1. “Road Map to Success” Jerry Lohfink Director, National Finance Center

2. 2007 Customer Forum Welcome Agenda NFC Strategic Direction

3. 2007 Customer Forum Welcome Agenda NFC Strategic Direction

4. Agenda Tuesday Morning –NFC Strategic Plan –Introduction to the Retirement System Modernization effort –Human Resources Line of Business –Payroll/Personnel System –Customer Relationship Management –Data Center Update –Value Proposition

5. Agenda Tuesday Afternoon –Customer Service Initiatives –Preparing for the Retirement Systems Modernization –Security Entry Tracking

6. Agenda Wednesday –EmpowHR –Human Resources Services –Employee Personal Page/Employee Self-Service –Time and Attendance (STAR and webTA) –Reporting Center –EPIC Web

7. Agenda Thursday –EmpowHR –Security Officers (Lincoln Room) –Human Resources Services –Employee Personal Page/Employee Self-Service –Time and Attendance (STAR and webTA) –Reporting Center –EPIC Web

8. 2007 Customer Forum Welcome Agenda NFC Strategic Direction

9. Strategic Imperatives - 2002 Payroll –Successfully compete to become an ePayroll Provider –Grow payroll count from 435,000 to 550,000 –Limit payroll unit cost growth to 50% of inflation –Move all customer applications to Web-deploy (Geaux Web)

10. Strategic Imperatives - 2002 Payroll –Examine alternatives for FOCUS and TARE –Complete implementation and expand employee self-service –Complete roll-out of Reporting Center –Implement and operate CLER –Explore alternative funding sources for PayEngine

11. Strategic Imperative - 2002 Data Center –Reduce risk of data center being in prime hurricane area –Develop a total cost of ownership model and become competitive with top 15% Federal and top 30% commercial –Restructure to bring greater focus on Cyber Security issues

12. Strategic Imperatives - 2002 Others –Expand PKI and reassess market viability within 3 years –Assess business case for COTS HR –Assess long-term viability of continuing services for FRTIB –Examine alternatives for Travel System –Improve Disaster Recovery capability and meet all continuity requirements as demonstrated through testing –Assess alternatives for COOP sites –Rollout Ethics reporting capability for USDA

13. Commercial Break Denver Data Center Pre-Cutover Testing –Testing is scheduled for August 4-5 and 18-19 –TESTING IS CRITICAL! Philly Customer Site Production

14. Commercial Break Denver Data Center Pre-Cutover Testing –Testing is scheduled for August 4-5 and 18-19 –TESTING IS CRITICAL! Denver Philly Customer Site Production Testing August 4 - 5 and 18 - 19

15. Commercial Break Denver Data Center Pre-Cutover Testing –Testing is scheduled for August 4-5 and 18-19 –TESTING IS CRITICAL! Denver Philly Customer Site Production Testing MAKE SURE YOU KNOW TO WHERE YOU ARE CONNECTING

16. Commercial Break Denver Data Center Pre-Cutover Testing –Testing is scheduled for August 4-5 and 18-19 –TESTING IS CRITICAL! C.W. Huff or Ruth Smythe at 504-426-2651/2606 Denver Philly Customer Site Production Testing

17. Strategic Imperatives for 2008 and Beyond Expand value of human resources line of business services to customer agencies –Expand system functionality –Expand service capability –Achieve greater economies and efficiencies

18. Current State 1. HR Strategy 3. Staff Acquisition 4. Performance Management 5. Compensation Management 2. Organization & Position Management HRIS supports documentation and use of structures for processing and reporting HRIS supports documentation of standards and records performance of record. Operations performs candidate sourcing and on-boarding. HRIS supports HR, T&A, and Pay transactions processing, reporting, and recordkeeping. Operational services serve as customer extension to process transactions, perform back-office functions, etc.

19. Current State 6. Benefits Administration 8. Employee Relations 9. Labor Relations 10. Separation Management 7. Human Resources Development HRIS provides reporting in support of program operation and evaluation. HRIS processes benefit transactions. Operations processes benefit actions. 11. EEO Complaint Processing Manages employee complaints through agency decision. HRIS processes retirement package to OPM.

