educause western regional conference san francisco, california april 25, 2006 & hank childers...

1

Educause Western Regional Conference

San Francisco, CaliforniaApril 25, 2006

&

Hank ChildersHR-Research Analyst

The University of [email protected]

John WilsonCoordinator, Information

WarehousingThe University of Arizona

[email protected]

The Prince

Ain’t Coming…IT Strategy With What You’ve Got

April 25, 2006 2© 2006 The University of Arizona

Copyright• Copyright Henry A Childers and John L Wilson, 2006. This work is the intellectual

property of the authors. Permission is granted for this material to be shared for non-commercial, educational purposes, provided that this copyright statement appears on the reproduced materials and notice is given that the copying is by permission of the author. To disseminate otherwise or to republish requires written permission from the authors.


INTRODUCTION

• Section 1 – Background and the BIG idea• Section 2 – Modular alternative based on

experience with Employee Information System application architecture

• Section 3 – Observations and Recommendations

Note – The views expressed are the authors’, not necessarily those of The University of Arizona.


THE UNIVERSITY OF ARIZONA BACKGROUND

• 37,000 students, BA to PHD and MD• Very complex with Medicine, Ag, many

statewide locations, major subcontracting of aerospace contracts, etc.

• Administrative activity very complex; heavily decentralized as units address special needs ad hoc

• Admin systems – big 4: Employee, Financial, Student, and Sponsored…all VERY old


BACKGROUND: CHANGES IN IT ENVIRONMENT OVER TIME

• UIS (an operational data store) – 15 years and ever more widely used

• Data Warehouse -- 13 years covering most major systems data

• User environment: shadow record systems and diverse local office automation

• Student Link → Employee Link • Coping with legacy systems: fixes, add-ons

and some modernization, e.g., “tablization”


THE SQUEEZE

• Old systems, fragile, lacking key features• Budget shortfalls (Snow White still singing

“Someday My Prince Will Come”), differential cuts force central offices to automate

• Central automation projects → de facto delegation of responsibility to units

• Units want central service but their way (often reflecting their homegrown systems)

• Frustration everywhere: DO SOMETHING!


EVOLUTION OF IT STRATEGIES

• Strategy in 80’s-90’s had 3 parts: one box, one platform, one vendor– Within 4 years: all 3 parts broke down

• Tried to contract out “IT problem” ... no luck– Conclusion: Admin system replacements are BIG

systems and BIG projects…and the “3rd rail”

• Strategy: 4 big systems, all needing substantial work: address one at a time starting with Student system


CRACKS IN THE BIG SYSTEM IDEA

• Experience of BIG system replacements elsewhere → limited enthusiasm for trying it

• Student Link (separate front end using the web)• Student system project: problems, taking too long• Payroll and other system risks• Coping outside the main system(s):

– Office automation – central & unit level, all different– Cross-system “solutions”: Student Link to address

Financial Aid system problems; use of UIS• Kuali


WHY THE BIG SYSTEM PREMISE?

• Implied, rarely declared, premise• Whole world talking ERP: big, expensive• What major vendors were selling• Too many options otherwise: vendors,

outsource, build your own• Search for management simplicity given

complexity we experience• Misunderstanding of what integrated system is

and why it is “good”


WHY THE BIG SYSTEM PREMISE (2)?

• System changes seen as a hammer for enforcing Improved business processes

• Belief that modules, i.e., partial systems, prevent “getting what you really want”

• The systems “don’t talk to each other”• Lots of powerful metaphors and stories• AND…no IT strategy group to analyze strategy

in detail


HEARD AROUND THE CAMPUS

• “Things will be so much better when we have a real HRIS.”

• “It’s too bad you guys went ahead and implemented Career Track*, because its success undercuts the case for proceeding with an HRIS.”

• “If we get to the Rose Bowl, we’re dead!”

* Applicant Tracking using People Admin


WHO’S IN CHARGE OF EMPLOYEE SYSTEMS?

