cio council erp update 081309

Confidential to Corinthian Colleges, Inc.

& Pittiglio Rabin Todd & McGrath 02/23/2006

1

Growth primarily through rapid acquisition

Limited business integration strategy

Limited technical strategy

Several failed “ERP” implementations

– Losses: Financial, Time , Effort

– Limited confidence in potential success of future implementation

Autonomous business operations at the campus and division level

Limited standardization of business and operating processes and procedures impacting effectiveness of the company

Disparate technical environment

– Multiple Student Systems in place (7)

– Lack of over arching architecture

– Lack of Integration strategy

– Data problems: Consistency, accuracy, availability, integration

Situation Analysis



2

Operational considerations & Requirements for Success



3

Common Reasons for an “ERP”

Common integrated information flow through the entire organization

When adopted the company can run more effectively, with more information and with greater speed

Lower total cost of ownership

Organizational alignment

Optimized business processes

Integrated financial information

Technology obsolescence

Total Cost of Ownership (TCO)

Organizational impact

Executive support, commitment, and participation

Organizational changes, both culture and operational

Short and long term associate commitments

Business process changes

Discipline to align business operations with a vanilla package and make process changes where

needed.

Communications and expectations

It’s important to understand underlying reasons for wanting to migrate to a new system , the requirements and the implications.



4

Common Reasons for Failure

Lack of management & business commitment

Positioned at “IT project”

Business strategy that did not drive process re-design and deployment.

Poor assessment of the resources and time required. Poor project management

Poor and inconsistent data

• Not "cleansed" prior to moving to the ERP system.

Cultural rejection of the new system.

Lack of understanding of organizational change and how to manage

Inadequate training

Overly customized software



5

Varying successes over time

51%

26%

0%

10%

20%

30%

40%

50%

60%

People Problems Technology Problems

Percentage

of companies

citing people

factor

as major

obstacle for

future

Source: Deloitte Consulting

•35% of the ERP implementations have been cancelled•55% have resulted in schedule and cost overruns of 178% and 230% respectively•Only 10% are completed successfully on budget and on-time



6

Critical Success Factors

Business needs identification

Business goals and future organizational needs are often left unformulated or are unclear during planning

Action: Create a dedicated cross-functional team to formulate needs up-front

Company wide cultural changes

Companies must be prepared to make concessions or changes in organizational culture, structure and operational processes

Action: Must have executive commitment and discipline to force organizational and process changes.

Business unit accountability

Business units must be responsible for achieving benefits and managing costs

Action: Enlist high level business executive to sponsor and drive the project forward. Tie success to business bonus and performance plans

Changing perceptions

Companies must often struggle to change perception of from a “shiny new piece of technology” to a new way of doing business



7

Critical Success Factors

Garter Research

20 December 2001 ID Number: TG-15-1067



8

Understand ALL the costs

Training

Driven by new processes and not just new systems

Always underestimated

Integration and Testing

E-commerce and other add-ons, external on all sides

Should include the people that will actually operate the system

Customization

Should be avoided if at all possible

Could affect every module

Requires vendor support

Data Conversion

Companies often deny their data is dirty – ours is

It costs money to move and clean data

Data Analysis

Data from the ERP system must be combined with other external systems

Replacing your best and brightest

The ERP implementation requires the best and brightest to be successful

Be prepared to lose them after the transition to other opportunities

Implementation teams can never stop

Post-implementation activities keep the teams busy long after the live date

Don’t anticipate them going back to their old jobs

Waiting for ROI

Teams must be prepared to keep going after the install date

Returns come long after and require many process changes to take advantage of the ERP system

Productivity Impact

Recent Deloitte Consulting survey of 64 Fortune 500 Companies, one in four admitted that they suffered a drop in performance when their ERP systems went live



9

Adapting to a new ERP

“Go-live”

Pro

duct

ivit

y

Implementation ERP “Shock”

Time

BenefitsDiscovery Selection



10

Align to critical success factors

Executive management Support

Business Sponsorship

Business plan and vision

Change management & culture

Business process re-engineering (BPR)

Acquire, educate and train (people)

Vendor selection and support

Project Team

Dedicated resources

CCI Approach



11

CCI Approach

Streamlined product evaluation and

selection

Leveraged functional framework to

define high level needs

Structured Governance and project

management methodology

Dedicated project resources: IT&

business

Aligned to business

Company “BIG 5” strategic initiative.

