30 Golden Rules We have recently implemented several SAP S/4HANA transformation programmes and have distilled all of our experience into 30 Golden Rules to align to. These rules can also apply to other types of ERP transformation.
Scope and Sequence
Ensure scope alignment with the Vision. Cross-check scope questions with the Vision as the scope will inevitably evolve. Scope has many dimensions, e.g. functionality, legacy systems, sourcing, business and/or geographic sequencing of implementation. Typically Finance goes first, however the finance function touches every part of the organisation so be aware of overly complicated interim states. Rolling out a template approach for multi-site organisations has advantages, however many industry sectors and geographies will ask for changes – minimise customisation. There is no right sequencing answer for a multi-business and/or multinational roll-out. Do the analysis and stick with the decision.
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Ownership
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Start with a clear vision and ensure exec sponsorship, and ownership. The move to S/4HANA should be business-led enabled by systems change. Invest in Change Management. There’s a range needed from ‘lift and shift’ to fundamental changes to process and op model. Keep comms super simple, S/4HANA can become overly complicated and the business users can quickly become lost and disengaged. Invest in a network of Change Agents and Super Users to ensure uptake and support across all of the business areas.
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Team focus
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Involve the wider business up-front. It’s important to plan for a shift from Programme ‘push’ to Business ‘pull’. Ensure an ethos of One Team with shared outcomes and success across all involved internal teams and third parties. These programmes are long and tough and so investing in teambuilding and fostering a sense of shared purpose is well worth it. Getting the right people involved at the outset is fundamental to success. Stabilise the core of the team and plan for succession of key people. Don’t assume business teams know their processes 100%. Moving to S/4HANA is a lot about unpicking deeply embedded processes.
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Governance
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The Governance structure is most important, get it right to begin with, and stick to it. Take the time to get the right sponsors and stakeholders and the right level of communication all aligned. The definition of how decisions will be made and who can decide what, should all be worked out at the beginning. Ensure up front that governance, planning and decisions are openly shared and agreed where multiple business units are in scope. Ensure a business design authority is appointed and empowered from the outset.
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Understand the difference
Each ERP implementation needs solid foundations before the more visible work is done. However, S/4HANA is not an upgrade from ECC6; it is a fundamentally different product based on the HANA database. This represents a ‘once in a lifetime’ opportunity to re-design business processes to align with best practice. Real time analytics, enhanced revenue opportunities and IT simplification are all quoted benefits. Due to the likely significant process changes this must be a business-led transformation programme which is inherently complex. Data is at the heart of a S/4HANA implementation; the mapping to the S/4HANA data model is not simple.
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Data
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Data migration has proven to be the most consistent workstream that causes most issues and delays across S/4HANA implementations. It is not a simple data migration route to move from ECC6 to S/4HANA. Have a clear definition and process for data migration, and proactively work out potential issues. Establish clear data ownership and planning up-front. Legacy data is typically years old and has been subject to extensive customisation. Be very clear what the Master Data Objects are and where they are to be mastered, and how they will flow. Try to avoid a prolonged freeze period. Allow time to learn from early data loads and build in lessons ahead.
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real change • real difference
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