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8/2/2019 Badgi Hr Change

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Editors Notes: Psychologists iden-tify change as one of the most emotion-ally difficult challenges with whichhumans are faced. Change manage-ment, therefore, becomes a criticalsuccess factor for system implemen-tations, SAP or otherwise. Thatswhy HR Editor, Satish Badgi, choseto present a discussion of change

management for HCM (Human Capi-tal Management) implementations inhis first article of 2006. Satish iden-tifies areas of concern and suggestsa three-phased change managementapproach that will minimize the

problems encountered in the HCMimplementation. He suggests for-ward-thinking strategies that range

from the high-level planning view tothe lower-level detailed view, identi-

fying action items and issues along

the way. If you think that changemanagement is simply a trendy termwith no real value, Satishs articlemay well change you thinkingandchange can be good, right?

1.0 IntroductionSAP HCM (Human Capital Man-

agement) customers tend to ignorethe reality of managing the chal-lenges of transition from their legacyenvironment. The challenges that are

posed require an effective changemanagement strategy, which will bestructured around the functionalityand sub-modules that you choosefor the implementation. All toooften, SAP implementations adopt astrategy that is solely based on end-user/power-user training, and failsto address the other factors in thetransition process, including a rangeof cultural, technical, and organiza-tion change management issues. If

change management is not addressedin a comprehensive manner, prob-lems emerge. Ive seen many SAPHCM implementations go awry whena broader approach to change man-agement is not applied. Since HCMimplementations touch the lives ofeach employee, a smooth transitionthrough a good change management

strategy is very important for theSAP HCM projects.

In the June 2004 issue of SAPtips,we covered the change manage-ment issues specifically related toEmployee Self Service (ESS) imple-mentations. (You can read this articleManaging the Fear Factor Keys toChange Management on EmployeeSelf Service (ESS) Implementationsin the HR section of the SAPtips.comDocument Library).

Handling the Challenges of Change Management

In SAP

HCM ImplementationsBy Satish Badgi, SAP HR Consulta

Our current article focuses on stadard SAP HCM/Payroll implemetations. Unlike the earlier articwhich was targeted for ESS usethis article focuses on the concernsHR users such as HR associates, Hrepresentatives, and HR generalist

This article follows a three-phas

approach that can form the backboof any SAP HCM implementatioirrespective of the industry and irrspective of the project methodolothat you may have. The article ucase studies to illustrate the challenes of change management, and susequently discusses the approachand tools to address these challengThe content is generic when it refto any SAP HCM functionality, ahence it can be treated as versio

independent.

2.0 Change ManagementPhases

The central philosophy that I flow is that the change managemeprocess is based on a series of chlenges. The success of change maagement (and hence the success your implementation) depends upmanaging these challenges. Typcally in SAP HCM implementationwe run the change management in

tiatives through normal ValueSAproject phases such as: planninblueprinting, realization, testinand go-live. While you continue do that, and to work with rest of tproject teams, you also need to haa separate three-phase agenda for tchange management team. Figurepresents these three phases, whiwe will discuss in depth later in tarticle. They are:

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Ive seen many

SAP HCM

implementations go

awry when a

broader approach to

change management

was not applied.


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Identifying the challenges foryour organization and for yourimplementation

Analyzing the challenges

Using the right tools andapproaches to resolve the chal-lenges

Factors that affect these threephases run parallel, as shown in thelower portion of Figure 1.

Typical change managementmethodologies, such as user surveys,

workshops, and brown bag luncheswill continue to help you identify thechallenges in your implementation.However, as you start addressingthe challenges in a more systematicway, according to a three-phase planyou present to your users, your usercommunity will begin to have confi-dence in your commitment to addresstheir issues. That confidence will bereflected in improved productivityand morale.

3.0 Factors Affecting theChallenges

Unlike other SAP functional areassuch as Finance or Purchasing, HCMschange management impact and chal-lenges vary, based upon the HCM sub-modules you implement. Example: Ifyou do not implement Time Manage-ment and Benefit sub-modules, yourchange management efforts should befar less complicated.

