Human Resource Management Human Resource Management System (HRMS) Business Case System (HRMS) Business Case

AnalysisAnalysis

Presented byPresented by

Government Finance Officers AssociationGovernment Finance Officers Association

James Harris and Barry McMeekinJames Harris and Barry McMeekin

AgendaAgenda

GFOA BackgroundGFOA Background City and County of San Francisco ProjectCity and County of San Francisco Project What is an Enterprise System?What is an Enterprise System? CCSF VisioningCCSF Visioning Questions and AnswersQuestions and Answers

Contact InformationContact Information

Anne Kinney – Project DirectorAnne Kinney – Project Director

312/977-9700312/977-9700

AKinney@gfoa.orgAKinney@gfoa.org Barry McMeekin - Project ManagerBarry McMeekin - Project Manager

312/977-9700312/977-9700

BMcmeekin@gfoa.orgBMcmeekin@gfoa.org James Harris – Project Business AnalystJames Harris – Project Business Analyst

312/977-9700312/977-9700

jamesharris@gfoa.org jamesharris@gfoa.org

GFOA BackgroundGFOA Background““The purpose of the Government The purpose of the Government Finance Officers Association is to Finance Officers Association is to

enhance and promote the professional enhance and promote the professional management of governments for the management of governments for the

public benefit. The GFOA public benefit. The GFOA accomplishes this mission by accomplishes this mission by

identifying and developing financial identifying and developing financial policies and practices and promoting policies and practices and promoting them through education, training and them through education, training and

leadership.”leadership.”

GFOA is the leading association promoting the GFOA is the leading association promoting the professional management of financial professional management of financial

resources in state and local governments in the resources in state and local governments in the United States and Canada.United States and Canada.

GFOA FACTSGFOA FACTS Established in 1906 to promote sound financial Established in 1906 to promote sound financial

management by encouraging the use of systematic management by encouraging the use of systematic budgeting and accounting methodsbudgeting and accounting methods

Over 55 professionals in Chicago & DCOver 55 professionals in Chicago & DC Major source of recommended practices in public finance Major source of recommended practices in public finance

and budgetingand budgeting Celebrating our Celebrating our CentennialCentennial this year!!! this year!!! Diverse programs activities—annual conference, Diverse programs activities—annual conference,

publications, training, and consultingpublications, training, and consulting

National ProgramsNational Programs

Awards For RecognitionAwards For Recognition– Certificate of Achievement of Excellence in Financial Certificate of Achievement of Excellence in Financial

Reporting (CAFR Program)Reporting (CAFR Program)– Distinguished Budget Presentation Award (Budget Distinguished Budget Presentation Award (Budget

Awards Program)Awards Program) National Training Areas (National Training Areas (ExamplesExamples))

AccountingAccounting Budgeting Best PracticesBudgeting Best PracticesFinancial ReportingFinancial Reporting Capital Finance & Debt Capital Finance & Debt

Admin. Admin. Pensions & BenefitsPensions & Benefits ERP StrategiesERP StrategiesMunicipal Bond SalesMunicipal Bond Sales Evaluating Internal ControlsEvaluating Internal Controls

Research & PublicationsResearch & Publications

Government Finance Review- GFOA’s Government Finance Review- GFOA’s Monthly PeriodicalMonthly Periodical– Focuses on the current issues that matter most Focuses on the current issues that matter most

in public financein public finance» Financial Best PracticesFinancial Best Practices

» HRMS. Payroll, Time and LaborHRMS. Payroll, Time and Labor

» Performance MeasurementPerformance Measurement

» Enterprise Resource PlanningEnterprise Resource Planning

» Etc. Etc.

