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Planning for Phased SAP HR Implementations
INTRODUCTION
When purchasing the SAP/HR system, some
important choices have to be made about the implementation
schedule. How should the company implement - Big bang
or Phased? Which functionality does the company wish
to utilize? Often, implementations are hindered by unrealistic
expectations and poor implementation methodology, which are
direct results of poor planning. This poor planning often results in unrealistic
project timelines or budgets. Upper management and module
sponsors’ expectations for ‘success’ are then driven more
by the timelines or budget than they are the quality of the
implementation. Such thinking can result in an over-dependence
on consulting organizations, heavy project turnover, and a
lack of user buy-in. In an attempt to meet impending
deadlines, some companies may feel it necessary to ramp up
the consultants on a project to overcome the lifecycle of
knowledge transfer. While this is a certain way to advance
the project, it can lead to a dependence on consulting, reduced
contribution from the company’s project team members, and
a slower rate of knowledge transfer. After the go-live
period, when the consulting firm has gone, users and team
members may not be adequately trained to support the system.
This leads to a “burn-out” period for system administrators,
as support issues pile up and important issues go unresolved.
The end result is internal turnover, lack of user buy-in,
budget disparities, and even more reliance on consulting organizations.
Certain questions are never answered or
asked. What is the best strategy to take in realizing
the benefits of SAP/HR? What are the benefits we expect
to get out of SAP? To answer these questions, it is
essential to have a realistic rollout method and utilize all
of the resources within SAP to reach these goals. One
strategy is a phased rollout. There are several types
of phased rollouts – by business unit, by geographical area,
or by submodule. This paper focuses on the submodule,
or phase-in-functionality strategy.
PHASED-IN- FUNCTIONALITY ROLL-OUT
A phased-functionality
rollout can be thought of as a set of concentric circles.
The innermost circle contains the initial phase containing
the core business functions of the company. It could
include Master Data, Time Management, Payroll, Benefits
Administration, and some Organizational Management.
In a phased-functionality implementation, the scope of
the inner circle is driven by essential HR functions that
a system must provide, like payroll. In order to
run payroll, there must be employee records (Master Data),
hours tracking at varying rates of pay (Time Management),
detailed information on benefits enrollment and employee/employer
costs (Benefits Administration), and cost center tracking
by position (Organizational Management). A second
circle could contain Training and Events Management, Career
Succession Planning, Qualifications and Requirements,
and Recruitment. The next phase could contain Manager’s
Desktop and Business Warehouse. Another circle could
contain Open Enrollment and ESS. The content of
each phase may be different for various companies, depending
on their scope, complexity, and the level of outsourcing
in HR.
The ideal method for adding functionality in a phased rollout
is to implement similar and dependent modules during the same
phase. In the example of the second circle, the remaining
Planning modules are implemented at the same time. Training
and Events Management, Career Succession Planning, Qualifications
and Requirements, and Recruitment all share common the common
input of the qualification/requirement profiles and have many
similarities and integrated events. Grouping these submodules
into a separate phase has several system benefits as well.
In the example, Organizational Management has already been
implemented in the initial phase. Users and team members
have already gained a familiarity with PD objects, screen
flows, and functionality. Users will be able to grasp
new concepts and functionality in other planning areas, and
will be more receptive to training. Team members will
be able to design a better Planning architecture due to expertise
gained in the first phase. This leads to less strain
on users and a better-designed system.
The underlying theme of a phased-in-functionality
rollout is that the system must first go live with SAP/HR
submodules essential to the daily operations of the company.
For example, a company has purchased SAP to eventually integrate
all HR operations within a common system and database for
its entire operations. The company wishes to have enterprise-wide
reporting capabilities, a centralized payroll, streamlined
benefits and training, and system-administered time evaluation.
This is the end result, but there can be phases implemented
to reach these goals perhaps more affordably and effectively
than a “big-bang.”
A phased-in-functionality rollout can mitigate
the risk of an implementation in a couple of ways. Phasing
in functionality allows a company to learn from the lessons
of the initial phase. Despite the most detailed and
shrewd project plans, there are problems that will undoubtedly
occur in any implementation. Perhaps in the initial
phase certain required hardware was not given the appropriate
attention, or team members’ previous positions kept them from
being fully dedicated to the project. If you never make
the same mistake twice, further phases can only be more efficient.
Second, user competencies and weaknesses become apparent in
the initial phase. Certain project team members may
have developed essential implementation skills during the
initial phase. Some may have proven to be excellent
trainers, or module managers, or configurators, and they can
be positioned accordingly in subsequent roll-outs. Finally,
functionality in subsequent phases is more likely to be accepted
because end users are comfortable with the “feel” and function
of SAP. While it cannot be said that phased-functionality
implementations are risk-free, they can reduce risk if managed
properly, and can help a company realize its long-term implementation
goals.
One of the trade-offs of a phased-in-functionality
roll-out is the effort to build temporary bridges between
SAP and legacy systems. For example, a Phase One implementation
may not include the SAP recruiting function, leading a company
to interface an existing legacy recruiting application to
SAP.
Once the phase-in-functionality premise
is accepted, it is necessary to devise an implementation strategy
that will reach these goals while avoiding the pitfalls mentioned
above.
MANAGEMENT COMMITMENT
Commitment from upper management is also crucial to the success
of a roll-out. Project kick-offs generally begin with positive
sentiments and pledged support from upper management. After
a few months, upper management is out of the picture, or is
only called upon to approve new budgets or business practice
changes. They often dont want to hear about the implementation
because it usually means more money or another uncomfortable
meeting with the steering committee to change the companys
policies. There are three measures that can be taken to ensure
consistent commitment from upper management. First of all,
it is essential to understand the system capabilities that
will be implemented in the first phase and communicate this
to management. An accurate definition of baseline configuration,
and the pre-configured client can aid in this process. Knowledge
of the necessary business practice changes at the beginning
of an implementation will allow management to get all the
dirty work out of the way at the beginning of a project. The
last thing they want to hear about is another change halfway
through an implementation. Last minute policy changes compromise
confidence in the system and are a sure way to stem commitment.
Management should be informed in no uncertain terms what the
company can expect out of the first phase. Second, a solid,
detailed project plan will allow management to track project
progress and stay within budget towards deadlines. Finally,
it is necessary to keep management informed about the project.
Schedule periodic meetings (weekly, biweekly, or similar depending
on your projects length) to brief upper management about
implementations considerations. This will provide them with
timely information to make better decisions, and keep their
interest in the system, which is extremely beneficial when
future functionality is implemented.
The overall goal of an implementation is to fully leverage
the functionality offered by SAP/HR to achieve direct benefits
for the company. This can be fully achieved in subsequent
phases. A phased-in-functionality implementation offers several
benefits in reaching this goal. First, it allows users to
grasp the system in varying levels of complexity. End-users
gain the experience, expertise, and confidence to take on
newer functionality after they grasp the basic principles
and core competencies of the initial phase. Project team members
also have the system knowledge to build in additional functionality
and submodules more effectively in subsequent phases. A phased-in-functionality
implementation creates an environment within the company where
the project team has the necessary skills and time to fully
realize the higher level implementation goals. Users will
more fully understand the system, enabling team members to
focus on additional functionality, without perpetually putting
out fires or responding to support issues. This also
leads to an environment less dependent on consulting organizations,
as internal staff capabilities grow. Such a strategy, implemented
properly, can avoid the pitfalls of typical SAP implementations,
while fully realizing all of the companys HR goals.
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