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Project Plan

Implementation of an Integrated Human Resource System

 

 

1      Project Title

There is a trend within the HR community toward consolidating as many software applications as possible under one vendor. As such, companies have focused on Enterprise Related Planning (ERP) solutions to develop integrated suites that allow HR departments to track an employee’s entire lifecycle within an organisation. This Project Plan provides for establishing the Human Resource ERP Systems Requirements in our sample Medium to Large Size Company called SAMPLE COMPANY. This project plan uses plain and un-ambiguous terms, such that it can be used as a reference for all stakeholders. This document outlines the Project Planning elements necessary for Integrating ERP Human Resource/Payroll Systems in Medium to Large Size Companies. These are a few key points about ERP projects

 a) On average the project life cycle takes from 6 to 14 months from Start to Go Live.

b) 30% of projects are never completed.

c) 35% of projects missed time, budget or functional goals.

d) Only 30% of new system capabilities are utilised.

As the acquisition of a new HR/Payroll system is a major corporate project it is very important to structure the project for success. A formal process needs to be developed to identify organisation's needs. This includes the identification of current processes, resources, and costs.

 

1.1    Project Initiation

SAMPLE COMPANY currently employs 2,600 people in the areas of Management, Administration, Marketing, Sales, After-Sales Support, Research & Development, Production, Maintenance, and Catering. Human resource master-file information is held on the payroll system. A history of payroll information relating to payments and deductions is held on this system. SAMPLE COMPANY's existing payroll system was designed to pay staff. It was not designed to keep a history of employee records or provide enterprise-wide human resources functionality.  Data of all personnel related activity is held on stand-alone systems. The existing payroll has served SAMPLE COMPANY well for 16 years. SAMPLE COMPANY has expanded its operation to four sites and has quadrupled its workforce.  SAMPLE COMPANY now operate work schedules on the basis of flextime, compressed work weeks and staggered shifts to provide 24 hours service each day of the week, whereas only one shift existed originally. This growth has resulted in an increasing number of departments developing their own data base solutions to meet their day-to-day HR management needs. Employee data on these systems is often inconsistent and grouped in various formats. These stand-alone systems have limited integration potential and pose significant data integrity and security risks. Excessive time is required to collate the data for corporate reporting and decision making purposes.  Existing software doesn’t integrate well with our other systems and SAMPLE COMPANY is drowning in double and treble entry. SAMPLE COMPANY's current payroll and HR systems struggle to keep pace with ever-changing requirements and are no longer fit for purpose. SAMPLE COMPANY now wishes to put in place a system to improve productivity and efficiency of the HR process.

The HR/Payroll Integration project is a major initiative to replace SAMPLE COMPANY's existing payroll system and implement a modern human resources and payroll system. This project impacts every employee. An integrated HR and payroll system is to hold all information about an employee’s journey from appointment to retirement. The HR/Payroll system is to pay employees and provides information for strategic and operational management.

For anyone who is setting out to buy their first human resource management information system, remember that is not quite like buying a word processing package for the Payroll department. The cost of the project does not start and end with the purchase of the software with the CD ROM and user manual. Buying an application, even like a word processing package for a single department, probably has gone through a small sample of what an HRMS project will include. They will have found out what the basic requirements for the end users will be and they will have found out what the company policy is on buying software. No sense buying Word Perfect if the company insists everyone use Microsoft Word.

Purchasing integrated HR and Payroll software is very much like this however the overall impact on the company can be substantial, therefore the time and care taken to buy the “right” application for your organisation is even more critical.

For many, the concern is the true cost of implementing the new application, once the software is paid for. But before we get to that it’s very important to keep in mind that a company should have made a significant investment in the project before buying the software. The time and effort spent on clearly identifying the needs, costs and benefits of your organisation before making a vendor selection will determine to a large degree just how successful you are in implementing your new application and meeting your objectives of keeping costs under control.

