Leveraging Best Practices in Compensation Administration for Optimal Results

1. Leveraging Best PracticesCompensation Administration Presented to:Lawson Software, Inc. / City of Columbus, Ohio William Bacote Manager The Hackett Group March 27, 2008

2. Objectives and Expectations • Examine current process efficiency, effectiveness, and structure • Understand current gaps to best practices, and service delivery model considerations through examination of Hackett Best Practices • Begin the development of a best practices scorecard

3. Best Practices Defined:A Hackett-Certified Practice is a proven technique that delivers measurable value • Aligns with strategy • Reduces costs • Improves productivity • Promotes timely execution • Enables better decision making • Leverages existing and exploits emerging technologies • Ensures acceptable levels of control and risk management • Optimizes skills/capabilities of the organization • Promotes collaboration across the extended enterprise Hackett’s Best Practices are certified when there is a correlation with world-class performance metrics

4. Best Practice Scorecard Strong Usage No Usage Applicable Yes Adoption of the best practice is in line with current/future business needs No Best practice does not fit the current business needs Coverage HighWidespread impact on the enterprise and/or significant value-add MediumImpacts multiple areas, value-add is significant but less relative to processes ranked as High Low Impacts a single area of has limited span of adoption throughout the enterprise Comments Statements pertaining to the technology enablement, policy enactment and other challenges and/or prerequisites associated with improving the utilization of the Best Practice

5. Best Practice Session

6. Compensation Administration – Process Overview ProcessDefinition – The process of administrating and executing all compensation, including hourly, salary, commissions, and executive; in accordance with organizational policies, business practices and government regulations Major Activities • Collection, coordination and maintenance of the required knowledge, skills, and abilities • Job credential establishment and evaluation • Administration of Merit Review Program   • Job Analysis / Job Evaluation • Support position and skills pricing • Establishment, tracking and execution of temporary labor pay practices • Communication and implementation of annual pay programs • Administration and training support for new compensation programs   •  Management reporting specific to Compensation administration • Administration of all compensation including • Administration of all fixed and variable elements (e.g. base pay, commissions, bonuses, stock options, and allowances) • Administration and execution of hourly, salaried, expatriate and executive compensation • Administration of relocation • Administration of stock options

7. Compensation AdministrationBest Practice Review – Summary Results

8. Compensation Administration – Best Practice Assessment

9. Compensation Administration – Best Practice Assessment

10. Compensation Administration – Best Practice Assessment

11. Compensation Administration – Best Practice Assessment

12. Compensation Administration – Best Practice Assessment

13. Compensation Administration – Best Practice Assessment

14. Compensation Administration – Best Practice Assessment

15. Compensation Administration – Best Practice Assessment

16. Compensation Administration – Best Practice Assessment