PPS Initiative Changing the Way We Work

PPS Initiative Changing the Way We Work Dick Rison Jennifer Wich University of California Human Resources December 8

1 Agenda Leading Practice: Achieving HR Effectiveness in Higher Ed PPS Initiative Project Goals and Objectives PPS Initiative Project Scope and Phasing Project Structure and Governance Project Timeline Project Ground Rules A Framework for Systemwide Shared Services What We Know and Don t Know Questions and Answers

2 Components of HR Value and Effectiveness Operational Effectiveness Program Effectiveness Efficiency HR Effectiveness is Achieved Through Rigorous Focus on Three Key Areas HR Effectiveness

3 Lesson From General Industry: HR Effectiveness Versus HR Efficiency 100% The average HR budget is ~.5% of Company Revenue (1.4% of operating expenses). 90% 80% 70% 60% 50% HR Effectiveness impacts this. (Company Revenue) Hewit Aon Hewitt research demonstrates that a 10% increase in attracting and retaining pivotal employees adds approximately $70 to $160M to a company s bottom line. 1 1 Hewitt Associates 2007 Human Capital Foresight Research covering HR data of more than 1,000 large companies and more than 20 million employees. 40% 30% 20% 10% HR Efficiency impacts this. (HR Budget) HR expenses are important. For a company of 30,000 employees, the HR budget will average $65M per year. Even a 10% savings is over $6M annually. 0%

4 How HR Delivers Value and Achieves Effectiveness Relentless Focus on Key Levers Lever Outcomes Organization Performance Talent Supply Continuous supply of qualified talent Mission alignment Program Effectiveness Leadership and Key Talent Capabilities High Performance Growth in key capabilities High-performance workforce Innovation Talent Engagement Employment Relationship Compelling employment bond Growth

5 How HR Delivers Value and Achieves Effectiveness Relentless Focus on Key Levers Lever Outcomes Organization Performance Strategic Alignment HR strategy aligned with organization strategy Mission alignment Service Delivery Model/ Organization Optimally organized to deliver key services Innovation Operational Effectiveness Process and Execution People Technology Seamless customer experience Process optimization Rigorous analytics and insights Right people, right skills, right staffing levels Technology optimization Talent Engagement Growth Efficiency Cost Management High output-to-input ratio Performance measurement Return

6 HR Planning Getting to HR Effectiveness Strategy Stated Mission Talent Execution Strategic intent Organization design Critical tasks Interdependencies Climate and culture Innovation focus Formal organization Provides Input Human Capital Input Internal trends (e.g. based on employee engagement) Provides Input External trends (e.g. based on demographic changes) HC/HR Strategy Review Key Strategic HC/Focus Areas Human Capital Strategy Talent Organization Capabilities Outcomes Focus areas Culture Key Initiative Design Campus/Medical Center Focus Area Consolidation Operational HR Strategy HR programs and key initiatives Alignment and consolidation Evaluation of Strategic Performance and Outcomes HR Planning

7 Top 10 HR Strategies for Higher Ed* 2011 Top 10 HR Strategies Ranked Cost Talent and Engagement Performance 1 2 3 4 5 6 n= Percent Controlling benefits/health care expense 40 49% Improve leadership development and succession planning 37 46% Attracting and retaining skilled/professional/academic talent 34 42% Developing and maintaining faculty and staff engagement 29 36% Improving faculty and staff diversity 26 32% Driving a high performance work environment 21 26% HR Strategy 7 Changing HR s strategic direction/priorities to address critical staffing issues 20 25% Service Delivery 8 9 10 Deploying or enhancing manager and employee self-service 18 22% Implementing technology to support talent management processes 18 22% Up-skilling HR competencies of HR Staff 15 19% *Aon Hewitt s HR Effectiveness in Higher Education Study, to be published January 2012

8 Tiered-Model for HR Structure Proven Organization for HR Organization Management Applicants - Employees - Managers - Executives Contact* Self-Service BU HR (Partners) * telephone, email, fax, face-to-face Subject matter experts Enable College/Department HR technical expertise Ensure program design effectiveness Centers of Expertise Consultant partner to organization Enable COE/HR by advising around needs Ensure organization alignment and support HR Shared Services HR Technology Standard service provider Enable College/Department by assuming routine contact and admin work Ensure consistent service delivery HR Leadership Governance Committee

