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HR Shared Services Programme
IMPLIFY
TANDARDISE
HARE
HR Shared Services Programme
IMPLIFY
TANDARDISE
HARE
Developing a new model
of HR Services
Claire Macconnell
Associate Director of Business Services
arvato Cheshire HR Service
HR Shared Services Programme
IMPLIFY
TANDARDISE
HARE
Cheshire HR Service –
Overview
• Established in 2006, experienced in supporting NHS organisations in
various sectors of healthcare
• Hosted by East Cheshire NHS Trust as an ‘arms-length’ division with
an operating framework to provide increased autonomy
• Provider of a full range of business focused HR and L&D services
• We offer customers a wealth of experience and knowledge of working
with the complexities of the changing healthcare environment
• Our mission ‘to deliver excellence in people management’
HR Shared Services Programme
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Cheshire HR Service –
Timeline
Pre 2006
Separate HR Teams – Acute,
Community, PCT
2007 - 2011
NHS HR Shared Service
5 Organisations
2011 - 2013
NHS HR Service Provider –
50+ customers
2013+
NHS Service Provider with Commercial
Partner
2006 2013
HR Shared Services Programme
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The HR Challenge
• Safety & Effectiveness
• Value for Money
• Quality
• Increased Patient & Staff Satisfaction
• Improving Health and Wellbeing
NHS Outputs
• Potential to save £616m-£1bn nationally
• 56% of HR function could be provided as a shared service
• 20-50% operational savings
• Best practice approaches
DoH Back Office Report 2010 • £20bn savings required
• People and skills taking centre stage
• Risk management and governance giving HR pivotal role
• OD and change capability high demand
Drivers
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• Small shared HR Service already existed
• Changes to commissioning structure – new organisations
forming
• Introduction of Electronic Staff Record (ESR) across NHS
• Increased measurement and monitoring of HR indicators – CQC, NHSLA
• Absence of coherent HR strategy/lack of strategic HR input
• Cumbersome and outdated HR processes, inadequate
technology
• Poor levels of satisfaction with HR
• Different payroll arrangements
Our Key Drivers
HR Shared Services Programme
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• Separate HR Departments – Multiple sites
– Multiple Processes and Procedures
– Multiple contact points
– Disparate, outdated technology platforms
– Manual and duplicate data entry
– Strategic staff performing administrative tasks
• Results – Costly, disparate HR functions.
– No performance metrics
– No customer service focus
• Shared HR Service – Harmonised and centralised HR
services
– Single point of contact for HR customers
– Single employee access portal and data entry
– Enhanced Technology platforms
– Enhanced HR reporting
• Results – Cost reduction
– Customer focused HR delivery
– Strategic staff re-focused on strategic delivery
Transforming HR Services
HR Shared Services Programme
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Our “HR Build”
HR Shared Services Programme
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Initial Three Year “HR Build”
Year Two (2008)
• Management of payroll contract
• Development of corporate identity
• Resource Planning
• Formation of HR ICT group
• SLA development & reporting
• Talent management
• Further centralisation
Year Three (2009)
• Transfer of staff into one host
• Review of services
• New Wellbeing Service
• Focus on OD
• 3 Year Business Plan
• Focus on Self Service
• Stakeholder feedback processes
Year One (2007)
• Centralisation of transactional teams
• New structures
• Staff retention
• Standardisation
• New finance model
• ESR phase 1
• Outsourced payroll
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How we spent our time
(the early days)
Administrative 40%
Operational 48%
Strategic 12%
Illustrative Example: Cheshire HR 2008 Task Analysis
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What our customers said they wanted
(World Class HR Results - 2009)
• Strategic input into the business
• Improved line manager people management skills
• Improved technology and efficient processes
• Improved access to HR services
• Greater staff involvement in policy development
• Greater focus on learning and development
• Things done in a more timely manner
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2009 World Class HR
Survey Results
62% said that HR was better or much better than in 2008
• Gets basics right
• Reliable & easy to get hold of
staff
• Effective recruitment
• Support in times of change
• HR staff are expert, well
informed and professional
• Understanding of employee &
business needs
• Effective in area of Reward &
Recognition
• Effective in workforce planning
• Help with staff absence & poor
performance
• Good advice given
• Ensures policies consistently &
fairly applied by
Between 10- 50% improvement in the following areas:
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Our vision for a model
service
Future proofing
Strategic health of organisation
Policy & Process
Administration
Process
improvement
automisation, Self-
service /HR Service
Centre
Centres of
expertise
Customer retained HR
activities
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Year 4 - Transformation through
Innovation – 2010+
• Developing our future HR service
model
• Development of Strategic
Business Partners
• Introduction of shared HR
Consultancy service
• Introduction of new technology
providing 24*7access to HR
information and guidance
• Focused dedicated HR and L&D
