Wharton School Staff Meeting HCM Transformation Initiative Update

Wharton School Staff Meeting HCM Transformation Initiative Update Date: 2/27/2018 1

Agenda Topic • HCM Overview – Trudi Sippola • Penn Employee Solution Center – Claudia Quinton • Workday@Penn Update – Julie Shuttleworth • Change Management – Trudi Sippola • Fireside Chat - Q&A - Thank You and Stay in Touch 2

HCM Overview Trudi Sippola, Project Lead – Change Management 3 3

Overview – One Project/Two Workstreams ü Strategic ü People-c entered ü Transfor ms how we do our work HCM Transformation Initiative ü Improve peoplecentered services ü Consistent, up-todate responses to FAQS Service Delivery Penn Employee Solution Center Workday@Penn 4 4

Penn’s Transformation Challenge – HCM Transformation Initiative Human Capital Management (HCM) represents the end-to-end processes related to managing people resources and support core functions for “hire to retire” and beyond. Payroll Embrace change to foster excellence as a change-agile” organization Engage the energy and passion of Penn around a shared vision and commitment to: Recruitment & Hiring Personnel Admin Large Scale Transformation § Talent Management HCM University-wide Scope Benefits § § § New HCM Workday System New Work Processes New Service Delivery Model People /Role Alignment § Penn Employee Solution Center Faculty Admin Compensation Time Management § Excellence § Inclusion § Service 5 5

Why are We Changing? A Compelling Business Case What’s In It For Me? (WIIFM) • Need to replace aging systems to reduce security, expense and compliance risks. Change is unique and personal for each of us. A few thoughts: • Continue to be an employer of choice offering modern and efficient resources to our people. ü Opportunity to learn modern, agile cloudbased integrated system to stay current in your career • Penn staff say “we love Penn but dislike our tedious work processes. ” ü An enhanced Penn employee experience – direct access to information anywhere, anytime on any device • Simplified, integrated processes will improve data accuracy and informed decision-making ü Greater University-wide career mobility and opportunities through digital literacy and knowledge of the same system used across Penn ü More opportunity for collaboration and growth across Penn • Reduce staff time on transactional tasks so we can focus more on valued-added work, mission-driven efforts and strategic support. 6 6

High-Level Timeline 2017 2018 Plan & Architect 2019 Wave 1 Wave 2 Workday Wave 1 Live Solution Center 1. 0 Live Initial Focus of Expertise • Core HCM • Recruitment • Compensation • Leave Administration PTO, FMLA, Disability Leaves • Time Reporting • Payroll Change in amount, errors in payment, pay dates • Staff and Labor 2020 • • • System usage, policy and procedure 7 Core HCM Academic Unit Payroll Benefits Compensation Time/Attendance Absence Recruiting Onboarding Workday Wave 2 Live • • Performance Talent Learning Effort Reporting

Penn Employee Solution Center Claudia Quinton, Project Lead - Service Delivery 8 8

What is the Penn Employee Solution Center? Areas of Initial Focus Vision § § § Compensation Build a hub providing answers to the Penn community as well as school and center business partners Provide faculty and staff with best-inclass customer service and timely resolutions Build an integrated knowledge base for the Penn community Provide an irresistible customer experience § Leave Administration PTO, FMLA, Disability Leaves § Payroll Questions about changes in amount, errors in payment, pay dates § Recruitment § Staff and Labor System usage, policy and procedure § Time Reporting e. Time, PTO system 9 9

Solution Center Launch and Rollout Early Adopter Organizations § § § § Future Adopters in 2018 Division of Business Services Division of Finance Division of Human Resources Division of Information Systems & Computing Office of Development & Alumni Relations School of Arts & Sciences School of Nursing School of Social Policy & Practice § Incremental releases expand audience, topics, and communications channels § Service to all employees regardless of their school or center or inquiry type. § New hires given the Solution Center contact information in orientation materials. § Schools and centers will receive substantial communications support formal rollouts . 2017 2019 2018 Solution Center 1. 0 launched 1/29, covering existing systems. Solution Center transitions to support all functions within Workday@Penn. Wave 2 – 5 March – July 2018 10 2020 With Workday Wave 2 go-live, Solution Center expands to include new functions.

