Customer Briefing November 18, 2003

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Customer Briefing November 18, 2003
Jerry Lohfink, Director
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NFC Customer Briefing
TODAY Presentation Discussion with Senior
Management
900 Noon 100 300
830 400
TOMORROW Scheduled Demonstrations
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Todays Presentations
Survey
Jerry
Lohfink Customer Service Improvement Project
Jerry Lohfink Payroll/Pers
onnel Update
Penny Forbes Technology Update

Robert Varnau Disaster Recovery/Business
Continuity Re-Engineering Jerry
Lohfink Public Key Infrastructure
Randy Speed Pricing Model Changes
Pat
Hanks e-Payroll
Janet Dubbert, Chuck Lewis
QA
Jerry Lohfink
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Survey
1. As a customer, what I value about NFC service
is_______ 2. If you could change three things
at the NFC to add value to the customer, these
changes would be ___________ 3. Related to the
services provided to you by NFC, what keeps you
awake at night?
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Customer Service Improvement Project
Jerry Lohfink
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Improving Customer Service

• Engaged contractor assistance
• Obtain customer insight
• Identify issues
• Identify measures to improve customers
  perception

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Obtained Your Input

• Interviews conducted by Accenture in person/by
  telephone
• Agencies selected for interviews based on
• Number of employees
• Complexity of service
• Length of service relationship
• Degree of centralization/decentralization
• Perceived proficiency

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Obtained Your Input

• Interviews focused on two categories of
  interviewees
• HR Financial Executives
• HR Line Staff Technical Representatives
• Interviewed 50 individuals from 16
  different agencies

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Positive Feedback

• Universally expressed that payroll done well
• Most feel they are getting best value for their
  investment in NFCs services
• There is a recognition that NFC performs a
  difficult and often thankless job
• Praise for NFC Team
• High praise for many individual NFC team members

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Areas for Improvement

• Some members of help desk perceived as
  gate-keepers or go-betweens
• Some question adequacy of staffing levels
• Complex Agency issues require better coordination
  across organizational lines
• NFCs pricing structure needs further
  transparency
• Systems evolution should be WEB-based and focus
  on availability of data

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We Hear You !

• Create Customer Service Improvement Project Team
  with Customer involvement
• Reengineer pricing methodology to become more
  transparent and responsive
• Increase communication channels to obtain your
  feedback

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We Hear You !

• Align the organization and staffing levels to
  best serve customer expectations
• Examine staffing levels and service delivery mix
  in light of best practice review
• Place priority on filling payroll service-related
  vacancies
• Provide staff with additional training and tools
• Offer dedicated customer representatives

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We Hear You !

• Complete Web deployment
• Expand the deployment of sensitive data in the
  Reporting Center for interested customers
• Improve post-Bear reporting
• Re-engineer disaster recovery business continuity
  program

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Payroll/Personnel Update
Penny Forbes
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Payroll/Personnel Customer Support

• Responded
• 242,000 Customer Calls
• Processed
• 39,000 Separations
• 12,500 Retirement packages
• Issued
• 95,000 Personnel collections
• 324,000 DPRS premium payments

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Payroll/Personnel Customer Support

• Sponsored Visits to NFC
• Held Training Sessions
• Coordinated HR Briefings
• Individualized Support Through Customer
  Representative
• Published NFC Newsletter, Informer, and Updated
  NFC Home Page
• Implemented Electronic Bulletin Delivery

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Payroll/Personnel Customer Support

• Supported the Community via the
  Payroll/Personnel System Policy Staff
• Coordinated with OPM
• Interpreted policy
• Provided advice and guidance to client agencies
• Served as the Chairperson for CAPPS
• Lead community work groups including EPIC, TA,
  Awards, and Leave Share
• Customer Support Office
• Used as training facility

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Payroll/Personnel Customer Support

• Agencies Implemented
• U.S. Government Printing Office
• Major Reorganizations
• Alcohol and Tobacco Tax and Trade Bureau
• Alcohol, Tobacco, Firearms, and Explosives
• Department of Homeland Security

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Payroll/Personnel Systems

• Mandated/User Requested 48 Staff Years
• 2002 W-2s
• 2003 Pay Raise
• Federal Flexible Spending Accounts
• TSP
• Military Days to Hours Conversion
• IRS Tax Updates
• Removal of SSN from EL
• Maintenance/Operations - 44 Staff Years
• Retired PACT/PRES/FINQ/SINQ/HCUP

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Payroll/Personnel Systems

• SPPS
• Process manual payment and adjustment
  transactions for separated employee
• Repayment by agency of certain types of federally
  insured student loans as a recruitment or
  retention bonus
• New payroll transaction types including Overtime,
  Overtime with Night Differential, Life Cycle
  Amount, and Standby/Administratively
  Uncontrollable Overtime (AUO)