• Central systems software and data managed by Central IT (VP for Learning and Information Technologies and CIO)

• Primary Personnel System owned by Systems Control & Budget Office (VP of Business Affairs)

• Benefits and other HR functions owned by Human Resources (VP of Campus Life)

• Payroll owned by Financial Services (VP of Business Affairs)


THE MEMO NOT SENT

• Alternate idea – Define Employee Information System application architecture– Modular set of discrete components– Series of smaller, semi-independent, lower-risk projects– Allow for combinations of build, buy, lease, outsource

• Latent support for this idea on campus• Decision to launch HRAA (Human Resources

Application Architecture) project covering all employee-related systems


APPLICATION ARCHITECTURE PROJECT

• 5-Person working team, representing all involved owner areas

• Method:– Document current architecture– Develop conceptual architecture– Look at data and functions and interconnections, not

organizational units (what, not who)– “Let the current architecture tell us its story.”

• Diagrams as primary work products


APPLICATION ARCHITECTURE PROJECT STAGES

1. Payroll

Adjusting Entries

Incumbent Info(Position Control)Dynamic Detail

Marriage between person and the position he/she is in

“Plan” Exception Reporting:

PCN, FTE, ACCT.

WageAssignment

Court-ordered deductions

(COD); levies (fed); credit or garnishments

Including prioritization procedure

Benefit Admin(emphasize employee choices)

Voluntary Benefits

(cafeteria): Health, Dental,

Vision, STD, life, [All $$$]

Involuntary Retirement and

LTD [Participation]

Employee Link(metaphorical)

W-4A-4

Correction FSO

Operations

Voluntary Benefits:

FSA,Campus Rec,

Parking,TSA,

Savings,Auto,

Savings bond, Ret. buyback)

[All $$$]

AccumulatedBalances

(Earnings Code Balances (incl.

Vac, Sick, Comp)

Business Rules(include look up

tables and everything else)

[W-5]UA Cares

Direct Deposit

Dollar Bal. Adj.Emerg. Checks (HDC)

OverpaymentRefunds

One-time Ded.

EE Demographic

Depts(Vac/Sick/Comp/

Adjustments(eForms)

Windstar(P/R)

DEPT

Prior PPAdjustments

Expense Tfr

ISWAdjust.

YTD QTDFTD LTD

PAR

CalculatePay

VacationSickComp time

Calculate Accrual Balances

GrossPay

Migration

Pay Rate

“Contract”Account(s)

Incl. NOR for Grad StdIncl / Tuition Deferral

Payroll Functions

(DD, W-4, A-4, History, etc.)

Payroll Functions

(DD, W-4, A-4, History, etc.)

Gross Pay+ Perqs- Deds- Reductions+ Refunds+ Credits= Net Pay

1099 DBDeceased Payments

Excel File

For historical purpose only

Parking

Grad College

Tuition remit

ISWPOPR

ISWPUTR

Incentive Pay from AHSC

FRS

Benefit

Benefit AdministrationCatch up - Refunds

Payroll Functions

Cancellation, W4, A4, DD info

Reimbursements

Retro Outside PR

Previously Unreported Time

Life Work & Connection

(LWC) Sick Children Program

Bursar

Tickets

Taxable QTR

A/P

Taxable Moving ExpensesHousingAuto, Misc.

ICA

Taxable Tickets, Seats

ICA & AG Auto Perks

PET

3rd Party Payments (Detail & Summary)

PayrollAccounting (3rd party)

Agencies (State,

Federal)

Balance (Control)P/R Accounting

-Unemployment- Worker’s comp- Ret-FICA- etc.

- Wage garnishment- Health- Dental- 403B, 457- FSO- Campus Rec- Etc.

DistributePay to external

entities

Control

Acctg JournalEntries

(liquidation)

FRS Accounting

System

Employee detail (Payroll Audit Record - PAR)

BalanceAdjusting Entries

and Payroll Corrections

Edits

Summary+ Errors

+ Deds not taken

P/R and P/R Accounting

Disb Reg’s

Control

P/R Totals (e.g. ERE pools)

Calc EREPeriodic

Reporting (P/R Acctg)

P/R Register(Payroll Audit

Record - PAR)

ISW

Benefits & Personnel Reports

Oper/Admin

Year-End Process (P/R)

EE’s

1042'sW-2s

Feds and State

1042s, W-2 Files

Expenses info:Vac/Sick Accrual (hrs)

Edits

Sources of Adjustments

(External Feeds)

Items to think about:* COTI (vesting) – talk

about later when we explore Benefit Administration

Payroll Functions

(8233 Data, YTD, PAR

History

PAR HistoryYTD History

Direct Deposit History

Electronic Rpts.( Payroll, Payroll Edits, Payroll Tax);Payroll Applic.

