As implemented HCM SAP ERP in Rosatom in only 4 months

TAdviser: Anna, tell how long at the central office of Rosatom the automated control system for personnel functions?

Anna Bobrova: In January, 2010 modules of accounting of personnel and payroll were brought into commercial operation. We began to use one more module on annual personel assessment in February. Thus, the personnel management system based on SAP ERP of HCM works at the central office of Rosatom already over a year.

TAdviser: During this time you managed to feel economic effect?

Anna Bobrova: Economic effect without fail will be, but the main expected result consists in managerial, administrative effect. It is much more important for us.

TAdviser: What does the managerial effect consist in?

Anna Bobrova: Already now we can quickly obtain all information necessary for us and on its basis to make better management decisions. Indirectly it influences also economic indicators. It is possible to carry to an issue of increase in cost efficiency also the fact that automation of a personnel management process, in particular HR records, will allow us to reduce considerably quantity of the established posts which are engaged in paper work. Personnel document flow is not end in itself. We received the tool allowing to execute quickly and qualitatively all basic HR functions. The released employees will be reorientated to functions of high-quality personnel recruitment, work with a talent pool and Higher education institutions, training and development of management skills in our heads, there will be personel assessment specialists who were not earlier. It considerable more important work, than basic personnel administration.

Artyom Akopov: I will add that the planned replication of a personnel management system on all enterprises of state corporation, will give considerably bigger managerial and, certainly, economic effect. Now replication of a system on several management companies, located in Moscow comes to the end, then implementation will take place at other enterprises of the industry, the plants, the stations. In all this weight the managerial result will be obvious economic, and first of all: it will be possible to collect for a short time up-to-date information from all enterprises, to establish more effective cooperation between the main office and structural parts of state corporation.

Anna Bobrova: I will agree with Artyom and I will give a specific example. One of functions of department of the social and labor relations and efficiency of HR departments is collecting of the reporting under personnel. Now to count the number of the employees working at all enterprises of nuclear sector the whole month is necessary. Very often, in a month while information goes, data manage to become outdated. Such reports become quarterly, but every time we has an error approximately in 20 thousand human.

Without having the uniform automated control system for personnel, despite the made efforts and the spent time, we are not always able to execute qualitatively even basic HR functions. Existence of such system at all enterprises of the industry will allow us to concentrate on strategic questions, but not to be engaged in routine paper work.

TAdviser: It is clear, what in such conditions implementation of a HR system was necessary, but whether there was this solution spontaneous or planned?

Anna Bobrova: The state corporation includes more than 150 legal entities, nearly 280 thousand employees work at the enterprises of the industry — clear that to manage such collective rather difficult, and for increase in efficiency, really, automation of this process was necessary. As I already described in the given example, in some cases it is just impossible to perform some functions, without having near at hand the necessary tool. But the solution was not spontaneous. Last year reforming of the industry, centralization of management of all our organizations began, the new development strategy appeared.

Artyom Akopov: Actually in the middle of 2009, even slightly earlier, development of IT strategy of all state corporation for 5 years began. The bulk of projects already started in 2010, but our project was started by the first. We successfully turned into commercial operation.

Anna Bobrova: The tasks set to us led to determination and adoption of the five-year development plan for state corporation. It included also implementation of the automated control system for personnel. Therefore what is made today it is only the first step to further development, expansion and replication of this system on all enterprises entering into state corporation. SAP implementation of ERP HCM became a necessary measure, a condition of further development and quality improvement of work in nuclear sector.

TAdviser: Really earlier in scales of state corporation similar automated systems were not applied?

Anna Bobrova: Earlier we used two automated systems: personnel records based on solutions of Oracle and payroll in the system of 1C. Systems were not integrated with each other that led to double accomplishment of the same work. Data of employees were entered in both systems separately, absolutely different people. At data migration in SAP we faced that data in our former systems were not identical. Therefore for department of personnel management very important requirement was that payroll was carried out in the same system where personnel records are kept. This function, within the changes happening in state corporation, is transferred to us now, earlier economists were engaged in a wage system. Replication of the system which is already implemented at the central office, unification of a personnel management system in scales of all state corporation will become the major step for us. According to the developed IT strategy it will take five years. And we, of course, had no such scales of automation.

Artyom Akopov: I will tell even more — such scales of automation, considering the number of the organizations entering into state corporation in Russia was not yet.

TAdviser: What is the time occupied personnel management system implementation at the central office of Rosatom?

Anna Bobrova: From the moment of the beginning of our cooperation with MOLGA Consulting before productive start of the project there passed 4 months.

Artyom Akopov: Yes, on project implementation less than half a year, it very quickly left. On September 9, 2009 we began work, and on January 1st, 2010 the personnel management system based on HCM SAP ERP for head office of corporation was brought into production operation: in it began to calculate salary and to keep personnel records. The period of stabilization and transfer of a system on support to an internal command took 3 more months. During this period regulations of technical and methodological support of the solution and end users were created: the external company leaves, a system remains at the customer with the created support service which without problems copes with all current tasks. In February, 2010 the personel assessment subsystem when all users using personel assessment began to work in a system was put in commercial operation. It is really unique short term for implementation of a similar system.

