1. UC San Diego continues on the path toward administrative excellence and efficiency UC P ayroll, A cademic Personnel, T imekeeping & H uman Resources (UCPATH) 02 May 2012

2. A GENDA Overview Project Team Introduction Project Background & Goals Project Approach UCPath System Implementation (PeopleSoft/Campus Apps & Tools) Guiding Principles Integration Strategy Next Steps Bi-weekly Payroll Conversion UCPath Center (Shared Services Center) Components Escalation Model Campus v. Center v. UCOP Roles & Responsibilities (High-level) FAQs Next Steps 2 Timelines Wrap Up/Open Discussion

3. PROJECT TEAM

4. Structure & Governance 4 Executive Sponsors Executive Steering Committee Management Workgroup Monir Ahmed – UCM Susan Carlson – UCOP David Ernst – UCOP Steve Relyea – UCSD Christina Valentino - UCSC Gretchen Bolar – UCR Ron Cortez – UCSB John Meyer – UCD Dan Sampson – UCOP John Wilton - UCB Wendell Brase – UCI Dwaine Duckett – UCOP Jack Powazek – UCLA Barrie Strickland - UCSF Mike Allred – UCD Mike Baptista – UCOP Karl Heins – UCSB Don Larson – UCSD Pat Price – UCI Dan Sampson – UCOP Peter Woon – UCI MC Rich Andrews – UCI Dave Curry – UCLA Sheryl Ireland - UCM Char Moreno - UCSC Jeannine Raymond – UCB Nancy Tanaka - UCOP Allison Baird-James – UCLA Gwen Lake – UCLA MC David Odato – UCSF Chuck Rowley – UCR Paul Weiss - UCOP Shared Services Delivery Design Team Mike Baptista – UCOP Pat Price – UCOP Cathy Shoenfeld- - UCSC Karen Hull – UCD Kristina Larsen – UCSD Cynthia Leathers - UCSF Jeannine Raymond – UCB Nancy Tanaka – UCOP Lubbe Levin – UCLA Marilyn Voce – UCR Mark A. Speare – UCLS MC Monir Ahmed - UCM Allison Baird-James – UCLA Pamela Peterson – UCSC Reid Hollyfield – UCSD MC Tricia Hiemstra - UCSB

5. P ROJECT T EAM Structure & Governance 5 UCOP Project Management Office Practices Board Change Control Board

6. P ROJECT T EAM Structure & Governance 6 UCSD Executive SponsorsUCSD Management Team Gary Matthews Vice Chancellor Resource Management & Planning Ed Babakanian Medical Center Chief Human Resources Officer Steve Relyea Vice Chancellor External & Business Affairs Paul Craig Medical Center Chief Human Resources Officer Suresh Subramani Executive Vice Chancellor Academic Affairs Reid Hollyfield Medical Center Controller Vacant Medical Center Chief Executive Officer Kristi Larsen Assistant Vice Chancellor Academic Personnel Don Larson Assistant Vice Chancellor & Controller Tom Leet Assistant Vice Chancellor & Chief Human Resources Officer Min Yao Assistant Vice Chancellor & Chief Information Officer

7. Structure and Governance UCSD Program Management OfficeUCSD Core Implementation Team Antoinette Hock Program Director Courtney Morris Medical Center Compensation & Benefits Director Chakri Bokka IT Manager/Project Manager Kelly Maheu Academic Personnel Compensation Director Kian Colestock IT Strategy Don Portugal Medical Center Business Applications Ray Rodriguez Staff Human Resources Compensation Director Pearl Trinidad Payroll Director 7 Additional UCSD resources support the implementation teams such as extended subject matter experts (SMEs) and VC HR contacts P ROJECT T EAM

8. BACKGROUND & GOALS

9. Drivers for PPS Replacement PPS is almost 30 years old and no longer meets the highly complex and evolving operational needs of the University. There are 11 different variations of PPS in use today throughout the University, which are costly and risky to maintain and support. The limitations of PPS drive workload redundancy and process inefficiency. PPS must be replaced in order to streamline and standardize payroll and HR operations. 9

