The document outlines different approaches to global rollouts of changes to SAP HCM systems. It discusses the "conqueror's approach" which tries to force changes but often provokes resistance. The "missionary's approach" assumes the changes are blessings but can also provoke resistance by not involving local teams. A cooperative model is recommended that provides clear guidance but also involves local knowledge and management to gain support and ensure changes fit each country's needs. Both central teams and local teams must be open to learning and changing as part of successful global rollouts.

1. 2/24/10
Agenda
• The
Forgo.en
Half
of
Change
• Understanding
Where
Other
Countries
are
Different
in
SAP
HCM
• Changes
HiCng
the
Corporate
FuncFon
in
SAP
HCM
• Understanding
the
Roles
of
Mindset
and
Culture
• GeCng
Everybody
on
Board
• EvaluaFng
the
Effort
and
Risk
of
the
Change
Program
• PuCng
it
all
together:
Your
Roadmap
to
Change
• Wrap-­‐up
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
1

2. 2/24/10
The
conqueror’s
approach
to
global
rollout
• Common
aCtude:
– Headquarters
want
this
– We
expect
resistance,
because
that’s
what
always
happens
– But
we
have
support
from
the
board
and
we’ll
squash
any
resistance
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
Changing
things
by
force
is
supposed
to
be
quick
• However,
it
oXen
doesn’t
work
– Provoking
even
tougher
and
longer
resistance
– CreaFng
parFsans
to
make
you
stumble
during
the
project
• It
does
permanent
damage
to
morale
and
cooperaFon
aXer
the
project
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
2

3. 2/24/10
The
missionary’s
approach
to
global
rollout
• Mindset:
we
bring
the
blessings
of
civilized
HR
to
the
world
• Problems:
– Likely
to
provoke
resistance
– Certainly
local
employees
won’t
take
any
ownership
– Missing
out
on
learning
opportuniFes
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
It’s
not
only
the
others,
who
need
to
change
• It
is
obvious
that
there
is
change
for
integrated
countries
• However,
it
is
rarely
appreciated,
how
much
change
is
required
from
central
IT
or
HR,
affecFng
– Systems
– Processes
&
behaviours
– ACtudes
&
mindsets
– OXen
right
down
to
values
and
basic
assumpFons
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
3

4. 2/24/10
Coopera6ve
model
for
change
• While
some
clear
guidance
from
top
management
is
required,
your
change
model
needs
a
strong
cooperaFve
element,
because
– Your
depend
on
local
knowledge
for
project
success
– You
need
local
management
and
HR
to
bring
the
workforce
on
board
– SAP
HCM
is
oXen
a
part
of
a
large
integraFon
project
(post
acquisiFon)
and
therefore
not
supposed
to
rock
the
boat
– You
don’t
want
to
end
up
micromanaging
local
HR
processes
from
the
corporate
centre
• To
get
to
a
cooperaFve
model
it
helps
to
– Appreciate
that
both
sides
need
to
change
– Be
open
to
learn
– Involve
local
managers
and
experts
early
on
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
Agenda
• The
Forgo.en
Half
of
Change
• Understanding
Where
Other
Countries
are
Different
in
SAP
HCM
• Changes
HiCng
the
Corporate
FuncFon
in
SAP
HCM
• Understanding
the
Roles
of
Mindset
and
Culture
• GeCng
Everybody
on
Board
• EvaluaFng
the
Effort
and
Risk
of
the
Change
Program
• PuCng
it
all
together:
Your
Roadmap
to
Change
• Wrap-­‐up
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
4

5. 2/24/10
Background:
the
global
template
• SAP
HCM
configuraFon
is
split
into
– Global
&
mandatory
global
template
– Global
&
voluntary
– Local
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
Global
template:
how
it
really
looks
like
• You
need
to
go
into
detail,
building
the
foundaFon
for
– SAP
HCM
customizing
– AuthorizaFons
– Interfaces
– Training
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
5