TAdviser: Also not enough time was allowed for preparation?

Anna Bobrova: On preparation if to speak about decision-making, even less time was allowed. As I already spoke, awareness of need of the automated control system for personnel came very quickly. In state corporation the development strategy changed, the management partially exchanged, the new people who were earlier working with very good automated systems came. There was a position of the deputy CEO for work with personnel, the functionality of HR department changed. The new high-quality tool without which it would be impossible to develop the new management program for personnel was necessary for us.

Thus, in the middle of last year development of five years' IT strategy which bulk of projects already started this year began. The implementation project of SAP ERP of HCM became the first and only which is already brought into commercial operation now.

These are unprecedented terms for start of such project. Never earlier I heard about an opportunity to unroll a similar system in such large organization for several months. My previous experience said about what for this purpose is necessary much more time. But, despite it, using MOLGA Consulting we successfully coped with an assigned task. It turns out that there is nothing impossible.

TAdviser: For certain in the course of implementation there were different difficulties how they were overcome?

Anna Bobrova: In general during the course of performance the project there was, probably, everything that could happen. In the beginning I thought that approval of questions of security will be the main complexity. Security service specialists bewildered apprehended an assigned task, having told that similar projects in state corporation in such short time are not done.

Artyom Akopov: And was. In nuclear sector very tough standards work, and special attention is paid to security issues. Actually the security service is separate structure as a part of the state corporation influencing all internal processes here. However it is necessary to pay tribute to the staff of this service who understood our requirements and quickly got into gear.

Anna Bobrova: It turned out so that parallel to system implementation in state corporation there was a set of changes. Merge of Rosatom to one of the largest management companies "Atomenergoprom" is a striking example. Actually, it meant for us that instead of 600 employees of the central office whom we expected to transfer to work in HCM SAP ERP we suddenly unexpectedly had twice more people. They should be issued, at least, physically for work in again formed company. In parallel there were changes in structure of the organization: reorganization of departments, change of names, functions and structure of separate services, emergence of new positions. All this had to be considered timely at system implementation, and load of employees was huge.

TAdviser: But on it difficulties did not end?

Anna Bobrova: Not the smaller complexity was represented by modification, simultaneous with development of methodology, of the automated processes. For example, at implementation of the procedure of annual personel assessment, the methodology of estimates was changed directly in the course of implementation. Business processes changed, parallel to them a system changed, the corporate prototype adapted to the actual procedure. The same complexity now at us is connected with implementation of a subsystem of setting and assessment of KPI. This module is very important within all state corporation therefore a great number of persons wish to take part in development of its methodology. We try to consider wishes of all heads that occasionally happens very difficult.

In general the initial project description which appeared in the fall of 2009 by the time of industrial start of a system significantly exchanged. Practically, the methodology of the project changed parallel to its implementation that not often meets in practice. But specialists of our external consultant, MOLGA Consulting company helped to overcome all arising problems to us. Together we could cope with all problems and receive excellent result.

Artyom Akopov: Was technical issues much in terms of the fact that within the five-year program of automation of state corporation our implementation goes the first. On all other projects there was only a preparation at this time — organizational, technical, people were selected, and we actually already had a work.

A system is constructed also on the portal SAP solution NetWeaver Portal which enough was brought recently to the market. It became the additional feature of the project which set the high level of all installation. The complexity consisted here that to us as to integrator, it was necessary to ensure smooth operation of the portal at simultaneous operation with it 200-250 users when there should be no, even insignificant failures. And this we solved a problem with success.

TAdviser: You spoke about high requirements to security in nuclear sector. Whether the functionality of SAP allowed to observe completely these standards or it was necessary to use solutions of third-party producers?

Anna Bobrova: The audit booked by a security service together with IT department showed that the implemented system provides complete closeness of information, both on data transmission channels, and on separations of powers. Without it it would not be allowed in commercial operation. All functionality is constructed on one product.

Artyom Akopov: Solutions of other producers were not used. All security policies are implemented in SAP, necessary standards were observed when using basic functionality of a system.

TAdviser: And what processes as a result were automated?

Artyom Akopov: Today HR records, payroll, the procedure of annual personel assessment are already automated. On the way beginning of commercial operation of the module of setting and assessment of the key performance indicators (KPI).

TAdviser: What new opportunities did the subsystem give you personel assessments?

Anna Bobrova: The personel assessment module, in a complex with other functionality of a system, gives to our heads the chance of fast inclusion in the new processes going in scales of state corporation. This year the procedure of annual assessment was started for the first time. It was estimated competences of all workers, their potential. Work was constructed based on portal access to the system of SAP: the head from the workplace filled an estimated form then met the subordinate and gave it a feedback. In an effect the employee could see own estimates at any time, having visited the personal page in the portal. Here the personal purposes, and the development plan for competences developed by his direct head are available to it. Such information helps the employee to execute the duties more effectively.

For our department the module of personel assessment is the convenient knowledge base about our workers. Using it, we can quickly create different reports, select employees with a high potential, certain estimates and competences. Monitoring professional development of employees, we have an opportunity to create an internal talent pool or to attract in the industry of those specialists who are not enough for us.

