Evgeny Vasilyev: Without changes in the company of efficiency not to reach

TAdviser: How do you estimate a condition of the Russian market of HRM systems? Affected crisis market situation and what, in your opinion, forecasts of market development for the next year?

Now in the market really there are serious changes – business reduction, reduction of sales. In szyaz with it, there is a review of business in terms of efficiency, first of all. "Efficiency" – now the most fashionable word. In this case changes, in my opinion, happen positive. Last year there was just a boom on HRM systems, and in particular SAP HCM. Retail became more active – many companies of retail sale began to be engaged in implementation of HRM. But in many respects these implementations were just fashion trend, without understanding that implementation is necessary for business optimization. Now the trend exchanged – when we go to the client, the first question which to us is asked – and what economic effect we will gain from implementation of this solution? And it is remarkable that just HRM solutions allow to increase efficiency quickly.

We understand that the valuable personnel during crisis, on the contrary, increases the value: and the companies, carefully analyzing the investments into IT, continue HRM projects. In my opinion, those companies which are engaged in it now will recover from this crisis by leaders. And here during changes and structural changes, the concept which is already well-known in the developed markets became very demanded, but only comes to Russia – creation of the centers which are engaged in service for internal use. Economic effect of reduction of costs which at the same time can be received on HR area, according to researches of SAP – 30-40%. It is very serious and demanded and we have very good experience of participation in creation of the similar centers at our clients. Such projects do not stop, they proceed since there is an understanding of the end result.

TAdviser: How can you comment existing today in the market demand and supply? What is wanted by the customer, and the solutions which are present at the market how fully meet requirements?

Now there is a trend on transformation of HR service into the HR partner. The service ceases to be engaged in administration functions, functions of the dokumentoobrot. Therefore the maximum automation of these routine transactions, with creation of the centers is necessary to achieve the maximum effect. And reorientation of HR departments to development, training, assessment, quality control, motivation – what influences the strategy of the company what is demanded by shareholders and company executives. It is a top trend - reorientation from routine personnel administration to functions of ensuring company management. Also requirements changed - basic functions need to be automated and displaid as much as possible in service centers, to release personnel officers for the functions connected with company management.

Concerning systems. Systems are very diverse. There are different segments of the market – the large companies, medium and small business. In my opinion, in a segment of large business by the leader the SAP company is and the alternative to this solution just does not exist on several aspects – first, it is the localization for Russia entering standard delivery, secondly, it is great scalability and full value of the solution. Medium business: there is an understanding that SAP an expensive system and goes weighing of the price and quality. Here the serious competition to SAP is rendered, first of all, by the Boss-personnel officer and 1C. If the companies look forward, then investments into SAP is a right decision, but long-term. Today the company to be on average a segment, and tomorrow it became large. The SAP solution in this case will allow to support this growth without big changes. There is a scalability, localization for more than 80 countries of the world. If there is a speech about an exit to foreign markets – it is important.

TAdviser: Your company is not software developer, i.e. initially you were not tied to any product. Why you selected SAP HCM? Than this solution, in your opinion, is better than the others?

Some staff of our company is natives of SAP company, earlier worked in consulting division. Our CEO, being the head of department of consulting in due time, in general was the founder of practice of SAP HR in Russia. Our command was engaged and continues to be engaged in localization of the SAP solution.

The choice of SAP HCM is caused first of all by the fact that an open code system, a possibility of completion of a system under needs of the specific customer. SAP has an ideology: "You can change anything under your responsibility". SAP is rather flexible tool. Besides that there are standard local solutions conforming to requirements of the legislation, and there is a huge superstructure which goes beyond a national framework - it is selection, development, performance appraisal by different criteria, privileges, portal solutions, the systems of self-service, etc.

