Dirk Ehlers

“It is not the strongest of the species that survive, nor the
most intelligent, but the one most responsive to change.”

Charles Darwin
Preface
Macsteel Board approved the IsiGuBhu (Beating to the rhythm of one beat!!! )Project for all
Macsteel business units and for all SAP ERP Solutions.

Human Resource Solution was to set the tone

especially from a Learning Perspective.
What I’ll cover
 Project Background
MACSTEEL SERVICE CENTRES SA (PTY) LTD

• Leading stockist, processor and

distributor of various forms of
steel and other metals
This mission is achieved via the • Firstly, redesign functional
• 11 business units with a organisations into cross-functional
network of more than 60 IsiGuBhu program which is a Business
Process Reengineering (BPR) initiative teams
branches in Southern Africa
with 5 400 staff that aims to reduce organisational
• Secondly, use technology to
layers, eliminate activities and
improve data dissemination and
Mission – to create sustainable establish best business practices
• decision making
industrial businesses pursuing
differentiation and low cost in
their operating environments
Project Background
(MSCSA)

Leading
stockist, processor and distributor
11
business units

5 400
staff
60branches

Sustainable industrial businesses

 Project Background
(MSCSA)

The IsiGuBhu program is a Business Process Re-engineering

(BPR) initiative that aims to reduce organisational layers,
eliminate activities and establish best business practices
 Project Background
(MSCSA)

• Cross-functional teams to drive BPR objectives

• Improve data dissemination and decision making
• Facilitate Enterprise Learning through in-house developed
e-learning programmes
IsiGuBhu Program Objectives
• Refocus on customer needs
• Redesign core processes
• Reorganise cross-functional teams
with end-to-end responsibility
• Organisational and people issues
• Improve business processes across
the supply chain and support
structures
 Project Background
IsiGuBhu program expected benefits

Reduces Eliminate Decreases

costs and need for
unproductive
cycle times 8 management
activities
layers

Accelerates Eliminates Improves Establish

quality by clear ownership
information errors and rework
reducing of processes
flow caused by
fragmentation
multiple handoffs

Measure Unlock Corporatise

Responsibility the full organisation
for output performance through a common,
based on potential of
the organisation modern
prompt feedback and
effective IT platform
What I’ll cover
 The Human Resource Challenge

Bill of Level of HR HR No standard Training Authorisations

materials maturity - strategic organisational HR and
approved especially direction structure business development
upfront HCM and processes strategy
practices road map
 The Human Resource Challenge
SAP HCM portfolio
Workforce planning and analytics HCM Service Delivery

Core HR and payroll

Employee data
Organisational data
Competency data

Talent management
Time and attendance management
 The Human Resource Challenge
SAP HCM portfolio
Workforce planning and analytics HCM Service Delivery
• Executive analytics • Employee self service
• Ad hoc reporting • Manager self service
SAP ERP • SAP Interactive & web forms
HCM Phase
• Shared service framework
I & II
Core HR and payroll • Mobile
• HR administration
• Organisational management
• Organisational visualisation
• Benefits enrolment and administration
• Payroll processing
Employee data SAP ERP
• Employee file management
Organisational data HCM
• Reporting and analytics Phase II
• Document presentment Competency data

Talent management
Time and attendance management
• Time management • Employee performance management
• Workforce scheduling and optimisation • Compensation management
Forecast and plan • Talent assessment
Rostering • Succession management
Analyse and schedule • Talent development and learning
• Recruiting
What I’ll cover
 Overall Strategy and Approach

Re-confirm Conduct Reschedule Provide upfront Compile Establish Monitor

overall maturity project information e-Learning ownership change
mandates assessment milestones on all SAP (WPB) as well adoption
and solution and standard as voice (R=I x A²)
updates deliverables business recordings of
processes, business
reports and processes
business rules
Overall Strategy and Approach
SAP HCM implementation & change objectives

How to transform the HR department from a reactionary environment

into a strategic planning organisation

Understand all of the business processes

Realise the corporate goals and objectives

How to determine the critical integration points in SAP ERP HCM and other modules

How to utilise this functionality throughout the company

 Overall Strategy and Approach
HR maturity assessment
SAP HCM Implementation Roadmap (Macsteel) | IsiGuBhu Project
Current EA Maturity
SAP ERP HCM Maturity Process 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2016 2017 Level
Module Level Value Chain Processes Level Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 … Achieved Comment
OM 2 Structure 5 3 All processes up to work centres
management

PA 3 Employee 5 3 Only biographical and excl benefits

management

TEM 2 ETD management 5 3 Only catalogues, scheduling and bookings

Monitoring, control 2 HCM reporting SAP 3 All levels (SAP Standard, ad-hoc, analytics)
and reports std

