Human Resources
Leadership Meeting
March 15, 2005
Building the Human Resources and Payroll Environment for
the Next Generation of North Carolina State Government
Welcome and Introductions
Human Resource Leadership
 HR Directors
 JAD Process Owners
 OSP HR Leaders
Project Team
 Robert Powell
 Gwen Canady
 Thom Wright
 Gary Wiggins
 Julie Batchelor
 Linda Hudson
 Shannon Byers
 Jessica Blume
 Tom Walker
 Lowell Magee
 Bradd Craver
 Dorie Kehoe
 Edward Brodsky
1
Agenda
 Welcome, Introductions, and Agenda
 SBIP Program Update
 HR Effectiveness
 High Performance Organizations
 Process Session Reviews
– NC Print Process Flows
– Process Requirements
– Process Summaries
 Change Management/Communications
 Questions
 Action Items Review
 Adjourn
2
SBIP Program Update
 HR/Payroll Project Update
– Completed HR 1 and 2 JAD Sessions
– Completed Payroll JAD Sessions
– Initiated Technical Requirements Gathering
 Data Warehouse
– Hired Project Manager
– Began Scoping and Planning activities
 Legislative Update
3
Statewide Business Infrastructure Program (SBIP)
Past Projects
Financial & HR Business
Infrastructure Study
Phase 1
Inventoried present
systems and provided
assessment of technical
and functional capabilities
Financial & HR Business
Infrastructure Study
Phase 2
Provided a blueprint for
viable implementation
options and a
recommended course of
action
Current Project
Upcoming Projects
HR/Payroll Planning
Project
HR/Payroll Bid
Preparation Project
•Identify process reengineering and structure
• Develop bidding
document for
implementation
• Develop integration
strategy and risk analysis
• Develop business
requirements
SBIP Data Warehousing
Planning Project
• Select Vendor for
HR/Payroll Implementation
Future Projects
Statewide Business
Infrastructure Project
– Budget & Financials
HR/Payroll
Implementation Project
• Implementation
• Develop needs
assessment
Statewide Business
Infrastructure Project
– Tax & Revenue
• Confirm Scope
• Develop implementation
timeline and approach
• Develop business
requirements
SBIP Data Warehousing
Implementation Project
• Implementation
4
Legend: Past Projects
Current Project
Upcoming Projects
Future Projects
HR/Payroll Project Overview
Planning
Pre-Implementation
Activities
• Identify HR and
Payroll business
and functional
requirements
• Confirm selection of
system as well as
technical service
delivery
• Develop business
process flows
• Confirm HR/ Payroll
strategy for
implementation
• Business
reengineering
opportunities
Implementation
Begins
• Perform the
implementation
objectives for a
new, fully
automated HR/
Payroll system for
the State of North
Carolina
5
HR/Payroll Project Timeline
Project Week
Plan
Vision
1
3
Month
2
4
Execute
5
Nov
Date
25
1
Project Management
8
15 22 29
6
7
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Dec
6
13 20 27
• • • • • •
Close
Jan
3
10 17 24 31
Feb
7
14 21 28
March
7
14 21 28
Apr
4
11
18
25
• • • • • • • • • • • • • • • • •
Change Management
Group I
Human Resources
Group II
Payroll
Technical
• – Project Status Report
–
–
Final Deliverables
Offsite Working/Holiday
HR – Group I
• Personnel
Administration
• Recruitment
• Applicant Tracking
• Disciplinary Action and
Complaint Management
• Incident and Accident
Tracking
• Exit Interviews
• Competency Based HR
Management
• Performance
Management
• Training Administration
HR – Group II
• Compensation
Management
• Job and Salary
Surveys
• Position Evaluation
Analysis
• Benefit
Administration
• Workforce Analytics
• Organizational
Management
• Employee Self
Service
• Leave Tracking
Payroll
• Payroll
Administration
• Payroll Processing
• Labor Cost
Distribution
• Time Collection &
Management
• Budget Support
Technical
• High level
technical
requirements
• Security
• Infrastructure
• Integration
6
HR Effectiveness - Vision
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
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
7
HR Effectiveness - Guiding Principles
 Create a seamless HR/Payroll experience for employees
 Provide an environment for employees to make informed decisions about
their careers and employment benefits
 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
8
HR Effectiveness - Transformation
HR/Payroll Today
HR/Payroll Tomorrow
 Transactional Focus
 Separate and Isolated from Mission
 Fragmented data prohibits meaningful
reporting
 Manual, paper-intensive processes
 Processes and procedures vary by
agency
 Employees require assistance to
change personal data
 Inconsistent standards and forms
across agencies
 Duplicate entry of HR data into multiple
systems
 Fragmented data across agencies
makes statewide reporting difficult
 Strategic Focus
 Key Part of Organizational Mission
 Consistent information enables
accurate enterprise reporting
 Automated, technology-enabled
processes
 Employees can manage selected
personal data
 Standardization of forms and similar
processes across agencies
 Single HR/Payroll system to reduce
data re-entry
 Consolidated HR/payroll database
across all agencies for better reporting
Business Process Reengineering
Technology Implementation
9
Current OSP/HR Directors Initiatives
 Mediation Program
 Equal Employment Opportunity
 Competency Modeling
 E-Learning
 Career Banding
 HR/Payroll Systems Replacement Project
10
High Performance
Organizations
Are you feeling the stress?
