Proactively prepare for change and build a sustainable talent pipleline with SAP® Organizational and Talent Visualization by Nakisa®

Quick Facts

Summary

In an industry where competition for talent is high and attracting and retaining skilled workers is fundamental to business success, using an integrated organization and talent management solution is key. With the right processes and technology, you can reduce the risk and uncertainty of making critical enterprise and talent decisions by having accurate, real-time information at your fi nger-tips. Leveraging the simple user- interface and robust analytics, turn data into intelligence and gain confi dence in the org and talent decisions you make for your enterprise.

Business Challenges

• A shrinking talent pool for those with specialized skills due to an aging workforce and a decline in young professionals entering the market

• Diffi culty visualizing reporting structures, communicating and collaborating due to a geographically dispersed workforce

• Strategic misalignment caused by fragmented HR practices across various locations

• A rising demand for energy from emerging markets causing an increase in joint ventures and mergers and acquisitions

SAP® Organizational Visualization by Nakisa® enables you to:

• Increase communication and collaboration to raise business alignment, secure organizational know-how and facilitate techinical knowledge transfer

• Easily access up-to-date data from a single source of truth, facilitating sound HR decision making

• View rich analytics to gain insights into key HR data, revealing trends that pinpoint key challenges Identify and correct data anomalies to ensure information being used in organization/talent planning is accurate

• Plan and assess multiple organizational change scenarios to determine the best course of action

• Easily calculate the impact of your decisions on headcount, salaries and budgets before committing to them

SAP® Talent Visualization by Nakisa® enables you to:

• Create a foundational competency framework to align all talent management activities

• Visualize and audit current talent capacities and future talent demand

• Build a reliable talent pipeline for critical roles

• Identify and engage top talent to

ensure full return on investment on your recruitment/training costs

• Build a healthy leadership pipeline by creating and tracking employee development plans

Business Benefi ts

• Bridge the looming knowledge gap by fostering communication and collaboration between the older and younger generation of workers

• Get the most out of your SAP® Human Capital Management (HCM) investment by ensuring sound data integrity

• Enable workforce agility by eff ectively modeling and planning for changes to the org structure

• Identify positions and competencies critical to strategic success

• Engage top talent by aligning career aspirations and business objectives

• Mitigate risks of key role vacancies by establishing strong bench strength and succession plans

© 2014 Nakisa Inc. All rights reserved

Industry Spotlight: Oil & Gas

Today’s Oil and Gas leaders fi nd themselves swimming in a sea of opportunities, as this sector is one of the most rapidly growing in the world. However, opportunity is always shadowed by an equal amount of challenge. To answer to this high demand for energy production from emerging markets and a booming world population, companies are expanding into new, unconventional regions. As the environment grows more diverse, even the simplest tasks become diffi cult and costly. To add to the operational challenges, skilled human resources to staff the booming industry are growing scarce.

SKILLED TALENT SHORTAGEThe Oil & Gas industry has experienced volatile market conditions over the past quarter century which have exacerbated the task of HR professionals. During the 80’s and 90’s the industry was forced to lay off hundreds of thousands of skilled workers due to low oil prices.1 One of the largest impacts left behind from this volatility is a shortage of skilled workers, and subsequently a dangerous (and growing) knowledge gap. Those that survived the massive layoff s period are reaching retirement age and exiting the industry in large numbers every year, while the competition for talent from more attractive and stable industries is at a record-high.

Today, at a point when the industry is in the midst of the greatest period of expansion in its history, this shrinking talent pool could jeopardize its profi tability. An Ernst & Young survey revealed that 88% of executives from the twenty-two top international oil and gas companies agreed that talent shortage has the potential to impede their company’s growth and fi nancial performance.2

Now, as an HR professional, you face a major challenge. When your company is at the brink of losing hundreds of combined years of experience, how do you accelerate

the development of your younger employees to compensate? A robust and well planned out talent and succession management strategy is paramount to meet these aggressive goals.

BUSINESS MISALIGNMENTOil & Gas companies are known for having a variety of operations that cross borders, cultures, and geo-political landscapes, resulting in a dispersed workforce. Without the right tools in place to help this widely deployed workforce, it becomes diffi cult visualizing and understanding the organizational structures, which inevitably leads to confusion and misalignment between team members and their managers. No access to a clear picture of the organization’s structure further hinders communication and collaboration between colleagues. In an industry where many jobs can be physically demanding and high-risk, the ability to communicate with the right people to get the right information is essential, not only to project success, but to ensure compliance with safety legislations for the well-being of workers.

Conducting business in diff erent locations has also become a cause for fragmented HR practices in many oil and gas companies.

HR departments spread across diff erent geographies often work in silos, resulting in the lack of synergy for the foundational HR processes such as recruiting, performance management, development and succession planning. HR leaders across the board must base their strategies on a central repository of data that comes from a single source of truth.

Frequent joint ventures are also characteristic of the Oil & Gas organizations, with mergers & acquisitions now following close behind in order to effi ciently provide for the increasing demand for energy.3 In recent years, the industry has faced more joint ventures and mergers and acquisitions than any other industry. Naturally, when joining forces with another company, you join your greatest asset – the people. As an HR professional, you must use your HCM data to ensure that all critical roles are staff ed with the right skills in the new org structures and guarantee that the eff ects of these new structures are conducive to reaching business goals. The problem is, in an industry where data is constantly changing at a dizzying speed, it isn’t always easy to keep it clean and organized. With inconsistent, unreliable and out-of-date HCM data, a smooth transformation becomes nearly impossible.

PROACTIVELY PREPARE FOR CHANGE AND BUILD A SUSTAINABLE TALENT PIPELINESAP® Organizational Visualization by Nakisa® and SAP® Talent Visualization by Nakisa® give you access to company-wide HCM data, providing the visibility and data accuracy you need to support the change and the talent requirements that will keep you competitive.

