HR/PAYROLL

MODERNIZATION PROGRAM

Lessons Learned

Technology Services BoardFebruary 11, 2016

PROGRAM BACKGROUND

PROGRAM BACKGROUND

> The Human Resources/Payroll (HR/P) Modernization program is the largest administrative transformation effort ever undertaken at the University; highest administrative priority

> Multi-year initiative to replace the University’s 33-year-old legacy payroll system with Workday

> The new system will transform HR and payroll operations– Improve compliance

– Provide better access to data

– Increase efficiencies

– Improve service

NEW APPROACH TO

ADMINISTRATIVE TECHNOLOGIES

> First large-scale Software as a Service (SaaS) for administrative systems at the UW

– SaaS cloud model = hosted, maintained, and continuously improved by a third-party

> Back-end capacity dynamically adjusts to normal fluctuations in the business cycle

> No software distribution effort required for maintenance and improvements

> More cost effective, but customization is limited and functionality delivered over time

> Requires standardization of business processes across the University

> Go-live will start with core functionality; enhancements released every six months

> Creates a framework for continuous improvement that will enable the University to successfully integrate new technology in the future

WHERE WE ARE TODAY

Over the past 4 months, program leadership developed a clear picture of work in-flight.

> Lack of a cohesive design and key foundational strategies

> Incomplete or missing documentation of future state design

> End-to-End testing identified gaps and sections of the design that did not fit together

> Early reviews from campus on some business processes indicated some aspects of the solution would not meet their needs

> Could not complete Integrated Change Management activities across campus due to design issues

> Lacked future state operating model that would support the new integrated system and associated processes

11

PROGRAM CHALLENGES -

LESSONS LEARNED

This is a major transition for the University to move from a disjointed and diffuse transactional system to an integrated and centrally-managed operational system.

A TRANSFORMATIONAL PROJECT

Need to prepare employees for transformation by reviewing:

> Service delivery model

> Organizational reporting structures

> Customer support systems

> Change impact analysis

> Standardization of key concepts

> End-to-End, client-focused business process

UW is a tremendously complex environment with a multitude of side systems. Successfully converting these systems requires careful analysis, planning and communication.

CONVERSION OF PROGRAMS

Labor RelationsDevelopment

Training and Development Registration

UW HR/Payroll Enterprise Systems – Current State

Tax Forms

Faculty Biographic

Perms

HEPPS + OPUS

DAPP

Payroll

Compensation

UW DRS

System Administration

PRP Admin

Rule CaptureEmployee Search

Workforce Planning

Employee Relations

SDB – TA/RA eligibility

SDB – Instructor validation

FAS – Payroll Expenses and Encumbrances

FAS – Financial Indexes

Enterprise Data Warehouse /

Operational Data Store

DRS ret contribPay

SSA

Deductions

HCA

Time Reporting

UW Timesheet

OWLS

TRETI

Time and Leave

Employee Self-Service

Staffing

UW Hires

Email Access

Univ Temp Svcs

Affirmative Action

AuditDB

VEBA

Lawson Transfer Interface

SDB – FICA Eligibility

UW Medicine Lawson HR

Academic HR

Prime

HRIS

BGT – Salary Revision

Extracts to departmental

shadow systems

CIM/OSHRD

Pathology

Leave & Time Reporting

TIME – APL labor distribution

UW Med, HFS

Kronos

LEGEND

(IM supported)

Non-HR/Payroll System

External Input/Output

(Non-IM supported)

Campus System

System to be Replaced

(no enterprise systems)

(no enterprise systems)

UW Medicine SumTotal

System to be Retained

11/6/15 - WMS

Challenges around State requirements.

COMPLEXITIES

> Integrating into legacy systems at the State level – Health Care Authority (HCA)

– Department of Retirement Systems

– Mapping a bi-weekly payroll (corporate best practices) into legacy State accrual rules; would have required the UW to maintain 60-years of data and calculations outside the new system

Program designed to go-live at the same time across the University.

BIG BANG IMPLEMENTATION

> This strategy increases risk, and decreases ability to be flexible, and adapt timelines/methodology from early lessons learned

> Focusing on Human Capital Management (HCM) and the concept of position management and benefit enrollment at the beginning of this process would have:– Allowed delivery of functionality sooner

– Enabled the campus to become familiar earlier with some of the key differences and concepts of the new system

> Currently assessing this approach

Timing of go-live is important; in higher education this is a challenge.

TIMING

> Implementation windows are limited in higher education, especially with a big bang approach impacting half of the academic year

> Factors to consider include: – July/August - Biennium close

– August/September - salary increases

– September/October - start of academic year

– November - open enrollment

– Must be at a fiscal quarter for tax reporting

X X

XXX

XX

X

X

This is a large, complex university with a number of factors that must be considered.

OTHER FACTORS

> Timing of unionization/bargaining agreement

> Two major academic medical centers with 24/7 operations

> Top grant, federal-funded institution in the country, most in salaries and benefits; specific reporting requirements

> Many other competing priorities after years of delayed investment in systems

> New major “common application” process for freshman; needs to be live in the same timeframe, using some of the same resources

UW-IT'S PROJECT CAPACITY

58 44 52 17

Planning Cycle

FY 14 FY 15 FY 16 FY 17

UW-IT Project Portfolio - # of Proposed Major Projects

HR/P

Future State Vision

Finance

Data comes from

many sources

around the UW

Research

Student

Clinical /Affiliate

In the Enterprise Data Warehouse

that data is hosted, organized, and

history is saved

Space

Advancement

Report

Cube

Structured Data

0

2

4

6

Visualizations

Reports

Cubes

We then partner with subject

matter experts to produce tools

for users of all skill levels

Enterprise Integration

Platform (EIP)

The EIP integrates data

across systems, shields

consumers from system

changes

Downstream Systems

Downstream systems will

consume data from the EIP,

rather than the EDW

HR / Payroll

Workday

Enterprise Data

Warehouse (EDW)

WORKDAY AND THE ENTERPRISE

QUESTIONS