1. HR-PAYROLL PROJECT Project Update April 14, 2004

2. Goals of the HR-Payroll Project – Payroll Phase Migrate from paper to web-based transactions Leverage SAP and other technologies Simplify and standardize business processes Single point of data entry Faster process flow Integrated systems People’s HR records correct, paid correctly and timely On time / On budget

3. Status of Business Process Redesign Teams BPR TeamPurposeFirst MeetingLast Meeting Report Complete Admin. and SRS Absence Tracking Tracking Admin and SRS vacation and certain medical-related absences 12/12/033/01/04 Hourly Timesheet Replacement for e-time9/24/0312/17/03Yes Salary Dist. & Cert. Replacement for DACCA, DINDI, and SANDI 9/11/0311/18/03Yes Employee Health & Welfare Benefits Behind the scenes processing of EB benefits and taxable benefits 12/18/032/06/04Yes Graduate Payroll Graduate student pay / tuition3/09/043/28/04 Managing Payroll Deductions Behind the scenes processing of payroll deductions (i.e., parking) 11/17/0312/15/03Yes Non-Resident Alien Federal taxes for internationalsTBD Academic & Other Monthly Pay Faculty Payroll3/12/04TBD Casual Labor Appointment process for vouchers11/06/032/23/04Yes

4. Payroll Phase Timeline Project Preparation  February – May 2004  Organizational Change Management Team kicked off Feb. ’04 Blueprinting  May – November 2004 Realization  November 2004 – June 2005 Final Preparation  July 2005 – December 2005 Go Live!  January 2006

5. Organizational Change Management Team Why do we need an Organizational Change Management Team? Since the beginning of the HR-Payroll Project, organizational change issues have been recognized as critical to the success of the implementation of SAP. Because the anticipated impact of the Payroll SAP module implementation is extensive, reaching all employees and students, the approach to managing the changes requires a broad outreach strategy, employing a broad base of business owners and stakeholders. As a result, the Organizational Change Management Team was formed to further identify and address issues associated with anticipated changes and impacts for employees and departments.

6. Risks Kathleen Flynn Human Resources Training Irina Vainstock IS & T Roles and Responsibilities Kathie Lalor Leslie Wright Payroll DLC Rollout Jennifer Kratchowill HR-Payroll Project Students Cynthia Stanton SFS Central Admin Rollout Jean Roberge Sue St.Croix CAO Organizational Change Management Team Membership Communication Diana Hughes HR-Payroll Project Change Management Alyce Johnson HR-Payroll Project Lincoln Lab Pam Weldon Lincoln Lab

7. Organizational Change Management Team What is the Charge of the Team? Translate and deliver future business process into a new organization design Conduct change management assessment workshops to determine appropriate interventions (transition baseline review) as a mechanism to track/monitor the effectiveness of the team’s strategies Conduct and manage organizational risk activities Review and propose new roles and responsibilities Coordinate communication planning effort Coordinate training development and training delivery Create detailed transition strategy plan to assure efficient transition to the future organization design Work with impacted areas and their employees and students to help facilitate a smooth transition

8. Organization Change Management – Central Administration Bus ProcessCAO Non Payroll SVC Ctr/Payroll Human Resources IS&TOSPBudgetData Warehouse Admin & SRS Absence Tracking Hourly Timesheet Salary Distribution & Certification Employee Health & Welfare Benefits Graduate Payroll Managing Payroll Deductions Non-Resident Alien Academic & Other Monthly Pay Casual Labor

9. Organization Change Management – Central Administration Organizational Change Management DRAFT Resource Group Charter A. Resource Group Membership Sponsor: HR/Payroll Organization Change Team Lead: Jean Roberge/Sue St.Croix Representatives whose organization will be affected by the project outcomes; has a vested interest in the project deliverables and/or impact on the organization Represents a department, school or other constituency of the MIT community (e.g. students) – this team is for central administrative departments. B. Justification Since the beginning of the HR-Payroll Project, organizational change issues have been recognized as critical to the success of the implementation of SAP. The anticipated impact of the SAP implementation is extensive, reaching all employees and students, the approach to influencing and managing the changes requires a broad outreach strategy, employing a broader base of business owners and stakeholders. As a result, the Organizational Change Management Team (OCM) was formed to further identify and address issues associated with anticipated changes and impacts for employees and departments. Central Administration departments will be uniquely impacted by the broad business, organizational, and procedural changes. It is key that these changes are reviewed and understood prior to implementation.

10. Organization Change Management – Central Administration Organizational Change Management DRAFT Resource Group Charter (continued) C. Description: Act in an advisory capacity; provides input and feedback on the work of the Project. Meet periodically to review and advise on the progress of the work Communicate the status and the progress of the proposed work, when appropriate, to the department, school or other constituency that the Member represents Solicit feedback from others in their organization on issues or questions relative to the work of the Project. D. Deliverables: to be determined; may include: Risk analysis results Risk Mitigation Plan Communication Plan Training Plan E. Success Criteria: Business owners at all levels are engaged and partner in the policy and process changes There is support around early policy and practice changes Employees and students have a clear understanding of what is expected of them and are able to adapt to the new processes DLCs have clear direction and understanding of new processes Impacted employees are engaged in the change process