Implementing SAP HR

When trying to decide whether to choose mySAP, or an HR specific software package to replace their existing Human Resources and Payroll systems, most companies will have similar questions and sometimes even apprehensions in regards to choosing mySAP HR !he uneasiness associated with the idea of going through a mySAP HR implementation evolves primarily around three main factors" the length of the implementation, the costs associated with it and the resulting, often painful, organi#ational changes !his article has a closer look at how organi#ations should approach a mySAP HR pro$ect, proposing solutions that should %e adopted prior, during and after the implementation to ensure a smooth transition and hopefully dissipate some of the concerns HR managers still associate with the idea of implementing mySAP HR !&'( )A*!+RS ,ength of the &mplementation -How long will it take to implement mySAP HR-. /this question has %een posed to me many times %y potential customers during pre0sales demonstrations !he answer is that it depends on the type of organi#ation, the si#e of the implementation and the effectiveness and experience of the consulting firm chosen 1ut it is reasona%le to say that for a mid0si#ed organi#ation with a%out 23 333 employees, the implementation of the mySAP HR modules, Personnel Administration, !ime 'anagement and some +rgani#ational 'anagement, from scoping to cut0over, should take %etween four to eight months 0 provided they have a team of experienced consultants and a fairly standard implementation &f you add Payroll to that, the pro$ect time frame should lie %etween six to nine months 4nfortunately, you may have heard a%out industry cases, where such implementations took over a year, clients grew increasingly frustrated with the external consultants and costs started to exceed far %eyond the original %udget !here are many reasons why implementations may take longer than planned and even though this is not the norm, it is important to pay attention, prior to pro$ect launch, to a num%er of factors that will ensure that the implementation is carried out smoothly within an accepta%le and adequate time frame State your Pro$ect 5oals and +%$ectives !he very first precaution companies should take %efore starting a mySAP HR implementation is to state clear Pro$ect goals and o%$ectives &n order to state clear pro$ect o%$ectives, organi#ations have to undergo a needs analysis and assessment Some of these needs might include having a data%ase providing instant access to employee information, including training performance, compensation and %enefits6 %eing a%le to run customi#ed reports, a reduction of the duplication of data with the payroll department, increasing payroll efficiency and accuracy etc +nce these needs are esta%lished 0 with input from all parties involved, not $ust HR and Payroll, %ut also &! and 4pper 'anagement, 0 the pro$ect goals have to %e stated What do you expect the new system to do. Which functions are essential. Start %y stating goals in the form of" e g the new HR&S and Payroll system must %e a%le to produce accurate and on0time payroll data, it must %e a%le to track employee a%sences etc +f course, starting this process requires knowing your %usiness 0 you have to do your homework %efore %eing a%le to esta%lish pro$ect goals &f you don7t know your %usiness well enough, then you won7t understand how mySAP or another (RP system can help you and you won7t %e a%le to ask the right questions when choosing an implementation partner Having clear o%$ectives will ensure that the implementation has a clear focus and expected outcome 0 these o%$ectives will help design a pro$ect plan, ensure team mem%ers remain focused and constitute a control measure for pro$ect leaders *ommitment to achieving the goals %y all parties involved !he people involved in a mySAP HR implementation are the different departments concerned 8HR and Payroll9, their key

users, the pro$ect team mem%ers, the &! department, ,ine 'anagers and 4pper 'anagement as well as external *onsultants &t is vital that all these people, with different personal o%$ectives and possi%le change management issues -%uy into- the new mySAP HR system Pro$ect sponsors and ,ine 'anagers have the critical task of choosing the right people and %riefing them a%out the expected pro$ect outcome Pro$ect goals have to %e stressed continuously, some companies have even pinned them down in the pro$ect room as a steady reminder Prior to pro$ect launch, pro$ect team mem%ers should %e properly introduced and it is very helpful to organi#e team activities to lay the groundwork for a solid group dynamic &t is equally important to have ,ine manager7s commitment to the pro$ect goals since they are the one7s promoting it to their employees 'anagers having o%$ections and refusing to co0operate need to %e identified in advance Having a committed pro$ect team and motivated ,ine 'anagers will reduce strain on %ehalf of the employees, add value to the organi#ation and ensure a smooth and on0time implementation *hoosing the right implementation partner As mentioned a%ove, identifying needs helps HR and Payroll professionals eliminate the wrong implementation partner very quickly, freeing