Government Exhibit P3062 [Non-designated testimony redacted]
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| 21 | Q Okay. And can you please state your full |
| 22 | name and address for the record, sir? |
| 23 | A Richard Scott Elliott, 410 North Mercedes |
| 24 | Drive, Norman, Oklahoma 73069. |
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| 15 | Q Mr. Elliott, what is your current job |
| 16 | title? |
| 17 | A Human resources portfolio manager for -- |
| 18 | or in information management and technology. |
| 19 | Q And who is your current employer? |
| 20 | A Kerr-McGee Corporation. |
| 21 | Q And how long have you held this position |
| 22 | at Kerr-McGee? |
| 23 | A Three years and a few days. |
| 24 | Q And can you please give me a general |
| 25 | description of your job responsibilities in your |
| 00009 |
| 1 | current position? |
| 2 | A Sure. I manage a group of IT |
| 3 | professionals that supports several of our |
| 4 | corporate clients, human resources, legal and |
| 5 | medical groups. |
| 6 | Q How many IT professionals do you manage? |
| 7 | A Eight other folks besides me. |
| 8 | Q And how many of those report directly to |
| 9 | you? |
| 10 | A All of them. |
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| 18 | Q Do you also do any work that would |
| 19 | support the financial aspect of Kerr-McGee? |
| 20 | A No, that's handled by another group in MI |
| 21 | & T. |
| 22 | Q Is there another person who would be |
| 23 | considered your counterpart that handles the |
| 24 | financials? |
| 25 | A Yes. |
| 00010 |
| 1 | Q And who is that? |
| 2 | A Bryan Wilks. |
| 3 | Q And what's his position? |
| 4 | A Portfolio manager as well for financial |
| 5 | systems. |
| 6 | Q And do your job responsibilities also |
| 7 | include responsibility for software procurement? |
| 8 | A In an advisement capacity, yes. |
| 9 | Q What do you mean when you say in an |
| 10 | advisement capacity? |
| 11 | A Our strategy at Kerr-McGee is that our |
| 12 | customers are the ones who drive software |
| 13 | procurement decisions and we are advisors to them |
| 14 | in that process. |
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| 17 | Q Are you also responsible for working to |
| 18 | insure that Kerr-McGee gets the best deal that it |
| 19 | can on software procurement? |
| 20 | A We act in different roles depending on |
| 21 | the, depending on the procurement activities. |
| 22 | Q Is it ever a goal to try to get the best |
| 23 | value or best price that you can on software |
| 24 | procurement? |
| 25 | A Always. |
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| 9 | Q. (By Ms. McKinney) Can you explain to me |
| 10 | generally what the nature of Kerr-McGee's |
| 11 | business is? |
| 12 | A Yes. Again, back to our two main lines |
| 13 | of business, oil and gas exploration and |
| 14 | production and then chemical manufacturing. Our |
| 15 | main product is titanium dioxide, a pigment. We |
| 16 | do produce a few other electrolytical chemicals |
| 17 | and for a short period of time we still have a |
| 18 | small business producing railroad ties. It's |
| 19 | being phased out at the end of this year. |
| 20 | Q And does Kerr-McGee have any |
| 21 | operations -- or let me ask it this way. In what |
| 22 | geographical areas does Kerr-McGee have |
| 23 | operations? |
| 24 | A We have operations, I don't know how many |
| 25 | states, but across the United States and to my |
| 00015 |
| 1 | knowledge we have operations in Brazil, Bonine, |
| 2 | Morocco, Australia, China, the Netherlands, |
| 3 | Germany, the UK. Those are the major ones. |
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| 2 | Q So given the definitions that you've just |
| 3 | given me, does the oil and gas division have |
| 4 | independent authority for procurement of any ERP |
| 5 | software? |
| 6 | A In my experience at Kerr-McGee, those ERP |
| 7 | software decisions have been global decisions, |
| 8 | not business unit specific. |
| 9 | Q And what do you mean by global decisions? |
| 10 | A We, our preferred strategy at Kerr-McGee |
| 11 | is to have for each major functional area one |
| 12 | global supplier of software. In financials we |
| 13 | have one, in HR we have one. We have not been |
