1 Amendment 10 People First Overview June 12, 2008

People First 2 Today’s Meeting Housekeeping –Please turn off or put on vibrate all cell phones or blackberries –Restroom break – whenever you need it –Break – 2:30 Purpose –To ensure that you have a a very good understanding of what Amendment 10 means to the State, and its impact to you and your employees Expectations –Acknowledge past challenges, but let’s stay focused on the future –Forward thinking –Ask questions Agenda / Handouts

People First 3 Background Product –Brand: People First –Purpose: Human Resources & Benefits Administration Tool –Software: SAP, Oracle –Service Provider: Convergys Two Call Service Centers Over 232,000 Users Replaced 20-year-old Mainframe-Based COPES Application. Largest and Most Comprehensive State Government HR Outsourcing in the U.S.

People First 4 Section 9.34 “The Department acknowledges and agrees that the Department is contracting with Service Provider for Service Provider to provide Services only and not for Service Provider to create or develop anything.” Current Contract

People First 5 Current Contract Normal Contract Expiration – August 20, 2011 (39 months away) No License to Modify the Intellectual Property Created by Convergys Limited Transition / Migration Services System in Need of Additional Enhancements

People First 6 Timeline: Past to Current

People First 7 Amendment 10 Highlights License to Use and Modify Intellectual Property (i.e., People First System) Enhanced Transition Planning at the end of the Contract 135 System Enhancements & Upgrades People First System Security Improvements Potential Long-Term Cost Savings

People First 8 License to Intellectual Property: New Option Before Amendment 10: The state would have to build a new HR system from the bottom up (estimated to cost $65 - $90 million) After Amendment 10: The state has a choice to either build a new HR system from the bottom up OR use and modify the existing People First system

People First 9 License to Intellectual Property: Expiration / Termination Scenarios Go to Contract Expiration (August 2011) –License to Use and Modify Intellectual Property (all custom code) –License at No Additional Cost Event of Service Provider or Department’s Default –DMS Receives License to Use and Modify Intellectual Property for a Cost (based on remaining amortized value) Termination Due to State’s Non-Appropriation of Funds –DMS does NOT Receive License to Modify Intellectual Property

People First 10 Amendment 10 Highlights License to Use and Modify Intellectual Property (i.e., People First System) Enhanced Transition Planning at the end of the Contract 135 System Enhancements & Upgrades People First System Security Improvements Potential Long-Term Cost Savings

People First 11 Transition Planning Start/End Date Flexibility License Becomes Effective Immediately System Freeze Migration Services Post Transition Consulting Services

People First 13 Amendment 10 Highlights License to Use and Modify Intellectual Property (i.e., People First System) Enhanced Transition Planning at the end of the Contract 135 System Enhancements & Upgrades People First System Security Improvements Potential Long-Term Cost Savings

People First System Enhancements Highlights: –SAP Upgrade –User Role Code Security Matrix –Interagency Movement Process (PAR) –Timesheet Enhancements –Leave Payout Screen –Data Warehouse & Reports Redesign –Sign In and Homepage Redesign Releases Over the Next Two Years

People First 15 Trade-offs 35 Services No Longer Required –Personnel Files Imaging –Organization Charts –Knowledge Management System (KMS) –Performance Management System – evaluation/appraisal form Release of Liability from Past Claims

People First 16 Amendment 10 Highlights License to Use and Modify Intellectual Property (i.e., People First System) Enhanced Transition Planning at the end of the Contract 135 System Enhancements & Upgrades People First System Security Improvements Potential Long-Term Cost Savings

People First 17 Security Improvements Background Checks – More Stringent Annual Affidavits of Compliance Subcontractor Approval Security Breach Notification Dedicated Security Officers System Security Improvements 10 Inspector General Recommendations

People First 18 Amendment 10 Highlights License to Use and Modify Intellectual Property (i.e., People First System) Enhanced Transition Planning at the end of the Contract 135 System Enhancements & Upgrades People First System Security Improvements Potential Long-Term Cost Savings

People First 19 Potential Long-Term Cost Savings No Cost Impact for the Contract Changes New Option to Use and Modify Existing People First system Shorter Transition Period if Decision to Build Upon Existing People First System Determine Cost with RFI/RFQ

People First 20 Future Scope Step 1: Plan-it-Forward Project Step 2: Comprehensive HR Strategic Plan Step 3: Business Case for HR System 2.0 Step 4: Procurement Consulting Services Step 5: System Transition Services Step 6: HR System 2.0 Contract

People First 21 Planning for Future Success Listening to Our Customers and Stakeholders Determining the Right Mix of In/Out Sourcing Following a Comprehensive Plan Learning from Past Challenges and Experiences Learning from Other HR Transformation Projects Council for Efficient Government Recommendations

People First 22 What Can You Do To Assist? Agency Senior Leadership and Managers: –Support the Transition and HR System 2.0 Executive Office and Legislature: –Key Policy Decisions and Resources HR Professionals: –Support the Transition and HR System 2.0; System Testing, Communication, and Training

23 Thank You David DiSalvo DMS People First Project Director