improve hr system capabilities silverroad solutions

Utilize Process Improvement Methodologies

to Improve your HR System Capabilities

GSC SHRM Conference

Oct 24, 2011

Tom Sonde

Is this Occurring in your Organization?

Simple tasks take too long to complete

Too much time is spend validating data

Employees constantly complain

Too much paper is being used

There is a significant amount of manual data keying and

rekeying

Backlogs exist

Why Isn’t the System Delivering on it’s Promises?

Is this Occurring in your Organization?

There is an excessive use of spreadsheets

Senior management information requests result in

constant fire drills

Information is not easily accessible

Time consuming system workarounds

External databases / data warehouses supplement the

system

Does senior management even realize

how many of the inefficiencies exist?

Why Isn’t the System Delivering on it’s Promises?

“The System Can’t do That”

There is a Gap Between what the Software Developers Intended and what you End Up With

“The system can’t do that” may mean:

The software does not offer that functionality

- or -

“It can, but it would require some effort to make the changes

and I have more important things to do”

- or -

“I don’t have a clue if it’s possible”

Unlock the Hidden Value

Unlock the Value Residing in your System

Unlock the hidden value hidden

– Without creating the upheaval of an

implementation

– Without bringing in an army of consultants

– Without spending millions of dollars

Achieve a positive Return on Investment

System Not Delivering

Many system issues are not the result of the software.

Why isn’t your System Working the way it’s Supposed to?

System Not Delivering

Many system issues are not the result of the software.

They were caused by a flawed implementation.

Why isn’t your System Working the way it’s Supposed to?

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

Successfull Implementations Address both Process and Best Practices in addition to the Technology

The Foundation of a Successful System Includes Process and Best Practices

Pro

cess

Tech

no

logy

Be

st P

ract

ice

s

Who’s to Blame?

Why Doesn’t your System Perform as Promised?

Project Implementation Team

Process Owners

Training

Consultants

Other

1

2

3

4

5


Project Team

Process Owners

Training

Team not adequately represented by process owners

Project team didn’t have a true understanding of the underlying processes

Team assumed “built-in” Best Practices were all that was needed

Project lead was an external consultant who focused on the technology

Process owner requirements were based on the old system

Process owners had limited experience with large IT projects

The end-to-end process was not adequately addressed during the system design

Inadequate training was provided

Training was technology focused and excluded process issues

Training manuals and related documentation were inadequate


Consultants

Other Common Issues

Consultants understood technology, not your business

System knowledge resided with the consultants and was lost when they left

Consultants viewed the IT department rather then the end-user as their client

The project was sold on a fixed fee

Scope creep occurred

Not enough resources were available

The wrong resources were involved

Resources were diverted to unexpected issues

There was an aggressive “go-live” date

Issues were addressed by postponing them - “It will be addressed during the next phase or upgrade”

Improvements are can be Achieved Across your Organization

Human Resoures

Payroll

Pro

cess

es

Time & Attendence

Trai

nin

g

Benefits Administration

Recruiting Talent

Management

Sucession Planning

Co

mp

ensa

tio

n

Processes

TEC

HN

OLO

GY

To be effective a system must address: • Process • Technology • Best Practices

TEC

HN

OLO

GY

How Can you Improve your System and Related Processes?

HR Systems

Addressing the End-to-End Processes is the Key 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

TEC

HN

OLO

GY

To be effective a system must address: • Process • Technology • Best Practices

TEC

HN

OLO

GY

How Can you Improve your System and Related Processes?

HR Systems

Best Practices

Professional organizations

Conferences

Other companies

Books

Consultants

System Functionality

Best Practices and System Functionality Knowledge

How do you obtain knowledge of Best Practices and

System Functionality?

User manuals

Vendors web site

Books

Consultants

System Functionality - What You Need to Know

You don’t need to become a technology expert

– You don’t need to understand the nuts & bolts

– You simply need to understand what it is capable of

You need to be able to speak intelligently with a systems

expert

– Is what your are asking for possible?

