Value Realization Analysis (Draft) for Broward College Prepared by: Larry Fitch, Sr. Value Manager Education and Government Value Management Team February 6th, 2015

WORKDAY CONFIDENTIAL 2 Recap – How We Got to Where We Are Today June 2014 Value Realization Introduction Dec 2014 Onsite Interviews Data Received Draft Review Feb 2015 Final Deliverable Nov 2014 Feb 2015

WORKDAY CONFIDENTIAL 3  Senior Staff –Tom Olliff - Senior. Vice President, Administration –John Dunnuck - Vice President, Operations –Jayson Iroff – Vice President, Finance - Chief Financial Officer –Patti Barney Vice President, Information Technology - Chief Information Officer  Human Resources –Denese Edsall - Executive Director, HR & Equity –Kim Brodsky - District Director, Compensation & Classification –Maricar Collado - Lead Compensation Analyst –Michelle Whittaker - Senior HRIS Analyst  Payroll –Julie Bovio - Interim Director, Payroll –Monica Salazar – Payroll Analyst  Student Services –Annaleah Morrow - AVP Enrollment Management and Student Success  Finance –Larry Wummer – Controller –Rabia Azhar - Assistant Controller –Mike Smykowski - AVP Budget –Barbara Pearson - Budget Manager –Nereida Matthews - Accounts Payable Manager –Zaida Roilano – Director, Strategic Sourcing –Judy Schmelzer - AVP Business Services & Resource Management –Nadine Kingston - Grants Accountant  IT Strategy and System Support –Shaun Achmad - Workday Business Relationship Manager –Liz Perrone - Chief Process Owner (HCM, Payroll and Financials) –April Townsend - Chief Process Owner (Student & Academic) Broward College Contributors

WORKDAY CONFIDENTIAL 4 Executive Summary Broward realized early successes with its Workday project by: Achieving insight into adjunct faculty spend Eliminating errors in the open enrollment process Gaining better visibility into operational tasks Current annual benefit is estimated at $3.9M, including: Est. $1.8M savings in adjunct budget overruns Est. $900K savings in improved purchasing accuracy Est. $680K savings in errors related to Open Enrollment Going forward we recommend focusing on key areas: Leveraging Big Data to improve operations and planning Hardening of Financials implementation Benchmarking of applicable student metrics

WORKDAY CONFIDENTIAL 5 Our Understanding of Broward’s Strategic Objectives  Empower 68,000 students across four campuses and six centers  Reduce significant paper and student service queues  Simplify confusing inefficient workflows  Empower 68,000 students across four campuses and six centers  Reduce significant paper and student service queues  Simplify confusing inefficient workflows  Standardize & Scale Finance, Payroll and HR Processes  Improve control over operational and capital expenses  Focus on supporting student, faculty and staff objectives Modernize Business Systems to Streamline Operations  Offer many new services and features to further improve student, faculty and staff experience.  Transform annual data port of 4-6 weeks to real time use of analytics  Offer many new services and features to further improve student, faculty and staff experience.  Transform annual data port of 4-6 weeks to real time use of analytics Enable Data-Driven Operations to Enable Student Success Objectives People & Financial Implications

WORKDAY CONFIDENTIAL 6 Success Stories in Deploying Workday Unified systems for Finance, Payroll, and HR Systems Separated Finance, Payroll & HR Systems Real-time data, driving visibility across Finance, Payroll & HR Cumbersome Reporting Strategic shift: “Business Process Experts” Manual and clerical work Visibility into Workflow Responsibility Lack of Accountability Before Workday With Workday

WORKDAY CONFIDENTIAL 7 We Looked at Three Key Benefit Categories to Understand Value Realized Differentiation Transactions Decisions Efficiency Effectiveness New IT Model & TCO HCM, Payroll and Finance Efficiency Business Effectiveness

WORKDAY CONFIDENTIAL 8 Redirected HR Software Cost Savings $115K Redirected Financial Software Cost Savings $200K Elimination of Benefit Overpayments $680K Business Effectiveness $3.5M Back-Office Efficiencies $140K Reduced TCO $315K Estimated Annual Benefits: $3.9M HR Cost Avoidance $140K Projected Reductions Adjunct Budget Overruns $1.8M Reduced Payroll Overpayments $84K Source: Workday Value Realization A C D E G F Improved Payables Compliance $918K B Broward College’s Workday Project Has Delivered an Estimated $3.9M Annual Benefit

