First Data's Roadmap to a Successful HR Transformation

1. First Data's Roadmap to a Successful HR Transformation

2. First Data's Roadmap to a Successful HR Transformation

3. Agenda • Our Company • Our Transformation Journey • Our Technology Roadmap • Our BI Strategy • Q&A

4. Company Overview

5. What Do We Do?

6. Our Products and Services

7. Landscape • We process 14,000 transactions per second, that’s 31 billion transactions per month • We process half of all US transactions • We do business in over 50 countries worldwide • One third of the company’s revenue is generated outside the US • We have over 25,000 employees and “on the ground” coverage in 36 countries • PeopleSoft evolution at First Data:

8. Our Transformation Journey

9. Global HR Technology – Our Vision A journey to become and continue as a world-class HR organization, where: • A single source of truthis provided through superior technology • An increase in quality business partnerships impacting profitability • Employees’ experiences are consistent • Talent Management is the mindset • Job satisfactionincreases • Efficiency & effectivenessis the norm • Key Enablers for our Leaders • Integrated technology suite to enable talent management and drive business results – from hiring to development to performance compensation • Real-time, single-source access to employee transaction, profiles & reporting • Simplification & globalization of HR policies and processes

10. World Class HR Technology Optimization Reduce unit costs Process E Bullet 1 § Operating Rhythm and Infrastructure Change Management Global HR Transformation – Pillars for Success Process Excellence HR Globalization • Globalize HR structure • Role Clarity • Seamless partnership • Optimum leverage of Global HRSC for all global issues • Near shore & cost effective resolution for local issues • Process and policy harmonization • Process ownership • Consistent tools & process methodology leveraged globally • Metrics and control plans • PeopleSoft upgrade • Payroll consolidation • Robust self service tools • Enabled full talent management suite • Case management • Technology governance

11. Best Best Practice Practice Our Process Excellence Journey The Summit Advantage Shareholder Value & Quality Leadership Level 5 Cultural Shift 5 • Cultural Process Excellence • Customer focused Process Focus Data Driven Customer Voice Integrated Teams Leadership Functional Focus Active / Reactive Internal View Silo Activity Hero Level 4 4 • Data driven accountability • Operating rhythm Level 3 3 • Project Teams Level 2 • Continuous Improvement • Process Owners • Measurement 2 • Coaching • Reward Structure Level 1 • Leadership • Process Model 1 • Process Toolbox • Process Competency 0

12. Enabling Our Transformation – Process View Payroll Processing Current State: • Disjointed employee & manager experience • Inconsistent business processes not properly • integrated with corporate systems • No true process owners or accountability Greece Japan US Future State: 3 2 1 • Consistent employee and manager experience • Consolidated and standardized processes and technologies across geographies • Process owner accountability & appropriate controls • Robust self-service tools Deploy integrated talent management technology with self service capabilities Standardize tools, core business processes and policies and realign across geographies rather than by geographies Implement appropriate process ownership, governance, and ongoing monitoring process

13. Enabling Our Transformation – Service View Current State: Future State: • The HR Service Center handles 8400 direct employee inquiries per month; 95% from US • 60% of US and less than 5% of international employee and manager transactions are handled via self service • Employee and manager experience is negatively impacted by the current system which is limited to tracking individual calls rather than providing case management functionality Omaha Costa Rica Full HR Service Delivery • 80% of all employee/manager transactions globally handled through employee and manager self service • Fully integrated PeopleSoft Case Management tool enabling 95% of global Tier 2 support to be provided by the HR Service Center • Consistent employee and manager experience through the lowest cost channels Omaha Costa Rica

