Massachusetts Institute of Technology

1. Massachusetts Institute of Technology SAP R/3 HR-Payroll Project Project Update for SAPbiz March 22, 2006

2. Agenda & Introduction • Central Business Process Procedures (BPPs) • Communications and Training • Post Go-Live Support – Community • Post Go-Live Support – IS&T • Status Update • Schedule Review – GANTT Chart • Development and Testing Status • Cutover Process and Go-No Go Decision Criteria

3. Central Organization Business Process Procedures (BPPs) • New and Revised Business Processes • An inventory of HR and Payroll business processes identified 30+ processes • Proposed Business Process Procedures (BPPs) have been written and are being reviewed by management • Final BPP documents will be used in central training and for post go live reference • BPPs will be validated during pilot training • Examples: • Employee appointment life cycle • Off cycle check processing • Time sheet adjustments • Spousal Equivalent • Exempt vacation reporting and credits • Worker’s Compensation • Retroactivity

4. Communications and Training • Community Communications: • The Training and Communications calendar lists 74 separate activities between February –August 2006 - examples below • “Roadshows” – presentations to individual Schools, at their site • Brown Bag Lunches – open to the entire community • Articles in MIT publications, posters, targeted emails and letters, pay envelope inserts, etc. • Training: • Pilot training classes begin in February to refine course content • Community training begins May 30 – December 15 • Training of central organizations begins May 18 • Variety of delivery methods • “Train the trainer” strategy for local experts • Demonstrations by IS&T trainers • On-line web simulations – e.g., how to complete a student time sheet

5. Post Go-Live Support - Community • Support at Go-Live: • HR-Payroll Hotline to answer questions and triage problems • Human Resource Officers: HR policies • DLC Support Team: focal point for local support to administrators and employees • Student peers in dormitories trained to assist other students • IS&T Resources: • HR-Payroll project team staff • Data Warehouse support for extracting data/generating reports • Help Desk ramping up • On-site computer help from IS&T desktop tech support (DITR) • On-line simulations for training – e.g., completing a student time sheet • On-line FAQs (Frequently Asked Questions) • Handbooks • Daily huddles during the first month of go-live support between central organizations and the DLC Support Team

6. Post Go-Live Support – IS&T Enhancement Process • A log of scope change/enhancement requests is updated regularly. Requests fall into two categories: • Discretionary – optional changes • Regulatory – changes required by law • Triage process has been developed to distinguish between issues vs. enhancements • Items prioritized based on business need • Enhancement items are sized by Admin computing • Regular meetings with business owners to review enhancement list • Schedule work based on business need and ability to get work done in available time Admin Computing: • Core team transition to support from development • Period of fine tuning • Critical Response Team established for go-live transition period • Co-located technical and business resources • Direct pipeline between DLC support team and central organization team members

7. On plan for Go-Live - Summary GANTT Chart

8. Development and Test Status • All core development is complete • Data Warehouse Structure and feeds are complete • Conversion Development and Testing is completed • Open items in process not impacting test execution • Quarterly and annual tax form development • SAP reports • Data Warehouse reports • Spread this work over longer timeframes to focus on test execution • Test Status • Functional Test – 100% completed • Added regression test phase 100% completed • Parallel (Comparison) Test Cycle 1 is complete • Prep for Parallel Test Cycle 2 underway

9. Cutover Process and Go-No Go Decision Criteria Go No-Go Decision Items • Development finalized • Security model in place • Testing complete • Cutover plan in place • Technical issues finalized • Post support structure in place • IS&T • CAO • HR • DLC Support Team • Lincoln • Help Desk software configured • Lincoln site readiness • DLC and Central training completed • Central Organizations ready Developed out of Conversion processing schedule • Technical Focus: • Data cleanup (e.g. HR Org units for student groups – MITES) • Data Conversion • Final Development moved to production • Authorizations enabled in production • Interface partner - e.g. Fidelity - readiness • System Backup process designed (E40) • Contingency plan is in place • Business Focus • Post support critical response team up and running • Support organization implemented • Communications regarding go-live schedule • Detailed cutover planning is underway • Second Parallel Test completion (4/28/06) will be first go/no go decision point

10. Conclusion • Based on what we know today, we are confident that we will make the July 1 go-live date