1. Human Resources Business Process Transformation Service Delivery Model
4/28/2017
Human Resources Business Process Transformation Service Delivery Model
March 2016
First, thank you all for coming this morning and for being online. I know you have been waiting to hear more about the proposed organizational structure and I appreciate your patience as we met with senior leadership to review the recommendations and to get their feedback. We’ve made some updates based on those meetings and now it is your turn to provide feedback and ask any questions that you may have. I will ask that you hold your questions until the end of the presentation, but please make notes as the presentation progresses. Those online can submit questions by typing them in; we have someone who will read those questions for response.
The presentation may seem a bit more formal than usual since I will be following a script, but I want to make sure that you hear the same information that the senior leadership heard.
So, let’s get started,
The HR Business Process Transformation began in 2013, so the process has moved forward thoughtfully, recognizing that two-way communication and preparation for change are essential elements in its successful implementation.
Consistent with the University’s and OHR’s strategic plan, this Business Process Transformation will improve service delivery and will allow HR staff to focus on college, unit, and campus strategic priorities while also providing important support to the University’s need to attract, develop, and retain a high-quality and diverse workforce.
Today, I will once again be asking for your feedback and questions as we briefly review the key aspects of the Transformation, then will spend the majority of the time focusing on the proposed service delivery model and organizational design components. 1

2. 4/28/2017 1

3. Overview Policy Process Technology Organizational Design
4/28/2017
Overview
HR Business Process Transformation components
Policy
Process
Technology
Organizational Design
As you may recall, the HR Business Process Transformation has been broken into four key areas of priority.
As shown, they are policy, process, technology, and organizational design.
I will provide some initial comments on each of these areas, as a reminder of why we have embarked on such a challenging transformation.
Then, I will focus the remainder of the discussion on the recommended Organizational Design and our proposed plan to roll it out. 2

4. A need for change Current State of Human Resources (HR) 3
4/28/2017
A need for change
Current State of Human Resources (HR)
Current model presents high risk, high cost, inconsistent customer experiences and inconsistent expertise and coverage across University
Policies and processes are duplicative, confusing, and inconsistently applied
Technologies are sub-optimal
HR Organization reflects:
Total spend on HR-related activities estimated to be $71M
HR work is highly distributed and very transactional
Only three percent of HR effort spent on anything strategic
HR resource allocations not deliberate/thoughtful
Non-HR employees and HR generalists providing answers without technical expertise
As you may recall from our prior meetings, the first step in our consideration of this transformation was to review the current state of HR and our service delivery.
Through a variety of methods, including meetings with senior leadership and other key business partners, discussions with HR staff, and a survey of those performing HR work, it was validated that our current model is not optimal and is not sustainable in the future.
The current model of decentralized and duplicative HR delivery presents high risk and high cost to the University and does not provide consistent or positive experiences for employees or senior leadership.
Policies and processes are often inconsistent and lead to different interpretations and HR technology is basically non-existent.
Almost all of the work being performed is transactional and HR resources are inconsistently spread across the organizations. Some very large colleges and units have very limited resources while some small colleges and units have multiple HR staff.
We were not surprised to also find that HR work is being performed by both HR staff and non-HR staff with over 1200 identified as spending some percentage of their time on HR work. The total cost to the University of this model was $71M in 2013; and has grown based on GSI increases. 3

5. Key Concepts HR Business Process Transformation 4
4/28/2017
Key Concepts
HR Business Process Transformation
Improved customer service experience provided by HR professionals with expertise in topics areas
Common and clarified processes and policies to provide consistent answers and implementation
Workday and supporting technologies implemented to enable transformation
Human Resources will become a more strategic organization providing effective counsel and support to senior leadership, management, faculty, and staff
A mix of “centralized” and “organization(s) aligned” resources will be established
Roles will be redefined based on new model
Resources will be distributed to provide more effective and flexible coverage across University
Functions, such as faculty recruitment, will continue to be within the ownership and purview of the academic leadership with support from HR professionals
The HR Business Process Transformation is focused on improving Penn State’s HR service delivery in each of the areas that were identified as an issue within the current state assessment.
Policies and processes are being designed to provide consistency and clarity and to reduce risk. There are currently 103 HR policies that we are intending to reduce by 45. This will lead to a better customer experience with information provided by HR professionals with expertise in the topic areas.
In terms of technology, Workday has been chosen as the new Human Capital Management system with supporting systems that communicate with Workday being implemented as well.
The focus of today’s discussion, will be on the HR organization and our recommendations for its realignment. You’ve seen some of this proposed before, but over the last year we have been able to provide a much greater degree of specificity. The changes will allow HR to provide strategic support to the organizations, as the Strategic Partner role is redefined. Important operational and transactional work will be streamlined and handled by experts in those areas.
HR resources within the colleges, units, and campuses will be staffed based on consistent guidelines with the ability for HR staff to flexibly move to support large initiatives across multiple units.
It is important to note, that academic processes such as faculty recruitment and selection, will continue to be led by academic leadership with only support provided by HR. 4

