HR Metamorphosis at City University - Summary of Changes Since 2009
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1 For UHR website An HR Metamorphosis at City University London Summary Since 2009, a challenging, rolling programme of parallel and integrated HR initiatives has transformed the efficiency and effectiveness of HR at City University London. This is enabling the University to achieve its aim of HR excellence in the HE sector and beyond. HR has been restructured (whilst overseeing the restructuring of other areas), reduced costs significantly and transformed staff relations in the University, evidenced by the drop in grievances, disciplinary cases and employment tribunals. HR is now regarded as one of the best performing Professional Services in the University and a model for others. (Henrietta Royle, Chief Operating Officer, 29 October 2010) The HR metamorphosis involved three parallel and complementary workstreams designed to produce strategic alignment and a step change in operational standards: Reshaping HR structure, staffing and organisation Re-engineering HR processes Skills development and support for the HR team HR is now far more closely engaged by and with the institution. This has resulted from the competence, credibility and confidence exhibited by the new team. As a result, HR is a key player in delivering City s new Vision under the leadership of the Vice-Chancellor, Professor Paul Curran. We will invest in people as the primary means of driving the transformation. (City Vision, March 2011) Objectives Increase HR professional standards; Provide better quality HR support to Schools; Commit to a strong customer service ethos; Deliver simplified and relevant HR policies and procedures in mission critical areas; Build a high performing HR team; Provide City s staff with a supportive environment exploiting the opportunities provided by the Portal for self-service. Background The project was prompted originally by the results of an internal efficiency review of HR at the end of 2008, an organisational imperative to reduce headcount in Professional Services, a new HR Director and an increasingly challenging external environment. The foundations were laid by the end of October 2009 and subsequently we have been consolidating a new HR structure and delivering longer-term strategic initiatives. Workstreams Re-shaping HR: restructuring involved the appointment of a new HR Director, recruitment of high-calibre Heads of HR reporting to Chief Operating Officers in Schools and the creation of two new senior positions of Head of Policy and Employee Relations and Head of Reward and HR Systems (to complement existing senior positions of Head of Learning and Staff
2 Development and Head of Occupational Health and Safety). The new HR structure was fully implemented on 31 October See attached diagram. Re-engineering HR processes: this workstream addressed the main shortcomings identified in the efficiency review e.g., poor service to internal customers and unreliable management information. It incorporated an e-recruitment (StepStone i-grasp) implementation in 2009, an HR website relaunch in July 2009 and, following a detailed process mapping exercise, the development of a web-based HR Process Manual. This year we will introduce self-service functionality via the University s Portal (MyCity) as part of a three-year phased programme of process improvement to achieve greater HR efficiency and to enrich both the staff and the student experience. An analysis of telephone call data led to an equipment upgrade and new internal procedures for answering the telephone. Skills development and support: new programmes for improving customer service standards and data quality: (i) off-the-job programmes in customer service skills accredited by the Institute of Customer Service (ICS) for all HR staff, (ii) management and (iii) SAP HR for new and existing members of the team. An HR senior team development programme, focusing on HR vision, values, objectives and strategy, ran through 2010 and early 2011, using the Myers Briggs Type Indicator (MBTI) and FIRO-B 1 assessments to build team effectiveness. Outcomes Staff numbers and costs: the HR staff establishment has reduced by 25% from 38 to 29 staff. The cost of HR per employee ( 550) fell by 33% in 2010 and a further 18% in The expenditure on consultants has been reduced by about 250k pa. In all, and including other cost savings described later, this amounts to a cost (and hence bottom line ) improvement of 1.25M. HR metrics: recruitment costs have fallen by up to 50% (DLA Piper) and cost per recruit at 200 is now one of the lowest in the sector; casework volumes (disciplinary, grievance and tribunal cases etc.) have reduced by over two thirds from 52 to15. Error rates between HR and Payroll have reduced by 80% since September Staff turnover at City has fallen from 9.0% in 2008/9 to 6.4% today. Service improvements: Telephone response rates on the HR general enquiry line improved from 75% to 92%; the new HR website has significantly reduced the number of routine queries from managers and staff. Customer perceptions: senior managers are reporting the HR service as having been transformed. I wanted to let you know how pleased I was with the HR service with regard to the payroll officer post, which was both timely, clear and professional and it made the task of recruitment that much easier. (Gavin Hawkins, Payroll & Pensions Manager, 16 March 2011) I have been here nine years and HR is now a much improved area. Is it appropriate for me to add that in my view Peter Brooks and his team are doing a great job in the School of Arts? (Lis Howell, Deputy Head of Department, Journalism, 7 October 2010) 1 Fundamental Interpersonal Relations Orientation Behaviour
