The project manager of FGC UES about SAP implementation of ERP HCM

TAdviser: What information systems were used by your enterprise for personnel management prior to the beginning of the project on SAP implementation of ERP HCM? What premises of implementing solution of SAP were?

Elena Babaylova: Federal Grid Company was formed as a result of reforming in 2002 JSC RAO UES of Russia as the organization for management of the Single National Eclectic Network (SNEN). It has geographically distributed structure of branches and DZO in 73 regions of the country where more than 25000 workers work. Respectively, the company considered IT products for process automation of personnel management with ample opportunities of scaling. The decision on development of a corporate information system based on ERP was priyato in 2004. First-priority implementation of HR products was dictated by the planned continuation of process of reforming of the company. Organizational changes of the company with a big number of workers would entail excessive loading of HR of personnel both in executive office, and at more than 100 enterprises. Operations on calculation of FOT, document flow when translating, calculating limits of holidays, severance pays, etc. – without support of the information technologies configured on corporate prototypes, very much trudozatratna when restructuring.

One more reason of attention to the HR solution that the key indicator measuring company performance – reliability of operation of the electric networks. Therefore the emphasis is placed preparation, retraining, the correct motivation of production personnel. The high level of qualification of personnel is reliability of operation of ENES – the main part of a power generating system of Russia.

TAdviser: What the choice of the HCM SAP ERP system was connected with?

Elena Babaylova: It is the choice of top management of the company. What wants to be noted positive concerning this product: at replication of SAP solutions on the scale of large territorial structure, technology fulfill reliably. Besides, at SAP practice of localization of solutions for Russia and the developed network of partners is smoothly running.

TAdviser: What tasks were set by management for the project?

Elena Babaylova: The main objectives – to provide transparency and controllability. What does "transparency" mean? We should see that the structure of the enterprises corresponds to standard structure which is approved at the level of central office. Heads of the HR block can analyze structure of formation of the wage fund (WF), trace as regional government redistributes WF between the enterprises, to carry out the analysis of compliance of compensation, on separate by employee categories on the scheme of payment approved for the enterprises – the speech first of all about production and industrial personnel.

It is important to control execution of directives which go down to branches "on top". The decision on optimization of number is Let's say made. It is important to trace by the enterprises which of employees is planned under reduction, what education level at them, professional training and length of service in power, in the company.

TAdviser: How do you estimate degree of the involvement of top managers of the company into the project course? Which of heads sponsored for the project?

Elena Babaylova: The project had a high priority. The vice chairman of the board who is responsible for organizational development and corporate activity supervised the project. Tasks of the curator of the project included decision making concerning organizational changes in branches at business process optimization. Without support of the project at such level implementation in branched filial structure will not take place. Branches in 8 regions, have the management structure which is built up by the CEO corrected taking into account geographical features of service area, a possibility of involvement of skilled staff.

I want to place emphasis that our project did not set the purpose on reduction of number of staff at the enterprises after implementation of the IT system. Project objectives - optimization and redistribution of functions between the enterprises and regional government, centralization of a part of functions at the level of the region, creation at the level of the competence center region for the subsequent training and retraining of employees of the enterprises during the work with the ERP system.

TAdviser: Who was a part of project office?

Elena Babaylova: The Director of organizational development headed project office, under the leadership of deputy director generals of branches regional groups, regarding the functional volume of HR – deputy director generals on corporate services, regarding payroll - deputies for economy and finance worked. In the central working group and expert advice the active part was assigned to functional departments of executive office, IT to department and, of course, to the architect and the project manager from the contractor. I want to emphasize that implementation of the similar project is not only decision-making on processes "as is", "as there will be" also a setup of applications. It, generally planning and control of task performance by remote platforms. The solution of matters of argument between the center and regions. It should be noted that a project team met both the deadline, and the project budget.

TAdviser: How the choice of the partner for implementation was carried out? By what principles you were guided?

Elena Babaylova: In 2006 the pilot began consulting division of SAP company. Then project works were continued by MOLGA Consulting company – the partner of SAP specializing in development of systems of personnel management based on the SAP solution ERP HCM (SAP HR). We have a good practice of work with both organizations. The main selection terms – presence of own highly qualified specialists and a portfolio of successful projects.

TAdviser: What stages and implementation time of a system were?

