Optimizing Your Payroll

and HCM Technology

Providing You the Keys

to Transformation

Agenda

Today’s HCM Environment

Getting Strategic

ADP’s HR/Payroll Technology Optimization

Assessment

Q & A

Today’s HCM

Environment

What is HCM?

Today’s HCM Environment

HCM Technology Goals

Productivity Improvement

Consistent and Seamless Information Access

Increased Workflow Efficiencies

Improved Internal and External Communication

Improved Real-time Decision Making

The Dilemma

“Most Organizations don’t know yet how to use their

HRIS, and how to make it connect to the kind of things

that make HCM strategic”

Getting Strategic –

How to Optimize your

HRMS

HRMS Strategy

Design a strategic plan for the HRIS aligned with the

overall objectives of HR/Payroll

Define current state process gaps, and map out

approaches for the required changes for future state

strategies, including those currently not supported by the

HRIS

Analyze the impact and implications of the proposed

changes within the organization

Identify and prioritize the initiatives, as well as develop a

cost/benefit analysis, if applicable

Step 1 - Begin With The

End In Mind

“Begin with the end in mind means begin

each day, each task, or project with a

clear vision of your desired direction and

destination, and then continue by flexing

your proactive muscles to make things

happen”

Stephen R. Covey

Cedar Crestone HCM Application Blueprint

Cedar Crestone HR Systems Survey 2013

Step 2 - Define the

Current State of

Processes

Define current state process gaps,

and map out approaches for the

required changes for future state

strategies, including those not

supported by the HRIS.

Utilize Process Flows

Data

Warehouse

Sh

are

d S

erv

ice C

en

ter

Exte

rnal E

nti

ty

Employee

receives pay

check or advice

PR 2.6

Payroll system

set to run a pay

cycle

PR 2.0 PR 2.2

Balancing &

audit

reports

Em

plo

yee

Ok?

No

Yes Standard

reports

Payroll to

General

Ledger

interface

Payroll to

A/P or

3rd party

interface

Payroll to

tax acct’g

or 3rd party

interface

Other

internal

interfaces

Pay

calculations

executed

PR 2.1

PR 2.5

Third Party Interfaces

(benefits, taxes,

bonds, savings

plans,…)

Third Party

generates

checks-

advices

PR 2.4

Banks

(Positive pay,

direct deposit)

Transmit /

process final

pay calc

PR 2.3

Identify - Critical Data

Step 3 – Score Yourself

Run data anomaly reports to

measure data quality and

determine clean up efforts

required

Data Anomalies

1 employee under the age of 16 exists in the database

227 employees have “unusual” dependent records

187 employees and spouses are both electing benefits

15 employees have over-age dependents with no

disability or student status

348 employees are non-married with spouses on file

…

…

Importance of Data Quality

To ensure the information and reports produced by

your HRIS are meaningful and are able to be used to

for decision making by Management, the data entered

must be accurate, complete, and consistent

Poor data quality, missing information and

inconsistent use of established codes creates errors

in employee paychecks, benefits eligibility and

enrollment, 401k eligibility and enrollment and

compliance reporting

It’s everyone's responsibility to ensure the data they

are entering is accurate, complete and consistent

Step 4 – Assess

Organizational Impact

Analyze the impact and

implications of any proposed

changes within the organization

19

CHANGE Model

C H

A N

G

E

Challenge the Current State

Harmonize & Align

Leadership

Activate Commitment

Nurture & Formalize

Design

Guide Implementation

Evaluate &

Institutionalize

the Change

SOURCE: Thriving Through Change: A

Leader’s Practical Guide to Change Mastery,

The American Society for Training and

Development and Elaine Biech © 2007,

Publisher: ASTD

Change is Hard

20

Gartner, and Independent IT research firm as cited in Delivering Transformational Change: European

Business Review March 3, 2013.

For major corporate systems [change] investments:

o 28% are abandoned before completion

o 46% are behind schedule or over budget

o 80% are not used in the way they were intended to be or not

used at all six months after installation.

Having a clever strategy is not enough—and successful organizations

should proactively develop the internal capacity to implement change

faster and more effectively than their competitors. Many so-called failures

are actually change projects that have been partially “installed”, rather

than fully “implemented”. The organizational, strategy, process and

technology components of a change initiative may have been put in place

effectively, but are not being applied or used in the intended way with the

required level of understanding, commitment and personal ownership.

People readily slip back into their old ways of working when change

leadership efforts are prematurely withdrawn.

