Human Resources Administrative Review

Human ResourcesAdministrative ReviewConceptual RecommendationsUniversity of Maine SystemMay 2013

Meeting the Human Resource Needs of UMS Now and in the FutureMay 24, 2013 Three members of the Review Team are here today to add campus perspective

Judy Ryan, Associate VP for HR at UMSheri Stevens, Executive Director of Administrative Services, UMAJennie Savage, HR Manager, UMPI Edit for names for appropriate group

In order to focus on our recommendations, Ill go very quickly through the first ten slides. They are there for your background information.1

Review TeamSheri Stevens, UMAJudy Ryan, UMMartha Freeman, USMJennie Savage, UMPITracy Bigney, UMSCindy Huggins and Becky Wyke, SponsorTamara Mitchell, OE PartnerLaurie Gardner, UMF (joined team for report writing)

22Status & TimelineConceptual plan under review by Steering Committee, Presidents, Shared Services Advisory Council, Chief Academic Officers, Board of Trustees, Campuses May & JuneTeam completing financial analysisPlan posted on Mission Excellence Website and Feedback Survey open: May 24 - June 28Scheduled for BOT action July 153Scope of HR ReviewHuman ResourcesTalent Management (hiring, managing, developing)Total Rewards (compensation and benefits)HR Information and ReportingInstitutional Leadership and PlanningEquity and Diversity Labor and Employee RelationsOrganizational DevelopmentPayroll

4Talk about what it is not student employment, student AA/EO/Title IX..Payroll includes student employees, but not student employment4HR ServicesHuman Resources work can be seen in these categories:Transactional repeated, standardizedTactical/customer service high touchStrategicAlmost all current HR/EO services are mission critical or legally mandatedMany should do HR services are performed only to a limited extent5Transactional standardized and repeatable, e.g. benefits administration and payrollTactical/customer service = working with employee or managerStrategic aligning workforce with strategic plan of institution; e.g. Bend the Trend

Categorized each function as mission critical/mandatory; should do; would be niceAlmost all we do now is mission critical; the should do is only done to a limited extent5Criteria for successInteroperable- having depth not redundancyCompetent-quality customer service, high level of professionalismConsistent, timely and clear - in data, decision making and policies.Savings and/or efficiencies

6Depth = bench strength; not so dependent on single employee always afraid, what if something happens to _____?6

Input into analysis phaseDiscussions with all campus and system office leadership teamsDiscussions with HR/EO staff at each campus and system officeConsultant workshops77Common Themes of InputStrong support for the role of local HR on all campuses and system officeNeed for local knowledgeStrong recognition that strategic human resource management is important but is currently a gap in HR serviceGenerally broad support for improving data management/technological solutions

8Strategic human resource management aligning employees with institutional strategic plan through practices such as training, development, planning, succession management8Leadership InputNearly all current HR services are essential servicesUniversally recognized issues with decision making process (lack of clarity or accountability) across the organizationCurrently recognized gaps are in employee development and training and lack of formal inclusion of campus leadership in labor relations strategy and communications Scalability is important differences may be due to campus size or rural vs. more urban settings

9Scalability also different missions; one size does not fit all9

HR/EO staff inputNeed an intentional communication plan and shared expectations (clarity) between system office and campuses More HRIS authority should be decentralizedNeed better reporting, integration of databasesWould like to see improved training for HR staff10Intentional communication plan currently staff feel frustration that we are not all pulling in the same direction

HRIS authority more autonomy in use of MaineStreet10Sibson Consulting AssistanceOver the shoulder assistance to review Teams workIdentify best practices and benchmarksLed workshops to explore organizational designs for HRAbout 20 employees from HR/EO, IT, Finance from across the System participated in three workshops11The RT had already completed a lot of work when Sibson joined us in January11Impact of Human ResourcesHR function About 83 FTE employees in HR/EO departmentsTotal cost $7 millionUMS Human Resources5,700 faculty and staff (human resources) Total cost about $350 million (compensation and benefits); 73% of E and G budget1212UMS Human Resources and HR Function 13

HR has the ability to impact the effectiveness of all human resources; the HR function is only a small piece of this. It would be short sighted to only look at savings within the HR function. This led us to expand the scope of the review. This is not unlike Procurement looking both at the administrative costs and the impact they can have on total spend for goods and services.