Our company specializes only in SAP HR. This quite unusual occurrence in the market. When we went on it, we understood some risks. When we began, demand in general was quite low, but the market developed. The company arose in 2006, and then there was yet no understanding as far as this narrow specialization will be demanded. There are companies integrators which offer implementation of many modules - both finance, and logistics, and HR … But such approach does not allow to koncentritrirovatsya and does not lead to improvement of quality.

We are engaged not only the IT solution, we are engaged also in business consulting. We carry out change of business processes. We have an experience, knowledge of best practices. And it is impossible to find the best solution without such concentration.

Besides that we are engaged in implementation, we develop standard solutions (accelerators) which cover basic functionality. And when we come to the project, we should not begin everything with "0" any more. What is the standard solution is a set of entrance documents, an implementation methodology, settings and completions to a system, a set of additional packets of the reporting, completion of solutions which SAP covers not completely (e.g., mezhrasschetny payments). All this allows us to do qualitative projects in the shortest possible time.

One more, already created, the direction of our activity is project management. A separate part which is important. There are employees who are able to manage changes, customer relations, with a project team. Often projects do not reach the end because bad project management.

There is a direction on training – "Molga-academy", on preparation of the project team participating in implementation. All this allows to do projects the fastest and effective for clients of our company.

TAdviser: 4. The solution of SAP - one of the most expensive in the Russian market. Whether outflow of clients to cheaper solutions is observed in connection with crisis?

There is no outflow. But in some companies projects are postponed. For the objective reasons - for example, a difficult situation in the industry. Not the termination, not a stop, but transfer on more distant perspective.

There is no transition to the system of other level since especially for large business of an alternative just does not exist. In the long term, all the same are going to implement SAP.

There are companies which are seen that implementation will bring them effect in the near-term outlook and do not postpone it. So, management of Eldorado company, carried out project efficiency evaluation, and they expect return in the amount of $1 million only from implementation of basic functionality. By our estimates, this digit is even higher. Thus, the payback of the project will happen in very close perspective.

TAdviser: 5. Characterize your typical customer. Whether there are industry preferences? What average, maximum and minimum size of customer company with which you should work?

The range of the industries of our clients is rather wide: at us is as domestic clients from the most different industries – retail, an oil and gas industry, power, car makers, chemical industry. Besides, we have rather big portfolio of clients consisting of representative offices of the western companies. We do for them localization and we perform support.

As for the sizes of the companies - customers, among domestic clients is, generally the companies of large business. Averages and even small companies are generally representative offices of the western companies.

TAdviser: Whether there are "the Russian specifics" of implementation of a foreign HRM system on domestic enterprises and what it consists in?

Yes, of course, the specifics exist. And, happens differently – in some questions more simply, and in some – it is more difficult. In the Russian companies it is more interesting to carry out implementation because there very big field for activity and achievement of maximum efficiency.

If to speak about project activity, then it is based on traditions of project activity in the Russian Federation (at first, trial operation, then commercial operation). Whereas in the western practice, this difference is leveled.

Besides, activity of most the large Russian companies is seriously regulated. For example, such industry as power. There extra work – management of regulations, management of orders is required. Project activity in the western companies is arranged more simply – here the project, here terms, here such employees are selected for such works. In the Russian companies on all these actions drawing up additional regulations and orders. is necessary, those it is necessary to manage also process of internal document flow of the company.

TAdviser: What most typical problems and difficulties it is necessary to face at implementation of a HRM system?

Resistance to new – a universal problem. It does not depend neither on national, nor on industry specifics. So at centralization and unification of activity, a part of processes becomes not necessary (for example, collecting and consolidation of information). It leads to reduction of a part of jobs. And employees whose jobs appear under the threat, most actively resist process.

Opinion that the good company integrator will come and everything will make – false. System implementation is a task of all collective. The successful project is a project which has a strong support at very high level. Frequent it is the head of level of the HR director or the CEO of the company who understands why it becomes, understands result (that will be "at the exit"), realizes what actions in the company should be made to achieve necessary result.

