Download - Meeting the Top Requirements for a Successful HCM Technology Implementation - Katherine Jones
Meeting the Top Requirements for a Successful HCM Technology Implementation
Katherine Jones, VP, HCM Technology Research
Bersin by Deloitte
Deloitte Consulting LLP
October 24, 2014
Copyright © 2014 Deloitte Development LLC. All rights reserved. 1
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Agenda
• Why Change? Why Now? – what research tells us
• Planning for Change
• Life after Implementation
Assumptions reported are based on data provided by responders to our 2013 surveys.
Copyright © 2014 Deloitte Development LLC. All rights reserved. 3
More
than half
fail 31% are
cancelled
before
completion
53% have cost
overruns of
189%
Source: Deploying HCM Technologies: Making Change Work, Katherine Jones, Bersin by Deloitte, 2014.
Major software implementations are not for the faint of heart.
How Many of You are Planning an HCH Software Implementation Shortly?
• What is it?
• ERP
• HRIS
• Talent Management?
• What is the extent of your implementation?
• Single Site?
• Multi-site but one country?
• Multi-country?
• Global?
Why Change? Why Now?
Copyright © 2014 Deloitte Development LLC. All rights reserved. 6
The impetus for software change can come from many directions:
• The inability to compete in the particular market in which the company does
business
• Lack of timeliness in meeting process or accuracy goals
• Cost imperatives
• Operating HR to increase strategic focus on people
– The inability to easily access workforce information to drive business decisions
– Software obsolescence
– Consolidation from multiple platforms following mergers / acquisitions
Sometimes a new software initiative is ―running from‖ rather than ―running to‖—in
that dissatisfaction with the installed application or the vendor itself drives the
company to new solutions.
Drivers for Change
Copyright © 2014 Deloitte Development LLC. All rights reserved. 7
Replacement Today
3%
8%
20%
25%
44%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Integrated Talent Management Suite
Other
Replace one or more standalone TM applicationswith an integrated TM Suite
One or more of our standalone TalentManagement Applications
HRIS/HRMS
Percentages may not add up to 100% due to rounding.
Source: Investments in Human Capital Management Systems 2014. Katherine Jones. Bersin by Deloitte. 2014.
Copyright © 2014 Deloitte Development LLC. All rights reserved. 8
• 39% of global companies are looking to replace their HRIS/HRMS in 2014-5
– 58% of multinationals
– 42% of national companies
Who replaces an HRMS…and Why
0% 10% 20% 30% 40% 50% 60% 70% 80%
Improve user experience
New, better, faster technology solutions in themarket
Built as ―home-made‖ or heavily customized; better technology available now
Inability to get analytics
Unable to efficiently integrate with other systems
74%
52%
52%
52%
52%
Source: Investments in Human Capital Management Systems 2014. Katherine Jones. Bersin by Deloitte. 2014.
Copyright © 2014 Deloitte Development LLC. All rights reserved. 9
Selection Criteria for the Next HR System
0% 10% 20% 30% 40% 50% 60% 70%
Improved analytics and reporting
Improved end user experience
Integration with or consolidation withother business management products
Cloud based technology
Cost efficiencies/savings
70%
67%
52%
52%
48%
Source: Investments in Human Capital Management Systems 2014. Katherine Jones. Bersin by Deloitte. 2014.
Copyright © 2014 Deloitte Development LLC. All rights reserved. 10
Source: Deploying HCM Technologies: Making Change Work, Katherine Jones, Bersin by Deloitte, 2014.
Strategy Shifts Drive new HCM Implementations
Copyright © 2014 Deloitte Development LLC. All rights reserved. 11
Source: Deploying HCM Technologies: Making Change Work, Katherine Jones, Bersin by Deloitte, 2014.
Changing Business Requirements Drive new HCM Implementations
Where Are You In Your Planning for New Software?
• Just starting
• Picked a vendor
• Planning configurations and mapping the system
to the previous issues
• Midway
Factors for A Successful Implementation
– Planning for the Plan
– Driving the Project
– Planning for the People
– Planning the deployment
– Creating the post-implementation strategy
Copyright © 2014 Deloitte Development LLC. All rights reserved. 14
Get Consensus: Why it Matters
80% of those who created broad-based organizational consensus
regarding the impetus for change throughout the entire project ranked
their go-live ―successful‖ or ―very successful‖
as compared to only 41% of those who did not build a broad
consensus base.
Source: Deploying HCM Technologies: Making Change Work, Katherine Jones, Bersin by Deloitte, 2014.
Planning Makes A Difference: Planning for the Plan
“Early and Often!”
Copyright © 2014 Deloitte Development LLC. All rights reserved. 16
Strategic and Tactical Questions to Consider
Copyright © 2014 Deloitte Development LLC. All rights reserved. 17
A Search and Rescue Mission: Finding Documentation
Institutional memory not a good
source for planning
• Litany of technology processes
• Myriad business procedures
• Idiosyncratic work-arounds
Not because you are going
to replicate the past but to
avoid erroneous
assumptions!
