Tesina

OMM

Operations & Maintenance Manager X edizione – Biennio 2011-2013

EXPATS MANAGEMENT IN SAP HR GLOBAL 2

WORK MIGRATION FROM EXCEL TO SAP

Tesi di fine corso di: RAITANO PAOLO

Tutor aziendale: HUERTAS ISTILLARTE ROBERTO

Tutor formativo: BUFANO FRANCESCO

OMM – Operations & Maintenance Manager Student:

X edizione – Biennio 2011-2013 RAITANO Paolo

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SUMMARY

I. Enel Group

I.I Business Overview

I.II Enel Green Power

I.III Organization Chart

II. SAP History in EGP

II.I Architecture Scenario

II.II Enel One Company

II.III HR Global 2.0

II.IV Advantages and difficulties

III. Expats management process

III.I Dictionary

III.II The Process

III.III Expats/Impats on SAP GL2

IV. What we did

IV.I Query creation

IV.II Check tool

IV.III Monthly report

IV.IV Obtained Improvements

V. Focal subjects for the future and considerations

V.I Review of the process

V.II Communication

V.III Exploitation of SAP potential

VI.IV Other projects

VI.V Thanks to



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I. Enel group

Enel is a multinational group based in Italy, a leading integrated player in the

power and gas markets of Europe and Americas, operating in 40 countries across

4 continents overseeing power generation from 98 GW of net installed capacity

and distributing electricity and gas through a network spanning around 1.9 million

km to serve 61 million customers.

Business Overview

In 2012, Enel posted revenues around 85 billion euros, EBITDA of

approximately 17 billion euros and net ordinary income of around 3.5 billion

euros. As of December 31st, 2012, the Group has nearly 74,000 employees and

operates a wide range of hydroelectric, thermoelectric, nuclear, geothermal, wind,

solar and other renewable power plants. Over 42% of the power generated by Enel

last year was carbon free.

Enel is strongly committed to renewable energy sources and to the research and

development of new environmentally friendly technologies. Enel Green Power

[EGP] is the Group’s publicly listed Company dedicated to the growth and

management of power generation from renewable energy, operating 8 GW of

installed capacity relying on hydro, wind, geothermal, solar, biomass and co-

generation sources in Europe and the Americas.

http://www.enelgreenpower.com/en-GB/

http://www.enelgreenpower.com/en-GB/



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Enel Green Power

Enel Green Power, established in December 2008, is the Enel Group company

that develops and manages energy generation from renewable sources at a global

level, with a presence in Europe and the Americas.

Enel Green Power is a major global operator in the field of energy generation

from renewable sources, with an annual production of 25 TW/h, mainly from

water, the Sun, wind and the Earth’s heat, meeting the energy consumption of

over 8 million families and avoiding 16 million tonnes of CO2 emissions per

year.

Enel Green Power has an installed capacity of 8,640 MW, produced by over 730

plants in 16 countries and with a generation mix that includes wind, solar, hydro,

geothermal and biomass.

Organization Chart

The Enel Green Power Human Resources and Organization function is

organized as follows :



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I worked in HR Integration & Development and my boss was Huertas

Istillarte Roberto who reports to Querol Vidal Francisco Javier, head of EGP

HR.

The people which whom I collaborated are the following :

1. Andrea Baluci (REN PO)

2. Chiara Palmisani (REN HR)

3. Claudio Bove (REN HR)

4. Daniela Bruno (REN HR)

5. Diana Alfonso Yannette (REN HR)

6. Francesco Cantuti Castelvetri (REN PO)

7. Giuseppe Capitani (REN PO)

8. Giuseppina Paoluzi (REN PO)

9. Licia Manzone (REN HR)

10. Marisa Strangis (REN PO)

11. Maurizio D’Amico (REN PO)

12. Silvia Cinelli (REN PO)

13. Silvia Valsecchi (REN HR)

14. Stefano Manganello (GICT BRM)

15. Tiziana Fattori (REN PO)

… and many people of each country with whom I interacted.



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II. SAP History in EGP

My project is based on SAP HR GLOBAL 2, that is simply the last evolution

of SAP applications in the Enel Group.

Architecture Scenario

Initially ENEL Group had two SAP Applications, HR ENEL and HR

Global 1.0 (International), that composed the HR Portal Italy. After the

acquisition of the Spanish company Endesa by the Enel Group, the SAP

applications became three. Obviously, every system had a different architecture,

and they didn’t interact each other.

Fig. 1 Initial Architecture Scenario



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ENEL One Company

Then arrived the project “ENEL One Company” that has the following

objectives to achieve :

A unique system of values

A unique company language

Same processes

Same system

Within this project SAP HR Global has been redesigned for :

New operational and more streamlined HR processes

HR processes evolution

HR Know-how and knowledge for the development of the human capital

HR system for a unique and shared information tool

Cultural change

Organizational needs and strategy fulfilling

“Cultural change” is the point on which I would like to focus.

