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    Confidential | Copyright © Larsen & Toubro Infotech Ltd.

    August 27, 2011

    SAP HCM - Performance &

    Competency Management

    Solution

    Efficient & Cost Saving Tool

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     Agenda

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    Performance & Competency Management

    2

    Introduction

    1 4

    SAP

    Performance

    Management

    Overview

    2

    3SAP

    Competency

    Management

    Overview

    Talent

    Management

    SuccessStories

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    Introduction

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    1

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    Organizational Management

    Personnel Administration

    Payroll

    Claims , Loans

    Time Management

    Reporting Global Employee Management

    Understanding across HCM Value Chain

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    Expert Finder

    Manager Self-Service

    Employee Self-Service

    Employee Interaction Center

    Collaboration Tools

    Workforce Cost &Headcount Planning

    & Simulation Employee

    Succession Planning

    Balanced Scorecard

    Workforce

    Planning

    Workforce

    Analytics

    Relationship

    Management

    Talent

    Management

    Pre-defined Key PerformanceIndicators

    Business Warehouse

    Management dashboards

    Recruiting and Talent Management

    Performance Management Compensation Management

    Learning

    Training & EventsManagement

    Skills/Qualification Management

    Shift Planning

    Lifecycle

    Management

    HCM

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    Plan

    Evaluation

    DevelopsAdvance

    Load

    Analyze

    TalentProfiles andObjectives

    TalentPlanning

    Recruiting

    PerformanceManagement

    Learning &Development

    Career Planning

    Compensation

    SuccessionPlanning

    Measureand

    Report

    Learning

    Recruitment

    Compensation

    Performance

    Workforce Planning

    Career Planning

    Succession Planning

    Competencies

    Reporting & Metrics

    HR 

    Traditional Approach:

    Point solutions, redundant silos

    Process flow limitations

    Not aligned with business goals

    Lack of comprehensive talent view

    Integrated Approach:

    Fully integrated solutions

    — Grow up as you like

    Performance – strategy alignment

    Flexibility and control throughout Comprehensive view of talent and goals

    Talent Management:

    What is included and what’s the ultimate goal?

    Functional Silos

    Integrated Processes

    Talent Management Process

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    SAP Performance

    ManagementOverview

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    2

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    Employee Performance Management

    Development

    Planning

    Alignment of Team

    and Individual Goal

    to Organization

    Goals

    Reward/Pay for

    Performance

    Reviews and

    Appraisals

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    Performance management System –Increased

    User satisfaction

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    Integration with BI Dashboard & Statistical Analysis

    Automation of entire process of Objectivesetting & evaluation

    Saves time for Talent Team Track & Manage workflow from HR Desk(no

    need for persistent follow ups)

    Web Based & Easy to Use (increasedparticipation of employees & managers)

    Saves Time (Appraisal status reports formonitoring)

    • Improve Quality and Completion rates

    Identifying Potential – System does it for HRusers !

    Succession Planning – Managers can visualize

    the changes before decision making

       H

       R

       M  a  n  a  g  e  r

       T  a   l  e  n   t

       M  a  n  a  g

      e  r

       M  a  n  a  g  e  r

       E  m  p   l  o  y  e  e  s

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    Energizing the workforce by continuous

    Performance Feedback

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    Supporting Business Globalization and Agility

    with SAP Performance management

    Providing an integrated business platform for managing talent across the entire business foundation– in various organization for their global operations

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    Visibility into hidden talent

    Planning performance for

    accountability, role clarity and

    effectiveness

    Single methodical platform to

    plan, measure and optimize

    Processes

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    Key Features

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    Manager’s - Appraisal singleview panel

    Offline Interactive Form

    Different Delivery Mediums for Appraisal Forms

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    Performance Appraisal form delivered

    through SAP Employee Self Services

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    Example - Matrix Model & Monitoring tools for the

    HR manager

    New reporting options:

    Find objects with no appraisal

    Find objects with no appraisal, and all existing

    appraisals

    Find appraisals whose status is Approved and

    Rejected

    Reporting Options for Appraisals

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       9   b  o  x  m  o   d  e

       l

    Management

    By Objective

    Example – Performance Measurement Models

    implemented 

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    BELL CURVE Rating Analysis & Normalization

    Enhanced standard SAP HCM solution with Bellcurve analysis

    Innovation

    Improves decision making with graphicalwhat-if analysis

    Minimize the change impact for users Reduce processing time with real time data

    access

    Business Benefits

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    Business Benefits

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    Business Benefits

    Improve retention of key talent

    Consistently achieve corporate goals

    Process Transparency for all stake holders

    Increase workforce productivity

    Improve execution of enterprise strategy

    Support employee development

    Increase employee satisfaction and engagement

    Performance-based pay

    Develop deeper talent bench strength

    Implement quickly

       B   U   S   I   N   E   S   S

       B   E   N   E   F   I   T   S

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    SAP

    Competency

    Management

    Overview

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    3

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    “Competency is a knowledge, skill or personal quality necessary to complete one or more

    activities related to organization objectives”