6. 2/24/10
How
global
can
the
system
really
be?
• Corporate
IT
and
HR
usually
underesFmate
the
need
for
localizaFon,
because
they
assume
– Complexity
in
all
countries
sits
in
the
same
processes
– Legal
requirements
are
restricted
to
payroll
and
benefits
– Legal
requirements
and
language
are
the
only
significant
drivers
for
localizaFon
– Processes
on
the
mother
country
are
best
pracFce
throughout
• Local
HR
and
IT
try
to
sFck
to
their
ways,
assuming
– Corporate
funcFons
don’t
understand
local
needs
anyway
– It’s
all
about
cuCng
their
jobs
– Corporate
funcFons
are
not
prepared
to
compromise
– The
way
SAP
HCM
does
things
is
alien
to
them
and
looks
overly
complicated
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
Some
surprises
for
corporate
HR
and
IT
• There
are
many
country
specifics
beyond
payroll
&
benefits
– Master
data
info
types,
even
when
not
used
for
payroll
– Statutory
reporFng
&
staFsFcs
– EEO
compliance,
parFcularly
in
recruiFng
– Not
everywhere
do
people
love
retroacFve
accounFng
as
much
as
in
Germany
– Data
privacy
• Best
pracFce
doesn’t
work
the
same
in
each
country
– ACtudes
&
culture
have
an
impact
• E.g.:
Self
Service
is
oXen
a
problem
– Business
is
done
differently
in
a
different
environment
• E.g.:
with
much
lower
wages
automaFng
processes
doesn’t
always
make
sense
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
6

7. 2/24/10
Simple
example:
infotype
0002
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
Consolida6ng
numbers
for
repor6ng
is
easy?
• AssumpFon
in
corporate
reporFng
– We
acknowledge
that
subsidiaries
use
different
wage
types,
employee
subgroups,
etc.
– So
based
on
the
current
reporFng
in
the
mother
country
• We
build
matching
tables
to
match
other
countries
wage
types
etc.
with
those
we
are
reporFng
today
• Maybe
even
add
a
few
new
ones
• Feed
the
numbers
from
all
countries
into
BI
where
the
matching
rules
integrate
them
into
our
reporFng
• It’s
not
that
easy
– Many
local
wage
types
etc.
cannot
be
matched
with
an
exisFng
one
– You
end
up
comparing
apples
with
pears
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
7

8. 2/24/10
Simply
matching
the
old
structure
doesn’t
work
Old
(German)
French
Czech
German
German
5652
1000
2222
WT5652
WT5726
5726
1000
2222
???
1101
3000
French
Czech
???
1100
???
WT1000
Bucket
WT2222
???
???
2223
1
French
Czech
WT1101
WT
3000
French
Czech
WT1100
Bucket
WT2223
2
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
Agenda
• The
Forgo.en
Half
of
Change
• Understanding
Where
Other
Countries
are
Different
in
SAP
HCM
• Changes
HiCng
the
Corporate
FuncFon
in
SAP
HCM
• Understanding
the
Roles
of
Mindset
and
Culture
• GeCng
Everybody
on
Board
• EvaluaFng
the
Effort
and
Risk
of
the
Change
Program
• PuCng
it
all
together:
Your
Roadmap
to
Change
• Wrap-­‐up
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
8

9. 2/24/10
Where
you
need
to
change
in
HQ
country
HR-­‐Process
ACtudes
IT-­‐
&
Process
mindsets
Technology
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
HR
process
changes
at
HQ
• Redesign
HR
reporFng
to
be
really
global
– Global
reporFng
should
not
be
an
extension
of
the
former
HR
reporFng
in
the
HQ
country
– Understand
local
data
• Provide
date
for
global
processes
in
– Recruitment
– Succession
planning
– OrganizaFonal
management
• Use
corporate
language
as
defined
– May
differ
from
language
in
HQ
country
– Consider
which
info
needs
to
be
available
in
local
languages
• The
usefulness
of
English
as
corporate
language
is
usually
overesFmated,
parFcularly
by
Europeans
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
9

10. 2/24/10
IT
process
changes
• Consider
Fme
zones
&
payroll
schedule
– There
may
be
no
“night”
any
more
for
batch
jobs
and
system
restarts
– Weekends
for
maintenance
shorten
or
vanish
– No
comfortable
4
weeks
period
between
payrolls
for
upgrades
• Be
inclusive
in
communicaFon
– Provide
all
globally
relevant
informaFon
in
English
– Some
info
needs
to
be
available
in
local
languages
as
well
• Hotline:
24/7
and
mulF-­‐lingual
– Think
about
local
centers
of
experFse
and
“follow
the
sun”
• Redesign
your
tesFng
and
QA
processes
– When
installing
support
packages
or
upgrades
you
can
no
longer
focus
on
one
MOLGA
(country
modifier)
only
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
Technology
changes
• AuthorizaFons
– It’s
not
only
about
protecFng
HQ’s
data
from
subsidiaries
– Consider
local
data
privacy
regulaFon
• Check
your
programming
guidelines
to
include
rules
about
– Making
programs
mulF-­‐lingual
– Being
generic
about
using
MOLGA,
country
key,
currency,
etc.,
when
selecFng
data
from
the
database
– Considering
Fme
zones
• Use
SY-­‐DATLO,
SY-­‐TIMLO
instead
of
SY-­‐DATUM,
SY-­‐UZEIT
• Infrastructure
– Ensure
appropriate
response
Fmes
for
all
locaFons
– Consider
local
PCs:
are
they
equipped
to
deal
with
SAP
GIU
and
portal
requirements?
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
10

