Best Practices in Upgrading PeopleSoft HCM and NA Payroll
September 25, 2013 Jim Edgar Sr. Director Global HRIS and HR Shared Services
Confidential
1
About Office Depot • Office Depot, Inc. is a global supplier of office products and services • Based in Boca Raton, FL • Founded in 1986 • Approximately, $11 billion in annual sales • Sales in 60 countries through company-owned operations, joint ventures, licensing and franchise agreements • Approximately, 40,000 employees, 10,000 outside US • Sales channels – – – – –
Retail stores Contract sales force eCommerce sites Outbound telephone sales force Inbound call centers
• Supported by a network of supply chain and delivery operations Confidential
2
PeopleSoft HCM and NA Payroll at Office Depot • Installed v.8.3 – 2002 – Highly customized
• Upgraded to v.8.9 – 2007 – User interface retrofitted to look and behave like v.8.3
• State of application in late 2011 – – – – – –
No bundles had been applied since 2007 Tax updates and critically necessary patches had been applied Hosted at in-house data center on unsupported hardware Many unresolved defects due to customization level Documentation of customizations was limited Unable to deploy enhanced delivered functionality due to customization level – HRMS deployed in 18 countries and 13 languages – Tax support ending in 2012 Confidential
3
Scope of Upgrade Project • NA payroll capabilities for 2013 and beyond • Data security support for confidential and legally protected data • Outsource application hosting to an environment with service level standards to assure appropriate levels of on-going support • Adopt delivered application as “Best Practice” to improve the efficiency and effectiveness of core HR and payroll processes • Significantly decustomize application • Align & standardize core processes across business and regions • Provide a foundation to support additional future functionality and capabilities • Implement by December 31, 2012
Confidential
4
Project Scope – Enabling the Foundation The PeopleSoft HR 9.1 upgrade addresses critical compliance issues, maintains Oracle support and provides a platform for future human capital management capabilities Technology Enablers HR Analytics Supports multi-dimensional reporting and insights
Workforce Planning
Recruiting
HR Helpdesk (Case & Knowledge Mgmt)
User Productivity Kit (UPK) Real time coaching on HR system and processes
Talent Management
Succession Planning
Compensation Planning
Core HR, Base Benefits, Payroll e-Performance (Exempt), Employee & Manager Self-Service Compensation Infrastructure Standardization & Operational Improvements PeopleSoft Application Tools Refresh – Security & Workflow In-scope for HR Upgrade Project Future Capability Confidential
5
The Journey to World-Class for Office Depot HR / Payroll IT enablement for lowest service delivery cost 6
Move towards World-Class performance levels
4
Self-Service Portals
Outsourced activities
Leveraged Delivery
Centers of Skill (COE)
Automate
HR / Payroll Upgrade Focus
Standardize Standardize 3
Simplify Simplify
Reduce manual effort and errors
Eliminate Eliminate Strategic Alignment 1
Determine services needed, and delivery/management model to support strategic objectives
Confidential
2
Reduce complexity & implement Best Practices across enterprise
6
Centers of Scale (SSC)
Specialized BU Delivery
People Process Technology Enablers
Corporate Deliver standard services through best service points
5
Project Governance Executive Oversight CHRO, CFO
Project Steering Committee HR – VP Comp and Ben Finance – VP Finance IT – CIO Compliance – CCO
NA Project Advisory Board Project Management Office Project Director Project Manager PR Leadership IT Leadership
HR/PR Systems Project Investment Governance Board
International Project Advisory Board
W
IT N Infrastructure Team/ Oracle OnDemand E
IT Application Support And Oracle Upgrade Lab
HR Process Redesign/ Configuration Teams (7)
PR Process Redesign/ Configuration Team
S
Confidential
7
Communications/ Change Management Team
Testing Coordination Team
Rapid Project Ramp Up HR Benchmark identified gaps and opportunities (2010)
• Best Practices Gap Analysis for 10 HR functions • Process Designs (Future State Level 1 and 2) • Business Requirements • High Level Business Case and Upgrade Options
PS 9.1 Business Case & Roadmap provided (Late 2011) • Assessment of current infrastructure and updated requirements • Customization Analysis by HR and Payroll Modules • Preliminary PeopleSoft Fit Gap • Evaluation of solution alternatives • Upgrade Roadmap and Detailed Scope • Business Case
Confidential
BPI Based Project Deliverables
HR Transformation provided (Early 2011)
PS 9.1 Upgrade Project will leverage these outputs to drive HR and Payroll Fit-Gap in an expedited fashion Process designs will be leveraged with process owners to lock down global process and produce process documentation Analysis of existing modifications against delivered PeopleSoft 9.1 to enable best practice process and eliminate application complexity
8
Key Outputs of Fit Gap -> De-Customize & Standardize Strict prioritization and decision making required to realize the level of application de-customization we wanted to achieve. Office Depot HR Transformation Project Summary of Data Management Best Practices Fit / Gap Row Best Practice
PeopleSoft 9.1 Enhancements – Introduction of Approval Workflow Engine Vastly improved functionality to automatically trigger workflow notifications to inform the next approver in the process of work waiting. User-friendly, configurable, easily maintained and upgraded, and consistent across all adopting HCM applications through the use of the Approval Workflow Engine. Users have the ability to authorize other users to perform managerial tasks on their behalf by delegating authority to initiate or approve managerial transactions
Comments
Applic? Domestic Yes/No Yes
01 A multi-tiered service delivery model is in place, using self-service and call centers for routine inquiries and transactions.