Elena Babaylova: We began the project in 2005 with implementation of basic HR processes on organizational management and employee administration. At first "pilot" in Executive office at two enterprises of the Moscow region for the 2nd activities: operation and repair. Since 2006 – with payroll calculation. The HR component of the project was completed in the 2007th year. Then repair branches were selected in separate DZO. In 2008 the pilot on settlement center for the Ural region and the final circulation of the solution in architecture of regional settlement centers was implemented. Since 2010 we started SAP payroll calculation in 7 regions. The start of commercial operation matched a new step of reforming of the company and simultaneous transfer to its structure of more than 10,000 workers for January 1, 2010. IT support allowed to hold such large organizational event for the enterprises in 73 regions of the country without additional involvement of personnel personnel.

We passed the period of stabilization both on hardware-software resources, and regarding the implemented business functions. We treat improvements of the created system deliberately. Development for the sake of development is an inefficient expenditure of resources. It is more difficult to rewrite SAP solutions - it is not Excel. Projects in the field of HR, in plans are functions of analytics. The speech not only about analytical reports, and about scenarios of modeling "that if". The basis for such level of IT services is built, the SAP tools it is offered enough, readiness of business divisions for such problem definition is important.

The "Costs Planning on Personnel" project seems perspective. Today most the companies plans by experience of previous years, experience of planning taking into account different scenarios of development is practically absent. TAdviser: Within the project the module of a time recording was implemented. For what does the company use its functionality?

First of all, during the project a lot of work on alignment and reduction of diagrams of working time was carried out. In different regions with approximately identical number of employees the number of diagrams differed much.

Shift 15 minutes at the beginning of work and the end of work, for the beginning and duration of a lunch, time for a shift change – all this variance it was offered to arrange within the company.

Besides, there is a requirement of the correct quarter and annual planning of working time for the purpose of optimization of FOT. Night processings, work during week-end significantly influence FOT, especially at a shift method of work in the Areas of Siberia and Western Siberia.

TAdviser: What new opportunities gave subsystems Management of remunerations and "Awarding on KPI"?

Elena Babaylova: Processes by remunerations and awardings on KPI are automated since 2007. The main achievement is that process of collecting of indicators on 25 functional areas for all enterprises of the company and verification at the level of regions and central office takes place in 15 days. Without automation the problem in such time is not solved, so questionable date of receipt of remuneration for actually achieved result.

TAdviser: What were the biggest complexity and the greatest success of the project?

Elena Babaylova: The most difficult was to prove to business owners that there is a real opportunity to arrange and further to support the uniform directory of charges of deduction, a uniform technique of planning and a time recording and also payroll. There was an opinion that this process it is inexpedient to manage from the center. The reason – existence to regional specifics in compensation according to normative administrative documents of regional authorities.

Methodological work was conducted in total 2 years. As a result the uniform corporate document was approved for use within the company and formed the basis of the configured algorithms in a SAP system. The greatest success of our project is that we convinced the management not to stop the project in communication in planned by reorganization of the company. The decision on transfer of workers from DZO in branches was made in October, 2009. By the time of the beginning of the commercial operation calculated for 8.5 thousand workers we without uvelicheniiya of the budget transferred more than 10 thousand and calculated salary for January, 2010 in a SAP system. We understood that there are only two ways: stop now and can be, restartovat the project in a year or continue, understanding sharp increase in load of employees of economical HR departments and services of accounting and the reporting and, of course, a project team. Selected the second way, and were started.

TAdviser: How do you estimate transition probability of the company to use of a personnel management system according to the SaaS model in the near future? Whether you allow such opportunity or so far this option it seems improbable?

Elena Babaylova: In questions of transfer of a HR system to the SaaS model, I think, there will be restrictions regarding economic safety. Confidentiality of information is connected with specifics of activity. Similar solutions for us are irrelevant today.

The TAdviser center conducted an annual research of the market of personnel management systems in Russia. Unique statistical data about implementation of HRM systems are provided in this overview in free access, the functionality of modern solutions is described, recommendations about the choice of systems are provided. Chief information officers and suppliers impart experience creations of effective information systems.

• Classification and functionality of personnel management systems
• To whom and when it is necessary to implement a personnel management system?
• Volume, dynamics, and structure of the world market of the automation equipment of HR departments
• Top trends and forecasts of development of the world market of HRM
• Suppliers of HRM systems: leaders in different segments
• Russian market of HRM systems: volume and trends of 2010
• HRM systems: completeness of functionality and experience of implementations in Russia 2010
• Methods, approaches and problems of implementation of HRM systems
• TCO: How many will" the information system "cost"?
• As it is correct to select a HRM system: methodical recommendations
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• Molga HCM Fast startpredvaritelno the customized (packaged) personnel management system based on the SAP solution ERP HCM (SAP HR).
• Implementation project of a personnel management system based on HCM SAP ERP for retail chain stores of Eldorado Molga Consulting company

• Elena Babaylova: The high level of qualification of personnel – a basis of our work. "Federal Grid Company of the unified power system" (JSC FGC UES) brought into commercial operation a personnel management system based on HCM SAP ERP. For what this system is necessary the companies and what project deliverables, in an interview of TAdviser Babaylova Elena, the deputy chief of Department of information technologies of JSC FGC UES, the Project manager of SAP implementation of ERP HCM told.