WORKDAY CONFIDENTIAL 9 MetricImpact Total 5-Year Benefits$14.9M Total 5-Year Solution Costs$5.2M ROI189% 10%$6.8M Payback Period16 Months Key Project Finance Metrics FY14FY15EFY16EFY17EFY18ETotal Est. Total Project Costs*$3.5M$400K $5.2M Est. Total Project Benefits**$2.7M$2.9M$3M$3.1M$3.2M$14.9M Est. Net Cash Flow($770K)$2.5M$2.6M$2.7M$2.8M$9.7M Estimated Cash Flow Summary Estimated benefits are based only on what’s currently implemented. Future value from additional areas of functionality (for example, Recruiting) is not included. To account for value realization and adoption, we have conservatively assumed that the benefits will ramp slowly over the initial years of the project: FY14 (25%), FY15 (50%), FY16+ (100%). Payback begins at the beginning of the project (not go-live). Source: Workday Value Realization Analysis – January Over 5 Years, the Project is Conservatively Estimated to Drive $14.9M in Benefits on Costs of $5.1M

WORKDAY CONFIDENTIAL 10 Key Opportunities Going Forward Dashboards & Faculty Reporting Finance Blocking and Tackling Further Implementation of Student Leverage Workday Recruiting Leverage Talent Management

WORKDAY CONFIDENTIAL 11 Strong Benefits Good Benchmark Performance Strategic Shift Significant Value Realized

WORKDAY CONFIDENTIAL 12 Success MetricsArea of Focus Estimated Economic Value Better Accountability over the Adjunct Faculty Hiring Process Reduce Budget Overruns at Year End Eliminate “Rogue Hiring” practices Provide Transparency for Faculty Mgmt. $1.8M / Year Estimated savings by utilizing Big Data Annual Broward College Adjunct Faculty Budget Source: Interviews with Broward College Source: Workday Value Realization A Projected Reduction in Adjunct Faculty Costs

WORKDAY CONFIDENTIAL 13 Success MetricsArea of Focus Estimated Economic Value Improved PO Routing and Approvals Improved Accuracy Increased Visibility of Spend Adoption of Employee Self Service $918K / Year Source: Broward College Financial Statements Based on customer experience and industry benchmarks Conservatively estimating that 5% of purchases contain errors B Improved Payables Compliance

WORKDAY CONFIDENTIAL 14 Success MetricsArea of Focus Estimated Economic Value Improved Open Enrollment Process Elimination of Errors in the Process Adoption of Employee Self Service $680K / Year Based on interviews with Broward College Conservatively estimating that a 2% error rate existed prior to automation Source: Broward College Financial Statements C Elimination of Open Enrollment Errors

WORKDAY CONFIDENTIAL 15 31% Reduction in Payroll Overpayments Value Achieved  Reduced payroll overpayments by $82K  Elimination of retroactive manual calculations  Department self-service has reduced the amount of time Payroll spends keying data  Eliminated the FLSA risks associated with manual calculations Business Effectiveness Source: Workday Customer Data % $261K $179K D

WORKDAY CONFIDENTIAL 16 HR Efficiency Value Achieved  Exposure of a myriad of inefficiencies that they have been able to get their hands around  Ability to streamline processes  Broward College’s HR Ratio tops industry and company size benchmarks  Cost avoidance of not having to hire additional HR staff estimated at $140,000 Note: Number of FTEs used includes only HR employees and managers, excluding HRIS Source: “HR Staff and Structure Results: U.S. Human Capital Effectiveness Report”, 2010/2011, Saratoga / PWC E 30% Increased HR Leverage, Worth $140K per Year

WORKDAY CONFIDENTIAL 17 HR FTE Avoidance from More Efficient HR Scaling Success MetricsArea of Focus Estimated Economic Value Improved Efficiency of HR Personnel Remain Steady State Re-Focus HR on Core Responsibilities Adoption of Employee Self Service $150K / Year Source: Broward College VR Interviews Conservative estimate of the increase in FTE’s served per HR FTE based on customer experience and industry benchmarks E

WORKDAY CONFIDENTIAL 18 Success MetricsArea of Focus Estimated Economic Value Re-allocation of Current HCM and Finance Infrastructure Costs Switching Over Functionality to Workday Redirection of maintenance costs $315K / Year Source: Broward College Value Realization F&G HCM and Finance Infrastructure Cost Re-allocations

WORKDAY CONFIDENTIAL 19 Strategic Priority AdvancedBasicIntermediate High Low Medium Transformational Maturity Assessment Core Fin Accounting: GL Procurement Financial Reporting Expenses Financials Controls Broward College Advanced on Most Capability Areas within Finance Pre-WDCurrent State: FY14 Future State: FY15-16

