Case Study: Life Sciences Company Seeks Improved HR Service Delivery
This global developer, manufacturer and marketer of medical devices sought Deloitte Consulting LLP’s (Deloitte Consulting) assistance in helping develop and implement a new Human Resources (HR) Service Delivery Model based on industry-leading practices that facilitated their business and HR strategies, while simultaneously helping reduce costs and improve the operational efficiency of the HR function.
With 20,000 employees and revenues of more than $6 billion, this worldwide developer, manufacturer and marketer of medical devices continues to expand rapidly through acquisitions and organic growth in a highly regulated environment.
The company’s HR function, processes and technologies were burdened with high costs and inefficiencies. The HR model detracted from the company’s ability to integrate acquisitions and lacked the scalability to support rowth plans. The company engaged Deloitte Consulting's HR Transformation team to address these issues. The project was chartered to help the company reach decisions about the selection, implementation and operation of a leading practice HR Service Delivery Model. Guiding principles included service quality, operational efficiency, timeliness, cultural fit, scalability and cost.
The Deloitte Consulting team developed a comprehensive baseline of the current cost to deliver HR services, considered the estimated cost advantages/disadvantages of implementing a new HR Service Delivery Model, and provided data to help the company decide whether or not to pursue the new HR Service Delivery Model.
To help reduce costs while increasing efficiencies and value, the company decided to redesign its HR Service Delivery Model and to outsource non-strategic, transactional processes and supporting technologies. Deloitte Consulting helped define the scope of HR services to outsource and help develop a high-level view of the retained HR function. The team facilitated the vendor selection, due diligence and contracting processes. Once the outsourcing contract was signed, Deloitte Consulting provided program management and change management support during the detailed design of and transition to the outsourced HR Service Delivery Model. The team worked hand in hand with both the company and the selected outsourcing vendor.
By implementing a leading practice HR Service Delivery Model, the company achieved significant cost savings. They also improved their focus on strategic, value-added HR services, rather than routine, administrative transactions. The introduction of integrated HR systems increased reporting capabilities and access to data for company decision makers.