The University of Tennessee Human Resources Business Blueprint

Agenda Business Blueprint Executive Summary Goal of Business Blueprint Tools Used Enterprise Structure Business Fit Module Overview Issues / Gaps Change Management / Training Concerns

Business Blueprint Analysis Goal Determine UT’s business process requirements Achieve a common understanding of how UT intends to run its business within the framework of SAP R/3 Deliver a record of results gathered Move into the next phase with enough information to complete baseline configuration Bullet 1 – General Workshops Bullet 2 – General and Detailed Workshops Bullet 3 – Business Blueprint Bullet 4 – Enterprise Document - (Appendix B – Enterprise Structure) BPML - (Appendix A – BPML) CIT’s - (Appendix D – CITs) Conversion Documents - (Appendix K – Conversions) Configuration Documents - (Appendix G – Configuration)

Business Blueprint Analysis Tools Business Process Questions (by process) Standard questions regarding UT’s organizational structure, processes and business needs Detailed Workshops Meetings with key users to discuss business processes and business needs Customer Input Templates high level summary of Processes Business Process Transaction Business Process Master List (BPML) Bullet 1 – Generalized questions focused on specific topics (i.e. Benefits, Payroll) (Appendix C – Questions) Bullet 2 – Detail meetings with key personnel Bullet 3 – 10 to 12 questions concerning a specific process (Appendix D – CITs) Bullet 4 – Configuration steps needed and processes to be implemented (Appendix A – BPML)

Human Resources Enterprise Structure Definitions of some key elements that make-up part of the Enterprise Structure Refer to Appendix B – Enterprise Structure

Human Resources Enterprise Structure Personnel Area Knoxville Space Institute Chattanooga Martin Memphis Institute of Agriculture Institute for Public Service University Administration Medical Center Personnel Sub-Area Knoxville Space Institute Chattanooga Martin Memphis Clinical Knox Clinical Chatt Research Ctr Family Pr Knox Etc. Categories that have been developed during the Blueprint phase

Human Resources Enterprise Structure Employee Group Regular Term Friends of the University Employee Sub-Group Faculty 9-month Faculty 12-month Other Academic Non-Exempt Staff Exempt Staff Medical Intern/Resident Student Casual Labor Special Appointment Etc. Categories that have been developed during the Blueprint phase More categories in binders Refer to Appendix B – Enterprise Structure

Human Resources Business Fit In Scope Enterprise Structure Organizational Management Personnel Administration Recruitment Benefits Training & Events Management Personnel Development Compensation Management Time Management Payroll Accounting Funds & Positions Management Information System Out of Scope Manager’s Desktop Shift Planning Succession Planning COBRA Administration Pension Administration Employee Performance Apprasials Retirement Limits / Projections Scaled Back Training & Events Management Personnel Development Modules that have been identified In Scope Out of Scope Scaled Back Refer to Executive Summary (page 5)

Organizational Management Module Overview Forms the basis for the entire personnel planning and development application Facilitates analysis of the organizational structure Organizational customizing Allows planning to develop actual and proposed personnel scenarios High level overview of module Refer to Executive Summary (page 3)

Personnel Administration Module Overview Establishes organizational hierarchies Used to perform essential personnel administration tasks such as: hiring employees performing organizational reassignments termination from the University salary adjustments Data stored in such a way that you can easily access and maintain at any time High level overview of module Refer to Executive Summary (page 3)

Recruitment Module Overview Functions you need for working through the entire recruitment process Contains an entire range of powerful, flexible functions that you can use to implement an effective – and largely automated – recruitment strategy such as: Receipt of application via web access (ABAP programming required) Issuance of recruitment requests Selection process of applicant Applicant pool administration Notification to applicants High level overview of module Refer to Executive Summary (page 3)

