Human Resources
Leadership Meeting
February 11, 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
 JADS Process Owners
 OSP HR Leaders
Project Team
 Linda Hudson
 Shannon MacFarlane
 Lowell Magee
 Bradd Craver
 Dorie Kehoe
 Edward Brodsky
1
Agenda
Welcome, Introductions and Agenda
SBIP Program Background
HR/Payroll Project Overview
Vision Overview
Process Session Reviews
 NC Print Process Flows
 Process Requirements
 Process Summaries
Change Management/Communications
Questions
Action Items Review
Adjourn
2
Program History
• Session Law 2001-491 directed the Office of the State Controller (OSC) to
determine the feasibility of developing and implementing a new business
infrastructure for the State. The systems included in the State Business
Infrastructure Study (SBIS) supported the following business functions:
financial management, cash management, payroll, human resources, budget
management, procurement, treasury, retirement, and revenue accounting.
• The study concluded that continued use of the current business systems may
adversely impact the fiscal integrity of state government, as well as the
efficiency and effectiveness of its operations. Therefore, the State decided
upon a replacement strategy that carefully weighs the risks of potential system
failures with the current State budget condition and State funding priorities.
The strategy involves an extended implementation approach with the first
focus on replacing the Human Resources and Payroll Systems. Ratified
Senate Bill 991 appropriates funds to implement this strategy.
• Both summary and detail report information can be accessed on the SBIP
Website which is located on the Office of State Controller web site:
http://www.ncosc.net/SBIP/SBIP_Index.html
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
• Identify HR and
Payroll business
and functional
requirements
• Develop business
process flows
RFP
Development
• Execute a formal
bidding process.
• Confirm HR/ Payroll
strategy for
implementation
Implementation
Begins
• Perform the
implementation
objectives for a
new, fully
automated HR/
Payroll system for
the State of North
Carolina
5
High Level 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
What are the current risks and why should we act now?
 Risk of payroll system failure resulting in delayed payments to over 80,000
state employees
 Retiring HR/payroll system support staff
– Inability to maintain current systems due to retirement of system support staff
– Limited resources with the knowledge required to maintain existing technology
 Future labor market competition and an aging state workforce
– Current recruitment and retention capabilities need to be improved to address forecasted
labor and skills shortages associated with retiring baby-boomers
– Next generation of employees will demand online visibility to HR and payroll details
 Implementation of new system will be
a multi-year effort
– The risks associated with the current
systems will increase each year until the
outdated systems are replaced
 North Carolina is lagging behind state
and private sector systems and
process trends
State of North Carolina Employee Statistics
7
HR/Payroll Project Vision and Goal
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
8
HR/Payroll Project 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
9
Why Transform NC’s HR/Payroll?
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
10
HR Leadership Pain Points
What are the HR system and process issues that your
agency is facing?
11
JAD Session Objectives
Industry
Best Practices
Process
Designs
• Project Vision
• Scope
• Industry Best Practices
JAD
Session
• Review Process/Subprocesses
• Identify Activities
• Identify Opportunities
State of NC
Process
Designs
• HR/Payroll Business
Requirements
• Future Processes
• Business
Impact/Benefits
• Potential Barriers
• Performance
Measurements
12
What is IndustryPrint™?
IndustryPrint™ is a tool used to represent a logical and sequential
collection of best business practices in a graphic format. The three main
symbols used in the graphic displays are:
Manage Human
Resources (HR)
Manage
Compensation
(HR-070)
Maintain
Classifications
(HR-070-060)
Process: A group of activities in performed by an
organization. Manage Human Resources is one of these
processes
Subprocess: A subprocess is a segment of a core process
that focuses on a single business area. For example: Train
Workforce
Business Activity: A business activity is a breakdown
of a subprocess that produces a measurable result. For
example: Deliver Training
13
Why Do We Use IndustryPrint™ ?
Activities are arranged in activity flow diagrams
Components of the activity
flow diagram include:
• Activities
• Decision points
• Subprocess connectors
14
HR-070 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
15
HR Process Reviews
HR Process JADS
Process Owners
Group 1
Career and Succession Planning
Pam Frazier
(Information Technology Services)
Manage Recruiting, Hiring, & Integration
Helen Dickens
(Department of Transportation)
Develop and Train Workforce
Ann Cobb
(Office of State Personnel)
Monitor Employee Health & Safety
Mike Chapman
(Office of State Personnel)
Manage Labor and Employee Relations
Drake Maynard
(Office of State Personnel)
Manage Employee Separation
Betty Smith
(Dept of Health and Human Services)
Group 2
Plan and Manage HR Programs and Plans
Gary 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 Benefits Enrollment
Pani Tademeti
(Office of State Personnel)
Administer Benefits
Pani Tademeti
(Office of State Personnel)
16
Career and Succession Planning
HR-040
HR-060
Develop and Train
Workforce
HR-020
Plan and Manage
HR Programs and
Plans
Determine Employee
Training Needs
Determine Key Skills
and Attributes
Associated with Each
Position
HR-030
Design and
Maintain
Organizational
Structure
Assess Employee
Skills and Attributes
Develop a Succession
Plan
HR-070
Manage
Compensation
and Classification
Assess Employee
Development
Establish Career Plan
Determine Employee
Development Needs
Develop Competency
Model
HR-050
Manage
Recruiting, Hiring
and Integration
17
JAD Session Highlights
Career and Succession Planning
Process Overview


