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Transcript of Classification: KeyCorp Public KeyBank Case Study Moving to HRO and Technology in the Cloud Katie...
Classification: KeyCorp Public
KeyBank Case Study
Moving to HRO and Technology in the Cloud
Katie Ladd, Jennifer Koch & Doug Kanouff
Case Overview
KeyBank was experiencing expensive and time consuming upgrades for their core HR technology. Technology met current but not future needs of the organization. It did not align with corporate strategy. HR operations workforce was not fluid and agile. KeyBank’s overarching philosophy is to source non-core activities.
HR was tasked with transforming to focus on strategy, technology to advance their business, contain cost and remain compliant.
Solution: Infuse cloud technology with HR sourcing solutions.
2
Journey Begins
Katie Ladd - Director of Employee Relations, HR Compliance and HR Operations•Define Scope•Due Diligence•The Solution
Jennifer Koch - HR Director of Technology and Operations – Project Manager•Project staffing•Timeline•Transition •Change management
Doug Kanouff - Director Enterprise Architecture•Technology solution•Conversion•Implementation
3
HR Optimization - Background
The Scope
•Workforce Administration & Core HRIS•Employee Services (Contact Center)•Payroll•Benefits Administration•Leave Administration
• Talent Acquisition (Branch & Client Contact Center positions)
• Learning Content Development• Compensation (System only)• Performance Management (System only)• Succession Planning (System only)
Strategic Objectives
•Leverage strategic partner capabilities for delivery of HR Operations at Key (payroll, benefits administration, leave management, employee contact center, and HR systems management)
•Implement next generation recruitment solution to improve ability to hire the right talent at the right time in support of employment brand leveraging Recruiting Process Outsourcing services and full candidate management system
•Support employee and leadership development objectives by positioning Key to focus on assessing needs as the business evolves, leveraging automated delivery, and providing access to advanced learning content development expertise to reduce reliance on Instructor Led Training
4
5
HR Optimization - Background
The Approach
•Initiated RFI with four providers (1Q12)
•After RFI, narrowed providers to two -- Aon Hewitt and IBM (2Q12)
•Further current state assessment and deep dive inbound and outbound due diligence (3Q12 – 1Q13)
– Three rounds of negotiations resulted in reduction of initial bids
– Creative solutions including the introduction of Workday (software as a service) as an HR Information Systems platform
• To best meet Key’s strategic HR objectives, a blended Provider solution was selected (2Q13)
Due Diligence Goals and Purpose
Verification Vendor’s capability to deliver proposed solutions
Validation The scope of engagement The baselines, i.e. transaction volumes and staffing levels
of current operations for in-scope servicesInformation Gathering A successful transformation and transition
Identification Risks to KeyBank Issues, and potential liabilities