up time to give more careful attention to those that might make for a %etter fit After clearly having reviewed what solutions the *onsulting firm proposes to your pro$ect goals and o%$ectives, there are a num%er of questions that should %e asked to a potential implementation partner which include" : Within what time frame can this implementation %e done. : What is your implementation strategy and methodology. : How much will this implementation cost us. : How much experience do you have with this type of implementation. : What are some of the issues you foresee and how can we deal with them efficiently. : How many consultants are required to perform the $o% and what is their %ackground. : How much experience do you have with upgrade issues. : What is your availa%ility for technical support after go0live. : What experience do you have with training required for HR and payroll and how long does it take. &t is also useful to ask for references and ask these references questions to determine how the consultants have responded to any pro%lems +rgani#ations facing a mySAP HR implementation need a %usiness partner that will %e there to support them Another crucial question would %e to ask specifically a%out support procedures Having an implementation partner with technical excellence in mySAP HR rather than a consulting firm with a %road skill set %ut lacking specific HR and Payroll knowledge will speed up the implementation time and save costs *hoosing the right pro$ect team mem%ers *hoosing employees who will play an active part in the mySAP HR pro$ect is often tricky Pro$ect sponsors and ,ine 'anagers want to have a motivated team 0 which requires picking dynamic people and filtering out those wary employees, afraid of change At the same time pro$ect team mem%ers need to %e familiar with the %usiness processes, quick and eager learners, good team players and possessing %oth analytical and &! literacy skills !hese employees need to %e identified at an early stage and properly %riefed a%out their new responsi%ilities !his process starts %y familiari#ing them with the corporate goals, the pro$ect goals and if availa%le yet 0 the pro$ect plan &t is very useful to prepare pro$ect $o% descriptions so that there are no surprises and employees will have a clear understanding of the expectations At this point, it is important to stress the fact that they won7t %e expected to perform their normal $o%s on top of the mySAP pro$ect and give them a chance to express their concerns +rgani#ations need to ensure that pro$ect team mem%ers have an adequate replacement for their normal $o% and that they will return to this $o% after the pro$ect goes live 'any organi#ations have special rewards for employees performing well in their new roles, which is an additional motivation Stressing the importance of supporting each other and taking quick decisions is equally critical Having a motivated, curious pro$ect team working well together will reduce the

pro$ect time Ask other companies !o ascertain the proposed time frame is within the norm, ask other companies how long it took them to implement mySAP HR *hoose a company that is close in si#e, having implemented the same modules Ask them if they were satisfied with their consulting firm and if the pro$ect time frame was respected !his is an excellent indicator of how much time is involved and will further allow you to select a partner Prepare a precise Pro$ect plan Preparing the pro$ect plan is a task carried out %y the Pro$ect manager8s9 Whichever tool or software he or she might choose to use, the following information should %e included" A list of all the tasks, a deadline for each of the tasks 8milestones9, person8s9 responsi%le for the task, control phases and a weekly and daily 'eeting Schedule 0 when, who, where and purpose. !here should %e active participation from &! and HR;Payroll;1enefits user departments in the scooping of the pro$ect, the pro$ect formation phase, issue resolution and definition of critical success factors !his pro$ect plan has to %e distri%uted to all pro$ect team mem%ers and daily meetings need to take place to ensure every%ody knows what areas they are supposed to %e working on and Pro$ect managers can monitor the progress !hese meetings are essential as well to identify pro%lem areas and take immediate corrective action Adopt an effective &ssue resolution method When issues are identified 0 and there will %e issues every day 0 these need to %e logged on a central data%ase, accessi%le for all the pro$ect team mem%ers &ssues should %e logged with the date, the person responsi%le6 system area affected and proposed solution Pro$ect 'anagers need to stress that team mem%ers must log all issues centrally and view the data%ase on a daily %asis, emphasi#ing the importance of mutual support" to solve an issue Pro$ect team mem%ers often need to work together and are dependent on the completion of someone else7s work Pro$ect leaders must also ensure that the issue data%ase is updated with the implemented solutions for future reference *hoosing the right pro$ect manager and having an effective issue handling procedure will save a great deal of time *hoosing and understanding a methodology Whether an