optimizing your payroll and hcm technology -...
TRANSCRIPT
Optimizing Your Payroll
and HCM Technology
Providing You the Keys
to Transformation
Agenda
Today’s HCM Environment
Getting Strategic
ADP’s HR/Payroll Technology Optimization
Assessment
Q & A
Today’s HCM
Environment
What is HCM?
Today’s HCM Environment
HCM Technology Goals
Productivity Improvement
Consistent and Seamless Information Access
Increased Workflow Efficiencies
Improved Internal and External Communication
Improved Real-time Decision Making
The Dilemma
“Most Organizations don’t know yet how to use their
HRIS, and how to make it connect to the kind of things
that make HCM strategic”
Getting Strategic –
How to Optimize your
HRMS
HRMS Strategy
Design a strategic plan for the HRIS aligned with the
overall objectives of HR/Payroll
Define current state process gaps, and map out
approaches for the required changes for future state
strategies, including those currently not supported by the
HRIS
Analyze the impact and implications of the proposed
changes within the organization
Identify and prioritize the initiatives, as well as develop a
cost/benefit analysis, if applicable
Step 1 - Begin With The
End In Mind
“Begin with the end in mind means begin
each day, each task, or project with a
clear vision of your desired direction and
destination, and then continue by flexing
your proactive muscles to make things
happen”
Stephen R. Covey
Cedar Crestone HCM Application Blueprint
Cedar Crestone HR Systems Survey 2013
Step 2 - Define the
Current State of
Processes
Define current state process gaps,
and map out approaches for the
required changes for future state
strategies, including those not
supported by the HRIS.
Utilize Process Flows
Data
Warehouse
Sh
are
d S
erv
ice C
en
ter
Exte
rnal E
nti
ty
Employee
receives pay
check or advice
PR 2.6
Payroll system
set to run a pay
cycle
PR 2.0 PR 2.2
Balancing &
audit
reports
Em
plo
yee
Ok?
No
Yes Standard
reports
Payroll to
General
Ledger
interface
Payroll to
A/P or
3rd party
interface
Payroll to
tax acct’g
or 3rd party
interface
Other
internal
interfaces
Pay
calculations
executed
PR 2.1
PR 2.5
Third Party Interfaces
(benefits, taxes,
bonds, savings
plans,…)
Third Party
generates
checks-
advices
PR 2.4
Banks
(Positive pay,
direct deposit)
Transmit /
process final
pay calc
PR 2.3
Identify - Critical Data
Step 3 – Score Yourself
Run data anomaly reports to
measure data quality and
determine clean up efforts
required
Data Anomalies
1 employee under the age of 16 exists in the database
227 employees have “unusual” dependent records
187 employees and spouses are both electing benefits
15 employees have over-age dependents with no
disability or student status
348 employees are non-married with spouses on file
…
…
Importance of Data Quality
To ensure the information and reports produced by
your HRIS are meaningful and are able to be used to
for decision making by Management, the data entered
must be accurate, complete, and consistent
Poor data quality, missing information and
inconsistent use of established codes creates errors
in employee paychecks, benefits eligibility and
enrollment, 401k eligibility and enrollment and
compliance reporting
It’s everyone's responsibility to ensure the data they
are entering is accurate, complete and consistent
Step 4 – Assess
Organizational Impact
Analyze the impact and
implications of any proposed
changes within the organization
19
CHANGE Model
C H
A N
G
E
Challenge the Current State
Harmonize & Align
Leadership
Activate Commitment
Nurture & Formalize
Design
Guide Implementation
Evaluate &
Institutionalize
the Change
SOURCE: Thriving Through Change: A
Leader’s Practical Guide to Change Mastery,
The American Society for Training and
Development and Elaine Biech © 2007,
Publisher: ASTD
Change is Hard
20
Gartner, and Independent IT research firm as cited in Delivering Transformational Change: European
Business Review March 3, 2013.
For major corporate systems [change] investments:
o 28% are abandoned before completion
o 46% are behind schedule or over budget
o 80% are not used in the way they were intended to be or not
used at all six months after installation.
Having a clever strategy is not enough—and successful organizations
should proactively develop the internal capacity to implement change
faster and more effectively than their competitors. Many so-called failures
are actually change projects that have been partially “installed”, rather
than fully “implemented”. The organizational, strategy, process and
technology components of a change initiative may have been put in place
effectively, but are not being applied or used in the intended way with the
required level of understanding, commitment and personal ownership.
