Implementing new technology does not guarantee efficiency. There’s a lot more to a successful system implementation then simply letting your IT department hire a system implementation firm to install your new software.
Surveys have reported that up to 90% of organizations are dissatisfied with their HR system. While some of the blame should rightfully be directed at the software provider a significant portion of the issues can be traced directly back to an inadequate implementation.
Whether you are implementing a traditional HR system, one of the new cloud based systems or an add-on such as an online recruiting solution there are a host of things you, as the HR practitioner, should address.
This session will identify and discuss the keys to a successful implementation. It is non-technical and is designed to provide the HR practitioner with practical tips for conducting a systems implementation.
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HR Best Practices for Improving HRMS / HRIS - Tom Sonde - SilverRoad Solutions
1. HR Best Practices
for
Improving
HRIS / HRMS
Tom Sonde
SilverRoad Solutions
2012 Annual Conference
December 10, 2012
2. Why Isn’t the System Delivering on it’s Promises?
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
3. 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?
4. There is a Gap Between what the Software
Developers Intended and what you End Up With
“The System Can’t do That”
“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”
5. Unlock the Value Residing in your System
Unlock the Hidden Value
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
6. 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.
7. 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.
8. Implementing new technology does not guarantee
efficiency
Teacher
After data is Based on the type Custodial - Plant
completes Principal or Dept. School clerk
entered, Non site-based budget of purchase, Operations
requisition form or Head approves enters data into
requisition will be purchases goes to an requisition is
fills out pre-printed and signs system from Teacher
funneled into the approver initially routed to one of Exceptional After data is Based on the type Custodial - Plant
list for items requisition requisition completes Principal or Dept. School clerk
following the following:(1) Children Division entered, Non site-based budget of purchase, Operations
needed requisition form or Head approves enters data into
requisition will be purchases goes to an requisition is
fills out pre-printed and signs system from
Site-based budget purchases Applied funneled into the approver initially routed to one of Exceptional
list for items requisition requisition
go directly to Finance Technology following the following:(1) Children Division
needed
Career
Purchases from a contract Development Site-based budget purchases Applied
Type A
company or pre-printed list go directly to Finance Technology
Finance Dept. (2) Career
Library Services Purchases from a contract
Purchases not from a contract Type A Development
company or pre-printed list
Type B company or pre-printed list Finance Dept. (2)
regardless of price Chief Academic Library Services
Purchasing Dept/ Officer-Textbooks Purchases not from a contract
Senior buyers Type B company or pre-printed list
Senior buyers
review requisition regardless of price
receives Chief Academic
proof, checks for Teaching &
purchases in Purchasing Dept/ Officer-Textbooks
errors (4) Type 2 Learning Assmt. Senior buyers
"requisition proof" Senior buyers
review requisition
receives
proof, checks for Teaching &
purchases in
errors (4) Type 2 Learning Assmt.
Interscholastic "requisition proof"
Buyer requests Requisition proof
Other purchases
quotes/bids from is generated from
are routed to a Buyer receives
New Technology
vendors (fax, mail, information
buyer - based on buyer's copy Supplemental Interscholastic
or phone) Request entered into Buyer requests Requisition proof
assignment Funds-Budget & Other purchases
for Quotation form system quotes/bids from is generated from
Management (3) are routed to a Buyer receives
If errors Type 1 vendors (fax, mail, information
buyer - based on buyer's copy Supplemental
If no errors found are found or phone) Request entered into
assignment Funds-Budget &
on requisition proof for Quotation form system
Management (3)
If errors Type 1
If no errors found are found
Purchase order is Senior buyers will on requisition proof
generated from the correct errors and
requisition proof another proof is
the next day Brown/yellow copy generated Purchase order is Senior buyers will
Finance Dept. generated from the correct errors and
sent to school Vendor receives
matches invoice to requisition proof another proof is
(brown copy is PO and ships
receiver's report the next day generated
receivers report) order to school Brown/yellow copy
Purchases orders Finance Dept.