6. Organizational design process
4/28/2017
Organizational design process
Key Steps in Org Design Development
Initial organizational “straw models” developed based on best practice benchmarks and special needs of Penn State’s complex academic and research missions
Adjustments have been made based on:
Feedback received during multiple communications with key stakeholders (Deans, Senior Leaders, HR Community, Key Business Partners, Governance Bodies, etc.)
Lessons learned from pilot experience within Colleges, new regional HR Strategic Partner roles, Shared Services benchmarks, and initial planning of Finance and Business and ICA HR consolidation
Feedback from faculty advisors and other key academic leadership
Information obtained from finalization of processes and roles
Discussions with WorkLion project team
Confirmation of benchmark numbers
The recommendations that I will be covering with you today are the result of an iterative process over the past several years. We have utilized a number of methods to obtain feedback from a variety of stakeholders and test the design recommendations we will be discussing.
This is actually our third major communication effort: meeting with senior leaders in small groups, going to or arranging meetings with key business partners, obtaining feedback from the HR Business Process Transformation governance body and discussing the implications with the HR community.
We have valued the input that we’ve received and have made adjustments to the recommended organizational structure based on that feedback.
In addition to feedback, we have piloted some of the key concepts of the organizational design in the successful College of Arts and Architecture and Education HR pilot including the newly defined roles of HR Strategic Partner, HR Consultant, and a shared service center for operational priorities.
In coordination with Madlyn Hanes, we have implemented new regional HR positions, which are working extremely well with individuals successfully serving multiple campuses. As well, under David Gray’s leadership, we are implementing a realignment of HR resources across the F&B groups as well as Intercollegiate Athletics.
As you will note, we have also engaged Penn State’s faculty experts to obtain their counsel; they have confirmed that the direction we are going is considered to be HR best practice.
Finally, we have also taken the opportunity to review peer benchmark information on the organizational design and headcount recommended to serve our complex University. This review included a recent survey by Towers Watson of 31 AAU institutions including Penn State. 5

7. 6 HR Business Process Transformation and
4/28/2017
HR Business Process Transformation and
Human Capital Management / Payroll (WorkLion)
Governance Structure
Change Workstream
(Sue Cromwell Lead)
Org. Design/Talent Workstream
(Mary Beahm Lead)
Policy Workstream
(Jerry Henry Lead)
Process Workstream
(Bob Fantaske Lead)
Executive Steering Committee
Susan Basso
Lori Bechtel-Wherry
Michael Busges
Matthew Decker
Barbara Dewey
Joe Doncsecz
David Gray
Frank Guadagnino
Rachel Smith
Business Decision Body (BDB)
Mary Beahm – Co-Chair (OHR)
Deb Meder – Co-Chair (FOs)
Michael Busges (Strategic Advisor)
Patricia Cochrane (Campuses and FOs)
Ken Forstmeier (IT)
Larry Friedken (Payroll & Tax)
Garth Gregor (Research)
Amanda Jones (Academic Colleges)
Lisa Marranzini (DBS, Campuses)
Kevin Peterson (ARL)
Marilyn Presto (F&B Finance; Admin FOs) Susan Rutan (Business Operations)
Steve Selfe (Strategic Advisor)
Erika Shoffner (Non-Academic Units)
Marc Startoni (COM)
Mark Weaver (Budget)
HRBPT Business Partner Advisory Group
Sandy Balboni (IT)
Regis Becker (Ethics and Compliance)
Blannie Bowen (Academic Affairs)
Ray Burke (Payroll)
Gary Langsdale (Risk Management)
Ken Lehrman (Affirmative Action)
Chris Lucas (ITS Training)
Steve Maruszewski (Facilities)
Debbie Meder (Controller)
Allison Newhart (Office of General Counsel)
Marilyn Presto (SVP Finance)
Roseann Sieminski (Bursar)
Jennifer Wilkes (VP for Comm Campuses)
Advisory Committees/Groups
Faculty Senate, ALC, CCC, USAC, CADs, etc.
Campus Advisory Group
Jennifer Wilkes
Campus Representatives
HR Rep Group
Subject Matter Experts (SMEs)
Academic, Graduate Students, Union Membership, Position Mgmt.,
Compensation, GSI, Legal, Faculty Experts etc.
WorkLion Project Team
Assistant Project Director – Rina Kumar
Strategic Advisors
Steve Selfe
WorkLion Project Sponsors
EPMO Project Support
HR Business Process
Transformation Sponsor
HRBP Workstreams
Executive Sponsors
David Gray Nick Jones
WorkLion Project Team
This graphic depicts the overall governance and advisory structure for the HR Business Process Transformation and the Human Capital Management / Payroll system.
It shows the importance that has been placed on gaining input from the many key stakeholders across the University through newly established governance bodies and advisory groups as well as communications with well-established leadership councils.
Their input and guidance, as well as yours, have been invaluable to the Transformation and the Human Capital Management/ Payroll system implementation now named WorkLion.
Advisory/Consulting Groups
Faculty Advisory Group
FO Group 6