Tied to bonus and performance

Started with Business Process

Reengineering

Aligned process to system capability.

Limit customizations

Formal change management process

Training , training , training

Initial and “refresher”

Formal “organizational change” focus

Leadership training. “Change agents”

Formal communication plan

Limit software customizations

Defined, iterative implementation approach



12

Unify consisted of three major phases to convert 100 branch locations from 7 different source systems

12

Configure a standard system providing the foundation for all schools

Define standard business processes

Develop change management approach

Develop standard training program

Develop implementation plans

Finalize gap assessment/fit

Confirm cost and duration

Phase 1. Design, Configure, and

Develop


Develop

7 months


Develop


Develop

7 months


Develop


Develop

7 months

Phase 2. Deploy PilotsPhase 2. Deploy Pilots

5 months

Phase 2. Deploy PilotsPhase 2. Deploy Pilots

5 months

Phase 3. RolloutPhase 3. Rollout

24 months

Phase 3. RolloutPhase 3. Rollout

24 months

Phased rollout by groups of schools

School

Rollout

School

RolloutSchool

Rollout

School

RolloutSchool

Rollout

School

Rollout

School

Rollout

School

RolloutSchool

Rollout

School

RolloutSchool

Rollout

School

Rollout

Phased rollout by groups of schools

School

Rollout

School

RolloutSchool

Rollout

School

RolloutSchool

Rollout

School

Rollout

School

Rollout

School

RolloutSchool

Rollout

School

RolloutSchool

Rollout

School

Rollout

Pilot new system at selected schools representing cross-section of existing systems

SMS PilotSMS Pilot

SPAR PilotSPAR Pilot

Online PilotOnline Pilot

SAS PilotSAS Pilot

Jan „07 Jun „07Jun „06 Sept „09

Fund Phase 1 – Design, Configuration,

and DevelopmentFund Phase 2 – Pilot Fund Phase 3

Decision Gate Decision Gate Decision Gate

Sep „07

Two-month rollout prep period



13

Go-Live at first pilot site

Each phase had distinct steps critical to the overall success of the project, with defined tollgates between phases to control risk and govern the overall project.

School

Rollout

1. Design, Configuration and Development 2. Pilot Deployments 3. Rollout

Aug.Feb. Mar. Apr.

2006May Jun Jul

Phased

Rollouts by

System and

School

starting in

2Q-07

School

RolloutSchool

RolloutSchool

Rollout

Sep. Oct.

SAS Pilot

SAS Pilot

Evaluation1. Training

2. Conversion

3. Pilot Operations

SMS Pilot

SMS Pilot

Evaluation

1. Training

2. Conversion

3. Pilot Operations

SPAR Pilot

SPAR Pilot

Evaluation

1. Training

2. Conversion

3. Pilot Operations

Nov. Dec. Jan. Feb.

2007

Online Pilot

Online

Evaluation

1. Training

2. Conversion

3. Pilot Operations

Contract

Negotiation

Fund Phase 1 – Design and Configuration Fund Phase 2 – Pilot

Resource

Planning

System planning, procurement, and

configuration

Business process development

Organizational change assessment

Data conversion development

Integration development

Field demonstrations

Training development

Testing

Data creation and purification

School deployment planning

Fund Phase 3

Implementation

Planning

Evaluation

Phase

Decision

Gates*:

* Phase Gate Criteria with be

applied at each gate review



14

Site Implementation Plan Overview

Stage 1 – Plan

Communications and Logistics

Stage 2 – Deploy Stage 3 – Support

Enterprise Readiness and Implementation Management

Site Planning and Orientation

Project Unify introduction

Rollout process review

President/Director orientation

and preparation

Site Team Lead selection and

preparation

Site Team selection and

preparation

Readiness Assessment Confirmation

Infrastructure

Business

Application

Data Conversion

Mapping and Validation

Testing

Configuration, Data and Reports

Training

System, Process and Reporting

Cut-Over

Detailed countdown

Go-live planning

Go-live

System confirmations

Stay live or go-back checkpoint

Site Acceptance

Onsite Support

Premium Support

Steady State Support

Refresher Training

Implementation and System Review

Closeout Activities

System and Process Audit

T-13weeks

T-6weeks

T-5weeks

Go-Live T+1 weeks T+12 weeks



15

Student System ERP Project Organization

Executive Oversight Committee

Divisional

Presidents

Steve Nodal

HR

Dave Ruggeri

Admissions

Mary Barry

Acad. Affairs

Bob Owen

Finance

Bill Buchanan

Marketing

Carmella Cassetta

IT

Todd Ackerman

PRTM

Executive & Corporate Sponsors

Jack MassiminoBeth WilsonKen OrdSponsors

- Confirm objectives

- Approve budgets

- Promote process and systems standards and consistency

- Eliminate organizational barriers (if required)

Executive Oversight Committee

- Assign resources to Project Teams

- Review requirements

- Resolve Core Team issues (if required)

- Approve Core Team vendor selection recommendation

- Resolve site and organizational readiness issues

- Approve Implementation Approach and Plan

Program Management Office

- Develop and maintain the project plan and schedules

- Facilitate the Core and Extended Teams

- Develop and implement communication plans

- Develop vendor instructions and schedules

- Maintain action item and issue logs

- Characterize and escalate issues (if required)

- Facilitate Executive Oversight Committee meetings

- Develop the business case for the implementation

- Develop the implementation approach, sequence, budget and

plan

Program Management Office

Fredrik de Maré Greg McHughCCI Program Mgr.



16

CCI

Lead(s)CCI

Lead(s)CCI

Lead(s)CCI

Lead(s)CCI

Lead(s)

Student System Strategy Project Organization

CCI

Lead(s)CCI

Lead(s)

Functional Requirements

and Standards Teams

1. Marketing & Admissions

2. Academics

3. Student Operations & Training

4. Career Services

5. Finance & Accounting

6. Regulatory Affairs

IT

Team

Student System Core Team

- Approve functional and technical requirements

- Ensure appropriate involvement with requirements development

- Promote process and systems standards and consistency

- Resolve cross-functional, cross-site issues

- Eliminate organizational barriers (if required)

- Select the preferred vendor

- Confirm the business case for the implementation

- Support the development of the implementation approach, sequence and plan

Functional Teams

- Represent colleagues from all sites / programs

- Define requirements

- Identify unusual or unique requirements

- Attend vendor product demonstrations

- Identify functional gaps and issues

- Develop plans to resolve known gaps and

issues with the preferred solution

- Check functional references

- Establish process and systems standards

- Identify the significant process and

organizational changes required to enable the

implementation of the preferred solution

IT Team

- Define technical standards and requirements

- Develop the short-list of vendors

- Review the vendor offerings

- Development toolkits / standards

- Integration architectures

- Data models

- Check technical references

- Define the design, develop

and deployment approach

- Generate implementation work

estimates


Marketing & Admissions Academics Support Ops

& Training

Career Svcs Financial Aid,

Finance & Accounting

Regulatory

Compliance

IT



17

Working team structure

Program Management

Fredrik de Maré Greg McHughCathy Cisneros

CCi

Lead(s)


Marketing & Admissions

Team Lead(s)

Academics

Team Lead(s)

Support Ops & Training

Team Lead(s)

Career Svcs

Team Lead(s)

Finance & Accounting

Team Lead(s)

Reg. Compliance

Team Lead(s)

IT

Team Lead(s)

IT

Team

CCi

Lead(s)CCi

Lead(s)CCi

Lead(s)CCi

Lead(s)CCi

Lead(s)CCi

Lead(s)

