Workday Confidential

Headquarters Nashville, Tennessee

About VUMC is one of the largest and most prominent academic medical centers in the Southeast.

Workday Footprint Core HCM, Recruiting, Talent, Payroll, Core Financials, Grants, Expenses, Procurement, Financial Planning, Inventory, Projects, People Analytics, Prism Analytics, Extend, Help, Success Plan

Deployment 24 months; Big Bang; Your Way; Partner-deployed (Deloitte)

# Employees 33,000+

Systems Replaced Oracle PeopleSoft, Infor M&D

• Consolidated multiple legacy systems, creating single source of truth for people and finance data; Streamlined reporting, improved data accuracy, reduced reconciliation

• Redirected developers to other roles such as product managers, release managers, and integration specialists, focusing on higher-value activities

• Improved HR staffing ratio by 8% (total employees per HR FTE from 75.9 to 82.4)

• Automated recruiting/onboarding tasks, reducing manual work and errors; Created smoother, engaging experience for new hires who can access systems before day 1

• Saved hundreds of hours to develop/manage distribution of total rewards statements

• Saved $939K in overpayments since go-live, representing 42% reduction; Reduced overpayments as a result of easier audits and automated steps within termination BP

• Consolidated chart of accounts by 79% (1,600 to 340); Reduced monthly manual journal entries by 90% and monthly journal entries reclassed by 80%

• Reduced year-end close process from 21 to 17 days

• Saved 15 days in responding to audit requests (from 60 to 45 days) and expanded automated key controls by 4X

• Absorbed 9% growth in grants (additional $78M) without additional FTEs

• Achieved 100% of users having report access and wide adoption of dashboards, improving productivity analysis and operational decision-making in clinical areas

“We transitioned from disparate planning solutions between the clinical and academic enterprises. As an AMC, we have funds flow between these enterprises which is difficult to manage – Now with Adaptive Planning, we have visibility across the board.” – Vice President, Finance Systems & Finance BI

BUSINESS OUTCOMES

CUSTOMER

CONTEXT

IMPROVED CAPABILITIES

CUSTOMER PROFILE

WORKDAY FOOTPRINT

PREVIOUS SYSTEM (REPLACED)

Platform

Workday Confidential

• Located in Nashville, Tennessee • 33,000+ employees • One of the largest and most prominent academic medical centers in the

Southeast

Workday Products: Core HCM, Recruiting, Talent, Payroll, Core Financials, Grants, Expenses, Procurement, Financial Planning, Inventory, Projects, People Analytics, Prism Analytics, Extend, Help, Success Plan

Deployment: 24 months; Big Bang; Your Way; Partner-deployed (Deloitte)

Prior to Workday, VUMC was operating in several disparate HR, finance, and supply chain solutions. In 2023, VUMC deployed Workday as their platform solution with the goals of streamlining and standardizing processes, automating workflows, and providing users with greater access to data.

In 2024, VUMC engaged Value Management for a Value Realization study ~18 months after go-live and to compare to their pre-Workday Baseline Assessment. VUMC consolidated their technology landscape, and improved operational efficiency, provided valuable data insights, and enabled teams to redirect resources to strategic efforts.

Platform: Oracle PeopleSoft, Infor M&D

System Modernization: With the adoption of Workday, VUMC streamlined its previously fragmented HR, finance, and supply chain systems, reducing reliance on external support. Simplified integration management has reduced the IT burden, improved efficiency, and allowed developers to transition into higher-value roles. Additionally, moving away from legacy solutions has eliminated system downtime.

Human Capital Management: VUMC’s technology transformation streamlined processes across several HR functions, with automation and standardized workflows enhancing efficiency and accuracy. Improvements in compensation and benefits allowed HR to shift focus to strategic initiatives, while talent management upgrades enabled better tracking and provided data for improved workforce management. These changes supported a more efficient and consistent HR function overall.

Financial Management: VUMC streamlined its finance operations by centralizing and automating processes across accounting, audit, procurement, and grants management. This resulted in a more efficient and accurate finance function with streamlined workflows. By consolidating systems and automating tasks, VUMC achieved significant time savings and improved data visibility, ultimately enabling better decision- making and resource allocation.