| 14 | able to accomplish that yet in the supply chain |
| 15 | side to my knowledge. |
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| 18 | Q. (By Ms. McKinney) And how would you |
| 19 | define core functionality on the financial |
| 20 | management side? |
| 21 | A The general ledger, accounts payable. |
| 22 | There are a variety of for us revenue or I should |
| 23 | say upstream oil and gas specific accounting |
| 24 | functions that would be core for us. I'm sure |
| 25 | there's a variety of others that could be listed, |
| 00032 |
| 1 | but those are the ones that are main ones for us |
| 2 | in my opinion. |
| 3 | Q Do you know what any of those oil and gas |
| 4 | specific accounting functions are? |
| 5 | A Some. |
| 6 | Q Can you name them for me? |
| 7 | A One would be -- the two major items are |
| 8 | tracking production and then tracking the revenue |
| 9 | that we receive for production. |
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| 1 | Q. (By Ms. McKinney) Would these |
| 2 | accounting functions you've just named, tracking |
| 3 | the production and tracking revenue, are those |
| 4 | functions that are specific to an oil industry or |
| 5 | to an oil company? |
| 6 | A That's not my area of expertise, but it |
| 7 | would seem to be so because that is oil and gas |
| 8 | production and oil and gas revenue. |
| 9 | Q Which software vendors offer core |
| 10 | financial management functionality? |
| 11 | MR. HAMMAKER: Objection, vague and lacks |
| 12 | foundation. |
| 13 | THE WITNESS: I don't know the complete |
| 14 | list. Again, not my area of expertise or |
| 15 | responsibility. |
| 16 | Q. (By Ms. McKinney) Do you know some? |
| 17 | A Yes. |
| 18 | Q Which ones would you name? |
| 19 | A The ones I can specifically name would be |
| 20 | PeopleSoft, Oracle, Lawson and SAP. |
| 21 | Q And with regard to human resources |
| 22 | management core functionality, which vendors |
| 23 | offer HR core functionality? |
| 24 | A Again, I don't know the complete list, |
| 25 | but I would list the same four. |
| 00034 |
| 1 | Q Any others? |
| 2 | A It's my understanding that Microsoft |
| 3 | purchased Great Plains, which I believe offers in |
| 4 | name at least those core functionality. |
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| 25 | Q But you don't have the same level of |
| 00035 |
| 1 | knowledge about Lawson, SAP or Microsoft that you |
| 2 | do about Oracle and PeopleSoft? |
| 3 | A The Oracle and PeopleSoft knowledge is |
| 4 | more current than the other two because we did |
| 5 | not -- or the other three. We did not have |
| 6 | detailed evaluations of Microsoft and of SAP |
| 7 | during our selection process. Lawson I do have a |
| 8 | feel but not detailed modules or detailed |
| 9 | functionality. |
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| 3 | Q Mr. Elliott, who would you name to be the |
| 4 | foremost ERP software vendors currently? |
| 5 | MR. HAMMAKER: Objection, vague, lacks |
| 6 | foundation. |
| 7 | THE WITNESS: Based on our process and a |
| 8 | review of Gartner recommendations, the same four |
| 9 | I listed previously, PeopleSoft, Oracle, Lawson |
| 10 | and SAP. |
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| 8 | Q. (By Ms. McKinney) And in your opinion |
| 9 | what factor or factors drive innovation in the |
| 10 | software industry? |
| 11 | A I would list competition, business |
| 12 | environment changes, customer demands, regulatory |
| 13 | changes. |
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| 10 | Q Do you consider Kerr-McGee's ERP software |
| 11 | needs to be complex? |
| 12 | A Yes. |
| 13 | Q Do you consider them to be unique? |
| 14 | A No. |
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| 23 | Q. (By Ms. McKinney) Mr. Elliott, what |
| 24 | core financial management software does |
| 25 | Kerr-McGee use? |
| 00043 |
| 1 | A Oracle. |
| 2 | Q And -- |
| 3 | A And Energy Extensions from P2ES. |
| 4 | THE REPORTER: P2BS? |
| 5 | THE WITNESS: ES. |
| 6 | Q. (By Ms. McKinney) Do you know what |
| 7 | modules it uses from Oracle on the finance side? |
| 8 | A I do not know for sure. |
| 9 | Q And what is Energy Extensions? |
| 10 | A To my knowledge that deals with all of |