FSO Ops

Payroll Functions (IRS W2, Non-Res

Reporting)

Depts

Ded not taken, suspended

balance report, etc

UIS

FY_Expenditure_Tbl

Paymart

FSO A/P

Distribute Pay to EEs

Dump All

Direct Deposit

Employee LinkSuppress Print Advice

Financial Institution

ACH File

DD Statement (Advices)

Warrants

DEPT EE

EE

PSOS

Handdrawn checks (on and off_cycle))

Calculated P/R:Gross, Net Pay, Leave, Vacation

Handdrawn checks (on and off cycle)

US Mail

FM [see note](capture and edit)

Student Union[see note]

Kronos

Fac Design & Constr [see note]

Web-based System

Online Time Roster System(Payroll Rep enters all)

400+ depts

FM EEs Time Hours and Account Distribution

Direct Feed

Student Union EEs(Kronos)

Time

Hours and Account Distribution

FD & C EEs(in-house web based)

Time Hours and Account Distribution

Electronic TimeSheet (ETS Web)

ARL System

Anthropology System

Pharmacy System

Kronos

AHSC

LibrRes Life

B/S

Campus Rec

Atty Office

BETR & ETRPaper-based

ETC.

Not automated

NOTE: Separate systems created for cost accounting reasons, but no feedback from P/R.

Looking to replace

Flat file

Flat file

Incumbent (Dump All)Static Detail

UIS

Incumbent (Dump All)

Static Detail

Incumbent (Dump All)Static Detail

Hours and Account Distribution

Batch file

UIS

Handdrawn checks (on and off cycle)

Pre-Edit Process

Pre-Edit Process(SSN, Valid EE,

PCN, Acct, Hours)

Batch File

Reconciliation Control

Note: Engine is also used for test payroll.

HRAA, Payroll Calculation Process Diagram, Final Diagram

Campus Rec

PLAN

View pay stub

Human Resources Application Architecture (HRAA) Team:

Hank Childers (Team Leader)Priscilla CantuCecilia EsguerraJohanna ValdezJohn WilsonSuzanne Zimbardo

EE Demographic

Budget & Position Maintenance

(PSOS)

Corr of pay this pay period

Adjust entry next pay period

Bi-Weekly Payroll Detail

Refunds and adjustments

Rate(s) per hourLumpsum/ Flat dollar

DemographicsEID&

Job Code

Position/ Incumbent EID

EE TypeEE StatusStatus Effective DateAge (life insurance)CitizenshipState/Country (tax purposes)Semester term/student status/Credit hoursWithholding Status/AllowanceGarnishment flag8233 info (treaty)/ visa exp. date

Element CodeDeduction/Perq

Balances ($$$ & Hrs Records)(auditable)

EID[Cost Assignment]$$$[Earnings code]

EIDCost AssignmentEarnings Code

$$$

Cost AssignmentEID

$$$

Element + Deduction codesTax Rules (FICA, State, Fed, Tax Treaty)PriorityEmployer ContributionFringe Benefit Rules*Final Check Event

$$$ (as necessary)% (as necessary)

Declining Bal (limits)Pay Term

Event?

Period-to-Date

EE & ER (Employer)

pay correctionsfringe benefitsIncr/decr salary

Payroll Conceptual ModelBy HRAA, 5-26-05

Incl one-times

(Employee contracts)

Note on Using Effective Dating and Audit Trail: Using effective dates and incorporating audit trail (transaction stamping) in the process are not part of this diagram. These topics should be revisited later. Administrative approval was not included in the diagram.

Earnings codeCost Assignment

EIDTime

PPD(pay period date)

Time Capture(continuous)

-including some prior period adjustments/corrections

EE(Employee)

PPD DateEIDTime

Earnings Code (reg, vac, sick)

Cost Assignment

Start/StopFTE

Accounting

Employee Distribution

- ACH- Check- etc.

