HR Service Delivery: Campus Initiatives David Odato, UCSF Jeannine Raymond, UCB Ramona Agrela, UCI Karen Hull, UCD Facilitated by: Scott Bolman, Mercer University of California Human Resources December 7-8, 2011 Irvine, CA
UCSF Landscape Health sciences campus (4 health professional schools, a graduate division and a Medical Center) Over 25,000 employees (faculty, non-faculty academics, post-docs, campus staff, medical center staff) Campus HR and AP services highly decentralized About 600 headcount/264 FTE work in academic personnel or staff HR functions Professional classification/job descriptions, service levels, salaries, business processes, and skills all highly variable across AP and Staff HR Ratios of HR/AP professionals to staff served had significant opportunities for improvement (per CUPA standards, could decrease about 76 FTE) Goal of restructuring initiative Improve service, availability and quality Standardize processes and provide supporting on-line tools to increase efficiency Create a professional career path for Staff HR and AP professionals including job families, standard job descriptions, salary equity and market competitiveness Reduce costs ($5M-$8M) Align HR and AP staffing metric to population served with CUPA standard (1:127)
Organizational Structure Five shared services clusters with customer departments serviced in similar programmatic groupings Generalists to handle routine and some advanced consultative and transactional activities Specialists in Staff HR and Academic Personnel to handle complex areas Leverage relationship between Staff Specialty Center and Medical Center HR where appropriate Recruitment/Staffing Strategy Competitive recruitment of approximately 175 positions Posted all positions internally first to maximize opportunities for UCSF employees to be hired into the new organization; 85% of positions filled internally Posted and hired positions hierarchically (AVC, Directors, Managers, Staff) with each level leading the recruitment of their direct reports Stagger the on-boarding of personnel to the new organization based on specific cluster go live timing Process Redesign Comprehensive analysis and stakeholder meetings resulting in documentation of more than 150 processes Documentation provides clarity on roles and responsibilities of clusters, specialty centers and customers and serves as basis for staffing, SLAs, etc.
Funding Model Allocation is prorated using weighting based on estimated effort to provide service to specific populations (e.g., staff, faculty, post docs, etc.); weightings will be reevaluated yearly Amount charged is transparent Billings and collections calculated once a year and collected on a monthly basis through control points or direct to departments Governance: Provide formal accountability structure that addresses customer representation, SLA achievement, financial performance, rate changes and continuous improvement Metrics/SLAs: Develop operational/tactical and strategic measurement indicators and service level agreements that are both quantitative and qualitative. Engage stakeholders before finalization. Department Transition: Develop and distribute tools and methods that let departments know what is in scope for AP/HR services delivery and what remains in departments in order for them to perform their own fit/gap and put processes in place to facilitate a successful transition. Training: Develop and deliver training to generalists and specialists. Focus on problem-solving, what is good customer service, process, policy and use of new technology Space: Co-locate where possible, establish hotel accommodations to keep closer to customer during transition
Envision future state. Developed a vision for future state, designed an organization to get us there. Stakeholder Engagement: Engaged broad-based and diverse set of leaders, departmental managers, staff and academic professionals to come up with a high level design of roles and responsibilities before doing detailed design Competitive recruitment. Conducted competitive recruitment for all position in the new organization. Recruited top down (directors, managers then staff) for all generalists and specialists positions. Assessed all individuals based on resume, years of experience, interview panel rating and skill survey results (360). Placement into position based on staggered go live strategy. Salary Setting. Achieved parity among staff HR and academic personnel service providers for the first time using market data We did it ourselves. We built in house expertise and used our own people to design and implement, thereby assuring that campus needs were known and met.
