Background

A large US healthcare nonprofit organization experienced significant growth through a series of acquisitions. While front-office, patient-facing services were successfully integrated, HR services remained decentralized. The organization faced challenges with inconsistent employee experiences and suboptimal HR costs due to varying HR policies, programs, and procedures across regions.

Approach

To address the client’s challenges and transform their HR function, our consulting team adopted the following approach:

1. Collaborative Design of HR Service Delivery Model: We worked closely with HR leaders to design a new HR service delivery model. The objective was to improve the efficiency and effectiveness of HR operations while achieving significant cost reductions.
2. Streamlining and Centralizing Transactional HR Services: After the design phase, the client re-engaged our firm to assist in streamlining, standardizing, and centralizing transactional HR services into a new HR Shared Services Center. This consolidation aimed to improve operational efficiency and consistency.
3. Program Management: In addition to the design and implementation of the new HR service delivery model and HR Shared Services Center, our consulting team provided program management support. We ensured that the transformation initiative stayed on track, coordinated various workstreams, managed timelines and dependencies, and facilitated effective communication and collaboration among stakeholders.

Results

Through our HR transformation initiative, the client achieved the following outcomes:

1. Capacity Reallocation: The establishment of a new HR Service Center allowed for the freeing up of significant capacity for HR business partners and Centers of Excellence. This reallocation enabled them to focus on value-add, talent-centric HR services and programs that directly impact the organization’s strategic objectives.
2. Decreased HR Operating Costs: The overall project resulted in a 25% decrease in HR operating costs. By streamlining and centralizing transactional HR services, the organization achieved cost efficiencies while maintaining consistent and reliable HR support.
3. Enhanced Talent Management and Employee Experience: The HR transformation efforts resulted in significantly enhanced talent management programs and an improved employee experience. Standardized policies and procedures across regions created consistency and fairness for employees, fostering a positive work environment.
4. Successful Program Management: Our program management support ensured the successful execution of the HR transformation initiative. We effectively coordinated various workstreams, managed timelines and dependencies, and facilitated communication and collaboration among stakeholders. As a result, the transformation was implemented smoothly, on time, and within budget, providing a strong foundation for ongoing HR operations.