Human Resources Leadership Meeting

1
Human Resources Leadership Meeting
March 15, 2005

• Building the Human Resources and Payroll
  Environment for the Next Generation of North
  Carolina State Government

2
Welcome and Introductions

• Human Resource Leadership
• HR Directors
• JAD Process Owners
• OSP HR Leaders

• Project Team
• Robert Powell
• Gwen Canady
• Thom Wright
• Gary Wiggins
• Julie Batchelor
• Linda Hudson
• Shannon Byers
• Jessica Blume
• Tom Walker
• Lowell Magee
• Bradd Craver
• Dorie Kehoe
• Edward Brodsky

3
Agenda

• Welcome, Introductions, and Agenda
• SBIP Program Update
• HR Effectiveness
• High Performance Organizations
• Process Session Reviews
• NC Print Process Flows
• Process Requirements
• Process Summaries
• Change Management/Communications
• Questions
• Action Items Review
• Adjourn

4
SBIP Program Update

• HR/Payroll Project Update
• Completed HR 1 and 2 JAD Sessions
• Completed Payroll JAD Sessions
• Initiated Technical Requirements Gathering
• Data Warehouse
• Hired Project Manager
• Began Scoping and Planning activities
• Legislative Update

5
Statewide Business Infrastructure Program (SBIP)
Past Projects
Current Project
Upcoming Projects
Future Projects

• HR/Payroll Bid Preparation Project
• Develop bidding document for implementation
• Select Vendor for HR/Payroll Implementation

• HR/Payroll Planning Project
• Identify process re-engineering and structure
• Develop integration strategy and risk analysis
• Develop business requirements

Financial HR Business Infrastructure Study
Phase 1 Inventoried present systems and provided
assessment of technical and functional
capabilities
Statewide Business Infrastructure Project
Budget Financials

• HR/Payroll Implementation Project
• Implementation

Financial HR Business Infrastructure Study
Phase 2 Provided a blueprint for viable
implementation options and a recommended course
of action

• SBIP Data Warehousing Planning Project
• Develop needs assessment
• Confirm Scope
• Develop implementation timeline and approach
• Develop business requirements

Statewide Business Infrastructure Project Tax
Revenue

• SBIP Data Warehousing Implementation Project
• Implementation

Legend
Current Project
Past Projects
Upcoming Projects
Future Projects
6
HR/Payroll Project Overview
Planning
Pre-Implementation Activities
Implementation Begins

• Confirm selection of system as well as technical
  service delivery
• Confirm HR/ Payroll strategy for implementation
• Business reengineering opportunities

• Identify HR and Payroll business and functional
  requirements
• Develop business process flows

• Perform the implementation objectives for a new,
  fully automated HR/ Payroll system for the State
  of North Carolina

7
HR/Payroll Project Timeline
Plan
Execute
Vision
Close
Project Week
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Month
Dec
Nov
Jan
Feb
March
Apr
Date
25
1
8
15
22
29
6
13
20
27
3
10
17
24
31
7
14
21
28
7
14
21
28
4
11
18
25























Project Management

Change Management
Group I
Human Resources
Group II
Payroll
Technical


Project Status Report

Final Deliverables

Offsite Working/Holiday
HR

Group I
HR

Group II
Payroll
Technical

Personnel

Compensation

Payroll

High level
Administration
Management
Administration
technical
requirements

Recruitment

Job and Salary

Payroll Processing
Surveys

Security

Applicant Tracking

Labor Cost

Position Evaluation
Distribution

Infrastructure

Disciplinary Action and
Analysis
Complaint Management

Time Collection

Integration

Benefit
Management

Incident and Accident
Administration
Tracking

Budget Support

Workforce Analytics

Exit Interviews

Organizational

Competency Based HR
Management
Management

Employee Self

Performance
Service
Management

Leave Tracking

Training Administration
8
HR Effectiveness - Vision

• HR/Payroll Vision
• A strategic business partnership supporting the
  human resource and payroll needs of State
  government, enabled by utilizing leading business
  practices and current technology
• HR/Payroll Project Goal
• Through a statewide collaborative effort, the
  goal of the HR/Payroll Project is to develop an
  enterprise-wide Human Resources/Payroll system
  utilizing leading industry practices to provide a
  foundation for effective management, increased
  efficiency, and the information needed to make
  timely and appropriate decisions

