Best Practices for achieving a higher Return on Investment (ROI) for SAP HCM (1809) Kellie Fitzpatrick, Symphony Management Consulting

Transcription

1 [ Best Practices for achieving a higher Return on Investment (ROI) for SAP HCM (1809) Kellie Fitzpatrick, Symphony Management Consulting

2 [ Learning Points Which sub-modules of SAP ERP HCM will give you the most bang for your buck as well as what is required to get your system implemented How to transform your HR department from a reactionary environment into a strategic planning organization Understand your business processes Realize your corporate objectives How to determine the critical integration points in SAP ERP HCM and how to utilize this functionality throughout your organization How SAP ERP HCM will allow your organization to track and retain your most valuable assets your employees Overview of SuccessFactors and how it integrates with HCM 2

3 [ What We ll Cover Current State HR Strategic Investment HCM Return on Investment HCM and SuccessFactors Overview Integration Points Implementation Phases & Benefits Best Practices Key Learnings Questions

4 [ Current Situation Health of Current Hardware Support Costs Identify how much your current infrastructure costs the organization How big is your current organization which supports your HR infrastructure How much time does it take to pull the information together Is all of your information globally, locally in one system Hardware Costs Is it one system, or many systems you try to get reporting and HR related data from How many interfaces does your organization run in order to maintain all of your HR related data 4

5 [ Current State Analyze all of your current systems HR systems range from disparate databases to excel spreadsheets U.S. Canada Mexico Guatemala MSKB MGFC Taiwan Hong Kong India Core HR ADP U.S. HR Technologies Excel none Excel HR Plus none none none Compensation Excel Excel none none Excel Excel none none none Performance Management Success Factors Success Factors none none Success Factors for some; none Success Factors for some; none none none none Staffing none none none none none none none none none Succession Planning none none none none none none none none none Competencies none none none none none none none none none Benefits Benesoft HR Technologies & Industrial Alliance Excel none Outsourced CICC Excel none none none Learning Management Learner Web none none none none none none none none Payroll ADP U.S. ADP Canada Macro Pro none Excel HR Plus & Excel none none none Time & Attendance Kronos (hourly); Timesaver (salaried) Kronos (hourly); HR Technologies (salaried) none none Punch System at branch offices Integrated & Excel none none none EH&S Excel Excel Excel none Excel Excel none none none 5

6 [ Current Situation Health of Current Hardware Data is disconnected and in too many places = unusable Hewitt Pension Learner Web Training Administration Putnam 529 Plans Lab One Pre-Employment / Random Drug Tests Cendant Relocation Aetna STD / LTD 90 Day Employee Review SAP Financials Salaried Employee Time 4 Benesoft Benefits Administration A Acxiom Background Checks 1-2 Kronos Time & Attendance 2-6 Success Factors Performance Management Time & Attendance Reports 1-5 Fidelity 401 ( k ) ADP Enterprise HRIS ( Rel ) 5 ADP Enterprise Payroll ( Rel ) Vacation Scheduling 4 Bank of New York Employee Stock Purchase 3 Payroll Master Reports to Plants 1-4 MetLife Employee Home & Auto Insurance 3 OSHA / Environmental Health & Safety 4 B Miscellaneous Stand-Alone Tracking Systems 4 AccuFax Drug Screening Tests 1 UNUM Long Term Care 1 PHH Fleet Auto Leasing / Insurance GELCO Employee Expense Management Berkshire Affirmative Action Planning 3-4 Sales Incentive Compensation ( Commissions ) Compensation Management ( Merit Increases / Bonus ) 4 4 GB Workers Comp. ( Pre ) 1-6 United Way Charity 1 C Feeds / Reports 1 : Fax, , Paper, Form 3 : File Download 5 : True Integration 2 : On - Line Change / Update 4 : Excel Spreadsheet 6 : Manual Entry Self - Insured Workers Comp. ( Ohio Only ) Hartford Workers Comp. ( Post-2004 ) ADP Stand alone with Interface Stand alone with no Interface

7 [ Current Situation Interface Requirements Cost of Upkeep How much does it cost to pull all of those reports together How many people does it take to run all of those reports How long does it take to get the data into one place Stability With so many systems is your data reliable With so many systems is your data stable With so many systems is your data available 7

8 [ Current Situation Process Inefficiencies How does your organization handle global processes Are your processes defined by your organization, or is your organization defined by your processes? Anticipated Turnover How do you train your new employees on all of the systems How long does it take for someone to understand EACH system Training Requirements How much does it cost your organization to train individuals Does your staff eventually lose the knowledge of all of those systems are you losing reporting Current and Future Support 8

