1. 1 U N I V E R S I T Y O F C A L I F O R N I A PPS Replacement Initiative Project Overview – September 2011

2. 2 U N I V E R S I T Y O F C A L I F O R N I A Why a PPS Replacement Initiative? PPS is almost 30 years old and no longer meets the highly complex and evolving operational needs of the University. There are 11 different variations of PPS in use today throughout the University, which are costly to maintain and support. The limitations of PPS drive workload redundancy and process inefficiency. PPS must be replaced in order to streamline and standardize payroll and HR operations.

3. 3 U N I V E R S I T Y O F C A L I F O R N I A Replacing PPS means finding component solutions integrating HR, Time and Attendance, Benefits, and Payroll functionality

4. 4 U N I V E R S I T Y O F C A L I F O R N I A About UC Payroll and HR Operations Today UC needs to become more efficient in its HR/APO/payroll/timekeeping operations that support its approximately 185,000 employees. UC-wide, there are approximately 6000 FTEs today performing HR, payroll and timekeeping duties at a cost of over $500 million. The ratio of HR and payroll staff to the number of employees served is higher at UC than at 90% of other organizations according to benchmark data. There are great opportunities for improving payroll and HR services by deploying new technology, streamlining and standardizing processes across UC, and eliminating duplication of effort by centralizing transactional activities.

5. 5 U N I V E R S I T Y O F C A L I F O R N I A Employees Served Per HR FTE

6. 6 U N I V E R S I T Y O F C A L I F O R N I A UC FTEs Served Per Payroll/Timekeeping FTE

7. 7 U N I V E R S I T Y O F C A L I F O R N I A Whats the Solution? Replace PPS with Oracles PeopleSoft payroll and HR systems. Standardize and streamline all related payroll and HR/APO business processes UC-wide. Centralize transactional payroll and HR/APO processes to be more efficient, higher quality and less costly. Implement Enabling Technology Centralize Transactional Activities Streamline and Standardize Processes Future State of Payroll and HR Service Delivery Higher Quality More Efficient Lower Cost Future State of Payroll and HR Service Delivery Higher Quality More Efficient Lower Cost

8. 8 U N I V E R S I T Y O F C A L I F O R N I A When the Project is Complete… There will be a single payroll and HR solution for all employees UC-wide. Employees will have access to their information and be able to make changes via online self service. Dedicated customer support staff will provide accurate and timely information by phone, email or chat. Payroll processing will be real-time, automated, efficient and accurate. HR, payroll and academic personnel transactional processes will be simplified and consistent across all UC locations. UC will deliver payroll and HR services at a substantially lower cost than today.

9. 9 U N I V E R S I T Y O F C A L I F O R N I A Phased Implementation Phase 1:Implement HRMS, Payroll and GL integration solutions, replacing PPS must have functionality as well as improving core human resources and payroll processing capabilities. Phase 2:Implement systemwide time and attendance capability, significantly reducing business process redundancies, shadow systems, and paper processing. Phase 3:Achieve end-to-end integration and consolidation, with expanded HRMS functionality, a UC-wide portal facilitating access to all systems, and a human resources/payroll data warehouse supporting analytics and decision support.

10. 10 U N I V E R S I T Y O F C A L I F O R N I A Early Adopters / First Wave Implementers Implementation will take place in several waves made up of small groups of campuses/medical centers. Each wave is able to execute more efficiently and effectively by building on the experience and lessons learned in the previous wave. The wave approach: Manages risk Builds momentum Provides proof of success UCOP (First Wave Implementers circled in red)

11. 11 U N I V E R S I T Y O F C A L I F O R N I A Early Adopters – Wave 1 Campuses and Medical Centers Early adopter locations will be the first to implement Phases 1 and 2 UCLA UCLA Health System UC Merced UCOP UC San Diego UC San Diego Health System UC Santa Cruz