9
HR Effectiveness - Guiding Principles

• Create a seamless HR/Payroll experience for
  employees
• Provide an environment for employees to make
  informed decisions about their careers and
  employment benefits
• Streamline business processes to drive efficiency
• Increase productivity and make the State of North
  Carolina more competitive
• Develop a single repository, with a common set of
  data elements, to successfully support the
  States reporting and management activities
• Move transactions closer to the point of origin
  (Employee Self Service/Manager Self Service)
• Provide a flexible system able to respond to
  changing HR/Payroll needs
• Eliminate redundant systems and duplicative
  processing
• Provide real time access to transaction activity

10
HR Effectiveness - Transformation

• HR/Payroll Today
• Transactional Focus
• Separate and Isolated from Mission
• Fragmented data prohibits meaningful reporting
• Manual, paper-intensive processes
• Processes and procedures vary by agency
• Employees require assistance to change personal
  data
• Inconsistent standards and forms across agencies
• Duplicate entry of HR data into multiple systems
• Fragmented data across agencies makes statewide
  reporting difficult

• HR/Payroll Tomorrow
• Strategic Focus
• Key Part of Organizational Mission
• Consistent information enables accurate
  enterprise reporting
• Automated, technology-enabled processes
• Employees can manage selected personal data
• Standardization of forms and similar processes
  across agencies
• Single HR/Payroll system to reduce data re-entry
• Consolidated HR/payroll database across all
  agencies for better reporting

Business Process Reengineering
Technology Implementation
11
Current OSP/HR Directors Initiatives

• Mediation Program
• Equal Employment Opportunity
• Competency Modeling
• E-Learning
• Career Banding
• HR/Payroll Systems Replacement Project

12
High Performance Organizations
13
Are you feeling the stress?

• I'm not sure exactly how it works, but this is
  amazingly accurate.  The photo on the next slide
  has 2 almost identical dolphins in it.  It was
  used in a case study on stress level at St.
  Mary's Hospital.
• Look at both dolphins jumping out of the water.  
• The dolphins are identical.  A closely monitored,
  scientific study of a group revealed that in
  spite of the fact that the dolphins are
  identical, a person under stress would find
  differences in the two dolphins.
• If there are many differences found between both
  dolphins, it means that the person is
  experiencing a great amount of stress.
• Look at the photograph, and if you find more than
  one or two differences you may want to take a
  vacation.   

14
Can You See the Differences?
15
Moving the Game Up

• What Is a High Performance Organization?
• Why Are Higher Performance Levels Required?
• What Are High Performance Practices?
• How Does HR Impact Development of a High
  Performance Organization?
• How Can HR Measure Contribution to a Performance
  Organization?

So, HR is really important!
16
The Challenge To Create a High Performance
Organization

• Embrace Government that is
• Efficient, Effective, Trustworthy, and
  Responsible to citizens and their needs
• Prepared with a workforce to meet the demands of
  a global economy
• Aligned Strategy, Leadership, and People to
  Organizational Infrastructure, Processes, and
  Technology

Now as one economic era has ended and another
has begun, the time for indecision and timidity
has passed. We are already on the path of
progress. Our full attention must be focused on
the transition of our economy consistent with the
educational demands of this global era. -
Governor Easley, 2005 Inaugural Address
17
Government and Corporate America Must Move Up
Organizational Performance

• Meet budgetary demands to create more value with
  less
• Fight the competition and improve constituent
  value
• Develop workforce plans to meet State strategic
  objectives
• Develop and retain the best talent
• Provide HR services that support mission critical
  activities at the State level as well as at the
  agency level
• Meet expectations of candidates and future
  employees
• Create infrastructure to support efficient HR
  service delivery

18
Link NC Strategic Objectives to HR Activities
Flexible Compensation
Personnel Cost
Operational HR Cost (HR processes)
Organizational Efficiency
Effectiveness in People Development
Human Capital Flexibility
Workforce Planning
State Competitiveness
19
HR Value Creation Can Rise to the Top
Strategic Value
e.g. Reduce turnover to lt20 for critical roles
e.g. HR benefit transaction costs reduced by 25
HR Performance
20
HR Impact on Development of High Performance
Organization

• Performance Management Processes and Policies
• Organizational Change Management
• Strategic Workforce Planning Talent Management
• Risk Management
• Workforce Training and Development

