SAP HR Global Footprint

DIANE MOREHOUSE[ASUG INSTALLATION MEMBERMEMBER SINCE: 2001

LORI NORMAN[ASUG INSTALLATION MEMBER MEMBER SINCE: 2004

GLENN WINTER[ASUG INSTALLATION MEMBER MEMBER SINCE: 1998

]Deploying a Global FootprintAt Air Products

Melissa Weller and Sherryanne MeyerAir Products and Chemicals, Inc.

Session No. 2405

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[ Introduction Why A Global Template?

What were our Challenges? Design Challenges The Global Template Design Lessons Learned Conclusion

Today’s Agenda

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[ How we built our global country

template

How to use SAP Service Marketplace as a tool

What we have learned along the way

Learning Points

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[1940 Detroit Michigan – Revolutionary concept of on-site gas supply

WWII Chattanooga, TN - Mobile Oxygen Generators for Military

Post-War Emmaus, PA – Taking the on-site concept to Commercial Markets

1950s – 1970s – Global Expansion and Diversification

We Are Air Products

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[ Today – A Global Supplier of Gases & Chemicals

22,000 employees Over 40 countries Industrial, energy, technology and

healthcare markets worldwide

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[ Four Market Segments

Tonnage Tonnage Gases, Gases,

Equipment and Equipment and EnergyEnergy

Merchant Merchant GasesGases

Electronics and Electronics and Performance Performance

MaterialsMaterials HealthcareHealthcare

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[ UKUKIreland Ireland

Belgium Belgium Netherlands Netherlands

Germany Germany FranceFranceUnited United

StatesStates

CanadaCanada

SpainSpain, , Italy, PortugalItaly, Portugal

IndonesiaIndonesiaSingaporeSingaporeMalaysia Malaysia

ChinaChina Hong Kong Hong Kong

JapanJapanKoreaKorea

TaiwanTaiwan IsraelIsrael

SAP Helps Our “One Company” Strategy

Poland, Czech Rep,Poland, Czech Rep,SlovakiaSlovakia

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Today’s Agenda

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[How did we arrive at a global template?

Painfully Practice, Practice, Practice Issues and Experiences Addressing Global Data Privacy Needs Formal “Lessons Learned” after each

project Global Power User and Global Process

Owner Engagement

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[What we experienced…

Confusion over global processes among managers and employees

Manager in Germany – with direct reports in Italy where Appraisals were not deployed

Training Requirements had to be fulfilled but HOW requirements were met varied by country

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Difficulty Reporting Globally Inconsistent use of data elements

Social ID Date specifications Active / Inactive for Management of Headcount

Inconsistent data display in MSS Address data Consistent maintenance and update of

emergency contact

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Inability to support globally Support instructions / documentation

Example: ESS – update your address in ESS….not everyone can do that

Only N. America had an HR Employee Help Center

Asia and Europe managed SAP on a very LOCAL basis No tools to record and track issues No feedback mechanism

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[Another Driver:Compliance and Data Privacy Issues

Needed a high-level plan to address a variety of data privacy concerns: European Data Privacy Laws HIPAA SOX EEO Company Policy

Needed adherence to a consistent set of principles

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[ IT Project Management Methodology:Lessons Learned Approach

Immediately after the project: Feedback from business and IT

What worked well, what didn’t work well Outstanding issues

Activities/resolutions were defined We took these and put them into

ACTION!

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[Conclusion…

Reinvent and Reinforce Roles and Responsibilities from Project Charter

Clarify Accountability HR = Data Owner IT = System Manager JOINTLY = DATA STEWARDS

Define a Mutually-Agreeable Goal Consistent global practices for storing,

maintaining and sharing data

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[ How did we evolve?

PUSH versus PULL No one in HR wanted to change

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[ IT as the Driver

Process Owner Meetings OM Comp Benefits Payroll HR Admin Performance Enhancement Training and Events

Knowledge Transfer between IT and HR Power Users

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[ IT as the Driver

IT Incident Tracking IT Change Management Processes

Enforced Ownership Made users accountable for testing and

sign-off Relationship building

Increased travel by IT to our Regions Face-to-face informal and formal

discussions with HR

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[ How did we evolve?

HR’s awareness of SAP and it’s capabilities grew HR began to drive the discussions HR began to drive global processes

IT’s understanding of how HR wanted to use the data improved

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[The IT – HR Partnership

HR IT Steering Committee Global Support model

Joint use of Incident Tracking Tools HR Regional Centers of Excellence IT-HR Power User Shared Online

Workspaces Total engagement in projects

Resource Alignment Travel where necessary – even by Power Users

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[HR’s Role Today

Process Owners Lead Management of Change Process Lead Process Owner Meetings

Focus on business changes, data integrity, adherence to process

Engage in Testing and Approval of all changes Decisions on Archiving Disaster Recovery Contingency Plans Ensure smooth integration between HR and

ERP

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[ …And the End Result?

