Achieving ROI with Integrated Job Descriptions and Performance Reviews

1. Achieving ROI with Integrated Job Descriptions and Performance Reviews Improving HR Operations through Agile Software: The Olathe Health System Story November 3, 2011

2. Olathe Health System, Inc. • Located in the Kansas City Metro Area • Two Acute Care Hospitals • Over 30 Primary Care and Specialty Clinics • Over 2,500 Employees • Over 600 Job Descriptions

3. Business Problems • Word Documents • Scoring Methodology • Inconsistency • Compliance • Historical Versions • No Reporting Capabilities

4. Identifying Needs and Areas for Improvement at Olathe • We believed we could benefit by integrating Performance Reviews with Job Descriptions and bringing them online • Formed a steering committee to evaluate the situation and research solutions

5. Steering Committee Research/Solutions • Designed a new job description & performance review template and created an enhanced scoring system

6. New Job Description/Review Template

7. Steering Committee Research/Solutions • Researched options for moving to an online tool • Cost savings and increased efficiencies were key to investing in an online system • Created a justification case

8. Steering Committee Research/Solutions • Identified • Short term opportunities for improvement • Long term objectives *Management had concerns about employees that didn’t have routine access to a computer (e.g. Nutritional Care, etc.)

9. Short-term Opportunities Job Descriptions • Difficult to update – Changing Company Objectives would result in editing over 600 Word documents • Too long – Some jobs had over 23 measures • Inconsistent language • No historical versions Performance Reviews • Paper process • Incomplete reviews • 90-day Review different from Annual Review • No ability to track employee acknowledgements, e.g. confidentiality statements, etc.

10. Long-term Objectives Job Descriptions • Better able to meet Joint Commission recommendations and internal quality through online integration • Create and sustain a high quality JD database • Thorough • Consistent • Consolidated Performance Reviews • Increase Performance Review timeliness and thoroughness by making the process easier • Drive a consistent scoring process throughout the organization • Improve tracking of corporate and position-specific requirements such as JD sign-off, certifications, etc.

11. The Search for a Solution • Initial results of our research into Talent Management products on the market • Inflexible – unable to easily adopt our newly-developed templates and processes • Overpriced – costs were out of bounds for our foreseeable budgets • Found HR TMS and proceeded to pursue implementing our solution

12. Solution • A cost analysis was completed to determine the ROI *Soft and hard costs were both considered in predicting the total cost savings

13. ROI Calculations - Assumptions

14. ROI Calculation – Current Annual Cost

15. ROI Calculation – New Annual Cost

16. ROI Calculation

17. Non-quantifiable Benefits • Zero inter-office mail • Managers time regarding followup of signatures & additional copies • Ability to set personal goals and work toward career-pathing

18. Non-quantifiable Benefits • Easy anytime access to historical information • Easily reports non-completions of performance reviews and 561 evaluations • Unlimited ability to create new forms to streamline any tracking process

19. Solution • Based on estimated cost savings, management made the decision to purchase both Job Description Management and Performance Review software to meet our business needs *They also like the fact this solution would benefit all employees, not just clinical or admin • The final phase will be to add Compensation software in the near future

20. Implementing the Solution • With one HR person working consistently on the implementation, it took approximately 3 months to design and configure the system and migrate our 600+ job descriptions • We did meet our June 1, 2011 go-live date • IT resource requirements were minimal (about 20 hours total time)

21. Implementing the Solution • Prior to go-live, HR conducted four 45-minute “Lunch & Learn” training sessions for supervisors and above • HR also developed short instructional videos and placed them on the company intranet

22. Implementing the Solution – Lessons Learned • Had to field lots of questions from Managers who did not attend training or watch videos *Would suggest these to have been mandatory! *Would allocate at least two additional weeks to have fine-tuned the training and offered additional sessions

23. System Benefits – Job Descriptions • Consistent language • Position and physical requirements • Organization-wide and Departmental Duties/Competencies • Position/Unit Specific Duties/Competencies

24. System Benefits – Job Descriptions Reusable Reference Job Descriptions • Ability to create reference (re-usable) job descriptions that apply to many jobs: • Registered Nurse in Surgery vs. ER

25. System Benefits – Job Descriptions Accurate Up to Date Job Descriptions • Enlist Managers to collaborate, see/approve all changed items

26. System Benefits – Job Descriptions Flexible Tracking of Qualifications • Enlist Managers to collaborate, see/approve all changed items

27. System Benefits – Job Descriptions Online/Printed JDs Matched our Template

28. System Benefits – Performance Reviews • No paper • Consistent scoring • Auto-calculation of scores • Access from home • HR’s ability to track status of all reviews

29. System Benefits – Performance Reviews Job Descriptions Automatically “Ripple Through”to the Performance Review

30. System Benefits – Performance Reviews Compliance – View/Sign off on Job Description/Acknowledgements

31. System Benefits – Performance Reviews Reporting • Reporting tools that allow you to see all aspects at a glance. Aids in assuring Joint Commission requirements are being met

32. System Benefits – Performance Reviews Easy-to-follow “To Do” lists • Graphs that show progress and average scores

33. Results • 1st Annual Review Cycle – 6/5/11 to 8/19/11 • 43% of employees performed self reviews • Surveyed Directors about what they liked best • The paperless process • Automatic calculation of scores • The manager approval process

34. Results • Management’s embrace of online system • Managers have quick and easy access to their job descriptions • Easy upload of scores into our Lawson HRIS

35. Future Enhancements for OHSI • With the flexibility to create additional forms, we plan on adding • progress notes so employees and managers can track progress through the year • along with our basic employment contracts • We plan to add the Compensation Planning Module to allow more flexibility and • reduce the time between manager reviews and annual increases in paychecks

36. Questions for the Panelists?

37. Contact the Presenters Darcy Pugh darcy.pugh@olathehealth.org Don Berman dberman@hrtms.com Bill Rost brost@hrtms.com 763/249-8050 www.hrtms.com

38. Thank You