PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      4g 
ACTION ITEM 
Date of Meeting      May 12, 2015 
DATE:    May 4, 2015 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Marjorie Hillson, Interim Director, Human Resources and Development 
SUBJECT:  Employee Performance Management System (CIP #C800763) 
Amount of This Request:         $400,000   Source of Funds:       76.5% Airport
Development Fund;
Est. Total Project Cost:           $400,000 
18.3% General Fund;
5.2% General Fund
Real Estate 
Est. State and Local Taxes:          $9,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to (1) authorize Port staff to
proceed with the Employee Performance Management System project and (2) authorize the
procurement of required hardware, software, maintenance support, and vendor services for a
total project cost not to exceed $400,000. 
SYNOPSIS 
The Port of Seattle's Performance Review, Evaluation, and Planning (PREP) process is an
important component of the Total Rewards package for Port employees. As part of a review of
the Total Rewards package for effectiveness, alignment with organizational goals, operational
excellence, and broad-based talent development, significant changes to the PREP process will be
implemented requiring a more powerful and integrated performance management tool. 
This project will procure, configure and implement the ePerformance module of our current
Peoplesoft Human Capital Management (HCM) system to provide a comprehensive employee
performance management system. Information & Communications Technology (ICT), Human
Resources and Development (HRD), and Accounting & Financial Reporting (AFR) resources
will be utilized to complete the project.  Total project costs are estimated to be $400,000. This
project was included in the 2015  2019 capital budget and plan of finance. Recurring software
license and maintenance costs are budgeted within the ICT Department operating budget.
Vendor Services will be procured using a current Indefinite Delivery Indefinite Quantity (IDIQ)
contract for PeopleSoft services. 


Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 4, 2015 
Page 2 of 5 
BACKGROUND 
The Port of Seattle's PREP process currently utilizes paper documentation for goal setting and
performance tracking.  This method does not provide capabilities for employees to align their
performance goals with those of the broader organization or link to their department priorities.
Managers have no easy way to rate staff performance against behavioral competencies associated
with specific jobs, track development and career conversations, and include one-over-one
manager reviews of performance. HRD must manually calculate pay and record results in our
HCM system, has no way to assess aggregate trends in employee performance, and cannot
identify areas of risk in employee development. 
Substantial changes to the PREP program to support broad-based talent development and better
align individual efforts to accomplish organizational goals will begin January 2016. The changes
include a common review date for all non-represented employees, revised rating scale, an
expanded review process, and an updated PREP form to fully incorporate the Second Century
Competency Framework. 
PROJECT JUSTIFICATION AND DETAILS 
The implementation of an employee performance management system will support the enhanced
requirements of the PREP process. 
Project Objectives 
Align performance and development plans with organizational goals and the Second
Century Competency Framework. 
Achieve greater consistency with performance plans and evaluations by providing
increased visibility to managers at a level beyond direct reports. 
Integrate performance plans and evaluations with our HCM system to align with job
functions, automate pay upgrades, and incorporate existing succession and career plans. 
More efficiently capture mid-year or periodic performance progress using automated 
reminders, and electronic approvals. 
Provide aggregate information to HRD to further assess employee development risks and
opportunities. 
Scope of Work 
Procure, configure and implement PeopleSoft ePerformance version 9.2 
Schedule 
Commission Approval               May 2015 
Procurement Complete               June 2015 
Upgrade Complete                 May 2016

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 4, 2015 
Page 3 of 5 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                       $400,000          $0     $400,000 
Previous Authorizations                       $0          $0          $0 
Current request for authorization              $400,000          $0      $400,000 
Total Authorizations, including this request      $400,000          $0      $400,000 
Remaining budget to be authorized               $0          $0          $0 
Total Estimated Project Cost               $400,000          $0     $400,000 
Project Cost Breakdown                     This Request       Total Project 
Software License                            $100,000          $100,000 
Vendor Services                            $100,000          $100,000 
Port of Seattle Labor                            $191,000           $191,000 
State & Local Taxes (estimated)                     $9,000           $9,000
Total                                       $400,000           $400,000 
Vendor provided training costs, estimated at $24,000, will be budgeted in the Human Resources
and Development operating budget. There will be additional staff costs for training required to
use the system and for training on new requirements for performance management that are not
included in this request. 
Budget Status and Source of Funds 
This project was originally budgeted in ICT Services Technology Small Capital CIP with a
preliminary budget assumption just under $300,000. Upon Commission Authorization, the full
$400,000 budget will be transferred from CIP C800012, Services Technology Small Cap, to CIP
C800763, Employee Performance Management System. The sourcing project was included in
the 2015-2019 capital budget and plan of finance.  The source of funds is 76.5% Airport
Development Fund, 18.3% General Fund, and 5.2% General Fund Real Estate. 
Financial Analysis and Summary 
CIP Category             New Technology System 
Project Type              Technology 
Risk adjusted discount rate     N/A 
Key risk factors             N/A 
Project cost for analysis        $400,000 
Business Unit (BU)          Corporate 
Effect on business performance  N/A 
IRR/NPV             N/A 
CPE Impact             N/A

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 4, 2015 
Page 4 of 5 
Lifecycle Cost and Savings 
Software license and maintenance fees of $23,000 per year will be included in the ICT operating
budget. Maintenance fees for this module will be incorporated into our existing Oracle annual
maintenance agreement, so we are not adding a new contract. Port recurring labor costs are not
expected to change significantly with this project. 
STRATEGIES AND OBJECTIVES 
This project supports the Century Agenda strategy to advance this region as a leading tourism
destination and business getaway, by providing a system to help attract, develop, reward and
retain a diverse workforce to achieve the port's business targets. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Procure a performance management system separate from our Peoplesoft HCM
system. Alternative research included a Request for Information (RFI), industry analyses of
performance management solutions, interviews  with other organizations regarding their 
experience with performance management tools, and demonstrations of several products. More
than twelve vendor solutions were evaluated in terms of features, benefits, and estimated fiveyear
total costs. This is not the recommended alternative. 
Pros: 
There are vendor products available at a lower cost than the recommended solution
saving capital funds and on-going operating expenses for license costs. 
Cons: 
The lower-cost products did not meet HRD requirements for a robust performance
management solution and these products as well as those more competitive with the
selected option would require a complex interface with our internal HCM system to keep
employee, job, and pay information in sync. In addition, a product not integrated with our
current HCM system will not allow us to leverage additional modules that are already
licensed for succession planning and career planning. 
Alternative 2)   Enhance the current paper-based PREP process and do not procure a
performance management system. 
Pros: 
This option will save capital funds and reduce staff costs for change management. 
Cons: 
The requested changes to the PREP process will require increased staff costs and broad-
based analysis on employee development opportunities will be extremely difficult to
accomplish without a central repository and robust reporting capabilities.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
May 4, 2015 
Page 5 of 5 

Alternative 3)  Procure and implement the PeopleSoft ePerformance module. This is the
recommended alternative. 
Pros: 
The ePerformance module has all of the essential features to meet our business needs and
allows us to harness the full power of an integrated talent management suite of products
by utilizing the succession and career planning components of our current
Oracle/PeopleSoft HCM system. 
Cons: 
The implementation of the ePerformance module will require significant change
management for all non-represented employees. This staff time is not included in the cost
estimates for this project. 

ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None