HCM Transformation Initiative Update Wharton School Staff Meeting HCM Transformation Initiative Update Date: 2/27/2018

Agenda Topic HCM Overview – Trudi Sippola Penn Employee Solution Center – Claudia Quinton Workday@Penn Update – Julie Shuttleworth Change Management – Trudi Sippola Fireside Chat - Q&A - Thank You and Stay in Touch

HCM Overview Trudi Sippola, Project Lead – Change Management

Overview – One Project/Two Workstreams HCM Transformation Initiative Service Delivery Penn Employee Solution Center Workday@Penn Improve people-centered services Consistent, up-to-date responses to FAQS Strategic People-centered Transforms how we do our work

Penn’s Transformation Challenge – HCM Transformation Initiative Human Capital Management (HCM) represents the end-to-end processes related to managing people resources and support core functions for “hire to retire” and beyond. Embrace change to foster excellence as a change-agile” organization Engage the energy and passion of Penn around a shared vision and commitment to: Excellence Inclusion Service HCM University-wide Scope Recruitment & Hiring Payroll Personnel Admin Benefits Compensation Time Management Faculty Talent Large Scale Transformation New HCM Workday System New Work Processes New Service Delivery Model People /Role Alignment Penn Employee Solution Center Penn’s HCM project is a large scale transformation – it offers us all a chance to embrace change – to become more change agile.

Why are We Changing? What’s In It For Me? (WIIFM) A Compelling Business Case What’s In It For Me? (WIIFM) Need to replace aging systems to reduce security, expense and compliance risks. Continue to be an employer of choice offering modern and efficient resources to our people. Penn staff say “we love Penn but dislike our tedious work processes.” Simplified, integrated processes will improve data accuracy and informed decision-making Reduce staff time on transactional tasks so we can focus more on valued-added work, mission-driven efforts and strategic support. Change is unique and personal for each of us. A few thoughts: Opportunity to learn modern, agile cloud- based integrated system to stay current in your career An enhanced Penn employee experience – direct access to information anywhere, anytime on any device Greater University-wide career mobility and opportunities through digital literacy and knowledge of the same system used across Penn More opportunity for collaboration and growth across Penn

High-Level Timeline 2017 2018 2019 2020 Plan & Architect Wave 1 Wave 2 Solution Center 1.0 Live Workday Wave 1 Live Workday Wave 2 Live Initial Focus of Expertise Core HCM Recruitment Compensation Leave Administration PTO, FMLA, Disability Leaves Time Reporting Payroll Change in amount, errors in payment, pay dates Staff and Labor System usage, policy and procedure Core HCM Academic Unit Payroll Benefits Compensation Time/Attendance Absence Recruiting Onboarding Performance Talent Learning Effort Reporting This detailed look at the timeline shows the current plan for Phase 4 milestones. Service Desk 1.0 – January 2018 Workday Wave 1 go live – January 2019 Workday Wave 2 go live – January 2020 During the Plan & Architect stage, we’ll more clearly define what is included in Wave 1 and Wave 2

Penn Employee Solution Center Claudia Quinton, Project Lead - Service Delivery

What is the Penn Employee Solution Center? Vision Build a hub providing answers to the Penn community as well as school and center business partners Provide faculty and staff with best-in-class customer service and timely resolutions Build an integrated knowledge base for the Penn community Provide an irresistible customer experience Areas of Initial Focus Compensation Leave Administration PTO, FMLA, Disability Leaves Payroll Questions about changes in amount, errors in payment, pay dates Recruitment Staff and Labor System usage, policy and procedure Time Reporting eTime, PTO system

Early Adopter Organizations Solution Center Launch and Rollout Early Adopter Organizations Division of Business Services Division of Finance Division of Human Resources Division of Information Systems & Computing Office of Development & Alumni Relations School of Arts & Sciences School of Nursing School of Social Policy & Practice Future Adopters in 2018 Incremental releases expand audience, topics, and communications channels Service to all employees regardless of their school or center or inquiry type. New hires given the Solution Center contact information in orientation materials. Schools and centers will receive substantial communications support for formal rollouts . 2017 2018 2019 2020 Solution Center 1.0 launched 1/29, covering existing systems. Wave 2 – 5 March – July 2018 Solution Center transitions to support all functions within Workday@Penn. With Workday Wave 2 go-live, Solution Center expands to include new functions.

