Presentation on theme: "Achieving HR Best Practices through PeopleSoft Human Capital Management Praveen Gupta January 17, 2007."— Presentation transcript:
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
Norcal OAUG 2007 | January 17, 2007 3 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
Norcal OAUG 2007 | January 17, 2007 4 Best Practice Defined Hackett’s Best Practices are certified when there is a correlation with world-class performance 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
Norcal OAUG 2007 | January 17, 2007 5 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 EFFECTIVENESS EFFICIENCY 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™ 1 st Quartile Breakpoint
Norcal OAUG 2007 | January 17, 2007 6 With proven best practices and effective technology enablement we benefit from greater returns of efficiency and effectiveness Complexity Reduction Percent of companies utilizing common HR application deployed globally Source: The Hackett Group. 2006 BON Number of HR Staff per 1000 EEs Source: The Hackett Group. 2006 BON
Norcal OAUG 2007 | January 17, 2007 7 HR Cost per employee 2006 Improvement gains among World-Class and Peer Group Companies Number of days to fill a manager position, 2006 Source: The Hackett Group. 2006 BON
Norcal OAUG 2007 | January 17, 2007 8 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
Norcal OAUG 2007 | January 17, 2007 9 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);
Norcal OAUG 2007 | January 17, 2007 10 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;
Norcal OAUG 2007 | January 17, 2007 11 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 ;
Norcal OAUG 2007 | January 17, 2007 12 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.
Norcal OAUG 2007 | January 17, 2007 13 Achieving Payroll Best Practices Through PeopleSoft HCM The Implementation Targeting Architecture Construction Migration Evolution
Norcal OAUG 2007 | January 17, 2007 14 12345678910 Architecture Ongoing Project Management/Program Office Ongoing Change Management & Communications Requirements and Fit/Gap Analysis Technology Architecture Planning Implementation Planning Solution Design Vision Validation Business Case Development Best Practice Vision Quick Wins Development Quick Wins Implementation Project Initiation Executive Interviews Current State Review Achieving Payroll Best Practices Through PeopleSoft HCM The Implementation
Norcal OAUG 2007 | January 17, 2007 15 123456789101112131415161718 Integration Testing Data Conversion Production Cut- over Planning Education, Training, & Coaching Custom Development Production Environment Deployment Production Cutover Technical Knowledge Transfer System Optimization Conference Room Pilot Test Planning Application Configuration Production Cutover (Acceptance) Detailed Org. Design Policy & Procedure Development Quick Wins Implementation System Testing Process Detail Milestones 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 Achieving Payroll Best Practices Through PeopleSoft HCM The Implementation
Norcal OAUG 2007 | January 17, 2007 16 Case Study
Norcal OAUG 2007 | January 17, 2007 17 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
Norcal OAUG 2007 | January 17, 2007 18 Current State process Employee Data Management- Data Entry and Record setup
Norcal OAUG 2007 | January 17, 2007 19 PeopleSoft Best Practice Implementation Employee Data Management- Data Entry and Record setup Security PeopleSoft HRMS Business Email Address & LDAP Password
Norcal OAUG 2007 | January 17, 2007 20 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.
Norcal OAUG 2007 | January 17, 2007 21 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.
Norcal OAUG 2007 | January 17, 2007 22 Questions