LIC - Livestock Improvement Corporation

SAP HCM SuccessFactors Implementation

Presented by:

Caryl Carson and Paul Saunders

Today

• Overview of LIC and our strategic plan

• SuccessFactors Selection

• SAP HCM SuccessFactors Implementation

• SuccessFactors System overview

Who is LIC

• LIC is a farmer owned co-operative

• 800 employees in New Zealand, increasing to 2500 for the peak dairy mating season

• Head office in Hamilton with depots spread throughout NZ,

global presence – UK, Ireland, Australia, Brazil, China, Japan, South Africa and South America

• 100 years of supporting NZ Dairy Industry • Supplies three-quarters of the country’s bull semen

• Provides information and automation systems as well as herd testing and diagnostics

• Strong investment into research and development with a

strategy to achieve $1 billion revenue by 2025

LIC – Core Products and Services

• Artificial Breeding

• Herd Recording

• Herd Testing & Milk Analysis

• Diagnostics - DNA Analysis, disease testing

• Farm Advisory

• Farm Information & Mapping Systems

• Farm Automation

Stats…

• Revenue is in excess of $200 million

– Profit is returned to the 10,500 New Zealand

dairy farmer owners/shareholders

• Herd Testing

– 11 million animals tested annually (milk samples)

• Artificial Breeding

– Distribute 6 million straws of semen

– Inseminate 4 million cows over three months

using 1600 seasonal staff

LIC - Technology Strategic Plan

Strategically Important

If we accept that we

cannot do everything, what is the most important?

Drain the Swamp Retire as many apps as possible Outsource technology that is not unique Free people up to focus on developing for the future. Important over Urgent.

Set the Foundations

Virtual Technologies

Centralized Security

Service Oriented Architecture

One Technology Team

Clear roles and responsibilities

Build on the Technology Pillars

Use the core technology to start building the foundations for the future; SAP, .Net, SaaS

Go Fast Re use what already works

Skilled people on tap

Clearly define goals and priorities

Bring in more resources to do this at pace

HR Payroll Spaghetti

Feasibility - Which HR Payroll Solution?

• RFP – based on high level business requirements criteria

• Multiple vendors in the market

• Insourced or outsource decision

• HR functionality a significant factor

• SAPHCM with SuccessFactors chosen 2012

Key Benefits – SAP

• Alignment to the LIC Technology Strategic Plan Pillars

• Ability to integrate with SAP and other systems easily

• ERP, CRM, ……..

• Proven reliability, used extensively in the marketplace

• Vendor confidence, support and experience - SAP and Soltius

• Future proof

• SuccessFactors alignment/strategy

Key Benefits – SuccessFactors

• Top scoring solution against our business requirements LIC

- HR Driven

• SAP alignment/strategy

• Integrated Modules - potential

• Look and feel, ease of configuration, reporting/dashboards

• Market Leader

HCM Implementation

• Project Team

– LIC Project Manager

– LIC Business SME’s/UAT Testers - HR and Payroll

– LIC Technology Business Analysts

– Soltius Project Managers, Consultants, Developers

– PlanIT Test Manager and Testers

• Fantastic Business commitment

• Adherence to ‘vanilla’ approach

• Rigorous testing

• Clean data

HCM Implementation

• Project Timeline - November 2012 – February 2014

August 2013

• Payroll Salaried /Wages/Directors /ESS & MSS SAP HCM

• Performance and Objectives SuccessFactors

February 2014

• AB Technicians SAP HCM

• Compensation* SuccessFactors

• Succession and Development* SuccessFactors

* Note: Core SF was implemented but system go-live was not until months later.

Challenges and Learnings

• Delayed implementation – project moved on, lost key resources

• No real time integration with SAP (in roadmap)

• SuccessFactors and SAP new relationship/business model

• Look and feel difference SAP ESS/MSS and SuccessFactors

• Multiple small/large restructures

• Adapting to Cloud based systems

• Upgrades, privacy

• Implementation methodology - Important to have conceptual design

agreed

LIC HCM Landscape

SAP HCM HR/Payroll

MSS/ESS

Leave Management/Timesheets/ Payslip

SAP ERP

Data Warehouse -Business Objects

SuccessFactors • Performance & Goals • Compensation • Talent & Succession

DB2/Animal Database

Other LIC Systems

SAP CRM

SuccessFactors - SAP Integration

• Integration Add-On for SAP ERP 6.0 • The add-on contains pre-delivered cross-system integration

• Extract tool in SAP HCM to feed SuccessFactors Employee Data Import with employee and org data from SAP ERP HCM

HCM

ADD-ON

Success

Factors

LIC Intranet

SuccessFactors - Home Page

Module - Performance and Objectives

• 6 month reviews - December and June

• Employee and manager engage online

• Rollup through SAP Hierarchy for signoff

• Annual signoff and calibration - June

• Performance linked to remuneration review

• Monitor progress through all stages

• In to year two with SuccessFactors

• Positive feedback from Managers, Employees and the HR team.

SuccessFactors – Performance Review

SuccessFactors – Performance Review

Module - Compensation

• Annual Remuneration review

• Pay for performance

• Matrix % increase linked to performance rating

• Managers complete online based on overall budget %

• Rollup through SAP Hierarchy for signoff

• 2014 – level 2 managers, 2015 level 3 mangers

• Load into Payroll for payment July

• International currency and reporting

SuccessFactors - SAP Integration

• Compensation: Pay-for-performance

HCM

ADD-ON Success

Factors

SAP HCM

Current Salary Data Compensation Allocations

Objective Setting

Performance Management

Compensation Planning

SuccessFactors

Performance Rating

Calibration

SuccessFactors - Compensation

SuccessFactors - Talent & Succession

• Initial Stages

• Succession Organisation Model different to Company Org Model

• Currently limited to senior roles

• Talent 9 box

SuccessFactors - Talent & Succession

SuccessFactors - Talent & Succession

SuccessFactors - Talent & Succession

SuccessFactors - Analytics

Module - JAM

• Out of the Box tool – different business driver for

implementation

• Communication and collaboration tool

• Used extensively by LIC Sales Groups

• Groups and Forums

• Mobile capability

SuccessFactors - Jam

SuccessFactors - the Good News..

• Great look and feel

• Visibility of information

• Process flow

• Reporting/Dashboard

• HR value add

– Less data entry, checking, spreadsheets

• LIC empowered

– Engagement, employees, managers, HR team

• Rationalised environment

SuccessFactors – Feedback….

“at last - comfort level of not using spreadsheets”

“less dependency on IT and HR Administrators”

“managers are accountable”

“employees feel as though they are going through the process, it is not being done to them”

Questions?