HR Technology & Talent Management Using Cloud Based SaaS solutions to Power your Strategy

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1 HR Technology & Talent Management Using Cloud Based SaaS solutions to Power your Strategy James S. Trujillo Senior Manager, Human Resources Rico Kmetz-González IT Business Systems Manager

2 Multiple Perspectives Information Technology Human Resource Finance

3 It all began with Culture Customer Focus CULTURE ALIGNED Alignment AGILE Agility

4 System Adoption Trends by Industry* Early Adopters 65% Financial Services High Tech Communications Mainstream Adopters 55% Ag./Mining Construction Retail/Manufac. Health Care Utilities/Trans. Late Adopters Higher Ed. 45% Public Sector 35% Demographics are changing the new workforce (as big as the boomers) have grown up digital Having Facebook friendly systems will soon become the norm and expectation of staff joining the Port of Portland *Based on the CedarCrestone Report 2012

5 HR Technology Initiative Drivers Enhancement of the Port of Portland culture Speed of business increased more agile Increased organizational efficiency Reduction in time to hire Reduction in time to complete performance reviews Elimination of duplicate and in-house systems; eliminate paper Reduction of IT labor cost for HR systems Improved organizational effectiveness Increased information transparency and access; easy interface Improved management accountability Enhanced business control Reduced risks Effective management of regulated/mandated training records

6 Definitions SaaS or Software as a Service/Cloud Based Systems Web-based technology Software leasing model Highly configurable/no customization Workforce Management System Suite Core HR systems e.g. master data, benefits, payroll, timekeeping; longer market track record Talent Management System Suite Recruitment, learning management, performance, compensation and succession management; more recent or emerging technology

7 PORT HR System Environment 2010 Working System requires maintenance Outdated System requires upgrade or change Timekeeping Workforce Payroll JDE HR Master System JDE Benefits JDE Workforce Management Systems (HR Core) Compensation Planning HRMBS Recruitment ATS Unsupported Business Process -No System- Learning Management System NONE Succession Management NONE Performance Management NONE Talent Management Systems

8 Problems to be Solved Several systems outdated Risk of maintaining in-house systems Major business processes not supported by internal systems User interfaces inadequate Administrative paper-based processes time consuming and perceived as conservative/outdated

9 Options Considered Do nothing, seek efficiencies within existing business processes On premise, licensed system expansion of existing software e.g. JD Edwards New on premise, licensed system solution New Software as a Service solution

10 HR Interest in Software as a Service Improved user interface for employees, managers and HR Using SaaS is invisible to the end user No hardware or software purchasing requirements (assuming you are up-to-date) Faster time to achieve value Moves the expenditure from capital to operating

11 IT Support Time Reduced* *Based on the CedarCrestone Report 2012

12 Implementation Time Reduced *Based on the CedarCrestone Report 2012

13 Risks What could go wrong? New technology Implementation Connectivity to HRIS (JDE) Security Privacy of information Loss of control Performance Reliability Vendor viability long term Staff acceptance/change

14 HR Technology Project Status Phase 1: Recruitment ( ) Status: complete Phase 2: Performance & Compensation Administration ( ) Status: 90% complete Phase 3: Succession and Learning Management ( ) Status: initiating

15 PORT HR System Environment 2013 Payroll JDE Working System requires maintenance Timekeeping Workforce HR Master System JDE Benefits JDE Compensation Administration Cornerstone OnDemand Recruitment Neogov OHC Implementing Learning Management System Cornerstone Performance Management Cornerstone OnDemand Succession Management Cornerstone

16 Outcomes Cautiously Optimistic Initial organizational reaction: generally good Elimination of two in house systems Diminished risk due to potential loss of internal IT talent Eliminated 160 hours of internal IT support; on track to eliminate significantly more Reduction in time to complete HR processes Time to hire reduced by 10 business days Performance management process reduced by 10 business days (est. 20 by 2014) Quality of performance goals and reviews improved Reduction in HR administrative time, after learning curve More work needed to optimize investment

17 Phase Costs Phase 1 - Recruitment Phase 2 Comp./Perf. Phase 3 LMS $14k $9k $9k $9k $9k $9k $9k $0 $50k $25k $25k $25k $25k $25k $0 $0 $51k $33k $33k $33k $33k TOTALS $14k $59k $85k $67k $67k $67k $67k Phase 1 cost after 7 years: $68k Phase 2 cost after 6 years: $175k Cumulative cost of all phases after 7 years: $426k Comparison to on premise, licensed estimate: $850k (+50%) Pricing based on number of users and functionality selected.

