HR Technology Strategies that Work in Healthcare. Background

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1 HR Technology Strategies that Work in Healthcare Shawn Davis Intermountain Healthcare Background Shawn Davis Director, HR Workforce Solutions & Analytics IHRIM Board of Directors ( ) HRIP Certification 15 years HR Technology and Analytics experience 1

2 Intermountain Healthcare Nonprofit Integrated Health System Hospitals, Physicians and Health Plans Largest healthcare provider in the Intermountain West Located in Utah and Southeastern Idaho 23 Hospitals and 150 Clinics 2,723 Licensed Beds 32,000 Employees Agenda HR Technology Industry Landscape HR Technology Trends HR Technology Strategy HR Technology Strategies and Lessons Learned at Intermountain Healthcare 2

3 HR technology industry is changing g rapidly Many vendors are adding modules to complete their product offerings Many vendors are combining with others to complete their product offerings Very active merger and acquisition environment Industry Landscape Recent acquisition/merger activity StepStone and MrTed ADP and Workscape PeopleClick and Authoria SuccessFactors and InfoHRm Taleo and Worldwide Compensation Watson Wyatt and Towers Industry Landscape 3

4 HR Technology Spending Continues to Grow HR technology spending is on the rise despite the struggling g economy HR technology applications are one of the fastest growing fields of business software *** $7.2 billion spend in Expected to grow to $12.8 by 2012.* Only 21% of companies expect to reduce HR technology spend** 43% of companies are maintaining their annual HR technology spend** 21% of companies expect to increase their HR technology spend** Source: AMR Research*, Towers Watson** and Workforce Management*** HR Technology Spending Continues to Grow Why is spending still in the rise? Talent management demands Cost savings and efficiencies Keep pace with regulatory needs Respond to vendor changes Continued desire to elevate the role of HR from an administrative to strategic function 4

5 Evolution of HR Technology Delivery Methods are Evolving On-Premise The system hardware and software are installed at your site and the hardware and software are supported by your staff Hosted The solution provider installs and operates a unique instance of the software at its facility for your company SaaS The solution provider hosts and manages the hardware and software at its facility in a multitenant environment On Premise will give way to hosted, SaaS and Outsourced * Consider hosting, SaaS, and outsourced deployment option as a way to reduce the IT/HRIT and related consulting staff required to support your HR systems environment * Source: CedarCrestone* 5

6 Traditional Core HRMS Systems Not just your Core HRMS any more. Most traditional ERP providers now offer a full HR suite from core HRMS to talent management solutions Vital and foundational component to all other HR technology solutions Most ERP providers are also offering multiple delivery methods Traditional Core HRMS Systems SamplelistofCoreHRMSproviders list providers ERP Pure Play Outsourced Providers Lawson Kronos Workforce HR Accenture Oracle ebusiness Suite Meta4 ADP Oracle PeopleSoft NuView Ceridian SAP Workday Spectrum Ultimate OneSource VHR Salary.com Others Others Others 6

7 The Emergence of the Talent Management Suite One integrated software solution for Recruiting, Performance Management, Succession Planning, Career Development, Learning and Compensation Administration Not all Talent Management Suites are equal Many Talent Management providers are developing their own Core HR modules SaaS is the predominant (and preferred) delivery method for talent management systems * Sample list of Talent Management Suite providers: Source: Bersin & Associates* Cornerstone OnDemand Halogen HRSmart Kenexa Lawson Learn.com Oracle PeopleClick Authoria Plateau Saba Salary.com SAP SilkRoad Softscape Stepstone SuccessFactors SumTotal Taleo Workstream Many others Other HR Technology Offerings are Expanding Hundreds of vendors offering point solutions from data visualization to regulatory compliance software Organization Charting Onboarding Total Compensation HR Help Desk HR Portal Total Rewards Income, Employment and Social Services Verifications HR Reporting Others 7

8 New HR Technology is Emerging Traditional HR software is maturing to provide a more complete solution and improved user interface User Defined Individual preferences and delivery methods Software as a Service (SaaS) delivery method Frequent upgrades and latest innovations HR Portals Social Collaboration Workforce Analytics HR Technology Adoption 8

9 HR Technology is a Core Component of HR in Healthcare Very labor intensive industry Pay and Benefits usually represent the largest operating expense Operations are typically 24 x 7, requiring other ways to access HR Heavily regulated industry Mechanism to track workforce data Used to process payroll Keeps your organization compliant with regulatory requirements Automates very labor intensive processes Improves the selection and development of employees Empowers employees and managers with information for individual and workforce decisions Supports strategic workforce management decision making How to Make Sense of it All What are your company and HR initiatives and where does technology fit in? How can you leverage technology to support your initiatives? What technology investments have the biggest returns? 9