– How long will it take to complete?

– What will it cost?

– Will it impact other users?

Understanding System Functionality

Don’t Assume Always Ask Why

End-to-End

Processes

Understand the Need

for all Inputs and

Outputs

Key Steps when Sitting with a Process Owner - Question Every Activity

Always Ask Why

What is the activity trying to accomplish?

Is it is necessary

Does it add value?

Question why

Always ask and then continue to ask

Why a process or procedure is being performed?

Why isn’t the system performing it?

Why an output is needed?

End-to-End

Processes


Don’t Assume

Don’t assume anything

Ask “dumb” questions

Politely challenge

Validate what you have been told

Compare it to the data or paper trail and/or documentation

Check with other process owners / departments

Check with other staff performing the same or similar tasks


End-to-End

Processes

Understand the Need for All Inputs and Outputs

Review all inputs and outputs

Question what the data is needed for

Determine it’s accuracy

Question what users or other departments do with the data

Ask the user what they would like in the ideal world

Question if the frequency is appropriate


End-to-End

Processes

Question Every Activity

Identify the root cause of problems rather than

the symptoms

Question whether the activity is necessary

Question if the frequency is appropriate

Determine if the activity could be

accomplished in another fashion

Always question why a manual process is not

being performed by the system


End-to-End

Processes

Understand System

Functionality

HR System Improvement Methodology

Understand Best

Practices

Understand System

Functionality


Understand Best

Practices

Understand System

Functionality

Conduct Process Reviews


Understand Best

Practices

Identify

Opportunities

Understand System

Functionality



Understand Best

Practices

Identify

Opportunities

Understand System

Functionality



Quantify / Prioritize

Opportunities Calculate ROI

Understand Best

Practices

Identify

Opportunities

Develop Future State

Understand System

Functionality





Understand Best

Practices

Identify

Opportunities

Understand System

Functionality


Obtain Agreement /

Funding




Develop Future State

The Time Required For Improvement Varies

Improvements can be accomplished within a day or can

take months

– Quick hits

– System adjustments / Process realignment

– Significant changes

Usually the system work can be performed by in-house

staff or using contract labor

Implement quick wins to gain credibility and traction.

Improvements are Easier to Address then an Implementation

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

Self Service

Paper

Integration

Employees should utilize system self-service functionality whenever possible

Employees should take advantage of vendor provided self-service capabilities

Question why every piece of paper in a process is necessary

Wherever possible replace paper with an electronic solution

Fully integrate all systems

Require large volume vendors to provide electronic feeds

Improvement Opportunities - What to Look For

Training

Access to Data

Reporting

Obtain a through understanding of the process before developing training

Training should incorporate both process and technology

Training should be developed with the process owners skill sets in mind

Anyone that requires access to data should have the appropriate access

Ideally access should be provided electronically rather then on paper

Access to data should be timely

Reports should be developed with the user in mind

Review how process owners are using their reports

Identify user needs that are not being met by current reports

Reports for routine activities should include all required data on a single report


User Manuals, Policies &

Procedures

Data Input

Develop user manuals, policies and procedures that cover the entire process rather then a “How to use the software” solution

Ideally all data should be fed to the system electronically

Manually input data should never be keyed more then once

Eliminate manual forms by requiring staff to complete electronic forms via the web or directly into the system using self-service functionality


You’ll be Amazed at What You Find!

Set aside five to ten hours over the course of a week or

two

– Select a simple process area

– Sit with the process owners and review the process in detail

– Review the system documentation to understand the

systems functionality

– Identify best practices

I Challenge You to Try This!!

Free White Paper

Unlock the Hidden Value in your

HR Systems

What You Should Know

Tom Sonde, Principal

(973) 722-9304

[email protected]

SilverRoad.net

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 get more from 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 regarding improving your HR system please visit SilverRoadSolutions.com


(973) 722-9304

[email protected]

SilverRoad.net

Copyright © 2011 SilverRoad Solutions.