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Payroll/Personnel Systems

• STAR
• Currently 600 users processing over 13,000 TAs
• Stabilized Web product
• EPP/ESS
• TSP
• Savings Bonds
• Add
• Change
• Delete
• FEHB
• Accommodate Open Season and Life Changing Events

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Payroll/Personnel Systems

• Reporting Center
• Retro Pay Raise reports
• Travel Outstanding Advance Report
• Civilian Employment SF-113A and SF-113G
• Flexible Spending Accounts Report
• Leave Balance and Leave Liability reports
• Developed requirements and designed new Reduction
  in Workforce (RIF) reports

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Payroll/Personnel The Gift That Keeps on Giving
Average PP
Retro Pay Raise
Personnel 307,000 1,108,000
SF-50s 49,000 1,108,000
Pay Adjustments 154,000 6,200,000
Payroll Accounting Records 2,000,000
10,000,000 Detail Transactions 11,000,000
129,000,000
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Payroll/PersonnelSecurity Advances

• Compliance with NIST 800-18 Requirements
• Prepared
• Security Plans and Risk Assessments
• Payroll/Personnel
• Administrative Billings and Collections
• Direct Premium Remittance
• Payroll/Personnel Accounting
• Privacy Impact Statements

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Payroll/Personnel FY 2004 Initiatives

• e-Payroll Implementation Windows
• Pay Period 07
• Armed Forces Retirement Home (AFRH)
• Pay Period 12
• Office of Thrift Supervision (OTS)
• Pay Period 17
• Federal Regulatory Commission (FERC)
• Department of Labor (DoL)
• Environmental Protection Agency (EPA)

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Payroll/Personnel FY 2004 Initiatives

• W-2s
• 2003 Tax Year
• Completed user acceptance testing in PP20
• Production process January 2004
• 2004 Tax Year
• System test in April 2004
• 2004 Pay Raise

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Payroll/Personnel FY 2004 Initiatives

• 2004 Personal Statement of Benefits
• Hard copy
• Update on EPP
• Continue Support of PKI Enablement
• Removal of SSNs from Child Support and Alimony
  Checks
• FESI Windows - February and June

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Payroll/Personnel FY 2004 Initiatives

• SPPS
• February 2004
• Web version available
• June 2004
• Quick Service Requests

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Payroll/Personnel FY 2004 Initiatives

• STAR
• November 2003
• Continue to deploy current Web version
• July 2004
• New version with enhanced Web features
• Improved navigation
• User defined preferences

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Payroll/Personnel FY 2004 Initiatives

• Reporting Center
• November 2003
• User Acceptance Phase for RIF Register Reports
• January 2004
• Production for RIF Register Reports
• March 2004
• Convert EARN and W2s

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Technology Update
Bob Varnau
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Technology UpdateOur Direction

• Responding to your requirements to move to
  web-based business architecture
• Continue to deliver reliable, predictable, and
  valued services
• Despite increasing market costs, continue to
  provide value at reduced cost

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Technology UpdateTechnical Infrastructure

• Enterprise Servers
• 3 IBM Processors (1786 MIPS)
• z/OS the latest operating system
• DASD - 31 Terabytes
• Tape media (1,050 Terabytes)
• 200,000 Standard Tapes (320 Terabytes)
• 5,500 High Density Tapes (330 Terabytes)
• 500,000 Virtual Standard Tapes (400 Terabytes)

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Technology UpdateTechnical Infrastructure

• Midrange Servers
• 50 Unix
• 150 Window/NT and Windows/2000
• Web and other applications
• High availability clustering for applications
• Storage Area Network backup with robotics

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Technology UpdateTechnical Infrastructure

• Database Support
• IDMS Core Payroll Systems, Travel
• DB2 StarWeb, EARN, EPIC, SPPS, FFIS
• Oracle EPP, Reporting Center, PCMS
• Sybase PKI
• Telecommunications
• IP and customer dedicated networks
• Firewall protection intrusion detection
• Nokia Firewall Implementation
• Multiple encryption methods

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Technology UpdateTechnical Infrastructure

• System Software Products
• Over 100 Tools and Utilities supporting
  applications and application development
• Includes
• FOCUS
• Control-D
• SDSF

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Technology UpdateTechnical Infrastructure

• z/OS operating system software maintained at
  latest version
• Migration to z/OS version 1.4
• Implementation targeted for 2nd Quarter 2004
• Customer Testing

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Technology UpdateBusiness Continuity

• Drills twice a year (ROC and AWS)
• Additional local testing
• Customer testing participation
• Evaluating alternative methodology and technology

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Technology UpdateBusiness Continuity

• NFC assures connectivity for
• USDAs IP Network
• Public Internet
• Customers using other networks must
• Establish ROC connectivity
• Participate in tests