Conversion

TeamsFive Functional

Teams

Training

Team

CCi

Lead(s)

CCi

Lead(s)

CCi

Lead(s)CCi

Lead(s)CCi

Lead(s)CCi

Lead(s)CCi

Lead(s)CCi

Lead(s)

Site Implementation Teams

(One per site)(each with School President representation)

CCi

Lead(s)CCi

Lead(s)CCi

Lead(s)CCi

Lead(s)

CCi

Lead(s)CCi

Lead(s)CCi

Lead(s)CCi

Lead(s)CCi

Lead(s)CCi

Lead(s)

1. Marketing and Admissions

2. Academics

3. Career Services

4. Financial Aid, Finance and

Accounting

5. Regulatory Affairs



18

Core Team members represent both their divisions and respective functional areas

18

Cathy Cisneros(Project Management)

Fredrik de MaréGreg McHugh

(PRTM)

Brenda CossittTSi

SharleeBrittingham

FMU

JOHN MATHIASRCi - Admissions

MARY ANN HOLTZCampus Supp –

Regulatory

Scott KidoCSi

Bev Yourstone

CDi

SUSAN SAMEKCampus Supp –Career Services

PAULGODFREY

Camp Supp. –Academics

MICHAEL HOLMESCampus

Support –Fin. Aid

BENNETT MANKINOnline - Admissions

KIM DEAN &BEENA RAGHU (CDi)

Campus Support - Finance

Brian Daly (25%)Marketing

RAY LA STRAPE(25%)

Call Center

Carmella Cassetta, John Magrann,Christos Mousouris, Rob Patton

Bonny Nickle, Brian BargyIT

Laurie BermanCommunications

Sheila O’HaraTraining

Jennifer Myers (CMC)



19

During the planning phase, significant work was done by the functional teams to enable common and consistent business processes and define system configuration

A number of workshops were conducted with the functional teams to:

Marketing AdmissionsCareer

Services

Regulatory Compliance and Accreditation

Information Technology

AcademicsFinancial

Aid

Finance and Accounting

Student Lifecycle

Support Processes

Career

Development

Employer

Relations &

Management

Career

Services

Performance

Tracking

Externship Job Placement

Career Services

• Orient students

• Build student

resumes

• Develop career

building skills

• Deliver career

development

workshops

• Content

• Scheduling

• Delivery

• Develop marketing

strategy towards

employers

• Identify potential

employers

• Manage employer

visits

• Organize job fairs

• Develop job leads

• Import 3rd party

employer data

• Advisory Boards

• Develop and

administer employer

surveys

• Identify job leads

• Manage job leads

• Distribute resumes

• Match students to

employers

• Place students in

jobs

• Verify placement in

field (accreditation

requirement that

certain percentage is

placed in program-

related field)

• Track and

communicate with

alumni

• Maintain alumni data

history / log

• Self-service portal

Le

ve

l 1

Le

ve

l 2

Le

ve

l 3

Alumni

Services

• Prepare students

• Determine number

of extern sites

• Develop extern sites

• Place students

• Track student

attendance

• Gather evaluation of

student performance

/ progress

• Ready student for

graduation

• Track placement

metrics

• Conduct periodic

(quarterly)

verification of

placement

• Provide placement

data to

accreditation

agencies

• Track staff metrics

and goals

• Number of

interactions

• Number wkly

calls

• Weekly goal

sheets

• Prepare

performance

reports

Level 2 Process

Areas Student Financing Packaging Certification Disbursements and Refunds Repayment

Division

Unique practices within division

or school: Driver: Recommendation Impact

Unique practices within

division or school: Driver: Recommendation Impact



Unique practices within division

or school: Driver: Recommendation Impact



Own tracking mechanisms U

Std process with

new system

Ashmead, Eton/Bryman -

own packaging on own

platform U

Std process with

new system

Ashmead Fife - certifies

alternative loans via the

vendors' web sites U

Std process with

new system

Ashmead and Eton/Bryman -

go to ELM web site to release

disbursements instead of

releasing in the system U

Std process with

new system U

U Cannot flag funding source U

Std process with

new system U

In Campus/Class today, Global

doesn't send refund data .

