Project Management Committee MeetingApril 7, 2005

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

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Welcome and Introductions

Project Management Committee Julie Batchelor, OSC, Chair Rod Davis, DENR Dan Domico, DOT Bob Giannuzzi, ITS Carl Goodwin, OSP Wendy Griffin, DOT Kathy Gruer, DHHS Ginny Klarman, State Health Plan Tracy Little, DOC Jim Macaulay, OSC John Morgan, OSC Rob Nelson, UNCGA Jim Newman, DOI Catey Oliver, State Health Plan Kim Padfield, DOT Tom Runkle, ITS Gary Wiggins, OSP Margaret Wiggins, AOC Jonathan Womer, OSBM Pam Wortham, Treasurer’s Office

OSC Management Robert Powell, OSC Gwen Canady, OSC

Project Team Linda Hudson, OSC Shannon Byers, OSC Lowell Magee, Deloitte Bradd Craver, Deloitte Dorie Kehoe, Deloitte Katie Beacham, Deloitte Parham Gerami, Deloitte Doug Oliver, Deloitte Stas Krapivnik, OSC

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Agenda

Welcome, Introductions and Agenda Committee Update HR/Payroll Project Status Post JAD and Technical Sessions Review Change Management & Communications Business Process Improvement Open Discussion Action Items Review Adjourn

Committee Update

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Committee Update – Initiatives

SBIP News– Legislative update– Data Warehouse– Next Steps

HR/Payroll Project Status

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Status Report

Activities Completed This Period

3/3/2005 – 4/6/2005 Obtained sign-off on HR Group 2 preliminary requirements Completed Payroll JAD sessions Began preparations for meetings with CFOs and CIOs Continued Technical work stream and met with ITS senior management Completed change management strategy options, conducted change

management focus group and follow up interviews Outlined re-engineering and organizational strategies deliverable Presented business process redesign strategy and pre-implementation planning

recommendations to PSC at March 16 and April 5 meetings Conducted second HR Directors meeting on March 15, 2005 Conducted vendor QA review Conducted Certified Public Managers meeting on March 22

Status Report

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Status Report

Plans for Next Period

4/7/2005 – 5/4/2005 Prepare and conduct third HR Director’s meeting (April 15, 2005) Prepare and conduct CFO and CIO meetings (late April) Meet with Retirement and Budget technical staff Complete technical work stream and submit technical deliverable for

sign-off Complete change management work stream and submit deliverable

for sign-off Complete Organizational Opportunities Plan and submit deliverable for

sign-off Complete Final HR, Payroll, and Technical Requirements deliverable Planning and preparation for Phase 2 activities

Status Report Status Report

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High Level 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

Post JAD and Technical Sessions Review

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JAD Session Follow Ups

Certified Public Managers Meeting – March 22– Met with nine Certified Public Managers from six agencies– Presented an overview of Employee/Manager Portal Functionality– Discussed their requirements as non-HR/PR managers and

employees

State Health Plan/BCBS Meeting – March 31– Met with Ginny Klarman from SHP and Judy Poe from BC/BS– Discussed future system functionality and requirements

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Technical Activities

Scheduled sizing kick-off meeting with process team leads Gathered data requirements (user analysis, questionnaires, expected volumes, retention and growth) Analyzed implementation time line and payroll trends Collected and analyzed legacy system user counts and transaction volume data Generated and revised performance requirements using sizing models and estimates Initiated infrastructure design Defined application security needs, desktop requirements and application bandwidth requirements Designed high level interface design and TO-BE application architecture

Change Management & Communications

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Leadership Alignment - Activities

Set the vision and strategy for the change effort, determine leadership readiness, responsibilities and alignment required to facilitate change.

Major Activities

• Establish strategic objectives and set the direction for change

• Conduct leadership interviews to determine alignment, gaps, and needs

• Prepare leadership alignment action plans

• Build agreement among leaders

• Assign individual accountabilities to leaders to support the vision and change effort

• Executive leadership alignment workshops

• Develop leadership feedback process

Major Activities

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- Build consensus and develop leadership change and communication plans to launch and sustain efforts and set the pace for change.- Launch and sustain leadership visibility and endorsement in change efforts.

Implementation Phase

Pre-Implementation

Phase

• Develop leadership action plans to drive the change effort

• Determine specific roles of leaders in change process

• Deliver Leadership Workshops

• Develop and deliver leadership communication toolkits

• Engage key leaders in the change through face to face contact

• Build consensus and resolve conflicts as they arise

• Prepare leadership for their role in the implementation

• Develop Leadership Change Roadmap

• Assess overall effectiveness of the effort and implement supplemental leadership strategies as needed

• Conduct Leadership pre-go-live briefings

North Carolina HR/Payroll Leadership Alignment Activities

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Organizational Transition - Activities

Major Activities

Conduct change readiness and impact assessments

Assess as-is culture and outline approach for required culture change

Identify implications for change, including enablers and barriers

Identify high level impacts of process and system change

Major Activities

• Develop culture change action plan

• Define and document current organizational structure

• Define desired organizational structure

• Develop workforce transition plans

• Develop detailed impact assessment down to the role level

• Document roles and responsibilities for changed and new positions

• Document competency list and definitions

• Implement new organizational structure

• Implement reward and recognition program for desired behaviors

• Implement workforce transition

• Job Impact communication and training

• Conduct post-implementation assessments to measure the effect of the change and make adjustments as needed

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- Assess change readiness and define desired culture and behaviors.- Implement work plan activities and measure success through assessments and surveys. - Conduct activities to ease employee transition to new business process and/or roles.