Validation of The scope of engagement The baselines, i.e. transaction volumes and staffing
levels of current operations for in-scope servicesVerification of
Assumptions used in the proposalInformation Gathering for
A successful transformation and transitionIdentification of
Issues, risks and potential liabilities
Key Bank
Vendor
6
Evaluation Scorecard and Rating Instructions
7
Evaluation for HRO Services AH 27.0 Name: IBM 27.0 Date:
Background & Quals R
ele
vant
Experience
Ability t
o m
eet
our
busin
ess r
equirem
ents
/delivera
ble
s
Quality
of
Resourc
es (
Depth
of
Know
ledge,
Vis
ion a
nd
Com
pliance S
upport
)
Ease o
f D
oin
g B
usin
ess
(Fle
xib
lity
, C
onfigura
bility,
Alignm
ent)
Level of
Auto
mation (
UI,
Pro
cess,
Report
ing,
Pro
ject
Support
)
Tota
l
Comments
AH 3 3 3 3 3 15IBM 3 3 3 3 3 15
Solution OverviewAH 3 3 3 3 3 15IBM 3 3 3 3 3 15
TechnologyAH 3 3 3 3 3 15
IBM 3 3 3 3 3 15
SOWAH 3 3 3 3 3 15Compensation 3 3 3 3 3Benefits & Leaves 3 3 3 3 3Payroll 3 3 3 3 3Talent Acquisition 3 3 3 3 3Talent Management 3 3 3 3 3Learning 3 3 3 3 3Employee Services 3 3 3 3 3Workforce Admin 3 3 3 3 3IBM 3 3 3 3 3 15Compensation 3 3 3 3 3Benefits & Leaves 3 3 3 3 3Payroll 3 3 3 3 3Talent Acquisition 3 3 3 3 3Talent Management 3 3 3 3 3Learning 3 3 3 3 3Employee Services 3 3 3 3 3Workforce Admin 3 3 3 3 3
Evaluation for HRO Services AH 27.0 Name: IBM 27.0 Date:
Background & Quals R
ele
vant
Experience
Ability t
o m
eet
our
busin
ess r
equirem
ents
/delivera
ble
s
Quality
of
Resourc
es (
Depth
of
Know
ledge,
Vis
ion a
nd
Com
pliance S
upport
)
Ease o
f D
oin
g B
usin
ess
(Fle
xib
lity
, C
onfigura
bility,
Alignm
ent)
Level of
Auto
mation (
UI,
Pro
cess,
Report
ing,
Pro
ject
Support
)
Tota
l
Comments
AH 3 3 3 3 3 15IBM 3 3 3 3 3 15
Solution OverviewAH 3 3 3 3 3 15IBM 3 3 3 3 3 15
TechnologyAH 3 3 3 3 3 15
IBM 3 3 3 3 3 15
SOWAH 3 3 3 3 3 15Compensation 3 3 3 3 3Benefits & Leaves 3 3 3 3 3Payroll 3 3 3 3 3Talent Acquisition 3 3 3 3 3Talent Management 3 3 3 3 3Learning 3 3 3 3 3Employee Services 3 3 3 3 3Workforce Admin 3 3 3 3 3IBM 3 3 3 3 3 15Compensation 3 3 3 3 3Benefits & Leaves 3 3 3 3 3Payroll 3 3 3 3 3Talent Acquisition 3 3 3 3 3Talent Management 3 3 3 3 3Learning 3 3 3 3 3Employee Services 3 3 3 3 3Workforce Admin 3 3 3 3 3
Evaluation for HRO Services AH #REF! Name: IBM #REF! Date:
Background & Quals R
ele
vant E
xperie
nce
Ability to m
eet our busin
ess requirem
ents/deliverable
s
Quality of R
esources (D
epth of
Know
ledge, V
isio
n and
Com
pliance S
upport)
Ease of D
oin
g B
usin
ess
(F
lexib
lity, C
onfig
urability,
Alignm
ent)
Level of A
utom
atio
n (U
I,
Process, R
eportin
g, P
roje
ct
Support)
Total
Comments
Service LevelsAH 3 3 3 3 3 15IBM 3 3 3 3 3 15
Transition PlanAH 3 3 3 3 3 15IBM 3 3 3 3 3 15
BCPAH 3 3 3 3 3 15IBM 3 3 3 3 3 15
GovernanceAH 3 3 3 3 3 15IBM 3 3 3 3 3 15
Value- addAH 3 3 3 3 3 15IBM 3 3 3 3 3 15
Commercial Specifications A
lignm
ent (agreem
ent w
ith T
&C
s,
pric
ing transparency)
Com
petitiv
e (approach to T
&C
s,
pric
ing structure)
Ease of D
oin
g B
usin
ess (F
lexib
lity,
Config
urability, A
lignm
ent)
Ris
k (T
erm
inatio
