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Plano Affordable Health Insurance
The organization-capability assessment process also represented a Plano Affordable Health Insurance methodology for establishing HR priorities based on business strategies. In addition, Chairman Fuller articulated four major expectations for the HR function, listed below.
- HR must have a knowledge of the business.
- HR must have a knowledge of HR.
- HR must have and ability to lead any change process.
- HR must have the leadership ability to influence the organization.
To accomplish these expectations, Plano Affordable Health Insurance mission and vision were reviewed and its responsibilities for implementation were defined. This Plano Affordable Health Insurance mission directed HR to develop people strategies and to recommend policies, programs, and practices in support of those strategies. Simply stated, if an HR practice or proposed practice did not align with Amoco’s values and business strategy, that practice would be discontinued or would not be implemented. Management’s role then became to approve, take ownership of, and determine the timing of the people strategies and corresponding policies, programs, and practices. The Plano Affordable Health Insurance function became accountable for providing the needed tools to help management effectively implement the people component of Amoco’s business strategy.
Anderson and the HR senior management define four roles for Amoco HR professionals: strategic people-planning, people acquisition and development, organization design and development, and administration of people policies, programs, and practices. In addition, they defined three strategies for shifting HR focus from administration to consultation and development work.
To help make this shift, Amoco’s Plano Affordable Health Insurance invested in itself. The HR organizational structure was changed by moving much of HR into Shared Services. Performance standards were made clear and aggressive, and HR professionals were given greater accountability for meeting those standards. HR processes were improved. Some HR activities were outsourced (for example, medical-plan administration, savings-plan administration, compensation and other surveys, long-term disability, dental-plan administration, relocation, retirement calculations, and benefits delivery). Thse outsourced activities created measurable value for Amoco—more than $11 million in cost savings. In addtition, through an increased use of preferred provider organizations and health maintenance organizations and health maintenance organizations and the shared costs of managed care, Amoco’s healthcare costs are $36 million less than would be expected given the industry average for major oil companies.
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