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Disaster Recovery Business Continuity
Re-Engineering
Jerry Lohfink
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Reengineering Disaster Recovery and Business
Continuity

• Business Impact Analysis
• Technology Alternatives
• Risk Assessment
• Zone Study
• Feasibility Report

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Outcomes of Analysis

• Validation of Business Requirements
• Two Changes to 48-Hour Requirements
• Thrift Savings Plan
• Payroll/Personnel Reporting Center
• Size and Complexity Threaten Success of
  48-Hour Window
• New Considerations
• Security (physical cyber)
• Human threat factor

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Next Steps

• High-level Plan
• Funding Alternatives
• Detailed Action Plan

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Public Key Infrastructure Security
Randy Speed
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Public Key Infrastructure (PKI)

• Why PKI?

The use of digital certificates ensures that your
electronic transactions can be conducted with
confidentiality, data integrity, proper user
authentication, and non-repudiation.
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Benefits of PKI

• Secure auditable manner to access sensitive data
  over the internet
• Digital signature
• Single/reduced sign-on for many government
  applications
• Single point of control for authentication
• Authorization handled by business process owner
• Assists agencies in compliance with Government
  mandates (i.e., GPEA, FICC, e-Gov)

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NFC is a CSP and Application Owner

• NFC established a Certification Authority in 1996
  
• Cross-certified with Federal Bridge and
  Interoperable with e-Authentication Gateway
• CA completed by independent third party
• Customers benefit from PKI without the cost of
  establishing and maintaining their own CA

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Government-wide Initiatives

• e-Authentication Initiative
• e-Gateway
• Credentials can be reused across government
• Federal Bridge Certification Authority
• Federal agencies, governments, and industry to
  agree to a common certificate policy
• Federal Identity Credentialing Committee
• Digital credentials for Federal employees
• Shared service provider concept

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Projected Milestones for FY04

• Implement enabled applications into production
  (STARWeb, Reporting Center, and CLER)
• Complete Annual External Audit
• Implement an automated training tool for Local
  Registration Authorities at the agency sites

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PKI Web site http//sig.nfc.usda.gov/pki/
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Pricing Model Changes
Pat Hanks
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Pricing Model Changes

• Goal
• Background
• Current Model 
• Feedback from the Customer Service Improvement
  Project 
• Future Direction 
• Challenges

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Pricing Model Changes

• Goal
• To be perceived as our customers best value
  service provider

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Pricing Model Changes

• Background
• 1990s influence customer behavior in a few key
  cost centers
• Standard costs based on historical
  volumes/budgeted resources
• Many costs allocated proportionally
• Communication through annual information booklet
  to managers (Blue Book)

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Pricing Model Changes

• Current Model
• Changes to use different activity-based costing
  approach
• Elimination of some detail
• More costs moved from core processing to
  agency-specific agreements
• Blue Book replaced by a description of services
  attached to the reimbursement agreement

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Pricing Model Changes

• Feedback from the Customer Service Improvement
  Project
• Findings
• NFCs pricing structure is difficult to
  understand and not transparent
• Many customers do not know exactly what they are
  paying for.
• Some customers are not able to fully ascertain
  the value for money they receive for their
  investment in NFCs services
• In 1999, they changed the algorithm, and
  nothings made sense since then.

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Pricing Model Changes

• New Direction
• Focus pricing strategy on transparencies and
  strategic initiatives that impact customer
  behavior
• Identify additional high-effort activities
• Encourage automated self-service
• Emphasize customer service costs/value
• Provide more pricing options that recognize the
  differences in customers requirements
• Provide more detail on the components of costs
• Standard cost price/workload communication linked
  to the 2-year budget planning cycle

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Pricing Model Changes

• Challenges
• Effective communication to increase understanding
• Right information to right people
• Enough detail to inform, not confuse
• Meaningful metrics
• Balance between stable price structure and
  dynamic cost incentives
• Low core cost
• Transition strategy that enables organizations to
  plan

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e-Payroll
Janet Dubbert
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Questions?
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(No Transcript)
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Please join us in wishing Margaret the best in
her upcoming retirement after 28 years of Federal
service.
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Afternoon Session
1250 p.m. Wish Margaret well on her
retirement 100 p.m. Information Exchange with
NFC Senior Mgmt Payroll Personnel System
Priorities Customer Service Initiatives Techn
ology Update Security/Privacy Update
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Tomorrow830 a.m. 400 p.m.
NFC System Demonstrations System Room Repo
rting Center (RC) Carver Employee Personal
Page (EPP) Employee Self-Service (ESS) Knowledge
Base System (KBS) System for Time and Attendance
Reporting(STAR) Stockberger Special Payroll
Processing System (SPPS) Lincoln 1 System
Display and Search Facility (SDSF) Lincoln
2 Public Key Infrastructure (PKI) Lincoln 3
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THANKS!