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Today’s Agenda

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[ Country Specific Requirements

SAP country versions Standard Add on Partner

Paradigms Determining “Is this really a business

requirement or is this what I always had and what I still want?”

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[ Country Specific Requirements

Country specific business practices Validation of Social ID’s based on other data

elements Poland – Credited service recognized for all

service in gas industry Interfaces

In-country mailing address versus what US-based service providers could manage

Integration with separate Payroll Providers

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[ Language Barriers

Going into a country…we often don’t understand each other! Colloquialisms and jokes don’t translate! SAP terms don’t always mean the same

thing “permanent residence”

What will we translate? Employee facing functionality legally must

often be translated Unicode needed for Asia

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[ Language Barriers

Appraisals are both employee and manager facing How you can have an intelligent performance

discussion with someone if you can’t deliver the written appraisal in their native language?

How do managers complete an appraisal in a language that’s not their own?

We can deliver the template translated – we cannot deliver what the manager enters translated!

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[ Language Barriers

Human Resources terminology and practices Generally established in U.S. or U.K. Need to be taught to users in other

countries Example: HRP; RWH; Hay Grade

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[Personal Data

Employee Name Structure is not a global definition Format of Spanish Names – Two surnames

Eg, Miguel Garcia Sanchez

Americanized Names in Korea Eg, Jeff Tan Peck Ting Passport name: Tan Peck Ting Workforce name: Jeff

Indonesia has only one name First and Last names are the same

Integration with Workforce Database

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[ Personal Data

Expatriates Address of permanent residence versus temporary

address Where you own property versus where you receive mail

Where employee’s compensation planning and appraisal is completed – home or host?

Where training requirements are maintained Where costs are charged Where headcount is maintained How travel is reimbursed

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[Additional Considerations

Support Global support model Global Power Users

Sustainability Limit variations to those absolutely

necessary

Ability to respond quickly to acquisitions and divestitures

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[ How SAP Helped

SAP Service Marketplace In Country Contacts Account Manager Online Support System

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[ SAP Service Marketplace

www.service.sap.com\globalization

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[ SAP – Country Versions

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[ SAP – Country Specific Information

www.service.sap.com\globalization

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If there is no specific country template delivered use ‘XX’

country version where you define ‘XX’ the two digit company code

for ‘XX’ (i.e., IL for Israel)

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[ SAP – Global Knowledge Bases (GKB)

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[SAP GKB – Country Overview[

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[ Introduction

Why A Global Template? What were our Challenges?

Design Challenges

The Global Template Design

Wrap-up

Today’s Agenda

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[ How we implemented the global template

HR with IT - Documented and published and communicated the template

Formally adopted and implemented with deployment to Central Europe

Began with Blueprinting – set the framework

Built prototype – worked out weaknesses

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[ How we implemented the global template

Global design document developed Incorporated all of our separate original

designs for each module Streamlined to reflect standardization

Required each business process owner’s sign-off following prototype

Maintained the document as a “working document” throughout the project

Used this document ongoing as our joint HR-IT design template

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[ What’s inside the Global Template?

Base Functionality HR Administration Organization Management Compensation – Global Process & Timeline Benefits Administration – US primarily Appraisals / HRP – Global Process & Timeline Structural Security – Existing Roles only Workflow

Payroll – full functionality is US Only

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Payroll Data for other countries Basic Pay record maintained in SAP HR Additional Payments recorded in SAP HR SAP HR must be the system of record Audits ensure both systems maintained

Move towards regional payroll processes Standards to be maintained

SAP as the system of record for defined data elements

Adherence to consistent use of data fields Audits to ensure SAP’s integrity

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[What’s inside the Global Template?

Adherence to Existing Enterprise Structure Company Code = Legal Entity – Defined by

FI PA = Corporate Division PSA = Work Location EG = Highest Grouping Level for Employee

Types Never changes Basic Agreement – No Contractors*

ESG = Determined based on Pay, Benefits and Tax implications

*Exceptions approved by HR based on established criteria

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ERP Integration Time Entry Requirements

Cost Center Distribution (IT0027) Time Sheet Defaults (IT0315)

Travel Management Requirements Travel Privileges (IT0017) Bank Details (IT0009) Communications Subtype for Credit Card (IT0105)

Payroll Posting Wage Types

ALE (Application Link Enabling) Company Codes Payroll Areas

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Web-Based Services Employee Self Service (ITS) - Translated

Personal Information Address Emergency Contact Family Members Known As Name Employee Profile

Who’s Who – Employee Directory Appraisals

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Web-Based Services Manager Self Service – English Only

Employee Info Position Management Employee Change Request Performance Enhancement Time Approval Manage Learning Pay and Rewards – currently via MDT link

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Web-Based Services Learning Solutions - Translated

Standards for Migration from Legacy Systems Past five years of EH&S Past three years of Quality Regulatory training (as required) Lifelong training that is a requirement of the Job/Position

