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Leadership map by Mr Sudhakar Rao at HRRT organised by ISPE & UPES Dehradun
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Leadership map by Mr Sudhakar Rao at HRRT organised by ISPE & UPES Dehradun

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  • 1. Leadership Map forHigh performingCompanies Sudhakar Rao Director, SAP India
  • 2. SAP ERP HCM – Thoroughly Proven SAP – World Market Leader in Enterprise Software 31 years business experience 25 industry solutions Worldwide ecosystem SAP HCM #1 Market Leader 20 year commitment to HCM Over 20,000 HR customers worldwide Over 500+ India HR custoemrs Over 54 Million Employees supported with SAP HR Over 11 million ESS users© SAP 2007
  • 3. Today - Organization challenges Global economy (Monkey on the back – CHINA) Economic Downturn, Cash Flow Increasing focus on innovation and growth Quality combined with mass production Faster ROI demands (high quality assets) Drive performance and improve efficiency Higher costs of attraction and retention A unique set of business challenges requires a new way of managing the workforce and its talent
  • 4. Human Capital Challenges for the future Based on SHRM 2007 study of global HR executives, priorities are listed below:1. Succession Planning2. Recruiting and Selecting Talented Employees (HIPO/HIPE – Top 2-3%)3. Engaging and Retaining Talented Employees4. Providing Leaders with Skills to be Successful5. Rising benefits Costs6. Creating/Maintaining a Performance-based Culture *Source: McKinsey “Making Talent a Strategic Priority”, Jan’2008
  • 5. Are You Ready to Move-the-Needle? What-if analysis aligned with growth strategy (Simulation of current and future strategy) Company Low High 12.2% Employee1 Cost % ABX 19.1% 0.8% XYZ of Revenue 0.50 Opr. Income per XYZ 0.09 1.52 ABC Employee (Rs. Cr) 153.79 Production per ABX 100.93 4,191.88 XYZ Employee (tons) 13.5% Prod. per Emp. BAD -7.3% 16.3% ABC Growth Y-o-Y, FY – 08• This conversation leads to focus on core competency improvement areas.• People Strategy
  • 6. Significant Opportunity for Further Value Addition Exists Function Potential for Value Creation Through IT/Best Practices Enablement Drive HR Strategy and Leadership Effectiveness -M&A Execution -Talent Management -Consolidated IT Platform -Global Shared Services/ Workflows Strategic/ Decision Support “Innovate” Compensation/ Benefits Planning Performance Management Expertise Workforce Planning Based Activities “Grow Business” Recruitment and Staffing Training and Development Compensation/ Benefits Administration Personnel Data Management DriveEfficiency Transactional Payroll Administration Activities “Maintain Status-Quo” Time and Attendance Recording Self-services and Work-flows High Potential of Value Creation through IT Sufficient Potential of Value Creation through IT High IT Maturity – Value Creation Potential in Selected Areas
  • 7. How SAP is supporting? Automate Manpower Planning Improve Create Skills Training/ Inventory Development Consistent AutomatePerformance TransactionsManagement Better Integrated Reporting/ HR IT Analytics Landscape Note 1 - Source: Based on SAP interviews with Tata Steel HR function owners and key process leads
  • 8. Example: Create Skills Inventory Map skills inventory for each position and employee Assign training programs and development plan using Talent Review. Monitor progressVisibility of key talentdemand and supplyneeds Define and assign job-rotations within / Global internal talent outside domains pool using training module. Identify mentors in system Insight into global workforce = ability to tap into employee potential = leadership continuity and alignment with key business objectives