 

1.1.1      Project Charter

This charter gives some basic guidelines on how to structure this project to ensure a high degree of satisfaction with the resulting decisions.

a) Plan the steps that must be taken to identify requirements, goals, objectives, and costs. We do not focus on products until we have a clear statement of requirement. Resist the urge to look at the vendors recommended by others.

c) Make use of consulting expertise where the company lacks the skills to complete difficult analysis, and to have an external validation of our findings.

d) Ensure that SAMPLE COMPANY have an executive sponsor and support from the top in the form of a steering committee composed of senior management representatives. These representatives ensure that strategic decisions are dealt with in a timely manner and that the project is kept on track.

This Project Charter is to be put before a steering Group established by the project Sponsor on 15/02/2019. This Charter gives authority to commence project planning for “Implementation of an Enterprise Resource Planning System at SAMPLE COMPANY”.  

Goal

The over-riding Goal is to Improve Organisational Efficiency. The purpose of the project is to (a) Reduce Processing Time (b) Produce Timely Reports (c) Reduce Paper Flow (d) Enhance Employee Support (e) Adapt to Changing Needs (f) Increase Productivity

Stakeholders

The primary stakeholders are The Management Teams, The ERP Suppliers, Departmental Managers, and the Project Implementation Team. The secondary project stakeholders are Employees, Insurance/Taxation Statutory Bodies, Banks, Trade Unions, and other Payroll Partners e.g. Health Insurers, Credit Unions, Pension Funds etc.

Budget & Funding

The estimated project costs as per the project plan are:

Payroll       Non-Pay  Total
€ 280,000 € 340,000 € 620,000

The project is funded from current expenditure. This is exclusive of the costs of internal plant and machinery, heat power and light and use of equipment. The “Success Framework” analyzes the metrics that drive a return on this investment.

Timescale

This project is to last for a period of fourteen months from February 2019 to March 2020, with go-live scheduled to begin from 1st January 2020. The project is broken down into phases:

1. Establish Business Requirements 2. Vendor Selection
3. Business Process Reengineering 4.  Assess Business Readiness
5. Software Set-up      6. Training
7. System Integration   8. Cutover-Transition to new System
9. Go Live Support and Maintenance  

Resource Requirements

The Project resource requirements to complete the project are:

1. Project Steering Group

2. User Group

3. Two HR Resources

4. Two Finance Resources

5. One Information Technology Resource

6. One Project Manager

7. Vendor

Project Steering Group

Project Steering Group is made up of members of the Management Team, and meets once monthly. This Group is chaired by the Director of H.R.   

The Project Manager is ultimately responsible for the successful implementation of the Project.  The responsibility of the Steering Group is:

           To drive through the changes necessary to enable implementation of system.

           To ensure adequate resourcing of the project.

           To agree support and ensure successful implementation of work plans.

           To provide a forum for escalation and resolution of any issues affecting implementation of the system.

           Review and approve change requests and additional risks affecting time, cost or project quality. 

           To sign-off acceptance of project stages.

           To ensure that the direction and quality of the project are maintained through implementation of clear training and communication strategies.

User Group

The User Group is made up of representatives from each service area of SAMPLE COMPANY, and is chaired by the Project Manager. The UAG meet every 6 weeks, for approximately one hour. This Group will provide specialist support for maximising the utilisation of the system. Their responsibility is primarily as a Quality Assurance role in validating the deliverables from the project, e.g. Conceptual Design Stage, Change Management and Business functionality. Their specific responsibilities are to:

           Reports to the Project Steering Group.

           Promote the new system internally in order to maximise user take-up and confidence, through establishing local review groups to examine and address issues supported by a Change Management process.

           Act as ambassadors for the system – identifying and supporting users.

           Review and revise business processes and procedures.

           Provide support to the Implementation Team in introducing the system.

           Review the detailed design of the system.

           Assist in the design and execution of acceptance testing.

           Assist in the design, approval and adaptation of the corporate training program.