• Oleg Baydin: The flexibility of iScala HRM allows to follow requirements of the Russian legislation which is not differing in constancy. For several years of JSC Chelyabinsk Zinc Plant completely transferred the main business processes of the enterprise to the iScala platform. Automation of accounting of personnel and payroll for 3000 employees of the company became one of essential stages of this large-scale ERP project. What nuances the plant faced during this stage and also Oleg told CIO of Baydin company about the impression of the module iScala HRM TAdviser.

• Maria Vozhegova: We achieved transparency and controllability of processes of personnel records. Consolidation of group at the interregional level, and then, already in use became Impulse to implementation of a new personnel management system in Rosgosstrakh, the BOSS-PERSONNEL OFFICER system successfully endured one more consolidation of the company, already in federal scale. At the same time in 5 years of operation a HRM system on the BOSS platform uninterruptedly processes data of more than 100 thousand staff of the company. How it was succeeded to achieve brilliant results at such scale of the project, TAdviser was told by the vice president for IT and transactions of Rosgosstrakh company Maria Vozhegova.

• Mikhail Panchenko: Implementation of a HRM system is least risky as the result is clear and obvious. Fixed capital of any company are her employees. Those heads who fully realize it think of implementation and development of personnel potential of the subordinates, talent management sooner or later. At the same time it is important to understand that the strategy of personnel management is inseparably linked with the main business strategy. Such companies come to need of implementation of management systems for human resources (HRM) sooner or later. TAdviser talked about specifics of the market of HRM to two company executives of MOLGA Consulting – the leading system integrator specializing in products of SAP company in the field of HR – CEO (Managing partner) Mikhail Panchenko and the Senior partner Evgeny Vasilyev.

• Dmitry Romanchenko: New requirements of the legislation on personal data – not a problem, but chance to upgrade HR-and other business systems of the organization. Dmitry Romanchenko, the manager of projects of Department of business applications and technologies of Oracle of IBS company tells about perspectives of market development of personnel management systems in FZ-152 light "About personal data".

• Natalya Sidorova: Crisis introduced positive amendments in approaches to the choice of HRM systems. The Epicor company in 15 years of work sold more than 150 large projects in the field of control automation by personnel in the Russian market. The area director of Epicor in Russia and the CIS countries Natalya Sidorova in an interview of TAdviser disproves a stereotype that the western system not fully corresponds to rules of the game in local market of work and also it is told how to estimate efficiency of implementation of a HRM system and to gain from it maximum benefit.

• Dmitry Takser: The market is waited by a new paradigm. To replace HRM there is EHRP or planning of human resources. For the last crisis year the BOSS system. The personnel officer remained not only among the dominating solutions for personnel management in the Russian market, but also considerably promoted among leaders in number of projects and completeness of functionality. How it was succeeded to perform it and also the head of marketing department of BOSS. Personnel systems company told about the innovation approaches in control automation by personnel of TAdviser

• Andrey Shabanov: Krom of a HRM system on model SaaS, our company also provides to clients a full range of outsourcing services.UСMS Group – the company with the western roots and the rich history of presence in the Russian market – on an extent of several years works on development of the advanced software product - HRM- systems Quinyx on model SaaS (Software as a Service). About that, clients are how ready to perception of SaaS technology, market prospects and partner plans of the company it is told in an interview.

• Sergey Shishov: Modern human capital management - a key to success of any company. The EVOLA company has strong industry expertize in the field of the implementing solution SAP ERP HCM in the companies of a power complex, retail and the banking sector. The CEO of EVOLA Sergey Shishov told in an interview of TAdviser about the most successful projects of the company in 2009 and also an output to the market of the new direction of a business intelligence and reform of Service center of operation of HRM solutions.

• Igor Jacobson: In cherishing, caring and growing up the personnel, there is a sure economic benefit. The Kompas company is engaged in control automation by personnel and payroll already nearly two decades. Having begun with small DOS programs, it came to creation of the full-function personnel solution "Kompas: Personnel management". At the moment this system firmly sustains the competition of the western HRM solutions and to success is applied in hundreds of Russian companies, including the largest machine-building holdings of the country. How a system evolved, its main advantages and practical experience of implementation the chief expert of the company Igor Jacobson told TAdviser.