PersPay Modernization Personnel Service Delivery Transformation and PASS Transfer Update

1. PersPay Modernization Personnel Service Delivery Transformation and PASS Transfer Update Prepared by: Personnel Service Delivery Transformation Office (PSDTO/BUPERS-26) 28 March 2012

2. Navy Pay and Personnel Today and Tomorrow Alignment • Too many business/process owners • Fragmented policy, process & execution • Weak accountability • Single business process owner = CNP • PASS Program transition Modernization • Process & Management Controls • Authoritative Data Environment • ADA Violation • IT Systems empowering Sailors • Business Process Driven Approach Transformation • Face to Face Delivery Model • High cost >$56 per transaction • Wet signature, paper forms processes • 1:11 HR headcount ratio (HR:Sailor) • $7,824/Sailor, HR headcount investment • Transactional Volume/Impact Approach Est.

3. BLUF - Leadership Perspective • Problem Statement:“First, the organization and management of Navy Personnel and Pay policy, process and execution is fragmented across multiple entities.” - Robert O. Work, Under Secretary of the Navy, 18 Oct 10 • Guidance:“I ask that you assign an end-to-end business process owner for Personnel and Pay who will…Resolve governance and organizational alignment issues …. “ - Robert O. Work, Under Secretary of the Navy, 18 Oct 10 • DCNO (MPT&E) (N1) “…designated as Navy’s end-to-end business process owner for Personnel and Pay matters. To this end, you will ensure the most effective alignmentand integration of requirements across the Navy, and/or de-conflict divergent priorities, as appropriate.” - ADM J.W. Greenert, Vice Chief of Naval Operations, 16 Dec 10 Changing the nature of the work

4. Pers/Pay Modernization Timeline FY 13 FY 12 Workflow, E-Forms, Digital Signature Navy Performance Appraisal Reporting System (80% reduction in paper forms, error rate reduction 25% to <3%, OMPF updates within 48 hours) Automated self-service capability Record of Emergency Data/Dependency Application (Audit readiness for entitlements, sailor self-service, reduced manual effort) Personnel BPIs Enhanced Drill Management (Reduction of $600M RPN audit risk, reduced Navy Reserve labor, increased accuracy of drill muster) Auditable records for drill pay, automated self-service Standardized, auditable order writing PCS Round-up (Reduction of ADA $200M MPN risk, increased audit readiness for all PCS orders, reduction of manual order writing) Data Establish Authoritative Data Environment & Enterprise Service Bus Retirements & Separations BPE and Rqmts Development: 2yr effort, policy, process and materiel solutions developed and implemented FY15 Personnel BPE Follow-on Increment: BPE and Rqmts development Dev Inc 2 FM/Pay BPE Model FM/Pay As-Is processes Model To-Be FM/Pay processes

5. PSDT Methodology Standardize PSD’s have done some of this work Points of Service/Methods will continue to evolve Process Maps should be developed Centralize Identification of highest impact processes Business Case analysis is critical to get this right Validation of Process Maps (lean process, employ CPI) Automate Highest level of process detail required IT is important but NOT the deciding factor Demonstrate ROI to inform and validate investments Measure Timeliness, quality on a per transaction basis Impact on labor processes ROI impact GOAL: Execute Sailor’s intent

6. How Initiatives are Identified Oct 2011 Data Oct 2011 Data Reserve Pay Transactions on average ~ 25% of Navy Total Pay Transactions Nov 09 – Timeliness standard changed from 30 to 60 days Holistic look at transactional volume and timeliness identifies those business processes with greatest ROI potential and impact

7. PSDT/PASS MILESTONES & INITIATIVES FY12 FY13 OCT11 DEC11 FEB12 APR12 JUN12 AUG12 OCT12 DEC12 FEB13 PASS Transfer (NLT 01 OCT 2013) SOES Fleet Implementation Deliverables Provided Requirements (FRD) NC-4 approved MOA signed E-Leave Phased Rollout mtg @ NPC (CFFC, CPF) Milestone #1 (def. “To Be” org, budget, POAM) Pre-Decisional MILPERSMAN Article Published Pre-Decisional E-Leave Afloat (CG, DDG, FFG) assessment PDI to Union N16 Working Group Start Define “To Be” Charter Business Case Analysis Establish Governance Pilot Start (notional) Draft PSDM Instruction Commence LHA Assessment Commence CVN Assessment MILPERSMAN Draft Pilot Start Final Report Union I & I Process NPARS RED/DA SGLI Online Enrollment System (SOES) Drill Management 1306/7 Automation E-Leave Knowledge Management PSDT Initiatives Portal Pilot (notional) Reserve ADSEP Centralization DD-214 Pilot Investigation Phase Human Performance Requirements Review (HPRR) PS Occupational Standards Review (CY13) Ongoing Development HR Workforce Command PASS Coordinator (CPC) Policy Guidance Investigation Phase

8. Critical to PASS Transfer Execution • MOA Approved • POA&M Approved • ‘To-Be’ organizational structure • Communicate finalized decision to unions • NC-4 preparation, collaboration and approval Next steps required for management decision on timing to shift resources 8