1. Lessons Learnt from Fusion Implementation at Euroclear
HCM SIG March 2014
Rossi Dzhedzheva: Fusion HCM consultant
Gregory Deruelle: Head of Corporate Support Roadmap

2. Agenda Euroclear Presentation Implementation objectives
Implementation strategy
Challenges
Lessons learnt
Q&A
We have gone Live with Goals successfully in January. Next modules going live in the coming months are Performance and Talent
Best practice suggests Global HR should be the first module to implement to provide the master data for all remaining modules
Euroclear’s main objective, however, was to deliver quick wins to the business, providing “visible improving steps along the way”
This meant we had to adopt a unique back to front implementation strategy, starting with the most strategic modules
Simple co-existence model was created to mimic HR2HR
No coexistence altogether as a result

3. Euroclear presentation

4. Euroclear is…
A post-trade financial market infrastructure which is user owned and user governed
The Euroclear Group is the national Central Securities Depositories (CSDs) for Belgium, Finland, France, Ireland, the Netherlands, Sweden and the United Kingdom serving local clients for local transactions
Euroclear bank is the leading International Central Securities Depository (ICSD) covering more than 1,000,000 securities, with access to domestic securities from over 40 markets and settlements in 53 currencies worldwide
Our Clients
Facts & Figures
All major financial institutions in more than 90 countries and millions of retail investors. Global and local custodians, broker dealers, central banks, commercial and investment banks, investment managers, supranational organisations and a wide range of issuers.
Over €540 trillion of transaction settled yearly
€23 trillion of assets held in custody
€700 billion of collateral mobilised daily 4

5. Our organisation Worldwide footprint, but Europe centric
Headquarters based in Belgium
7 main countries and 8 representative/branch offices
3600 employees (4700 incl. contingent workers/vendors)

6. Implementation objectives

7. The context at Euroclear
For the past two years Euroclear has been undergoing a major HR transformation
The aim of the transformation is to deliver a stronger HR division in support of the business:

8. Compensation/Benefits
Implementation objectives
Euroclear chose to implement Oracle HCM Cloud as one of the main pillars of its transformation
Reduce costs of maintaining current PeopleSoft solution which is heavily customized and internally hosted
Have a truly global & integrated approach to Performance and Talent management
Have a single source of truth for all employee data enabling global reporting and real BI trend analysis
Decommission multiple disconnected and isolated HR databases which led to time consuming administrative and paper-based processes
Euroclear chose to implement Oracle HCM Cloud as one of the main pillars of the HR Transformation:
To reduce costs of maintaining current PeopleSoft solution which is heavily customized
To have a truly global approach to Performance and Talent management
To have a single source of the truth for all employee data and quickly report on it on a global scale
To decommission multiple disconnected and isolated HR databases which led to time consuming administrative and paper-based processes
Core HR
Learning
Talent
Recruitment
Time
Compensation/Benefits
Internal tool
Payroll
Case Management

9. Compensation/Benefits
The future landscape at Euroclear The final objective is to move all HR applications to the Oracle cloud platform
Core HR
Learning
Talent
Recruitment
Compensation/Benefits
Time
Core HR:
Manage Workforce Structures
New Hire
Person Management
Person Information
Manage Employment
Terminate Employee
My Portrait/ Person Gallery
Talent:
Goal Management
Performance Management
Talent Review
Succession Planning
Comp:
Compensation Management
On-cycle compensation review
Off-cycle salary and compensation changes
Benefits Administration
Payroll
Case Management
Outsourced

10. Implementation strategy

11. Traditional deployment strategy
Usually Global HR is implemented first, however this wasn’t a suitable option for Euroclear
Global HR is required to provide the master data for all Talent modules. If this is not implemented, a temporary coexistence model must be adopted
Goal and Performance Management are heavily inter-dependent so should be implemented together
Talent review and succession planning are closely linked, and typically use the data collated in the performance review cycle. Compensation can be dependent on data from all modules and so should be left until the end
Why not:
Due to complexity of the technical architecture in Euroclear and integration complexity, given our regulated constraints. it would have taken too long to implement Global HR first
The main objective of the project was to improve HR service by prioritizing the use of more strategic modules like Performance, Talent and Succession to drive value in the organization
Why this approach was not suitable for Euroclear:
HR management steered to deliver added-value functionalities first
Complex internal technical architecture (cloud integration)

12. Talent Design & Delivery
Where are we in our journey
To deliver quick wins to the business our implementation strategy started with the most strategic modules
Module by module implementation strategy
Temporary “manual” coexistence model
Q2-13
Q3-13
Q4-13
Q1-14
Q2-14
Q3-14
Q4-14
Time tracking rollout
Initial Design
Core HR Local Design
Compensation
and Benefits
Talent and
Succession
Delivery
Core HR
Goals, Performance &
Talent Design & Delivery
Taleo Learn
To deliver quick wins to the business we had to adopt a module by module implementation strategy, starting with the most strategic ones – Goals, Performance, Talent and Succession
A temporary coexistence model had to be adopted to maintain Core HR data mimicing HR2HR
Phase complete Go-Live