8. Goals 7 Strategic, Customer-Focused, Cost-Effective HR Organization 7
4/28/2017
Goals
Strategic,
Customer-Focused,
Cost-Effective HR Organization
Operate More Efficiently
Ensure Accountability
Become More Effective
Maintain Some Flexibility
Achieve Desired Outcomes
We will be successful when we have achieved our goals to:
Operate more efficiently through streamlined processes and policies
Ensure accountability of HR actions
Become more effective strategic partners and consultants
Continue flexibility where business needs dictate and
Achieve our desired outcomes to provide
Increased customer experience
Increased strategic HR consultation
Reduced risk
Reduced cost
In order to achieve this, we must move to the new organizational model. 7 7

9. HR Strategic Partners/
4/28/2017
Organizational Design
HR Strategic Partners/Consultants
Centers of Expertise
VP for HR
Shared Services
AVP
HR Strategic Partners/
HR Consultants
Colleges
Campuses
Non-academic units
Centers of Expertise
Employee & Labor Relations
Talent, Diversity & Inclusion
Compensation & Benefits
HR Communications
HRIT
Strategy
HR Shared Services
Professional Services
Operational Excellence
HR Operations
This high-level organizational chart has changed very little from its initial recommendation.
Today’s discussion will provide further details about how the organization has been refined, including the number of staff in each area, and the process we are proposing for filling these positions. 8

10. HR Strategic Partners HR Consultants
4/28/2017
HR Strategic Partners
Advisor to Senior Leaders on strategic HR matters
Develop unit workforce strategies
Advise on unit restructuring
HR Consultants
Provide advice to line managers on people management issues
Support Strategic Partner and report on key issues, needs, etc.
Work with COEs and transactional resources to ensure unit needs are served
Colleges
Campuses
Non-Academic Units
HR Strategic Partners
& HR Consultants
HR Strategic Partners
& HR Consultants
HR Strategic Partners
& HR Consultants
Agricultural Sciences,
Arts & Architecture, Communications,
Earth & Mineral Sciences,
Eberly College of Science,
Education, Engineering, The Graduate School
Health & Human Development,
Information Sciences and Technology,
Liberal Arts, Libraries, Nursing, VP for Research,
Schreyer Honors College,
Smeal College of Business,
Penn State Law and International Affairs
Abington, Altoona, Beaver,
Behrend, Berks, Brandywine,
Dickinson Law (College supported
based on location), Dubois,
Fayette, Great Valley,
Greater Allegheny, Harrisburg,
Hazleton, Lehigh Valley, Mont Alto,
New Kensington, Schuylkill, Shenango,
VP for Commonwealth
Campuses, Wilkes-Barre,
Worthington-Scranton, York
Affirmative Action, Applied Research Lab,
Auxiliary & Business Services, Univ. Budget
Office, Corporate Controller, Development
and Alumni Relations, Educ Equity, EVP and
Provost, Global Programs, Government &
Comm Rel, HR, Intercollegiate Athletics, ITS,
Office of General Counsel, Office of President,
Office of Physical Plant, Outreach & Online
Education, Planning & Assess., Strategic Comm,
Student Affairs, SVP for Finance & Business/
Treasurer, University Police, VP for Acad Affairs,
VP for Admin, VP and Dean for Undergrad Ed
The HR Strategic Partners and HR Consultants are the positions that will be directly aligned with each of the colleges, units, and campuses.
The Strategic Partners will primarily serve as advisors to senior leadership and will help to implement the strategic priorities of their respective organizations.
The reporting relationship of the HR Strategic Partners will now be refined from the dual-direct reporting relationship originally established by Dr. Erickson, by moving the budget for these positions to the VP for Human Resources. I am working directly with Madlyn on a model for the campuses that will be slightly different. The goal will be to ensure full accountability by the VP for Human Resources, as well as increased consistency and reduced risk for the University. This model is similar to the Financial Officer and Development models that have worked effectively for many years. As we have shown in the HR Pilot in Education and Arts and Architecture, the relationship with the senior leaders remains unchanged although the positions and budget now move directly to HR.
The HR Consultants will be the “boots on the ground” to advise management on issues such as performance management, salary planning, and staffing. They will also support the HR Strategic Partner with data analysis and will coordinate work with the other groups that will now be directly involved in things such as recruitment, labor relations, and benefits. The budget for the HR Consultant positions will also move to the VP for HR’s organization.
Within the AAU survey over 60% of the Universities are utilizing a model that includes HR Strategic Partners; we believe this relationship within the Colleges, Units, and Campuses provides that direct knowledge and relationship to the unique culture and strategic missions of the respective organizations. 9