Signed

_______________________________

(Project Sponsor)                                                                    Date:_________________

1.1.2      Project Scope

 The overall goal of this project is to replace the current mainframe Payroll system and enhance and streamline data and business processes within the overall human resources function.

Functional Scope

The functional scope of the project begins with nine functional capabilities that are further divided into a series of business processes. This exercise will be undertaken as part of the Product Work Inputs under Document "to be" HR functionality and outlined in the Request for Proposal (RFP). Together the functional capabilities and business processes define the business scope. The functional capabilities are:

Organisation Management:
• Creation and maintenance of positions
• Employee Personal Information
• Company Information
  Demographic info
Employee tracking

Employee Performance & Development:
• Tracking required courses by title
• Tracking of trainers, equipment and facilities
• Review analysis
• Performance review reminders
• Disciplinary action tracking

Recruitment:
• Open position tracking
• Internal applicants
• External online applicants

Payroll:
• Benefit deductions to payroll
• Third party vendor reporting
• Job and pay history and analysis
• Salary survey analysis

Attendance/Leave:
• Support requirements for different leave types.
• Calculation of sick, vacation
• Tracking and monitoring of sick/vacation
• Pay period and annual reporting of balances to staff
• Management of any maximum accrual, or carryover
• Leave scheduling
• Sick leave usage analysis

Employee and Manager Self Service:
• Support employee self-services
 Employee vacation request with manager approval

Reporting:
• Ad hoc reporting
• Standard reports

• Report writing capability

System Scope

All systems currently linked with payroll and not integrated with the HRIS will need to be interfaced with HRIS. All the decisions to include or exclude functions from the project scope will be recommended to and approved by the project sponsor.

Technical Scope

The technical scope will largely depend on the system chosen. Include the following queries in the RFP.

 Define the base technical environment for the new application - networked client/server, or mainframe.

Define the operating system. Does it need to run on -- Windows NT, UNIX, etc.? 

How will it connect to remote offices?

Does it make a difference what language the application is programmed in such as SQL, Java, C++, JavaScript etc.?

 

1.1.3      Success Framework

The basis for succeeding with this project is through satisfying the success criteria. The critical success factors are represented in the middle of the “Theoretical Success Framework” diagram, representing their relationship to achieving both project and product objectives and their influence on satisfying the success criteria. The objectives, the success factors and the success criteria were agreed on during a number of brainstorming sessions with The Management Teams, The ERP Suppliers, Departmental Managers, and the Project Implementation Team. When identifying organisation's needs:

a) Involve key management personnel. Ask each manager his or her 3 to 6 Critical Success Factors for managing to get a perspective of how important HR/Pay information is.

b) Involve line managers, they are the true users of a corporate HR/Payroll system.

c) Involve payroll and human resource members with expertise in the functional areas of the enterprise.

When you identify your current “as is” processes resources and costs:

a) Document current workflow, paper forms and reports.

b) Identify current resources.

i) Estimate Staff costs to support the current systems.

ii) Record current licensing fees and maintenance fees.

iii) Determine current Hardware costs.

Success Framework

1.1.3.1 Logistics Resources

The supporting resources required for the detailed organisation and implementation of a complex project are often neglected at the outset and the stable door is only shut after the horse has bolted. The business requirements are the specifications that describe the functions that the Integrated Human Resource System is expected to provide and are established as outlined at 1.2.1.4 Document "to be" HR functionality. The Request for Proposal RFP involves a structured evaluation of the "to be" HR functionality with specific deadlines and processes. The RFP for Sample Company is contained in a separate document. The process for the selection of Project Logistic Resources is the first order of business that best meet these requirements.

Logistic Resources Selection

When determining requirements for the purposes of identifying the “best fit”, consider:

a) Technical architecture:

• PC/LAN/WAN

• Client Server

• Mainframe

• Web applications

b) Staffing

c) Cash flow and budget

d) Office Location

e) Kit out requirements

 

1.1.3.2     Project Outputs

A HRIS project should identify the cost savings while identifying the projected costs of the new system. Some items to consider:

a) Elimination of redundant duplicate data collection. This is one of the key cost benefits of an integrated HR/Payroll system in comparison to separate HRIS and Payroll systems.

b) Wages and benefit costs to support the new procedures in comparison with the old system.

c) System and processing costs. Labour required for distribution. Significant report generation costs savings are being found by moving reports to a corporate Intranet and eliminating forms and other paper costs.