Therefore it must be manually

taken from the Global web site

and manually entered into the

system. A showstopper. U

Std process with

new system


don't receive an extract from

Global for the amount of the

refund and the amount of the

adjustment to the tuition.

They pull from web site. U

Std process with

new system

U

3rd party billing done

manually U

Std process with

new system U


manually processing refunds via

website to generate autodebit U

Std automated

process with new

system to be rolled

out U

U U U


can identify students that

require repacks and

cross/overs U

Std process with

new system U

U U U U U

Own tracking mechanisms U

Std process with

new system Cannot flag funding source U

Std process with

new system U U U

U

3rd party billing done

manually U

Std process with

new system U U U

U U U U U

U U U U U

U U U U U

Most student FA app

done via paper and mail

for destination schools M

Wyotech - Laramie,

Blairsville, and

Sacramento - doesn't

use NLSC for

payment plans U

Std process with

new system

Wyotech - Laramie,

Blairsville, and

Sacramento - does

own certification U

Std process with

new system

Wyotech - Laramie,

Blairsville, Fremont, and

Sacramento - go to ELM

web site to release

disbursements instead

of releasing in the

system - within 3 days

they debit back ineligible

payments U

Std process with

new system

Wyotech - Laramie,

Blairsville, and

Sacramento - CIS

processing done

internally on own

system, send exit

interview and notify

students U

Std process with

new system

Wyotech - Laramie,

Blairsville, and

Sacramento -

Processes own financial

aid within CMDS U

Std process with

new system

Wyotech - Laramie,

Blairsville, and

Sacramento - does

own packaging on

own platforms U

Std process with

new system

Wyotech - Laramie,

Blairsville, and

Sacramento - does

own certification for

alternative loans on

the vendors'

websites U

Std process with

new system

Wyotech - Laramie,

Blairsville, and

Sacramento - go to

Dept of Ed to request

funds and draw down

Pell and campus-based

funds U

Std process with

new system

Wyotech - Laramie,

Blairsville, and

Sacramento - does

own default

management and

collections U

Std process with

new system

Own tracking

mechanisms U

Std process with

new system

Wyotech Fremont -

does own packaging

via CLASS into Global U

Std process with

new system U

Wyotech - Laramie,

Blairsville, and

Sacramento - do all

refund calculations in-

house. U

Std process with

new system U

U

Some TSI cannot flag

funding source U

Std process with

new system U

Wyotech - Laramie, Blairsville,

and Sacramento - can identify

students that require repacks

and cross/overs U

Std process with

new system U

U

Some TSI 3rd party

billing done manually U

Std process with

new system U U U

CSI

RCI

TSI

Define a common

process framework

around which to

generate and organize

business requirements

1

Identify and characterize

process differences

between divisions for

each process area

2

Analyze magnitude of

change, and develop

recommendations on how to

address process differences

3Category Change Impact

Error reduction Ability to see all packaging information in one system.

Can see where we are in the packing process. Opens

up visibility for corporate.

Reduce errors in the packaging process (will know where

students are in the packaging process). Reduce the time it

takes to process packaging.

Faster Error Resolution Ability to see in one system will allow for faster

processing of errors.

Task Automation

Reports available across schools reduce time needed to

perform quaility control. (System need to be set up

properly with the right hiearchy to support this.)

Ability to better manage fund sources (e.g., reduce how

much is put through recourse). Better management of

90/10; third party loans, and recourse. Proactive

management before the funds are being disbursed.

Reduction in rework Reduced duplication of data entry.

What training is required How long will training take

Training same same

Identify the risk Mitigation strategy or factors

Risk

Not being able to track in the system

Would need a manual process workaround if no system is

implemented.

Identify the improvements Describe the benefit

Quality Same

Identify Describe the benefit

New Automation/

Reporting Opportunities Improved reporting (90/10 etc.) May do packaging feed

directly to Global woithout using Saint Dir (potential

futire improvement). Identify repacks and cross-overs.

