HR Leaders Toolkit - preparing the case - Ceridian

HR Leaders’ Toolkit: Preparing the case Thursday 15th May 2014

Nick Laird & Shaun Dunphy © Ceridian Corporation. All rights reserved.

1 Getting the basics right 2 Finding out what matters 3 Exploring options 4 Evaluating impact 5 Making the case for change

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Who We Are

170+ (2013)

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25,000,000,000

The Buying Equation

Opportunity x Confidence

>> 1 Risk

Š New World Value Creation

x

Pain

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The Value of Probability

Easy Life

Option

Daydream

Maximum Benefit

10

60

100

Chance

100%

80%

10%

Expected Benefit

10

48

10

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Where do I start?

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What do I look for?

Process failure

Unwanted attrition

Complaints

Business strategy

Cost control

Employee engagement

Decision makers Š Ceridian Corporation. All rights reserved.

What are my realistic options?

Make your own

• Core to your business • Skills • Capacity

Buy standard

• “Best practice” available • Fits your business

Buy bespoke

• Highly specific requirements • Budget available • Can be adapted/maintained

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How do I select the best option?

Opportunity x Confidence

>> 1 Risk

x

Pain

Viability Buying equation > 1

Benefits realisation Quantifiable with commensurate risk

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Evaluation criteria Best fit / best score

A real business case example Trigger experienced: Stakeholders needed: Stakeholder feedback

Desired outcome

Options

Evaluated

Poor data integrity – too many §û A single source of the truth for systems, MI Options identified: manual rekeying of data, HR data not trusted The immediateand problem: §1. Self-service workflow automation, Do nothing?

Quantified risks anddecision issues led to only options 2 for management making especially timesheets 1.

The coreconsidered HR Information System was out of and 3 being viable.

2.

Replace what we have today with an paper, û High overheads – local administration, support § Cost recovery to projects (invoicing) integrated (installed or SaaS)?

Built financial solution benefits model based on: labour-intensive, significant rework 2.

It could not be reconfigured cope with an §3. Clearer organisation structure to Extend option 2 functionality to include for ü Impact on resources û Inhibited growth – support isn’t scalable acqusition timesheets, expenses and comp review? planned business strategy § Move away from expensive bespoke systems ü Impact on internal IS/IT just built for‘best us of breed’ targeted solutions 4.

Implement û Compliance challenges – difficult to answer ü Impact on service delivery customer RFPs -view Heath, §5. Simpler aligned of Safety, talent –Diversity, through Find a transactional HR & Payroll managed ü recruitment, Enabler of business growth Qualified Skills development and succession service provider planning

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Board decision § Standardise, do things one way only § Integrate – one source of the truth for decision-making § Don’t build bespoke solutions for non-core work § Enable us to grow without additional back-office resources § Improved collaboration across the business § Future-proof by going SaaS/Cloud rather than installed

ü Improved revenue flow ü Reduced operational overheads ü Reduced risk profile ü Creates organisation agility

ü Total up-front investment £0.5m ü Break-even in year 2 ü Total Cost of Ownership £3m less than “do nothing” option

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How do I sell it to my board?

A good business case explains: • The objective of the investment § Current situation, issues, business need § The challenge, stakeholder perspectives § Anticipated outcomes

• The options explored § § § §

Options considered Viable options selection Cost models over three/five years Preferred option

• Risks and issues • What would happen if you did nothing?

• A clear recommendation supported by: ü ü ü ü

Cost benefit analysis Impact on the workforce Impact on business strategy How we will track the benefits

What should I do next?

• What is inhibiting our success?

• How will our business change in the future?

• What would make the biggest difference to you?

Engage key decision makers Describe outcomes

• How will things be different?

• How does this help our business?

• What will it solve?

• Is “do nothing” an option?

• What is the lowest risk option?

• What is the highest risk option?

Explore options

• Hard benefits – cost savings (IT, people, simplified processes, TCO) • Soft benefits – cash saved through reduced errors, customer experience)

Evaluate best option(s)

• Return on Investment • Pay back period • Risks / Recommendations © Ceridian Corporation. All rights reserved.

Recommend actions

Nick Laird @laird_nick nick.laird@ceridian.com Chief Commercial Officer

Shaun Dunphy @shaundunphy shaun.dunphy@ceridian.com Principal Solutions Consultant

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Supporting slides

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Key elements of vendor selection Engage the appropriate stakeholders Agree the scope of what you want •Essential requirements •Desirable requirements

Document the requirements •Concentrate on the ‘what’, not ‘how’ •Where possible describe the ‘what’ in terms of outcomes •Leave the vendor to propose the ‘how’ – they are the experts

Establish evaluation criteria •How will you know ‘good’ when you see it?

•How will you achieve a consensus view •What are the most important test scenarios you want to observe?

Scan the market •If uncertain then engage an independent advisor to help you •Send out an RFI if unsure of vendor capabilities

Either list potential vendors or talk to your trusted supplier Ask them to respond formally to your requirements (i.e. RFP/ITT) Evaluate response Ask shortlisted vendor(s) to demonstrate their solution against your scenarios Re-evaluate based on what you have learned Enter into contract negotiations with preferred supplier © Ceridian Corporation. All rights reserved.