| 11 | the oil and gas specific revenue accounting |
| 12 | including production. |
| 13 | Q Would you consider that a point solution? |
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| 17 | THE WITNESS: I really could go either |
| 18 | way on that. It's integrated with Oracle. I |
| 19 | think, my opinion would be that it is not. |
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| 23 | Q And why would it not be considered a |
| 24 | point solution in your opinion? |
| 25 | A Oracle integration. |
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| 5 | Q Is the Oracle financial management |
| 6 | software used in both the oil and gas and the |
| 7 | chemical manufacturing business units? |
| 8 | A Yes. |
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| 2 | Q Are there any business units within |
| 3 | Kerr-McGee that use some other financial |
| 4 | management software besides Oracle? |
| 5 | A If there are I don't know. |
| 6 | Q Do you know when Oracle financial |
| 7 | management software was initially purchased or |
| 8 | licensed? |
| 9 | A Prior to the year 2000. |
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| 18 | Q Do you know what languages Kerr-McGee |
| 19 | operates the Oracle financial management software |
| 20 | in? |
| 21 | A I do not. |
| 22 | Q And do you know what currencies are used |
| 23 | on the Oracle financial management software, if |
| 24 | there are any foreign currencies used? |
| 25 | A I'm sure there are, but I don't know |
| 00046 |
| 1 | specifically what we use. |
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| 17 | Q We'll shift to the HR side now. |
| 18 | What core HR software does Kerr-McGee |
| 19 | currently use? |
| 20 | A PeopleSoft. |
| 21 | Q And is the PeopleSoft software used in |
| 22 | all geographic regions where Kerr-McGee operates? |
| 23 | A Yes. |
| 24 | Q And are there any business units that do |
| 25 | not use the PeopleSoft HR software? |
| 00047 |
| 1 | A No. |
| 2 | Q And when was the PeopleSoft HR software |
| 3 | initially purchased or licensed? |
| 4 | A 2001. |
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| 7 | Q And do you recall how much Kerr-McGee |
| 8 | paid PeopleSoft? |
| 9 | A There are documents that support this. I |
| 10 | believe the license fees were in the neighborhood |
| 11 | of 1.5 million. |
| 12 | Q And did Kerr-McGee pay PeopleSoft any |
| 13 | implementation fees? |
| 14 | A No. They were not our implementation |
| 15 | partner. |
| 16 | Q And does it currently pay PeopleSoft, |
| 17 | does Kerr-McGee currently pay PeopleSoft any |
| 18 | maintenance fees? |
| 19 | A Yes. |
| 20 | Q And how much does it pay in maintenance |
| 21 | fees? |
| 22 | A This year it will be approximately |
| 23 | 360,000,I believe, this year. |
| 24 | Q Do you know what it has been in previous |
| 25 | years since the implementation? |
| 00048 |
| 1 | A Yes. |
| 2 | Q What has it been? |
| 3 | A The first year was 300,000, succeeding |
| 4 | year was around 330 and then I believe about 345. |
| 5 | Q That brings us to this year, which was |
| 6 | 360? |
| 7 | A Uh-huh. |
| 8 | Q What version of the PeopleSoftHR |
| 9 | software does Kerr-McGee use? |
| 10 | A Is there a specific module that you're |
| 11 | asking about? |
| 12 | Q I guess we should back up. Which modules |
| 13 | were licensed? |
| 14 | A We have HR, we have time and attendance, |
| 15 | we have licensed payroll, benefits |
| 16 | administration, data warehouse. There are three |
| 17 | analytic suites that we have licensed, Workforce |
| 18 | Analytics, Score Card and Rewards. In case I'm |
| 19 | missing any of these there's a document in our |
| 20 | material that reflects all of them. Employee and |
| 21 | manager self service and a variety of E modules |
| 22 | such as compensation, recruiting, compensation |
| 23 | manager, E pay. |
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| 10 | Q In which languages does Kerr-McGee |
| 11 | operate the PeopleSoft HR software? |
| 12 | A Currently English, German and Dutch. |
| 13 | Q And do you have any plans to operate it |
| 14 | in any additional languages? |
| 15 | A Not at the moment. |
| 16 | Q And in which currencies, if there are any |
