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Canada to Scrap IBM Payroll Plan Gone Awry Costing $1B

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Re: Canada to Scrap IBM Payroll Plan Gone Awry Costing $1B

#151

I have payroll issues with IBM still. They overpaid me when I left, then they got my end date incorrect and wanted more back than they deserve. This has been ongoing for 7 months, they can't seem to figure it out... just check the email logs, if they had any... They sent it to collections some time ago, now trying to get them to negotiate a payoff rather than dealing with IBM Employee "services"

Wow, collections..

I have a similar story: as an IBM employee I had a company Amex card. It works like this: you buy something on the card (in your name, against your personal credit), but you also fill out an expense reimbursement form (a horrible Java web-app) and IBM pays the card.

All fine and good, but if you return something or if the vendor gives you a discount later or anything like that, you end up with a negative balance on the card. Now you leave the company, but you have an Amex card with a negative balance.

I received Amex statements for six months before they figured out how to deal with it.

Re: Canada to Scrap IBM Payroll Plan Gone Awry Costing $1B

#152
So: for anybody who is curious what's actually going on here:

1. Problems are far bigger than the specific payroll software system. There were tens of thousands of outstanding cases in 2015 before the new system went live. There were tens of thousands of outstanding cases in 2012 when the project started. And there were tens of thousands of outstanding cases every year before that on the "old great system". (why? read on)

2. IBM didn't create a new system from scratch - Govt chose PeopleSoft HCM, an industry-leading system which reliably pays people day in and day out at thousands of customers. Base solution is not the core issue.

3. When you buy PeopleSoft (or SAP, or JDE, or whatever), ideally you make your business fit the system's best practices, customize as little as possible. No client fully does it, but govt doesn't even try. IBM, together with govt employees, spent five years trying to hammer several tens of thousands of complex time and labor rules from more than hundred labour agreements into the system.

3. Implementing this system was half of the initiative, other half was reducing workforce for compensation advisers and moving them all to NB, hiring new grads as replacements. Who were surprisingly not exactly intimately familiar with these hundred labor agreements and tens of thousands of time and labour rules. We're talking one third of the support force at one tenth of experience.

4. So, the billion wasn't spent on "the system". It was mostly spent scrabling afterwards to re-hire old CA's as expensive consultants and trying to catch up the damage.

5. Because guess what, garbage in, garbage out. If your manager doesn't submit or approve your acting gig or leave of absence or maternity leave for several weeks, or months, or more, system won't magically know about it. Not the old one, not the new one, not some magical future one.

If your HR person doesn't create you as a new employee, you won't get paid.

If you don't submit your overtime slips on time, but instead collect them for 10 months so you can have "Xmas bonus", that also MAY just may create an issue. Ditto with retirement applications. Secondments to other departments. And if through this all employee groups perform denial of service attacks on the system because this is all a political game, that may also be a problem.

There is a pervasive cultural issue that boggles mind as to why nobody does their HR things on time or correctly there. The system just provides useful target of the moment, but issues were there before and without cultural change they'll be there in the future.

There are real problems and there are real people suffering because of them, and they have for decades, and yes it's gotten worse. Grandstanding over some magical new systems won't fix it though.

This is a burner account, I had the dubious privilege of working on this few years back and am aware of some of the horror stories - from the present and the past. I'll stay the dear heck away from Federal Govt / Public Sector project in the future if I can.

Re: Canada to Scrap IBM Payroll Plan Gone Awry Costing $1B

#153

> Canada to scrap IBM payroll plan gone awry costing $1B. The Phoenix project was originally chosen by Prime Minister Justin Trudeau’s Conservative predecessors 10 years ago to centralize the government payroll. Is it me or is this wording terrible? Trudeau is not a Conservative. It makes it sound like it is Trudeau's party that caused the problem.

Yeah why is his name there at all?

Re: Canada to Scrap IBM Payroll Plan Gone Awry Costing $1B

#154
post #149
post #38

Reminiscent of the state of Indiana's lawsuit against IBM for allegedly botching a project to automate the state's welfare system — lots of finger-pointing on both sides; the trial court's 65-page decision started out with the words, "Neither party deserves to win this case" [0]. The case has been up to the Indiana Supreme Court already [1]; on remand last summer, the trial court found that IBM is liable for USD $128…

Or Oregon v Oracle over their state healthcare exchange. http://www.oregonlive.com/politics/index.ssf/2016/09/post_18...

Or in Queensland with the $1.5b health payroll failure.

https://www.itnews.com.au/news/queenslands-ibm-ban-lives-on-...

Re: Canada to Scrap IBM Payroll Plan Gone Awry Costing $1B

#155

Earlier quoted context omitted.

>Payroll, also is ripe for disruption. From everything I hear about working with those companies—new and suitable replacements would be welcomed wholeheartedly. That is, if they can maintain the same level of professionalism and ability to handle situations like you mentioned. Reliability is of immense importance, so it's not as easy to just hack away at it and sell people an MVP and iterate.

Ripe for disruption, except that when you look at the laundry list of requirements, the thing that needs disrupting is the need for a billion different custom requirements, not a different payroll system.

