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Human Elements of SAP Implementation

daemon@ATHENA.MIT.EDU (JKahlerCo@aol.com (by way of SAP M)
Wed Apr 9 08:17:21 1997

To: sapr3-soft@MIT.EDU
Date: 9 Apr 1997 08:15:03 -0400
From: JKahlerCo@aol.com (by way of SAP Moderator <JKahlerCo@aol.com>)

I=92m writing to discuss the design of  human elements within SAP
implementation programs. In my experiences planning and directing SAP
projects, this key enabling factor in achieving desired results is nearly
always treated as an afterthought. Implementing SAP significantly changes=
 the
work people do, the way they are managed, and the roles they play in
organizations.  In reengineering to meet SAP=92s workflow patterns, busin=
esses
also change the work each department performs and the way organizations
themselves work.  The environment must change to implement and sustain ne=
w
systems and processes.

Jobs will fundamentally change; people will have broader roles and have n=
ew
opportunities for initiative and independent decision-making. People will=
 be
continuously required to develop and refine teamwork and customer service
skills. Work will be moved into new organizations, and these changes will
require clear lines of authority, accountability, and responsibility. =20

These impact areas point out the critical HR linkages needed to implement=
 and
sustain the human systems. When the work people do is changed, the knowle=
dge,
skills and abilities required of them will change as well.  The skills ne=
eded
to perform each new task must be compared to those of the current work fo=
rce.
A selection process must be created to identify people who will stay in t=
heir
present positions and those who will transition into new jobs or departme=
nts.
Education programs must be developed to fill skill gaps, or else hiring p=
lans
must be established to target, attract and retain new personnel.  Perform=
ance
management and appraisal mechanisms must be implemented to assess people=92=
s
performance, compensation and readiness for promotion.  Career paths and
competency models must be defined to cohesively link specific jobs.

On several major SAP projects, HR personnel in particular have been
noticeably absent during process design, training development, constructi=
on
and implementation phases.  Their absence has created problems in designi=
ng
and implementing performance management systems, compensation requirement=
s,
career paths, and education programs that sustain the business after the
project is finished.  This invariably demands remedial effort, and usuall=
y
results in a fire drill.

At the root of these human systems are the job and organization designs.
While SAP processes roughly determine the flow of work tasks, jobs define=
 the
way that people interact with the workflow, and organizations define the
coordination of processes and people. These interdependent components sho=
uld
be designed simultaneously through an iterative process that reaches an
optimum result as measured against the original business case.  This is o=
ften
called a "Systems Approach" or "Concurrent Engineering." Implications of =
each
design iteration are considered in a timely manner, and adjustments made
accordingly.  Implementation for each component will then proceed accordi=
ng
to a coordinated plan, thereby maximizing the likelihood of overall succe=
ss.=20

Unfortunately, in several SAP methodologies formal consideration of
organization and job design really begins after completing the scripting
process.  Hierarchy is established at relatively low levels in the
organization and doesn=92t usually receive appropriate executive input un=
til
late in the process. This one-dimensional approach does not sufficiently
address the critical interaction between process, job, and organization
designs.  Major innovations to job or organization design may meet
resistance, since they will require revisions to the completed process
scripts. Key decision points on job and organization designs are therefor=
e
made too late to be effectively addressed at appropriate executive levels.
 These factors usually result in a reversion to the status quo.  Potentia=
l
opportunities are never given appropriate consideration in the design
process.  Instead, the human systems become critical path items, emphasiz=
ing
"fast" rather than "best" answers.=20

Why does this occur?  One possible reason is an underlying faith in
technology as a panacea. If one believes that automation cures all ills, =
then
technical design will surely have priority over the human systems.  This =
is
still the belief of many executives, even though the business press is qu=
ick
to point out the predominance of contradicting data.

Another more basic reason may be that it=92s a lot easier to configure an=
d
implement information systems.  After all, it=92s hard to design jobs and
organizations that produce and sustain effective human behaviors.  From a
technical perspective, bringing an SAP system on line requires an abundan=
ce
of people with technical skills and some business acumen to translate
processes into configuration settings. The big consulting firms, who are
leading many SAP implementations, each have methodologies and many bright
people to meet these demands. This is the "leverage" model, where a few
senior people support a multitude of relatively junior staff. Unfortunate=
ly,
the design of human systems is not nearly so straightforward and requires=
 a
far deeper understanding of business and human interaction.  While there =
are
no simple rule sets, organization and job designs have serious operationa=
l
and political ramifications.  Thus, most executives would be unwilling to
entrust their organization=92s architecture to junior people.  Since this=
 is
inconsistent with the leverage model and often requires skills that aren=92=
t
abundant in any full-line consultancy, the big consulting firms tend to
minimize the importance of human systems in favor of technical solutions.

These points are all just my opinion; I would welcome your feedback. Plea=
se
email me directly at jkahlerco@aol.com

Best regards,=20
John A. Kahler



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