3 payroll-presentation

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New York University Payroll Assessment Final Report July 2009

Transcript of 3 payroll-presentation

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New York UniversityPayroll Assessment

Final Report

July 2009

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Copyright © 2009 Accenture All Rights Reserved. 2

Table of Contents

• Executive Summary

• Project Objectives and Approach

• Findings

• Opportunities

• Options Analysis and Recommendations

• Recommended Projects and Implementation Roadmap

• Appendix

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Executive Summary

• Findings

– Current annual payroll operating cost of $4.7 million offers significant opportunity for improvement

– Time & Labor process is completely manual

– HR/Payroll system is 30 years old and presents considerable risk of failure

• Recommendations

– Continue to run payroll as an insourced function

– Implement a Time & Labor solution

– Transition payroll into a true Service Center model and optimize payroll operations

– Reengineer key aspects of HR transaction processing to improve speed and efficiency of transactions which affect payroll

• Financial impact

– Reduce steady state run cost by $2.1 million, a 45% reduction

– Payback: 2.3 years with an NPV of $18 million

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Executive Summary

The to-be Payroll environment at NYU will have the following characteristics:

– Run cost reduced by approximately 50%

– Automation of all payroll-related processes

– Elimination of the risk associated with an obsolete HR/Payroll system

– Payroll department optimized for maximum efficiency

– Payroll operating in a Service Center model

– Simplified payroll processing calendar with fewer pay cycles

– University-wide shift in behavior and mindset:

• More operational discipline and more timely processing

• Fewer exceptions

• Elimination of check distribution and reduction in check cashing services

• A self service model for data entry and issue resolution; examples:

– Self service for employee personal data entry (e.g. time entry, address change)

– Self service Employee Portal for procedure and policy information

– 800 number for employee inquiries

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Project Objectives and Scope

• The objectives of the payroll assessment were to:

– Investigate opportunities for improving accuracy, efficiency, and effectiveness across NYU’s US Payroll process

• Assess both short-term and long-term payroll considerations

• Benchmark payroll operational metrics and compare to leading practices with specific focus on operational efficiency, cost-to-serve, field/input compliance, and payroll work/activity distribution

– Analyze payroll service delivery alternatives (in-source/outsource) and supporting technology

– Define a high-level roadmap and go-forward recommendation

– Develop a financial analysis of options including one-time and ongoing costs aligned with the proposed roadmap and recommendation

• The assessment focused on NYU’s US payroll operation including Time & Labor (T&L) as a key input/component to payroll processing; the scope of the assessment also included:

– Payroll transaction and exception processing

– Supporting payroll related technology

– Payroll processing procedures & documentation

– Overall payroll process compliance (payroll operations and input dependencies)

– Processing of HR transactions which affect payroll

Note: see Appendix for more details on Project Approach

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Data Gathering for the Project

Data gathering consisted of two activities:

– Building a fact base of current state data: operating costs, third party services and costs, transaction types and volumes, service delivery structure, pay processing calendars, technology applications, etc.

– Conducting a total of 18 interviews, involving 48 NYU personnel, to understand the roles, procedures, issues, opportunities, and challenges with the current payroll process

• Schools/Units – Time data collection, review, and submission; HR transaction preparation and entry

• Central Areas – Time data entry and payroll processing; Academic Appointments; HR, Benefits, and IT Support

Note: see Appendix for the detailed inventory of interviews/interviewees

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Themes/Findings from the Interviews

• Time & Labor processing is almost 100% manual

• Onboarding and other upstream HR activities cause delays in the entry of HR transactions, which then create late payroll transactions

• There is a lot of complexity inherent in a new hire transaction which often results in delays and late processing

• There are an unusually high number of reviews and approvals in the end-to-end process

• There is no standardization of Time and HR processes/roles within the Schools/Units

• A majority of the complexity and issues within the Schools/Units is with the cost accounting associated with Pay and HR transactions, not the payroll transaction per se

• End users want better access to information – about employee data and about payroll-related processes and procedures

• There is no standard tracking mechanism for Sick/Vacation time (some schools use shadow systems, others do it manually); this information is very frequently not accurate