10 [ HR Strategic Alignment Identify the Audience Determine hot-button issues Identify your audience and design your business case around them Many Organizations have a strategic corporate vision AND an HR vision are they aligned? Corporate Strategic Vision Growth Invest in our brand to drive consumer and customer demand. Develop a steady stream of new, innovative and differentiated products. Deliver a superior combination of products and services to each market segment. Develop new geographic and adjacent business opportunities. Business Improvement Improve customer responsiveness through speed, greater flexibility and higher predictability. Continuously improve product quality. Create value through the delivery of effective and innovative business processes and systems. Achieve competitive advantage in total delivered cost. Create world-class supply chain Maximize return on each dollar invested. Organizational Excellence Build the best organization and leadership by developing, recruiting and retaining great people. Develop a bias for innovation in a global environment of continuous change. Leverage cross-functional teams to achieve superior business results. 10

11 [ HR Strategic Alignment Identify the Audience Determine hot-button issues Focus on linking HR drivers to corporate strategy objectives Prepare your business case to show how it relates to the corporate objectives Reduce system costs by merging and sun-setting systems HR Requires the following to become a world-class organization Growth Forecasting and budgeting Global organizational and reporting structure and workflow automation Workforce planning and budgeting. Business Improvement Position management Certification tracking and reporting Elimination of manual processes for data gathering Workforce analytics and reporting Organizational Excellence Workforce planning and budgeting Access to global headcount and compensation Forecasting and budgeting Improved and consistent communications Improved employee and manager self-sufficiency Consistent, global HR practices, executed locally Greater control of HR processes 11

12 [ HR Strategic Alignment Identify HR Business Drivers Keep global and company-wide objectives in mind and link to HR objectives Enhanced manager reporting Real-time data availability Single source of the truth Be objective involve all segments of the HR population to identify how to better service the organization as a whole Use Mission Statement, annual reports and cultural focus to identify Growth sales and labor force Business improvement Operational or Organizational Excellence 12

13 [ HR Strategic Alignment Corporate Strategy Right Culture a global platform will enable company-wide performance management, communication of a consistent message, and comprehensive analytical reporting. Right Organization an integrated HR system will provide organization with real-time visibility to the global organization and structure to make timely business decisions. Right People build the best organization and leadership by developing, recruiting and retaining great people. 13

15 [ Cloud Deployment options to match your needs and strategy Hybrid Deployment Align Optimize Accelerate Workforce Planning Full HCM in the cloud Talent Mgmt Learning Workforce Analytics Recruiting Delivered Integration SAP HCM Workforce Planning & Analytics Core HR Payroll Time & Attendance Workforce Analytics Core HR and Payroll Time & Attendance Management Talent Management Full HCM on-premise Leverage existing on-premise Core HR investments Deploy market leading talent capabilities in the cloud

16 [ Analytics built for HR and business Enhanced with SAP expertise, SAP HANA and SAP BusinessObjects HR Empowered Executive Insight Business Engaged Is there a positive correlation between pay and performance? Which managers best align people s goals with our strategy? How well do I develop high performers compared to other managers?

17 [ Benefits and ROI - Making your Business Case for HCM Leveraging SAP ERP HCM can help HR work efficiently and effectively and add to competitive advantage Organizations with a single enterprise-wide HR system are more effective and more strategically focused then companies with a fragmented systems landscape Companies with a single enterprise-wide IT system Have lower staffing levels Utilized a higher level of industry defined best practices in their transactional environment

18 [ Benefits and ROI - Making your Business Case for HCM Determine measurable success indicators (KPIs) Tangible vs. Intangible Benefits Measuring Tangible Benefits Ability to see a clear benefit path from the time of investment to the quantified positive financial impact. KPI s are quantifiable measurements that reflect critical success factors Benchmarking Measuring and comparing business processes against comparable processes in leading organizations and industry best practices to help identify and implement improvements.

19 [ Benefits and ROI - Making your Business Case for HCM Identify pre-defined, measurable successes Set periods for measurement Prior to implementation Every 3 months for the first year Semi-annually after first year

20 [ Benefits and ROI - Making your Business Case for HCM Additional technology benefits that can be realized Reduction in cost due to elimination of payroll outsourcing providers Fewer development and test staff needed for application customization and integration Lower annual maintenance and support fees for application software and databases Reduction or elimination of support fees or mission-critical consulting and professional services

21 [ Benefits and ROI - Making your Business Case for HCM Measuring Intangible Benefits Can be even more compelling than tangible indicators. May be seen as the "real key to value" Difficult to quantify and measure Customer satisfaction Employee Retention Improved customer service Increased job satisfaction

