# Presentation: 207871

## Customer Briefing             November 18, 2003

**Jerry Lohfink, Director**

## NFC Customer Briefing

_**TODAY**_
- Presentation
- Discussion with Senior Management

_**TOMORROW**_
- Scheduled Demonstrations

- 9:00 – Noon
- 1:00 – 3:00

- 8:30 – 4:00

## Today’s Presentations

- Survey                                                                                  Jerry Lohfink
- Customer Service Improvement Project                              Jerry Lohfink
- Payroll/Personnel 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
- Q&A							          Jerry Lohfink

## 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?**

## Customer Service Improvement Project

**Jerry Lohfink**

## Improving Customer Service

**Engaged contractor assistance**
- Obtain customer insight
- Identify issues
- Identify measures to improve customer’s perception

## 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

## 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**

## Positive Feedback

**Universally expressed that payroll done well**
**Most feel they are getting “best value” for their investment in NFC’s 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**

## 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**
**NFC’s pricing structure needs further  transparency**
**Systems’ evolution should be WEB-based  and focus on availability of data**

## 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

**Reengineer pricing methodology to become more transparent and responsive **
**Increase communication channels to obtain your feedback**

**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

- 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

**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

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

**We Hear You !****      **

## Payroll/Personnel Update

**Penny Forbes**

## 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

## 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**

## 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, T&A, Awards, and Leave Share
**Customer Support Office**
- Used as training facility

## 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

## 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 E&L
**Maintenance/Operations - 44 Staff Years**
**Retired PACT/PRES/FINQ/SINQ/HCUP**

## 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)

## Payroll/Personnel   Systems

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

## 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

## Payroll/Personnel    The Gift That Keeps on Giving

**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  ****	**

_**Average PP     **_

_**Retro Pay Raise**_

**Payroll/Personnel    ****The Gift That Keeps on Giving**

## Payroll/PersonnelSecurity 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

## 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)

## 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**

## 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**

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

- February 2004
- Web version available
- June 2004
- Quick Service Requests

**Payroll/Personnel         **** FY 2004 Initiatives**

## 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

## 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 W–2s

## Technology Update

**Bob Varnau**

## Technology UpdateOur 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**

## Technology UpdateTechnical 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)

## Technology UpdateTechnical 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

## Technology UpdateTechnical 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

## Technology UpdateTechnical Infrastructure

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

## Technology UpdateTechnical 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

## Technology UpdateBusiness Continuity

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

## Technology UpdateBusiness Continuity

**NFC assures connectivity for:**
- USDA’s IP Network
- Public Internet
**Customers using other networks must:**
- Establish ROC connectivity
- Participate in tests

## Disaster Recovery Business Continuity Re-Engineering

**Jerry Lohfink**

## Reengineering Disaster Recovery and Business Continuity

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

## 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

## Next Steps

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

## Public Key Infrastructure Security

**Randy Speed**

## 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. **

## Benefits of PKI

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

## 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**
**C&A completed by independent third party**
**Customers benefit from PKI without the cost of establishing and maintaining their own CA**

## 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

## 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**

## PKI Web site

**http://sig.nfc.usda.gov/pki/**

## Pricing Model Changes

**Pat Hanks**

## Pricing Model Changes

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

## Goal
To be perceived as our customers’ “best value” service provider

- To be perceived as our customers’ “best value” service provider

**Pricing Model Changes**

## Pricing Model Changes

**Background**
- 1990’s: 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”)

## 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

## Pricing Model Changes

**Feedback from the Customer Service Improvement Project**
- Findings
- NFC’s 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 NFC’s services
- “In 1999, they changed the algorithm, and nothing’s made sense since then.”

## 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

## 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

- 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

**Pricing Model Changes**

## e-Payroll

**Janet Dubbert**

## Questions?

## Slide 61

## Please join us in wishing Margaret the best in her upcoming retirement after 28 years of Federal service. 

## Afternoon Session

_**12:50 p.m.**_**	**** Wish Margaret well on her retirement**
_**1:00 p.m.**_**	****Information Exchange with NFC Senior Mgmt**
- 		Payroll Personnel System Priorities
- 		Customer Service Initiatives
- 		Technology Update
- 		Security/Privacy Update

## Tomorrow8:30 a.m. – 4:00 p.m.

**	****	****NFC System Demonstrations**
_**System**_**	****	****	****	****	****	**_**Room**_**	**
**Reporting 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**

## THANKS!