Copyright © 2014 Deloitte Development LLC. All rights reserved. 18
Documentation Lack not Just an Internal Issue
• Product documentation from vendors
may be insufficient or non-existent
• Specific code customizations from the
vendor were either undocumented or
insufficiently documented.
Copyright © 2014 Deloitte Development LLC. All rights reserved. 19
THE PLAN:
• Began harmonization of its policies and processes 18 months prior to the
start of the implementation project
• Consolidated ten or more different time-off policies for its many worker
types into two—much easier to implement and management.
• The HR and payroll team successfully consolidated three payroll policies
to one, again simplifying the effect on the future implementation.
ONE RESULT:
Consider the time-off policy addressed in the example:
If it had to be negotiated during the implementation, it would involve meetings
with various unions, all of which could present significant delays in the
implementation
Source: Deploying HCM Technologies: Making Change Work, Katherine Jones, Bersin by Deloitte, 2014.
=
Case in Point: Large US Services Company
Driving the Implementation Project
Good Drivers Avoid Potholes
HR in the Driver’s Seat
Source: Deploying HCM Technologies: Making Change Work, Katherine Jones, Bersin by Deloitte, 2014.
SaaS transfers decision
control from IT to HR
SaaS transfers
budgetary control from
IT to HR 3%
5%
18%
74%
0% 50% 100%
Team member
Project influencer
Key decision maker
HR drove the project
Copyright © 2014 Deloitte Development LLC. All rights reserved. 22
Staffing Your Project
• Understaffing an issue for 66%
• Only 33% anticipated this
• 44 % — it forced project or
directional changes
• 32% it undermined the health of the
project, causing negative outcomes
to either the project or the
organization
Source: Deploying HCM Technologies: Making Change Work, Katherine Jones, Bersin by Deloitte, 2014.
Copyright © 2014 Deloitte Development LLC. All rights reserved. 23
Change Control
A crucial component in governing a system is a stringent change control
process…
Copyright © 2014 Deloitte Development LLC. All rights reserved. 24
Only 48 % had a well-understood business
case to justify the project on a cost/benefit
basis at project onset
• In fact, 11% didn’t do this at all.
21% did not create broad-based
organizational consensus regarding the
impetus for the change
• Only 21% did so at project onset
Source: Deploying HCM Technologies: Making Change Work, Katherine Jones, Bersin by Deloitte, 2014.
Potholes
Planning for People
How a company
prepares for
change matters.
That a company
prepares for
change matters
even more.
• Identify organizational enablers and
challenges to change and success
• Give stakeholders a voice in decision
making
• Manage expectations through
articulation of the likely impact on
end-users
• Create a broad-based consensus
regarding the impetus for change,
identifying the driving need and
getting agreement that the change is
needed
• Create a roadmap for delivery of
information to affected personnel
• Maintain a focus on the change
process as well as the technology
Copyright © 2014 Deloitte Development LLC. All rights reserved. 27
53% focused
on change
management
as much as
technology—
throughout
the project
0% 20% 40% 60% 80%
"Super users" as first line ofsupport
Work-specific userdocumentation
User training
Ownership culture among end-user (responsibility and self-
reliance)
Time & support for end useradaptation, learning
Clear descriptions of jobrevisions, roles
66%
63%
59%
51%
51%
35%
Source: Deploying HCM Technologies: Making Change Work, Katherine Jones, Bersin by Deloitte, 2014.
Levers of Success
Copyright © 2014 Deloitte Development LLC. All rights reserved. 28
What were the
other 47% doing?
Source: Deploying HCM Technologies: Making Change Work, Katherine Jones, Bersin by Deloitte, 2014.
53% focused
on change
management
as much as
technology—
throughout
the project
Copyright © 2014 Deloitte Development LLC. All rights reserved. 29
If: Neglect Change
Management
Then: Less successful
in other important
matters
Plan to backfill staff
Communicating project’s
requirements with team
Creating escalation and resolution
procedures for conflicts
Adopting an ―in-room
approval‖ approach
Engage end users
throughout
Source: Deploying HCM Technologies: Making Change Work, Katherine Jones, Bersin by Deloitte, 2014.
Copyright © 2014 Deloitte Development LLC. All rights reserved. 30 Copyright © 2014 Deloitte Development LLC. All rights reserved. 30
―Behavior change is the hardest
thing when it comes to the
adoption of technology.‖
Planning Deployment
78% of HRIS
buyers plan a
―big bang‖
enterprise-wide
rollout
Investments in Human Capital Management Systems 2014
What Technology Users Have and What They will Buy in the Year Ahead. Katherine Jones. Bersin by Deloitte. 2014.
Copyright © 2014 Deloitte Development LLC. All rights reserved. 33
Plan Your Roll Out – before you begin!
Source: Deploying HCM Technologies: Making Change Work, Katherine Jones, Bersin by Deloitte, 2014.