Earliest start for PD 2 People development 5 3 Adding value to TEM and OM

Earliest start for PY 3 Payments & comp 5 3 Completing HCM foundational processes
(Oracle to SAP)

Earliest start for 3 Employee 4 4 Subject to decision on KRONOS

time mgmt (Kronos management
to SAP)
 Overall Strategy and Approach
HR maturity assessment
SAP HCM Implementation Roadmap (Macsteel) | IsiGuBhu Project
Current EA Maturity
Value Adding Maturity Process 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2016 2017 Level
Modules Level Value Chain Processes Level Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 … Achieved Comment
Recruitment 2 On-boarding 5 3 Blueprint and realisation

Performance 2 Employee mgnt & dev 5 3 Blueprint and realisation

management

Employment relations 2 Employment mgnt 5 3 Employment relations and

wellness

Compensation 2 Payments & comp 5 3 More to do with compliance

management issues

HRP/PCP 2 Planning and analytics 5 3 Setting strategic capabilities

Monitoring, control 2 HCM reporting All 3 Focusing on analytics and SWP

and reports levels

NAKISA 1 Structure management 5 3 Organisational visualisation &

planning and talent

ESS/MSS 1 Service delivery 5 3 E-services

 Overall Strategy and Approach
HR maturity assessment
SAP HCM Implementation Roadmap (Macsteel) | IsiGuBhu Project
Current EA Maturity
Advanced Maturity Process 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2016 2017 Level
Modules Level Value Chain Processes Level Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 … Achieved Comment
Portal enhancements 1 HRIS 2 4 E-services (Not started)

e-COMP 0 Payments & comp 2 3 E-services (Not started)

e-Recruitment 0 On-boarding 2 4 E-services (Not started)

LSO 0 Employee mgnt & 2 4 On-line learning capabilities

development (Not started)

HCM value analytics 0 HCM forecasting 2 4 Integration with SEM

Employee interaction 1 Service delivery 2 3 Part of re-structuring HCM

centres

SAP HANA 0 HR reporting and 2 4 Subject to decision on

analytics timelines

SAP success factors 0 HR reporting and 2 4 Subject to decision on

(Cloud) analytics timelines

Mobile Service delivery 2 5 Subject to decision on

timelines
 Overall Strategy and Approach
HR maturity assessment
SAP HCM Implementation Roadmap (Macsteel) | IsiGuBhu Project
Current EA Maturity
Change Adoption Maturity Process 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2016 2017 Level
Levers Level Value Chain Processes Level Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 … Achieved Comment
HR re-structuring and 3 All All 2 3 4 4 New HR model and
staffing capabilities

Policy and practices 3 All All 2 3 4 4 Organisational development

BPM 1 All All 2 3 4 3 Continuous improvement

Datango 1 Employee mgnt & All 2 3 4 4 Training

development

Change management 2 All All 2 3 4 3 Communication

Overall HCM 1 2 3 4 5 Refer to legend

capability maturity

Legend
Foundational/Core Modules (OM/PA; PY; TM) Value Added (Talent Management & Workforce Analytics) Service Delivery & Intelligence
1 to 2 years 2 – 3 years 3 – 5 years

• Business processes includes: human resource planning, org mngt, • Business processes involving the Employee Lifecycle wrt: • Value Added HR enabling informed decision making
benefits and employee administration, payroll postings and time recruiting, career and success planning, perf mngt, education, • Business partnership (talent management, career and succession
management training and development planning, pipeline management, ETD, assessment and interaction
• SAP Employee Workforce Management Transactions ito: Org • SAP People Lifecycle Management Transactions ito: workforce centres)
units, positions, jobs, employee benefits, personnel actions, planning, recruitment, perf mngt, training and development,
payroll postings, planned/un-planned leave, time recording reward and recognition, retention and exit management matured
(attendances)
 Overall Strategy and Approach
HCM Road Map New HCM business
architecture Jul
implemented 2013

Jun
Start adopting to 2013
new HCM business
architecture

Mar
2013
Inform business

Appoint new people

Jan to positions
2013
Nov
Redefine
Blueprint and 2012
the HCM strategy
configure new Install NAKISA
and design principles
SAP system and WPB Oct
Aug 2012
2012 Create new
Document Change impact organisational
required policy management design and structure
and procedures
What I’ll cover
Lessons Learnt

Competent and specialised project team and support

structure/project governances
Process ownership
HCM strategy and plan
Change management versus communication
Structure management
Training standards specifically e-learning
Phased approach
SAP Standard HCM business process architecture
Policy and procedures reviews
What I’ll cover
Key Points to take home

1 SAP standard

2 Change adoption

3 Project governance

4 Top cover and support

5 Team work
What I’ll cover
Contact