OVERVIEW. Customers ORGANIZATIONS SYSTEM USERS

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VERVIEW

People First is the State of Florida’s self-service, secure, web-based human resource information system and enterprise-wide suite of human resource services. The State of Florida contracts with NorthgateArinso to manage the People First system, as well as serve customers through two service centers.

The Department of Management Services

People

First Team

serves as the Contract Manager. Our mission is designing and supporting a user friendly, reliable, online human resource system and related services.

Services

 Attendance and Leave

 Benefits Administration

 Data Warehouse

 Human Resource Management

 Organizational Management

 Payroll Preparation

 Staffing (Hiring and Recruiting) Statutory Authority

 Chapter 2001-254, Laws of Florida, Section 49 (Senate Bill 2002) – authorizes the DMS to submit a plan for the outsourcing of HR services and to contract with a service pro-vider for HR services.

 Section 110.116, F.S. – requires the DMS to establish and maintain a personnel infor-mation system. The Department may also contract with a vendor to provide the per-sonnel information system.

 Sections 215.93-94, F.S. – directs the De-partment to be the functional owner of the system.

 Section 287.05721(2), F.S. – defines “outsourcing.”

 Section 287.057(15), F.S. – contract man-ager must be designated for each contrac-tual services contract.

Customers

(Data as of 11/30/2010)

Benefits of People First

 Comprehensive Offering of HR Services: At-tendance and leave, benefits administration, data warehouse, human resource manage-ment, organizational managemanage-ment, payroll preparation, and staffing (hiring and recruit-ing).

 State-of-the-Art Technology: Built on the latest SAP ECC 6.0 HR software and Net Weaver infrastructure.

 Employee Self Service and Manager Self Ser-vice Functionality: Web-based, 24/7 access.

 System Fully Integrated with State Payroll Systems & Insurance Carriers.

ORGANIZATIONS SYSTEM USERS

State Agencies (33) 132,211

Universities (11) 44,366

Retirees 55,944

COBRA 1,684

Florida Board of Bar Examiners 44

Inland Navigation 9

Layoff 925

Legislative Staff/Legislature 1,847 Life Waiver for Non-Retiree 184

Miami-Dade Expressway 48

Orlando - Orange County Expressway 55 State Board of Administration 219

Surviving Spouse 3,968

Tri-Rail 107

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Roles & Responsibilities

Contract Management

 Ensures vendor compliance with state and federal policies, procedures, statutes, and rules.

 Ensures effective implementation and compliance of the contract, amendments, security requirements and performance metrics.

 Monitors service center performance to ensure accuracy of information provided, determine training or process improve-ment needs, and investigates concerns and complaints.

Procurement and Strategic Planning

 Oversees the procurement process which includes bid development, vendor selec-tion, and contract negotiations.

 Researches best practices, reviews lessons learned, analyzes trends, defines strengths and weaknesses of the current contract, and proactively plans for future success.

System and Data Warehouse Design

 Improves system performance and user satisfaction by developing business re-quirements and implementing enhance-ments to the system.

 Provides support and issue resolution to customers and timely communication to all stakeholders.

 Coordinates, develops, and facilitates training for user groups in a variety of me-diums.

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ONTRACT

Key Milestones

 August 21, 2002 - Contract signed with Conver-gys.

 July 14, 2004 - Amendment 6 signed to extend the contract 2 years to August 2011.

 May 28, 2008 - Amendment 10 signed (intellectual property, 135 system enhance-ments).

 December 8, 2009 - Contract renewal signed to extend the contract 5 years ($45 million cost savings).

 June 1, 2010 - Convergys finalizes sale of its hu-man resources hu-management line of business to NorthgateArinso (NGA).

 July 19, 2010 - Major System Upgrade (SAP).

 August 20, 2016 - Contract Expires. Budget

 Original Contract Payment: $3,679,452/ month, $44,153,424/annually.

 New Payment as of January 1, 2010: payment schedule shown below.

