human resources leadership meeting march 15, 2005 building the human resources and payroll...

Human Resources Leadership Meeting

March 15, 2005

Building the Human Resources and Payroll Environment for the Next Generation of North Carolina State Government

2

Welcome and Introductions

Human Resource Leadership HR Directors JAD Process Owners OSP HR Leaders

Project Team Robert Powell Gwen Canady Thom Wright Gary Wiggins Julie Batchelor Linda Hudson Shannon Byers Jessica Blume Tom Walker Lowell Magee Bradd Craver Dorie Kehoe Edward Brodsky

3

Agenda

Welcome, Introductions, and Agenda SBIP Program Update HR Effectiveness High Performance Organizations Process Session Reviews

– NC Print Process Flows– Process Requirements– Process Summaries

Change Management/Communications Questions Action Items Review Adjourn

4

SBIP Program Update

HR/Payroll Project Update– Completed HR 1 and 2 JAD Sessions– Completed Payroll JAD Sessions– Initiated Technical Requirements Gathering

Data Warehouse– Hired Project Manager– Began Scoping and Planning activities

Legislative Update

5

Statewide Business Infrastructure Program (SBIP)

Legend: Current ProjectPast Projects Upcoming Projects

Past Projects Current Project Upcoming Projects Future Projects

Financial & HR Business Infrastructure Study Phase 1

Inventoried present systems and provided assessment of technical and functional capabilities

Financial & HR Business Infrastructure Study Phase 2

Provided a blueprint for viable implementation options and a recommended course of action

HR/Payroll Planning Project

•Identify process re-engineering and structure

• Develop integration strategy and risk analysis

• Develop business requirements

HR/Payroll Bid Preparation Project

• Develop bidding document for implementation

• Select Vendor for HR/Payroll Implementation

HR/Payroll Implementation Project

• Implementation

Statewide Business Infrastructure Project – Budget & Financials

Statewide Business Infrastructure Project – Tax & Revenue

SBIP Data Warehousing Planning Project

• Develop needs assessment

• Confirm Scope

• Develop implementation timeline and approach

• Develop business requirements

SBIP Data Warehousing Implementation Project

• Implementation

Future Projects

6

HR/Payroll Project Overview

Planning Planning Implementation Begins

Implementation Begins

Pre-ImplementationActivities

Pre-ImplementationActivities

•Identify HR and Payroll business and functional requirements

•Develop business process flows

•Confirm selection of system as well as technical service delivery

•Confirm HR/ Payroll strategy for implementation

•Business reengineering opportunities

•Perform the implementation objectives for a new, fully automated HR/ Payroll system for the State of North Carolina

7

HR/Payroll Project Timeline

HR – Group I

• Personnel Administration

• Recruitment• Applicant Tracking• Disciplinary Action and

Complaint Management• Incident and Accident

Tracking• Exit Interviews• Competency Based HR

Management• Performance

Management• Training Administration

HR – Group II

• Compensation Management

• Job and Salary Surveys

• Position Evaluation Analysis

• Benefit Administration

• Workforce Analytics• Organizational

Management• Employee Self

Service• Leave Tracking

Payroll

• Payroll Administration

• Payroll Processing• Labor Cost

Distribution• Time Collection &

Management• Budget Support

Technical

• High level technical requirements

• Security• Infrastructure• Integration

Plan ExecuteVision Close

• – Project Status Report– Final Deliverables– Offsite Working/Holiday

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

25 1 8 15 22 29 6 13 20 27 3 10 17 24 31 7 14 21 28 7 14 21 28 4 11 18 25

• • • • • • • • • • • • • • • • • • • • • • •

Group I

Group II

Payroll

Change Management

Technical

Date

Project Management

Month Dec

Project Week

Human Resources

Nov Jan Feb March Apr

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HR Effectiveness - Vision

HR/Payroll Vision A strategic business partnership supporting the human resource

and payroll needs of State government, enabled by utilizing leading business practices and current technology

HR/Payroll Project Goal Through a statewide collaborative effort, the goal of the HR/Payroll

