HR Best Practices for Improving HRMS / HRIS - Tom Sonde - SilverRoad Solutions

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Implementing new technology does not guarantee efficiency. There’s a lot more to a successful system implementation then simply letting your IT department hire a system implementation firm to install your new software.
Surveys have reported that up to 90% of organizations are dissatisfied with their HR system. While some of the blame should rightfully be directed at the software provider a significant portion of the issues can be traced directly back to an inadequate implementation.
Whether you are implementing a traditional HR system, one of the new cloud based systems or an add-on such as an online recruiting solution there are a host of things you, as the HR practitioner, should address.
This session will identify and discuss the keys to a successful implementation. It is non-technical and is designed to provide the HR practitioner with practical tips for conducting a systems implementation.

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HR Best Practices for Improving HRMS / HRIS - Tom Sonde - SilverRoad Solutions

  1. 1. HR Best Practices for Improving HRIS / HRMS Tom Sonde SilverRoad Solutions 2012 Annual Conference December 10, 2012
  2. 2. Why Isn’t the System Delivering on it’s Promises? Is this Occurring in your Organization?  Simple tasks take too long to complete  Too much time is spend validating data  Employees constantly complain  Too much paper is being used  There is a significant amount of manual data keying and rekeying  Backlogs exist
  3. 3. Why Isn’t the System Delivering on it’s Promises? Is this Occurring in your Organization?  There is an excessive use of spreadsheets  Senior management information requests result in constant fire drills  Information is not easily accessible  Time consuming system workarounds  External databases / data warehouses supplement the system Does senior management even realize how many of the inefficiencies exist?
  4. 4. There is a Gap Between what the SoftwareDevelopers Intended and what you End Up With “The System Can’t do That” “The system can’t do that” may mean:  The software does not offer that functionality - or -  “It can, but it would require some effort to make the changes and I have more important things to do” - or -  “I don’t have a clue if it’s possible”
  5. 5. Unlock the Value Residing in your System Unlock the Hidden Value  Unlock the hidden value hidden – Without creating the upheaval of an implementation – Without bringing in an army of consultants – Without spending millions of dollars  Achieve a positive Return on Investment
  6. 6. Why isn’t your System Working the way it’sSupposed to? System Not Delivering Many system issues are not the result of the software.
  7. 7. Why isn’t your System Working the way it’sSupposed to? System Not Delivering Many system issues are not the result of the software. They were caused by a flawed implementation.
  8. 8. Implementing new technology does not guaranteeefficiency Teacher After data is Based on the type Custodial - Plant completes Principal or Dept. School clerk entered, Non site-based budget of purchase, Operationsrequisition form or Head approves enters data into requisition will be purchases goes to an requisition isfills out pre-printed and signs system from Teacher funneled into the approver initially routed to one of Exceptional After data is Based on the type Custodial - Plant list for items requisition requisition completes Principal or Dept. School clerk following the following:(1) Children Division entered, Non site-based budget of purchase, Operations needed requisition form or Head approves enters data into requisition will be purchases goes to an requisition is fills out pre-printed and signs system from Site-based budget purchases Applied funneled into the approver initially routed to one of Exceptional list for items requisition requisition go directly to Finance Technology following the following:(1) Children Division needed Career Purchases from a contract Development Site-based budget purchases Applied Type A company or pre-printed list go directly to Finance Technology Finance Dept. (2) Career Library Services Purchases from a contract Purchases not from a contract Type A Development company or pre-printed list Type B company or pre-printed list Finance Dept. (2) regardless of price Chief Academic Library Services Purchasing Dept/ Officer-Textbooks Purchases not from a contract Senior buyers Type B company or pre-printed list Senior buyers review requisition regardless of price receives Chief Academic proof, checks for Teaching & purchases in Purchasing Dept/ Officer-Textbooks errors (4) Type 2 Learning Assmt. Senior buyers "requisition proof" Senior buyers review requisition receives proof, checks for Teaching & purchases in