delivering value to the NHS Delivering value to the NHS 1 © NHS Shared Business Services Ltd 2011 Cheshire HR Case Study

delivering value to the NHS 2 © NHS Shared Business Services Ltd 2011  Cheshire HR was formed in October 2006  East Cheshire NHS Trust  3,700 staff  Macclesfield Hospital + community healthcare in central and eastern  Central & Eastern Cheshire PCT  300 staff, including hosted ICT services  NHS Western Cheshire  350 staff, including hosted NW Specialised Commissioning Services & Cheshire Health Agency  Mission – to deliver excellence in People Management  Budget £3.6million, staff – 100 WTE The Background

delivering value to the NHS 3 © NHS Shared Business Services Ltd 2011  Shared HR Service already existed between Eastern Cheshire PCT and East Cheshire NHS Trust  Need for payroll contract for these tow organisations  Introduction of ESR across NHS meant a single platform for HR transactions  Absence of a coherent HR Strategy aligned to operational objectives  Cumbersome and outdated HR processes  Very poor levels of staff satisfaction with HR  Inadequate technology not fit for purpose  Challenges facing the Trusts required an HR service that could add value at a strategic level Key Drivers Right people focusing on the right things at the right time

delivering value to the NHS 4 © NHS Shared Business Services Ltd 2011 The Challenge Transactional Efficiencies Baseline Transactional Efficiencies 20% Transactional Efficiencies 40% Transactional Efficiencies 50% Transactional Efficiencies 60% Transactional Efficiencies 75% Multiple locations Multiple Locations Single/ Few Locations Virtual Locations Multiple Locations Multiple Systems Standard Simple Processes Common Systems Standard Simple Processes Common Systems e.enabled system Non-Standard Complex Processes Non-Standard Simple Processes Multiple Systems Remove Complexity Multiple Systems Remove complexity Standardise Processes Remove complexity Standardise ProcessesImplement Common System Establish new organisation Remove complexity Standardise ProcessesImplement Common System Centralise transaction processing Standard/ Simple Processes Standard/ Simple Processes Increasing process maturity Establish new organisation Remove complexity Standardise ProcessesImplement Common System Centralise transaction processing Implement e.enabled common system Migrate to Virtual transaction processing East Cheshire Central & Eastern PCT Western Cheshire

delivering value to the NHS 5 © NHS Shared Business Services Ltd 2011  Separate HR Departments  HR resources spread across multiple sites.  Processes and Procedures differ by site/business unit.  Employee and Managers deal with different teams for different requests.  Disparate, outdated technology platforms  No inter-related technology systems  Manual and duplicate data entry  Strategic staff performing administrative tasks  Results  Costly, disparate HR functions.  No performance metrics  No customer service focus  Shared HR Service  Harmonised and centralised HR services  Dedicated and single point of contact for HR customers  Single employee access portal and data entry  Enhanced Technology platforms  Interfaced systems  HR performance metrics and SLA’s  Enhanced HR reporting  Results  Cost reduction in HR administration  Customer focused HR delivery  Strategic staff re-focused on strategic delivery The Benefits

delivering value to the NHS 6 © NHS Shared Business Services Ltd 2011 Challenges Encountered  Diversity of cultures from three organisations  Allocation of resources  Geography/location  Managing Change  Business Continuity  Achieving change in behaviours – customer/business focus  Developing internally – capability to “let go” Decided on a 3 year timetable

delivering value to the NHS 7 © NHS Shared Business Services Ltd 2011 Year 1 – Building the Foundations  Centralisation of transactional admin teams  Bedding in new structures  Managing staff turnover  Standardisation of processes  Introduction of best practice  Development of a Finance Model and introduction of a baseline  Introduction of Electronic Staff Records (ESR) phase 1

delivering value to the NHS 8 © NHS Shared Business Services Ltd 2011 Year 2 - Embedding & Consolidating  Management of payroll contract with SBS  Development of HR Shared Service corporate identity  Reviewing capacity and structures to meet increased demand  Formation of an HR ICT Group  Development of service specifications and SLAs for each “customer”  Establishment of KPIs and quarterly reporting  Wellbeing service introduced to support each customer  People Management and Development Learning modules developed  Incorporated Learning & Development into the centralised HR Administration Service

delivering value to the NHS 9 © NHS Shared Business Services Ltd 2011 Year 3 – Moving Forward  Transfer of staff from C&E Cheshire PCT and NHS Western Cheshire to East Cheshire NHS Trusts acting as Host  Development of Cheshire HR Service business plan  Review of Medical Workforce Service  Implementation of ESR phase 2

delivering value to the NHS 10 © NHS Shared Business Services Ltd 2011 Year 4 - Transformation through Innovation –  Re-organisation of Cheshire HR  Development of Strategic Business Partners  Introduction of shared HR Consultancy service  Introduction of new technology providing 24*7access to HR information and guidance  Focused dedicated HR and L&D Business partner support for each customer  Tailored coaching support & development  Increased confidence & competence of line managers in people management issues  Reduced costs to customers  Consistent delivery of HR advice Customer Benefits

delivering value to the NHS 11 © NHS Shared Business Services Ltd 2011 Year 4 - Transformation through Innovation –  Re-organisation of Cheshire HR  Development of Strategic Business Partners  Introduction of shared HR Consultancy service  Introduction of new technology providing 24*7access to HR information and guidance  A united cohesive team focussed on employee relations & policy development  Improved sustainability by reducing the one person dependency risk  Improved career opportunities  More effective line management  Increased job satisfaction  Continuity of cover Cheshire HR Benefits

delivering value to the NHS 12 © NHS Shared Business Services Ltd 2011 Assessing Progress  Worked with Peter Reilly, Director HR at IES  NHS NW commissioned IES to develop a world-class HR & OD model to be run annually  Supported by self-assessment methodology and web-based customer survey  In 2010 Cheshire HR showed a positive increase in results :  Out of 36 categories/questions  27 results better than previous year  4 results – no change  29 results better than average for Acute Trusts  Significant decrease in sickness absence  February 2010 : 4.01%  February 2011: 2.54% 

delivering value to the NHS 13 © NHS Shared Business Services Ltd Survey Results  Gets basics right – 20% increase  Reliable & easy to get hold of staff - 20% increase  Effective recruitment – 50% increase  Support in times of change – 30% increase  HR staff are expert, well informed and professional – 10% increase  Understanding of employee & business needs – 10% increase  Effective in area of Reward & Recognition – 10% increase  Effective in workforce planning – 30% increase  Help with staff absence & poor performance – 10% above other participating organisations  Good advice given – 25% above other participating organisations  Ensures policies consistently & fairly applied by managers – 20% above other participating organisations 62% said that HR was better or much better than in 2008:

delivering value to the NHS 14 © NHS Shared Business Services Ltd 2011 Lessons Learnt  Need to understand where each organisation is on the Maturity Map  Set expectations – internally and externally  Identify the low hanging fruit  Prioritise opportunites  Never underestimate the amount of internal change management you will need  Recognise those who will never buy-in to the new way of working and move them out early on  Recognise your key strengths and partner where appropriate  You will need Technology – recognise this and then use it  Engage with your customers at all stages and make them a partner on your journey If I had appreciated how we would benefit I would not have procrastinated at the start

delivering value to the NHS 15 © NHS Shared Business Services Ltd 2011 Overall Evaluation  More committed relationship between HR and customer organisations  Increased internal benchmarking and associated questioning approach to service delivery  Improved networking and support for HR  More commercial and cost aware attitude to service provision amongst HR staff  Better career opportunities and access to training