"Develops a workforce prepared to meet the
demands of a global economy by expanding
life-long learning opportunities" The top in
innovation, creativity, knowledge, talent, and
skills - Mike Easley, NC Governor
21
Measuring HR Effectiveness

• Measures must be strategically relevant and
  aligned with statewide objectives and specific
  agency goals
• Measures must be limited but focus on
• Key drivers of performance and their outcomes
• Provide Cause\Effect relationships among measures
• Example Measures
• Percent of trained employees with increased KSAs
  as reported by management
• Percent of new hires who are exceeding
  expectations after one year
• At least a 25 pay differential between good and
  excellent performers
• Total cost of vacant positions
• Voluntary turnover rate of high performing
  employees
• Percent of grievances settled through mediation

22
Proposed Conceptual Framework for HR Measures
Example Strategic Performance Measurement
Categories
AgencyPerspectives
People Organizational Effectiveness
Budgetary Perspective
Constituent Relations
Operations
Framework Levels
Organizational-Wide HR Measures
HR Functional Measures

• HR Process Measures
• Manage Employee Recruitment New Hire
  Integration and Manage Employee Separation
  Process
• Develop Train Workforce
• Administer Pay Benefits and Control Employee
  Information
• Manage Employee Relations
• HR Planning Analysis and Strategy Development
• Manage Performance Management

Context -Specific Agency Objectives
23
HR Project Perspective

• Significant opportunity for business process
  redesign now
• Significant opportunity to leverage technology to
  support process improvements long term

24
HR Process Reviews
25
HR020 Plan and Manage HR Programs and Plans
26
JAD Session HighlightsPlan and Manage HR
Programs and Plans

• Process Overview
• Once HR programs and plans have been established,
  their effective management includes
  communication, eligibility determination, plan
  enrollment, plan changes, and coordination/informa
  tion exchange with any third parties.

• Improvement Opportunities
• Increased statewide consolidated planning for HR
  programs to allow better sharing of resources and
  exchange of best practices across agencies
• Potential Barriers
• Budgetary restrictions may restrict future system
  improvements
• Employees do not understand the benefits of this
  project and fear how it will affect their jobs
• Users are afraid they will not know how to
  perform basic transactions and will not know who
  to contact for help
• People are used to moving paper and fear an
  electronic environment
• Some of the workforce is not familiar with
  computers
• Lack of commitment from top management

• Benefits
• Consolidated data will be available to measure a
  programs success
• Ability to report on statewide data without
  having to call agencies to collect fragmented
  data
• Greater ability to plan at the state level due to
  statewide consolidated data
• Ability to be proactive, rather than reactive to
  requests or problems
• Ability to spend more time analyzing data than
  collecting it
• Ability to spend more time on strategic HR
  functions rather than HR administration
• Ability to make more informed decisions due to
  real time data access

27
HR030 Design and Maintain Organizational
Structure
28
JAD Session HighlightsDesign and Maintain
Organizational Structure

• Process Overview
• The objectives of this process are to determine
  organizational design, define competencies and
  reporting/working relationships for each
  position, maintain job descriptions and
  responsibilities for each position in the
  organization, and create an organizational
  development plan to achieve desired staffing and
  skill levels.

• Improvement Opportunities
• Standardize the use of electronically generated
  organizational charts across all parts of the
  state
• Simplify and consolidate job descriptions
• Simplify approval processes with fewer people
  touching data
• Potential Barriers
• Legislature does not understand the HR
  information they are provided
• Computer equipment is out of date
• Fear of change, particularly changes in
  responsibility and authority
• Insufficient training could create additional
  errors
• Difficulty in moving beyond weve always done it
  this way
• Lines of approval vary across agency
• Agencies do not want to pay for support or
  changes
• Uniqueness of the Judicial branch hinders
  standardization

• Benefits
• Ability for agencies to access real time data to
  respond to legislature or budgeting requests
• Ability to create more professional looking job
  postings that appeal to a wider variety of
  applicants
• HR and Payroll can better support decision making
  and been seen as strategic partners
• New technology and processes will bring the state
  closer to the way the private sector operates

• Ability to eliminate shadow systems and the cost
  of maintaining them
• More accurate data can generate cost savings.
  For example, position planning to reduce overtime
• Organizational charts are more accurate because
  they can be produced electronically rather than
  maintained manually

29
HR070 Manage Compensation and Classification
30
JAD Session HighlightsManage Compensation and
Classification

• Process Overview
• The objectives of this process are to manage
  employee promotions, transfers, and status
  changes and to develop and implement employee
  compensation programs linked to
  performance/geographical guidelines that conform
  to budgeting and planning constraints.

