copyright, colin currie, 2004 cumrec which comes first; the process or the technology? may 17, 2004...

Copyright, Colin Currie, 2004

CUMRECCUMREC

Which Comes First; The Process or the Which Comes First; The Process or the Technology?Technology?

May 17, 2004May 17, 2004

For further For further information please information please contact:contact:Colin CurrieColin CurrieTel: 609-258-8193Tel: [email protected]@princeton.eduu

Copyright Colin Currie, 2004. This work is the Copyright Colin Currie, 2004. This work is the intellectual property of the author. Permission is intellectual property of the author. Permission is granted for this material to be shared for non-granted for this material to be shared for non-commercial, educational purposes, provided that this commercial, educational purposes, provided that this copyright statement appears on the reproduced copyright statement appears on the reproduced materials and notice is given that the copying is by materials and notice is given that the copying is by permission of the author. To disseminate otherwise or permission of the author. To disseminate otherwise or to republish requires written permission from the to republish requires written permission from the author. Thank you.author. Thank you.

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Agenda:• Premise• Policy, Process, Technology• From a Process Perspective• From a Technology Perspective• Questions


Premises:

1. The purpose of business processes is to support institutional policies.

2. Processes rely on the tools (people and technology) within the organization in order to work.


So Logically...The nature and capabilities of tools within an

organization are vitally important to designing business processes which will support that organization.

““The key to success is to first understand your limitations andThe key to success is to first understand your limitations andthen to work to the best of your ability within them.”then to work to the best of your ability within them.”

- Gordon D. Currie- Gordon D. Currie


The alternative gets ugly...

This amounts to “paving the cow path.” Instead, look for the This amounts to “paving the cow path.” Instead, look for the process that is consistent with the policy and inherent the process that is consistent with the policy and inherent the technology.technology.

The practice was to build technology around process. In the The practice was to build technology around process. In the current environment of packaged software and rapid advances in current environment of packaged software and rapid advances in software development this leads to issues with:software development this leads to issues with:

• flexibilityflexibility• supportsupport• upgradesupgrades

Historically, the philosophy has been that technology should not Historically, the philosophy has been that technology should not drive processes. Many organizations still work in this mode.drive processes. Many organizations still work in this mode.


Simply Stated...

Process and technology must work together seamlessly and effectively to support the policies of an organization.


Balance is everything...

Neglect part of the foundation and Neglect part of the foundation and the policy will falter.the policy will falter.

Neglect both and the policy will Neglect both and the policy will fail.fail.

Putting too much emphasis on Putting too much emphasis on process and technology relative to process and technology relative to the policy they support can be the policy they support can be excessively costly and inefficient.excessively costly and inefficient.


Bringing the Knowledge Home --Learn the Lessons of Lewis & Clark

• The United States purchases the Louisiana Territory from France;

• Jefferson asks Congress to fund an expedition into the new territory. This amounts to an enormous technological triumph for the new country;

• 1804 -- 1806 L&C forge a path from St. Louis to Oregon and back;

• Congress is rewarded not only with an understanding of the flora, fauna, and terrain west of the Missouri River, but also with and understanding of the opportunity it represented.


Go Exploring (Process Example)

• Evaluate and fully understand policies and their purpose: – Any implementation or reengineering effort should begin with

the Policy. Process and Technology follow. What do you need to do? What do you want to do?

– Reengineering studies usually start with a detailed mapping of current processes. Why? The point is the replace them anyway.

• Inventory your processes at a high level:– What do we do well?– What do we not do well?

• Once you’ve identified the keepers, map them:– Look for commonalities and themes.– The themes will define what works well for your culture and

your technical environment.


Go Exploring (Continued)

• The remaining processes are candidates for redesign;• Prioritize them in order of relevance to the operation;• Map the policies to the people who need them;• Determine the infrastructure the users have to work with;• Map logical process users to technologies that can help

them achieve their goals;• Create a business case with realistic expectations for

benefits to be realized, and if it’s worthwhile …• Get senior administration buy-in;• Implement.