TAdviser: The subsystem of setting and assessment of accomplishment of KPI is already partially implemented within the general system of SAP, tell about how there will take place its use?

Anna Bobrova: The module of setting and assessment of accomplishment of KPI began to function in the test mode last year. Heads of our organizations made on themselves and the deputies cards of key performance indicators. The most important lack of similar work of the manual mode would be the lack of the uniform knowledge base on KPI. At the same time there is an experience, both large world, and the domestic companies which already thought up as it is possible to estimate efficiency and described the used key indicators. We decided not to invent the bicycle and, relying on this experience, created the KPI own card. Despite a complex system of efficiency evaluation in state corporations, a set of levels of management and types of activity — the card turned out to well structured and clear all employees filling it.

For each level in personnel structure the KPIs considering the key moments of activity of the employee are determined. The tool which the module of setting and assessment of KPI is allows the head, filling out the map on itself or the deputy to see all necessary key indicators on the computer monitor and nothing superfluous — it is simply impossible to get confused.

When automation of this procedure comes to the end, we in human resource department, will receive already filled agreed form in the uniform unified type. Now automation of process of approval and the statement of the filled KPI forms is not completed yet. Formation of cards goes on paper carriers and for their signing employees should come to the central office. But at the end of this year all reconciliation procedure will already take place in electronic form.

Full automation of setting and accomplishment of KPI will give to heads of end-to-end functions in state corporation which are, for example, service of personnel, financial service, audit and purchases, very important information on work of their removed subordinates in all organizations of the industry. It is important to such heads to know how effective objectives are executed by functional subordinates on places in time to adjust their work. Actually, from the workplace the head will be able to see functionality of the subordinates, their KPI, work indicators in a year and the arising problems, so timely to react to them, broadcasting positive experience on the relevant services in other organizations.

TAdviser: Implementation of the uniform unified wage system (UUWS) became one of compulsory provisions of unification of personnel management processes in Goskorportion. What opportunities from this point of view does HCM SAP ERP give?

Anna Bobrova: SAP implementation completely meets the requirements of EUSOT in sense of basic functionality. In our organizations many were afraid that at implementation of EUSOT it is necessary to adjust the methodology of payroll, arranging it under uniform standards that many forces and time will demand. However we could provide it and at a stage of methodological preparation to underlie the principles of EUSOT in a personnel management system: components of which the salary, a possibility of correction of positions, estimates, the professional status of the worker consists. As a result all our organizations will receive the ready tool with already put philosophy by means of which it is very simple to correct own methodology of payroll according to uniform unified standards.

TAdviser: Whether alternative products of other producers were considered before a choice was made for benefit of SAP solutions?

Anna Bobrova: Of course, the solution to implement SAP was not accidental. The IT department of state corporation carried out the analysis of several systems which are used now the different large companies. The final choice, as far as I know, was between products of Oracle and SAP. A choice for benefit of SAP was made thanks to bigger flexibility and ample opportunities of gradual accumulation of functionality, due to connection of new modules. We needed a strategic system which can be expanded and integrated easily with different subsystems. The solution based on developments of SAP was such.

TAdviser: Now you are happy with such choice?

Anna Bobrova: Earlier I already worked with SAP products, and I cannot tell that I am this system, delighted with the user interface, because externally it gray and boring. But this system works and really helps us to solve very important problems. Therefore I consider that the main thing that — as works a system, but not as it looks. It is the professional tool and I am very happy with it.

TAdviser: How did work of specialists of external integrator affect a successful completion of the project?

Anna Bobrova: As I already spoke, we had very intense year and, of course, there were different moments — we could argue, resolve jointly different issues, but, finally, we always were satisfied with work of staff of MOLGA Consulting. During the course of performance the project our relations often overflowed in a friendly bed. For example, at a methodology development stage it was very pleasant to me to learn that in the company integrator there are people who, without being a staff of HR divisions, understand questions of the labor law not worse me in spite of the fact that I in these questions am an expert. Therefore we always structurally conducted dialogue and received qualitative solutions of assigned tasks.

Especially I want to note such quality of project management in MOLGA Consulting. Everything that we did, was constantly fixed and, in an effect, we never had disagreements on already made decisions. And, in general, such qualities as responsibility, discipline and accuracy are inherent in specialists of the company.

As year for us, really, was in an amicable way difficult, and implementing solutions of SAP was not the only project, at us is permanent "the head" in different occasions hurt. If not accurate and operational work of consultants of MOLGA Consulting, it would be very difficult to us to meet with start of the automated control system for personnel such short time.

Artyom Akopov: Any project is executed much quicker and easier when there is a dense interaction of the invited specialists with the staff of the organization. We are happy with our clients not less, than they us. I am very grateful to Anna for warm responses about our work. But I want to tell that without that professionalism and readiness for cooperation that were shown from its party, without constructive support of Deputy CEOs Tatyana Kozhevnikova and Nicolai Solomon and also the project manager from state corporation Andrey Voyna – it would be much more difficult to carry out an assigned task in the delivered terms.

TAdviser: Thanks for a conversation!

The card of this project in TAdviser base