HR transformation lowers costs and boosts efficiency at AstraZeneca: Site and functionally based service makes way for “one team” approach

Abstract

Purpose

Describes how pharmaceutical giant AstraZeneca moved from site and functionally based human resources (HR) teams that offered a full range of generalist support, to a “one team” approach. A 15 percent cost reduction in service delivery over 3.5 years and a fall in the number of HR staff by 15 percent is intended to payback by 2006 the £5 million investment necessary to implement the new HR platform. Cost savings are firmly linked to improvements in service quality.

Design/methodology/approach

Highlights the inefficiencies of the old system and the ways in which the change to the new system was brought about.

Findings

Contends that the use of HR metrics helped to demonstrate to the AstraZeneca businesses the value of what HR does, and other business‐support services within AstraZeneca are now considering adopting similar models to the HR delivery model. The fundamental rationale behind the programme – to create a more efficient and customer‐oriented delivery of HR services by getting the right customer‐oriented mindset across to HR, combined with the specific skills to manage customer interactions both at strategic and transformational levels – has become a reality. The “one team” approach has brought together everyone involved in HR delivery and there is a great sense of team working, improved communication, a much more consultative approach and a customer‐focused culture. HR is now in line with organizational strategy and is a value‐adding part of the business, contributing to the bottom line.

Practical implications

Highlights the importance of training and good internal communications in helping to overcome reservations about the new system and bring about its smooth implementation.

Originality/value

Contains plenty to interest top management in major corporations who are thinking about restructuring their HR function to achieve greater efficiency.

Citation

(2005), "HR transformation lowers costs and boosts efficiency at AstraZeneca: Site and functionally based service makes way for “one team” approach", Human Resource Management International Digest, Vol. 13 No. 6, pp. 6-11. https://doi.org/10.1108/09670730510619259