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Why Doesn't Your HR System Work Properly?    Tom Sonde - Silver Road Solutions
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Why Doesn't Your HR System Work Properly? Tom Sonde - Silver Road Solutions

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Many organizations fail to get the most out of their HR systems. While the system may work its clear there is significant room for improvement. Most blame the software however in many cases the …

Many organizations fail to get the most out of their HR systems. While the system may work its clear there is significant room for improvement. Most blame the software however in many cases the problem is the result of a combination of a flawed implementation and organizational changes that occurred after the implementation.

The reality is the software you already own has functionality that is not being used, is being misused and/or is not appropriately married to your processes. This presentation will discuss why your inefficiencies exist and what can be done to resolve them.


Learning Objectives
• How can you get more from your HR system?
• How can you improve both your system and related processes?
• How do you marry process, technology and best practices?
• What are the key areas to focus on?

Published in Business , Technology
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  • 1. Why Doesnt Your HR SystemWork Properly?The HR West ConferenceOakland Convention CenterApril 22, 2013Presented by Tom Sonde
  • 2. 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 andrekeying Backlogs existWhy Isn’t the System Delivering on it’s Promises?
  • 3. Is this Occurring in your Organization? There is an excessive use of spreadsheets Senior management information requests result inconstant fire drills Information is not easily accessible Time consuming system workarounds External databases / data warehouses supplement thesystemDoes senior management even realizehow many of the inefficiencies exist?Why Isn’t the System Delivering on it’s Promises?
  • 4. “The System Can’t do That”There is a Gap Between what the SoftwareDevelopers Intended and what you End Up With“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 changesand I have more important things to do”- or - “I don’t have a clue if it’s possible”
  • 5. Unlock the Hidden ValueUnlock the Value Residing in your System Unlock the hidden value hidden– Without creating the upheaval of animplementation– Without bringing in an army of consultants– Without spending significant dollars Achieve a positive Return on Investment
  • 6. System Not DeliveringMany system issues are not the result of the software.Why isn’t your System Working the way it’sSupposed to?
  • 7. System Not DeliveringMany system issues are not the result of the software.They were caused by a flawed implementation.Why isn’t your System Working the way it’sSupposed to?
  • 8. Implementing new technology does not guaranteeefficiencyTeachercompletesrequisition form orfills out pre-printedlist for itemsneededSchool clerkenters data intosystem fromrequisitionPrincipal or Dept.Head approvesand signsrequisitionAfter data isentered,requisition will befunneled into thefollowingNon site-based budgetpurchases goes to anapprover initiallyBased on the typeof purchase,requisition isrouted to one ofthe following:(1)Finance Dept. (2)Site-based budget purchasesgo directly to FinanceCustodial - PlantOperationsExceptionalChildren DivisionAppliedTechnologyCareerDevelopmentLibrary ServicesChief AcademicOfficer-TextbooksTeaching &Learning Assmt.InterscholasticSupplementalFunds-Budget &Management (3)Type 1Purchasing Dept/Senior buyersreceivespurchases in"requisition proof"Senior buyersreview requisitionproof, checks forerrors (4)Other purchasesare routed to abuyer - based onassignmentBuyer receivesbuyers copyBuyer requestsquotes/bids fromvendors (fax, mail,or phone) Requestfor Quotation formRequisition proofis generated frominformationentered intosystemIf no errors foundon requisition proofIf errorsare foundPurchase order isgenerated from therequisition proofthe next daySenior buyers willcorrect errors andanother proof isgeneratedPurchases ordersprinted atSouthside locationand delivered toAdmin Bldg.Senior buyersseparate POs (5copies)Orange copy kepton file atpurchasing officeWhite PO copyrouted back tooriginal buyerBlue copy sent toControllers OfficeBrown/yellow copysent to school(brown copy isreceivers report)Buyer signs anddates PO; sendsto