11. Worthington-Scranton,
4/28/2017
HR Strategic Partner Organization (27)
F&B/ICA HR Consolidation
Adjustment from current HR Rep placement
VP for HR
HR Strategic Partner
College Lead (A)
HR Strategic Partner
Campus Lead
HR Strategic Partner
Unit Lead (A)
Ag Science
Liberal Arts
Abington,
Great Valley,
Brandywine
Greater
Allegheny, Fayette,
New Kensington
A&BS
ARL
and EOC
H&HD
and Nursing
Libraries and
Schreyer
Altoona,
VP Commonwealth
Campuses
Harrisburg,
York, Mont Alto,
Dickinson Law
Controller, Police &
PS, SVP Finance, HR
DDAR
and Student Affairs
Earth &
Mineral Sciences
Research,
Grad School
IST & Comm
Behrend
Worthington-Scranton,
Hazleton,
Wilkes-Barre
ICA
ITS
Education
and A&A
Eberly College of
Science
Berks, Lehigh Valley,
Schuylkill
Shenango,
Beaver, Dubois
OPP
Outreach & Online Ed
Engineering
Smeal,
Penn State Law and
Int’l Affairs
President’s
Office et al
As you can see in this organizational chart, the HR Strategic Partners are organized in three groups that will be able to work more as a team to share expertise, workload, and questions based on the commonalities of their organizations.
The roles have been designed based on best practice staffing metrics of one Strategic Partner for at least 1000 employees, as well as potential synergies between organizations. In many cases, the Strategic Partner will support more than one organization and therefore more than one senior leader.
Although this concept is fairly new to Penn State, it has already been successfully implemented in several areas as you can see within the chart. (Education & A&A, H&HD and Nursing, IST & Comm, Regional HR Reps, etc.)
The boxes shown in white are areas that already are structured in the manner being recommended; the boxes shown in gray are recommended for partnering of coverage. The blue boxes are organizations that are already in the process of consolidating resources as part of the Finance and Business and Intercollegiate Athletics HR realignment.
[10]
[8]
[9]
(A) Rotating Lead position 10

12. Worthington-Scranton,
4/28/2017
HR Consultant Organization (44)
F&B/ICA HR Consolidation
College HR
Strategic Partner
Campus HR
Strategic Partner
Unit HR
Strategic Partner
Ag Science (3)
Liberal Arts (2)
Abington,
Great Valley,
Brandywine
Greater
Allegheny, Fayette,
New Kensington
A&BS (2)
ARL and EOC
(2)
H&HD &
Nursing (2)
Libraries &
Schreyer
Altoona,
VP Commonwealth
Campuses
Harrisburg,
York, Mont Alto,
Dickinson Law (2)
Controller,
P&PS,.SVP Finance, HR
DDAR &
Student Affairs (2)
Earth & Mineral
Sciences
Research,
Grad School
IST & Comm (3)
Behrend
Worthington-Scranton,
Hazleton,
Wilkes-Barre
ICA
ITS
Education &
A&A (2)
Eberly College of
Science (3)
Berks, Lehigh Valley,
Schuylkill
Shenango,
Beaver, Dubois
OPP (2)
Outreach & Online Ed
As I’ve mentioned, the HR Consultants will be the boots on the ground for assisting management, including the HR Strategic Partner.
They will advise management on performance management issues, salary planning and staffing and will work with the shared services HR resources to provide other services such as training or internal investigations for hotline calls.
They will also help employees, during the transition in particular, to direct them to the best resources to get answers to personal questions such as benefits, leave of absence, or retirement.
We recognize that it won’t be a” light switch” to move from handling administrative responsibilities including IBIS input to this more advisory role for HR Consultants but it is essential to the transition.
On this chart, with the exception of the F&B and ICA consolidation, all boxes are shown in white with the recommendations shown for each organization. None are shown in gray because there are multiple individuals who are handling HR work, with various titles, making it nearly impossible to compare current to future state.
Again, benchmark metrics were used to make the recommendations as well as consideration of additional circumstances such as the large number of volunteers being coordinated within Agricultural Sciences. In addition, consideration was given to continuing the current arrangements within the colleges for promotion and tenure. Those colleges with HR currently coordinating promotion and tenure show a larger number of HR resources than those colleges where other individuals are coordinating P&T.
Engineering
(2)
Smeal, Penn State
Law & Intl Affairs (2)
President’s
Office et al (2)
[21]
[9]
[14] 11

13. 4/28/2017
Centers Of Expertise
Design core strategy, policy, programs and plans with functional experts and
specialists in specific employee segments (e.g., Academic, Staff and Tech Service)
Employee /
Labor Relations
Talent, Diversity
& Inclusion
Compensation
and Benefits HR
Communications
HRIT
Strategy
Organizational Capabilities
Policy
Management, ER Academic,
ER Staff and Labor
Relations
Recruiting, Diversity,
Workforce Planning,
Org Effectiveness,
Learning, Employee
Development,
Assessment and
Perf Management
Executive, Faculty,
Staff & Technical
Service Comp,
Retirement and
Health & Welfare
Benefits, Childcare
Communications,
Multi-media,
& Web Design
HRIT strategy design, development and implementation
The Centers of Expertise may look much like what you think of when you consider the Office of Human Resources groups but they are now areas that will focus on implementation of HR best practices, vendor management, contract negotiations, and strategic HR initiatives.
The next slide will show the specific numbers within each group, which you will note are significantly lower than current OHR headcount which includes groups that will now be included in the shared services center such as benefits customer service employees.
The AAU survey confirmed that 80% of the reporting Universities have formalized Centers of Expertise within their HR structure. 12