Incl ERE

The Payroll Engine

CalculateGross Pay

(Hours x Hourly RateBy Earnings Type)

CalculateNet Pay

Business RulesCost Assignment,

FLSA

Demographics

Time Capture (temp storage)

Business Rules & Parameters

Internal ExternalPayroll Distribution and

Reporting

EIDEID&

Elem Codes

Employee Elements

Corrections and Adjustments

HoursPOPR

Internal Reporting

- Payroll Register by Employee (PAR – Payroll Audit Record)- Pay stubs

- Fed, State,Muni - Vendor

External Reporting

- ACH - Check - etc.

Vendor Distribution

Note on Cost Assignment: Cost assignment is a placeholder for everything that is necessary to capture and support charging time/dollars to accounts.

StatusAward Amount

Demographics EID

Human Resources Application Architecture

(HRAA) Team:

Hank Childers, Team LeaderPriscilla Cantu

Cecilia EsguerraJohanna Valdez

John WilsonSuzanne ZimbardoBudget & Position

Maintenance

Period-to-DateTime Records

(auditable)



1. Payroll

2. Personnel/Budget

3. Human Resources (Benefits, Employment, Leave, etc.)

4. Integrated Vision of Employee Information System

IdentificationDemographicsEmploymentTax InfoSalary InfoVac/Sick BalancesDegree Details

Employee Master

Applicant/New Employee

New Hire Management(incl workflow

process)

UA Identifiers (EID, net ID, Catcard, Room Privilege

Card)

CoordinateHiring

University Administration

(when applicable)

Employment Info (employee location, campus phone, date of hire, salary info,

position/budget info, etc.)

EMPLOYEE INFORMATION SYSTEM APPLICATION ARCHITECTUREIllus3-EIS_PSOS_PR_Conceptual_Diagram.vsd

April 20, 2006

Filename:

Last Updated:

Human Resources Application Architecture (HRAA) Team:

Hank Childers (Team Leader)Priscilla CantuCecilia EsguerraJohn WilsonSuzanne Zimbardo

Demographics, Job Info

Self-Service Update employee

information

Create Operational Data store (ODS)

Employee ODS (UIS)

Application including

Demographics Job Info

Self-Service Benefits

Maintenance

Providers

NOTE: Demographics and job info for non-applicant

tracking hires.

AdministrativeManagement

(e.g. legislated salary increases, NOR, etc.)

Campus-wide Employee Training &

Development Management

Registrations & Course offerings

Dept, College/Division

(via Dept Link)

Other Application Systems

Employee Reporting Systems

Multiple Users

Maintain Employee Records (after hire thru termination)

Benefits elections

Hiring Package/Perquisites

Training DB

BenefitsJob

Application DB

ApplicantTracking

HR

Job Info

Employment Info (SSN, I-9, etc.)

AdministrativeBenefit

Management

Training Information

Employee Information

Original Encumbrance Amount

General Ledger & Fin. Rptg.

Available Position

State Appropriation and

PSOS Budget-Style Accounts

Job Master

Position Maintenance

Budget Maintenance

Encumbrances

BudgetsTime Capture

Payroll EngineGross & Net Pay

Calculation(incl. Corr. & adj.)

Payroll Distribution & Reporting

Employee(via Employee

Link)

Pay Period DateEIDTime

Earnings Code (reg, vac, sick)

Cost Assignment

Adjustments

Time Capture DB

Create Payroll Benefits Elements

Payroll Elements Per

Pay Period

Period-To-Date balances

Maintain Payroll Elements

(incl one-times)

Element SourcesDistribution & Reporting

Destinations

Correction & Adjustment Sources

IncumbentPosition Control

Budgets

Position Control

Incumbent

Position Control

Incumbent

Dept(via Dept Link)

Employee(via Employee

Link)

Cost AssignmentData & Rules

1

UADM

DEPT

APPL

2

app

budg

3aBDGT

job

3b

pos inc

4

5

time

GL EE

6b

6a

ptd

elem

6

6c

pos

inc

budg

pos

inc

9

10 8a

8b

ben

7

Retirement

Leave and Disabilities

Management

Cobra

7a

7b

7c

PROV

EE

DEPT

trng

13

uis

11

12

ASYSUSER

Facilities Mgt

CATCARD

CCIT

SYSTEMS CONTROL

emp

UAID



1. Payroll

2. Personnel/Budget

3. Human Resources (Benefits, Employment, Leave, etc.)

4. Integrated Vision of Employee Information System

5. Road Forward

The road to Employee Information...