organi#ation decides to choose SAP7s own methodology, ASAP 8Accelerated SAP9, or a different method, possi%ly a com%ination of the two, this methodology needs to %e concise, understood and well communicated *ompanies having more experience with mySAP HR tend to adopt their own methodology, many consulting firms also have their own methodology and there is no right or wrong solution as to which one should %e adopted What is essential though, is that the methodology should contain a precise pro$ect plan, standards, templates and guidelines for documentation, quality assurance procedures and a support model SAP7s own methodology, ASAP, was designed to support the rapid and efficient implementation of the R;< system !his approach uses different tools and accelerators via the &mplementation Assistant tool !he &mplementation Assistant contains a road map containing the different steps within the implementation 8Pro$ect preparation, 1usiness %lueprint, Reali#ation, )inal preparation, 5o0live = support9, &mplementation accelerators 8e g authori#ations made easy9, a >uestion and Answer data%ase helping to define the pro$ect scope, an open issue data%ase and 1usiness Process Procedures examples *reating a -favora%le- pro$ect environment facilitating communication and team working Prior to pro$ect launch, %efore pro$ect team mem%ers arrive, the office environment has to %e set up 0 this might seem like an evident thing to do %ut all too often, time is lost %ecause team mem%ers have to constantly move from one room to the next, not having a designated room, printers and phones are not set up properly and there is a shortage of Pc7s or laptops for all team mem%ers !he pro$ect team should all sit together in one room6 every person should have a P* and access to a phone and a printer &t is vital that pro$ect team mem%ers can communicate directly with each other in order to solve pro%lems quickly and to ensure effective teamwork (xtensive !raining Required 7'ySAP HR requires long training which takes time and

costs money7/ this is another apprehension often expressed %y HR and Payroll 'anagers While it is true, that mySAP HR does require thorough training, this training period can %e reduced to a great extent +n0going training versus after go0live training Rather than waiting until the end of the pro$ect, training should %e carried out continuously throughout the implementation &t is the responsi%ility of the consultants to carry out on0going knowledge transfer and to make sure that the pro$ect team mem%ers are fully trained in their areas !his seems to %e o%vious, %ut situations where client team mem%ers have very little involvement in the actual configuration of the system should %e avoided %y all means !his leads to an over dependence on the consultants 0 the organi#ation7s o%$ective must %e to %e almost self sufficient shortly after go0live &t is again the responsi%ility of the Pro$ect 'anager to ensure that on0going knowledge transfer takes place Have client pro$ect team mem%ers train the users !o reduce costs and save time, end users can %e trained %y the pro$ect team mem%ers With the new mySAP HR system in place, the roles, processes and $o%s will %e different ?uring the implementation, pro$ect team mem%ers should spend some time with the end users, training them how to use the system so that they can get gradually used it until go0live !he testing phase provides an excellent opportunity to involve end users 0 they can help the pro$ect team identify pro%lem areas and learn how to use the system at the same time Have training sessions prior to pro$ect launch Another option to reduce training costs and time is to prepare the users prior to the pro$ect launch %y organi#ing workshops and training sessions !hese workshops have a num%er of advantages" pro$ect team mem%ers can start %eing productive from day one, %eing familiar with the software, end users can %e given access to a 7sand%ox7 client and start 7playing7 with the system 'ySAP HR &s @ot A ->uick- Solution Small and mid0si#ed organi#ations often fear the fact that mySAP HR is not a -quick fix-- %ut a long term investment which they are not prepared for !his is true 1ut, on the other hand, management needs to look at the overall picture and corporate o%$ectives !hey need to evaluate if a simple HR and;or Payroll package guarantees that the organi#ation remains fit in today7s market place where effective Human Resources in general %ecome more and more critical 'ySAP HR is a long0term solution &n today7s economy, employee retention has %ecome a serious issue HR Professionals need to find the %est talent and then manage employees who have %ecome more and more demanding 1eing a%le to provide accurate, on0 time paychecks is $ust one of many challenges HR have to face 'ySAP HR meets those challenges offering an integrated solution that provides standard currency, regulatory, payroll, %enefits, and time0management capa%ilities for any type of organi#ation SAP7s HR solution supports integration with comprehensive analysis tools, and provides a complete picture of the organi#ation and the market environment in which it operates &t also allows maximi#ing the use of the &nternet to ena%le colla%oration and shared decision0making %etween employees and HR managers, which saves %oth time and money So rather than adopting a quick solution, that will most likely %e out0of date in the future, ?ecision0makers need to evaluate the %enefits they could gain %y implementing a system that provides enormous %readth of functionality, supporting everything from %asic administrative payroll and %enefits functions to leading0edge personnel development and compensation programs *+S! )A*!