Project Fusion Engagement Kick-Off Event

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Agenda Duane McNair

• Introduction

Michael Gawargy • Strategic Alignment

• Business and Technology Drivers

• Project Strategy

• Rationale for Key Decisions

Carolle Gauthier • Future State Functionality – Finance & Payroll

Diane McCutcheon • Future State Functionality – Human

Resources

Carolle Gauthier • Key Milestones

All • Questions & Answers

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Strategic Alignment

Fusion supports the implementation of the College’s ERP strategy & enables the successful realization of the College’s Strategic Plan (2012-2017) by supporting the following goals:

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• Leverage technology to automate and modernize our business processes, fostering an environment of continuous improvement

Goal 6

• Attract, develop and retain employees who have the knowledge and skills to be fully contributing members of the College.

Goal 7

• Create the technological foundation to align with the digital direction.

Goal 12

Business Drivers

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INP

UTS

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TCO

MES

• Listening Tour

• MNP Risk Profile

• Digital Strategy

• IT Strategy

• Auditor Letter of Recommendation

• Empower & enable departments to manage their own reporting, data analytics

• Focus resources on value-added services vs. manual transactions

• Reduce current ‘centralized’ model for IT support on corporate applications

• Deliver on top three risks: Business Process Automation; IT Infrastructure; Human Resource Strategy

• Take advantage of SaaS solutions which are feature rich, stay current & ensure a cohesive administrative set of processes

• Address gaps in IT Controls of corporate systems

Technology and Infrastructure Drivers Aging infrastructure and legacy disparate systems have a significant impact on solution integrations

Increased complexity in IT resourcing (scarce skill sets and disappearing systems knowledge)

Inadequate system and process documentation

SaaS solutions transfer some of the operations risk to the SaaS vendor such as power outages, loss of data, etc.

Eliminate data duplication and integrity issues by centralizing business and data information

InfoSec industry best practices not fully implemented, need improvements to identity and access management to mitigate against future data breaches and deficient IT controls

Lack of support for mobile access

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Project Fusion Strategy

• Provide value added, contemporary, integrated HR/Pay/Finance solution with standardized interfaces to enable future expansion and timely integrations

• Automate, re-architect and document enhanced business processes

• Centralize business information and remove duplication

• Improve data integrity and business intelligence (BI) to foster business agility

• Provide simplified access (i.e. direct, mobile access)

• Eliminate need for custom software development by specialist IT staff

• Enhance IT security controls that have been highlighted as deficiencies by our external auditors

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Rationale for Key Project Decisions

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Key Decision Rationale

SaaS Delivery model

• Cloud services position the College to meet changing business needs with open, agile and secure solutions that meet industry standards

• Centralizes business information and data that is not managed through interfaces with issues of synchronization and currency

• Expansion of value add business functionality is inherent with continual upgrades that offset the effects of falling behind the competition

• Enables streamlining of administration and implementations of typically complex integrations

• Operational risk is shared with SaaS vendor (i.e. standards-based data center, availability, fault tolerance, disaster recovery, data integrity)

• Supports best practices, business process automation and keep-current documentation

Rationale for Key Project Decisions

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Key Decision Rationale

Unified Solution • Leverage common functionality

• Reduces operational efforts as the alternate “best in breed” approach has a multiplier effect and cost on administration, infrastructure, support and maintenance which is not viable in the long term

• Provides consistent user experience

• Enables the ability to respond quickly to integrations

Phased Deployment Approach and Timeline

• Significant change to business processes impacting all employees, phasing will provide more time for business to digest and adapt to the change

• More time to verify solution and train employees as less modules rollout in parallel

• Research indicates possibility of “subscription fee vacation” or deferral of solution costs for phased implementation

Rationale for Key Project Decisions

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Key Decision Rationale

Professional Development (PD) Rollout

• Based on research, this functionality is not part of an integrated ERP solution

• A separate PD solution will be sourced

Budget System (BUS) Replacement Rollout

• Based on research, robust budget functionality within an ERP solution is not available

• A separate budget solution will be sourced

ERP data does not have to reside only in Canada

• Based on an assessment, data may reside in the US, Canada and member states of the European Union (EU)

Future State Functionality: Finance & Payroll

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Travel & Expenses: • End-user and Manager process completely

manual (paper request for approval, travel expenses, payment).

