What you Need to Know             Before Implementing a                New HR SystemTom Sondewww.silverroad.net
Introduction: Tips & Pointers for Conducting anHR System Implementation                    Human Resoures                M...
More than 70% of Organizations are Not Happywith their HR System            It’s Not Always the Software Providers Fault  ...
More than 70% of Organizations are Not Happywith their HR System            It’s Not Always the Software Providers Fault  ...
Successfull Implementations Address Process,Technology and Best Practices                                                 ...
Successful Implementations Address More than theSoftwareTo be effective animplementationshould address:          HR• Proce...
Successful Implementations Address More than theSoftwareTo be effective animplementationshould address:          HR• Proce...
Successful Implementations Address More than theSoftwareTo be effective animplementationshould address:          HR• Proce...
Successful Implementations Address More than theSoftwareTo be effective animplementationshould address:          HR• Proce...
Implementing New Technology Does Not GuaranteeEfficiency        Teacher                                                   ...
To Leverage your New System you must Understand yourEnd-to-End ProcessesObtain an Understanding                Document Re...
Addressing End-to-End Processes is One of theKeys to Success                                                              ...
Having an Understanding of the End-to-EndProcesses Increases Automation Opportunities                                     ...
Best Practices and System Functionality Knowledge                  How do you obtain knowledge of              Best Practi...
Understanding System Functionality - What You Needto Know                                System Functionality             ...
Configuration and Process Design Decisions           System / Process Design • Educate process owners to avoid making     ...
Project Planning Tips            Project Planning • Build contingenies into the project plan   (both financial and time) •...
A Properly Staffed Project Team is the Foundation forSuccess                        Subject Matter Experts                ...
A Properly Staffed and Trained Project Team is theFoundation for Success                                         Project T...
Project Status Meetings Should be Scheduled inAdvance for the Duration of the Project                                     ...
Inadequate Training often Hurts an OtherwiseSuccessful Implementation                              • Budget an ample amoun...
While it is Best Not to Customize any Software youShould Apply a Common Sense Approach
Many Implementations Fail to Leverage their SystemsCapabilities when it comes to Reporting                         Reporti...
Understanding Project Dynamics                                                                           Communicate  Poli...
It is important to Understand why People areResistant to Change Potential  Threat
It is important to Understand why People areResistant to Change Potential  Threat         Fear of the          Unknown
It is important to Understand why People areResistant to Change Potential              Threat of  Threat               Obs...
It is important to Understand why People areResistant to Change Potential              Threat of  Threat               Obs...
It is important to Understand why People areResistant to Change Potential              Threat of                   Fear of...
It is important to Understand why People areResistant to Change Potential              Threat of                   Fear of...
It is important to Understand why People areResistant to Change Potential                                          Fear of...
Executive Sponsorship Plays a Key RoleSupport                                              LeadershipProvides funding,    ...
Establish Metrics to Measure the Success (or Failure)of the Implementation                                           Metri...
Return on Investment - ROIA Positive ROI is Essential to Obtaining Project ApprovalClearly Articulate Benefits            ...
For Additional Information:      Free Whitepapers:      Unlock the Hidden Value in your HR System      What You Should Kno...
Thank you for             your attention!             Any Questions?Tom Sonde, Principal(973) 722-9304tsonde@silverroad.ne...
Tom Sonde BiographyTom SondeTom is a principal with Silver Road Solutions, a management consulting firm specializing inhel...
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What You Need to Know Before Implementing a New HR System 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.

What You Will Learn:
Why system implementations fail, who is to blame and how to avoid them.
What are the key areas to focus on and how to address them.
How to marry process with technology and apply best practices.
How to take advantage of delivered system functionality

Published in: Technology
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What You Need to Know Before Implementing a New HR System Tom Sonde SilverRoad Solutions

  1. 1. What you Need to Know Before Implementing a New HR SystemTom Sondewww.silverroad.net
  2. 2. Introduction: Tips & Pointers for Conducting anHR System Implementation Human Resoures Modules Benefits Payroll Administration Compensation Processes Training Talent Management Recruiting Time & Sucession Attendence Planning
  3. 3. More than 70% of Organizations are Not Happywith their HR System It’s Not Always the Software Providers Fault Many system issues are not the result of the software.
  4. 4. More than 70% of Organizations are Not Happywith their HR System It’s Not Always the Software Providers Fault Many system issues are not the result of the software. They were caused by a flawed implementation.
