New Models of HR Sally Campbell Jane Haire Cheshire HR Service

New Models of HR Session Aims What are the challenges/opportunities for HR? Where are we now as a profession? Where could we be as a profession? Case Study – Cheshire HR Service The challenges and next steps Discussion - Questions

The Challenge NHS Outputs DoH Back Office Report 2010 Drivers Value for Money Safety & Effectiveness Quality Increased Patient & Staff Satisfaction 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 People and skills taking centre stage Risk management and governance giving HR pivotal role OD and change capability high demand Drivers

HR Opportunity Reduce costs of HR service, particularly in administration Repositioning away from admin to supporting business strategy Improve quality through customer focused HR delivery

Where are we now? Future proofing of organisation Strategic health of organisation Policy & Process Administration

What do we spend our time on? Illustrative example: Cheshire HR 2008 Task Analysis

What are the barriers to change? Source: HR Transformation in Europe, a Mercer Study, 2006

A Future Operating Model Future proofing of organisation Strategic health of organisation Policy & Process Administration Customer retained HR activities Centres of expertise Process improvement automisation , self service /HR Service Centre

Increasing process maturity Multiple Systems Remove complexity Standardise Processes Remove Complexity Remove complexity Standardise Processes Implement Common System Non-Standard Complex Processes Establish new organisation Remove complexity Standardise Processes Implement Common System Centralise transaction processing Multiple Locations Multiple Systems Establish new organisation Remove complexity Standardise Processes Implement Common System Centralise transaction processing Implement e-enabled common system Migrate to Virtual transaction processing Non-Standard Simple Processes Transactional Efficiencies Baseline Multiple Systems Common Systems Multiple Locations Standard Simple Processes Transactional Efficiencies 20% Standard Simple Processes Common Systems Multiple Locations Standard Simple Processes Multiple Locations Transactional Efficiencies 40% Transactional Efficiencies 50% Single/ Few Locations e-enabled system Transactional Efficiencies 60% Standard Simple Processes Virtual Locations Transactional Efficiencies 75% Increasing process maturity

CASE STUDY CHESHIRE HR SERVICE

What our customers said they wanted (World Class HR Results - 2009) Strategic input into the business Greater focus on learning and development Improved technology and efficient processes Improved access to HR services Greater staff involvement in policy development and improve policy communications Improved line manager people management skills Things done in a more timely manner

Central HR Consultancy Service Our HR Services Business Partnership Systems Support Team Recruitment Services L&D Services HR Direct Info Portal Central HR Consultancy Service Wellbeing Services TECHNOLOGY ENABLEMENT ENABLEMENT TECHNOLOGY

Our Employee Relations Service Tier 3 Specialist advice, case management, change management, policy development Tier 2 1st Line call advice, general HR administration, MI reporting Tier 1 HR Direct (24/7 Information Portal)

Employee Relations – What’s changed? Historically Current State Benefits Reliance on HR Low ownership of HRM Inconsistent advice Multi-info sources Lack of MI Limited HR Capacity 24/7 Information Portal Access to dedicated HR professionals Expensive legal resource focused on risk areas People Coaching MI focused on trends Reduced Cost Improved line manager capability Reduced risks/costs Improved customer satisfaction Improved HR staff satisfaction

HR Transformation – Was it worth it? Supported organisations in making CIP’s year on year Increased customer satisfaction Improved staff satisfaction survey results Skill Mix/Career Development - Right people undertaking right tasks Technology benefits for HR and customers

The challenges of a new model The Organisation New Capabilities Self Diagnose their current state Set realistic expectations aligned to culture 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 Absolutes Internal HR Investment in technology Commitment to concept of new mode of control An OD/Change Programme which focuses on: Developing capability to let go and take on the new Change in behaviours/ customer business focus HR Business Partners as commissioners of HR services Dealing with those who will never change Internal HR

HR Transformation: The next steps Integrated and sequenced approach process reform automation of processes/self service structural reorganisation Give attention to service gaps internal communication / knowledge sharing joined up delivery customer differences unclear accountabilities

Any Questions?