Project is to develop an enterprise-wide Human Resources/Payroll system utilizing leading industry practices to provide a foundation for effective management, increased efficiency, and the information needed to make timely and appropriate decisions

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HR Effectiveness - Guiding Principles

Create a seamless HR/Payroll experience for employees Provide an environment for employees to make informed decisions

about their careers and employment benefits Streamline business processes to drive efficiency Increase productivity and make the State of North Carolina more

competitive Develop a single repository, with a common set of data elements,

to successfully support the State’s reporting and management activities

Move transactions closer to the point of origin (Employee Self Service/Manager Self Service)

Provide a flexible system able to respond to changing HR/Payroll needs

Eliminate redundant systems and duplicative processing Provide real time access to transaction activity

10

HR/Payroll Today

Transactional Focus Separate and Isolated from

Mission Fragmented data prohibits

meaningful reporting Manual, paper-intensive processes Processes and procedures vary by

agency Employees require assistance to

change personal data Inconsistent standards and forms

across agencies Duplicate entry of HR data into

multiple systems Fragmented data across agencies

makes statewide reporting difficult

HR Effectiveness - Transformation

HR/Payroll Tomorrow

Strategic Focus Key Part of Organizational Mission Consistent information enables

accurate enterprise reporting Automated, technology-enabled

processes Employees can manage selected

personal data Standardization of forms and

similar processes across agencies Single HR/Payroll system to reduce

data re-entry Consolidated HR/payroll database

across all agencies for better reporting

Business Process Reengineering

Technology Implementation

11

Current OSP/HR Directors Initiatives

Mediation Program Equal Employment Opportunity Competency Modeling E-Learning Career Banding HR/Payroll Systems Replacement Project

High Performance Organizations

13

Are you feeling the stress?

I'm not sure exactly how it works, but this is amazingly accurate. The photo on the next slide has 2 almost identical dolphins in it. It was used in a case study on stress level at St. Mary's Hospital. Look at both dolphins jumping out of the water. The dolphins are identical. A closely monitored, scientific study of

a group revealed that in spite of the fact that the dolphins are identical, a person under stress would find differences in the two dolphins.

If there are many differences found between both dolphins, it means that the person is experiencing a great amount of stress.

Look at the photograph, and if you find more than one or two differences you may want to take a vacation.

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Can You See the Differences?

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So, HR is really important!

Moving the Game Up

What Is a High Performance Organization? Why Are Higher Performance Levels Required? What Are High Performance Practices? How Does HR Impact Development of a High Performance

Organization? How Can HR Measure Contribution to a Performance Organization?

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The Challenge – To Create a High Performance Organization

Embrace Government that is: Efficient, Effective, Trustworthy, and Responsible to citizens and

their needs Prepared with a workforce to meet the demands of a global

economy Aligned – Strategy, Leadership, and People to Organizational

Infrastructure, Processes, and Technology

“Now as one economic era has ended and another has begun, the time for indecision and timidity has passed. We are already on the path of progress. Our full attention must be focused on the transition of our economy consistent with the educational demands of this global era.”

- Governor Easley, 2005 Inaugural Address

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Government and Corporate America Must Move Up Organizational Performance

Meet budgetary demands to create more value with less Fight the competition and improve constituent value Develop workforce plans to meet State strategic objectives Develop and retain the best talent Provide HR services that support mission critical activities at the

State level as well as at the agency level Meet expectations of candidates and future employees Create infrastructure to support efficient HR service delivery

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Organizational EfficiencyOrganizational Efficiency

Operational HR Cost (HR processes)

Operational HR Cost (HR processes)

Personnel CostPersonnel Cost

Flexible CompensationFlexible Compensation

State CompetitivenessState Competitiveness

Workforce PlanningWorkforce Planning

Human Capital FlexibilityHuman Capital Flexibility

Effectiveness in People Development

Effectiveness in People Development

Statewide Strategy

HR Strategies and Initiatives

Effectiveness

Perspective

Effectiveness

Perspective

Efficiency PerspectiveEfficiency

Perspective

Link NC Strategic Objectives to HR Activities

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HR Value Creation Can Rise to the Top