• While overall customer service from the central Payroll department is viewed favorably, there is considerable reliance on individual contacts/relationships to resolve issues – there is no “service center” model for customer service

• There are fundamental limitations with the Integral system, and fundamental risk of failure with the Integral Payroll module

• Current check distribution procedures are cumbersome and costly

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Not replacing the Integral Payroll systemcarries substantial business risk

The university’s HR and Payroll system is called Integral. This system has the following characteristics:

• Was originally developed in the 1970’s

• Runs on a mainframe computer, which is expensive and nearing obsolescence

• Integral is obsolete software with many structural limitations; very difficult to modify and maintain

– For example: No effective dating, limit of 7 jobs per employee

• Only a handful of organizations are still running Integral

• Number of IT professionals with Integral expertise is small, and getting smaller

There is substantial business risk associated with continuing to run the 30 year old Integral Payroll system

– Payroll failure – with no real contingency plan

– Inability to implement regulatory changes

– Dependence on two specific NYU support individuals, both of whom are nearing retirement

– Dependence on a relatively small third party support firm, JAT ($6 million annual sales, <100 employees)

Business requirements that will require significant additional effort and cost in the absence of a PeopleSoft implementation:

– Support for Abu Dhabi and any other global sites

– Position Management

– HR/Payroll historical data conversion in the Data Warehouse

– Additional PASS/HRIS enhancements

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Comparison of NYU With PeerOrganizations in Higher Education

Common Payroll-Related Characteristics Within Higher Education How NYU Compares

Shared Services model for Payroll and Employee Service Does not have today

Usage of an ERP system (most often PeopleSoft) Does not have today

Existence/adoption of online self service tools Have some

Existence/adoption of an “Employee Portal” for online content and communications

Have very basic

capability

Relatively complex pay calendar Yes

Complex processing around Grants and funding of academic and research appointments

Yes

Systematic tracking of Time & Labor data and Sick/Vacation balances Almost entirely manual today

Usage of Outsourcing for Payroll-related services For W2 processing

On par

Lagging some

Lagging significantly

On par

Lagging some

Lagging significantly

Assessment of NYU relative to peersAssessment of NYU relative to peers

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Other Cost0.2%

Payroll Labor23.2%

Office Supply Cost2.8%

Facilities0.3%

Equipment Cost1.1%Shipping & Handling Cost

4.3%

Other Third Party Fees3.0%

Field Support (Schools & Units) Labor

42.9%

IT Labor15.5%

Time and Labor - Labor6.6%

Current Cost Structure

Almost 50% of total cost is dedicated to supporting a manual time and attendance system

Almost 50% of total cost is dedicated to supporting a manual time and attendance system

Most of the cost of Payroll is outside of the Payroll Unit… Almost 60% of the cost of Payroll is in IT and the Schools/Units which must dedicate FTE to supporting Time and Labor tracking and PayrollMost of the cost of Payroll is outside of the Payroll Unit… Almost 60% of the cost of Payroll is in IT and the Schools/Units which must dedicate FTE to supporting Time and Labor tracking and Payroll

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Cost of Payroll Operations

Significantly higher cost… NYU Payroll operations cost approximately five and a half times the average payroll operations as measured by cost per check and cost per employee served. Over 50% of cost is driven by the manual Time and Attendance system

Significantly higher cost… NYU Payroll operations cost approximately five and a half times the average payroll operations as measured by cost per check and cost per employee served. Over 50% of cost is driven by the manual Time and Attendance system

External Benchmark: American Payroll Association

Payroll Cost per Payee

$304.04

$72.93

NYU Average

External Benchmark

Payroll Cost per Payment

$15.20

$3.44

NYU Average

External Benchmark

CurrentCurrent

CurrentCurrent

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Efficiency of Payroll Operations

Significantly lower efficiency… The average Payroll operation services approximately three and a half times more employees per Payroll FTE than NYU. Almost 50% of the NYU payroll labor in this equation is dedicated to supporting the manual Time and Attendance process

Significantly lower efficiency… The average Payroll operation services approximately three and a half times more employees per Payroll FTE than NYU. Almost 50% of the NYU payroll labor in this equation is dedicated to supporting the manual Time and Attendance process

