Mark Graham, Executive Director at Immedis, spoke at the 2017 Fall Forum. His presentation was focused around Creating a Business Case for Global Payroll

2. Mark Graham, EVP
Immedis, Inc
September 28, 2017
Creating a Business Case for Global Payroll

3. 1. What exactly is a business case?
2. Difference between a business case and a business plan
3. Why are we having this discussion?
4. Is Global Payroll Right for your organization
5. What does a good global managed payroll look like?
6. Why do you want a Global Payroll Solution?
7. Let’s start to build a business case
8. Barriers to getting support
9. Structure your business case
10. Present the case
Commercial in confidence

5. ● Provides decision support and serves as a planning tool to help
stakeholders and decision makers efficiently and effectively assess
the value of a business proposition in relation to the
organization’s strategic agenda
● It is NOT a business plan

6. Business Case Business Plan
Is tactical Is strategic
Addresses a single business issue Addresses the organizational or large
divisional financial objectives and
presents assumptions around revenue
and costs to achieve them
Assesses the effect of the options and
recommended action on attributes
specifically defined for the business issue
(e.g. cost, risk, resources, technology)
Usually associated with delivery against
Vision and Mission. Does not address
tactical elements of achieving business
objectives
Designed to sharpen organizational saw
to help meet business expectations
Sets business expectations within an
organization
Commercial in confidence

7. ● Evolution of the global payroll industry including outsource
options and technology development
● Lack of understanding of delivery options by management
● Transformation of role of global payroll program managers
● Cost
● Complexity of international payroll generally
Commercial in confidence

8. Complexities of International Payroll
Challenges
Different Countries,
Different Rules
Different
Employees
Employee
Expectations
Multiple
Providers
Tracking On Time
Delivery
Compensation
Packages

9. • How many countries does
your organization operate
in?
• Does your organization
operate centrally or
independently?
Commercial in confidence

10.  A cloud based payroll platform
 An Administrator Portal and Employee Portal
 A provider with a network of global offices
 A global payroll partner that does not act like a
mail-man
 Technology integration
 Reporting and Analytics
 One Service Level Agreement
Commercial in confidence

11. A cloud based
payroll platform
Commercial in confidence

12. An Administrator
and Employee
Portal
Commercial in confidence
Management Information
Dashboard

13. A provider with a
network of global
offices

14. A provider with
a network of
global offices

15. A global payroll partner
that does not act like a
mail-man

16. Technology
integration

18. A service-level agreement is defined as
an official commitment that prevails
between a service provider and a client
One Service Level Agreement
Commercial in confidence

19.  Cost savings
 Process improvements
 Operational Efficiencies
 Improved compliance and security
 More strategic use of internal
resources
 A Modern and easy to use
platform
 System integration
 Easy to access consolidated
reporting
 Analytics
 Dedicated implementations teams
 A scalable solution
 Accurate, on time and automatic
payments
 Local legislation updates
 Data protection compliance
(GDPR)
Determine the
outcome you
want
Commercial in confidence

20. Examples:
 Growing number of payroll employees
 Global error rates high
 Manual processing
 Little visibility to global data
 Data is not credible
 Lack of “fit for purpose” technology
 Multiple contracts and vendors
 Inability to scale
 Compliance concerns
 The unknown unknowns
 High cost function
Determine your drivers
Commercial in confidence

21. • Monthly payment
• Service costs /
license
• Error costs
• Manual work (time)
• Non compliance
fines
• Staff
• Management Time
• Report generating
• Support
• Inability to scale
• No integration with
HRIS and Finance
• Time spent dealing
with employee
queries
Reviewing how you
currently process payroll
Commercial in confidence

22. ● Involve your stakeholders. Ownership in
the project is more likely if they feel
their point of view has been heard and
included – Allow them to think it is their
idea!
● Lean on vendors for data concerning
costs and times to implement
● Talk to peers to learn about their
experiences with building business cases
for change projects
Don’t do this alone
Commercial in confidence

23. High cost function
Determine your costs:Determine your
drivers
Commercial in confidence
Cost Calculator
Staff
IT Support
Management time
Software
Licences
Equipment
Overhead
Vendor management
Hidden Labour
Manual tasks
Non compliance fines
Generating reports
Dealing with staff queries

25. Sector Payroll Administration to Staff Ratios
Banking 2,400
Private Retail 1,700
Local Authority Target Operating Model 1,125
Government 1,035
Finance Shared Service Centre 500
Non-Finance Shared Service Centre 330
Civil Service 220

26. Outcome – what I want
Example:
Determine the best global payroll operating structure for
your organization so that:
 Expectations of the function as defined by management are
met
 Costs are reduced
 Risks are mitigated
 Service is improved
 Operating model is leading edge
 Operating model is flexible enough to withstand growth/
organizational change
Subject, Drivers,
Outcomes
Commercial in confidence

27. ◦ Executive sponsor
◦ Regional
Managers
◦ Shared services
head
◦ Payroll
◦ Finance
◦ Tax
◦ Compliance (Data
Privacy, for
example)
◦ Human Resources
◦ Technology

28. ● Create consistent base case to be used to analyze each scenario.
For example
◦ Headcount/function costs
◦ Error rates
◦ Technology licenses
◦ Vendor costs
● Determine analysis time period
◦ “we will compare existing environment to alternatives over 10 years beginning 1/1/20XX”
Commercial in confidence

29. ● Identify major assumptions
◦ “Employee population will be XXXXX by 20XX and will be
spread across the following countries”
◦ Avg payroll FTE costs $XX,XXX per year
◦ “License costs will increase x% in 20XX”
● Explain where you are getting alternative scenario data and
how you are confirming credibility
● Define what the boundaries of the study are (e.g. what you
are NOT including)
Commercial in confidence

30. 1. “Aligns with business strategy”
2. “Adopts a leading business practice”
3. “Simplifies the global payroll operation”
4. “Allows for standardized reporting”
5. “Reduces operating costs by xx%”
6. “Reduces error costs by at least
“$XXX,XXX”
7. “Improves compliance”
8. “Improves customer experience by
xx%”
9. “Creates scale and is flexible enough to
address projected future changes”
Commercial in confidence

31. Now that you have:
 Decided that global payroll is right for your
organization
 Understood what a good global managed payroll looks
like
 Determined the drivers behind the business case
 Identified the stakeholders and project team
 Developed the business case
 Understood the barriers to getting support

32. ● Upfront costs
● Natural response to change is
resistance
● Project resources
● Other priorities

33. Commercial in confidence

34. ● You have completed and presented the
business case.
● All your hard work has paid off and you
have been given approval to proceed
with a global payroll solution.
● The next step is a lot easier. You know
from your business case exactly what
you want from a vendor – The RFP/RFI
will write itself….

36. Mark Graham
Executive Director
Immedis
Mark.Graham@Immedis.com
+353 87 7385489
www.Immedis.com