n F
ees &
la
nguage)
Assum
ptio
ns &
C
aveats (M
agnitude
ofgaps in
pric
ing, caveats on T
&C
s)
Total
AH 0IBM 0
PricingAH 0IBM 0
Evaluation for HRO Services AH #REF! Name: IBM #REF! Date:
Background & Quals R
ele
vant E
xperie
nce
Ability to m
eet our busin
ess requirem
ents/deliverable
s
Quality of R
esources (D
epth of
Know
ledge, V
isio
n and
Com
pliance S
upport)
Ease of D
oin
g B
usin
ess
(F
lexib
lity, C
onfig
urability,
Alignm
ent)
Level of A
utom
atio
n (U
I,
Process, R
eportin
g, P
roje
ct
Support)
Total
Comments
Service LevelsAH 3 3 3 3 3 15IBM 3 3 3 3 3 15
Transition PlanAH 3 3 3 3 3 15IBM 3 3 3 3 3 15
BCPAH 3 3 3 3 3 15IBM 3 3 3 3 3 15
GovernanceAH 3 3 3 3 3 15IBM 3 3 3 3 3 15
Value- addAH 3 3 3 3 3 15IBM 3 3 3 3 3 15
Commercial Specifications A
lignm
ent (agreem
ent w
ith T
&C
s,
pric
ing transparency)
Com
petitiv
e (approach to T
&C
s,
pric
ing structure)
Ease of D
oin
g B
usin
ess (F
lexib
lity,
Config
urability, A
lignm
ent)
Ris
k (T
erm
inatio
n F
ees &
la
nguage)
Assum
ptio
ns &
C
aveats (M
agnitude
ofgaps in
pric
ing, caveats on T
&C
s)
Total
AH 0IBM 0
PricingAH 0IBM 0
The following Rating Factors are to be used. Please do not deviate from the use of 1, 3, or 9. All ratings have been pre-populated to 3 = "meets needs" as a starting point.If you are not rating a category/section then place "n/e" for all Providers.
Rating Factor 9 – Significantly Exceeds (enter ratings in green cells on the "RFP Summary" tab)
3 - Meets Needs
1 - Does Not Meet
"n/e" - Did not Evaluate (if this rating is used it must be used for all Providers)
Sample Evaluation
1. Currently all categories are weighted as follows: (Background, Solution, Technology, Scope, Service Levels, BCP/DR, Governance, Value-Add)
Relevant Experience 25% Ability to meet Key’s Business Requirements 25% Quality of Resources (Depth of Knowledge, Vision and Compliance Support) 25% Level of Automation (UI, Process, Reporting, Project Support) 15% Ease of Doing Business (Flexibility, Configurability, Alignment) 10%
2. Commercial Weighting - Currently weighted as follows: Alignment (Agreement with T&Cs, Pricing Transparency) 25% Competitive (Approach to T&Cs, Pricing Structure) 25% Ease of Doing Business (Flexibility, Alignment) 20% Risk (Termination Fees & Language) 20% Assumptions & Caveats (Magnitude of Gaps in Pricing, Caveats on T&Cs) 10%
8
The Solution
Selected two strategic providers and leveraging each for their best in class services
o Aon Hewitt/Workday to provide business process outsourcing for Payroll, Service Center, Benefits and Leave Administration services
o Aon Hewitt/Workday to provide system only solution for Compensation and Talent Management
o IBM/Kenexa to provide Recruiting Process Outsourcing for high volume recruiting, Applicant Tracking System and Learning Content Development services
The Benefits
Leverages cloud evergreen core HR system with access to enhanced solutions for Talent Acquisition, Performance Management, Succession Planning, Compensation Planning and Learning as well as a collaborative and consultative partner to plan and strategize with Key as business needs evolve.
