Implementing an HRMS Where Do You Begin. Dino Nosella, PMP

Transcription

1 Implementing an HRMS Where Do You Begin Dino Nosella, PMP Thursday

2 Agenda Introduction Definition of HRMS/HRIS The life cycle of Implementing an HRMS/HRIS Questions 1

3 Definition of HRMS/HRIS? A Human Resources Management System (HRMS) is a software application(s) that combines many human resources functions, including benefits administration, payroll, recruiting, learning management, and performance management. A Human Resources Information System HRIS is a system used by human resources departments to track employees and information about them. 2

4 Getting Started May Feel Like Herding Cats 3

5 HRMS Project Life Cycle Need for HRMS Business Drivers Pain Points Preparation Define goals & objectives Business case Steering Committee Project Definition Detailed Business requirements SaaS vs Hosted vs On-Premise Integrated vs Best of Breed RFI Vendor Selection Research Vendors Selection Criteria RFP Contract negotiations Implementation Project Management Scope Timelines Resources Budget Post- Implementation Transition Plan Realization of Benefits On-going Performance 4

6 HRMS Project Life Cycle Need for HRMS Business Drivers Pain Points Preparation Define goals & objectives Business case Steering Committee Project Definition Detailed Business requirements SaaS vs Hosted vs On-Premise Integrated vs Best of Breed RFI Vendor Selection Research Vendors Selection Criteria RFP Contract negotiations Implementation Project Management Scope Timelines Resources Budget Post- Implementation Transition Plan Realization of Benefits On-going Performance 5

7 Need for HRMS Key Questions WHAT? What will the an HRMS do for the business? What pain points will it address? WHEN? will the HRMS project take place? Target go-live date? WHY? Why is an HRMS needed? Does it align with business goals? WHO? Who is the project for who needs to help? WHERE? in the business will it impact (departments) Geographical landscape HOW? will the project get done? 6

8 HRMS Project Life Cycle Need for HRMS Business Drivers Pain Points Preparation Define goals & objectives Business case Steering Committee Project Definition Detailed Business requirements SaaS vs Hosted vs On-Premise Integrated vs Best of Breed RFI Vendor Selection Research Vendors Selection Criteria RFP Contract negotiations Implementation Project Management Scope Timelines Resources Budget Post- Implementation Transition Plan Realization of Benefits On-going Performance 7

9 Preparation Defining Business Goals & Objectives Establishing clear Goals & Objectives is critical! It drives decision-making Establishes metrics for success. What is the difference between Goals and Objectives? Goals are high-level and generic. May also be referred to as the vision and provides general guidance. Objectives are specific targets within the goal. They need to be SMART (Specific, Measurable, Achievable, Realistic, and Timely) Common Mistakes Insufficient time & attention is given to establish goals and objectives Objectives are not SMART Goals & Objectives are documented in the beginning and filed away out of sight & out of mind 8

10 Preparation Preparing the Business Case The purpose to the Business Case is to get approval to implement an HRMS Must demonstrate business value: Cost Reductions Support for Business Growth Improving Operations (efficiency, cycle times) Regulatory Compliance (government, CBAs, etc) Requires high-level research and information: High-level business requirements Project cost estimates Operational (on-going) cost estimates Cost & Risks of maintaining status quo 9

11 Preparation Balancing Forces in the Business Case RISK? RISK! Need for Change Project Barriers Future State Benefits Current State Pain Points 10

12 Preparation Establishing A Steering Committee The Role of a Steering Committee Provides guidance and direction on scope, funding and timing Provides direction on communication to the organization Removes barriers to the success of the project Commits the required resources to the project Facilitates organization readiness and end-user adoption Monitors the progress and the organizational impacts of the project Resolves escalated issues and ensures decisions are carried out Sign-offs on key deliverables/project milestones Steering Committee Membership Should be comprised of senior members of the organization (VP-level and above) Representatives of key areas or key stakeholders impacted by the HRMS Members need to commit to be active participants 11