Creating the post-implementation strategy The “afterlife” of an implementation
Copyright © 2014 Deloitte Development LLC. All rights reserved. 35
Plan for Ongoing SaaS Applications Management from Day 1
The
SaaS
Difference
• Reiterative releases
• Plan the team early
Source: Deploying HCM Technologies: Making Change Work, Katherine Jones, Bersin by Deloitte, 2014.
Copyright © 2014 Deloitte Development LLC. All rights reserved. 36
WK 1 WK 2 WK 3 WK 4 WK 1 WK 2 WK 3 WK 4 WK 1 WK 2 WK 3 WK 4 WK 1 WK 2 WK 3 WK 4
Month 1 Month 2 Month 3 Month 4 WK 1 WK 2 WK 3 WK 4 WK 1 WK 2 WK 3 WK 4 WK 1 WK 2 WK 3 WK 4 WK 1 WK 2 WK 3 WK 4
Workday Publications / Activities
Corporate Decision / Activities
Review Update Timeline
“Workday Update ## Timeline” published
“Announcing Workday ##” published
“WWS Update: Workday ## Release Notes” published
“What’s New in Workday ##” published
Feature Security recommendations
published Copy of PROD, initial test conversion
Mobilize Release Team
Review lessons learned from previous release Review current issues as well as new
functionality (will new functionality solve any?)
Perform Update
Execute Test Scenarios, and complete “Update Sandbox
Preview Testing” checklist items
Determine / prioritize / configure / test / implement
selected functionality
Complete “Pre-Update” checklist
items Complete “Post-
Update” checklist
items
Complete implementation of any previous release functionality
Product Planning Sessions Held (## & 16)
Begin development / modification of release test
plan and test scripts
“Workday ## Update Guidebook” published containing:
- “Workday ## Feature Considerations”
- “Testing in Your Workday ## Sandbox”
“Planning for Your Workday ## Update Information Session”
Held
Update / Create Training Materials (Job Aides)
“What’s New in Workday ## Documentation” published
Release ## Live
Release Planning Activities
Conclusion
Copyright © 2014 Deloitte Development LLC. All rights reserved. 38
Steps for Implementation Success
Plan—and plan some more
Communicate with all constituents—then over-communicate early
and often
Choose the team wisely, hold them accountable, permit them to
make decisions, and let them go
Think big on continuous change management—it is an Achilles’
heel not to be ignored in a successful implementation
• Take the time upfront to develop a
solid business case
• Begin early to document the points of
product integration
• Plan early for user training – not just
on the product but on how it may
change their job
• Start thinking about your
implementation team early – and
create a plan for getting day-jobs done
while people are working on the
project
• Don’t underestimate the complexity of
a global rollout
Source: Deploying HCM Technologies: Making Change Work,
Katherine Jones, Bersin by Deloitte, 2014.
Lessons Learned
Copyright © 2014 Deloitte Development LLC. All rights reserved. 40
Successful implementations…
• Address business, project management, and
change management issues early and often.
• Focus on the change process as much as the
technology
• Manage employee expectations by clearly
articulating the likely impact on end-users.
Source: Bersin by Deloitte 2014.
HCM Applications Implementation Maturity Model
Technology-Centric Focusing Strictly on Technology • Poor or Nonexistent Change Management • No Clear Decision-Maker •
No Governance & Procedures at Project Start • Lacks a Compelling Business Case
Level 1
Process Automation Champion Identified for Entire Project • Team May Not Involve All Stakeholders •
Ongoing Upgrades Not Included in Project Plan • Inconsistent Communication of Project Status •
Team Indecisiveness Causes Project Delays
Level 2
Process Improvement Inconsistent Communication with Stakeholders & Audiences • Clear Understanding of
Integration Points & Required Effort • Governance Determined at Project Start •
Thorough Vetting of the New Software Capabilities & Gaps Precedes Rollout •
“In-Room” Decision-Making Supported
Level 3
HR Customer-Centric Thorough Documentation of Preexisting Business Processes • Preproject Consolidation
& Rationalization of Business Processes • Constant Focus on Change Management •
Continual Communication & Engagement of Stakeholders & Audiences • Postproject
Job / Work Changes Articulated for Project Participants • Complete Plan in Place for
Ongoing Software Updates
Level 4
Be
rs
in
b
y
De
lo
it
te
Copyright © 2014 Deloitte Development LLC. All rights reserved. 42 Copyright © 2014 Deloitte Development LLC. All rights reserved. 42
Deploying HCM Technologies: Making Change Work Changing Horses Midstream: Drivers of Technology Change Planning for HCM Application Deployment: A Look at Today’s Software Rollout Strategies Beyond Technology: Making Your Vendor a Partner from Acquisition through Implementation Managing SaaS Applications Long Term: Release Management in the Cloud WhatWorks Brief: Deploying HCM Technologies—What Makes an Implementation Successful
Related Research
Available from Bersin by
Deloitte
Thank You!
Questions?
LinkedIn: KatherineJones
Twitter : Katherine _Jones
Blog at www.bersin.com: Technology for Talent
Email: [email protected]
Copyright © 2014 Deloitte Development LLC. All rights reserved.
Member of Deloitte Touche Tohmatsu Limited
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