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Best Practices, Tips and Pointers for Conducting an HR Systems Implementation SilverRoad Solutions - Tom Sonde
- 1. Best Practices, Tips & Pointers for Conducting an HR System Implementation Tom Sonde May 23, 2013 www.silverroad.net
- 2. Introduction: Tips & Pointers for Conducting an HR System Implementation Human Resoures Payroll Processes Time & Attendence Training Benefits Administration Recruiting Talent Management Sucession Planning Compensation Modules
- 3. It’s Not Always the Software Providers Fault Many system issues are not the result of the software. More than 70% of Organizations are Not Happy with their HR System
- 4. 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. More than 70% of Organizations are Not Happy with their HR System
- 5. Successfull Implementations Address Process, Technology and Best Practices The Foundation of a Successful System Includes Process and Best Practices Process Technology BestPractices
- 6. TECHNOLOGY To be effective an implementation should address: • Process • Technology • Best Practices TECHNOLOGY Successful Implementations Address More than the Software HR System
- 7. TECHNOLOGYTECHNOLOGY HR System To be effective an implementation should address: • Process • Technology • Best Practices Successful Implementations Address More than the Software
- 8. TECHNOLOGY Successful Implementations Address More than the Software HR System To be effective an implementation should address: • Process • Technology • Best Practices
- 9. TECHNOLOGYTECHNOLOGY Successful Implementations Address More than the Software HR Systems To be effective an implementation should address: • Process • Technology • Best Practices
- 10. Implementing New Technology Does Not Guarantee Efficiency Teacher completes requisition form or fills out pre-printed list for items needed School clerk enters data into system from requisition Principal or Dept. Head approves and signs requisition After data is entered, requisition will be funneled into the following Non site-based budget purchases goes to an approver initially Based on the type of purchase, requisition is routed to one of the following:(1) Finance Dept. (2) Site-based budget purchases go directly to Finance Custodial - Plant Operations Exceptional Children Division Applied Technology Career Development Library Services Chief Academic Officer-Textbooks Teaching & Learning Assmt. Interscholastic Supplemental Funds-Budget & Management (3) Type 1 Purchasing Dept/ Senior buyers receives purchases in "requisition proof" Senior buyers review requisition proof, checks for errors (4) Other purchases are routed to a buyer - based on assignment Buyer receives buyer's copy Buyer requests quotes/bids from vendors (fax, mail, or phone) Request for Quotation form Requisition proof is generated from information entered into system If no errors found on requisition proof If errors are found Purchase order is generated from the requisition proof the next day Senior buyers will correct errors and another proof is generated Purchases orders printed at Southside location and delivered to Admin Bldg. Senior buyers separate POs (5 copies) Orange copy kept on file at purchasing office White PO copy routed back to original buyer Blue copy sent to Controllers Office Brown/yellow copy sent to school (brown copy is receivers report) Buyer signs and dates PO; sends to vendor by mail or fax Vendor receives PO and ships order to school Vendor sends invoice to Finance Dept. Type 2 Finance Dept. matches invoice to receiver's report System generates payment when both invoice and receiver's report are entered into system School confirms purchase by sending receivers report to Finance Dept. (5) Type A Type B Purchases from a contract company or pre-printed list Purchases not from a contract company or pre-printed list regardless of price Teacher completes requisition form or fills out pre-printed list for items needed School clerk enters data into system from requisition Principal or Dept. Head approves and signs requisition After data is entered, requisition will be funneled into the following Non site-based budget purchases goes to an approver initially Based on the type of purchase, requisition is routed to one of the following:(1) Finance Dept. (2) Site-based budget purchases go directly to Finance Custodial - Plant Operations Exceptional Children Division Applied Technology Career Development Library Services Chief Academic Officer-Textbooks Teaching & Learning Assmt. Interscholastic Supplemental Funds-Budget & Management (3) Type 1 Purchasing Dept/ Senior buyers receives purchases in "requisition proof" Senior buyers review requisition proof, checks for errors (4) Other purchases are routed to a buyer - based on assignment Buyer receives buyer's copy Buyer requests quotes/bids from vendors (fax, mail, or phone) Request for Quotation form Requisition proof is generated from information entered into system If no errors found on requisition