I'm not sure exactly how it works, but this is amazingly accurate. The photo on
the next slide has 2 almost identical dolphins in it. It was used in a case study
on stress level at St. Mary's Hospital.
 Look at both dolphins jumping out of the water.
 The dolphins are identical. A closely monitored, scientific study of a group
revealed that in spite of the fact that the dolphins are identical, a person
under stress would find differences in the two dolphins.
 If there are many differences found between both dolphins, it means that
the person is experiencing a great amount of stress.
 Look at the photograph, and if you find more than one or two differences
you may want to take a vacation.
12
Can You See the Differences?
13
Moving the Game Up
 What Is a High Performance Organization?
 Why Are Higher Performance Levels Required?
 What Are High Performance Practices?
 How Does HR Impact Development of a High Performance Organization?
 How Can HR Measure Contribution to a Performance Organization?
So, HR is really important!
14
The Challenge – To Create a High Performance Organization
Embrace Government that is:
 Efficient, Effective, Trustworthy, and Responsible to citizens and their needs
 Prepared with a workforce to meet the demands of a global economy
 Aligned – Strategy, Leadership, and People to Organizational
Infrastructure, Processes, and Technology
“Now as one economic era has ended and another has begun, the time for indecision
and timidity has passed. We are already on the path of progress. Our full attention must
be focused on the transition of our economy consistent with the educational demands of
this global era.”
- Governor Easley, 2005 Inaugural Address
15
Government and Corporate America Must Move Up Organizational
Performance
 Meet budgetary demands to create more value with less
 Fight the competition and improve constituent value
 Develop workforce plans to meet State strategic objectives
 Develop and retain the best talent
 Provide HR services that support mission critical activities at the State level
as well as at the agency level
 Meet expectations of candidates and future employees
 Create infrastructure to support efficient HR service delivery
16
Link NC Strategic Objectives to HR Activities
Flexible Compensation
Personnel Cost
Efficiency
Perspective
Statewide
Strategy
HR
Strategies
and
Initiatives
Operational HR Cost
(HR processes)
Organizational Efficiency
Effectiveness in People
Development
Effectivenes
s
Perspective
Human Capital Flexibility
Workforce Planning
State Competitiveness
17
HR Value Creation Can Rise to the Top
Strategic Value
Performance Measures
State
Value
e.g. Reduce
turnover to <20%
for critical roles
HR Processes
Supporting Other
Business Processes
Consolidation of
HR Process Performance
Performing Single HR Process
e.g. HR benefit
transaction costs
reduced by 25%
HR
Performance
18
HR Impact on Development of High Performance Organization
 Performance Management Processes and Policies
 Organizational Change Management
 Strategic Workforce Planning – Talent Management
 Risk Management
 Workforce Training and Development
"Develops a workforce prepared to meet the demands of a global
economy by expanding life-long learning opportunities"
“The top in innovation, creativity, knowledge, talent, and skills“
- Mike Easley, NC Governor
19
Measuring HR Effectiveness
 Measures must be strategically relevant and aligned with statewide
objectives and specific agency goals
 Measures must be limited but focus on:
– Key drivers of performance and their outcomes
– Provide Cause\Effect relationships among measures
 Example Measures
– Percent of trained employees with increased KSAs as reported by
management
– Percent of new hires who are exceeding expectations after one year
– At least a 25% pay differential between good and excellent performers
– Total cost of vacant positions
– Voluntary turnover rate of high performing employees
– Percent of grievances settled through mediation
20
Proposed Conceptual Framework for HR Measures
Example – Strategic Performance Measurement Categories
Framework Levels
Budgetary
Perspective
Constituent
Relations
Agency
Perspectives
Operations
People
Organizational
Effectiveness
Organizational-Wide
HR Measures