StateValue

HR ProcessesSupporting Other

Business Processes

Consolidation ofHR Process Performance

Performing Single HR Process

Performance Measures

HRPerformance

Strategic Value

e.g. Reduce turnover to <20% for critical roles

e.g. HR benefit transaction costs reduced by 25%

20

HR Impact on Development of High Performance Organization

Performance Management Processes and Policies Organizational Change Management Strategic Workforce Planning – Talent Management Risk Management Workforce Training and Development

"Develops a workforce prepared to meet the demands of a global economy by expanding life-long learning opportunities"

“The top in innovation, creativity, knowledge, talent, and skills“

- Mike Easley, NC Governor

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Measuring HR Effectiveness

Measures must be strategically relevant and aligned with statewide objectives and specific agency goals

Measures must be limited but focus on:– Key drivers of performance and their outcomes– Provide Cause\Effect relationships among measures

Example Measures– Percent of trained employees with increased KSAs as reported by

management– Percent of new hires who are exceeding expectations after one

year– At least a 25% pay differential between good and excellent

performers– Total cost of vacant positions– Voluntary turnover rate of high performing employees– Percent of grievances settled through mediation

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Proposed Conceptual Framework for HR Measures

AgencyPerspectives

People Organizational Effectiveness

Organizational-Wide

HR Measures

HR Functional Measures

Framework Levels

Example – Strategic Performance Measurement Categories

Budgetary Perspective

HR Process Measures

• Manage Employee Recruitment & New Hire Integration and Manage Employee Separation Process

• Develop & Train Workforce

• Administer Pay & Benefits and Control Employee Information

• Manage Employee Relations

• HR Planning & Analysis and Strategy Development

• Manage Performance Management

Context -Specific Agency Objectives

ConstituentRelations

Operations

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HR Project Perspective

Significant opportunity for business process redesign now

Significant opportunity to leverage technology to support process improvements long term

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HR Process Reviews

HR Process JAD Sessions Process Owners

Group 2

Plan and Manage HR Programs and Plans

Gerry Fisher (Office of State Personnel)

Design and Maintain Organizational Structure

Joe Stroup (Dept of Environment and Natural Resources)

Manage Compensation and Classification

Duane Hinkle (Office of State Personnel)

Maintain & Administer Benefits Pani Tademeti (Office of State Personnel)

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HR020 – Plan and Manage HR Programs and Plans

Develop HR Strategic Plan

Objectives

Plan Organizational

Design

Develop and Implement Training

Programs

Develop and Implement Reward and Recognition

Programs

Develop and Implement Other

HR Programs

Develop and Implement AA and EEO Plans

Develop Performance

Appraisal Process

Perform Position/

Headcount Planning

Develop and Implement

Salary Plans

Develop and Maintain Policies and Procedures

Implement Change Process

Design and Implement

Benefit Plans

HR-010Define Human Resource Strategy

MO-020Assess the Internal EnvironmentMO-030

Develop Visions, Goals, and Performance Measures

MO-040Develop Strategic, Operational, and Financial Plans

MO-070Monitor, Measure, and Report Performance

HR-030Design and Maintain Organizational Structure HR-040

Career and Succession Planning

HR-050Manage Recruiting, Hiring and Integration

HR-090Administer Benefits

HR-100Manage Payroll

HR-120Monitor Employee Health and Safety

HR-130Manage Labor and Employee Relations

HR-060Develop and Train Workforce

HR-080Maintain Benefits and Enrollment

HR-100Manage Payroll

HR-130Manage Labor and Employee Relations

HR-140Manage Employee Separation

HR-120Monitor Employee Health and Safety


HR-070Manage Compensation and Classification

IT-040Develop and Deploy IT Products and Services

MO-010Assess the External Environment

HR-160Manage and Assess EEO

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JAD Session HighlightsPlan and Manage HR Programs and Plans

Process Overview Once HR programs and plans have

been established, their effective management includes communication, eligibility determination, plan enrollment, plan changes, and coordination/information exchange with any third parties.

