SAP Solution Brief
Successfully Drive and Execute Enterprise Strategy
Companies worldwide Acquisitions, mergers, partnerships, and corporate realignments
recognize the value of retaining are the rule in the marketplace today. At the same time, innova-
tion and creativity are essential for success – and that requires
and developing high-perform-
skilled and dedicated employees. But the dynamic nature of to-
ing people for their ability to day’s business world is taking its toll on these employees. Now,
innovate and grow in the future. it’s more important than ever to involve employees in company-
That’s why comprehensive wide changes, inspire them to execute strategies and goals, and
talent management processes make their contributions to the enterprise identifiable and
measurable. State-of-the-art, goal-oriented management tools
are the hot topic of strategic
and measures that target an individual’s area of responsibility are
human capital management required for your enterprise to succeed in today’s economy. In
today. The mySAP™ ERP conjunction with appropriate financial incentives, performance
solution helps organizations to feedback motivates employees to achieve and excel.
progress towards a complete
Flexible Support Throughout the Performance
talent management solution,
with the end-to-end perform- The performance management capabilities of the mySAP™ ERP
ance feedback cycle that inte- solution delivered in the mySAP ERP Human Capital Manage-
grates company planning with ment (mySAP ERP HCM) solution bring performance feedback
processes to life. The solution supports end-to-end processes
that provide transparency and help to communicate the
appraisals and performance enterprise strategy, align initiatives and goals throughout the
feedback, and compensation enterprise, analyze performance, and reward the workforce
administration as an integral accordingly. The solution is extremely adaptable, allowing you
part of it. to custom design both the content of your performance
feedback documents and processes. These essential features give
you and your employees a road map to success, and just as
importantly, set the enterprise on a successful course into the
The solution provides strong linkage with other talent manage-
Enterprise Vision and Strategy ment functions, allowing you to derive objectives from an
Enterprise Compensation Learning &
employee’s position or job requirements, and include training
Management Development courses and developmental activities in the performance plan-
• Promotions Individual ning agreement. Now, you have a direct link between personnel
• Salary adjustments Individual
plans objectives and development needs.
• Bonus payment development
• LTIs plans
Plan Review Ongoing Feedback and Coaching
Employee reviews enable you to monitor objectives continuously
Coaching during the year. You can set dates for reviews in the system and
Enabling Identification of use the workflow capabilities of the SAP NetWeaver™ platform to
needs and support this process with timely reminders for all participants.
Review meetings help you to keep track of the relevance of ob-
Succession jectives; if necessary, obsolete objectives can be removed from the
performance planning agreement. Continuous monitoring al-
• Top performer lows you to ensure that employee goals are continuously in sync
• High potentials
with enterprise strategy. Detailed logging functionality enables
you to record the history of objectives during a performance
Figure 1: The Performance Management Process feedback cycle. Attachments allow you to add additional infor-
mation on the employee’s achievements.
Integration with the balanced scorecard capabilities of mySAP Reviews
ERP greatly facilitates the performance planning process by pro- Additional appraisers such as dual reporting managers, peers,
viding employees with insight into the organization’s strategy. project leaders, or the employees themselves can be integrated
And you can easily transfer organizational or departmental goals into the appraisal process. Before the final appraisal is completed
relevant to employees directly from the scorecard into an indi- by the direct manager, these additional appraisers can each
vidual’s performance planning agreement. add their evaluations independently, including employee self-
appraisals, thus providing a full picture of the employee.
Individual objectives agreed upon between employees and man-
agers, along with appropriate dates and time lines for meeting Encouraging Real Personnel Development
the objectives, are easily entered into the software. You can use The performance management capabilities of mySAP ERP HCM
free-form objectives and notes, predefined objectives, competen- allow measurable comparisons, support performance-based
cies, or key behaviors, and allow managers to modify them as compensation, and promote personnel development that is in
required. line with corporate objectives. Both the goals and personal con-
tributions to attaining them are highly visible, which inspires
trust in both managers and their employees. This in turn
improves the performance and morale of your team. Detailed
evaluations, status overviews, and ranking lists make the infor-
mation easy to view and understand.
Flexible Performance Feedback Processes for Your adjustment proposals. They can easily tie performance ratings
Needs and performance-based pay, reducing manual data mainte-
The adaptability of the software makes it easy for you to tailor nance efforts.
the performance feedback system to meet the needs of your en- • The SAP Business Intelligence component of SAP NetWeaver
terprise. The performance management capabilities of mySAP enables you to provide comparative overviews of appraisal re-
ERP HCM can streamline your processes to support your busi- sults as reports and graphics and facilitate calibration processes
ness – from a simple appraisal to a comprehensive performance to ensure fairness in employee appraisals and compensation
planning and performance feedback process that includes multi- packages. The enhanced analytics capabilities provide decision
rater feedback, timely notifications, and workflow. Permission- support for succession management and individual promo-
based access to information ensures that employees can access tions. You can monitor the performance feedback process and
only their own data, and managers can access appraisals of all analyze performance levels throughout the organization.
What’s in It for You?
Because employee performance management capabilities are SAP is committed to providing you with a comprehensive
tightly integrated into mySAP ERP HCM, personnel develop- employee performance management solution as part of the
ment departments can align performance feedback processes overall talent management capabilities of mySAP ERP HCM.
with corporate strategy and business goals. The following are With this employee performance management functionality,
a few examples of how you can integrate these capabilities into your organization will realize the following benefits:
your existing mySAP ERP HCM solution and SAP® Strategic • Improved communication of enterprise strategy
Enterprise Management (SAP SEM) application: • Stronger strategy focus at the management level
• Integration with the competency management framework • Enhanced workforce alignment with enterprise strategy
of mySAP ERP HCM improves data quality and efficiency by • Simplified performance reviews and identification of top
automatically transferring obtained qualifications to an performers
employee’s qualifications profile after completing an appraisal. • Comprehensive comparison options as a basis for fair
• Integration with SAP SEM improves the communication of performance-based compensation
the organization’s strategy and initiatives, and performance
ratings can be directly tied to strategy execution. Find Out More
• By integrating with SAP Learning Solution and the personnel To find out how employee performance management can make
development capabilities of mySAP ERP HCM, you can moni- the difference at your enterprise, please visit
tor employees’ individual training and development progress www.sap.com/hcm.
throughout the year.
• Integration with the organizational management capabilities Powered by SAP NetWeaver
of mySAP ERP HCM allows you to route performance mySAP ERP is powered by the SAP NetWeaver platform, the
feedback documents through the organizational hierarchy, open integration and application platform that enables change.
thus eliminating manual paper approval processes. SAP NetWeaver helps companies align IT with their business.
• Integration with the enterprise compensation management It allows companies to obtain more business value from existing
capabilities of mySAP ERP HCM allows managers and IT investments and to deploy a services-oriented architecture.
compensation administrators to generate compensation SAP NetWeaver reduces total cost of ownership and complexity
across the entire IT landscape.