3.1 Functionality and ImpactFigure 2 shows a matrix of the

change management impact relatedto different SAP HCM sub-mod-ules. Note that the user populationis assumed to be HR generalists,HR representatives, and similar HRstaff. We will keep ESS/MSS out ofscope for the purpose of this articleas discussed in the introduction sec-tion earlier.

Figure 1: Agenda for the Change Management Team 3 Phases

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SAP HCM Impact on Change Details/Remark UserModule Management Population

Employee Master High Higher impact due to the Higher userData higher traffic of user population

transactions aroundemployee master dataas well as employee lifeevents

Organization Medium If your implementation MediumManagement re-engineers the

organization structures,

then the impact can behigher

Personnel High Will impact the employees Very highDevelopment due to functionality around

skills, performance evaluation

Training and Medium Training and events impact MediumEvents will go hand in hand with

skills and personnel development

Travel Expenses High The change will affect full Very Highemployee population

Benefits High Impact on full employee Very Highpopulation

Time Management Medium If you decide to implement Medium to Highself service based time entryfunctionality, then the impactcould be higher

Payroll Low The process will have low Lowimpact as long as the payrollresults are correct

Recruitment Medium If you decide to use MediumApplicant Self Servicefunctionality, recruitment canhave higher impact on changemanagementFigure 2: Impact of SAP HCM Sub-Modules

1 2 3

Factors that affect challenges Functionality, Rollouts

Challenge

Resolution

Challenge

Analysis and

Categorization

Challenge

Identification


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the remaining half will be to addressthese challenges and resolve them.There is no single right or wrong wayto address them; perhaps a combina-tion of tools and approaches will helpresolve these. Needless to say, orga-

nization culture plays a major roleresolving the challenges.

5.1 TrainingGood (vs. average) training w

make a lot of difference for the use

3.2 Rollout StrategyThe rollout strategy plays a major

role in any SAP HCM implementation.Figure 3 shows different options thatan HCM rollout might have. Option

1 will have more impact on changemanagement, compared to Option 2(on the right side of the table).

4.0 Analyzing theChallenges

Figure 4 presents a simple graph,showing how the degree of challengegoes up as the change managementissues move from technology to peo-ple-based issues, via the businessprocess related issues. This figure

shows the degree of difficulty of thechange management challenges fac-ing HCM implementations. Laterin this article, we will review andanalyze the challenges by using casescenarios.

Based on this graph and the chal-lenges identified in the earlier sec-tion, you can relate a category toeach challenge. The Figure 5 tablehas sample challenges that are cat-egorized in technology, process, or

people. In a few cases, you will noticethat the challenges are a combinationof multiple categories. Such hybridchallenges will require extra atten-tion and efforts during the changemanagement process.

5.0 Resolving theChallenges Approaches and Tools

After you have identified andanalyzed the challenges, you havealready covered half the ground, and

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Figure 3: Rollout Strategy Impact

GR IRInventory Account 250 (DB)

GR/IR Account 300 (CR) 300 (DB)Vendor Account 200 (CR)

Expense from Price Differences Acct. 50 (DB)

Revenue from Price Differences Acct. 100 (CR)

Figure 4: Degree of Challenges

Figure 5: Categorization of Challenges

Type of Challenge Category (Technology, Process, People)

Legacy System vs SAP System Technology

Organization Structures Process

Roles and Authorizations System Access Technology+Process+People

Data Analysis Technology

Cultural Issues People (and organization)Product Localization Technology+Process+People

Degree of

Difficulty

Technology IssuesBusiness Process Issues People Issues


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will be able to reduce the frustrationsthat new users may generate, as aresult of lack of knowledge, lack of

confidence, or any such reasons.

5.4 Using Additional SAP toolsThe SAP product and associated

tools are so rich in functionality thatoften many implementations forgetabout them or are overwhelmed, dueto the abundance of information. It ismy experience that some really sim-

ple everyday transactions and toolscan make life easy for the user com-munity, and, hence, may help themovercome the issues and challenges.Some of these are:

Ad-hoc queries in SAP HCM Teach them to write ad-hoc que-ries and you will notice that theuser community will be happywith the control they have for HRreporting

Transaction SE16 Typicalin many implementations, tBasis teams are not comfortab

in allowing the SE16 transactito users. If the users have thown desktop applications in MAccess or MS-Excel, they migbe looking for data to be dowloaded from SAP to their owMS-Access or Excel applicationIn scenarios like these, you neto think of tools and processes fthe data downloads.