WORKDAY CONFIDENTIAL 20 Strategic Priority AdvancedBasicIntermediate High Low Medium Transformational Maturity Assessment Adjunct Faculty Balancing HR Staff Effectiveness Open Enrollment Employee Onboarding Pre-WDCurrent State: FY14 Future State: FY15-16 Broward College Advanced on Most Capability Areas within HCM

WORKDAY CONFIDENTIAL 21  Broward College is far ahead of comparable benchmarks for expense automation costs, enabling accounting to focus more time on analysis and provide richer data (spend/rev categories)  With Workday it is easier to report on budget and expenses, and communicate with the business  Automated expense reporting reduced the number of Finance personnel involved in the approval process by 50% Fin Tech Source: PayStream Advisors T&E Mgmt Benchmark Report 54% Reduction in the Cost to Process Expense Reports

WORKDAY CONFIDENTIAL 22 Source: Workday Customer Data Fin Tech Value Achieved  Expense reporting is 100% automated  Mobile Usage for expenses is continuing to grow  Pre-WD required 2 FTE’s to process the 1K monthly expense reports. Today these people have been repurposed  Reporting on budget and expenses in real time % of Expense Reports completed via Self Service Pre-WDWith WD 100% 0% 100% Automated Expense Reporting

WORKDAY CONFIDENTIAL 23 Source: Workday Customer Data Fin Tech Value Achieved  Moved from a multi step “touch process” to a 2 step process today  Easier to track purchase spend history approved by the board  Simplified tracking of project spend Pre-WDWith WD 100% 0% % of Purchase Orders Processed On Line 100% Automated PO Process

WORKDAY CONFIDENTIAL 24  Broward College is way ahead of comparable benchmarks for active GL accounts, enabling accounting to focus more time on analysis and provide richer data (spend/rev categories)  With Workday it is easier to map from Financial Statements back to GL accounts Fin Tech Source: “Finance Effectiveness Benchmarking Study 2013, PWC; Benchmarking the Finance Function: 2014, Robert Half Finance Automation

WORKDAY CONFIDENTIAL 25  We measure resources supporting Workday separately for each major function (HR & Finance)  Finance-IT Support is mostly driven by number of users in Finance, integration complexity and the level in which Finance adopts new functionality released by Workday Source: American Productivity Quality Center Fin Tech Finance - Accounts Payable

WORKDAY CONFIDENTIAL 26 Source: Workday Customer Data Fin Tech Value Achieved  Reduced the total number of cost centers from 12 to 2  Focus is moving to optimization and leveraging analytics Pre-WorkdayWorkday 83% % Reduction in Cost Centers

WORKDAY CONFIDENTIAL 27 Source: Workday Customer Data Value Achieved  No Extract, Transform, Load time delay  Single security model  No coding required for build and deploy  Actionable information  Dashboard and mobile capabilities Business Effectiveness Pre-WorkdayWorkday 83% % Improvement in Data Warehouse Implementation

WORKDAY CONFIDENTIAL % Open Enrollment Self Service Value Achieved  Previous process involved two weeks of reconciliation for two FTEs  New process involves two FTE for one day per open enrollment period  0%-100% Self Service by second Workday open enrollment  Benefit audit time reduced from two weeks to one day % of Open Enrollment completed via Self Service Pre-WDWith WD 100% Source: Workday Value Realization HR Efficiency 0%

WORKDAY CONFIDENTIAL 29 HR Efficiency Value Achieved  40% reduction in maintaining records  15% increase in auditing / controlling  7% increase in business partner support  8% increase in HR Service Provider activities  10% increase in development of HR Systems and Practices Decrease in HR Systems Development correlates directly to an improvement in HR Business Partner Support Improved Allocation of HR Resources

WORKDAY CONFIDENTIAL 30  Broward’s HR Ratio tops industry and company size benchmarks, in addition to demonstrating a positive trend over time with a 30% improvement  The HR team is able to leverage current resources as Broward grows and can repurpose current team members to continuous process improvement HR Productivity Note: Number of FTEs used includes only HR employees and managers, excluding HRIS Source: “HR Staff and Structure Results: U.S. Human Capital Effectiveness Report”, 2010/2011, Saratoga / PWC HR Ratio

WORKDAY CONFIDENTIAL 31  Broward’s Payroll Ratio tops benchmarks by company/revenue size, in addition to demonstrating a positive trend over time  Gained improved visibility with Workday, having Finance, HR & Payroll in one system, compared to the previous environment which lacked integrations between HR and the other two functions  Elimination of retroactive manual calculations  Department self-service has reduced the amount of time Payroll spends keying data Payroll Efficiency Source: “HR Staff and Structure Results: U.S. Human Capital Effectiveness Report”, 2010/2011, Saratoga / PWC Payroll Ratio