* Payments Processed metric is skewed by the fact that a large portion of NYUs population is paid monthly. If this population were paid semi-monthly, the NYU average would be about 7,700 per FTE (about 1/3 as efficient as benchmark)* Payments Processed metric is skewed by the fact that a large portion of NYUs population is paid monthly. If this population were paid semi-monthly, the NYU average would be about 7,700 per FTE (about 1/3 as efficient as benchmark)

**

External Benchmark: American Payroll Association

Payees processed per Payroll FTE

293

984

NYU Average

External Benchmark

Payments processed per Payroll FTE

5,849

26,144

NYU Average

External Benchmark

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Payroll Quality Metrics

Lowest % of late HR transactions: Courant, VP Public Affairs, Silver, General Counsel, FAS, School of Law, Tisch, Stern Highest % of late HR transactions: Gallatin, ISAW, Vice Provost Academic Affairs, Vice Provost Faculty Affairs

Lowest % of late HR transactions: Courant, VP Public Affairs, Silver, General Counsel, FAS, School of Law, Tisch, Stern Highest % of late HR transactions: Gallatin, ISAW, Vice Provost Academic Affairs, Vice Provost Faculty Affairs

Late HR Input negatively impacts Payroll: NYU issues over 11,000 off-cycle payments annually (Manual and off-cycle). Off-cycle payments and retroactive adjustments cause rework for both the Payroll department and the Payroll support personnel in the schools/units.

Late HR Input negatively impacts Payroll: NYU issues over 11,000 off-cycle payments annually (Manual and off-cycle). Off-cycle payments and retroactive adjustments cause rework for both the Payroll department and the Payroll support personnel in the schools/units.

What schools are the “best” and “worst” performers?

Off-Cycle Checks

Late HR28%

Check22%Payroll Error

17%

Other13%

Bonus7%

Late Time6%

Time Error5%

Direct Deposit2%

Late HR Transactions by School/Unit

68.4%

73.8%

87.8%

Top Quartile

Average

Bottom Quartile

Retroactive Pay Adjustment Rate

6.3%

1.2%

NYU Average

External Benchmark

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Payroll FTE Time Distribution

2.0%

22.5%

5.8%

5.8%

0.0%

30.0%

28.0%

8.0%

Training

Customer Service

Processing Time &Attendance

Processing Payroll

NYU is spending the majority of Customer Service time resolving errors and not in true,

proactive customer service

NYU Operations

Where does Payroll Operations spend time? Manual processes cause NYU Payroll personnel to spend more time than average managing key processes than average. Where does Payroll Operations spend time? Manual processes cause NYU Payroll personnel to spend more time than average managing key processes than average.

NYUNYU

NYUNYU

NYUNYU

NYUNYU

BenchmarkBenchmark

BenchmarkBenchmark

BenchmarkBenchmark

BenchmarkBenchmark

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Opportunities – Time & Labor

Description: Implement an automated Time & Labor solution

• Web-based software which automates time entry and approvals, facilitates time entry through multiple channels (e.g. clocks, online, etc.), entry and tracking of sick/vacation time, and entry of labor/cost accounting information

• Implementation of updated roles, processes, and procedures for end to end Time & Labor activity

• Managed introduction of the new technology and processes across the university

Supporting Data

• Approximately 50% of Payroll labor and cost is dedicated to time & attendance management. External benchmark average is 10%

• Manual time capture is an error-prone process. Each timesheet is manually keyed in at least 3 separate times (sometimes more depending on the school process). Even at a 99% error-free rate, there would still be 30 keying errors for every 1,000 timesheets

• NYU Payroll is significantly lagging the benchmark in terms of cost and efficiency – in large part driven by exorbitant time and attendance costs

Impact

• Up to 50% reduction in Payroll T&A personnel (3.5 of 5.5 FTE) - $200K Annual Savings

• Up to 75% reduction in School/Unit Payroll support personnel (26 of 35 FTE) - $1-2M Annual Savings

• APA estimates indicate that an electronic T&A system will produce 1-3% reduction in total hourly payroll by reducing overpayment errors and over reporting of sick/vacation time - $1.5-3M Annual savings

