EhP5 Performance Management and Enterprise Comp Aligns HR Services with Business Strategy at Babcock & Wilcox

Transcription

1 EhP5 Performance Management and Enterprise Comp Aligns HR Services with Business Strategy at Babcock & Wilcox Guru Sundaresan Director, Clarkston Consulting John Gerstenslager HRIS Manager, B&W

2 Learning Points Business Needs and ROI Implementation Approach and Business Case Solution overview with EHP 5 functionality in Enterprise Compensation and Performance Management Change initiatives deployed at B&W Lessons learned

3 About B&W International provider of energy products and services. Commercial Nuclear Power, Fossil Power, Renewable Energy, Navy Nuclear, Government Services 12,000 employees in 75+ locations around the world Many locations are secure - DOE clearance required, minimal access to B&W network

4 Business Needs Prior to 2012: Performance Management used 3 rd party software not integrated w/ SAP Spreadsheets used for Compensation Management Performance and Compensation processes not linked Manual processing of compensation spreadsheets prevented value-add HR activities Spreadsheets not made available to lower level managers - compensation philosophy not understood by majority of B&W Performance criteria and ratings scale did not match philosophy

5 Return on Investment Employees Single, user-friendly, familiar platform for majority of HR processes Line of sight to manager's goals and business strategic priorities Managers Integrated compensation and performance system Improved quality in compensation process Real-time reporting on employee and organizational data HR More time for value-add work Improved competency process to link with talent management Platform to integrate performance management, development planning with learning & development opportunities Estimated $2.7M / yr savings

6 B&W's HCM Implementation Implemented Employee Administration Organizational Management Basic Employee Self Serve Time and Attendance Benefits Administration Payroll Basic Manager Self Serve 2012 Performance Management Compensation Management

7 Implementation Approach Merit and Incentive planning occurs January to March Performance Management cycle runs January to December Standard SAP project methodology (ASAP) Employee focus group to provide input Priority on communications & change management Pilot with participating groups in major locations Global rollout in 2013 Project kickoff in February with pilot in September

8 EHP5 Functionality Enhancements to budget New & improved process types for compensation New user interfaces for Performance and Compensation Compensation Planning Compensation Approval Planning Overview Employee Compensation Profile Flexible UI for Performance Management Enhancements to workflow using extended notifications

9 Solution Overview Compensation Management Organization unit based process w/multilevel approval Budgeting using Personnel Cost Planning Compensation Plans Merit/Promotion Salaried Executive Incentive Plan (SEIP) Officer Merit LTI Officer LTI Key Customizations Compensation planning screens Calculation Base Bonusable Earnings Custom Guidelines for SEIP, Officer Merit, LTI and Officer LTI Workflow notifications

10 Compensation Planning Screen - Merit

11 Compensation Planning Screen - SEIP

12 Compensation Profile

13 Extended Notifications

14 Solution Overview Performance Management Flexible Performance Management Performance Reviews Exempt Non Exempt Managers and Executives Production Key Customizations User Interface Business Checks Column Access Final Rating Calculations Workflow Notifications

15 Rating Scales

16 Help Screen

17 Line of Sight Goals and Core Values

18 Goals

19 Competencies

20 Solution Overview Rating Summary

21 Extended Notifications

22 Change Management Change Management team formed during project 2 HR leads Site leads for all major locations, responsible for delivering message, coordinating rollout, training activities Business Impact Analysis study performed New training classes for compensation and performance created, delivered to all employees Over 60 communications sent during implementation Steering committee of executive level employees provided guidance, approvals, support

23 Lessons Learned Focus group critical to project success Remote site leads helped sell the solution and shared the load for support and training Difficulty finding balance between process change & enhancements Compensation: budgeting, transfers, managers of large organizations Managing enhancements difficult as they are identified throughout the project process Reporting requires custom solution unless implementing Business Intelligence

24 Recommended Best Practices Implement Performance & Compensation together to leverage integration benefits and holistically design the processes Decide upfront strategy for budget reconciliation Keep organizational changes (e.g. transfers/promotion) to a minimum during compensation review period Identify, design reporting needs/solution during design phase Update your philosophy when you upgrade your technology Build Change Management into entire project and process

25 About Clarkston Consulting Leading management and technology consulting firm US Headquarters in Research Triangle Park, NC with offices across the US Serving global companies since 1991 Delivering successful, full-service SAP solutions for 20 years across people, process, technology, and strategy Life Sciences and Consumer Products Industry Focus Consultants average 15 years experience Partnership model, organically grown, and privately held Key measures of Clarkston s success: 70% repeat clients & referrals;10-year average client satisfaction rating of 97%

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27 THANK YOU FOR PARTICIPATING Please provide feedback on this session by completing a short survey via the event mobile application. SESSION CODE: 1713 For ongoing education on this area of focus, visit