© 2011 HR TMS, Inc. All Rights Reserved Achieving ROI with Integrated Job Descriptions and Performance Reviews Improving HR Operations through Agile Software: The Olathe Health System Story November 3, 2011

© 2011 HR TMS, Inc. All Rights Reserved Olathe Health System, Inc. Located in the Kansas City Metro Area Two Acute Care Hospitals Over 30 Primary Care and Specialty Clinics Over 2,500 Employees Over 600 Job Descriptions

© 2011 HR TMS, Inc. All Rights Reserved Business Problems Word Documents Scoring Methodology Inconsistency Compliance Historical Versions No Reporting Capabilities

© 2011 HR TMS, Inc. All Rights Reserved Identifying Needs and Areas for Improvement at Olathe We believed we could benefit by integrating Performance Reviews with Job Descriptions and bringing them online Formed a steering committee to evaluate the situation and research solutions

© 2011 HR TMS, Inc. All Rights Reserved Steering Committee Research/Solutions Designed a new job description & performance review template and created an enhanced scoring system

© 2011 HR TMS, Inc. All Rights Reserved New Job Description/Review Template

© 2011 HR TMS, Inc. All Rights Reserved Steering Committee Research/Solutions Researched options for moving to an online tool – Cost savings and increased efficiencies were key to investing in an online system – Created a justification case

© 2011 HR TMS, Inc. All Rights Reserved Steering Committee Research/Solutions Identified – Short term opportunities for improvement – Long term objectives *Management had concerns about employees that didn’t have routine access to a computer (e.g. Nutritional Care, etc.)

© 2011 HR TMS, Inc. All Rights Reserved Short-term Opportunities Job Descriptions Difficult to update – Changing Company Objectives would result in editing over 600 Word documents Too long – Some jobs had over 23 measures Inconsistent language No historical versions Performance Reviews Paper process Incomplete reviews 90-day Review different from Annual Review No ability to track employee acknowledgements, e.g. confidentiality statements, etc.

© 2011 HR TMS, Inc. All Rights Reserved Long-term Objectives Job Descriptions Better able to meet Joint Commission recommendations and internal quality through online integration Create and sustain a high quality JD database – Thorough – Consistent – Consolidated Performance Reviews Increase Performance Review timeliness and thoroughness by making the process easier Drive a consistent scoring process throughout the organization Improve tracking of corporate and position- specific requirements such as JD sign-off, certifications, etc.

© 2011 HR TMS, Inc. All Rights Reserved The Search for a Solution Initial results of our research into Talent Management products on the market – Inflexible – unable to easily adopt our newly- developed templates and processes – Overpriced – costs were out of bounds for our foreseeable budgets Found HR TMS and proceeded to pursue implementing our solution

© 2011 HR TMS, Inc. All Rights Reserved Solution A cost analysis was completed to determine the ROI *Soft and hard costs were both considered in predicting the total cost savings

© 2011 HR TMS, Inc. All Rights Reserved ROI Calculations - Assumptions Number of employees2,475Number Assigned Dir’s & up1,819 Number Assigned to Mgr’s584 Total2,475Total2,475 Copies (Mgr, Employee, HR)3Pages per 561 Evaluations6 Average pages per evaluation8# Hospital employees1,989 Minutes to complete current evaluation 60 Minutes to complete new evaluation 40

© 2011 HR TMS, Inc. All Rights Reserved ROI Calculation – Current Annual Cost ItemEa.Amount Paper – 1 sheet$0.035$2, Toner – 1 print$0.035$2, Hard Costs Total$4, Dir’s and up cost to complete per minute$0.99$112, Mgr’s cost to complete per minute$0.59$20, Entering per minute$0.48$1, Filing per minute$0.34$ Validation printing$0.07$ Validation Filing$0.34$ Soft Costs Total$137, Total Current Annual Cost$141,361.94

© 2011 HR TMS, Inc. All Rights Reserved ROI Calculation – New Annual Cost ItemEa.Amount Paper – 1 sheet$0.0$0 Toner – 1 print$0.0$0 Software Subscription$36,000 Hard Costs Total$36, Dir’s and up cost to complete per minute$0.99$75, Mgr’s cost to complete per minute$0.59$13, Entering per minute$0 Filing per minute$0 561 Validation printing$0 561 Validation Filing$0 Soft Costs Total$89, Total New Annual Cost$125,018.99

© 2011 HR TMS, Inc. All Rights Reserved ROI Calculation ItemAmount Current Annual Costs$141, New Annual Costs$125, Expected Annual Savings (with added capabilities)$14, ROI Calculation - $14, annual total cost reductions multiplied by the term then divided by a $35,000 implementation fee (no discounting for net present value) Payback period28 months 3-year ROI127% 5-year ROI212%

