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Successful HRMS & Self-ServiceImplementations & Upgrades
Brian McIntyre
President & CEO
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WorkStrategy Overview HR management and technology firm
Functional Specialization: HR process improvement,business case development, self-service design,
outsourcing alternatives, change management
Technical Specialization: vendor implementations,system integration and portal deployment
Fortune 1000 Mid-market experience
Verticals: manufacturing, healthcare, publishing &entertainment, legal, financial, utilities, etc.
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Agenda Evolving technology life cycle
Characteristics of a successful implementation/upgrade
Integrating process improvement
Setting executive expectations
Creating synergistic project teams
Building realistic implementation & upgrade plans
Assessing change management needs
Post implementation support
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Technology Life Cycle
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Workforce Intelligence
Findings:
Focus Area:
Issues & Concerns:
Cost Factor:
Getting There:
Getting Buy-in
Process Integration:
Business Case:
Foundations for Workforce Intelligence
Webster Buchanan Research 2004
Reporting capability should be assessed in the context of business process improvements. Targeted automation projects may
generate better management information as well as cost savings and efficiency gains.
The business case investment for improving reporting capability will ultimately rest on a combination of hard returns and a more
difficult, two-stage assessment of the potentialbenefits that better management information could help deliver.
Reporting & Analysis - Board-level concern. Most organizations believe they are NOT fully exploiting this capability.
Improving HCM reporting doesn't always require a prohibitively expensive outlay on technology - in most cases there are
practical ways to leverage existing technology and processes and supplement them with targeted purchases.
Organizations need to improve their HCM reporting regarding: employee retention and motivation, skills management, andremuneration. All three factors have an impact on organizational performance.
Raw data held in various disparate, stand alone IT systems or held manually are needed to provide sophisticated reporting.
Collaboration exercise involving senior management and a wide range of internal departments.
One way to gain participants' confidence is to focus on areas that generate the biggest tangible returns in the short-term before
tracking long-term strategic needs.
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Vendor Releases What to expect
When to upgrade or implement new modules
Determining cost vs. ROI
Integration issues
Competing projects and priorities
Involving vendor, consulting and internal resources
Leveraging user groups and other customers
Note: The upfront license fee is only 1 component of the Total Cost ofOwnership of software over a 3 to 5 year period which includes fees for
implementation, training support, maintenance, future upgrades and other
costs. Webster Buchanan 2004
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Implementation Characteristics HRIS core functions and secondary functionality
no longer phased deployment
includes contractual performance, risk sharing
Technology / sourcing adoption drivers HR survival
costs
new/changed HRM initiatives
obsolescence of services, software business model adjustments
Note: The best run technology implementation projects rely on specialistfunctional input. The level of upfront involvement might well determine how
many glitches crop up further down the road. Webster Buchanan 2004
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Is ROI Important? While many HRIS projects are not approved using ROI
alone, an ROI analysis should still be a component
Coupled with intangibles (employee satisfaction, etc.)
Smaller initiatives still require planning Most HRIS projects today must result in:
less resources to support
reduced hard dollar expenses
improved productivity
lower total cost of ownership
Even the smallest initiatives should track ROI
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Cost of Ownership
Total Cost of Ownership:
Implementation Costs:
Influencers:
Ongoing Costs:
Other Surprises:
Importance of Negotiation:
Good News:
Webster Buchanan 2004
Future Upgrades! Switching to a new platform can be as big as the original implementation. Themore customizations you have, the bigger the project.
It's NOT a waste of time. It's still a buyers market. This depends of the number of vendors you're
dealing with, how strategic your business is to them, and how desperate they are to meet theirquarterly quotas.
If you replace multiple, resource-hungry standalone applications with a single standardized
platform, your running costs could go down once you've absorbed the cost of the new application.
The Negotiation & Total Cost of Ownership Game
TCO is a means for calculating all technology, implementation, maintenance, training and support
costs over a 3 to 5 year period of time
Implementation is a great starting point! In the high-end enterprise market it's not uncommon for
implementation charges to equal 5 times the price of the license: that drops in the mid-market and
at the lower end.
