes.

Mariam Khalife (Associate)

Mariam assists leading universities in enhancing operational efficiencies, identifying and implementing process improvements, and developing strategic plans. Mariam has extensive experience providing data analysis, benchmarking, and business case development. Mariam’s recent engagement experience includes conducting an overall assessment of the organizational structure for a leading private university in the Midwest. She received her MBA and bachelors degree from the University of Michigan.

Engagement Team Overview

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Issues for Consideration

Which stakeholders should be brought into the process?

What upfront communications are necessary to engage stakeholders and to obviate roadblocks?

What is the right balance between Stanford and Huron leadership of this project?

What roles might members of the Steering Committee play beyond “steering”?

What communications methods should be considered to convey project purpose, progress and Huron’s recommendations? 

If we decide to pilot some of our recommendations, which organizations/units are likely to be early adapters/pilot groups? 

Are there anticipated pockets of resistance to new approaches to HR and why?

What are some of the major ‘sticky’ issues with the local HR departments? 

How should issues/challenges that arise be managed between Huron and the project sponsors and managers?

Huron and Stanford HR will work together to address potential issues and concerns to ensure the project’s success.