Technology PublicationsTechnology Publications

Research and Consulting CenterResearch and Consulting Center

Management Consulting (performance Management Consulting (performance measurement, financial planning, outsourcing, measurement, financial planning, outsourcing, budget process reengineering)budget process reengineering)

Technology Consulting (financial systems, ERP Technology Consulting (financial systems, ERP systems, utility billing, HRMS/Payroll, time and systems, utility billing, HRMS/Payroll, time and attendance, Enterprise Asset Management, CRM, attendance, Enterprise Asset Management, CRM, and IT outsourcing)and IT outsourcing)

18 Professionals focused on consulting—but are 18 Professionals focused on consulting—but are also authors of leading books and Publicationsalso authors of leading books and Publications

Over 125 technology projects completed for a Over 125 technology projects completed for a broad range of governmentsbroad range of governments

A Growing List of Clients

Des Moines WaterWorks, IAMarin Municipal Water Authority, CAClark County, NVUnion Sanitary District, CACook County, ILAdministrative Office of the Courts, CALos Angeles County, CACalifornia Bar AssociationMilwaukee Metropolitan Sewer District, WIMarin County, CASEPTA (PA)

San Luis Obispo County, CASonoma County, CAWake County, NCCity of Portland, ORCity of Burnaby, BCBoston Water and Sewer Commission, MAGarland Independent School District, TXCollin County, TXLake County, ILWayne County, NYRockland County, NY

The GFOA AdvantageThe GFOA Advantage

Independent AnalysisIndependent Analysis ExperienceExperience

– We have assisted over 125 governmental We have assisted over 125 governmental entities in system procurement.entities in system procurement.

– GFOA has negotiated approximately $700 GFOA has negotiated approximately $700 million in software licenses and implementation million in software licenses and implementation services.services.

Negotiation Leverage Through Our Negotiation Leverage Through Our Membership NetworkMembership Network

The City and County of San The City and County of San Francisco ProjectFrancisco Project

GFOA Analysis MethodologyGFOA Analysis Methodology

Detailed Business RequirementsDevelopment

Identify & Critical Business

Needs

Problem Definition

Evaluation ofCriteria and Analysis ofSolutions

Identify Critical BusinessIdentify Critical Business Issues and Key Executive Issues and Key Executive Vision Elements and Business Requirements Vision Elements and Business Requirements

DevelopmentDevelopment

Key ActivitiesKey Activities– Strategic Planning/ExecutiveVisioningStrategic Planning/ExecutiveVisioning– Review of CCSF Documentation of Work to Review of CCSF Documentation of Work to

DateDate– Identification of Critical Business DriversIdentification of Critical Business Drivers– Inventory of Current SystemsInventory of Current Systems– Business Requirements DevelopmentBusiness Requirements Development– Software Evaluation Plan with Criteria for Software Evaluation Plan with Criteria for

Software SelectionSoftware Selection– Software Fit-Gap AnalysisSoftware Fit-Gap Analysis

Site Visit I Focus GroupsSite Visit I Focus Groups

What are major deficiencies of current system?What are major deficiencies of current system? Are problems due to obsolete technology, Are problems due to obsolete technology,

ineffective org structure, poor policies and ineffective org structure, poor policies and procedures, or something else?procedures, or something else?

Is staff properly trained to fully utilize Is staff properly trained to fully utilize features?features?

Are there unmet needs that could be addressed Are there unmet needs that could be addressed by new technology?by new technology?

What are high-level business needs of the What are high-level business needs of the organization?organization?

A Good Team…A Good Team…

GFOA’s experience

GFOA’s HRMS market knowledge

CCSF’s expertise

CCSF’s policies and

procedures

DeliverablesDeliverables

Project PlanProject Plan Synopsis of Critical HRMS Business NeedsSynopsis of Critical HRMS Business Needs Draft Set of HRMS Business RequirementsDraft Set of HRMS Business Requirements Validated Set of HRMS Business Validated Set of HRMS Business

RequirementsRequirements Software Evaluation Plan with Criteria for Software Evaluation Plan with Criteria for

Selection of SoftwareSelection of Software Business Requirements AnalysisBusiness Requirements Analysis

Project ScopeProject Scope

Human ResourcesHuman Resources– Position ControlPosition Control– Recruitment and Recruitment and

Applicant TrackingApplicant Tracking– Personnel Personnel

AdministrationAdministration– TrainingTraining– Performance Performance

MeasurementMeasurement– Benefits Benefits

AdministrationAdministration

PayrollPayroll– Time and AttendanceTime and Attendance

– Payroll ProcessingPayroll Processing

– Statutory ReportingStatutory Reporting

E-GovernmentE-Government– Self ServiceSelf Service

– E-RecruitmentE-Recruitment

– Web ReportingWeb Reporting

Project TimelineProject Timeline

Key DatesKey Dates– Project Kick-Off / First Site Visit: Project Kick-Off / First Site Visit:

