Uncover True Spend on
Enterprise–wide HR Activities

A prestigious academic medical center was faced with the challenge of implementing an ambitious growth strategy while at the same time controlling escalating operating costs. At the same time, deteriorating economic conditions were negatively impacting endowments and other funding sources. An internal review of cost saving opportunities was mandated. The Human Resources function, traditionally regarded as underfunded, was already undergoing a major re-design initiative. It became clear that the historical lack of resources had spawned an enterprise-wide network of “shadow” HR functions within operating units. Redundant units or positions had been established to perform tasks related to talent acquisition and retention as well as core HR processing activities. There was no mechanism in place to capture the true “HR Spend” or to take advantage of the economies of scale available to the larger organization.

Through the initial re-design effort, HResults had identified several areas of the broader organization where HR redundancies had been established to supplement or substitute for services either under-resourced or not provided by the central Human Resources department. We were engaged to develop a process to identify those significant areas where these expenses were being incurred and to factor these costs into an overall business case for the funding of HR services.

Working closely with internal Financial, HR and Operating managers, we identified several key spending categories. Through a process of budget reviews, vendor identification and manager interviews, we developed a profile of the true spend in these categories and were able to project an enterprise-wide pro forma presentation to senior leadership.

The forensic HR review identified expenditures related to talent acquisition and management outside of the HR Department that were either misclassified or buried in unrelated budget categories. These costs were essentially unmanaged. As a result:

  • In excess of $650,000 in immediate and short-term savings opportunities were identified
  • Longer term opportunities for cost saving and cost avoidance in excess of $4.5 million were targeted and plans were developed to achieve this objective. Actions included:
    • Elimination of task redundancies and “work around” processes
    • Re-negotiation of vendor contracts to take advantage of economies of scale
    • Senior leadership policy mandates
    • Improved lost time management procedures
    • Enhanced communications

Central to the success of these actions was to address the situation that enabled their formation in the first place. This required defining and communicating the role of the HR Department, development of HR service level agreements and identification of clear accountabilities.

Our Recent Work

Organizational Strategy and Design

A partnership of WL Ross & Co. and Ranieri Real Estate Partners completed their acquisition of Deutsche Bank's multi-family residential mortgage business. Now known as Berkeley Point Capital, with major operations in Bethesda MD, Boston MA and Irvine CA, it is the nation's second largest originator of Fannie Mae loans and services a $29 Billion loan portfolio.

HResults was engaged by the new ownership team to facilitate the design and migration of Human Resources programs and activities to the new independent entity and to ensure that Berkeley Point employees would experience a seamless transition upon Change of Control.


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About HResults

HResults is an HR Advisory Firm specializing in Organizational and HR Effectiveness.  Based in Philadelphia, with an office in Indianapolis, our practice focuses on the strategic, operational and cultural aspects of the people side of the business in the “new normal” environment of constant change . We enter an engagement with the understanding that our clients are investing in us as well as their own organization. We reciprocate by investing the time it takes to understand a particular business and culture and avoid making the assumption that a particular approach or solution fits all situations.