I thought that too, until I learnt how all the payroll rules are fed into a mainframe for companies like ADP and Ceridian.

A mainframe stood between a client and their need.

Maybe we're after a better mainframe that doesn't need so much workarounds to do what has become payroll today.

I'm choosing to be optimistic that if a Stripe can navigate the payments industry, a payments startup could allow a better mainframe to be built through a rules engine that allows the degree of flexibility and data interoperability required in today's world.

Re: Canada to Scrap IBM Payroll Plan Gone Awry Costing $1B

#156

> Canada to scrap IBM payroll plan gone awry costing $1B. The Phoenix project was originally chosen by Prime Minister Justin Trudeau’s Conservative predecessors 10 years ago to centralize the government payroll. Is it me or is this wording terrible? Trudeau is not a Conservative. It makes it sound like it is Trudeau's party that caused the problem.

Yeah why is his name there at all?

And why isn't "The Harper Government"(TM) not named?

Re: Canada to Scrap IBM Payroll Plan Gone Awry Costing $1B

#157
post #23

Not having ever worked on anything like this, the death knell for these projects must be the inability to ever reduce functionality into a reasonable core set. Basically the 80/20 rule but where there are practically an infinite number of edge cases that stretch the project on indefinitely? You could serve 80% of the payroll burden with software that cost $10m. 90% coverage costs $100m. 98% costs $1,000m. And 100% co…

> You could serve 80% of the payroll burden with software that cost $10m. 90% coverage costs $100m. 98% costs $1,000m. And 100% costs $∞ I read something in a trade journal probably probably about 15 years ago, that really stuck with me: When businesses buy big software solutions (I think the article was about ERP systems), they should prepare to adjust and change their processes (within reason, of course) and not ju…

> Not just because it's very expensive, but because the resulting system will be brittle and incompatible and taking advantage of further developments.

But that's where the lure of the IBMs of this world comes in: they claim no change will be required, it's all free. Of course, we know that eventually it'll be a big fuckup.

Re: Canada to Scrap IBM Payroll Plan Gone Awry Costing $1B

#158
post #31

Earlier quoted context omitted.

There's actually a few at that size, Ceridian is one, ADP is another... Most have their pros and cons but ultimately can handle complex union type payrolls. Payroll, also is ripe for disruption.

>Payroll, also is ripe for disruption. From everything I hear about working with those companies—new and suitable replacements would be welcomed wholeheartedly. That is, if they can maintain the same level of professionalism and ability to handle situations like you mentioned. Reliability is of immense importance, so it's not as easy to just hack away at it and sell people an MVP and iterate.

Your comment made me think of two things: Accurate payroll, and auditing of data.

ACCURACY: One of the biggest things I learned is that a correct payroll isn't a correctly executed payroll, but one that the employee is paid correctly. What's the difference? A lot of payrolls have a ton of manual adjustments to fill the gaps, which never easily get codified. If the barrier to codifying rules could be improved, it would pretty easily start to push around mainframes.

AUDITING: Existing platforms like Ceridian and ADP appear to do an okay job with their auditing - any calculation set to be done by a computer, rule, or human is forever recorded on the same leger. For what I saw, it was a healthy paranoia of tracking how everything is calculated for liability's sake. Faving this available, for repairing data and fixing payrolls is more important than reliably executing incorrect rules, or data. It creates a great audit trail for weeding out behavior.

I'm in no way endorsing one product, but I was reasonably surprised by ADP's newish workforce platform. Of course, once we got into the weeds, things broke and and processes needed to be hacked or split up, but it was only because the ancient mainframe underpinning could not be touched. Which sucked.

If Teyve said in Fiddler on the Roof, all traditions were new once. Maybe all new mainframes were new once.

Re: Canada to Scrap IBM Payroll Plan Gone Awry Costing $1B

#159
post #88

Earlier quoted context omitted.

Decades of different payment rules are anything but simple. Imagine people hired over the last 50 years. Each at a different rate, pay scale, union, non-union, some people in a position have certain perks, some don't, and it all varies from region to region, province to province, department to department of the government. I recently oversaw a payroll transformation project in Canada for an energy co at a smaller, bu…

Let alone all the country specific rules. Just that is impossible to deal with properly.

Absolutely. You reminded me of the pain I blocked out from the project - at the end client decided to go international and now needed to pay people everywhere through separate entities after swearing they never would at the start.

Sadly the "global" payroll vendor did not have a global, multi-entity solution, and required individual accounts to be setup in each country and reconciled.

Creating a new multi-tenant, multi-entity, multi-country compatible mainframe is maybe something that needs further exploration.

Re: Canada to Scrap IBM Payroll Plan Gone Awry Costing $1B

#160

> The project was meant to save costs by firing 1,200 employees handling payroll at various departments around the country and replacing them with about 500 people in a centralized location using Phoenix to handle most of the government’s payroll needs. > The government will spend C$431 million to keep the program running in the near term, on top of C$460 million already spent to put Phoenix in place and fix the prob…

> Maybe there should be some kind of advisory board system Committees are a bad way to solve a problem of mis-aligned interests.

Perhaps we (developers) could improve the industry as a whole if we can provide a solution to this misalignment of interests.
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