Buyer signs and sent to school Vendor receives
printed at Senior buyers matches invoice to
Blue copy sent to dates PO; sends (brown copy is PO and ships
Southside location separate POs (5 receiver's report
Controllers Office to vendor by mail receivers report) order to school
and delivered to copies) Purchases orders
or fax Vendor sends Buyer signs and
Admin Bldg. System generates printed at Senior buyers
invoice to Finance Blue copy sent to dates PO; sends
payment when Southside location separate POs (5
White PO copy Dept. Controllers Office to vendor by mail
both invoice and and delivered to copies)
routed back to or fax Vendor sends
receiver's report Admin Bldg. System generates
original buyer invoice to Finance
are entered into White PO copy payment when
system Dept. both invoice and
Orange copy kept School confirms routed back to
original buyer receiver's report
on file at purchase by
are entered into
purchasing office sending receivers
system
report to Finance Orange copy kept School confirms
Dept. (5) on file at purchase by
purchasing office sending receivers
report to Finance
Dept. (5)
Inefficient New Inefficient
Old Process Technology New Process
9. Successfull Implementations Address both Process and
Best Practices in addition to the Technology
Best Practices
Technology
Process
The Foundation of a Successful System Includes Process and Best Practices
10. Who’s to Blame?
Why Doesn’t your System Perform as Promised?
1 Project Implementation Team
2 Process Owners
3 Training
4 Consultants
5 Other
11. Why Doesn’t your System Perform as Promised?
Team not adequately represented by process owners
Project Project team didn’t have a true understanding of the underlying processes
Team 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 Process owners had limited experience with large IT projects
Owners
The end-to-end process was not adequately addressed during the system design
Inadequate training was provided
Training Training was technology focused and excluded process issues
Training manuals and related documentation were inadequate
12. Why Doesn’t your System Perform as Promised?
Consultants understood technology, not your business
Consultants 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
Other Not enough resources were available
Common The wrong resources were involved
Issues 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”
13. Improvements are can be Achieved Across your
Organization
Human Resoures Processes
Benefits
Payroll Administration
Compensation
Processes
Training
Talent
Management Recruiting
Time & Sucession
Attendence Planning
14. How Can you Improve your System and Related Processes?
To be effective
a system must
address: HR
• Process
• Technology Systems
• Best Practices
TECHNOLOGY
15. Addressing the End-to-End Processes is the
Key to Success
AP and
Disbursement
transactions
Payroll - Salary and Benefits Expenses General Fund
Salary and Quarterly
Benefit Summary Report
Expense (2)
available for
Payroll System
transfer VAC
system Excel Spreadsheets
Risk Management - Life, Health, Dental Expenses are turned into a text RollOver Monthly
file then transferred Report sent to
Report of all Departments Changes are input into the VAC departments
enrollment is sent Spreadsheet VAC System is
return hard copies on Excel Disbursement System (5)
Health Enrollment to departments for is sent to updated
to Risk Spreadsheet
Database with all update/correction Controllers
Management for which calculates
employee health, office
changes chargebacks
life and dental data
Telecommunications - Phone MOD Budget
Expense Report used to
Telephone bills are Total for each Each department Department prepare MQ
received from Nynexl, receives an Any disputes are
department is sends (1)
Nextel, Sprint, Arch itemized list of reported to the
entered on Excel spreadsheets
wireless, and Ameritech charges to their Telecommunication
Spreadsheets. to the Controller net
(3) department s dept. and a credit
One sheet per of any
is granted.
company adjustments
( 1) Report shows MTD and YTD Expenses,
Encumbered-unpaid expenses, $ Free
Fleet Management - Gas and Maintenance
Expenses
Balance, and % Free Balance. This report is
Work Orders are One copy is sent to John Murphy uses used to create MQ.
At month end, Printed report is
generated as work is the department, the report to record (2) Report shows General Funds
work orders are sent to each expenses and transfer
done in Fleet other is used to Departments, account #, recommended
summarized by department and funds between
Management record expense/ budget, current appropriations, YTD
department and Controllers office departments
(4) billing
entered into Excel expenses, and YTD % budget used.
Attachment also includes Outside General
Payroll - Mileage Expense Funds with all categories plus estimated
Department
revenue, YTD revenue received, and YTD
Departments Report is returned Payroll inputs Green Bar Report
completes mileage printed from
% collected. Report generated by
Specials receive blank by 9th of month to mileage, system
and total calculates Specials Database Controllers office and given to John
Account report listing Payroll
department reimbursement. The data from these Murphy (12th Floor room 1243) for
maintains
mileage
reimbursement reports are manually review. The report is reviewed with the
entered into an CFO by the staff and Controller.
Payroll - Medicare Expense Excel spreadsheet, (3) Other daily phone bills are sent through
Medicare Expense Report printed by
Medicare Expense on an AP voucher to be paid
adjustments are department/
from Payroll (4) Fleet Management supports 3
posted after account
Payroll System departments and generates approximately
payroll run
100-150 work orders each month.