11. 2/24/10
Agenda
• The
Forgo.en
Half
of
Change
• Understanding
Where
Other
Countries
are
Different
in
SAP
HCM
• Changes
HiCng
the
Corporate
FuncFon
in
SAP
HCM
• Understanding
the
Roles
of
Mindset
and
Culture
• GeCng
Everybody
on
Board
• EvaluaFng
the
Effort
and
Risk
of
the
Change
Program
• PuCng
it
all
together:
Your
Roadmap
to
Change
• Wrap-­‐up
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
Who’s
beSer?
• There’s
a
strong
tendency
for
the
team
from
HQ
to
feel
superior
– Because
they
are
HQ
– Because
they
deal
with
an
emerging
or
developing
country
– Reinforced
in
a
post-­‐acquisiFon
situaFon,
because
they
“won”
• Processes
worked
very
well
so
far
– Before
other
countries
where
integrated
in
the
same
SAP
HCM
system,
HQ
processes
may
have
been
perfect
– They
should
work
well
for
them,
too
– Reinforced,
when
HQ
is
by
far
the
largest
country
–
although
then
HQ
processes
are
even
less
likely
to
fit
new
requirements
• Team
from
subsidiary
may
have
similar
argument
• Different
is
oXen
seen
as
“inferior”
rather
than
“fit
for
purpose”
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
11

12. 2/24/10
Cultural
layers
according
to
Schein
• Address
the
right
level:
– If
things
have
been
done
in
a
certain
way
successfully
for
a
very
long
Fme,
it
may
become
a
basic
Values
assumpFon
(not
usually
quesFoned)
Basic
– Change
efforts
oXen
target
AssumpFons
artefacts
only
–
the
easily
visible
behavior.
Norms
– Basic
assumpFons
are
not
easily
changed
and
may
even
need
to
be
worked
Artefacts
around
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
Required
aTtude
and
mindset
in
HQ
team
• HQ
team
needs
to
appreciate
that
– Their
current
processes
are
unlikely
to
be
fit
for
a
globally
integrated
SAP
HCM
environment
– Some
things
may
become
more
complicated,
but
understand
that
this
serves
strategic
objecFves
beyond
HQ
– They
may
lose
some
freedom
as
well
• They
need
to
be
open
for
– Best
pracFce
they
can
learn
from
subsidiaries
– Ways
of
doing
things
that
fit
a
parFcular
naFonal
culture
– Ideally:
moving
some
tasks
away
from
the
HQ
country,
if
circumstances
in
another
country
fit
the
purpose
be.er
• Distributed
centers
of
experFse
following
the
vision
of
a
transnaFonal
rather
than
internaFonal
organisaFon
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
12

13. 2/24/10
Na6onal
culture:
example
in
Hofstede’s
schema
Dimension
Uncertainty
Power
Individualism
Masculinity
/
(Mean) Avoidance
Distance
(51) Femininity
(64) (51) (51)
Germany Medium
(65) Low
(35) Moderately
high
Moderately
(67) Masculine
(66)
UK Low
(35) Low
(35) High
(89) Moderately
Masculine
(66)
Spain High
(86) Moderately
Medium
(51) Moderately
High
(57) Feminine
(42)
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
Rela6onship
with
6me:
example
Past
Present
Future
Mexico
UK
Germany
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
13