proof If errors are found Purchase order is generated from the requisition proof the next day Senior buyers will correct errors and another proof is generated Purchases orders printed at Southside location and delivered to Admin Bldg. Senior buyers separate POs (5 copies) Orange copy kept on file at purchasing office White PO copy routed back to original buyer Blue copy sent to Controllers Office Brown/yellow copy sent to school (brown copy is receivers report) Buyer signs and dates PO; sends to vendor by mail or fax Vendor receives PO and ships order to school Vendor sends invoice to Finance Dept. Type 2 Finance Dept. matches invoice to receiver's report System generates payment when both invoice and receiver's report are entered into system School confirms purchase by sending receivers report to Finance Dept. (5) Type A Type B Purchases from a contract company or pre-printed list Purchases not from a contract company or pre-printed list regardless of price Teacher completes requisition form or fills out pre-printed list for items needed School clerk enters data into system from requisition Principal or Dept. Head approves and signs requisition After data is entered, requisition will be funneled into the following Non site-based budget purchases goes to an approver initially Based on the type of purchase, requisition is routed to one of the following:(1) Finance Dept. (2) Site-based budget purchases go directly to Finance Custodial - Plant Operations Exceptional Children Division Applied Technology Career Development Library Services Chief Academic Officer-Textbooks Teaching & Learning Assmt. Interscholastic Supplemental Funds-Budget & Management (3) Type 1 Purchasing Dept/ Senior buyers receives purchases in "requisition proof" Senior buyers review requisition proof, checks for errors (4) Other purchases are routed to a buyer - based on assignment Buyer receives buyer's copy Buyer requests quotes/bids from vendors (fax, mail, or phone) Request for Quotation form Requisition proof is generated from information entered into system If no errors found on requisition proof If errors are found Purchase order is generated from the requisition proof the next day Senior buyers will correct errors and another proof is generated Purchases orders printed at Southside location and delivered to Admin Bldg. Senior buyers separate POs (5 copies) Orange copy kept on file at purchasing office White PO copy routed back to original buyer Blue copy sent to Controllers Office Brown/yellow copy sent to school (brown copy is receivers report) Buyer signs and dates PO; sends to vendor by mail or fax Vendor receives PO and ships order to school Vendor sends invoice to Finance Dept. Type 2 Finance Dept. matches invoice to receiver's report System generates payment when both invoice and receiver's report are entered into system School confirms purchase by sending receivers report to Finance Dept. (5) Type A Type B Purchases from a contract company or pre-printed list Purchases not from a contract company or pre-printed list regardless of price Teacher completes requisition form or fills out pre-printed list for items needed School clerk enters data into system from requisition Principal or Dept. Head approves and signs requisition After data is entered, requisition will be funneled into the following Non site-based budget purchases goes to an approver initially Based on the type of purchase, requisition is routed to one of the following:(1) Finance Dept. (2) Site-based budget purchases go directly to Finance Custodial - Plant Operations Exceptional Children Division Applied Technology Career Development Library Services Chief Academic Officer-Textbooks Teaching & Learning Assmt. Interscholastic Supplemental Funds-Budget & Management (3) Type 1 Purchasing Dept/ Senior buyers receives purchases in "requisition proof" Senior buyers review requisition proof, checks for errors (4) Other purchases are routed to a buyer - based on assignment Buyer receives buyer's copy Buyer requests quotes/bids from vendors (fax, mail, or phone) Request for Quotation form Requisition proof is generated from information entered into system If no errors found on requisition proof If errors are found Purchase order is generated from the requisition proof the next day Senior buyers will correct errors and another proof is generated Purchases orders printed at Southside location and delivered to Admin Bldg. Senior buyers separate POs (5 copies) Orange copy kept on file at purchasing office White PO copy routed back to original buyer Blue copy sent to Controllers Office Brown/yellow copy sent to school (brown copy is receivers report) Buyer signs and dates PO; sends to vendor by mail or fax Vendor receives PO and ships order to school Vendor sends invoice to Finance Dept. Type 2 Finance Dept. matches invoice to receiver's report System generates payment when both invoice and receiver's report are entered into system School confirms purchase by sending receivers report to Finance Dept. (5) Type A Type B Purchases from a contract company or pre-printed list Purchases not from a contract company or pre-printed list regardless of price New Technology Inefficient Old Process New Technology Inefficient New Process