0% 15% finance IT team’s time dedicated to strategic work

overpayments by $939K (42% reduction)

Single source of truth for people and finance data

Planning and Data Insights: VUMC transformed its reporting and financial planning capabilities by providing real-time data access and significantly increasing the dimensions available for analysis. Expanded self-service reporting empowered leaders to make data-driven decisions. With widespread adoption of dashboards and reporting, VUMC achieved a data- driven culture with improved access to information and greater confidence in its accuracy.

8% improvement in HR staffing ratio

Saved hundreds of hours for total rewards statement development and distribution

90% monthly manual journal entries

21 17 days year-end close process

Absorbed 9% grants portfolio growth without additional FTEs

15 days to respond to audit requests

“We transitioned from disparate planning solutions between the clinical and academic enterprises. As an AMC, we have funds flow between these enterprises which is difficult to manage – Now with Adaptive Planning, we have visibility across the board.” – Vice President, Finance Systems & Finance BI

Improved operational decision-making with

100% of users with report access

3

What We Heard From You

• Consolidated multiple HR systems into one, creating a single source of truth for people data; Streamlined reporting, improved data accuracy, and reduced reconciliation efforts

• Improved HR staffing ratio by 8% (total employees per HR FTE ratio increased from 75.9 to 82.4)

• Standardized HR processes, leading to improved efficiency and consistency across the organization

• Enabled better coordination and management of organizational changes due to Workday’s integrated nature

• Empowered managers with greater access to data and self-service capabilities, increasing accountability and enabling better decision-making

HR Operations

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“We benefit a lot from having our HR data in one system and only having one system to report from. It has been a big advantage, not having to spend nearly as much time reconciling and aggregating data from multiple systems.” – HRIS Director

Business Outcomes

Human Capital Management Capability Assessment

“Workday has caused us to have more centralized and standardized processes, which, of course, shows itself as a benefit when it comes to reporting.” – HRIS Director

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What We Heard From You

• Decreased reliance on external support for HR IT due to Workday's ease of use and consolidated system landscape; Resulted in:

o Eliminating third-party vendor supporting PeopleSoft, saving $50K

o Retiring of cloud-based systems for performance and talent management

o Bringing recruitment reporting and data management in-house

• Simplified and eased integration management, reducing IT burden and improving efficiency

• Redirected developers to other roles such as product managers, release managers, and integration specialists, focusing on higher-value activities

HR IS/IT

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“Workday has really allowed us to come into the current times in a in a lot of ways and given us a lot of tools that we didn't have before. It has been able to really push the organization to think differently about what we do and how we do it.” – Senior Director, Human Resources

Business Outcomes

“Some of the feedback from the IT team [around integrations], is that it is much easier of a lift in Workday than it was in the external systems.“ – Executive Director, ERP

Human Capital Management Capability Assessment

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What We Heard From You

• Automated several previously manual recruiting processes, including offer letter signing, reference checks, referral process, and sign-on bonus processing

• Streamlined the referral process (previously entirely manual); Leveraged EIB functionality to create requisitions in bulk, which was particularly helpful during periods of high growth

• Transitioned from paper-based onboarding processes, creating a more efficient and modern experience for new hires

• Streamlined onboarding process and improved data due to integration with background check and e-verify systems

• Created a smoother and more engaging onboarding experience for new hires; Enabled new hires to access system prior to day 1

• Redirected HR operations team from manual data entry to focusing on auditing data and ensuring accuracy, reducing errors and risk

Recruiting and Onboarding

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“The signing of offer letters has been a great thing that we've been able to automate. Everything was done manually prior to Workday.” – HR Systems Project Manager

Business Outcomes

Human Capital Management Capability Assessment

“We went from a very paper world to the current century.” – Assistant Director, HR Processing

“We are also seeing some efficiency with our managers who are initiating transactions. They are no longer filling out paper forms or using email to get approvals.” – Assistant Director, HR Processing

Recruiting

Onboarding

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What We Heard From You

• Enabled more standardized and transparent compensation processes, particularly for out-of-range transactions and annual increases

