1. Getting More from your HR System HR Florida State Conference
& Expo September 1, 2010 Tom Sonde, CPA
2. Why Isnt the System Delivering on its Promises?
IsthisOccurringinyourOrganization? Simple tasks take too long to
complete Too much time is spend validating data Employees
constantly complain Too much paper is being used There is a
significant amount of manual data keying and rekeying
3. Why Isnt the System Delivering on its Promises?
IsthisOccurringinyourOrganization? Information is not easily
accessible Workarounds, renegade processes and spreadsheets exist
External databases / data warehouses supplement the system The
promised Return on Investment never materialized Does senior
management even realize how many of the inefficiencies exist?
4. There is a Gap Between what the Software Developers Intended
and what you End Up With TheSystemCantdoThat The system cant do
that may mean: The software does not offer that functionality - or
- It can, but it would require some effort to make the changes and
I have more important things to do - or - I dont have a clue if its
possible
5. Accounting & Finance Systems UnlocktheHiddenValue Unlock
the hidden value hidden Without creating the upheaval of an
implementation Without bringing in an army of consultants Without
spending millions of dollars Achieve a positive Return on
Investment
6. Why isnt your System Working the way its Supposed to?
SystemNotDelivering Many system issues are not the result of the
software.
7. Why isnt your System Working the way its Supposed to?
SystemNotDelivering Many system issues are not the result of the
software. They were caused by a flawed implementation.
8. Implementing new technology does not guarantee efficiency
Teacher After data is Based on the type Custodial - Plant completes
Principal or Dept. School clerk entered, Non site-based budget of
purchase, Operations requisition form or Head approves enters data
into requisition will be purchases goes to an requisition is fills
out pre-printed and signs system from Teacher funneled into the
approver initially routed to one of Exceptional After data is Based
on the type Custodial - Plant list for items requisition
requisition completes Principal or Dept. School clerk following the
following:(1) Children Division entered, Non site-based budget of
purchase, Operations needed requisition form or Head approves
enters data into requisition will be purchases goes to an
requisition is fills out pre-printed and signs system from
Site-based budget purchases Applied funneled into the approver
initially routed to one of Exceptional list for items requisition
requisition go directly to Finance Technology following the
following:(1) Children Division needed Career Purchases from a
contract Development Site-based budget purchases Applied Type A
company or pre-printed list go directly to Finance Technology
Finance Dept. (2) Career Library Services Purchases from a contract
Purchases not from a contract Type A Development company or
pre-printed list Type B company or pre-printed list Finance Dept.
(2) regardless of price Chief Academic Library Services Purchasing
Dept/ Officer-Textbooks Purchases not from a contract Senior buyers
Type B company or pre-printed list Senior buyers review requisition
regardless of price receives Chief Academic proof, checks for
Teaching & purchases in Purchasing Dept/ Officer-Textbooks
errors (4) Type 2 Learning Assmt. Senior buyers "requisition proof"
Senior buyers review requisition receives proof, checks for
Teaching & purchases in errors (4) Type 2 Learning Assmt.
Interscholastic "requisition proof" Buyer requests Requisition
proof Other purchases quotes/bids from is generated from are routed
to a Buyer receives New Technology vendors (fax, mail, information
buyer - based on buyer's copy Supplemental Interscholastic or
phone) Request entered into Buyer requests Requisition proof
assignment Funds-Budget & Other purchases for Quotation form
system quotes/bids from is generated from Management (3) are routed
to a Buyer receives If errors Type 1 vendors (fax, mail,
information buyer - based on buyer's copy Supplemental If no errors
found are found or phone) Request entered into assignment
Funds-Budget & on requisition proof for Quotation form system
Management (3) If errors Type 1 If no errors found are found
Purchase order is Senior buyers will on requisition proof generated
from the correct errors and requisition proof another proof is the
next day Brown/yellow copy generated Purchase order is Senior
buyers will Finance Dept. generated from the correct errors and
sent to school Vendor receives matches invoice to requisition proof
another proof is (brown copy is PO and ships receiver's report the
next day generated receivers report) order to school Brown/yellow
copy Purchases orders Finance Dept. Buyer signs and sent to school
Vendor receives printed at Senior buyers matches invoice to Blue
copy sent to dates PO; sends (brown copy is PO and ships Southside
location separate POs (5 receiver's report Controllers Office to
vendor by mail receivers report) order to school and delivered to
copies) Purchases orders or fax Vendor sends Buyer signs and Admin
Bldg. System generates printed at Senior buyers invoice to Finance
Blue copy sent to dates PO; sends payment when Southside location
separate POs (5 White PO copy Dept. Controllers Office to vendor by
mail both invoice and and delivered to copies) routed back to or
fax Vendor sends receiver's report Admin Bldg. System generates
original buyer invoice to Finance are entered into White PO copy
payment when system Dept. both invoice and Orange copy kept School
confirms routed back to original buyer receiver's report on file at
purchase by are entered into purchasing office sending receivers
system report to Finance Orange copy kept School confirms Dept. (5)
