Agenda Huron is pleased to work with Stanford University to develop strategies for creating HR Centers of Expertise to improve Human Resources related services and support. The objective of this document is to: Outline our preliminary understanding of engagement objectives Provide an overview of Huron‟s approach Provide an overview of our work plan Introduce the Huron team members Discuss critical issues and dependencies – Key stakeholders and constituents – Communications (pre and post project) – Availability of data and other information2
Engagement Objective Huron will further assess Stanford‟s current approach in delivering HR services and develop recommendations to create HR Centers of Expertise. Objectives: To develop the concept and strategy for three HR Centers of Expertise and achieve operational excellence through robust and centralized services and support. Transaction and Records Management Employee Relations Recruiting and Staffing Support Stanford HR Task Force Recommendations 1. Create “Centers of Expertise” to handle core HR activities (Transaction and Records Management, Employee Relations, Recruiting and Staffing Support, and Job Evaluation and Classification), 2. Shift the HR manager role to strategic partner, 3. Improve the quality of supervisors and flattening the organization, 4. Develop a strategy to improve communications from HR to non-HR staff, 5. Simplify and facilitate the employee management process, and 6. Create more focus on employee development and succession planning. Note: Job Evaluation and Classification to be completed by Towers Watson, as part of a larger compensation project, and will be integrated with the three Centers of Expertise, under the direction of central HR. Huron will leverage the HR Task Force report, along with the implementation challenges identified, to3 develop implementation strategies.
Example Human Resources Processes Building on our previous HR experience, and focusing on the identified three centers, we have identified the following HR functions, that are typical areas for focus. Sample HR Processes Recruiting and Staffing Support Employee Relations Transaction and Records Management Creating effective method to identify Communicating standard and annual Optimizing utilization of current ERP qualified candidates policies and procedures system Maintaining up to date candidates pool Negotiating with collective bargaining Developing common and integrated for campus wide recruiting needs units information systems across HR departments Establishing advertising and marketing Interpreting collective bargaining recruitment plan agreements Ensuring data consistency across campus Configuring job opening template Resolving disputes Authorizing access to available HR data Configuring interview template Providing employee termination support Automating manual processes Establishing screening criteria Providing grievance counseling Standardizing transactional processes Standardized hiring procedures Providing arbitration support Document preservation Designing effective on-boarding Administering Unemployment claims procedures for new employees Enforcing privacy policies Managing formal complaint responses Maintaining consistent and up to date Creating and distributing systematic employee verification procedures Establishing performance evaluation and performance metrics and reports metrics Ensuring compliance to State and Federal hiring standards Policies enforcement We will work with the Steering Committee and subject matter experts to identify key areas of focus that are4 critical to Stanford.
Example Human Resources Organizational Issues Through our data analysis and interviews, we will identify critical campus-wide HR issues specific to Stanford, with which we will use to build our recommendations. Sample Critical Target Concerns: 1 People 4 Organization structure Lack of training Ambiguous authority Ambiguous roles & responsibilities / Distributed responsibility accountability Lack of accountability Lack of appropriate skill sets 5 Process 2 Technology Lack of consistency Unnecessary manual processes Different or lack of central Existing technology not vs. local policies and optimized procedures Lack of focus on customer 3 Metrics service Reporting & metrics Reactive operating availability approaches Stanford’s Executive team will play a pivotal role in setting the tone at the top and enabling behavioral5 change throughout the University.
Human Resources Process Mapping Huron will utilize process mapping, whenever appropriate, to identify areas of inefficiency or redundancy. Illustrative Transaction and Records Management Job Stanford Evaluation Employee and Human Relations Classification* Resources Recruiting and Staffing Support * Not included in Huron‟s scope of work, but will be integrated with other Centers of Expertise, under the direction of central HR. We will work to determine processes within the three core areas, how these processes overlap, and to6 determine the current balance of a given key process between central HR and other units and schools.
Huron’s Approach Huron‟s approach is designed to provide Stanford a detailed understanding of current HR services and recommend changes to improve overall service level. Document and Develop and Pre- Perform Data Deliver Final Evaluate Current Validate Engagement Analysis Recommendations State Recommendations Confirm Project Conduct interviews and Evaluate the efficiency Document and vet Assist in delivering the Scope and Objectives inventory all HR services and effectiveness of recommendations to change management and services include organizational communication efforts Jointly define criteria Obtain an understanding of structure, processes, required for each center that will be used to current state of the HR Identify unique and tasks, activities, measure the project‟s function: organizational common HR service transactions, and Articulate the benefits and success structure, processes, requirements across the performance metrics expectations of changes to tasks, activities, university affected departments, units, Send data request Prioritize and schools transactions, and documents Understand software recommendations, performance metrics Assist in the development of capabilities both including timeline, Schedule interviews Develop current state HR centrally and at local resource needs and a high-level implementation Draft preliminary process maps, as units and schools identified challenges and plan for each of the centers project plan necessary including organization Review budgets and risks structures, staff required, Validate understandings spending, if available Quantify the benefits and broad job descriptions, and with subject matter experts Extract and recommend define expectations of the timelines Identify process new standard business various changes Assist with the development breakdowns and processes governing Evaluate alternative of the governance model for inefficiencies work flow between units operating models the Center of Expertise and the centers /processes and Revise and finalize project Assist in developing service- plan organizational structures level agreements Our approach encompasses the detailed steps required to understand the current operations, and to build7 implementation recommendations for each center.