Unfortunately, even if SAP icon is on the desktop of each employee of HR

function, most people prefer to click on the MS Office Excel icon.

Why this? We’ll deal with the subject in the carrying of the treatment,

section Advantages and Difficulties.



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HR GLOBAL 2.0

The SAP HR redesigned, in the version Global 2.0 is now the combination of

the three different SAP Applications. It has a total vision of the “EGP World”, and

can be used for :

Personal Administration

Organization Management

Competency Management

Performance Management

Learning

Health & Safety

The application shows a structured interface with local systems of each

country, so that every employee doesn’t have to change his habits on the systems.

Fig. 2 Actual Architecture Scenario



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Global 2.0 Object Model

GLOBAL 2.0 System

LOCAL Systems

Organizational

Level

24

Line

10

Head

20

Company

Code

IC

Cost

Center

K

Organizational

Unit

O UAMP

23 Work Area

WA

Work

Center

A

Position

S

Job

C

Level

22

Country

ZB

Group Area

18

Functional

Area

15

Job Family

25

Job Group

FN

Job Global

JF

Seniority

21

Person

P

Central

Person

CP

Work Center

Group

9V

Central

Person

CP

Person

P



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Advantages and difficulties

What can we do with HR GLOBAL 2.0?

Organization Management

Automatic generation and publication of charts

Extract data for all employees in the Group

The chart must show OU, persons with name and job title and employee

card for each employee

HR Development

Performance Review (MBO)

Standardization in Headcount calculation (final and average)

Standardization in personnel Cost topics

Main KPIs definition

As anticipated before “difficulties” and “Cultural change” are the two

problems on which I want to focus.

In my experience I could see how it is difficult to change the cultural

background and the mental schemas of an employee who is not prepared for

innovation.

Having a tool with very big potentialities and not knowing how to use it,

is the biggest waste that a company can do. We think that every employee doesn’t

understand what a big advantage to his daily work is using this tool instead of

Excel reports.



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Today in EGP there’s a double work, because every employee makes the

same works on Excel and on SAP too. Such this situation continues because,

owing to the combination of more SAP systems, there isn’t a big quality of the

data, so the application isn’t reliable.

The true difficult is that there isn’t, and there can’t be, a net cut from the

past instruments until data on SAP GLOBAL 2 will be reliable. Only in that

moment the employee will understand the added value of the system. But in

meantime no one cares about the quality of the data in SAP because they work in

Excel.



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III. Expats management process

Dictionary

A list of definitions that can be useful for a better understanding of the

text.

O.U. => Organizational unit, Management unit of a company.

Position => To position is transmitted the properties and attributes of a task. The

positions are assigned to organizational units and are set to represent instances

correlate with each other.

Company Code => Key that uniquely identifies a company.

Cost center => Key that uniquely identifies a cost center.

Home country/company => Country/company of origin of an employee.

Host country/company => Country/company of destination of an employee.

Personnel ID => Within a client, the C.I.D. is the only unique key to identify an

employee. Provides access to the display and updating of data and the

organization of work (info-type) of an employee.



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Employee Group => One employee status is a organizational unit for which you

can define regulations relating to personnel. One employee status is divided into

several types of employees.

Employment Status => Status code for events.

The Process

To activate the Expatriate Administration Unit, within Enel Global

Business Service (GBS), to start a new expatriation process we use the

International Mobility Form.

To expatriate EGP employees, we’ll fill in the International Mobility

Form, only after HR Head’s authorization, asking it by EGP expatriation

proposal.

Once we’ve got the authorization to proceed to expatriate an employee from

one country to another, HR shall send the International Mobility Form (IMF) to

Enel GBS, following the process described below.

Home and Host HR will fill in the first page of the IMF. The order of

compilation of the form should be first Home HR, then Host HR.

Home HR will send the form, filled in until “line 76” of the excel sheet, to

the GBS/Expat Administration Unit so that it can fill in with the

compensation data and run a cost estimation.

GBS/Expat Administration Unit will return the form to the Host HR for

him/her to gather the approval of the Destination Business Unit. Once

signed, the form will be sent to the Home HR for the signature of the

Origin Business Unit.



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Finally the form will be signed by the Responsible of the HR

Administration and Pension Fund.

As all the parts involved have given their approval, the process of

expatriation will be started by the Expat Administration Unit. Practically,

the calculation of the expatriation package and benefits and starting of the

processes connected with the immigration, legal issues and social security,

where this service is applicable.

Expat Administration Unit sends the final calculation of the expatriation

package and benefits to EGP Home HR.

If every point of this list is not completed, the employee can’t be recorded

on SAP GL2.