10 How to Make Sense of it All What are the priorities for your technology investments? Can technology help elevate your HR function from an administrative department to a strategic partner? HR technology plays a critical role in healthcare Developing an HR technology strategy can help What is an HR Technology Strategy? Defined A plan for how you are going to leverage technology to support your HR business processes All processes in the employee lifecycle from hire to retire Includes both your current technology solutions and others you may consider purchasing 10

11 What is an HR Technology Strategy? Provides the roadmap for all current and future technology projects Must be part of your overall HR strategy Why Have an HR Technology Strategy? Aligns your HR technology strategy with your overall HR and organization strategy Establishes priorities for your HR technology investments Improves the probability for a successful outcome with a technology project Keeps everyone moving in the same direction 11

12 Risks of Not Having an HR Technology Strategy HR technology is not aligned with overall HR strategy Project priorities and investments set by many different business owners Redundant HR technology solutions Silo solutions that lack integration with fragmented service delivery and fragmented end user experience Data driven decision making is difficult Data is difficult to gather and use Lack of credibility and trust in technology, data and vision What s Included in an HR Technology Strategy? Linkages to company and HR initiatives Linkages to your HR service delivery model Inventory of current solutions System diagrams, integrations, dependencies, etc. Gaps in current solutions What s needed to address business strategy? Leverage current solution, purchase new software, outsource, etc. Build v. buy strategy Delivery Method On-premise, hosted, SaaS, outsource, etc. 12

13 What s Included in an HR Technology Strategy? Integration v. stand-alone strategy Resource readiness and availability Resource skill gaps and needs Dependencies IT, funding, subject matter experts, etc. Priority of projects Impact to business Maintenance and support that has to happen to keep all systems going What s Included in an HR Technology Strategy? Timeline Projects Milestones 2-5 Year timeframe Governance Structure Leadership involvement and support including HR, Finance, IT, Supply Chain, etc. Keep informed on a regular basis Approval of funding for new projects 13

14 When to Create or Change Your HR Technology Strategy When planning your overall HR strategy and roadmap When setting budgets for next year or next 5 years When needing to make a major software purchase or upgrade When new operational strategies or needs surface When regulatory changes happen When mergers, acquisitions or vendor changes happen, etc. Maintaining and Using Your HR Technology Strategy Evolving Strategy Realistic projects and timelines Publish and share strategy with stakeholders Monthly project updates on milestones Develop and manage project plans based on the strategy New projects and impact on strategy 14

15 HR Technology Strategy and Lessons Learned at Intermountain Healthcare 15 years ago Had a build systems strategy 100% dependent on IT programmers for all system changes Limited resources and major backlog of projects HR was heavily focused on administrative tasks Employees had no access to their HR records Managers had no access to data on their workforce HR Technology Strategy and Lessons Learned at Intermountain Healthcare 15 years ago Very long turnaround time for employee and manager changes with many lost change requests Everything stops every other week for payroll processing HR had very limited access to data for decision making Each region and hospital had different metrics and calculations HR processes varied by region and hospital 15

16 Long-Range Vision for HR Technology at Intermountain Healthcare Consolidate Core HR systems Improve speed Upgrades, projects, processes, etc. Increase support, scalability and dependability of systems Increase HR independence for routine system changes Access to latest innovations Process standardization Process automation Cost reduction Improve access to data Improve decision making capabilities HR Technology Strategy and Lessons Learned at Intermountain Healthcare Strategy ( ) Administrative excellence, process and data standardization, technology innovations, end user configurability, increase HR independence for system changes, improved reporting, system reliability and system scalability (size and functionality) Technology Solution Implemented Oracle HRMS (HR/Payroll) Key Outcomes Created HRIS function, greatly increased HR independence, reengineered and optimized all HR processes, standardized HR data definitions and processes with system components, frequent upgrades with innovations and regulatory changes, significant increase in reporting capabilities and stable vended system with ability to scale as company grew with additional functionality capabilities Lessons Learned Initial scale of project was too big, needed more realistic timeframes, consulting help was limited, customizations were more costly than expected, delivered reports were limited, upgrades were harder than expected and change management was critical 16

