HR Software Selection Online Performance Management and HRIS. October 3, 2007 Version 1.0
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1 HR Software Selection Online Performance Management and HRIS October 3, 2007 Version 1.0
2 WHO WE ARE? IGY is a subsidiary of Island Capital Group, a real estate merchant banking firm based in NY, and is a leading developer and manager of luxury marina facilities 2
3 WHAT DO WE DO? IGY acquires, controls and services mega-yacht and other luxury class marina facilities in key yachting and nautical tourism areas around the world Through ATM our wholly owned subsidiary, IGY provides a complete range of environmental and technical engineering services, from design to modeling, permitting and construction management. 3
4 WHERE ARE WE LOCATED? From the islands of the Caribbean To the azure waters of the Arabian Gulf. 4
5 WHY IGY NEEDED AN ONLINE APPRAISAL SYSTEM? We are global and need 24/7 access globally Senior Management relies on data (engineers and developers) Our staff is very mobile and must be productive while traveling We operate in a project management mode non-traditional reporting structure To enable us to manage future talent at IGY, we need a finely-tuned system that gives us the ability to identify fast-track employees Our culture is goal-oriented oriented with non-static/ever-changing changing goals. 5
6 SOFTWARE SELECTION APPROACH 1. Identify knowledge experts in the field of Performance Management Systems and obtain their research SHRM Research HR Management (internal and external to IGY) Stakeholders 2. Capture internal requirements 3. Identify potential vendors 4. Solicit vendor response to internal requirements 5. Conduct Vendor Demos 6. Request for vendor pricing/ proposals 7. Rate products 8. Submit Recommendations 6
7 PROJECT TIMELINE - EXAMPLE Project initiation documents (1-Apr) Kick-off meeting (18-Apr) Requirements Gathering (04-May) RFI s sent out (14-May) and returned by (25-May) RFI Ratings (22-Jun) Vendor Demos (10-Jul) Selection and approval (20-Jul) Contract Negotiation (5-Aug) 7
8 PROJECT TIMELINE - EXAMPLE Project initiation documents (1-Apr) Kick-off meeting (18-Apr) Requirements Gathering (04-May) RFI s sent out (14-May) and returned by (25-May) RFI Ratings (22-Jun) Vendor Demos (10-Jul) Selection and approval (20-Jul) Contract Negotiation (5-Aug) 8
9 PROJECT INITIATION DOCUMENTS Communication Plan When we will meet How we will meet Constraints Resource Delivery Environmental Budgetary Functionality Issues A living document which details: owner, action taken status, open/closed date Project Plan 9
10 PROJECT INITIATION DOCUMENTS 10
11 MT1 SCOPE This project is the first phase of a larger project. Its scope is defined as follows: This project is being initiated iti t to identify the requirements for an online performance management system identify vendors and products that will meet these requirements select a solution for all locations of IGY..by a proposed date of What is not in the scope: Buying computers for people in the field Implementing the new software (however this is coming next, so be ready!) 11
12 Slide 11 MT1 check if it is really scope for this project Maria Talapkova, 9/25/2007
13 PROJECT INITIATION DOCUMENTS Charter A summary of all Pre-project documents Available to anyone who needs info about the project. 12
14 PROJECT TIMELINE - EXAMPLE Project Preparation Documents (1-Apr) Kick-off meeting g( (18-Apr) p) Requirements Gathering (04-May) RFI s sent out (14-May) and returned by (25-May) RFI Ratings (22-Jun) Vendor Demos (10-Jul) Selection and approval (20-Jul) Contract Negotiation (5-Aug) 13
15 KICKOFF MEETING Discuss why we are undertaking this project Learn about IGY s approach to project management Communicate the scope of the project Communicate the roles and responsibilities for the project Assign action items and due dates. 14
16 Project Timeline - Example Project Preparation Documents (1-Apr) Kick-off meeting g( (18-Apr) p) Requirements Gathering (04-May) RFI s sent out (14-May) and returned by (25-May) RFI Ratings (22-Jun) Vendor Demos (10-Jul) Selection and approval (20-Jul) Contract Negotiation (5-Aug) 15
17 REQUIREMENTS GATHERING TOOLS These tools are available for purchase There are many requirements templates available on the internet. Do a search on HR Requirements This gives you a place to start ; you do not have to create your requirements from scratch Can start t with a template t and adjust to your own needs This tool can also be the starting point for your RFI (Request for Information) or RFP (Request for Proposal) to your vendors. 16
18 REQUIREMENTS GATHERING Identify Stakeholders All end users Executives who would support the project All teams with link to the software (IT, Payroll, Project Management) Supporters of system - IT Develop requirements gathering tool with rating broad as possible but realistic we used 3 category: must have, nice to have, not necessary. Solicit input from all stakeholders (this can be done through conference calls or meetings) 17
19 REQUIREMENTS Performance Management Multi language Easy interface with HRIS Cascade goals Accommodates Competency models Performance journaling Comment helper Area for development plan Cost effective Prompts and notifications User friendly Multi-rater feature Electronic signature Confidentiality and security Outsourced hosting Robust reporting 18
