KeyBank Case Study
Moving to HRO and
Technology in the Cloud
Classification: KeyCorp Public
Katie Ladd, Jennifer Koch & Doug
Kanouff
Case Overview
KeyBank was experiencing expensive and time consuming upgrades for their core HR technology.
Technology met current but not future needs of the organization. It did not align with corporate
strategy. HR operations workforce was not fluid and agile. KeyBank’s overarching philosophy is to
source non-core activities.
HR was tasked with transforming to focus on strategy, technology to advance their business, contain
cost and remain compliant.
Solution: Infuse cloud technology with HR sourcing solutions.
2
Journey Begins
Katie Ladd - Director of Employee Relations, HR Compliance and HR Operations
•
•
•
Define Scope
Due Diligence
The Solution
Jennifer Koch - HR Director of Technology and Operations – Project Manager
•
•
•
•
Project staffing
Timeline
Transition
Change management
Doug Kanouff - Director Enterprise Architecture
•
•
•
Technology solution
Conversion
Implementation
3
HR Optimization - Background
Strategic Objectives
•
Leverage strategic partner capabilities for delivery of HR Operations at Key (payroll, benefits administration, leave
management, employee contact center, and HR systems management)
•
Implement next generation recruitment solution to improve ability to hire the right talent at the right time in support
of employment brand leveraging Recruiting Process Outsourcing services and full candidate management system
•
Support employee and leadership development objectives by positioning Key to focus on assessing needs as the
business evolves, leveraging automated delivery, and providing access to advanced learning content development
expertise to reduce reliance on Instructor Led Training
The Scope
•
•
•
•
•
Workforce Administration & Core HRIS
Employee Services (Contact Center)
Payroll
Benefits Administration
Leave Administration
•
•
•
•
•
Talent Acquisition (Branch & Client Contact Center
positions)
Learning Content Development
Compensation (System only)
Performance Management (System only)
Succession Planning (System only)
4
HR Optimization - Background
The Approach
• Initiated RFI with four providers (1Q12)
• After RFI, narrowed providers to two -- Aon Hewitt and IBM (2Q12)
• Further current state assessment and deep dive inbound and outbound due diligence (3Q12 – 1Q13)
– Three rounds of negotiations resulted in reduction of initial bids
– Creative solutions including the introduction of Workday (software as a service) as an HR Information
Systems platform
•
To best meet Key’s strategic HR objectives, a blended Provider solution was selected (2Q13)
5
Due Diligence Goals and Purpose
Key Bank

Validate Vendor’s capabilities to deliver the
proposed solution within acceptable risk
tolerances

Final price submitted is accurate, complete and
meets Key’s service requirements, and is

Accompanied by accurate, complete and
appropriate Statements of Work and Service
Level Agreements
Verification
 Vendor’s capability to deliver proposed solutions
Validation
 The scope of engagement
 The baselines, i.e. transaction volumes and staffing levels
of current operations for in-scope services
Information Gathering
 A successful transformation and transition
Identification
 Risks to KeyBank
 Issues, and potential liabilities
Vendor

Validate that the final price submitted is
accurate, complete and meets Key’s service
requirements, and is

