Lessons from Twenty Years on PeopleSoft

1. Lessons from Twenty Years on PeopleSoft Wells Fargo’s Journey with PeopleSoft HCM Teresa Swanson Paul Brand

2. The Past

3. The Future .0

4. The other Future PeopleSoft Value Proposition Continuous Delivery PUM SaaS/On-Premise Customization PTF Total Cost of Ownership

5. Who we are: Wells Fargo • One of America’s premier financial services providers. • Provide services to one in three US households. • #1 mortgage originator and servicer • #1 Small Business Administration lender • #1 agribusiness lending and crop insurance • 70 million customers, $1.4 trillion in assets. • Most valued banking brand in the world: $224B

6. Who We are: Your Presenters Teresa Swanson Paul Brand VP, Technology Manager Joined Norwest in 1992 Working on PeopleSoft HR since 1992 • VP, Payroll Manager • Joined Norwest in 198x • Working on PeopleSoft HR since 1993

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12. Where we were in 1993 • Norwest Corporation, a super-regional bank • $51B in assets, $653M annual profit • 35,000 team members in 50 states and two countries • Regional HR and benefits representatives • No HR Service Center • No HR self-service of any kind • Payroll confirm ran for about 30 hours (~1200/hour)

13. Where we are now • Wells Fargo Bank, the fourth-largest bank in the US • $1.2 trillion in assets, $22 billion annual profit • 281,000 team members in 50 states and 38 countries. • Three HR Service Centers handling 1.2MM calls/year. • Extensive self-service offerings • 60,000 manager self-service transactions/month • 18,000 employee self-service transactions/month • 670,000 job application transactions/month • Payroll confirm runs for 39 minutes(361x throughput)

14. How We Got Here • Selected PeopleSoft for HR and Payroll in 1990. • Implemented March 1, 1993 on version 2.0. • Upgraded seven times over 20 years. • Implemented new modules along the way: • Ben Admin in 2002 • ePay, eBenefits, eProfile in 2003 • Manager Self-service and eRecruit in 2003 • Grew our PeopleSoft IT shop from 15 to 65 FTE.

15. We have changed. • Size • 8x team members • 200+ acquisitions • Complexity • More businesses • More locations • Much, much more regulation • Sophistication

16. Technology has changed.

17. Service expectations have changed. 1993 2013 Constant availability Auto-fill Instant transaction Immediate validation Perfection • Convenient hours • Simplified paperwork • Timely transactions • Timely acknowledgment • Good service

18. PeopleSoft has grown with the changes. • Technology • Client server to PIA to HTML5/CSS3. • Support for scalability, security, availability, etc. • Continuous development of PeopleTools, especially recently. • Applications • Addition of pillars: FIN, CRM, ESA, Campus Solutions, etc. • Addition of HR modules: Ben Admin, ELM, etc. • Addition of features within modules.

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20. Wells Fargo’s Vision and Values • Vision • We want to satisfy all our customers’ financial needs and help them succeed financially. • Values • People as a competitive advantage • Ethics • What’s right for customers • Diversity and inclusion • Leadership

21. Bringing Vision and Values to HCM

22. Quality Focus: HR Service Delivery • Team members expect a lot from HR: • Perfection with every HR transaction. • Nice treatment • Wide range of HR services. • We use PeopleSoft to meet team member expectations. • Payroll accuracy has been at 99.9%+ since 1999. • Service centers have aggressive SLAs and meet them. • We strive to make it easy for team members to get easy access to hundreds of HR services.

23. Quality Focus: Functional Quality • Team members expect applications to work perfectly every time, in every obscure circumstance. • We have used process and structures to improve quality. • Requirements, design, development, QA, implementation • Standards, process, review • Process and structure have become increasingly important: • More people working on the system • More regulatory oversight • Lower tolerance for errors

24. Quality Focus: Non-Functional Quality • Team members expect our PeopleSoft system to be usable, available, secure, and fast. All the time. • Our PeopleSoft system has strong bones. • Fully redundant architecture • Monitoring and alerting, automated scheduling • World-class service desk and operations model: less intrusive to people’s lives. • Results are clear: • Our Team Members rate our apps very high. • We have exceeded 99.8% uptime for 4+ years.

25. Quality Focus: Team Member Perceptions FOCUS ON FIRST MAINTAIN High Pay tools TAM Mgr. Self-Service Personal info Learning Center Time Tracker EPRS Job family search Importance WageWorks Candidate Gateway eCards Lifecare TW@home HCR CSC Polls TMCS Matching Gifts My Volunteer Time Corporate Library Low EKODS Forms Online High RETAIN/RETIRE CONSIDER Low Opportunity 24 Virtual classroom

26. We Focus on Efficiency. • We bring efficiencies to HR operations. • We bring efficiencies to managers and team members. • We bring efficiencies to IT. • We keep a sharp focus on total cost of ownership.

27. Efficiency: Operations • We optimize processes for operational efficiency: • Uploads, rapid entry, what else?

28. Efficiency: Operations • PeopleSoft has helped with operational efficiency: • Self-service applications • Functional improvements • We have rolled our own efficiencies. • Retro pay modifications • Terminations automation • Ben Admin automation • Uploads process • Mass update process for acquisition, reorg, focal review, etc.