ALV Reports and Download Excel

BW Jump Queries

Graphical Toolbox in Organiztion Management

Wage Type Reporter in Payroll

Flexible Reporting in PersonnAdministration

5.5 Redefining Jobs and Roles

Post SAP HCM implementationjobs often change for the users. Tchanges could be due to:

Less paperwork and more oscreen transaction processing

Automatic workflow to approers

Change of role as a result of buness process change

More exposure to technology

A formal job description or a pranalysis of impact on the employjob change helps for a smooth trantion in the new role.

5.6 Product CustomizationThis should be a last resort in a

SAP HCM project. Needless to sano project teams or implementtions willingly go for customizati

Many organizations, therefore, right-fully invest in tools and technologiesaround training. Examples are:

E-learning Solutions

Infopak / I-tutor

Web-based Audio-video Content

Make sure that your users have thechoice of classroom / instructor ledtraining (in case they are more com-fortable with it) in addition to anyWeb-based training. Also, it may bedifficult to replicate in Web-based

training the positive experiences thatthe good instructor brings. Therefore,classroom training might be prefera-ble in certain organizations. As muchas the approach for training, the tim-ing for training also matters.

5.2 Web Based ResourcesGood Web-based training discus-

sion boards and knowledge exchangeforums always help users in a smoothtransition to the new environment.

The typical resources that the imple-mentation should utilize in a Web-based format should be:

Access to the power users orchampions from your organiza-tion

Documentation

Training Sessions

FAQs

Glossary

Interpreting errors and errormessage in the system

Help

5.3 Mentoring and CoachingCreate champions in your orga-

nization who can act as guides andmentors to the user community. They

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It is my experience

that some really

simple everyday

transactions and

tools can make life

easy for the user

community.


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cater to strategic HR functionality.Neither is it integrated with financeand accounts payable.

Let us apply this case scenarioto our three-phased approach asdescribed in Figure 1 and see howchange management and imple-mentation teams worked togetherto identify, analyze, and resolve theissues. Figure 6 presents the manage-ment challenge through three phasesfor this scenario.

You will notice from the analyand resolution of the challenges, ththe change management team needto be in alignment with functionteams as well as technology teams

Scenario 2 The client has a mullocation HR organization and wanto use the proposed SAP implemetation to create a centralized sharservice center for HR functions. Tchallenges are of multi-dimensionnature, i.e., while the employees a

or product modifications.However, it is not uncom-mon or unnatural that a

modification is complete-ly necessary to manage achange during implemen-tation. Examples include:

A union contract con-dition that the soft-ware system mustsupport.

Late during theimplementation, asituation arises such

that a business pro-cess change is impos-sible to handle.

Functionality that iscritical for the opera-tion of the businessis not provided for inthe product.

5.7 Resolving theChallenges: HCM

Case StudiesThe best way to under-stand the HCM changemanagement challengesis by looking at real-lifeexamples. In his section,Ill bring the points in thisarticle to life by looking ata couple of actual exam-ples of HCM users. Wellexamine which challengesthey faced, how they ana-lyzed them, and how they

addressed them to findresolutions.

Scenario 1 The client uses a legacyHRIS system. This system has beenin existence for the last decade, andnow theres an organization-wideinitiative to adopt SAP HCM for allthe HR functions. The legacy sys-tem addressed mainly the personneladministration and master data-related functionality and did not

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Challenge Identification Challenge Analysis Challenge Resolution

Figure 6: Challenge Management Scenario 1

Users felt that the data entryrequired to complete employeedata maintenance was far morethan in the legacy system.

Users were lost because SAPsorganization structures were

new and re-engineered.

Users were frustrated that they

do not have same level of accessto information that they used tohave in legacy system

It turned out to be a technologyissue since the personnel actionsthat were configured had rathertoo many Infotypes in each ofthe actions.

People + Technology challenge.

