Achieving HR Best Practices through PeopleSoft Human Capital Management Praveen Gupta January 17, 2007

Achieving HR Best Practices through PeopleSoft Human Capital Management

Praveen Gupta

January 17, 2007

Norcal OAUG 2007 | January 17, 2007 2

Agenda

Session Brief What’s a “Best Practice”? HR Best Practices –What and Why Achieving Payroll Best Practices Through PeopleSoft HCM

– Implementation– Case Study

Conclusion QA


Capturing industry best practices onto the PeopleSoft HCM implementation is what yields greater returns of efficiency and effectiveness.

Let us discover how we can translate proven HCM best practices to superior PeopleSoft implementations and better benefits

Session Brief


Best Practice Defined

Hackett’s Best Practices are certified when there is a correlation with world-class Hackett’s Best Practices are certified when there is a correlation with world-class performance metricsperformance metrics

Hackett’s Best Practices are certified when there is a correlation with world-class Hackett’s Best Practices are certified when there is a correlation with world-class performance metricsperformance metrics

Aligns with strategy Reduces costs Improves productivity Promotes timely execution Enables better decision making Leverages existing and exploits

emerging technologies Ensures acceptable levels of control

and risk management Optimizes skills/capabilities of the

organization Promotes collaboration across the

extended enterprise


World-Class HR is defined as top quartile performance in both efficiency and effectiveness

Percent internal promotions

Use of available technology

HR linkage to business strategy

Sourcing utilization Workforce management Quality of HR

processes/transactions Linkages between

employee development and business strategy

HR partnering on organizational issues

EFFECTIVENESSEFFICIENCY

Cost per employee Staffing levels and mix Application

customization HR self-service

utilization Resource allocation Integration of HR

systems Productivity Levels of management

within HR

Hackett Value Grid™

1st Quartile Breakpoint

1st Quartile Breakpoint


With proven best practices and effective technology enablement we benefit from greater returns of efficiency and effectiveness

51%

82%

20

40

60

80

100

2006

Peer Group

World-Class

Complexity ReductionPercent of companies utilizing common HR application deployed globally

Source: The Hackett Group. 2006 BON


87

52

20

40

60

80

100

2006

Peer Group

World-Class

Number of HR Staff per 1000 EEs



HR Cost per employee 2006

Improvement gains among World-Class and Peer Group Companies

$ 1,864

$ 1,614

400

800

1200

1600

2000

2006

$Peer Group

World-Class

6660

20

40

60

80

100

2006

Peer Group

World-Class

Number of days to fill a manager position, 2006

Source: The Hackett Group. 2006 BON Source: The Hackett Group. 2006 BON


HR Best Practices –What and Why?

One Integrated System to handle all HR transactions– Provides operational efficiencies and ease of maintenance; removes duplication of

effort; becomes primary source for decision-making; one-time data capture can automatically address other impacted functions.

Provision for Self-Service tools– Lowers HR Staffing ratio; Shifts responsibility to end users to manage their own

data; Such paperless transactions lower transaction processing costs and avoid data entry errors; Opens accessibility to HR processes round the clock.

Multiple layers of Security– Increases controls through proper ownership; Reduces data corruption; Ease of

Sarbanes Oxley compliance; information provided is based on need; reduce data privacy concerns


HR Best Practices – Cont’d

Process includes global requirements and standards– Flexibility with global support time zones; remove communication barriers with multi

lingual users; Local regulatory reporting keeps in compliance. Improved and accurate Reporting for both internal and external customers

– Improved Decision Making; avoid costs related to inaccurate reporting with regulatory bodies; establish credibility with Sr. management; Lower reporting cycle with ad-hoc reporting capability;

Utilize of automation wherever available (Workflow)– Provides process consistency; streamline dependencies and subsequent user

actions (esp. in the areas of requisition workflow, on boarding, performance appraisal etc);


HR Best Practices –Cont’d

Implement customer driver Service delivery center handling more complex issues

– increased effectiveness in resolutions within first call ; increased customer satisfaction; Repeatable successes; identify knowledge gaps among user group; enables core HR team to focus on strategic issues; lowers costs

Standardize Job classifications, positions, profiles, Competencies and are online, linked and available as a single job record

– Enable reusability; Consistency in purpose and use; shorten recruiting cycle for a particular job; Redundancies removed to bring in efficiency;

Employees have easily accessible means to assess themselves electronically against detailed competencies model, create individualized development plan, and link to learning resources to bridge assessed gaps

– Productivity gaps filled; Leads to organic growth avoiding recruiting costs; Managers and Employees on same page on plan for individual growth;


HR Best Practices –Cont’d

Compensation plans reviewed thoroughly as part of pre-acquisition due diligence and after divestitures to identity opportunities for economies of scale and effectiveness (e.g., consolidation, standardization)

– Lessen operating costs; Reduce redundancies across companies; Universal comp plans leading to higher employee morale

Regularly updated organizational plans address the objectives and recommended actions in the event of major functional change, technology change or business events such as acquisitions, divestitures or new market penetration

– Easier adoption of additional HR data; In compliance with local markets ;


PeopleSoft HRMS System and Best Practices

PeopleSoft HCM System– Considered ‘Tier 1’ system supporting most of the best practices– Tightly Integrated with other HRMS functions while maintaining flexibility in

configurations– Quick adopters of ‘next’ practice methods in terms of technology and functionality– Delivers ‘Out of the box’ functionality

A synopsis of Best Practices applicable to PeopleSoft– One Integrated system incorporating high degree of efficiency– Extensively supports Self Service for Managers and Employees– Supports Global standards and requirements– Supports Reporting capabilities both regulatory needs and ad-hoc– Incorporates high degree of automation standards like workflow, Publish/Subscribe

etc.– Supports current HR operational models and Service delivery models like Shared

Service, Centre of Excellence etc.