10. B ACKGROUND & G OALS Drivers for Shared Services Center HR/APO/payroll/timekeeping operations support approximately 185,000 UC employees. About 6000 FTEs performing HR, payroll and timekeeping duties at a cost of over $500 million annually. HR and payroll staff to the number of employees served was higher at UC than at 90% of benchmarked organizations. Significant opportunities remain for improving payroll and certain HR services. 10

11. B ACKGROUND & G OALS Payroll FTE UC is far below the 10 th percentile of the Pricewaterhouse Coopers benchmark Other metrics, such as employee count and total W-2s, result in staffing at far less than the 10 th percentile. NOTE: Numbers reflect UC-wide findings. Individual campus numbers may vary. HR FTE UCBenchmark Standards UC Benchmark Standards UC is below the 10 th percentile of the Pricewaterhouse Coopers benchmark Other benchmarks, such as College and University Professional Association, result in similar findings. NOTE: Numbers reflect UC-wide findings. Individual campus numbers may vary. 11

12. B ACKGROUND & G OALS Two Distinct Projects with Different Goals 12 Single payroll and HRIS solution for all UC Real-time payroll processing Improved analytical reporting & decision-making PPS Replacement Shared Service Center Centralized and off-site dedicated customer support staff to provide accurate and timely information by phone, email or chat Manager/employee self-service Payroll and HR services delivered at substantially lower cost than today Enabled through standardization and simplification

13. Keys to Success B ACKGROUND & G OALS Keys to Success Organization Readiness/Willingness to Change Major change requires extraordinary commitment, patience and some hard decisions. Scope Management Changes to the project plan or system will be made sparingly and collaboratively with careful consideration of tradeoffs. Speed of Decision Making This project will need to maintain significant momentum, resolving issues efficiently and effectively. While broad input will be needed and sought, committee consensus with extended deliberations will not always be possible. Vendor Management Oracle will play a critical role during implementation and in ongoing operation of the hosted technology platform. Both Oracle and UC will need to be diligent about their respective accountabilities, including service quality and issue management. 13

14. PROJECT APPROACH

15. Collaborative Design Teams representing all campus & medical centers participate in the design of future business processes Business process will be designed once for all locations at the beginning, not for each wave. Cross-functional design team determined scope of services and blueprint for the new UCPath Center PMOs from all locations meet regularly with the central UCPath PMO Project governance includes representation from all locations 15

16. 20152013201220112014 Phase 1: Implement HR, Payroll and GL integration solutions, replacing PPS ”must-have” functionality, improving core HR and payroll processing capability and supporting HR analytics and decision support. Phase 2: Implement systemwide time and attendance capability, significantly reducing business process redundancies, shadow systems and paper processing. Phase 3: Achieve end-to-end integration with expanded HR functionality, a UC-wide protal to facilitate access to all systems. Phase 1: Human Resources and Payroll; UCPath Center Phase 2: Time and Attendance Phase 3: Integrated Portal; additional HR functionality Wave 1 locations will be the first locations to implement Phase 1 and Phase 2. UCLA/UCLA Medical Center/ASUCLA UC Merced UC Santa Cruz UCOP P ROJECT A PPROACH Phased Implementation 16

17. “Waved” Technology Rollout Implementation will take place in several waves made up of small groups of campuses/medical centers. Each wave is able to execute more efficiently and effectively by building on the experience and lessons learned in the previous wave. The “wave” approach: Manages risk Builds momentum Provides proof of success UCSD is a Wave 2 campus ● UCOP P ROJECT A PPROACH 17