14. Centers of Expertise (24)
4/28/2017
Centers of Expertise (24)
VP for HR
Employee &
Labor Relations
Director (A)
Talent, Diversity &
Inclusion Director
Compensation &
Benefits Director HR
Commun. Mgr
HRIT Strategy
Director
ER Staff (A)
Labor Relations
Talent
Acquisition
Talent
Management
Executive Comp
& Benefits
Health &
Welfare
Multimedia
Specialist (2)
ER Academic
Policy Mgmt
Data Analyst
Workforce
Analysis
Compensation
Pension
Classification
Childcare
ER/LR Analyst
Data Analysts (2)
Occ Med
I will speak to each of the key areas briefly:
In the employee relations & labor relations area, in addition to focused ER/LR expertise for staff and union employee issues, resources have now been added to focus on academic employee relations, policy management and a position has been created to focus on upcoming legal and legislative changes that may impact the University.
This will provide expertise for each employee category as well as proactive recognition of issues that should be coordinated with the Office of Government and Community Relations or the Office of General Counsel.
The next group is Talent, Diversity and Inclusion. Due to the synergies of attracting, developing, and retaining employees, this group will have combined leadership. They will lead the University’s efforts to proactively plan for workforce changes, to develop programs to recruit the highest quality and diverse workforce, and to provide performance feedback to and developmental opportunities for all employees.
Compensation and Benefits is a very important combination of efforts, now being able to strategically plan our total compensation while balancing costs with the need to provide a competitive compensation package to employees. Focused strategies will be needed, particularly due to the many legal and legislative changes that will continue to affect the University’s cost structure.
The HR Communication function was recently added to address the numerous needs to effectively communicate to a wide variety of University stakeholders. This area will continue to focus on proactively communicating with and obtaining feedback from various constituencies.
Finally, the HRIT Director position will allow for continued focus to ensure that we are effectively updating, integrating or decommissioning legacy systems; maintaining focus on newly implemented systems; and identifying opportunities for best use of technology in HR processes. We are also working closely with Dave Gindhart, Sr. Director for Information Technology for Finance & Business on the IT Transformation and will be supporting his efforts to implement a similar strategy for IT including movement of positions and budget to the IT organization.
[5]
[5]
[10]
[3]
[1]
(A) Double hat with Specialist role 13

15. Consistent/ standardized processes
4/28/2017
Shared Services
HR is NOT centralizing. A shared services model provides the “best of both worlds”
Redundant
Inefficient
Non-standardized
High-risk
High-cost
Unresponsive
Detached from units
Inflexible
Shared Services
Decentralized
Centralized
Customer focused
Business Acumen
Economies of scale
Consistent/ standardized processes
Service Culture,
Efficient
Delivery
Model,
Best
Practices,
Data Driven
We’ll now move to shared services– a new concept for Penn State but something that has effectively been in existence for over 20 years.
The goal is NOT to centralize all HR activities, but as I have mentioned in the HR Strategic Partner and HR Consultant discussion, it is to find the best balance of consolidated operational and transactional work and organization aligned strategic advisors.
Each perspective comes with positives and negatives; the goal will be to implement the best of both worlds. 14

16. Professional Services Operational Excellence
4/28/2017
HR Shared Services
Delivery of services across three key areas:
Professional Services
Operational Excellence
HR Operations
Compensation & classification consultation inc. job reviews, GSI support, and total comp consulting
Benefits expertise including health & welfare, pension, leave of absence
Talent & Design Delivery inc. perf. management, external resource course delivery, developmental programs
Talent Acquisition Delivery: sourcing and recruiting for staff & technical service with support for faculty positions
Employee & Labor Relations: consultation, issue investigation unemployment compensation advisement
Budget, billing, and planning for HR
Process Improvement for HR processes
Project Management for strategic HR projects
Human Capital Management: analytics, systems admin and data security for HR and records management
Customer Service : Triage, routine calls and transaction processing
HCM Input: Input for full-time and part-time employees as well as support for volunteers working with minors who require background checks and training
Part-time Staff and Academic Recruiting: Source and Recruit part-time employees to fill positions across the University
There are three key areas within HR Shared Services: Professional Services, Operational Excellence, and HR Operations.
I’ll discuss the staffing and key roles within each of these areas in the upcoming slides.
At a high-level, however,
The professional services group provides compensation, benefits, employee development, talent acquisition and employee & labor relations expertise primarily as resources to management and the HR Strategic Partners and Consultants.
The Operational Excellence area provides analytics to ensure that we are most effectively implementing and monitoring the HR Services being provided.
And, the HR Operations area provides customer service, and transactional support for some of the key programs such as leave of absence, training, recruitment and Human Capital Management input.
48% of the AAU Universities currently have a Shared Services Center and many more are planning for this type of service delivery over the next several years. 15