Career planning is centered on developing an
employee's competencies, and helping to
prepare an employee for the next steps in his/her
career.
Succession Planning involves looking at future
vacancies in the organization and identifying
steps the organization can take to prepare. It can
include looking to fill a specific future vacancy or
identifying activities to mitigate a general loss of
multiple key skill leadership positions.
Improvement Opportunities




Conduct organized career and succession planning across the state
A standardized and exhaustive list of skills that span across all agencies
A consolidated procedure and process throughout the State for career and
succession planning as it currently seems to be fragmented and informal
A statewide competency modeling effort rather than independent agency efforts
Potential Barriers



Moving to competency based hierarchy will be difficult
Allowing employees to enter their own skills may cause employees to ‘overinflate’ skills when they are directly related to compensation level
High potential employees cannot be flagged and high performers cannot be
groomed for a position due to legal limitations
Benefits







Ability to identify individuals within the State who may be well suited to fill upcoming leadership gaps
Allows employee to enter skills that are not related to a specific job, which will empower both employees and managers in locating needed
proficiencies
Gives employees ownership of their careers and gives managers tools they did not have previously
Positions the State as a competitive employer, particularly with the coming labor shortage
Allows HR to function as it is truly intended
Improves decisions on how to most effectively use a limited training budget
Enables accountability on the use of training dollars
18
Develop and Train Workforce
HR-060
P-010
Develop
Procurement
Strategy
HR-020
Plan and Manage
HR Programs and
Plans
Develop
Organizational
Training Plan
Develop Individual
Employee Training
Plan
Manage Cancellations
and Changes
Plan Courses
Develop Training
Materials
Offer Courses
Receive Employee
Enrollment Request
and Approvals
Enroll Employee in
Training Course
HR-040
Career and
Succession
Planning
No
HR-050
Manage
Recruiting, Hiring
and Integration
IT-070
Support and Train
Users
D-010
Develop
Licensing,
Permitting, and
Accreditation
Policies,
Procedures, and
Strategies
Course Available
and Minimum
Enrollment
Achieved?
Perform Employee
Skill Assessment
Yes
Generate Course
Confirmation
Information
Deliver Course
Materials
Deliver Training
Complete Course/
Instructor Evaluation
Perform Follow-up
Activities
Maintain Employee
Training Record
IT-070
Support and Train
Users
19
JAD Session Highlights
Develop and Train Workforce
Process Overview
 The objective of this process is to design
and deliver training, education, and
development programs to effectively
improve skill levels to meet current or
future business plans.
 This includes:
–
–
assessing current skills inventory to
determine training and development
requirements
creating development plans to achieve or
maintain desired skills and corresponding
competency levels
Improvement Opportunities




Employees directly view their training history and enroll in new courses via ESS
All internal training tracked in one consolidated system
Mandatory courses can be standardized
Pooling of trainers to teach standardized courses
Potential Barriers



Access to a computer or high speed networks
Supervisor’s fear of employees having too much independence
Elected officials and political appointees may fear the loss of control due to
ESS/MSS
Benefits





Improved decision making
Comprehensive training record
Real-time data
Employees have direct access to manage their own careers
Training is linked with new competency-driven pieces




Good networking tool among agencies
Better informed supervisors
Opportunities for group purchase of training materials
Training records automatically updated upon completion of training
20
Monitor Employee health and Safety
HR-120
HR-020
Plan and Manage
HR Programs and
Plans
Establish and
Distribute Health and
Safety Guidelines
Conduct Safety
Inspections
Document Incident
Receive Incident Calls/
Complaints
Is Employee
Filing Claim?
Investigate Incident
Yes
Manage Employee
Claim
File Claim with
Provider
No
Obtain Medical Care
and Record Diagnosis
Monitor Employee
Health Restrictions
and Rehabilitation
Plans
HR-010
Define Human
Resource
Strategy
Identify Causes and
Corrective Actions
HR-020
Plan and Manage
HR Programs and
Plans
21
JAD Session Highlights
Monitor Employee Safety and Health
Process Overview
 Implement plans and practices that
ensure the organization consistently
meets government reporting
requirements related to health and safety
 Track work related incidents and their
outcomes
 Develop incentives that promote a safe
work environment
Improvement Opportunities