Underlying architecture of the products and the amount of customization are the most importantcontributors. Integration can become an issue when tying together HCM products and linking to
applications such as Financials.
Annual maintenance fees - covering software fixes and enhancements to keep applications current- run around 20% of the application prices. The cost of user training is frequently underestimated!
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Example: Payback Period Time it takes to achieve or exceed breakeven Cost of investment against anticipated cost savings Does not track performance after breakeven
Payback period is the most widely used measure for evaluatingpotential investments. Its use increases in tough economic times,
when CIOs are apt to say things like, "We won't even consider aproject that has more than a 24-month payback.
Copyright 2003 Computerworld
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Business Case Development Define processes
(BPI)
Impact on ABC model
Align w/ strategy
Stakeholder support
Define payback
Create CM plan Define technology ($)
Build cost justification
Copyright 2004 WorkStrategy
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Cost-Effective Technology
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ROI Methodology
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Characteristics of a Successful Project Improvements in process, communication, or cost
Tangible and intangible results
Consistent milestone completion & communication
Quarterly debriefing to management
Change in project direction when appropriate
Smooth transition to production
Key stakeholder acceptance Minimal staff turnover internal or external
Accountability sustained
Majority of original goals were met..
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Combining People, Process & Technology1. Concentrate on business
pains and strategic initiatives
2. Focus on core processes,
largest volume, most expensive e.g. recruiting right staff for
highest producing roles
3. Move administrative tasks toautomation or out the door
4. Leverage technology or re-engineer
Copyright 2004 WorkStrategy
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Implement with BPI !1. Define key HR processes across enterprise
2. Conduct survey of representative staff
identify process steps, time to complete
solicit frustrations, most time-consuming tasks
create workflows, paper use, other costs
3. Calculate cost: average salaries per role
4. Identify time/cost savings for each process
thru technology use
thru re-engineering
5. Develop conservative estimate of savings
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Best Practice Targets Examination & Analysis
Sourcing alternatives (BPO, ASP) Plan design and program management Workforce planning, development, re-tooling Business alignment and business processes
Automation & Streamlining Administrative operations Legal compliance and reporting HR transactions and event management Evolved Roles and responsibilities
Communication & Connectivity HREmployee
Manager employee ObjectivesExecutive manager employee
Leveraging what works Corporate branding and culture Workforce analytics/OD tools Employee & manager self-service technology
3rd party solutions
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Self-Service Big Gains !
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Defining Value
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Build a Team with Synergy
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PM Tools & Resources Project plans (vendor, consultant, internal templates)
Hours and expenses budgets
Project communication
Team preparation
Technology MS Project, Excel, Gantt charts
Implementation methodology templates
Obtaining buy-in and consensus Stakeholders
Steering committee
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Project Phases.Steps.Milestones When milestones are missed, projects start having
problems
Milestones should include:
Every task needed to go live
Everyone should document their tasks in one central location
Tasks (e.g. design, coding, reviews, bugs, integration, clean-up)
When the last milestone is complete the project should
be complete!
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Quality Assurance Commitment to your customers
Quality Assurance activity must be planned, committedto writing and must begin during the requirements phase
(ASSESS) A separate group or person should be used to confirm
quality of work from others
Members should be trained on QA expectations
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Success Checklist
Create and follow a implementation plan
Empower project personnel
Minimize bureaucracy
Define the requirements and manage changes to it
Take periodic snapshots of project health and progress
Re-estimate project size, effort and schedules
Define and manage phase transitions Foster a team spirit!!!
