Dirk Ehlers - AFSUG

1 Dirk Ehlers It is not the strongest of the species that survive, nor themost intelligent, but the one most responsive to change. Charles DarwinPrefaceMacsteel Board approved the IsiGuBhu (Beating to the rhythm of one beat!!! )Project for allMacsteel business units and for all SAP ERP Resource Solution was to set the toneespecially from a Learning I ll coverProject BackgroundMACSTEEL SERVICE CENTRES SA (PTY) LTD Leadingstockist, processor anddistributorof various forms ofsteelandother metals 11 business unitswith anetwork of more than60branchesin Southern Africawith5 400 staff Mission to createsustainableindustrial businessespursuingdifferentiationandlow costintheir operating environmentsThis mission isachieved via theIsiGuBhu programwhich is aBusinessProcess Reengineering (BPR)initiativethat aims toreduce organisationallayers,eliminate activitiesandestablishbest business practices Firstly, redesign functionalorganisations intocross-functionalteams Secondly, use technologytoimprove data disseminationanddecision makingProject Background(MSCSA)5 400 Leadingstockist, processor and distributor11business units60branchesSustainable industrial businessesstaffProject Background(MSCSA)

2 The IsiGuBhu programis aBusiness Process Re-engineering(BPR)initiative that aims toreduce organisational layers,eliminate activitiesand establishbest business practicesProject Background(MSCSA) Cross-functional teams to drive BPR objectives Improve data dissemination and decision making Facilitate Enterprise Learning through in-house developede-learning programmes Refocus on customer needs Redesign core processes Reorganise cross-functional teamswith end-to-end responsibility Organisational and people issues Improve business processes acrossthe supply chain and supportstructuresIsiGuBhu Program ObjectivesProject BackgroundIsiGuBhu program expected benefitsDecreasesneed for8 managementlayersAcceleratesinformationfl owEliminateserrors and reworkcaused bymultiple handoffsImprovesquality byreducingfragmentationEstablishclear ownershipof processesResponsibilityfor outputMeasureperformancebased onprompt feedbackUnlockthe fullpotential ofthe organisationCorporatiseorganisationthrou gh a common.

3 Modernandeffective IT platformReducescosts andcycle timesEliminateunproductiveactivitiesWhat I ll coverThe Human Resource ChallengeBill ofmaterialsapprovedupfrontLevel ofmaturity -especiallyHCMpracticesHRstrategicdirect ionandroad mapHRorganisationalstructureNo standardHRbusinessprocessesTrainingandde velopmentstrategyAuthorisationsThe Human Resource ChallengeSAP HCM portfolioHCM Service DeliveryWorkforce planning and analyticsCore HR and payrollEmployee dataOrganisational dataCompetency dataTime and attendance managementTalent managementThe Human Resource ChallengeSAP HCM portfolio Employee self service Manager self service SAP Interactive & web forms Shared service framework Mobile Employee performance management Compensation management Talent assessment Succession management Talent development and learning Recruiting HR administration Organisational management Organisational visualisation Benefits enrolment and administration Payroll processing Employee file management Reporting and analytics Document presentment Time management Workforce scheduling and optimisation Forecast and plan Rostering Analyse and scheduleHCM Service DeliveryWorkforce planning and analyticsCore HR and payroll Executive analytics Ad hoc reportingSAP ERPHCM PhaseI & IISAP ERPHCMP hase IIEmployee dataOrganisational dataCompetency dataTime and attendance managementTalent managementWhat I ll coverOverall Strategy and ApproachRe-confirmoverallmandatesand solutionupdatesConductmaturityassessment Rescheduleprojectmilestonesanddeliverabl esProvide upfrontinformationon all SAPstandardbusinessprocesses,reports andbusiness rulesCompilee-Learning(WPB) as wellas voicerecordings ofbusinessprocessesEstablishownershipMon itorchangeadoption(R=I x A )

4 Overall Strategy and ApproachSAP HCM implementation & change objectivesHow to transform the HR department from a reactionary environmentinto a strategic planning organisationUnderstand all of the business processesRealise the corporate goals and objectivesHow to determine the critical integration points in SAP ERP HCM and other modulesHow to utilise this functionality throughout the companyOverall Strategy and ApproachHR maturity assessmentSAP HCM Implementation Roadmap (Macsteel) | IsiGuBhu ProjectSAP ERP HCMM oduleCurrentMaturityLevelValue Chain ProcessesEAProcessLevel2012Q32012Q42013Q 12013Q22013Q32013Q42014Q12014Q22014Q3201 4Q42015 2016 processes up to work centresPA3 Employeemanagement53 Only biographical and excl benefitsTEM2 ETD management53 Only catalogues, scheduling and bookingsMonitoring, controland reports2 HCM reportingSAPstd3 All levels (SAP Standard, ad-hoc, analytics)Earliest start for PD2 People development53 Adding value to TEM and OMEarliest start for PY(Oracle to SAP)3 Payments & comp53 Completing HCM foundational processesEarliest start fortime mgmt (Kronosto SAP)3 Employeemanagement44 Subject to decision on KRONOSO verall Strategy and ApproachHR maturity assessmentSAP HCM Implementation Roadmap (Macsteel)