Accompanied by accurate, complete and
appropriate Statements of Work and Service
Level Agreements
Validation of
 The scope of engagement
 The baselines, i.e. transaction volumes and staffing
levels of current operations for in-scope services
Verification of
 Assumptions used in the proposal
Information Gathering for
 A successful transformation and transition
Identification of
 Issues, risks and potential liabilities
6
Ability to meet our business requirements/deliverables
Evaluation Scorecard and Rating Instructions
3
3
3
3
3
3
3
3
3
3
15
15
AH
IBM
Total
Level of Automation (UI,
Process, Reporting, Project
Support)
Ease of Doing Business
(Flexiblity, Configurability,
Alignment)
3
3
3
3
3
3
3
3
3
3
15
15
3
3
3
3
3
3
3
3
3
3
15
15
3
3
3
3
3
3
3
3
3
3
15
15
3
3
3
3
3
3
3
3
3
3
15
15
3
3
3
3
3
3
3
3
3
3
15
15
Comments
Transition Plan
AH
IBM
3
3
3
3
3
3
3
3
3
3
15
15
BCP
AH
IBM
Technology
AH
3
3
3
3
3
15
Governance
IBM
3
3
3
3
3
15
AH
IBM
SOW
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
15
AH
IBM
15
Commercial
Specifications
AH
IBM
Total
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
Assumptions & Caveats (Magnitude
ofgaps in pricing, caveats on T&Cs)
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
Risk (Termination Fees & language)
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
Ease of Doing Business (Flexiblity,
Configurability, Alignment)
Value- add
Competitive (approach to T&Cs,
pricing structure)
AH
Compensation
Benefits & Leaves
Payroll
Talent Acquisition
Talent Management
Learning
Employee Services
Workforce Admin
IBM
Compensation
Benefits & Leaves
Payroll
Talent Acquisition
Talent Management
Learning
Employee Services
Workforce Admin
Na me :
Da te :
Quality of Resources (Depth of
Knowledge, Vision and
Compliance Support)
Background &
Quals
Comments
Service Levels
#REF!
#REF!
Relevant Experience
Total
Level of Automation (UI,
Process, Reporting, Project
Support)
Ease of Doing Business
(Flexiblity, Configurability,
Alignment)
AH
IBM
Solution
Overview
AH
IBM
Evaluation for HRO Services
Alignment (agreement with T&Cs,
pricing transparency)
AH
IBM
Name:
Date:
Quality of Resources (Depth of
Knowledge, Vision and
Compliance Support)
Background &
Quals
27.0
27.0
Relevant Experience
AH
IBM
Ability to meet our business requirements/deliverables
Evaluation for HRO Services
0
0
Pricing
AH
IBM
0
0
The following Rating Factors are to be used. Please do not deviate from the use of 1, 3, or 9.
All ratings have been pre-populated to 3 = "meets needs" as a starting point.
If you are not rating a category/section then place "n/e" for all Providers.
Rating Factor
9 – Significantly Exceeds (enter ratings in green cells on the "RFP Summary" tab)
3 - Meets Needs
1 - Does Not Meet
"n/e" - Did not Evaluate (if this rating is used it must be used for all Providers)
7
Sample Evaluation
1. Currently all categories are weighted as follows:
(Background, Solution, Technology, Scope, Service Levels, BCP/DR, Governance, Value-Add)





Relevant Experience
Ability to meet Key’s Business Requirements
Quality of Resources (Depth of Knowledge, Vision and Compliance Support)
Level of Automation (UI, Process, Reporting, Project Support)
Ease of Doing Business (Flexibility, Configurability, Alignment)
25%
25%
25%
15%
10%
2. Commercial Weighting - Currently weighted as follows:





Alignment (Agreement with T&Cs, Pricing Transparency)
Competitive (Approach to T&Cs, Pricing Structure)
Ease of Doing Business (Flexibility, Alignment)
Risk (Termination Fees & Language)
Assumptions & Caveats (Magnitude of Gaps in Pricing, Caveats on T&Cs)
25%
25%
20%
20%
10%
8
Blended supplier solution: Aon Hewitt and IBM
The Solution

Selected two strategic providers and leveraging each for their best in class services
o
Aon Hewitt/Workday to provide business process outsourcing for Payroll, Service Center, Benefits and Leave
Administration services
o
Aon Hewitt/Workday to provide system only solution for Compensation and Talent Management
o
IBM/Kenexa to provide Recruiting Process Outsourcing for high volume recruiting, Applicant Tracking System and
Learning Content Development services
The Benefits

Leverages cloud evergreen core HR system with access to enhanced solutions for Talent Acquisition,
Performance Management, Succession Planning, Compensation Planning and Learning as well as a
collaborative and consultative partner to plan and strategize with Key as business needs evolve.
o
Cloud based, evergreen solution
o
Majority of HR processes integrated with Workday
o
Compliance and Regulatory modules are refreshed periodically as part of standard services
o
Leverages variable run rate cost structure based on head count +/-
o
Eliminates need to maintain systems and processes that are non-core to Key (e.g.,PeopleSoft hosting)
9
Lessons Learned

Align executive support from throughout the organization, not just HR, for project

Ensure the providers you are considering are flexible with solutions

Insist on a dedicated team as you move through the process

Engage subject matter experts and remain focused on scope

Don’t be shy about asking questions to verify quality of resources and ability to meet business
requirements

