F 4 STANDING COMMITTEES. Finance and Asset Management Committee. HR/Payroll Modernization Program (HRPM) Go-Live INFORMATION

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1 F 4 HR/Payroll Modernization Program (HRPM) Go-Live INFORMATION University administration and the will provide the Board of Regents an update on the progress of the HR/Payroll Modernization Program (HRPM) in advance of go-live of the new Workday system. BACKGROUND HRPM is the largest administrative transformation effort in the University s history. It is a multi-year initiative developed to replace the University s 35-yearold legacy payroll system with a modern, integrated system to manage human resources and payroll functions essential to supporting the University s large and diverse workforce. The Board of Regents approved HRPM and selection of Workday as its new HR/Payroll system in February The new system will transform the University s human resources and payroll operations, significantly improve compliance, reduce risk, provide better data for decision-making, and increase efficiencies across the institution. HRPM is the first step in a larger strategy to modernize the administrative infrastructure University-wide. REVISED PLAN: ON SCHEDULE AND ON BUDGET In May 2016, the Board of Regents approved an additional $7.8 million in funding and an extension of the launch date for the new Workday system to summer The team has made substantial progress in the last year. HRPM is on schedule and on budget, allowing for a Workday system launch on June 27, with the first paycheck issuance on July 10. HRPM s Executive Sponsors are actively involved in tracking progress, reviewing outcomes of extensive testing, and making key decisions. Robust risk mitigation plans are in place, along with a multiple-channel program of training and support to facilitate a successful University-wide transition to Workday.

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3 HR/Payroll Modernization Program (HRPM) Go-Live (continued p. 3) TESTING THE SYSTEM HRPM has continued its multi-layered approach to testing, with increased intensity as go-live approaches. This testing provides reliable data to inform the go/no-go decision. HRPM is focused on the following final preparations for golive: Integrated End-to-End Testing (ie2e) ie2e testing ensures end-to-end business processes, including integrations and reports, are working. This testing uses scenarios involving multiple processes that make up the entire employee lifecycle (e.g., creating a position, hiring, taking leave, returning from leave and retirement). ie2e also tests for integrations with other systems, such as banks, UWHIRES, or the Enterprise Data Warehouse. Milestones: ie2e completed its cycle 3 phase, executing 172 end-to-end test scenarios. These scenarios involved approximately 1,277 individual unit tests and resulted in 75 individual test defects, all of which have been resolved Ongoing testing continues, involving 240 end-to-end scenarios, which includes approximately 1,948 individual unit tests Parallel Payroll Testing This testing provides one of the best indicators that employees will be paid accurately at go-live. During this testing, Workday is run using current employee data, including taxes and benefits, for the same pay cycle as payroll in our legacy system. Every employee s gross and net pay are compared, variances are identified and researched, and issues are categorized, fixed, and then re-tested. Milestones: In March, Parallel Payroll Testing cycle 5 was completed for the pay cycles ending November 30, 2016 and December 15, 2016: o 48,072 total employees were reviewed o 95 percent passed with Gross Totals $ Variances within a threshold of $0.00-$0.50 (outstanding results for this stage of implementation) The team is currently finishing the analysis of our 6th parallel test, which included the cycles ending February 15, 2017 and February 28, 2017 The 7th cycle began the week of May 15, 2017