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Opportunities – Payroll Service Centerand Payroll Optimization

Description: Redesign the work within the central Payroll operation• Move Payroll towards a true Service Center model with a call center capability, automated tracking of calls and

cases, and better integration with related Benefits and HR activities• Redesign the Payroll Calendar with the objective of reducing the number of different pay frequencies and reducing

the total number of pay runs within a month• Move to eliminate the current process of hand delivery of checks• Implement a payment/chargeback mechanism for exception processing such as off cycle checks and garnishments• Implement operational metrics reporting to improve operational efficiency

Supporting Data• A significant portion of the school’s Payroll/T&A FTE is spent on customer service tasks such as fielding questions

on leave balances, payroll deductions and missing time• Payroll support personnel at the school level do not have direct access to the systems of record and often cannot

answer questions. These questions must be escalated to Payroll resulting in duplicate effort• The current informal system of raising issues has no tracking or reporting system and, according to our interviews,

issues are often lost and must be raised multiple times

Impact• Relieving HR/Payroll/T&A personnel at the school level from Payroll customer service responsibilities is essential for

realizing the $1.2M Annual savings from field support FTE noted previously• Employee satisfaction will increase when they are able to quickly and easily find answers to their questions. The

first person they speak to (Payroll Service Center representative) will have the knowledge and systems access to address their questions

• Shift customer service inquiries to capable, but newer Payroll employees. Current, informal system places the heaviest burden for customer service on the most experienced (and most expensive) caseworkers in Payroll who are the known contacts in the field.

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Components of a Payroll/HR/BenefitsService Center – Future Vision

Academic, Admin, and Student EmployeesAcademic, Admin, and Student Employees

Employee Portal and Online Self Service(requires implementation of PeopleSoft)

Employee Portal and Online Self Service(requires implementation of PeopleSoft)

Integrated Employee Call/Service CenterIntegrated Employee Call/Service Center

Processing Teams and Case ResolutionProcessing Teams and Case Resolution

HRIS

Service Center Tools

• Portal• Knowledge Management• Case Management (REMEDY)• Document Management• Automated Call Distribution• Computer Telephony Integration• Other

Service Center Tools

• Portal• Knowledge Management• Case Management (REMEDY)• Document Management• Automated Call Distribution• Computer Telephony Integration• Other

Payroll TeamPayroll Team HR TeamHR Team Benefits TeamBenefits Team

Tier 0 ServiceTier 0 Service

Tier 1 ServiceTier 1 Service

Tier 2 ServiceTier 2 Service

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Opportunities – HR Reengineering

Description: Reengineer HR transaction processes with the Schools and Units

• Improve end user access to information – both employee data and process/procedure documentation

• Look to more broadly distribute PASS within the Schools, down to the department level

• Look to reduce the number of approvals on a transaction

• Implement better controls/audits on Academic and Student onboarding, to reduce missed payrolls

Supporting Data

• Average percentage of late HR actions (PASS) is 74%

• Currently, only one of the schools interviewed has PASS distributed down to the department level, but they are in the top quartile (internal benchmark) of timely PASS submissions and they perform their duties with less personnel than average (1:134 ratio vs 1:88)

Impact

• Reduce percentage of late HR actions from 74% to 25%

• Reduce off-cycle paychecks by approximately 50-70% for an estimated annual savings of $100-200K

• Reduce Payroll FTE by 1 for an estimated annual savings of $50K

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Opportunities – Payroll Outsourcing

Description: Outsource the data processing components of payroll to a third party

• Shift responsibility for the data processing of some, or all, of the following components to a third party processor:

– Gross to Net payroll calculation

– Garnishment processing

– Off cycle check processing

– Check printing and distribution

– Tax reporting and processing and W2 processing

• The two different service models for Payroll Outsourcing are outlined on the next page

Supporting Data:

• Outsourcing of payroll – in the “data processing model” (see next page) would result in an 18% reduction in the annual run cost

• Outsourcing of payroll – in the “managed service model” (see next page) would result in a 16% increase in the annual run cost – given the significantly higher third party service cost associated with the “managed service model”