13 Preparation Executive Sponsorship Sponsorship is a commitment by management to define, defend, and support projects throughout the project life cycle. Sponsor Activities: Approve budget, schedule and scope Define, communicate & champions the Project Vision throughout the organization Ensures alignment between competing strategic projects Sets expectations at the executive level Resolves escalated issues and ensures decisions are carried out Ensure necessary project and business resources are available 12

14 Preparation 10 Attributes of an Executive Sponsor 1. Understands the problem(s) the project will resolve 2. Ensures the solution fixes the problem(s) 3. Provides the right resources at the right time 4. Is an advocate, coach, and influencer for the project 5. Understands and helps resolve the big issues 6. Holds the team accountable for results 7. Knows where good enough is 8. Understands change impacts 9. Acts as a change agent 10. Makes tough decisions 13

15 HRMS Project Life Cycle Need for HRMS Business Drivers Pain Points Preparation Define goals & objectives Business case Steering Committee Project Definition Detailed Business requirements SaaS vs Hosted vs On-Premise Integrated vs Best of Breed RFI Vendor Selection Research Vendors Selection Criteria RFP Contract negotiations Implementation Project Management Scope Timelines Resources Budget Post- Implementation Transition Plan Realization of Benefits On-going Performance 14

16 Definition Gathering Business Requirements 15

17 Definition Requirements Matter Poor identification and documentation of requirements is often on Top Reasons why Projects Fail lists 1. Inadequately trained and/or inexperienced project managers 2. Failure to set and manage expectations 3. Poor leadership at any and all levels 4. Failure to adequately identify, document and track requirements 5. Poor plans and planning processes 6. Poor effort estimation 7. Cultural and ethical misalignment 8. Misalignment between the project team and the business or other organization it serves 9. Inadequate or misused methods 10.Inadequate communication, including progress tracking and reporting source: gantthead.com 1. Poor sponsorship 2. Unclear requirements 3. Unrealistic timescales or budgets 4. Scope creep 5. Poor risk management 6. Poor processes/documentation 7. Poor estimating 8. Poor communication/stakeholder engagement 9. Poor business case 10.Inadequate/incorrectly skilled resources source: pmstudent.com 1. Lack of User Involvement 2. Long or Unrealistic Time Scales 3. Poor or No Requirements 4. Scope Creep 5. No Change Control System 6. Poor Testing source:vwww.coleyconsulting.co.uk 16

18 Definition Process for Gathering Requirements Inputs Functionality Business Rules Data / Information Outputs What do people give you? What do you do? What rules apply? Why? What do you need to keep track of? What do you give people Enlist the help of a professional Business Analyst with HRMS knowledge & experience! Source: 17

19 Definition I know nothing about software Now What? 18

20 Definition Software Solutions: Integrated vs Best of Breed Best-of-Breed Systems Designed specifically to address needs in specific functional areas. Richer functionality, may be industry-specific Specialist software Integrated Systems Also referred to Enterprise Resourcing and Planning (ERP) systems Provides a number of applications (or modules) to support multiple functional areas (Finance, Purchasing, HR, etc) More generic / broader functionality aimed at a wider audience. Jack-of-all-trades software 19

21 Definition Deciding Between Integration and Best of Breed This is a corporate (company-wide) decision and cannot be made by an individual department in isolation! Need to align to: Corporate technology (or IT) roadmap Software requirements from other areas of the organization Business growth projections Other business initiatives. 20

22 Definition Integrated vs. Best of Breed Things to Consider Integrated Advantages One supplier to deal with A unified interface, consistent operation across various functions Seamless data flows. Single point of entry. Minimal integration work. Best of Breed Specialist - you'll be buying into their specific knowledge of this specific function Less IT intensive implementations and maintenance Faster implementation due to smaller scope Disadvantages Can be cumbersome and complex to use and to understand Will need to give-up functionality in favour of integration and data flow. More complex Implementation and upfront costs May be too complex for smaller organizations Integration with other systems can be complex, ineffective, and costly. Multiple points of entry for data. Suppliers / vendors are often small and may not understand needs of large organizations. 21

