Choosing the Right Implementation Approach for Success in the Cloud

One Size Does NOT Fit All

Kevin Copithorne, VP Consulting | Talent ManagementHRIZONS

September 18, 2015

A Paradigm Shift in Home Entertainment

A Paradigm Shift in Home Entertainment

Revolutionized User

Experience

Quality Programming

Disruptive Industry Impact

Any DeviceSubscription-

based

Simple Setup SaaS

HCM TECHNOLOGY

Poll 1: What is Your Organization’s Position on SaaS?

WHY

?

Avoid at all costs (on Premise only)

OK as functional point solution (Hybrid)

OK for enterprise applications (Hybrid+)

We mandate it (SaaS only strategy)

GETS IN CAR

STEP1 DRIVES

TO VIDEOSTORE

STEP2

MAKESSELECTIO

N

RENTSMOVIE

STEP4

DRIVESHOME

STEP5 WATCH

ES(DVD OR

VHS)

RETURNSTO

STORE(Late)

STEP7

STEP6

STEP3

PAYLATE FEE

STEP8

©2014 HRIZONS, LLC. All Rights Reserved.8

So Why Expect the Same Implementation Approach to

Work for SaaS?

One Size Does Not Fit All

Agenda:

Evolution of HCM Technology

Implementations and Gotchas

Five Approaches to Consider

Choosing the Right Approach

Evolution of HCM Technology

Adapted from Bersin by Deloitte

Clouda.k.a. SaaS

SaaS

Standalone HR Applications Payroll, BenefitsHR AdministrationBusiness Function

Payroll-DrivenAutomate and

Comply

Talent ManagementPerformance AppraisalLMS, RecruitingApplicant TrackingStandalone Applications

Succession, SelectionRich Talent Profiles

Workforce RedeploymentPay for Performance

Integrated TalentManagementEmployee ProfilesPerformance ManagementSuccession PlanningHR Talent Platforms

People ManagementCareer DevelopmentWorkforce ManagementWorkforce PlanningHR Business Platforms

WF Analytics & PlanningSocial and MobilityiHCM in the Cloud

Integration with HRMS

Automation of ProcessesRefinement of ProcessesReporting and Analytics

ASP

Mainframe

Client Server

Client Server

Client Server

+ ++

On Premise vs. SaaS ImplementationsOn Premise HCM SaaS HCM

Design approach

CustomizationDesign for long term

Configuration (1 code base)*Design for near term

Project methodology

Believe it when you see itWaterfall – get right the 1st time

See it and believe it (tangible)Agile – iterate until right

Time to value Longer Quicker

Cost to implement

Higher Lower

Deployment flexibility

All or nothing deployment Flexible: Pilot --> Full Deployment

Post Implementation

Slower, more costly fixesHigher pain threshold before CoRGenerally larger change impactCostly upgrades & barriers

Rapid, lower cost fixesMore immediate CoRsIncremental change (i.e., maturity)No cost upgrades, opt-in functions

* Some SaaS technologies opening up architecture to 3 rd party extensions

Implementation Tendencies and Gotchas

Tendency GotchaTransformational change Over-whelming user base and

under-estimating change impact

It’s the way we’ve always done it

Misaligned requirements, RFPs, project methods

Squeaky wheels and HR siloes Missed opportunities & integration

Over-estimating team’s capability

Marginal on project job and day job

Deferring to technology vendor/ partner

Leading with technology vs. process

System Integrator Challenges

The HCM Cloud paradigm shift has not been easy on SIs:

Remote/lower cost, lower margin model

New agile, iterative methodology

Tendency to ‘do what you know’ (on prem. methodology)

Reskilling consultants - courses are not enough

Make sure your implementation partner has ‘made the shift’!

Implementation Approaches for SaaS

5 Approaches to Consider…

1. Proof-of-Concept To establish a repeatable process (manual or

automated) BEFORE full deployment

For broken or net new processes

Good for business cases, requirements validation and risk mitigation

2. Best-of-Breed/Rapid Deployment Preconfigured ‘best practice’ design deployed

quickly, where there is little concern for legacy

For those processes needing quick time-to-value

?

3. Standard Standard approach for most software vendors

To automate an established, usually standardized process (manual or other automated system)

Assumes client knows what they want and need

4. Process First Advanced approach to drive process

standardization, optimization and/or leading practice process design

For processes with disparate workflows and/or systems (e.g., distributed organizations)

5. Integration First Comprehensive approach for upstream and downstream

process integration, optimization and risk mitigation

For ‘silo-busting’ and rigorous quality requirements (e.g., 6 Sigma)

Choosing the Right Approach(es) for SaaS

5 Factors to Consider…

Implementation Factors for SaaS Complexity

HCM Maturity

Risk Tolerance

Readiness

Complexity

Platform Complexity:

Number of Systems

On-premise, SaaS, Hybrid

Number/Type of Integrations

Languages/Globalization

Licensing Terms/Schedule

Process Complexity:

Process Variance

Standardization & Adoption

Number of Sub-processes

Compliance/Regulatory

HCM Maturity (by Process)

Goal: Triage & Compliance

Goal: Consistency & Effectiveness

Goal: Efficiency

Goal: Optimization & Integration…

Goal: Talent-based Advantage

Risk Tolerance

Continuous Improvement

Transformational

High Risk

• Risk of failure: 5 – 10%

• Risk of failure: 20 – 35%

• Risk of failure: 35 – 50%+

Incremental• Risk of failure: 10 – 20%

Ch

an

ge M

gm

t.

Investm

en

t*

Implementation Risk0

5 - 10%

10 – 17.5%

17.5 - 25%+

0 – 5%

* % Project Budget to Add for CM/C

SaaS

On-Premise

Common Implementation Risks Change Impact on Users Compressed Schedule Competing Initiatives History of Failed Implementations Resource Gaps (Team, Budget) Insufficient Motivation for Change

People/TeamReadiness

StrategicReadiness

Program Readiness

Process Readiness

OrganizationalReadiness

InfrastructureReadiness 0

5 5

5

55

5

33

3

33

3 11 1

11

1

Areas of Greatest Risk

Readiness

ApproachMaturity Levels

CostTime-to-

ValueRisk

ToleranceChange Impact

Proof-of-Concept* Surviving Low Rapid Low-Mid Low

Best-of-Breed/Rapid

Surviving- Standardizing

Low-MidRapid -

ModerateMid-High Mid-High

StandardStandardizing -

AutomatingMid

Rapid- Moderate

Low-Mid Low-Mid

Process-First All Mid-High Moderate Low-Mid Mid-High

Integration-FirstAutomating - Transforming

HighModerate -

LongerLow Mid-High

*Manual or Automated

Choosing the Right Implementation Approach

Thank You

Kevin CopithorneVP Consulting & Services kevin.copithorne@hrizons.comDirect: 612.326.9677 x103Mobile: 403.966.2510

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