13. Implementation methodology
A hybrid methodology between Waterfall and Agile provides numerous benefits, but requires continuous planning
Plan
Design
Build
Deliver
Operate
Deploy to Production and Plan
Confirm Design
Configure Requirements
Validate configuration
Sprint Review Meeting
Zoom on sprint
Iterative approach for multiple releases of each Sprint
We adopted a hybrid methodology between Waterfall and Agile (Wagile) to ensure we build, test, and validate the system in logical process groups, called ‘sprints’
Agile product delivery requires continuous planning across the lifecycle of the product, allowing business critical features to be delivered on priority
High Business Value
Quick delivery of working software
Solutions are delivered based on business priorities
Early return on investment as working code is produced early on in the process
Rapid delivery of working software
Develop solutions based on client business priorities
Working software is the main objective of the agile team
Every activity must be beneficial to the main objective
The result of each Sprint is a working solution with minimal bugs
High Adaptability
Requirements gathered at the start of each Sprint allows for adaptability
Increased opportunity for changing requirements and altering global design
Multiple releases allow for continued change
Adaptive evolution of requirements from high-level user stories to detailed requirements through continuous client discussion
Agile methods embrace change as inevitable. Business needs are changing rapidly and agile methods do not assume that requirements can be frozen
Increased client satisfaction as the system is adapted to their needs
Improved system design that is simple and easy to understand (due to frequent refactoring of code)
Better alignment with Cloud release management
Low Delivery Risk
Sprint Reviews help confirm the solution meets client expectations
Collaborative self-directed teams help increase accountability
Improved quality due code integration and test within each iteration
Sprint Reviews after each sprint helps team confirm working software meets client needs. So end product is closer to what the client wants
Continuous Improvement –
Method builds in consistent feedback loop with client and internal team via Sprint Review/ Sprint Retrospective
Each Sprint team able to improve
High Visibility
Increase project visibility and communication
Daily Stand-up, Kanban Board, Burndown Chart increase project visibility and communication
Cross functional, self organizing teams provide increased communication, clarity, and productivity
Main objectives were:
More controllable approach with tangible results
Earlier adoption of the new tools by HR teams
Higher adaptability to business / technical changes

14. challenges

15. Challenges There were numerous challenges along the way Challenges
Impact
Strategic
Timelines expectations
Multiple projects
Global vs. local design
Change management
Timescales dependencies on numerous factors
Project timelines and key resources involvement
Aligning local countries to a global model can be a challenge
Training and change management should apply to everyone
Functional
Simplicity
Customizations
Cloud release cycle
Mirroring exactly what you have today creates more complexity
Some areas might feel like a regression
Constant changes on project planning
Strategic
Expectation that SaaS implementation will deliver value quickly
Timescales around implementing a SaaS solution are dependent on a number of factors, some of which can be scoped at the start of the project (module scope, number of interfaces etc.) and others which are less predictable (technical challenges, stability of the application, etc.)
2. Multiple projects running at the same time
Simultaneous projects significantly shift project timelines and also impact key resources involvement
3. Global vs. Local design
Aligning local countries to a global model can be a challenge
4. Change management
Training and change management do not only apply to main users, but also to HR staff, if they are going to be responsible for the general management of the system
Functional
Simplicity
Mirroring exactly what you have today creates more complexity
2. Customizations are not possible in Saas to the same extent as in PeopleSoft
When moving from an on-premise to a SaaS solution, some areas (particularly in the Global HR module) will feel like a regression in terms of functionality, because customizations are not possible to the same extent
3. SaaS has 2 annual releases
New releases bring new functionalities, but also require substantial regression testing and can significantly impact project timelines
Technical (in more detailed in lessons learnt)
1. Data migration
The scope (historic data) and scale of data migration have significant impact on project planning and modules functionality – cannot make the most of Talent and Succession functionality without core HR data (jobs, positions, competencies). The cleanliness of the data can also have an impact – rubbish in – rubbish out
2. Specific skills and knowledge, time and effort are required to build complex reports in BIPublisher
3. Back to front implementation requires temporary co-existence model
The complexity of the co-existence model can have a significant impact on the intended implementation schedule because of:
Time spent building interfaces which are short-term only
Possibility of double entry
Increased probability of data inconsistency and errors
Increased costs of maintaining multiple applications
Technical
Data migration
Reporting
Interfacing
Back to front implementation
Maturity of Fusion
Significant impact on the intended implementation schedule (trial and error approach)
Unclear functionality
Lack of skills and knowledge on the market

