1. Project Management Committee Meeting April 7, 2005 Building the Human Resources and Payroll Environment for the Next Generation of North Carolina State Government

2. 1 Welcome and Introductions Project Management Committee  Julie Batchelor, OSC, Chair  Rod Davis, DENR  Dan Domico, DOT  Bob Giannuzzi, ITS  Carl Goodwin, OSP  Wendy Griffin, DOT  Kathy Gruer, DHHS  Ginny Klarman, State Health Plan  Tracy Little, DOC  Jim Macaulay, OSC  John Morgan, OSC  Rob Nelson, UNCGA  Jim Newman, DOI  Catey Oliver, State Health Plan  Kim Padfield, DOT  Tom Runkle, ITS  Gary Wiggins, OSP  Margaret Wiggins, AOC  Jonathan Womer, OSBM  Pam Wortham, Treasurer’s Office OSC Management  Robert Powell, OSC  Gwen Canady, OSC Project Team  Linda Hudson, OSC  Shannon Byers, OSC  Lowell Magee, Deloitte  Bradd Craver, Deloitte  Dorie Kehoe, Deloitte  Katie Beacham, Deloitte  Parham Gerami, Deloitte  Doug Oliver, Deloitte  Stas Krapivnik, OSC

3. 2 Agenda  Welcome, Introductions and Agenda  Committee Update  HR/Payroll Project Status  Post JAD and Technical Sessions Review  Change Management & Communications  Business Process Improvement  Open Discussion  Action Items Review  Adjourn

4. Committee Update

5. 4 Committee Update – Initiatives  SBIP News –Legislative update –Data Warehouse –Next Steps

6. HR/Payroll Project Status

7. 6 Status Report Activities Completed This Period 3/3/2005 – 4/6/2005  Obtained sign-off on HR Group 2 preliminary requirements  Completed Payroll JAD sessions  Began preparations for meetings with CFOs and CIOs  Continued Technical work stream and met with ITS senior management  Completed change management strategy options, conducted change management focus group and follow up interviews  Outlined re-engineering and organizational strategies deliverable  Presented business process redesign strategy and pre-implementation planning recommendations to PSC at March 16 and April 5 meetings  Conducted second HR Directors meeting on March 15, 2005  Conducted vendor QA review  Conducted Certified Public Managers meeting on March 22 Status Report

8. 7 Plans for Next Period 4/7/2005 – 5/4/2005  Prepare and conduct third HR Director’s meeting (April 15, 2005)  Prepare and conduct CFO and CIO meetings (late April)  Meet with Retirement and Budget technical staff  Complete technical work stream and submit technical deliverable for sign-off  Complete change management work stream and submit deliverable for sign-off  Complete Organizational Opportunities Plan and submit deliverable for sign-off  Complete Final HR, Payroll, and Technical Requirements deliverable  Planning and preparation for Phase 2 activities Status Report

9. 8 High Level Project Timeline HR–Group I Personnel Administration Recruitment Applicant Tracking Disciplinary Action and Complaint Management Incident and Accident Tracking Exit Interviews Competency Based HR Management Performance Management Training Administration HR–Group II Compensation Management Job and Salary Surveys Position Evaluation Analysis Benefit Administration Workforce Analytics Organizational Management Employee Self Service Leave Tracking Payroll Payroll Administration Payroll Processing Labor Cost Distribution Time Collection & Management Budget Support Technical High level technical requirements Security Infrastructure Integration PlanExecute Vision Close –Project Status Report –Final Deliverables –Offsite Working/Holiday 12345678910111213141516171819202122232425 181522296132027310172431714212871421284 111825 Group I Group II Payroll Change Management Technical Date Project Management MonthDec Project Week Human Resources NovJanFebMarchApr

