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 tsonde@silverroadsolutions.com silverroadsolutions.com Copyright 2010 SilverRoad Solutions.