Why it is more than an IT project

A stable, maintenance-proof HR basis before strategic, data-driven issues – this is the roadmap for transformation in many companies. A lot of potential remains unused. A column by Sandra Preiser, Head of SAP HXM at Nagarro, about the success factors of strategy, change management and partnership at eye level using the example of an implementation project of a government organization.

Anyone who asks about the future of HR work in Germany will find that many companies are currently busy driving forward digital transformation in HR and IT. You develop data strategies, introduce the cloud and test artificially intelligent and automated applications. Not a fundamental functional reboot, but a necessary step to be future-proof.

And yet not everyone finds it easy to switch to new systems. The approaching end of maintenance for older solutions is putting a certain amount of pressure in many places to ensure that investments are worthwhile and that the existing core is retained. In addition, planning is often uncertain and resources are not sufficiently available. For strategically and technically demanding functions, there is also a high degree of dependence on the IT department. Projects cannot therefore be managed realistically and reliably – there is a lack of a clear HR-IT roadmap.

HR and the unused potential

A major challenge is to balance data migration, process harmonization and hybrid strategies. It also becomes complex where HR is newly moved to the cloud on the “greenfield” with the addition of various modules and modern software for planning, managing, developing and remunerating the workforce. Hybrid landscapes usually emerge here with a focus on those modules that quickly offer noticeable added value in everyday HR operations. In other words: a stable basis and a confident approach to legal and organizational requirements. For example in the areas of recruiting, learning and performance management.

Modules with strategic potential, such as onboarding, compensation, payroll and time tracking, however, play a subordinate role. The same applies to analytics functions. As a result, only a few HR managers deal with central trends, strategic, data-driven decisions as well as opportunities and risks for the corporate strategy. This comes at the expense of further transformation, truly modern processes and potential for efficiency and innovation. In other words: at the expense of competition.

From administrative administrator to strategic designer

But that’s just the technological perspective on things. Rethinking the organization and the employees’ willingness to change remain crucial to HR transformation. On the one hand, an IT project can be used to make a strategic change of direction and reposition HR – as a business partner. On the other hand, the introduction of software is more than just the implementation of IT: processes, roles, collaboration, responsibility – almost everything is redefined and designed. Tasks are added and eliminated. Project work is added, line work remains. The burden is increasing and new positions often have to be created to avoid overloading.

All of this requires management support, change management and open communication. How is everyone’s everyday working life changing? To what extent are teams being reassembled? What is a priority and what is not? The direction of the company as a whole must also change. What does a suitable project organization look like? And who is the right cast? It has proven to be effective: “People follow structure”, project goals follow company goals and personnel strategies follow company strategies.

Anyone who accompanies change, shows perspectives, explains decisions and goals, supports people in the transformation and gives them the feeling of being an active part of the whole. This is particularly important for IT projects at different levels and in stressful phases.

Only works in theory? Are you kidding me? Are you serious when you say that

A positive example of how HR transformation succeeds is a company that brings together various partners in international projects and helps develop solutions for politics and business, for example in the area of ​​labor migration. Together, we at Nagarro have set up digital travel management for our 25,000 employees in over 100 countries. The challenge lay in the many locations worldwide, primarily in developing and emerging countries with limited digital infrastructure.

To date, travel processes have been highly fragmented, not standardized and almost exclusively manual. While the German location relied on an internal SAP component, a wide variety of solutions were used in other countries – depending on local requirements. As a result, the processes were slow and non-transparent.

To make a change, the company started a four-year transformation project including switching to SAP S/4HANA as the central ERP platform. On this basis, SAP Concur was introduced for unified travel management. After successful pilot projects in Burkina Faso, Ethiopia and India, the solution was rolled out to an additional 20 countries every four months within two years. This phase was accompanied by professional change management, which supported the project team from the start with intensive project preparation and supported all employees, for example with comprehensive communication concepts, face-to-face events or training networks.

The result: Specifically in the area of ​​travel management, expense reporting was completely digitalized – globally uniform and in accordance with SAP best practice. Employees can now submit their expenses via mobile using a user-friendly app instead of on paper. This affects around 200,000 travel expense reports every year. The processes are faster and more transparent, the data is transparent, evaluable and therefore controllable. The manual check is eliminated and fewer correction loops are necessary. In addition, regulations are better adhered to. Overall, the project leads to savings of around 1.3 million euros per year and a reduced workload of around ten years.

Sounds complex? You don’t have to solve it alone

The example shows that the original project idea of ​​simply replacing an old solution can develop into a strategic transformation. The project now serves as a blueprint for other global IT projects because it has proven that even complex systems can be implemented quickly and successfully if they are set up correctly from the start.

My most important learnings from seven years of HR transformation? Anyone who wants to tackle the challenges in human resources should set the strategic course promptly, follow key trends and consistently implement developments. In the event that the necessary resources, information and functional requirements are missing, it is advisable to bring in external support.

Partners can help provide strategic guidance, create clear roadmaps, and leverage AI, automation, and digital process optimization to make technologies faster and safer to use. It is important for success that both sides – customer and service provider – always act as a team.

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