10. Post JAD and Technical Sessions Review

11. 10 JAD Session Follow Ups Certified Public Managers Meeting – March 22 –Met with nine Certified Public Managers from six agencies –Presented an overview of Employee/Manager Portal Functionality –Discussed their requirements as non-HR/PR managers and employees State Health Plan/BCBS Meeting – March 31 –Met with Ginny Klarman from SHP and Judy Poe from BC/BS –Discussed future system functionality and requirements

12. 11 Technical Activities  Scheduled sizing kick-off meeting with process team leads  Gathered data requirements (user analysis, questionnaires, expected volumes, retention and growth)  Analyzed implementation time line and payroll trends  Collected and analyzed legacy system user counts and transaction volume data  Generated and revised performance requirements using sizing models and estimates  Initiated infrastructure design  Defined application security needs, desktop requirements and application bandwidth requirements  Designed high level interface design and TO-BE application architecture

13. Change Management & Communications

14. 13 Leadership Alignment - Activities Set the vision and strategy for the change effort, determine leadership readiness, responsibilities and alignment required to facilitate change. Major Activities Establish strategic objectives and set the direction for change Conduct leadership interviews to determine alignment, gaps, and needs Prepare leadership alignment action plans Build agreement among leaders Assign individual accountabilities to leaders to support the vision and change effort Executive leadership alignment workshops Develop leadership feedback process Major Activities Overall Objectives - Build consensus and develop leadership change and communication plans to launch and sustain efforts and set the pace for change. - Launch and sustain leadership visibility and endorsement in change efforts. Implementation Phase Pre-Implementation Phase Develop leadership action plans to drive the change effort Determine specific roles of leaders in change process Deliver Leadership Workshops Develop and deliver leadership communication toolkits Engage key leaders in the change through face to face contact Build consensus and resolve conflicts as they arise Prepare leadership for their role in the implementation Develop Leadership Change Roadmap Assess overall effectiveness of the effort and implement supplemental leadership strategies as needed Conduct Leadership pre-go-live briefings North Carolina HR/Payroll Leadership Alignment Activities

15. 14 Organizational Transition - Activities Major Activities  Conduct change readiness and impact assessments  Assess as-is culture and outline approach for required culture change  Identify implications for change, including enablers and barriers  Identify high level impacts of process and system change Major Activities Develop culture change action plan Define and document current organizational structure Define desired organizational structure Develop workforce transition plans Develop detailed impact assessment down to the role level Document roles and responsibilities for changed and new positions Document competency list and definitions Implement new organizational structure Implement reward and recognition program for desired behaviors Implement workforce transition Job Impact communication and training Conduct post-implementation assessments to measure the effect of the change and make adjustments as needed Overall Objectives - Assess change readiness and define desired culture and behaviors. - Implement work plan activities and measure success through assessments and surveys. - Conduct activities to ease employee transition to new business process and/or roles. Implementation Phase Pre-Implementation Phase Assess the impact of coming changes on the workforce and organization. Understand the current organization, including its culture, leadership and decision making processes. North Carolina HR/Payroll Organizational Transition Activities

16. 15 Communications - Activities Major Activities Assess communication objectives, identify barriers and challenges Conduct stakeholder assessment and analysis Develop theme and brand for transformation Determine key organizational messages Develop preliminary project communications (e.g., announcement) Identify and build communication network Major Activities Create detailed communication strategy/plan Design and implement feedback mechanisms/tools Establish communication infrastructure and Change Network Develop communication materials and tools Update and implement communication plan Communicate progress and celebrate successes Assess communication effectiveness and adjust accordingly Overall Objectives Develop a change communication strategy/plan that integrates objectives, target audiences, specific key messages, and appropriate delivery tools/media. Deliver communications to actively involve stakeholders and assess communication plan effectiveness. Implementation Phase Pre-Implementation Phase Fully understand stakeholders and their communication needs. Identify Change Network. Assess current communication environment to identify gaps/needs, and develop initial project communications. North Carolina HR/Payroll Communication Activities

