Ingredients for the Successful Digital Transformation of HXM (Human Experience Management)
We have experienced tremendous changes last year, how a virus has put us on the backfoot and changed the way we are doing business. In addition, it changed the way we are living and how we are maintaining our relationships in professional and personal lives. It is remarkable to believe how quickly we have adapted to change and the way we are taking it forward.
We can see there will be a mammoth change in the way we run our businesses, though we all want it to be the same way as we have left before and want to pick up from where we have left. This pandemic has taught us that things will not be the same as before. Businesses need to adapt. Businesses need to build strategies for any unprecedented situations and transform quickly on their digital Journey. From my experience, I have come across these focus areas which help organizations on their transformational Journey and where SAP can help the Organizations.
Business Continuity and building Resilient workforce:
The focus of organizations should be continuing their core business processes without any disruption caused by any unprecedented situation like this pandemic. To achieve this, an organization needs to build a highly skilled workforce and the right Talent, According to Forbes. The U.S. Department of Labor puts the cost of a bad hire at 30% of the annual salary for that position. McKinsey & Co. states that hiring a ‘top performer’ over an ‘average performer’ yields up to 67% more productivity and profit. Organizations should also build reserve talent depending on who can quickly take up the tactical task of the key resources and at the same time. These reserves shouldn’t be a burden for the organizations. We can take an analogy of the Pit stop at the formula one race. It takes 20 seconds for the highly skilled workers who master in their work area to get the racing car back on track. If we need to build a world-class team, we need to acquire the right talent, retain the right talent, and empower employees with the right tools and pieces of training. Additionally, we need to define highly efficient processes and systems that can support this.
Employee Experience Matters:
As Quoted by Richard Branson, ‘The Way you Treat your Employees is the Way They Treat your Customers”, organizations are moving towards a tectonic shift to focus on Employee Experiences and build processes around them. Employee experience matters. I will share a recent experience of mine. Me and my friend wanted to buy a home. The financial service provider had asked us for an employee experience letter, It had taken me less than 2 minutes to generate the employee experience letter from Employee Self Services. Whereas my friend had to request the HR through email. The first step to my friend’s process started off by sending an email to my friend’s manager. The second step included my friend’s manager’s manager creating a hard copy. Finally, the 3rd step included my friend’s manager’s manager to scan the hard copy, sign it, scan it and finally deliver it to my friend. This process took my friend a total time of 48 hours. Though it is a very small experience, the process was problematic for her. Organizations should build processes in which they empower the managers, given the opportunity for self-service options, take constant feedback on certain experiences, analyze the results and improve the process for better employee experience. This is the key for success.
Connecting Business Processes through Intelligent Enterprise:
We are going through a rapid change in our business operations. Innovations in Cloud technologies, mobile technologies, create tons of data. Analyzing the data to support the business decisions and connecting all end to end processes rather than running in Silos should be the focus of the organizations. Connecting People, Processes, Technology and Data is the game-changer. With Intelligent enterprise, we need to get Operations and Experience hand in hand.
“Intelligent enterprises are Integrated Enterprise”. Integrating different technologies and interfaces ensures smooth data flow from one system. This is one of the Key Success criteria for the Enterprise. An organization should focus on defining the right Integrating strategy and build technology that supports the defined strategy.
Business Goals and Objectives:
When Leaders look at the Digital Strategy, they look at it very differently from the people who execute it. I have seen in my 16 years of experience that in some of the Projects which I have implemented, the project team of the customers don’t know their Business Goals, objectives, and their key KPI’s. It is very important to define what your business goals are, what is the driver of the goal (Why), and how to measure the success of the Goal. For example, if the business goal is to increase improvement/employee engagement, we need to understand why we need to increase productivity. Once the driver is set, we need to have a proper tool to measure the key KPI. Are we doing it by improving Employee experience by ESS/MSS, checking employee experience through surveys, and measuring the progress of the goal? If you don’t know how to measure the Goal, then, it is never considered a Goal. Organizations need to understand that merely buying software is not sufficient . Adapting to the best practices, proper change management, alignment of the business goals across the organization, placing the right governance structure, cross-functional collaboration is key to the successful adoption of the product.
How SAP helps Customers transformation Journey:
SAP with continuous innovations and it focusing on the customer experience will help organizations to achieve their business value. Using the SAP Process of Attract and Acquire, Pay for Performance, Identify & Grow and Educate & Deploy Process organizations can hire the right talent. Also, empower their employees with the right tools and techniques. Getting constant feedback from employees on the various processes will help enterprises know the pulse of their employees. With SAP Qualtrics Employee Survey organizations, we can know the experience of their employees immediately and can take necessary actions to improve their experience. Intelligent enterprises are Integrated enterprises with SAP Recruit to retire, Lead to cash, Design to Operate and Source to Pay. These provide customers coverage of end to end processes using leading-edge best practices processes and using advanced technologies like Artificial Intelligence (AI), Machine Learning (ML), and Internet of things(IoT).
Above Key drivers, the following Keys of Success ( Program Vision, Executive sponsorship, Governance, Defining Right KPI’s, Process Refinement, Resource Planning, Cross Functional collaboration, Incentives, Training and Communication) can not only help companies on their successful digital transformation journey, but will also build a resilient workforce, happier employees, and build Technology. In conclusion, it will help organizations transition into a smooth digital transformation journey.