Functional Hierarchy

Recruiting & SelectionInternal Sourcing External RecruitingCollege RecruitingEmployment Testing & EvaluationReference ChecksSelection, Offer, & AcceptanceApplicant Tracking for ComplianceOrientationPromotion & Transfer Procedures

Personnel AdministrationNew Hire/Rehire Employment VerificationStatus ChangesPersonal Data ChangesSeparations (Quit, Discharge, Leave)/ Exit ProcessingReturn-to-WorkEmployee PassesCompany PropertyPTA AdministrationTuition AssistanceTransitCheckAbsence Control

CompensationJob DescriptionsJob EvaluationsWage & Salary StructuresWage & Salary SurveysWage & Salary PlanningMerit Planning and AdministrationCompensation ChangesSpecial CompensationIncentive Compensation (Future)

Health & WelfareBenefit Plan DesignEligibility Tracking (Employment Status, Life Events, Return to Work)Enrollment (Open & Eligibility Change)LTDTermination/COBRA AdministrationBilling & DunningBenefits Inquiries/ CommunicationsBenefits StatementsCarrier/TPA Reconciliation and PaymentsReporting & Discrimination TestingInterfaces

Health ProgramsMedical Monitoring and ExaminationsSubstance Abuse MonitoringWellness ProgramsMedical ServicesIOD ReportingCompliance ReportingEmployee Assistance ProgramFitness for DutyDOT ComplianceNever Fit DeterminationsLight Duty/Medical RestrictionsOSHA Programs

Payroll AdministrationEmployee Payroll Data MaintenanceEarnings, Allowances and Lump Sum PaymentsSpecial PaysAdvance PaysDeductionsGarnishmentsAdjustmentsTemporary Employee ProcessingPay Inquiries/ Communications

Workforce Planning & Management

Workforce PlanningWorkforce BudgetingPosition ControlRequisitioningHeadcount Administration

Employee and Labor Relations

HR Policy Interpretation & GuidanceEmp CommunicationsEmployee CounselingJob Fitness DeterminationDisciplineGrievancesSeniority TrackingLayoff & Recall

Savings and Retirement Plans

457 AdminPre-Retirement PlanningRetiree InquiresRetirement Loans

Training and DevelopmentSuccession PlanningPerformance ManagementCareer Planning & DevelopmentTraining Needs AssessmentTrainee/Intern ProgramsCourse Development/ AcquisitionCourse EnrollmentClass Attendance & AssessmentCost TrackingCharge-Back ProceduresTraining & Education HistorySkills Inventory

TimekeepingDaily sign-InAbsence ReportingSick ReportingSTDNo Pay StatusVacation SchedulingLeave AccountingSpecial Pay TimeOvertime EqualizationProject TimekeepingWork Order TimekeepingPTA Accounting

EEO, AAP & Other Compliance

EEO, Vets-100, & Other Compliance AAP Development

Payroll ProcessingOvertime BalancingPay Calculations – Regular & Off CycleCheck Printing & DistributionDirect Deposit TransferReporting/ControlThird Party & Tax RemittancesYear-end ProcessingInterfacesWorkers Compensation PayrollNYSERS Processing

TimekeepingStaffing &

Workforce MgmtPersonnel

Administration Compensation Benefits PayrollTraining &

Development Medical


Historical Lesson on a Grand Scale...

• President Kennedy’s 1961 State of the Union address establishes a new policy; to land a person on the moon before the end of the decade.

““We choose to do these things We choose to do these things not because they are easy, but not because they are easy, but because the are haaaahd!”because the are haaaahd!”


NASA Defines Three Options...

• The BIG Ship (Bold);

• Space Station (Visionary);

• Special Purpose Ships (Practical).


Option One: The BIG Ship

Send one massive ship designed to fly from earth to the surface of the moon, and return to earth again.

Problem: Too massive and complex; beyond our technical capabilities even now.

Business Example: Multi $M multi-year ERP Business Example: Multi $M multi-year ERP implementations that are scrapped before they’re implementations that are scrapped before they’re completed.completed.


