Human Resources Leadership Meeting February 11, 2005 Building the Human Resources and Payroll...

Human Resources Leadership Meeting

February 11, 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 JADS Process Owners OSP HR Leaders

Project Team Linda Hudson Shannon MacFarlane Lowell Magee Bradd Craver Dorie Kehoe Edward Brodsky

3

Agenda

Welcome, Introductions and Agenda

SBIP Program Background

HR/Payroll Project Overview

Vision Overview

Process Session Reviews NC Print Process Flows Process Requirements Process Summaries

Change Management/Communications

Questions

Action Items Review

Adjourn

4

Program History

•Session Law 2001-491 directed the Office of the State Controller (OSC) to determine the feasibility of developing and implementing a new business infrastructure for the State. The systems included in the State Business Infrastructure Study (SBIS) supported the following business functions: financial management, cash management, payroll, human resources, budget management, procurement, treasury, retirement, and revenue accounting.

•The study concluded that continued use of the current business systems may adversely impact the fiscal integrity of state government, as well as the efficiency and effectiveness of its operations. Therefore, the State decided upon a replacement strategy that carefully weighs the risks of potential system failures with the current State budget condition and State funding priorities. The strategy involves an extended implementation approach with the first focus on replacing the Human Resources and Payroll Systems. Ratified Senate Bill 991 appropriates funds to implement this strategy.

•Both summary and detail report information can be accessed on the SBIP Website which is located on the Office of State Controller web site: http://www.ncosc.net/SBIP/SBIP_Index.html

5

Statewide Business Infrastructure Program (SBIP)

Legend: Current ProjectPast Projects Upcoming Projects

Past Projects Current Project Upcoming Projects Future Projects

Financial & HR Business Infrastructure Study Phase 1

Inventoried present systems and provided assessment of technical and functional capabilities

Financial & HR Business Infrastructure Study Phase 2

Provided a blueprint for viable implementation options and a recommended course of action

HR/Payroll Planning Project

•Identify process re-engineering and structure

• Develop integration strategy and risk analysis

• Develop business requirements

HR/Payroll Bid Preparation Project

• Develop bidding document for implementation

• Select Vendor for HR/Payroll Implementation

HR/Payroll Implementation Project

• Implementation

Statewide Business Infrastructure Project – Budget & Financials

Statewide Business Infrastructure Project – Tax & Revenue

SBIP Data Warehousing Planning Project

• Develop needs assessment

• Confirm Scope

• Develop implementation timeline and approach

• Develop business requirements

SBIP Data Warehousing Implementation Project

• Implementation

Future Projects

6

HR/Payroll Project Overview

Planning Planning Implementation Begins

Implementation Begins

RFP Development

RFP Development

•Identify HR and Payroll business and functional requirements

•Develop business process flows

•Execute a formal bidding process.

•Confirm HR/ Payroll strategy for implementation

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

7

High Level Project Timeline

HR – Group I

• Personnel Administration

• Recruitment• Applicant Tracking• Disciplinary Action and

Complaint Management• Incident and Accident

Tracking• Exit Interviews• Competency Based HR

Management• Performance

Management• Training Administration

HR – Group II

• Compensation Management

• Job and Salary Surveys

• Position Evaluation Analysis

• Benefit Administration

• Workforce Analytics• Organizational

Management• Employee Self

Service• Leave Tracking

Payroll

• Payroll Administration

• Payroll Processing• Labor Cost

Distribution• Time Collection &

Management• Budget Support

Technical

• High level technical requirements

• Security• Infrastructure• Integration

Plan ExecuteVision Close

• – Project Status Report– Final Deliverables– Offsite Working/Holiday

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

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

• • • • • • • • • • • • • • • • • • • • • • •

Group I

Group II

Payroll

Change Management

Technical

Date

Project Management

Month Dec

Project Week

Human Resources

Nov Jan Feb March Apr

8

What are the current risks and why should we act now?