+RS !he next ma$or apprehension associated with mySAP HR implementations is the costs involved *ost of *onsultants *onsultants can %e expensive 0 %ut paying attention to a num%er of factors, including controlling the num%er of days consultants stay on the pro$ect and selecting experienced consultants, can minimi#e these costs *areful preparation of a %udget Pro$ect sponsors and 'anagement need to spend sufficient time preparing a %udget and work out a sensi%le pro$ect plan together with the consulting firm chosen !he %udget should include the num%er of days planned for each

consultant with dates, rates and the type of task A good consulting firm will %e a%le to give accurate num%ers of days 0 even though it is impossi%le to predict an exact num%er of days &t is also advisa%le to research how many consulting days other companies required 1y making this %udget as precise and detailed as possi%le and comparing the costs continually with the %udgeted figures, it is actually possi%le to stick to the %udget and may%e even save some money 0 on the other hand it also ena%les you to monitor any ma$or divergences and to take corrective actions )ixed contract versus time and material !o keep an eye on costs, it is sometimes more prudent to opt for a fixed contract rather than time and material &t is however important to keep some flexi%ility since it is likely that additional consulting days will %e needed 4nexpected pro%lems and complications can occur at any time and 'anagement needs to %e prepared for this 0 and have consultants on the pro$ect for extra days to solve the pro%lems &f you opt for a !ime and 'aterial contract, paying the consultants on an hourly %asis, make sure you have worked out a concise pro$ect plan with an accurate estimation of many days the consultants will %e needed Aeep in mind, that it is %etter to have one experienced 7expensive7 consultant who gets things done the right way the first time than two or more inexperienced consultants with lower hourly rates 0 quality will always prevail over quantity *hoosing a firm with a track record !his is pro%a%ly the most effective way of keeping costs to a minimum" choosing consultants with excellent technical skills and extensive %usiness process knowledge that gets things done and solve pro%lems quickly With more and more firms -out there-, this is %ecoming an increasingly difficult exercise and here again, a word0of0mouth recommendation %y other HR professionals is one of the most trustful source availa%le 'ake sure you ask consultants for references and their experience level Another option is to choose a smaller firm, speciali#ing in mySAP HR and Payroll only, providing consultants with the very specific skill sets needed for an HR Payroll pro$ect &t may seem o%vious to many, %ut it is worth noting that the skill0set needed to %e an effective SAP HR consultant is very different from that needed to %e effective in the other modules of SAP 8e g Accounting, ,ogistics, etc9 Spend some time with the consultants prior to pro$ect launch 0 it is equally important to %e a%le to work with them in a team (nsure that their work ethic and professionalism is up to your standards 'onitoring of progress on a daily and weekly %asis As with time, costs can %e reduced %y closely watching the progress %eing made Pro$ect team mem%ers should have a centrally logged action plan for each day and update this plan, together with the issue log, on a daily %asis *onsultants have to discuss tasks for the day with the client pro$ect team mem%ers and co0ordinate their work Phased implementations 8module %y module9 help to monitor costs !o have %etter control over implementation time and costs, mySAP HR can %e implemented in phases Approaching an implementation step %y step, users have time to get familiar with the system %efore launching the next module, which will ultimately reduce implementation time When implementing HR and payroll, the following phases would %e a good solution" PhaseB" 'aster ?ata, !ime 'anagement, Payroll, 1enefits Administration, +rgani#ational 'anagement and Payroll Phase 2" Personnel ?evelopment, Recruitment, !raining and (vents, !ravel 'anagement and *ompensation 'anagement 0 this phase can %e %roken down further Phase <" (mployee Self Service, 'anager7s ?esktop *osts of (mployees +n the Pro$ect !eam @ot A%le to Perform !heir @ormal Co%s ?uring the &mplementation Another cost factor is associated with the fact a replacement needs to %e arranged for employees assigned to the mySAP HR pro$ect !hey cannot %e expected to perform to $o%s at the same time *ommitment of employees during and after the implementation &n most cases, it is possi%le to have pro$ect team mem%ers temporarily replaced %y their colleagues &t is the ,ine 'anager7s responsi%ility to co0ordinate this exercise and to ensure that proper