Some actual examples of Cost Savings identified in payroll applications associated with new HRIS:

a) Reduced cost per payment.

b) Reduced labour in producing manual payments.

c) Reduced cost in reconciling manual payment.

d) Eliminate manual entry of sick and vacation accruals.

e) Reduced labour in data entry.

There are many examples of what can be identified both in Payroll and in HR functions as well as “soft” savings:

a) Management supplied with accurate and timely data for decision making:

i) Staffing

ii) Salary budgeting

iii) Employee development/succession planning

iv) Attrition rates

v) Cost per hire

b) Increased data reliability through single point of data entry and verification.

c) Improved employee satisfaction through ability to easily access data.

d) Improve employee morale through an accurate and timely payroll process.

e) Allow managers more time to manage the business instead of chasing after payroll related problems.

The product objectives and the project management objectives are to:

●Streamline Business Processes
Eliminate Duplication
Automate Routing and Approvals
●Maintain Quality HR Data

●Standardise Reporting Requirements
●Process Data Promptly
●Predefine Work Schedules
●Manage Unplanned Absence
●Allow On-line Enquiry Access
●Allow for Future Enhancements
●Deliver Within Timeframe
●Operate Within Budget

 

1.1.3.3     Critical Success Factors

The critical success factors will be checked monthly. The critical success factors are:

   Top management support
  Project team competence
   Interdepartmental co-operation 
   Clear goals and objectives
   Project management
   Interdepartmental communication
   Management of expectations 
   Project champion
   Vendor support 
   Careful package selection
   Data analysis and conversion 
   Minimal customization
   Steering committee
   User training
   Business Processes Re-engineering
   Education on new business processes

1.1.3.4     Success Criteria

Before documenting your requirements, consider what the future will bring. Will the company business stay the same, will there be new demands? Consider new strategies, including new technology and methodology:

a) Web enablement, corporate internet/intranet applications, as well as scanning and imaging.

b) Re-engineering your business practices, especially those associated with the systems you are looking at (HR and Payroll).

d) Will SAMPLE COMPANY be doing business in a global economy?

e) What will SAMPLE COMPANY’s organisation structure be like in two to five years?

f) What technical skills will be required in a changing workforce? The criteria as set out in the table below have been drawn up by the stakeholders to measure the success of the project based on the project outputs. The units of measurements will be taken each quarter after go live for the 1st year to determine the success rate against the measurements as set out.

 

 Success Criteria

Success Criteria Specification

Time Base

Streamline Business Processes

Reduction in Processes

end July 2020

Eliminate Duplication

Reduction in duplicate entries

end July 2020

Automate Alerts

Reduction in Processing time

end July 2020

Maintain Quality HR Data

No. of payroll errors                      

end July 2020

Standardise Reporting

Reduction in No of ad hoc reports

end July 2020

Process Data Promptly

Reduction in Processing time

end July 2020

Predefine Work Schedules

Reduction in entries

end July 2020

Manage Unplanned Absence

Reduction in Unplanned Absence

end July 2020

Allow On line Enquiry Access

Reduction in HR/Payroll enquiries

end July 2020

Allow for Future Enhancements

No. of enhancements developed

end July 2020

Deliver within Time-frame

The Completion Date

11th March, 2020

Operate within budget

The cost of the Project

Apr-12 2020

End of Preview

The remainder of this project implementation plan will be made available to those that book a place on the upcoming HRMS/HRIS demonstration & briefing session. This plan inclusive of supporting Microsoft Project File and Request for Proposal can be purchased from BPPM from the Checkout page.

 

 

 

 


 
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