Triple-check volumes and resources to confirm commercial aspects, set foundation for
performance measures, and finalize Statement of Work

Define evaluation criteria and weighting; ensure consistency

Build foundation to sustain a win-win relationship with your vendor
10
Key HRO Transition Team
Executive Leadership Team
Executive Sponsor:
CHRO
Strategic Partner
Solutions Exec.
Program Director
SPSC Solutions Manager
CHRO, CIO CO-Pres.
Commercial Bank,
SPSC Exec
Transition Manager
Transition Support Partners
Risk
Compensation
Tower Lead
Talent
Management
Tower Lead
Talent Acquisition
Tower Lead
Learning
Tower Lead
Payroll
Tower Lead
Project Manager – Transition Support
WFA/HRIM, ES
Tower Lead
Leaves
Tower Lead
Benefits
Tower Lead
Security/ BCP
Project Manager – Transition Support
Risk Review
Core Team
Core Team
Core Team
Core Team
Core Team
Core Team
Core Team
Core Team
5-6 Subject Matter
Experts
5-6 Subject Matter
Experts
5-6 Subject Matter
Experts
5-6 Subject Matter
Experts
5-6 Subject
Matter Experts
5-6 Subject
Matter Experts
5-6 Subject
Matter Experts
5-6 Subject
Matter Experts
Finance
Procurement
IT Transition
Tower Lead
Transition
Change Tower
Lead
Tech Project Manager
Tech Project Manager
Tech Lead
Tech Lead
IT – Transition
Support Team
Change Mgmt
Support Team
Communication
Human Capital
Training
11
Project Teams & Committees – Interaction & Cadence
Executive Steering Committee – monthly update meetings
Chair: Program Director
Members: CHRO, CIO, Co. President Comm Bank, SPSC Exec.
Begins: Needs to be established; week of 7/29/13
HR Leadership Team – weekly update in already standing routine
Chair: Program Director
Members: CHRO, HR Directors, HR COE Directors, Transition Manager
Begins: Already established; next update 7/29
Program Management Office – weekly update meetings
Chair: Transition Manager
Members: Tower Leads- Functional, Tech, Change and Support Partners
Begins: Week of 7/29
Integrated Transition Team (Aon) – weekly update meetings
Chair: Transition Manager
Members: Key Program Director, SPSC Leader, Tech Lead, Aon Program Director
Begins: TBD
Integrated Transition Team (IBM/Kenexa) – weekly update meetings
Chair: Transition Manager
Members: Key Program Director, SPSC Leader, Tech Lead, IBM Program Director
Begins: Week of 8/5/13
Domain Transition Team – daily meetings
Chair: Project Managers
Members: Trans. Manager, Project Managers, HR Domain Manager, HR Domain Core Team, Tech leads
Begins: Talent Acquisition 7/19/13; Learning Week of 8/5/13; Others TBD
12
HRO Transition Timeline
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Pre-Plan
Plan
Architect
Apr-14
May-14
Jun-14
Config/Prototype Test/Deploy
Jul-14
Aug-14
Stabilize
Sep-14
IBM/Kenexa
Talent Acquisition - RPO
Go-Live
Go-Live
Talent Acquisition - Brassring
Go-Live
Learning
AON Hewitt Workday
WFA/HRIS*/ES*
Begin Reqs
Finalize Reqs
Begin UAT
End UAT
Go-Live
Payroll
Begin Reqs
Finalize Reqs
Begin UAT
End UAT
Go-Live
Compensation
Begin Reqs
Finalize Reqs
Begin UAT
End UAT
Go-Live
Talent Management
Begin Reqs
Finalize Reqs
Begin UAT
End UAT
Go-Live
H&W
Begin Reqs
Finalize Reqs
5/2 - 5/27 UAT
Go-Live
Leaves
Begin Reqs
Finalize Reqs
5/2 - 5/27 UAT
Go-Live
* HRIS & Employee Services only have Prototype I, business requirements defintion and UAT will vary slightly from dates noted
13
Critical Path – Change Management
2013
Sept
Oct
2014
Nov
Stakeholder
Analysis Complete
Kick Off
Dec
Jan
Sponsorship
Coalition Complete
Feb
Mar
Apr
May
Jun
Jul
Training
Materials
Complet
e
Detailed Training
Strategy
Complete
Training Begins
Requirements
Complete
Change Impacts
Complete
Go /
No
Go
Go
Live
Communication
Materials
Complete
Detailed
Communication
Strategy Complete
HR Business Process Outsourcing | Implementation Shared Services
Proprietary & Confidential
End users using
new tools
14
Leading through change
The Facts
Don’t UnderEstimate
 No matter how “small” or how short the project, you need a full end-to-end
change management strategy and plan
 The successfulness of your project will depend on how you create
awareness and champion for adaptation of change
 Identify your sponsors and engage them early as advocates for the initiative
 FAQs don’t lie
 Never too soon to begin your change management strategy and planning
 Change management is a science as well as an art. Don’t down play the
specialized skills/experience needed to effectively manage the change
 The power of grass root effort in its ability to increase adoption
 Don’t wait until you need change management to engage your change leads
15
Managing the transition
Must Do’s
 Strongly recommend resourcing project team with full-time, dedicated team
 Ensure subject matter experts are engaged in critical roles, i.e. Payroll,
Benefits, Leaves, etc.
 Positioning for success
o Select project team leads who have the credibility to lead a highly
demanding project and establish their authority for making decisions
 Expect change, be open to what comes and navigate through it
 Keep it simple, stay focused on your primary objective, transformation won’t
happen over night
 Solve and design for the majority, not the exceptions. Live by the 80/20 rule.
Doing It
Differently
Next Time
 It’s never too early to bring multiple partners, if applicable, to the table for
integrated conversations
 Have a game plan for how to leverage partner’s project plans
 Establish your future state governance model during Transition
 Begin your change management plan on day one
16
Solution Description Scope