Fit / Gap Score
Achievability
Efficiency Impact
Effectiveness Impact
1
2
3
4
4
02 The HR service delivery model uses a single point of contact for all issues and resolutions.
Yes
2
2
2
3
4
4
03 At least eighty percent of inquiries made into the shared service center are resolved upon first contact.
Yes
2
1
2
3
4
5
04 Basic HR administrative functions are centralized under a shared service delivery model (outsourced, insourced or co-sourced).
Yes
2
1
2
2
4
4
4
2
2
4
4
05 Employment verifications are outsourced and/or automated.
Intl: Feed required to vendor if vendor exists. Not aware of vendors avail to provide this service in each country.
07 One-time data capture of all life and career event changes are automatically routed to all impacted functions / applications. 08 Employees and non-employees are responsible for updating personal data (indicative, life events, skills etc) via self-service.
Page 24
Intnl
3
Yes
Yes
Non CWR EU PC Skills sets in SSD are lacking for this model as well as IT infrastructure. Intl: is a 1 or 2 in efficiency
Yes
4 Best1Practices 3 36 Total Applicable 36 Not Applicable 0
Employee Data Management – 35 Hackett Best Practices
2
2
2
2
3
1
2
3
4 Full Fit, 2
11 Compliance, audit requirements and appropriate fiduciary responsibilities are stipulated in all third-party agreements.
Yes
4
4
12 All relevant data privacy regulations are addressed through user education, preventative controls, and compliance reporting.
Yes
4
4
13 Employee access and rights are updated whenever position or status changes. 14 HR routinely reviews vendor performance, including SLAs, pricing and employee satisfaction levels as part of contract renewals and renegotiations.
Yes
2 3
1 3
Yes
4
4 No Fit, 3
4
3
2
4
4
3
2
2 3
2 4
4 3
4 3
3Qtr Fit, 6
Highlighted Best Practices ( Sample) HREI009- Electronic signatures are used with automated workflow for distributing and approving information changes when legally permissible HREI015- At least eighty percent of inquiries made into the shared service center are resolved upon first contact HREI012- Employee and manager self-service capabilities are browser-based and accessible via an internet-enabled employee portal
8_9 to 9_1 Administer Workforce Changes © 2011The Hackett Group. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Qtr Fit, 16
HREI001 - One integrated HCM is used for all employee and non-employee information
Best Practice Review (leverage last phase
HREI018 - Key data fields are standardized to enable efficient transaction processing and consolidated global and regional reporting HRMR005 - Manager self-service approvals have a defined time-out period and escalate after time-out period has expired
Page 5 Defining and Enabling World-Class Performance © 2011 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior writt en consent is prohibited.
Work Sessions (Fit/Gap)
Project Advisory Board Final phase Sign-off Decision Tree:
Auto-notify candidates when suitable open positions System would have to be configured to notify become available. candidates of when an open position is available.
Recruiting & Staffing
Automate feed from 3rd party vendors into PS for background checks and drug testing; address current time lags, errors and issues regarding the pre-employment background activities, and employees who fail one of the required tests.
Areas for improvement include items such as hiring someone before receiving the negative background / drug test results, or time delays in the process even when background check has been completed and provided back to OD.
1.De-customize 2.Standardize Process 3.Move to Best Practice
Recruiting & Staffing
Determine regional / global standards for managing contingent workforce data in the PS system.
Not captured consistently today.
Recruiting & Staffing Recruiting & Staffing
Clearly define role of manager, recruiter and HR Generalist in the overall recruiting process. Auto-notify recruiters if a candidate meets multiple job requisitions.
Recruiting & Staffing
Improve search capabilities in eRecruit to leverage existing candidates in candidate database.
Recruiting & Staffing
Develop strategy to recruit short term talent in the To often the key business initiatives sometimes next 12 months and reduce the days to hire metric. change for the year and HR find it difficult to find talent to meet business growth. Be able to find internal candidates in HCM easily. Recruiters look for 7 days internally before going (e.g. have employees complete competency profiles externally to look for candidates. so recruiters can search on competencies) to lower recruiting costs.
5=Fully
Sign-off
Requirements Analysis
Performed
Recruiting & Staffing
Confidential
Interface
Recruiting & Staffing
1=Not Performed
H
Y
H
Y
2
X
Y
1
X
H
Y
Y
1
H
Y
Y
2
H Recruiters want the system to tell them if candidates would be qualified for multiple positions. Need to be able to search eRecruit like Monster. OD can only search candidates attached to the requisition.
H
Y
M
2
X
Y
2
X
2
X
2
X
Y
X X
Y
M
X
X
X
2
M
X
X
X
Workflow
Reason / Details
Better integration between Lexis Nexus background check clearance and the PeopleSoft hire process, preventing us from hiring people who have failed the background check.
