1. HR/Payroll Modernization PSO Board May 21, 2013

2. Agenda Project Overview Timeline Efforts This Year o Procurement / System Selection o Business Process Redesign Next Steps University Involvement 5/21/2013Professional Staff Organization Board Meeting2

3. The HR/Payroll Modernization Replace the existing payroll system Implement a modern HR system Move to standard HR and payroll processes and practices 5/21/2013Professional Staff Organization Board Meeting3

4. It Happened in 1982… E.T. made movie history Michael Jackson released Thriller USA Today was first published The Epcot theme park at Walt Disney World opened to the public The Weather Channel went live The Commodore 64 was released UWs HEPPS system was launched 5/21/2013Professional Staff Organization Board Meeting4

5. UW: Now & Then 5/21/2013Professional Staff Organization Board Meeting5

6. UWs Compliance Profile has Changed 5/21/2013Professional Staff Organization Board Meeting6

7. Examples of Issues Facing UW Writes off ~$200,000 annually in unrecovered wages Cant determine productivity vs. non-productivity hours Multiple systems are used to gather time & leave New employees experience productivity delays waiting for manual processing of access/permissions Inability to effectively track required training 5/21/2013Professional Staff Organization Board Meeting7

8. HR/P Modernization Benefits Improved levels of service Accurate, timely employee data Bandwidth to focus on strategic initiatives Improved competitiveness Reduced operational risk Productivity savings 5/21/2013Professional Staff Organization Board Meeting8

9. This Impacts You All employee information in one place Provides updated data in real-time Eliminates 68% of redundant processing steps now required to record time, process payroll, and update leave records Automates open enrollment for benefits Allows online information submissions, such as for life changes (marriage, divorce, children) Tracks mandatory trainings and renewal/expiration of required certifications Provides online career planning Automates approval processes 5/21/2013Professional Staff Organization Board Meeting9

10. TIMELINE

11. Timeline: April 2013 – January 2014 Apr-Jun 2013Jul-Sep 2013 Oct 2013 -Jan 2014 Stage 3 – System Demos, Cost Proposals & Contract Issues Stage 4 –Demos, Revised Costs, IPS, Contract Negotiations Announce Finalists July 2013 Vendor Signs Contract October 2013 Secure Contact Approval from State & BOR Contract Fully Executed January 2014 Procurement Business Process Redesign Redesign Processes Build Roadmap Communications Develop & Execute on Implementation Plans We are here Benchmarking Data Collection, Validation & Review Results Plan Execute Communications Plan Project Phase Workshops Complete 5/13/2013 5/21/2013Professional Staff Organization Board Meeting11

12. Improve Integration Design Selection & IPS Fit/Gap Production Support FY13FY14FY15 FY16 FY17 FY18 Contract Signed Jan 2014 RFP Released Sept 2012 Redesign Process Plan/Kick- Off Design Configure & Build Unit, System, Integration, & Regression Testing Parallel Processing Cutover Stabilization & Optimization Training & Outreach (Phased) Design & Implementation (Phased) Estimate 3-5 Years Procurement Business Process Redesign Project Phase Develop & Execute Implementation Plans Timeline: 2013 - 2018 Communications 5/21/2013Professional Staff Organization Board Meeting12

13. PROCUREMENT Vendor / System Selection

14. What Were Seeking Off-the-shelf software product Hosted or fully managed solution (SaaS) Use a non-customizable system Solution that scales to UWs complex needs 5/21/2013Professional Staff Organization Board Meeting14

15. The System Must Support… 40,000 staff and faculty 11,000 medical center employees 300+ employees in 26 other countries 4,400 graduate students with health benefits 365+ earning types (regular, hourly, etc.) 165+ unique pay differentials or premiums 2,000 retirees 9 unions representing 16,000+ employees 5/21/2013Professional Staff Organization Board Meeting15

16. Current State of Information Flow Compensation Payroll OWLS Timesheet Email Access Development Performance Management Succession Planning No system Labor Relations Benefits Hiring & Onboarding Separation 5/21/2013Professional Staff Organization Board Meeting16

17. Future State with New System Compensation Payroll Development Performance Management Succession Planning Labor Relations Benefits Workforce Management Hiring & Onboarding Separation 5/21/2013Professional Staff Organization Board Meeting17

18. A Four-Stage Selection Process Stage 1 6 bids submitted in October 2012 5 invited to submit more detailed proposals Stage 2 4 detailed proposals received on January 2013 1 bidder disqualified due to an incomplete response Stage 3 In March 2013, 3 vendors invited to provide solution demos, submit initial cost proposals, and negotiate contract terms 1 bidder withdrew due to licensing and contracting issues with a sub-bidder Stage 4 2 vendors will provide campus demonstrations in August 2013 and submit revised cost proposals 1 final vendor announced in October 2013 5/21/2013Professional Staff Organization Board Meeting18

19. BUSINESS PROCESS REDESIGN

20. What is Business Process Redesign? Started with industry best practices Obtained input from UW representatives Designed future-state processes Process Leads Modify Process Flow (1- 4 people) Focus Group Modify Process Flow (5 – 13 people) Workshop To Review Process Flow (20 – 40 people) Best Practice Process Inputs 5/21/2013Professional Staff Organization Board Meeting20

21. BPR Workshops Workshops by Process Area Benefits AdministrationTime Collecting & Time Keeping Compensation Strategy & PlanningTraining & Development Disability AccommodationViolence Prevention Hazards & IncidentsWorkforce Management Leave Administration Off-Cycle Payroll Processing On-Cycle Payroll Processing Workshops Held Closer to Implementation Ongoing & Year-End Payroll ProcessingHR Communications Performance ManagementLabor Relations SeparationsOrganization & Position Management Talent AcquisitionSuccession Planning 5/21/2013Professional Staff Organization Board Meeting21

22. NEXT STEPS & UNIVERSITY INVOLVEMENT

23. Next Steps Finalizing a detailed plan – or roadmap o Scope o Prioritize o Sequence Initial projects from BPR begin this month Open system demos for 2 finalists in August Seeking Board of Regents and State approval by January 2014 5/21/2013Professional Staff Organization Board Meeting23

24. Participation to Date More than 300 people involved in BPR 75 subject matter experts & technical / functional advisors for Procurement 50 units involved in Benchmarking 15 Campus Advisory Group Members 5/21/2013Professional Staff Organization Board Meeting24

25. Opportunities for Involvement Selection & IPS Fit/Gap FY13FY14FY15 FY16 FY17 FY18 Contract Signed Jan 2014 RFP Released Sept 2012 Redesign Process Plan/Kick- Off Design Configure & Build Unit, System, Integration, & Regression Testing Parallel Processing Cutover Stabilization & Optimization Design & Implementation (Phased) Estimate 3-5 Years Procurement Business Process Redesign Project Phase Develop & Execute Implementation Plans = provide input into process redesign = view system demos (Stage 4, August 2013) = participate in design sessions or testing 5/21/2013Professional Staff Organization Board Meeting25

26. https://f2.washington.edu/teams/hrp hrpmod@uw.edu