0. Project Management Committee Meeting
December 2, 2004
Building the Human Resources and Payroll Environment for the Next Generation of North Carolina State Government

1. Welcome and Introductions
Project Management Committee
John Barfield
Marshall Barnes
Rod Davis
Dan Domico
Amy Faulk
Bob Giannuzzi
Carl Goodwin
Wendy Griffin
Kathy Gruer
Ginny Klarman
Tracy Little
Jim MaCaulay
Jim Newman
Kim Padfield
Tom Runkle
Gary Wiggins
Margaret Wiggins
Jonathan Womer
OSC Staff
Gwen Canady, Deputy State Controller
Julie Batchelor, Assistant State Controller (PMC Chair)
Linda Hudson, SBIP Program Manager
Shannon MacFarlane (Senior Business Analyst)
Deloitte Team
Lowell Magee, Project Manager
Bradd Craver
Dorie Kehoe
James Stovall
Katie Beacham
Others TBD

2. Agenda Welcome, Introductions and Agenda Statewide Kick-Off Review
HR/Payroll Project Status
HR/Payroll Vision, Goal and Guiding Principles
JAD Sessions Overview
Change Management Strategy
Open Discussion
Action Items Review
Adjourn

3. Statewide Kick-off Feedback Review

4. HR/Payroll Project Status

5. Status Report Activities Completed This Period 11/10/2004 - 12/1/2004
Completed Planning Phase deliverables
Finalized project vision and drafted guiding principles
Met with Program Steering Committee
Prepared for and conducted project Kick-Off Meeting with key stakeholders
Confirmed subject matter experts (SMEs) and developed JAD calendar
Developed preliminary JAD session calendar
Refined communications plan and began stakeholder analysis activities
Met with ITS project management staff
Initiated requirements gathering interviews
Distributed NCTIME communication
Initiated project branding

6. Issues Requiring Management Attention
Status Report
Plans for Next Period
12/2/ /5/2005
Finalize guiding principles
Prepare for and conduct JAD Sessions on the following topics:
Develop and Train Workforce
Monitor Employee Safety & Health
Manage Employee Relations
Career and Succession Planning
Review change management approach with OSC management
Commence monthly ITS reporting
Issues Requiring Management Attention
None this period

7. High Level Project TimelineHR –
Group I •
Personnel
Administration
Recruitment
Applicant Tracking
Disciplinary Action and
Complaint Management
Incident and Accident
Tracking
Exit Interviews
Competency Based HR
Management
Performance
Training Administration
Group II
Compensation
Job and Salary
Surveys
Position Evaluation
Analysis
Benefit
Workforce Analytics
Organizational
Employee Self
Service
Leave Tracking
Payroll
Payroll Processing
Labor Cost
Distribution
Time Collection &
Budget Support
Technical
High level
technical
requirements
Security
Infrastructure
Integration
Plan
Execute
Vision
Close
Project Status Report
Final Deliverables
Offsite Working/Holiday 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 29 27 31 28
Change Management
Date
Project Management
Month
Dec
Project Week
Human Resources
Nov
Jan
Feb
March
Apr

8. HR/Payroll Guiding Principles

9. HR/Payroll Vision
A strategic business partnership supporting the human resource and payroll needs of State government, enabled by utilizing leading business practices and current technology.

10. HR/Payroll Project Goal
Through a statewide collaborative effort, the goal of the HR/Payroll Project is to develop an enterprise-wide Human Resources/Payroll system utilizing leading industry practices to provide a foundation for effective management, increased efficiency, and the information needed to make timely and appropriate decisions.

11. Guiding Principles
Create a seamless HR/Payroll experience for employees
Provide an environment for employees to make informed decisions about their careers
Streamline business processes to drive efficiency
Increase productivity and make the State of North Carolina more competitive
Develop a single repository, with a common set of data elements, to successfully support the State’s reporting and management activities
Move transactions closer to the point of origin (Employee Self Service/Manager Self Service)
Provide a flexible system able to respond to changing HR/Payroll needs
Eliminate redundant systems and duplicative processing
Provide real time access to transaction activity

12. JAD Session Overview

13. JAD Session Agenda Overview and Introductions
HR/Payroll Project Overview
Vision/Goal/Guiding Principles
Overall Project timeline
JAD Session Objectives
Guidelines for This JAD Session
Explain Industry Print
Requirements gathering and process re-design
Next Steps

14. JAD Session Objectives
Deliverable for today
JAD
Session
Industry
Best Practices
Process Designs
State of NC
Process Designs
Project Vision
Scope
Industry Best Practices
HR/Payroll Business Requirements
Future Processes
Business Impact/Benefits
Potential Barriers
Performance
Measurements
Confirm Direction for Next Phase
Review Process/Subprocesses
Identify Activities
Identify Opportunities

15. Guidelines for This JAD Session
Participate! Your input is critical.
This is a workshop, not a formal presentation
Discussion will be kept at a high-level to capture critical information and requirements
Discussion around detailed system functionality will be kept to a minimum
Be respectful of each other’s opinions
Issues that cannot be resolved or discussions that require follow-up will be documented on the parking lot for future resolution
Think positive. Tell us what the process needs to be able to do, not what it cannot or should not do.
Participate! Your input is important to the success of this project
Provide feedback in discussions to allow greater understanding
Use comment form to capture additional details
Submit any additional written comments by <insert date>
This is a workshop, not a formal presentation
Ask questions or raise issues anytime – there are no bad questions
We will use Issue Parking Lot to capture key points and keep session moving
For exceptions, define the business/legal requirement
Business Process drafts are at a high level
Not every detail will be worked out today
Think outside of just what is done today
Use current way as a guide for improvements to future business processes
Develop common processes for the routine way transactions occur

