1. SPENCER THOMAS GROUP
Aligning intelligence with business™
Global Payroll and OCM Integration for
Go-Live Success and Beyond
As the global economy continues to expand, many companies have grown international operations, resulting in new
performance demands and challenges to standardize processes and efficiencies. Historically, companies employed
decentralized models to pay global employees, but emerging factors such as foreign government taxes, expanding
environments and off-shoring/COEs have driven fresh, consolidated approaches. Enter the era of “global payroll
transformation,’ an emerging concept that describes not just the delivery of an effective global payroll system, but the
widespread acceptance and usage of that system to truly drive performance and consistency throughout the organization.
To achieve this, corporations are redefining the way they view and perform global payroll operations. In order to achieve
initial and, more importantly, sustained success, Organizational Change Management (OCM) strategies and methods must
be integrated into the delivery of global payroll solutions. A well-defined and executed OCM program prepares the
organization to accept, embrace and adopt what could be disruptive change across the enterprise.
Most organizations have learned that any significant change to their processes, such as the implementation of a new global
payroll system, require some level of focused change management for success. Baseline change management activities like
training and communication are still essential, but not sufficient to drive change at the scale and pace required today. In fact,
initiatives that require organizational change often fail to achieve sustained success due to a lack of continued support of
the new processes or behavior beyond “go-live”.
At STG, we advise our clients through effective management of alignment, awareness, training and adoption for all relevant
parties and stakeholders involved in the change. This extends beyond go-live, including areas of continued Leadership
Action Plans, ongoing metrics and executive dashboards.
Effects on the Organization
When considering OCM in the context of Global Payroll,
one must understand the effects to an organization as
it changes its international payroll processes.
Areas of concern can typically include:
Process changes
New payroll providers in-country
Adherence to local regulations
(e.g., requirements for signatures)
New roles & responsibilities for HR, Finance, Payroll
New governance models for payroll delivery
and vendor management
Timing and methods of payment may change
(monthly/bi-weekly, check,ACH)
Changes to underlying systems/platforms
By Bob Dell Isola, SVP, Global Services and
Chris Klein, SVP, Global Payroll, Spencer Thomas Group
Spencer-Thomas.com/OrganizationalChangeManagement Sales@Spencer-Thomas.com

2. A more specific example of the application of OCM in global payroll implementation occurs in Role Sorting.
As a company sets up a Global Payroll Center of Excellence (COE), the number of roles in any given COE is assessed and
each employee in the role is interviewed to determine what the work process looks like today. This entails breaking down
individual processes or steps into an estimate of time. The sensitive process of role sorting and information gathering must
be conducted in a manner that limits panic or attrition amongst employees.With the resulting data, trends can be identified
and assessed, such as processes that are taking up more time than others, where overlaps exist and when consolidation
can be employed. STG has found in this process that results are often consistent in locations around the globe, regardless
of the size of the country or COE.
The gathered data from role sorting can then be applied to make key determinations such as:
Who is employed or re-deployed?
Who is eliminated?
How are employees and roles optimally reorganized?
What payroll functions should be relocated to new locations?
Employing OCM in the strategic process helps minimize costly tactical errors when implementing a global payroll solution
and can help determine optimal operating models for new shared service centers. But OCM also plays a pivotal role in
preparing the organization for adoption of change. Change is disruptive to employees lives.An enhanced understanding at
the management level, coupled with effective communication with employees during and after the transition is key. Only
then can the organization prepare appropriate action plans, including effective levels of sensitivity, support and guidance.
STG’s Comprehensive Approach
STG’sOCMpracticeisbasedonyearsofexperiencesuccessfully
navigating our clients through the challenges of focused change
management. Our team is comprised of executive-level OCM
expertise and an experienced team of OCM professionals
who have built their careers delivering change management
services that help clients successfully address the key obstacles
to change. Our OCM services are designed to orchestrate
and make manageable a traditionally complex process,
and deliver sustained success with support of new processes
and behaviors leading up to and continuing beyond“go live.”
STG’s OCM services:
Align the organization to accept the change
Engage people through targeted communication
to ensure active participation in the change
Educate the workforce on the new technology,process,
or design to make them capable of the change
Sustain the desired behavior through ongoing
assessments and support
STG adeptly combines our OCM approach with our global
payroll expertise. We are an experienced third-party global
payroll advisor, providing worldwide client and vendor-side
payroll consulting services on time and within budget. The
STG difference is realized through our streamlined operating
costs,our nimble team of exceptionally talented STG-Sourced
consultants, and our deep knowledge of global markets. As
tireless client advocates dedicated to exceptional customer
service, our team of global payroll experts averages fifteen
years of experience in the global payroll market.Our strategic
and thorough partnership approach helps minimize costly
tactical errors and drives the delivery of a truly effective
global payroll system that:
Sets a strategic course
Assembles and harmonizes data
Adheres to best practices
Integrates and automates key processes
Protects your company from unnecessary audit fees
Optimizes your cost model
Enhances efficiency and sharing of resources
Streamlines enterprise-wide reporting for
decision makers
Increases employee satisfaction
Provides full knowledge transfer and user training
services for continued operations
Our deep HCM/global payroll, HR integration knowledge base
and OCM expertise stems from experience with more than 40
multinational companies in over 75 countries on six continents.
Learn More About Our Unique, Hands-On Approach
From organizational alignment to communication, education and program support, STG delivers a total integrated OCM
solution to achieve sustainable change. To learn more about how STG can help your organization with your change
initiatives, contact: Bob Dell Isola SVP, Global Services, STG. Phone: +1.603.767.1847 BobD@Spencer-Thomas.com