Maximizing Your Operational Effectiveness: HR Technology and Service Delivery. Ryan McDaniel William Bonner Kurt Dorschel

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1 Maximizing Your Operational Effectiveness: HR Technology and Service Delivery Ryan McDaniel William Bonner Kurt Dorschel

2 Speakers Ryan McDaniel Ryan has worked with more than 20 educational and healthcare organizations in the United States and Middle East to improve operational efficiency and enhance compliance through the application of sound business principles and technology. He specializes in information technology (IT), strategic planning, business process redesign, software selection, systems design, and systems implementation. Kurt Dorschel Kurt assists colleges and universities in optimizing resource utilization, enhancing organizational effectiveness, and developing strategic plans. William Bonner Bill has extensive experience supporting both research specific and enterprise resource planning (ERP) platform software implementation processes. Specifically, Bill has been involved in various facets of the implementation lifecycle for: PeopleSoft Financials (Accounts Payable, Accounts Receivable, Billing, Contracts, General Ledger, Grants, Commitment Control, Project Costing) PeopleSoft HCM (Payroll, Commitment Accounting, Human Resources, Time & Labor, Absence Management, Benefits) InfoEd (Proposal Tracking, Proposal Development)

3 Agenda What is shared services? What is the role of technology in HR service delivery? How can technology support a shared services model? Case Studies Questions

4 Polling question What are you hoping to get out of today's webinar? Obtain ideas for implementation Obtain ideas for improvement Learn more about HR Technology Learn more about shared services Answer 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 4

5 What is Shared Services? 2012 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential. 5

6 Components of HR Service Delivery Human Resources administration is composed of three primary categories of activity: Centers of Expertise, Business Partners, and Operations. 1. Centers of Expertise (COEs) Responsible for design of effective HR programs Provide subject matter experts in areas of HR program design (e.g., compensation, benefits, HRIS, Talent Management) Interface with HR business partners and institutional leadership Fewer in numbers 2. HR Business Partners Generalist role responsible for workforce management in support of local business outcomes Act as brokers of HR services and primary point of contact for managers and unit level leadership Represent the needs of the individual business unit Held accountable for implementation of HR programs and unit level outcomes 3. HR Operations Responsible for transactional activities Responsible for transactional process and first-tier customer support Interface with employees, managers, and HR data systems owners Held accountable to business process and customer service measures determined by service-level agreements 6

7 Shared vs. Central Services Shared services models consolidate activities to balance responsiveness with efficiency. Decentralized Services Shared Service Centers Central Services Higher costs Variable standards across departments Different control environments Duplication of effort Schools/units maintain decision control Recognize local priorities Responsive to customer needs Independent from schools/units and central administration Pooled experience Enhanced career progression Lean, flat organization Recognition of group functions Dissemination of best practices Environment of continuous process improvement Perceived as unresponsive No school/ unit control of central overhead costs Inflexible to school/unit needs Remote from customer Common systems, policies, and procedures Consistent standards and control Economies of scale Critical mass of skills 7

8 Activities Conducive to Shared Models Activities that are transactional or able to be standardized are better candidates for consolidated or shared service models. Distributed Hybrid Shared / Centralized Interactive / Highly Personalized Highly Variable / Complex Low Volume Low Compliance Risk Transactional / Not Personalized Consistent / Simple High Volume High Compliance Risk HR Data Management and Reporting Immigration/I9 Relocation Hiring and Onboarding Employment Verification Termination Common Examples Appointments and Position Management Employee and Labor Relations Performance Management Recruitment (position posting, recruitment support) 8

9 Shared Service Models A VARIETY OF OPTIONS FOR UNIVERSITIES Shared service models can take a variety of forms. Service Pods Regional Model Single Center Center-Led Services Pooling of expertise among several units May report to unit staff Loose governance Good option for group of units acting on their own Shared staff among units or schools Reporting structure outside of units/schools served Structured governance Accountability to units and central staff Networked by common policies and procedures, staff collaboration Common pool of staff to serve entire university Reporting structure outside of units/schools served Structured governance Accountability to units and central staff Typically purely transactional Reporting structure to central unit Governed by transparent policies and procedures 9