Business partner support for
each customer
• Increased confidence &
competence of line managers in
people management issues
• Reduced costs to customers
• Consistent delivery of HR
advice
• Tailored coaching support &
development
Customer Benefits Strategic Goals
HR Shared Services Programme
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Systems Support Service
Employment Consulting
Service
Recruitment Service
Learning & Development
Service
HR Consultancy
Service
Wellbeing Service
Business Partnering
Our Services
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Business Partnering
Inefficient case mix, lots of ER activity, chasing of information, limited business skills
Analytical skills, strategic consultancy, workforce planning skills, psychometric testing, service
improvement training
OD, workforce planning, productivity, service change, governance and compliance, business strategy
2009 - 2
011
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Tier 1:
HR Direct
24/7 Online Advice and Tools
Tier 2:
Advice Line/Administrators
Case Handlers/HR Advisors,
recruitment/general administration, online system management,
MI Reports
Tier 3:
Specialist Advisors
Case Managers, specialist advisors, people coaching, mediation, people
development, policy development
Services underpinned by Systems Support
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Business Partnering
Retained Roles
• HR & OD Director at Board
Level
• Senior HR & OD Roles at sub-
board level
• Business Partnering Teams
• Medical Workforce Lead
• Local Administration Presence
Retained Duties
• Strategy, planning & delivery
• Partnership Working
• Organisational Development
• Communications
• HR Governance and Risk
• Wellbeing Strategy
• Some complex change
• Managing the HR services
contract
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45%
39% 38% 35%
20% 20%
7%
16%
Most significant barriers to enhancing HR's future role
Source: HR Transformation in Europe, a Mercer Study, 2006
Barriers to change
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Non-Standard
Complex
Processes
Remove
Complexity Remove
complexity
Standardise
Processes
Remove
complexity
Standardise
Processes
Implement
Common
System
Establish new
organisation
Remove
complexity
Standardise
Processes
Implement
Common System
Centralise
transaction
processing
Establish new
organisation
Remove
complexity
Standardise
Processes
Implement
Common System
Centralise
transaction
processing
Implement e-
enabled common
system
Migrate to Virtual
transaction
processing
Multiple
Systems
Standard
Simple
Processes
Multiple
Locations
Transactional
Efficiencies
40%
Common Systems
Standard
Simple
Processes
Multiple
Locations
Transactional
Efficiencies
50%
Common
Systems
Single/ Few
Locations
Transactional
Efficiencies
60%
e-enabled system
Virtual Locations
Transactional
Efficiencies
75%
Increasing process maturity
Standard Simple
Processes
Standard
Simple
Processes
Multiple Systems
Multiple
Locations
Transactional
Efficiencies
Baseline
Multiple Systems
Non-Standard
Simple
Processes
Multiple
Locations
Transactional
Efficiencies
20%
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Cheshire HR Journey
-Changes to underpin HR model
development.
-Changes to support cost savings in
customer organisations.
Technology
change
Process Change
HR Team Development
HR job Development
Culture Change
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Technology Programme
(2012)
• HR Direct – Web-Based HR Information Portal
• Workforce Information Data Warehouse to improve workforce
reporting
• HR Vision - automated workflow system
• Manual processes automated
HR Shared Services Programme
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HR Shared Services Programme
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Line Manager Dashboard
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• Diversity of cultures from multiple organisations and ownership of HR
• Ownership of HR – the role of the manager
• Allocation of resources
• Geography/location
• Managing change alongside business continuity
• Developing technology against competing demands
• Achieving change in behaviours – customer/business focus
• Developing internally – capability to “let go” and become
commissioning partners
Challenges
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• Supported organisations in making savings year on year
• Increased customer satisfaction – organisation, manager, staff
• Technology benefits for HR and customers – modern, fast,
efficient, compliant
• Improved job satisfaction in HR (above the best national average
score)
• Skill Mix/Career Development - Right people undertaking right
tasks
• Increased confidence and capability of managers
Was it worth it?
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Internal HR
The Organisation New Capabilities
Self Diagnose their current state on
maturity map
Set realistic expectations aligned to culture
and practice
Identify quick wins
Make sure leaders are a partner on the
journey
HR Business Partnering and Strategy
Managing SLA’s/outsourced services
Business Case Development
Demonstrating value through information
Renegotiating “the deal” between HR and
managers
Absolutes Internal HR
Investment in technology
Commitment to concept of new mode of
control
Clear governance arrangements
Simplify customer facing end
An OD/Change Programme which focuses on:
Defining roles/mind the gaps
Developing capability to let go and take
on the new
Change in behaviours/ taking a customer
perspective
HR Business Partners as commissioners of
HR services
Don’t put off dealing with capability issues
What did we learn?