%riefing and task delegation takes place &t is vital that all employees affected are committed to achieving the o%$ectives set %y the pro$ect 0 even if they are not directly participating 0 %y supporting their colleagues and ensuring that the %usiness operations are run as usual Support and *ommitment of ,ine 'anagers and 4pper 'anagement !he role of ,ine 'anagers cannot %e stressed enough 0 these are the ones who need to ensure that pro$ect team mem%ers can focus on the mySAP HR implementation, that their $o%s are carried out %y a suita%le replacement and that the replacement person is aware of the importance of his;her support !he role of 4pper 'anagement is to make the ,ine 'anagers -%uy into- the SAP pro$ect, explaining what is expected of them All too often it happens that ,ine 'anagers are not given the full picture, are therefore unsure a%out the outcome of the SAP pro$ect and concerned how to run their department with less resources 5aining the support of ,ine 'anagers is a certain guarantee for a smooth implementation Providing incentives and goal0%ased awards to reduce turnover on the pro$ect team Another idea is to offer incentives to those employees who are committed and hard working to achieving pro$ect goals !hese incentives could come in the form of a promotion, salary increase or company %enefits !his might make it easier for some people to dedicate their efforts to the SAP pro$ect and %e a motivation for others to $oin the team *osts of 4pgrading !he costs of upgrading might %e an additional reason why some organi#ations choose not to opt for mySAP HR Having a highly efficient, integrated and automated system versus an out0of0 date stand alone software Again 0 the question that organi#ations need to find an answer to, is whether it is worth %uying a small Payroll or HR package which might need to %e replaced within the next < to D years, either %ecause it is not sophisticated enough for the needs of your %usiness, does not offer suita%le integration or might %e %ecause it has %ecome out of date and the vendor can no longer offer technical support !he advantage of SAP7s software is that it keeps up with the latest technologies, laws and regulations and your system will not need to %e replaced 4pgrades are -mini- pro$ects 0 much of it can %e done in0house 4pgrades are 7less painful- than implementations mainly %ecause employees are already familiar with the product and much of the work can %e done internally 4pgrades are not a system replacement, %ut involve the implementation of additional functionalities and the latest technologies !he costs of upgrading are trivial compared to the costs of having to replace a system every few years !hey involve fewer, if any, consultants for a shorter period of time *ost of Software, ,icenses and (SS 'any mid si#ed organi#ations might %e reluctant to invest large sums of money into purchasing the software and user licenses !he other question that arises is" should we purchase SAP if we use it for HR only and Payroll only. Purchasing mySAP HR might not %e the right choice for small companies with few employees 0 %ut when a company is large enough to reali#e their need for an integrated HR and Payroll system, then the following analysis should help them $ustify the investment *alculating R+& and cost savings !o start evaluating cost savings, managers need to analy#e how much time is spent maintaining personnel records, recording time, running and correcting payrolls, maintaining training details on different spreadsheets etc How much money and resources are %eing used to pull information out of different systems or converting data in order to run reports. How many dou%le and triple entries are %eing made $ust to preserve the integrity of multiple systems and data%ases. After completing this exercise, managers should then look at the savings attained %y using mySAP HR, which provides timely information, helps to spot levels of a%senteeism, low retention, career progressions etc *ompany0wide reporting ena%les managers to %e proactive rather than reactive !racking and managing employees7 training and development on a single system ena%les them to internally promote and fill vacancies, reducing recruitment expenses 1y integrating external recruitment,

position requirements can %e matched with applicant qualifications, also reducing costs through decreased turnover ?ownloading payroll results and other cash flows out of payroll into accounting can %e automatic through an integrated system !his is only a %rief review of cost savings that can %e achieved through mySAP HR &t also helps to $ustify a mySAP HR implementation %y estimating the R+& However, attaching dollar values to time saved in HR can %e a difficult exercise While it is fairly straightforward to calculate expenses such as new software and hardware, consulting fees and staff time, it is another story to calculate the %enefits side of R+& As a starting point, executives need to look at o%vious dollar savings achieved through %enefits and employee administration self0service, time saved %y running customi#ed reports from one system etc 1ut to fully evaluate how much money can %e saved through