Olathe Health System implemented an integrated online job description and performance review system to improve HR operations and increase efficiencies. The system standardized processes, reduced paperwork, and allowed managers easier access to review materials. An analysis estimated the system would save over $14,000 annually in costs through eliminating paper and printing. It was projected to pay for itself within 2 years. Initial user feedback was positive about the paperless and automated aspects that saved time.

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

6. New Job Description/Review Template

13. ROI Calculations - Assumptions Number of employees 2,475 Number Assigned Dir’s & up 1,819 Number Assigned to Mgr’s 584 Total 2,475 Total 2,475 Copies (Mgr, Employee, HR) 3 Pages per 561 Evaluations 6 Average pages per evaluation 8 # Hospital employees 1,989 Minutes to complete current evaluation 60 Minutes to complete new evaluation 40

14. ROI Calculation – Current Annual Cost Item Ea. Amount Paper – 1 sheet $0.035 $2,079.00 Toner – 1 print $0.035 $2,079.00 Hard Costs Total $4,158.00 Dir’s and up cost to complete per minute $0.99 $112,854.88 Mgr’s cost to complete per minute $0.59 $20,807.92 Entering per minute $0.48 $1,188.00 Filing per minute $0.34 $841.50 561 Validation printing $0.07 $835.38 561 Validation Filing $0.34 $676.26 Soft Costs Total $137,203.94 Total Current Annual Cost $141,361.94

15. ROI Calculation – New Annual Cost Item Ea. Amount Paper – 1 sheet $0.0 $0 Toner – 1 print $0.0 $0 Software Subscription $36,000 $36,000 Hard Costs Total $36,000.00 Dir’s and up cost to complete per minute $0.99 $75,236.59 Mgr’s cost to complete per minute $0.59 $13,782.40 Entering per minute $0 $0 Filing per minute $0 $0 561 Validation printing $0 $0 561 Validation Filing $0 $0 Soft Costs Total $89,018.99 Total New Annual Cost $125,018.99

16. ROI Calculation Item Amount Current Annual Costs $141,361.94 New Annual Costs $125,018.99 Expected Annual Savings (with added capabilities) $14,831.31 ROI Calculation - $14,831.31 annual total cost reductions multiplied by the term then divided by a $35,000 implementation fee (no discounting for net present value) Payback period 28 months 3-year ROI 127% 5-year ROI 212%

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

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

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

36. Questions for the Panelists?

38. Thank You