$430 Million is cost of human resources in total budget, not just E and G.13Expanded Scope of ReviewMake the HR function more efficient

while investing in strategic HR management

to affect the overall effectiveness and productivity of UMS human resources

14This realization led us to expand the scope of our review14Overarching Recommendation A New ParadigmStrategic Human Resource Management (SHR) to leverage the total human resource asset. Strategic Human Resource management is recognizing an organizations human capital as being the principal source of the organizations innovation and competitive advantage. In doing so, the focus shifts from: How do we get our employees to do a particular function or task? To How do we best engage and inspire our workforce for our mutual benefit?

15There are three parts of the new paradigm: Strategic HR, employee engagement and optimal service delivery

Strategic human resource management = aligning human resources (people) with the institutions strategic goals and operating in a highly efficient, effective manner.

Most of what HR does now is mandatory or mission critical due to policy, contract and law. There are other aspects of HR that should be done, and we currently fulfill these roles in a fledgling way. We need to put more emphasis on the strategic aspects of HR.

15New ParadigmSHR Key practices:institutional planning, talent management (finding, attracting, nurturing and developing employee talent, proper positioning of individuals within the organization, and off-boarding), alignment (aligning individual, group and organizational goals), culture/work environment management (encouraging employee engagement and decision-making, morale, retention), and organizational development (structures, human capacity planning, efficiency and effectiveness)16New ParadigmEmployee engagementUMS success depends on faculty and staff engaged in doing our best work to fulfill the universities missionsDrive decisions to the lowest appropriate level Employee development to provide skills and abilitiesIncrease authority and accountability of employees and managersOptimal service deliveryDifferent HR services require different delivery mechanismsCustomer/Client Focused17Employee development gives employees the skills and abilities to make the decisions and perform at a higher level with less oversight

More on service delivery modalities later17What does the new paradigm require?Long-term culture changeEngagement means leaders delegate more decisions and manage through employee accountability and audit mechanismsService orientationUp front investment in staff and technologyEducation of HR staff and administrative leadership

18Those reviewing and approving this report need to be aware of these aspects of the paradigm. This is what UMS is committing to.18The Plan to achieve this1. Leadership team representing all universities and the system officeTeam of fourSystem Chief HR OfficerSuper 6 HR leader for UMA, UMF, UMFK,UMM, UMPI and SWSUM Associate VP for HRUSM Chief HR Officer19Our specific recommendations constitute a plan to achieve the new paradigm. There are three major pieces of the plan:Leadership teamHR TransitionsOptimal service delivery

Leadership TeamSuper 6 provides the executive HR leadership for the 6 entities

This will improve decision making in HR19HR Leadership TeamClear authority for UMS HR policy, program, practices and budgetImprove decision making and consistency

Venue to discuss and balance tension between campus perspective and system-nessBetter define areas of responsibility, accountability for system office, campuses, shared services

Multi-Campus PositionStrong equal voice for smaller/mid-sized institutionsStrategic HR leadership and expertise to supplement and support campus HR resources20HR Leadership Team21

Team!!21Staffing based on competenciesCompetencies will be defined for all positionsKnowledge, skills, abilities, self-image, traits, mindsets, feeling, and ways of thinking (Society for HR Management)Starting with the Leadership Team the selection process will ensure that employees have the competencies for the positionsCommitment to: competency based staffing, providing opportunities for current employees, employee development, and limiting workforce disruption22The Plan2. Transition the HR functionA. HR leaders are business partners with chancellor and presidents

B. Educate HR staff, administration and leadership about strategic HR and service orientation

23This slide is just a few words, but a big, important effort.

We recommend that the HR leader on each campus report to the president/chancellor.

Education about strategic HR will prepare HR to provide the services and will prepare leadership to expect and demand them.23The Plan 3. Optimal service delivery differentiated and client focusedA. Critical role of HR at each campusHigh touch, requires local knowledgeAdvising on personnel policies and labor relations Assisting with innovation and group processDesigning, training and auditing performance managementSupporting employeesEmployee, manager, leadership and organization development

24Three service modalities to match the types of work we do: Local HR, shared expertise and shared services

Dont read roles24The Plan3. Optimal service delivery differentiated and client focusedB. Share ExpertiseNot every campus can or needs to have high level expertise in every area of HRStaff at larger campuses and system office with specialized knowledge share with smaller campusesPilot a Shared Expertise Team and if successful, expand to other areasAreas to be considered: Benefits and Wellness; Organization Development/Communication; Labor Relations; Equal Opportunity/Diversity; Compensation 25Share expertise to get away from haves and have nots