18. P ROJECT A PPROACH Overall Scope Implement PeopleSoft as a replacement system for PPS a.Mapping PPS data to PeopleSoft b.Configure, build, test and launch of PeopleSoft environment c.Training on interactions with PeopleSoft Creation of shared services center a.Facility selection and build out b.Technology assessment, selection and installation c.Facility staffing d.Staff training Campus activities associated with technology roll out a.Tier 1/Tier 2/Tier 3 interfaces b.Bi-weekly payroll conversion for non-exempt c.Other activities as identified Business Process Design a.Documentation of “as is” and “to be” processes b.Training on modified/new processes 18

19. PPS REPLACEMENT (ORACLE ON DEMAND AND CAMPUS TECHNOLOGY PROJECTS)

20. PPS R EPLACEMENT Integration Guiding Principles Reduce or eliminate the amount of dual entry between PeopleSoft and other systems Ensure that the business requirements are met by allowing well-defined integration of internal and 3rd party systems to PeopleSoft Facilitate meeting the vision and requirements set by the UC PeopleSoft implementation program, including an integration architecture that serves as a foundation for the system into the future Facilitate the streamlining and standardization of current processes and business practices. 20

21. PPS R EPLACEMENT PPS is More Than Just a Payroll System PPS is highly customized with a broad spectrum of functionality that is not typically integrated in one system. Replacing PPS with a modern system means disentangling the parts. 21 PPS today is a single system that performs many different functions. When replaced, there will be separate modules for HR, Timekeeping, Benefits and Payroll as part of PeopleSoft. There will also be integration between Payroll and campus financial systems.

22. PPS R EPLACEMENT Interface Consolidation Consolidated Integration Architecture Consolidated Current State Future State 22 Fifteen Becomes One

23. 23 PPS R EPLACEMENT UCPath Future State I NTEGRATION ARCHITECTURE DIAGRAM

24. Tier 1 Interfaces: Tier 2 Interfaces: Tier 3 Interfaces: Any system, application, process or business dependency that relies on directly using or connecting with UCOP PPS data or functionality. Any system, application, process or business dependency that relies on directly using or connecting with ACT systems level data or functionality. Any system, application, process or business dependency that relies on directly using or connecting with the ACT Data Warehouse or any campus department shadow system. 24 PPS R EPLACEMENT Interface Definitions Our objective is to provide a Data Warehouse with Payroll/HR data that closely resembles what is available today and to make the information accessible in a similar way as in the current state. However there will likely be some data changes based on business process re-engineering, which will in turn change the type of data captured and propagated.

25. PPS R EPLACEMENT Next Steps A Data mapping document will be available, in the next 3-4 months, that identifies the data changes that will enable the campus systems to start planning. A QA/Build environment for the Data Warehouse, will be made available, in the next 6-8 months, to facilitate the campus/department level retrofit activities. Work will continue with system-wide and/or UCSD gap analysis with gap closure through: PeopleSoft modification/customization (not desired) Change in business process, practice or policy Adoption of two pay cycles system-wide (monthly and bi-weekly) Interfaces/Data Warehouse/Application Development MTE (My Time Entry) Interface inventory, strategy and execution Data cleanup 25

26. PPS R EPLACEMENT Bi-weekly Payroll Conversion Recommendations The Functional Requirements Work Group recommends to the Management Work Group that pay cycles be standardized for the University of California as follows: Academic appointees will be paid monthly Exempt campus staff will be paid monthly Most medical center employees will continue to be paid biweekly ( for San Diego, this will be ALL medical center employees) All non-exempt employees will be paid biweekly Employees who have both exempt and non exempt appointments will default to BW. 26

27. PPS R EPLACEMENT Bi-weekly Payroll Conversion Updates Work group formed at UCOP to address BW conversion for all campuses. First meeting will be 16 May 2012 Due to project schedule extension new timeline is being considered for UCSD bi-weekly conversion. Process of consulting labor relations beginning. Currently, departments are advised against converting or bringing new employees on as BW sub 1. Timekeeping system and PPS conversion in process to accept exception time reporting (sub 1) bi weekly. More information expected by the end of June as we begin implementation planning. 27

