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SAP Customer Success Story 

SAP GLOBAL HRmySAP™ ERP WORKFORCE PERFORMANCEMANAGEMENT CAPABILITY HELPS SAP BRINGCONSISTENCY, TRANSPARENCY TO EMPLOYEEDEVELOPMENT PROCESS

As part of Global HR, SAP University came into being in 2003 to

centralize and leverage all employee development processes and 

activities for SAP – the world’s largest interenterprise software

company, and the world’s third-largest independent software

supplier overall.

Until last year, different business units and offices within SAP

were using a variety of different methods – ranging from paper

and pen to feedback tools designed in-house – to handle the

annual performance reviews of the company’s 30,000 employees.

Then, SAP University brought in the mySAP™ ERP solution’s

capability for workforce performance management. Now,

SAP University is completing a pilot project that covers

about 6,800 users worldwide; within six months, the official

company-wide rollout will take place.

NEED FOR A CONSISTENT PROCESS

“SAP isn’t that different from other companies, in the sense that

we value our employees and their intellectual and emotional

well-being very highly,” says Vivien Schmitt, project lead for

SAP University. “But, we are a large company, and we knew that

the best thing for all our employees, and for our enterprise as a

whole, was to make the employee performance management

process consistent across the company.”

 AT A GLANCE

Company NameSAP

 www.sap.com

IndustryHigh tech

Key Challenges

• Standardize employee reviewsand development methods

• Integrate team and individualgoals with corporate goals andstrategies

Solution and ServicesmySAP™ ERP

Implementation Highlights

• Involved 6,800 users in pilotproject

• Will include 30,000 users in finalrollout (2005)

Key Benefits

• Consistent employee reviews

• Integration with other humancapital management (HCM) toolsand processes

• Ability to align employee/manager goals with enterprise vision

Hardware

HP/UNIX workstations

Operating SystemMicrosoft Windows NT

“Workforce performance management with

mySAP ERP gives us confidence, and it gives

employees and managers confidence in SAP. We

can all use one process, use one tool, and ensure

high-quality standardized processes worldwide.”

Stefan Ries, Global Head of Global HR Business Partners, SAP

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from project managers and peers, as well as from other supervisors.

It’s especially valuable in matrix organizations – or where project

teams may be formed periodically – because it lets the manager

see how the employee is viewed by others. Another example is

the succession management tool that lets managers identify those

people who would be likely candidates for taking their positions.Consequently, appropriate development plans for these candidates

can be defined in the performance management process.

“Functions like these help build relationships throughout

the enterprise,” says Schmitt. “And other functions, such as

customization and integration with other human capital

management and ERP modules, give us plenty of flexibility

for handling enterprise growth – as well as any extraordinary

demands we may experience – in the future.”

SAVING TIME, GAINING VISIBILITY 

Workforce performance management with mySAP ERP also saves

employees and managers time, because it helps to structure per-

formance review discussions around the most important topics.

“It expedites the entire process, and ensures that everyone’s time

is used eff iciently,” says Schmitt.

But, most important, according to Stefan Ries, global head of 

Global HR Business Partners at SAP, it brings transparency and 

consistency to the performance management process – benefitsthat are invaluable in a company with 30,000 employees.

“On the one hand, it expedites the entire process, and ensures

that everyone’s time is used efficiently,” he says. “On the other

hand, workforce performance management with mySAP ERP

gives us confidence, and it gives employees and managers confi-

dence in SAP. We can all use one process, use one tool, and

ensure high-quality standardized processes worldwide.”

The main reason for this was to bring consistency to the processes

used for evaluating employees. According to Schmitt, different

managers were using different measurements and different

processes for evaluating employees. Also, employees were not get-

ting full access to the best training and development opportunities.

“And, because different managers were using dif ferent processes

and measurements, it may have been more difficult for employees

to move from division to division, since the managers might not

understand each others’ review standards.”

 ALIGNING GOALS

SAP introduced the mySAP ERP workforce performance

management capability at SAP Labs in India, SAP America,

and SAP IT.

The basic process is simple. At the time of the employee’s annual

review, the workflow process e-mails an application link to the

employee’s manager, asking the manager to provide the team

or department objectives. Then, the workflow sends an e-mail

to the employee, asking him or her to come up with a proposal

for individual performance objectives that will be compatible

with the larger goals. The employee can then send the suggestions

for his or her individual objectives to the manager. The manager

subsequently brings in his or her own ideas, and sets up an

appointment to meet with the employee.

“It’s important to note that this tool doesn’t replace that conver-

sation,” says Schmitt. “But it does help to guide and focus it.”

 ADVANCED FUNCTIONS FOR PEOPLE DEVELOPMENT 

The mySAP ERP solution has other functions that can be invoked 

in the review processes to facilitate communication and enhance

long-range planning. One example is what’s called “additional

appraiser feedback.” This permits a manager to request reviews