Civil Service Reform

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Civil Service Reform Collective Bargaining

• Systems MigrationFeasibility Study

Presentation to the Customer Advisory
BoardJanuary 27, 2003
2
The Law Key Components

• Collective Bargaining
• Contracts effective 2005
• Civil Service Reform
• Effective in 2004 2005
• Contracting Out
• Provisions effective in 2005

3
Benefits of Reform (1 of 2)

• Modernizes states human resource practices
• Allows for creation of personnel system that is
  fast, fair, flexible, adaptable, and easy to use
• Create s performance-based human resource
  practices
• Streamlines classification system
• Supports performance management
• Permits effective recruitment, hiring, retention,
  and termination of employees
• Reduces the number of job classes

4
Benefits of Reform (2 of 2)

• Streamlines classification system (cont.)
• Gives agencies flexibility to develop and
  deploystaff resources to meet changing business
  needs
• Enhances mobility and career advancement
  opportunities for state employees
• Provides for effective, meaningful collective
  bargaining
• Allows for cost-effective contracting out

5
Payroll/PersonnelComputing System Issues

• The existing system cannot support Civil Service
  Reform and Collective Bargaining
• Systems are unable to support modern human
  resource practices and changing needs of state
  government
• Personnel/payroll systems are complex,
  inadequate, and at risk
• Complexity, cost, and risk of systems increase
  with every modification
• There is a fundamental lack of information on the
  state work force

6
Significant Payroll/Personnel Systems
Modifications
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Feasibility Study Process
Governance, Project Management, and Oversight
Need Assessment
Future Technical Architecture
Alternatives Analysis
Organizational Assessment
Project Management Structure
Cost/Benefit Analysis
Financing Strategy
Risk Management Approach
Feasibility Study/Report
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Feasibility Study

• Direction and Approval by the Enterprise
  Strategies Committee
• Marty Brown, Director, Office of Financial
  Management Chair
• Gene Matt, Director, Department of Personnel
• Wolfgang Opitz, Deputy Director, Office of
  Financial Management Stuart McKee, Director,
  Department of Information Services
• Gary Moore, Director of Labor Relations
• John Charles, Director, Department of Retirement
  Systems
• Martha Choe, Director, Community Trade and
  Economic Delivery
• Rob Fukai, Director, Department of General
  Administration
• Ida Zodrow, Administrator, Health Care Authority

9
Needs AssessmentRequirements Definition

• Interviews managers, legislators,
  andlegislative staff
• Focus groups human resource professionals
• Identified 341 requirements for personnel,leave,
  and payroll systems
• 133 requirements necessary to implement thelaw
  in 03-05 biennium

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Alternatives Considered

• Modification of existing systems
• Replacement of existing systems with asoftware
  package
• Combination of modification and package
  replacement

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Selected AlternativeReplacement with Software
Package

• Rationale
• Meets CSR/CB requirements for 2003-05
• Meets CSR/CB requirements for 2005-07
• Flexibility to meet unidentified requirements
• Permits alternative financing
• Best value
• Most manageable risk
• Positions Washington for the future
• Is consistent with states financial systems
  architecture

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Package Major Features

• Human Resources
• Organizational development
• Compensation
• Incentive management
• Information collaboration

• Personnel
• Training and employee development
• E-Recruiting
• Training and employee development
• Performance management
• Resume process

• Payroll
• E-Pay
• Time and labor
• Attendance management
• Legal reporting

EAS HRMS

• Benefits
• Flexible spending accounts administration
• Employee benefits enrollment
• COBRA and retiree benefit tracking
• Maintenance of benefit plans

• Workforce Analytics
• Work-force cost planning and simulation
• Work-force management
• Balanced scorecard

Employee and Manager Self Service
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Benefits (1 of 2)

• Timely, accurate paychecks
• Reforming civil service
• Implementing effective collective bargaining
• Supporting cost-effective outsourcing
• Improving information for policy and management
  decisions
• Reduction in costs for external systems
• Avoidance of costly disputes

14
Benefits (2 of 2)

• Flexibility to implement legal and business
  improvements
• Streamlining processes
• Savings with employee and manager self-service
• Turnover savings
• Improving morale and productivity of human
  resource professionals

15
Risks of Doing Nothing

• Inaccurate paychecks
• Inability to process salary increases
• Labor disputes
• Litigation
• Continued redundant personnel systems
• Lack of fundamental management informationon
  state workforce
• Lack of fundamental legislative information

16
Costs

• Development 40.7 million
• Financing
• Approximately 10 million through DIS rebate
• Balance through financing

17
Project Governance and Management Structure

• Program governance
• Project governance

18
Project Governance Structure
19
Estimated Timeframe
20
Why Projects Succeed
Strong Executive Sponsorship
Strong Governance Structure
Quality Assurance
SuccessfulProject
Effective Project Management
Proven Technology
Achievable Scope, Schedule, Budget
Change Management
Technical Expertise
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Why Projects Fail
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Risk Management for this Project(1 of 4)

• Strong support from the Governor
• DOP Director as Executive Sponsor
• Support by OFM DIS Directors

Strong Executive Sponsorship

• ISB/DIS oversight
• Governor and Executive sponsorship
• Policy Committee
• Operational Committee
• Stakeholder communications

23
Risk Management for this Project(2 of 4)

• Experienced program manager
• Experienced project manager with systems
  integrator
• Experienced state project director and manager
• Program management office
• Project management office

Effective Project Management

• Governor and Executive sponsorship
• Policy Committee
• Operational Committee
• Agency representation on project team
• Organizational Change Management Program

24
Risk Management for this Project(3 of 4)

• Experienced, successful systems integrator

Technical Expertise

• Phasing of project
• Fixed-priced, deliverable-based contract with
  systems integrator
• Strong integrator project management and state
  project management
• Schedule and budget contingency
• Benchmarking with successful projects

25
Risk Management for this Project(4 of 4)

• Use of commercially available software with a
  track record

Proven Technology

• Independent quality assurance

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Next Steps

• Select quality assurance provider
• Secure package selection consultant
• Refine information requirements and issue RFP
• Select system integrator/package
• Obtain legislative authorization
• Begin implementation

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Conclusion

• We have a clear, strong business mandate
• We have a good solution
• We have sound governance, project management, and
  risk management approaches

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Role of State IT Organizations

• Advise your departments of CSR/CB System
• Assess impacts on your departments
• Identify opportunities for your departments
• Ensure your departments active involvement in
  upcoming work
• Assist in adopting and enterprise-wide view on
  systems of this nature

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Personnel/Payroll System 1977
Personnel/Payroll Core Systems
PAYROLL
PERSONNEL
Personnel/Payroll Data Sources
POSITION CONTROL
EMPLOYEE/ APPOINTMENT
AGENCY PAY MASTER
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Personnel/Payroll System 2003
Personnel/Payroll Core Systems
JOB APPLICATIONS
TRAINING
INSURANCE
PAYROLL
HR INFO
Data Sources
TRAINING PROFILE
INSURANCE CARRIER
TRAINING COURSES
TRAINING REGISTRATION

EMPLOYMENT APPLICATION
INSURANCE ELIGIBILITY

PERSON
JOB CLASSIFICATION
INSURANCE ACCOUNTING

PAYROLL APPOINTMENT
JOB BULLETIN
POSITION CONTROL

SUBSCRIBER DEPENDENT

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Human Resource System Overview