“It is clear that the talent void in the oil and gas industry has transformed from an organizational challenge into a critical business issue. This should raise a red fl ag to leadership that immediate and innovative solutions are necessary.”

Dina Pyron, Leader in human capital practice, Ernst & Young Global Oil & Gas Center

© 2014 Nakisa Inc. All rights reserved

Access a complete and interactive organizational structureGain a global view of your entire organization through an easy-to-navigate, intuitive org chart. Everyone in your workforce can visualize reporting structures, roles and responsibilities, no matter where they are deployed. Foster collaboration to increase business alignment and facilitate knowledge transferEmpower your workforce to quickly search on key employee data like contact details, and skill sets to identify the right people to help them innovate new ideas or successfully complete a project. By connecting employees and allowing them to easily work together, you facilitate the sharing of skills and experience. This collaborative culture helps bridge the widening knowledge gap between the seasoned workers exiting the industry, and the younger, developing professionals.

Reduce risk and drive collaboration on organizational modelsKeep up with the ever-changing HCM data and take charge of the transformations brought on by economic and demographic shifts in the industry. Using OrgModeler™, dynamically model “what-if” scenarios based on reliable HCM data to ensure that the planned organizational structures cover all critical roles adequately and support enterprise expansion. Users can then share scenarios across the enterprise in a secure environment.Integrated approval workflows provide customizable and collaborative way for scenarios to be analyzed and approved by relevant stakeholders directly from the planning stage.

Make solid decisions based on valid and secure data Keep your SAP HCM ERP data current and accurate and ensure that your org and talent decisions are made based on data that is free of anomalies, especially when faced with large re-organizations. With OrgAudit™, quickly identify and rectify data discrepancies based on pre-defined and customized rules that suit your business. The intuitive tool lets you create a process and rules that can be easily followed by everyone in the organization. When data inconsistencies are found, easily drill down to see more information on the errors and

efficiently correct them using the easy-to-follow instructions or smart links.

Build a foundational framework to streamline all talent management activitiesUse a single source of truth for all your talent management needs. Within Nakisa’s talent management suite, visualize key metrics such as employee demographics, succession bench-strength, competency strengths and gaps, performance and potential. By having this information in one place, up-to-date and accessible by all stakeholders in the company despite their location, you take away the silos and increase strategic synergy on your talent management activities.

Bridge the gap between required skills and available talentIdentify and optimize the skills and competencies for all positions in your organization, easily pinpoint competency gaps, assign specific development targets, and align employee aspirations with your talent initiatives. Using the competency inheritance functionality within TalentFramework™, assign competencies required for positions at multiple levels in the organization, removing the tedious task of manually entering requirements for every position. By having a clear understanding of the skill requirements for positions, you can build comprehensive succession plans to develop your workforce in preparation for the upcoming critical vacancies due to an aging workforce.

Cultivate a culture of employee engagement and developmentToday’s generation of workers highly prioritizes the ability to take charge of their careers. Using CareerPlanning™, employees can review their current competencies, identify the roles that interest them, and determine the competencies gaps they

must bridge to reach their goals. Then, with DevelopmentPlanning™, employees can map a definitive plan in collaboration with their managers and HR to get from where they are to where they want to be. By allowing your workforce to take ownership of their professional future and supporting individual growth while keeping the enterprise’s interests in mind, you increase employee loyalty, engagement, and overall company attractiveness.

Recognize your top talent and turn them into future leadersDevise an effective succession planning strategy to relieve the pressures of ensuring a strong bench strength during this time of talent shortage. By leveraging the global talent data within your SAP ERP HCM, you can identify top-performing employees and plan on how to best reward them for their hard work. With SuccessionPlanning™, search and identify high-potential successors in a specific job family, talent group, organizational unit, or across your entire workforce, then compare them simultaneously to find the best fit. The tool also empowers managers to get involved in succession initiatives by nominating their top talent for advancement. By knowing who your star employees are, you can prepare them for further success and future-proof your organization’s talent landscape within the same set of activities.

1 Rostand, A. (2013). Never a better time to be a petrotechnical professional. World Petroleum Council: Addressing Global Energy Challenges, 80th Anniversary Edition (2013): 106.2 Stark Talent. (2011, Sept. 16). Oil and Gas Companies: Talent Shortage is a Major Concern. General format. Retrieved from http://www.starktalent.com/2011/ 09/oil-and-gas-companies-talent-shortage-is-a- major-concern/3 Cazalot, C. (2007). The major challenges facing our industry. Society for Petroleum Engineers, Talent and Technology, 1(1).

Secure, affordable, accessible, and ample supplies of energy are absolutely essential to both economic growth and a reasonable standard of living, so it is only natural to expect that developing countries, with their growing economies and populations, will drive increased energy demand.

Society for Petroleum Engineers

© 2014 Nakisa Inc. All rights reserved

© 2014 Nakisa Inc. All rights reserved

About us

Nakisa® Inc. is a leading Organization and Talent Management software company, providing organizations with the ability to visualize and maintain accurate HCM data, confi dently execute organization design, devise harmonized succession and career plans, and create an aligned, high-performing workforce. Nakisa’s client base includes 700+ enterprise customers, with more than 4 million subscribers from 24 industries, in 125 countries. Nakisa has been an SAP® partner since 2007. SAP® Organizational Visualization by Nakisa® (SOVN) and SAP® Talent Visualization by Nakisa® (STVN) are co-developed, supported and sold by SAP. Available in 18 languages, they form a key part of the SAP product roadmap.

For further information, email us at nakisa@nakisa.com.

www.nakisa.com