CLIENT STORY

Fusing HR systems for success

When two healthcare systems merged, KPMG helped them combine human resources technologies and cultures.

Client
A non-profit collaborative healthcare system
Sector
Healthcare
Project
Consolidating and optimizing HR processes postmerger
  • Client challenge
  • Benefits to client
  • Approach
  • KPMG insights

Client challenge

The merger of two regional healthcare systems offered our client clear potential for future growth. However, bringing them together meant combining different cultures and technologies into a single, efficient, and cost-effective organization.

For the human resources (HR) team, this meant supporting the healthcare system’s ability to attract and retain top talent, provide an improved experience for both employees and managers once onboarded, and reduce the overall operating costs related to HR.

Benefits to client

KPMG combined its Powered Enterprise approach with Oracle Cloud technology, to quickly bring our client’s entire HR organization together, melding the wants and needs of both entities into a single, harmonized solution—all to support their mission of creating a healthier organization and community.

Although much progress was made postmerger, the healthcare system developed a fresh approach to implementing new Oracle technology. Within one year of starting Project ONE (“Our New Enterprise”), they had a new comprehensive HR system in place. Because of the new system:

  • Data from two disparate systems was converted and harmonized; processes were streamlined and automated.
  • Employees and managers now have a single point of entry to access all HR technology solutions and HR-related business information.
  • Funds previously spent on an outsourced service center can now be invested in other areas—such as extending the reach of the new employee service center, adding more features and functions, and optimizing business processes.
  • Every milestone was hit and the project was delivered on budget.
  • The overall candidate and employee experience has been improved.
  • The healthcare system’s HR operating model (people, processes, technology, and analytics) is now robust enough to support future growth through acquisitions or expansion of service lines.

Approach

Having created a not-for-profit healthcare system, with over 40 hospitals and 40,000 employees, our client set their sights on growing as a premier healthcare destination in the United States. A critical component of that strategy was their goal of being viewed as an “employer of choice” in order to attract and retain quality talent. Intense focus on improving the employee experience through the entire “hire-to-retire” cycle was crucial to meeting this goal. They had to rethink their complete model—from how they interact with employees, to how they support managers, to the underlying technology that sustains the HR mission.

Deep knowledge of the healthcare sector was a vital ingredient in the initial HR strategy work. Leveraging this experience, the client mapped out a clear path for a new and improved target operating model. This included taking a fresh look at processes, policies, and procedures. A fully integrated and highly scalable technology solution to support the needs of employees and managers across HR, payroll, benefits, workforce admin, total rewards, recruiting, onboarding, and learning was also designed and delivered.

Having fully assessed their challenges, our client selected and implemented an Oracle-based solution that included PeopleSoft HR and Payroll, Cloud Talent Acquisition and Talent Management, and HR Analytics. Using components of KPMG Powered Enterprise, the project was fast-tracked through a series of intensive design workshops leveraging KPMG’s stock of healthcare-based leading practices. This allowed the healthcare system to quickly bring the entire HR organization together, melding the wants and needs of both entities into a single, harmonized solution that everyone could support.

Our client can now identify and recruit top talent, provide an improved experience for both employees and managers once onboarded, and reduce the overall operating costs related to HR—all to support their mission of creating a healthier organization and community. And their HR organization is now poised for the future and ready to meet the needs of a dynamic healthcare system.

KPMG insights

Broad involvement leads to big success

Technology often takes centerstage when organizations decide to implement a new “system,” but it’s a mistake to let this effort become wholly driven by IT or to ignore the impact of a new system on people and processes. A broader outlook that is business-driven by key leaders and stakeholders with culture in mind, is essential to success.

 

Discipline gets it done

While engagement from business leaders and sponsors is essential, discipline is the key differentiator between failure and success. A highly structured governance process that is tied to clearly defined outcomes as well as measurable milestones and schedules is critical to achievement. Data-driven progress reporting allows issues and roadblocks to be identified and addressed early—helping to ensure the project stays on track.

With KPMG Powered Enterprise and our stock of healthcare-based leading practices, this client was able to move rapidly through an intensive series of design workshops. Every milestone was hit and the project was delivered on budget.

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