SAP, executives need to take a closer look into HR processes, the new functions mySAP HR offers to re0engineer processes, the reduced num%er of people involved and shortened steps in a transaction +ne possi%le way of estimating R+&, is determining how much time 'anagers, Hr and Payroll employees and &! support staff spend on traditional processes, prior to the mySAP HR implementation, %y %reaking down the steps and attaching dollar amounts to each step in the process @ext follows an estimate of how much money can %e saved %y re0engineering these processes with mySAP HR !he same exercise should %e conducted after go0live, to measure the improvements achieved &ntangi%le %enefits (ven though R+& is important, the importance of involving end users up front and getting their input cannot %e stressed enough (mployee satisfaction contri%utes to the company7s %ottom line and has a direct impact on employee retention, performance and profita%ility ,ooking ahead" mySAP HR as an investment %enefiting the entire organi#ation, not $ust HR 'ySAP HR can %e extended to the whole organi#ation !he advantage of purchasing the software is that its functionality can %e extended as needed &f the primary o%$ective was to have an integrated HR&S and Payroll system and the implementation was successful, the next goal might %e to implement mySAP )inance and *ontrolling or Sales and ?istri%ution !he more familiar the organi#ation will %e with the software, the more likely it is to add extra functionality, extending mySAP to the whole company in gradual phases *osts of 'aintaining the System Another fear associated with SAP is that the pro$ect never ends/that it requires continuous maintenance %y external consultants who charge for their services 1eing self0sufficient will reduce maintenance costs !his situation can %e easily avoided %y having well trained users &f proper knowledge transfer occurs during the implementation and adequate end user training takes place at the same time, users will quickly come to know the system very well and %e self0sufficient !here will %e situations where they need external help to solve a system pro%lem %ut, chances are, the user will first use other sources such as the SAP online help However, a good consulting firm would %e willing to provide remote support at no or a minor cost for their clients Remote system support is an item that should %e discussed with the consulting firm prior to pro$ect launch ?esignation of an in0house support team !his is the responsi%ility of the Steering *ommittee and Pro$ect managers &t is vital to have an internal team of people providing technical support for the end users 4sually, the team is composed of the former pro$ect team mem%ers who know the system the %est, together with &! *ontinuous training of users to ensure efficient and effective use of SAP !raining should not %e reduced to a num%er of sessions during the implementation and after go0live &t is important that end users continually learn more a%out the system, growing gradually independent of external or internal help All @on Standard )unctionality Requires Programming and *osts 'oney and !ime ?epending on your %usiness processes, the standard delivered functionality might not cover all your needs and programming is required While this might happen, the amount of custom

programming 8i e 7A1AP79 and the costs associated with it can %e kept to a minimum &dentify all non0standard processes required prior to implementation &f you do your homework properly in the form of a needs assessment, all required system functionality should %e detailed in the R)P or R)> 8Request )or Proposal or >uote9 and consulting firms will propose solutions At this point, all %usiness requirements not satisfied %y the standard mySAP HR functionality should %e identified and classified as essential and non0essential ?iscuss each extra functionality required with your consultant and evaluate alternative solutions *larify up front how many days it requires implementing this extra functionality and including this in your %udget and pro$ect plan Wherever possi%le, opt for the standard mySAP HR solution +R5A@&EA!&+@A, )A*!+RS 1esides cost and time factors, a mySAP HR implementation also involves organi#ational changes which might %e an painful thought for many people who are used to running operations a certain way SAP7s Software +ften )orces +rgani#ations to *hange !heir 1usiness Processes While mySAP HR might involve a certain degree of %usiness process re0engineering this should %e viewed as an opportunity to improve %usiness processes and making the organi#ation more efficient ?efinition of %usiness processes prior to pro$ect launch !o ease this process, again 0 HR Professionals need to analy#e their %usiness processes prior to pro$ect launch Some HR departments might need a strategic consultant to help them assess their %usiness needs, and make process changes 'ake sure you know enough a%out your %usiness and your HR needs to so that you can ask intelligent questions when you interview consultant candidates Fiew it as an opportunity Gour mySAP HR implementation should not %e viewed as an 7&!7 pro$ect, and cannot %e treated simply as a 7system replacement7 &t presents an excellent