14. 2/24/10
There’s
no
“good”
or
“bad”
na6onal
culture
“Every
age,
every
culture,
every
custom
and
tradiFon
has
its
own
character,
its
own
weakness
and
its
own
strength…”
•
(Hermann
Hesse,
German
Novelist,
1877-­‐1962)
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
Agenda
• The
Forgo.en
Half
of
Change
• Understanding
Where
Other
Countries
are
Different
in
SAP
HCM
• Changes
HiCng
the
Corporate
FuncFon
in
SAP
HCM
• Understanding
the
Roles
of
Mindset
and
Culture
• GeCng
Everybody
on
Board
• EvaluaFng
the
Effort
and
Risk
of
the
Change
Program
• PuCng
it
all
together:
Your
Roadmap
to
Change
• Wrap-­‐up
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
14

15. 2/24/10
GeTng
the
HQ
team
on
board
• Don’t
assume
they
are
rollout-­‐ready
now
– Many
organizaFons
have
rolled
out
to
20+
countries
but
are
sFll
not
geCng
the
full
value,
because
HQ
hasn’t
changed
• Show
need
for
change
with
simple
examples
(process,
technology)
• Don’t
condemn
the
“old
ways”
– Show,
what’s
sFll
useful
• Make
it
fun
and
a
posiFve
challenge
– Exploring
internaFonal
differences
is
extremely
interesFng
– Those
not
moFvated
by
this,
are
unlikely
to
be
right
for
the
team
• Allow
Fme
for
the
learning
curve
– Do
some
pre-­‐project
training
– Start
with
“easy”
countries
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
The
global
rollout
team
Language
skills
InternaFonal
Like
travelling
experience
Perform
under
Open
minded
pressure
SAP
Know
How
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
15

16. 2/24/10
Get
local
buy
in
• Clearly
and
early
communicate
– ObjecFves
and
tasks
– Required
changes
(including
the
negaFve
ones)
– Changes
HQ
makes
for
the
benefit
of
subsidiaries
• Plan
for
success
– Design
the
project
so
that
the
subsidiary
gets
clear
quick-­‐wins
• Local
reporFng
• AutomaFon
or
plausibility
checks
in
data
maintenance
• Replacement
of
small
soluFons
in
Excel
etc.
with
SAP
HCM
• Understand
local
culture
and
requirements
– Fight
the
tendency
to
differenFate
less,
if
things
are
far
away
• Ireland
<>
UK
• Quebec
<>
Ontario
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
Stakeholder
management
• Understand
those,
who
affected
by
the
project:
– Which
power
do
they
have?
– What
do
they
want
-­‐
are
there
hidden
agendas?
• Typical
power
structures
differ
between
countries
(e.g.
unions)
Stakeholder
Power
Low
Medium
High
Low
Stakeholder
Interest
Mediu
Local
CIO
&
m
HRD
High
Local
experts
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
16

17. 2/24/10
Making
the
project
work
on
a
day-­‐to-­‐day
basis
• Promote
formal
and
informal
communicaFon
between
local
and
corporate
teams
– Arrange
face
to
face
meeFngs
as
early
as
possible
– Do
a
jour
fixe
as
web
conference
throughout
the
project
– Involve
them
into
a
fun
event
(like
a
football
tournament)
– Provide
chat
room
&
wiki
for
online
communicaFon
– Define
communicaFon
Fme
slots
suiFng
HQ
as
well
as
local
• Language:
– Avoid
using
HQ
language,
if
not
English
– Make
sure
you
have
translators
available
with
some
background
in
HR
and
IT
and
don’t
change
them
– Try
to
have
sb.
with
local
language
skills
on
the
global
team
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
Agenda
• The
Forgo.en
Half
of
Change
• Understanding
Where
Other
Countries
are
Different
in
SAP
HCM
• Changes
HiCng
the
Corporate
FuncFon
in
SAP
HCM
• Understanding
the
Roles
of
Mindset
and
Culture
• GeCng
Everybody
on
Board
• EvaluaFng
the
Effort
and
Risk
of
the
Change
Program
• PuCng
it
all
together:
Your
Roadmap
to
Change
• Wrap-­‐up
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
17

18. 2/24/10
The
change
kaleidoscope
• Simple
framework
to
assess
the
complexity
of
change
• Creates
awareness
for
project
Power
Time
planning
and
change
issues
• Implicates
design
choices
for
managing
change
Readiness
Scope
• For
detailed
informaFon
see
“exploring
strategic
change”
on
“resources”
Capability
Preser-­‐
&
va6on
slide
Capacity
Diversity
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
Design
choices:
examples
• Time
– Time
pressure
may
require
more
top-­‐down
and
less
cooperaFve
change.
Important:
demonstrate
need
for
this
approach.
• Use
the
“Burning
Plavorm”
concept
• CapabiliFes
– If
strong
SAP
HCM
capabiliFes
are
already
available
locally,
less
guidance
from
HQ
is
required
• Set
objecFves
in
clear
framework
and
don’t
micromanage
within
this
space
• Readiness
– If
HQ
is
not
at
all
open
minded
about
local
requirements,
differences,
and
strengths,
more
Fme
is
required
to
• Educate
HQ
team
• Maybe
replace
individuals
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
18