3 Customer surveys: Feedback has indicated that the management population had noticed a dramatic improvement in the service in the previous six months (September 2009 to March 2010) which was clearly aligned with the appointment of a new Head of HR. 90% of respondents had been satisfied with the availability and visibility of the Central Services HR team. 86% of respondents felt that they had been adequately supported by the Central Services HR team when undertaking operational activities (e.g. recruitment). 74% of respondents were satisfied with the time it has taken the Central Services to complete tasks and provide feedback. HR s commitment to customer service was underscored when the HR administration team and other colleagues completed an ICS-accredited customer service training course in the summer of External recognition: Investors in People (IiP) accreditation in Central Services (500 staff) in March 2010; THE Leadership and Management Awards 2010 shortlist for Outstanding HR Team in March 2010; HR process review selected in March 2010 as a SUMS Consulting case study of good practice, potentially transferable to the student. Longer-term impact Employee and manager self-service: HR is pioneering the introduction of this facility in the University which is transferable to other areas e.g., Finance. The implementation of HR selfservice alone is estimated to yield approx 1M in further cost savings across the University and is also dramatically improving the quality and accuracy of staff data held and reported. Process improvements: affects the everyday tasks undertaken by managers and staff so the impact of this is University-wide and ongoing; SUMS Consulting considers the format of the HR process descriptions as potentially applicable to other areas. Project management: other transferable benefits have arisen from a focus on effective project management: It certainly makes my job much easier to have someone who is prepared to take ownership of their vision and through Jane and others provide good staff to implement and embed the change whilst we focus on the technology delivery where we are at our best. I've been trying to get somewhere like this for about 18 months - I just need somehow to get everyone else following your example. (IS Projects Director, ) Customer service development programme: two modules: 1 - personal contribution to customer service; 2 opportunity for teams within HR to shape their definitions of customer service. Training subsequently rolled out to other Professional Service areas e.g., Finance and Services for Students. Selection methods: assessment centre methodology developed for senior HR appointments has been adopted for other senior recruitment exercises in the University. Link to City s strategy The University s Vision is complete and its Strategic Plan is under development following the appointment in August 2010 of Professor Paul Curran as Vice-Chancellor. We will invest in people as the primary means of driving the transformation. (City Vision, March 2011) HR is now far more closely engaged by and with the institution. This has resulted from the competence, credibility and confidence evidenced by the new team. The HR Director now
4 reports directly to the Vice-Chancellor and is an integral member of the University Executive Team. HR is critically important in delivering City s Education, Research and HR initiatives to achieve the new Vision. Innovative and other notable features Innovative HR structure: reflects completely new and devolved HR management model, creating centres of excellence, strategic alignment and operational consistency. Selection processes: assessment centres for shortlisted candidates contained a flexible blend of role-plays with professional actors (to reflect real life problems and situations a jobholder would encounter) with behavioural competency and psychometric assessments (Saville Consulting Wave) as well as panel interviews. Continuity of service: With a backdrop of restructuring, redundancies and cost reduction HR has demonstrated ability to deliver major HR projects during this time e.g., a new Visiting Lecturer Policy and its implementation, staff conduct procedures and a salary sacrifice scheme for University Superannuation Scheme (USS) members introduced in July 2010 saving 450,000 pa. In 2009/10, HR supported concurrent major restructurings in several areas of the University. Over 100 posts and 4M in annual salary costs were saved. Investors in People: achieved in Central Services in March 2010 notwithstanding the major restructurings in that area in Integrating new HR staff and building new team: retained the commitment and professionalism of the outgoing staff, the former HR Business Partners in particular; achieved handovers to the new Heads of HR in all cases. Project management: meeting milestones and deadlines for all workstreams. New HR website: resulting in a completely new and satisfying user experience with easier navigation and access to details of HR policies and procedures. Training programmes: completely new, bespoke training designed for HR staff in customer service, management and SAP HR. Lessons from the project Adopting formal project management disciplines: appointment of PRINCE2 qualified project manager in HR, agreeing objectives, deliverables and project plans; pro-active tracking and monitoring of progress. Partnership working:.it is because all these areas are being addressed for the HR Self-Service Project, that it stands a chance of being successful a true marriage of the University, its people, its services, processes and systems there is no longer such thing as an IT Project (thank goodness). (IS Project Leader, ) Selection methods: multiple assessment programmes involving use of psychometrics and simulations to identify cultural fit and preferred personal attributes resulting in more effective recruitment. Creating a customer service ethos: process improvement workshops combined with the customer service and SAP HR training producing a community of HR staff who have directly
5 influenced the definitions of customer service the Department intends to provide and who have been involved in the design of key processes. RVF
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