23 Definition Software Deployment Options Software-as-a-Service (SaaS) Software is off-site, Subscription-base (ie leased ) Less flexibility to customize the software Hosted (Hybrid) Customer-specific version of software, offsite Generally subscriptionbased fee structure Intermediate flexibility to customize.. On-Premise (Traditional) Software installed on-site Company owns software Ability to configure and customize as needed 22

24 Definition SaaS vs On-Premise Implementation Upfront Costs Total Cost of Ownership (TCO) Upgrades Software-as-a-Service (SaaS) Shorter cycle but increased business demands on change aspects Only costs of montly /quaterly subscription and temporary hardware Slightly lower in long-term (7-10yrs) No asset ownership Controlled by vendor. On-going demands on customer to test and keep updated Customization Limited Flexible Integration Very challenging. Limited ability to tailor integrations and working with software vendor directly On-Premise (Traditional) Longer cycle due to technical and infrastructure components Higher costs due to hardware & software licenses Slightly larger in long-term (7-10 yrs) Asset ownership Controlled by customer. May utilize downlevel software. Integrations can be customized to system needs. May still require working with software vendor. Data Security Controlled by software vendor Controlled by customer Operational Transparency Organizational Change Little visibility into system health and vendor (business) health. Significant change impacts due to limited ability to customize software. Business must adopt software processes. Software owned and managed by customer. No impact Less change impacts if software customized to support current business practices. Source: Panorama Consulting 23

25 Definition When to Choose SaaS vs On-Premise Business Processes Software-as-a-Service (SaaS) Simple or vanilla. Immature or undefined Complex or unique On-Premise (Traditional) Business Model Stable, little change Volatile or constantly evolving Company Skills Small to mid-size Mid to large, global IT Skills Little to none Sophisticated IT infrastructure Little to none Well-established Integration with other systems Little to none Need for integration Control Little need or desire Require control Source: Panorama Consulting 24

26 Definition Researching Vendors Enlist the help of a professional with knowledge of HRMS Vendors & the Vendor Selection Process. 25

27 Definition Request for Information (RFI) Used to collect information from different suppliers prior to formally sourcing products or services. Used where there are many potential suppliers and not enough information is known about them. It is a structured process that can be used to compare responses from potential vendors. Help reduce a long list of potential suppliers to a short list of those organizations that are willing and able to fulfill your requirements. RFIs are higher-level so they are often the first step and used in combination with a Request for Proposal (RFP) 26

28 HRMS Project Life Cycle Need for HRMS Business Drivers Pain Points Preparation Define goals & objectives Business case Steering Committee Project Definition Detailed Business requirements SaaS vs Hosted vs On-Premise Integrated vs Best of Breed RFI Vendor Selection Research Vendors Selection Criteria RFP Contract negotiations Implementation Project Management Scope Timelines Resources Budget Post- Implementation Transition Plan Realization of Benefits On-going Performance 27

29 Vendor Selection Selection Criteria Categories Software Vendor s Corporate Vision Technology and System Architecture Product Functionality Product Cost Service and Support Supplier Longevity Driven through: Vendor meetings RFP responses On-site demonstrations, and References 28

30 Vendor Selection Narrowing Down The Vendors Research potential vendors Initial Review Conduct Request for Information (RFI) Greater detail on solution Conduct Request for Proposal (RFP) Conduct demonstration of solution Top Two Vendors Conduct Reference Checks Select Vendor of Choice 29

31 Vendor Selection Request for Proposal (RFP) Used to receive detailed proposals from different suppliers prior to purchasing the software. It should provide all required information to make an informed purchasing decision, including: Scope Implementation timeline Design information. Specifications Budget Vendor corporate & financial information It is a very structured process used to compare responses from potential vendors and demonstrate impartiality in the evaluation process. Clearly outlining your detailed requirements is critical to issuing a successful RFP 30

