Supporting HR & Payroll functions to develop a Target Operating Model

Description

Summary of the work The aim of this work is to develop a target operating model for the future HR and payroll service, that makes the most of feasible opportunities to reconfigure the service delivery model. Expected Contract Length 12 months (for phases 1 & 2) Latest start date Thursday 20 October 2022 Budget Range £50,000 to £100,000 total for both phases. Why the Work is Being Done The HR and Payroll Programme will redefine and modernise HR and payroll operations to provide a smooth-running service, designed from the point of view of its customers, and contribute to being a strong operational core for the delivery of transactional services. The Programme will deliver operational efficiencies by minimising manual operations, reducing manual handovers, eliminating transcription errors, rework and duplicated effort and making employee self-service more accessible.  The programme vision is to “a strong HR and Payroll operations service that delivers an outstanding employee lifecycle experience to its users and is adaptable, secure and accessible by design.” The work will deliver a comprehensive Target Operating Model Report and Implementation Plan with: 1. Initial report by 20th of January 2. Presentation at the HR and Payroll Transformation Programme Board on 2 February 2023, summarising your findings and to take questions The second stage will be for the supplier to re-engage at a later date, once a new software solution has been procured, to validate the progress in delivering the target operating model and ensure that the stated benefits are on track. Problem to Be Solved It is acknowledged that many current HR and Payroll processes and systems are lacking, under-developed or not intuitive. There is an increasing appetite to share data across organisational boundaries and to develop positive work experiences for our employees. LSE supports devolved delivery of services and therefore there is interest in moving to a hub and spoke delivery model with a centre of excellence. We require a future target operating model options that enables: Improved business performance Cross-DDCI's (Departments, Divisions, Centres, and Institutes) devolution of roles and responsibilities Improved cross-functional business processes The ability to grow and scale quickly Meets customers changing needs Aligned to LSE culture Supports the shift to digital Improved risk management This will include: A range of different business model options for the HR and Payroll functions; reviewing the different options, costs and potential efficiencies with a recommendation with particular reference to Higher Education. A comprehensive breakdown of the efficiencies that each model will be able to provide in a 5 year period Recommendations of whether any functions within the teams could be sourced or sub-contracted. Evidence of where TOMs have been implemented and have resulted in the successful operational running of HR Payroll functions Who Are the Users The users of the service (with current headcount) are: Human Resources Division – 54 users Payroll within the Finance Division – 6 users Staff including professional services and academics – 4,000 users As a member of the Human Resources Division or the Payroll Team I want to deliver an excellent service to the school and have the right capacity and capability to do so. I am clear on my role and responsibilities. I have clear processes supported by enabling technology to support me. Users are clear on how to access the service and what they can expect, so that service delivery is responsive and meets their needs. As a member of staff I want to access a well defined and efficient HR and payroll service that is designed to meet my needs, so that I can access services in a clear, supported and timely way. Existing Team You will be working with Core HR and Payroll resources, as well as potential administrative roles with HR functions within the Directorates and Divisions. It is not expected that you will have to work with another supplier. Current Phase Discovery Skills & Experience • Relevant experience in applying Digital HR principles in a transformation programme • HR & Payroll TOM experience • HE Sector experience Work Location The London School of Economics and Political Science Houghton Street, London WC2A 2AE Working Arrangments Remote with some on campus interviews with key stakeholders and face-to-face meetings on progress (TBC). Expenses must be agreed in advance. No. of Suppliers to Evaluate 4 Proposal Criteria • Approach & Methodology • Estimated timeframes for the work • How risks and dependencies have been identified and approaches offered to manage themed approaches to manage them • Team Structure Cultural Fit Criteria • How the supplier shares knowledge and experience • How the supplier works with client Payment Approach Capped time and materials Assessment Method • Case study • Presentation Evaluation Weighting Technical competence 55% Cultural fit 5% Price 40% Questions from Suppliers 1. What HR & Payroll system are you currently using? Zellis Resourcelink 2. Can you confirm the two phases of this project is as follows:Phase 1: Conduct a discovery to identify improvements for LSE’s HR and Payroll servicePhase 2: After procurement of a new software solution, your chosen supplier will return to validate its progress in delivering the target operating model and how it’s performing to keep stated benefits on track. 1/2 The opportunity advises that the two stages are:Stage one - the work will deliver a comprehensive Target Operating Model Report and Implementation Plan with:1. Initial report by 20th of January2. Presentation at the HR and Payroll Transformation Programme Board on 2 February 2023, summarising your findings and to take questionsThe operating model report will include:A range of different business model options for the HR and Payroll functions that will allow the service to meet customer needs; reviewing the different options, costs and potential efficiencies with a recommendation with particular reference to Higher Education. 3. Can you confirm the two phases of this project is as follows:Phase 1: Conduct a discovery to identify improvements for LSE’s HR and Payroll servicePhase 2: After procurement of a new software solution, your chosen supplier will return to validate its progress in delivering the target operating model and how it’s performing to keep stated benefits on track. 2/2A comprehensive breakdown of the efficiencies that each model will be able to provide in a 5 year periodRecommendations of whether any functions within the teams could be sourced or sub-contracted.Evidence of where Target Operating Models have been implemented and have resulted in the successful operational running of HR Payroll functionsThe second stage will be for the supplier to re-engage at a later date, once a new software solution has been procured, to validate the progress in delivering the target operating model and ensure that the stated benefits are on track. 4. Is it LSE’s intention to procure an off-the-shelf solution following the initial discovery? Yes 5. We understand this project is to ultimately improve LSE’s HR and Payroll service and the system to support that, however, we hoped you could provide some additional clarity on your vision of a Target Operating Model and how it would feature in this project. How far are you intending this project to cover wider operating elements like team structure and culture/ways of working? LSE would like to understand options based on successes in the current market. The intention is to be ambitious and transformative. Areas in scope of the target operating model are:• Vision, Strategy, Principles, Culture• Customers and Channels• Business Services• Business Capabilities• Business Models• People, Process and Organisation• Pain Points• Assets – Buildings, Equipment and Technology• Financial Cost Base • Performance and Outcomes• Governance• Transition States 6. What is the timeline for the software selection workstream? It will make sense to at least anchor the TOM report on a short list of systems in mind. In our experience the projected benefits can be then managed better. Procurement timeline is October 2022 to March 2023. Early market engagement sessions with a short list of suppliers are arranged for November 2022. 7. What involvement is expected from the supplier on the software selection workstream (e.g., requirements mapping)? None 8. What are the current systems in play? It is always good to know when preparing a proposal for the client. Zellis Resourcelink – HR and PayrollEngage ATS – e-RecruitmentSharepoint – electronic file management