Core: Workforce Admin, Payroll, Employee Services, Benefit Administration, Leave Administration
o
o
o
o
o

Data Conversion to Workday (Workforce Admin, Payroll)
Data Conversion to Aon (Benefit Administration, Leave Administration)
Interface Mapping and Development (All functions)
Support for one-time setup\configuration (All functions)
SSO Integration (Workday and Aon)
Talent: Talent Management, Talent Acquisition, Learning, Compensation
o
o
o
o
o
Data Conversion to IBM (Talent Acquisition)
Interface Mapping and Development (Talent Acquisition) - BrassRing to Workday
Background Integration - FirstAdvantage, BrassRing
Support for one-time setup\configuration (Talent Acquisition, Talent Management, Compensation, Learning)
Interim PeopleSoft Modifications to support IBM recruitment on PeopleSoft and temporary integrations between
BrassRing and PeopleSoft
o SSO Integration (Talent Acquisition, Compensation (MarketPay)

Feeds from current HR to existing systems replicated by new solution in order to reduce rework of
existing downstream systems. The Enterprise Data Supply Chain ingests data from vendors and
provides the data for internal system usage where appropriate.

Kronos is the only HR related technology still housed at Key. All other HR related technology will be
housed at the vendor(s).
17
HR BPO – Logical Context Diagram
FTP
Shared Drives
3rd Party Feeds
MarketPay
ADP
ADP
Evolution
(EVO)
Internal systems
NXG
HSA
PRC
CIS
ACH
GLJ
Internal
Internal Feeds
Feeds
EIM
KCB
PCM
CEP
ALS
TNS
DTP
GFT
BDM
TLS
LDR
PCM
VOCUS
(HRS LEARNCTR)
U.S. Government
(eVerify)
Fidelity
Fidelity
Concur
Concur
State
State of
of Ohio
Ohio
Spotlight
Spotlight
CitiBank
CitiBank
JAT
NextJump
NextJump
CWT
CWT
TALX
TALX
CIC+
BizLink
MBEN
MBEN
OMS
In-Memory
xml
Server
xml
Persistent store
UI Server
EDP
xml
Integration Cloud
Integration
Custom Integrations
Cloud Connect
Outlook
3rd Party Feeds
Notes
Service Center
Applications
Absence
Management
360
Jobs America
Portal
2.0
(HRP)
RSA
Web
Auth
TBA
Middleware
processers
Recruitment
(BRR)
Kronos
(KRO)
HRS
CDS
HRONLINE
KDI
BMS
HRANALYTICS
rd
3 Party Feeds
Key Trust
KEY
= New Component
= Retired Component
FE
BNY Mellon
Prudential
Prudential
CIGNA
CIGNA
Merc
Merc Medco
Medco
UHC
UHC
EYEMED
EYEMED
OPTUM
OPTUM
RFM
CA AuthMinder
(MFH)
ICS_WIGG
FED
FED
Child
Child
Support
Support
Key.com
18
HR BPO – User Interactions
Learning Content
Administration
Key
Learning Content
Reviewer
Kenexa
Evolution
SSO For
Training
Notes
Key Email
Learning Content Management
IBM Content
Delivery
Key
Recruiter
WorkDay
Learning Content
Development
IBM Recruiter
HR Online
SSO for HR
Key
Key Issued
Issued Laptop
Laptop
VPN
VPN Connectivity
Connectivity
TFIM
Load Learning
Content
Recruitment
SSO for HR
KeyNet
Alumni
Training
HR
SSO
HR
Internal Candidate
and Employees
Time Records
Non-Key –
Potential Candidate
Kronos (KRO)
HR
Key – Non-Key Device
3rd Parties
AON CS Agent
BrassRing
SSO for Internal
Candidate &
Recruitment
Key.com
External Candidate
Shaker
Recruitment
Ext. Candidate