32 Vendor Selection Software Demonstration Major objective of the demonstrations: What do I want to SEE the software do? Well-organized scripted demonstration should include; Seeing your company data Viewing the software processes transactions that reflects your business Viewing the features and functions within the core product Evaluate other areas: Technical infrastructure Implementations Post Implementations requirements 31

33 Vendor Selection Contract Negotiations Software Contract Licenses vs Subscriptions Professional Services Contract Vendor vs System Integrator (SI) 32

34 Vendor Selection Professional Services Contract Scope/Deliverables Clearly what is in scope and NOT in scope Timeline Understanding of the detail timing when things are to be completed Resources What is the vendor providing and what will you need to provide Contract type Time and Materials vs Fixed Price vs Milestone Billing 33

35 Vendor Selection Vendor Selection Lessons Learned Set realistic expectations Get key decision makers on board Right team members No software package can cure all corporate problems Realistic return on investment (ROI) Understand the business requirements functional needs and processes Force vendors to show the system Keep emotions out of the selection process Do reference checks Understand how the software solution is maintained and enhanced Understand the significance of change management 34

36 HRMS Project Life Cycle Need for HRMS Business Drivers Pain Points Preparation Define goals & objectives Business case Steering Committee Project Definition Detailed Business requirements SaaS vs Hosted vs On-Premise Integrated vs Best of Breed RFI Vendor Selection Research Vendors Selection Criteria RFP Contract negotiations Implementation Project Management Scope Timelines Resources Budget Post- Implementation Transition Plan Realization of Benefits On-going Performance 35

37 Implementation Project Manager Who is the it going to be? The P in PM is as much about PEOPLE management as it is about PROJECT management Persuasion and Influence Telling the truth 36

38 Implementation Project Manager Internal vs External Is business knowledge critical to the success of the project Does the required skill-set exist Seen as an expert will they have authority Seen as a strong leader Do they have persuasion and influence Ability to say NO Will be able to deliver difficult news will the truth be told 37

39 Implementation Use of Consultants Cons Will leave after project is completed Costly Business knowledge is limited Pros Addresses skill-set gap Not Political Will be able to say NO Various experiences among projects, industries, and products 38

40 Implementation Project Governance The Pillars People Committee Membership Organizational Roles Structure Steering Committee Stakeholder Groups Program Board Project Team Organization Information Project Reports Issues Risks Key Documents 39

41 Implementation Key Elements of Project Governance Framework Establish the proper flow of information Define procedures to review issues and risks Establish mechanism to ensure required approvals are obtained Re-enforce decisions to achieve the desired benefits Define procedures to control scope, budget, and quality Define an escalation process that will facilitate items to be resolved. 40

42 Implementation Project Scope Elements Software Application Benefits, Performance Management, Absent Management, Payroll, etc Functionality Organization structures, position management, compensation packages, etc RICE Reports, Interfaces, Conversions, Enhancements Business Processes Hire, Terminate, Transfer, Demote, etc Organizational Departments in the organization that will be affected Geographical Location where the system will be used 41

43 CHANGE MANAGE MENT DATA TESTING SYSTEM BUILD PROJECT MANAGE MENT Implementation Project Timeline, Framework and Deliverables Project Planning Architect (Design) Configure & Prototype Test / Deploy Go Live & Support Project Plan Scope Statement Scope Management Risk Management Quality Management Transition Plan Lessons Learned Requirements Detailed Requirements Design Document Configure Custom Coding Rework Support Fixes Testing Scenarios Master Test List Test Cases Test Test Cases Test Test any Fixes Requirements Upload Workbook Data Loads Cleansing Final Data Load Stakeholders Training Plan Training Materials Training Support Communication and Business Readiness 42

44 Implementation Testing TESTING, TESTING, TESTING.and then some more TESTING Testing takes time when done correctly Allow time to address issues Resource intensive so need to plan it Need to find issues Follow a process and stick to it Vendor must test against the requirements Various levels of testing Unit, String testing, User acceptance testing, Interface testing, Integration testing 43