• Paper-based backup documents

Payroll: • T4s created/mailed manually • Many payroll processes supported by

manual/paper forms (e.g. On-call pay, overtime, etc.)

Travel & Expenses: • Employees and managers enter requests and

approvals online with electronic backup. • Complete visibility to status • Automatic payment on approval

Travel & Expenses: • Time savings for employees and managers. • Reduced time from expense to payment • Improved accuracy (no manual

calculations)

Payroll: • Elimination of manual effort, paper, mailing

costs to produce and distribute T4s. • Improved accuracy – reduced errors/rework. • End-user visibility to submissions and status.

CURRENT PROCESS FUTURE REQUIREMENTS BENEFITS

Payroll: • T4s auto-generated and avail online • Elimination of all paper forms. Payroll data

entered by employees/managers online

(AP) Procure-to-Pay: • Cumbersome process causing rework by

end-users and purchasing • No end-user visibility to status of

RX/PO/Payment • Manual Payments

(AP) Procure-to-Pay: • Improved workflow procurement process. • Full visibility to status of RX/PO/Payment and

associated documents. • System defaults for vendor/product data • Electronic Funds Transfer (EFT)

(AP) Procure-to-Pay: • End-user time savings when creating RXs • End-User visibility to status of requests • Reduction of PO errors, and re-work • Reduced effort and cost associated with

manual payments

(AR) Order-to-Cash: • Completely manual system. • No end-user visibility to status of requests

(AR) Order-to-Cash: • Automated process with workflow for

Sales Orders/Invoice Requests • Elimination of all paper forms. Payroll data

entered by employees/managers online

(AR) Order-to-Cash: • End-user and Manager time savings

through automation of manual process. • End-User visibility to status of payments. • Elimination of paper forms.

Future State Functionality: Finance & Payroll

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General Ledger: • Paper-based Journal Entry backup

process. • Manual effort to reverse JEs.

Financial Reporting: • Only high-level view of account

balances available in PeopleSoft.

General Ledger: • Ability to attach an electronic copy of the

JE backup to transactions. • Automated posting of reversal JEs

General Ledger: • Ease of accessibility to JE backup by

Auditors and college staff. • Time savings

Financial Reporting: • Time savings when investigating or

reconciling accounts. • Quick and accessible detail level data for

managers.

CURRENT PROCESS FUTURE REQUIREMENTS BENEFITS

Financial Reporting: • Ability to drill to transaction details

within financial reports.

Treasury & Cash Mgmt.: • No Treasury System. • All cash management processes are

completely manually (Excel).

Treasury & Cash Mgmt.: • Automated system providing Treasury

and Cash Management functionality.

Treasury & Cash Mgmt.: • Timely, accurate data enabling

optimum usage of surplus cash. • Increased revenue from investments.

Asset Management: • Effort-intensive annual process to split

orders into multiple assets or combine multiple PO lines into one asset.

Asset Management: • Automated ability to split/combine

assets from POs

Asset Management: • Time savings when creating assets. • Improved Accuracy of Fixed Asset

Data.

Future State Functionality: Recruiting

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• No talent pipeline: resume bank not searchable

• Poor candidate experience & brand reputation risk

• Multiple manual steps in process

• Outdated technology

• Answer repeated questions via phone & email

• Talent pipeline available

• Improved candidate experience

• Automated workflows

• Faster pre-screening

• Standardized tools & templates for interview process

• Mobile access for hiring managers

• Service desk approach for dealing with front line Q’s

• Improved brand image

• Time to hire reduced: Time to post jobs; Time to screen

• Less potential for error

• More availability to provide consultative services: I’m not looking for a day-to-day [HR] person; I’m looking for someone to help us with people insights and planning.”

Future State Functionality: Performance Management

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• Manual processes for Support & Academic processes

• Inconsistency in manual probation process

• Limited access to metrics: e.g. completion rates of due / overdue evaluations

• Comprehensive view of talent and performance for both managers and employees

• Improved process for ensuring performance issues are addressed within the probationary period & can be acted on

• Automated performance management processes

• Probation process will be automated and hard-wired based on date of hire. All employees will go through probation.