Conversion
Integrate Lexus nexus into HCM recruiting process to ensure background checks are performed.
Current State Fit
Process/Org
Business Requirement
Recruiting & Staffing
System Fit 9.1
Customizations
Function
System Fit 8.9
Configuration
PeopleSoft 9.1
Priority (L,M,H)
Report/Information
Module Overview
HREI003- One-time data capture of all life and career event changes are automatically routed to all impacted functions / applications HREI002 - Employees and non-employees are responsible for updating personal data (indicative, life events, skills etc.) via self-service
Half Fit, 9
HR Upgrade Schedule & Approach - 2012
Confidential
10
Oracle Consulting Services used Inception
Elaboration
Construction
Transition
Production
Upgrade Planning
Planning Hosted Demo
Hosted Demo DB
Delta Fit-Gap Upgrade Lab
Technical Upgrade
Upgrade Test Moves
CEMLI Upgrade
Customization Retrofit
New Release Configuration
Upgrade Testing
Functional Testing End User Training
Oracle
Confidential
UAT Move to Prod
Office Depot
11
Functional Upgrade
Oracle Consulting Services used CEMLI Benchmarking
Hosted 9.1 Demo
ASC enhanced upgrade reporting for •PeopleTools Development Objects •SQR •Query ASC reports will accelerate your • Upgrade delta fit gap • Customization Retrofit activities
Functional Staff Aug Support
Upgrade Lab
Remote Upgrade Test Moves
Solution Center Upgrade (Lab) • Application Upgrade (9.1) • PeopleTools Upgrade (8.50) • Customization Reapplies • Batch Jumpstart Services Solution Center Upgrade (Onsite) • Installation of New Release • Upgrade Test Moves • Go Live Support
CEMLI Upgrade
Upgrade Go Live Support
Confidential
CEMLI Upgrade • CEMLI Analysis •CEMLI Retrofit •Testing Support
12
Oracle Managed Cloud Services Used Office Depot’s Choice For Running PeopleSoft HCM in the Cloud Singular Focus on the Red Stack
Certified Configurations Optimized Across Stack Advanced SIEM with predictive incident management Go-Live Center reduced postgo-live issues 54%
Confidential
Unique Connection to the Oracle Machine
Find one – fix many Early insights into patch releases Direct access to Product Dev for fastest issue resolution Immediate input on Development roadmap
13
Massive Scale
5.5Mn business transactions per day 3.2Bn database transactions/hr World’s largest Oracle VM and Linux Grid 11+ petabytes of managed storage
Lessons Learned – What worked • •
Functional ownership of project – technology areas were key enabling partners Strong focus on documentation and design review – Foundation for successful use of offshore development activities – Efficient resolution of defects identified during testing – Complete documentation of business, design, technical application requirements
•
• • • •
Strong project plan management with individual accountability at the line-item level (late start – moved from partner resource to internal) Functional participation in Systems Integration Testing provided early identification and resolution of defects Onsite liaison to facilitate offshore development activities allowed tight/integrated management of delivery schedule Dedicated testing manger, assured PMO and team focus on scheduling and defect resolution (HP Quality Center used) Cutover detailed planning and iterative testing contributed to better than anticipated delivery time (27 hours ahead of 72 hour schedule)
Confidential
14
Decustomization - How did we do?
Upgrade Case Study By leveraging Oracle CEMLI Analysis Tools and Upgrade Services, Office Depot was able to achieve: 1. 2. 3.
Confidential
15
50% reduction in CEMLI object counts Over 40% reduction in CEMLI complexity Lower customization levels provide a foundation for easier roll-out of new product functionality and lower costs for future maintenance and upgrades.
Decustomization - How did we do?
Before Upgrade
After Upgrade
Confidential
16
Lessons Learned – What could have been improved • Do not defer upgrades until support is at risk • Ensure that implementation partner firms have critical mass of resources to support project • Decision to host externally should have been made prior to start of project – enabling full understanding and planning the mechanics of a hosted environment • Project funding should be determined by staffing projections, not financial impact • Process owners must have the knowledge, skills and proper time allocation
Confidential
17
How did we do? • Project was delivered on schedule (30 days ahead of latest possible date) • Project was delivered within budget contingency • First payroll cycle processed without incident • 87 post-go-live defects identified (2 critical, 5 high) – 73 resolved within 14 days – Remaining defects closed with 60 days
• Over 50 percent of customizations were removed
Confidential
18
Epilogue •
Implemented Oracle’s Application Managed Services (AMS) production support model – – – –
•
Ramp-up took about four months Stabilization was much shorter than anticipated Live since June, currently operating within service level guarantees (Office Depot IT now primarily supports functionality enhancement projects)
Applied six bundles accumulated during implementation and stabilization in a single project – AMS support – Testing was much cleaner than anticipated
• • • •
Implemented two more countries/two more languages Implemented Self-service Talent Profiles Enhanced Talent Acquisition processes with automation of offer and acceptance process and other additional functionality Decustomized an additional 10 percent of original customizations
Confidential
19