• Improvement Opportunities
• Eliminate duplicate systems that do not interface
  with each other
• Simplify range revision and balancing processes
• Implement a variable pay structure
• Eliminate Commission approval for classification
  decisions potential to remove statute
• Integrate outside survey data with HR system data
• Potential Barriers
• Insufficient funding for the project
• Constraints on salaries caused by legislation and
  limited funding
• Legislature does not understand cost and risk of
  not implementing new system
• Aversion to change
• Fear of how newly available data will be used or
  managed

• Benefits
• Reduced clerical burden
• Ability to make more informed decisions with
  increased information available
• Ability to track different types of pay plans
• Employees will be treated more fairly with
  standardized processes

31
HR080 Maintain Benefits and Enrollment
32
HR090 Administer Benefits
33
JAD Session HighlightsMaintain Benefits
Enrollment and Administer Benefits

• Improvement Opportunities
• Start employee benefits upon hire rather than
  after a waiting period
• Change benefit plan year to calendar rather than
  fiscal year to make it easier for employees to
  manage their benefit deductibles
• Track employees plan enrollment statewide and
  base decision making on consolidated data
• Simplify transfers between agencies and remove
  unnecessary paperwork
• Automate the calculation of the disability
  payment
• Automate the transfer of funds from the
  retirement system back to the agency rather than
  payment by a check
• Potential Barriers
• Different benefits options with special rules
  that have been grandfathered in add complexity to
  the development and administration of plans
• Some employees have limited computer skills, or
  less solid reading skills
• Limited employee access to computers
• Language barrier for employees that must use the
  system but do not speak English
• Interface with Retirement System may be difficult
  to implement

• Process Overview
• This process includes maintaining the rules for
  benefit plan eligibility and enrollment.
  Voluntary, employee-paid, and employer-paid
  benefits are included. In addition to
  traditional benefits, flexible spending,
  tax-exempt, and tax-deferred plans are also
  included.
• The administration of benefits is focused on the
  processing of disability claims.

• Benefits
• Ability to provide employees with a total
  compensation statement that includes benefits
• Ability to provide a seamless experience for
  employees transferring between State agencies
• Ability to process transactions more efficiently
  with less administrative work and fewer errors
• Employees will have greater faith in the accuracy
  of their benefits changes

• Employees become more empowered and more
  responsible
• Consistency of information across agencies allows
  for better decision making
• Less time spent on administrative tasks
• Ability to provide better customer service
• Improved ability to meet deadlines
• More correct and timely processing of disability
  claims

34
Organizational Themes

• SME feedback
• Enthusiastic about the possibilities of a new
  solution
• Supportive of common processes and
  standardization
• Sessions have provided a good networking forum
• Appreciative of the opportunity to provide input
• Business Benefits
• Reduced clerical burden
• Increased efficiencies
• Better decision making with better consolidated
  data
• Reduction of various side systems
• Potential Barriers to Success
• Computer availability and technical
  infrastructure
• Fear that data will be misinterpreted data
  security
• Acceptance of employee/manager self-service
• Common change barriers
• Training (system and process) and PC skills

35
Change Management Update

• Scheduled North Carolina IT Projects Lessons
  Learned Focus Group
• Identify lessons learned from previous projects
• Discus communication methods
• Document methods to ease transition to new
  processes and systems
• High level assessment to state governments
  culture and change readiness
• Participants include
• Bob Bellamy (Dept. of Public Instruction)
• Sharon Hayes (Information Technology Services)
• Sondra Williams (Community College System)
• Tom Runkle (Information Technology Services)
• Wrap-Up Development of Change Management
  Strategy
• The Importance of Change Management
• Change Management Strategy and Framework
• Next Steps for North Carolina HR/Payroll

36
HR Leadership Action Items

• April 15, 2005 Next HR Leaders Meeting
• Review JADs HR Group 2 Summary
• Submit comments to Gary Wiggins by 3/22/2005 at
  (gary.wiggins_at_ncmail.net)