18 Resources HR Technology Conference Expert discussions with HRIT company peers New technology demonstrations Vendor expositions Naomi Bloom HR technology blogger Cedar Crestone White papers Bersin by Deloitte White papers/benchmarking

19 The SaaS Port Experience An IT Perspective A POP Quiz

20 SaaS versus Onsite - POP Experience Quiz True or False A SaaS implementation costs significantly less than an onsite application True (mostly) Vendor implementation costs are significantly lower compared to onsite No hardware costs, except for possible infrastructure requirements Internal labor costs do not decrease but are shifted from IT to HR Overall project costs move from Capital to Operating Expense (ongoing)

21 SaaS versus Onsite - POP Experience Quiz True or False SaaS takes less time and is simpler to deploy than onsite applications Not Really Turning on the software is simple ; however, there is a major level of effort needed for system configuration Adjusting business processes to match SaaS functionality may be not be simple nor quick There will be a steep learning curve in learning the Administration of the SaaS application The vendor may be done in weeks, full implementation with the business stakeholders may take months (or years)

22 SaaS versus Onsite - POP Experience Quiz True or False SaaS implementations are less flexible than onsite True SaaS flexibility is limited to configuration settings Customization is not an option Enhancements are driven by the vendor based on their vision and the larger SaaS community

23 SaaS versus Onsite - POP Experience Quiz True or False Upgrades are no longer an issue with SaaS True (but) Yes, the vendor handles all software upgrades You get the upgrades whether you want them or not, staying on an older version is usually not an option Version releases my be frequent and need to be monitored for functionality changes

24 Preparing for an Implementation Assumptions to Avoid Do Not assume SaaS is going to be the preferred solution over Onsite Do Not assume that administration and management of a SaaS application will simply be added to existing staff responsibilities Do Not assume IT will not need to be involved

25 Preparing for an Implementation Where Are Your Business Analysts? Success implementation is dependent on significant Business Analyst support to drive out detailed business requirements prior to the RFP process Business Analysts must be familiar with existing business process to know what can and cannot be changed External consultants are not the best option and will drive up project costs Business Analyst LOE will also be significant during implementation to assist in setup and configuration

26 Preparing for an Implementation Do You Have Your Business Requirements? A detailed list of business requirements is critical Business requirements must to be prioritized into categories based on need and importance to business processes (Critical, Need To Have, Like To Have) Critical requirements are show stoppers. If they are not provided by the proposed solution, it is not a solution Need to Have and Like to Have are negotiation points during the vendor selection process

27 Request For Proposal Vendor Selection RFP and vendor selection processes should be led by the Business with a strong IT presence All Critical business requirements must be matched with SaaS functionality Onsite demonstrations should be mandatory Reviewing customer base and contacting referrals is highly recommended

28 Request For Proposal IT Review Issues Transmission Security - Linkage and Encryption Account Security - Single Sign-on Data - Historical Loading What is the System of Record Change Control Process - Test Environments

29 Request For Proposal Reporting What Are the Key Business Requirements? Desired outputs - Excel, Word, PDF, Automatic scheduling and delivery Do users need to create their own reports Is data needed from other sources?

30 SaaS Implementation Project Management SaaS vendor will usually offer Project Management. This may not be adequate Communication Training Roles and Responsibilities Business Process Change Integrations

31 Post Implementation Critical Success Factors Make sure your scope is well defined - smaller is better IT and the Business need to develop a true partnership Implementation and administration responsibilities should be clearly defined Ownership by the Business (not IT) is recommended IT is an important partner providing application support advice and recommendations during RFP, vendor selection, implementation and after go-live The Business needs to continue communication with the vendor and network with the SaaS user community to help drive out new functionality without reinventing the wheel

32 SaaS Advice IT Recommendations Support the business as they learn the ropes of managing an IT type project Know the critical linkages in and out of the SaaS application and handle all the technical issues (security, encryption) according to IT SOP Provide a single IT voice for the business so they don t get confused by their own organization when trying to address SaaS technology questions from the vendor

33 SaaS Advice HR Recommendations Complete an inventory of your current suite of systems Ask what do we have today? Where are our gaps and what do we truly need? When seeking a vendor partner, find out their market focus Define project implementation roles with detail and clarity early in the project Do not underestimate time commitment in HR Define short term maintenance roles HR/Business Long term staffing implications for HR HR technology competency and management development

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