errors (4) Type 2 Learning Assmt. Interscholastic "requisition proof" Buyer requests Requisition proof Other purchases quotes/bids from is generated from are routed to a Buyer receives New Technology vendors (fax, mail, information buyer - based on buyers copy Supplemental Interscholastic or phone) Request entered into Buyer requests Requisition proof assignment Funds-Budget & Other purchases for Quotation form system quotes/bids from is generated from Management (3) are routed to a Buyer receives If errors Type 1 vendors (fax, mail, information buyer - based on buyers copy Supplemental If no errors found are found or phone) Request entered into assignment Funds-Budget & on requisition proof for Quotation form system Management (3) If errors Type 1 If no errors found are found Purchase order is Senior buyers will on requisition proof generated from the correct errors and requisition proof another proof is the next day Brown/yellow copy generated Purchase order is Senior buyers will Finance Dept. generated from the correct errors and sent to school Vendor receives matches invoice to requisition proof another proof is (brown copy is PO and ships receivers report the next day generated receivers report) order to school Brown/yellow copy Purchases orders Finance Dept. Buyer signs and sent to school Vendor receives printed at Senior buyers matches invoice to Blue copy sent to dates PO; sends (brown copy is PO and ships Southside location separate POs (5 receivers report Controllers Office to vendor by mail receivers report) order to school and delivered to copies) Purchases orders or fax Vendor sends Buyer signs and Admin Bldg. System generates printed at Senior buyers invoice to Finance Blue copy sent to dates PO; sends payment when Southside location separate POs (5 White PO copy Dept. Controllers Office to vendor by mail both invoice and and delivered to copies) routed back to or fax Vendor sends receivers report Admin Bldg. System generates original buyer invoice to Finance are entered into White PO copy payment when system Dept. both invoice and Orange copy kept School confirms routed back to original buyer receivers report on file at purchase by are entered into purchasing office sending receivers system report to Finance Orange copy kept School confirms Dept. (5) on file at purchase by purchasing office sending receivers report to Finance Dept. (5) Inefficient New Inefficient Old Process Technology New Process
  9. 9. Successfull Implementations Address both Process andBest Practices in addition to the Technology Best Practices Technology Process The Foundation of a Successful System Includes Process and Best Practices
  10. 10. Who’s to Blame?Why Doesn’t your System Perform as Promised? 1 Project Implementation Team 2 Process Owners 3 Training 4 Consultants 5 Other
  11. 11. Why Doesn’t your System Perform as Promised?  Team not adequately represented by process owners Project  Project team didn’t have a true understanding of the underlying processes Team  Team assumed “built-in” Best Practices were all that was needed  Project lead was an external consultant who focused on the technology  Process owner requirements were based on the old system Process  Process owners had limited experience with large IT projects Owners  The end-to-end process was not adequately addressed during the system design  Inadequate training was provided Training  Training was technology focused and excluded process issues  Training manuals and related documentation were inadequate
  12. 12. Why Doesn’t your System Perform as Promised?  Consultants understood technology, not your business Consultants  System knowledge resided with the consultants and was lost when they left  Consultants viewed the IT department rather then the end-user as their client  The project was sold on a fixed fee  Scope creep occurred Other  Not enough resources were available Common  The wrong resources were involved Issues  Resources were diverted to unexpected issues  There was an aggressive “go-live” date  Issues were addressed by postponing them - “It will be addressed during the next phase or upgrade”
  13. 13. Improvements are can be Achieved Across yourOrganization Human Resoures Processes Benefits Payroll Administration Compensation Processes Training Talent Management Recruiting Time & Sucession Attendence Planning
  14. 14. How Can you Improve your System and Related Processes? To be effective a system must address: HR • Process • Technology Systems • Best Practices TECHNOLOGY