Often, the expatriation of the employee starts before completing all the steps,

especially if there are urgent needs for the company, and the resource will result

on SAP on average one month after.

Italy in particular, is very slow in this process because is the country with

more bureaucratic problems, and there are Impatriates in Italy who are not

recorded in SAP from about one year.

As you can understand, the process is complex and not linear, obviously there

are a lot of communication and bureaucratic problems. For this reason on the

EGP HR SharePoint (web platform where we share the documents) every

area/country HR unit updates a .xls file called EGP EXPATS GLOBAL REPORT,

with some basic info about the expatriation and other accounting data . In this way

every authorized HR employee can have a global vision about the expats.



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Expats/Impats on SAP GL2

“Impatriate” is the Employee Group where the employee is recorded in

the system by the host country. When an employee is entered in the system, he is

connected with the organizational unit and position of the country where he

works.

By the link with the organizational unit we can know the relevant cost center and

job professional family too. In this way we have a real perception of the location

of the employee and of what he really does.

“Expatriate” is the Employee Group where the employee is recorded in

the system by the home country. In Italy they are assigned to a particular

organizational unit and they are part of a specific personnel area “EXPATS”, but

this process is not the same for all the countries and data extracted from this area

are not reliable.

“Active” is the Employment Status that has to be set for the employee in

the system by the host country. This field permits to differentiate between the

ended impatriations and the ongoing ones. In this way we can make a real-time

report that is able to say us who are the impatriates in the world in that moment.

But the final objective is to have just one record per employee that will

contain the global person number. Impatriation and Expatriation management

processes still remain on local systems. Global 2.0 will receive data from three

local systems and arranges all information together so that it will have the global

vision of all employees groups status and location.

There will be a new Global Portal to be accessed for managing global

processes implemented and Global HR for incident management . The objective is

to define a model of Help Desk and Trouble Ticketing for incident management in

global processes.



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From the Global CRM, users will be able to open tickets for each of the new

global processes (i.e. MBO) or to connect to one of the two local ticketing tools in

case they need to open a ticket for a “local” process (i.e. Payroll).

Actually expatriate employees have two or more records, one for every

expatriation they did, infact Enel lauched another project about the cleaning of

these double records.

Fig. 3 Records of an employee



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IV. What we did

Query creation

To know immediately what Impats were present in the system and who

not, we just made a simple query with the following inputs/outputs :

Input : Output:

Employee Goup : Impatriate ● Personnel ID

Employement status : Active ● First Name

● Last Name

● Organizational unit

● Position



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What situation did we find? Not all expatriates employees were recorded

in the host country on SAP GL 2. The big work was to select one by one the

missing ones, using the Global Expats Report on the Sharepoint and trying to have

more data as possible for everyone.

Very often the impatriates present in the system were not correctly

recorded, with any missing info.

Here we found another problem, the “Global Expats Report” file on the

HR SharePoint for all the foreign countries was not updated, and no one had a

global vision about this problem. Every HR employee had data, but these were not

collected and, almost, not shared.

So I talked with every area/country Hr unit around the world, to ask who

were the impatriates in that country and why they were not recorded on SAP.

Summarizing we found the following critical aspects :

● Bureaucratic problems, especially in Italy.

● Low priority to record the employees in SAP.

● Misunderstandings about the concept of impatriate.

● Low attitude to cultural change.

● Errors of superficiality.

Check tool

To remedy these critical aspects we had to create a “check tool” that

permitted us to arise the quality of the managed data.

In the first phase, together with Diana Alfonso, we made an “Expat Book”,

exchanging between us the information about the expats, and creating finally a list

with the real global situation of the employees who work in another country.



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We made an information flow, together with the HR colleagues, in such a

way that me and Diana are always updated about new expatriations.

The “Global Expats Report” file on the HR SharePoint was updated

correctly and every HR of each country was invited to keep it under control. We

can therefore say that there was a revision of the process.

In a second phase, found uncorret data on the system, we were committed

to correct them , and it was really not easy.

Also because, while we talked with the local HR, new employees started the

expatriation, other ones finished it.

So, we worked to be always updated about this and remained in close contact with

the HR involved. Thinking to the future we took the opportunity to explain doubts

to the colleagues and to resolve their technical problems.

Our “check tool” was, and is, the double matching between the Global

Expats Report file and the output of the query on SAP. Therefore, even if these

instruments are not updated, the new information flow permits to have always a

correct global vision, and to talk closely with the host country HR to have more

data about the expatriation and the recharge contract.

Monthly report

Now, to show our work and the problems that we met to my boss and to the

higher levels of the company, was necessary to create a structured presentation

that was easy and immediate to understand, in such a way that this document can

be shared with the HR unit of each area/country.



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As in every big company attracting the attention of the top manager is not

easy, the key to achieve this objective is to be clear and smart. In this sense was

useful the advice of my boss :

“In the Enel Group a rule reigns : if you are not able to explain your

problem in the lift, from the ground floor to the office, your words will be vain.”