Very often problems arise if the decision on system implementation proceeds from IT service of the company. It is wrong. IT is an internal service which services needs of other divisions. And this service can independently implement the beautiful and remarkable solution which will not work for business in any way. The service focused on business – company management, or the HR director should be the project orderer. If the company management considers that implementation of a HR system only of IT the problem, then from such implementation will hardly turn out something good.

TAdviser: Whether there are situations when it is necessary to be engaged in completion of a system under unique requirements of the companies or standard functionality it appears enough? If yes, that what functionality in a system, in your opinion, is not enough?

There are companies which require additional functionality. For example, on nuclear power plants very serious requirements to labor protection. This module in SAP is, but not in that volume in what the NPP is required. There are also bank specifics.

But the situation is more often there is another. If having browsed all functionality of a system, the customer says: "It does not suit us, is not enough", most likely, employees just do not want to change. I.e. SAP approaches because it does not have enough functionality but because processes in the company are not optimized.

In those places where a system should be flexible – SAP rather flexible. It is necessary to do completions, additional developments. But if completions turn out much, it is necessary to sit down and think - why they and from where. So, for example, the employees working in the decentralized environment, getting to centralized, begin to ask often the same information which in this model of work is not necessary, or it is repeatedly duplicated. What is in general serious completion of a system? First, the client receives a system which does not increase efficiency because processes are not optimal. Secondly, costs for maintenance of such system significantly increase. All additional developments should be supported. If we work within standard functionality of a system, then all changes and updates entered SAP ohm (for example, in connection with changes of the legislation) "will be built in" a system correctly. And if you have many completions, then you cannot apply standard "patches" of SAP and use standard maintenance from the company for which, nevertheless, all the same should pay.

TAdviser: May you give any indicators allowing to estimate cost efficiency and in general results of system implementation of personnel management?

SAP is not a panacea, but it is very good environment on the basis of which you can make a uniform corporate information system which will be harmonious addition to those changes which you are going to make in the company. Without changes in the company of efficiency not to reach. And just to automate what is, and to tell that it is effective – it will never be. It is a package of measures, it changes in the company. The more the company, the more is observed effect due to centralization, unification, consolidation, creation of the service centers. On some processes increase in efficiency can reach 4-5 times. On average, on HR functions, according to a research of SAP, growth of efficiency is 30-40% in the western companies. Since formation of the Russian business happened in read years and the effect is gained much above.

TAdviser: What HRM projects implemented by your company in 2008-2009 can you note among the most significant and interesting?

One of the projects which are recently completed by us is a project in SUEK company. On this implementation all can equal. If someone says that SAP is long and hard, then here an example: the Molga company carried out implementation to the companies from 50 thousand employees was made in 10 months! Specifics of the project was big distribution of the company, a large number of the diverse substituted systems and big differences in business personnel management processes and payroll in different branches of the company. For this short time it was succeeded to carry out unification and centralization of processes and implementation of the Single information corporate system based on SAP ERP.

One more example – Eldorado company. Against the background of the changes happening in the company, it is finished. The pilot project in the Moscow branch was begun in July, 2008, already there is a commercial operation. As a result of increase in efficiency and centralization of processes in Personnel managements it is supposed that return of investments will happen less than in a year.

And one more of large projects which was complete in the middle of last year is the project for "Federal Grid Company of the unified power system" (JSC FGC UES) Open joint stock company of the reforming of power industry of the Russian Federation created according to the program. Its main part is the single national power network including the system of the backbone power transmission lines integrating the majority of regions of the country, and representing one of elements of a guarantee of integrity of the state. In the company more than 20 thousand people work. The company has 101 branches across all Russian Federation. Now the company goes to creation of the joint centers too. On the example of the Ural region such regional center was created. Implementation of the unified information system was one of conditions of achievement of a successful project deliverable. Within the project in the Ural region of the company we developed Corporate Business the Template on processes in Personnel management and payroll of the company. This year MOLGA we will participate in replication of these solutions on all branches of JSC "FGC UES".