News & Research: Client Successes

Case Study: HR Transformation

ScottMadden assisted a large health organization in performing an HR current-state assessment, designing the interim future-state HR shared services organization for three divisions and creating a business case for the implementation of a national employee service center and national centers-of-excellence.

• The HR function was highly decentralized, leading to duplication of services and a lack of standardization of policies, procedures, and processes
• HR staff in the facilities reported to the facility CEO versus corporate HR, making corporate directives difficult to enforce
• HR in the hospitals was highly transactional: answering payroll and benefits questions, entering time into the time and attendance system for managers, and entering a significant number of personnel actions into the HRMS
• The client desired that HR staff in the facilities become more strategic, focusing on recruiting quality staff and expanding the pipeline of talent
• A national service delivery model, however, was too aggressive for facilities that were accustomed to facility independence
• ScottMadden was hired to design and implement  division-based centers-of-excellence in three divisions and to develop a business case for a future national service center and national centers-of-excellence

• Conducted a detailed assessment of current-state services to gauge labor and non-labor costs, total headcount, service quality, and similar dimensions
• Defined future-state shared services scope
• Designed the future-state HR organizations including staff sizes; developed job descriptions and established the selection process
• Redesigned processes to support the new division-based centers-of-excellence
• Developed a division-based handbook to implement a similar model with division-based centers-of-excellence
• Projected costs of the national future-state organization;  assessed current technology and determined future technology needs; determined facility, equipment, and severance costs
• Developed a business case for the future-state HR organization, and analyzed results

• Developed a division-based implementation handbook for divisions interested in transforming their HR service delivery model
  
• Documented baseline costs and quality metrics to track impact of the division-based model and its implementation
• Designed a future-state service delivery model for the national center, which is expected to achieve annual, recurring savings of $13 million
  
• Identified existing technologies to reuse and leverage to significantly decrease implementation costs