vendor by mailor faxVendor receivesPO and shipsorder to schoolVendor sendsinvoice to FinanceDept.Type 2Finance Dept.matches invoice toreceivers reportSystem generatespayment whenboth invoice andreceivers reportare entered intosystemSchool confirmspurchase bysending receiversreport to FinanceDept. (5)Type AType BPurchases from a contractcompany or pre-printed listPurchases not from a contractcompany or pre-printed listregardless of priceTeachercompletesrequisition form orfills out pre-printedlist for itemsneededSchool clerkenters data intosystem fromrequisitionPrincipal or Dept.Head approvesand signsrequisitionAfter data isentered,requisition will befunneled into thefollowingNon site-based budgetpurchases goes to anapprover initiallyBased on the typeof purchase,requisition isrouted to one ofthe following:(1)Finance Dept. (2)Site-based budget purchasesgo directly to FinanceCustodial - PlantOperationsExceptionalChildren DivisionAppliedTechnologyCareerDevelopmentLibrary ServicesChief AcademicOfficer-TextbooksTeaching &Learning Assmt.InterscholasticSupplementalFunds-Budget &Management (3)Type 1Purchasing Dept/Senior buyersreceivespurchases in"requisition proof"Senior buyersreview requisitionproof, checks forerrors (4)Other purchasesare routed to abuyer - based onassignmentBuyer receivesbuyers copyBuyer requestsquotes/bids fromvendors (fax, mail,or phone) Requestfor Quotation formRequisition proofis generated frominformationentered intosystemIf no errors foundon requisition proofIf errorsare foundPurchase order isgenerated from therequisition proofthe next daySenior buyers willcorrect errors andanother proof isgeneratedPurchases ordersprinted atSouthside locationand delivered toAdmin Bldg.Senior buyersseparate POs (5copies)Orange copy kepton file atpurchasing officeWhite PO copyrouted back tooriginal buyerBlue copy sent toControllers OfficeBrown/yellow copysent to school(brown copy isreceivers report)Buyer signs anddates PO; sendsto vendor by mailor faxVendor receivesPO and shipsorder to schoolVendor sendsinvoice to FinanceDept.Type 2Finance Dept.matches invoice toreceivers reportSystem generatespayment whenboth invoice andreceivers reportare entered intosystemSchool confirmspurchase bysending receiversreport to FinanceDept. (5)Type AType BPurchases from a contractcompany or pre-printed listPurchases not from a contractcompany or pre-printed listregardless of priceTeachercompletesrequisition form orfills out pre-printedlist for itemsneededSchool clerkenters data intosystem fromrequisitionPrincipal or Dept.Head approvesand signsrequisitionAfter data isentered,requisition will befunneled into thefollowingNon site-based budgetpurchases goes to anapprover initiallyBased on the typeof purchase,requisition isrouted to one ofthe following:(1)Finance Dept. (2)Site-based budget purchasesgo directly to FinanceCustodial - PlantOperationsExceptionalChildren DivisionAppliedTechnologyCareerDevelopmentLibrary ServicesChief AcademicOfficer-TextbooksTeaching &Learning Assmt.InterscholasticSupplementalFunds-Budget &Management (3)Type 1Purchasing Dept/Senior buyersreceivespurchases in"requisition proof"Senior buyersreview requisitionproof, checks forerrors (4)Other purchasesare routed to abuyer - based onassignmentBuyer receivesbuyers copyBuyer requestsquotes/bids fromvendors (fax, mail,or phone) Requestfor Quotation formRequisition proofis generated frominformationentered intosystemIf no errors foundon requisition proofIf errorsare foundPurchase order isgenerated from therequisition proofthe next daySenior buyers willcorrect errors andanother proof isgeneratedPurchases ordersprinted atSouthside locationand delivered toAdmin Bldg.Senior buyersseparate POs (5copies)Orange copy kepton file atpurchasing officeWhite PO copyrouted back tooriginal buyerBlue copy sent toControllers OfficeBrown/yellow copysent to school(brown copy isreceivers report)Buyer signs anddates PO; sendsto vendor by mailor faxVendor receivesPO and shipsorder to schoolVendor sendsinvoice to FinanceDept.Type 2Finance Dept.matches invoice toreceivers reportSystem generatespayment whenboth invoice andreceivers reportare entered intosystemSchool confirmspurchase bysending receiversreport to FinanceDept. (5)Type AType BPurchases from a contractcompany or pre-printed listPurchases not from a contractcompany or pre-printed listregardless of priceTeachercompletesrequisition form orfills out pre-printedlist for itemsneededSchool clerkenters data intosystem fromrequisitionPrincipal or Dept.Head approvesand