Impact

• Reduction of the quantity of exceptions, as envisioned in the to-be environment, would be essential in managing the ongoing run cost of payroll outsourcing

• Portions of Employee Benefits are outsourced to Towers Perrin – requiring some coordination of data flows and other aspects of service

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Payroll Outsourcing – Service Options

There are two basic service models for Payroll Outsourcing

Payroll Data Processing(modeled in Options 3,4 – see following pages)

• Outsourcer takes responsibility for the data processing associated with payroll, such as Gross to Net, Garnishments, Check printing and distribution, and Tax reporting and processing

• Client retains the responsibility for employee service, transmission of data to the outsourcer, error resolution, overall financial management and control, payroll accounting, etc.

• Market price of this service typically ranges from $50-80 per employee per year

• This is a well established and proven service model; historically more popular with smaller organizations, although a growing number of large organizations are opting for this service

• Market leaders are ADP and Ceridian

Payroll Data Processing(modeled in Options 3,4 – see following pages)

• Outsourcer takes responsibility for the data processing associated with payroll, such as Gross to Net, Garnishments, Check printing and distribution, and Tax reporting and processing

• Client retains the responsibility for employee service, transmission of data to the outsourcer, error resolution, overall financial management and control, payroll accounting, etc.

• Market price of this service typically ranges from $50-80 per employee per year

• This is a well established and proven service model; historically more popular with smaller organizations, although a growing number of large organizations are opting for this service

• Market leaders are ADP and Ceridian

Payroll Managed Service(modeled in Option 5 – see following pages)

• Outsourcer takes responsibility all aspects of payroll operation, including employee service; this model is more of a true Business Process Outsourcing (BPO) model; it is frequently marketed as an integrated Payroll/HR/Benefits BPO model

• Client only retains responsibility for Vendor Management

• Market price of this service typically ranges from $150-200 per employee per year

• This is a relatively new service offering without a strong track record of service

• Market leaders are ADP and Ceridian

Payroll Managed Service(modeled in Option 5 – see following pages)

• Outsourcer takes responsibility all aspects of payroll operation, including employee service; this model is more of a true Business Process Outsourcing (BPO) model; it is frequently marketed as an integrated Payroll/HR/Benefits BPO model

• Client only retains responsibility for Vendor Management

• Market price of this service typically ranges from $150-200 per employee per year

• This is a relatively new service offering without a strong track record of service

• Market leaders are ADP and Ceridian

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Options Overview

Option 1 – Maintain insourced payroll, automate and reengineer key processes

• Time & Labor solution (presumably Workforce)• Payroll "Service Center" and Operations Optimization• HR Reengineering

Option 2 – Outsource payroll (data processing model), automate T&L, reengineer key processes

• Time & Labor solution (presumably Workforce)• Payroll "Service Center" and Operations Optimization• HR Reengineering• Payroll Outsourcing of GTN, Tax, W2, Garnishments

Option 3 – Outsource payroll and T&L (data processing model), reengineer key processes

• Time & Labor Outsourcing• Payroll "Service Center" and Operations Optimization• HR Reengineering• Payroll Outsourcing of GTN, Tax, W2, Garnishments

Option 4 – Outsource payroll and T&L (managed service model), reengineer key processes

• Payroll Outsourcing with full “Managed Service” model; includes Time & Labor capability

• HR Reengineering

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Financial Analysis of Options

Option 1 is recommended - This option offers the lowest steady state run cost, and the best overall financials and rate of returnOption 1 is recommended - This option offers the lowest steady state run cost, and the best overall financials and rate of return

Note: see Appendix for detailed financial models of all 4 options

NOTE: the Payroll Assessment team has validated the Time & Labor implementation estimate with the NYU PMO teamNOTE: the Payroll Assessment team has validated the Time & Labor implementation estimate with the NYU PMO team

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Comparison of Annual Run Cost Estimates

Option 1 delivers the highest annual cost reduction – with the optimal combination of labor, third party, and other costsOption 1 delivers the highest annual cost reduction – with the optimal combination of labor, third party, and other costs

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Key Metrics – Before and After