Future State Functionality: Workforce Management

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• Complement and vacancy reports highly manual

• No capability to produce organization charts

• No ability to future date assignment of positions numbers

• Duplicate data entry: No link between BUS & HRIS

• Reporting capability on organization structures & complements/ vacancies with direct access for managers and HR

• Real time and future dating transactions

• Better visibility into workforce data:

• Helps mitigate risk from labour perspective

• Better informed decisions on organization structure

• Enhanced services offerings from HR around workforce management will with align with the RCM model

Future State Functionality: Time Reporting (PT Pay)

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• Significant time spent on manual processes

• Time spent on added steps

• Process results in many late entries: ~2,000 manual entries /yr (avg 75 / pay cycle) = ~14 days based on 3 min per entry

• Improved process for employees

• Automated workflow of approvals, no data entry required

• Logic built into system: Tracks overtime, double time, etc.

• Embedded analytics & reporting

• Time savings: on data entry, contract creation, tracking

• User satisfaction improvements with process & system

• No manual entries required for late sheets submitted – built into workflow

“The [current] Part-time Pay process is electronic – but not automated” ~Process Improvement Task Force town hall, 2015

Future State Functionality: Leave/Vacation

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S • Manual, inefficient processes:

• Duplicate data entry

• Tracking of vacation liability

• Corrections done manually

• Errors & under-reporting due to retro data entry

• Streamlined, automated process:

• No duplicate data entry

• Self-serve, real-time & future-dating

• Dashboard reporting on vacation liability by department

• Time savings within HR department

• Increased value-add services

• Earlier intervention in sick leave & reduced time off

• Increased accuracy of data

• Reduction of vacation liability

Future State Functionality: Benefits

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S • Double entry of benefits for Sun Life and HRIS

• Manual data entry at multiple points in process

• Activities impacting pay result in a print screen with written instructions being walked up to Payroll (3,000+ per year)

• Data entry eliminated with direct access & bridge from Plan Services System (Sunlife) to HR system

• Integrated payroll solution

• Total rewards statements available to employees, reducing standard inquiries

• Substantive time savings, repurposed to higher value-add activities

• Reduced errors from eliminating data entry (cost savings)

• Increased employee awareness of benefits, resulting in better usage

Future State Functionality: Pension

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S • Increasingly complex CAAT requirements, inflexible legacy system

• Manual processes time intensive, error prone: (T4s; enrolments)

• Resource risk: heavily dependent on limited ITS resources

• Data entry eliminated: Direct access for all employees

• Integrated payroll solution removes need to manually connect with payroll

• Time savings & reduced errors on enrolment, retirement, termination, implementing CAAT pension changes

• Meet compliance obligations to CAAT Attestation programs, avoid fines

Future State Functionality: Mandatory Training & PD

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• Risk of non-compliance, fines & legal action: risk up to $500K fine or criminal charges

• Highly manual processes for PD

• Poor user experience for employees looking for PD

• Direct Access for employees to register & track

• Improved user experience such as searching for courses, tracking completion

• Automated processes for PD: can easily add courses, waitlist

• Avoid penalties for non-compliance & risk of law suits

• Maintain College reputation as Top 25 Employer

• Substantial time savings on managing PD processes

• Position the college to deliver on its Digital Strategy

Key Milestones

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Date Key Milestone Objective

May 15 Notice of Proposed Procurement (NPP) onto MERX

To provide vendors with our proposed RFP and identify issues and constraints

May 25 – Jun 12

Vendor Consultation Sessions 1x1 full-day meetings with qualified SaaS providers to gather feedback and refine our RFP

Jun 26 Post RFP onto MERX To obtain bids from qualified vendors

Sep 15 – Oct 9

Vendor solution walkthroughs with shortlist of vendors

To verify proof of solution and to allow vendors to reduce ambiguities in order to refine pricing

Oct 9 Best & Final Offer (BAFO) submitted

Vendors submit their final and best pricing bids based on the RFP and participation in the Solution Evaluation Sessions.

Nov-December

Signed Contract Contract Negotiation

Key Milestones Continues

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Date Key Milestone Objective

Dec 2016 – Jan 2017

Planned HR and Payroll Go-Live

Start processing Calendar 2017 Payroll Transaction in the New Solution.

March – April 2017

Finance Go Live Start processing all Fiscal 17/18 Financial Transactions in the new System.

Summer 2017 Professional Development (PD) Go Live

Addition of Professional Development functionality to HR solution.

Oct 2017 New Budgeting System Go-Live

Budgeting functionality not available in all potential SaaS ERP solutions – this may be a separate integrated budgeting solution.

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