oracle hr implementation best practices english room august 15, 2008 ncoaug training day drury lane...
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Oracle HR Implementation Best Practices
English RoomAugust 15, 2008
NCOAUG Training Day Drury Lane – Hilton Suites
Oakbrook Terrace, IL
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Mario C. Ellis
Director Compensation & HR Systems University of Chicago Medical Center Functional Project Manager for the Oracle
HRMS application at the University of Chicago Medical Center.
20+ years experience, has re-engineered
legacy business processes from mainframe technology to client/server relational systems
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Challenge to implement Oracle HR application Limited budget and resources Lack of a dedicated Project Manager Mandate from senior management Implement a fully functioning application
Manager self-service Compensation Workbench.
No customizations Coming from a customized legacy system Intensive paper driven processes Limited consulting resources
Overview
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Background Decisions Made Overall Objectives Challenge Lessons Learned Summary Questions
Agenda/Contents
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At the forefront of medicine for more than 75 years--delivering extraordinary care to patients from all parts of the world. 2nd largest medical center in Chicago.
• U.S.News & World Report named UCMC to the prestigious Honor Roll of America's Best Hospitals--the top 18 hospitals in the nation.
University of Chicago Medical Center
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Oracle eBusiness Suite 11.5.10 Core HR Manager Self-Service Employee Self-Service Compensation Workbench Performance Management Supply Chain iExpense iProcurment Learning Management
Oracle Applications Implemented
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Background
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The initial project began as a full install of the Oracle Supply Chain, Finance and Human Resources modules in 2001.
The initial project identified over 400 gaps for all applications, resulting in high cost estimates, expanded scope and delay in implementation.
Background
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UCMC reassessed the project to reduce the scope and stay within budget. As a result Scope reduced to implement Supply Chain Scope reduced to implement limited HR and Finance
to support Supply Chain Supply Chain phase went live in June
2003, on-time and budget. HR, Payroll and G.L. modules were to be
scheduled for future implementation.
Background
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The success of the initial project resulted in cost savings for materials management - however limited project budget remained – approximately $1 Million
Background
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Concerns from initial project Management was not convinced that the
remaining Oracle applications were necessary
The HR department lacked the talent and expertise to provide key sponsorship and decision making for the project
Background
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UCMC was still faced with the following challenges
The hospitals has more than 6,000+ employees, with staff as the largest expense
Difficult to obtain accurate and timely employee information Lack of reporting tools hinders the ability for management
reporting Disparate systems do not allow for workflow or integration of
data Inability to efficiently support accreditation/compliance
reviews Changes in employee information was time consuming and
paper intensive
Background
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Heavy reliance on Third Party Vendors to provide needed business functionality
The hospital had a need for a “true” HRIS application Information maintained in multiple spread
sheets, Access Databases, and “shadow systems” that were not integrated
No one source of “truth” for reporting Legacy system was a “payroll” system and did
not allow for the necessary storing and reporting of needed HR related data
Background
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Decisions Made
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Decisions Made
A new VP of Human Resources was hired, who also hired more experienced staff
A fit gap analysis was conducted in June 2005 Validated need to implement Oracle HR (payroll
would be a separate project) Helped to structure the scope, project team,
project methodology and deliverables based on internal resources and remaining project budget
Project approved in fall of 2005 and work began June of 2006
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Overall Objectives
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Overall Objectives
Implement Core HR functionality Integrate with Oracle Learning Management,
Supply Chain and Legacy Financial applications
Restructure work elements – Job, Positions, Grades and Benefit Groups
Improve automation of Union Contracts including Grade Step progression
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Overall Objectives
Introduce a phased rollout of Self Service applications for managers
Institute Merit Award Distribution through Oracle Compensation Workbench
Institute a Directors Incentive Plan Distribution through Oracle Compensation Workbench
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Challenge
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Challenge
Meet the Overall Objectives with: Limited IT and HR staff resources, especially
with extensive Oracle experience No dedicated Project Manager Need to upgrade platform of HR applications
while other Oracle applications (excluding OLM) remained on current platform
Budget remained at approximately $1 million
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Expected State after Implementation
General Ledger - Accounting Structure Foundation
Fixed Assets
Human Resources - Employee & Hierarchy for Approval Routing
Purchasing
iProcurement Inventory
Mobile SC Accounts
Payable
EDI
iExpense
P-Cards
Agency
iSupplier
Learning M
anagement
Com
pensation W
orkbench
Cash M
anagement
Kronos
Payroll
iRecruitm
entHR Self Service
Capital B
udget
Balanced Scorecard
BIS/Customer Access Discover (Roll-Out at Module Level Available)
Budgeting
In Production To be Implemented UCMC Licenses Additional Products
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Lessons Learned
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Lessons Learned
Must Have Senior Management Commitment: Developed Steering Committee that provided
overall project governance, budget oversight and were actively involved in project planning
Senior Management committed to making quick decisions
Senior Management was committed to allowing funding to be spent creatively to meet project objectives
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Lessons Learned