Employee Master Data

PayrollData

BudgetData

Position Control Data

Convert PSOS into Relational

Database

OraclePayroll

ConferenceRoomPilot

Position Control/Budget

Modular Approaches

Build, buy, lease,

outsource by module

ResearchOther

Universities (How do they

do it?)

Payroll Application

Study (incl. Time & Attendance)

HRAA

PSOS Payroll System

PSOS Budget System

PSOS Position Control System

Design Employee Information System

Application Architecture

Other HR Systems

PSOS Demo-graphics

Employee Link (e.g. Benefits

Enrollment)

Department Link

CareerTrack

Expand Web Self-Service

Business Council (e.g.

New Hire Process &

Roles)

IWO Meta Data Project (e.g.

PSOS)

Payroll Risk Mitigation

Project (flow diagrams &

responsibility)

Hot Spots & Other

Opportunities

Examine Business

Processes & Definitions


OBSERVATIONS: SOCIOLOGY AND IT

• Premise: Every IT project >50% sociology• Silo orientation• History and stories on why things are• (Political) agendas and interests• Human nature: people’s interests, stake, skills,

concerns• Need to tap latent desire to serve greater good

– but how?


OBSERVATIONS: DIAGRAMMING

• Group work tool was Visio with a master driver• Appropriate for complex situations

– Systems get more complex over time– Essential versus accidental complexity

• Diagramming helps reveal the “natural” boundaries of modules


SOCIOLOGY OF DIAGRAMMING

• Blank sheet of paper – let situation tell its story and evolve

• Hard to reduce to either/or; detoxifies conversations

• Doesn’t record history and stories • Clarifies scope, provides other buckets for out-

of-scope items• Alternate way of conversing and surprisingly

good tool for communicating


SOCIOLOGY OF IT STRATEGY

• Big system implementation issues: funding, management and change management

• Smaller modules implementation issues: coordination, engineering and teamwork– Don’t need a ‘hero’ project manager– Engineering-based model more robust IT


RECOMMENDATIONS

• Modular approach, aka “Best of Breed”• Focus on lateral (cross-org) relationships• Good tool and good tool driver

– UML ??...Not yet – this is too high level

• Focus: what … then how … then who• People who do this well can go up and down

the hierarchies of concerns, ideas, and concerned parties

• Don’t wait – find those interested in doing


WHAT TO LOOK FOR IN A MODULE

• Architectural robustness to meet need: e.g., at UA, person can have >1 job/position

• Data model & extendability of data model• Clean, open system interfaces• Functions needed• Core user interface• Ability to work with campus IT security system• ODS/DW support: export, metadata• Store business rules externally, as data


WHAT NOT TO LOOK FOR IN A MODULE

• Reporting beyond standard reports– Move reporting data to ODS– Shield users from effects of system changes

• Decision support function• Customer service front-end


CONCERNS ABOUT FRAGMENTED LOOK AND FEEL

• Central users – less of an issue since central work is more function specific

• Casual individual user – UA to deliver via the “Links” (Student, Employee), i.e., UA-designed self-service web interface

• Department users – exploring:– Department Link– Templates– Portals


LIFE WITHOUT A PRINCE

• We start controlling our destiny by doing our homework

• Modules and projects which people can understand and make realistic estimates of time, cost, and risk

• A gradual, understandable change process• Decisions move down 1-2 levels• Interesting work, career opportunity for staff• Less heartburn at executive and board levels


CHIEF INFORMATION OFFICER OBSERVATION

“Looking across institutions all over the U.S., there is tremendous angst over the cost and risk associated with large administrative software replacements. Many millions of dollars can be involved…and the chance of failure is all too real. What the HRAA Team has done is not only to get us very well prepared, but also to give us well-founded confidence that each large or small step we take will make our lives better.”

Sally Jackson, VP for Learning & Information Technologies and Chief Information Officer,

The University of Arizona


QUESTIONS AND CONTACTS

• Questions?• Interest in or suggestions for further discussion

and sharing?

• Contact:– Hank Childers: [email protected]– John Wilson [email protected]

educause western regional conference san francisco, california april 25, 2006 & hank childers...

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