Project Management Committee MeetingMarch 3, 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 James Stovall, Deloitte Katie Beacham, Deloitte Parham Gerami, Deloitte Ed Brodsky, Deloitte Doug Oliver, Deloitte Stas Krapivnik, OSC

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Agenda

Welcome, Introductions and Agenda Committee Update HR/Payroll Project Status JAD Sessions Review Proposed General Statute Changes Business Process Redesign Strategy Change Management & Communications Open Discussion Action Items Review Adjourn

Committee Update

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Committee Update - Initiatives

NCTIME Project SBIP News

– Data Warehouse– Legislative Update

HR/Payroll Project Status

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Status Report

Activities Completed This Period

2/4/2005 – 3/3/2005

Completed HR JAD sessions Began Payroll JAD sessions Began Technical work stream Conducted follow-up meetings as needed Submitted draft of HR Group 2 preliminary requirements and

process flows Continued development of change management strategy options Completed and began distribution of marketing pamphlet (tri-fold) Shared project news and preliminary requirements with agency

HR directors to begin to engage them in the project Conducted general statute research Prepared and submitted ITS monthly report for January Hired intern

Status Report

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Status Report

Plans for Next Period

3/4/2005 – 4/7/2005

Conduct remaining JAD Sessions for Payroll Conduct follow-up meetings as needed Prepare and conduct CFO meeting (late March) Prepare and conduct CIO meeting (early April) Submit draft of Payroll preliminary requirements and process flows Continue Technical work stream Continue development of change management strategy options Conduct change management focus group and follow up interviews Outline reengineering and organizational strategies deliverable Conduct second HR Directors meeting on March 15, 2005 Complete overview meetings with technical management Conduct PSC meeting on March 16, 2005 Begin to update SB991 for Phase 2 Finalize QA approach Prepare and submit monthly ITS report for February

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

JAD Session Review

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JAD Sessions Completed

HR JADs Manage Compensation and Classification - 20 participants

– Process Owner - Duane Hinkle Maintain Benefits and Enrollment - 18 participants

– Process Owner - Pani Tademeti Administer Benefits - 11 participants

– Process Owner - Pani Tademeti

Payroll JADs Collect Time and Attendance - 14 participants

– Process Owner - Kathy Reitzel Manage Payroll Pre-Processing - 47 participants

– Process Owner - Phyllis Creech

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JAD Session Observations

System support of variable pay structures Benefits enrollment processes Move Payroll to more strategic activities vs. transactional Elimination of multiple agency employee payroll records Develop strong Payroll processing policies and procedures Automate online time collection Develop service center capabilities (employees and payroll

processing) Bi-weekly payroll statewide Eliminate multiple (12) leave tracking systems and replace with

standardized policies Develop state wide standards for health plan employee

handling/reconciliations Eliminate split check/multiple W2 issues Clear separation of duties between HR and payroll

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Barriers

Sheer magnitude of project History of potentially failed state projects Current lack of standardized processes among agencies Resistance to change, uncertainty, don’t see the need to change Fear of losing job Barely have time to do job, so I don’t have time to learn a new

way Resources being pulled away from jobs to help with

implementation Need management to be willing to provide capable resources for

implementation and to provide support Fear of change created by implementing new technology Support from senior leadership Fear of identity theft

Proposed General Statute Changes

Business Process Redesign Strategy

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Business Process RedesignAdvantages and Risks of Doing BPR Now

Potential Advantages Realize some immediate efficiencies and standardization

– Capitalize on current project momentum– Achieve successes that can be lauded as “early project wins”

Move closer to where the new technology will take us– Ease into the changes that are coming– Slowly reduce resistance to change

Reduce level of effort required during implementation– Spread BPR and change effort across greater timeframe to reduce risk and

resistance Surface strategic questions, and potentially make decisions on them

– Address key issues now rather than during the relative tumult of implementation

Potential Risks Investing in changes that may have to be revisited later

– Only implement changes that are either indifferent to the new technology or that support it

Inability to agree upon which changes to implement now– Only focus on changes with highest reward for the lowest cost and effort

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2004 20062005

Requirements

2007 2008

HR

Payro

ll

Pro

ject

Design/Blueprint Build

BPR Work Stream Related to Implementation Timeline

Selection

Pre-Implementation

BPRSystem BPR

prep

BP

R

BPR Rollout

Independent of System

Improvements

System Enabled Improvements

System Rollout

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Opportunities for Business Process Redesign Changes

Independent of System A single application for applicants to use when applying for any

job within the State More streamlined approval processes in many areas – Enabled by

Workflow A standardized list of skills and competencies to be used for

Career Development, Job Descriptions, and Performance Review Simplified, standard job descriptions

System Enabled A consolidated database of applicants with standardized,

automated screening processes Treating employees who move between agencies as transferred

employees rather than terminating them and rehiring them Electronic, rather than paper Organization Charts

Change Management & Communications

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Change Management Update

Completed North Carolina HR/Payroll Project Tri-fold

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

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

readiness

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Ongoing Change Management Activities

North Carolina should pursue the following change management activities prior to the implementation phase: Leadership Alignment

– Prepare leadership alignment interviews and activities plan (actions, communications, etc. leaders should perform)

Communication– Identify and build the change network

• Individuals throughout the enterprise with key change management and communication roles and responsibilities

– Increase project-related communications• E.g. website, regular project briefing documents/newsletters, external communications…

– Develop Implementation Phase Communications Plan

Organization Transition– Conduct change readiness assessment

• Of those being affected, how ready are they for the coming change (culture, skills, organization)

– Conduct high level change impact assessment• Who will be affected, how, and when?

Training and Capability Transfer– Develop high-level training and capability transfer strategy (e.g. classroom training vs.

online training, who will conduct training - state vs. contractor, identify training tools, etc.)

Project Team Effectiveness– Develop project team structure, on-boarding and training plans, etc.– Develop clear project governance structure, processes, and roles

• E.g. steering committee, project sponsorship, issue management and escalation…

Open Discussion

Action Items Review

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Upcoming Meetings

March 15, 2005 – HR Directors Meeting March 16, 2005 – PSC Meeting March 28, 2005 – CFO Meeting (tentative) April 7, 2005 – PMC Meeting April 13, 2005 – CIO Meeting (tentative)