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 don’t want to hear about the implementation because it usually means more money or another uncomfortable meeting with the steering committee to change the company’s 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 project’s 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 company’s HR goals.