signsrequisitionAfter data isentered,requisition will befunneled into thefollowingNon site-based budgetpurchases goes to anapprover initiallyBased on the typeof purchase,requisition isrouted to one ofthe following:(1)Finance Dept. (2)Site-based budget purchasesgo directly to FinanceCustodial - PlantOperationsExceptionalChildren DivisionAppliedTechnologyCareerDevelopmentLibrary ServicesChief AcademicOfficer-TextbooksTeaching &Learning Assmt.InterscholasticSupplementalFunds-Budget &Management (3)Type 1Purchasing Dept/Senior buyersreceivespurchases in"requisition proof"Senior buyersreview requisitionproof, checks forerrors (4)Other purchasesare routed to abuyer - based onassignmentBuyer receivesbuyers copyBuyer requestsquotes/bids fromvendors (fax, mail,or phone) Requestfor Quotation formRequisition proofis generated frominformationentered intosystemIf no errors foundon requisition proofIf errorsare foundPurchase order isgenerated from therequisition proofthe next daySenior buyers willcorrect errors andanother proof isgeneratedPurchases ordersprinted atSouthside locationand delivered toAdmin Bldg.Senior buyersseparate POs (5copies)Orange copy kepton file atpurchasing officeWhite PO copyrouted back tooriginal buyerBlue copy sent toControllers OfficeBrown/yellow copysent to school(brown copy isreceivers report)Buyer signs anddates PO; sendsto vendor by mailor faxVendor receivesPO and shipsorder to schoolVendor sendsinvoice to FinanceDept.Type 2Finance Dept.matches invoice toreceivers reportSystem generatespayment whenboth invoice andreceivers reportare entered intosystemSchool confirmspurchase bysending receiversreport to FinanceDept. (5)Type AType BPurchases from a contractcompany or pre-printed listPurchases not from a contractcompany or pre-printed listregardless of priceNew TechnologyInefficientOld ProcessNewTechnologyInefficientNew Process
  • 9. Successfull Implementations Address both Process andBest Practices in addition to the TechnologyThe Foundation of a Successful System Includes Process and Best PracticesProcessTechnologyBestPractices
  • 10. Who’s to Blame?Why Doesn’t your System Perform as Promised?Project Implementation TeamProcess OwnersTrainingConsultantsOther12345
  • 11. Why Doesn’t your System Perform as Promised?ProjectTeamProcessOwnersTraining Team not adequately represented by process owners Project team didn’t have a true understanding of the underlying processes 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 owners had limited experience with large IT projects The end-to-end process was not adequately addressed during the system design Inadequate training was provided Training was technology focused and excluded process issues Training manuals and related documentation were inadequate
  • 12. Why Doesn’t your System Perform as Promised?ConsultantsOtherCommonIssues Consultants understood technology, not your business 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 Not enough resources were available The wrong resources were involved Resources were diverted to unexpected issues There was an aggressive “go-live” date Issues were addressed by postponing them - “It will be addressed during thenext phase or upgrade”
  • 13. Improvements are can be Achieved Across yourOrganizationHuman ResouresPayrollProcessesTime &AttendenceTrainingBenefitsAdministrationRecruitingTalentManagementSucessionPlanningCompensationProcesses
  • 14. TECHNOLOGYTo be effectivea system mustaddress:• Process• Technology• Best PracticesTECHNOLOGYHow Can you Improve your System and Related Processes?HRSystems
  • 15. Addressing the End-to-End Processes is theKey to SuccessSalary andBenefitExpenseavailable fortransfer VACsystemGreen Bar Reportprinted fromSpecials DatabasePostage, andSupply Expensereport sent bi-weeklyThe data from thesereports are manuallyentered into anExcel spreadsheet,Excel Spreadsheetsare turned into a textfile then transferredinto the VACDisbursement System VAC System isupdatedMOD BudgetReport used toprepare MQ(1)(1) Report shows MTD and YTD Expenses,Encumbered-unpaid expenses, $ FreeBalance, and % Free Balance. This report isused to create MQ.(2) Report shows General FundsDepartments, account #, recommendedbudget, current appropriations, YTDexpenses, and YTD % budget used.Attachment also includes Outside GeneralFunds with all categories plus estimatedrevenue, YTD revenue received, and YTD% collected. Report generated byControllers office and given to JohnMurphy (12th Floor room 1243) forreview. The report is reviewed with theCFO by the staff and Controller.