1. Portfolio/Number/Name:A/C3 - HR Reform Programme |
2. Programme/Activity: Please
include a short description The HR Reform programme includes HR
re-structuring and the introduction of
e-HR. It aims to update the existing HR
business operating model with a
re-engineered and streamlined business
model supported with the deployment of a
modern enterprise Human Resource Management
System. This will bring a number of key
benefits including realising a saving in
full time equivalent posts through the
elimination of a large number of manual,
transactional tasks, improved management
information through the implementation of a
corporate data model for a "person",
improved access to personal data for staff
and access to improved management functions
such as absence management and performance
management. |
3. Planned Savings | | 2005-06 | 2006-07 | 2007-08 |
Cash (m) | 0 | 0.5 | 0.5 |
Time Releasing (m) | 0 | 0 | 0 |
4. Accountable Officer for
delivery | John Elvidge |
5. Project Manager | Susan Beevers |
6. EGDG account manager | Iain Dewar |
7. Quality Impact | Describe any impact on the quality
of service delivery. Be specific and
explain if the expectation is positive,
negative or neutral. The implementation of e-HR will improve
the quality of the HR service provided to
the Scottish Executive. It will also
improve the service provided to a number of
aligned agencies and NDPBs. There will be improved management
information through the implementation of a
corporate data model for a "person",
improved access to personal data for staff
and access to improved management functions
such as absence management and performance
management. |
8. Dependencies | Explain if your savings are
dependant on legislation or other
structural changes. The delivery of the efficiency savings
for e-HR is dependant on the successful
procurement of a change partner,
implementation of the project to plan and
budget, successful delivery of a suitable
change management strategy which includes
training and user adoption of system. In addition we are dependent upon
Scottish Executive Information Systems
Steering Group (SEISSG) approving the
funding (still only agreed in principle)
and final negotiations with a preferred
bidder to minimise price. |
9. Description of efficiency and
actions to be taken | 9.1 How will the saving be made? Be
specific about number/size of contracts,
staff, posts dates etc. Efficiency gains will be made through
process re-engineering and service delivery
changes. The efficiency savings will be
made through a reduction in staff costs,
reduced expenditure on administration and
sharing services. |
9.2 What action is critically
needed to secure delivery of this saving?
Be specific, and name the key action
managers if they are outwith your immediate
management chain (e.g. in an
NDPB.) In order to deliver these savings, the
e-HR change programme needs to complete
rollout by the end of 2006-07. To deliver
this a change partner needs to commence
service in June 2005, business process
re-engineering needs to complete by the end
of January 2006 and the business needs to
conclude all forms of acceptance testing by
the middle of October 2006 to enable
transformation of the HR department to be
completed by the end of November 2006. Self
service will then be rolled out in various
forms over the remaining 3-4 months. |
10. Impact on Staffing to achieve the efficiency
gain | If there are to be any changes in
staff numbers (at activity level) to
achieve the efficiency gain, please
indicate how many full time equivalents and
how far you expect savings to be achieved
by natural wastage (show additions as + and
reductions as -). |
| 2005- 06 | 2006- 07 | 2007- 08 |
+ | 0 | 0 | 0 |
- | 0 | 0 | 55 |
Net | 0 | 0 | -55 |
Explanation | Staff change will be managed through
implementation of the revised business
model. e-HR does not currently deliver any
quantifiable business benefit before the
implementation of the core transformation
in November 2006. |
11. Benefits | In general, the benefits of the
Scottish Executive Efficiency Plan are the
enhanced outputs from the resources
Ministers have been able to allocate in
SR04. But if there is a direct connection
between this efficiency saving and the
enhancement of a particular service please
describe it here. N/A |
12. Gross/Net Cash Savings | 12.1 Please set out the gross
recurring saving and any offsetting
recurring expenditure. Since publication of the original
Efficient Government plan, the timing and
size of the HR Reform savings has changed.