  5. 5. Successfull Implementations Address Process,Technology and Best Practices Best Practices Technology Process The Foundation of a Successful System Includes Process and Best Practices
  6. 6. Successful Implementations Address More than theSoftwareTo be effective animplementationshould address: HR• Process• Technology System• Best Practices TECHNOLOGY
  7. 7. Successful Implementations Address More than theSoftwareTo be effective animplementationshould address: HR• Process• Technology System• Best Practices TECHNOLOGY
  8. 8. Successful Implementations Address More than theSoftwareTo be effective animplementationshould address: HR• Process• Technology System• Best Practices TECHNOLOGY
  9. 9. Successful Implementations Address More than theSoftwareTo be effective animplementationshould address: HR• Process• Technology Systems• Best Practices TECHNOLOGY
  10. 10. 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
  11. 11. To Leverage your New System you must Understand yourEnd-to-End ProcessesObtain an Understanding Document Requirementsof the End-to-EndProcesses End-to-End Processes Understand the Need for all Inputs and Outputs
  12. 12. Addressing End-to-End Processes is One of theKeys 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
  13. 13. Having an Understanding of the End-to-EndProcesses Increases Automation Opportunities Automation Opportunities Teacher After data is Based on the type Custodial - Plant completes Principal or Dept. School clerk entered, Non site-based budget of purchase, Operations  requisition form or Head approves enters data into Paper requisition will be purchases goes to an requisition is fills out pre-printed and signs system from funneled into the approver initially routed to one of Exceptional list for items requisition requisition following the following:(1) Children Division needed Site-based budget purchases Applied go directly to Finance  Technology Manual forms Career Purchases from a contract Development Type A company or pre-printed list Finance Dept. (2) Library Services Purchases not from a contract  Type B company or pre-printed list Senior buyers review requisition proof, checks for regardless of price Purchasing Dept/ Senior buyers receives Chief Academic Officer-Textbooks Teaching & Manual processes purchases in errors (4) Type 2  "requisition proof" Learning Assmt. Other purchases are routed to a Buyer receives Buyer requests quotes/bids from Requisition proof is generated from Interscholastic Shadow or one-off processes vendors (fax, mail, information  buyer - based on buyers copy Supplemental or phone) Request entered into Excel spreadsheets assignment Funds-Budget & for Quotation form system Management (3) If errors Type 1 If no errors found are found on requisition proof Purchase order is generated from the requisition proof the next day Brown/yellow copy Senior buyers will correct errors and another proof is generated  Shadow systems (e.g. data warehouse) Finance Dept. sent to school Vendor receives matches invoice to (brown copy is PO and ships receivers report receivers report) order to school Purchases orders Buyer signs and printed at Senior buyers Blue copy sent to dates PO; sends  Southside location separate POs (5 Controllers Office to vendor by mail Reviews and approvals and delivered to copies) or fax Vendor sends Admin Bldg. System generates invoice to Finance payment when White PO copy Dept. routed back to both invoice and original buyer receivers report  are entered into Time intensive processes system Orange copy kept School confirms on file at purchase by purchasing office sending receivers report to Finance Dept. (5)  Manual keying of data  Duplicate keying of data  Non system generated reports  Integration
  14. 14. Best Practices and System Functionality Knowledge How do you obtain knowledge of Best Practices and System Functionality? Best Practices System Functionality  Books  Software Provider  Professional organizations  User manuals  Conferences  Vendor web site  Other companies  Books  Consultants  Consultants
  15. 15. Understanding System Functionality - What You Needto Know System Functionality  You don’t need to become a technology expert – You don’t need to understand the nuts & bolts behind the screens – You simply need to understand what it is capable of  You need to be able to speak intelligently with configuration staff
  16. 16. Configuration and Process Design Decisions System / Process Design • Educate process owners to avoid making Payroll Process (High Level View) - Pre Software Interface design decisions based upon the current system Budget Provide Account Codes as needed • Design sessions should include representation Prepare Supp Field Prepare T&L Time Reports & Reports Overtime Reports from end-to-end process owners Review and Prepare Payroll Notification Forms HR approve to process • Ask process owners what they would like “in the adjustments Review and Payroll Review and correct Supp Time Run final calc and Distribute checks Create Paysheets correct T&L Update Paysheets perfect world” Reports and OT confirm and advices Reports Reports Operations- Data Entry Input Supp Time • Built-in system best practices are not enough, Reports & OT Input T&L reports Reports Operations- IS Produce checks, Run Pay & Time advices & DD file best practices should be applied to all files into PS for bank, and print reports PS Project processes Reconcile payroll • Enlist executive management or the software vendor to help employees network with others that have successfully implemented your software • While cooperation is important process owners must also learn to push back when appropriate • Designate a senior HR staff member to make final system set-up and process design decisions, avoid decision by committee Your Logo