(3) Other daily phone bills are sent throughon an AP voucher to be paid(4) Fleet Management supports 3departments and generates approximately100-150 work orders each month.(5) This report shows monthly receipts andexpenses by departments. Any request foradjustments are sent via hardcopy to theControllers office.General FundQuarterlySummary Report(2)Medicare Expensefrom PayrollTelephone bills arereceived from Nynexl,Nextel, Sprint, Archwireless, and Ameritech(3)Total for eachdepartment isentered on ExcelSpreadsheets.One sheet percompanyEach departmentreceives anitemized list ofcharges to theirdepartmentAny disputes arereported to theTelecommunications dept. and a creditis granted.Telecommunications - PhoneExpenseFleet Management - Gas and MaintenanceExpensesWork Orders aregenerated as work isdone in FleetManagement(4)At month end,work orders aresummarized bydepartment andentered into ExcelPrinted report issent to eachdepartment andControllers officeOne copy is sent tothe department, theother is used torecord expense/billingAP andDisbursementtransactionsRisk Management - Life, Health, Dental ExpensesPayroll - Salary and Benefits ExpensesCentral Supply - Xerox, Postage, and Supplies ExpensesSpreadsheetis sent toControllersofficeHealth EnrollmentDatabase with allemployee health,life and dental dataReport of allenrollment is sentto departments forupdate/correctionChanges are inputon ExcelSpreadsheetwhich calculateschargebacksDepartmentsreturn hard copiesto RiskManagement forchangesJohn Murphy usesreport to recordexpenses and transferfunds betweendepartmentsPayroll SystemSpecialsAccountmaintainsmileageDepartmentsreceive blankreport listingDepartmentcompletes mileageand totaldepartmentreimbursementReport is returnedby 9th of month toPayrollPayroll inputsmileage, systemcalculatesreimbursement.Payroll - Mileage ExpensePayroll - Medicare ExpensePayroll SystemMedicare Expenseadjustments areposted afterpayroll runReport printed bydepartment/accountDepartmentsendsspreadsheetsto the Controller netof anyadjustmentsRollOver MonthlyReport sent todepartments(5)Manual log of copyrequests bydepartment (+10%surcharge)Departmentsrequest suppliesvia phone/fax andthey are trackedvia VAC systemPostage machinetracks postage byDepartmentSupply and postageexpenses perdepartment are enteredinto VAC system
  • 16. TECHNOLOGYTo be effectivea system mustaddress:• Process• Technology• Best PracticesTECHNOLOGYHow Can you Improve your System and Related Processes?HRSystems
  • 17. TECHNOLOGYTo be effectivea system mustaddress:• Process• Technology• Best PracticesTECHNOLOGYHow Can you Improve your System and Related Processes?HRSystems
  • 18. TECHNOLOGYTo be effectivea system mustaddress:• Process• Technology• Best PracticesTECHNOLOGYHow Can you Improve your System and Related Processes?HRSystems
  • 19. Best Practices Professional organizations Conferences Other companies Books ConsultantsSystem FunctionalityBest Practices and System Functionality KnowledgeHow do you obtain knowledge of Best Practices andSystem Functionality? User manuals Vendors web site Books Consultants
  • 20. 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 systemsexpert– Is what your are asking for possible?– How long will it take to complete?– What will it cost?– Will it impact other users?Understanding System Functionality
  • 21. Don’t AssumeAlways Ask WhyEnd-to-EndProcessesUnderstand the Needfor all Inputs andOutputsKey Steps when Sitting with a Process Owner -Question Every Activity
  • 22. Always Ask Why What is the activity trying to accomplish? Is it is necessary Does it add value? Question why Always ask and then continue to ask Why a process or procedure is beingperformed? Why isn’t the system performing it? Why an output is needed?End-to-EndProcessesKey Steps when Sitting with a Process Owner -Question Every Activity
  • 23. Don’t Assume Don’t assume anything Ask “dumb” questions Politely challenge Validate what you have been told Compare it to the data or paper trail and/ordocumentation Check with other process owners /departments Check with other staff performing thesame or similar tasksKey Steps when Sitting with a Process Owner -Question Every ActivityEnd-to-EndProcesses
  • 24. Understand the Need for All Inputs and Outputs Review all inputs and outputs Question what the data is needed for Determine it’s accuracy Question what users or other departmentsdo with the data Ask the user what they would like in theideal world Question if the frequency is appropriateKey Steps when Sitting with a Process Owner -Question Every ActivityEnd-to-EndProcesses