17. 16 Capability Transfer - Activities Major Activities Develop project team training strategy Identify subject matter experts for training development Major Activities Conduct project team training needs assessments Develop project team training plans Deliver project team training Develop Capability Transfer approach Assess current capabilities and gaps Develop an overall Capability Transfer Plan to eliminate gaps Track implementation of capability transfer plan Overall Objectives Ensure that the appropriate knowledge and skills are transferred to state and agency associates at the right time Implementation Phase Pre- Implementation Phase Project team training needs are identified and planned-for North Carolina HR/Payroll Capability Transfer Activities

18. 17 Project Team Effectiveness - Activities Major Activities Identify and select team members and develop back-fill plan Develop project and team structures, governance model and processes Define project goals and success criteria Prepare on-boarding / kick-off meeting Orient team members and key stakeholders Define project structure, roles and responsibilities Major Activities Develop project team charter Develop Project Charter Develop project team communication process Conduct Project Kickoff meeting Develop project rewards and recognition program Maintain issue resolution and status reporting Develop project team member review process (for state staff) Conduct Quality Assurance review Develop and execute project roll off plan for employees Determine lessons learned Mark key milestones and accomplishments throughout the project and celebrate success along the way Overall Objectives Conduct project implementation kick-off and orient project team members. Perform on-going project management activities, define performance measures, and develop teambuilding and team member rewards strategy. Define project wrap-up activities. Implementation Phase Pre- Implementation Phase Define and kick-off the project and orient project team members and key stakeholders on the objectives, scope, timeline and logistics of the project North Carolina HR/Payroll Project Team Effectiveness Activities

19. 18 End User Training - Activities Major Activities Conduct end-user training assessments Assess existing training resources and facilities to determine leveragability Develop training strategy and plan Identify training tools and vendors Identify subject matter experts for training development Major Activities Create end-user documentation templates Prepare Power User Strategy Design end-user curriculum and develop training content and materials Assess training database environment Training environment set-up Select and on-board trainers (and/or Power Users) Develop and roll out pilot training materials Design training delivery/logistics Test training materials and exercises Conduct training Prepare Post Go-Live Training Support Plan Capture lessons learned and revise training materials as appropriate Develop post-project training plan and materials Overall Objectives Develop a training strategy that encompasses the design, development, and roll-out phases of the training process. Deliver training and gather feedback to maintain effectiveness and applicability. Develop post project training initiatives to address potential gaps. Implementation Phase Pre- Implementation Phase Conduct high level assessments to contribute to the development of the training strategy and prepare for training. North Carolina HR/Payroll End User Training Activities

20. Business Process Improvement

21. 20 Business Process Improvement Proposed Approach/Timeline  Approval received from PSC to go forward with initiatives (March 16 th )  Convene JAD Process owners for BPI workshops – April 6, 2005 - Review and Determine Processes in scope for short term attention - Develop High level milestones and objectives/targets  Present go forward HR initiatives to HR Director’s Meeting – April 15  Present go forward Payroll initiatives to CFO’s in late April  Conclude Pre-Implementation Activities – August/September

22. 21 BPI Met with the following Process Owners:  Plan and Manage HR Programs and PlansGerry Fisher  Design and Maintain Organizational StructureJoe Stroup  Manage Recruiting, Hiring and IntegrationHelen Dickens  Develop and Train WorkforceAnn Cobb  Manage Compensation and ClassificationDuane Hinkle  Maintain Benefits and EnrollmentPani Tademeti  Administer BenefitsPani Tademeti  Monitor Employee Safety & HealthMike Chapman  Manage Employee RelationsDrake Maynard  Manage Employee SeparationBetty Smith Received commitment to proceed with BPI in all processes Next Steps  Educational Session to outline specific tasks, requirements and support – Late April/Early May

23. Open Discussion

24. Action Items Review

25. 24 Upcoming Meetings  April 15 – HR Director Meeting - PDC Commission Room - Peace Street  May 5 – Next PMC Meeting  TBD – CFO Meeting  TBD – CIO Meeting