17 HR Technology Strategy and Lessons Learned at Intermountain Healthcare Strategy ( ) Process automation, employee and manager empowerment, shared accountability for transactions, data transparency, data quality, decrease turnaround times, HR centralization for benefits administration and begin to transition HR workforce from administration to business partnering and strategy Technology Solution Implemented Oracle Employee Self-Service, Advanced Benefits, Manager Self- Service, HR Portal and Taleo Recruitment Key Outcomes Self-Service only strategy, employee and manager support, automated major HR processes, eliminated manual transactions, shared accountability for transactions, data quality greatly increased with increased transparency, system changes when from days to minutes, receive over 1.7 million logins in Oracle per year, centralized major HR function, began to increase the number of HR business partnering staff Lessons Learned Executive sponsorship is critical, biggest ROI with employee self-service, self-service only strategy can work, communication is critical, keep approvals simple, improve processes, involve end users HR Technology Strategy and Lessons Learned at Intermountain Healthcare Strategy ( ) Reduce reporting load on production systems, improve reporting capabilities, analyze data across multiple systems, standardize metrics and data definitions, eliminate redundancies, increase HR access to data, increase manager access to HR data and increase data used in strategic decision making Technology Solution Implemented HR and Payroll DataWarehouse and HR Business Intelligence Tool Key Outcomes HR developed reports (100+), ability to analyze and report on data across multiple systems, standard data definitions and calculations, increased HR and manager access and understanding of data, increased data accuracy, rapid turnaround of data, metrics and analysis, ability to grant access to special groups, began workforce planning and data driven business decisions Lessons Learned Make sure you can get data from your software vendors, select the right reporting tool the first time, data architects are critical, ETL quality controls are critical and HR SQL skills are very important 17

18 HR Technology Strategy and Lessons Learned at Intermountain Healthcare Strategy (2009+) Talent management process integration, system integration, system consolidation, SaaS delivery method, frequent upgrades and innovations, high system usability, high system configurability and sunset home grown talent management solutions Technology Solution Implementing PeopleClick Authoria s Talent Management Suite (Performance Management, Succession Planning, Career Planning, Compensation Management and Recruiting) Key Outcomes - TBD Lessons Learned - TBD How did we do? Consolidated Core HR systems Improved speed Upgrades, projects, processes, etc. Increased support, scalability and dependability of systems Increased HR independence for routine system changes Access to latest innovations 18

19 How did we do? Standardization most HR processes Automated major HR processes Cost shifting and maintaining Improved access to data Improved decision making capabilities Automation Results Self-Service Transactions ( ) 1,400,000 1,200,000 1,074,681 1,333,294, 1,000, , , , , , , ,000 0 Manager Selfservice Online Benefits Enrollment Employee Self-Service Total Self- Service Online Applications 19

20 HR Transformation Results Reduced HR employees as a percent of total employees Reduced HR support staff and increased HR business partnering Supported the creation of a Shared Service Center and Centers of Excellence HR Employees as a Percent of Total Employees As a Percent of Total HR Staff 0.80% 0.60% 0.40% 0.20% 0.00% 0.72% 0.69% % 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 66.7% 33.3% 22.5% % Support Staff Professionals and Managers HR Technology Strategy and Lessons Learned at Intermountain Healthcare Build v. Buy Strategy and Lessons Learned Transitioning to buy only strategy Build only when vended solution is not available Frequent access to latest innovation HRIS team skill sets more transferable Increase HR independence More scalable, stable solutions 20

21 HR Technology Strategy and Lessons Learned at Intermountain Healthcare Silo v. Integration Strategy and Lessons Learned Transitioning to integration strategy Strong integration of similar HR processes Consider talent management as 1 process (Recruit, Develop, Compensate and Retain) System consolidation and fewer vendors Eliminate internal silo s Easier for managers and employees HR Technology Strategy and Lessons Learned at Intermountain Healthcare On-Premise v. SaaS Delivery Method Strategy and Lessons Learned Strategy to increase the use of SaaS HR can focus on solutions instead of technical challenges Systems are automatically updated when vendors release patches, functionality or full upgrades Allows us to receive more frequent enhancements Increase HR independence 21

22 Summary HR Technology is rapidly evolving HR technology is a critical component of HR Strong executive sponsorship is critical Skilled and knowledgeable HR technology professionals are critical Stay informed on technology solutions and trends Developing and updating your HR technology strategy will keep you focused and aligned with your overall HR strategy Technology can help elevate HR from an administrative department to a strategic partner Questions? Shawn Davis Intermountain Healthcare

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