    Competency Model

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    OrganizationStrategy

    OrganizationCompetencies

    Individual SalesCompetency

    Model

    Defines

    IndividualService

    CompetencyModel

    Skills

    Ability

    Knowledge

    Interest /Values

    Motivation

    Personality Traits

    Competency Pyramid

    Skills Acquired

    InherentTalents /

    Underlying

    Characteristics

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    Competency Model for Employee Life Cycle

    Management

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    Competency

    Management

    Recruitment and

    Selection

    Defines where we search

    for recruits and behaviors

    we screen for

    Compensation and Reward

    Defines the incremental skill

    proficiency that we will pay

    for

    Succession Planning

    Assess high potentials

    based on current

    competency proficiency

    versus proficiency required

    of the next position

    Performance Management

    Defines behaviors employees

    are expected to demonstrate

    Career Pathing

    Defines expected behaviors for

    each role so development plans

    can be established

    Training and Development

    Identifies performance gaps and

    means to address

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    Competency Management Efficiently Manage Job

     Architecture and Qualifications

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    Inheritance of

    competencies from

    parent to all child

    objects

    Identification and

    maintenance of key

    jobs and key positions

    Career path and career

    level of positions or

    jobs

    Org restructuring can

    be effectively managed

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    Succession Management in SAP HCM

     Avoid Business Disruption

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    Tracking of key

    positions at all levels

    Safeguarding successor

    bench strength

    Identification of

    potential successors

    and evaluate theirreadiness and rank

    Initiation of

    development Measures

    Effective decision

    making by LeveragingTalent Visualization

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    Key Features

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    Profile Match up

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    Business Benefits

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    SAP Performance management – Efficient &

    Cost Saving Tool

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    Customer Benefits Achieved

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    Effectiveness of SAP Performance & competency

    management

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    TalentManagement

    Success Stories

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    4

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    SAP HCM Implementation & Support at

    Freescale – SAP Recognized Case Study 

    Revenue: $ 5.4 billion

    Employee Size: 24,000

    HQ: Austin, Texas

    Global Presence: 30 countries

     A High Tech Manufacturing Major in Semiconductor Electronics

    operating in more than 30 countries with 24000+ employees

    Client details

    HR Business Processes

    ― HR master data

    ― Compensation planning (ECM)

    ― Performance management

    ― Learning management

    ― ESS/ MSS

    Comprehensive level of Integration with more than

    360 custom interfaces

    1M records spanning 63 SAP HR Infotypes

    Analytics with >1000 custom reports

    Key Project Highlights

    Low total cost of ownership

    ― 50% reduction in HR IT support costs

    ― 87% reduction in number of interfaces

    ― 74% reduction in HR IT application

    systems

    ― 90% reduction in the number of reports

    (from 1,000+ to 92)

    Single Global HR Platform (SAP replaced 38

    HR IT systems)

    Significant reduction (almost 70%) in

    maintenance cost of HR IT systems post

    HCM implementation

    Goals Accomplished

    Recognition by SAP – Published Case

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    Revenue: $ 11.7 billion

    Employee Size: 55,000 (30,000+ online participants)

    Global Presence: 288+ locations (EMEA, NA, APAC)

    Companies/Business Units: 60+

    Value Delivered

    India's largest engineering and construction conglomerate with additional interests in

    IT, financial services, cement and electrical business.

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    Client details

    Project Details

    SAP HCM Implementation & Support at L&T 

    Enables observation of employee performance over a period.Employee can update Appraisal periodically

    System across L&T for linking performance appraisals withthrust areas.

    On-line reports: e.g. Separation analysis; Saving in time & effort, and availability of real-time

    information, for L&T as a whole

    SAP HCM, Portal, BI & XI Implementation project named CRISP:

    Modules implemented under HCM: Organization Management

    Personnel Administration

    Training, Qualification Catalog, Appraisals

    Compensation Management

    Talent Management

    ESS & MSS

    E-Recruitment (www.careers.larsentoubro.com)

    Time Management

    Issues with legacy HR Information System like: No Integrated system

    Static data – Not Updated

    Mismatch Between Systems

    Incorrect data

    SAP-HR to provide automated, efficient and transparent HR

    processes and accurate information for

    Taking strategic business decisions

    Responding effectively to emerging HR challenges

    Enabling informed decisions by managers

    Empowering employees Enabling HR to focus on value added roles

    Business

    Objectives

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    Question & Answer 

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    Thank You

    Our Business Knowledge,

    Your Winning Edge.