Completing and approving forms via workflow
Application of SIC and more discrete codes at the job level for improved
reporting
 Tracking the types of incidents across jobs as well as within an agency
Potential Barriers






All employees do not have access to computers
Agreement on common data elements may be difficult
Industrial commission makes frequent changes in requirements
Need to determine who is going to pay for this going forward
Security of system if all data is in one place
DOT does not use the same Third Party Administrator that other agencies use
Benefits





Reduced clerical burden
Focus on solving problems, rather than gathering information
Better able to measure the improvements with better
information
Increased efficiency
Cost savings through reduction in Worker’s Compensation
overpayments





More open communications between employees and supervisors
Cost savings from electronic transactions
Save physical space with reduction in paper
Managers more involved with safety through ESS
Ability to flag salary continuation that the supervisor can turn on and
off
22
Manage Labor and Employee Relations
HR-130
Manage Union to NonUnion Employee
Communications
HR-020
Plan and Manage
HR Programs and
Plans
Manage Relationship
with Unions
Receive Training on
Labor Law
Negotiate Collective
Bargaining Agreement
Monitor Adherence to
Agreement
Requirement
Manage
Communication with
Employees
Monitor/Resolve
Grievances
Perform Performance
Appraisals
Conduct Employee
Surveys
HR-010
Define Human
Resource
Strategy
HR-020
Plan and Manage
HR Programs and
Plans
23
JAD Session Highlights
Manage Employee Relations
Process Overview


This process includes managing communications
with employees as well as monitoring and
resolving grievances, disciplinary actions, and
discrimination complaints.
It also includes activities around performance
appraisals
Improvement Opportunities




Consolidated data in one system
Automatic notifications for follow up activities
Make grievance policies more proactive
Consolidated data should make it easier to identify trends
Potential Barriers





Access to computers and other infrastructure issues
Agencies currently have different processes
People are resistant to change and will need extensive training
Terminology differences
Fear that data will be used to hold up progress, rather than for its intended
purpose
 Managers may not be ready for the accountability
 Employees may not trust their managers
Benefits






The ability to spend more time on people activities and less time on administrative activities
Better data should make it easier to identify trends
Better business intelligence will be available
Data is more readily available for decision making
The ability to accomplish things at the lowest level
Connect previously disjointed systems
24
Manage Employee Separation
HR-140
HR-020
Plan and Manage
HR Programs and
Plans
Receive Separation
Notice
Determine Type of
Separation
Voluntary
Separation?
Yes
Collect Organization
Property
Perform Exit Interview
Distribute Separation
Benefit Information
Calculate Unused
Leave and Final Pay
No
Provide Counseling for
Separated Employee
No
Separation
Activities
Complete?
Yes
Perform Final Pay
HR-110
Pension
Administration
25
JAD Session Highlights
Manage Employee Separation
Process Overview


The objective of this process is to manage
voluntary and involuntary employee terminations,
including performing exiting activities and
recording separation data.
Activities may include collection of employer
property, packaging of severance or other
separation packages, and discontinuance of
benefits
Improvement Opportunities




Sending out an acknowledgement of separation with frequently asked questions
and benefits contact information
When an employee is moving between agencies, handle the process as a
transfer rather than a separation
Have a checklist for hiring and separation
Workflow notifications to appropriate parties (security, fixed assets, etc.) when
an employee is separated
Potential Barriers




Access to computers and computer literacy
Different technology infrastructure at agencies
Challenge to reach a consolidated decision on some issues
Employees currently see the agency as the employer, rather than the State of
North Carolina as the employer
Benefits




Ability to transfer between agencies and to take employment
“history” with employee
Ability to report turnover on a state level with real time
information, leading to better workforce planning
Ability for employees who have a leave of absence or are rehired
to keep historical information
Better tracking of property should increase recovery from
separating employees