© 2011 HR TMS, Inc. All Rights Reserved Non-quantifiable Benefits Zero inter-office mail Managers time regarding followup of signatures & additional copies Ability to set personal goals and work toward career-pathing

© 2011 HR TMS, Inc. All Rights Reserved Non-quantifiable Benefits Easy anytime access to historical information Easily reports non-completions of performance reviews and 561 evaluations Unlimited ability to create new forms to streamline any tracking process

© 2011 HR TMS, Inc. All Rights Reserved Solution Based on estimated cost savings, management made the decision to purchase both Job Description Management and Performance Review software to meet our business needs *They also like the fact this solution would benefit all employees, not just clinical or admin The final phase will be to add Compensation software in the near future

© 2011 HR TMS, Inc. All Rights Reserved Implementing the Solution With one HR person working consistently on the implementation, it took approximately 3 months to design and configure the system and migrate our 600+ job descriptions We did meet our June 1, 2011 go-live date IT resource requirements were minimal (about 20 hours total time)

© 2011 HR TMS, Inc. All Rights Reserved Implementing the Solution Prior to go-live, HR conducted four 45-minute “Lunch & Learn” training sessions for supervisors and above HR also developed short instructional videos and placed them on the company intranet

© 2011 HR TMS, Inc. All Rights Reserved Implementing the Solution – Lessons Learned Had to field lots of questions from Managers who did not attend training or watch videos *Would suggest these to have been mandatory! *Would allocate at least two additional weeks to have fine-tuned the training and offered additional sessions

© 2011 HR TMS, Inc. All Rights Reserved System Benefits – Job Descriptions Consistent language – Position and physical requirements Organization-wide and Departmental Duties/Competencies Position/Unit Specific Duties/Competencies

© 2011 HR TMS, Inc. All Rights Reserved Reusable Reference Job Descriptions System Benefits – Job Descriptions Ability to create reference (re-usable) job descriptions that apply to many jobs: Registered Nurse in Surgery vs. ER

© 2011 HR TMS, Inc. All Rights Reserved Accurate Up to Date Job Descriptions System Benefits – Job Descriptions Enlist Managers to collaborate, see/approve all changed items

© 2011 HR TMS, Inc. All Rights Reserved Flexible Tracking of Qualifications System Benefits – Job Descriptions Enlist Managers to collaborate, see/approve all changed items

© 2011 HR TMS, Inc. All Rights Reserved Online/Printed JDs Matched our Template System Benefits – Job Descriptions

© 2011 HR TMS, Inc. All Rights Reserved System Benefits – Performance Reviews No paper Consistent scoring Auto-calculation of scores Access from home HR’s ability to track status of all reviews

© 2011 HR TMS, Inc. All Rights Reserved Job Descriptions Automatically “Ripple Through” to the Performance Review System Benefits – Performance Reviews

© 2011 HR TMS, Inc. All Rights Reserved Compliance – View/Sign off on Job Description/Acknowledgements System Benefits – Performance Reviews

© 2011 HR TMS, Inc. All Rights Reserved Reporting System Benefits – Performance Reviews Reporting tools that allow you to see all aspects at a glance. Aids in assuring Joint Commission requirements are being met

© 2011 HR TMS, Inc. All Rights Reserved Easy-to-follow “To Do” lists System Benefits – Performance Reviews Graphs that show progress and average scores

© 2011 HR TMS, Inc. All Rights Reserved Results 1 st Annual Review Cycle – 6/5/11 to 8/19/11 43% of employees performed self reviews Surveyed Directors about what they liked best – The paperless process – Automatic calculation of scores – The manager approval process

© 2011 HR TMS, Inc. All Rights Reserved Results Management’s embrace of online system Managers have quick and easy access to their job descriptions Easy upload of scores into our Lawson HRIS

© 2011 HR TMS, Inc. All Rights Reserved Future Enhancements for OHSI With the flexibility to create additional forms, we plan on adding – progress notes so employees and managers can track progress through the year – along with our basic employment contracts We plan to add the Compensation Planning Module to allow more flexibility and – reduce the time between manager reviews and annual increases in paychecks

© 2011 HR TMS, Inc. All Rights Reserved Questions for the Panelists?

© 2011 HR TMS, Inc. All Rights Reserved Contact the Presenters Darcy Pugh Don Berman Bill Rost 763/

© 2011 HR TMS, Inc. All Rights Reserved Thank You