Cheshire HR Case Study

1. Cheshire HRCase Study

2. The Background • Cheshire HR was formed in October 2006 • East Cheshire NHS Trust • 3,700 staff • Macclesfield Hospital + community healthcare in central and eastern • Central & Eastern Cheshire PCT • 300 staff, including hosted ICT services • NHS Western Cheshire • 350 staff, including hosted NW Specialised Commissioning Services & Cheshire Health Agency • Mission – to deliver excellence in People Management • Budget £3.6million, staff – 100 WTE

3. Key Drivers • Shared HR Service already existed between Eastern Cheshire PCT and East Cheshire NHS Trust • Need for payroll contract for these tow organisations • Introduction of ESR across NHS meant a single platform for HR transactions • Absence of a coherent HR Strategy aligned to operational objectives • Cumbersome and outdated HR processes • Very poor levels of staff satisfaction with HR • Inadequate technology not fit for purpose • Challenges facing the Trusts required an HR service that could add value at a strategic level Right people focusing on the right things at the right time

4. The Challenge Multiple Systems Remove complexity Standardise Processes Remove complexity Standardise Processes Implement Common System Remove Complexity Non-Standard Complex Processes Establish new organisation Remove complexity Standardise Processes Implement Common System Centralise transaction processing Western Cheshire East Cheshire Multiple Systems Multiple locations Establish new organisation Remove complexity Standardise Processes Implement Common System Centralise transaction processing Implement e.enabled common system Migrate to Virtual transaction processing Non-Standard Simple Processes Transactional Efficiencies Baseline Multiple Systems Common Systems Multiple Locations Standard Simple Processes Central & Eastern PCT Transactional Efficiencies 20% Standard Simple Processes Common Systems Multiple Locations Standard/ Simple Processes Multiple Locations Transactional Efficiencies 40% Single/ Few Locations Transactional Efficiencies 50% e.enabled system Transactional Efficiencies 60% Standard/ Simple Processes Virtual Locations Transactional Efficiencies 75% Increasing process maturity

5. The Benefits • Shared HR Service • Harmonised and centralised HR services • Dedicated and single point of contact for HR customers • Single employee access portal and data entry • Enhanced Technology platforms • Interfaced systems • HR performance metrics and SLA’s • Enhanced HR reporting • Results • Cost reduction in HR administration • Customer focused HR delivery • Strategic staff re-focused on strategic delivery • Separate HR Departments • HR resources spread across multiple sites. • Processes and Procedures differ by site/business unit. • Employee and Managers deal with different teams for different requests. • Disparate, outdated technology platforms • No inter-related technology systems • Manual and duplicate data entry • Strategic staff performing administrative tasks • Results • Costly, disparate HR functions. • No performance metrics • No customer service focus

6. Challenges Encountered • Diversity of cultures from three organisations • Allocation of resources • Geography/location • Managing Change • Business Continuity • Achieving change in behaviours – customer/business focus • Developing internally – capability to “let go” Decided on a 3 year timetable

7. Year 1 – Building the Foundations - 2007 • Centralisation of transactional admin teams • Bedding in new structures • Managing staff turnover • Standardisation of processes • Introduction of best practice • Development of a Finance Model and introduction of a baseline • Introduction of Electronic Staff Records (ESR) phase 1

8. Year 2 - Embedding & Consolidating - 2008 • Management of payroll contract with SBS • Development of HR Shared Service corporate identity • Reviewing capacity and structures to meet increased demand • Formation of an HR ICT Group • Development of service specifications and SLAs for each “customer” • Establishment of KPIs and quarterly reporting • Wellbeing service introduced to support each customer • People Management and Development Learning modules developed • Incorporated Learning & Development into the centralised HR Administration Service

9. Year 3 – Moving Forward - 2009 • Transfer of staff from C&E Cheshire PCT and NHS Western Cheshire to East Cheshire NHS Trusts acting as Host • Development of Cheshire HR Service business plan • Review of Medical Workforce Service • Implementation of ESR phase 2

10. Year 4 - Transformation through Innovation – 2010+ Customer Benefits • Re-organisation of Cheshire HR • Development of Strategic Business Partners • Introduction of shared HR Consultancy service • Introduction of new technology providing 24*7access to HR information and guidance • Focused dedicated HR and L&D Business partner support for each customer • Tailored coaching support & development • Increased confidence & competence of line managers in people management issues • Reduced costs to customers • Consistent delivery of HR advice

11. Year 4 - Transformation through Innovation – 2010+ Cheshire HR Benefits • Re-organisation of Cheshire HR • Development of Strategic Business Partners • Introduction of shared HR Consultancy service • Introduction of new technology providing 24*7access to HR information and guidance • A united cohesive team focussed on employee relations & policy development • Improved sustainability by reducing the one person dependency risk • Improved career opportunities • More effective line management • Increased job satisfaction • Continuity of cover

12. Assessing Progress • Worked with Peter Reilly, Director HR at IES • NHS NW commissioned IES to develop a world-class HR & OD model to be run annually • Supported by self-assessment methodology and web-based customer survey • In 2010 Cheshire HR showed a positive increase in results : • Out of 36 categories/questions • 27 results better than previous year • 4 results – no change • 29 results better than average for Acute Trusts • Significant decrease in sickness absence • February 2010 : 4.01% • February 2011: 2.54%

13. 2010 Survey Results 62% said that HR was better or much better than in 2008: • Gets basics right – 20% increase • Reliable & easy to get hold of staff - 20% increase • Effective recruitment – 50% increase • Support in times of change – 30% increase • HR staff are expert, well informed and professional – 10% increase • Understanding of employee & business needs – 10% increase • Effective in area of Reward & Recognition – 10% increase • Effective in workforce planning – 30% increase • Help with staff absence & poor performance – 10% above other participating organisations • Good advice given – 25% above other participating organisations • Ensures policies consistently & fairly applied by managers – 20% above other participating organisations

14. Lessons Learnt • Need to understand where each organisation is on the Maturity Map • Set expectations – internally and externally • Identify the low hanging fruit • Prioritise opportunites • Never underestimate the amount of internal change management you will need • Recognise those who will never buy-in to the new way of working and move them out early on • Recognise your key strengths and partner where appropriate • You will need Technology – recognise this and then use it • Engage with your customers at all stages and make them a partner on your journey If I had appreciated how we would benefit I would not have procrastinated at the start

15. Overall Evaluation • More committed relationship between HR and customer organisations • Increased internal benchmarking and associated questioning approach to service delivery • Improved networking and support for HR • More commercial and cost aware attitude to service provision amongst HR staff • Better career opportunities and access to training