9 HR Service Delivery Model Clearly Define Delivery Architecture Utilize a combination of levels to balance low-cost service delivery and culturally appropriate service personalization Utilize a highly developed operations toolset/ infrastructure to drive integration between the delivery layers Department: work is performed at the Department level, mostly due to historical precedence, resource proximity, cultural acceptance Campus: work is performed for Campuses that is unique to their specific needs; factors such as talent requirements, historical precedence, and funding sources often drive this model Systemwide: design and delivery is performed in a globally consistent manner to afford the lowest cost of delivery and derive the greatest value systemwide Dept. Campus Systemwide All in-department delivery drives excessive cost and complexity. All systemwide delivery can result in poor customer satisfaction and adoption.

10 PPS Initiative Project Goals and Objectives Implement modern technology and tools for managing UC s workforce Simplify and standardize HR, Payroll, and Academic Personnel administrative processes Improve efficiency and service quality through new approaches to service delivery Achieve long-term, sustainable cost savings

11 PPS Initiative Project Scope Implement Enabling Technology Future State Payroll and HR Service Delivery Streamline and Standardize Processes Centralize Transactional Activities Higher Quality More Efficient Lower Cost Replace PPS with Oracle s PeopleSoft payroll, HR and Benefits systems. Standardize and streamline all related payroll, HR and APO business processes UC-wide. Centralize transactional payroll, HR and APO processes to be more efficient, higher quality and less costly.

12 PPS Initiative Project Scope and Phasing Campus / Medical Center Campus Campus Portals / &/ Medical Medical Systems Center Center Identity Systems Systems Management Financials SIS Data Warehouse HRMS Payroll System GL Integration Integrated Portal Time & Attendance Phase 2 Health & Welfare integration and selected HR functionality expansion Data Warehouse Phase 3 Phase 1

13 Phase I: Concurrent and Integrated Work Streams 2011 2012 OCT NOV DEC JAN FEB MAR APR MAY JUN JUL Aug Sep Oct Nov Dec Launch Project PeopleSoft Design and Implementation Systemwide HR/Payroll Shared Services Design and Implementation Phase I Go-Live

14 Project Structure and Governance Executive Project Sponsor Peter Taylor, CFO Nathan Brostrom, EVP Business Operations Executive Steering Team Project Director Tony Lo Project Management Office Change Control Practices Board Management Workgroup Local Project Teams Central Project Teams Testing Data Conversion Process Management Standardized Process Designs Execution & Escalation of Issues Strategy Approach Methodology Coordination

Central (Systemwide) and Local (Campus/Medical Center) Resources and Activities Central Resources & Activities Central PMO UC Project Manager Oracle Project Manager PMO Team Systems Implementation Lead Planning & Business Requirements Lead Configuration and Development Lead Data Lead/Testing Lead Technology Lead Enterprise Architect/Data Architect Shared IT Services Manager Identity & Access Management Lead Migration Lead Change Management & Comm. Lead Training Lead Shared Services Core Design Team Project Lead Sr. Campus/Medical Center Leaders representing HR/Payroll and APO Local Resources & Activities Local Leadership Team HR/APO Leadership Payroll Leadership IT Leadership Local PMO PMO Project Manager Project Coordinator Communications Lead Planning & Requirements HR/APO Subject Matter Experts (SMEs) Payroll SMEs IT SMEs Configuration & Development Functional SMEs/Technical SMEs Data Clean-up Functional SMEs/Technical SMEs Interface and Conversion Functional SMEs/Technical SMEs Testing Functional SMEs/Technical SMEs 15

16 Project Structure and Governance Executive Project Sponsors Peter Taylor, CFO Nathan Brostrom, EVP Business Operations Executive Steering Committee Monir Ahmed UCM Susan Carlson UCOP David Ernst UCOP Steve Relyea UCSD Christina Valentino - UCSC Gretchen Bolar UCR Ron Cortez UCSB John Meyer UCD Dan Sampson UCOP John Wilton - UCB Wendell Brase UCI Dwaine Duckett UCOP Jack Powazek UCLA Barrie Strickland - UCSF Management Workgroup Project Management Office Mike Allred UCD Mike Baptista UCOP Steve Chilcott UCD MC Gwen Lake UCLA MC David Odato - UCSF Chuck Rowley - UCR Paul Weiss UCOP Rich Andrews UCI Paul Craig UCSD MC Dave Curry UCLA (internal audit) Don Larson - UCSD Pat Price - UCOP Dan Sampson - UCOP Peter Woon UCI MC Allison Baird-James UCLA Karl Heins - UCSB Sheryl Ireland - UCM Charlotte Moreno - UCSC Jeannine Raymond - UCB Nancy Tanaka - UCOP