45 Implementation Data Migration and Conversion Data Cleansing Multiple Data Sources Organizational Impacts Data Readiness Data Conversion Data Formats Look & Feel Fonts Structures / Groupings Data Management Master Data Procedures Data Owners Lead Times Forms Overly-optimistic perceptions of data readiness Under-estimation of cleansing efforts Education of system data requirements 44

46 Implementation The Change Management Iceberg CHANGE COMPONENT PEOPLE USERS Acceptance / Skills ROLES Jobs / Organization TECHNOLOGY DATA SYSTEM FUNCTIONALITY Information Tasks / Activities PROCESS PROCESS STEPS BUSINESS PROCESSES Company Culture Hand-Offs Organizational Structure 45

47 Implementation A Communications Strategy WHY IT S IMPORTANT OBJECTIVES The purpose Expected outcomes GUIDING PRINCIPLES Overarching philosophy Guide how objectives are achieved The Rules of the Game CRITICAL SUCCESS FACTORS Show stoppers Decision points APPROACH Outline of process Associated activities KEY MESSAGES Consistent messages What stakeholders (audiences) need to know COMMUNICATION CHANNELS Vehicles for delivering communications MEASUREMENT WHAT IT IS Effectiveness against intended communication objectives FEEDBACK PROCESS & MECHANISMS Steps to Initiate questions and make suggestions Methods for soliciting and receiving feedback WHO IS INVOLVED ROLES & RESPONSIBILITIES Accountabilities and work effort associated with communication planning & development STAKEHOLDERS Groups and individuals that are impacted by and have influence over initiatives MAKING IT HAPPEN THE COMMUNICATION PLAN

48 Implementation Training Start planning as early as possible Often left to the end with little time to create the right materials Create materials that are useful outside the training session Reference guides, business processes, Quick reference sheets Have training as close to the Go Live as possible Greater impact if training is conducted by peers Plan for training logistics Schedule people into classes as early as possible Allow for flexibility in schedule Use technology when it makes sense 47

49 Implementation Tool for Assessing Business Readiness Processes Technology People Low Level of Readiness High level flows and discussion Discussions focused on different scenarios and how to handle them Uncomfortable with system Struggle with system lingo and unable to link to existing systems and procedures Unsure of roles and responsibilities. Territorial behavior Mixing roles in the system with job descriptions High Level of Readiness Detailed process discussions New scenarios can be addressed quickly Comfortable with the system, can describe screens, visualize Can easily link system terminology to existing terminology High comfort with roles and responsibilities. Can see the big picture. Understand difference between system roles and business roles 48

50 HRMS Project Life Cycle Need for HRMS Business Drivers Pain Points Preparation Define goals & objectives Business case Steering Committee Project Definition Detailed Business requirements SaaS vs Hosted vs On-Premise Integrated vs Best of Breed RFI Vendor Selection Research Vendors Selection Criteria RFP Contract negotiations Implementation Project Management Scope Timelines Resources Budget Post- Implementation Transition Plan Realization of Benefits On-going Performance 49

51 Post Implementation Transition Plan Describes the process to deliver the system from the project team to the support group that will maintain the system Transition process: Outlines approval requirements and a schedule of transition activities Documentation requirements: Documents to be prepared including contracts, training materials, and any other forms or legal documents. Roles and responsibilities: Describes the roles and responsibilities of the project team and the receiving organization in the transition process. Transition critical success factors: Describes the critical success factors that are considered essential to ongoing benefits sustainment and assurance. 50

52 Summary points Clear business objectives and goals Strong ownership Requirements matter See the solution in action Clear expectations of scope Strong Project Management Leadership Governance TEST, TEST, TEST, TEST Data efforts not to be under-estimated Consider Change Management impacts Clear communications Understand the end 51

53 Dino Nosella