 Fees for FY 2010/11 will generate $44,476,964 to fund HRM and the People First contract, as follows:

Cost per Employee

Renewal Contract Payment & Annual Savings FTE (full-service users) $355.68 County Health Departments $251.05 Justice Administrative Commission $251.05 State Courts System $217.36

OPS $114.54 Date Renewal Payment Savings 1/1/10 – 6/30/10 $20,201,712.00 $1,875,000.00 7/1/10 – 6/30/11 $39,903,424.02 $4,249,999.98 7/1/11 – 6/30/12 $38,195,090.22 $5,958,333.78 7/1/12 – 6/30/13 $36,539,863.62 $7,613,560.38 7/1/13 – 8/20/16 $113,301,850.96 $25,303,105.88 Totals $248,141,940.82 $45,000,000.02 Performance Metrics

There are 29 performance metrics in place to track NGA’s success in maintaining the People First system and managing the two service cen-ters. NGA provides a Performance Metrics Sum-mary report to the Department on a monthly basis. The DMS People First team audits the per-formance metrics monthly to ensure accuracy. NorthgateArinso

 A privately held company headquartered in Hemel Hempstead, United Kingdom – its American headquarters in Norcross, GA.

 One of the five largest HR service provid-ers worldwide with offices in 31 coun-tries on five continents.

 5,000 employees.

 Serves approximately 1,000 customers, which includes more than 20% of the Global Fortune 500.

 Over 800 ERP-based HR implementations globally – presence in 70 countries.

 Largest SAP HCM consultancy practice globally with more than 1,500 experi-enced SAP HCM consultants.

Subcontractors

 Hiring solution is hosted by PeopleClick Authoria Corporation (Waltham, MA). Data housed in Houston, TX.

 Flexible spending account processing is managed by Fringe Benefits Manage-ment Corporation, a Division of Wage-Works, Inc. (Tallahassee, FL).

 Employee assistance program services are through Horizon Health / Aetna (Hartford, CT).

 Mail room and printing services per-formed by Xerox (Norwalk, CT).

 Lockbox services are performed by Wa-chovia Bank / Wells Fargo (Orlando, FL).

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CCOMPLISHMENTS

Amendment 10 - (signed 5/28/2008)

Intellectual Property: Gives the state license to use and modify the People First system, all intellectual property, and associated documentation.

Transition Planning: Allows the state to use the license at the beginning of the transition process, extends the length of time given to transition and gives the state the ability to consult with NGA dur-ing transition.

System Enhancements & Upgrades: Includes 135 system enhancements, significant improvements in the core human resource functions of the system, and upgrades the SAP and Oracle software to latest release versions.

Security: Increases security of the People First sys-tem by enhancing the audit trail, requiring stringent background checks, and increasing password secu-rity requirements.

Contract Cost: Results in no change to the monthly payments to NGA. The state obtains the ability to use the intellectual property (thus not having to build a new system) which has an estimated value of $50 - $100 million.

Legacy Systems

The implementation of People First enabled the state to replace the following legacy systems:

People First Function Replaced Systems Staffing Administration JobsDIRECT Human Resource

Administra-tion & Payroll AdministraAdministra-tion

COPES_HR COPESview COPESDIRECT TimeDIRECT Training Administration TrainingDIRECT Benefits Administration DSGI Systems

Contract Renewal - (signed 12/8/2009)

Reduced Contract Cost: Reduces contract cost by $45 million over the life of the contract.

Improved Performance Metrics: Provides stronger and more stringent performance standards (e.g., higher percentage, less time to complete, stronger definition, etc.).

Greater Accountability & Transparency: Requires all plans (e.g., training, interface, security) to be maintained and updated as needed; requires NGA to document and update all service center proc-esses, and requires level II security background checks for ALL NGA employees, individual contrac-tors and subcontraccontrac-tors.

New System Enhancements: Includes 22 new sys-tem enhancements; such as, a new medical reim-bursement account debit card, recruiting enhance-ments to the staffing solution, and tools to manage employee performance.

Self-Service Functionality

The system allows employees and managers to complete many routine processes online, which was non-existent prior to People First.

Employees

 Complete timesheets.

 View leave balances.

 Maintain W-4 elections.

 Maintain miscellaneous payroll deductions.

 Enroll and elect benefits.

 View and update personal information.

Managers

 Process timesheets.