16. Lessons learnt

17. What about Fusion?
It’s perfect for a standalone implementation, but still needs to improve for a corporate integrated solution
Fusion is functionally working fine … but technically not mature
Reporting still highly technical
Data Migration is very complex
Interfacing seems not straight-forward
Oracle reactivity is good, but Support is still in learning mode
Stability/release management is not yet at par with PeopleSoft and EBS
Need to train your own people, given the lack of resources on the market
The Fusion Community is key to support you
Need strong support from Oracle management (& development)
Can be used, without compromises, for large organisations as of R8
Fusion is functionally working fine … but technically not mature
Reporting still highly technical
OTBI is lacking a lot of data objects
BI publisher is powerful and give access to the whole Fusion DB, but it’s SQL coding
Highly difficult to map fields between screens and DB/reports
Data Migration is very complex.
No transformation in Fusion.
Highly difficult to map fields between screens and DB … “what you see is not what you have loaded”
Build in data objects don’t cover the whole Fusion DB
Very sensible to data issue
Interfacing seems not straight-forward
Oracle reactivity (Service and Enhancement requests) is rather good, but Support still in learning mode
Stability/release management is not yet at par with Peoplesoft and eBS
Very big functionality upgrade at each release
Regression problems between release/patches
Oracle moving from ad-hoc release management to factory release management but not running yet
Need to train your own people, given the lack of resources on the market
SI are still in learning mode
Technical resources are most of the time off-shore, but Fusion not suitable for Factory approach
Many larges projects are still on-going
The Fusion Community is key to support you
Support focusing on problems and cloud Operations
Community for how-to questions
Oracle developers are part of the community
Need strong support from Oracle management (& development)
To have preview of coming features
For escalation path for problems and defects
Can be used for large organisations as of R8
Enhanced features are available as of R8 (workflow, custom roles, …) 17

18. Lessons learnt Simplicity is key
Create a global design and stick to it
Assess local/regional requirements
Simplify existing systems with Fusion
Don’t try and build what you already have
Communicate clearly the advantages that are gained
Don’t get hung up on aesthetics
Don’t underestimate testing
Create a global design guided by the seeded functionalities in Fusion, and stick to it.
The global design should only be changed in local countries for legal or regulatory reasons
Start the requirements gathering piece from the vanilla system, not from a blank sheet of paper. Keep in mind that it is possible to simplify existing systems with Fusion.
If the system does it, use it. If the system doesn’t do it, don’t try and force it in. It will lead to problems further down the line.
When moving from an on-premise to a SaaS solution, some areas (particularly in the Core HR module) will feel like a regression in terms of functionality, because customizations are not possible. Take the time to explain to the whole team the advantages that they are gaining despite this perceived backward step.
Don’t get hung up on aesthetics, such as renaming or hiding fields. This is more trouble than it’s worth, and the system appearance will more than likely change in the next release 18

19. Lessons learnt Implementing a new system is not a stand-alone project
Implementation plans should allow for various complexities
Technical challenges (data migration, interfaces)
New Releases
Projects in parallel
Begin the technical work as early as possible
Design new processes with the system in mind
Don’t underestimate change management
The process design, change management, functional and technical teams should work together
Timescales around implementing a SaaS solution are dependent on a number of factors, some of which can be scoped at the start of the project (module and geography scope, number of interfaces etc.) and others which are less predictable (technical challenges, stability of the application, level of knowledge transfer). Implementation plans need to allow for these complexities in the same way you would with non-SaaS deployments.
Include the twice-yearly new releases in your plan: they will require a lot of attention and resource time for regression testing
The scope and scale of your data migration will also have significant impacts on your schedule if left for last minute. Any new required interfaces should focus purely on data items which are critical for other processes (e.g. payroll). A detailed data cleansing and validation strategy will need to be developed
Simultaneous projects can add complexities, significantly shift project timelines and also impact key resources involvement. Make sure these are prioritized and planed well in advance, so people can have enough time for their day-to-day job.
Begin the technical work (e.g. interfaces, data migration) as early as possible, if not simultaneously with the functional work. This is likely to be the area that causes significant delays
Make sure you have clearly defined objectives of what you want to achieve through the implementation, and ensure that everybody on the project team and sponsorship are aligned with those objectives
When designing new processes have the system in mind. SaaS limitations mean you will not be able to meet some of the process requirements you create if you do not know the system limitations from the start
Effective management of change is too often an afterthought of transformational programmes and is often a reason why over half of major business initiatives fail to realise anticipated benefits. That’s why Proactive and on-going change management must be an integral part of the programme to help build change momentum and clearly communicate the benefits of change. A significant level of change management and training has to be delivered to HR staff if they are going to be responsible for the general management of the system
The process design, change management, functional and technical teams should work team should together throughout the project as there are heavy interdependencies
The project work closely with the business in order to manage expectations better on an ongoing basis and make the correct decisions. Take time to articulate early on what the business will get that it does not today 19

20. Any questions?