  15. 15. Addressing the End-to-End Processes is theKey to Success AP and Disbursement transactions Payroll - Salary and Benefits Expenses General Fund Salary and Quarterly Benefit Summary Report Expense (2) available for Payroll System transfer VAC system Excel Spreadsheets Risk Management - Life, Health, Dental Expenses are turned into a text RollOver Monthly file then transferred Report sent to Report of all Departments Changes are input into the VAC departments enrollment is sent Spreadsheet VAC System is return hard copies on Excel Disbursement System (5) Health Enrollment to departments for is sent to updated to Risk Spreadsheet Database with all update/correction Controllers Management for which calculates employee health, office changes chargebacks life and dental data Telecommunications - Phone MOD Budget Expense Report used to Telephone bills are Total for each Each department Department prepare MQ received from Nynexl, receives an Any disputes are department is sends (1) Nextel, Sprint, Arch itemized list of reported to the entered on Excel spreadsheets wireless, and Ameritech charges to their Telecommunication Spreadsheets. to the Controller net (3) department s dept. and a credit One sheet per of any is granted. company adjustments ( 1) Report shows MTD and YTD Expenses, Encumbered-unpaid expenses, $ Free Fleet Management - Gas and Maintenance Expenses Balance, and % Free Balance. This report is Work Orders are One copy is sent to John Murphy uses used to create MQ. At month end, Printed report is generated as work is the department, the report to record (2) Report shows General Funds work orders are sent to each expenses and transfer done in Fleet other is used to Departments, account #, recommended summarized by department and funds between Management record expense/ budget, current appropriations, YTD department and Controllers office departments (4) billing entered into Excel expenses, and YTD % budget used. Attachment also includes Outside General Payroll - Mileage Expense Funds with all categories plus estimated Department revenue, YTD revenue received, and YTD Departments Report is returned Payroll inputs Green Bar Report completes mileage printed from % collected. Report generated by Specials receive blank by 9th of month to mileage, system and total calculates Specials Database Controllers office and given to John Account report listing Payroll department reimbursement. The data from these Murphy (12th Floor room 1243) for maintains mileage reimbursement reports are manually review. The report is reviewed with the entered into an CFO by the staff and Controller. Payroll - Medicare Expense Excel spreadsheet, (3) Other daily phone bills are sent through Medicare Expense Report printed by Medicare Expense on an AP voucher to be paid adjustments are department/ from Payroll (4) Fleet Management supports 3 posted after account Payroll System departments and generates approximately payroll run 100-150 work orders each month. Central Supply - Xerox, Postage, and Supplies Expenses (5) This report shows monthly receipts and Departments Postage, and expenses by departments. Any request for Manual log of copy Supply Expense adjustments are sent via hardcopy to the request supplies Postage machine requests by report sent bi-weekly Controllers office. via phone/fax and tracks postage by Supply and postage department (+10% they are tracked Department expenses per surcharge) via VAC system department are entered into VAC system
  16. 16. How Can you Improve your System and Related Processes? To be effective a system must address: HR • Process • Technology Systems • Best Practices TECHNOLOGY
  17. 17. How Can you Improve your System and Related Processes? To be effective a system must address: HR • Process • Technology Systems • Best Practices TECHNOLOGY
  18. 18. How Can you Improve your System and Related Processes? To be effective a system must address: HR • Process • Technology Systems • Best Practices TECHNOLOGY
  19. 19. Best Practices and System Functionality Knowledge How do you obtain knowledge of Best Practices and System Functionality? Best Practices System Functionality  Professional organizations  User manuals  Conferences  Vendors web site  Other companies  Books  Books  Consultants  Consultants
  20. 20. Understanding System Functionality System Functionality - What You Need to Know  You don’t need to become a technology expert – You don’t need to understand the nuts & bolts – You simply need to understand what it is capable of  You need to be able to speak intelligently with a systems expert – Is what your are asking for possible? – How long will it take to complete? – What will it cost? – Will it impact other users?
  21. 21. Key Steps when Sitting with a Process Owner -Question Every ActivityAlways Ask Why Don’t Assume End-to-End Processes Understand the Need for all Inputs and Outputs
  22. 22. Key Steps when Sitting with a Process Owner -Question Every Activity Always Ask Why  What is the activity trying to accomplish? End-to-End Processes  Is it is necessary  Does it add value?  Question why  Always ask and then continue to ask  Why a process or procedure is being performed?  Why isn’t the system performing it?  Why an output is needed?
