best practices, tips and pointers for conducting an hr systems implementation silverroad solutions...

Best Practices, Tips & Pointers

for Conducting an

HR System Implementation

Tom Sonde

May 23, 2013

www.silverroad.net

Introduction: Tips & Pointers for Conducting an

HR System Implementation

Human Resoures

Payroll

Pro

cess

es

Time & Attendence

Trai

nin

g

Benefits Administration

Recruiting Talent

Management

Sucession Planning

Co

mp

ensa

tio

n

Modules

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

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

Successfull Implementations Address Process,

Technology and Best Practices

The Foundation of a Successful System Includes Process and Best Practices

Pro

cess

Tech

no

logy

Be

st P

ract

ice

s

TEC

HN

OLO

GY

To be effective an implementation should address: • Process • Technology • Best Practices

TEC

HN

OLO

GY

Successful Implementations Address More than the

Software

HR System

TEC

HN

OLO

GY

TEC

HN

OLO

GY

HR System



Software

TEC

HN

OLO

GY


Software

HR System


TEC

HN

OLO

GY

TEC

HN

OLO

GY


Software

HR Systems


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

systemSchool 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


regardless of price

Teacher

completes

requisition form or


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



approver initially

Based on the type

of purchase,

requisition is

routed to one of

the following:(1)

Finance Dept. (2)



Custodial - Plant

Operations

Exceptional

Children Division

Applied

Technology

Career

Development

Library Services

Chief Academic

Officer-Textbooks

Teaching &

Learning Assmt.

Interscholastic

Supplemental

Funds-Budget &


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


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


purchase by

sending receivers

report to Finance

Dept. (5)

Type A

Type B





regardless of price

Teacher

completes

requisition form or


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



approver initially

Based on the type

of purchase,

requisition is

routed to one of

the following:(1)

Finance Dept. (2)



Custodial - Plant

Operations

Exceptional

Children Division

Applied

Technology

Career

Development

Library Services

Chief Academic

Officer-Textbooks

Teaching &

Learning Assmt.

Interscholastic

Supplemental

Funds-Budget &


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


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


purchase by

sending receivers

report to Finance

Dept. (5)

Type A

Type B





regardless of price

Teacher

completes

requisition form or


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



approver initially

Based on the type

of purchase,

requisition is

routed to one of

the following:(1)

Finance Dept. (2)



Custodial - Plant

Operations

Exceptional

Children Division

Applied

Technology

Career

Development

Library Services

Chief Academic

Officer-Textbooks

Teaching &

Learning Assmt.

Interscholastic

Supplemental

Funds-Budget &


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


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


purchase by

sending receivers

report to Finance

Dept. (5)

Type A

Type B





regardless of price

New Technology

Inefficient Old Process

New Technology

Inefficient New Process

Document Requirements Obtain 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

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

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


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



approver initially

Based on the type

of purchase,

requisition is

routed to one of

the following:(1)

Finance Dept. (2)



Custodial - Plant

Operations

Exceptional

Children Division

Applied

Technology

Career

Development

Library Services

Chief Academic

Officer-Textbooks

Teaching &

Learning Assmt.

Interscholastic

Supplemental

Funds-Budget &


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


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


purchase by

sending receivers

report to Finance

Dept. (5)

Type A

Type B





regardless of price

Teacher

completes

requisition form or


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



approver initially

Based on the type

of purchase,

requisition is

routed to one of

the following:(1)

Finance Dept. (2)



Custodial - Plant

Operations

Exceptional

Children Division

Applied

Technology

Career

Development

Library Services

Chief Academic

Officer-Textbooks

Teaching &

Learning Assmt.

Interscholastic

Supplemental

Funds-Budget &


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


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


purchase by

sending receivers

report to Finance

Dept. (5)

Type A

Type B





regardless of price

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

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

Your Logo

Configuration and Process Design Decisions

Payroll Process (High Level View) - Pre Software Interface

PS

Pro

ject

Opera

tions-

ISO

pera

tions-

Data

Entr

yP

ayro

llH

RF

ield

Budget

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

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

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

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

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

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

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

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

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

Potential Threat

It is important to Understand why People are Resistant to Change

Fear of the Unknown

Potential Threat


Fear of the Unknown

Potential Threat

Threat of Obsolescence


Fear of the Unknown

Loss of

Kingdom / Status

Potential Threat



Fear of the Unknown

Loss of

Kingdom / Status

Potential Threat


Fear of Something

New


Fear of the Unknown

Loss of

Kingdom / Status

Potential Threat


Fear of Something

New

Change May

Uncover Hidden Issues


Fear of the Unknown

Loss of

Kingdom / Status

Potential Threat


Fear of Something

New

Changes May Result

in Additional Workload

Change May

Uncover Hidden Issues


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

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

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

Tips & Pointers for Conducting

Process Improvements Projects

At HR.com

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

[email protected]

SilverRoad.net

For Additional Information:

Thank you for

your attention!

Any Questions?


(973) 722-9304

[email protected]

SilverRoad.net

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


(973) 722-9304

[email protected]

SilverRoad.net

Copyright © 2013 SilverRoad Solutions.