Risk of payroll system failure resulting in delayed payments to over 80,000 state employees

Retiring HR/payroll system support staff– Inability to maintain current systems due to retirement of system support staff– Limited resources with the knowledge required to maintain existing technology

Future labor market competition and an aging state workforce– Current recruitment and retention capabilities need to be improved to address

forecasted labor and skills shortages associated with retiring baby-boomers– Next generation of employees will demand online visibility to HR and payroll

details

State of North Carolina Employee Statistics

Implementation of new system will be a multi-year effort

– The risks associated with the current systems will increase each year until the outdated systems are replaced

North Carolina is lagging behind state and private sector systems and process trends

9

HR/Payroll Project Vision and Goal

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

10

HR/Payroll Project 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 State’s 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

11

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

Why Transform NC’s HR/Payroll?

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

12

HR Leadership Pain Points

What are the HR system and process issues that your agency is facing?

13

JADSession

JADSession

IndustryBest PracticesProcess Designs

State of NCProcess Designs

• Review Process/Subprocesses• Identify Activities• Identify Opportunities

• HR/Payroll Business Requirements

• Future Processes• Business

Impact/Benefits• Potential Barriers• Performance

Measurements

• Project Vision• Scope• Industry Best Practices

JAD Session Objectives

14

What is IndustryPrint™?

IndustryPrint™ is a tool used to represent a logical and sequential collection of best business practices in a graphic format. The three main symbols used in the graphic displays are:

Process: A group of activities in performed by an organization. Manage Human Resources is one of these processes

Subprocess: A subprocess is a segment of a core process that focuses on a single business area. For example: Train Workforce

Business Activity: A business activity is a breakdown of a subprocess that produces a measurable result. For example: Deliver Training

Manage Human Resources (HR)

ManageCompensation

(HR-070)

Maintain Classifications(HR-070-060)

15

Why Do We Use IndustryPrint™ ?

Activities are arranged in activity flow diagrams

Components of the activityflow diagram include: • Activities• Decision points• Subprocess connectors

16

HR-070 Manage Compensation and Classification

Document Employee Data

Change

Adjust Employee Payroll

Conduct Job and Salary Analysis

Plan and Budget Salary Changes

Approve Salary Plan and Budgets

Document Employment Salary Data

Changes

Notify Employees of

Salary Changes

Approve Employee Pay

Actions

Maintain Classifications

Prepare for and Administer

Annual Increases

HR-050Manage Recruiting, Hiring and Integration

Approve Employee Promotion/

Transfer/Status Change

Maintain Pay Policy, Plan and

Structure

HR-010Define Human Resource Strategy

HR-040Career and Succession Planning


HR-020Plan and Manage HR Programs and Plans

HR-080Maintain Benefits and Enrollment


17

HR Process Reviews

HR Process JADS Process Owners

Group 1

Career and Succession Planning Pam Frazier (Information Technology Services)

Manage Recruiting, Hiring, & Integration Helen Dickens (Department of Transportation)

Develop and Train Workforce Ann Cobb (Office of State Personnel)

Monitor Employee Health & Safety Mike Chapman (Office of State Personnel)

Manage Labor and Employee Relations Drake Maynard(Office of State Personnel)

Manage Employee Separation Betty Smith (Dept of Health and Human Services)

Group 2

Plan and Manage HR Programs and Plans Gary Fisher (Office of State Personnel)

Design and Maintain Organizational Structure Joe Stroup (Dept of Environment and Natural Resources)

Manage Compensation and Classification Duane Hinkle (Office of State Personnel)

Maintain Benefits Enrollment Pani Tademeti (Office of State Personnel)

Administer Benefits Pani Tademeti (Office of State Personnel)

18

Career and Succession PlanningHR-040

Determine Key Skills and Attributes

Associated with Each Position

Assess Employee Skills and Attributes

Establish Career Plan

Determine Employee Training Needs

Assess Employee Development

Develop a Succession Plan

Determine Employee Development Needs

Develop Competency Model

HR-030Design and Maintain Organizational Structure


HR-060Develop and Train Workforce

HR-070Manage Compensation and Classification


19

JAD Session HighlightsCareer and Succession Planning

Process Overview Career planning is centered on developing

an employee's competencies, and helping to prepare an employee for the next steps in his/her career.

