1. Choosing the Right Implementation Approach for Success in the Cloud One Size Does NOT Fit All Kevin Copithorne, VP Consulting | Talent Management HRIZONS September 18, 2015

3. A Paradigm Shift in Home Entertainment

4. Revolutionized User Experience Quality Programming Disruptive Industry Impact Any Device Subscription- based Simple Setup SaaS HCM TECHNOLOGY

6. Poll 1: What is Your Organization’s Position on SaaS?  Avoid at all costs (on Premise only)  OK as functional point solution (Hybrid)  OK for enterprise applications (Hybrid+)  We mandate it (SaaS only strategy)

7. GETS IN CAR STE P 1 DRIVES TO VIDEO STORE STE P 2 MAKES SELECTION RENTS MOVIE STE P 4 DRIVES HOME STE P 5 WATCHE S (DVD OR VHS) RETURNS TO STORE (Late) STE P 7 STE P 6 STE P 3 PAY LATE FEE STE P 8

8. ©2014 HRIZONS, LLC. All Rights Reserved. 8 So Why Expect the Same Implementation Approach to Work for SaaS?

9. One Size Does Not Fit All Agenda:  Evolution of HCM Technology  Implementations and Gotchas  Five Approaches to Consider  Choosing the Right Approach

10. Evolution of HCM Technology Adapted from Bersin by Deloitte Cloud a.k.a. SaaS SaaS Standalone HR Applications Payroll, Benefits HR Administration Business Function Payroll-Driven Automate and Comply Talent Management Performance Appraisal LMS, Recruiting Applicant Tracking Standalone Applications Succession, Selection Rich Talent Profiles Workforce Redeployment Pay for Performance Integrated Talent Management Employee Profiles Performance Management Succession Planning HR Talent Platforms People Management Career Development Workforce Management Workforce Planning HR Business Platforms WF Analytics & Planning Social and Mobility iHCM in the Cloud Integration with HRMS Automation of Processes Refinement of Processes Reporting and Analytics ASP Mainframe Client Server + + +

11. On Premise vs. SaaS Implementations On Premise HCMSaaS HCM Design approachCustomization Design for long term Configuration (1 code base)* Design for near term Project methodology Believe it when you see it Waterfall – get right the 1 st time See it and believe it (tangible) Agile – iterate until right Time to valueLongerQuicker Cost to implementHigherLower Deployment flexibility All or nothing deploymentFlexible: Pilot --> Full Deployment Post Implementation Slower, more costly fixes Higher pain threshold before CoR Generally larger change impact Costly upgrades & barriers Rapid, lower cost fixes More immediate CoRs Incremental change (i.e., maturity) No cost upgrades, opt-in functions * Some SaaS technologies opening up architecture to 3 rd party extensions

12. Implementation Tendencies and Gotchas TendencyGotcha Transformational changeOver-whelming user base and under- estimating change impact It’s the way we’ve always done itMisaligned requirements, RFPs, project methods Squeaky wheels and HR siloesMissed opportunities & integration Over-estimating team’s capabilityMarginal on project job and day job Deferring to technology vendor/ partner Leading with technology vs. process

13. System Integrator Challenges The HCM Cloud paradigm shift has not been easy on SIs:  Remote/lower cost, lower margin model  New agile, iterative methodology  Tendency to ‘do what you know’ (on prem. methodology)  Reskilling consultants - courses are not enough Make sure your implementation partner has ‘made the shift’!

14. Implementation Approaches for SaaS 5 Approaches to Consider…

15. 1. Proof-of-Concept  To establish a repeatable process (manual or automated) BEFORE full deployment  For broken or net new processes  Good for business cases, requirements validation and risk mitigation

16. 2. Best-of-Breed/Rapid Deployment  Preconfigured ‘best practice’ design deployed quickly, where there is little concern for legacy  For those processes needing quick time-to-value ?

17. 3. Standard  Standard approach for most software vendors  To automate an established, usually standardized process (manual or other automated system)  Assumes client knows what they want and need

18. 4. Process First  Advanced approach to drive process standardization, optimization and/or leading practice process design  For processes with disparate workflows and/or systems (e.g., distributed organizations)

19. 5. Integration First  Comprehensive approach for upstream and downstream process integration, optimization and risk mitigation  For ‘silo-busting’ and rigorous quality requirements (e.g., 6 Sigma)

20. Choosing the Right Approach(es) for SaaS 5 Factors to Consider…

21. Implementation Factors for SaaS  Complexity  HCM Maturity  Risk Tolerance  Readiness

22. Complexity Platform Complexity:  Number of Systems  On-premise, SaaS, Hybrid  Number/Type of Integrations  Languages/Globalization  Licensing Terms/Schedule Process Complexity:  Process Variance  Standardization & Adoption  Number of Sub-processes  Compliance/Regulatory

23. HCM Maturity (by Process) Goal: Triage & Compliance Goal: Consistency & Effectiveness Goal: Efficiency Goal: Optimization & Integration… Goal: Talent-based Advantage

24. Risk Tolerance Continuous Improvement Transformational High Risk Risk of failure: 5 – 10% Risk of failure: 20 – 35% Risk of failure: 35 – 50%+ Incremental Risk of failure: 10 – 20% Change Mgmt. Investment* Implementation Risk 0 5 - 10% 10 – 17.5% 17.5 - 25%+ 0 – 5% * % Project Budget to Add for CM/C SaaS On- Premise Common Implementation Risks  Change Impact on Users  Compressed Schedule  Competing Initiatives  History of Failed Implementations  Resource Gaps (Team, Budget)  Insufficient Motivation for Change

25. People/Team Readiness Strategic Readiness Program Readiness Process Readiness Organizational Readiness Infrastructure Readiness 0 5 5 5 5 5 5 3 3 3 3 3 3 1 1 1 1 1 1 Areas of Greatest Risk Readiness

26. Approach Maturity Levels Cost Time-to- Value Risk Tolerance Change Impact Proof-of-Concept* SurvivingLowRapidLow-MidLow Best-of-Breed/Rapid Surviving- Standardizing Low-Mid Rapid - Moderate Mid-High Standard Standardizing - Automating Mid Rapid- Moderate Low-Mid Process-First AllMid-HighModerateLow-MidMid-High Integration-First Automating - Transforming High Moderate - Longer LowMid-High *Manual or Automated Choosing the Right Implementation Approach

27. Thank You Kevin Copithorne VP Consulting & Services kevin.copithorne@hrizons.com Direct: 612.326.9677 x103 Mobile: 403.966.2510

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