People readily slip back into their old ways of working when change
leadership efforts are prematurely withdrawn.
Step 5 - Prioritize
Identify and prioritize the
initiatives, as well as develop a
cost/benefit analysis, if applicable
Transformation
Stabilize:
Training
Data Analysis/Clean up
Business Process Development
Strategize:
Executive Steering Committee
Planning/Vision
Define Success Measure
Transform:
Leverage /Upgrade Technology
Centralize Services
Shared Service Implementation
ADP’ Technology
Optimization Process
Optimization Process
The HR Technology Assessment is used to learn about the current
status of your application, and to provide transformation strategies
where the status is found to be “off-target” from generally accepted
best practice definitions. During the initial assessment effort, we
focus on a number of target areas or dimensions which, based on
our experience, are critical to optimal processing and system
utilization.
The process includes a series of intensive, process-based
interviews involving subject matter experts. The information
gathered from these interviews is delivered as:
Summary findings
Detailed findings by dimension
Short, mid and long term recommendations
Summary of recommendations per finding
Available vs. leveraged functionality
Optimization Process Objectives
Review overall HR technology strategy with leadership
team to understand current issues and future state vision
Identify areas of decreased efficiency and opportunities for
improvement in both the HR and Payroll areas
Provide recommended strategy for migration to desired
future state
Identify opportunities to fully utilize your technology
solutions beyond basic HR and payroll functionality, and
determine areas for process and application improvement
and scalability
Optimization Process Overview
During the Assessment phase, ADP resources conduct
interviews with the client team to better understand current
areas of concern and obstacles to transforming to the desired
future state
As part of the Communicate phase, ADP resources analyze all
information gathered from the discussions and interview
sessions. Findings are presented to the client to highlight
significant issues and potential trouble spots within the current
environment. Short, mid and long term recommendations for
improvement are identified
The final phase of the process, Transform, requires recognition
by the leadership team that change needs to occur, and
acceptance of the recommendations and resolutions included in
the findings, will support repeatable and sustainable work
processes using ADP technology
Topics Discussed During Interviews
Core HR, Benefits and Payroll Transactions
Future Desired State
Supporting Application Functionality
Data Elements
Process Models/Custody of Tasks
Audits/Compliance
Training Needs
Dimensions/Points of Impact
People/Skills Alignment
Business Process/Application Configuration
Controls and Security
Reports and Interfaces
Program/Change Management
System Performance
Production Management
Enabling Opportunities
Sample Deliverables
Results of the Process
Resulting data is presented within the eight assessment
dimensions and rated within a Red / Yellow / Green score.
Red - Significant issue and must be addressed
Yellow - Warning and may impact quality or efficiency
Green - Good practice in place
Summary Findings
Dimension Summary Rating
People/Skills HR users are not comfortable with the full capability of the current system,
prohibiting them from recommending change, and creating redundancy in data
capture. HR users feel they do not have the time or resources to devote to
additional education, knowledge transfer and process improvement
Business Process/
Application
Security
Lack of functionality in some implemented applications (Recruiting/Benefits)
and underutilization of others (HRIS) have created the need for numerous
manual processes which are time consuming and have the possibility of
producing inconsistent results
Controls/Security System security is administered and monitored appropriately. However,
historical lack of analytical and audit experience in critical areas (Payroll) has
created reactive rather than proactive audit of overall data
Reports/Interfaces Inadequate integration between key systems causes duplication of data entry
and increased risk of error
Production
Management
No formal processes in place for requesting application changes, implementing
enhancements, or testing new functionality
Program/Change
Management
Sustainability of change and new initiatives is impacted by lack of formal
corporate governance over use of HR technologies
System
Performance
Resolutions to system issues are not formally tracked, therefore client is not
able to consistently leverage prior knowledge or address root cause of recurring
issues
Enabling
Opportunities
Lack of fully implemented self-service and workflow functionality creates
redundant manual processes causing Human Resources staff to be mired down
in daily transactional processing rather than focusing on valued-added HR
planning and consulting activities
Sample - Total Findings by Dimension
4
13
7
4
6 6 5
2
6 5
3
1 2
0
3 2
9
47
9
13
7 6
1
15
People/Skills Business Process Controls/ Security
Reports/ Interfaces
Program/ Change
Management
Production Management
System Performance
Enabling Opportunities
Green
Yellow
Red
Detailed Findings
Recommendations
Recommendations by Finding
In the end…………
Implement the changes while focusing on the
realization of the ROI
Questions?