Succession Planning involves looking at future vacancies in the organization and identifying steps the organization can take to prepare. It can include looking to fill a specific future vacancy or identifying activities to mitigate a general loss of multiple key skill leadership positions.

Improvement Opportunities Conduct organized career and succession planning across the state A standardized and exhaustive list of skills that span across all

agencies A consolidated procedure and process throughout the State for

career and succession planning as it currently seems to be fragmented and informal

A statewide competency modeling effort rather than independent agency efforts

Potential Barriers Moving to competency based hierarchy will be difficult Allowing employees to enter their own skills may cause employees to

‘over-inflate’ skills when they are directly related to compensation level

High potential employees cannot be flagged and high performers cannot be groomed for a position due to legal limitations

Benefits Ability to identify individuals within the State who may be well suited to fill upcoming leadership gaps Allows employee to enter skills that are not related to a specific job, which will empower both employees and managers in

locating needed proficiencies Gives employees ownership of their careers and gives managers tools they did not have previously Positions the State as a competitive employer, particularly with the coming labor shortage Allows HR to function as it is truly intended Improves decisions on how to most effectively use a limited training budget Enables accountability on the use of training dollars

20

Develop and Train WorkforceHR-060

Develop Individual Employee Training

Plan

Perform Employee Skill Assessment

Offer CoursesReceive Employee Enrollment Request

and Approvals

Enroll Employee in Training Course

Course Available and Minimum

Enrollment Achieved?

Manage Cancellations and Changes

Generate Course Confirmation Information

Deliver Course Materials

Deliver TrainingComplete Course/

Instructor Evaluation

No

Yes

Plan CoursesDevelop Training

Materials

Perform Follow-up Activities

Maintain Employee Training Record

P-010Develop Procurement Strategy

IT-070Support and Train Users


IT-070Support and Train Users



D-010Develop Licensing, Permitting, and Accreditation Policies, Procedures, and Strategies

Develop Organizational Training Plan

21

JAD Session HighlightsDevelop and Train Workforce

Process Overview The objective of this process is to

design and deliver training, education, and development programs to effectively improve skill levels to meet current or future business plans.

This includes: – assessing current skills inventory to

determine training and development requirements

– creating development plans to achieve or maintain desired skills and corresponding competency levels

Improvement Opportunities Employees directly view their training history and enroll in new

courses via ESS All internal training tracked in one consolidated system Mandatory courses can be standardized Pooling of trainers to teach standardized courses

Potential Barriers Access to a computer or high speed networks Supervisor’s fear of employees having too much independence Elected officials and political appointees may fear the loss of control

due to ESS/MSS

Benefits Improved decision making Comprehensive training record Real-time data Employees have direct access to manage their own

careers Training is linked with new competency-driven pieces

Good networking tool among agencies Better informed supervisors Opportunities for group purchase of training materials Training records automatically updated upon completion of

training

22

Monitor Employee health and SafetyHR-120

Establish and Distribute Health and

Safety Guidelines

Receive Incident Calls/Complaints

Investigate Incident

Document Incident

Obtain Medical Care and Record Diagnosis

Is Employee Filing Claim?

Manage Employee Claim

File Claim with Provider

Identify Causes and Corrective Actions

Yes

No

Conduct Safety Inspections

Monitor Employee Health Restrictions and Rehabilitation

PlansHR-010Define Human Resource Strategy



23

JAD Session HighlightsMonitor Employee Safety and Health

Process Overview Implement plans and practices that

ensure the organization consistently meets government reporting requirements related to health and safety