So I made a PowerPoint presentation where I’ve highlighted :

Concept of “Active Impatriate” within the system.

Numbers and percentages of “Active Impatriates” in SAP HR GL2.

Numbers and percentages of “Active Impatriates” by functions.

Uncorrect data in records in SAP HR GL2.

Difference between Global Expats Report, SAP GL2 and the correct

global vision.

This document became the monthly report of the expats that shows the global

vision and provides a valuation about the quality of the data in the system.

(Attached file)

Obtained Improvements

Today almost Expats people are recorded like “Active Impatriates” in SAP

GL2 in the host country. When we started to work for the Expats Management

Process, the quality of the data was about 48% ( 35 employees recorded, real

number 75), now the quality of the data is about 84% (57 employees recorded,

real number 71) and, as further improvements, we understood what are the

problems of the countries where the recording of the Impatriate is very slow .



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Summarizing we can say that :

Talking with Paola Cecchetti (Expatriation Unit) we established that

in Italy there is almost a bureaucratic problem. If the employees don’t

show to the local HR all the requested documents they will not be

recorded in SAP, even if their employment starts regularly.

For this reason, it will be necessary a review of the process to

understand what consequences can have a record on SAP for these

people, from when they start the expatriation, even if they haven’t the

requested documentation (Fiscal Code, Secondment Agreement, A1

Model, Insurance, exc..)

Today this is not possible, and foreign employees who work in Italy

from so much time are not recorded in SAP.

Talking with Irene Picazo (EGP HR unit in Spain) we established that

in Iberia there is a very different situation. In Spain is not known the

concept of Expatriate or Impatriate, but there’s an only employee

group : Asignaciòn Internaciònal. In this way when we make the report

we haven’t visibility of the Impatriate people in Spain. This problem is

already known by the ICT department and they are trying to create an

interface able to have a standardized language for all the HR units.

In Latin America, we resolved all the problems, but it remains to clear

the position of two expats from EGP who work in Enel Group external

companies (Endesa, Enersis).

For the future would be useful to create a special personnel area where

record all the employees who we can’t see in the system as

“Impatriates”, because they work in external entities (International

Energy Agency for example).



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V. Focal subjects for the future

In order to avoid all these problems will be necessary many adjustments.

Review of the process

The actual process is so much complex and not linear. In every step of the

process there’s a stop or a problem to resolve, probably also because is a “new

procedure”.

With the help of the experience, it can be improved a lot, and the steps will be

faster and easier.

Communication

In this experience I understood how much is important the communication

in a company, between the employees, between the different functions, for a logic

of global work, that contributes to the achievement of the objectives of the

company.

No sharing of the data, and thinking only to own work, without a global vision of

the company and of what can be useful for the colleagues is a loss.

An employee who is not a team player, will never be productive for the growth of

the company.

I think it’s too important the optimization of the systems for the

Knowledge Management and for the sharing of the best practices, already

existing, but not used in the best way. Experience is a valor, that has to be

preserved.



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Exploitation of SAP potential

As already said, SAP is a complete application for the company.

In HR module the use of the application can be extended for :

Payroll

Complete Master Data of the employee

Retribution & Benefits

Deadlines and objectives

Training

Recruiting

Performance review

Climate Survey

Attendances and absences… and many other subjects

SAP is the future for the company and for how much it costs, would be better to

use it at 100%.

Other projects

Other projects in which I was included and are still ongoing :

Global data recovery payroll

Collection and implementation of the employees photos in SAP.



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Thanks to

The experience in Enel Green Power let me know subjects that I have

never studied before. I found myself merged in a new world, with new

applications to use, with a new lifestyle, with new times to respect, with new

people with whom interact. The feeling with the colleagues was not a problem,

but the setting to understand the dynamics of the company and what steps to

follow was of course more difficult.

The first thing that I learned is that nobody will come to you to say : “Ehy,

Do you want to learn anything today?”, but you have to be hungry for knowledge

and open your eyes to understand what happens around you.

In this, you have to be lucky too, but I found a young and open-mind ambience,

that allowed me to accelerate the process of understanding the main processes in

the HR function, even if I was involved in a small part.

Then, the process of knowledge of the system, that I had never studied,

whereby I have to thanks Claudio, who is the historical memory of SAP in Enel

Green Power. Thanks to everyone in the office I understood what’s the best

approach to the people and to resolve problems all together. I understood what’s

the team play, and the ability to smile always in front of every problem.

I learned a lot of things that go beyond the technical knowledge, but that maybe

are more important.

I had the opportunity to confront the world of a large company, that creates

value for the people and it was a great pride.

I grew up, and I believe, and hope that this is only the beginning…

Paolo Raitano

Tesina

Technology

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