Benefits Module Overview Comprehensive method of administering employee benefits such as: Health (medical and dental) Insurance (Life) Savings (Retirement) Spending Accounts (Medical and Dependent Care) Encompasses the key concepts and processes you need to manage extensive and highly individual benefits packages for your employees Open Enrollment Employee Life-cycle Events (e.g. Marriage, Child, and Separation) High level overview of module Refer to Executive Summary (page 4)

Training & Events Management Module Overview Enables you to plan and manage business events Training Conferences Interfaces with other R/3 components Basis for extending and updating employee’s skills and knowledge Flexible Reporting Appraisal functions Provide important decision support feedback to ensure the business events offered are both high quality and effective High level overview of module Refer to Executive Summary (page 4)

Personnel Development Module Overview Helps compare current or future work requirements with employees’ qualifications, preferences and aspirations Can contain general measures to impart qualifications so that employees retain or further their professional skills and keep track with technological developments Converts training proposals directly into bookings for employees with qualification deficits or needs High level overview of module Refer to Executive Summary (page 4)

Compensation Management Module Overview Toolset for strategic remuneration planning Empowers managers to offer competitive and motivating remuneration Fixed pay Variable pay Merit increases Promotion Includes Personnel Cost Planning Allows experimenting with future projected costs High level overview of module Refer to Executive Summary (page 4)

Time Management Module Overview Enables flexible representation of all personnel procedures involved in recording and evaluating employee time data Infrastructure for time data recording Work schedules Record of planned attendance and absences Recording of attendance and absence Annual and Sick Leave accrual Time evaluation Ability to transfer absence and attendance data to other SAP applications High level overview of module Refer to Executive Summary (page 4)

Payroll Accounting Module Overview Ability to process payroll for employees using data from SAP Personnel Administration, Benefits, and Time Management Payroll run (regular and off-cycle) Payroll corrections Payments Remuneration Statements Posting to Financial Accounting Third Party Remittance Offers a number of standard payroll reports Tax Reporter component allows you to generate all required state and federal tax forms, such as SUI reports and W-2s High level overview of module Refer to Executive Summary (page 4)

HR Funds & Position Management Module Overview Finance employees for specific periods of time Determine the funds required for financing employees Default values from tables Simulating a payroll accounting run Generate fund encumbrances Relieve encumbrances by actual payroll data High level overview of module Refer to Executive Summary (page 5)

Information System Module Overview Broad range of reporting functions for all areas of Personnel Management (Standard Reports) Capability to define your own reports efficiently and quickly (Ad Hoc Query) Note: Evaluation of Mission Critical reports by module is currently underway. High level overview of module Refer to Executive Summary (page 5)

Human Resources Major Identified Issues Moving to one (1) Payroll Cycle Longevity Payroll Re-calculation Payment of Overtime Distribution Holiday Pay for Term Employees Compensatory Time Banking Leave accrual for employees with multiple positions One definition of FTE for The University Limitations on account assignment in Personnel Cost Planning Establishment of approval process for adding positions during budget process Accrual of salary for nine (9) month faculty (9/12) Decentralization / Centralization of functions Identified in the Q&A database – High priority only See Appendix H – Steering Committee Issue See Appendix I - Issues and Gaps

Human Resources Gaps Assignment of employees to multiple positions Sick Leave Bank Retirement Projections Tax Deferred Limits Non-resident Aliens Processing Common Pay Master HMO Benefit Eligibility Etc. Note: Workarounds are currently being identified to address these gaps Identified in Q&A database See Appendix I – Issues and Gaps

Change Management / Training Concerns Decentralization of some functions down to the departmental level Approvals / Workflow Terminology Works schedule concept Time being recorded daily Procedures being enforced consistently Enterprise Structure concept Positions vs. Employees Organization Structure vs. Accounting Structure Standardization of forms Longevity payment Overtime calculation Pay cycle decision Immediate integration of data Concerns for Change Management and Training Refer to Scope Summary Document

Human Resources Business Blueprint Questions ? Conclusion of presentation Open for addition questions or discussions