HR Functional Measures
HR Process Measures
•
Manage Employee Recruitment &
New Hire Integration and Manage
Employee Separation Process
•
Develop & Train Workforce
•
Administer Pay & Benefits and
Control Employee Information
•
Manage Employee Relations
•
HR Planning & Analysis and
Strategy Development
•
Manage Performance
Management
Context -Specific Agency
Objectives
21
HR Project Perspective
 Significant opportunity for business process redesign now
 Significant opportunity to leverage technology to support process
improvements long term
22
HR Process Reviews
HR Process JAD Sessions
Process Owners
Group 2
Plan and Manage HR Programs and
Plans
Gerry Fisher
(Office of State Personnel)
Design and Maintain Organizational
Structure
Joe Stroup
(Dept of Environment and Natural
Resources)
Manage Compensation and
Classification
Duane Hinkle
(Office of State Personnel)
Maintain & Administer Benefits
Pani Tademeti
(Office of State Personnel)
23
HR020 – Plan and Manage HR Programs and Plans
IT-040
Develop and
Deploy IT
Products and
Services
HR-010
Plan
Organizational
Design
Define Human
Resource
Strategy
HR-090
Administer
Benefits
Develop and
Implement
Training
Programs
MO-040
Develop
Strategic,
Operational,
and Financial
Plans
Develop and
Implement Reward
and Recognition
Programs
HR-100
Manage Payroll
HR-120
Monitor
Employee
Health and
Safety
HR-130
Manage Labor
and Employee
Relations
MO-020
Assess the
Internal
Environment
MO-030
Develop
Visions, Goals,
and
Performance
Measures
MO-010
Assess the
External
Environment
HR-160
Manage and
Assess EEO
Develop HR
Strategic Plan
Objectives
Develop and
Implement Other
HR Programs
Develop and
Implement AA
and EEO Plans
Develop
Performance
Appraisal
Process
Perform
Position/
Headcount
Planning
HR-030
Design and
Maintain
Organizational
Structure
Develop and
Implement
Salary Plans
HR-060
Develop and
Train
Workforce
HR-050
Manage
Recruiting,
Hiring and
Integration
Develop and
Maintain Policies
and Procedures
Implement
Change Process
HR-080
Maintain
Benefits and
Enrollment
HR-040
Career and
Succession
Planning
HR-070
Manage
Compensation
and
Classification
HR-090
Administer
Benefits
HR-100
Manage Payroll
HR-130
Manage Labor
and Employee
Relations
MO-070
Monitor,
Measure, and
Report
Performance
HR-120
Monitor
Employee
Health and
Safety
HR-140
Manage
Employee
Separation
Design and
Implement
Benefit Plans
24
JAD Session Highlights
Plan and Manage HR Programs and Plans
Process Overview
 Once HR programs and plans have been
established, their effective management
includes communication, eligibility
determination, plan enrollment, plan
changes, and coordination/information
exchange with any third parties.
Improvement Opportunities
 Increased statewide consolidated planning for HR programs to
allow better sharing of resources and exchange of best practices
across agencies
Potential Barriers
 Budgetary restrictions may restrict future system improvements
 Employees do not understand the benefits of this project and fear
how it will affect their jobs
 Users are afraid they will not know how to perform basic
transactions and will not know who to contact for help
 People are used to moving paper and fear an electronic
environment
 Some of the workforce is not familiar with computers
 Lack of commitment from top management
Benefits
 Consolidated data will be available to measure a program’s success
 Ability to report on statewide data without having to call agencies to collect fragmented data
 Greater ability to plan at the state level due to statewide consolidated data
 Ability to be proactive, rather than reactive to requests or problems
 Ability to spend more time analyzing data than collecting it
 Ability to spend more time on strategic HR functions rather than HR administration
 Ability to make more informed decisions due to real time data access
25
HR030 – Design and Maintain Organizational Structure
HR-070
Manage
Compensation
and
Classification
HR-010
Define Human
Resource
Strategy
Establish and
Maintain the
Structure of the
Organization
HR-050
Manage
Recruiting,
Hiring and
Integration
Establish and
Manage Positions in
the Organizational
Structure
HR-020
Plan and
Manage HR
Programs and
Plans
Manage Special
Positions
Are There Any
Open
Positions?
