HRO Today July/August 2014 - 5

CEO's Letter
implemented a leadership development program for 600 leaders thoughout the organization and began teaching a
new model. More than 80 percent of these leaders have been promoted and the employee retention of this group is
extraordinary at 95 percent. Also, overhauling the benefi ts structure and HR processes has saved the system more $100
million in the last year.
But the real innovation is from what comes next. Under Cabral's leadership, North Shore-LIJ is beginning a program to
offer HR services to smaller clinical organizations, nursing homes, rehabilitation centers, and other small-care or service
providers that it does not own. Basically, they will extend their infrastructure to like organizations on a shared services
basis and become an outsourcer. This fee-for-services model will allow them to gain effi ciency and defray part of their
own infrastructure costs. They offer wellness services to other companies, argues Cabral, why not administrative and
operational services such as HR? They have all of the software and skills on managing and certifying professionals in a
healthcare setting and scale to be best in class.
Now before all of the providers crawl out onto the window ledge, contemplating eternity as they envision a world
where they will be competing against practitioner organizations, this does not preclude North Shore-LIJ from pursuing
outsourcing partners-in fact, they do outsource certain services. But it is a paradigm shift-not one that threatens the
provider community if they can fi gure out how to ride the wave if this idea does become a trend. It is innovative: The
idea of turning HR into a profi t center as well as a driver of the workforce and performance is an intriguing concept.
Can practitioners sell these internal services or have a team to do so? Can they price a model to ensure success and
benefi t to the providing business? I am not sure, and this may take the form of cooperative or partnership agreements,
but it has possibilities. Most CHROs think of HR as a service business anyway so why only service internal departments?
Of course, there are counter arguments about strategic focus and competitive advantage, but this model may work for
some companies and in some industries. You decide if it makes sense for your company and industry.
For the rest of the interview, please see page 8.
Elliot H. Clark, CEO
JULY/AUGUST 2014
| www.hrotoday.com
[5]
http://www.hrotoday.com

HRO Today July/August 2014

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HRO Today July/August 2014 - 1
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