| 17 | foreign currencies involved, does Kerr-McGee |
| 18 | operate the PeopleSoft HR software? |
| 19 | A Foreign is highly dependent on where you |
| 20 | are, but if you're talking non U.S. currencies -- |
| 21 | Q Non U.S., yes. |
| 22 | A Yes. We -- I'm sorry, we also use |
| 23 | French. For -- we use the pound in the UK, we |
| 24 | use the euro, we also use the Swiss frank, we |
| 25 | also have a Canadian dollar. And I believe |
| 00050 |
| 1 | that's it. I think the rest of our folks are ex |
| 2 | pats, and so it would be the U.S. dollar. |
| 3 | Q Are these foreign currencies that you |
| 4 | named, are those currencies in which employees |
| 5 | are being paid? |
| 6 | A Yes. |
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| 8 | Q Is there any other human resources |
| 9 | management software that Kerr-McGee uses? |
| 10 | A No. We have one global instance. |
| 11 | Q Do you use any software from any of the |
| 12 | following vendors? And I'm going to go down the |
| 13 | list. Do you use any software from SAP? |
| 14 | A Kerr-McGee does not. We contract for |
| 15 | payroll processing in Germany with a company who |
| 16 | does. |
| 17 | Q What do you mean when you say you |
| 18 | contract for payroll processing? |
| 19 | A We pay a fee each year for a company to |
| 20 | produce payroll checks for us in Germany. |
| 21 | Q Is that similar to outsourcing payroll? |
| 22 | A It's outsourcing the production of |
| 23 | checks. |
| 24 | Q But would you consider it outsourcing of |
| 25 | the payroll function? |
| 00052 |
| 1 | A No. |
| 2 | Q Just the check process? |
| 3 | A We take care of the function, they |
| 4 | produce the checks. It's not BPO. |
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| 14 | Q Do you use Hyperion? |
| 15 | A I believe we do for some financial |
| 16 | planning, but I am not 100 percent certain. |
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| 7 | Q And do you use any software from ADP |
| 8 | aside from the payroll processing in Germany? |
| 9 | A We outsource payroll, check production to |
| 10 | ADP in the United States. And there is a piece |
| 11 | of software that lives at our site that enables |
| 12 | that to happen. |
| 13 | Q Do you outsource any other part of the |
| 14 | payroll function aside from check processing? |
| 15 | A ADP handles production of checks, direct |
| 16 | deposits, tax filing. Other than that we do all |
| 17 | of the process work ourselves. |
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| 00054 |
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| 8 | Q. (By Ms. McKinney) I'd like to ask you |
| 9 | now about the process through which you selected |
| 10 | PeopleSoft for HR software. |
| 11 | A Okay. |
| 12 | Q When did that process begin? |
| 13 | A The actual selection process began |
| 14 | shortly after my arrival at Kerr-McGee, which |
| 15 | would be June 2001. |
| 16 | Q And who was the primary person |
| 17 | responsible for the selection of new HR |
| 18 | management software? |
| 19 | A The lead person would have been Lynda |
| 20 | Garcia. |
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| 00055 |
| 1 | Q Is she still with Kerr-McGee? |
| 2 | A She is. |
| 3 | Q Do you know what her title is now? |
| 4 | A I do not. She's in the finance |
| 5 | organization. |
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| 11 | Q And do you know if Ms. Garcia was the |
| 12 | person who managed the project on a day to day |
| 13 | basis? |
| 14 | A The selection project? |
| 15 | Q Yes. |
| 16 | A She was, she was our lead person on the |
| 17 | Kerr-McGee side. |
| 18 | Q Did she have any title associated with |
| 19 | the selection process such as project manager or |
| 20 | something similar? |
| 21 | A Not that I'm aware of. |
| 22 | Q And what was your involvement in the |
| 23 | selection process? |
| 24 | A I was the I think technical lead was the |
| 25 | official title. |
| 00056 |
| 1 | Q And what did that mean in practical |
| 2 | terms? |
| 3 | A Practical terms, I managed our group of |
| 4 | individuals from the IT side that participated in |
| 5 | the selection process. I also participated in |
| 6 | day to day activities such as question formation, |
| 7 | reviewing demonstrations, doing research if |