Berkeley s landscape 25,000 employees (faculty, non-senate academics, staff, post docs, grad and undergrad employees) HR services decentralized, with 5 operating shared services centers (serving about one third of all employees) in: o College of Engineering for research faculty 2006 o Research for all ORUs Fall 2009 o Administration Office of the Chancellor, VCAF, CIO July 2010 o Student Affairs 3 clusters July 2010 o College of Natural Resources Fall 2010 About 70 HR fte in central HR units At least another 120 HR fte spread across the campus Non-represented positions standardized on Career Compass job standards Have been using PeopleSoft Oracle HRIS for over a decade 9
Operational Excellence at Berkeley Includes 7 major initiatives: Organizational simplification» Phase 1: expanded spans - savings to date, about $20M» Phase 2: shared services center(s) Procurement Energy Student Services IT Financial planning High Performance Culture 10
Goal for HR services Improve service and efficiency; reduce cost and risk Standardize business processes beginning with high volume and/or high risk activity, e.g. recruiting, onboarding, leave management Reduce cost of timekeeping (est savings of $3 M) Automate timekeeping campuswide by August 2012 implementing Kronos ( Cal time ) Pilot shifting retirement counseling to UCOP s RASC Create a larger shared services center that includes HR, IT, finance, general admin support by July 2012 Create career paths for campus HR professionals 11
Structure of the HR Center In the HRC - Two teams: HR Generalists: advisory and consultative; assigned to client departments Transactional analysts All positions were posted for open recruitment, beginning with Director Almost 2/3 of HR generalists were filled internally Almost all transactional team filled internally Staffing metric: 127 headcount : 1 HR fte In the client departments: all HR fte extracted In the central HR units: Roles are changing as expertise is building in the HRC 12
Business process redesign Diagnostic and design phases took 11 months - identified 15 core business processes that define staff HR Team of 10 spent 4 months separating the roles of the client departments, the HRC, and central HR Transition team took 7 months Final analysis turned over to a smaller team that worked on the transition of work out of client departments and into the HRC Director developed Service Level Agreement that reflect the final input of each work team 13
We wish we could have Run parallel for a couple of months before opening Had more time to develop and test the automated tools; and had trainers available for 2-3 months to help departments Had a separate team to collect and organize the personnel files Had temporary extra transactional staff for about 4 months to help with the large amount of work transferred to the HRC Had temporary advisory staff for a couple of months to assist with the initial influx of personnel cases and help triage. 14
14,230 total employees 8,930 staff (campus and medical center) Costs to deliver HR service are above industry benchmarks Lack coordinated HR delivery on the campus Lack of coordinated HR delivery between the campus and the medical center Uneven deployment and leveraging of technology
Develop more effective and customeroriented human resource services Shape the culture to focus on information sharing and continuous improvement Build leadership and change management skills Reduce costs by at least 15%
Leverage best practices Internally and externally eliminate redundancies Increase efficiencies Improve consistency of service Establish integrated UC Irvine human resources services, where appropriate Align with the mission, vision and values of the campus and UC Irvine Health Engage broad group of stakeholders in the process
Increased collaboration and information sharing across departments Leaders managing the change: talking about change and guiding staff through the journey New reveals and appreciation of challenges unique to campus and to medical center. Process mapping competency development. Cost reduction plans in place by Summer 2012
UC Davis Landscape 13,100 staff, faculty & student employees on the Davis campus supporting 30,600 students (excludes UCD Health System) Project Scope => consolidate HR, payroll, finance and IT across all administrative divisions. Participation mandated. 6,500 employees supported by the SSC Initial cost reduction target of 20 25% Going live February 14, 2012
Overarching Strategy 1. Redesign business processes to reduce redundancies, streamline work and remove work from the system 2. Automate business processes Time & attendance Case management/knowledge management via ServiceNow Electronic Data Management System ACD/IVR 3. Consolidate work into the shared service center
Challenges Culturally atypical Action versus protracted analysis & deliberation Expedited timeline Redefined engagement process (consultation versus consensus) Level of investment with simultaneous reductions Approach included strategies to address changes in: Culture Organizational structure Technology Transition management Staff skill requirements
Challenges Transparent & Evolutionary We put all of the cards on the table. While this is beneficial in many regards, it also frustrated employees who wanted answers we didn t have. Transformational change that is highly complex Invokes significant emotional responses and resistance at all levels of the organization Requires significant change management support Must have organizational fortitude and unwavering leadership commitment
Investments and Savings 2010-11 through 2016-17 Total Savings $37.8 Million - Investments $15.7 Million = Total Savings $22.1 Million plus $8 - $10 million annual savings after 2016-17
David Odato, UC San Francisco Associate Vice Chancellor, Human Resources Chief Administrative & Human Resources Officer, UC San Francisco Medical Center Phone: (415) 353-4028 Email: David.Odato@ucsfmedctr.org Website: http://operationalexcellence.ucsf.edu/work-groups/aphr-implementation Jeannine Raymond, UC Berkeley Assistant Vice Chancellor, Human Resources Phone: (510) 642-9022 Email: jraymond@berkeley.edu Website: http://hrweb.berkeley.edu/ Ramona Agrela, UC Irvine Associate Chancellor/ Chief of Staff Phone: (949) 824-5962 Email: ragrela@uci.edu Website: http://www.uci.edu/opx/hr/index.php Karen Hull, UC Davis Associate Vice Chancellor, Human Resources Phone: (530) 752-6264 Email: kshull@ucdavis.edu Website: oe.ucdavis.edu