22 [ Benefits and ROI - Making your Business Case for HCM Intangible Benefits Balancing Act Three Types Operational Benefits Strategic Benefits Technical Benefits Operational Benefits Strategic Benefits Technical Benefits

23 [ Benefits and ROI - Making your Business Case for HCM Operational Benefits Streamlined personnel-administration processes for new hires, promotions, leaves of absence, and terminations Reduced effort for Time and Expense entry Check printing efficiencies Increased payment consistency Better access to information Integrated workflows

24 [ Benefits and ROI - Making your Business Case for HCM Strategic Benefits Increased SOX compliance thanks to higher data consistency and transparency Improved employee morale Lower turnover Retention of the best human assets in the marketplace Managed attrition to only retain the right human assets for your success Most competitive compensation packages offered in market

25 [ Business results through choice: on-premise or cloud? On-premise Individual Highly customizable At your own speed IT dependent Scope Flexibility Innovation IT Cloud Leading practices Configurable standard Always on the latest IT independent Individual services, projects and costs Services Fix price services and projects

27 [ Benefits and ROI - Making your Business Case for SAP ERP HCM Recruitment Manager s Self Service Increased ROI Self Service Components Employee Self Service Employee Lifecycle Management Performance Management Training & Events/LSO Enterprise Compensation Management Internal Services Travel and Expense Management Governance Environment, Health & Safety Incentive & Commission Management Employee Transaction Management Core Components Time and Attendance Global Payroll Benefits HR administration Master Data Organizational Management

28 [ Core Concepts of SAP ERP HCM Date driven Begin and end dates used for all records Effective dates mean that record history is available Real time data Data is available immediately upon entry into the system Through the Portal or directly in the SAP environment Common access Through the Portal via the internet or via VPN Directly in the SAP environment Via Kiosks Standardizations for: Naming conventions Processes 28

29 [ Core Concepts of SAP ERP HCM (cont.) Central database repository Fully integrated with your business processes Central repository/management Qualifications catalogue Compensation Management Performance Management Organizational structure One point of entry for data Master data is entered once Interface to other applications that may be outside SAP (Time, Payroll) Concept of Infotypes 29

30 [ Workforce Process Management Contains the core components HCM Personnel Administration (PA) and Organizational Management (OM) Also contains common functional areas such as Payroll, Benefits, Time, and Global Employee Management Enables users to streamline and integrate essential workforce processes Allows you to standardize and consolidate all workforcerelated processes and data onto a single platform Ensures adherence to local regulations and laws Will operate with local languages, currencies, best practices, and regulatory requirements in facilities around the world 30

31 [ Talent Management SAP or SuccessFactors Learning Course Curriculum Online training and delivery Comprehensive learning strategy SuccessFactors benefits Social Learning Shared training with customers and partners On your 31

32 [ Talent Management SAP or SuccessFactors Performance Management Align goals and performance with compensation to help create a pay for performance culture Leverage 360 degree appraisals Allow managers to identify High-performers quickly and efficiently SuccessFactors Benefits Improve compliance by providing evidence of an objective review process. Legal Scan helps facilitate compliance with Sarbanes-Oxley and other regulations 32

33 [ Talent Management SAP or SuccessFactors Succession Management Insight to background, experience, performance and objectives Identify gaps in experience to build development plans Allow managers to identify talent and create development plans quickly and seamlessly SuccessFactors Benefits Succession lineage chart Organizational charts Talent searches Side by Side comparison 33

34 [ End-User Service Delivery ESS, MSS End-User Service Delivery: Gives Managers the ability to participate in HR processes such as employee development, compensation planning and approval, and budget and staffing activities quickly and efficiently Includes content, services, and processes to support management decisions that align with business goals Provides employees worldwide with the information, tools, and services they need to do their jobs, manage their own important life and work events and focus on contributing to business results 34

35 [ Cloud SAP + SuccessFactors Product Direction Core HR Continued investments in SAP HCM Accelerated investments in SuccessFactors Employee Central. Workforce Planning & Analytics Parallel investments in both SuccessFactors and SAP solutions Longer-term content and technology sharing across both portfolios Business Objects Strategic Workforce Planning: development has been stopped.

