The NASPP Blog

Tag Archives: software

July 28, 2011

The Deja View

For today’s blog entry, we feature guest author Kim Kovacs of OptionEase on new technologies for stock plan administration. Kim, along with Edwin Yuen of Microsoft and John Hammond of AST Equity Plan Solutions, will lead the session “The Deja View: Game-Changing Technologies for Stock Plan Administration” at the 19th Annual NASPP Conference in November.

The Deja View: Game-Changing Technologies for Stock Plan Administration
By Kim Kovacs of OptionEase

Recent technological advancements have propelled equity compensation administration and participation to new levels of convenience and effectiveness. Firms are now using “software as a service” to integrate brokerage platforms with equity compensation administration and financial reporting software. The growth in utilization of web-based software has improved results while reducing administrative hours.

Cloud computing, or the use of web-based software to access shared data, has long been a hot topic in the IT world. This model of network access eliminates the need for locally installed software while providing easier access to information. Recently, the focus of the “cloud computing” discussion has shifted from discussing the cloud itself to the utility and implications of moving to the cloud. In the context of equity compensation, the utility of the cloud includes ease of access for both participants and administrators to an always up-to-date, more cost effective online system. The questions become: at what pace should the equity compensation industry move to the cloud, and what model should it use? The debate over the pace of moving to the cloud stems from the perceived need to compromise between access and control. Companies want to give users the most flexible, user-friendly experience possible while maintaining data in a secure and controlled manner. Some firms are using a hybrid model combining locally installed systems with cloud computing, while others have been able to leverage the cloud fully to give participants and administrators the most convenient usage possible while maintaining data security.

Participants are rapidly increasing their use of tablet PCs and smartphones in a business context. As IT is increasingly “consumerized,” participants demand access via the device of their choosing, and expect connection on the go. The synergies between the consumerization of IT and the movement to software as a service are numerous: participants are able to view their award information in real time through participant portals and are able to take action in accepting grants and exercising awards. The end result is that participants have a greater sense of ownership over their awards, which enhances the effectiveness of the company’s equity compensation plan.

The user interface for equity compensation administration and compliance systems is changing along with the movement to a software as a service platform. Administrators expect customizable dashboard views that allow for quick and effective actions. Participants and administrators are increasingly intolerant of multiple sign-ons or dealing with separate interfaces for their equity compensation needs. Participants expect to initiate exercises via portal and to have access to tax withholding and scenario modeling information.

Our industry is poised to take advantage of these new developments to better communicate the value of equity compensation plans to participants. A more streamlined, accessible, and actionable system increases participant motivation, improves administrative accuracy and efficiency, and reduces expense.

Find out what might be next for your administrative platform with Kim’s session, “The Deja View: Game-Changing Technologies for Stock Plan Administration” at the 19th Annual NASPP Conference.

Register for the 19th Annual NASPP Conference
The 19th Annual NASPP Conference will be held from November 1-4 in San Francisco.  The last time we were in San Francisco, the Conference sold out and this year promises to be just as exciting (but a lot roomier–we’ll be in a much bigger space).  Register for the Conference today!

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June 9, 2011

Automation 1-2-3

Automation is essential for data management because of its efficiency and accuracy. Any time a person is tasked with manual data entry, there is a significant risk of error. That risk increases exponentially as the data volume increases. These are the three basic steps to building and executing a project plan to incorporate automation into your daily routines.

  1. Identify


    2. The first step towards automation is to identify the data sets that require regular manual manipulation as well as the databases or software systems where the information resides. Processes could be either data entry/transfer (e.g., entering employee demographic information) or the processing and interpretation of data (e.g., share usage projection). This is the time to really brainstorm. Every single process you do can go on your list; each process may include several steps that should be broken down into individual opportunities for automation. Take your list and create a spreadsheet with a list of each process, where the data originates, where it needs to be transferred to, and what departments or outside service providers are involved.

    Take time at this step to get to know each of the database or software systems that your data touches because this knowledge will carry forward to each piece of automation you build. Drill down each system’s capabilities for formatting output of data and accepting data as an upload. If you are manipulating data for analysis, it may be possible to build data output reports that either reduces the manual processes for analyses or provides the data in a format that requires no further manipulation. When starting your automation project plan, you are only looking to understand the potential from each of your data systems; you don’t need to detail the entire business specification at this point.

  2. Prioritize and Build

    3. Once you have identified which data processes are candidates for automation, it’s time to prioritize. A good place to start is to eliminate the processes that require data output formats that your systems can’t accommodate at this time. These items can take a different route as topics to approach with the database architects, whether they are internal or external contributors. Rate the remaining processes on how easy each is to automate as well as how significant the process is. Significance is the more difficult to define because it could mean processes that impact the highest volume of data, represent the highest risk of error, or are components of the most visible data outputs. This helps when determining which pieces of automation to tackle first.

    Once you’ve established your project priorities, build your automation. You don’t need to tackle projects one at a time. You may find that some pieces may build on each other because they use the same original data. Additionally, you may be able to oversee more than one automation project simultaneously if the process requires time commitments from separate groups.

  3. Bust

    4. The final step for automating a process is to break the automation. Well, at least try your hardest to break it. Take each piece of the automation and think of as many situations as you can where data will feed into or come out of that process, even if it’s not what the process was originally intended for. Don’t limit yourself to using correct data, either. It’s important to know what will happen if incorrect or incomplete data sets are used so that you can recognize these problems if or when they happen in the future. Remember, you may not be the only one using the process and it could be the platform for further automation in the future.

-Rachel

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