17. Relations Coordinator
4/28/2017
HR Shared Services: Professional Services (70)
AVP
HR Shared Services
Director
Compensation
Coordinator
Classification
Coordinator
Benefits
Coordinator
Talent
Design & Delivery
Coordinator
Talent Acquisition
Delivery Coordinator
EE & Labor
Relations Coordinator
Compensation
Specialist Staff
Comp Specialist
Tech Service and A21
(4)
Benefits Specialist
(3)
Talent
Specialist (5)
Instructional
Designers (2)
Recruiter – Staff
(5)
Recruiter
Tech Service (3) ER
Staff (5)
LR (6)
Academic
Comp
Support
Job Evaluation
Specialist (3)
Leave of Absence/
Workers Comp
Support (3)
Learning Support
(4)
Sourcing – Staff
(3)
Sourcing
Tech Service ER
Staff/Academic ER
Academic
Academic
Recruiting/Sourcing
Support (3)
Recruitment
Support
(9)
Unemployment
Compensation
[3]
On the far left of this slide, you will see the Compensation and Classification functions have been separated to allow focus on each area. Academic compensation support has been added to help assist the academic recruitment process led by the academic leadership.
Benefits expertise including health & welfare, pension, and leave of absence support will be provided by the next team.
The Talent Design and Delivery area includes several different focuses within the Talent Specialist and Instructional Design titles. Some of these include performance management, training development and delivery, external training resource coordination, and in the future, succession planning and career development.
Penn State has never really had a true Talent Acquisition function. With the changing demographics and challenges with sourcing top quality candidates, this area will be extremely important. This will allow for more directed efforts including review of multiple position requests and the recommended methods to most effectively fill the positions.
Again, we have added academic recruitment support to assist with some of the logistical and support functions related to the academic positions.
Finally, the Employee Relations and Labor Relations group now has focused areas for academic, staff, and union-represented employees. Internal HR investigations such as hotline call follow-up will be conducted by this group as well as advice provided to senior leadership, management, and HR Strategic Partners and HR Consultants. This group will also continue to coordinate unemployment compensation for the University.
[8]
[7]
[12]
[25]
[15] 16

18. HR Shared Services: Operational Excellence (19)*
4/28/2017
HR Shared Services: Operational Excellence (19)*
AVP
HR Shared Services
Director
Finance Coordinator
Process Improvement
Coordinator
HR IT
Coordinator
Billing, Invoicing,
Budget Analysis (2)
Project
Management (2)
Systems Analysis &
Support (8) (A)
Records Management
Business Analysis
(2) (A)
HR Operational Excellence will be the group that ensures that metrics are utilized to evaluate performance and that financial, project management, records management, and IT support are provided to the organization.
[3]
[4]
[11]
* HR Shared Services Director included in Operational Excellence headcount.
Some systems positions may be realigned as part of F&B IT reorganization 17

19. HR Shared Services: HR Operations (48)
4/28/2017
HR Shared Services: HR Operations (48)
AVP
HR Shared Services
Director
Customer Service
Coordinator
HCM Support
Coordinator
Part-time
Recruiting and Sourcing
Coordinator
Service
Rep
(Team Lead)
Service
Rep
(Team Lead)
FT HCM Input
and Onboarding
Team Lead
PT& Vol HCM Input
and Onboarding
Team Lead
Staff Part-time Sourcing
and Recruiting
Team Lead
Academic Part-time Sourcing
& Recruiting (Inc .Visiting
Scholars)Team Lead
Service
Rep (6)
Service
Rep (6)
FT HCM Input
and Onboarding
(6)
PT HCM Input
and Onboarding
(10)
Sourcing & Recruiting
Operations (4)
Sourcing & Recruiting
Operations (3)
Recruiting
Support(4)
[15]
[19]
[14]
The HR Operations area is the “heart” of the HR services model. It is broken out into three primary areas.
The first area, on the far left, is Customer Service. This is the group who will handle inquiries from employees either by phone or electronically. They will triage the inquiries to determine if they can answer the question, if the question should be referred to another area such as payroll, or if the question is complex and will require further follow-up by another area within the shared services center. Technology will be essential to the effective operation of this group including inquiry and response documentation, response time logging, and a knowledgebase to provide consistent policy and process information.
The section in the middle, is Human Capital Management Input and Onboarding. This group will provide support to both part-time and full-time employees, as well as volunteers who work with minors due to the background check and training requirements. They will coordinate input to the Workday system as well as important on-boarding responsibilities.
The third group is responsible for part-time recruiting and sourcing responsibilities. They will serve more as an internal temporary services agency where staff and faculty in part-time positions will be able to apply in advance, complete their onboarding requirements, and be available for positions throughout the University. Due to the different needs for wage payroll and FT2 academic positions, there are two separate areas handling inquiries for these employees. 18

20. HR Service Delivery Model
HR Shared Service and COE Delivery Model
HR Service Delivery Model
< 5 %
~ 10 %
~ 25 %
~ 60 %
Target % Resolution
HR Shared Services and Prof Support
Centers of Expertise
Portal and Self Service Technology
Support Center Representatives (Tier 1)
Predefined answers
Basic to complex inquiries
Full range of functional support
Transaction processing
COEs (Tier 3)
Critical incident support
Consultative approach required
Complex or high-risk issue resolution issue
Specialists (Tier 2)
Interpretation and problem solving
Back office administration
Subject matter expertise
Advisory service based on standard procedures
HR Portal and Self Service Features of Workday (Tier 0)
Information and tools
Web enabled Transaction processing
Easily accessible Knowledgebase
Based on all of the information we’ve covered, you may recall this depiction that shows the goals for effective Shared Services and Centers of Expertise organizations.
As you will note, most of the inquiries in the future will be able to be addressed by accurate and clear information on the HR portal, with escalation of questions through the steps as outlined.