20 Project Timeline - Example Project Preparation Documents (1-Apr) Kick-off meeting g( (18-Apr) p) Requirements Gathering (04-May) RFI s sent out (14-May) and returned by (25-May) RFI Ratings (22-Jun) Vendor Demos (10-Jul) Selection and approval (20-Jul) Contract Negotiation (5-Aug) 19
21 RFI (Request for Information) For our HRIS selection process IGY sent selected vendors an RFI This document contained a list of detailed requirements Vendors were asked to rate each requirement against their software. We consolidated d this information from all vendors Then we created a short list of vendors for demos 20
22 Project Timeline - Example Project Preparation Documents (1-Apr) Kick-off meeting g( (18-Apr) p) Requirements Gathering (04-May) RFI s sent out (14-May) and returned by (25-May) RFI Ratings (22-Jun) Vendor Demos (10-Jul) Selection and approval (20-Jul) Contract Negotiation (5-Aug) 21
23 VENDOR COMPARISON 22
24 VENDORS ELIMINATED DURING RFI PROCESS Vendor 1 was eliminated during the RFI process, as they offered far less functionality than any other vendor. VENDOR 1 Vendor 2 Short Listed VENDOR 2 Vendor 3 - Short Listed VENDOR 3 23
25 Project Timeline - Example Project Preparation Documents (1-Apr) Kick-off meeting g( (18-Apr) p) Requirements Gathering (04-May) RFI s sent out (14-May) and returned by (25-May) RFI Ratings (22-Jun) Vendor Demos (10-Jul) Selection and approval (20-Jul) Contract Negotiation (5-Aug) 24
26 Demonstrations Selection committee members were identified Based on RFI responses, we narrowed down the vendors to a short list Vendors were invited to give a one-day presentation to the selection committee Vendors had to demonstrate features we selected, and were not allowed to give a canned presentation ti After each demo we did a debrief with the selection committee and gathered evaluations. 25
27 Project Timeline - Example Project Preparation Documents (1-Apr) Kick-off meeting g( (18-Apr) p) Requirements Gathering (04-May) RFI s sent out (14-May) and returned by (25-May) RFI Ratings (22-Jun) Vendor Demos (10-Jul) Selection and approval (20-Jul) Contract Negotiation (5-Aug) 26
28 VENDOR SELECTION CRITERIA IGY s Make or Break Criteria Functionality References Web-based architecture Served international customers Pricing and functionality targeted for Small to Medium International Businesses Adaptive for future growth 27
29 FINANCIAL ANALYSIS First Year Costs ONLY (assumes 1,200 employees) License Fees Support and Maintenance Costs Total Software Costs Implementation Costs Item Vendor 1 Vendor 2 Vendor 3 Application Servers (does not include high h availability) Internal installation DBA and Sys Admin support Total Installed Cost 28
30 RECOMMENDATION CONSIDERATIONS Considerations Vendor 1 Vendor 2 Halogen License Fees Support and Maintenance Costs Implementation Costs Right & Relevant Functionality for IGY International Functionality Easy to Implement and Configure Halogen Software is recommended as the Performance Management software of choice for IGY Human Resources 29
31 RECOMMENDATION Present to VP of Human Resources and EVP of Corporate Operations Included a summary of: process selection criteria results Pricing
32 Project Timeline - Example Project Preparation Documents (1-Apr) Kick-off meeting g( (18-Apr) p) Requirements Gathering (04-May) RFI s sent out (14-May) and returned by (25-May) RFI Ratings (22-Jun) Vendor Demos (10-Jul) Selection and approval (20-Jul) Contract Negotiation (5-Aug) 31
33 CONTRACT NEGOTIATION Conducted by HRIS Manager and EVP of Corporate Operations Ask and you shall receive don t mince words, know what you are going to ask for going in Maintain control of the discussion and the rhythm of the discussion Never let the vendor know that they are the only option Tips for Negotiation: Understand the whole deal discounts list price maintenance fees Make incremental asks. (Example: Negotiate future purchases at the close) Use silence. Your lack of response may induce them to offer more during the silence Understand d your metrics Seek the assistance of a seasoned, What you can spend impartial negotiator What your bottom line is 32
34 IMPLEMENTATION OUR CHALLENGE 30 days from contract finalization to train and go live 33
35 IMPLEMENTATION OUR STRATEGY Use basic features only Build an implementation team of HR field Corporate HR Analysts who would make up help desk Senior Management (our EVP) to make quick decisions Use pilot group of 50 employees Conduct training remotely and through e-learning Vendor assistance for quick start-up 34
36 THE RESULTING PROCESS Performance Management Process in Halogen 35
37 IMPLEMENTATION RESULTS All pilot participants reviewed against 4 competency models 50 helpdesk calls the first day (majority were login issues) Goal setting completed for 70 % of pilot group Merit process completed online for all pilot participants! 36
38 IDENTIFIED AREAS FOR CHANGE/IMPROVEMENTS Goal setting should not cascade to all levels Not all employees should be reviewed on- line More live training is needed Executives need one-on-one interaction (assign them HR partners) 37
39 LESSONS LEARNED Go out to the field and work one-on-one whenever possible Be Realistic in Expectations it may take several cycles to reach your ultimate goal Have Your Helpdesk Ready 38
40 39
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