Project Update – Workday@Penn Julie Shuttleworth, HCM Program Director Functional Team Lead 11 11

Workday@Penn Guiding Principles Adopt, Don’t Adapt Be Accountable Keep it Simple Think “One Penn” Strive For Clarity Guiding Principles in Action during Business Process Design Sessions Innovate and Improve We will implement these standard, best-practice processes and procedures with a focus on what is best for the Penn Community as a whole. Through standardization we will simplify cost structures and delivery of services to our internal and external constituents and demonstrate accountability to end users. 12

What Is Workday? Workday offers… • A cloud-based integrated system that manages HR, payroll, and other HCM-related processes • Enterprise-class security with 24/7 access to information • Modern, agile technology • Real-time analytics and user friendly Other members of the Workday higher education community Brown Yale Cornell NYU University of Chicago USC Georgetown and more 13

Current Phase: Configure and Prototype Activities Design workbooks that were created during the Architect phase will now be used to build business process flows, security roles, supervisory organizations, and other requirements that create multiple, secure prototype tenants in Workday’s cloud computing architecture. Architect Configure and Prototype Test Build and Refine Prototype Tenants Pennworks Data Cleaning Communications/Meetings Organizational Readiness Activities 14 Deploy

Workday Fundamentals Supervisory Organizations Used to group job and workers for various purposes, including processing and reporting. 1 Business Process Grouping of tasks that are processed for a particular action (i. e. hire, job transfer, name change, etc. ) Security and Roles Used to determine what access is granted to users for task processing, data viewing, and report generation. 15 2 3

Key Supervisory Organization Decisions 1 2 3 All workers will be hired into a position within a supervisory organization. Multi-manager supervisory organizations will be allowed in Workday. Existing HR Manager Hierarchy tool will be expanded for nonstaff, with data used for Workday supervisory organization conversion and/or creation. 16

Workday Supervisory Organizations • Supervisory Organizations provide the foundation of the hierarchy structure • Each Supervisory Organization consists of: • A unique org name • A manager • Employees that report to the manager • Supervisory Organizations provides structure for how: • Employees are organized • Business processes are routed • Data is connected 17

Capturing Supervisory Data for Conversion • Supervisory data will be converted from HR Manager Hierarchy tool • Previously used only for staff in support of performance appraisal process • Tool has been expanded to capture supervisor information for all active employees • Data has been preloaded from Salary Increase Modeling and e. Timesheets as a starting point for non-staff • HCM team will send out communications to change leads to coordinate updating of hierarchy for conversion cycles • Team will also supply a list of current hierarchy tool users in each School/Center 18 18

Academic Units Allow us to: • Track academics and their appointments • Primary and secondary appointments • Named professorships • Track visiting scholars as affiliates • Drives academic appointment business processes • Assignment of security roles (separate of security on the Supervisory Organization) • Direct relationship with the Supervisory Organization for routing in Staff Business Processes • Allowing for position changes to be initiated based on changes in rank • Academic Unit Hierarchy • Subtypes – Center, Department, and Institute 19

Cost Allocations • The Org, Fund, Program and CREF segments of the budget code will need to be entered • BC will be inferred by the FUND (same as in Hyperion) • CNAC will be inferred by the ORG • Object code will be determined automatically by the worker and earning type details • Implementation of cost allocation involves custom orgs/fields so that any future implementation of Workday Financials is not impacted 20 20

Successful Change Requires Two Sides Technical Side Design Develop Deliver Current State Transition State Future State Embrace People Side Adopt Use 21

Change Management Overview Trudi Sippola, Project Lead – Change Management 22 22

Change Management Overview What is Change Management? • The application of a structured process and set of tools for leading the people side of change to achieve a desired outcome. • A leadership competency • A strategic capability to increase change capacity and responsiveness. • Embrace change to foster excellence and innovation as a “change-agile” organization in service to Penn and its people Objective: Enhance the Penn Employee Experience • Integrate the “people side of change” with project management to drive results • Actively engage the Penn community in a large, complex, and highly “people dependent” transformation • Ensure adoption, utilization and proficiency with Workday and the Penn Employee Solution Center 23 23

