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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Human

Resources

Talent

Acquisition

Leadership

Development

Learning &

Development

Talent

Management

Tools &

Technology


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.


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?


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


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.


• 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%



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%




Strategy Shifts Drive new HCM Implementations



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


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.


Planning Makes A Difference: Planning for the Plan

“Early and Often!”


Strategic and Tactical Questions to Consider


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!


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.


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


=

Case in Point: Large US Services Company

Driving the Implementation Project

Good Drivers Avoid Potholes

HR in the Driver’s Seat


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


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



Change Control

A crucial component in governing a system is a stringent change control

process…


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


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


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%


Levers of Success


What were the

other 47% doing?


53% focused

on change

management

as much as

technology—

throughout

the project


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


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.


Plan Your Roll Out – before you begin!


Creating the post-implementation strategy The “afterlife” of an implementation


Plan for Ongoing SaaS Applications Management from Day 1

The

SaaS

Difference

• Reiterative releases

• Plan the team early



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


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


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]

http://www.bersin.com/Blog/Default.aspx?id=743e55c5-ac69-4a5c-9cb5-997ef277606d

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