1. Situation Analysis Growth primarily through rapid acquisition Limited business integration strategy Limited technical strategy Several failed “ERP” implementations Losses: Financial, Time , Effort Limited confidence in potential success of future implementation Autonomous business operations at the campus and division level Limited standardization of business and operating processes and procedures impacting effectiveness of the company Disparate technical environment Multiple Student Systems in place (7) Lack of over arching architecture Lack of Integration strategy Data problems: Consistency, accuracy, availability, integration

2. Operational considerations & Requirements for Success

4. Common integrated information flow through the entire organization

5. When adopted the company can run more effectively, with more information and with greater speed

6. Lower total cost of ownership

7. Organizational alignment

8. Optimized business processes

9. Integrated financial information

10. Technology obsolescence

11. Total Cost of Ownership (TCO)

12. Organizational impact

13. Executive support, commitment, and participation

14. Organizational changes, both culture and operational

15. Short and long term associate commitments

16. Business process changes

17. Discipline to align business operations with a vanilla package and make process changes where needed.

19. Positioned at “IT project”

20. Business strategy that did not drive process re-design and deployment.

21. Poor assessment of the resources and time required. Poor project management

22. Poor and inconsistent data

23. Not "cleansed" prior to moving to the ERP system.

24. Cultural rejection of the new system.

25. Lack of understanding of organizational change and how to manage

26. Inadequate training

28. 55% have resulted in schedule and cost overruns of 178% and 230% respectively

29. Only 10% are completed successfully on budget and on-timeSource: Deloitte Consulting

30. Critical Success Factors Business needs identification Business goals and future organizational needs are often left unformulated or are unclear during planning Action: Create a dedicated cross-functional team to formulate needs up-front Company wide cultural changes Companies must be prepared to make concessions or changes in organizational culture, structure and operational processes Action: Must have executive commitment and discipline to force organizational and process changes. Business unit accountability Business units must be responsible for achieving benefits and managing costs Action: Enlist high level business executive to sponsor and drive the project forward. Tie success to business bonus and performance plans Changing perceptions Companies must often struggle to change perception of from a “shiny new piece of technology” to a new way of doing business

31. Critical Success Factors Garter Research 20 December 2001 ID Number: TG-15-1067

32. Understand ALL the costs Replacing your best and brightest The ERP implementation requires the best and brightest to be successful Be prepared to lose them after the transition to other opportunities Implementation teams can never stop Post-implementation activities keep the teams busy long after the live date Don’t anticipate them going back to their old jobs Waiting for ROI Teams must be prepared to keep going after the install date Returns come long after and require many process changes to take advantage of the ERP system Productivity Impact Recent Deloitte Consulting survey of 64 Fortune 500 Companies, one in four admitted that they suffered a drop in performance when their ERP systems went live Training Driven by new processes and not just new systems Always underestimated Integration and Testing E-commerce and other add-ons, external on all sides Should include the people that will actually operate the system Customization Should be avoided if at all possible Could affect every module Requires vendor support Data Conversion Companies often deny their data is dirty – ours is It costs money to move and clean data Data Analysis Data from the ERP system must be combined with other external systems

33. Adapting to a new ERP “Go-live” Productivity Benefits Implementation ERP “Shock” Discovery Selection Time

34. CCI Approach Align to critical success factors Executive management Support Business Sponsorship Business plan and vision Change management & culture Business process re-engineering (BPR) Acquire, educate and train (people) Vendor selection and support Project Team Dedicated resources

36. Leveraged functional framework to define high level needs

37. Structured Governance and project management methodology

38. Dedicated project resources: IT& business

39. Aligned to business

40. Company “BIG 5” strategic initiative. Tied to bonus and performance

41. Started with Business Process Reengineering

42. Aligned process to system capability. Limit customizations

44. Initial and “refresher”

45. Formal “organizational change” focus

46. Leadership training. “Change agents”

47. Formal communication plan

48. Limit software customizations

51. Business process development

52. Organizational change assessment

53. Data conversion development

54. Integration development

55. Field demonstrations

56. Training development

57. Testing

58. Data creation and purification

59. School deployment planningSAS Pilot Phased Rollouts by System and School starting in 2Q-07 Training Conversion Pilot Operations SAS Pilot Evaluation Contract Negotiation Online Pilot Training Conversion Pilot Operations Online Evaluation ResourcePlanning School Rollout School Rollout SMS Pilot School Rollout Training Conversion Pilot Operations SMS Pilot Evaluation School Rollout SPAR Pilot ImplementationPlanning Training Conversion Pilot Operations SPAR Pilot Evaluation DecisionGates*: Fund Phase 2 – Pilot Fund Phase 3 Fund Phase 1 – Design and Configuration * Phase Gate Criteria with be applied at each gate review