HR reform will deliver 0.5m of savings in
2006-07 and the business case for the e-HR
project identifies an annual saving in the
HR direct running costs of 1.85m in total
in 2007-08. |
12.2 Against what budget does this
expenditure and saving fall? The expenditure and savings fall
against the Scottish Executive's
administration budget, in particular: The expenditure for the e-HR programme
falls against the SEISSG budget and this
has already been identified. The saving will fall against the HR
administration budget. |
12.3 Has this saving been built
into your budget? Yes |
12.4 If so, what is the maximum
allowable expenditure against the budget
data, in each year, for that saving to be
delivered? The current, still to be agreed HR
budget for 2006-07 is 11.865m and for
2007-08 it is 11.444m. The SEISSG budget
for 2005-06 is within the corporate budgets
allocation of 37,357,000 to the Office of
the Permanent Secretary. Allocations from the administration
budget for 2006-07 and 2007-08 will be made
in the future in light of efficiency
savings illustrations being drawn up across
the Executive. |
12.5 If not, how do you propose to
invest the additional cash back into public
services? N/A |
12.6 What plans do you have to
exceed the required saving? Explain by how
much in each year. HR reform will deliver savings of 0.5m
in 2006-07 and the e-HR programme will
deliver the benefits outlined in the
business plan from 2007-08. The business
plan identifies annual savings of 1.85m in
2007-08. The HR benefits now identified
since publication of the plan (and
reflected in para 12.1 above) are those
that will be realised earlier as a result
of HR reform, and are not reliant on e-HR.
They can be found from within HR by
re-designing processes and moving to shared
services. |
13. Time - release savings | 13.1 Please explain any
time-releasing savings indicated at
question 3. N/A |
13.2 Please describe the method you
plan to use to calculate the cash
equivalent of those time release
savings. N/A |
14. Measurement and
Monitoring | 14.1 How are you proposing to
measure the expected efficiency benefits
(e.g. in terms of costs, level of output or
quality of service)? The HR Reform programme that will
deliver savings in 2006-07 will be measured
via outturn figures in the Department's
spending. Efficient Government targets will
be tracked against the HR budgets, in order
to deliver the savings identified in the
plan. The e-HR programme has a benefits
management project that is tasked with
developing and overseeing a benefits
realisation process. Specifically we are
developing a Baseline Operating Model (BOM)
defining the operation today. We will then
develop a Target Operating Model (TOM) via
the Business Process Redesign activities
and in conjunction with the Vendor. This
will give direct comparison between BOM
& TOM enabling clear and quantifiable
benefits to be identified. These will be
used to develop Key Performance Indicators
that will be used to populate performance
management and financial plans for each
business areas, hence ensuring benefits are
tracked and realised. All benefits will be
tracked against the baseline of HR budget
for 2004-05. In addition a number of benefits chains
will be developed to ensure that
non-functional benefits (e.g. Management
Information improvements) are also
quantified, tracked and delivered. |
14.2 What monitoring &
reporting procedures will be put in place
to measure the efficiency savings (How
often will progress towards the target be
monitored? Who will have lead
responsibility for reporting progress and
what procedures will be in place?) Benefits will be tracked quarterly and
reported to the e-HR Programme Management
Board |
14.3 Monitoring Data: Sources,
validation and risks - What data will be used to measure
progress? Is all the required information
quantifiable and readily available? If not
what action will be taken to rectify
this?
The monitoring data and models are
being developed. Data will be extracted
from the Scottish Executive Accounting
System (SEAS) in order to validate running
costs, and track savings in budgets. HR
savings will be sourced by comparing
budgets against outturn statements for the
HR department, and tracking the
savings.
- What measures will be in place to
validate the accuracy of the data? Who will
take responsibility for this?
The development of e-HR metrics and
models is owned by the e-HR programme and
hence Alistair McKerr. Responsibility for
delivering the identified and agreed
benefits lies with Susan Beevers. All
financial information is supplied by Alex
Stobart.
- Are there any issues or risks
relating to how you plan to use the data?
(e.g. accuracy, difficulties in
collection)
No.
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