Project Update – Workday@Penn Julie Shuttleworth, HCM Program Director Functional Team Lead

Workday@Penn Guiding Principles Think “One Penn” Keep it Simple Adopt, Don’t Adapt Innovate and Improve Strive For Clarity Be Accountable We will implement these standard, best-practice processes and procedures with a focus on what is best for the Penn Community as a whole. Through standardization we will simplify cost structures and delivery of services to our internal and external constituents and demonstrate accountability to end users. Guiding Principles in Action during Business Process Design Sessions There are six principles that will guide us throughout this project: Think “One Penn” Do what is best for the University, not just for one school or center Be transparent, collaborative, and inclusive Adopt, Don’t Adapt Change the HCM process, not the software. Any HCM software customization should deliver 10x value to cost. Keep It Simple Minimize the HCM data entry and modifications of the same information and shared data fields in multiple systems. Utilize one HCM technology to enable efficient and uniform processes Be Accountable Every HCM data source, process, procedure, and policy requires an owner. Strive for Clarity Agree on consistent HCM terms, such as headcount or employee transfers. Innovate and Improve Consider new approaches and ideas. Monitor and measure HCM services for quality and efficiency, and take corrective action if needed.

Other members of the Workday higher education community What Is Workday? Workday offers… A cloud-based integrated system that manages HR, payroll, and other HCM-related processes Enterprise-class security with 24/7 access to information Modern, agile technology Real-time analytics and user friendly After a rigorous selection process, Penn selected Workday as our HCM software provider. We’re excited to be partnering with the leader in human capital management applications. Other members of the Workday higher education community Brown  Yale  Cornell  NYU  University of Chicago  USC  Georgetown  and more

Current Phase: Configure and Prototype Activities Design workbooks that were created during the Architect phase will now be used to build business process flows, security roles, supervisory organizations, and other requirements that create multiple, secure prototype tenants in Workday’s cloud computing architecture. Architect Configure and Prototype Test Deploy Build and Refine Prototype Tenants Pennworks Data Cleaning For Julie: Suggested Talking Points Provide an overview of key activities in C&P from a functional perspective; last two items are provided as illustrative CM activities that we will go into further detail later in the presentation. Give context for this phase as needed. Communications/Meetings Organizational Readiness Activities

Workday Fundamentals Business Process Grouping of tasks that are processed for a particular action (i.e. hire, job transfer, name change, etc.) Security and Roles Used to determine what access is granted to users for task processing, data viewing, and report generation. Supervisory Organizations Used to group job and workers for various purposes, including processing and reporting. 1 3 2 Keep brief for now – will cover in March Core Concepts webinar. Focus on suporgs for key decisions and the hierarchy tool intro

1 2 3 Key Supervisory Organization Decisions All workers will be hired into a position within a supervisory organization. Multi-manager supervisory organizations will be allowed in Workday. Existing HR Manager Hierarchy tool will be expanded for non-staff, with data used for Workday supervisory organization conversion and/or creation. For Julie: As part of your talking point for each decision, you could include the relevance (the “so what”) for the Penn Community of each decision—we can then fold this type of information into future presentations.

Workday Supervisory Organizations Supervisory Organizations provide the foundation of the hierarchy structure Each Supervisory Organization consists of: A unique org name A manager Employees that report to the manager Supervisory Organizations provides structure for how: Employees are organized Business processes are routed Data is connected

Capturing Supervisory Data for Conversion Supervisory data will be converted from HR Manager Hierarchy tool Previously used only for staff in support of performance appraisal process Tool has been expanded to capture supervisor information for all active employees Data has been preloaded from Salary Increase Modeling and eTimesheets as a starting point for non-staff HCM team will send out communications to change leads to coordinate updating of hierarchy for conversion cycles Team will also supply a list of current hierarchy tool users in each School/Center Here’s how you can help: We need to expand the hierarchy tool used for staff to all employees. Your help is needed with this to create the supervisory orgs in Workday. Julie – decide if mention legacy system data cleanup and mail code small projects to help with transition.

Academic Units Allow us to: Track academics and their appointments Primary and secondary appointments Named professorships Track visiting scholars as affiliates Drives academic appointment business processes Assignment of security roles (separate of security on the Supervisory Organization) Direct relationship with the Supervisory Organization for routing in Staff Business Processes Allowing for position changes to be initiated based on changes in rank Academic Unit Hierarchy Subtypes – Center, Department, and Institute

Cost Allocations The Org, Fund, Program and CREF segments of the budget code will need to be entered BC will be inferred by the FUND (same as in Hyperion) CNAC will be inferred by the ORG Object code will be determined automatically by the worker and earning type details Implementation of cost allocation involves custom orgs/fields so that any future implementation of Workday Financials is not impacted

Successful Change Requires Two Sides Technical Side People Side Design Deliver Develop Embrace Use Adopt Current State Transition State Future State