19. 2/24/10
Agenda
• The
Forgo.en
Half
of
Change
• Understanding
Where
Other
Countries
are
Different
in
SAP
HCM
• Changes
HiCng
the
Corporate
FuncFon
in
SAP
HCM
• Understanding
the
Roles
of
Mindset
and
Culture
• GeCng
Everybody
on
Board
• EvaluaFng
the
Effort
and
Risk
of
the
Change
Program
• PuCng
it
all
together:
Your
Roadmap
to
Change
• Wrap-­‐up
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
Change
roadmap
for
global
rollout
Define
corporate
Assess
change
Build
rollout
objecFves
&
requirement
on
readiness
in
HQ
scope
corporate
level
Make
operaFonal
Get
buy
in
from
Define
global
changes
required
subsidiaries
template
in
HQ
Assess
change
Manage
change
Observe
lessons
requirement
in
in
each
country
learned
each
country
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
19

20. 2/24/10
Does
this
apply,
if
we
already
had
some
rollouts
• Few
corporate
HR
and
IT
teams
have
really
developed
the
best
capabiliFes
and
culture
to
benefit
from
a
global
HR
system
• A
few
indicators
that
there
may
be
room
for
improvement
– You
need
to
quote
“top
management
support”
quite
oXen
to
make
local
subsidiaries
comply
with
your
guidelines
– Global
reporFng
is
suspiciously
similar
to
reporFng
in
HQ
country
– HQ
team
doesn’t
seem
to
learn
from
local
teams
– HQ
team
is
cynical
about
local
capabiliFes
and
other
way
round
– HQ
must
pay
for
rollouts,
as
subsidiaries
don’t
see
benefit
– There’s
no
clear
line
of
sight
between
cost
and
benefits
• If
such
indicators
apply,
you
should
take
a
break
and
go
through
steps
1
–
6
of
the
roadmap
before
your
next
rollout
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
Agenda
• The
Forgo.en
Half
of
Change
• Understanding
Where
Other
Countries
are
Different
in
SAP
HCM
• Changes
HiCng
the
Corporate
FuncFon
in
SAP
HCM
• Understanding
the
Roles
of
Mindset
and
Culture
• GeCng
Everybody
on
Board
• EvaluaFng
the
Effort
and
Risk
of
the
Change
Program
• PuCng
it
all
together:
Your
Roadmap
to
Change
• Wrap-­‐up
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
20

21. 2/24/10
Resources
• Geert
Hofstede:
– Culture’s
Consequences:
Interna2onal
Differences
in
Work-­‐Related
Values
• Edgar
Schein:
– Organisa2onal
Psychology,
3rd
ediFon
• Fons
Trompenaars
and
Charles
Hampden-­‐Turner
– Riding
the
Waves
of
Culture:
Understanding
Cultural
Diversity
in
Business
• Julia
Balogun
et
al
– Exploring
Strategic
Change
• Vivion
Cox
on
www.iproconhcm.co.uk/papers-­‐research.htm
– The
Challenge
of
changing
Organisa2onal
Culture
• Newsle.er
on
change,
organizaFonal
culture,
strategic
HCM:
– www.iproconhcm.co.uk/nl
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
Key
Points
• SAP
HCM
rollout
is
nearly
impossible
without
local
buy
in
• Both
sides
need
to
be
prepared
to
change
– In
processes
and
systems
– In
aCtudes
and
mindsets
• HQ
usually
underesFmates
the
complexity
of
localizaFon
• Cultural
awareness
is
paramount
• Each
single
rollout
needs
proper
change
management
–
focus
on
facilitaFng
communicaFon!
• The
change
kaleidoscope
gives
you
an
idea
about
the
complexity
of
the
change
effort
• To
minimize
cost
and
risk
of
a
global
rollout,
get
the
corporate
team
ready
first
www.iprocon.co.uk
Transforming
Organisa6ons
contact@iprocon.co.uk
21