o Cloud based, evergreen solution
o Majority of HR processes integrated with Workday
o Compliance and Regulatory modules are refreshed periodically as part of standard services
o Leverages variable run rate cost structure based on head count +/-
o Eliminates need to maintain systems and processes that are non-core to Key (e.g.,PeopleSoft hosting)
Blended supplier solution: Aon Hewitt and IBM
9
Lessons Learned
10
Align executive support from throughout the organization, not just HR, for project
Ensure the providers you are considering are flexible with solutions
Insist on a dedicated team as you move through the process
Engage subject matter experts and remain focused on scope
Don’t be shy about asking questions to verify quality of resources and ability to meet business requirements
Triple-check volumes and resources to confirm commercial aspects, set foundation for performance measures, and finalize Statement of Work
Define evaluation criteria and weighting; ensure consistency
Build foundation to sustain a win-win relationship with your vendor
Key HRO Transition Team
Transition Support Partners
Executive Sponsor:CHRO
SPSC Solutions Manager
Core Team
5-6 Subject Matter Experts
Core Team
5-6 Subject Matter Experts
Core Team
5-6 Subject Matter Experts
Core Team
5-6 Subject Matter Experts
Transition Manager
Core Team
5-6 Subject Matter Experts Finance
Risk Review
CompensationTower Lead
Payroll Tower Lead
Procurement
LeavesTower Lead
WFA/HRIM, ESTower Lead
Benefits Tower Lead
CHRO, CIO CO-Pres. Commercial Bank,
SPSC Exec
Security/ BCP
Risk
Core Team
5-6 Subject Matter Experts
Core Team
5-6 Subject Matter Experts
Core Team
5-6 Subject Matter Experts
Talent Management Tower Lead
LearningTower Lead
Talent AcquisitionTower Lead
Strategic Partner Solutions Exec.
Program Director
Executive Leadership Team
IT – Transition Support Team
IT Transition Tower Lead
Project Manager – Transition Support
Tech Project Manager Tech Project Manager
Tech Lead Tech Lead
Project Manager – Transition Support
Transition Change Tower
Lead
Change MgmtSupport Team
Communication TrainingHuman Capital
11
Project Teams & Committees – Interaction & CadenceExecutive Steering Committee – monthly update meetings
Chair: Program Director
Members: CHRO, CIO, Co. President Comm Bank, SPSC Exec.
Begins: Needs to be established; week of 7/29/13
Chair: Program Director
Members: CHRO, HR Directors, HR COE Directors, Transition Manager
Begins: Already established; next update 7/29
Chair: Transition Manager
Members: Tower Leads- Functional, Tech, Change and Support Partners
Begins: Week of 7/29
Chair: Transition Manager
Members: Key Program Director, SPSC Leader, Tech Lead, Aon Program Director
Begins: TBD
HR Leadership Team – weekly update in already standing routine
Program Management Office – weekly update meetings
Integrated Transition Team (Aon) – weekly update meetings
Integrated Transition Team (IBM/Kenexa) – weekly update meetings
Chair: Transition Manager
Members: Key Program Director, SPSC Leader, Tech Lead, IBM Program Director
Begins: Week of 8/5/13
Domain Transition Team – daily meetings
Chair: Project Managers
Members: Trans. Manager, Project Managers, HR Domain Manager, HR Domain Core Team, Tech leads
Begins: Talent Acquisition 7/19/13; Learning Week of 8/5/13; Others TBD
12
HRO Transition Timeline
Pre-Plan Plan Architect Config/Prototype Test/Deploy Stabilize
Jul-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14
IBM/Kenexa
Talent Acquisition - RPO
Talent Acquisition - Brassring
Learning
AON Hewitt Workday
WFA/HRIS*/ES*
Payroll
Compensation
Talent Management
H&W
Leaves
* HRIS & Employee Services only have Prototype I, business requirements defintion and UAT will vary slightly from dates noted
Aug-13
Go-Live
Go-Live
Go-Live
Begin Reqs Finalize Reqs Begin UAT End UAT Go-Live
Begin Reqs Finalize Reqs Begin UAT End UAT Go-Live
Begin Reqs Finalize Reqs Begin UAT End UAT Go-Live
Begin Reqs Finalize Reqs Begin UAT End UAT Go-Live
Go-Live
Go-Live
Begin Reqs
Begin Reqs
Finalize Reqs
Finalize Reqs
5/2 - 5/27 UAT
5/2 - 5/27 UAT