Achieving Payroll Best Practices Through PeopleSoft HCM

The Implementation

Targeting Architecture Construction Migration Evolution


1 2 3 4 5 6 7 8 9 10

Architecture

Ongoing Project Management/Program Office

Ongoing Change Management & Communications

Requirements and Fit/Gap Analysis

Technology Architecture PlanningImplementation

Planning

Solution DesignVision

Validation

Business Case Development

Best Practice Vision

Quick Wins Development Quick Wins ImplementationProject

InitiationExecutive Interviews

Current State Review


The Implementation


1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Integration Testing

Data Conversion

Production Cut- over Planning

Education, Training, & Coaching

Custom Development

Production Environment Deployment

ProductionCutover

Technical Knowledge TransferSystem

Optimization

Conference Room Pilot

Test Planning

Application Configuration

Production Cutover (Acceptance)

Detailed Org. Design

Policy & Procedure Development

Quick Wins Implementation

System Testing

Process DetailMilestones

Ongoing Project Management/Program Office

Ongoing Change Management & Communications

Functional Specs

Test Scripts

Performance/Stress Testing

Technical Specs

Executive Presentation

Function Testing

Acceptance Testing

Project Initiation

Non-Production Environment Depl.

Construction Migration


The Implementation


Case Study


Company Background and Key Drivers

$1 B Materials company Poised for growth opportunities and newer markets Maintains separate systems for HR, Payroll Process includes a mix of Central HR, Divisional HRs and factory supervisors acting as

HR agents. Number of Employees–Approx 7700

Key Drivers Aggressive growth Increased employees will require more employees & HR staff (currently 57:1 ratio) Increased attention on cost management-High HR cost per EE ($2,197) Need for quick assimilation and scalability of resources Has disparate systems with delayed processes and now is in favor of a fully integrated HR (and

it’s sub components) and Payroll system Need for accurate workforce planning


Current State process Employee Data Management- Data Entry and Record setup

Oth

er In

tern

al D

epts

&

3rd P

artie

sH

R D

ata

Man

agem

ent

Rec

ruiti

ngE

mpl

oyee

s

Start

End

1.1

Candidate / Applicant Data is

Entered from physcal

Employment Application

1.2

Applicant Data is Used as an Input

to Create the Initial Employee

Record

1.6

Employee Shows Up On-

Site for 1st Day of Work /

Orientation

1.4

Company Property is

Ordered &/or Allocated for/to the New Hire

1.5

Other Company Property is

Entered into ‘Facilities’ system

1.7

Security Takes New

Hire Photo & Issues Badge

1.8

Employee Receives Badge

& Other Company Property

1.9

Employee Receive ID & Password(s),

1.3Benefits,

Payroll, IT, Security, Telecom,

Purchasing, Other HR

Departments

Provide Physical Application to

prospects


PeopleSoft Best Practice ImplementationEmployee Data Management- Data Entry and Record setup

Oth

er In

tern

al D

epts

&

3rd P

artie

sH

R D

ata

Man

agem

ent

Rec

ruiti

ngC

andi

date

s &

A

pplic

ants

Start

End

1.1

Candidate / Applicant Data is

Entered via Applicant Self

Service

1.2

Applicant Data is Used as an Input

to Create the Initial Employee

Record

InterfaceInterface

Enterprise Directory

1.6

Employee Shows Up On-

Site for 1st Day of Work /

Orientation

Benefits, Payroll, IT, Security, Telecom,

Purchasing, Other HR

Departments

1.3

Receive automated

system update message or

workflow notification

1.4

Company Property is

Ordered &/or Allocated for/to the New Hire

1.5

Other Company Property is

Entered into the HRMS

1.7

Security Takes New

Hire Photo & Issues Badge

1.8

Employee Receives Badge

& Other Company Property

1.9

Employee Receive ID & Password(s), Logging in the

LAN the 1st Time Successfully

InterfaceInterface

HRMS

InterfaceInterface

American Express, Diners

Club or Visa

Security

PeopleSoftHRMS

Business Email Address & LDAP

Password


PeopleSoft Post Implementation benefits the company achieved thru Best Practice methods

Relation with an employee started early on as a self service applicant Integrated PS system provides same information and on-boarding process is cut down The data management burden is not concentrated with HR alone and is distributed. Data Standardization (Job code, Position etc) alone have lessened HR to focus more on

value-add processes. Payroll can already process the first check instead of manual entries the first time. Central HR, Divisional HR and factory HR are more aligned with information Reduced calls to Central HR from factory HRs as they have role based access to look

upon employees. Shared service calls are often solved by Tier 1 compared to earlier process of transferring

Employee calls often.


Conclusions

With proven best practices and technology enablement we can achieve greater levels of efficiencies and effectiveness.

To fully leverage a mature product like PeopleSoft, we need to identify best practice goals to be achieved early on and then configure .

Only a holistic Best Practice approach will yield in superior implementation and a lowered TCO.


Questions

Documents

Achieving HR Best Practices through PeopleSoft Human Capital Management Praveen Gupta January 17, 2007