Learn how non-profit human resource departments can become a strategic differentiator for organizations by utilizing human capital management software to increase efficiency and automation. This presentation is especially beneficial for the health and human services industry.

1. Erik Marsh, CEO
DATIS
emarsh@datis.com
MHCA SPRING MAY 2014
STRATEGIC HUMAN
CAPITAL MANAGEMENT
WHY HR SHOULD BE ON EVERY CEO’s AGENDA
Mary Ruiz, CEO
Manatee Glens
Mary.Ruiz@manateeglens.org
Deborah Kostroun, COO
Manatee Glens
Deborah.Kostroun@manateeglens.org

2. OPERATIONS vs. STRATEGY

3. WHAT ARE THE EXPERTS SAYING?

4. WHAT ARE THE EXPERTS SAYING?

5. IS HR IRRELEVANT?
“Indeed, many human capital departments are at risk of
becoming irrelevant. There is no shortage of indicators. For a
start, the function is still typically referred to as “HR”—a sign
that their role as stewards of prized capital is not yet accepted.
“HR is a contaminated brand,” management thinker Charles
Handy told HR Magazine last year.”
–McKinsey State of Human Capital 2012

6. HOW DO CEOs VIEW HR?
“Study after study cites chief executives’ lukewarm views about
the function. Less-than-favorable descriptors such as “box-
ticking” and “detached from reality” are still used as regular
criticisms of the function.”
–McKinsey State of Human Capital 2012

7. HR vs HCM – What is the difference?
Traditional HR systems
HR systems of records, which
manage information about
employees
Human Capital Management
A combination of software
and services that aim to
attract, develop, and retain
talented professionals.

8. A tough climb ahead!

9. WHAT ARE THE EXPERTS SAYING?
"In today's global marketplace, particularly in such a hostile and
unpredictable business environment, it is imperative that human
capital executives and departments place themselves at the
heart of strategy development conversations," said Rebecca L.
Ray , Ph.D., Senior Vice President of Human Capital, The Conference
Board. "Human Capital functions need to break out of their comfort
zones, take risks and become a true business partner."

10. WHAT ARE THE EXPERTS SAYING?
"Right now, human capital departments are struggling to deal with a
talent shortage, adapt to a changing workforce, and develop new,
flexible working models to meet the needs of tomorrow's workers,"
said Bryan Hancock , a Partner in McKinsey & Company's Atlanta
office. "Human capital departments and executives are also facing
a real struggle to make a strategic difference in their
organizations. Only by partnering with other parts of the
organization will they be able to address critical business issues
with long-term, systemic impact on human capital.”

11. HR TRANSFORMATION:
A NEW MODEL FOR HR

12. BE BOLD IN 2014
Drive transformational change and restructure HR teams
• Many of the HR structures and systems get in the way
Tackle the basics – Cover “business-critical” support processes
• Implement staffing, payroll, compliance training, performance management, labor
relations, compensation planning
• Automate, streamline and outsource the “non-strategic” parts operations— and
they provide a laser-focus on high-value areas.
Become a Talent Management Organization
• Programs like strategic talent acquisition, workforce planning and intelligence,
culture (learning culture, engagement and accountability), new models of
leadership and management, and programs to support business agility and
innovation are all important to HR.
SOURCE: Predictions for 2013, January 2013, Josh Bersin, Principal and Founder,
Bersin by Deloitte Deloitte Consulting, LLP

13. HUMAN CAPITAL TRENDS 2014
“… early conversations often include the CFO, where the
opportunity exists to begin ‘thinking like an economist’.“
SOURCE: Deloitte, Human Capital Trends 2013

14. WHERE IS THE ROI IN HCM?

15. Opportunities for Operational Excellence
• HUMAN CAPITAL MANAGEMENT
• RECRUITING MANAGEMENT
• HUMAN RESOURCES
• POSITION CONTROL
• NEW HIRE ONBOARDING
• SELF-SERVICE – EMPLOYEE/
MANAGER
• BENEFITS ADMINISTRATION
• TIME & ATTENDANCE
• PAYROLL
• TALENT MANAGEMENT
• CREDENTIAL MANAGEMENT
• GOAL AND PERFORMANCE
MANAGEMENT
• LEARNING MANAGEMENT
• WORKFORCE ANALYTICS

17. RESOURCES
• The State of Human Capital Management 2012,
McKinsey & Company / The Conference Board
• Human Capital Trends 2013, Deloitte
• Predictions for 2013: Corporate Talent, Leadership and
HR–Nexus of Global Forces Drives New Models for
Talent, Josh Bersin, January 2013, Deloitte Bersin
THANK YOU

18. ACHIEVING OPERATIONAL
EXCELLENCE THROUGH HR
Mary Ruiz, CEO, Manatee Glens
Mary.Ruiz@Manatee Glens

19. HOW DOES IT LOOK OUT THERE?
• Back Office/HR Centric
• Compliance/Process Driven
• Complicated & Hierarchical
• Burdensome to Staff
• Lack of Scalability
• Underinvestment in
Technology

20. HCM FUNCTIONS vs BUSINESS VALUE
Business Strategy
Talent Management and
Decision Support
Tactical Support
Recruitment, Compliance,
Employee Relations
Transactions
Payroll, Benefits, Records

21. BUSINESS-DRIVEN HCM:
LESSONS FROM IT
• 3-5 Year Time Horizon
• Anticipates Threats and
Opportunities
• Aligns Workforce and
Culture to Strategy
• Drives Value and
Business Performance