• Automated compensation adjustments related to transfers

• Facilitated centralization of executive incentive plan management with compensation team (for 400 executive leaders)

• Saved hundreds of hours to develop and manage distribution of total rewards statement; Also eliminated spend for third party mailing statements out by enabling employees to access statements via self-service

• Enabled compensation team to redirect time to strategic efforts; e.g., Cleaning up job catalog/profiles and aligning employees on similar paygrade structure, allowing for easier market analysis/adjustments

• Brought benefits administration in-house, eliminating need for TPA and increasing control/trust in data and processes

• Automated benefit event triggers based on employee data changes, reducing manual intervention and improving accuracy

Compensation and Benefits

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“The system is dynamic and automatically handling transfers, whereas in our previous solution, we had a lot less flexibility with job changes, terminations, etc.” – Workday Functional Consultant

Business Outcomes

Human Capital Management Capability Assessment

“The total rewards statement previously was an ad hoc project that required manually packaging all of the different inputs together. The total rewards statement process in Workday is a vast improvement and not very complex to generate.” – Workday Functional Consultant

“Our ACA format and ACA reporting process in Workday, is seamless and easy to understand.” – Senior Human Resources Systems Consultant

Compensation

Benefits

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What We Heard From You

• Streamlined retro process and calculations, particularly those involving FLSA, saving significant time and effort (previously manually calculated)

o FLSA calculations previously took 2-4 weeks (few times per year) and now take no time

• Digitized the W-4 process (previously paper-based); Enabled team to view who is making changes and when

• Reduced overpayments as a result of easier audits and automated steps within the employee termination BP to stop future payments

o Saved $939K in overpayments since go-live, representing 42% reduction

Payroll

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“When an employee is terminated, one of the steps in the termination business process is to stop any future payments. This automation has helped our managers and helps us avoid any overpayments – We don’t have to think about it.” – Processing Analyst

Business Outcomes

Human Capital Management Capability Assessment

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What We Heard From You

• Provided a better platform for capturing employee information, tracking goals, and supporting performance management processes

• Achieved greater flexibility for customizing performance evaluations (i.e., templates and eligibility criteria)

• Automated scheduling of end-of-orientation evaluations, improving consistency and increasing completion rates

• Enabled performance conversations and related data to be recorded in a single system, improving data accessibility and integration with other talent processes

• Leveraged reporting insights to easily determine volume of performance evaluation at different stages and informed how best to encourage completion

Talent

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“We have better capabilities to capture information about our employees, their work history, their interests, and their goals all in the system.” – HRIS Director

Business Outcomes

Human Capital Management Capability Assessment

“With everything in a single system, it allows us the option to connect our talent data with other areas, such as compensation.” – Workday Functional Consultant

“By having talent in the same system as everything else, it remains front of mind for our managers.” – Senior Program Manager

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What We Heard From You

• Eliminated system downtime by shifting away from legacy solution

• Provided a more sophisticated data model with greater granularity, including revenue categories, spend categories, and funding work tags

• Increased Finance IT team’s time dedicated to strategic efforts from 0% to 15%

• Eliminated 1-day data lag and achieved access to real-time data

• Increased number of dimensions available for finance reporting by 6X

• Expanded self-service access to reporting for managers and leaders, resulting in greater utilization and data-driven decision-making

• Eased ability to write and generate trustworthy reports due to the underlying data structure of Workday

• Reduced reporting errors and increased confidence in accuracy of reports

• Provided P&L reports with employee work tag detail and drill-down capabilities, improving productivity analysis and operational decision-making in hospital and clinic areas

• Achieved 100% of users having report access and wide adoption of dashboards

Finance IS/IT and Financial Reporting

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“I appreciate that Workday is always up. I remember from the legacy systems that there was always a problem with at least one system down or not working right.” – Director, Finance

Business Outcomes

Financial Management Capability Assessment

“Now we deliver to our users more formatted reporting as opposed to our legacy solution. They can now easily run a cost center level P&L that has trending with volumes.” – Vice President, Finance Systems & Finance BI

“Reporting in Workday makes it much easier for me to get the right answer.” – Director, Finance