August 8 – 10, 2006August 8 – 10, 2006– Second Site Visit:Second Site Visit:– Synopsis of Critical Business Needs DeliveredSynopsis of Critical Business Needs Delivered– Validation Site Visit:Validation Site Visit:– Draft Needs Assessment:Draft Needs Assessment:– Needs Assessment Finalized:Needs Assessment Finalized:

What are Enterprise Systems?What are Enterprise Systems?

Enterprise HRMS –Enterprise HRMS – A Backbone of A Backbone of Digital GovernmentDigital Government

An integrated business model, enabled by technology, that improves operational efficiency and enterprise-wide decision support through information integration

and process improvement.

Enterprise Systems and ProcessesEnterprise Systems and Processes Enterprise systems have an important Enterprise systems have an important

impact on back-office business processesimpact on back-office business processes– AutomationAutomation– Re-engineering/Re-designRe-engineering/Re-design– Provide access to better information for Provide access to better information for

managing processes managing processes – IntegrationIntegration

Enterprise SystemsEnterprise Systems and Peopleand People

Enterprise Systems have important implications Enterprise Systems have important implications for peoplefor people– The CCSF’s best staff must participate heavily in The CCSF’s best staff must participate heavily in

implementationimplementation

– HRMS distributes information and access widely, so HRMS distributes information and access widely, so staff throughout the organization must be trained to use staff throughout the organization must be trained to use the system.the system.

– HRMS automates many routine tasks, so many CCSF HRMS automates many routine tasks, so many CCSF staff may need to work in re-defined roles (e.g., from staff may need to work in re-defined roles (e.g., from data entry to exception analysis).data entry to exception analysis).

HRMS and TechnologyHRMS and Technology

HRMS most tangible aspect is the software. HRMS most tangible aspect is the software. Fundamental points are:Fundamental points are:– Enterprise packages that include HRMS are bought from Enterprise packages that include HRMS are bought from

a wide-ranging number of vendors.a wide-ranging number of vendors.– Substantial consulting assistance may be required to Substantial consulting assistance may be required to

implement the software. implement the software. – The relationship between the CCSF and the vendor is on-The relationship between the CCSF and the vendor is on-

goinggoing– The software and service solution procured must enable The software and service solution procured must enable

the CCSF to meet both its technology and business the CCSF to meet both its technology and business process goals. process goals.

Goals of an Enterprise HRMS Goals of an Enterprise HRMS SystemSystem

•Breakdown department information silos and promote shared processes

•Eliminate redundant departmental systems

•Foster one version of the truth across the organization

•Take advantage of commercially available software and proven “best-practices”

Benefits of Implementing HRMSBenefits of Implementing HRMS

Improves the CCSF’s Improves the CCSF’s processes by using “best processes by using “best business practices” business practices”

Eliminates duplicate Eliminates duplicate data entry and data entry and processingprocessing

Automates manual tasksAutomates manual tasks

Improved efficiency and effectiveness

Decision Processing TrendsDecision Processing Trends

Decision Support

Reporting

Control

Transaction Processing

Decision Support

Reporting

Control

Transaction Processing

Traditional Focus

Role Transformation

Process Reengineering

New New FocusFocus

15%

25%

60%

50%

20%

30%

Comparison ofComparison of HRMS HRMS to to Legacy SystemsLegacy Systems

Legacy SystemsLegacy Systems– Less able to keep up with Less able to keep up with

advancing technologyadvancing technology

– Information fragmentation Information fragmentation due to number of due to number of subsystemssubsystems

– Difficulty in accessing dataDifficulty in accessing data

– IT infrastructure limitationsIT infrastructure limitations

– Difficult to use as backbone Difficult to use as backbone for e-Government strategyfor e-Government strategy

– Ability to support on an on-Ability to support on an on-going basis is questionablegoing basis is questionable

HRMS SystemsHRMS Systems– Modular/Process integrationModular/Process integration

– Best Business PracticesBest Business Practices

– Workflow CapabilitiesWorkflow Capabilities

– Drilldown to Support DataDrilldown to Support Data

– Audit Trail CapabilitiesAudit Trail Capabilities

– More Advanced and More Advanced and Accessible ReportingAccessible Reporting

– Web Enablement and Self-Web Enablement and Self-ServiceService

What is the “Payoff” for CCSF?What is the “Payoff” for CCSF?