4 HR/Payroll Modernization Program (HRPM) Go-Live (continued p. 4) User Acceptance Testing (UAT) HRPM has conducted multiple rounds of UAT, in which University administrators and other users tested end-to-end business processes they will perform in Workday. Milestones: UAT took place from late February through mid-april Approximately 380 University users attended UAT over the course of two cycles to execute various test scenarios, including validating system usability, user guides and Workday business processes Exit surveys of UAT participants: 97 percent of respondents agreed or strongly agreed that they had increased familiarity with the configured business processes in Workday Approximately 12 percent of respondents expressed a general level of anxiety with this scale of change, as well as the workload that will be required at go-live - Addressing these concerns, training will continue through go-live and beyond into the stabilization period, and will emphasize benefits of Workday and efficiencies that the new system will bring. This includes significant reduction in paper transactions and integration with UWHIRES and other key human resources, payroll and benefits systems. The change management team is identifying individuals with specific concerns and providing oneon-one support and encouragement for their successful transition to Workday Feedback from UAT and faculty focus groups indicated excitement to use Workday, as well as confidence in th s preparations and planning for golive Additional Testing Performance Testing, which validates the infrastructure and performance of the system and identifies opportunities to improve overall performance, is now complete The first round of Operational Readiness Testing (ORT) was conducted and measured in May. This full-scale test of the ISC staff readiness and processes incorporates more than 500 scenarios drawn from anticipated end-user cases and enables benchmarking for continuous process improvements heading into go-live and through the stabilization period.

5 HR/Payroll Modernization Program (HRPM) Go-Live (continued p. 5) First-round ORT brought into focus areas of training that needed to be fortified and expanded upon, and ISC trainers have revised and enriched the curriculum accordingly. A second round of ORT will be conducted in the next few weeks PEOPLE READINESS HRPM s comprehensive change management initiative is on track with activities intensifying as we approach go-live. In person training for employees with assigned security roles in Workday began in early May, and the ISC website went live on May 15 with user guides and videos for all employees to learn about Workday. More online training will be added to the website in June. The change management initiative focuses on a people-first approach designed to help units work effectively with the new Workday system and business processes. It is organized around a seven-step process, which is based on best practices in change management. This initiative is essential to the success of the Workday implementation and to supporting the University in adapting to the new system.

6 HR/Payroll Modernization Program (HRPM) Go-Live (continued p. 6) HRPM is now focused on the following steps through go-live: Step 5: Learn new skills (training) Step 6: Do our new work (go-live and stabilization) To support the change process: Each University unit has designated a Readiness Lead who meets twice a month with a HRPM Change Manager. Change Managers assist in answering questions, navigating obstacles, and keeping units on track with their readiness work Readiness Leads meet monthly as a group, facilitated by HRPM to foster a community of practice Units have also identified Readiness Teams, who meet monthly with Readiness Leads to prepare for and learn about Workday HRPM is continuing to produce detailed communications to support Readiness Leads in making incremental progress in preparation for go-live: A weekly newsletter summarizes HRPM activities and flags goals and deadlines A monthly status report rolls up data collected by HRPM Change Managers and assesses the readiness of each University unit People Readiness assessments incorporate data including meeting attendance, review of unit business process designs, and participation in readiness activities Technical Readiness assessments reflect activity, including completion of tasks related to identifying systems, assigning criticality, and defining impacts of Workday on units University units report that they are on track in both People Readiness and Technical Readiness measurements. Known issues are actively being addressed and monitored daily. HRPM has identified and is focusing additional resources on supporting campus units with any risk of not achieving full readiness and ensuring their successful preparations for go-live. In May, more than 700 of the most intensive Workday users received 8-10 hours of personalized, instructor-led training. Directly following training, these individuals were required to pass an assessment before being granted authority for these critical processes, as their roles directly affect payroll and benefits. HRPM provided a total of approximately 500 hours of instructor-led training. In addition, a series of meetings were held with Readiness Leads and key unit stakeholders to showcase the reporting capabilities in Workday and plans to provide access to hundreds of reports in Workday at go-live.

