Massachusetts Institute of Technology SAP R/3 HR-Payroll Project Project Update for SAPbiz March 22, 2006

Central Business Process Procedures (BPPs) Communications and Training Agenda & Introduction Central Business Process Procedures (BPPs) Communications and Training Post Go-Live Support – Community Post Go-Live Support – IS&T Status Update Schedule Review – GANTT Chart Development and Testing Status Cutover Process and Go-No Go Decision Criteria

Central Organization Business Process Procedures (BPPs) New and Revised Business Processes An inventory of HR and Payroll business processes identified 30+ processes Proposed Business Process Procedures (BPPs) have been written and are being reviewed by management Final BPP documents will be used in central training and for post go live reference BPPs will be validated during pilot training Examples: Employee appointment life cycle Off cycle check processing Time sheet adjustments Spousal Equivalent Exempt vacation reporting and credits Worker’s Compensation Retroactivity Approximately 15-20 representatives from the 5 Schools and central areas will be the focal point to prepare DLCs to use the new payroll system, and to help assist them after cutover

Communications and Training Community Communications: The Training and Communications calendar lists 74 separate activities between February –August 2006 - examples below “Roadshows” – presentations to individual Schools, at their site Brown Bag Lunches – open to the entire community Articles in MIT publications, posters, targeted emails and letters, pay envelope inserts, etc. Training: Pilot training classes begin in February to refine course content Community training begins May 30 – December 15 Training of central organizations begins May 18 Variety of delivery methods “Train the trainer” strategy for local experts Demonstrations by IS&T trainers On-line web simulations – e.g., how to complete a student time sheet Approximately 15-20 representatives from the 5 Schools and central areas will be the focal point to prepare DLCs to use the new payroll system, and to help assist them after cutover

Post Go-Live Support - Community Support at Go-Live: HR-Payroll Hotline to answer questions and triage problems Human Resource Officers: HR policies DLC Support Team: focal point for local support to administrators and employees Student peers in dormitories trained to assist other students IS&T Resources: HR-Payroll project team staff Data Warehouse support for extracting data/generating reports Help Desk ramping up On-site computer help from IS&T desktop tech support (DITR) On-line simulations for training – e.g., completing a student time sheet On-line FAQs (Frequently Asked Questions) Handbooks Approximately 15-20 representatives from the 5 Schools and central areas will be the focal point to prepare DLCs to use the new payroll system, and to help assist them after cutover Daily huddles during the first month of go-live support between central organizations and the DLC Support Team

Post Go-Live Support – IS&T Admin Computing: Core team transition to support from development Period of fine tuning Critical Response Team established for go-live transition period Co-located technical and business resources Direct pipeline between DLC support team and central organization team members Enhancement Process A log of scope change/enhancement requests is updated regularly. Requests fall into two categories: Discretionary – optional changes Regulatory – changes required by law Triage process has been developed to distinguish between issues vs. enhancements Items prioritized based on business need Enhancement items are sized by Admin computing Regular meetings with business owners to review enhancement list Schedule work based on business need and ability to get work done in available time Approximately 15-20 representatives from the 5 Schools and central areas will be the focal point to prepare DLCs to use the new payroll system, and to help assist them after cutover

On plan for Go-Live - Summary GANTT Chart

Development and Test Status All core development is complete Data Warehouse Structure and feeds are complete Conversion Development and Testing is completed Open items in process not impacting test execution Quarterly and annual tax form development SAP reports Data Warehouse reports Spread this work over longer timeframes to focus on test execution Test Status Functional Test – 100% completed Added regression test phase 100% completed Parallel (Comparison) Test Cycle 1 is complete Prep for Parallel Test Cycle 2 underway

Cutover Process and Go-No Go Decision Criteria Developed out of Conversion processing schedule Technical Focus: Data cleanup (e.g. HR Org units for student groups – MITES) Data Conversion Final Development moved to production Authorizations enabled in production Interface partner - e.g. Fidelity - readiness System Backup process designed (E40) Contingency plan is in place Business Focus Post support critical response team up and running Support organization implemented Communications regarding go-live schedule Go No-Go Decision Items Development finalized Security model in place Testing complete Cutover plan in place Technical issues finalized Post support structure in place IS&T CAO HR DLC Support Team Lincoln Help Desk software configured Lincoln site readiness DLC and Central training completed Central Organizations ready Detailed cutover planning is underway Second Parallel Test completion (4/28/06) will be first go/no go decision point

Conclusion Based on what we know today, we are confident that we will make the July 1 go-live date