| 8 | required. |
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| 00057 |
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| 8 | Q. (By Ms. McKinney) And what do you |
| 9 | recognize this document to be? And let me just |
| 10 | say for the record, this document appears to be a |
| 11 | Power Point, on the front it's entitled |
| 12 | Kerr-McGee HR Financial Analysis, Employee |
| 13 | Service Center and HRIS dated September 2001 and |
| 14 | Bates labeled Kerr-McGee 008 through 040. |
| 15 | Mr. Elliott, what do you recognize this |
| 16 | document to be? |
| 17 | A This document is a summarization of the |
| 18 | HR strategy that our HR organization was pursuing |
| 19 | in 2001. |
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| 00058 |
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| 24 | Q The first one says project consultants, |
| 25 | Scott, Madden & Associates. And who was Scott, |
| 00059 |
| 1 | Madden & Associates? |
| 2 | A An HR consulting firm. |
| 3 | Q And what was their role on the HR |
| 4 | software selection process? |
| 5 | A It's described well here. They were |
| 6 | facilitators for the process. |
| 7 | Q And what did they do as facilitators? |
| 8 | A A facilitator, possibly coordinator is an |
| 9 | equally good term. They organized the work |
| 10 | products, facilitated discussions, facilitated |
| 11 | planning, were responsible for not only the HRIS |
| 12 | side but integrating it into the larger HR |
| 13 | strategy that this document represents. And that |
| 14 | was their sole involvement. As it states here, |
| 15 | they do not have or at least did not have at that |
| 16 | time an HRIS implementation practice. |
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| 00060 |
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| 2 | Q Why did you feel it was necessary to |
| 3 | engage a consultant to assist in this process? |
| 4 | A I can't answer for Lynda. |
| 5 | Q Was it Lynda who made the decision to |
| 6 | engage Scott, Madden? |
| 7 | A It was the HR organization as a whole and |
| 8 | Lynda was our point person. |
| 9 | Q And who was the main point person for |
| 10 | working with Scott, Madden? |
| 11 | A Lynda and I were both part of the, quote |
| 12 | unquote, project office, but Lynda was our point |
| 13 | person on the project within. |
| 14 | Q Do you know how much Kerr-McGee paid |
| 15 | Scott, Madden for its consulting services? |
| 16 | A I do not. |
| 17 | Q Would Lynda know? |
| 18 | A It's been a while. You'd have to ask |
| 19 | her. |
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| 25 | Q. (By Ms. McKinney) Now, next on this |
| 00061 |
| 1 | list it says HRIS project office. |
| 2 | A Uh-huh. |
| 3 | Q Do you know what that term means? |
| 4 | A I know what it means with regards to our |
| 5 | selection process. |
| 6 | Q Sure. What was the HRIS project office? |
| 7 | A Would you like me to read it straight off |
| 8 | the document? |
| 9 | Q No. I would like to know, you know, what |
| 10 | you know. If the document helps to refresh your |
| 11 | recollection, that's fine, but I'd like you to, |
| 12 | you know, testify based on your knowledge. |
| 13 | A My view of the HRIS project office, the |
| 14 | responsibilities again are listed here |
| 15 | specifically. We as a group were responsible for |
| 16 | coordinating, well, the execution of the project, |
| 17 | obtaining resources, doing the visits as we |
| 18 | discussed. There were a lot of discussions |
| 19 | regarding what questions would be asked, what |
| 20 | weighting would be assigned to each one of the |
| 21 | criteria, how the RFPs or RFIs would look after |
| 22 | they were issued and we were facilitators, |
| 23 | coordinators on all those. My personal main task |
| 24 | was to coordinate the technical resources |
| 25 | involved. |
| 00062 |
| 1 | Q Were you a part of the HRIS project |
| 2 | office? |
| 3 | A Yes. |
| 4 | Q Who else was a part of the HRIS project |
| 5 | office, do you know who made up that group? |
| 6 | A Lynda Garcia was the main person and |
| 7 | officially we included Scott, Madden as a part of |
| 8 | the project office. |
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| 25 | Q And then these boxes here on Page 7, you |