Standard Workflows Management Approval for Cost or Proprietary Reasons

Requirements: 56 Standard Courses Delivered with Go Live

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Reporting Business Information Warehouse

Head Count, Compensation Standard Delivered Reports Ad Hoc Query – Limited to Power Users and

Key Business Process Owners Necessary Maintenance of Previously

Developed Custom Reports Necessary Maintenance of Previously

Developed Interfaces No New Interfaces or Reports

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[ Template Applied to System Architecture

Enterprise structure definition and data element usage descriptions

Strategy for country-specific namespaces

Technical naming conventions for all data elements and developments

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[ Importance of Country Grouping - MOLGA Separate configuration on a country-by-

country basis by defining separate MOLGAs Generic MOLGA 99 is used as a template to

configure other smaller non-SAP delivered countries (IL)

Allows local changes to tables Used throughout security and in

authorization profiles Required for a country’s payroll

Outsourced Payroll Solutions require MOLGA Application Link Enabling (ALE) uses MOLGA

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[ Where Tables Do Not Contain Country Group…Define & Maintain Manually Consistent use of Employee Subgroups beginning

with “A” for Asia…beginning with “4” for U.S.

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[Reporting by country made easy

“Smart-Coding” ISO Code for each

country used for first two digits of company code

Second two digits allow multiple legal entities per country

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[ Security made easy

Personnel Area (PA) Key is used in security roles

Smart-coding Identifies our Regions within PA and our Business Areas EA = European Corporate NA= N. America Corporate EC = European Chemicals NC = N. America

Chemicals EG = European Gases NC = N. America Gases

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[ Technical Naming Conventions

Use naming convention for objects such as: ABAP programs (reports and interfaces) ABAP function modules Payroll/time functions, operations, rules

and schemas Features

Use the “Customer Name Space” – eg: Z_GL_HR_PY*, Z_US_HR_PY*

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[ Sample Program Names

Employee Conversion Programs

are Identified by

two-character country

code

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[ Features

No special consideration for MOLGA Our team was centralized so could

avoid sub-features for country Might want to consider depending on

your team’s needs

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[ Design Document

Defines enterprise structure and naming conventions Wage Types – Global table maintained to

prevent overlapping of wage types country-to-country E.G. – Wage type # 1279 is consistently

used for local incentive bonus payments PA – region specific and line of business –

simple, high level – doesn’t change Easier to justify deployment to smaller

countries

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[Design document

Company Code – using ISO codes ESG - employee subgroup = Assigned

using a consistent range (A for Asia, 4 for US…)

Result: A common global structure that also

satisfies local reporting requirements Equal Employment Opportunity (EEO) reporting in

the US

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Today’s Agenda

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[Avoid Pitfalls

Do not assume the current design is best If you always do what you always did –

you always get what you always got!

Create a global template with participation from all major countries, process owners and power users

Keep abreast of what’s new in SAP – functionality has grown a lot for HCM globally!

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[Avoid Pitfalls

What to do when your signed, approved design document CHANGES

that NEVER happens

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[ Management of Change

From a practical aspect: MOC process owned by HR Include MOC process as part of design

document

From a technical aspect: For Air Products, our global team means we

do not have to control who changes tables by MOLGA – but you might want to consider that

Quality aspects / Critical Object Warnings configured to control enterprise structure

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[ Define Critical Objects in Transport Manager

Approver of Transports will

receive an alert (a “Critical Object”

warning) if these tables are changed

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[ Support and Sustainability is easier!

Our global SCC support team KNOWS what functionality each country has and how it should work – we no longer work separately – round the clock support is available

Ability to engage IT Service Center

HR is more self-sufficient

IT has been able to focus on higher-value added items

What we’ve learned

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[ How we built our global country template

Partnership between IT and HR Mutually Agreed Global Processes Communication Global Teams

Use SAP Service Marketplace as a tool and engage SAP Contacts

What we have learned along the way Work with your ASUG colleagues! LISTEN to your in-country experts

Wrap Up Learning Points

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[ ASUG Discussion Forums

Human Capital Management Communities Payroll/Time Management SIG Human Resource Management SIG

Services & Support Communities Documentation & Training SIG Global Implementations SIG Organizational & Change Management SIG

Resources

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[ SAP Insider HR Expert Publication

Articles by Charles Eubanks, Senior Manager, SAP HR Integration, ARINSO International 6 Tips for Going Global with Extra Savoir-Faire

Avoid Global Implementation Pitfalls with a Well-Defined, Strategic Global Template

Resources

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[ HR Global User Group:

www.service.sap.com/hrgug

SAP Service Marketplace – Multinational Implementation Resources www.service.sap.com/globalization

www.service.sap.com/localization

Resources

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[ links

Resources and References

[

] Thank you for participating.

SESSION CODE: 2405

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For ongoing education on this area of focus, visit the Year-Round Community page at

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SAP HR Global Footprint

Technology

global data privacy

global processes

global footprint

global country template

global template design

data privacy issues

s global expansion

data owner