Enterprise Resource Planning (ERP)

1. Enterprise Resource Planning(ERP) Technical Advisory Committee September 18, 2006 – 2:00 PM @ ETS

2. Agenda • History of Enterprise Resource Planning at Broward • Business Case • Needs Assessment • KPMG • IBM Global Services • Project Charter • Vision • Mission • Implementation Plan • Change • Communication • Training • BRITE project • Key Messages • Website

3. Timeline • Purchased SAP software Jan 05 • Needs Assessment started Jul 05 • RFP Approved by SBBC Oct 05 • Proposals Due Dec 05 • Evaluation Committee awards contract Dec 05 • IBM Reassessed Implementation Timeline Feb 06 • Contract Approved by Board May 06 • Project Start Jun 06 • Blueprinting Now • Communication Ongoing

4. Needs Assessment Overview • The School Board of Broward County (SBBC) had acquired and planned to implement a number of modules of the mySAP suite. SBBC requested KPMG's assistance in documenting their existing business processes for the purpose of creating an RFP and providing bidders a better understanding of the environment at SBBC. • In addition, KPMG provided assistance in identifying gaps between these processes and the “vanilla” functionality as provided by mySAP. • Along with the needs assessment analysis, KPMG provided guidance for the creation of the Request for Purchase and assistance with the evaluation of the resulting proposal.

5. In-Scope Process Areas • KPMG worked in conjunction with SBBC to evaluate the School Board’s business processes and identify / categorize the in-scope departments and processes. • The in-scope departments and processes are listed below: • Human Resources • E-recruitment • Payroll • Treasury • Capital Budgets • Facilities • Maintenance • Food Service • Accounts Payable • Benefits • Training & Events • Grants • ESE • Capital Payments • Fixed Assets • Inventory Management • Procurement • Finance • Technical Environment • Transportation

6. Why ERP? • ERP is the leading strategy, originating in the private sector but increasingly prevalent in the public sector, allowing the company to focus resources on its core business mission rather than back office functions. • Real time drill-down reporting capability for decision makers • Standardized database for information accessibility across the enterprise • Reduce the necessity for standalone applications (spreadsheets, databases) currently in use across the district • Platform for continuous business process improvement • Benchmark customer service through scorecard reporting • Attract and retain new talent with leading edge technology

7. Key ERP Benefits • Schools • Online, real time access to budgets and balances for principals to make resource decisions • Automate budget preparation and projection process • Makeover of payroll and human resources processing • Purchasing • Establish platform for e-business with vendors • Online access to vendor payment status • Leverage purchase volume to reduce prices • Maintenance • Accurate tracking of time and expenses against work orders • Seamless integration with customer service, supply chain, and financials • ETS • Reduce number and cost of interfaces to be supported • Opportunity for knowledge transfer to build in-house skill sets

9. Business Objectives • BCPS expects to accomplish the following with the successful BCPS expects to accomplish the following with the successful completion of this project: • Improve the efficiency of District operations and our ability to manage them • Eliminate or reduce paperwork and redundant manual processes • Increase accountability and transparency to the public in the use of public funds • Provide better data for decision makers and stakeholders at all levels • Improve service delivery to schools

10. Critical Success Factors Primary success factors include, but are not limited to: • The creation of a single, integrated project team comprised in part of BCPS and IBM, who share: • A common vision • A single project plan with common milestones and deliverables • A single project governance structure • Joint responsibility for delivering the project on-time and on-budget • A real-time, on-line, and secure software solution • Steadfast commitment to the identified scope and requirements documented in the business blueprint • New process improvement strategies that encourage implementation of out-of-the box functionality and best business practices embedded in the software (Exceptions to this will only be considered in cases of mission-critical importance and must be approved by the Executive Steering Committee (ESC)) • Actively engage key stakeholders, particularly end-users, to keep focus on the business benefits and long-term sustainability of the system • Provide a smooth transition to the new system through frequent and timely communications, training, and knowledge transfer to ensure end-users are ready and able to perform the improved business processes • Incorporate lessons learned from other ERP K-12 implementations • An actively engaged ESC composed of senior management leadership of BCPS who are committed to dedicating appropriate resources to ensure the success of the project • Retraining and placement of staff displaced due to cessation of legacy systems

11. Key Roles & Responsibilities • Business Process Owner • Responsibilities include the following: • Ensures the business objectives are met by the mySAP system • Decision maker for the process they own • Lead endorser of the business blueprint for their respective area • Obtains approval for business policy issues from senior management • Subject Matter Experts • Responsibilities include the following: • Supplement the core project team with an area of expertise (i.e. BCPS’s operations and requirements, SAP functionality, business process reengineering) • Actively participate in project activities when asked

12. SAP R/3 Implementation Scope and Approach

13. Finance Scope and Approach New GL General Ledger Special Ledger Classification of Revenue, Expense, and Balance Sheet Full Financial Reporting SEM BPS Strategic Enterprise Management Business Process Simulation Budget Preparation Simulation and Forecasting AP Accounts Payable Vendor Management, Invoice Payment AR Accounts Receivable Customer Management, Invoicing and Billing CO Controlling Cost Accounting, Allocations and Distributions PS Project Systems Project Accounting, Project Management AA Asset Accounting Fixed Asset Accounting, Asset Management FM Funds Management Budgetary Accounting and Availability Controls PBC Position Budget Control Commitment Processor Personnel Budgetary Planning CM/Treasury Cash Management Bank Accounting, Investment Management, Debt Management GM Grants Management Grant Accounting, Sponsor Relationship Management

