AUGUST 14, 2013

The Energy Industry and Workday: A Customer Panel Discussion About the Benefits of Workday

• Introductions • Overview – Pioneer Energy

– Business Case– Business Goals– Evaluation Criteria– Why Workday?– Project Scope– Benefits– Next Steps

• Overview – Arch Coal – Business Case– Business Goals– Evaluation Criteria– Why Workday?– Progress

• Audience Q&A

AGENDA

• Reminder: You’re on mute!• This is being recorded and materials will be distributed to

attendees.• If you have questions, please submit using webinar

control panel. • If we do not get to your question, we will follow up with

you after the user group.• A brief feedback survey will be sent via email. Please

help us by filling it out!

HOUSE RULES AND INFO

MEET COLLABORATIVE SOLUTIONS

• A go-to Workday consulting partner – one of the originals--with a strong reputation in the industry

• Seasoned consultants with 10-15 years of experience with enterprise solution delivery

• Over 170 Consultant Certifications

• Workday product leads across the entire Workday suite

• Thought leaders in the ERP industry

• Implement and optimize the full spectrum of Workday solutions

• Work with customers of various sizes in various industries – experience with organizations ranging from 1,000 – 200,000 employees

• Deploy Workday globally, in over 100 countries to date

• Use real-world experience and best practices to deliver projects that exceed expectations

• Technical and functional expertise – most Workday Product Leads in ecosystem

• Leverage in-house developed CYNERGY™ for Workday methodology

• Built Change Management activities in CYNERGY™ to optimize deployments

• Use a proactive management approach to ensure that projects are finished on-time and on-budget

WHO WE ARE WHAT WE DO HOW WE DO IT

PRESENTERS

Kathleen LeavyEngagement ManagerCollaborative Solutions

• 10+ years of HCM and Payroll implementation experience

• 8 Workday implementations

Bill SchneiderVP, Information TechnologyPioneer Energy Services

Dave PeschDirector, Talent Management

Arch Coal

PIONEER ENERGY SERVICES

ABOUT PIONEER ENERGY SERVICES

Founded: 1968

Industry: Pioneer Energy Services provides land contract drilling and production services to oil and gas exploration companies large and small.

Locations: Pioneer is located throughout the major oil and gas regions within United States and Colombia. The Corporate headquarters are located in San Antonio, Texas.

Employees: approximately 3,800 worldwide (3,200 within the U.S utilizing Workday)

BUSINESS CASE

• Legacy system could not meet the current or future needs of the organization• Intricate payroll complexities couldn’t be effectively or efficiently

handled.• Limited ability to expand functionality and integrate additional

systems.• Numerous payroll inconsistencies and errors each pay period.• No ability to automate business processes.• No Employee and Manager Self Service Capabilities.

BUSINESS GOALS

• Accurate and efficient payroll processing

– Reduce manual entry

– Automate retro pay calculation

– FLSA and Multi-state Tax Compliance

• Automate many of our current processes and provide the ability for electronic review and approval (Hire, Promote, Transfer, Pay Increase, Terminate)

• Facilitate and ease onboarding of new hires

• Automate absence management (FMLA, Vacation, Sick Leave, LOA)

• Increase visibility and reporting functionality

• Provide employee and manager self-service

– Automate and streamline employee changes

– Option for paperless payroll with online visibility of pay slips

– Online Benefit Open Enrollment

– Reporting visible to all managers

EVALUATION CRITERIA

Human Resources• New Hire Processing

• Position Management

• Employee Pay rate Management

• Benefits Management

• Compensation Management

• Performance Management

• Learning Management

• Employee/Manager Self-Service

Payroll• Efficiency of Payroll

Processing

• Multi-state Taxing

• FLSA Compliance

• Garnishments

Technology Platform• Integration Ability

• Update Management

• Workflow Capabilities

• Reporting Capabilities

• Security Architecture

• Platform Direction

WHY WORKDAY?

• Efficient and accurate payroll processing– Retroactive change processing

– Automated FLSA and handling of multiple garnishments

– Ability to run payroll calculations concurrently

• Flexibility and capabilities in electronically automating business processes

• Ease of automating employee benefits enrollment and ongoing management

• Technology platform – Update management

– Reporting functionality imbedded within the application and security

– Integration capabilities

– Overall roadmap

• Implementation time and overall total cost of ownership

PROJECT SCOPE

Go-Live: 4/1/2013• Workday Core HCM• Absence Management• Benefits• Compensation• Payroll• 19 Integrations

BENEFITS

• Significantly improved system performance and availability– Largest Pay group – 1,350 employees (Calculation time of

approximately 10 minutes)

– Payrolls processed more timely which allows time for additional review and audits to ensure accuracy.

– Consistent payroll calculation results

• Ability to delegate HR processes to field locations through the use of Workday business processes

• Manager visibility to effectively manage direct reports

• Manageable integrations with benefit providers, banking institutions and other on-premise systems.

• No maintenance of on-premise infrastructure or application updates

– Disaster recovery and systems security managed by Workday

• Employee and Manager Self-Service (September, 2013)

• Online Benefits Enrollment (November, 2013)

• Expand use of Business Processes (December, 2013)

• Total Compensation Statements (Q1, 2014)

• Employee Onboarding (2014)

• Time Tracking (2014) *

• Recruiting (2014) *

• Performance Management (2015)

* Modules not currently purchased

ADDITIONAL PLANNED PHASES

ARCH COAL

ABOUT ARCH COAL

Founded: Arch Coal was formed in July 1997 through the merger of publicly traded Ashland Coal, Inc. and privately held Arch Mineral Corporation.

Industry: Energy/Coal

Locations: Mining complexes located in Wyoming, Utah, Colorado, Illinois, West Virginia, Kentucky, Virginia, and Maryland

Employees: Approximately 6,000

BUSINESS CASE

• Oracle HCM and Payroll End of Life 12/31/2013.• Oracle become unsupported effective 12/31/2013 and

can no longer be used for our HCM and Payroll functions. Moving to a new HCM and Payroll system is now not just a nicety but a necessity.

• Oracle system is cumbersome with a great deal of customization.

• Oracle system is costly to maintain.• Oracle has limited reporting capability; seriously limits

value in strategic decision making

BUSINESS GOALS

• Our goal is to implement the entire Workday application by 1/1/2014. Specifically, we will:

• Go-live January 1, 2014.• Provide employees and managers access to HCM data.• Free up HR from administrative chores in order to focus on HR

strategy.• Be a model for the implementation of other systems across the

organization.• Show that sometimes process change is better than

customization/building new systems.• Process accurate payrolls.

EVALUATION CRITERIA

− Went in wide open− Considered upgrading Oracle− Considered ERP solutions− Considered SaaS solutions

WHY WORKDAY?

• Overall met our needs more broadly

• Other vendors excelled in single processes, fell short in others, offerings limited

• Workday is a growing provider of Saas and reputation is very high, leading edge, and gets better all the time with continuous upgrades

Workday user experience highest of survey

PROGRESS

• Design sessions completed• Business Processes defined and signed off• System Testing in progress

• No show stoppers found• Extracting data from legacy systems has been cumbersome• Movement in integrations requirements has been an issue

QUESTIONS?

ENERGY INDUSTRY QUESTIONS FOR US?WORKDAY411@COLLABORATIVESOLUTIONS.COM