Must Have Dedicated and “Skilled” Project Team: Team members must be flexible enough to wear
more than one hat effectively No dedicated PM resulted in shared responsibility
between UCMC IT, HR and acquired consulting services
Subject Matter Experts are Key Departments filled analyst roles as needed Results in strong ownership of final solution
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Lessons Learned
Must Have Dedicated and “Skilled” Project Team: Ensure team is fully integrated
Improves final product Avoids silos Enhances communication
Team members must be able to think outside the box BUT within the application to make choices without customizations
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Lessons Learned
Must Have Dedicated and “Skilled” Project Team: Team members must be provided sufficient
training (preferably in-house) during key phases of the project
Use consultants wisely UCMC engaged 3 consulting firms based on need and
budget – Oracle being the prime Consultants were used in initial phases then disengaged
before final phases Important that knowledge is transferred to staff
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Lessons Learned
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Lessons Learned
Must Have A Strong and Proven Project Methodology: UCMC utilized a unique project structure
allowing for three successive projects to run at once
Platform Upgrade Integration into Oracle Learning Management HR Implementation
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Lessons Learned
n UCMC followed basic System Lifecycle Development methodology in addition to Oracle AIM for Business Flows (Healthcare) and AIM Phases, Definition and Elaboration
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Lessons Learned
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Lessons Learned
Must Manage SCOPE: Focus on core issues deferring “wish list items” Senior Management must make the hard
decisions to change and be able to say “NO” Do Not concede to the 20% of the 80/20 rule Understand the scale of 1-10 philosophy
A “5” is always better than a “2” No need to always shoot for a “10”
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Lessons Learned
Must Manage SCOPE: Get key decision makers involved in
requirements gathering Validate requirements
Trust but VERIFY
Key message to stakeholders “Vanilla” is good
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Lessons Learned
Allow application “best practices” to govern business processStrapping new technology onto current
processes will negate the value of the technology !!!
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Lessons Learned
Must Manage SCOPE: No customizations - We like the word
“Extensions”
Customizations
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Lessons Learned
Must Manage SCOPE: Oracle Developed a “RICE” list (Reports,
Interfaces, Conversion and Extension) Used to identify and manage requirements Clearly defines what type of requirement If an item was defined as a gap it was
removed and considered out of scope
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Lessons Learned
Must Follow Project Plan: UCMC used a phased approach
Core foundation applications rolled out first followed by specialty applications such as Compensation Workbench and Self Service
Recommended for in-house implementations that are low on resources and can be spread over an extended time
Regular meetings with entire team is critical Communicate potential risks EARLY
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Lessons Learned
Must Follow Project Plan: Set overall project timeline at the
beginning of the project Use project plan versioning as each phase
progresses Track project deliverables in one week
cycles with team reviews on a regular schedule
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Lessons Learned
Test Often: Since UCMC used Oracles Accelerator
methodology Testing was a natural progression of the
process Conference Room Pilots were used to
validate results of testing
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Lessons Learned
Test Often: UCMC utilized HR constituents as part of the
testing and CRP sessions (Very Important) Able to manage expectations company wide Minimizes the “squeaky wheel” Acquire buy-in before roll out This became the official HR core “user group”
to be used for subsequent HR implementations and pilots
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Lessons Learned
Test Often: Do Not overlook parallel testing to validate:
Migration of configurations and code Time required for cutover Execution of conversions and interfaces User interaction in real-life situations System performance Comparison of results with production Uncovers issues with system, training or
communications
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Lessons Learned
Follow a formal Change Management Process : Follow change control process for changes to
scope, overall timeline or budget
Follow a formal Risk Management Project review Process Building in reviews of large deliverables as they
are worked on will confirm approach across the entire team and measure progress
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Lessons Learned
Communicate, Communicate, Communicate
Bring project team together on a regular basis Hold multiple design sessions with key
stakeholders in attendance Distribute meeting minutes for full team review
not just to those in attendance Develop a communication plan for internal
project members, management and external users
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Lessons Learned
Timing is Everything If this would have remained a part of original
2003 implementation it would have failed Lack of HR expertise More customizations Would have been considered a lower priority than
supply chain
The success was due to HR being the only application implemented in 2007 within Oracle eBusiness Suite
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Summary
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Summary
Implementation was on time and under budget 20% was returned to project contingency Core HR live in March 2007 with limited Manager
Self-Service Compensation Workbench live in June 2007
The components that were rolled out to UCMC employees was received favorably Over 6000 users impacted Over 110 departments impacted
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Summary
Core implementation created a solid foundation and methodology for further implementations
Online Performance Management (2008) Increased Manager Self-Service (2008) Employee Self Service (2008) Payroll (2009) General Ledger (2009)
The implementation fostered a strong and successful working relationship between UCMC HR and IT
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Questions?
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Mario Ellis Director, Compensation & HR
Systems University of Chicago Medical Center E-mail: [email protected]
Contacts