Step 5 - Prioritize

Identify and prioritize the

initiatives, as well as develop a

cost/benefit analysis, if applicable

Transformation

Stabilize:

Training

Data Analysis/Clean up

Business Process Development

Strategize:

Executive Steering Committee

Planning/Vision

Define Success Measure

Transform:

Leverage /Upgrade Technology

Centralize Services

Shared Service Implementation

ADP’ Technology

Optimization Process

Optimization Process

The HR Technology Assessment is used to learn about the current

status of your application, and to provide transformation strategies

where the status is found to be “off-target” from generally accepted

best practice definitions. During the initial assessment effort, we

focus on a number of target areas or dimensions which, based on

our experience, are critical to optimal processing and system

utilization.

The process includes a series of intensive, process-based

interviews involving subject matter experts. The information

gathered from these interviews is delivered as:

Summary findings

Detailed findings by dimension

Short, mid and long term recommendations

Summary of recommendations per finding

Available vs. leveraged functionality

Optimization Process Objectives

Review overall HR technology strategy with leadership

team to understand current issues and future state vision

Identify areas of decreased efficiency and opportunities for

improvement in both the HR and Payroll areas

Provide recommended strategy for migration to desired

future state

Identify opportunities to fully utilize your technology

solutions beyond basic HR and payroll functionality, and

determine areas for process and application improvement

and scalability

Optimization Process Overview

During the Assessment phase, ADP resources conduct

interviews with the client team to better understand current

areas of concern and obstacles to transforming to the desired

future state

As part of the Communicate phase, ADP resources analyze all

information gathered from the discussions and interview

sessions. Findings are presented to the client to highlight

significant issues and potential trouble spots within the current

environment. Short, mid and long term recommendations for

improvement are identified

The final phase of the process, Transform, requires recognition

by the leadership team that change needs to occur, and

acceptance of the recommendations and resolutions included in

the findings, will support repeatable and sustainable work

processes using ADP technology

Topics Discussed During Interviews

Core HR, Benefits and Payroll Transactions

Future Desired State

Supporting Application Functionality

Data Elements

Process Models/Custody of Tasks

Audits/Compliance

Training Needs

Dimensions/Points of Impact

People/Skills Alignment

Business Process/Application Configuration

Controls and Security

Reports and Interfaces

Program/Change Management

System Performance

Production Management

Enabling Opportunities

Sample Deliverables

Results of the Process

Resulting data is presented within the eight assessment

dimensions and rated within a Red / Yellow / Green score.

Red - Significant issue and must be addressed

Yellow - Warning and may impact quality or efficiency

Green - Good practice in place

Summary Findings

Dimension Summary Rating

People/Skills HR users are not comfortable with the full capability of the current system,

prohibiting them from recommending change, and creating redundancy in data

capture. HR users feel they do not have the time or resources to devote to

additional education, knowledge transfer and process improvement

Business Process/

Application

Security

Lack of functionality in some implemented applications (Recruiting/Benefits)

and underutilization of others (HRIS) have created the need for numerous

manual processes which are time consuming and have the possibility of

producing inconsistent results

Controls/Security System security is administered and monitored appropriately. However,

historical lack of analytical and audit experience in critical areas (Payroll) has

created reactive rather than proactive audit of overall data

Reports/Interfaces Inadequate integration between key systems causes duplication of data entry

and increased risk of error

Production

Management

No formal processes in place for requesting application changes, implementing

enhancements, or testing new functionality

Program/Change

Management

Sustainability of change and new initiatives is impacted by lack of formal

corporate governance over use of HR technologies

System

Performance

Resolutions to system issues are not formally tracked, therefore client is not

able to consistently leverage prior knowledge or address root cause of recurring

issues

Enabling

Opportunities

Lack of fully implemented self-service and workflow functionality creates

redundant manual processes causing Human Resources staff to be mired down

in daily transactional processing rather than focusing on valued-added HR

planning and consulting activities

Sample - Total Findings by Dimension

4

13

7

4

6 6 5

2

6 5

3

1 2

0

3 2

9

47

9

13

7 6

1

15

People/Skills Business Process Controls/ Security

Reports/ Interfaces

Program/ Change

Management

Production Management

System Performance

Enabling Opportunities

Green

Yellow

Red

Detailed Findings

Recommendations

Recommendations by Finding

In the end…………

Implement the changes while focusing on the

realization of the ROI

Questions?