5 | IsiGuBhu ProjectValue AddingModulesCurrentMaturityLevelValue Chain ProcessesEAProcessLevel2012Q32012Q42013Q 12013Q22013Q32013Q42014Q12014Q22014Q3201 4Q42015 2016 and realisationPerformancemanagement2 Employee mgnt & dev53 Blueprint and realisationEmployment relations2 Employment mgnt53 Employment relations andwellnessCompensationmanagement2 Payments & comp53 More to do with complianceissuesHRP/PCP2 Planning and analytics53 Setting strategic capabilitiesMonitoring, controland reports2 HCM reportingAlllevels3 Focusing on analytics and SWPNAKISA1 Structure management53 Organisational visualisation &planning and talentESS/MSS1 Service delivery53E-servicesOverall Strategy and ApproachHR maturity assessmentSAP HCM Implementation Roadmap (Macsteel) | IsiGuBhu ProjectAdvancedModulesCurrentMaturityLev elValue Chain ProcessesEAProcessLevel2012Q32012Q42013Q 12013Q22013Q32013Q42014Q12014Q22014Q3201 4Q42015 2016 enhancements1 HRIS24E-services (Not started)e-COMP0 Payments & comp23E-services (Not started)e-Recruitment0On-boarding24E-ser vices (Not started)LSO0 Employee mgnt &development24On-line learning capabilities(Not started)HCM value analytics0 HCM forecasting24 Integration with SEME mployee interactioncentres1 Service delivery23 Part of re-structuring HCMSAP HANA0HR reporting andanalytics24 Subject to decision ontimelinesSAP success factors(Cloud)0HR reporting andanalytics24 Subject to decision ontimelinesMobileService delivery25 Subject to decision ontimelinesOverall Strategy and ApproachHR maturity assessmentLegendFoundational/Core Modules (OM/PA; PY.)

6 TM)1 to 2 yearsValue Added (Talent Management & Workforce Analytics)2 3 yearsService Delivery & Intelligence3 5 years Business processes includes: human resource planning, org mngt,benefits and employee administration, payroll postings and timemanagement SAP Employee Workforce Management Transactions ito: Orgunits, positions, jobs, employee benefits, personnel actions,payroll postings, planned/un-planned leave, time recording(attendances) Business processes involving the Employee Lifecycle wrt:recruiting, career and success planning, perf mngt, education,training and development SAP People Lifecycle Management Transactions ito: workforceplanning, recruitment, perf mngt, training and development,reward and recognition, retention and exit management matured Value Added HR enabling informed decision making Business partnership (talent management, career and successionplanning, pipeline management, ETD, assessment and interactioncentres)SAP HCM Implementation Roadmap (Macsteel) | IsiGuBhu ProjectChange AdoptionLeversCurrentMaturityLevelValue Chain ProcessesEAProcessLevel2012Q32012Q42013Q 12013Q22013Q32013Q42014Q12014Q22014Q3201 4Q42015 2016 re-structuring andstaffing3 AllAll2344 New HR model andcapabilitiesPolicy and practices3 AllAll2344 Organisational developmentBPM1 AllAll2343 Continuous improvementDatango1 Employee mgnt &developmentAll2344 TrainingChange management2 AllAll2343 CommunicationOverall HCMcapability maturity12345 Refer to legendOverall Strategy and ApproachHCM Road MapRedefinethe HCM strategyand design principlesNov2012 Jan2013 Mar2013 Jun2013 Jul2013 Oct2012 Aug2012 Documentrequired policyand proceduresBlueprint andconfigure newSAP systemInstall NAKISAand WPBC hange impactmanagementCreate neworganisationaldesign and structureAppoint new peopleto positionsInform businessStart adopting tonew HCM businessarchitectureNew HCM businessarchitectureimplementedWhat I ll coverLessons LearntCompetent and specialised project team and

7 Supportstructure/project governancesProcess ownershipHCM strategy and planChange management versus communicationStructure managementTraining standards specifically e-learningPhased approachSAP Standard HCM business process architecturePolicy and procedures reviewsWhat I ll coverSAP standardChange adoptionProject governanceTop cover and supportTeam workKey Points to take home12345 What I ll coverContact