14. Enabling Our Transformation – Systems View ESS MSS Current State: Future State: Other Hewitt Mercer PeopleSoft Talent Mgmt NA Payroll Comp Time & Labor HR HelpDesk PeopleSoft 9.1 HRMS Suite Other Flex Pay Symphony MetPay • Current disparate systems & environments • PeopleSoft was not deployed with a global view • “Best in Class” approach to technology • 100 + interfaces & integration points • PeopleSoft “vanilla” core leveraged globally for employees and contingent workers • Sunset all “Best in Class” applications • Governance process for all technology requests • Standardized processes and technologies across geographies leading to a consistent employee and manager experience • Less than one half of existing interfaces

15. Ad hoc reporting Sources of Operational data … • One- off analytics • Drop-drag parameters Canned reporting Sales Distribution Sales Distribution Revenue Production by Team Revenue Production by Team 100 PeopleSoft HR Analytics 100 90 90 80 80 70 70 60 60 50 50 40 Quartery Sales 40 30 Quarterly Sales 30 20 20 10 10 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Enabling our Transformation –Data View Vacation requests in Greece Current State: • No single “source of truth” for employees and contractors • Data integrity issues • Focus on reporting data rather than providing business analytics • Highly manual data collection and mining efforts Future State: • Transform fragmented data into actionable information • Better linkage to financial data • Visibility into true employment costs • Enable manager self-service reporting • Standard reporting • package • Read-only capability

16. Our Technology Roadmap

17. PeopleSoft 9.1 Deployment Schedule eCompensation Int’l Payroll Core HCM Manager Self Service HR Help Desk Profile Management Business Intelligence Contingent Workers Career & Succession Planning

18. International Timeline Q3 Year Q4 Q2 Q1 2012 2013 2014 2015 Vendor Switch Only Each country deployment will include Global Payroll, Employee Self Service, Time and Labor, Absence Management and Benefits in local language

19. Program Structure

20. Base Upgrade – What we’ve accomplished • Eliminated 60% of report queries enabling capacity for more proactive analytics • Improved data accuracy and reduced rework by implementing standard PS 9.1 functionality Set the foundation for First Data’s “single source of truth” • Provided a new summary page to review/edit employee information • Delivered additional self service capability for managing personal email addresses; critical for employee surveys Improved employee experience Simplified the technology footprint • Eliminated of 1,900 customizations • Prepared to sunset People Data Manager Tool Deployed the infrastructure for our integrated global talent management system • Reduced job codes from over 1,600 to 523 • Operationalized position management team • Standardized 8 self service transactions across the globe (100+ global processes impacted) • Harmonized 3 time and labor policies • Provided “on the job” coaching/training/mentoring on process excellence tools to over 50 employees Harmonized policied & began our process excellence journey

21. Considerations of a global transformation What was key to our success… • Built strong partnerships for strategic guidance and expertise • Focused on voice of the customer and process work up front • Harmonized global policies • Established a formal change management program • Developed a strong program leadership structure • Created relationships from other organizations to learn from their experiences • Leveraged multiple communication vehicles to support a global deployment • Committed to face-to-face workshops to get a global view • Gained trust and commitment of our steering committee by providing data driven recommendations

22. Change Management – It is critical! • Engaged a Global Change Leadership team and change champions to rollout training & communications • Provided “WIIFM” to all impacted groups to gain support • Created clear & consistent communication vehicles • Implemented a formal training strategy utilizing UPK • Developed an HR Transformation Video

23. Lessons Learned – What would we do differently? • Don’t understand estimate power of resistance; implement resistance management plans early • Ensure project managers are experienced in the IT project management lifecycle & education the executives and team members on “what to expect” • Separate the configuration and track lead responsibilities • Assign dedicated process experts • Provide change management training to key stakeholders and project team • Deliver more change preparedness to key constituents • Deploy a standard project toolkit prior to kickoff and ensure the tools are being leveraged consistently • Have a dedicated DBA to build the environments

24. For More Information Tracy Quinn VP, Global HR Technology & Process Excellence +1 (404) 890 2515 tracy.quinn@firstdata.com Nancy Pannarale Program Director +1 (303) 967-5793 nancy.pannarale@firstdata.com

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