Manage
Temporary and
Permanent
Positions
No
Identify Funding
Source
Establish
Reporting
Relationship
Participate in
Budget Cycle
Coordinate Link to
the Budget Office
No
Position Eligible
for Posting?
Yes
MO-010
Assess the
External
Environment
HR-040
Career and
Succession
Planning
BU-070
Revise Budgets
Yes
MO-020
Assess the
Internal
Environment
BU-020
Establish
Position Budget
Post Job
Vacancies
MO-020
Assess the
Internal
Environment
M-020
Identify
Maintenance
Structure
26
JAD Session Highlights
Design and Maintain Organizational Structure
Process Overview
The objectives of this process are
to determine organizational
design, define competencies and
reporting/working relationships for
each position, maintain job
descriptions and responsibilities
for each position in the
organization, and create an
organizational development plan
to achieve desired staffing and
skill levels.
Improvement Opportunities
 Standardize the use of electronically generated organizational charts
across all parts of the state
 Simplify and consolidate job descriptions
 Simplify approval processes with fewer people touching data
Potential Barriers
 Legislature does not understand the HR information they are provided
 Computer equipment is out of date
 Fear of change, particularly changes in responsibility and authority
 Insufficient training could create additional errors
 Difficulty in moving beyond “we’ve always done it this way”
 Lines of approval vary across agency
 Agencies do not want to pay for support or changes
 Uniqueness of the Judicial branch hinders standardization
Benefits
 Ability for agencies to access real time data to respond to
legislature or budgeting requests
 Ability to create more professional looking job postings that
appeal to a wider variety of applicants
 HR and Payroll can better support decision making and
been seen as strategic partners
 New technology and processes will bring the state closer to
the way the private sector operates
 Ability to eliminate shadow systems and the cost of
maintaining them
 More accurate data can generate cost savings. For
example, position planning to reduce overtime
 Organizational charts are more accurate because
they can be produced electronically rather than
maintained manually
27
HR070 – Manage Compensation and Classification
HR-020
Plan and
Manage HR
Programs and
Plans
HR-040
Career and
Succession
Planning
HR-050
Manage
Recruiting,
Hiring and
Integration
Approve Employee
Promotion/
Transfer/Status
Change
Approve
Employee Pay
Actions
Document
Employee Data
Change
Adjust Employee
Payroll
Maintain
Classifications
Conduct Job and
Salary Analysis
Maintain Pay
Policy, Plan and
Structure
Prepare for and
Administer
Annual
Increases
Plan and Budget
Salary Changes
Approve Salary
Plan and
Budgets
Document
Employment
Salary Data
Changes
Notify
Employees of
Salary Changes
HR-050
Manage
Recruiting,
Hiring and
Integration
HR-080
Maintain
Benefits and
Enrollment
HR-010
Define Human
Resource
Strategy
HR-080
Maintain
Benefits and
Enrollment
28
JAD Session Highlights
Manage Compensation and Classification
Process Overview
 The objectives of this process are to
manage employee promotions, transfers,
and status changes; and to develop and
implement employee compensation
programs linked to
performance/geographical guidelines
that conform to budgeting and planning
constraints.
Improvement Opportunities
 Eliminate duplicate systems that do not interface with each other
 Simplify range revision and balancing processes
 Implement a variable pay structure
 Eliminate Commission approval for classification decisions –
potential to remove statute
 Integrate outside survey data with HR system data
Potential Barriers
 Insufficient funding for the project
 Constraints on salaries caused by legislation and limited funding
 Legislature does not understand cost and risk of not implementing
new system
 Aversion to change
 Fear of how newly available data will be used or managed
Benefits




Reduced clerical burden
Ability to make more informed decisions with increased information available
Ability to track different types of pay plans
Employees will be treated more fairly with standardized processes
29
HR080 – Maintain Benefits and Enrollment
HR-020
Plan and
Manage HR
Programs and
Plans
HR-050
Manage
Recruiting,
Hiring and
Integration
Request
Qualifying
Status Change
Documentation
Determine
Benefit Eligibility
and Costs
Review Benefit
Plan Offering
and Rates
Request
Evidence of
Insurability
Documentation
Yes
Evidence of
Insurability
Required?