Why is Change Management Important? HCM is Transformative for Penn • It is the bridge between a quality solution and benefit realization as individuals embrace and adopt the change from current state to desired future state • The way we do work changes with a new modern system, processes and roles • Preparation for change is necessary • Organizational change requires individual change Future State (Tomorrow) • Organizational outcomes are the collective result of individual change • We apply change management to realize the benefits and desired outcomes of the change vs just installing a new solution Transformation Current State (Today) 24 24

Penn Engagement Framework Engage hearts & minds Work across boundaries Share knowledge la ol Workday is iterative! C Career mobility C o Le ntin ar u ni ou ng s Build new capabilities n tio ra bo People. Centered Transformation t en m In er No hassle self-service no w po va tio n Em Mobility on any device Modern, agile technology New efficiencies 25

Change Management Tools and Activities Align Leadership Change Network Facilitate Drive Change Agents Share Coach Training Change Readiness Leadership buy in drives change management from the top down and supports adoption across the Penn Community. Change Networks utilize key stakeholders to deliver and drive change activities and reinforce Translate communications to their respective areas within the organization while Communicate providing feedback from their respective groups. End user training will provide users with a learning experience tailored to their future use of Workday. This blended learning approach will utilize diverse methods, tools, and platforms to provide process and role-based learning experiences that fit the needs of users. 26 Stakeholder Assessment Climate / Behavior Engaging & Enabling Implementing & Sustaining Change Impact Assessment A Change Readiness Assessment uses periodic surveys to document a baseline and provide regular pulse checks that will assess how ready stakeholders are for Workday. The Stakeholder Assessment is a key input into the Engagement and Communication Plans, which will ensure that the right people are engaged and receive the right information, at the right time, in the right way. A Change Impact Assessment identifies what is changing and who is impacted as a result of Workday HCM’s implementation, along with the degree of change anticipated.

Our Partnership – Structure & Roles HCM Overview Each local team has a primary liaison or Local Change Agent Lead (L-CAL) Executive Sponsors • Serve as a focal point for planning, small projects or data related requests, emerging issues, feedback and questions with the HCM team Steering Committee • Identify others locally who can help with specific requests when needed. PMO How You Can Participate Now: Technical Team Functional Team Change Team Service Delivery Team ü Expansion of the hierarchy tool for supervisory org development ü Penn Works legacy system data clean-up to ensure a smoother transition HCM Change Agent Network Local Project Lead(s) (VP or Vice Dean level) ü Mail Code clean-up to prepare for Workday Local Change Agent Lead Local Change Agents(s) What’s Coming Next: Complete the brief on-line Change Readiness survey for those impacted by Workday to help guide plans to support your communication and training needs. Your Local Audiences 27 27

Communication to Support Change Awareness Desire Knowledge Ability Reinforcement of the need for change to participate in and support the change on how to change to implement changes on a daily basis to sustain the change • What’s changing? • What’s in it for me? • Why is it necessary? • How will my job change? • What are risks of not changing? • What are benefits of the change? • How will processes change? • What processes are changing and when? • What do I need to know/learn to be successful? • What training is required? Pro. Sci ADKAR Model: The People Side of Change 28 • What resources are • Will I have the tools available to support and access necessary new processes and to do my job? behaviors? • Who can answer • How will we questions? celebrate success? • How will barriers be • How will we continue removed and to improve? problems solved?

Thank You Stay up to date with HCM activities § Website www. hr. upenn. edu/hcm § HCM Primer § FAQs § Team Member Bios § HCM Update, monthly e-newsletter and archives. Subscribe from the website https: //www. hr. upenn. edu/hcm/news/hcm-update § Contact your local Change Agent Network https: //www. hr. upenn. edu/hcm/resources/change-agent-network § Email the HCM team hcm-announcement@upenn. edu 29

Fireside Chat Q&A 30 30