13
Critical Path – Change Management
Sept
Kick OffRequirements
Complete
Detailed Training Strategy Complete
Go Live
Training Materials Complet
e
Go / No Go
2013
Oct Nov Dec Jan Feb Mar Apr May Jun Jul
2014
Training Begins
Detailed Communication
Strategy Complete End users using new tools
Change Impacts Complete
Stakeholder Analysis Complete
Sponsorship Coalition Complete
Communication Materials Complete
HR Business Process Outsourcing | Implementation Shared Services Proprietary & Confidential 14
15
The Facts
Don’t Under-
Estimate
Leading through change
No matter how “small” or how short the project, you need a full end-to-end change management strategy and plan
The successfulness of your project will depend on how you create awareness and champion for adaptation of change
Identify your sponsors and engage them early as advocates for the initiative FAQs don’t lie
Never too soon to begin your change management strategy and planning Change management is a science as well as an art. Don’t down play the
specialized skills/experience needed to effectively manage the change The power of grass root effort in its ability to increase adoption Don’t wait until you need change management to engage your change leads
16
Must Do’s
Doing It Differently Next Time
Managing the transition Strongly recommend resourcing project team with full-time, dedicated team Ensure subject matter experts are engaged in critical roles, i.e. Payroll, Benefits,
Leaves, etc. Positioning for success
o Select project team leads who have the credibility to lead a highly demanding project and establish their authority for making decisions
Expect change, be open to what comes and navigate through it Keep it simple, stay focused on your primary objective, transformation won’t
happen over night Solve and design for the majority, not the exceptions. Live by the 80/20 rule.
It’s never too early to bring multiple partners, if applicable, to the table for integrated conversations
Have a game plan for how to leverage partner’s project plans Establish your future state governance model during Transition Begin your change management plan on day one
Solution Description Scope
Core: Workforce Admin, Payroll, Employee Services, Benefit Administration, Leave Administrationo Data Conversion to Workday (Workforce Admin, Payroll)o Data Conversion to Aon (Benefit Administration, Leave Administration)o Interface Mapping and Development (All functions)o Support for one-time setup\configuration (All functions)o SSO Integration (Workday and Aon)
Talent: Talent Management, Talent Acquisition, Learning, Compensation o Data Conversion to IBM (Talent Acquisition)o Interface Mapping and Development (Talent Acquisition) - BrassRing to Workdayo Background Integration - FirstAdvantage, BrassRingo Support for one-time setup\configuration (Talent Acquisition, Talent Management, Compensation, Learning)o Interim PeopleSoft Modifications to support IBM recruitment on PeopleSoft and temporary integrations between
BrassRing and PeopleSofto SSO Integration (Talent Acquisition, Compensation (MarketPay)
Feeds from current HR to existing systems replicated by new solution in order to reduce rework of existing downstream systems. The Enterprise Data Supply Chain ingests data from vendors and provides the data for internal system usage where appropriate.
Kronos is the only HR related technology still housed at Key. All other HR related technology will be housed at the vendor(s).
17
HR BPO – Logical Context Diagram
18
KEY
EDP
Internal systems
PRC
ACH GLJ
Internal FeedsInternal Feeds
CIS
Notes
EIM
KCB
Recruitment(BRR)
3rd Party Feeds
= New Component
Portal 2.0
(HRP)
Absence Management
360
TBA
Service Center Applications
UI ServerOMS
In-Memory Server xml
xml
Shared Drives
Kronos (KRO)
HRS
BMS
HRONLINE
HRANALYTICS
ICS_WIGG
KDI
= Retired Component
Evolution(EVO)
Outlook
CDS
BizLinkIntegration
Cloud Connect Custom Integrations
Integration Cloud
Persistent store
xml
RSA WebAuth
3rd Party Feeds
3rd Party Feeds
FTP
CA AuthMinder(MFH)
Key.com
Middlew
are processers
NXG