No
Document
Benefit Election
Changes and
Additions
HR-070
Manage
Compensation
and
Classification
HR-040
Career and
Succession
Planning
Review and
Approve
Qualifying
Status Change
Provide
Confirmation of
New Election
Provide
Employee
Benefit Election
Data to Provider
Receive Invoice
from Provider
and Verify
Accuracy
Make Payment to
the Provider
HR-110
Pension
Administration
HR-090
Administer
Benefits
HR-070
Manage
Compensation
and
Classification
30
HR090 – Administer Benefits
HR-020
Plan and
Manage HR
Programs and
Plans
HR-080
Maintain
Benefits and
Enrollment
HR-020
Plan and
Manage HR
Programs and
Plans
HR-080
Maintain
Benefits and
Enrollment
H-050
Maintain
Member/
Retiree
Account
Information
Yes
Receive Insurance
Disability Request
and Review
Eligibility
Forward Claims
Forms to
Insurance
Provider
Employee on
LWOP?
No
Monitor Provider
Claim and Review
and Distribute to
Employee
HR-010
Define Human
Resource
Strategy
HR-110
Pension
Administration
HR-110
Pension
Administration
31
JAD Session Highlights
Maintain Benefits Enrollment and Administer Benefits
Process Overview
 This process includes
maintaining the rules for
benefit plan eligibility and
enrollment. Voluntary,
employee-paid, and employerpaid benefits are included. In
addition to traditional benefits,
flexible spending, tax-exempt,
and tax-deferred plans are
also included.
 The administration of benefits
is focused on the processing
of disability claims.
Improvement Opportunities
 Start employee benefits upon hire rather than after a waiting period
 Change benefit plan year to calendar rather than fiscal year to make it easier for employees
to manage their benefit deductibles
 Track employees plan enrollment statewide and base decision making on consolidated data
 Simplify transfers between agencies and remove unnecessary paperwork
 Automate the calculation of the disability payment
 Automate the transfer of funds from the retirement system back to the agency rather than
payment by a check
Potential Barriers
 Different benefits options with special rules that have been grandfathered in add complexity to
the development and administration of plans
 Some employees have limited computer skills, or less solid reading skills
 Limited employee access to computers
 Language barrier for employees that must use the system but do not speak English
 Interface with Retirement System may be difficult to implement
Benefits
 Ability to provide employees with a total
compensation statement that includes benefits
 Ability to provide a seamless experience for
employees transferring between State agencies
 Ability to process transactions more efficiently with
less administrative work and fewer errors
 Employees will have greater faith in the accuracy of
their benefits changes
 Employees become more empowered and more
responsible
 Consistency of information across agencies allows for
better decision making
 Less time spent on administrative tasks
 Ability to provide better customer service
 Improved ability to meet deadlines
 More correct and timely processing of disability claims
32
Organizational Themes
 SME feedback
–
–
–
–
Enthusiastic about the possibilities of a new solution
Supportive of common processes and standardization
Sessions have provided a good networking forum
Appreciative of the opportunity to provide input
 Business Benefits
–
–
–
–
Reduced clerical burden
Increased efficiencies
Better decision making with better consolidated data
Reduction of various side systems
 Potential Barriers to Success
–
–
–
–
–
Computer availability and technical infrastructure
Fear that data will be misinterpreted – data security
Acceptance of employee/manager self-service
Common change barriers
Training (system and process) and PC skills
33
Change Management Update
 Scheduled North Carolina IT Projects Lessons Learned Focus Group
–
–
–
–
–
Identify lessons learned from previous projects
Discus communication methods
Document methods to ease transition to new processes and systems
High level assessment to state government’s culture and change readiness
Participants include
•
•
•
•
Bob Bellamy (Dept. of Public Instruction)
Sharon Hayes (Information Technology Services)
Sondra Williams (Community College System)
Tom Runkle (Information Technology Services)
 Wrap-Up Development of Change Management
Strategy
– The Importance of Change Management
– Change Management Strategy and Framework
– Next Steps for North Carolina HR/Payroll
End User
Training
Leadership
Alignment
Project Team
Organizational
Project
Effectiveness Management Transition
Capability
Transfer
Communications
34
HR Leadership Action Items
 April 15, 2005 – Next HR Leaders Meeting
 Review JADs HR Group 2 Summary
– Submit comments to Gary Wiggins by 3/22/2005 at (gary.wiggins@ncmail.net)
35