  • 9. Example: End-to-End Talent Management Connect Employee Performance Management, Succession Planning and Employee Management to maximize workforce potential. Head of HR Line of Business Manager Line of Business Manager CLO, LoB Mgr & Employees Employee Performance Succession Planning Employee Development Management Conduct Participate in LOB Enter Self- Appraisal Maintain classroom & Book Training Assessment Feedback Talent Profiles e-learning Employees Discussion training Review Appraise Conduct LOB Identify Conduct Approve Monitor Objectives Performance Appraisal Recommend Potential Talent Review Booking learning and & Assess EE’s Feedback TrainingsLine Manager Successors Meeting Activities progress Achievements Potential Discussion Define Training HR Start Central Create Talent Identify Calibrate Identify Key Opportunities Appraisal Review Potential for TopHR Specialist/HR Appraisals Position Process Meeting Successors PerformersBusiness Partner Create, Manage HR or Training Integrate & Publish External Training Catalog Training and Development Training Administrator Planning
  • 10. Implications of Higher Investment in Strategic HR Cross Industry Analysis HR Cost as % Sales - 29% Operating Income/ Employee + 74% 16% 10% Strategy/ Leadership Talent Management/ Expertise Based 48% 60% Support Transactional 36% Business Support 30% Average Company Top PerformerSource: ASUG/ SAP benchmarking
  • 11. How Do Companies with Leading HR Practices Differentiate Themselves?Leading companies assess training effectiveness in line with overall corporate goals and link compensation planning to performance management Best Practice: Automated training effectiveness assessment by correlating corporate KPIs to training results 44 Evaluation of training Training Hours per 83%+ needs during Employee 24 performance appraisal helps increase training effectiveness by 4 times Peer Group World Class Best Practice: Automated compensation plan impact analysis and reporting Automated 34% compensation Employee Cost adjustments based on (% of Op. Ex) 56%- 15% performance ratings lead to 35% lower employee cost overhead and 85% Legend: lower churn rate Peer Group World Class Avg. Company World-class/ Leading Company Note 1 - Source: Based on statistical analysis of best practice adoption levels and KPI performance for over than 250 participants in the SAP ASUG (America SAP User Group) Human Capital Management benchmarking initiative. Participants range across diverse industry verticals with varying employee numbers
  • 12. How Do Companies with Leading HR Practices Differentiate Themselves? Best Practice: Web-based tool to record time & Higher employee engagement levels leads to more attendance with automated reporting productivity (revenue earned per employee) Revenue per Employee Avg. Admin. Costs for T&E Recording per 0.61 Employee (US$) 61 53%- (US$ million) 29 91%- 0.32 Peer Group World Class Low High Engagement Engagement Best Practice: Balance Score-card based employee goal alignment with org. strategy Organizations that Turn-over Rate (%) 14% 36%- 9% support personalized and effective learning experience a 65% reduction in turnover rate Peer Group World Class Legend: Avg. CompanyWorld-class/ Leading CompanyNote 1 - Source: Based on statistical analysis of best practice adoption levels and KPI performance for over than 250 participants in the SAP ASUG (America SAP User Group) Human Capital Management benchmarking initiative. Participants range across diverse industry verticals with varying employee numbers
  • 13. Shared Services Drives Value Net Cost Savings % Effectiveness Improvement %STAGES OF MATURITY 32% 23% 15% 14% 8% 5% 1% 0.5% No Shared Service Emerging Established LeadersTYPICAL PROFILE Fragmented Centralized Automated Transactions Highly Automated Varying Processes Mostly Standard Processes Consistent Service Levels Highly Integrated Varying Service Levels Efficiency Metrics System Consolidation Comprehensive Metrics Governance Source: ASUG/SAP 2006 Shared Services Study
  • 14. SAP is Investing in Driving Next-Generation HCM Capabilities Focus Area Business Value Workforce Closed loop execution on1 Planning and Analytics Modeling and simulation of workforce needs Business Reason people strategy Talent Ensuring future leaders are2 Management The right people in the right roles when needed identified, developed, and ready Service3 Delivery Efficient delivery of HR services Increased quality of HR Services at lower TCO Scheduling and4 Deployment Optimizing workforce utilization Workforce efficiency and productivity Collaboration & Enabling structured and5 Learning unstructured knowledge sharing A more connected and educated workforce
  • 15. Thank you!© SAP Summit 08 / Page 15