| 00063 |
| 1 | said these are all people who participated in the |
| 2 | process? |
| 3 | A Yes. |
| 4 | Q Anda are these all groups that would be |
| 5 | end users of the software? |
| 6 | A Yeah. |
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| 11 | Q. (By Ms. McKinney) How were these people |
| 12 | selected to participate in the selection process? |
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| 15 | THE WITNESS: I don't recall the exact |
| 16 | process we went through to choose the folks. The |
| 17 | goal was to have people representing as many |
| 18 | different areas in the HR organization as we |
| 19 | could and plus involve technical people in from |
| 20 | several of our major areas as well. |
| 21 | Q. (By Ms. McKinney) Who selected these |
| 22 | people who were participants in the software |
| 23 | selection process? |
| 24 | A I'll go back to my previous answer. I |
| 25 | don't know the exact details of how we selected |
| 00064 |
| 1 | these people. As I look through here it was I |
| 2 | believe my recommendations on the technical side |
| 3 | to say these are the people that need to |
| 4 | participate based on their areas of expertise. |
| 5 | Q And was Lynda Garcia responsible for |
| 6 | selecting the other people involved here? |
| 7 | A I'll say again, I don't know the details |
| 8 | of how they were selected. |
| 9 | Q But you selected the people listed in |
| 10 | this box labeled technical who are here under |
| 11 | your name? |
| 12 | A Yes. |
| 13 | Q And are those the people you referred to |
| 14 | earlier who you were responsible for managing |
| 15 | throughout the selection process? |
| 16 | A For this process, yes. |
| 17 | Q Were you responsible for managing anyone |
| 18 | else on this chart? |
| 19 | A No. |
| 20 | Q Was Lynda Garcia responsible for |
| 21 | coordinating the other people in these other |
| 22 | boxes on this page? |
| 23 | A Yes. She served as the functional lead, |
| 24 | if you will. |
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| 24 | Q Can you tell me what, what the role of |
| 25 | subject matter experts was in this process? |
| 00066 |
| 1 | A As I recall, basically the document says |
| 2 | input and guidance. Many of these folks would be |
| 3 | consumers of, as I recall, some of the services |
| 4 | within the HRIS. |
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| 12 | Q Did the -- did the technical team that |
| 13 | you were responsible for managing meet on a |
| 14 | regular basis throughout the selection process? |
| 15 | A Yes. We had scheduled meetings plus as |
| 16 | needed meetings depending on what was happening |
| 17 | in the process. |
| 18 | Q Let me back up just a second. How long |
| 19 | did the selection process take in total? |
| 20 | A We started this in June of 2001, the |
| 21 | contract was signed I believe at the end of |
| 22 | October 2001. |
| 23 | Q And how frequently did the technical team |
| 24 | meet during that time? |
| 25 | A I don't think there was any standard |
| 00067 |
| 1 | number of meetings we had on a weekly basis. |
| 2 | Q So you didn't have some kind of regular |
| 3 | set time for meeting? |
| 4 | A No. There was -- as I recall, there were |
| 5 | group meetings where the entire group met |
| 6 | together. |
| 7 | Q Would that have been the entire -- |
| 8 | A Core selection team. |
| 9 | Q -- core selection team? |
| 10 | Including your technical team? |
| 11 | A Yeah. |
| 12 | Q And how frequently were those meetings? |
| 13 | A I think it depended on where we were in |
| 14 | the process. I can't recall the exact schedule. |
| 15 | Q Could you estimate the total number of |
| 16 | times that the HRIS core selection team met over |
| 17 | the course of the selection process? |
| 18 | MR. GORESEN: I'm going to object to the |
| 19 | extent it calls for speculation. |
| 20 | THE WITNESS: Anything I gave you would |
| 21 | be a guess. |
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| 5 | Q And with regard to your technical team, |
| 6 | can you estimate how many times your technical |
| 7 | team met on its own throughout the entire |
| 8 | selection process? |
| 9 | A As an estimate, we were visiting maybe |
