Global HR Process and SAP HCM System Integration. Delivering HCM Expertise

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Frank Price
8 years ago
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1 Global HR Process and SAP HCM System Integration Kivala-HR was required to unify, standardize and simplify HR processes and systems for a large worldwide pharmaceutical organization. Delivering HCM Expertise

simplify HR processes and systems for a large worldwide

2 The Challenge As with many large global companies, the client had IT and human resource functions that were largely split between their main divisions. These silos meant that affiliates often operated different HR processes on a variety of different technical platforms. This disconnect made it difficult to operate the system and services landscape and led to a very high total cost of ownership. The client was also faced with a plethora of other challenges: They were not in a position to implement global HR strategies like succession and talent management or consistent pay for performance easily Managers were faced with the daunting task of using different tools and processes for their employees in different locations Headcount and sustainability reporting was very difficult and cumbersome to compile accurately Consistent reporting on HR KPIs across the organisation was nearly impossible The lack of a common system and incongruities between systems meant a huge amount of inconsistent and redundant data It was very difficult to comply with regulatory requirements and internal standards In 2008, the client launched an internal HR re-alignment initiative with the objectives to unify, standardize and simplify HR processes and systems across the organization worldwide. By doing so, they could focus activities and bundle resources for greater efficiency and strengthen the customer and business orientation of the HR function. As a consequence of the HR re-alignment, a new global HR structure was formed for the group. Initiatives were then started to re-design and build truly global processes, where possible, and to integrate the existing systems into one global SAP system for HR.

This disconnect made it difficult to operate the system and services landscape and led to a very high total cost of ownership.

3 Scope of the engagement The aim was to support managers, employees and HR business partners around the world with globally standardized and streamlined HR processes, as well as support local HR processes for the larger affiliates in Europe and North America. The project also aimed to drive the efficiency of the service delivery on a hub basis and to ensure the optimum integration and consolidation of the HR systems. The client engaged SAP Human Capital Management (HCM) system experts Kivala-HR to design, build and roll out the project. The scope included the full suite of SAP HCM functionality including standardized global processes such as organizational management, compensation and performance management, succession and talent management and learning solutions. The scope also included more localized core processes for personnel administration, travel management, time evaluation, payroll and benefits. The depth of functionality offered to affiliates varied according to the size of the subsidiary. Smaller organizations received the global functionality set combined with a small amount of local functionality and the larger affiliates received a more comprehensive set of functionality including full personnel administration, payroll and time management. This concept would be eventually rolled out to over 150 affiliates in 120 countries and in 10 languages.

The project also aimed to drive the efficiency of the service delivery on a hub basis and to ensure the optimum integration and consolidation of the HR systems.

4 Harmonize global processes Harmonize core data Enable consistent reporting on HR statistics and KPIs Establish a back-office HR platform Working together Kivala-HR supplied a team of highly skilled and experienced consultants equipped not only with their specialized businessprocess knowledge, but also with a deep understanding of the SAP HCM platform. This unbeatable combination enabled the team to design and build pragmatic, sustainable solutions. Kivala-HR consultants worked side-by-side with their client counterparts at all levels of the project, augmenting internal departments and taking the lead where beneficial or necessary. The success of the project demanded a very close level of collaboration and unparalleled commitment to the outcome of the project. Solutions needed to be pragmatic, useable and easily serviced. Therefore, they needed to be designed to accommodate minimal change effort for a global roll out. In particular this meant finding the right balance between globally imposed rules and processes and local needs. Where necessary, the SAP system was enhanced to improve usability and to ensure a good user experience with minimal training. In addition, Kivala-HR provided expert consultancy in the setup of the service centers and in the design of the servicing processes and tools. Kivala-HR, working together with the client and utilizing their close partnership with SAP, delivered a successful HR platform with: Full back office HR and payroll system for approximately 50,000 employees Truly global learning, performance management, and compensation management processes covering all 80,000 employees worldwide Forty different portal scenarios for employees, managers, business support administrators, experts and HR business partners Support for ten languages 44,000 e-learning courses, online tests and read-andunderstood courses A wide range of reporting capabilities leveraging SAP NetWeaver Business Warehouse, SAP BusinessObjects and transactional reports Five regional HR servicing and support hubs and 29 global IT help desks; including a wider scope of the HR service center and the creation of a service outpost The servicing of 23,000 North American users Compliant internal and external standards for security, finance, audit and GxP learning solution (in this case, good pharmaceutical practice) The result was the full integration of global HR functions into one global HR system for the entire group.

This unbeatable combination enabled the team to design and build pragmatic, sustainable solutions.

5 Mission accomplished Proven benefits The client first went live with its European affiliates and the North American division, followed closely by the integration of other European countries and the head office in Switzerland. Global executives and expatriates went live at that time for global processes. The organizational structure was then extended to include all affiliates and mini-master records were created for employees worldwide. This enabled the commencement of global headcount and sustainability reporting and provided a platform for the deployment of learning solutions, performance management, compensation management and talent and succession management functions. The North American pharmaceutical division then went live with a full roll-in including all core modules such as payroll and time management. This coincided with the setup of a consolidated cross-divisional North American servicing hub. The HR function is now in a position to serve its client groups more effectively empowering HR business partners with tools and accurate data The system provides guidance to managers when making key decisions about employees Employees and managers have immediate self-service access to detailed and accurate information The HR function is able to provide accurate information on the number of employees in the company, per country, per affiliate, per business unit, across borders and boundaries and the associated costs The system facilitates accurate budget and cost tracking measures across the group The system enhances the consistency of manager decision making through calibration and comparison processes Process and policy changes are easier to implement on a global level due to the common platform for HR data and processes The process of integrating new businesses into the group has been simplified Kivala-HR has been instrumental to our success by delivering globally standardized HR processes running on a streamlined SAP HR landscape. Their expertise, customer orientation and commitment have made a real difference. Group Head of HR Systems and Services Management Through the collaboration with Kivala-HR, the client now has a group-wide system that enables global processes to be run consistently across the group and provides reliable global data that accommodates the transparency required for global reporting on HR KPIs, sustainability and headcount.

The organizational structure was then extended to include all affiliates and mini-master records were created for employees worldwide.

6 Kivala-HR is an international company offering a full range of HR and IT consulting services relating to the SAP and SuccessFactors Human Capital Management environment. Our business is fully focused on assuring the success of On-Premise implementations and On-Demand HCM solutions. Switzerland Geneva Kivala-HR SA Chemin du Pont 5 CH-1258 Perly (Geneva) T F E info.ch@kivala-hr.com Germany Walldorf Kivala-HR Deutschland GmbH Industriestrasse 39C DE Walldorf T F E info.de@kivala-hr.com Germany Essen Kivala-HR Deutschland GmbH Stüvestrasse 11 DE Essen T F E info.de@kivala-hr.com United States Denver Kivala-HR US, Inc West 120th Ave, Suite 14 Denver, CO T F E info.us@kivala-hr.com United Kingdom London Kivala-HR UK, Ltd 123 Pall Mall London SW1Y 5EA T E info.uk@kivala-hr.com Delivering HCM Expertise

Switzerland Geneva Kivala-HR SA Chemin du Pont 5 CH-1258 Perly (Geneva) T +41 22 77122 20 F +41 22 77120 1 1 E info.ch@kivala-hr.

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