10 Polling question Information Technology What functions do you have or plan to transition to shared service models? Financial Administration Research Administration HR Answer 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 10

11 Benefits of Shared Services Shared Services model help institutions achieve organizational efficiencies through increased focus on business functions enabled by a strong technology platform Organizational Effectiveness Consistent and streamlined business process performed centrally render business units to perform value added tasks Enhanced Customer Service Business Units benefit from single point of contact and better customer satisfaction focus Increased Strategic and Business Focus Institutional focus on strategic initiatives supported by improved data analytics and measurements Leverage Enterprise Resource Planning Systems Support business functions through consistent processes and common technical platform Controls and Compliance Improved controls and regulatory compliance through data accuracy & integrity. Reduced IT costs: Leveraging central IT systems will reduce cost of licenses, maintenance, and eliminate shadow systems. Implementation of a new shared services model can be a catalyst to streamline operations and adopt consistent business processes. 11

12 Challenges to Changing Service Delivery Models Rethinking service delivery requires addressing fundamental challenges early in the project. Process Variation Local process variation Local variation in talent and embedded knowledge Economics Budget/funds-flow model Difficulty capturing distributed savings Culture Perceived loss of control and personalization Credibility of central organization Cost savings/efficiency not compelling for change Integration Administrative processes interconnected Administrators often have multiple roles Data/systems integrations occur at all levels of the organization Technology Inconsistent use of tools splinters otherwise consistent functions Widespread use of shadow systems A system design that does not support shared services model Meeting the reporting and operational needs of external entities 12

13 Assessing HR Service Delivery HURON S FOUR PART ORGANIZATIONAL ASSESSMENT APPROACH Shared services require a comprehensive design that incorporates talent, process, and technology. Organization Define organizational structure and management team Define governance structure for the organization Define mission and objectives Define scope of services Technology Synergies in parallel project planning Define scope and requirements for enterprise technologies Select and implement systems Define workflow and technology support models Define integration points to external systems Establish Service Level Agreements (SLAs) Process Define end-to-end business processes (from campuses to central shared services office) Define process boundaries for the shared services Define process policies Talent Understand existing skill profiles Establish training needs and deployment strategy Identify high performers who can support design and implementation 13

14 Polling question Where are you in the process of creating a shared services center? Post Implementation Implementing Planning Thinking about it Answer 0% 5% 10% 15% 20% 25% 30% 35% 14

15 What is the Role of Technology in Service Delivery? 2012 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential. 15

16 Synergies in parallel project planning Realizing the dual benefits of establishing technology platform and shared services environment simultaneously. Shared Services Implementation Planning Implementation Define Business Case and Scope of Services Org Structure, Leadership and Governance Models Staffing Business Process Design Campus Change Management Funding and Chargeback Model Facility and Location Shared Support Services Technology Implementation Planning Implementation Solution Selection to Support Services in Scope Staffing Gather Requirements, Perform Current State and Fit-gap Analysis Business Process Design Solution Design Integration with Internal and External Systems Campus Change Management Test and Implement Application IT Specific Support Capabilities 16

17 Define Scope and Requirements TECHNOLOGY IMPLEMENTATION Common HR Shared Services Categories Technology Solution Selection Recruitment Selection and Onboarding Employee Administration (HR, Payroll and Benefits) Budget Planning and Financial Integration Talent Management Data analytics and Intelligence Auxiliary IT Support Services Define Requirements for Each Service Implement one enterprise system or best-of-breed for various services Hosted vs. cloud based (SaaS) solution? Will a 3 rd party recruitment tool be integrated with the process and application? Who will be the owner of recruitment tracking? How will shared services impact user access/entry to core data? Is there a need for Employee and Administrator Self Service? Will shared services drive a vanilla technology implementation? What are the change impacts to the employee experience for technology and service delivery? How will the HR technology interact with key financial and planning systems for EE budget/spending management? Who will own finance and budget management and how will they interact with the shared services model? Will a 3 rd party performance management and learning and development tool be integrated with the process and application? Who is the owner (central or decentralized) of data and access to performance management tool? For reporting what level of data integration with other platforms (Financials, Student data) is desired? Are there parallel system implementation efforts for data warehouse? Will there be impacts on resources? Is there a 3 rd party case management system that will integrate with the application? Are document management and workflow capabilities needed to enhance core system functionality? 17