| 10 | not in total but at least, you know, two or more |
| 11 | weekly basis. We did not have a set time where |
| 12 | we got together as an entire team, only as |
| 13 | needed. |
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| Q I'm not going to ask any more questions |
| 00069 |
| 1 | on this document for a little bit. |
| 2 | What were the main responsibilities of |
| 3 | your technical team in this process? |
| 4 | A To review, to the extent we could, the |
| 5 | technical soundness of the proposed solutions. |
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| 23 | Q Do you know if any presentation was ever |
| 24 | made to the CEO or other executives regarding the |
| 25 | selection of PeopleSoft? |
| 00070 |
| 1 | A I believe there was. |
| 2 | Q And were you part of that presentation? |
| 3 | A No. |
| 4 | Q Who did that presentation? |
| 5 | A I believe Lynda did. |
| 6 | Q Do you know when that was? |
| 7 | A I do not know the exact date. My surmise |
| 8 | would be either late September or early October. |
| 9 | Q Did you work with Lynda at all in |
| 10 | preparing that presentation? |
| 11 | A Scott, Madden was again the main |
| 12 | facilitator for producing documents, but I did |
| 13 | participate with Lynda as well. |
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| 3 | Q In addition to Scott, Madden, did you |
| 4 | consult with any other outside resources as part |
| 5 | of the selection process? |
| 6 | A One would have been Gartner. |
| 7 | Q And what was your interaction with |
| 8 | Gartner Group? |
| 9 | A We asked the question who would be their |
| 10 | I believe the term is magic quadrant vendors with |
| 11 | regards to the HR space. |
| 12 | Q And what did they tell you? |
| 13 | A PeopleSoft, Oracle, SAP, Lawson. |
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| 13 | Q And did you personally have contact with |
| 14 | someone at Gartner Group? |
| 15 | A I did not. |
| 16 | Q Do you know who did? |
| 17 | A I believe Lynda. |
| 18 | Q And do you know if she met with them in |
| 19 | person? |
| 20 | A I do not know for sure. |
| 21 | Q Do you know if she had personal contact |
| 22 | with them at all? |
| 23 | A Yes. I know for a fact there was |
| 24 | definitely a phone visit. At that time we had a |
| 25 | subscription to their services, so I don't know |
| 00074 |
| 1 | if there was anything else involved. |
| 2 | Q Do you know if they provided Kerr-McGee |
| 3 | with any written research report? |
| 4 | A I don't know. Ours was a fairly simple |
| 5 | and straightforward question. |
| 6 | Q So you never saw some written research |
| 7 | report from Gartner Group? |
| 8 | A No. |
| 9 | Q So the information that came from Gartner |
| 10 | Group you got through Lynda Garcia? |
| 11 | A Yes. |
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| 24 | Q At what stage did you make reference |
| 25 | calls? |
| 00075 |
| 1 | A After, I believe, the field had been |
| 2 | narrowed to PeopleSoft and Oracle. |
| 3 | Q So you didn't call any references for |
| 4 | Lawson or SAP? |
| 5 | A None. |
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| 25 | Q. (By Ms. McKinney) Do you consider |
| 00076 |
| 1 | yourself to be a sophisticated customer of EAS |
| 2 | software? |
| 3 | MR. GOREEN: I'm going to ask for -- are |
| 4 | you asking if Scott Elliott considers himself to |
| 5 | be a sophisticated customer? |
| 6 | MS. McKINNEY: Yes. |
| 7 | THE WITNESS: When it comes to |
| 8 | Kerr-McGee's needs, yes. |
| 9 | Q. (By Ms. McKinney) Could you describe |
| 10 | for me the main steps in the process of selecting |
| 11 | the PeopleSoft HR software, if you know? |
| 12 | A You have the documents that describe all |
| 13 | of them. At a high level, again, based on |
| 14 | Gartner's recommendations, we identified four |
| 15 | companies that we felt like we should pursue. |
| 16 | All four companies were contacted to let them |
| 17 | know that we were actively engaged in a selection |
| 18 | process. PeopleSoft, Oracle and Lawson |
| 19 | responded. SAP did not. The request for |
| 20 | information and detailed questions were |
| 21 | developed, sent out and received back from those |
| 22 | three vendors. We had on site demonstrations at |