Central Supply - Xerox, Postage, and Supplies Expenses (5) This report shows monthly receipts and
Departments Postage, and expenses by departments. Any request for
Manual log of copy Supply Expense adjustments are sent via hardcopy to the
request supplies Postage machine
requests by report sent bi-weekly Controllers office.
via phone/fax and tracks postage by Supply and postage
department (+10%
they are tracked Department expenses per
surcharge)
via VAC system department are entered
into VAC system
16. How Can you Improve your System and Related Processes?
To be effective
a system must
address: HR
• Process
• Technology Systems
• Best Practices
TECHNOLOGY
17. How Can you Improve your System and Related Processes?
To be effective
a system must
address: HR
• Process
• Technology Systems
• Best Practices
TECHNOLOGY
18. How Can you Improve your System and Related Processes?
To be effective
a system must
address: HR
• Process
• Technology Systems
• Best Practices
TECHNOLOGY
19. Best Practices and System Functionality Knowledge
How do you obtain knowledge of Best Practices and
System Functionality?
Best Practices System Functionality
Professional organizations User manuals
Conferences Vendors web site
Other companies Books
Books Consultants
Consultants
20. Understanding System Functionality
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?
21. Key Steps when Sitting with a Process Owner -
Question Every Activity
Always Ask Why Don’t Assume
End-to-End
Processes
Understand the Need
for all Inputs and
Outputs
22. Key Steps when Sitting with a Process Owner -
Question Every Activity
Always Ask Why
What is the activity trying to accomplish?
End-to-End
Processes
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?
23. Key Steps when Sitting with a Process Owner -
Question Every Activity
Don’t Assume
Don’t assume anything
End-to-End
Processes
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
24. Key Steps when Sitting with a Process Owner -
Question Every Activity
Understand the Need for All Inputs and Outputs
Review all inputs and outputs
End-to-End
Processes
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
25. Key Steps when Sitting with a Process Owner -
Question Every Activity
Question Every Activity
End-to-End
Processes 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
27. HR System Improvement Methodology
Understand
System
Functionality
Understand
Best
Practices
28. HR System Improvement Methodology
Understand Conduct
System Process
Functionality Reviews
Understand
Best
Practices
29. HR System Improvement Methodology
Understand Conduct
System Process
Functionality Reviews
Understand
Best Identify
Practices Opportunities
30. HR System Improvement Methodology
Understand Conduct Quantify /
System Process Prioritize
Functionality Reviews Opportunities
Calculate ROI
Understand
Best Identify
Practices Opportunities
31. HR System Improvement Methodology
Understand Conduct Quantify /
System Process Prioritize
Functionality Reviews Opportunities
Calculate ROI
Understand Develop
Best Identify Future
Practices Opportunities State
32. HR System Improvement Methodology
Understand Conduct Quantify / Obtain
System Process Prioritize Agreement /
Functionality Reviews Opportunities Funding
Calculate ROI
Understand Develop
Best Identify Future
Practices Opportunities State
33. Improvements are Easier to Address then an
Implementation
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.
34. Return on Investment - ROI
A Positive ROI is Essential to Obtaining Project Approval
Clearly Articulate Benefits Quantify Savings
The better you can articulate Quantify potential savings in
benefits and real dollar savings order to: Free up resources
the more support you will (e.g. process owners, IT staff)
receive Gain executive buy-in and
obtain funding
ROI
Focus on Savings Justification
Focus on savings, not cost At a minimum on a small project
you want to justify the need for
dedicated resources to focus on
your project
35. Improvement Opportunities - What to Look For
Employees should utilize system self-service functionality whenever possible
Self
Employees should take advantage of vendor provided self-service capabilities
Service
Question why every piece of paper in a process is necessary
Paper Wherever possible replace paper with an electronic solution
Fully integrate all systems
Integration
Require large volume vendors to provide electronic feeds
36. Improvement Opportunities - What to Look For
Obtain a through understanding of the process before developing training
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
Access to data should be timely
Reports should be developed with the user in mind
Review how process owners are using their reports
Reporting
Identify user needs that are not being met by current reports
Reports for routine activities should include all required data on a single report
37. Improvement Opportunities - What to Look For
User Manuals, Develop user manuals, policies and procedures that cover the entire process
Policies & rather then a “How to use the software” solution
Procedures
Ideally all data should be fed to the system electronically
Data Manually input data should never be keyed more then once
Input Eliminate manual forms by requiring staff to complete electronic forms via the
web or directly into the system using self-service functionality
38. I Challenge You to Try This!!
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
39. Free White Paper
Unlock the Hidden Value in your
HR Systems
What You Should Know
Tom Sonde, Principal
(973) 722-9304
tsonde@silverroad.net
SilverRoad.net
40. Thank you for
your attention!
Any Questions?
Tom Sonde, Principal
(973) 722-9304
tsonde@silverroad.net
SilverRoad.net