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How a small team at a large healthcare organization

successfully rolled out a new talent and performance

management process with SuccessFactors

SuccessConnect 2012 San Francisco June 7, 2012

IMPLEMENT WITH SUCCESS

Introductions

• Stacey Griffin

– Sr. Director Organizational Development/Talent

Management, Providence Health & Services

• Jane Morrison

– Sr. Compensation Consultant, Providence Health

& Services

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About Providence

• Leading national healthcare provider employing 64,000

• Not-for-profit Catholic health care ministry committed to

providing for the needs of the communities it serves –

especially for those who are poor and vulnerable

• 27 hospitals, 214 physician clinics, senior services and

supportive housing, a health plan, a liberal arts university, a

high school and many other health and educational services

• The health system spans five states – Alaska, California,

Montana, Oregon and Washington – with its system office

located in Renton, Washington

• Continues a tradition of caring that the Sisters of Providence

began more than 155 years ago

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Overview of Our Journey

Where we started…

•20+ different evaluations

•HR “black hole”

•Uncontrollable merit

spend

•Anniversary evals, sort of

•No goal alignment

•Minimal succession

planning

Where we ended up…

• One standard evaluation

• High accolades across

all customer groups

• Budgeted allocations

• Common focal review

• Goal setting/alignment

• Formal talent review

discussions

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Results We Achieved Year 1

• Project on-budget

• On-time go-live

• Year one merit increase cost savings of almost

$500,000

• Over 99% of all evaluations completed on-time

• 97% training attendance

• High post-implementation customer survey scores,

with a mean score of 4.26 on the question "I feel the

new process and on-line system was an

improvement over our old process and tools."

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Background

• In 2006, started designing a succession management process,

but learned we needed to take a step back to the basics

• In 2007, started designing a new performance management

process and tools

• Best practices from each Region were blended together to

create a draft process and evaluation form

• A pilot was conducted across four months in 2008, simulating

an expedited annual cycle with positive results and one key

finding: we needed technology

• Despite huge support, a system-wide budget was declined

• California region executives agreed to move forward with

piloting the new process and tools across the 10,000 CA

employees

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Implementation Timeline

• February 2009 – executives agreed to project

• Core team formed

• February to April – focal dates determined

• Communication to managers and employees began

• April to August – RFP and vendor selection

• September – signed contract with SuccessFactors

• October – started build of technology

• HR staff training began

• January 3, 2010 – technology go-live, start of focal

• May – end of focal, customer survey and focus groups

• And lots of off-line conversations and socializing along the

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SuccessFactors Modules

Implemented

• Performance Management

• 360 (Team Feedback) – Evaluation from direct reports, peers, customers, others; meets Magnet

requirement

• Development Planning “lite” – Career goals removed from performance goals

• Performance Goals – Cascaded and group goals

• Compensation – Moved all employees to a May 1 "focal" period with prorated merit

increases – Merit budget and approval process, over 1,520 merit worksheets, printable

compensation statements

• Standard package – Home tab, reporting and dashboards, org chart, employee file

• Succession Planning

• Job Descriptions

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Project Team

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Title Project Role

Director, Organizational

Development

Overall owner, system admin

Training design, facilitation, communications,

Tier 2 calls

Sr. Comp Consultant Owner of comp module, system admin, Tier 2

calls

HRIS Director Owner of Lawson-SuccessFactors integration,

uploads and downloads, some system admin

HRIS Analyst Back up to HRIS Director, uploads and

downloads, some system admin

OD Consultant Training design, facilitation, communications,

Tier 2 calls

HR Teams Most of manager training, Tier 1 calls

Our Guiding Principles

• The ongoing, two-way dialogue between an individual and

their supervisor is at the heart of performance and

development

• Simple, standard, objective tools and methods are necessary

to support that experience

• Outcomes, standards, and expectations should be clear from

the outset (orientation, start of a new job, beginning of the

performance period)

• The performance and development system must objectively

describe and distinguish between ineffective, effective, and

highly effective performance and must support appropriate

follow-through actions

• Providence people should have the education and training

necessary to effectively manage performance and

development

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Our Design Specifications

• Think beyond the form & technology

• Standardize

• Make it easy

• Measure what matters

• Balance accountability with support

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Evaluation Components

• Employee & Review Information – Imported from system

• Accomplishments

• Self-Evaluation – Incorporated into the evaluation, sent to all employees

• Essential Job Functions/Core Competencies (35% of total score)

– 13 "families" with general job-specific competencies with bulleted details

• Core Value Behaviors (35% of total score)