PrudentialPrudential
Merc MedcoMerc Medco
CIGNACIGNA
UHCUHC
EYEMEDEYEMED
FEDChild
Support
FEDChild
Support OPTUMOPTUM
FE BNY Mellon RFMKey Trust
MBENMBEN
ConcurConcur
U.S. Government(eVerify)
State of OhioState of Ohio
ADPADP
TALXTALX
SpotlightSpotlight
FidelityFidelity
CitiBankCitiBank
CWTCWT
NextJumpNextJump
MarketPay
JAT
VOCUS
CIC+
(HRS LEARNCTR)
HSA
Jobs America
PCM
TNS
GFT
TLS
BDM
DTP
LDR
CEP
PCM
ALS
HR BPO – User Interactions
Key
TFIM
SSO For Training
BrassRing
Recruitment
Non-Key – Potential Candidate
Internal Candidate
Learning ContentReviewer
KeyNet Training
Key.com
Ext. Candidate
Learning ContentAdministration
External Candidate
= New Component
Key Issued LaptopVPN Connectivity
Key Issued LaptopVPN Connectivity
Notes IBM RecruiterKey Email
Recruitment
SSO for InternalCandidate &Recruitment
Kenexa
Evolution
Learning Content Management
WorkDay
HR
SSO for HR
Alumni
Key – Non-Key Device
HR
HR
SSO
Kronos (KRO)
AON CS Agent
Time Records
SSO for HR
Key Recruiter
Load LearningContent
IBM Content Delivery
Learning Content Development
3rd Parties
Shaker
HR Online
= Retired Component
19
and Employees
Security – Single Sign-On
Aon Domain
Key Domain
Aon Portal
Key TFIM
Key Employee (Key device)
Nucleus 360
TBA
Aon Internal SSO
Aon Internal SSO
Oracle Taleo Learning
IBM BrassRing
Enabled in Phase 2 Talent Acquisitio
nExisting
Workday
SSO for Key non-actives to WD
Employee and Alumni (non-Key device)- enter via Aon Portal, access to WD
With credentials from Aon
Aon Ping
SS
O fo
r K
ey
Use
rs to
Aon
To be built during Aon\Workday Implementation
Benefits Providers
Exi
stin
g
MarketPay SSO for Key Users to Market Pay
SSO for Key actives to WD
Key Employees transferred from Aon Portal (via url
links) to Key for navigation to and authentication with
3rd Parties
20
Lessons Learned
Data Conversion: probably the most straight-forward part of our technology implementation….specifically Core Workday data conversion. Conversion to BrassRing was more complex.
o Multiple dry runs, automate file compares…even before loading to the application
o How much history is enough… and what do to with the data you don’t convert?
Data Integrations: ~100 involving 15-20 third-party vendors
o Make a list and check it twice (better make that 10 times): Know who is consuming the current HR data….scheduled integrations and direct DB read access
o Don’t try to get too far ahead, slow your roll: Functional Decisions impactful to integration attributes, timeframes, etc. Let the functional decisions\requirements lead the way, followed closely by the integrations
o Don’t bite off more than you can chew: Phase in the integrations based on priority ….we had 3 waves
o Minimize Collateral Damage: Provide down-stream applications what they get today
o Charge the batteries of your secret decoder ring: multiple vendors, speaking different terminology. Plan to be the interpreter…and Switzerland!
o Who’s on first, what’s on second: Establish a well defined flow for the creation and review of the requirements and design documents. Not the project plan…but a matrix. Don’t underestimate the amount of time it takes to slug through this process
o Production Orchestration: Just when you were feeling good about the build and test, then you realize….all this stuff needs to be scheduled to run in Prod
21
Lessons Learned, Cont
Payroll = Job #1…..
o Appropriate accounting = Job #2: Testing should include balance and recon
o More broadly speaking….don’t get lulled into exclusively relying on the “Pay Cycle Match” metrics: Expand Payroll testing cycles to include upstream and downstream data integrations
Miscellaneous
o Site for collaboration: issue log management, documentation, contact info. Internal and externally shared
o Data Validations: Not in the core application, implications downstream can be painful
o Enterprise Interface Builder (en mass updates tool) are painful: proceed with caution
o Critical Implementation Tools Required:
22
Appendix
Payroll End to End
24
Time Online
25
Accounting
26
Downstream Integrations
27
Brass Ring-Workday-Key Bank
28