Metric APA Benchmark NYU Today NYU After

Cost per check $3.44 $15.20 $8.95

Cost per employee $72.93 $304.04 $179.06

Employees per Payroll FTE 1000 293 775

Checks per Payroll FTE 26,144 5849 15500

% of Payroll time spent on time entry

6% 31% 7%

% Off Cycle Checks 1.2% 3.4% TBD

NOTE: given the inherent complexities in some aspects of Higher Education Payroll, NYU should not expect to get to the level of the APA Benchmarks, which includes all companies across all industry segments

NOTE: given the inherent complexities in some aspects of Higher Education Payroll, NYU should not expect to get to the level of the APA Benchmarks, which includes all companies across all industry segments

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Guiding Principles for ImplementationRoadmap and Projects

• The goal of the Implementation Roadmap is to strike the proper balance among multiple factors:

– Funding and ROI

– Resource availability

– Pace of change

– Timing of benefits realization

– Fit with annual University calendar

– Fit with other large University initiatives

• Each of the projects has been envisioned, with a high level estimate of effort and duration, with a holistic view of the end-to-end process – considering business process, roles, change management, etc. in addition to software installation

• Projects have been estimated using three resource types:

– NYU User: functional expert in payroll and payroll-related processes

– NYU IT: technical expert in payroll-related systems

– Contractor: external expert in software, relevant processes, and large scale project/program management

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Recommended Projects – Summary(based upon Option 1)

Project Project Components Duration (mths)

Total Workdays

NYU User – Avg FTEs

NYU IT – Avg FTEs

Contractor – Avg FTEs

Total – Avg FTEs

Time & Labor • Business process and roles design

• System configuration and customization

• Interfaces and Reports design and development

• End-to-end testing preparation and execution

• Deployment planning and execution

• Change Management and Communications

• Program Management

14 3200 2.2 4.4 5.1 11.7

Payroll Service Center/ Optimization

• Design and implement Service Center model

• Reengineer Pay Calendars

• Eliminate hand delivery of checks

• Implement payment/chargeback mechanism for exceptions (e.g. Off Cycle checks: $30)

• Design and implement Operational Metrics Reporting

12 1100 1.5 1.5 1.5 4.5

HR Reengineering

• Improve end user access to information

• Distribute PASS more broadly

• Reduce the number of approvals

• Implement better controls/audits on Onboarding processes

9 600 1.3 0.7 1.3 3.3

Note: see Appendix for more details on projects

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High Level Implementation Roadmap(based upon Option 1)

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Next Steps

• Confirm recommendations and going-forward Roadmap with key stakeholders

• Proceed with procurement of Workforce Time & Labor solution

• Begin to plan for startup of projects, for Fall 2009

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Appendix

• Project Approach

• Inventory of Interviews

• Detailed Financial Analysis of Options

• Project Descriptions

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Timeline and Activities

Benchmark and Conduct Options Analysis

1

Kick-offManage Project

Status Findings/Q&A Final Report

Week

Develop Roadmap &Define Next Steps

• Conduct interviews across payroll, business and IT

• Analyze current data• Inventory and prioritize

opportunity areas

The payroll assessment work was conducted over a 6 week period and included the following activities and work products

2 3 4 5 6

Ac

tiv

itie

sW

ork

Pro

du

cts

• Interview notes• Prioritized

Opportunities Inventory

Conduct CurrentState Assessment

Findings

• Revised Prioritized Opportunities Inventory

• Develop roadmap and financial analysis of

options• Define next steps• Present final assessment

• Conduct follow-up interviews (as needed)

• Continue analyzing data

• Update inventory and priority (as needed)

• Roadmap and financial analysis of options

• Next Steps• Final Assessment Summary

• Benchmarks• Options Analysis• Findings Summary (DRAFT)

• Compare to benchmarks and leading practices (where applicable)

• Conduct an options analysis including costing

• Summarize

• Socialize findings and incorporate feedback

• Findings Summary (FINAL)

Phase 0

Pre-Assessment

• Define Data Requirements

• Collect and Distribute Data

• Plan and Prep for Assessment

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Approach

The project approach consisted of three main phases of work

Conduct Current State Assessment

Develop Roadmap and Define Next

Steps

Benchmark and Conduct Options

Analysis

• Analyze current data that will aid in obtaining a deeper understanding of NYU’s current Payroll environment including systems, processes, issues, level of complexity, volumes, metrics and current operating costs