16. Deloitte’s Process-Centered Tool –IndustryPrint™
IndustryPrint™ is a process modeling tool based on industry-specific best practices
Deloitte’s IndustryPrint™ tool can be used throughout the project to help define scope and to design processes based on key inputs such as business requirements, best practices, and future vision
IndustryPrint™ jump-starts a project by providing the foundation to document the organization’s “to-be” processes in an ERP-enabled environment
IndustryPrint™ facilitates the documentation of information critical to the development and implementation of your HR Transformation
Our clients and consultants have found IndustryPrint™ key to accelerating the Plan, Design, and Build Phases of a project
The most valuable aspects of IndustryPrint™ are that it uses best practices, simple diagrams, industry-specific processes, and language to communicate with business users

17. IndustryPrintTM Key Benefits
IndustryPrint™ Process Models
Source Candidates
Internally
Analyze & Create Job
Position
Externally
Qualify & Select
Candidates
Perform Psychological
Profile/Drug Testing
Manage Offer Process
Document Offer
Process Lessons
Learned
Offer Accepted?
Receive Hire Decision/
Acceptance
Document
Employment Data &
Tax Withholding
Preferences
Perform Employee
Orientation
Assign Company
Property No
Yes
HR-010
Plan & Manage
Employee
Resources
IT-070
Support & Train
Users
IT-020
Evolve IT
Architecture
HR-030
Develop & Train
Workforce
HR-050
Perform
Employee Benefit
Event
Maintenance &
Open Enrollment
Starts with a model, not a white-board
Focuses on the future process design
Drives North Carolina to embedded best practices
Flexible enough to incorporate North Carolina-specific processes
Provides common language across North Carolina agencies
Ensures that process and business drivers are driving technology
Accelerates the implementation
Ensures business process ownership and consensus

18. IndustryPrintTM provides multiple levelsHR
Manage Human Resources
Level I - Process
Core Business Process family; Human Resources, Sales & Distribution, Financials, Information Technology, Materials Management, etc.
Level II – Sub-Process
Primary management sub-processes within Human Resources.
These cover the traditional sub-processes such as HR Administration, Benefits, Payroll, Recruitment and other HR management functions.
Level III – Activity Flow Diagrams
Activity Flow Diagrams represent activities within a specific sub-process and their inter-relationships with other activities within and/or outside the sub-process. These are tailored to meet North Carolina’s business needs.
During the workshops, we will utilize the IndustryPrint activities to finalize the North Carolina Template.

19. Level 1: Process Decomposition Diagram
IndustryPrint™ Level 1 provides a graphic depiction of each business process.
Processes
Subprocesses
You can navigate through IndustryPrint by double clicking on the various processes and sub-processes. You can navigate to the package by double clicking on the package icons.
Process Level
Shows all processes and the various sub-processes involved
Double-click on the Process to move down

20. Level 2: Subprocess Decomposition Diagrams
IndustryPrint™ Level 2 provides a graphic depiction of each subprocess.
Process
Subprocesses
Sub-process Level
Shows all sub-processes and the various activities involved
Double-click on the Sub-process to move down

21. Level 3: Activity Integration Diagrams
At the third level, the green business activities from the previous level are now displayed in a flow diagram.
The subprocess model is integrated with other subprocesses that are represented by the shadowed gray triangles, or Connectors. These Connectors depict integration across subprocesses.
Activity Level
Shows the flow of the activity and the steps to complete it
Double-click on the package icon takes you into the application

22. The Subprocess You Will Design
HR-060 Develop and Maintain Workforce
During the workshops, we will utilize the IndustryPrint activities to finalize the NC Template.
As necessary, activities will be added or removed from the model.
The necessity for the continuation of local activities are discussed and resolved. Local variations will be eliminated wherever possible.

23. Another accelerator - Past project requirements
Deloitte has successfully completed numerous HR and Payroll requirements gathering projects
Past client deliverables can not be shared due to confidentiality, but Deloitte will leverage them when developing North Carolina’s requirements
JAD Facilitators will consider past requirements documents, which will yield stronger, more complete requirements for North Carolina
Sub-Process
Benefits Functional Requirements
Life Changes
Ability to terminate participation based on life status change (I.e. no longer a student)
New Hire
System should have mandatory sequence fields and/or flags to warn of incomplete or inconsistent information
System should have the ability for the system to default to certain Benefits settings so that exception information only is being manually keyed by Benefits personnel
Open Enrollment
Ability to assign benefit entry rules (eligibility)
Ability to automatically enroll employees based on comparison of plan eligibility to employee data

24. Change Management

25. Change Management is designed to…
Develop a strategy for managing change in process, technology and management practices
Communicate the HR/Payroll vision and ongoing status
Equip HR/Payroll project Leadership with the information and tools to lead the project
Identify and communicate potential impacts of new processes, procedures, and technology to be implemented in Phase III
Identify potential areas of project risk and devise strategies to mitigate that risk

26. Framework for Change Management Strategy: The 8 Steps of Change
Implementing and sustaining change
Engaging and enabling the whole organization
Creating a climate for change 1 2 3 4 5 6 7 8
Increase Urgency
Build the Guiding Team
Get the Right Vision
Communicate for Buy-in
Empower Action
Create Short-term Wins
Don’t Let Up
Make it Stick
5 Kotter, John P. and Cohen, Dan S. The Heart of Change. Boston: Harvard Business School Press

27. Open Discussion

28. Action Items Review

29. PMC Action Items
ASAP - Finalize List of Process Owners
December 6, 2004 – JAD Sessions Begin
January 6, 2005 – Next PMC Meeting