Preliminary Project Work-plan This 12 week project plan provides an overview of Huron‟s approach and will likely evolve as the team obtains a deeper understanding of the HR related activities. Key Activities Weeks 1-2 Weeks 3-4 Weeks 5-6 Weeks 7-8 Weeks 9-10 Weeks 11-12 Pre-Engagement • Confirm our understanding of the project‟s objectives and jointly define criteria that will be used to measure the project‟s success Steering Committee Meeting • Send data request documents and schedule interviews Huron Deliverable Documents and Evaluate Current State • Kick-off meeting • Conduct Interviews • Reviewing HR Task Force report to identify areas of focus • Gather and review HR related financial and operational data • Draft current process flow charts, if necessary • Gain added insight into Stanford‟s current operations to be used as a foundation for developing functional assessments and recommendations • Finalize project plan Perform Data Analysis and Conduct Additional Interviews • Assess the current state of HR support and services, to provide an understanding of service efficiencies, technical architecture, organizational structure, resource allocation, and employee skill sets • Identify major areas of potential performance improvement and associated enablers Develop and Validate Recommendations • Document and vet final recommendations to include organizational structure, processes, tasks, activities, transactions, and performance metrics • Prepare findings and potential recommendations and gain consensus Deliver Final Recommendations • Deliver final business cases and recommendations • Deliver the change management and communication efforts including potential governance models required for each8 center
Illustrative Sample Project Update Template A project plan will be utilized to track accomplishments and issues as well as communicate interim findings to the Steering Committee. Project HR Center of Expertise Date September 29, 2010 Primary To evaluate integrating all Stanford HR Objective functions into a centralized location. Resource John Doe Project Plan Advisory Team Joe Doe (Core) Jane Doe Project Week Beginning Activities 09-20 09-27 10-04 10-11 10-18 Documents and Evaluate Current Accomplishments State Conducted 4 interviews for the Week Perform Data Analysis and Conduct Additional Interviews Confirmed project scope Develop and Key Activities Held kick-off meeting with the Validate Recommendations steering committee Deliver Final Recommendations Critical Cooperation from local HR Dependencies departments9
Engagement Team Overview John Curry (Managing Director) John will have overall responsibility for the project. John has worked with Huron for almost five years leading projects ranging from incentive-based budgeting, to rationalization of complex IT organizations and library systems, to cost reductions through benchmark analysis and shared services, among many others. Prior to joining Huron, John was Executive Vice President of MIT. Prior roles were: Vice President for Business and Finance at Caltech, Administrative Vice Chancellor and CFO at UCLA, and Vice President for Budget and Planning at USC. His last three positions included responsibility for Human Resources. Loren Mann (Director) Loren will serve as Project Director to ensure product quality as well as provide oversight for fieldwork and analysis. Loren has more than ten years of experience with Higher Education and Non-Profit organizations and has focused primarily with organizational design, operating and capital budget development, strategic analysis and planning, business case development, and financial due diligence. Most recently, he has worked with a large public university with the organizational design and development of their Human Resources department and a large private university in the organizational design and development of their Finance department. Loren holds a Master of Business Administration from the Harvard Business School, a Master of Science in Mechanical Engineering from Rensselaer Polytechnic Institute, and a Bachelor of Science in Mechanical Engineering from the University of Illinois at Champaign-Urbana. Alan Chen (Manager) Alan has 8 years of experience in providing consulting and business advisory services to universities, hospitals, mission-driven organizations and corporate companies. Most recently, he worked with Loren Mann at a large public university system in the Midwest to redesign its Human Resources, Payroll, and Benefits departments that serviced approximately 30,000 employees. Alan’s other focuses include financial modeling, financial analysis, strategy development, and process improvement. He is a Certified Public Accountant and has significant knowledge of the financial reporting and general business processes. Mariam Khalife (Associate) Mariam assists leading universities in enhancing operational efficiencies, identifying and implementing process improvements, and developing strategic plans. Mariam has extensive experience providing data analysis, benchmarking, and business case development. Mariam’s recent engagement experience includes conducting an overall assessment of the organizational structure for a leading private university in the Midwest. She received her MBA and bachelors degree from the University of Michigan.10
Issues for Consideration Huron and Stanford HR will work together to address potential issues and concerns to ensure the project‟s success. Which stakeholders should be brought into the process? What upfront communications are necessary to engage stakeholders and to obviate roadblocks? What is the right balance between Stanford and Huron leadership of this project? What roles might members of the Steering Committee play beyond “steering”? What communications methods should be considered to convey project purpose, progress and Huron‟s recommendations? If we decide to pilot some of our recommendations, which organizations/units are likely to be early adapters/pilot groups? Are there anticipated pockets of resistance to new approaches to HR and why? What are some of the major „sticky‟ issues with the local HR departments? How should issues/challenges that arise be managed between Huron and the project sponsors and managers?11