Optimizing Your Payroll and HCM Technology. Providing You the Keys to Transformation
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1 Optimizing Your Payroll and HCM Technology Providing You the Keys to Transformation
2 Agenda Today s HCM Environment Getting Strategic ADP s HR/Payroll Technology Optimization Assessment Q & A
3 Today s HCM Environment
4 What is HCM?
5 Today s HCM Environment
6 HCM Technology Goals Productivity Improvement Consistent and Seamless Information Access Increased Workflow Efficiencies Improved Internal and External Communication Improved Real-time Decision Making
7 The Dilemma Most Organizations don t know yet how to use their HRIS, and how to make it connect to the kind of things that make HCM strategic
8 Getting Strategic How to Optimize your HRMS
9 HRMS Strategy Design a strategic plan for the HRIS aligned with the overall objectives of HR/Payroll Define current state process gaps, and map out approaches for the required changes for future state strategies, including those currently not supported by the HRIS Analyze the impact and implications of the proposed changes within the organization Identify and prioritize the initiatives, as well as develop a cost/benefit analysis, if applicable
10 Step 1 - Begin With The End In Mind Begin with the end in mind means begin each day, each task, or project with a clear vision of your desired direction and destination, and then continue by flexing your proactive muscles to make things happen Stephen R. Covey
11 Cedar Crestone HCM Application Blueprint Cedar Crestone HR Systems Survey 2013
12 Step 2 - Define the Current State of Processes Define current state process gaps, and map out approaches for the required changes for future state strategies, including those not supported by the HRIS.
13 Utilize Process Flows Shared Service Center PR 2.0 PR 2.1 PR 2.2 Payroll system Pay Balancing & set to run a pay calculations audit cycle executed reports Payroll to General Ledger interface Payroll to tax acct g or 3 rd party interface Payroll to A/P or 3 rd party interface Other internal interfaces No Ok? Yes PR 2.3 Transmit / process final pay calc Standard reports Data Warehouse Employee PR 2.6 Employee receives pay check or advice External Entity PR 2.5 Third Party Interfaces (benefits, taxes, bonds, savings plans, ) PR 2.4 Banks (Positive pay, direct deposit) Third Party generates checksadvices
14 Identify - Critical Data
15 Step 3 Score Yourself Run data anomaly reports to measure data quality and determine clean up efforts required
16 Data Anomalies 1 employee under the age of 16 exists in the database 227 employees have unusual dependent records 187 employees and spouses are both electing benefits 15 employees have over-age dependents with no disability or student status 348 employees are non-married with spouses on file
17 Importance of Data Quality To ensure the information and reports produced by your HRIS are meaningful and are able to be used to for decision making by Management, the data entered must be accurate, complete, and consistent Poor data quality, missing information and inconsistent use of established codes creates errors in employee paychecks, benefits eligibility and enrollment, 401k eligibility and enrollment and compliance reporting It s everyone's responsibility to ensure the data they are entering is accurate, complete and consistent
18 Step 4 Assess Organizational Impact Analyze the impact and implications of any proposed changes within the organization
19 CHANGE Model C Challenge the Current State Evaluate & Institutionalize the Change E H Harmonize & Align Leadership Guide Implementation G A Activate Commitment SOURCE: Thriving Through Change: A Leader s Practical Guide to Change Mastery, The American Society for Training and Development and Elaine Biech 2007, Publisher: ASTD N Nurture & Formalize Design 19
20 Change is Hard Gartner, and Independent IT research firm as cited in Delivering Transformational Change: European Business Review March 3, For major corporate systems [change] investments: o 28% are abandoned before completion o 46% are behind schedule or over budget o 80% are not used in the way they were intended to be or not used at all six months after installation. Having a clever strategy is not enough and successful organizations should proactively develop the internal capacity to implement change faster and more effectively than their competitors. Many so-called failures are actually change projects that have been partially installed, rather than fully implemented. The organizational, strategy, process and technology components of a change initiative may have been put in place effectively, but are not being applied or used in the intended way with the required level of understanding, commitment and personal ownership. People readily slip back into their old ways of working when change leadership efforts are prematurely withdrawn. 20
21 Step 5 - Prioritize Identify and prioritize the initiatives, as well as develop a cost/benefit analysis, if applicable
22 Transformation Stabilize: Training Data Analysis/Clean up Business Process Development Strategize: Executive Steering Committee Planning/Vision Define Success Measure Transform: Leverage /Upgrade Technology Centralize Services Shared Service Implementation