18 Define Technology Support Systems and Tools HR System Case Management System Knowledge Management Reporting External Interfaces Shared Service Center User Interface Workflow Management Training Business process definition Roles and responsibilities Technology assistance Support Research Funding System Budget Management Compensation and Performance Management Decentralized Users 18

19 Define Integration Points to External Systems Talent Management Suite: Learning, Performance, Succession Planning and Management Financial Systems: General Ledger, Payables, Purchasing Electronic Research Admin Systems Effort Certifications Skills & Profile data Job classification Payroll Data Reconciliation Reports External Partner and Entities: Banks, Third party Benefits providers, Federal/State agencies Core Enterprise HRMS Labor Distribution Payroll Data Employment Data Enrollment information for FICA Employment Data Compensation & Payroll Data Organization and reporting structure Other Enterprise Systems: Student Information System Budget and Planning Document and Workflow Management Data Warehouse and Analytics 19

20 Select and Implement Systems ERP OR BEST-OF-BREED Oracle Enterprise Business Intelligence (OBIEE) Tableau Oracle Enterprise Performance Mgmt (EPM) Data analytics and Intelligence Oracle/PeopleSoft TAM Oracle Taleo PeopleAdmin IBM - Kenexa Workday Recruiting Recruitment, Selection, and Onboarding Oracle Talent Management Cloud SAP SuccessFactors Workday Talent management Talent Management (Learnings, Development) Budget Planning and Financial Integration Oracle/PeopleSoft ecompensation Oracle/PeopleSoft Hyperion Workforce Planning Employee Administration (HR, Payroll and Benefits) Oracle/PeopleSoft HCM Oracle Human Capital Management Cloud Workday HR Mgmt. 20

21 Polling question How is your institution organized with regards to delivery of services? I don't know A mixture Centralized Decentralized Answer 0% 10% 20% 30% 40% 50% 60% 70% 80% 21

22 2012 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential. Case Studies

23 Case Study : University of Kansas HR, FINANCE AND RESEARCH ADMINISTRATION Huron worked with KU to develop a SSC model that provides a high-level of unit specific support. Overview About the University In spring 2011, the University of Kansas undertook a comprehensive initiative to improve service and reduce costs across administrative functions. One key initiative to drive transformational change was the implementation of a network of eight regional shared service centers to provide HR, accounting and research administration services to campus. In fall of 2013, the initial site had completed 3 of 4 waves of implementation with the final wave scheduled for December. Over the following two years, the remaining seven sites will be completed.. Model Current Status Unit Level Regional Functional Concept Design Operational 4 academic centers aligned by geography and affinity 3 research centers divided by theme 1 administrative center for functional and administrative units Planning began in 2011 KU had two existing pilots on campus a research SSC and an administrative SSC All eight centers will be fully implemented and operational by December 2015 Enrollment Faculty Staff 27,135 1,608 3,447 Budget Control Carnegie Class $823K Public Very High Research Key Takeaways Primary Functions Ensure space is provided for centers and that it is adequate for the mission Staffing inequities and skill gaps in the units will carry forward into challenges for the SSC Units will require transition support to reorganize internally after staff shift to the SSC The transition will take time; service levels will evolve over time While savings are real, they can be difficult to capture centrally Human Resources Grants/Research Administration IT Services Clerical Financial 23