20. Future State 1. HR Strategy 3. Staff Acquisition 4. Performance Management 5. Compensation Management 2. Organization & Position Management HRIS supports development, documentation and use of structures. Consulting support will assist from strategic & tactical perspectives. HRIS supports collaborative development of standards, performance, and records performance of record. Operations supports performance management strategy, program development, and evaluation. HRIS supports HR, T&A, and Pay transactions processing, reporting, and recordkeeping. Operations support administration and operation of bonus and award programs and services serve as customer extension to process transactions, perform back-office functions, etc. Strategic business partners will provide environmental analyses, strategy development, policy review and development, conduct workforce analysis and planning, perform succession planning and provide HR consultation. HRIS supports staffing plan, sourcing candidates, candidate evaluation, on-boarding, security clearance processing, and HSPD-12. Operations support acquisition strategy, candidate sourcing, evaluation, on-boarding, and security clearance processing.

21. Future State 6. Benefits Administration 8. Employee Relations 9. Labor Relations 10. Separation Management 7. Human Resources Development HRIS records development activities, workforce assessments, IDP development, and provides reporting in support of program operation and evaluation. Operations supports development strategy, workforce assessments, and program evaluation. HRIS processes benefit transactions. Operations supports development and operation of benefit programs and processes benefit actions. 11. EEO Complaint Processing Case management system to support management of employee complaints through agency decision. HRIS processes retirement package to RSM. HRIS offers case management capability.

22. Expand Value of Human Resource Line of Business HRIS –External integration (staffing & classification) –PeopleSoft 9.0, including staffing modules –PeopleSoft 9.x, including performance –Integration with development suppliers –Case Management –Payroll module replacement –Other functionality as needed by customers

23. Future State Achieve next generation of PayEngine –More responsive to change and flexibility –Business rule-based –Tighter integration with HR systems –Achieve new economies and opportunities for efficiency

24. Achieve Next Generation of PayEngine Key Milestones –Develop funding strategy –Detailed project plan and establish customer teams –Acquisition –Implementation –Testing & Migrations –Sunset PPS

25. Strategic Imperatives for 2008 and Beyond Provide reliable, rigorous, and robust data center services –Managed services, hosting, and DR/COOP –Continue Total Cost of Ownership with more aggressive targets –Achieve new economies and opportunities for efficiency

26. Strategic Imperatives for 2008 and Beyond Explore “Software as a Service” model with industry and customers –Assess market interest in concept –Broker customer interest and establish contract vehicles –Reassess results and modify approach –Periodically reexamine alternatives

27. Strategic Imperatives for 2008 and Beyond Achieve greater customer satisfaction with services –Improve metrics capabilities –Enrich employee development program and supplement skills –Continually work on cultural alignment –Enhance relationship management capabilities

28. Achieve Greater Customer Satisfaction Key Milestones –Expand customer survey instruments –Improve customer satisfaction capture and reporting tools –Baseline employee knowledge and skill sets –Develop targeted training and development opportunities –Continually reassess employee capabilities –Expand Reporting Center functionality –Continue to expand SPPS functionality

29. Achieve Greater Customer Satisfaction Key Milestones –Develop inventory of existing system limitations and develop approach to address each –Revisit customer group structures and improve –Reestablish automation in call centers –Continue overhaul of billing algorithm to increase rate responsiveness –Explore alternatives to supplement staff performing modifications for customers –Update Knowledge Base

30. Strategic Imperatives for 2008 and Beyond Achieve a risk level greater than 4 in risk management maturity Goal: Complete assessment and action plan by mid-2008 Goal: Achieve level 3 by mid-2010 Goal: Achieve level 4 by end of 2012 Ad-HocInitial RepeatableManaged Optimized

31. 2007 Customer Forum Q & A Before Lunch!

32. 2007 Customer Forum THANKS!