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SAP Customer Success Story

Workforce performance management with


mySAP ERP gives us confidence, and it gives
employees and managers confidence in SAP. We
can all use one process, use one tool, and ensure
high-quality standardized processes worldwide.
Stefan Ries, Global Head of Global HR Business Partners, SAP

AT A GLANCE
Company Name
SAP
www.sap.com
Industry
High tech
Key Challenges
Standardize employee reviews
and development methods
Integrate team and individual
goals with corporate goals and
strategies

Solution and Services


mySAP ERP
Implementation Highlights
Involved 6,800 users in pilot
project
Will include 30,000 users in final
rollout (2005)

Key Benefits
Consistent employee reviews
Integration with other human
capital management (HCM) tools
and processes
Ability to align employee/manager
goals with enterprise vision

Hardware
HP/UNIX workstations
Operating System
Microsoft Windows NT

SAP GLOBAL HR
mySAP ERP WORKFORCE PERFORMANCE
MANAGEMENT CAPABILITY HELPS SAP BRING
CONSISTENCY, TRANSPARENCY TO EMPLOYEE
DEVELOPMENT PROCESS

As part of Global HR, SAP University came into being in 2003 to


centralize and leverage all employee development processes and
activities for SAP the worlds largest interenterprise software
company, and the worlds third-largest independent software
supplier overall.
Until last year, different business units and offices within SAP
were using a variety of different methods ranging from paper
and pen to feedback tools designed in-house to handle the
annual performance reviews of the companys 30,000 employees.
Then, SAP University brought in the mySAP ERP solutions
capability for workforce performance management. Now,
SAP University is completing a pilot project that covers
about 6,800 users worldwide; within six months, the official
company-wide rollout will take place.
NEED FOR A CONSISTENT PROCESS

SAP isnt that different from other companies, in the sense that
we value our employees and their intellectual and emotional
well-being very highly, says Vivien Schmitt, project lead for
SAP University. But, we are a large company, and we knew that
the best thing for all our employees, and for our enterprise as a
whole, was to make the employee performance management
process consistent across the company.

www.sap.com /contactsap

The main reason for this was to bring consistency to the processes
used for evaluating employees. According to Schmitt, different
managers were using different measurements and different
processes for evaluating employees. Also, employees were not getting full access to the best training and development opportunities.
And, because different managers were using different processes
and measurements, it may have been more difficult for employees
to move from division to division, since the managers might not
understand each others review standards.
ALIGNING GOALS

SAP introduced the mySAP ERP workforce performance


management capability at SAP Labs in India, SAP America,
and SAP IT.
The basic process is simple. At the time of the employees annual
review, the workflow process e-mails an application link to the
employees manager, asking the manager to provide the team
or department objectives. Then, the workflow sends an e-mail
to the employee, asking him or her to come up with a proposal
for individual performance objectives that will be compatible
with the larger goals. The employee can then send the suggestions
for his or her individual objectives to the manager. The manager
subsequently brings in his or her own ideas, and sets up an
appointment to meet with the employee.
Its important to note that this tool doesnt replace that conversation, says Schmitt. But it does help to guide and focus it.
ADVANCED FUNCTIONS FOR PEOPLE DEVELOPMENT

The mySAP ERP solution has other functions that can be invoked
in the review processes to facilitate communication and enhance
long-range planning. One example is whats called additional
appraiser feedback. This permits a manager to request reviews

50 069 880 (04/08)

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from project managers and peers, as well as from other supervisors.


Its especially valuable in matrix organizations or where project
teams may be formed periodically because it lets the manager
see how the employee is viewed by others. Another example is
the succession management tool that lets managers identify those
people who would be likely candidates for taking their positions.
Consequently, appropriate development plans for these candidates
can be defined in the performance management process.
Functions like these help build relationships throughout
the enterprise, says Schmitt. And other functions, such as
customization and integration with other human capital
management and ERP modules, give us plenty of flexibility
for handling enterprise growth as well as any extraordinary
demands we may experience in the future.
SAVING TIME, GAINING VISIBILITY

Workforce performance management with mySAP ERP also saves


employees and managers time, because it helps to structure performance review discussions around the most important topics.
It expedites the entire process, and ensures that everyones time
is used efficiently, says Schmitt.
But, most important, according to Stefan Ries, global head of
Global HR Business Partners at SAP, it brings transparency and
consistency to the performance management process benefits
that are invaluable in a company with 30,000 employees.
On the one hand, it expedites the entire process, and ensures
that everyones time is used efficiently, he says. On the other
hand, workforce performance management with mySAP ERP
gives us confidence, and it gives employees and managers confidence in SAP. We can all use one process, use one tool, and
ensure high-quality standardized processes worldwide.