Personnel/Pay Modernization Update Brief

1. Personnel/Pay Modernization Update Brief Ann Stewart Special Assistant to OPNAV N1B For Pers/Pay Modernization September 2012

2. History • 2009: DIMHRS Program cancelled • “I would say that what we've gotten for a half billion dollars is an unpronounceable acronym [DIMHRS].” - U.S. Defense Secretary Robert Gates • 2010: UNDER SECNAV directs BPR and further requirements determination for Navy IPPS-N • “…FPPS is still at a pre-Milestone A level of effort, and that further development of the requirements is necessary” - U.S. Undersecretary of the Navy Robert Work • DEC 2010: VCNO designates OPNAV N1 as Navy’s end to end business process owner for personnel and pay matters • ”…you will ensure the most effective alignment and integration of requirements across the Navy, and/or de-conflict divergent priorities as appropriate.” • SEP 2011: IPPS-N CONOPS completed and approved • MAR 2012: Capability Based Assessment Completed • MAY 2012: UNDER SECNAV requests cancellation of FPPS and leveraging its investment in NSIPS for personnel and pay improvement • “…the Department of the Navy will rapidly deliver meaningful increments of personnel capability through NSIPS modernization.” - U.S. Undersecretary of the Navy Robert Work

3. Desired Effects of IPPS-N • Generate efficiencies throughout MPTE • Increase accountability and audit readiness • Provide improved service to Sailors • Facilitate informed management decision making • Improve fleet readiness

4. Capability Gaps Identified • Inefficient personnel and pay systems and processes • Rigid and non-responsive personnel and pay systems • Limited interoperability and information exchange across Navy personnel and pay functions • Inaccuracies across the personnel and pay functions • Lack of information sufficiency to support personnel and pay tasks • Inadequate financial audit capability • Lack of commander’s visibility on personnel within their area of responsibility (AOR) • Ineffective tracking of career transitions and Sailor status (active component and reserve component) (AC and RC) • Lack of an integrated and robust personnel service delivery model

5. Pers/Pay Maturity Model 2012 2013 2014 2015 2016  Strategic Business Enablement and Enterprise Focus Stage 3 Service Level Excellence Stage 2 Complexity and Cost Reduction Stage Stage 1 US Navy

6. Stage 1:Reduce complexity to generate efficiencies and increase audit readiness • Move labor intensive, high audit risk functions into NSIPS environment • 1) Navy Performance Appraisal Reporting Solution • 2) Record of Emergency Data • 3) Dependency Application • 4) Enhanced Drill Scheduling • 5) Consolidate field level PCS order writing capability • B. Build the foundation for an authoritative data environment • Re-engineer personnel and pay business processes • Reduce end-to-end process cost • Improve audit capability • Improve training for problematic processes • Activity gains

7. Stage 2:Improve the quality of personnel and pay services to Sailors and command leaders Implement re-designed personnel processes for standardization, efficiency, control, and audit Allow self-service where appropriate Leverage web technologies where appropriate D. Continue to improve data quality and access for personnel asset visibility and tracking. E. Increase training for military Pers/Pay workforce and command leaders

8. Stage 3:Enhance informed decision making to support the Navy enterprise Implement a single “My Navy” portal to provide one stop shop for Pers/Pay services Leverage mobile technologies where appropriate Increase information quality and timeliness for analysis and to provide improved personnel asset visibility for commanders 8

9. Pers/Pay Modernization • Pers/Pay Modernization is bigger than the IPPS-N Technical Solution (additional gaps identified in CBA) • Organizational alignment of Personnel and Pay Enterprise • Defining roles, access and controls for personnel and pay functions – significant concern with protecting PII • Training for all Pers/Pay “Actors” to prevent errors • Financial, Pay and Audit Issues – DOD wide priority • Assess the current military pers/pay workforce and determine future needs • Personnel service delivery • Document retention issues

10. Status • PASS program transitioning to N1 NLT 1 OCT 2013 • Standardizing processes, growing and maturing the capability of NPC Customer Service Center (PERS-1) • Increasing training support – NSIPS job performance aids, end-to-end process guides, Personnel Specialist Job Duty Task Analysis (PS JDTA) • Re-engineered Navy retirements process (collapses 9 separate retirement processes into 3 processes) • Started re-engineering separations processes • As-is business process mapping for pay and FM underway • Data governance processes in place; initial technical capability for an authoritative data environment in development

11. Pers/Pay Modernization Timeline FY13 and FY 14 FY 13 FY 14 Navy Performance Appraisal Reporting System (80% reduction in paper forms, error rate reduction 25% to <3%, OMPF updates within 48 hours) Workflow, E-Forms, Digital Signature Implement in NSIPS Record of Emergency Data/Dependency Application (Audit readiness for entitlements, sailor self-service, reduced manual effort) Automated self-service capability Personnel BPIs Enhanced Drill Management (Reduction of $600M RPN audit risk, reduced Navy Reserve labor, increased accuracy of drill muster) Auditable records for drill pay, automated self-service PCS Round-up (Reduction of ADA $200M MPN risk, increased audit readiness for all PCS orders, reduction of manual order writing) Standardized, auditable order writing Data Establish Authoritative Data Environment & Enterprise Service Bus Personnel BPE Separations, Accessions, Promotions, Assignments, Adverse Actions, Retention Business Process Evaluation and Requirements Begin NSIPS Modernization Development: Retirements and Separations Dev FM/Pay BPE Model To-Be FM/Pay processes Model FM/Pay As-Is processes 11

12. Questions and Input • Are we hitting the right targets? • What other head-hurters are out there? • Where do we need to focus our collective resources to get the most significant improvement? • Your input is appreciated! Ann.Stewart@navy.mil