Legacy SystemsLegacy Systems– Delayed reportingDelayed reporting– Lack of confidence in Lack of confidence in

datadata– Legions of “Shadow Legions of “Shadow

Systems” to maintainSystems” to maintain– Limited Ability to Limited Ability to

Improve Business and Improve Business and Service ActivitiesService Activities

– System Limitations System Limitations Encourage InefficiencyEncourage Inefficiency

HRMS SystemsHRMS Systems– Immediate access to real-Immediate access to real-

time management time management informationinformation

– Data IntegrityData Integrity

– Stronger analysis Stronger analysis capabilities to make better capabilities to make better decisionsdecisions

– Enabled to improve service Enabled to improve service activitiesactivities

– No further need for shadow No further need for shadow systemssystems

Development of Business DriversDevelopment of Business DriversVisioning SessionVisioning Session

1) Organizational 1) Organizational Initiatives/ChallengesInitiatives/Challenges

What are the major organizational What are the major organizational initiatives/challenges facing the CCSF?initiatives/challenges facing the CCSF?

How are these related to the Enterprise How are these related to the Enterprise HRMS System initiative?HRMS System initiative?

2) Current System Strengths2) Current System Strengths

--What are the main strengths of the current system?What are the main strengths of the current system?--Is the system ‘stable’ from a transaction processing standpoint?Is the system ‘stable’ from a transaction processing standpoint?

-Is information and transaction history easily accessible?-Is information and transaction history easily accessible?-Are there executive information needs that are being met that you would want to see -Are there executive information needs that are being met that you would want to see continued in a new system?continued in a new system?

--Do the current systems meet the management Do the current systems meet the management information needs of the following?information needs of the following?

– Board of SupervisorsBoard of Supervisors– ITIT– Directors/ManagementDirectors/Management– Program/Operations StaffProgram/Operations Staff– External Parties (e.g., media, customers, vendors)External Parties (e.g., media, customers, vendors)

3) Current System Weaknesses3) Current System Weaknesses

What are the main weaknesses of the current system?

4) Key Questions4) Key Questions

What management information do you What management information do you need to run your organization?need to run your organization? What management tasks are you given that What management tasks are you given that are difficult to perform today due to your are difficult to perform today due to your current system?current system? Is CCSF ready for the requisite process Is CCSF ready for the requisite process changes of possible alternatives?changes of possible alternatives? Will CCSF leadership sponsor changes if Will CCSF leadership sponsor changes if deemed necessary?deemed necessary?

5) System Scope and Function5) System Scope and Function

What should the new system be able to do?What should the new system be able to do? Who should the new system serve?Who should the new system serve? How long should the new system last How long should the new system last (useful life)?(useful life)? What existing functions must the system be What existing functions must the system be tightly linked/interfaced to?tightly linked/interfaced to?

6) Project Vision Statement6) Project Vision Statement

Sample Vision Statement (to generate Sample Vision Statement (to generate discussion)discussion)By 2008, the CCSF will be sustaining an By 2008, the CCSF will be sustaining an integrated Human Resource Management integrated Human Resource Management System that supports staff in the efficient System that supports staff in the efficient delivery of services.delivery of services.

7) Project Goals7) Project Goals

How do we measure “efficient How do we measure “efficient delivery of services?”delivery of services?”

8) High Level Business Process 8) High Level Business Process ManagementManagement

What are the major business What are the major business processes of each area in the processes of each area in the project scope?project scope?

Next StepsNext Steps

Written Summary of SessionWritten Summary of Session Follow-Up Session during Future Site VisitFollow-Up Session during Future Site Visit

Questions or CommentsQuestions or Comments