12. 12 U N I V E R S I T Y O F C A L I F O R N I A Campus Resource Overview Local Leadership Team* HR/APO Leadership, Payroll Leadership, IT Leadership (the number resources at location discretion) Local PMO PMO Project Manager, Project Coordinator, Communications Lead (2-5 Resources Per Campus/Medical Center; the number of resources at location discretion ) Planning and Requirements SMEs Wave 1** (4-6 months) Wave 2*** (4-6 months) Wave 3*** (4-6 months) Payroll SMEs 2-4 per campus HR /APO SMEs 1-3 per campus Tech- nical Experts.8-1.5 per campus Configuration & Development (Estimated 9 months per wave) Func- tional SMEs.1-.6 per campus Tech- nical Experts 2-4 per campus Data Clean Up (Estimated 9 months per wave) Func- tional SMEs 3- 6 per campus Tech- nical Experts 1-2 per campus Interfaces and Conversion (Estimated 9 months per wave) Func- tional SMEs 1.6-2.8 per campus Tech- nical Experts 3-6 per campus Testing (Estimated 6 months per wave) Payroll SMEs 2.3-4.5 per campus HR/APO SMEs 2.3- 4.5per campus Tech- nical Experts.5-1 per campus

13. 13 U N I V E R S I T Y O F C A L I F O R N I A Tiered Approach to Payroll and HR Service Delivery

14. 14 U N I V E R S I T Y O F C A L I F O R N I A Keys to Success Major change requires extraordinary commitment, patience and some hard decisions. Organizational Readiness and Willingness to Change Scope Management Changes to the project plan or system will be made sparingly and collaboratively with careful consideration of tradeoffs. This project will need to maintain significant momentum, resolving issues efficiently and effectively. While broad input will be needed and sought, committee consensus with extended deliberations will not always be possible. Speed of Decision Making Vendor Management Oracle will play a critical role during implementation and in ongoing operation of the hosted technology platform. Both Oracle and UC will need to be diligent about their respective accountabilities, including service quality and issue management.

15. 15 U N I V E R S I T Y O F C A L I F O R N I A Managing Change with Communication The PPS Initiatives website is the primary source for project information for internal and external parties: http://workingsmarter.universityofcalifornia.edu/projects/payroll-personnel- system/overview/ News stories as the project reaches major milestones Project communication contact at each campus and medical center that works closely with campus and medical center communication Straightforward and timely information for changes that impact work processes, jobs, roles and organization Local communication plans will include regular updates, brown bag sessions Weekly updates for project team posted to SharePoint Email listserv for stakeholders to ensure up-to-date on project status, issues and next steps

16. 16 U N I V E R S I T Y O F C A L I F O R N I A Project Ground Rules Maximizing Efficiency and Effectiveness To drive a lower long-term cost of ownership, we will implement software as one standard UC configuration and change our processes to fit whenever possible. All locations will have the same processes for HR, payroll and academic personnel. For all locations: Data definitions will be the same Policy implementation will be the same Transformational Change Past practices will not dictate future practices. Where efficient and effective, we will centralize transactional processes. If a desired process change is not aligned with existing policy, we will examine the policy and take action to change it if viable. Maintaining Strong Momentum We will maintain strong momentum and a sense of urgency in order to achieve benefits quickly. All locations will have an internal project governance structure that enables timely decisions, communication and execution of project deliverables. Mission: To achieve sustainable long-term cost savings and improve service quality through more effective and efficient business processes, improved technology, and a new approach to HR and payroll service delivery. Vision: Administrative excellence at a level on par with UCs academic enterprise.

17. 17 U N I V E R S I T Y O F C A L I F O R N I A University-Wide Objectives and Outcomes As governance body or project team members, we will: Put the interests of the entire University first Consider issues from local, functional and systemwide perspectives Be open to alternative approaches and new ideas Be advocates for the project objectives at our locations, among our peers and on behalf of the University Teamwork We will make decisions, complete homework and provide input within agreed-upon schedules. Make decisions quickly, recognizing that at some point debate must be concluded. We will not always agree, but we will support the decision that is made. Communication We will communicate honestly, actively and transparently with: Our project team members Our functional peers systemwide Our colleagues and stakeholders locally Our local and systemwide leadership Project Ground Rules

18. 18 U N I V E R S I T Y O F C A L I F O R N I A Q & A