Original Presentation to ASUG FALL FOCUS 2010 Conference on how to maximize Organization Management functionality in SAP

1. Seven Habits for Highly Successful Use of Organization Management Sherryanne H Meyer Manager, SAP Employee Systems Air Products and Chemicals, Inc.

2. 2 Introduction – Who is Air Products? A leader in world markets for seven decades 40 countries 19,000 employees A Fortune 500 company Innovative Responsible Supplier of Gases, Chemicals, Performance Materials, Equipment and Services

4. How we use SAP ECC5.0 One single global instance for HR One single global instance for ERP (FI, MM, SD< PP, EH&S) Portal 5.0 ITS 4.6D/6.20 for ESS Content Server 6.40 APO SCM 4.10 BW 7.00 GTS 2.0 Netweaver 6.40 4

5. Country Deployments UK Ireland Belgium Netherlands Germany France Poland Czech Republic Slovakia Canada United States Spain, Italy, Portugal Israel Egypt Brazil Indonesia, Singapore, Malaysia China, Hong Kong Japan, Korea, Taiwan 5 5

7. MSS

8. Employee Profile

9. ECRs and PCRs

10. Personnel Development

11. MDT – Comp Planning

12. Integration to ERP for

13. Time Entry

14. Travel Management

15. Financial Posting

16. Business Warehouse

17. Custom reports & interfaces

18. Org Management

19. Personnel Admin

20. Compensation

21. Benefits

22. Payroll (US)

23. Appraisals

24. Career & Succession Planning

25. Training and Events

26. Learning Solution

27. Structural Security

29. Achieving Success with OM in SAP HR “Habits are powerful factors in our lives. Because they are consistent, often unconscious patterns, they constantly, daily express our character and produce our effectiveness…or ineffectiveness.” - Stephen R. Covey, The 7 Habits of Highly Effective People Habits are the intersection of Knowledge (the what), Skills (the how) and Desire (the motivation) Success results from effectively directing Knowledge, Skills and Desire to follow a new “map” Engage others to move along a continuum from independence to interdependence 8

30. Illusions 9

31. Habit #1: Be Proactive Choose how to respond to stimulus (change) Prepare your organization for change Find solutions to problems raised Put someone in charge who can LEAD the charge to change Assess situations and develop positive responses Solve problems by changing habits Influence the outcome by listening to the input Change the paradigms We see things not as they are but as we are conditioned to see them (Old Woman) To make large changes such as this – be willing to work on your company’s basic paradigms 10

32. Diverse Ideas 11 China Labor Laws USA Tax Regs Poland Work Contracts Brazil Dissidio

33. Habit #2: Begin with the End in Mind Become principle centered Work towards discarding old practices by creating a vision of the new order Use Imagination and Creativity What are our values Where do we want to go in the future What are the company’s long term goals Set your priorities and establish principles to support these Decisions Guidelines Roles and Responsibilities 12

34. As a rule, we find what we look for; we achieve what we get ready for. ~ James Cash Penney 13

35. Habit #3 – Put first things first Develop the management – the discipline – to carry things out Identify key roles to support your new OM model Who will own the process? Who will decide the structure, the data fields? Who will use the data and how will it be used? Who will manage the actual data and do data entry? Delegate, Trust, Empower * * * * Trust is the highest form of human motivation * * * * Focus Prevention Organize, plan processes 14

36. Habit #4 – Think Win Win Have an Action Plan that will achieve mutual benefit All parties feel good about decisions All parties are committed to the plan Reward and recognize win/win behavior – these will be your OM leaders Avoid the squeaky wheel Avoidinadvertently rewarding negativity A merging of values Requires Courage and Consideration 15

37. Elements of Win Win Desired Results (not methods) identify what is to be done Example ~ Compensation Planning should be done only by managers of a certain level Guidelines specify the how results will be accomplished Example ~ Comp Planning Managers must be > Grade 115 Resources identify the human, technical, financial or organizational support available to help accomplish the result Example ~ A centralized team will accomplish org structure Accountability sets standards of performance Example ~ KPI = 4 day turnaround for position change Consequences – natural and logical – are happens when the above fail. Example ~ If 4 day turnaround timeframe is exceeded, Employee Help Center will receive increased number of calls. 16

38. Habit #5 – Seek first to understand, then be understood Know how org management works – what it supports – what your team decisions are Then engage the rest of the company in understanding it Ethos – ethics / credibility Pathos - empathy Logos – the logical side of your presentation Don’t totally discount challenges – learn from them – but don’t allow them to derail you from your earlier decisions (think win-win) 17

39. Synergy 18

40. Habit #6 - Synergize Synergy = the whole is greater than the sum of it’s parts Leverage the individual differences across culture and country to create a whole that is greater than it’s parts Mutual trust and understanding solves conflicts - Find a better solution than what can be found alone New insights New perspectives Value the differences Concede that we can both be right 19

41. Habit #7 – Renewal and Continual Improvement Find the balance between producing and improving Understand Production Capability - Staff appropriately Start with expert and productive help Over time you may be able to move to less Build “customer” loyalty -- Your other processes are going to rely on this person – to gain buy-in from managers and employees Ensure continued process ownership Regularly assess the health of your processes Make decisions about changes holistically 20

42. 21 Return on Investment Is OM work initially? YES – but the benefits pay off The benefits – Data integrity  cost avoidance Data Privacy and SOX Compliance Compensation Planning has avoided disparate and “paper” or Excel-based systems Appraisal processes have ensured 95% compliance globally Structural Security, Org Management Relationships ensure managers see details about employees only for the timeframe the employees are in their organization Position Management controls access to sensitive data A comprehensive view of an employee’s “life” cycle

43. 22 Best Practices Reliance on Org Management as the cornerstone of your SAP deployment Establish roles and responsibilities for OM Process Owners Guidelines An OM data management team Design your OM model with an eye towards meeting your company’s future objectives Maintain your OM model with continued monitoring, assessment, and holistic decision making

44. 23 Key Learnings THINK DIFFERENTLY – Be willing to change your paradigms and those of others LEAD your organization thru development of a future Vision DEVELOP GUIDELINES to be followed globally EMPOWER a data management team to be the experts in implementing these guidelines MANAGE THE CHANGE with all levels of the company BUILD TRUST across boundaries, organizations, processes NURTURE GROWTH – Continually assess your processes and be willing to adjust