Estimated Net Revenue Savings to be realised (see notes): Increase to annual revenue costs (see note 12)

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1 Project Summary Name of Project: HR System Development Project Lead: Ext. Number Ext Undertaken by Andrew Groundwater until the project manager is recruited. Brief Project Description (including Project Timescales): To develop the Northgate HR/Payroll system which is predominantly used to operate the payroll function. This would centralise the recording and storage of relevant HR data in one place and address the current requirement / need of service administration teams to collect, collate and store this data. It would also allow for implementation of electronic payslips which would deliver efficiencies in terms of our use of printing and postage and provide greater scope for reporting on HR matters with reduced time spent on manual processes. Service Area and Function: Service Area: Central Administration Service Function: Administration (HR Section) Innovation Fund Category (tick as appropriate): Spend to Save Preventative System Development Funding Request: 132,700 Estimated Net Revenue Savings to be realised (see notes): Increase to annual revenue costs (see note 12) Increase to annual income generation (see note 13) nil nil Reduced annual revenue costs (see note 14) 26,600 Net annual revenue savings 26,600 Payback Period: 5 years 1

2 Project Details 1. Introduction and background (why is the project necessary): The Council owns a licence for an integrated HR/Payroll system called ResourceLink, which is provided by a company called NorthgateArinso. The system has been used for Payroll purposes since 2002, first through a link up with Highland Council, and latterly since 2008 through holding and owning a licence outright. Although the system is used extensively by the Payments team, its use as an HR system to store employee information, help manage employee related processes and as a source of key management information, is underutilised. A lot of HR processes are paper based and this invariably leads to the information being recorded, both within HR but also within the originating office leading to various record stores, which will eventually get out of step. Despite best intentions to move forward the development and use of the functions within the system, the project is fairly large and complex and it has become clear requires dedicated project time and resources which cannot be accommodated within the existing capacity of HR. There will also be support required from IT and involvement of the Finance service along with a large amount of consideration given over to how this will affect the employees and their managers, how people will access the system and the support and guidance they will need. 2. Project Objectives (what is the purpose and desired outcome): The project will deliver : Fully utilised HR/Payroll system with clear lines of ownership between HR and Payroll. More efficient electronic processes that link to existing key business processes and are better for our customers. Ability to produce accurate and meaningful staffing reports on a variety of areas. This will lead to Less time spent on time consuming manual tasks or paper based systems of recording. A single HR record, containing all the relevant data Releasing of time efficiency savings from across services, including HR and Finance 3. Scope (what are the parameters/boundaries of the project): This project covers the full width of services offered by the Northgate system and as they are introduced, this will mean removal of various other, paper intensive processes currently being followed by the Council services. 4. Method of approach (how are you going to complete the work): Due to the potential scope of this project and the number of elements involved it is felt that the work should be split into two distinct phases. The first will deal with time critical issues such as the PSN compliance of servers, rollout of the new web based client and the need to address the current absence management recording. This phase will also review the existing processes being followed by both the HR and other teams to provide the main HR 2

3 functions, and to present recommendations and options on the way forward, using parts of the full HR system. This initial phase would be broken into the following sections : A. Application for funding for resources and recruitment of additional staff B. IT Upgrade to new servers for OPSN compliance (not funded from this bid) C. Full rollout of the web based client (by Dec 2015) D. Review of and introduction of new absence recording arrangements E. Review and cleanse of existing data and hierarchy implementation in order to provide more robust staffing establishment information F. Map existing HR processes being followed and review options available G. Recommend options to increase efficiencies across both HR and other services in the delivery of the HR function H. Complete recommendations report along with a fully costed and defined scope to implement the recommendations The report will inform the second phase which would implement any agreed efficiencies which were taken on by the project board. The size and shape of the second phase would not be known until a decision by the board, and as such any bid for resources for phase 2 would have to wait until phase 1 had been completed. It is envisaged that the project would return to if required for further funding, if required 5. Key Outputs (what are you going to deliver): Phase 1 PSN compliant platform All user moved to web based system Current system data cleansed Post hierarchy entered to system Sickness reporting system reviewed and essential requirement met Existing HR processes mapped New, more efficient HR processes designed Report of future work to improve efficiencies using the HR system Phase 2 will depend on the findings from phase Key Milestones (what are the key events and when do they occur): Phase 1 Application funding - (9/06/2015 7/07/2015) Recruitment (7/07/ /09/2015) IT rollout of - (01/10/ /03/17) Data Cleanse - (01/11/ /02/2016) Process Re-engineering - (01/10/ /10/2016) Absence Recording - (01/01/ /03/2016) Report writing - (1/11/ /02/2017) 3