“We transitioned from disparate planning solutions between the clinical and academic enterprises. As an AMC, we have funds flow between these enterprises which is difficult to manage – Now with Adaptive Planning, we have visibility across the board.” – Vice President, Finance Systems & Finance BI

Finance IS/IT

Financial Reporting

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What We Heard From You

• Consolidated chart of accounts by 79% (1,600 to 340)

• Reduced monthly manual journal entries by 90% and monthly journal entries reclassed by 80%

o Manual journal entries reduced with digitization (previously submitted via paper) and with automated amortization schedules for prepaids

• Automated calculation of equity pickups and non-controlling interest based on ownership percentages, saving time and reducing errors

• Leveraged custom work tags to make professional revenue distribution to academic clinical departments more efficient; Reduced number of allocations for professional revenue distribution from 35,000 to 1,400

• Reduced year-end close process from 21 to 17 days

o Leveraged the close BP to streamline the workflow and avoid the need for email communication to manage the process

• Established 3-way match, improving accuracy (previously manual accrual)

Accounting

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“The ability to schedule an amortization schedule for the entire life of the prepaid has been fantastic – This used to be a series of journals in legacy.” – Director, Finance & Assistant Controller

Business Outcomes

Financial Management Capability Assessment

“We have been able to absorb additional project work without having to recruit incremental FTEs because of the efficiencies of the system.” – Vice President, Finance Systems & Finance BI

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What We Heard From You

• Saved 15 days in responding to audit requests (from 60 to 45 days) due to centralized data and improved access to supporting documentation

• Enabled internal audit to independently review business processes, approval trails, and segregation of duties

• Expanded automated key controls by 4X (5 to 20)

Audit

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Business Outcomes

“The audit team can look at our business processes and see the documented approval trail, whereas before, that would have involved more manual pulling of data and evidence of approvals.” – Director, Finance & Assistant Controller

Financial Management Capability Assessment

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What We Heard From You

• Transitioned from disparate solutions for medical supply, non-medical supply, and AP processing to a consolidated solution with a single source of truth

• Standardized procurement process, resulting in cleaner data, improved downstream efficiency, and more consistent data analysis

• Enhanced visibility into transactions, enabling quicker identification of non- compliant/out-of-policy spending and timely intervention

• Facilitated easier tracking and analysis of AP cycle time data, which was previously difficult to obtain in the legacy system

• Reporting and dashboards provide real-time data; With self-service reporting, users are empowered make informed decisions without delays

• Enabled team to redirect time to analyzing transactions and identifying areas of non-compliance versus solely processing

• Improved user experience; Employees find Workday to be intuitive and efficient

Procurement

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“We better understand and trust what our data is telling us, and when we do see an outlier we know that it's a true outlier.“ – Vice President, Supply Chain

Business Outcomes

“Workday has allowed our team to have greater visibility into areas of non-compliance and to be able to take appropriate action in a timely manner.“ – Vice President, Supply Chain

“I now don't have to necessarily rely on one person to get data. Because of the dashboards and self-service, this allows you to quickly be able to pull data yourself, and this has been a big win.” – Vice President, Supply Chain

Financial Management Capability Assessment

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What We Heard From You

• Replaced approximately 20 disparate Access databases and a custom web tool, consolidating grants management into a single system; Improved data accessibility and reduced the need to log into multiple systems

• Absorbed 9% growth in grants portfolio (additional $78M) without additional grants FTEs

• Streamlined various grant-related processes, including costing allocations, retro distributions, and effort certification

• Enabled users to easily drill down into grant details and access supporting documentation, reducing reliance on other departments for information

• Provided PIs with self-service access to grant balances and effort reporting data

o As a result of expanded self-service for PIs, it has freed up time for grants team to dedicate to other efforts (e.g., reconciliation)

Grants Management

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“With Workday, we are seeing the value of being able to just drill directly through and access all of the details that we need to support a grant, invoice, or financial report.“ – Director, Finance

Business Outcomes

“Workday Grants has been very well received by PIs. They have the self-service access to look at the remaining balances on their grants and to effort trending data for any employees that has time spent on their grants.” – Director, Finance