23 ADP Technology Optimization Process
24 Optimization Process The HR Technology Assessment is used to learn about the current status of your application, and to provide transformation strategies where the status is found to be off-target from generally accepted best practice definitions. During the initial assessment effort, we focus on a number of target areas or dimensions which, based on our experience, are critical to optimal processing and system utilization. The process includes a series of intensive, process-based interviews involving subject matter experts. The information gathered from these interviews is delivered as: Summary findings Detailed findings by dimension Short, mid and long term recommendations Summary of recommendations per finding Available vs. leveraged functionality
25 Optimization Process Objectives Review overall HR technology strategy with leadership team to understand current issues and future state vision Identify areas of decreased efficiency and opportunities for improvement in both the HR and Payroll areas Provide recommended strategy for migration to desired future state Identify opportunities to fully utilize your technology solutions beyond basic HR and payroll functionality, and determine areas for process and application improvement and scalability
26 Optimization Process Overview During the Assessment phase, ADP resources conduct interviews with the client team to better understand current areas of concern and obstacles to transforming to the desired future state As part of the Communicate phase, ADP resources analyze all information gathered from the discussions and interview sessions. Findings are presented to the client to highlight significant issues and potential trouble spots within the current environment. Short, mid and long term recommendations for improvement are identified The final phase of the process, Transform, requires recognition by the leadership team that change needs to occur, and acceptance of the recommendations and resolutions included in the findings, will support repeatable and sustainable work processes using ADP technology
27 Topics Discussed During Interviews Core HR, Benefits and Payroll Transactions Future Desired State Supporting Application Functionality Data Elements Process Models/Custody of Tasks Audits/Compliance Training Needs
28 Dimensions/Points of Impact People/Skills Alignment Business Process/Application Configuration Controls and Security Reports and Interfaces Program/Change Management System Performance Production Management Enabling Opportunities
29 Sample Deliverables
30 Results of the Process Resulting data is presented within the eight assessment dimensions and rated within a Red / Yellow / Green score. Red - Significant issue and must be addressed Yellow - Warning and may impact quality or efficiency Green - Good practice in place
31 Summary Findings Dimension Summary Rating People/Skills Business Process/ Application Security Controls/Security Reports/Interfaces Production Management Program/Change Management System Performance Enabling Opportunities HR users are not comfortable with the full capability of the current system, prohibiting them from recommending change, and creating redundancy in data capture. HR users feel they do not have the time or resources to devote to additional education, knowledge transfer and process improvement Lack of functionality in some implemented applications (Recruiting/Benefits) and underutilization of others (HRIS) have created the need for numerous manual processes which are time consuming and have the possibility of producing inconsistent results System security is administered and monitored appropriately. However, historical lack of analytical and audit experience in critical areas (Payroll) has created reactive rather than proactive audit of overall data Inadequate integration between key systems causes duplication of data entry and increased risk of error No formal processes in place for requesting application changes, implementing enhancements, or testing new functionality Sustainability of change and new initiatives is impacted by lack of formal corporate governance over use of HR technologies Resolutions to system issues are not formally tracked, therefore client is not able to consistently leverage prior knowledge or address root cause of recurring issues Lack of fully implemented self-service and workflow functionality creates redundant manual processes causing Human Resources staff to be mired down in daily transactional processing rather than focusing on valued-added HR planning and consulting activities
32 Sample - Total Findings by Dimension Green Yellow Red People/Skills Business Process Controls/ Security Reports/ Interfaces Program/ Change Management Production Management System Performance Enabling Opportunities
33 Detailed Findings
34 Recommendations
35 Recommendations by Finding
36 In the end Implement the changes while focusing on the realization of the ROI
37 Questions?
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