- 11. Document RequirementsObtain an Understanding of the End-to-End Processes End-to-End Processes Understand the Need for all Inputs and Outputs To Leverage your New System you must Understand your End-to-End Processes
- 12. Addressing End-to-End Processes is One of the Keys to Success Salary and Benefit Expense available for transfer VAC system Green Bar Report printed from Specials Database Postage, and Supply Expense report sent bi-weekly The data from these reports are manually entered into an Excel spreadsheet, Excel Spreadsheets are turned into a text file then transferred into the VAC Disbursement System VAC System is updated MOD Budget Report used to prepare MQ (1) (1) Report shows MTD and YTD Expenses, Encumbered-unpaid expenses, $ Free Balance, and % Free Balance. This report is used to create MQ. (2) Report shows General Funds Departments, account #, recommended budget, current appropriations, YTD expenses, and YTD % budget used. Attachment also includes Outside General Funds with all categories plus estimated revenue, YTD revenue received, and YTD % collected. Report generated by Controllers office and given to John Murphy (12th Floor room 1243) for review. The report is reviewed with the CFO by the staff and Controller. (3) Other daily phone bills are sent through on an AP voucher to be paid (4) Fleet Management supports 3 departments and generates approximately 100-150 work orders each month. (5) This report shows monthly receipts and expenses by departments. Any request for adjustments are sent via hardcopy to the Controllers office. General Fund Quarterly Summary Report (2) Medicare Expense from Payroll Telephone bills are received from Nynexl, Nextel, Sprint, Arch wireless, and Ameritech (3) Total for each department is entered on Excel Spreadsheets. One sheet per company Each department receives an itemized list of charges to their department Any disputes are reported to the Telecommunication s dept. and a credit is granted. Telecommunications - Phone Expense Fleet Management - Gas and Maintenance Expenses Work Orders are generated as work is done in Fleet Management (4) At month end, work orders are summarized by department and entered into Excel Printed report is sent to each department and Controllers office One copy is sent to the department, the other is used to record expense/ billing AP and Disbursement transactions Risk Management - Life, Health, Dental Expenses Payroll - Salary and Benefits Expenses Central Supply - Xerox, Postage, and Supplies Expenses Spreadsheet is sent to Controllers office Health Enrollment Database with all employee health, life and dental data Report of all enrollment is sent to departments for update/correction Changes are input on Excel Spreadsheet which calculates chargebacks Departments return hard copies to Risk Management for changes John Murphy uses report to record expenses and transfer funds between departments Payroll System Specials Account maintains mileage Departments receive blank report listing Department completes mileage and total department reimbursement Report is returned by 9th of month to Payroll Payroll inputs mileage, system calculates reimbursement. Payroll - Mileage Expense Payroll - Medicare Expense Payroll System Medicare Expense adjustments are posted after payroll run Report printed by department/ account Department sends spreadsheets to the Controller net of any adjustments RollOver Monthly Report sent to departments (5) Manual log of copy requests by department (+10% surcharge) Departments request supplies via phone/fax and they are tracked via VAC system Postage machine tracks postage by Department Supply and postage expenses per department are entered into VAC system
- 13. Automation Opportunities Paper Manual forms Manual processes Shadow or one-off processes Excel spreadsheets Shadow systems (e.g. data warehouse) Reviews and approvals Time intensive processes Manual keying of data Duplicate keying of data Non system generated reports Integration Having an Understanding of the End-to-End Processes Increases Automation Opportunities Teacher completes requisition form or fills out pre-printed list for items needed School clerk enters data into system from requisition Principal or Dept. Head approves and signs requisition After data is entered, requisition will be funneled into the following Non site-based budget purchases goes to an approver initially Based on the type of purchase, requisition is routed to one of the following:(1) Finance Dept. (2) Site-based budget purchases go directly to Finance Custodial - Plant Operations Exceptional Children Division Applied Technology Career Development Library Services Chief Academic Officer-Textbooks Teaching & Learning Assmt. Interscholastic Supplemental