17 Project Structure and Governance Practices Board APDs Cindy Doherty, Cynthia Leathers, Pat Price, Pamela Peterson CHROs Tom Leet, Jeannine Raymond, David Odato, Marilyn Voce Controllers Mike Allred, Allison Baird-James, Don Larson, Delphine Regalia, Peter Woon Change Control Board Sue Abeles (Payroll), Lubbe Levin (HR), Nancy Tanaka (APO), Paul Weiss (IT) Project Management Office Anthony Lo, UC Project Director Doug Johnson, Oracle Project Director

Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Training PeopleSoft System - Timeline 2011 2012 2013 Integration and Conversion Strategy Design Sessions HR/APO SMEs Payroll SMEs Project Teams & Activities Configure Application Functional Designs Technical Designs (Conversions, Interfaces ) Build & Unit Test (Interfaces, Conversions...) Mostly Functional Activities * Mostly Technical Activities * Payroll Parallel Testing * Each Key activity will be led by UC and Oracle experts from PMO Prepare SIT Scenarios System Integration Testing (SIT) Update Business Process Maps User Acceptance Testing Data Mapping for Conversion Performance Testing Cutover Prod Data Cleanup End User Training 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

19 HR/Payroll Shared Services - Timeline 2011 2012 2013 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Shared Services Blueprint Design Validation Validation Validation Facilities Planning Facilities Build Technology Assessment Technology Requirements Technology Selection Technology Implementation Staffing Strategy, Role definitions Training Curriculum Training Development Training Delivery Development of Operational Procedures Interactions Model and Change Planning Transition Planning Change Management and Launch Prep Post Go- Live Design Build/Execute Project Teams & Activities 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

20 Project Ground Rules Maximizing Efficiency and Effectiveness All locations will have the same processes for HR, payroll and academic personnel. For all locations: Data definitions will be the same Policy implementation will be the same To drive a lower long-term cost of ownership, we will implement software as one standard UC configuration and change our processes to fit whenever possible. Transformational Change Past practices will not dictate future practices. Where efficient and effective, we will centralize transactional processes. If a desired process change is not aligned with existing policy, we will examine the policy and take action to change it if viable. Maintaining Strong Momentum We will maintain strong momentum and a sense of urgency in order to achieve benefits quickly. All locations will have an internal project governance structure that enables timely decisions, communication and execution of project deliverables.

21 When This Project is Complete There will be a single payroll and HR solution for all UC employees. Employees will have access to their information and be able to make changes using online self service. Dedicated customer support staff will provide accurate and timely information by phone or online. Payroll processing will be real-time, automated, efficient and accurate. HR, payroll and academic personnel transactional processes will be simplified and consistent across all UC locations. UC will deliver higher quality payroll and HR services at a substantially lower cost. Centralized technology support will be provided.

22 How Will This Benefit Me All UC faculty, staff & students will receive high quality, consistent customer service There will be uniform policies and procedures for all UC campuses, leading to more systemwide collaboration and sharing opportunities for campus employees HR, Benefits, Payroll, and APO personnel will be able to focus on the analytical work, not the transactional side There will be a high degree of data integrity, which will allow for more strategic decision making for campuses around work force summaries, payroll trends, etc.

