The payroll & time journey at HPSam HarperGlobal Director of Information Technology,Hewlett-Packard Enterprise

A four-year transformation, FY13 - FY17

Aim: More relevant, enable much larger business outcomes, drive shareholder value for HP

7.5KTotal

Testers

159KSIT

Test Cases

135KUAT

Test Cases

19MBatchJobs

2.6KApps

Dispositioned

21KResolved Defects

8 PBNew

Storage

436 Mock

Cutovers

12KE2E

Test Cases

5.2KHC Capacity

Created

2.6KReleases

1.2KGo

Lives

74KInterfaces

4KProject

Milestones

560Project Plans

2.5KLinked

Dependencies

9.5Months

• Largest and most complex business separation in history

• Successful execution has enabled HP to create a customer facing divestiture and separation go-to-market practice

Record Setting Pace

Requirements 34 Days

Design 41 Days

Build 69 Days

Test 104 Days

Go Live 67 Days

Unprecedented scale/scope/timeline: IT impact

Internal Experience

100KSharePoint

Sites

6KNew Servers

Built

32.9KServersRe-IP’d

375.5KEmail

Accounts

EMEA~82,000 Employees

8 In-House apps23 ASP/OS30 Desktop

2013 payroll landscape

Americas~121,000 Employees

9 In-House apps 5 ASP/OS7 Desktop

19 Countries 60 CountriesArgentinaBrazil

CanadaCosta Rica

Mexico +*wbPuerto Rico

US LA/CN *di

ChileColombiaPanama

PeruVenezuela

DenmarkFrance *dw

GBR/IRL *wbGreece

NetherlandsPoland (2)GREP *di

GLOBAL SUMMARY (as of Apr 30, 2013)97 Countries /99 platforms for Payroll and T&L• ~297K Employees• ~50% PeopleSoft coverage (9 countries, 5 instances)• 26 applications , ~80% In-House coverage (27 countries)• 32 ASP/OS, 19% ASP/Outsourced coverage (40 countries)• 41 Desktop apps, 1% Desktop coverage (30 countries)

*wb = portal*dw = data warehouse*di = data integrator

APL~94,000 Employees 9 In-House apps

4 ASP/OS4 Desktop

18 CountrieseApproval

ePayslip *wbKoreaGPayChina

Hong KongTaiwanIndia (2)

IndiaIndonesiaPhilippinesThailand

25 countries live on ADP payroll and 25 live on ADP eTimeFY12 – FY13 Start

FY13 go-liveFY14 Start

FY14 – FY15 go-liveCanada Brazil MexicoPuerto Rico Spain Denmark*Korea Thailand FranceChina Singapore Norway*Hong Kong Slovakia RomaniaTaiwan Netherlands ChinaPoland Australia Hong KongSwitzerland Indonesia* TaiwanRomania New Zealand VenezuelaAustralia Ireland SwitzerlandNew Zealand United KingdomCzech Republic Venezuela*Italy Poland

Germany

* Streamline Implementation

Addressing operational risks and complexitiesCategory Descriptions Examples ImpactCompliance RisksPenalties and interest

• Statutory compliance risks• Accuracy risks• Reputational risks

China, Hong Kong, Taiwan, Switzerland, Australia, Romania, Costa Rica, Canada, Germany, UK

• Penalties and interest for non-compliance• Increased external audits• WC escalations• Public relations risks

ScalabilityIncreased cost of $X M per integration; business risk (revenue/costs)

• Ability to add new populations• Ability to support new T&Cs

UK, Ireland, Australia, New Zealand, Philippines, India, Canada, Germany

• Inability to support MADO in core countries• Increased costs and complexity to support

Stability/CapabilityTCEQuality ImpactBenchmark

• Platform & vendor stability• Ability to rollout new features

• 500+ SR’s globally• Inconsistent capability worldwide• Bulgaria, Turkey, Costa Rica, Slovakia,

Philippines

• Inability to rollout new global programs (ESPP)• High risk to accuracy of payroll• Excessive manual intervention• Costly innovation and MOC

Domain expertise$4.2M annually in replacements costs (recruiting and efficiency losses)

• Retention and development of payroll domain expertise

• Nordic countries• UK turnover• APJ bench strength• SSC turnover• Contingent workers• IT availability • DR/BCP planning

• Inability to complete payroll processes • Trade-off decisions on equally important

priorities in the business• Inefficient leverage of FO/BO models• No cross country leverage of resources

Cost ControlsHigher recurring costs annually

• Inability to leverage common platforms / scale

• Excessive change controls costs• Limited FO/BO efficiencies

• 99 different environments used for 97 countries

• Lack scale in ability to negotiate rates• EMEA inefficient in FO/BO

• Higher costs to HP • Unpredictable costs for changes• Inadequate ability to leverage FO/BO model

Risk mitigation decisionCategory Outsource to ADP Compliance RisksPenalties and interest

• Vendor accountability• Vendor shares risk

ScalabilityIncreased cost of $X M per integration; business risk (revenue/costs)

• Scalability across platform for major/minor mkts• Migration path to new offerings

Stability/CapabilityTCEQuality ImpactBenchmark

• Full DR & BCP & SLA’s• Dedicated resources• Focused R&D investment• Higher domain expertise

Domain expertise$4.2M annually in replacements costs (recruiting and efficiency losses)

• Supplements FO and IT expertise• Focused compliance resources• Migration path to new offerings

Cost ControlsHigher recurring costs annually

• Common platforms based on size of country• Negotiated rates• Efficiency and SSC gains

Also considered:• In-house• Baseline & tactical

Future Payroll Operations and ServicesBest in Class will be achieved by payroll services and provision of continuous improvements in line with our customer’s expectations.

Payroll Back Office (off shore, near shore)required to focus resources to handle payroll services and improvements. This and transition of front office services will provide bulk of payroll savings.

Payroll roadmap focus area - OperationsGlobal payroll comprises both payroll operations services as well as global payroll transformation program

Global Payroll Transformation Program

Transformation to ADP provides system standardization and platform for Best in Class payroll services.

Current Payroll Operations

Synergies of aligning payroll & time• More efficient/effective use of resources

• Using a single vendor (ADP) ensures tighter integration and accountability

• Governance more streamlined

• Requirements gathering more efficient with same ADP Blueprint process

• Reduces risks associated with building interim interfaces between legacy and go-forward assets

• MOC can be streamlined to a single change event for each country

• In country efficiencies and shared models realized earlier

next steps: Outstanding

Customer Service + Great or Good

Technology