  17. 17. Project Planning Tips Project Planning • Build contingenies into the project plan (both financial and time) • Place budget responsibility with HR rather then IT • Have HR lead or co-lead the project • Begin cleaning employee/system data immediately • Avoid an aggressive go-live date • Stage the timing of module go-lives to reduce implementation risks • Obtain senior management support and have them communicate it early and often • Implement as much self-service functionality as possible
  18. 18. A Properly Staffed Project Team is the Foundation forSuccess Subject Matter Experts from each Functional Area Process Full-Time Project Improvement Manager Expert Representing HR Indespensable Communications HR Staff Lead IT Staff / Consultants / Software Vendor
  19. 19. A Properly Staffed and Trained Project Team is theFoundation for Success Project Team • Core team members should be dedicated to the project full time • Hold part time staff members accountable for obligations to Project participate • Reassign / backfill employees with Team supplemental staff • Create a seperate work area for the team • Conduct team training prior to beginning the project (team building, system functionailty, best practices) • Team members should think outside the box but within the softwares parameters • Make sure the consultants knowledge is transfered to the staff
  20. 20. Project Status Meetings Should be Scheduled inAdvance for the Duration of the Project Status Meetings • Project Team meetings should be held weekly • Steering Committee meetings should be held at least once a month • Every meeting should have an agenda prepared in advance
  21. 21. Inadequate Training often Hurts an OtherwiseSuccessful Implementation • Budget an ample amount of time for training • Obtain a thorough understanding of the end-to-end processes before developing training • Training should incorporate both process and technology, it should be more then screen shots of the new system • Training should be developed with the process owners skill sets in mind • Develop System Super-Users
  22. 22. While it is Best Not to Customize any Software youShould Apply a Common Sense Approach
  23. 23. Many Implementations Fail to Leverage their SystemsCapabilities when it comes to Reporting Reporting • Go beyond the “canned” reports provided by the vendor • Identify user needs that are not being met by current reporting • Idendity and automate manually prepared reports • Leverage the new/additional data now available in the system • Reports for routine activities should include all required data on a single report • Ideally access should be provided electronically rather than on paper • Anyone that requires access to data should have the appropriate access • Reporting should be timely • Train as many staff as possible on how to utilize the new systems reporting capabilities
  24. 24. Understanding Project Dynamics Communicate Politics • Communicate positive results • Understand the political • Communicate as landscape appropriate – Remember • Use politics to your the who, what, where, advantage when and why Change • Communicate regularly Management Build Alliances Quick Wins • Fix the easy things first • Win over adversaries • Gain traction • Make IT part of the team • Get Finance involved Resources • Make sure the proper resources are on the team and that there is an adequate budget with realistic timelines
  25. 25. It is important to Understand why People areResistant to Change Potential Threat
  26. 26. It is important to Understand why People areResistant to Change Potential Threat Fear of the Unknown
  27. 27. It is important to Understand why People areResistant to Change Potential Threat of Threat Obsolescence Fear of the Unknown
  28. 28. It is important to Understand why People areResistant to Change Potential Threat of Threat Obsolescence Fear of the Loss of Unknown Kingdom / Status
  29. 29. It is important to Understand why People areResistant to Change Potential Threat of Fear of Threat Obsolescence Something New Fear of the Loss of Unknown Kingdom / Status
  30. 30. It is important to Understand why People areResistant to Change Potential Threat of Fear of Threat Obsolescence Something New Fear of the Loss of Change May Unknown Kingdom / Uncover Status Hidden Issues
  31. 31. It is important to Understand why People areResistant to Change Potential Fear of Changes Threat of May Result Threat Obsolescence Something New in Additional Workload Fear of the Loss of Change May Unknown Kingdom / Uncover Status Hidden Issues
  32. 32. Executive Sponsorship Plays a Key RoleSupport LeadershipProvides funding, Provides direction, adviceappropriate resources and and credibilityopens doors whennecessary Executive SponsorshipValues StickSets the tone, Provides the appropriatecommunicates the leverage when necessaryimportance of the projectto the organization Carrot Provides rewards and incentives for success
  33. 33. Establish Metrics to Measure the Success (or Failure)of the Implementation Metrics • Identify the approproiate metrics you wish to measure (e.g. time to fill a position) • Establish a baseline prior to the implementation • Put a process in place to capture the metrics on an ongoing basis • Utilize the metrics to establish a continuous process improvement program
  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. For Additional Information: Free Whitepapers: Unlock the Hidden Value in your HR System What You Should Know - and - Helpful Hints for Improving the Productivity of HR Tom Sonde, Principal (973) 722-9304 tsonde@silverroad.net SilverRoad.net
  36. 36. Thank you for your attention! Any Questions?Tom Sonde, Principal(973) 722-9304tsonde@silverroad.netSilverRoad.net
  37. 37. 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 with their HR systems. He has writtenseveral articles on this topic including: Finding the Hidden Values in HR Systems, whichappeared in Human Resources Executive magazine.For additional information please visit SilverRoad.netTom Sonde, Principal(973) 722-9304tsonde@silverroad.netSilverRoad.net Copyright © 2012 SilverRoad Solutions.

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