QUALITY MANAGEMENT CONSULTANTS-THE HR BPO

1. QUALITY MANAGEMENT CONSULTANTS-THE HR BPO

2. WHAT IS BPO: Business Process Outsourcing

3. Terminology • Outsourcing • Offshoring • BPO • ITO • Fragmentation

4. History of BPO • World War II • Increased international trade • 1960s – 1980s • Importing turns to outsourcing • 1990s – Present • Services now outsourced • BPO begins

5. THE BPO- MODEL( HOW IT WORKS

6. Business and people challenges The Business • Substantial growth through acquisitions • Financial pressures across the system • Shifting from local to system business model • Complicated operating model • Increasing stakeholder expectations • Human Capital • Extremely high labor costs • Pervasive attraction and retention challenges • Quality of care issues • Inability to maintain wage parity • Lack of leadership bench strength • Out-of-control benefit costs

7. And the HR function had its own set of challenges • Decentralized and unable to leverage “systemness” • Under-equipped to meet the challenges of the business • Overly focused on administration • Not regarded as credible, or relevant to business

8. OUR MISSION: Liberating the Potential of People

9. For HR leadership, a long road ahead of us • Needed to frame an HR transformation process that could get sponsorship • Quantify the people-related issues in financial terms • Build support (and proof) that HR could add business value • Design and execute a process that would address these challenges

10. Our Business Design for HR HR operating model Business and environmental context Sourcing What activities will we do ourselves/have others do? Human capital strategy HR function strategy How will we secure, manage, and motivate a workforce that can execute the business strategy? How will we deliver expected value and contribution tothe organization? Infrastructure HRValue Proposition What capabilities are needed to fulfill HR’s strategy? Businessstrategy Governance How will we lead the function and manage related investments? Performance monitoring and renewal Our Business design model

11. Assure our success in fulfilling our Mission FULFILLMISSION ACHIEVE OPERATIONALEXCELLENCE • Help us achieve operational excellence • Recruit, retain and develop the right talent DEVELOP RETAIN RECRUIT Liberating the Potential of People Liberating the Potential of People A system-wide initiative to design and deploy excellent HR strategies and services which will:

12. Our pay, benefit and recognition programs Our competencies, performance management, career development, succession planning, talent mapping Getting the best people with the best fit and keeping them engaged and productive Using technology, improved HR processes and a focus on HR customer service to meet needs across the system Our Areas of Strategic Emphasis

13. Our Key HrPriorities Consolidate Health Plan to bring all facilities into Plan for implementation Develop system-wide talent management strategy for leaders • Develop system-wide RN recruitment strategy in partnership with Nursing Collaborative • Continue to build employee engagement through Gallup workplace management program • Pilot and implement Gallup Selection Research Instrument (SRI) • Implement Lawson Benefits module and create plan for implementation of HR/Payroll Suite • Develop, track and report HR metrics and outcomes using Premier Outlook and other system tools

14. 4 Elements of Infrastructure- HR OPERATING MODEL Process Talent Technology Organization Sourcing What activities will we do ourselves/have others do? Infrastructure What capabilities are needed to fulfill HR’s strategy? Governance How will we lead the function and manage related investments?

15. OUR Advantages • Productivity Improvements • Cost Savings • Improved HR • Focus on Core Business Competency • Increased Capability

16. Benefits

17. Governance: The key difference between intent and results HR operating model HR governance is the act of leading the HR function and managing related investments in people, processes, technology, benefits, etc., to: Sourcing What activities will we do ourselves/have others do? • optimize performance of human capital assets • fulfill fiduciary and financial responsibilities • mitigate enterprise HR risk • align priorities with those of the business • enable HR executive decision-making Infrastructure What capabilities are needed to fulfill HR’s strategy? Governance How will we lead the function and manage related investments?

18. THE MISSION Share accountability for aligning HR strategies with business and mission goals Guide the direction, design, oversight and implementation of HR strategies Champion and advocate service, quality, value and ongoing continuous improvement Identify and monitor performance metrics Set performance standards Represent the interests of Local Systems and encourage two way communication Manage HR leadership development & succession Leverage Best Practices Champion process improvement The Role of The HR

19. BPO Disadvantages • Recent Studies • Knowledge Disappears and is Transferred to the Outsourcing Partner • Poor Quality Control • Restoring Operations is Complicated • Lack of Loyal Employees • Reduction in Strategic Alignment

20. 5 Managerial Steps That Pay Off • Go Offshore for the right reasons • Shifting a broken process may not fix it • Choose your model carefully • Could cost more…..(I’ll fix this part) • Get your people on board • Employees and middle managers can make the bold move happen….or stop you in your tracks

21. 5 Managerial Steps That Pay Off • Be prepared to invest time and effort • Often what is lacking in offshore partners is a lot of deep process knowledge • Treat your partners as equals • Telling your partners exactly what to do and how to do it is not conducive to the entire process

22. THANK YOU