Governor Deval Patrick's Budget Recommendation - House 2 Fiscal Year 2011

Governor's Budget Recommendation FY 2011

Human Resources Modernization Project

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Governor Patrick    FY2011 House 2 Budget Recommendation:
    Issues in Brief

    Deval L. Patrick, Governor
    Timothy P. Murray, Lt. Governor


The economic downturn has challenged many states, including the Commonwealth, to maximize operational and service delivery in order to invest our resources in a way that achieves the best results for our residents.  The Patrick-Murray Administration has demonstrated strong leadership in identifying and addressing areas within the Commonwealth, such as energy and information technology, that should be managed more efficiently in order to produce cost savings.  In fiscal year 2011, Governor Patrick will turn his attention to the enterprise-wide human resources (HR) systems and will direct state agencies to modernize and standardize HR business processes and leverage available technology to reduce costs.  To this end, the Governor will issue an Executive Order, Enhancing the Efficiency and Effectiveness of the Executive Departments – Human Resources Modernization Project, to improve administrative efficiency and preserve fiscal resources.

Human Resources Modernization Project

Benchmarking projects and various studies undertaken by the Patrick-Murray Administration have concluded that the Commonwealth’s current Human Resources delivery systems are decentralized and inefficient in many ways.  In response to this information and at the Governor’s direction, the Chief Human Resources Officer, Cabinet Secretaries and HR officers across the Executive Department are collaborating in developing the HR Strategic Plan for the future which will be completed in fiscal year 2010. 

This picture outlines the benefits of the Human Resources (HR) Modernization Project and shows the correlation between shared services and increased productivity.  The HR project will focus on enhancements such as time and attendance self-service, labor distribution, learning development, recruitment and talent management, and the ability to better track and manage HR data.   Research indicates that such change in direction, when fully implemented wil result in efficiency gains of 20% per year.

In fiscal year 2011, with continued collaboration, the strategic plan will begin implementation, with a focus on fully accessing all the functionality provided by the system that currently serves as the personnel/payroll system.  Enhancements such as time and attendance self-service, labor distribution, learning development, recruitment and talent management, and the ability to better track and manage HR data, will streamline our multi-layered and paper-intensive manual processes.  HR transactions will be automated and our employees will be redirected from back room functions to providing direct service to internal and external customers. This shift will result in cost savings and increased systems efficiency with employees providing high-quality services to the residents of the Commonwealth. 

The plan will identify shared services as one option that may be pursued in order to build the foundation for the Commonwealth’s HR future.  Additional goals of HR Modernization are to:

  • Align Secretariat HR resources with their business strategies and priorities;
  • Standardize HR resources and create efficiencies;
  • Align Secretariat HR plans with the Executive Department’s enterprise-wide HR Strategic Plan;
  • Work with our employees to support and maintain our productive and diverse workforce; and
  • Ensure that HR staff is increasingly focused on strategic mission enhancements, rather than transactional work.

Based on several studies that have been conducted, there is an established consensus that implementing shared service delivery models are best practices and can achieve efficient gains of between 15% and 20% a year.  For the Commonwealth, the research indicates that such change in direction, when fully implemented will result in efficiency gains of $20 to $25 million per year.

In January, 2003, the Executive Office of Health and Human Services (EOHHS) implemented a shared service model and achieved immediate savings by creating a more efficient and coordinated administrative infrastructure to support EOHHS agencies.  Some of the initial savings and other fiscal benefits include: 

  • $3.1 million in savings, while expanding services;
  • The closing of over 20 local offices and consolidating to otherwise underutilized space, saving $3.1 million; and
  • A 3% or $400,000 savings in Workers’ Compensation costs from fiscal year 2004 and a 10% or $100,000 decrease in the HRD administrative cost chargeback, the first ever of such reduction.

The HR Modernization efforts will also yield cost savings and efficiencies for all secretariats. Additionally, for the first time, a cohesive workforce strategy with effective succession plans for critical positions will be in place. The Commonwealth will be able to integrate policies, systems, and practices reflecting leading capabilities in the marketplace.  Finally, the Executive Department will truly be an “employer of choice” workplace, exemplifying innovative leadership, engaged employees, inclusive and diverse practices, pervasive customer-service and a high-performance mindset.

Prepared by Chantal Mont-Louis, Executive Office for Administration and Finance ·
For more information contact: (617) 727-2040

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