Funds-Budget & Management (3) Type 1 Purchasing Dept/ Senior buyers receives purchases in "requisition proof" Senior buyers review requisition proof, checks for errors (4) Other purchases are routed to a buyer - based on assignment Buyer receives buyer's copy Buyer requests quotes/bids from vendors (fax, mail, or phone) Request for Quotation form Requisition proof is generated from information entered into system If no errors found on requisition proof If errors are found Purchase order is generated from the requisition proof the next day Senior buyers will correct errors and another proof is generated Purchases orders printed at Southside location and delivered to Admin Bldg. Senior buyers separate POs (5 copies) Orange copy kept on file at purchasing office White PO copy routed back to original buyer Blue copy sent to Controllers Office Brown/yellow copy sent to school (brown copy is receivers report) Buyer signs and dates PO; sends to vendor by mail or fax Vendor receives PO and ships order to school Vendor sends invoice to Finance Dept. Type 2 Finance Dept. matches invoice to receiver's report System generates payment when both invoice and receiver's report are entered into system School confirms purchase by sending receivers report to Finance Dept. (5) Type A Type B Purchases from a contract company or pre-printed list Purchases not from a contract company or pre-printed list regardless of price Teacher completes requisition form or fills out pre-printed list for items needed School clerk enters data into system from requisition Principal or Dept. Head approves and signs requisition After data is entered, requisition will be funneled into the following Non site-based budget purchases goes to an approver initially Based on the type of purchase, requisition is routed to one of the following:(1) Finance Dept. (2) Site-based budget purchases go directly to Finance Custodial - Plant Operations Exceptional Children Division Applied Technology Career Development Library Services Chief Academic Officer-Textbooks Teaching & Learning Assmt. Interscholastic Supplemental Funds-Budget & Management (3) Type 1 Purchasing Dept/ Senior buyers receives purchases in "requisition proof" Senior buyers review requisition proof, checks for errors (4) Other purchases are routed to a buyer - based on assignment Buyer receives buyer's copy Buyer requests quotes/bids from vendors (fax, mail, or phone) Request for Quotation form Requisition proof is generated from information entered into system If no errors found on requisition proof If errors are found Purchase order is generated from the requisition proof the next day Senior buyers will correct errors and another proof is generated Purchases orders printed at Southside location and delivered to Admin Bldg. Senior buyers separate POs (5 copies) Orange copy kept on file at purchasing office White PO copy routed back to original buyer Blue copy sent to Controllers Office Brown/yellow copy sent to school (brown copy is receivers report) Buyer signs and dates PO; sends to vendor by mail or fax Vendor receives PO and ships order to school Vendor sends invoice to Finance Dept. Type 2 Finance Dept. matches invoice to receiver's report System generates payment when both invoice and receiver's report are entered into system School confirms purchase by sending receivers report to Finance Dept. (5) Type A Type B Purchases from a contract company or pre-printed list Purchases not from a contract company or pre-printed list regardless of price
- 14. Best Practices Books Professional organizations Conferences Other companies Consultants System Functionality Best Practices and System Functionality Knowledge How do you obtain knowledge of Best Practices and System Functionality? Software Provider User manuals Vendor web site Books Consultants
- 15. Understanding System Functionality - What You Need to 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. Your Logo Configuration and Process Design Decisions Payroll Process (High Level View) - Pre Software Interface PSProjectOperations-IS Operations- DataEntry PayrollHRFieldBudget Prepare Supp Time Reports & Overtime Reports Review and approve Review and correct Supp Time Reports and OT Reports Input Supp Time Reports & OT Reports Prepare T&L Reports Review and correct T&L Reports Input T&L reports Run Pay & Time files into PS Provide Account Codes as needed Prepare Payroll Notification Forms to process adjustments Create Paysheets Update Paysheets Produce checks, advices & DD file for bank, and print reports Run final calc and confirm Distribute checks and advices Reconcile payroll System / Process Design • Educate process owners to avoid making design decisions based upon the current system • Design sessions should include representation from end-to-end process owners • Ask process owners what they would like “in the perfect world” • Built-in system best practices are not enough, best practices should be applied to all processes • 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
