Enterprise Resource Planning

(ERP)

Technical Advisory Committee

September 18, 2006 – 2:00 PM @ ETS

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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

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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

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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.

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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

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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

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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

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Business Benefits

Process Area Pain Points Opportunity Milestone Indicator

Payroll Support for 4.6B version expires after 2006 tax year Known problems with overpayments and pay statements

Lengthen support timeline by implementing latest available version Fix problems in conjunction with HR/Payroll upgrade/re-implementation

Budget Control Weak, after the fact budget control and reporting

Provide real time encumbrance accounting, budget availability control, and reporting

Budget Preparation

Cumbersome, labor intensive, and time consuming process

Standardize and automate processes across the school district to make resource decisions earlier with better data

Maintenance No financial data for work orders

Integrate work order system with financial system

Procurement Maverick spending Strategic sourcing

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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

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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

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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

SAP R/3 Implementation

Scope and Approach

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Finance Scope and Approach

FMFunds

ManagementBudgetary

Accounting and Availability Controls

New GLGeneral LedgerSpecial Ledger

Classification of Revenue, Expense, and Balance Sheet

Full Financial Reporting

AAAsset Accounting

Fixed Asset Accounting, Asset

Management

SEM BPSStrategic Enterprise

ManagementBusiness Process

SimulationBudget Preparation

Simulation and Forecasting

GMGrants

ManagementGrant Accounting,

Sponsor Relationship Management

COControlling

Cost Accounting, Allocations and

Distributions

PSProject SystemsProject Accounting,

Project Management

APAccounts Payable

Vendor Management, Invoice Payment

ARAccounts

ReceivableCustomer

Management, Invoicing and Billing

CM/TreasuryCash

ManagementBank Accounting,

Investment Management, Debt

Management

PBCPosition Budget

ControlCommitment

ProcessorPersonnel Budgetary

Planning

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HR/Payroll Scope and Approach

PDPersonnel

DevelopmentEmployee Appraisals,

Appraisal Catalog, Qualifications, Web

Application and Workflow

OMOrganizational

ManagementOrganizational Structure,

Jobs, Positions and Reporting

E-RecruitmentOnline Job

Application, Pre Screening, Applicant

Integration to PA

PAPersonnel

AdministrationMaster Data Repository,

Events and Status

TEMTraining and Events

ManagementBusiness Event

Planning, Attendance, Resources,

Integration and ESS

BENBenefits

Administration Benefit Plans,

Wagetypes, Vendors Interfaces and

Reporting

ESSEmployee

Self ServicePersonal Data

Maintenance, Payroll and Time

PYPayroll

Wagetype Catalog, Salaries and Payments,

Deductions,Tax Reporting,

Integration and Interfaces

T&ATime and

Attendance ManagementTime Recording,

Schedules, Interfaces and Reporting

SAP R/3 Implementation

Organization Change Management

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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.

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Change Readiness

Assessment

Analysis of the District’s willingness and ability to accept change with recommendations

CommunicationProgram

Complete approach to communication including strategy, campaign definition and planning

End UserTrainingStrategy

Understand training needs and identify training approaches targeted to employee populations

Organizational Design

New payroll duties that people will perform

Organizational Design

Diagrams that depict the new way of doing payroll, based on best practice and exploiting SAP functionality

It doesn’t really matter... I’m just going to keep

doing it the way I’m doing it.

It doesn’t really matter... I’m just going to keep

doing it the way I’m doing it.

What do these new processes have to

do with me?

What do these new processes have to

do with me?

How is my job going to change?

How is my job going to change?

What ifI can’t do it?

What ifI can’t do it?

SAP? I’ll believe it when I see it.

SAP? I’ll believe it when I see it.

Change Management addresses confusion, anxiety, and concerns surrounding the implementation.

SAP R/3 Implementation

End-user Training

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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

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Training Methodology

DefineDefine

DesignDesign

DevelopDevelop

DeliverDeliver

EvaluateEvaluate

Develop Training Strategy

and Design Program

Develop Prototype

(Templates/ Curriculum)

Develop Program

Validate Program

Deliver Program

Evaluate Program

Provide On-Going Support

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AscendantMethodology

TrainingMethodology

(by Relative Levelof Effort)

Sustain

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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

BRITEBRoward’s Innovative Tool for Education

BRITE brings one business system to Broward Schools.

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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.

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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

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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.

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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.

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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

Thank you!

Peter Tingom

ERP Organization Change Management Team