Option Two: Space StationEstablish a docking point in earth orbit. Fly from Establish a docking point in earth orbit. Fly from

earth to the docking station in a vehicle designed for earth to the docking station in a vehicle designed for that purpose. Then fly from the docking station to that purpose. Then fly from the docking station to the surface of the moon and back to the station in a the surface of the moon and back to the station in a vehicle designed for that purpose.vehicle designed for that purpose.

Problem: Although the best long-term solution, too time consuming to fit the policy. Even 40 years later, we hardly have a space station.

Business Example: An ERP solution that will include full Business Example: An ERP solution that will include full integration with all other systems within the organization integration with all other systems within the organization and that is fully self service and workflow enabled, but that and that is fully self service and workflow enabled, but that will take 10 years and $MM to implement.will take 10 years and $MM to implement.


Option Three: Special Purpose Ships

Send a combined package of a lunar Send a combined package of a lunar orbiter/reentry ship and lunar lander from orbiter/reentry ship and lunar lander from earth to lunar orbit. Descend to the lunar earth to lunar orbit. Descend to the lunar surface in the lander. Reconnect with the surface in the lander. Reconnect with the reentry ship in lunar orbit, discard the reentry ship in lunar orbit, discard the lander, and return to earth.lander, and return to earth.

Problem: Don’t use the number 13!

Business Example: An organization that leverages its Business Example: An organization that leverages its infrastructure and adds capability where necessary to achieve its infrastructure and adds capability where necessary to achieve its objectives.objectives.


Leveraging What’s There

Firewall

Middleware/Portal

Internet

Vendors

Suppliers

Applicants

Internal Systems

Intranet Faculty

StaffHR

Finance

Student

Learning

Students


System Selection Process (Technology Example)

1. Functional office identifies need for a new system.2. Functional office meets with appropriate OIT Director, Managers and

staff to discuss functional requirements. A selection team is created.3. Working together, the functional/technical selection team identifies

potential solutions.4. The team produces a Request for Information (RFI). In this document,

the functional office asks potential vendors how they can address required functionality, and OIT asks questions about the application’s basic technical characteristics. This RFI is distributed to the potential vendors.

5. Vendor responses are reviewed and assessed by the team. In the case of open source, OIT or the originator of the software will provide the response.

6. The team prepares scoring sheets for the on-site presentations.


System Selection (Continued)

7. Those vendors that make the initial cut are invited to present their products to the team on-site at Princeton. These presentations are rated.

8. The functional office identifies their preferred choice and indicates their desire to pursue the purchase and implementation of the product.

9. In-depth investigation of the vendor:A. OIT works with vendor to gain an in-depth understanding of the technical

characteristics of the product to ensure its fit within our environment and to verify vendor claims related to expected implementation effort.

B. Functional office performs due-diligence on the vendor to verify their viability as a business. Details of the Statement of Work are negotiated.

10. Team presents their recommendation to PMT.11. Team presents their recommendation to ASPG.12. Proposal made to SAGIT.13. Contract negotiated and signed.


A Few Key Points:• Adjust: The organizations that benefit the most from

technology are those that adjust their business processes to the functionality delivered in their systems.

• Avoid Customization: It’s far easier to adjust processes once in order to advantage built-in system functionality and accommodate technology restrictions than to customize technology and maintain those customizations indefinitely.

• Work Within Your Capabilities: Processes must be responsive to the nature of the available technology taking advantage of its strengths while not overtaxing. Processes should fit seamlessly with technology to form an effective solution for carrying out the policies of the organization.


The Goal:

• Clean, effective processes that are logically related to the supporting system and efficient for the policy they support;

• Effective use of technology which takes advantage of the capabilities of the system without exceeding its capabilities;

• Successfully executed business policies.

EVERYONEEVERYONE benefits. benefits.


Thank you!Thank you!

copyright, colin currie, 2004 cumrec which comes first; the process or the technology? may 17, 2004...

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