Improvement Opportunities Increased statewide consolidated planning for HR programs

to allow better sharing of resources and exchange of best practices across agencies

Potential Barriers Budgetary restrictions may restrict future system

improvements Employees do not understand the benefits of this project

and fear how it will affect their jobs Users are afraid they will not know how to perform basic

transactions and will not know who to contact for help People are used to moving paper and fear an electronic

environment Some of the workforce is not familiar with computers Lack of commitment from top management

Benefits Consolidated data will be available to measure a program’s success Ability to report on statewide data without having to call agencies to collect fragmented data Greater ability to plan at the state level due to statewide consolidated data Ability to be proactive, rather than reactive to requests or problems Ability to spend more time analyzing data than collecting it Ability to spend more time on strategic HR functions rather than HR administration Ability to make more informed decisions due to real time data access

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HR030 – Design and Maintain Organizational Structure

Establish and Maintain the

Structure of the Organization

Establish and Manage Positions in the Organizational

Structure

Establish Reporting

Relationship

Are There Any Open

Positions?

Identify Funding Source

Manage Temporary and

Permanent Positions

Post Job Vacancies

Coordinate Link to the Budget Office

No

Yes

Participate in Budget Cycle

Manage Special Positions

MO-020Assess the Internal Environment

BU-020Establish Position Budget

MO-020Assess the Internal Environment

M-020Identify Maintenance Structure


HR-020Plan and Manage HR Programs and Plans

HR-040Career and Succession Planning

BU-070Revise Budgets

Position Eligible for Posting?

Yes

No



MO-010Assess the External Environment

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JAD Session HighlightsDesign and Maintain Organizational Structure

Process Overview

The objectives of this process are to determine organizational design, define competencies and reporting/working relationships for each position, maintain job descriptions and responsibilities for each position in the organization, and create an organizational development plan to achieve desired staffing and skill levels.

Improvement Opportunities Standardize the use of electronically generated organizational

charts across all parts of the state Simplify and consolidate job descriptions Simplify approval processes with fewer people touching data

Potential Barriers Legislature does not understand the HR information they are

provided Computer equipment is out of date Fear of change, particularly changes in responsibility and authority Insufficient training could create additional errors Difficulty in moving beyond “we’ve always done it this way” Lines of approval vary across agency Agencies do not want to pay for support or changes Uniqueness of the Judicial branch hinders standardization

Benefits Ability for agencies to access real time data to

respond to legislature or budgeting requests Ability to create more professional looking job

postings that appeal to a wider variety of applicants HR and Payroll can better support decision making

and been seen as strategic partners New technology and processes will bring the state

closer to the way the private sector operates

Ability to eliminate shadow systems and the cost of maintaining them

More accurate data can generate cost savings. For example, position planning to reduce overtime

Organizational charts are more accurate because they can be produced electronically rather than maintained manually

29

HR070 – Manage Compensation and Classification

Document Employee Data

Change

Adjust Employee Payroll

Conduct Job and Salary Analysis

Plan and Budget Salary Changes

Approve Salary Plan and Budgets

Document Employment Salary Data

Changes

Notify Employees of

Salary Changes

Approve Employee Pay

Actions

Maintain Classifications

Prepare for and Administer

Annual Increases


Approve Employee Promotion/

Transfer/Status Change

Maintain Pay Policy, Plan and

Structure







30

JAD Session HighlightsManage Compensation and Classification

Process Overview The objectives of this process are to

manage employee promotions, transfers, and status changes; and to develop and implement employee compensation programs linked to performance/geographical guidelines that conform to budgeting and planning constraints.

