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Achieving ROI with Integrated Job Descriptions
and Performance ReviewsImproving HR Operations through Agile Software:
The Olathe Health System StoryNovember 3, 2011
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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
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Business Problems
• Word Documents• Scoring Methodology• Inconsistency • Compliance• Historical Versions• No Reporting Capabilities
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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
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Steering Committee Research/Solutions
• Designed a new job description & performance review template and created an enhanced scoring system
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New Job Description/Review Template
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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
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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.)
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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.
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Long-term ObjectivesJob 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.
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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
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Solution
• A cost analysis was completed to determine the ROI
*Soft and hard costs were both considered in predicting the total cost savings
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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
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ROI Calculation – Current Annual CostItem 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
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ROI Calculation – New Annual CostItem 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
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ROI CalculationItem 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 months3-year ROI 127%5-year ROI 212%
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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
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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
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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
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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)
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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
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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
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System Benefits – Job Descriptions
• Consistent language– Position and physical requirements
• Organization-wide and Departmental Duties/Competencies
• Position/Unit Specific Duties/Competencies
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Reusable Reference Job DescriptionsSystem Benefits – Job Descriptions
Ability to create reference (re-usable) job descriptions that apply to many jobs:
Registered Nurse in Surgery vs. ER
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Accurate Up to Date Job Descriptions System Benefits – Job Descriptions
Enlist Managers to collaborate, see/approve all changed items
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Flexible Tracking of QualificationsSystem Benefits – Job Descriptions
Enlist Managers to collaborate, see/approve all changed items
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Online/Printed JDs Matched our TemplateSystem Benefits – Job Descriptions
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System Benefits – Performance Reviews
• No paper• Consistent scoring• Auto-calculation of scores• Access from home• HR’s ability to track status of all reviews
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Job Descriptions Automatically “Ripple Through”to the Performance Review
System Benefits – Performance Reviews
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Compliance – View/Sign off on Job Description/AcknowledgementsSystem Benefits – Performance Reviews
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ReportingSystem Benefits – Performance Reviews
Reporting tools that allow you to see all aspects at a glance. Aids in assuring Joint Commission requirements are being met
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Easy-to-follow “To Do” listsSystem Benefits – Performance Reviews
Graphs that show progress and average scores
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Results
• 1st 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
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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
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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
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Questions for the Panelists?
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Contact the Presenters
Darcy [email protected]
Bill [email protected]
763/249-8050www.hrtms.com
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Thank You
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