Technology + Process

The team reviewed thepersonnel actions andassociated Infotypes. Theycreated additional and newactions by breaking one actioninto multiples so that eachaction had a manageablenumber of Infotypes. The userswere able to quickly completethe actions compared to theearlier ones.

A simple printout of cross-walk was given to users who

had a legacy structure to SAPstructure cross reference.Many of the users pinned theseprintouts on their desks andreferred to them while enteringtransactions in SAP

Additional training sessionswere conducted for users tohelp them understand SAPstructures and rationale behindre-engineering

SAPs role-based authorization

was a new concept for usersand they needed additionaldocumentation and traininghelp to understand it.

In some cases, additionaltransactions were added inroles where there was genuineneed for the user to access theinformation.


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coping with the new,shared service center,the shared service center

itself is going through theformation stage issues ofits own.

Figure 7 presents theanalysis and resolutionfor challenges faced inthis scenario. Note thatthe resolution / solutionscan be a combination oftechnology, as well aspeople-oriented solu-tions.

Scenario 3 This par-ticular client has manyusers who used the lega-cy HRIS system to down-load data in PC-basedMS Access and similarsystems. These users thenuse the PC-based systemsto do some intelligentdata analysis. Althoughthe users do not have any

major complaints withSAPs functionality orlook and feel, they feelhampered by their dataanalysis needs.

Figure 8 has threephases identification,analysis, and resolutionfor the challenges relatedto expectations arounddata access and down-load.

This scenario provedthat there were somefailures in the end-usertraining as well as in thegap analysis conductedearlier in the implemen-tation. The resolutionscame out with a radi-cal solution: to implement SAP BW,but this was in accordance with theclients long-term plans and budgets.

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Users felt that the data entryEmployees felt that theirindividual location-based HRRepresentatives were accessibleto solve the issues

Employees felt that the centralshared service center was unableto understand their regionalor location specific HR issues

People + Technology

People + Process

Employees needed to betterunderstand the new automatedworkflows in SAP. Additionaldocumentation was released toaddress it.

Shared service centers helpdesk and phone supportneeded improvement. Sincethe help desk was new, it wasunable to keep up with thecalls and extend good service.

When the jobs were re-

defined, some of the regionalHR representatives weremoved to the central sharedservice center. It created animmediate comfort zone formany employees.

Shared service center trulylacked the knowledge of somelocal tax authority relatedprocessing that the employeeshad questions about. Theshared service center wasgiven additional documentation

and Web resources.


It was found that some ofthe data mining requirementswere specific to the industrysegment and a pilot SAP BWimplementation was proposedto address it.

Upon closer review, it wasdetermined that users werenot aware of the SAP reportsthat would satisfy theirrequirements, due to a flaw inthe training rollout.

Employees are using desktopsystems to do their ownreporting and data mining, andthey are feeling frustrated thatSAP is not feeding them the data

People + Technology

Why are employees using thedesktop systems? What aretheir needs?

Why are SAP reports notuseful for their data mining?

Is this requirement a result ofgaps in the legacy system?



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6.0 ConclusionThe three-phased approach of

managing the challenges in SAP

HCM implementations will help theusers in identifying, analyzing, andresolving the challenges. Early inthe implementation, if you identifythe change management challenges,it will give you more time and flex-ibility to analyze them and find solu-tions. Unfortunately, many managersthink that change management isjust a fashionable word rather thana viable aspect of the project thatneeds to be addressed; hopefully thisarticle will help readers to appreciate

that change management is for real.The three phased approach: Identifi-cation, Analysis and Resolution thatis explained in this article by meansof case scenarios, will come in handyfor your HCM change managementchallenges.

There is nothing like a goodapproach to change management,and whichever approach you adopt,make sure that you follow through

sincerely during the entire life cycleof the implementation.

Satish Badgi, SAP HR Expert. Satishis a senior consultant with specializa-tion in SAP HR and Payroll. He hasover seven years of experience imple-menting and supporting SAP systemsacross multiple countries in a varietyof industries. In his recent engage-ments, Satish has been involved withimplementing SAP payroll systems

in complex Public Sector environ-ments and integrating them withFinance, Costing, and Funds Man-agement. Satishs email address [email protected].

Need to pull real-time, live SAP data into

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