HR/Payroll Modernization

1. HR/Payroll Modernization PSO Board May 21, 2013

2. Agenda • Project Overview • Timeline • Efforts This Year • Procurement / System Selection • Business Process Redesign • Next Steps • University Involvement Professional Staff Organization Board Meeting

3. The HR/Payroll Modernization • Replace the existing payroll system • Implement a modern HR system • Move to standard HR and payroll processes and practices Professional Staff Organization Board Meeting

4. It Happened in 1982… • E.T. made movie history • Michael Jackson released “Thriller” • USA Today was first published • The Epcot theme park at Walt Disney World opened to the public • The Weather Channel went live • The Commodore 64 was released • UW’s HEPPS system was launched Professional Staff Organization Board Meeting

5. UW: Now & Then Professional Staff Organization Board Meeting

6. UW’s Compliance Profile has Changed Professional Staff Organization Board Meeting

7. Examples of Issues Facing UW • Writes off ~$200,000 annually in unrecovered wages • Can’t determine productivity vs. non-productivity hours • Multiple systems are used to gather time & leave • New employees experience productivity delays waiting for manual processing of access/permissions • Inability to effectively track required training Professional Staff Organization Board Meeting

8. HR/P Modernization Benefits • Improved levels of service • Accurate, timely employee data • Bandwidth to focus on strategic initiatives • Improved competitiveness • Reduced operational risk • Productivity savings Professional Staff Organization Board Meeting

9. This Impacts You • All employee information in one place • Provides updated data in real-time • Eliminates 68% of redundant processing steps now required to record time, process payroll, and update leave records • Automates open enrollment for benefits • Allows online information submissions, such as for life changes (marriage, divorce, children) • Tracks mandatory trainings and renewal/expiration of required certifications • Provides online career planning • Automates approval processes Professional Staff Organization Board Meeting

10. Timeline

11. Timeline: April 2013 – January 2014 Project Phase Stage 3 – System Demos, Cost Proposals & Contract Issues Stage 4 –Demos, Revised Costs, IPS, Contract Negotiations Secure Contact Approval from State & BOR Procurement Announce Finalists July 2013 Vendor Signs Contract October 2013 Contract Fully Executed January 2014 Workshops Complete 5/13/2013 Redesign Processes Business Process Redesign Develop & Execute on Implementation Plans Build Roadmap Results Plan Data Collection, Validation & Review Benchmarking Execute Communications Plan Communications We are here Professional Staff Organization Board Meeting

12. Timeline: 2013 - 2018 Project Phase Selection & IPS Procurement RFP Released Sept 2012 Contract Signed Jan 2014 Redesign Process Develop & Execute Implementation Plans Business Process Redesign Plan/Kick-Off Unit, System, Integration, & Regression Testing Fit/Gap Design & Implementation (Phased) Estimate 3-5 Years Parallel Processing Design Cutover Configure & Build Stabilization & Optimization Communications Training & Outreach (Phased) Production Support Improve Integration Design Professional Staff Organization Board Meeting

13. Vendor / System Selection Procurement

14. What We’re Seeking • Off-the-shelf software product • Hosted or fully managed solution (SaaS) • Use a non-customizable system • Solution that scales to UW’s complex needs Professional Staff Organization Board Meeting

15. The System Must Support… • 40,000 staff and faculty • 11,000 medical center employees • 300+ employees in 26 other countries • 4,400 graduate students with health benefits • 365+ earning types (regular, hourly, etc.) • 165+ unique pay differentials or premiums • 2,000 retirees • 9 unions representing 16,000+ employees Professional Staff Organization Board Meeting

16. Current State of Information Flow Compensation Benefits Payroll OWLS Timesheet Email Access Performance Management Development Labor Relations Succession Planning No system Hiring & Onboarding Separation Professional Staff Organization Board Meeting

17. Future State with New System Compensation Benefits Payroll Workforce Management Performance Management Development Labor Relations Succession Planning Hiring & Onboarding Separation Professional Staff Organization Board Meeting

18. A Four-Stage Selection Process Professional Staff Organization Board Meeting

19. Business Process Redesign

20. What is Business Process Redesign? • Started with industry best practices • Obtained input from UW representatives • Designed “future-state” processes Best Practice Process Inputs Process Leads Modify Process Flow (1- 4 people) Focus Group Modify Process Flow (5 – 13 people) Workshop To Review Process Flow (20 – 40 people) Professional Staff Organization Board Meeting

21. BPR Workshops Professional Staff Organization Board Meeting

22. Next Steps & University Involvement

23. Next Steps • Finalizing a detailed plan – or “roadmap” • Scope • Prioritize • Sequence • Initial projects from BPR begin this month • Open system demos for 2 finalists in August • Seeking Board of Regents and State approval by January 2014 Professional Staff Organization Board Meeting

24. Participation to Date • More than 300 people involved in BPR • 75 subject matter experts & technical / functional advisors for Procurement • 50 units involved in Benchmarking • 15 Campus Advisory Group Members Professional Staff Organization Board Meeting

25. Opportunities for Involvement Project Phase Selection & IPS Procurement Contract Signed Jan 2014 RFP Released Sept 2012 Redesign Process Develop & Execute Implementation Plans Business Process Redesign Unit, System, Integration, & Regression Testing Plan/Kick-Off Design & Implementation (Phased) Estimate 3-5 Years Fit/Gap Parallel Processing Design Cutover Stabilization & Optimization Configure & Build = provide input into process redesign = view system demos (Stage 4, August 2013) = participate in design sessions or testing Professional Staff Organization Board Meeting

26. https://f2.washington.edu/teams/hrp hrpmod@uw.edu