14. HR/Payroll Scope and Approach OM Organizational Management Organizational Structure, Jobs, Positions and Reporting PA Personnel Administration Master Data Repository, Events and Status BEN Benefits Administration Benefit Plans, Wagetypes, Vendors Interfaces and Reporting ESS Employee Self Service Personal Data Maintenance, Payroll and Time TEM Training and Events Management Business Event Planning, Attendance, Resources, Integration and ESS T&A Time and Attendance Management Time Recording, Schedules, Interfaces and Reporting E-Recruitment Online Job Application,Pre Screening, Applicant Integration to PA PD Personnel Development Employee Appraisals, Appraisal Catalog, Qualifications, Web Application and Workflow PY Payroll Wagetype Catalog, Salaries and Payments, Deductions, Tax Reporting, Integration and Interfaces

15. SAP R/3 Implementation Organization Change Management

16. What is Change Management? • A Planned Approach: The process of developing a targeted strategy to align people, processes, and technology changes in an organization. • Nimble: proactive, flexible, and reactive. • Customized: Tailored for Broward County Public Schools. • Proportional: Direct relationship between the change undertaken and the amount of change required. • Supported: Leadership buy-in is key. • Personal: Change is personal. In part, based on an understanding of stakeholders’ own impact from the implementation.

17. Organizational Design New payroll duties that people will perform Change Readiness Assessment Analysis of the District’s willingness and ability to accept change with recommendations Communication Program Complete approach to communication including strategy, campaign definition and planning End User Training Strategy Understand training needs and identify training approaches targeted to employee populations Change Management addresses confusion, anxiety, and concerns surrounding the implementation. What do these new processes have to do with me? Organizational Design Diagrams that depict the new way of doing payroll, based on best practice and exploiting SAP functionality How is my job going to change? It doesn’t really matter... I’m just going to keep doing it the way I’m doing it. SAP? I’ll believe it when I see it. What if I can’t do it?

18. SAP R/3 Implementation End-user Training

19. Introduction to the SAP Training Program • Design role-based training to give employees exactly what they need to do their future jobs • Focus on business process skills, not just technical skills • Educate employees on the benefits of the SAP system, how the changes can positively impact the business, and their role in all of it • Establish a foundation for continuous skills development and improvement by developing an ongoing training and performance support plan

20. Develop Program Validate Program Develop Training Strategy and Design Program Develop Prototype (Templates/ Curriculum) Deliver Program Define Training Strategy Develop Hours expended against project budget Deliver Evaluate Program Provide On-Going Support Training Methodology (by Relative Level of Effort) Design Evaluate Sustain Define Ascendant Methodology Project Preparation Business Blueprint and Realization Go-Live and Support Final Preparation Training Methodology

21. Training Lessons Learned • Training objectives should be tied to overall project goals • Training must be process-based and reflect BCPS’s business • Training design and development efforts must be tightly integrated with the SAP project core team • Establishing a strong training foundation promotes that training materials and processes can be easily leveraged for subsequent phases and implementations • Training logistics (facilities, scheduling, registration) need to be closely managed

22. BRITEBRoward’s Innovative Tool for EducationBRITE brings one business system to Broward Schools.

23. What is BRITE? • BRITE is an investment to streamline Broward’s business systems, which will provide staff with access to real-time data in the latest version of the SAP software. • This new system includes: hiring, payroll, training and events, budgeting, finance, purchasing, plant maintenance, and facilities. • BRITE supports future growth in the district and allows for continuous improvement. • BRITE is a project of the Enterprise Resource Planning (ERP) Department. BRITE brings one business system to Broward Schools.

24. BRITE’s Vision and Mission Learn it and Live it ! Vision: One Business System for Broward Schools Mission: Adopt best practices and involve end users to create one business system in SAP. One Business System

25. Why does Broward Need BRITE? • Currently, the school system uses hundreds of spreadsheets and databases to track all of its information. To improve access to that data, simplify reporting, and operate more efficiently across the school system, we must streamline our many processes and systems into a Broward-wide system called SAP. • The technical support license for the current version of SAP is expiring in 2007. Upgrades must occur so that the SAP system remains supported. BRITE is an investment in the future of the school system to give staff better data to make informed decisions.

26. When is BRITE Coming? • We are currently in the design stages called Blueprint. In January, after Blueprint is completed, the project team will have more specifics on how the system will impact you. • Phase One is scheduled to roll out in the 2007-08 school year for hiring, payroll, training and events, budgeting, purchasing, and limited financials. • Phase Two is scheduled to roll out in the 2008 calendar year for additional budgeting and financial features, as well as grants and facilities. • Phase Three is scheduled to roll out in 2009 for maintenance and transportation, focusing on replacing the current work order and inventory systems. BRITE is a phased three-year project with first roll out planned in 2007. The success of BRITE will rely on ongoing feedback from end-users throughout each phase.

27. BRITE Website • Launched September 12, 2006 • http://web/erp • http://www.broward.k12.fl.us/erp • Feedback can be submitted via the “Contact Us” link on the ERP website Email address: erp@browardschools.com

28. Thank you! Peter Tingom ERP Organization Change Management Team