 Initiate personnel actions: hiring, promoting, and separating.

 Advertise job vacancies.

 Execute management reports.

 View their employees’ personnel informa-tion.

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CCOMPLISHMENTS

(CONTINUED(CONTINUED)) System Upgrade - (completed 7/19/2010)

For over two years, the DMS People First Team part-nered with NGA to develop state business require-ments, make system code changes, perform user acceptance testing, deliver communication and training materials, and deploy over 135 new system enhancements. The entire two-year period was longer than the initial 2002-2004 “go live” period. These enhancements resulted from the May 2008 contract amendment 10 negotiations, and the high-lights include:

 New branding, images and navigation links

 Improved security logging

 Improvements to the PAR process

 New timesheet

 Upgraded Talent Management System Agency / University Visits

The DMS People First Team visited every state agency and university to assess their system needs. A final takeaway log was developed from the issues discussed, and the log was used to determine the key system enhancements that were agreed-to dur-ing the Amendment 10 and renewal processes. Key Performance Indicator Charts

The Team developed Key Performance Indicator Charts to measure agency/university performance that is critical for the success of the initiative. By measuring data that matters, the chart, Summary of

Report Errors by University, showed a 87% decrease

in the number of errors. Davis Productivity Award

Our Data Warehouse team received a Davis Produc-tivity Certificate of Commendation for implement-ing a customized trainimplement-ing program that educates participants on how to retrieve human resource data. HR professionals from 22 state agencies were trained.

Professional Certifications

The 18 DMS People First Team employees represent over 277 years of state experience. Three employ-ees received the distinguished Project Management Professional (PMP) certification, two became Flor-ida Certified Contract Managers, and one became a Florida Certified Contract Negotiator.

Statistics

 Communications – The Team sent 591 com-munications to agency personnel from 2005 through September 2010.

 Mass Loads – 556 mass loads were proc-essed from 2006 through September 2010.

 Public Records Requests – 198 requests were processed in 2009 through September 2010.

 Report Requests – The data warehouse team processed 1,197 report requests in 2009 through September 2010.

 Service Center Calls – Over 4.4 million calls placed to the service center since 2005.

 System Enhancements – 710 system en-hancements have been released into pro-duction.

 Hiring & Recruitment Center Over 100,000 jobs posted.

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RENDS

NorthgateArinso Reports

Service Center Calls: Provides a breakdown of the number of calls by tower (benefits, HR, payroll, and staffing) received by the service center on a monthly basis. Service center calls have decreased 50% from 2005 to 2009. See chart below.

Performance Metrics: Provides a detailed breakdown of each performance metric and whether or not the vendor met the specified contractual goal on a monthly basis. Vendor performance metrics have improved: 92.65% in FY 2005/06 to 100% in FY 2009/10. 92.65% 98.74% 98.97% 99.74% 100% 75% 80% 85% 90% 95% 100% FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10

People First

Performance Metrics

Performance Metrics (NorthgateArinso) GOOD

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DMS Reports

Customer Survey: Provides an analysis of our cus-tomer’s perception of People First by surveying a random sample of state employees to rate their satisfaction on an annual basis. The 2010 survey resulted in a 72% overall satisfaction rate com-pared to a 59% overall satisfaction rate in 2007.

Open Enrollment Survey: Provides an analysis of state employee’s satisfaction with Open Enroll-ment on an annual basis. The overall satisfaction rate has increased to 81% in 2010 from 61% in 2007.

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ATISFACTION

People First Customer Survey

61% 80% 79% 81% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2007 2008 2009 2010 Overall Satisfaction

People First

Open Enrollment Survey Satisfaction

Note:Top 2 Boxes - Score captured from the "Extremely Satisfied" and "Satisfied" selections. GOOD

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9 Future Challenges

Public Perception: The successes have been enor-mous beginning in 2007, but problems encountered prior to that time continue to overshadow the posi-tives. The DMS will continue to plan for the future, communicate effectively, focus on future system en-hancements, and provide effective oversight of the contract.