Track work related incidents and their outcomes

Develop incentives that promote a safe work environment

Improvement Opportunities Completing and approving forms via workflow Application of SIC and more discrete codes at the job level for

improved reporting Tracking the types of incidents across jobs as well as within an

agency

Potential Barriers All employees do not have access to computers Agreement on common data elements may be difficult Industrial commission makes frequent changes in requirements Need to determine who is going to pay for this going forward Security of system if all data is in one place DOT does not use the same Third Party Administrator that other

agencies use

Benefits Reduced clerical burden Focus on solving problems, rather than gathering

information Better able to measure the improvements with better

information Increased efficiency Cost savings through reduction in Worker’s

Compensation overpayments

More open communications between employees and

supervisors Cost savings from electronic transactions Save physical space with reduction in paper Managers more involved with safety through ESS Ability to flag salary continuation that the supervisor can turn

on and off

24

Manage Labor and Employee RelationsHR-130

Receive Training on Labor Law

Manage Union to Non-Union Employee Communications

Manage Communication with

Employees

Negotiate Collective Bargaining Agreement

Monitor Adherence to Agreement

Requirement

Conduct Employee Surveys

Perform Performance Appraisals

Manage Relationship with Unions

Monitor/Resolve Grievances




25

JAD Session HighlightsManage Employee Relations

Process Overview This process includes managing

communications with employees as well as monitoring and resolving grievances, disciplinary actions, and discrimination complaints.

It also includes activities around performance appraisals

Improvement Opportunities Consolidated data in one system Automatic notifications for follow up activities Make grievance policies more proactive Consolidated data should make it easier to identify trends

Potential Barriers Access to computers and other infrastructure issues Agencies currently have different processes People are resistant to change and will need extensive training Terminology differences Fear that data will be used to hold up progress, rather than for its

intended purpose Managers may not be ready for the accountability Employees may not trust their managers

Benefits The ability to spend more time on people activities and less time on administrative activities Better data should make it easier to identify trends Better business intelligence will be available Data is more readily available for decision making The ability to accomplish things at the lowest level Connect previously disjointed systems

26

Manage Employee SeparationHR-140

Receive Separation Notice

Determine Type of Separation

Voluntary Separation?

Provide Counseling for Separated Employee

Collect Organization Property

Perform Exit InterviewDistribute Separation Benefit Information

Calculate Unused Leave and Final Pay

Separation Activities

Complete?

Perform Final Pay

Yes

No

No

Yes


HR-110Pension Administration

27

JAD Session HighlightsManage Employee Separation

Process Overview The objective of this process is to manage

voluntary and involuntary employee terminations, including performing exiting activities and recording separation data.

Activities may include collection of employer property, packaging of severance or other separation packages, and discontinuance of benefits

Improvement Opportunities Sending out an acknowledgement of separation with frequently asked

questions and benefits contact information When an employee is moving between agencies, handle the process

as a transfer rather than a separation Have a checklist for hiring and separation Workflow notifications to appropriate parties (security, fixed assets,

etc.) when an employee is separated

Potential Barriers Access to computers and computer literacy Different technology infrastructure at agencies Challenge to reach a consolidated decision on some issues Employees currently see the agency as the employer, rather than the

State of North Carolina as the employer

Benefits Ability to transfer between agencies and to take

employment “history” with employee Ability to report turnover on a state level with real time

information, leading to better workforce planning Ability for employees who have a leave of absence or are

rehired to keep historical information Better tracking of property should increase recovery from

separating employees

A system-generated separation letter should reduce

the number of follow-up questions and grievances and provide a better information trail

More transparent and less onerous for employees Automatic workflow notifications when someone

leaves so no step is forgotten Separating employees are left with a positive

experience

28

Manage Recruiting, Hiring, and IntegrationHR-050

Analyze and Create Job/Position

Source Candidates Internally

Source Candidates Externally

Qualify and Select Candidates

Perform Psychological Profile/Drug Testing

Extend Offer and Manage Offer Process

Is Offer Accepted?

Document Offer Process and Lessons

Learned

Selection Process Appealed?