21. Organization Component
4/28/2017
Staffing Summary
Organization Component
FTE Estimate
VP of HR 1
AVP
HR Strategic Partners 27
HR Consultants 44
COEs: 24
ER/LR
Talent and Diversity & Inclusion
Compensation and Benefits
HR Communications
HRIT Strategy 5 10 3
HR Services: 137
Professional Services
Operational Excellence
HR Operations 70
19 with lead 48
Admin. Assistants 16
Total
250
Our goal for the initial staffing of the future HR model is to maintain approximately the same HR headcount in the new organization as currently exists in the decentralized HR model.
This model, however, will have the majority of HR work performed by these 250 HR professionals rather than by over 1200 employees who stated that they performed at least some percentage of HR work when they completed the survey in 2013.
The model will also provide more consistency based on HR expertise, common policies and practices, and technology support of the HR model.
We will still be functioning very leanly given the size and complexity of our University in comparison to our peers. The AAU survey confirmed that Penn State’s HR to FTE ratio is half of our peer institutions, meaning that each of our HR staff is serving twice as many individuals as the staff in the other institutions. 20

22. Staffing Methodology Guiding Principles 22
4/28/2017
Staffing Methodology
Guiding Principles
We will make staffing decisions in accordance with Penn State’s non- discrimination policies
We will ensure there is HR talent “on the ground” during the transition to support our customers’ needs while driving toward our transformational goals
We will match the best talent in the best position, considering our future institutional needs
We will keep the assessment and selection process simple
We will allow HR employees to express interest in positions
We will consider the following assessment criteria: competencies, knowledge, skills, experience, credentials, and interest in and support of positive change
We will keep employees informed and communicate decisions with care
Now that I’ve described the overall organizational model and the number of staff required in each area of expertise, I’d like to briefly discuss how the positions will be filled.
Our guiding principles will lead the process to ensure that we recognize our need to:
Continue to effectively support the University during the transition
Involve employees in preparing for and being involved in determining their future roles
Establish and clearly communicate processes for “advertising” and selecting candidates for positions
Ensure that the goal of staffing the future model is achieved by selecting the best candidates for the positions 22

23. HR Strategic Partners & COE Leads
4/28/2017
Phased Implementation
The transition to our new operating model will occur in phases, aligning with technology implementation
Critical Roles
March 2016
HR Strategic Partners & COE Leads
May
2016
HR Consultants, COE teams, HR Professional Services, Operational Excellence
Begins September 2016
HR Operations Roles
Begins October 2016
Phase 1
Phase 2
Phase 3
Phase 4
The positions will be filled in a phased approach to avoid disruption to the organizations.
There are only a few positions identified as critical roles, most of which have already been filled through internal or external postings including the Sr. Director of Compensation and Benefits and the Sr. Director of Labor and Employee Relations. The remaining critical position to be filled will be the Shared Services Director. I received approval to fill this position in the FY14/15 budget but due to the financial situation, I have held on filling the position. I recognize that this is an essential position to the effective implementation of the new model and will be reviewing the potential to fill it in the near future.
The next roles to be filled will be the HR Strategic Partners and Centers of Expertise leads, with the goal to fill these positions by May 2016.
The non-management positions will be filled in two rounds beginning with the higher-level roles in September and October, then followed by the second and final round of positions in October and November 2016.
The goal will be to fill all positions by December 2016 with any remaining positions advertised in late 2016 and early Training for Workday and position-specific training will take place from January – June 2017 so that employees are ready for go-live but have also not been trained too far in advance to retain the knowledge they have received. 23

24. Staffing Methodology Selection process 24
4/28/2017
Staffing Methodology
Selection process
Positions will be filled via three methods:
Slotting: fill directly through management discretion of defined criteria
Used primarily for critical positions that have recently been filled by internal or external posting e.g. AVP, Sr. Director for Comp & Benefits, Sr. Director ER/LR, etc.
May be used for Strategic Partner positions since most have recently been filled by internal or external posting; input from senior leadership will be solicited
Internal Posting– fill from HR community who’ve expressed interest with qualifications reviewed
Employees will have ability to express interest and submit materials for consideration for up to three positions
Committee will review materials, solicit input, and possibly interview (if needed)
External Posting– fill outside of HR community following candidate interview and assessment
Will follow normal process for management review and interview of candidates
“Pooled” interviews will be utilized for positions with multiple openings e.g. customer service
It is obviously a difficult balance to have as many positions as possible open for individuals to express interest, while trying to cause the least amount of disruption for the organizations and reduced stress for employees involved in the transformation. We will be filling the positions via three methods, I will cover each of these.
The first method is slotting, which will be used for a small minority of the positions, primarily for situations where the positions have recently been filled via internal or external posting. As shown, that will include the critical positions that I described previously, as well as some Strategic Partner roles where there is not a recommended partnering of resources. Input from the senior leaders of the respective organizations will be gathered prior to finalizing Strategic Partner roles.
The second method for filling jobs will be through internal posting to the current HR community. As previously communicated, our goal will be to continue with approximately the same number of positions in HR as we currently have, although the responsibilities for the positions will change significantly. HR employees will have the opportunity to express interest in three positions, listing them in order of preference. Before individuals are asked to submit their interest, we will be providing a number of opportunities to gain further information on the duties and levels of the positions, as well as training on developing resumes.
Expressions of interest submissions will be reviewed by a committee of senior HR leadership and the supervisors for the specific positions. Our goal will be to match as many individuals’ top choices with those positions, assuming that the individuals meet the qualifications for the jobs. Interviews will be conducted only if the candidate’s skill set for the position is not clear or further information is needed in order to evaluate if it is a good match.
If positions are not filled internally due to the skill set required or because there is less interest in the positions than needed, an external posting will be advertised using the Electronic Job Management System. Penn State employees outside of HR and external candidates will considered for these positions based on a review of qualifications and an interview process. 24