| 23 | Kerr-McGee from those three vendors. The RFI |
| 24 | responses and the presentations were graded by |
| 25 | the HRIS selection team. Lawson was eliminated |
| 00077 |
| 1 | based on that grading. PeopleSoft and Oracle |
| 2 | returned for additional demonstration. Two |
| 3 | visits were made, one to Oracle headquarters, one |
| 4 | to a PeopleSoft executive gathering. Reference |
| 5 | calls were made. The team made the |
| 6 | recommendation to upper management and they |
| 7 | approved. |
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| 12 | Q Were there any other factors that went |
| 13 | into developing that list of what four vendors |
| 14 | Kerr-McGee would consider? |
| 15 | A Yeah, there were two other vendors |
| 16 | that -- I'm not sure, I can't remember the exact |
| 17 | nature of the research we did, but Baan and J.D. |
| 18 | Edwards were both considered in addition to those |
| 19 | four folks. Based on what we could determine, I |
| 20 | would think primarily from J.D. Edwards website, |
| 21 | it looked like they lacked the international |
| 22 | functionality that we thought we needed. Baan |
| 23 | was in serious financial difficulty prior to |
| 24 | their acquisition by SSI. |
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| 18 | Q And then you mentioned that all four of |
| 19 | the vendors on your list, Oracle, PeopleSoft, SAP |
| 20 | and Lawson, were contacted? |
| 21 | A Correct. |
| 22 | Q In what way were they contacted by |
| 23 | Kerr-McGee? |
| 24 | A I believe Lynda Garcia phoned each one of |
| 25 | them personally. |
| 00079 |
| 1 | Q And do you know about what time frame |
| 2 | this was in? |
| 3 | A It would have been in June, I believe. |
| 4 | Q And were you on any of those phonecalls |
| 5 | that Lynda Garcia made? |
| 6 | A No. |
| 7 | Q Do you know the nature of the phonecalls |
| 8 | or what she said to them? |
| 9 | A Back to my previous, previous answer. It |
| 10 | would have been that we were actively engaged in |
| 11 | an HR selection process and we were contacting |
| 12 | them to solicit their participation and to also |
| 13 | find out where we should send our request for |
| 14 | information. |
| 15 | Q At the time that she called each of those |
| 16 | four, do you know if Kerr-McGee intended to send |
| 17 | each of those four vendors an RFI? |
| 18 | A I believe that was our intent. |
| 19 | Q And did she ask for any response from |
| 20 | them during those phone conversations? That is, |
| 21 | was she seeking any response from them prior to |
| 22 | sending the RFI? |
| 23 | MR. GORESEN: I'm going to object to the |
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| 00080 |
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| 3 | A To the best of my knowledge it was to |
| 4 | whom and where should we send the RFIs. |
| 5 | Q And you said that three responded? |
| 6 | A Yeah. |
| 7 | Q And which three were those? |
| 8 | A PeopleSoft, Oracle and Lawson. |
| 9 | Q And SAP did not respond? |
| 10 | A Correct. |
| 11 | Q And what does that mean? |
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| 17 | Q. (By Ms. McKinney) Does that mean -- did |
| 18 | Lynda talk to anyone at SAP? |
| 19 | A I do not know specifically who she would |
| 20 | have talked to. They did not provide the |
| 21 | information which was who should we send the RFI |
| 22 | to and to where should it be sent. |
| 23 | Q Do you know if she, if she was able to |
| 24 | get anyone on the phone and speak with them? |
| 25 | A I do not know. |
| 00081 |
| 1 | Q Do you know who she tried to call at SAP? |
| 2 | A No. |
| 3 | Q Do you know if she left a voice-mail with |
| 4 | anyone at SAP? |
| 5 | A I wasn't in on the call. I don't know if |
| 6 | she talked to a person or left a voice-mail. |
| 7 | Q Do you know if she ever sent any written |
| 8 | communications to SAP? |
| 9 | A Not that I'm aware of. |
| 10 | Q Do you know if she made any subsequent |
| 11 | attempts to contact SAP either by phone or |
| 12 | through written communications? |
| 13 | A I believe there was more than one |
| 14 | attempt. I don't know how many. |
| 15 | Q Do you know how long of a time period she |
| 16 | spent trying to get in touch with SAP? |
| 17 | A &n | |