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Implementation & Upgrade Approach
end-user sessions
custom database
functional modules
process v. data
process impact
database transition
data cleanup
information delivery
variable definition
accuracy verification
strategic planning
current v. future state
process analysis
usability
culture
project planning
resources
product setup
table design
customization
tech design
security
user roles
integration points
configure convert
acceptance
functional test
parallel test
performance tuning
move to production
roll-out
go live
deploy train
functional process design
business process improvement
infrastructure planning
knowledge transfer
assess
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Implementation Steps
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Assessment Fit/Gap Analysis
1. Review current project status (reports, strategy docs, etc.)2. Present implementation approach (compare to customer
methodology) As component of eventual HR tech strategy
BPI to ROI, TCO reduction thru technology adoption3. Assess HRM strategy Assess alignment with BUs and infrastructure
4. Prioritize macro-level processes Identify stakeholders
5. Deploy team (assign staff)
Standardize measurement, educate team, create models6. Build workflows with current vs. future state perspective7. Prepare survey scripts, interview Q&A, metrics8. Collect and organize findings for Business Case
Assess workforce impact, CM plans, field interaction
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Business Processes
Compensation modeling
Recruitment and candidate processing
HR data administration
Employee life cycle management Employee communication
Payroll management
Performance management
Benefits enrollment
New hire on-boarding
Line manager self-service
Personnel action flow and approval
Staff development
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Process Improvement
1. Interview those who have day-to-dayinvolvement
2. Drill down to detailed steps andhuman interaction
3. Define bottlenecks, purpose, need,
stakeholders4. Map flow with manual steps, paper,
integration points
5. Analyze potential processimprovement Streamlining by changing/eliminating
process step
Made more efficient through use oftechnology
Workflow automation/emailnotifications
Employee/Manager Self-Service
6. Document proposed future processes
Open Enrollment Steps Staff Involvement
1 OE Project Budgeting HRVP, BEN, OVP
2 Communicat ion Design HRVP, BEN
3 Forms Ordering HRVP, BEN4 Conduct OE Meet ings BEN, LM, Emp
5 OE Forms Generat ion BEN, IT6 Complete Forms Em p
7 Call Support LM, BEN, HRVP8 Forms Collection BEN, IT
9 Data Entry HRDE, BEN
10 Data Cleanup HRDE, BEN, Emp
11 Confirmation Stmts HRDE, BEN
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Case Study Benefits OE
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Case Study Benefits OE: Improved
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Case Study Recruitment
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Case Study Recruitment: Improved
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Infrastructure Analysis
Discuss current/future technicalinfrastructure Database Platform Database Server Database Server Operating System Database Instances
Production Development Test Demo
File Server Client Workstations
LAN/WAN Access
Operating Systems Remote Dial-in access
Discuss current/future userdemographics
Discuss and identify all integrationpoints (interfaces)
Light / Medium Users
HRTEST HRPROD
ProcessScheduler
ProcessScheduler
2 Tier Connection - SQL
Server
processes
ApplicationServer
ApplicationServer
WebServer
WebServer
Developers
SQL
HTML
TuxedopacketsServer
processes
Tuxedopackets
SQL
HTMLHTML
SQLSQL
Development
Windows 2000Server
Production
Windows 2000Server
Production
UNIX Server
3 TierConnection
HRDEV
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Self-Service Implementation Success
Copyright 2004 WorkStrategy
Profile:
2,600 employeesComing from manual ops
4 offices + HQ75% access to computers
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Manager Self-Service
Copyright 2004 WorkStrategy
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Change Management & Training
Written communication & announcements
Manager buy-in & training
Pilot group testing
End user acceptance and experience
Feedback mechanisms
Quarterly reviews with executive team
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Summary
Integrate BPI into your Implementation Methodology
Use a modeling tool such as ABC
Build business cases for each technology project
Assemble user community in team/rollout plans
Assess functional benefits of upgrades
Define real costs of application maintenance/support
Leverage vendor (and their partners) expertise
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Contact Info:
Brian McIntyre
President & [email protected]
Questions
WorkStrategy6990 Columbia Gateway Drive, Suite 300
Columbia, Maryland 21046
410.715.1020www.workstrategy.com