2018-143 Cornerstone Software RenewalDate: October 5, 2018 Report No. 2018-143
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INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Cornerstone performance management and learning management software contract renewal
EXECUTIVE SUMMARY:
Two items for technology solutions have been included on upcoming Council agendas: October 9 and
October 16, 2018, consent agenda. One of the items is to consider adoption of an ordinance authorizing the
purchase of software maintenance for Human Capital Management (HCM) software through Oracle. This
item is scheduled for October 9. The other item, scheduled for October 16, is to consider adoption of an
ordinance authorizing the renewal of the Performance Management and Learning Management software
system through Cornerstone OnDemand (“Cornerstone”). This software is used for the City’s online
performance reviews as well as training registration and training records management. It also offers some
online training opportunities for City staff.
The Oracle HCM software will replace Cornerstone as well as two other Human Resources information
systems (HRIS) in Human Resources; however, it will take approximately a year for full implementation.
To ensure there is no disruption to the online performance reviews and training registration/records
management, staff is requesting to renew the Cornerstone contract for one year.
BACKGROUND:
In 2014, the City started a Leadership Excellence Enhancement Program (LEEP). LEEP participants were
required to attend approximately a year of classroom training as well as complete a project. One of the
projects chosen focused on performance management. The LEEP group addressed several concerns with
the performance review process the City had at the time in a report and presentation to the City Council on
July 9, 2015. Their recommendations included the following goals: 1. Prioritize performance management;
2. Simplify the process, collaboration, and compliance; 3. Identify support and resources; and 4. Invest in
systems. They specifically recommended the purchase and implementation of performance management
and learning management software in order to accomplish strategic and operational goals. As a result, the
City contracted with Cornerstone to provide online performance management and learning management
solutions beginning in FY 15/16. This was a three-year contract with an October 20, 2018, expiration date.
Cornerstone is one of several software solutions the Human Resources Department utilizes for its core
services. Having multiple software solutions is inefficient and creates several challenges for the
organization. As a result, Human Resources staff and Technology Services staff worked collaboratively to
find a different solution through Oracle, which is included on the October 16, 2018, Council agenda for
approval. The software will be implemented in phases and full implementation (including staff training)
will take approximately a year. As such, the contract with Cornerstone needs to be renewed for FY 18/19
to avoid a disruption in the performance management and learning management processes.
Date: October 5, 2018 Report No. 2018-143
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DISCUSSION:
Oracle HCM will replace NEOGOV, Cornerstone, and Workterra. NEOGOV is the online applicant
tracking system that we use to post open positions and accept applications. Cornerstone is our talent
management system that we use for performance reviews, online training registration, some online training,
and training tracking. Workterra is used for online benefits enrollment. Other processes and procedures
will be improved with this new software as well.
This new software will offer many benefits to employees/supervisors, Human Resources staff, and the
organization as a whole. A complete listing of benefits is included in Exhibit A; however, some of the key
benefits include the following:
Improved user experience (not having to learn and access multiple software systems; easier online
accessibility);
Centralization of data;
Improved data integrity due to the elimination of duplicate data entry;
Employee “self-service” capabilities; and
Improved efficiencies due to the elimination of paper-driven processes and duplicate data entry.
The goal is to consolidate the funds spent on NEOGOV and Cornerstone, as well as the JDE maintenance
cost (for the Human Resources module), to fund Oracle HCM beginning in FY 19/20; therefore, there will
be no new costs to the City in future years.
However, it will take approximately a year to implement Oracle HCM. Therefore, we are requesting a
contract renewal with Cornerstone. As a result, there will be an additional cost of $70,772.28 in FY 18/19.
CONCLUSION:
Implementing Oracle HCM provides needed efficiencies. However, it will take approximately one year to
fully implement the software and train staff. To ensure continuity of services to the organization, we need
to renew our contract with Cornerstone for online performance and learning management for FY 18/19,
which will cost $70,772.28. Cornerstone is included in the Department of Information Resources (DIR)
Cooperative Purchasing Network.
STAFF CONTACT:
Carla Romine, Director of Human Resources
940-349-8344
Date: October 5, 2018 Report No. 2018-143
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EXHIBIT A
Benefit Organization Human
Resources
Employee Supervisor
Improved Data Integrity due to
elimination of duplicate data
entry
X X
Reduced Support Costs and
improve HR efficiencies due to
system consolidation
X X
Information security risks
reduced due to elimination of
forms (Laserfiche and paper)
X
Vendor management overhead
and costs reduction
X
Native integration to other Oracle
Cloud service (Contract
management) and JDE
X X
Elimination of paper driven
processes (Status Sheets, Emp
Development Plans)
X X X X
Reporting Capabilities for HR
business operation (Turnover,
performance reviews,
compensation, etc.)
X X X
Complete Employee Lifecycle
Management (recruit, onboard,
train, review, offboard)
X X X X
Simplified navigation of applicant
information for candidate
recruitment by cross-marketing
positions and applicants in the
system (e.g., supervisors can refer
applications to others)
X X X
Benefits summary for employees
(ability to self-serve and view
total compensation)
X X
Date: October 5, 2018 Report No. 2018-143
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Employee self-service change
requests to personal information
online versus going through their
supervisor, timekeeper, or
calling/visiting HR
X X X X
Service accessible from anywhere
at anytime
X X X
Improved user experience
(eliminate duplicate data entry,
additional user ids, passwords,
various look and feel of multiple
sites)
X
Single system for employee
information provides simplified
access for HR and employee data
X X X X
Centralization of employee
information (personal, training,
reviews, disclosures, etc)
X X X X