29. Efficiencies: Team members • Self-service revolution drove huge efficiencies. • Timeliness • Handoffs • Accuracy • Don’t confuse cost-shifting with cost reduction.

30. Efficiencies: IT • IT resources tend to have high fixed costs: • Platform • Process • Competency • We get efficiency by deriving more and more service from our existing platform, process, and competency.

31. Efficiency: Total Cost of Ownership • PeopleSoft HCM TCO is $64/year/team member.

32. Efficiency: Total Cost of Ownership • We use TCO to fitness of our system. • Allows for comparison to benchmarks. • Allows for comparison to peers. • Allows for comparison of options. • Allows for comparison to ourselves over time. • TCO is difficult. • Which costs do we include? • Which services are we using? • How do we express the cost?

33. We Focus on People. • People are Wells Fargo’s competitive advantage. • We live that motto in HR operations and systems. • We focus on attracting, developing, and retaining the best PeopleSoft talent in the world. • Source people with curiosity and drive. Talent over skill. • Hire people with diverse talents, approaches, and backgrounds. Embrace eclecticism and eccentricity. • Hold them accountable for collaborating to solve tough problems. • Result has been innovation, efficiency, high engagement.

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35. PeopleSoft Value Proposition • PeopleSoft value comes from two sources: • Rich functionality • Empowering technology • It’s up to us to make the most of the functionality and technology.

36. Maximizing the Delivered Product • Take advantage of product strengths. • Core HR model • Person model and JPM • International extensions • Payroll and Benefits processing • Know what’s in the box. • Easy to miss delivered functionality. • Understand full range of configuration options.

37. Exploiting the Technical Possibilities • The ability to customize has been key selling points for PeopleSoft. • Key to our decision to go with PeopleSoft back then. • Key to our decision to stay with PeopleSoft now. • Customization is important for creating value. • Modifications to delivered functionality • Extensions • Integrations

38. The Power of Customization • Customization is powerful: • Meet your unique needs. • Overcome gaps in the delivered functionality. • Create valuable differentiation. • Customization is dangerous: • Waste resources on customizations that don’t add value. • Create an unmanageable code line. • Create stuff you already bought or built.

39. Making Customization Work for you • Only customize for the right reasons. • Insist that customizations cut cost, reduce risk, create advantage. • Set priorities collaboratively at higher levels. • Use process to eliminate pet projects. • Do fewer, more impactful customizations. • Maintain and apply design and development standards. • Reuse, reuse, reuse. • Keep customizations abstracted. • Collaborate and review. • Maintain and revisit customizations.

40. Making Customization Work for us

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42. The Future: PeopleSoft or SaaS? • Software as a Service has a lot of cachet: • Viable providers have emerged • Replacement solutions: Fusion, Workday • Extension solutions: Fusion, TAM, LMS,T&A, CRM • Investors love SaaS providers. • SaaS has an aura of inevitability.

43. The Future: PeopleSoft or SaaS? • SaaS presents compelling advantages: • HR as a commodity. • Predictable, subscription-based cost model. • Rapid delivery of new feature and function. • Reduced IT complexity. • SaaS has some serious drawbacks: • Reduction of flexibility and extensibility. • Reliance on third party for service, security, innovation. • HR as a commodity.

44. The Future: SaaS + • We become our own “SaaS-Plus” provider. • The advantages of SaaS • Rapid delivery • Predictable cost model • Plus the advantages of traditional on-premise PeopleSoft • Control over our data • Complete flexibility and extensibility • Ability to use HCM for differentiation.

45. The Future: Continuous Delivery • Continuous Delivery makes SaaS + approach possible. • Faster delivery • Higher uptake of new functionality • Dramatically lower upgrade costs • Getting to Continuous Delivery is not simple. • PUM takes some work. • Processes, roles, and org structure change. • Mindsets must change.

46. The Future: Continuous Delivery Requires Change • We need to change how we manage PeopleSoft to do continuous delivery: • Adopt product management mentality. • Invest in staying current. • Put effort into understanding and incorporating new function. • Re-imagine testing.

47. Future: Quality and PeopleSoft Test Framework • Continuous Delivery requires fast, effective, and affordable testing. • Testing is currently very expensive. • Testing is slow. • Test effectiveness is limited by so-so traceability.

48. The Future: Quality and PTF • We need PTF to change cost and speed of quality dramatically. • Reusable test cases • Traceability using PTF, Change Assistant, and Usage Analyzer • Implementing PTF is not a simple endeavor. • Takes effort to set up. • Takes discipline to manage.

49. The Future: Value • We need a cost-competitive HR solution. • TCO must remain low and continue to improve. • No one will want to pay big $ for future upgrade. • We need continuous expansion to meet demands: • Feature and function. • Channels: Mobile, social, etc. • Integration. • Better, faster, cheaper analytics.

50. The Future: Why PeopleSoft? • To remain relevant, our PeopleSoft solution has to outperform alternatives in five categories. • Cost • Functionality • Quality • Risk • Differentiation