7 HR/Payroll Modernization Program (HRPM) Go-Live (continued p. 7) More than 10 computer-based training modules, 300+ user guides (with step-bystep instructions), and a library of training videos, were developed and are being published in phases (based on the greatest needs of employees and managers). Training for faculty, staff, and student employees, conducted primarily via these tools, will occur in June and July, offering flexibility and convenience. THE INTEGRATED SERVICE CENTER (ISC) The ISC is in a state of readiness and will become fully operational when Workday goes live on June 27. Construction of the ISC office space was completed in March and the ISC staff moved in to begin training on April 26. ISC staffing is nearly complete, with 95% of staff positions filled. The development of the ISC is fundamental to the success of HRPM. The new organization brings together HRPM support functions from Academic Personnel, Human Resources (including Benefits), Payroll, and UW Information Technology, enabling an integrated approach to service delivery. It is designed to be the central customer support resource across the University community. The ISC s objectives include: Enhanced customer service Optimized operations and data integrity Continuous improvement Consistent use of technology The ISC is a one-stop source for help on questions about human resources, benefits, payroll, time tracking, and Workday support for all of the University s employees. It will include a drop-in center, open during regular University business hours, a comprehensive website, and phone and support. An ISC Executive Director has been selected and will begin work in June. Also, to provide continuity and maximize the benefit of knowledge transfer, the majority of the staff within the ISC has experience at the University as follows: 35 percent of ISC staff are transitioning from HRPM 42 percent have previously been employed in University human resources central business units, including benefits and payroll 13 percent are transitioning from other University units Throughout the month of May, the ISC was engaged in an intensive training program, which included more than 40 classroom courses designed expressly for

8 HR/Payroll Modernization Program (HRPM) Go-Live (continued p. 8) the University implementation of Workday, and the ISC shared services organization model. The ISC website ( became available to all University employees on May 15 with an initial set of information. More resources will be added for completing payroll, benefits, and other transactions. When complete, the website will provide a comprehensive set of training materials and other resources. MANAGING RISKS HRPM continues to work actively to mitigate known risks. Bluecrane Inc., an external consulting firm providing independent quality assurance support for HRPM for nearly two years, recently confirmed that it has identified no current unmitigated risks. Additionally, a recent report from Internal Audit has affirmed HRPM has no issues at this time, and a member of the State Office of the Chief Information Officer attends Executive Sponsor meetings to ensure HRPM is moving forward appropriately. Major risks with potential to impact our go-live date are listed below. Risk Changes to wages, hours or working conditions must be bargained with the unions. Agreements reached last spring need to be evaluated to reflect new and emerging design decisions. Delays are slightly impacting ISC hiring timeline. Some report requirements are still being defined, which will push report build into ongoing ie2e. There is a potential lack of technical readiness at the unit level for go-live. Not all shadow systems across campus have been identified. Mitigation Outside counsel has been retained to support UWHR and HRPM in managing labor relations, communications, and coordination. The team has built-out an interactive reports catalog, and the HRPM is prioritizing the building of critical reports. To address this issue in a timely manner, the team added staff resources. HRPM has sent out multiple surveys to identify unit level shadow systems, but HRPM understands that some may still exist that have not been identified. HRPM is engaging directly with Technical Readiness Leads and System Owners from each unit to identify and mitigate impacted systems.

9 HR/Payroll Modernization Program (HRPM) Go-Live (continued p. 9) THE FINAL SPRINT HRPM has implemented a systematic decision-making process for the go/no-go decision. It uses a go-live readiness scorecard analyzing 412 distinct measures critical to the successful implementation of Workday. The third and final go/nogo decision is scheduled for June 15. The following efforts are nearing completion: System configuration Integration of numerous legacy systems Data migration and conversion Continuous examination of impacts on University business processes The University s design, testing and implementation of Workday is emerging as a model for institutions of higher education embarking on similar projects. HRPM s change management, people and technology readiness, and training efforts are showing positive, measurable results on preparing the University for the transition to Workday and new business processes. While there are still some inevitable risks associated with this type of transformation, HRPM has extensive mitigation plans and continues rigorous testing and robust systems reviews. When Workday goes live, the administrative process efficiencies and business intelligence will simplify, streamline, and improve operations across the University. HRPM will fundamentally change the way the University does business, affecting over 45,000 employees working across three campuses, medical centers, and offsite facilities around the globe.