What have we done?. Project context Size of state budget: $ 27 Billion Includes the three branches of state government Includes DOT Number of employees:

What have we done?

Project contextSize of state budget: $ 27 BillionIncludes the three branches of state

governmentIncludes DOTNumber of employees: 43,000

Legacy processesPaper invoices routed via messengerA/P batched nightly to generate warrantsPaper travel authorizationPaper travel claims for most agenciesThree agencies used an electronic claim systemNo A/R systemLimited grant accounting systemNo facilities management systemMainframe processing

Legacy processes, contIndividual systems worked in silosSystems were highly customizedSystems that were replaced were extremely

old and not supported anymore

The new viewLeadership wanted a new platform that

would enable better analysis, support improved business processes and leverage technology

That translated into imaging, workflow and employee self-service on a web-based architecture, including the following modules:

Human Capital ManagementAbsence managementBenefits administrationCommitment accountingEnterprise learning managementHuman resourcesPayrollTime and labor

Financials, Supply Chain MgmtAsset managementAccounts payableAccounts receivableBudget controlBillingCost allocationCash managementContractsCashiering

FSCM, cont.Fleet managementGeneral ledgerGrantsInventoryPlant managementProjects

FSCM, cont.Catalog managementProcurement contractePro requisitionseSupplierPurchasingServices ProcurementStrategic sourcingTravel

PlanningConducted site visits in PA, OK, MA and UT

KnoxvillePerformed a high-level requirements analysisIdentified business and technical solution

requirementsPrepared a competitive procurementEstablished project sponsorship and steering

committeeIdentified the state project teamEstablished a communications plan

Things we didn’t plan for:Downturn in the economyFirst Republican majority in the TN Senate

since ReconstructionFederal stimulus fundsThe intensity of agencies’ resistance to

changeWorst flood in 1000 years

Goals for successMinimize software customizationFacilitate agency involvementImplement a reliable technical infrastructureSupport trained usersConfigure a solution that meets the state’s

administrative business requirementsPosition the state for future improvements

Project costsConsultants - $ 73,800,000

Software - $ 15,000,000

State Project Team annual operations - $15,000,000

Project timelineBoth HCM and FSCM projects would begin

on 4/06HCM went live Oct 2008FSCM went live in waves beginning Jan 2009

and ending Oct 2009

Difficulties in implementationChange managementProtracted conversionKeeping two accounting systems going

stretched limited resources and added a confusion factor to reporting and transaction processing

Results of those difficultiesDelayed CAFR preparationIncreased the opportunity for error in

analysisCriticismLost sight of the technological improvements

Implementation realitiesElectronic pay stubsWeb-based system used remotely 24/7Streamlined W2 processingImaging has improved document retrieval

and reduced physical storage needsMore recording of accounting events when

they occur due to the A/R moduleQuicker and more efficient travel

reimbursementUse of employee id in place of SSN

Implementation realities, cont.Supplier portal reduces phone call inquiriesEmployee self-service allows employees the

convenience of making certain changes on their own

Provided an infrastructure for new ways of making procurement processing efficiencies

Provided the framework for improving the management of state facilities

Provided the framework for better grants management information

Provided better control over cashiering activities

Implementation realities, cont.Provided framework for better analytics

because more information is captured on more transactions

Provided a better audit trail for each transaction

Questions? Call or email:

Jan SylvisChief of AccountsTN Department of Finance and [email protected]