Improvement Opportunities Eliminate duplicate systems that do not interface with each

other Simplify range revision and balancing processes Implement a variable pay structure Eliminate Commission approval for classification decisions –

potential to remove statute Integrate outside survey data with HR system data

Potential Barriers Insufficient funding for the project Constraints on salaries caused by legislation and limited

funding Legislature does not understand cost and risk of not

implementing new system Aversion to change Fear of how newly available data will be used or managed

Benefits Reduced clerical burden Ability to make more informed decisions with increased information available Ability to track different types of pay plans Employees will be treated more fairly with standardized processes

31

HR080 – Maintain Benefits and Enrollment

Request Qualifying

Status Change Documentation

Review and Approve

Qualifying Status Change

Review Benefit Plan Offering

and Rates

Determine Benefit Eligibility

and Costs

Evidence of Insurability Required?

Request Evidence of Insurability

Documentation

Document Benefit Election

Changes and Additions

Provide Confirmation of

New Election

Provide Employee

Benefit Election Data to Provider

Receive Invoice from Provider

and Verify Accuracy

Make Payment to the Provider

Yes

No





HR-110Pension Administration



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HR090 – Administer Benefits

Forward Claims Forms to Insurance Provider

Monitor Provider Claim and Review and Distribute to

Employee

Receive Insurance Disability Request

and Review Eligibility







H-050Maintain Member/Retiree Account Information

Employee on LWOP?


Yes

No

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JAD Session HighlightsMaintain Benefits Enrollment and Administer Benefits

Process Overview This process includes

maintaining the rules for benefit plan eligibility and enrollment. Voluntary, employee-paid, and employer-paid benefits are included. In addition to traditional benefits, flexible spending, tax-exempt, and tax-deferred plans are also included.

The administration of benefits is focused on the processing of disability claims.

Improvement Opportunities Start employee benefits upon hire rather than after a waiting period Change benefit plan year to calendar rather than fiscal year to make it easier for

employees to manage their benefit deductibles Track employees plan enrollment statewide and base decision making on

consolidated data Simplify transfers between agencies and remove unnecessary paperwork Automate the calculation of the disability payment Automate the transfer of funds from the retirement system back to the agency

rather than payment by a check

Potential Barriers Different benefits options with special rules that have been grandfathered in add

complexity to the development and administration of plans Some employees have limited computer skills, or less solid reading skills Limited employee access to computers Language barrier for employees that must use the system but do not speak

English Interface with Retirement System may be difficult to implement

Benefits Ability to provide employees with a total

compensation statement that includes benefits Ability to provide a seamless experience for

employees transferring between State agencies Ability to process transactions more efficiently

with less administrative work and fewer errors Employees will have greater faith in the

accuracy of their benefits changes

Employees become more empowered and more responsible

Consistency of information across agencies allows for better decision making

Less time spent on administrative tasks Ability to provide better customer service Improved ability to meet deadlines More correct and timely processing of disability

claims

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Organizational Themes

SME feedback– Enthusiastic about the possibilities of a new solution– Supportive of common processes and standardization– Sessions have provided a good networking forum– Appreciative of the opportunity to provide input

Business Benefits– Reduced clerical burden– Increased efficiencies– Better decision making with better consolidated data– Reduction of various side systems

Potential Barriers to Success– Computer availability and technical infrastructure– Fear that data will be misinterpreted – data security– Acceptance of employee/manager self-service– Common change barriers– Training (system and process) and PC skills

35

Change Management Update

Scheduled North Carolina IT Projects Lessons Learned Focus Group– Identify lessons learned from previous projects– Discus communication methods– Document methods to ease transition to new processes and systems– High level assessment to state government’s culture and change

readiness – Participants include

• Bob Bellamy (Dept. of Public Instruction)• Sharon Hayes (Information Technology Services)• Sondra Williams (Community College System)• Tom Runkle (Information Technology Services)

Wrap-Up Development of Change Management Strategy– The Importance of Change Management– Change Management Strategy and Framework– Next Steps for North Carolina HR/Payroll

Leadership Alignment

Organizational Transition

CommunicationsCapability Transfer

End User Training

Project Team Effectiveness

Project Management

36

HR Leadership Action Items

April 15, 2005 – Next HR Leaders Meeting Review JADs HR Group 2 Summary

– Submit comments to Gary Wiggins by 3/22/2005 at ([email protected])

human resources leadership meeting march 15, 2005 building the human resources and payroll...

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