22. TRADITIONAL BUSINESS DRIVERS
• Productivity
• Volume
• Payer Mix
• Cost
• Workforce
• Accounts Receivable

23. EVOLVING BUSINESS DRIVERS
• Growth/Mergers
• New Competitors/
Collaborators
• Access
• Customer Experience
• Operational Excellence
• Pay for Performance

24. • Audit and benchmark current performance for gaps
• Map changes needed to execute business vision
Define Required
HCM Capabilities
• HCM structure and scope of services
• Staffing, Outsourcing, Automation, Process
Redesign, Analytics
Design End-State
HCM
• Analyze current costs and savings
• Develop HCM financial model and metrics
Develop Should-Cost
Financial Model
• Identify key business priorities
• Develop HCM strategic milestones and
performance metrics
Create Go Forward
HCM Road Map
ELEMENTS OF AN HCM
STRATEGIC PLAN

25. MENU: HCM TACTICS
FOR BUSINESS RESULTS
• Scales to Growth Strategy
• Curates Culture of Agility,
Flexibility and Innovation
• Prioritizes HCM Projects Based
on Value to Business
• Aligns HCM Timelines with
Business Strategy
• Develops forecasts and analytics

26. MENU: HCM TACTICS
FOR BUSINESS RESULTS
• Identifies Quick Wins for Staff
and Business
• Promotes business
accountability with metrics
• Proposes staffing solutions to
lower cost and promote
innovation
• Suggests improvements to key
business processes
• Nurtures new program and
product launches

27. CEO CHECKLIST FOR HCM
• Recruit HCM staff of the
future
• Bring HCM to the strategy
table
• Develop HCM Strategic
Plan for Business Results
• Invest in HCM IT and
reduce total cost of
ownership for HCM
• Design and scale HCM for
business transformation

28. STRATEGIC EXECUTION AT
MANATEE GLENS
Deborah Kostroun, COO, Manatee Glens
Deborah.Kostroun@manateeglens.org

29. Increasing Top Line Revenue
• ABILITY TO TRACK PAY FOR PERFORMANCE
• QUANTIFY STRATEGIC GOALS, INCENTIVES AND REVENUE
• CONTROLLING REVENUE GENERATING VACANCIES WITH OVERHIRES

30. DECREASE EXPENSES
• CENTRALIZED CONTROL OF SCHEDULING
• MANAGING OVER-TIME/PRN COSTS

31. ELIMINATE PAPERWORK
WASTE & MISTAKES
• APPLICANT PROCESS ON LINE ~ ABLE TO MANAGE CHAIN FROM START TO
END THROUGH TECHNOLOGY BY MULTIPLE USERS
• ONLY QUALIFIED CANDIDATES GET THROUGH
• QUICKER REVIEW BY MANAGERS
• APPLICATION PROCESS MEETS ALL COMPLIANCE STANDARDS
• AUTOMATED TIMESHEETS SAVE HR 3-DAYS STAFF PROCESSING TIME

32. • AUTOMATED EVALUATIONS SAVE SUPERVISORS HOURS
• DIRECTOR OF NURSING HAS OVER 50 EVALUATIONS ~ NOW IN COMPLIANCE ~
SAVED APPROXIMATELY $12,000
• MANAGERS FREED-UP BY BEING ABLE TO ACCESS HR FUNCTIONALITY FROM
HOME OR MOBILE APP WHICH ALLOWS FOR FLEXIBLE WORK TIME
ELIMINATE PAPERWORK
WASTE & MISTAKES

33. INCREASE EFFICIENCIES ACCURACY
AND COMPLIANCE
• POSITIONS TIED TO BUDGETED FTE’s, NO HIRE, OR JOB CHANGE WITHOUT
APPROVAL UP THE CHAIN
• NO HARD COPY PAPER NEEDED
• JOB CODES CONTROL POSITIONS ROLE, INSURES COMPLIANCE
• ABILITY TO CLASSIFY MOST STAFF AS SALARIED NON EXEMPT, CONTROLS FLSA ISSUES
• AUTOMATED REPORTING FLAGS
• OVERTIME ISSUES
• AUTOMATE SYSTEM
• HOURS WORKED FOR BENEFITS ELIGIBILITY (ACA) MONITORED THROUGH AUTOMATED SYSTEM

34. FAIR LABOR STANDARDS ACT CONTROLS
• ORGANIZATION SELECTS EXEMPT/NON-EXEMPT CATEGORIES, FOLLOWS
FAIR LABOR STANDARDS ACT (FLSA) GUIDELINES
• JOB CODES ARE CLASSIFIED, NOT PEOPLE
• MANATEE GLENS’ HAS CHOSEN TO ONLY CATEGORIZE MANAGEMENT AS
EXEMPT, OTHERS HOURLY
• CLINIC AND SUPPORT STAFF “PUNCH IN”
• OVERTIME REPORTS GENERATED BY SYSTEM AND MANAGED BY PROGRAMS
• ALLOWS TIGHT MANAGEMENT OF HOURS WORKED COMPARED TO
PRODUCTIVITY WHILE STILL IN MAXIMUM COMPLIANCE WITH FLSA.

35. INCREASE EFFICIENCIES ACCURACY
AND COMPLIANCE

36. MANAGING THE STRATEGIC FUTURE
THROUGH CAPITATED MANAGEMENT
• REVIEW STRATEGIC DIRECTIONS (I.E. CORPORATE OBJECTIVES)
• REVIEW HIRING/RECRUITING PRACTICES FROM HR REPORTING
SYSTEM (WORKFORCE ANALYTICS)
• TRACK COMPETITIVE GOAL RATE BASED ON COMBINATION OF
MARKET, NEEDS AND TRENDS
• INTEGRATE STRATEGIC TRAINING NEEDS INTO AUTOMATED STAFF
DEVELOPMENT SYSTEM