Address Inquiries and Complaints

Track Employee Data and Tax Withholding

Preferences

Perform Employee Orientation

Assign Property

No

Yes

No

Yes

Verify Employment

H-010Enroll Members and Set-up Accounts

Receive Candidate Decision (Acceptance/

Rejection)


M-020Identify Maintenance Structure


HR-060Develop and Train Workforce

HR-070Manage Compensation and Classification


HR-110Pension Administration


29

JAD Session HighlightsManage Recruiting, Hiring and Integration

Process Overview Develop and implement processes,

systems and controls to ensure appropriate selection, hiring and placement of staff

Manage current and future position openings through effective processes in identifying best-qualified candidates

Manage the assimilation of new employees into the organization

Improvement Opportunities Create a single site to submit applications to any State agency Allow online application Provide automated screening of applicants Streamline workflow enabled position approval

Potential Barriers New terminology (jobs vs. positions vs. classifications) Access to computers Subject Matter Experts felt it would “be difficult to make changes in

the bureaucratic environment” Changes in laws, policies, and processes may affect the re-design of

system Hesitation to leave current system to new consolidated system

Benefits Less confusion for applicant More meaningful and useful reports Data entry process would be easier More data consistency More flexibility in making changes and corrections Self-service resulting in less paper work Improve image as an effective state government

More responsive and greater interoperability among

agencies State seen as more attractive and competitive employer Meeting expectations of younger generation Increased sharing of information between agencies Ability to attach documents to records (resume)

30

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

31

What is Change Management?

Change Management, as it pertains to projects like this, is primarily about: Building and sustaining a leadership coalition to guide successful project

completion Reducing long-term costs of the project Fully understanding and softening the impact of changes to affected

employees Ensuring that behavioral changes brought about by the project are “made

to stick” Bringing about higher organizational performance as a result of the project Reducing risks related to:

– Disruptions in productivity and customer service– Missing project time and budget targets– Misalignment of expectations

Metaphorically, Change Management is… The grease that makes the project (and the resulting new business

processes) run more smoothly, and The glue that gives the project a sustainable, valuable impact

32

The Change Curve – change is difficult, but it can be managed

Bail Out?“This is not something I

want to be a part of.”

Key to Success: Reduce the duration of the trough, and accelerate the upslope via a well-planned and executed change management program.

Time

Uncertainty“What does this mean for me?”

Resistance“I can’t work with all of this uncertainty

and turmoil.”

Adaptation“This is hard, but we

can do it.”

Organizational Performance

Baseline

Commitment“This was the right thing to do.”

Withdrawal“I’ll do what is

necessary to survive.”

33

Keys to success in Change Management programs

The keys to building and implementing a successful change management program include, among others: Develop and adhere to a set of guiding principles to drive your change

strategy Build and foster an extensive change network of leaders and employees

with clear roles in championing the case for change Understand your stakeholders, their interests, their needs, and their

motivations…and communicate with and involve them accordingly Communicate, communicate, communicate – develop a well-thought-out

communication plan and execute on it Develop and sell a compelling business case that works at multiple levels –

management, employees, and other stakeholders Empower all project team members with a full understanding of change

management and how they, as members of the “change team”, must promote the change strategy

Surface dissatisfaction and dissension and address it early

34

Communicate for Buy-in

Empower Action

Create Short-term Wins

6644 55

Don’t Let Up

Make it Stick

77 88

Build the Guiding Team

Get the Right Vision

22 3311

5 Kotter, John P. and Cohen, Dan S. The Heart of Change. Boston: Harvard Business School Press

Engaging and enablingEngaging and enablingthe whole organizationthe whole organization

Creating aCreating aclimate for changeclimate for change

ImplementingImplementingand sustainingand sustaining

changechange

Change Management Framework: The 8 Steps of Change

Increase Urgency

35

HR Leadership Action Items

March 15, 2005 – Next HR Leaders Meeting Review JADs HR Group 1 Summary

– Submit comments to Gary Wiggins by 2/25/2005 at ([email protected])

Human Resources Leadership Meeting February 11, 2005 Building the Human Resources and Payroll...

Documents

Transcript of Human Resources Leadership Meeting February 11, 2005 Building the Human Resources and Payroll...