25. Staffing Methodology Process and additional resources
4/28/2017
Staffing Methodology
Process and additional resources
Additional resources will be available before expression of interest is submitted:
Resume-writing training
Job descriptions for each position
Informational sessions on Workday and competencies for positions
Expression of interest process will include:
Organizational charts
Competency title(s) and salary band(s) for each position
Expression of interest form to list top three priorities
Compensation will remain unchanged; consideration for exceptions only if significant change in responsibility
Position type (standing or FT1) will remain unchanged
We will provide additional resources and training before individuals need to express interest in the positions. This will include job descriptions for each position, informational sessions on areas such as customer service, strategic HR and other competency-related information, and assistance with developing resumes.
The process to express interest will be kept as simple as possible. Organizational charts with each position numbered for ease in identifying the ones in which you are interested will be provided. Each position will have an equivalent HR competencies title such as HR Manager, HR Generalist, HR Specialist or HR Assistant or other technical title based on the duties being performed. The levels and salary bands of the position will also be provided.
A simple form requesting your selection of up to three positions in priority order will be provided and a resume and updated JRW will be requested.
Unless there is a significant change in responsibilities, compensation will not be changed. We recognize that this may cause some individuals to be paid higher or lower than where they will need to eventually be paid, but with the large amount of organizational change, we believe it is better to minimize any impact to salaries at this point. An individual’s position type, standing or FT1, will also remain unchanged. 24

26. Organizational Design Communications Plan
4/28/2017
Organizational Design Communications Plan
Key Audiences/ Dates
Executive Leadership– Exec VP/Provost & SVP Finance & Business– January 2016
President’s Council– February 2016
HR Reps, DBS, OHR Mgmt-- February 2016 HR Rep meeting
Deans, Unit Heads, Chancellors—February/March 2016
HR Community-- March 2016
Key Business Partners & Advisory Groups – March/April 2016
Penn State community (presentations/Penn State Today)-- April 2016
Panel Discussion and Managing Change-- May 2016
Elizabeth King, VP for Shared Services, Starbucks
Matt Schuyler, Penn State Board of Trustees member; CHRO, Hilton Worldwide
Betsy Rodriguez, Former CHRO, University of Missouri; VP for HR, Barnes Jewish Hospital in St. Louis, MO
HR Community Conference/Resume-writing Training-- June-July 2016
We will continue to communicate the organizational design recommendations and consider feedback as we finalize the plans.
As noted, the goal will be to finalize communications by March so that staffing and training activities can begin by May.
Of special note, is the exciting panel discussion we will be sponsoring in May. As shown, the three panelists are leaders in the HR profession with extensive knowledge of HR Transformation, HR Shared Services, and best practice HR organizational alignment and customer service.
Then, in June and July we are planning HR Community Conference days that will include additional information about Workday, the jobs within the future HR organization, as well as opportunities to hone resume writing skills and learn more about expressing interest in jobs that will become available later in the summer. 23

27. Overall HR Business Process Transformation Project Timeline
4/28/2017
Overall HR Business Process Transformation Project Timeline
Technology
Staffing
2016
2017
2018
March 2016
Service Center Technology
NEOCASE
July 2017
Core HCM/Payroll
WORKDAY
October 2017
Recruitment
August 2015
Learning Management
CORNERSTONE
ON DEMAND
Sept 2015
Call Center Telephony technology piloted
Jan 2017
Establishment of Shared Services Facility
2015
Jan-June 2017
Position Specific Training Inc. Workday
2015-March 2016
Fill Phase I Critical Positions
March 2016
Announce Org Design Plan to HR Community
December 2016
Select Customer Service and roles not already filled in 1st Phase
Finally, this timeline shows both the implementation of technology, in blue, and the organizational design timeline, in green.
As we’ve discussed, technology including Cornerstone OnDemand for Learning Management and Neocase for the portal, inquiry management, and the HR knowledgebase will be essential to changing the processes by which customer service is provided and therefore the roles of the HR community.
The goal is to have all staff in place by early 2017 so that role-based training including Workday training can be completed in time for the June/July go-live date.
As you will note in red, the establishment of a shared services facility will be essential to the implementation of the service delivery model. Resources will need to be co-located to effectively communicate, streamline services, and provide improved quality of service to their customers.
May 2016
Announce HR Strategic Partners and COE leads
October 2016
Select HR Consultants, Higher-level Professional Services, Operational Excellence, COE teams, open Strategic Partners
June/July 2016
Training & Resume Writing 24

28. 4/28/2017
Questions
(additional questions after this session may be sent to 25