1. Planning your ESR Demerge Andy Hamilton ESR Demerge Project Manager

2. Agenda Background Project Planning – How we did it Key Areas: Pre Merge What we found during the Demerge and things you need to start thinking about. Where are we now? What non-ESR stuff do I need to think about? Seriously….did it actually work? Questions

3. Background Target: NHS Foundation Trust approx 2700 staff Source: Provider Arm of PCT approx 800 staff (1000 assignments) Target: 3 rd Party Payroll Provider (NHS Trust) Source: 3 rd Party Payroll Provider (non-NHS Trust) Target: In House HR and Recruitment Source: 3 rd Party Outsourced HR and Recruitment (NHS Trust) Formal TUPE 1 st April Late Entrants to Demerge: Oct 2010 (RA1) Only had 3 months to Project Manage Demerge. Demerge Event: 6 th February 2011 Requirement to operate Independently for 2 months (2 payrolls etc) Decision to move Payroll provision for Demerge Agreement to transition HR services 3 months post Merge.

4. Project Planning – How we did it ESR Demerge is Project of Projects....so technically a Programme! Project is more than just the “Technical” demerge Expectation is to manage overall deliverables and requirements for McKesson (RA’s, DR) However, in order to achieve the above, input required from multiple areas so..... Broke it down into individual “tranches” or “tributaries” Dedicated Lead within Source & Target for each area Defined Tasks within each area(Task Lists) Split into Pre and Post Demerge Activity Weekly Meetings for Demerge Project Reported into TCS Project Structure ESR Demerge Project Plan

5. Project Planning – Who did it Project Manager –Responsible for Overall Project and achievement of Deadlines –Key contact with McKesson for all Demerge Activity –Dedicated (2-3 days a week) –Neutral & Unbiased –Not afraid to chase, upset and demand –Devolved Authority to sign off Demerge Project Lead –Responsible for Tasks within Area –Reported into Project Manager for all Demerge Activity –Able to make and take decisions –Attended all meeting or sent delegated representative Executive Sponsor –Ensured Project was unhindered –Attended all meetings –Acted as point of Escalation for Risks/Issues

6. Key Areas: Pre Merge Recruitment –Vacancy Management HR (Workstructures & Transactional) –Demerging Node / Structure –Processes re sickness, timesheets, travel, responsibilities –Dual Assignments L&D –Competencies –Catalogue –Reporting Payroll –Reconciliation –Communications (Cut Off Dates, New Processes) –Collating Input Finance –GL (Hub, Interface, Mappings, Entity Codes)

7. What we found... General Demerge People Move.... Everything else is Copied....and I mean everything! –Payrolls –Organisations –Positions –Locations etc Start Running Archiving Reports NOW –Absence –Turnover –Dashboard Metrics (Starters, Leavers, Stability) Previously Merged Records had missing information Confirmation of Cut Off Dates (Dress Rehearsal & Demerge) User Accounts Copied, but retain old VPD prefix IT Engagement: IP Addresses, Multiple Sites, IT Support

8. What we found... HR Structure didn’t come across as expected? Need to ensure you tell McKesson the right top and bottom Positions Numbers Change (as they are copied NOT moved) Local Contract Types (Salary Information doesn’t work) L&D Limited Information Transferred (not full catalogue and not linked) Excel workarounds need to be put in place to link merged information with that of Target VPD (NHSLA Reporting needed to be revised) Competencies transferred but become 999|LOCAL|Health & Safety – 1yr (May not be accurate) NLMS: User Accounts, Replication, Enrolments, Play Button

9. What we found... Payroll & Pensions Dual Assignments / Aggregated Tax & NI Payment Methods: BACS (Defaulted) BACS User ID Numbers (BACS Failed) Reconciliation (Previous Payrolls) Mark Inactive All Legacy Payrolls Quality of Data (difference in Payroll processes) Pensions (Pensions Choice) Finance No ability to test in Dress Rehearsal Entity Code didn’t work in two VPD’s Costings & GL Failed New Entity Code, GL Hub & Interface needed to be setup

10. Where are we now Payroll now provided by Single Provider Month 11 payroll was processed successfully and has less than 10 queries from 800 staff (most of which were general queries) Payroll Reconciliation completed for Month 11 with separate Payrolls HR transactional work being shared by 2 providers until June Confidentiality agreement in place until TUPE and HR provision is brought back in house. GL interface completed and balanced for separate Payrolls within separate VPD’s. (2 interface files) L&D working through Reporting requirements and updating competencies for new staff Month 12 payroll Run and about to be BACs’d Phase 2 of Demerge due to start post April 6 th (Change of Payroll)

11. What non-Demerge stuff do I need to consider? Does the TCS Project understand the complexity and impact of the ESR demerge/move? Is there representation at the TCS meetings? (need to give regular updates on progress) Frequency of meetings / If something needs to be esculated Organisations - Losing / Gaining Staff? Sense of Identity Communications – Bear in mind other communications around above TCS moves( need link into TCS Comms plan) Is the merge pre legal TUPE? Multiple Providers (Payroll / HR) – Need to review SLA’s, Contracts (Extraordinary Measures) Confidentiality Agreements (Single VPD) NLMS & Self Service (Smartcards) Establishment Control

12. Seriously...did it work? YES No barrier was unsurpassable No problem was insurmountable Workarounds were put in place were necessary McKesson will do all they can to help and the Demerge team are great. The Demerge guide will give you the basics, but has become outdated and is in need of a overhaul (recent meeting with FG)

13. Questions?