  • 25. Question Every Activity Identify the root cause of problems rather thanthe symptoms Question whether the activity is necessary Question if the frequency is appropriate Determine if the activity could beaccomplished in another fashion Always question why a manual process is notbeing performed by the systemKey Steps when Sitting with a Process Owner -Question Every ActivityEnd-to-EndProcesses
  • 26. UnderstandSystemFunctionalityHR System Improvement Methodology
  • 27. UnderstandBestPracticesUnderstandSystemFunctionalityHR System Improvement Methodology
  • 28. UnderstandBestPracticesUnderstandSystemFunctionalityConductProcessReviewsHR System Improvement Methodology
  • 29. UnderstandBestPracticesIdentifyOpportunitiesUnderstandSystemFunctionalityConductProcessReviewsHR System Improvement Methodology
  • 30. UnderstandBestPracticesIdentifyOpportunitiesUnderstandSystemFunctionalityConductProcessReviewsHR System Improvement MethodologyQuantify /PrioritizeOpportunitiesCalculate ROI
  • 31. UnderstandBestPracticesIdentifyOpportunitiesDevelopFutureStateUnderstandSystemFunctionalityConductProcessReviewsHR System Improvement MethodologyQuantify /PrioritizeOpportunitiesCalculate ROI
  • 32. UnderstandBestPracticesIdentifyOpportunitiesUnderstandSystemFunctionalityConductProcessReviewsObtainAgreement /FundingHR System Improvement MethodologyQuantify /PrioritizeOpportunitiesCalculate ROIDevelopFutureState
  • 33. The Time Required For Improvement Varies Improvements can be accomplished within a day or cantake months– Quick hits– System adjustments / Process realignment– Significant changes Usually the system work can be performed by in-housestaff or using contract laborImplement quick wins to gain credibility and traction.Improvements are Easier to Address then anImplementation
  • 34. JustificationAt a minimum on a small projectyou want to justify the need fordedicated resources to focus onyour projectClearly Articulate BenefitsThe better you can articulatebenefits and real dollar savingsthe more support you willreceiveQuantify SavingsQuantify potential savings inorder to: Free up resources(e.g. process owners, IT staff)Gain executive buy-in andobtain fundingFocus on SavingsFocus on savings, not costReturn on Investment - ROIA Positive ROI is Essential to Obtaining Project ApprovalROI
  • 35. SelfServicePaperIntegration Employees should utilize system self-service functionality whenever possible Employees should take advantage of vendor provided self-service capabilities Question why every piece of paper in a process is necessary Wherever possible replace paper with an electronic solution Fully integrate all systems Require large volume vendors to provide electronic feedsImprovement Opportunities - What to Look For
  • 36. TrainingAccess to DataReporting Obtain a through understanding of the process before developing 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 paper Access to data should be timely Reports should be developed with the user in mind Review how process owners are using their reports Identify user needs that are not being met by current reports Reports for routine activities should include all required data on a single reportImprovement Opportunities - What to Look For
  • 37. User Manuals,Policies &ProceduresDataInput Develop user manuals, policies and procedures that cover the entire processrather then a “How to use the software” solution Ideally all data should be fed to the system electronically Manually input data should never be keyed more then once Eliminate manual forms by requiring staff to complete electronic forms via theweb or directly into the system using self-service functionalityImprovement Opportunities - What to Look For
  • 38. You’ll be Amazed at What You Find! Set aside five to ten hours over the course of a week ortwo– Select a simple process area– Sit with the process owners and review the process in detail– Review the system documentation to understand thesystems functionality– Identify best practicesI Challenge You to Try This!!
  • 39. Free White PaperUnlock the Hidden Value in yourHR SystemsWhat You Should KnowTom Sonde, Principal(973) 722-9304tsonde@silverroad.netSilverRoad.net
  • 40. Thank you foryour attention!Any Questions?Tom Sonde, Principal(973) 722-9304tsonde@silverroad.netSilverRoad.net
  • 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.netCopyright © 2013 SilverRoad Solutions.