61. Go-live planning

62. Go-live

63. System confirmations

65. Rollout process review

66. President/Director orientation and preparation

67. Site Team Lead selection and preparation

69. Business

70. ApplicationCommunications and Logistics Enterprise Readiness and Implementation Management

72. Approve budgets

73. Promote process and systems standards and consistency

75. Review requirements

76. Resolve Core Team issues (if required)

77. Approve Core Team vendor selection recommendation

78. Resolve site and organizational readiness issues

80. Facilitate the Core and Extended Teams

81. Develop and implement communication plans

82. Develop vendor instructions and schedules

83. Maintain action item and issue logs

84. Characterize and escalate issues (if required)

85. Facilitate Executive Oversight Committee meetings

86. Develop the business case for the implementation

88. Ensure appropriate involvement with requirements development

89. Promote process and systems standards and consistency

90. Resolve cross-functional, cross-site issues

91. Eliminate organizational barriers (if required)

92. Select the preferred vendor

93. Confirm the business case for the implementation

95. Develop the short-list of vendors

96. Review the vendor offerings

97. Development toolkits / standards

98. Integration architectures

99. Data models

100. Check technical references

101. Define the design, develop and deployment approach

103. Define requirements

104. Identify unusual or unique requirements

105. Attend vendor product demonstrations

106. Identify functional gaps and issues

107. Develop plans to resolve known gaps and issues with the preferred solution

108. Check functional references

109. Establish process and systems standards

110. Identify the significant process and organizational changes required to enable the implementation of the preferred solutionIT Team

111. Working team structure Program Management Fredrik de Maré Greg McHugh Cathy Cisneros CCi Lead(s) CCi Lead(s) CCi Lead(s) CCi Lead(s) CCi Lead(s) CCi Lead(s) CCi Lead(s) CCi Lead(s) CCi Lead(s) CCi Lead(s) CCi Lead(s) CCi Lead(s) CCi Lead(s) CCi Lead(s) CCi Lead(s) CCi Lead(s) CCi Lead(s) CCi Lead(s) CCi Lead(s) CCi Lead(s) CCi Lead(s) CCi Lead(s) CCi Lead(s) CCi Lead(s) CCi Lead(s) Student System Core Team Marketing & Admissions Team Lead(s) Academics Team Lead(s) Support Ops & Training Team Lead(s) Career Svcs Team Lead(s) Finance & Accounting Team Lead(s) Reg. Compliance Team Lead(s) IT Team Lead(s) IT Team Training Team Conversion Teams Five Functional Teams Marketing and Admissions Academics Career Services Financial Aid, Finance and Accounting Regulatory Affairs Site Implementation Teams (One per site) (each with School President representation)

112. Core Team members represent both their divisions and respective functional areas 18

113. During the planning phase, significant work was done by the functional teams to enable common and consistent business processes and define system configuration A number of workshops were conducted with the functional teams to: 1 Define a common process framework around which to generate and organize business requirements 2 3 Identify and characterize process differences between divisions for each process area Analyze magnitude of change, and develop recommendations on how to address process differences

115. Roles

116. Sequence

117. ControlsScreen/Database Changes Interface Requirements User Requirements IssuesOwner All CCi divisions will be represented including Online

119. System CapabilitiesFinancial Aid, Finance & Acctg. Marketing and Admissions Career Services Academics Regulatory Other To-be process flows Business Design Workbooks Screen and report designs The designs are organized into Workbooks Process to screen flow diagrams Scenario storyboards Interface definition Technical Design Workbooks Data element mappings

120. Each site followed a standard conversion approach Site rollout steps and timing Prior to cutover Site readiness prognosis 3 ½ months prior Begin data conversion and purification 3 ½ months prior Organizational assessment 1 month prior Site readiness assessment 1 month prior Begin on-site and remote support 2 weeks prior Finalize any data correction 2 weeks prior Conduct training 1 week prior Cutover weekend of cutover Suspend use of legacy system Convert data Implement new system and organizational and job content changes Terminate on-site support 2 weeks post

121. Training and Organizational Change Standardized Training & OCM plans and processes were put in place to prepare and support campuses through the transition to UNIFY Roles & Responsibilities definition What does this mean to me? What’s in it for me? Divisional Kick-off meetings Recurring Demonstrations- “road show” Recurring Divisional and Campus teams meeting Scheduled pre and post implementation meetings Peer-to-Peer support groups Leadership Reports Training Senn- Delaney Change Workshop – “Embracing UNIFY” Monthly President’s meetings Monthly Newsletter Divisional Trainers Trained Systems and Process training Initial functional training Refresher training Monthly training clinics – topics vary Make-it-Stick processes/ Surveys & Scorecards System adoption and transition metrics

123. 5 source systems retired

124. Project within 10% variance of original budget

125. Project duration extended primarily due to delays in receiving software enhancements. Overall impact 6 months elapsed time.

126. Organization responding well to new system

127. Metrics and follow-up survey tracking favorable

128. System adoption is high

129. Keys to success

130. Project governance and team structures

131. Business Process reengineering

132. Business unit sponsorship & alignment

133. Not positioned as IT project. Tied to performance metrics

134. Organizational Change approach

135. Intensive, iterative training

136. Limited customization

138. Don’t underestimate how hard it is for people to change how they do their job

139. Waiting on important customizations is risky

140. Managing perceptions & communications

141. Need clear communication channel to report , track and resolve issues

142. Keeping business alignment over multi year project

143. Keeping resources engaged

144. Estimating the cost- and sticking to it