23 HR/Payroll Systemwide Shared Services Framework Roles Systemwide COE Systemwide policy and program design Vendor selection and SLA monitoring Leading-practice research Consulting to senior leaders on systemwide issues Manage escalated cases or policy exception requests Main Responsibilities Creating frameworks and toolkits for use by campuses and medical centers for systemwide initiatives Locating external resources to supplement expertise and knowledge Involving campus/medical centers and shared services in systemwide policy and program designs Systemwide HR and Payroll Shared Services Campus HR, Payroll, and APO Teams Processing payroll for all campuses/medical centers Processing tax payments Managing tax payments and payroll compliance Handling routine and non-routine employee and faculty inquiries around policies and process Providing PPS navigation support and password resets Processing individual, as well as mass transactions Administering systemwide HR programs Managing the systemwide HR and payroll portal Consulting with department/school leaders on issues affecting people Supporting the communicating and implementation of new systemwide policies and programs Designing and implementing campus or medical center specific policies or programs Designing and executing existing or new campus/ medical center recruitment, rewards, and learning and development programs Conducting employee relations investigations and managing resolutions Escalate cases to Shared Services or COEs Managing vendor invoices and payments; manage day-to-day vendor issues and interfaces Managing HR data and standard reporting; consult on ad hoc data and reporting needs Manage HR records and compliance Providing consulting for new processes and programs and application to PPS Manage interfaces to local systems Posting payroll data to general ledger Designing and executing existing or new campus/ medical center recruitment, rewards, and learning and development programs or other programs that are specific to the entity Collecting and analyzing campus/medical center specific data needs Manage escalated cases or policy exception requests Collaborating with systemwide COEs on new policy or program design Refer faculty and staff to shared services channels

24 Illustrative Example Tiered Support Tier 0 Tier 4 Systemwide COE Advise HR Leaders and staff on policy exceptions and escalated cases Locate external resources to supplement expertise and knowledge as needed Manage high-risk, compliance-driven cases to resolution Tier 4 Tier 3 Employee/Manager Inquiries Tier 3 Campus Resources Provide approvals, decisions, and communications Interpret compliance policies, programs, and plans Advise managers on employee relations issues Manage high-risk, compliance-driven cases to resolution Investigate employee disputes and claims Participate in Tier 1-3 case resolution as needed Web Phone Online Case Tier 2 Tier 1 Tier 2 Escalation Specialized Knowledge within Shared Services Systemwide Service Center Initial Inquiry Understand the specific situation Apply policies, programs, or plans Document and escalate cases as appropriate Offer alternatives and considerations to employees Investigate and resolve escalated cases Interpret policies, programs, or plans Field initial inquiry Ask clarifying questions Provide policy, program, or plan information Document cases Execute approved exceptions Warm transfer to Tier 2 as appropriate

25 What We Know, What We Don t Decisions that Have Been Made Support for Payroll, Workforce Administration, Leaves of Absence, and Benefits will be provided within the Systemwide Shared Services The following services will not be supported centrally: Staffing and Recruiting, Learning, Performance Management, Employee and Labor Relations Manager self-service (MSS) and employee self-service (ESS) will be primary service channels We will have call center representatives staffed to support employees, managers and HR/payroll staff Decisions To-Be-Determined The design of the Systemwide Shared Services Center (is underway) The detailed scope of services, at the process level (is being finalized) What will remain at the Campus/Medical Center versus what will be handled within Shared Services (this is in-process) The organization structure for the center including roles and staff levels The technology tools and requirements for the center The transition plan for moving the work and people into the shared services center Training needs for the shared services staff

26 What We Know, What We Don t (continued) Decisions that Have Been Made Decisions To-Be-Determined The following entities will be early adopters who will go live in Wave I: UCLA and Medical Center, UC San Diego and Medical Center, UC Santa Cruz, UC Merced, and UCOP The funding model has been developed and is in the process of being finalized The Change Management Network structure and participants (this is in process now) The number of centers (by end of December) Where the center(s) are located (targeted by end of January) The governance structure for the ongoing Systemwide Shared Services function Who will be impacted by the change to shift to a central shared services What support will be provided for those whose jobs are impacted (targeted by end of January)

27 Need Information Working Smarter Website Project communication contact at each location Working closely with local communication team Local communication team will develop communication plan to support their campus or medical center Straightforward and timely information for changes that impact work processes, jobs, roles and organization Weekly updates for project team posted to SharePoint Email listserv for stakeholders to ensure up-to-date information on project status, issues and next steps News stories at milestones http://workingsmarter.universityofcalifornia.edu/projects/payroll-personnel-system/overview/

Questions You may also send questions or offer input by sending email to: pps.initiative@ucop.edu http://workingsmarter.universityofcalifornia.edu/projects/payroll-personnel-system/overview/ 28