2/24/10 1 Agenda • The Forgo.en Half of Change • Understanding Where Other Countries are Different in SAP HCM • Changes HiCng the Corporate FuncFon in SAP HCM • Understanding the Roles of Mindset and Culture • GeCng Everybody on Board • EvaluaFng the Effort and Risk of the Change Program • PuCng it all together: Your Roadmap to Change • Wrapup www.iprocon.co.uk Transforming Organisa6ons [email protected]
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Transcript
2/24/10
1
Agenda
• The Forgo.en Half of Change • Understanding Where Other Countries are Different in SAP HCM
• Changes HiCng the Corporate FuncFon in SAP HCM
• Understanding the Roles of Mindset and Culture
• GeCng Everybody on Board
• EvaluaFng the Effort and Risk of the Change Program
• Common aCtude: – Headquarters want this – We expect resistance, because that’s what always happens – But we have support from the board and we’ll squash any resistance
• While some clear guidance from top management is required, your change model needs a strong cooperaFve element, because – Your depend on local knowledge for project success – You need local management and HR to bring the workforce on board
– SAP HCM is oXen a part of a large integraFon project (post acquisiFon) and therefore not supposed to rock the boat
– You don’t want to end up micromanaging local HR processes from the corporate centre
• To get to a cooperaFve model it helps to – Appreciate that both sides need to change – Be open to learn – Involve local managers and experts early on
• Corporate IT and HR usually underesFmate the need for localizaFon, because they assume – Complexity in all countries sits in the same processes – Legal requirements are restricted to payroll and benefits – Legal requirements and language are the only significant drivers for localizaFon
– Processes on the mother country are best pracFce throughout • Local HR and IT try to sFck to their ways, assuming – Corporate funcFons don’t understand local needs anyway – It’s all about cuCng their jobs – Corporate funcFons are not prepared to compromise – The way SAP HCM does things is alien to them and looks overly complicated
• There are many country specifics beyond payroll & benefits – Master data info types, even when not used for payroll – Statutory reporFng & staFsFcs – EEO compliance, parFcularly in recruiFng – Not everywhere do people love retroacFve accounFng as much as in Germany
– Data privacy • Best pracFce doesn’t work the same in each country – ACtudes & culture have an impact
• E.g.: Self Service is oXen a problem – Business is done differently in a different environment
• E.g.: with much lower wages automaFng processes doesn’t always make sense
• AssumpFon in corporate reporFng – We acknowledge that subsidiaries use different wage types, employee subgroups, etc.
– So based on the current reporFng in the mother country • We build matching tables to match other countries wage types etc. with those we are reporFng today
• Maybe even add a few new ones • Feed the numbers from all countries into BI where the matching rules integrate them into our reporFng
• It’s not that easy – Many local wage types etc. cannot be matched with an exisFng one
• AuthorizaFons – It’s not only about protecFng HQ’s data from subsidiaries – Consider local data privacy regulaFon
• Check your programming guidelines to include rules about – Making programs mulF-‐lingual – Being generic about using MOLGA, country key, currency, etc., when selecFng data from the database
– Considering Fme zones • Use SY-‐DATLO, SY-‐TIMLO instead of SY-‐DATUM, SY-‐UZEIT
• Infrastructure – Ensure appropriate response Fmes for all locaFons – Consider local PCs: are they equipped to deal with SAP GIU and portal requirements?
• There’s a strong tendency for the team from HQ to feel superior – Because they are HQ – Because they deal with an emerging or developing country – Reinforced in a post-‐acquisiFon situaFon, because they “won”
• Processes worked very well so far – Before other countries where integrated in the same SAP HCM
system, HQ processes may have been perfect – They should work well for them, too – Reinforced, when HQ is by far the largest country – although then
HQ processes are even less likely to fit new requirements • Team from subsidiary may have similar argument • Different is oXen seen as “inferior” rather than “fit for
• Address the right level: – If things have been done in a certain way successfully for a very long Fme, it may become a basic assumpFon (not usually quesFoned)
– Change efforts oXen target artefacts only – the easily visible behavior.
– Basic assumpFons are not easily changed and may even need to be worked around
• HQ team needs to appreciate that – Their current processes are unlikely to be fit for a globally integrated SAP HCM environment
– Some things may become more complicated, but understand that this serves strategic objecFves beyond HQ
– They may lose some freedom as well
• They need to be open for – Best pracFce they can learn from subsidiaries – Ways of doing things that fit a parFcular naFonal culture – Ideally: moving some tasks away from the HQ country, if circumstances in another country fit the purpose be.er • Distributed centers of experFse following the vision of a transnaFonal rather than internaFonal organisaFon
• Clearly and early communicate – ObjecFves and tasks – Required changes (including the negaFve ones) – Changes HQ makes for the benefit of subsidiaries
• Plan for success – Design the project so that the subsidiary gets clear quick-‐wins
• Local reporFng • AutomaFon or plausibility checks in data maintenance • Replacement of small soluFons in Excel etc. with SAP HCM
• Understand local culture and requirements – Fight the tendency to differenFate less, if things are far away
• Promote formal and informal communicaFon between local and corporate teams – Arrange face to face meeFngs as early as possible
– Do a jour fixe as web conference throughout the project
– Involve them into a fun event (like a football tournament) – Provide chat room & wiki for online communicaFon – Define communicaFon Fme slots suiFng HQ as well as local
• Language: – Avoid using HQ language, if not English – Make sure you have translators available with some background in HR and IT and don’t change them
– Try to have sb. with local language skills on the global team
• Time – Time pressure may require more top-‐down and less cooperaFve change. Important: demonstrate need for this approach. • Use the “Burning Plavorm” concept
• CapabiliFes – If strong SAP HCM capabiliFes are already available locally, less guidance from HQ is required • Set objecFves in clear framework and don’t micromanage within this space
• Readiness – If HQ is not at all open minded about local requirements, differences, and strengths, more Fme is required to • Educate HQ team • Maybe replace individuals
• Few corporate HR and IT teams have really developed the best capabiliFes and culture to benefit from a global HR system
• A few indicators that there may be room for improvement – You need to quote “top management support” quite oXen to make
local subsidiaries comply with your guidelines – Global reporFng is suspiciously similar to reporFng in HQ country – HQ team doesn’t seem to learn from local teams – HQ team is cynical about local capabiliFes and other way round – HQ must pay for rollouts, as subsidiaries don’t see benefit – There’s no clear line of sight between cost and benefits
• If such indicators apply, you should take a break and go through steps 1 – 6 of the roadmap before your next rollout
• SAP HCM rollout is nearly impossible without local buy in • Both sides need to be prepared to change – In processes and systems – In aCtudes and mindsets
• HQ usually underesFmates the complexity of localizaFon • Cultural awareness is paramount • Each single rollout needs proper change management – focus on facilitaFng communicaFon!
• The change kaleidoscope gives you an idea about the complexity of the change effort
• To minimize cost and risk of a global rollout, get the corporate team ready first