37 [ Cloud SAP + SuccessFactors Integration Pre-built integrations, enhanced with Rapid Deployment Solutions are planned: SAP HCM SuccessFactors Employee Records, Foundational Data - Full file Employee Records, Foundational Data - Delta file SuccessFactors SAP HCM Compensation Recruiting HR data (for payroll)

38 [ Planning & Analytics Solutions Transforming HR From Service Provider to Business Driver BI Factory BI Dashboards Workforce Risk Management Workforce Analytics Operational Headcount Planning Workforce Planning Long-term workforce planning

39 [ Major SAP ERP HCM Integration Points SAP ERP HCM integrates with several other SAP modules Financials (Company Code, Cost Centers, Travel and Expenses) EHS Management (employee data, training/certificate records, tasks, work centers, exposure groups) Plant Maintenance (work centers) Controlling (time to work orders) Project Systems (time worked against projects) Sales (commission payout into Payroll) 39

40 [ HR-FI Key Integration Points 40

41 [ HR-IT Key Integration Points

42 [ HR-EHS Management Key Integration Points

43 [ HR-PM Key Integration Points 43

44 [ Key Integration Points Information Technology Basis/Netweaver Authorization 44

46 [ Different Approaches to Rolling Out HCM Functionality There are three approaches to how an organization decides to roll out their HCM investment 46

47 [ Incremental Approach 47

48 [ Multi-Phased Approach 48

49 [ Big Bang Approach 49

50 [ Why Implement SAP ERP HCM? Implementation of SAP ERP HCM will provide for: Key organizational reporting (who, what, where, when, why) Standardization of information Can ensure all necessary data is gathered in a standard format Consistency of data One source allows for same spelling/layout/formatting Centralized repository instead of different databases, to support single information source 50

51 [ Expanded SAP ERP Implementation For an expanded SAP ERP implementation, which includes different SAP modules (i.e., FI/CO, PS, EHS Management, SD) SAP ERP HCM provides the necessary data required for proper support of other SAP ERP modules Financials (Company Code, Cost Centers, Travel and Expenses) Security (positions, organizational units) Controlling (time to work orders) Project Systems (time worked against projects) EHS Management (employee data, training/certificate records, tasks, work centers, exposure groups) Sales (commission payout into Payroll) 51

52 [ Why Cloud Functionality for some and On Premise for others Most Organizations want on-premise for the following What they want on-premise Employee Data Payroll related data Benefits Pay Changes Time processing Why they want it on-premise Accessibility to data and limited number of users ROI is realized more quickly with on-premise solutions related to core HCM 52

53 [ Why Cloud Functionality for some and On Premise for others Most Organizations want cloud for the following What they want on-premise What they want in the cloud Performance Evaluations Compensation Analysis Learning Management Recruiting Why they want it in the cloud Manager s access to evaluations anywhere, anytime Results show Learning in the cloud increase user acceptance, usage and 53

54 [ External Entities SAP ERP HCM can also provide needed information to your organization s service providers Payroll ADP, Ceridian Benefits Third-Party Administrators Enterprise Learning Training Suppliers Recruiting Recruitment agencies, Newspapers, Outreach organizations Compensation Management Salary Surveys 54

55 [ Effective Timelines Common Misconceptions We can rush through blueprint and make it up later Know your employees and select the IDEAL team Innovative Consistent implementation of new ideas Dynamic Able to meet time-sensitive deadlines Efficient Manages time wisely and keeps the end-goal in mind Adaptable Ability to move throughout the project life cycle with ease Leaders Transition from a reactive to proactive organization 55

56 [ Effective Timelines Common Misconceptions (cont.) Test your system Did you capture all of your requirements? What if you missed something? Should you go back? Can you go back? Have a plan for once you are live Help Desk Super users Contact lists 56

57 [ Effective Timelines Common Misconceptions (cont.) We can always go back and work on this later Unidentified areas cause implementations to stop and go-back delaying the go-live Consider the following when working on the timeline: Union contracts Multiple payroll cycles Seasonal workers Complex calculations We can train people after we are live GET IT IN Train end users early and often Implementations usually slow down and lag due to lack of understanding and training 57

59 [ Best Practices Depending on the size of your company, implementing in phases is a good idea Know where you can use on-premise or cloud to streamline processes Document processes and corporate standards prior to the implementation if you can Standardize processes where possible Categorize your global position/job catalogs where you can Know your audience when asking for budget HAVE A PLAN! 59

61 [ 7 Key Points to Take Home Determine your total business needs to determine level of SAP ERP HCM functionality required Determine your reporting requirements first that will guide you to what SAP ERP HCM functionality you need to implement What other of your SAP modules will need SAP ERP HCM to support the most robust functionality Start with core functionality and build from there Don t forget that SAP security is often an organizational must and use SAP ERP HCM to help your delivery model Use SAP accelerators to reduce implementation time and cost You can never train or communicate to your organization to much 61

62 [ Key Learnings Highlight/summarize 3-5 key learning points from presentation 62

63 [ Resources HCM Solutions from SAP David Ludlow, WIS HR

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