CHRISTUS Relies on CTG for Project Leadership and Support for Enterprise HR and Payroll Implementation
At the time of this project, Texas-based CHRISTUS Health was ranked among the 10 largest Catholic health systems in the United States, with assets exceeding $4.6 billion, more than 40 hospitals and facilities in seven states in the U.S. and six states in Mexico, 30,000 employees, and more than 9,000 physicians.
Challenges and Objectives
CHRISTUS Health began implementation of the ADP Comprehensive Outsourcing Services (ADP COS) solution in June 2010. COS is an outsourced solution that requires all users to operate on a single platform and perform consistent payroll operations. CHRISTUS needed to centralize eight U.S. regional locations on one enterprise system that would support 36 acute care facilities, along with its provider network and corporate office, which together comprised 22,000 of its 30,000 employees.
During the first year of the COS implementation, CHRISTUS struggled with lack of daily project oversight and team management. CHRISTUS identified the critical need to turn the project around and approached CTG to provide full-time project direction, including managing the centralization, integrating the source systems, and implementing an enterprise solution for human resources and payroll operations.
CHRISTUS sponsors agreed to an initial 90-day “time-out” allowing CTG’s project director to regain control of project tasks and place back on a track. Drawing on past experience of leading and turning around large-scale, complex, integrated projects, CTG led the project team and regional vice presidents through multiple future-state design sessions in order to obtain buy-in across the regions. These design sessions resulted in regional acceptance and support of the project, and agreement on the goal of standardizing pay practices, job codes, paid time off (PTO) plans, and job titles for more than 22,000 of CHRISTUS’s 30,000 associates.
During this period of ADP COS implementation, CTG also provided production support consultants and led the reimplementation of Kronos v6.3 with a dedicated Kronos team. Standardizing the pay practices within the Kronos application before implementation of ADP COS was essential to realizing maximum cost savings. The team rebuilt all Kronos interfaces to align with ADP COS requirements. For CHRISTUS, 29 of the subsystems required interfaces to be rewritten or developed to support the COS solution.
Despite the initial organizational resistance to change, magnitude of the standardization requirements, and challenge of significant organizational changes throughout the project, the CTG-CHRISTUS project team successfully implemented Kronos v6.3, a major milestone that cleared the way for the ADP COS go-live. As part of the enterprise standardization project, CTG also assisted the CHRISTUS CIO with contract negotiations with two third-party vendors.
CTG successfully led the CHRISTUS organization through several major changes related to payroll and operational processes, and the standardization of PTO and pay practices. The estimated cost savings to CHRISTUS, after implementing Kronos, pay practice changes, modernization, and standardization, is approximately $24 million over seven years. CTG’s assistance in vendor contract negotiations resulted in additional organizational savings of close to $2 million.