• Conduct interviews across Payroll and areas that touch payroll and across business and IT to obtain a further understanding of the current environment, issues and opportunities for improvement

• Inventory and prioritize opportunity areas

• Analyze prioritized opportunities and compare to benchmarks and leading practices where applicable

• Conduct a sourcing options analysis (including costing) leveraging Accenture’s Global Estimating Models and experience in working with 3rd party payroll providers

• Summarize findings, opportunities, options analysis and recommendations

• Interactively present findings and incorporate feedback• Create a roadmap to address recommended changes• Develop a financial analysis of options• Define next steps

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Inventory of Interviews

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Option 1 – 8 Year Financial Model

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Option 2 – 8 Year Financial Model

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Option 3 – 8 Year Financial Model

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Option 4 – 8 Year Financial Model

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Time & Labor ImplementationProject Summary

Objectives To implement a web-based solution to automate the end to end process associated with Time & Labor data entry and management, including the management of Sick/Vacation time and the management of cost accounting information

Scope A Time & Labor solution to enable the NYU Student and Administrative workforces; will also enable the process within the central Payroll organization to collect, verify, and submit time data into the payroll process

Key Benefits • Reduces by 70-80% the effort and cost associated with the current manual activity

• Automates the interpretation of raw time data into the proper earnings categories

• Enables systematic tracking of accrual balances (i.e. Sick, Vacation)

• Enables multiple channels for data entry such as clocks, online entry, etc.

Project Components • Business process and roles design

• System configuration and customization

• Interfaces and Reports design and development

• End-to-end testing preparation and execution

• Deployment planning and execution

• Change Management and Communications

• Program Management

Estimated Duration 14 months

Estimated Workdays 3200 workdays

Average Staffing • 2.2 functional/user FTEs

• 4.4 NYU IT FTEs

• 5.1 vendor/contractor FTEs

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Payroll Service Center/OptimizationProject Summary

Objectives To improve the operational efficiency and cost performance of the central Payroll operation; to improve the effectiveness of customer service to the NYU workforce

Scope The project is focused on all aspects of the Central payroll department’s processes, detailed procedures, and roles; also included in scope is the interaction between Payroll and the University on customer service and issue resolution; potentially the new model will be integrated with the customer service aspects of NYU Employee Benefits and HR services

Key Benefits • Improves payroll processing efficiency and drives down operating costs

• Provides for systematic tracking of employee inquiries and cases

• Provides more seamless, integrated service for employees

Project Components • Payroll Business process. procedure, and roles design

• Operational metrics resport design and development

• Service center tools (e.g. case tool, telephony) configuration and implementation

• Pay calendar reengineering and simplification

• Check distribution simplification

• Chargebacks design and implementation

• Change Management and Communications

• Program Management

Estimated Duration 12 months

Estimated Workdays 1100 workdays

Average Staffing • 1.5 functional/user FTEs

• 1.5 NYU IT FTEs

• 1.5 vendor/contractor FTEs

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HR ReengineeringProject Summary

Objectives To implement a series of process, education, and technology capabilities which will serve to streamline and accelerate the processing of HR transactions and also improve the quality and accuracy of the transactions

Scope The scope is focused on the HR transactions that directly affect payroll processing; most of the effort would be focused on the Schools/Units and how they process transactions

Key Benefits • Reduces cycle time for HR transactions

• Improves quality/accuracy of HR transactions

• Reduces downstream payroll errors/exceptions

Project Components • Design and implement end user support materials (to facilitate timely and accurate processing)

• Design and implement an approach to distribute PASS more broadly across Schools/Units

• Evaluate and design ways to reduce the number of approvals on a given transaction

• Design and implement a quick hit solution (process and/or technology) to prevent new hires from being “missed” on payroll

• Change Management and Communications

• Program Management

Estimated Duration 9 months

Estimated Workdays 600 workdays

Average Staffing • 1.3 functional/user FTEs

• 0.7 NYU IT FTEs

• 1.3 vendor/contractor FTEs