24 Case Study : University of Wisconsin UW SERVICE CENTER HRS PROJECT - HR, PAYROLL AND BENEFITS ADMINISTRATION The UW partnered with Huron to implement the PeopleSoft HRS system to support all Human Capital Management needs of the 26 campuses that form the UW System. Overview About the University The University of Wisconsin implemented PeopleSoft s HCM suite in the Spring of 2011, which included 7 modules that addressed talent acquisition, HR, payroll, benefits, time & attendance, absence tracking and commitment accounting. A central HR Service Center (SC) was implemented concurrently to operationalize a shared services model supported by the HRS system. The Service Center is governed by institutional HR leadership and Chief Business Officers. Model Current Status Unit Level Regional Functional Concept Design Operational Institutional ownership of data entry and employee counseling Centralized HRS system support for training, support and system enhancements 3 institutional groupings each assigned dedicated support staff from the SC Process more than $2B in payroll annually Expansion of self service functionality to majority of institutions Facilitation of best-practices across institutions Initiating planning for HRS upgrade Enrollment Academic Staff Admin. Staff 181,000 21,419 10,270 SC Budget Control Carnegie Class $14M Public Very High Research Key Takeaways Ensure adequate training to support decentralized data entry Staffing inequities and skill gaps in the units will carry forward into challenges for the SC Implementing processes for accurate reporting, reconciliation and data integrity Deploy enterprise document management and workflow tools as needed Primary Functions Human Resources Grants/Research Administration IT Services Clerical Financial 24

25 Case Study : University of California System UCPATH PROJECT PAYROLL, ACADEMIC PERSONNEL, TIMEKEEPING, AND HR Huron led the future state process design for 97 HR-related business processes for the University of California UCPath Project. Overview UCPath is the University of California s priority project to replace UC s 35-year-old payroll/personnel system. The new single payroll, benefits, human resources and academic personnel solution and a shared services center will serve all employees across 10 campuses, five medical centers, and five entities including UC Office of the President. UCPath is a key component of the broader Working Smarter initiative, which has a goal of saving $500 million in the first five years. About the University Model Current Status Unit Level Regional Functional Concept Design Operational 1 systemwide shared service center to provide transactional processing and administration services Centralized HCM system support for training, support and system enhancements Defining business requirements for ERP solution, Case management, and Reports Defining scope of service for new Shared Service Organization Supporting location-based change management Enrollment Academic Staff Admin. Staff 209,080 60, ,000 Budget Control Carnegie Class $220M Public Very High Research Key Takeaways Ensure transparency and engage all locations and key stakeholder groups in decision making Staffing inequities and skill gaps in the units will carry forward into challenges for the SC Deploy enterprise issue management and workflow tools as needed Require transition support to reorganize internally after staff shift to the SC Primary Functions Human Resources Grants/Research Administration IT Services Clerical Financial 25

26 2012 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential. Lessons Learned

27 Role of Technology in Organizational Strategy LINKING TECHNOLOGY TO ORGANIZATIONAL STRATEGY While service delivery design projects can begin from technology or process/organization, both aspects must be developed together. Technology-driven service model design Provides hard driver for project (dependencies) Forces process redesign and standardization Provides delivered functionality, processes, and workflows Functional-driven service model design Makes the best use of existing technology Emphasizes organizational and staff capability Prioritizes customer perspective Risks Underestimates talent and culture change Imposes standards that force local workarounds Risks Sub-optimizes use of technology for controls and automation Leaves shadow systems in place to support processes 27

28 Huron s Approach CRITICAL SUCCESS FACTORS / LESSONS LEARNED The success factors for shared services rely on the interplay across these dimensions Technology Comprehensive design across systems and integrations Impact analysis of customization (or noncustomization) Process End-to-end process design Continuous improvement Effective SOPs and SLAs Organization Leadership commitment and support Clear roles and responsibilities Effective Governance Communication and Change Management Talent Performance driven culture Alignment of skills with responsibilities Technical and functional training

29 Questions Thank You For Joining Us Today Follow the operator instructions to call in a question or use the chat feature to have the presenters answer your questions. Contact information: Ryan M. McDaniel Managing Director Kurt Dorschel Director William Bonner Director 29

30 Please join our future webinars: August 2014 PeopleSoft Financials 9.2 Lessons Learned Tuesday, August 19 th "Are Shared Services Right for Your Organization? the KU Journey 2012 Huron Consulting Group. All Rights Reserved. Proprietary & Confidential.

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