= New Component
= Retired Component
19
Security – Single Sign-On
Employee and Alumni (non-Key device)
- enter via Aon Portal, access to WD
With credentials from Aon
Aon Domain
Nucleus 360
Ao
Aon Ping
WD
MarketPay
Ke
y
ac
tiv
e
l SSO
Key Employees transferred
from Aon Portal (via url
links) to Key for navigation
to and authentication with
3rd Parties
ting
SSO
Use for Key
rs to
Aon
for
Aon Intern
a
O
l SS
TBA
Workday
SS
O
Aon Portal
rn a
is
Ex
to
-actives
Key non
SSO for
te
n In
Key Domain
st
oW
D
Benefits Providers
SSO
for K
e
Mark y Users to
et Pa
y
Existing
Oracle Taleo Learning
a
En
ble
n
di
Ph
e
as
ale
2T
n
cq
tA
uis
itio
n
Key TFIM
Key Employee (Key device)
To be built during Aon\
Workday Implementation
IBM BrassRing
20
Lessons Learned


Data Conversion: probably the most straight-forward part of our technology
implementation….specifically Core Workday data conversion. Conversion to BrassRing was more
complex.
o
Multiple dry runs, automate file compares…even before loading to the application
o
How much history is enough… and what do to with the data you don’t convert?
Data Integrations: ~100 involving 15-20 third-party vendors
o
Make a list and check it twice (better make that 10 times): Know who is consuming the current HR
data….scheduled integrations and direct DB read access
o
Don’t try to get too far ahead, slow your roll: Functional Decisions impactful to integration attributes,
timeframes, etc. Let the functional decisions\requirements lead the way, followed closely by the integrations
o
Don’t bite off more than you can chew: Phase in the integrations based on priority ….we had 3 waves
o
Minimize Collateral Damage: Provide down-stream applications what they get today
o
Charge the batteries of your secret decoder ring: multiple vendors, speaking different terminology. Plan to be
the interpreter…and Switzerland!
o
Who’s on first, what’s on second: Establish a well defined flow for the creation and review of the requirements
and design documents. Not the project plan…but a matrix. Don’t underestimate the amount of time it takes to
slug through this process
o
Production Orchestration: Just when you were feeling good about the build and test, then you realize….all this
stuff needs to be scheduled to run in Prod
21
Lessons Learned, Cont


Payroll = Job #1…..
o
Appropriate accounting = Job #2: Testing should include balance and recon
o
More broadly speaking….don’t get lulled into exclusively relying on the “Pay Cycle Match” metrics: Expand Payroll testing
cycles to include upstream and downstream data integrations
Miscellaneous
o
Site for collaboration: issue log management, documentation, contact info. Internal and externally shared
o
Data Validations: Not in the core application, implications downstream can be painful
o
Enterprise Interface Builder (en mass updates tool) are painful: proceed with caution
o
Critical Implementation Tools Required:
22
Appendix
Payroll End to End
24
Time Online
25
Accounting
26
Downstream Integrations
27
Brass Ring-Workday-Key Bank
28