APA DETROIT MARCH 2008 CHAPTER MEETING A New Look at Leading and Managing Payroll Martin Armstrong, CPP, MBA Harrah’s Entertainment Director of Payroll

2 LEADING & MANAGING PAYROLL A Manager’s Most Important Words A Manager’s Most Important Words 5 Most Important Words 5 Most Important Words 4 Most Important Words 4 Most Important Words 3 Most Important Words 3 Most Important Words 2 Most Important Words 2 Most Important Words 1 Most Important Word 1 Most Important Word Brevity – “The most valuable of all talents is that of never using two words when one will do.” Brevity – “The most valuable of all talents is that of never using two words when one will do.” - Thomas Jefferson, U.S. president - Thomas Jefferson, U.S. president

3 EMPLOYEE MOTIVATION Use Emotional Intelligence Use Emotional Intelligence Create Effective Mechanisms (money, training) Create Effective Mechanisms (money, training) Recognition (freedom cards, recognition memos, recognition business cards for performance reviews) Recognition (freedom cards, recognition memos, recognition business cards for performance reviews) Innovative employees are rarely motivated exclusively by monetary rewards but rather by the work itself Innovative employees are rarely motivated exclusively by monetary rewards but rather by the work itself Why are you still there? Why are you still there?

4 WHAT LEADERS DO Evaluate, coach, and build self-confidence Evaluate, coach, and build self-confidence Exude positive energy and optimism Exude positive energy and optimism Establish trust with candor, transparency and credit Establish trust with candor, transparency and credit Make unpopular decisions and gut calls Make unpopular decisions and gut calls Probe and push to ensure their questions are answered with action Probe and push to ensure their questions are answered with action Inspire risk taking & learning by setting the example Inspire risk taking & learning by setting the example Set Strategic Vision, Goals and Objectives Set Strategic Vision, Goals and Objectives Leaders influence and promote change Leaders influence and promote change

5 UNDERSTANDING CORPORATE CULTURE Determine the concerns & needs of others in the organization Determine the concerns & needs of others in the organization Understand organizational culture and politics Understand organizational culture and politics Consider who can influence your ability to accomplish your goals Consider who can influence your ability to accomplish your goals Determine if your actions coincide with your organization’s goals and objectives Determine if your actions coincide with your organization’s goals and objectives

6 ROOT CAUSE ANALYSIS 1. Define the problem. 2. Gather data/evidence. 3. Identify issues that contributed to the problem. 4. Find root causes. 5. Develop solution recommendations. 6. Implement the solutions. Six Sigma – improve methodology that reduces errors to 3.4 defects per 1million opportunities Six Sigma – improve methodology that reduces errors to 3.4 defects per 1million opportunities The Five Whys Technique – usually takes 5 questions to find the truth or root cause The Five Whys Technique – usually takes 5 questions to find the truth or root cause

7 CRITICAL THINKING Measure the impact of your decision Measure the impact of your decision Do people want or will they utilize your idea? Do people want or will they utilize your idea? Consider changes to People, Culture, Training, Processes and Support Systems Consider changes to People, Culture, Training, Processes and Support Systems Consider the ROI and Payback Periods Consider the ROI and Payback Periods Know the Cost of Doing Business Know the Cost of Doing Business

8 PERFORMANCE METRICS Measurable results gathered and calculated to identify strengths, weaknesses, goals and opportunities Measurable results gathered and calculated to identify strengths, weaknesses, goals and opportunities Key performance indicators or benchmarks Key performance indicators or benchmarks Balanced Scorecards, Service Level Agreements Balanced Scorecards, Service Level Agreements Cost per paycheck Cost per paycheck Payroll FTE ratio to total number of FTEs Payroll FTE ratio to total number of FTEs Direct Deposit Participation Rates Direct Deposit Participation Rates Error Rates (time and attendance and input errors) Error Rates (time and attendance and input errors) Overtime as a percentage of total payroll Overtime as a percentage of total payroll

9 EFFECTIVE COMMUNICATION Give Your Full and Undivided Attention Give Your Full and Undivided Attention Cross-Functional Communication (Futa?) Cross-Functional Communication (Futa?) Use Meeting Agendas Use Meeting Agendas Incorporate Business Case when communicating Change Incorporate Business Case when communicating Change Speak with Confidence, Purpose and Precision Build Bridges & Partnerships Use Spell Check – Perception is key Avoid Complaining, Focus on Solutions

10 STRATEGY – HOW YOU GET SOMETHING ACCOMPLISHED Plan, Purpose, Vision, Outcomes and Strategy Plan, Purpose, Vision, Outcomes and Strategy Use Strategy to save time, money and effort Use Strategy to save time, money and effort Goal Setting should always accompany a strategy Goal Setting should always accompany a strategy The Right Strategy always expands goals & outcomes The Right Strategy always expands goals & outcomes In business, use the Best, Current and Customized Strategy (best practices) Match the right people with the right jobs (evaluate skill sets) Use desktop procedures, process maps and other process documentation If you don’t know where you’re going, any road will take you there..strategy has its place!

11 IN-DEMAND JOB SKILL SETS Problem Solving Skills Problem Solving Skills Sarbanes Oxley Experience Sarbanes Oxley Experience Procedures for authorizing transactions Procedures for authorizing transactions Procedures for authorizing exceptions Procedures for authorizing exceptions Separation of job duties Separation of job duties Updated processes when policies & systems change Updated processes when policies & systems change Appropriate controls for review Appropriate controls for review Time Management Skills Ability to hire, fire, train and coach employees Ability to motivate individuals and teams Effective written and verbal communication skills Proven Results Performer (your ability to execute)

12 THOUGHT FOR THE DAY Ability is what you’re capable of doing Ability is what you’re capable of doing Motivation determines what you do Motivation determines what you do Attitude determines how well you do it Attitude determines how well you do it Lou Holtz, former College Football Coach Lou Holtz, former College Football Coach

13 THANK YOU FOR ATTENDING! Contact Information: Martin Armstrong > Contact Information: Martin Armstrong > Please Remember to Hand in Your Evaluations APA DETROIT MARCH 2008 CHAPTER MEETING