Reduce bad debt; increase cahs flow; improve customer

service; better ability to analyze data.

Identify Describe the change

Changed, new, and moved

roles FA mgrs can spend more time on training and

performance based planning. Clerical -> Analytical Improved production, performance, quality.

Change Benefit

Any other changes and

associated benefits

Same; ability to merge data from various areas for

reporting Better information for outside entities.



20

Workflow Processes

• Function

• Roles

• Sequence

• Controls

1. Identify processes and activities

2. Prepare the initial configuration of the application

3. Walk through all processes using the configured application

4. Confirm user requirements, process changes, issues, and

integration requirements

5. Perform off-line analysis of proposed process changes

6. Reconfigure application (as required)

7. Repeat Steps 3 – 6 until all issues are eliminated or

customizations are required

8. Characterize the process and package customizations

9. Review the proposed changes and resolve conflicts

10. Repeat Steps 3 – 9 until the plan is approved for each

business area

High-Level Processes

Policy Standards

Screen/Database Changes

Interface Requirements

User Requirements

Issues Owner

Building on this work, focused workshops were used to design the detailed business processes while configuring the application

All CCi divisions

will be represented

including Online



21

Business Design

Workbooks

Technical Design

Workbooks

For each process category, processes were defined, configuration decisions made and documented, reports were designed, and technical interfaces specified

Scenario Narratives and Storyboards

AcademicsFinancial

Aid, Finance

& Acctg.

Career

Services Regulatory Other

To-be process flows

Screen and report

designs

Process to screen

flow diagrams

• User requirements

• System Capabilities

Interface definition

Scenario storyboards

Data element mappings

The designs

are organized

into Workbooks

Marketing

and

Admissions



22

Each site followed a standard conversion approach

Site rollout steps and timing Prior to cutover

Site readiness prognosis 3 ½ months prior

Begin data conversion and purification 3 ½ months prior

Organizational assessment 1 month prior

Site readiness assessment 1 month prior

Begin on-site and remote support 2 weeks prior

Finalize any data correction 2 weeks prior

Conduct training 1 week prior

Cutover weekend of cutover

– Suspend use of legacy system

– Convert data

– Implement new system and

organizational and job content changes

Terminate on-site support 2 weeks post



23

Training and Organizational Change

Standardized Training & OCM plans and processes were put in place to prepare and support campuses through the transition to UNIFY

Roles & Responsibilities definition

What does this mean to me? What’s in it for me?

Divisional Kick-off meetings

Recurring Demonstrations- “road show”

Recurring Divisional and Campus teams meeting

Scheduled pre and post implementation meetings

Peer-to-Peer support groups

Leadership Reports Training

Senn- Delaney Change Workshop – “Embracing UNIFY”

Monthly President’s meetings

Monthly Newsletter

Divisional Trainers Trained

Systems and Process training

– Initial functional training

– Refresher training

– Monthly training clinics – topics vary

Make-it-Stick processes/ Surveys & Scorecards

System adoption and transition metrics



24

Lessons Learned and Outcomes

60% complete (40 remaining sites to convert @ 5-6 per month)

5 source systems retired

Project within 10% variance of original budget

Project duration extended primarily due to delays in receiving software enhancements. Overall impact 6 months elapsed time.

Organization responding well to new system

Metrics and follow-up survey tracking favorable

System adoption is high

Keys to success

Project governance and team structures

Business Process reengineering

Business unit sponsorship & alignment

Not positioned as IT project. Tied to performance metrics

Organizational Change approach

Intensive, iterative training

Limited customization

“Cookie cutter” implementation approach



25

The hardest parts….

Right balance of training- before and after

Don’t underestimate how hard it is for people to change how they do their job

Waiting on important customizations is risky

Managing perceptions & communications

Need clear communication channel to report , track and resolve issues

Keeping business alignment over multi year project

Keeping resources engaged

Estimating the cost- and sticking to it