Change Management Overview Trudi Sippola, Project Lead – Change Management

Change Management Overview The application of a structured process and set of tools for leading the people side of change to achieve a desired outcome. A leadership competency A strategic capability to increase change capacity and responsiveness. What is Change Management? Embrace change to foster excellence and innovation as a “change-agile” organization in service to Penn and its people Integrate the “people side of change” with project management to drive results Actively engage the Penn community in a large, complex, and highly “people dependent” transformation Ensure adoption, utilization and proficiency with Workday and the Penn Employee Solution Center Objective: Enhance the Penn Employee Experience

Why is Change Management Important? It is the bridge between a quality solution and benefit realization as individuals embrace and adopt the change from current state to desired future state Organizational change requires individual change Organizational outcomes are the collective result of individual change We apply change management to realize the benefits and desired outcomes of the change vs just installing a new solution HCM is Transformative for Penn The way we do work changes with a new modern system, processes and roles Preparation for change is necessary Current State (Today) Future State (Tomorrow) Transformation Bring home the difference between just installing a new system with training and tips and realizing the benefits and desired outcomes of a transformation project. CM is needed and preparing for change is essential.

Penn Engagement Framework Engage hearts & minds People-Centered Transformation Continuous Learning Collaboration Empowerment Innovation Build new capabilities Career mobility Workday is iterative! Work across boundaries Share knowledge Mobility on any device No hassle self-service Modern, agile technology New efficiencies

Stakeholder Assessment Change Management Tools and Activities Align Leadership A Change Readiness Assessment uses periodic surveys to document a baseline and provide regular pulse checks that will assess how ready stakeholders are for Workday. Change Readiness Change Network Change Networks utilize key stakeholders to deliver and drive change activities and reinforce communications to their respective areas within the organization while providing feedback from their respective groups. Facilitate Change Agents Stakeholder Assessment The Stakeholder Assessment is a key input into the Engagement and Communication Plans, which will ensure that the right people are engaged and receive the right information, at the right time, in the right way. Climate / Behavior Engaging & Enabling Implementing & Sustaining Leadership buy in drives change management from the top down and supports adoption across the Penn Community. Drive Translate Share Communicate Coach Training Change Impact Assessment End user training will provide users with a learning experience tailored to their future use of Workday. This blended learning approach will utilize diverse methods, tools, and platforms to provide process and role-based learning experiences that fit the needs of users. A Change Impact Assessment identifies what is changing and who is impacted as a result of Workday HCM’s implementation, along with the degree of change anticipated.

Our Partnership – Structure & Roles HCM Overview Serve as a focal point for planning, small projects or data related requests, emerging issues, feedback and questions with the HCM team Identify others locally who can help with specific requests when needed. How You Can Participate Now: Expansion of the hierarchy tool for supervisory org development Penn Works legacy system data clean-up to ensure a smoother transition Mail Code clean-up to prepare for Workday What’s Coming Next: Complete the brief on-line Change Readiness survey for those impacted by Workday to help guide plans to support your communication and training needs. Each local team has a primary liaison or Local Change Agent Lead (L-CAL) Executive Sponsors Steering Committee PMO Technical Team Functional Team Change Team Service Delivery Team HCM Change Agent Network Local Project Lead(s) (VP or Vice Dean level) Local Change Agent Lead Local Change Agents(s) Your Local Audiences

Communication to Support Change Awareness of the need for change Desire to participate in and support the change Knowledge on how to change Ability to implement changes on a daily basis Reinforcement to sustain the change What’s changing? Why is it necessary? What are risks of not changing? What are benefits of the change? What’s in it for me? How will my job change? How will processes change? What processes are changing and when? What do I need to know/learn to be successful? What training is required? Will I have the tools and access necessary to do my job? Who can answer questions? How will barriers be removed and problems solved? What resources are available to support new processes and behaviors? How will we celebrate success? How will we continue to improve? This detailed look at the timeline shows the current plan for Phase 4 milestones. Service Desk 1.0 – January 2018 Workday Wave 1 go live – January 2019 Workday Wave 2 go live – January 2020 During the Plan & Architect stage, we’ll more clearly define what is included in Wave 1 and Wave 2 ProSci ADKAR Model: The People Side of Change

Thank You Stay up to date with HCM activities Website www.hr.upenn.edu/hcm HCM Primer FAQs Team Member Bios HCM Update, monthly e-newsletter and archives. Subscribe from the website https://www.hr.upenn.edu/hcm/news/hcm-update Contact your local Change Agent Network https://www.hr.upenn.edu/hcm/resources/change-agent-network Email the HCM team hcm-announcement@upenn.edu

Fireside Chat Q&A