4 Phase 2 No clear set of stages at this time but any implementation would probably take from 6 months (very little change) up to another 1 2 years if there will be major change. 7. Key Interdependencies (what links are need to allow progress see notes): This project is likely to be reliant on the rollout of the IT Network as it may well recommend a much more IT based approach to these HR functions and transactions. The success of the project will also be very much dependant on the agreement of how to deliver the various HR functions, including the ownership of these functions and the delivery of them. 8. Major Project Assumptions (describe assumptions you are making): It is assumed that IT and Finance will have the resources available to commit to this project. The actual amount of resource is not clearly defined at this time. Finance will need to be available to discuss the detail of the current functions and how these could evolve, while IT is required to install the new servers along with the web based client. There would also need to be participation from all services in terms of the process mapping To ensure that these processes are mapped accurately. It is assumed that there will be a need for consultant support from Northgate. Roughly 30 days at 1,000 a day. It is assumed that the additional MyView module for the HR/Payroll system will also be required. This comes at an approximate recurring cost of 5,000 per annum. 9. Staffing required for the Project (including Headcount and FTE see notes): 1 Grade 11 Project Manager for 18 months (at 0.5 FTE) Required to manage the project on behalf of the owner, keeping all interested stakeholders informed and involved, review existing processes in order to re-engineer them to deliver efficiencies. 1 Grade 7/8 Project Officer for 18 months (at 1 FTE) To aid the project manager by initially helping to co-ordinate the data cleanse, along with delivering guidance and support during the web client rollout. 1 Grade 4 Project Assistant for 3 months for the data-cleansing process. 10. Project Management (how do you intend to manage and monitor the project see notes): Project Board meetings will be held every 2 months, or sooner by exception. Monthly highlight reports will be produced by the project manager and approved by the project owner. Regular verbal updates will be supplied by the owner to SMT. 11. Project Funding One-off expenditure (detail what the funding components are see notes): Post Grade Pt Cost/FTE FTE Months Cost ( ) Project Manager G , ,300 Project Support Officer G7/ , ,500 Project Assistant G , ,900 Total Staff Costs 97,700 4

5 Purchase of MyView module 5,000 Consultancy Costs (30 1,000/day) 30, , Increase to annual revenue costs (detail any areas where costs will increase because of the project see notes): There is no anticipation that the annual revenue costs will rise, as the actual work does not increase, just the tool being used is changed. 13. Increase to annual revenue income generation (detail any additional income generated from the project, if applicable see notes): The HR system and associated processes does not generate any income for the Council so no increase. 14. Reduced annual revenue costs (the project should generate cost savings provide details here see notes): Phase 1 will deliver savings as it will remove duplication, double entering and reduce the amount of time taken to find and produce regular reports, etc. In order to ensure payment within the required 5 year period, ongoing annual savings of 26,600 require to be generated. It is felt that this project will deliver savings significantly in excess of this figure; however, this will be more fully scoped out during the process mapping exercise carried out during the project. Phase 2 savings will depend on the analysis work carried out during Phase 1 and as such cannot be defined at this time. As a System Development bid, the Phase 1 time-releasing savings will be converted into cashable budget savings, as agreed by SMT, by permanently removing 26,600 from the Council s budget from 2017/18 onwards, thereby meeting the stipulated payback period of 5 years following implementation. The apportionment of these savings across individual service budgets will be agreed at a future date by SMT, well in advance of finalising the 2017/18 budget. 15. Stakeholder consultation (who are the key stakeholders and what consultation has been undertaken to date or needs to be undertaken in the future?) Two main areas of consultation which will need to take place during the project : Consult with the various administration teams in the services to discover what records they keep in terms of HR information and processes, which need access to the data, why and when. Consultation with various service teams who are not office based to find the best solution for system access. 5

6 16. What are the risks to the success of your initiative and how will you deal with them? There is a risk that there is not enough capacity in the Finance and IT teams to aid in this project Initial discussions will need to take place with Head of Finance and Head of IT about the amount of resource required and the scheduling of this requirement. There is the risk that the HR system will not be fully implemented as it impacts staff in terms of electronic submissions and electronic payslips the launch of this needs to be backed by CMT, who will actively participate in the selling of the system. 17. What is your contingency plan if the expected savings and benefits are not realised? If the benefits are not realised and there is no central completion and storing of the HR data, then the services will continue to hold that data and there will be no efficiencies realised. 18. What will happen if your proposal is not accepted? The HR team will continue to work from paper copies of forms etc., which could introduce an error element, a time delay in correcting information and also means that service teams spend time collating and saving HR type records. There is also a possible security implication of keeping paper copies. Project Lead Signature and date: Executive Director Signature and date: FINANCE USE ONLY Date Received: Approved / Not Approved Signature: 6