opportunity for the organi#ation to change and replace out0of date %usiness practices, improve their procedures and align these with the new system 'ySAP HR will automate many processes and employees will %e a%le to carry out many of the administrative tasks on0line !his frees up time to focus on strategy, keeping up to date with laws and retaining human capital &t is necessary to involve &! and HR departments in the %usiness process re0engineering process SAP +ften &nvolves A Restructuring of the +rgani#ation While this can %e the case, the restructuring can actually help reduce costs With the new mySAP HR system in place, HR and payroll departments need to work together 0 mySAP HR alone will not allow HR to increase the contri%utions it makes to the %ottom line of the organi#ation *osts need to %e reduced and processes optimi#ed 0 this can only %e achieved %y having all key players work at the same centrali#ed location, rather than %eing gathered around different offices !he overhead for several decentrali#ed HR departments versus one centrali#ed department need to considered as well as the fact that a centrali#ed department will allow the consistent application of HR practices across the entire organi#ation (mployees Have to Perform ?ifferent and @ew !asks Which *auses Stress and Resistance to *hange Some pro$ect team mem%ers and employees will undergo a certain degree of strain during the mySAP HR implementation !hese include $o% strains associated with new responsi%ilities, apprehensions related to losing their $o% over the new technology, having to learn something they are unfamiliar with, having to work on the mySAP HR pro$ect on top of performing their normal $o%, having to work with new and different people, having to work in a different office, having to work with external consultants telling them what to do, etc Pro$ect preparation essential to deal with change management issues !o deal with these issues, it is vital to clearly define roles and responsi%ilities of all parties involved in order to set expectations &t is also advisa%le to appoint an internal *hange management consultant who knows the organi#ation and its employees and who has the trust of these employees !o avoid the panic and rumors associated with redundancies, talk to you employees, %eing truthful and clarifying the situation

Another commonly asked question is" How Will mySAP HR )it &n With +ther (xisting Systems. &nterfaces can %e %uilt and there are essentially two aspects to the interfacing of SAP and non0SAP software )irst, SAP offers various types of o%$ect0oriented, functional, %atch, and message0%ased interfaces, including interfaces for electronic documents Secondly, with the 1usiness Application Programming &nterfaces 81AP&s9 SAP has standardi#ed the %usiness meaning, of interfaces, in addition to offering interface compliance with technical industry standards, including (?&, *+R1A, and H', !he 1AP&s can %e %rought to your favorite programming language and development environment Also, SAP has found a solution to one of the traditionally most costly and time0intensive implementation tasks" migrating legacy systems &n the past, the costs of data migration have accounted for up to 23I of the total cost of a mySAP HR implementation pro$ect !his cost has now %een reduced thanks to the ?ata !ransfer Work%ench tool ena%ling data transfer data without little, if any SAP programming 'ySAP HR7s )unctionality &s &incomplete +r @ot sta%le (nough6 Some Areas +f &it Are !oo @ew And 4nsta%le Some parts of mySAP HR are new and have a history of insta%ility 8net payroll = tax reporting in particular9 'uch of the difficulty in these areas though is a result of a mix of poor implementation, lack of user training, and trying to force0fit existing %usiness processes into mySAP HR instead of changing them to work %etter with mySAP HR Payroll and tax reporting are very complex processes and are often the most difficult items to address in a mySAP HR implementation 'ost companies are reluctant to change their payroll and payroll tax processes, and without a full understanding of how mySAP HR7s payroll operates they often encounter pro%lems !aking the time to understand mySAP7s process and then fitting current processes into the mySAP framework can almost always prevent the pro%lems !he payroll portion of mySAP HR does work well, %ut as with any automated payroll system it is complicated and requires that you fully understand how to use it +nce again, your success in this area rests on thorough user training, making appropriate %usiness process changes, and leveraging experienced SAP Payroll consultants *+RR(*!,G &'P,('(@!(?, !H(R(7S @+!H&@5 !+ )(AR *ompanies should not %e afraid of implementing mySAP HR 0 %y avoiding certain pitfalls and paying attention to crucial factors such as clearly defining the pro$ect scope, having the whole company fully committed, supportive ,ine managers, a fast decision making policy, a competent pro$ect team and well trained users 0 you can implement mySAP HR with minimal costs within an optimum time frame !his new technology will make your organi#ation more efficient, strategy focused and ultimately more profita%le, fit for today and tomorrow7s economy