A system-generated separation letter should reduce the
number of follow-up questions and grievances and provide a
better information trail
More transparent and less onerous for employees
Automatic workflow notifications when someone leaves so no
step is forgotten
Separating employees are left with a positive experience
26
Manage Recruiting, Hiring, and Integration
HR-050
HR-010
Define Human
Resource
Strategy
HR-020
Plan and Manage
HR Programs and
Plans
HR-040
Career and
Succession
Planning
Source Candidates
Internally
Analyze and Create
Job/Position
Qualify and Select
Candidates
HR-110
Pension
Administration
Document Offer
Process and Lessons
Learned
Source Candidates
Externally
No
H-010
Enroll Members
and Set-up
Accounts
Is Offer
Accepted?
M-020
Identify
Maintenance
Structure
Yes
Verify Employment
Perform Psychological
Profile/Drug Testing
Extend Offer and
Manage Offer Process
Receive Candidate
Decision (Acceptance/
Rejection)
Selection Process
Appealed?
Track Employee Data
and Tax Withholding
Preferences
No
Perform Employee
Orientation
HR-060
Develop and Train
Workforce
HR-070
Manage
Compensation
and Classification
Yes
Address Inquiries and
Complaints
Assign Property
HR-080
Maintain Benefits
and Enrollment
27
JAD Session Highlights
Manage Recruiting, Hiring and Integration
Process Overview

Develop and implement processes, systems and
controls to ensure appropriate selection, hiring
and placement of staff
 Manage current and future position openings
through effective processes in identifying bestqualified candidates
 Manage the assimilation of new employees into
the organization
Improvement Opportunities




Create a single site to submit applications to any State agency
Allow online application
Provide automated screening of applicants
Streamline workflow enabled position approval
Potential Barriers





New terminology (jobs vs. positions vs. classifications)
Access to computers
Subject Matter Experts felt it would “be difficult to make changes in the
bureaucratic environment”
Changes in laws, policies, and processes may affect the re-design of system
Hesitation to leave current system to new consolidated system
Benefits







Less confusion for applicant
More meaningful and useful reports
Data entry process would be easier
More data consistency
More flexibility in making changes and corrections
Self-service resulting in less paper work
Improve image as an effective state government





More responsive and greater interoperability among agencies
State seen as more attractive and competitive employer
Meeting expectations of younger generation
Increased sharing of information between agencies
Ability to attach documents to records (resume)
28
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
29
What is Change Management?
Change Management, as it pertains to projects like this, is primarily about:
 Building and sustaining a leadership coalition to guide successful project completion
 Reducing long-term costs of the project
 Fully understanding and softening the impact of changes to affected employees
 Ensuring that behavioral changes brought about by the project are “made to stick”
 Bringing about higher organizational performance as a result of the project
 Reducing risks related to:
– Disruptions in productivity and customer service
– Missing project time and budget targets
– Misalignment of expectations
Metaphorically, Change Management is…
 The grease that makes the project (and the resulting new business processes) run
more smoothly, and
 The glue that gives the project a sustainable, valuable impact
30
The Change Curve – change is difficult, but it can be managed
Organizational
Performance
Commitment
“This was the right thing to do.”
Adaptation
Baseline
“This is hard, but we
can do it.”
Uncertainty
“What does this
mean for me?”
Withdrawal
“I’ll do what is
necessary to survive.”
Resistance
“I can’t work with all
of this uncertainty
and turmoil.”
Bail Out?
“This is not something I
want to be a part of.”
Key to Success: Reduce the duration of the trough, and accelerate the
upslope via a well-planned and executed change management program.
Time
31
Keys to success in Change Management programs
The keys to building and implementing a successful change management program
include, among others:
 Develop and adhere to a set of guiding principles to drive your change strategy
 Build and foster an extensive change network of leaders and employees with clear
roles in championing the case for change
 Understand your stakeholders, their interests, their needs, and their motivations…and
communicate with and involve them accordingly
 Communicate, communicate, communicate – develop a well-thought-out
communication plan and execute on it
 Develop and sell a compelling business case that works at multiple levels –
management, employees, and other stakeholders
 Empower all project team members with a full understanding of change management
and how they, as members of the “change team”, must promote the change strategy
 Surface dissatisfaction and dissension and address it early
32
Change Management Framework: The 8 Steps of Change
Implementing
and sustaining
change
Engaging and enabling
the whole organization
Creating a
climate for change
1
2
3
4
5
6
7
8
Increase
Urgency
Build the
Guiding Team
Get the
Right Vision
Communicate
for Buy-in
Empower
Action
Create Shortterm Wins
Don’t Let
Up
Make it
Stick
5
Kotter, John P. and Cohen, Dan S. The Heart of Change. Boston: Harvard Business School Press
33
HR Leadership Action Items
 March 15, 2005 – Next HR Leaders Meeting
 Review JADs HR Group 1 Summary
– Submit comments to Gary Wiggins by 2/25/2005 at (gary.wiggins@ncmail.net)
34