Shared Expertise Team = SET

Dont read text25The Plan3. Optimal service delivery - differentiated and client focusedC. Shared services for transactional workRepeated, standardized workBuild on Employee Benefits Center (EBC)After EBC is transitioned and enhanced, add payroll, aspects of recruiting, and data entryCentralized management; co-located2626The Plan3. Optimal Service Delivery - differentiated and client focusedD. Process ImprovementEmploy Lean process improvement to HREliminate unneeded steps and rework; decision making to lowest level of appropriate authorityHR processes affect all departments; savings are not just in HREstimate savings of 10 16%Expand to all other areas after HR27In addition to the three service delivery modalities there are three aspects of how we perform work to be client focused: process improvement, technology and 360 feedback27The PlanOptimal Service Delivery - differentiated and client focusedE. Invest in technology and IT supportIncreased IT support and increased capacity within HR to manage technology ultimately 2 positions in HR (replacement headcount, not new) and 1 in ITTechnology needs will be assessed using the standard business case model and phased in as projects are approved and pilot projects demonstrate successCase managementApplicant tracking, e-recruitmentImaging/Document ManagementWorkflow Expanded employee and manager self service

28Expanding use of technology will help us to be more efficient. HR was the first area to implement PeopleSoft 10 years ago. We now need to catch up in adding other technologies to out work.

Don t read text

Imaging electronic personnel filesCase management shared services centerKnowledge center allow employees to get info specific to their situation when they need itDate warehouse important for reporting and institutional information on which to base decisions

28The PlanOptimal Service Delivery differentiated and client focusedE. Invest in technology and IT supportMedium and longer term considerations may includeLearning Management SystemPerformance managementPortal with knowledge centerData warehouseF. Use 360 feedback For work groups and individual leadersFormulate action plans to address areas of improvement2929The Plan4. Staged investment and implementation to demonstrate success of the new paradigmForm & develop Management TeamDevelop full implementation plan for approvalLead and assess pilotsPilot Lean-HE process improvement in benefits and recruitmentPilot shared service center: transition and enhance Employee Benefits Center (with technology investment)Begin education and transition to strategic HR

Future phases subject to approval of implementation plan and business case review for additional technology investments30Staged implementation gives us the opportunity to demonstrate the success of these broad changes. We will submit the full implementation plan and experience of the pilots to the Board for approval to go ahead with the rest of the work. Technology investments will be subject to the normal SSAC business case approval process.30Financial ImpactInvestment in specialized staff and technologyPilot projects will be initiated to demonstrate the value of the new paradigm and service delivery modelsFull implementation plan to be approved by Board of TrusteesFuture investments subject to management approvalSavings in FTE as technology and business process redesign are fully deployedFTE in HR/EO function reduces from 83 to 74 (subject to appropriate investments)Savings make it possible to invest in SHR at relatively little added cost over time

31UP front investment in Super 6 and technology for pilots. FTE reductions cant occur until technology is in place, so there is a lag between the investment in technology and the savings in FTE. 31Invest in Strategic HR to Gain Longer Term Savings Expand Lean process outside HR to create savings in all administrative areasImproved management by Leadership TeamConsistencyControlling costs administrative, benefitsImproved Engagement and Decision-MakingImproved dialog with bargaining agentsImproved communication with employeesImproved service to students and the State of MaineInvestment is required to create longer term savings for strategic, core mission priorities

3232AssessmentMetrics and assessment to be spelled out in Implementation Plan360 feedbackHR workgroupsLeadership TeamIndividual leadersFTE reduction in HRDocumentation of Lean process resultsAnnual assessment by Presidents Council and SSAC

33Ask Team Members to add their campus perspective or other thoughts.33ImplementationPreliminary ImplementationDefine and fill the Leadership Team positionsInitiate pilot projectsAssess pilotsFull implementation plan subject to approval by Board of TrusteesFuture investments and projects subject to management approval3434Feedback ReminderReport and survey are available on the Mission Excellence website: https://mycampus.maine.edu/group/mycampus/think-mission-excellence

Survey Period: May 24 June 2835Timeline ReminderVetting process by Steering Committee, Presidents, Shared Services Advisory Council, Board Finance and Facilities Committee May 1 May 16Roll out to HR/EO staff after May 8Board of Trustees SHR discussion - May 20Seek feedback from University community May 22 June 28Board of Trustees action July 15

3636Reactions and Questions3737