28. SHARED SERVICES CENTER

29. S HARED S ERVICES C ENTER ( DRAFT ) Why a System Wide Shared Services Center? The UCPath Center will help UC more fully realize the goals of UCPath, which include: Delivering service with increased efficiency, accuracy, and quality Achieving sustainable long-term cost savings by standardizing and simplifying common business processes and technology infrastructure system wide Improving UC’s ability to respond to changing business and reporting needs 29

30. S HARED S ERVICES C ENTER ( DRAFT ) Operations Center Functional Operations Teams (HR WFA/Payroll/Benefits) Processing Transactions Mass changes Program administration Compliance Response to escalations HR Information System Table maintenance System issue identification and resolution Security Reporting/super user function Business analysts Fulfillment/Records Document imaging/indexing Incoming and outgoing fax/mail and fulfillment Filing, retrieval, and storage of records Quality Service delivery measurement New employee and ongoing service delivery/process training Customer service quality monitoring Process documentation and auditing Contact/Call Center Contact /Call Center Teams Direct customer telephone interactions Support of employee and manager inquiries Processing of simple transactions as a result of telephone, e-mail, or other interactions Management of employee life and work events Call and issue monitoring Initiating escalations Support Team(s) Contact center scheduling Administrative support 30

31. Shared Service Center Escalation Model Employee/Manager Tier Understand the specific situation Apply policies, programs, or plans Document and escalate cases as appropriate Offer alternatives and considerations to employees Investigate and resolve escalated cases Interpret policies, programs, or plans Tier 2 Tier 2 Escalation in SSC Specialized Knowledge within Shared Services Field initial inquiry Ask clarifying questions Provide policy, program, or plan information Document cases Execute approved exceptions Warm transfer to Tier 2 as appropriate 1 Tier 1 System wide Service Center Initial Inquiry Web Phone Online Case Advise HR Leaders and staff on policy exceptions and escalated cases Locate external resources to supplement expertise and knowledge as needed Manage high-risk, compliance-driven cases to resolution Tier 4 Office of the President Tier 4 Provide approvals, decisions, and communications Interpret compliance policies, programs, and plans Advise managers on employee relations issues Manage high-risk, compliance-driven cases to resolution Investigate employee disputes and claims Participate in Tier 1-3 case resolution as needed 3 Tier 3 Escalation to campus Campus Resources S HARED S ERVICES C ENTER ( DRAFT ) 31

32. S HARED S ERVICES C ENTER ( DRAFT ) High Level Roles & Responsibilities RolesMain Responsibilities Office of the President System wide policy and program design Vendor selection and SLA monitoring Leading-practice research Consulting to senior leaders on system wide issues Manage escalated cases or policy exception requests Creating frameworks and toolkits for use by campuses and medical centers for system wide initiatives Locating external resources to supplement expertise and knowledge Involving campus/medical centers and shared services in system wide policy and program designs System wide Shared Services Center Processing payroll for all campuses/medical centers Processing tax payments Managing tax payments and payroll compliance Handling routine and non-routine employee and faculty inquiries around policies and process Providing sys navigation support and password resets Processing individual, as well as mass transactions Administering system wide HR programs Managing the system wide HR and payroll portal Escalate cases within Shared Services or to COEs Managing vendor invoices and payments; manage day-to- day vendor issues and interfaces Managing HR data and standard reporting; consult on ad hoc data and reporting needs Manage HR records and compliance Providing consulting for new processes and programs and application to HR/payroll system Campus HR, Payroll, and APO Consulting with department/school leaders on issues affecting people Supporting the communicating and implementation of new system wide policies and programs Designing and implementing campus or medical center specific policies or programs Designing and executing existing or new campus/ medical center recruitment, rewards, and learning and development programs Conducting employee relations investigations and managing resolutions Posting payroll data to general ledger Designing and executing existing or new campus/ medical center recruitment, rewards, and learning and development programs or other programs that are specific to the entity Collecting and analyzing campus/medical center specific data needs Manage escalated cases or policy exception requests Collaborating with system wide COEs on new policy or program design Refer faculty and staff to shared services channels 32