  23. 23. Key Steps when Sitting with a Process Owner -Question Every Activity Don’t Assume  Don’t assume anything End-to-End Processes  Ask “dumb” questions  Politely challenge  Validate what you have been told  Compare it to the data or paper trail and/or documentation  Check with other process owners / departments  Check with other staff performing the same or similar tasks
  24. 24. Key Steps when Sitting with a Process Owner -Question Every Activity Understand the Need for All Inputs and Outputs  Review all inputs and outputs End-to-End Processes  Question what the data is needed for  Determine it’s accuracy  Question what users or other departments do with the data  Ask the user what they would like in the ideal world  Question if the frequency is appropriate
  25. 25. Key Steps when Sitting with a Process Owner -Question Every Activity Question Every Activity End-to-End Processes  Identify the root cause of problems rather than the symptoms  Question whether the activity is necessary  Question if the frequency is appropriate  Determine if the activity could be accomplished in another fashion  Always question why a manual process is not being performed by the system
  26. 26. HR System Improvement Methodology Understand SystemFunctionality
  27. 27. HR System Improvement Methodology Understand SystemFunctionality Understand Best Practices
  28. 28. HR System Improvement Methodology Understand Conduct System ProcessFunctionality Reviews Understand Best Practices
  29. 29. HR System Improvement Methodology Understand Conduct System ProcessFunctionality Reviews Understand Best Identify Practices Opportunities
  30. 30. HR System Improvement Methodology Understand Conduct Quantify / System Process PrioritizeFunctionality Reviews Opportunities Calculate ROI Understand Best Identify Practices Opportunities
  31. 31. HR System Improvement Methodology Understand Conduct Quantify / System Process PrioritizeFunctionality Reviews Opportunities Calculate ROI Understand Develop Best Identify Future Practices Opportunities State
  32. 32. HR System Improvement Methodology Understand Conduct Quantify / Obtain System Process Prioritize Agreement /Functionality Reviews Opportunities Funding Calculate ROI Understand Develop Best Identify Future Practices Opportunities State
  33. 33. Improvements are Easier to Address then anImplementation The Time Required For Improvement Varies  Improvements can be accomplished within a day or can take months – Quick hits – System adjustments / Process realignment – Significant changes  Usually the system work can be performed by in-house staff or using contract labor Implement quick wins to gain credibility and traction.
  34. 34. Return on Investment - ROIA Positive ROI is Essential to Obtaining Project ApprovalClearly Articulate Benefits Quantify SavingsThe better you can articulate Quantify potential savings inbenefits and real dollar savings order to: Free up resourcesthe more support you will (e.g. process owners, IT staff)receive Gain executive buy-in and obtain funding ROIFocus on Savings JustificationFocus on savings, not cost At a minimum on a small project you want to justify the need for dedicated resources to focus on your project
  35. 35. Improvement Opportunities - What to Look For  Employees should utilize system self-service functionality whenever possible Self  Employees should take advantage of vendor provided self-service capabilities Service  Question why every piece of paper in a process is necessary Paper  Wherever possible replace paper with an electronic solution  Fully integrate all systemsIntegration  Require large volume vendors to provide electronic feeds
  36. 36. Improvement Opportunities - What to Look For  Obtain a through understanding of the process before developing training Training  Training should incorporate both process and technology  Training should be developed with the process owners skill sets in mind  Anyone that requires access to data should have the appropriate access  Ideally access should be provided electronically rather then on paperAccess to Data  Access to data should be timely  Reports should be developed with the user in mind  Review how process owners are using their reports Reporting  Identify user needs that are not being met by current reports  Reports for routine activities should include all required data on a single report
  37. 37. Improvement Opportunities - What to Look ForUser Manuals,  Develop user manuals, policies and procedures that cover the entire process Policies & rather then a “How to use the software” solution Procedures  Ideally all data should be fed to the system electronically Data  Manually input data should never be keyed more then once Input  Eliminate manual forms by requiring staff to complete electronic forms via the web or directly into the system using self-service functionality
  38. 38. I Challenge You to Try This!! You’ll be Amazed at What You Find!  Set aside five to ten hours over the course of a week or two – Select a simple process area – Sit with the process owners and review the process in detail – Review the system documentation to understand the systems functionality – Identify best practices
  39. 39. Free White PaperUnlock the Hidden Value in yourHR SystemsWhat You Should Know Tom Sonde, Principal (973) 722-9304 tsonde@silverroad.net SilverRoad.net
  40. 40. Thank you for your attention! Any Questions?Tom Sonde, Principal(973) 722-9304tsonde@silverroad.netSilverRoad.net
  41. 41. Tom Sonde BiographyTom SondeTom is a principal with Silver Road Solutions, a management consulting firm specializing inhelping HR organizations be more productive. He began performing process improvementwork while at The Dun & Bradstreet Corporation. He subsequently worked at KPMGConsulting and was VP Global Business Transformation at Misys where he redesigned theirglobal HR processes during an SAP implementation.Tom has extensive experience in helping organizations get more from their HR systems. Hehas written several articles on this topic including: Finding the Hidden Values in HR Systems,which appeared in Human Resources Executive magazine.For additional information regarding improving your HR system please visit SilverRoad.netTom Sonde, Principal(973) 722-9304tsonde@silverroad.netSilverRoad.net Copyright © 2012 SilverRoad Solutions.

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