– 5 Providence core values with bulleted behavior examples based on service excellence collaborative

• Performance Goals (30% of total score)

– Business goals, 2010 goals sent to most employees

• Career Development – Incorporated into evaluation and not rated

• Compliance Requirements – Part of tracking regulatory requirements and not rated

• Overall Scoring – Moved entire region to same 1-5 scale with new point distribution

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One page

“sample” of

what the

evaluation

would look like

proved helpful

Merit Increase Process

• Lots of communication and examples of how the

proration would work

• Managers accountable to budget for first time

• Managers got control of allocations, with some limits

• Increases assigned from eval score, +/- 1%

• Short window to complete and get approvals

• Allocated pre-conversation and then locked down

• One of the huge wins

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Focal Process Dates

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Step Begins Ends

Employees Complete Self Eval

First week of January Deadline is January 31(all route

forward to managers 2/1)

Team Feedback (if applicable)

October 1 January 31

Managers Write Reviews

February 1 or as soon as

employees finish their self-

evaluation and send it to

manager

Deadline is February 28 for

management and staff evaluations

Merit Planning (if applicable)

February 15 managers will get a

merit worksheet Deadline is February 28

Executive Merit Approvals

March 1 March 7

Performance Conversations

March 1 March 31 for manager evals

April 30 for employee evals

Signatures March 1 for both manager and

employees (comp statements

won’t be available until 3/8)

Deadline is April 1, 5pm (manager

evals)

Deadline is May 1, 5pm (employee

evals)

Route Map

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Communication Approach

• Roll out to all staff with branded message "It's about the conversation“

• Fun, unique look and feel

• Q&As and “town hall” meetings

• Specialized communication on pro-rated merit increases

• Updates at regular monthly leadership meetings, best practices highlighted

• Poster boards and small posters throughout the locations

• E-mail templates, system messages, and timing all drafted and reviewed with HR Teams before go-live

• Fun competition around end of focal evaluation completion rates

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Communication Examples

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Communication Examples

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Training Approach

• Developed programs and trained over 600 managers and supervisors on new process and tools

• 2-hour in-person classroom overviews focused on the process changes – 97% attended!

• Computer lab training on the technology

• On-line learning modules

• Quick reference guides

• 1:1 JIT training

• Administrator guides and training for Tier 1 help desk

• Year two soft skills training on the conversation and goal setting, on-line training for employees on completing self-evaluations, employee training in Spanish

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Lessons Learned

• One focal date would have been much easier to design and

communicate, or two dates much further apart

• Transition schedule from anniversary to focal met needs but

difficult to design, administer, communicate, and keep

straight as manager

• Needed more structured testing, but overall approach of

“testing along the way” worked well

• Training would have been better at 4 hours in a computer lab

after go-live, and included more on what the managers

needed for themselves, deep dive on goals

• Better “help desk” call routing and troubleshooting

administrator

• Employees didn’t know their usernames and passwords, didn’t

know where to find them; managers needed a list to help

them log-in

• Manage employee and manager transfers automatically 21

Roll Out Recommendations

• Identify work that can be done pre-system design and

automation – Clean up HR database on important fields (review due date,

assigned position and job code, process levels, manager

identifier)

– Build out eval components such as core competencies, core

value behaviors, goals

– Learn goal options and types, determine future year goals with

senior teams

– Answer system design questions supplied by SuccessFactors

consultant

– Draft ideal process flow of forms, due dates for each stage,

transition year if going focal

• Ideally, do JDs first so core competencies can be job specific

• Find a way to scrub goals early, have managers come to

training with them and put them into template or directly into

the system

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Roll Out Recommendations

• Accurately identify appetite for change and select approach

to match (rip the band-aid off vs. slow roll out)

• Identify assumptions on how system and customers will

respond, and if no good alternative plan "B", vet it out more

• Core team needs to be very focused on testing, learning go-

live role, test everything multiple times to identify issues and

questions

• Establish a good project management structure unrelated to

system build outside of SuccessFactors calls with the

consultant

• Don't overestimate technical abilities of HR teams

• Have SF project manager present and available for

administrators when pushing out forms for the first time

• Once end-user activity starts, do quality checks every day

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Our Critical Success Factors

Summary

• Clear guiding principles and design specs

• Strong executive support

• Committed, talented and focused core team

• Implementation “win” for all HR, strong partnership

from the field

• Communication grabbed attention

• Process made it easier for the customer

• It was built around what matters most

• Managers were held accountable

• Business-aligned results were achieved 24

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Questions?

Thank you for attending our session and learning what worked for us!

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