33. S HARED S ERVICES C ENTER ( DRAFT ) Frequently Asked Questions Answer There will be two parts of the systemwide shared service center. The first is a Contact/Call Center. The second is an operations center. Question The location has not yet been determined. A decision will be made by EVP of Business Operations Nathan Brostrom and CFO Peter Taylor in May 2012. Where is the location of the Systemwide SSC? Once all locations have transitioned to UCPath and systemwide Shared Service Center in 2014, there will probably be between 500-600 employees. How many employees will be in the SSC? Payroll, Benefits Administration, Leave Management and Human Resource Workforce Administration What functions will be included? Employee and Labor Relations, Talent and Performance Management, Recruitment and Staffing activities, and Learning services What will NOT be included? How will the SSC be structured? 33 More FAQs can be found on the Blink site at: http://ucpath.ucsd.edu/ http://ucpath.ucsd.edu/

34. S HARED S ERVICES C ENTER Next Steps Determine final location of UCPATH Center UC Davis and UC Riverside final locations Decision to be made in May Creation of scope of services documents Roles & responsibilities between campuses and service center Will not address production/operations component Available in May (final version) Generation of Blueprint Report Detailed report (approximately 100 pages) of information gathered from design workshops, BPM and CRP sessions Summary will also be provided Detailed report due in May 34

35. UCPATH TIMELINE

36. P ROJECT T IMELINE Combined Timeline

37. P ROJECT T IMELINE PPS Replacement Timeline Wave 1*: UCLA, UCLA Health System, UCM, UCSC, UCOP Wave 2: San Diego, TBD Wave 3: TBD * Shared services center created in Wave 1 37

38. P ROJECT T IMELINE Shared Services Center Timeline

39. P ROJECT T IMELINE Important Dates MilestoneDate Wave 1 Design Activities*/ Wave 2 Pre-activities Ongoing UCPATH Center Location Announcement 05/2012 UCPATH Center Scope of Services Document 04/2012 – 05/2012 UCPATH Center Blueprint Report 05/2012 Wave 1 Go-live, including UCPATH Center** 07/2013 Wave 2 Kickoff and Planning 04/2013 Wave 2 Config, Setup, Build and Gap Resolution 05/2013 – 09/2013 Wave 2 Test 10/2013 – 02/2014 Wave 2 Transition/Readiness 03/2014 Wave 2 Go-live, including UCPATH Center 04/2014 39 * UCSD is a Wave 2 campus; however activities are currently in progress that affect outcome of overall system and business process design. UCSD is involved in that effort. ** Campuses will transition activities to the UCPath Center when the PeopleSoft system goes live.

40. WRAP UP/OPEN DISCUSSION 40

41. W RAP UP /O PEN D ISCUSSION What Can You Do? Stay informed UCSD is just beginning to ramp up with respect to campus-specific planning for both the PPS Replacement and Shared Services Center New Blink site is updated weekly and communications are sent out bi- weekly to summarize new content/information Request to be placed on the distribution list Join us at Sharecase 08/29/2012 and other events Ask questions FAQS are posted on the new Blink site. If your question isn’t answered, let us know! Continue involvement/Get involved You may have already been asked to assist with some aspects of system design – thank you! Have an interest – let us know! 41

42. W RAP UP /O PEN D ISCUSSION Web Sites and Contact UCOP Website http://workingsmarter.universityofcalifornia.edu/projects/ucpath/overview/ UCSD Website http://ucpath.ucsd.edu/ Email: UCPathProject@ucsd.eduUCPathProject@ucsd.edu 42 Overview, case studies, project team, news & updates, Q&A Implementation team information, general project information and project updates

43. W RAP UP /O PEN D ISCUSSION Feedback Comments +/ ∆