Amendment 10 People First Overview

1. Amendment 10People First Overview June 12, 2008

2. Today’s Meeting • Housekeeping • Please turn off or put on vibrate all cell phones or blackberries • Restroom break – whenever you need it • Break – 2:30 • Purpose • To ensure that you have a a very good understanding of what Amendment 10 means to the State, and its impact to you and your employees • Expectations • Acknowledge past challenges, but let’s stay focused on the future • Forward thinking • Ask questions • Agenda / Handouts

3. Background • Product • Brand: People First • Purpose: Human Resources & Benefits Administration Tool • Software: SAP, Oracle • Service Provider: Convergys • Two Call Service Centers • Over 232,000 Users • Replaced 20-year-old Mainframe-Based COPES Application. • Largest and Most Comprehensive State Government HR Outsourcing in the U.S.

4. Current Contract Section 9.34 “The Department acknowledges and agrees that the Department is contracting with Service Provider for Service Provider to provide Services only and not for Service Provider to create or develop anything.”

5. Current Contract • Normal Contract Expiration – August 20, 2011 (39 months away) • No License to Modify the Intellectual Property Created by Convergys • Limited Transition / Migration Services • System in Need of Additional Enhancements

6. Timeline: Past to Current

7. Amendment 10 Highlights • License to Use and Modify Intellectual Property (i.e., People First System) • Enhanced Transition Planning at the end of the Contract • 135 System Enhancements & Upgrades • People First System Security Improvements • Potential Long-Term Cost Savings

8. License to Intellectual Property:New Option • Before Amendment 10: The state would have to build a new HR system from the bottom up (estimated to cost $65 - $90 million) • After Amendment 10: The state has a choice to either build a new HR system from the bottom up OR use and modify the existing People First system

9. License to Intellectual Property: Expiration / Termination Scenarios • Go to Contract Expiration (August 2011) • License to Use and Modify Intellectual Property (all custom code) • License at No Additional Cost • Event of Service Provider or Department’s Default • DMS Receives License to Use and Modify Intellectual Property for a Cost (based on remaining amortized value) • Termination Due to State’s Non-Appropriation of Funds • DMS does NOT Receive License to Modify Intellectual Property

10. Amendment 10 Highlights • License to Use and Modify Intellectual Property (i.e., People First System) • Enhanced Transition Planning at the end of the Contract • 135 System Enhancements & Upgrades • People First System Security Improvements • Potential Long-Term Cost Savings

11. Transition Planning • Start/End Date Flexibility • License Becomes Effective Immediately • System Freeze • Migration Services • Post Transition Consulting Services

13. Amendment 10 Highlights • License to Use and Modify Intellectual Property (i.e., People First System) • Enhanced Transition Planning at the end of the Contract • 135 System Enhancements & Upgrades • People First System Security Improvements • Potential Long-Term Cost Savings

14. 135 System Enhancements • Highlights: • SAP Upgrade • User Role Code Security Matrix • Interagency Movement Process (PAR) • Timesheet Enhancements • Leave Payout Screen • Data Warehouse & Reports Redesign • Sign In and Homepage Redesign • Releases Over the Next Two Years

15. Trade-offs • 35 Services No Longer Required • Personnel Files Imaging • Organization Charts • Knowledge Management System (KMS) • Performance Management System – evaluation/appraisal form • Release of Liability from Past Claims

16. Amendment 10 Highlights • License to Use and Modify Intellectual Property (i.e., People First System) • Enhanced Transition Planning at the end of the Contract • 135 System Enhancements & Upgrades • People First System Security Improvements • Potential Long-Term Cost Savings

17. Security Improvements • Background Checks – More Stringent • Annual Affidavits of Compliance • Subcontractor Approval • Security Breach Notification • Dedicated Security Officers • System Security Improvements • 10 Inspector General Recommendations

18. Amendment 10 Highlights • License to Use and Modify Intellectual Property (i.e., People First System) • Enhanced Transition Planning at the end of the Contract • 135 System Enhancements & Upgrades • People First System Security Improvements • Potential Long-Term Cost Savings

19. Potential Long-Term Cost Savings • No Cost Impact for the Contract Changes • New Option to Use and Modify Existing People First system • Shorter Transition Period if Decision to Build Upon Existing People First System • Determine Cost with RFI/RFQ

20. Future Scope • Step 1: Plan-it-Forward Project • Step 2: Comprehensive HR Strategic Plan • Step 3: Business Case for HR System 2.0 • Step 4: Procurement Consulting Services • Step 5: System Transition Services • Step 6: HR System 2.0 Contract

21. Planning for Future Success • Listening to Our Customers and Stakeholders • Determining the Right Mix of In/Out Sourcing • Following a Comprehensive Plan • Learning from Past Challenges and Experiences • Learning from Other HR Transformation Projects • Council for Efficient Government Recommendations

22. What Can You Do To Assist? • Agency Senior Leadership and Managers: • Support the Transition and HR System 2.0 • Executive Office and Legislature: • Key Policy Decisions and Resources • HR Professionals: • Support the Transition and HR System 2.0; System Testing, Communication, and Training

23. Thank You David DiSalvo DMS People First Project Director David.DiSalvo@DMS.MyFlorida.com 850-413-9579