Budget: The DMS People First Team staffing num-bers have been reduced 20% since 2007, but the Team’s responsibilities have increased. Further staff reductions would hamper the Team’s ability to carry-out the System Release Life Cycle, provide vendor oversight, and develop procurement documents for the next bid process.

Procurement: The contract expires in August 2016 and the State must either: (1) in-source the entire initiative; or, (2) carry out the procurement

process to seek other vendors interested in main-taining the system and suite of services. It is critical that DMS maintain the proper skill sets to prepare the procurement document, understand and man-age the process, and negotiate the best value for the State.

Transition: The July 2010 release upgrades the Peo-ple First system to the latest SAP ECC 6.0 HR soft-ware. The system has over 12,000 customizations and 200 unique interfaces. In the future, the State may consider moving to a different vendor or in-sourcing the services. Transitioning a highly custom-ized system comes with inherent risks. The DMS will continue to communicate the importance of proper planning, implementing a “deliberate” transition, and staffing the Department with the necessary re-sources to carry-out a successful transition.

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ACTS

Benchmarking

While HR outsourcing is a common practice in the private sector, in many ways, the State of Florida acted as a pioneer in introducing HR outsourcing to state government.

The state of Texas is the only other State to ever pur-sue and execute HR outsourcing of this size and scope according to the State of Florida Office of Pro-gram Policy Analysis and Government Accountability (OPPAGA) People First Assessment Final Report. The state of Texas signed a 5-year contract with NGA for $85 million in 2004, and a 2-year renewal extended the expiration date to 2011.

The Texas HR services outsourced to NGA include payroll administration, attendance and leave, hiring, benefits administration, and HR management. A service center is also outsourced to NGA which as-sists employees with benefits, payroll, attendance and leave, unemployment and worker’s compensa-tion, and job applications.

However, unlike the People First initiative that in-cludes all state agencies and serves 240,000 users, the state of Texas only outsourced HR services within one state agency (Health and Human Services Com-mission), serves only 46,000 customers, and does not provide services to state retirees.

Technology

 The People First database is approximately 1.6 terabytes.

 Built on the latest SAP ECC 6.0 HR software and Net Weaver infrastructure.

 Utilizes three tiered architecture (web, appli-cation, and database) and operates on Sun Microsystems hardware.

 Sun Solaris 5.9 operating system.

 Data maintained in an Oracle 10.2.0.4 data-base, which extracts data to an Oracle 10.2.0.4.0 data warehouse on a nightly ba-sis.

 Recruiting solution — the Authoria Talent Management product, version 10.12, from PeopleClick Authoria.

 Ancillary technology components include telephony switches, CTI software, facsimile processing systems and voice recording equipment.

 Data center located in Jacksonville, Florida.

 Back-up and recovery data center in Cincin-nati, Ohio.

 Over 12,000 customizations.

 Over 200 system interfaces.

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People First System HR/Payroll Benefits Staffing Peopleclick Authoria DFS State Group Insurance Retirement Data Warehouse Agencies Universities Insurance Carriers Fringe Benefits Wachovia/ Wells Fargo Banks

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 “The current People First team at the DMS is well organized, employee focused, and committed to continual improvement, which will be important in moving forward” – Report no. R08-002,

Council on Efficient Government (01/17/08).

 “In general, there is overall recognition of ongoing improvement for People First. Many cited changes in leadership within the People First team and reorganizations as critical efforts to im-prove user confidence in the system.” – State of Florida OPPAGA People First Assessment Final

Report (01/20/09).

 “I really like the new look of People First. The way you can navigate in the new system is won-derful. I love the look of the timesheet section. I feel that everyone will like it once they get use to it. Good job!” – State employee, DMS People First “Give Us Your Feedback” e-mail box.  “The new and improved PF site is outstanding and packed filled with user friendly, accurate

and meaningful shortcuts to getting the job done!! Our Managers are HAPPY!! THANK YOU and your entire TEAM!! Success is YOURS!!” – Manager with the Division of Retirement).

 “...progress to improve the functionalities of People First continued to be made. Specifically, DMS enhanced State agency personnel training and communication efforts, State agency knowledge and use of People First expanded, the use of manual time records was significantly reduced, and various system enhancements were implemented.” – Preliminary and Tentative

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