- 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. A Properly Staffed Project Team is the Foundation for Success Full-Time Project Manager Representing HR Indespensable HR Staff Process Improvement Expert Communications Lead Subject Matter Experts from each Functional Area IT Staff / Consultants / Software Vendor
- 19. A Properly Staffed and Trained Project Team is the Foundation for Success Project Team Project Team • Core team members should be dedicated to the project full time • Hold part time staff members accountable for obligations to participate • Reassign / backfill employees with 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. Project Status Meetings Should be Scheduled in Advance 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. Inadequate Training often Hurts an Otherwise Successful 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. While it is Best Not to Customize any Software you Should Apply a Common Sense Approach No Customizations Adapt processes to the software Customize Addres a mandatory business requirement Software Customizations
- 23. Many Implementations Fail to Leverage their Systems Capabilities 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. Change Management Politics • Understand the political landscape • Use politics to your advantage Quick Wins • Fix the easy things first • Gain traction Resources • Make sure the proper resources are on the team and that there is an adequate budget with realistic timelines Communicate • Communicate positive results • Communicate as appropriate – Remember the who, what, where, when and why • Communicate regularly Understanding Project Dynamics Build Alliances • Win over adversaries • Make IT part of the team • Get Finance involved
- 25. Potential Threat It is important to Understand why People are Resistant to Change
- 26. Fear of the Unknown Potential Threat It is important to Understand why People are Resistant to Change
- 27. Fear of the Unknown Potential Threat Threat of Obsolescence It is important to Understand why People are Resistant to Change
- 28. Fear of the Unknown Loss of Kingdom / Status Potential Threat Threat of Obsolescence It is important to Understand why People are Resistant to Change
- 29. Fear of the Unknown Loss of Kingdom / Status Potential Threat Threat of Obsolescence Fear of Something New It is important to Understand why People are Resistant to Change
- 30. Fear of the Unknown Loss of Kingdom / Status Potential Threat Threat of Obsolescence Fear of Something New Change May Uncover Hidden Issues It is important to Understand why People are Resistant to Change
- 31. Fear of the Unknown Loss of Kingdom / Status Potential Threat Threat of Obsolescence Fear of Something New Changes May Result in Additional Workload Change May Uncover Hidden Issues It is important to Understand why People are Resistant to Change
- 32. Executive Sponsorship Support Provides funding, appropriate resources and opens doors when necessary Values Sets the tone, communicates the importance of the project to the organization Leadership Provides direction, advice and credibility Stick Provides the appropriate leverage when necessary Carrot Provides rewards and incentives for success Executive Sponsorship Plays a Key Role
- 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. Justification At a minimum on a small project you want to justify the need for dedicated resources to focus on your project Clearly Articulate Benefits The better you can articulate benefits and real dollar savings the more support you will receive Quantify Savings Quantify potential savings in order to: Free up resources (e.g. process owners, IT staff) Gain executive buy-in and obtain funding Focus on Savings Focus on savings, not cost Return on Investment - ROI A Positive ROI is Essential to Obtaining Project Approval ROI
- 35. Tips & Pointers for Conducting Process Improvements Projects At HR.com For Additional Information:
- 36. 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 For Additional Information:
- 37. Thank you for your attention! Any Questions? Tom Sonde, Principal (973) 722-9304 tsonde@silverroad.net SilverRoad.net
- 38. Tom Sonde Biography Tom Sonde Tom is a principal with Silver Road Solutions, a management consulting firm specializing in helping HR organizations be more productive. He began performing process improvement work while at The Dun & Bradstreet Corporation. He subsequently worked at KPMG Consulting and was VP Global Business Transformation at Misys where he redesigned their global HR processes during an SAP implementation. Tom has extensive experience in helping organizations with their HR systems. He has written several articles on this topic including: Finding the Hidden Values in HR Systems, which appeared in Human Resources Executive magazine. For additional information please visit SilverRoad.net Tom Sonde, Principal (973) 722-9304 tsonde@silverroad.net SilverRoad.net Copyright © 2013 SilverRoad Solutions.