on file at purchase by purchasing office sending receivers report
to Finance Dept. (5) Inefficient New Inefficient OldProcess
Technology NewProcess
9. SuccessfullImplementationsAddressbothProcessand
BestPracticesinadditiontotheTechnology BestPractices Technology
Process
TheFoundationofaSuccessfulSystemIncludesProcessandBestPractices
10. Whos to Blame? Why Doesnt your System Perform as Promised?
1 Project Implementation Team 2 Process Owners 3 Training 4
Consultants 5 Other
11. Why Doesnt your System Perform as Promised? Team not
adequately represented by process owners Project Project team didnt
have a true understanding of the underlying processes Team Team
assumed built-in Best Practices were all that was needed Project
lead was an external consultant who focused on the technology
Process owner requirements were based on the old system Process
Process owners had limited experience with large IT projects Owners
The end-to-end process was not adequately addressed during the
system design Inadequate training was provided Training Training
was technology focused and excluded process issues Training manuals
and related documentation were inadequate
12. Why Doesnt your System Perform as Promised? Consultants
understood technology, not your business Consultants System
knowledge resided with the consultants and was lost when they left
Consultants viewed the IT department rather then the end-user as
their client The project was sold on a fixed fee Scope creep
occurred Other Not enough resources were available Common The wrong
resources were involved Issues Resources were diverted to
unexpected issues There was an aggressive go-live date Issues were
addressed by postponing them - It will be addressed during the next
phase or upgrade
13. Improvements are can be Achieved Across your Organization
The methodology can be applied to any area or function Recruiting
Talent Benefits Mgmt. Succession Payroll Comp. Planning
14. HowCanyouImproveyourSystemandRelatedProcesses?
Tobeeffective asystemmust address: Process Technology BestPractices
HR S System BE ES ST OC TECHNOLOGY PR PR AC TIC ES
15. Best Practices and System Functionality Knowledge How do
you obtain knowledge of Best Practices and System Functionality?
BestPractices SystemFunctionality Professional organizations User
manuals Conferences Vendors web site Other companies Books Books
Consultants Consultants
16. Understanding System Functionality SystemFunctionality
WhatYouNeedtoKnow You dont need to become a technology expert You
dont need to understand the nuts & bolts You simply need to
understand what it is capable of You need to be able to speak
intelligently with a systems expert Is what your are asking for
possible? How long will it take to complete? What will it cost?
Will it impact other users?
17. Conduct Process Reviews
ObtainanUnderstandingofEndtoEndProcesses Interview process owners
(end-to-end) Develop process maps Understand inputs and outputs
Document requirements Use your knowledge of system functionality
and best practices to develop improvement recommendations
18. Improvements are Easier to Address then an Implementation
TheTimeRequiredForImprovementVaries Improvements can be
accomplished within a day or can take months Quick hits System
adjustments / Process realignment Significant changes Usually the
system work can be performed by in-house staff or using contract
labor Implement quick wins to gain credibility and traction.
19. Accounting System Improvement Methodology Understand System
Functionality
20. Accounting System Improvement Methodology Understand System
Functionality Understand Best Practices
21. Accounting System Improvement Methodology Understand
Conduct System Process Functionality Reviews Understand Best
Practices
22. Accounting System Improvement Methodology Understand
Conduct System Process Functionality Reviews Understand Best
Identify Practices Opportunities
23. Accounting System Improvement Methodology Understand
Conduct Develop System Process Future Functionality Reviews State
Understand Best Identify Practices Opportunities
24. Accounting System Improvement Methodology Understand
Conduct Develop System Process Future Functionality Reviews State
Understand Quantify/ Best Identify Prioritize Practices
Opportunities Opportunities
25. Accounting System Improvement Methodology Understand
Conduct Develop Obtain System Process Future Agreement/
Functionality Reviews State Funding Understand Quantify/ Best
Identify Prioritize Practices Opportunities Opportunities
26. Process Reviews Uncover Opportunities Look for
opportunities to: Make an individual process more efficient Better
utilize the system Apply Best Practices Process Technology Best
Practices
27. Improvement Opportunities - What to Look For Obtain a
through understanding of the process before developing training
Training Training should incorporate both process and technology
Training should be developed with the process owners skill sets in
mind Anyone that requires access to data should have the
appropriate access Access to Ideally access should be provided
electronically rather then on paper Data Access to data should be
timely Reports should be developed with the user in mind Review how
process owners are using their reports Reporting Identify user
needs that are not being met by current reports Reports for routine
activities should include all required data on a single report
28. Improvement Opportunities - What to Look For Employees
should utilize system self-service functionality whenever possible
Self Employees should take advantage of vendor provided
self-service capabilities Service Question why every piece of paper
in a process is necessary Paper Wherever possible replace paper
with an electronic solution Fully integrate all systems Integration
Require large volume vendors to provide electronic feeds
29. Improvement Opportunities - What to Look For User Manuals,
Develop user manuals, policies and procedures that cover the entire
process Policies & rather then a How to use the software
solution Procedures Ideally all data should be fed to the system
electronically Data Manually input data should never be keyed more
then once Input Eliminate manual forms by requiring staff to
complete electronic forms via the web or directly into the system
using self-service functionality
30. I Challenge You to Try This!! YoullbeAmazedatWhatYouFind!
Set aside five to ten hours over the course of a week or two Select
a simple process area Sit with the process owners and review the
process in detail Review the system documentation to understand the
systems functionality Identify best practices
31. Thank you for your attention! Any Questions?
32. Tom Sonde Biography Tom Sonde, CPA Tom is a principal with
SilverRoad Solutions, a management consulting firm specializing in
business process improvement. He began performing process
improvement work while at The Dun & Bradstreet Corporation. He
subsequently worked at KPMG Consulting and was VP Global Business
Transformation at Misys where he implemented SAP. Tom has extensive
experience in designing and implementing process improvement
initiatives. He has written several articles on this topic
including: Finding the Hidden Values in HR Systems, Human Resources
Executive. For additional information regarding improving your HR
system please visit SilverRoadSolutions.com Tom Sonde, Principal
SilverRoad Solutions 1362 Tamarack Road Manasquan, NJ 08736 (973)
722-9304 [email protected] silverroadsolutions.com
Copyright 2010 SilverRoad Solutions.