The payroll & time journey at HPSam HarperGlobal Director of Information Technology,Hewlett-Packard Enterprise
A four-year transformation, FY13 - FY17
Aim: More relevant, enable much larger business outcomes, drive shareholder value for HP
7.5KTotal
Testers
159KSIT
Test Cases
135KUAT
Test Cases
19MBatchJobs
2.6KApps
Dispositioned
21KResolved Defects
8 PBNew
Storage
436 Mock
Cutovers
12KE2E
Test Cases
5.2KHC Capacity
Created
2.6KReleases
1.2KGo
Lives
74KInterfaces
4KProject
Milestones
560Project Plans
2.5KLinked
Dependencies
9.5Months
• Largest and most complex business separation in history
• Successful execution has enabled HP to create a customer facing divestiture and separation go-to-market practice
Record Setting Pace
Requirements 34 Days
Design 41 Days
Build 69 Days
Test 104 Days
Go Live 67 Days
Unprecedented scale/scope/timeline: IT impact
Internal Experience
100KSharePoint
Sites
6KNew Servers
Built
32.9KServersRe-IP’d
375.5KEmail
Accounts
EMEA~82,000 Employees
8 In-House apps23 ASP/OS30 Desktop
2013 payroll landscape
Americas~121,000 Employees
9 In-House apps 5 ASP/OS7 Desktop
19 Countries 60 CountriesArgentinaBrazil
CanadaCosta Rica
Mexico +*wbPuerto Rico
US LA/CN *di
ChileColombiaPanama
PeruVenezuela
DenmarkFrance *dw
GBR/IRL *wbGreece
NetherlandsPoland (2)GREP *di
GLOBAL SUMMARY (as of Apr 30, 2013)97 Countries /99 platforms for Payroll and T&L• ~297K Employees• ~50% PeopleSoft coverage (9 countries, 5 instances)• 26 applications , ~80% In-House coverage (27 countries)• 32 ASP/OS, 19% ASP/Outsourced coverage (40 countries)• 41 Desktop apps, 1% Desktop coverage (30 countries)
*wb = portal*dw = data warehouse*di = data integrator
APL~94,000 Employees 9 In-House apps
4 ASP/OS4 Desktop
18 CountrieseApproval
ePayslip *wbKoreaGPayChina
Hong KongTaiwanIndia (2)
IndiaIndonesiaPhilippinesThailand
25 countries live on ADP payroll and 25 live on ADP eTimeFY12 – FY13 Start
FY13 go-liveFY14 Start
FY14 – FY15 go-liveCanada Brazil MexicoPuerto Rico Spain Denmark*Korea Thailand FranceChina Singapore Norway*Hong Kong Slovakia RomaniaTaiwan Netherlands ChinaPoland Australia Hong KongSwitzerland Indonesia* TaiwanRomania New Zealand VenezuelaAustralia Ireland SwitzerlandNew Zealand United KingdomCzech Republic Venezuela*Italy Poland
Germany
* Streamline Implementation
Addressing operational risks and complexitiesCategory Descriptions Examples ImpactCompliance RisksPenalties and interest
• Statutory compliance risks• Accuracy risks• Reputational risks
China, Hong Kong, Taiwan, Switzerland, Australia, Romania, Costa Rica, Canada, Germany, UK
• Penalties and interest for non-compliance• Increased external audits• WC escalations• Public relations risks
ScalabilityIncreased cost of $X M per integration; business risk (revenue/costs)
• Ability to add new populations• Ability to support new T&Cs
UK, Ireland, Australia, New Zealand, Philippines, India, Canada, Germany
• Inability to support MADO in core countries• Increased costs and complexity to support
Stability/CapabilityTCEQuality ImpactBenchmark
• Platform & vendor stability• Ability to rollout new features
• 500+ SR’s globally• Inconsistent capability worldwide• Bulgaria, Turkey, Costa Rica, Slovakia,
Philippines
• Inability to rollout new global programs (ESPP)• High risk to accuracy of payroll• Excessive manual intervention• Costly innovation and MOC
Domain expertise$4.2M annually in replacements costs (recruiting and efficiency losses)
• Retention and development of payroll domain expertise
• Nordic countries• UK turnover• APJ bench strength• SSC turnover• Contingent workers• IT availability • DR/BCP planning
• Inability to complete payroll processes • Trade-off decisions on equally important
priorities in the business• Inefficient leverage of FO/BO models• No cross country leverage of resources
Cost ControlsHigher recurring costs annually
• Inability to leverage common platforms / scale
• Excessive change controls costs• Limited FO/BO efficiencies
• 99 different environments used for 97 countries
• Lack scale in ability to negotiate rates• EMEA inefficient in FO/BO
• Higher costs to HP • Unpredictable costs for changes• Inadequate ability to leverage FO/BO model
Risk mitigation decisionCategory Outsource to ADP Compliance RisksPenalties and interest
• Vendor accountability• Vendor shares risk
ScalabilityIncreased cost of $X M per integration; business risk (revenue/costs)
• Scalability across platform for major/minor mkts• Migration path to new offerings
Stability/CapabilityTCEQuality ImpactBenchmark
• Full DR & BCP & SLA’s• Dedicated resources• Focused R&D investment• Higher domain expertise
Domain expertise$4.2M annually in replacements costs (recruiting and efficiency losses)
• Supplements FO and IT expertise• Focused compliance resources• Migration path to new offerings
Cost ControlsHigher recurring costs annually
• Common platforms based on size of country• Negotiated rates• Efficiency and SSC gains
Also considered:• In-house• Baseline & tactical
Future Payroll Operations and ServicesBest in Class will be achieved by payroll services and provision of continuous improvements in line with our customer’s expectations.
Payroll Back Office (off shore, near shore)required to focus resources to handle payroll services and improvements. This and transition of front office services will provide bulk of payroll savings.
Payroll roadmap focus area - OperationsGlobal payroll comprises both payroll operations services as well as global payroll transformation program
Global Payroll Transformation Program
Transformation to ADP provides system standardization and platform for Best in Class payroll services.
Current Payroll Operations
Synergies of aligning payroll & time• More efficient/effective use of resources
• Using a single vendor (ADP) ensures tighter integration and accountability
• Governance more streamlined
• Requirements gathering more efficient with same ADP Blueprint process
• Reduces risks associated with building interim interfaces between legacy and go-forward assets
• MOC can be streamlined to a single change event for each country
• In country efficiencies and shared models realized earlier
next steps: Outstanding
Customer Service + Great or Good
Technology