Implementation Phase

Pre-Implementation

Phase

Assess the impact of coming changes on the workforce and organization.

Understand the current organization, including its culture, leadership and decision making processes.

North Carolina HR/Payroll Organizational Transition Activities

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Communications - Activities

Major Activities

• Assess communication objectives, identify barriers and challenges

• Conduct stakeholder assessment and analysis

• Develop theme and brand for transformation

• Determine key organizational messages

• Develop preliminary project communications (e.g., announcement)

• Identify and build communication network

Major Activities

• Create detailed communication strategy/plan

• Design and implement feedback mechanisms/tools

• Establish communication infrastructure and Change Network

• Develop communication materials and tools

• Update and implement communication plan

• Communicate progress and celebrate successes

• Assess communication effectiveness and adjust accordingly

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Develop a change communication strategy/plan that integrates objectives, target audiences, specific key messages, and appropriate delivery tools/media.Deliver communications to actively involve stakeholders and assess communication plan effectiveness.

Implementation Phase

Pre-Implementation

Phase

Fully understand stakeholders and their communication needs.Identify Change Network.Assess current communication environment to identify gaps/needs, and develop initial project communications.

North Carolina HR/Payroll Communication Activities

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Capability Transfer - Activities

Major Activities

• Develop project team training strategy

• Identify subject matter experts for training development

Major Activities

• Conduct project team training needs assessments

• Develop project team training plans

• Deliver project team training

• Develop Capability Transfer approach

• Assess current capabilities and gaps

• Develop an overall Capability Transfer Plan to eliminate gaps

• Track implementation of capability transfer plan

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Ensure that the appropriate knowledge and skills are transferred to state and agency associates at the right time

Implementation Phase

Pre-Implementation

Phase

Project team training needs are identified and planned-for

North Carolina HR/Payroll Capability Transfer Activities

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Project Team Effectiveness - Activities

Major Activities

• Identify and select team members and develop back-fill plan

• Develop project and team structures, governance model and processes

• Define project goals and success criteria

• Prepare on-boarding / kick-off meeting

• Orient team members and key stakeholders

• Define project structure, roles and responsibilities

Major Activities

• Develop project team charter

• Develop Project Charter

• Develop project team communication process

• Conduct Project Kickoff meeting

• Develop project rewards and recognition program

• Maintain issue resolution and status reporting

• Develop project team member review process (for state staff)

• Conduct Quality Assurance review

• Develop and execute project roll off plan for employees

• Determine lessons learned

• Mark key milestones and accomplishments throughout the project and celebrate success along the way

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Conduct project implementation kick-off and orient project team members.Perform on-going project management activities, define performance measures, and develop teambuilding and team member rewards strategy.Define project wrap-up activities.

ImplementationPhase

Pre-Implementation

Phase

Define and kick-off the project and orient project team members and key stakeholders on the objectives, scope, timeline and logistics of the project

North Carolina HR/Payroll Project Team Effectiveness Activities

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End User Training - Activities

Major Activities

• Conduct end-user training assessments

• Assess existing training resources and facilities to determine leveragability

• Develop training strategy and plan

• Identify training tools and vendors

• Identify subject matter experts for training development

Major Activities

• Create end-user documentation templates

• Prepare Power User Strategy

• Design end-user curriculum and develop training content and materials

• Assess training database environment

• Training environment set-up

• Select and on-board trainers (and/or Power Users)

• Develop and roll out pilot training materials

• Design training delivery/logistics

• Test training materials and exercises

• Conduct training

• Prepare Post Go-Live Training Support Plan

• Capture lessons learned and revise training materials as appropriate

• Develop post-project training plan and materials

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Develop a training strategy that encompasses the design, development, and roll-out phases of the training process. Deliver training and gather feedback to maintain effectiveness and applicability. Develop post project training initiatives to address potential gaps.

ImplementationPhase

Pre-Implementation

Phase

Conduct high level assessments to contribute to the development of the training strategy and prepare for training.

North Carolina HR/Payroll End User Training Activities

Business Process Improvement

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Business Process Improvement Proposed Approach/Timeline

Approval received from PSC to go forward with initiatives (March 16th)

Convene JAD Process owners for BPI workshops – April 6, 2005

- Review and Determine Processes in scope for short term attention

- Develop High level milestones and objectives/targets

Present go forward HR initiatives to HR Director’s Meeting – April 15

Present go forward Payroll initiatives to CFO’s in late April

Conclude Pre-Implementation Activities – August/September

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BPI

•Met with the following Process Owners: Plan and Manage HR Programs and Plans Gerry Fisher Design and Maintain Organizational Structure Joe Stroup Manage Recruiting, Hiring and Integration Helen

Dickens Develop and Train Workforce Ann Cobb Manage Compensation and Classification Duane

Hinkle Maintain Benefits and Enrollment Pani Tademeti Administer Benefits Pani Tademeti Monitor Employee Safety & Health Mike Chapman Manage Employee Relations Drake Maynard Manage Employee Separation Betty Smith

•Received commitment to proceed with BPI in all processes

•Next Steps Educational Session to outline specific tasks, requirements and support – Late

April/Early May

Open Discussion

Action Items Review

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Upcoming Meetings

April 15 – HR Director Meeting - PDC Commission Room - Peace Street

May 5 – Next PMC Meeting TBD – CFO Meeting TBD – CIO Meeting