SAP Human Capital Management Success Stories:Halliburton Company

Teresa Neer

Cindy Bigner

Halliburton, founded in 1919, is one of the world's largest providers of products and services to the petroleum and energy

industries

$ 16 billion annual revenue

2 global business units:• Energy Services Group (ESG) – Oil Field Services• Kellogg / Brown & Root (KBR) - Engineering & Construction

100,000 employees

100 countries

Corporate Profile

ENERGY SERVICES GROUP (ESG)Up Stream Services – 100% use of SAP

EvaluationReal Time Reservoir Solutions™DrillingWell CompletionEnhancementWell MaintenancePipelinesSubseaDeepwaterPipeline & Process Services

ENGINEERING & CONSTRUCTION (KBR)Down Stream Services – Partial use of SAP

Oil & GasGovernment OperationsInfrastructureFertilizers & Synthesis GasLNG/GTL/Stranded GasPetrochemicals & PolymersPetroleum RefiningPulp & PaperPower

Halliburton Business Units

Initial SAP Implementation

Halco21 Project initiated late 1996

Major objectives to standardize business processes across company and resolve Y2K system issues

All SAP R/3 modules implemented including HR/PR

SAP and new processes deployed during 1998/1999

Stabilized SAP system/processes during 2000/2001

Upgraded to SAP R/3 4.6c in November 2001

SAP R/3 deployed to add’l business units during 2002/2003

199919981997 2000 2001 2002 2003

4.6UpgradeProject

ESG DresserDeployment

ProjectHalco21 SAP Implementation Project

Long TermSupport StaffPut in Place

FurtherLeverage SAP

SAP ESS & MSS Implementation

SAP ESS implemented throughout the US during 2003/2004

SAP ESS implemented globally during 2004/2005

SAP MSS implemented globally during 2004/2005

Certified as a SAP Customer Competence Center (CCC) in 2004 and 2005 and acknowledged as a highly effective, low cost support organization

200520042003

FurtherLeverage SAP

ESG ESSProject

ESG MSSProject

Single Production Instance version 4.6C

All R/3 Modules Supported (including HR & Payroll)

Go-Live Year: 1998

4.0 TB database

23,000 Named Users (including ESS users)

4,000 Concurrent Users

100 Countries

SAP Numbers

Halliburton’sESS & MSS Implementation

Halliburton wanted to reduce costs by leveraging the data available in SAP and enabling employees and managers access to real-time data

ESS Business Need

Pay Advice ProcessingIssue: Considerable cost associated with processing, printing, and mailing employee pay advicesSolution: Discontinue printing pay advices where appropriate, and enable employees with on-line access to view their past and current pay advices

HR Data ProcessingIssue: Significant time spent by HR Administration updating employee master data Solution: Provide employees immediate access to their HR data. Reduce amount of time spent by HR administration related to common data changes triggered by an employee, and re-allocate time to more strategic initiatives

Data IntegrityIssue: Perpetual employee movement results in outdated and inaccurate HR dataSolution: Allow employees access to real-time data via the internet in order to capture correct data as changes occur

Month 5

ESS Implementation Overview

ESS Scope

32,000 employees (15,000 US & 17,000 International/Expats)

50+ countries

ESS Deployment

US Deployment: US sites were deployed first

14 sites, plus Expats

Total Duration: Designed, configured, and deployed in 12 months

Global Deployment: International sites were grouped into six regions

Five month implementation cycle per region

Total Duration: Designed, configured, and deployed in 15 months

Month 1

RequirementsGathering

Month 2 Month 3 Month 4

Design/Build/TestSystem

Test Deployment

GLOBAL IMPLEMENTATION SCHEDULE

ESS Deployed Functionality

Information on colleaguesPersonnel searchPhotos

Expense entryOnline expense entryOffline expense entry

Working timeDisplay/enter working timeDisplay quotas – vacation, sick, purchased vacation

Professional informationEmployment related dates-svc award, credited serviceEducationPrevious employers

Payment informationPay slip display/printExpense reimbursement display/print

ESS Deployed Functionality

Personal informationMaintain known-as name different from legal nameMaintain address informationMaintain bank information

Family and related persons informationMaintain identification and contact information including indicating who is accompanying you for international assignment

Outlook propertiesBusiness phoneBusiness locationHome and mobile numbers ee wants publishedAssistantJob titleOutlook notes

ESS Business Case

Cost Benefits

Reduction in costs associated with processing, printing, and mailing pay advices

Reduction in costs associated with HR keypunching data and answering employee queries

Estimated at $600-700K annually

Strategic Benefits

Decrease HR Administrative time allowing increased focus on more value added activities

Employee Benefits

Greater transparency and ownership of HR data

Better data integrity

ESS Lessons Learned

Requirements and DesignIncorporate global feedback into initial design to alleviate requirement issues down the roadDo not rely solely on the HR team to provide requirements - include Payroll and Accounts PayableMinimize design changes to true business/legal requirements

Implementation/DeploymentGroup countries together based on common requirements such as those using or not using payroll – and factor in time zones!

Communications and trainingTrain the trainerDevelop reusable communications and training package

Include a variety of methods and materials to address varying environments

Communicate, communicate, communicate

ESS Lessons Learned

SecurityUserid locks and deletesInfrequent usersGroups for ESS only users

Other functional areasProvide timeline and expectations to supporting teams

Security Team – userid/password set-upHelp Desk – scripts and processesIT Architecture – hardware, network, kiosks

Id areas with bandwidth/latency issues

Don’t forget Internal Audit

MSS Business Need

Access to information

Issue: HR-related data on employees was not accessible by managers

Solution: Provide a tool that would give managers easy access to HR data on

their personnel

One-stop shop for HR-related information

Issue: Numerous HR applications and information sources

Solution: Consolidate information and entry points into HR applications and

information sources

Data Integrity

Issue: Limited access to data perpetuated out of date information

Solution: Give managers visibility to relevant information in an easy to use tool

MSS Implementation Overview

MSS Scope

Phase 1 – deploy display only functionality to budget-owning managers

Phase 2 – Build Compensation module and deploy annual salary

increase administration

Future – continue to add functionality beginning with Personnel Change

Requests and deploy to supervisor level

MSS Deployment

Phase 1 – March through December 2004 with 2,000 managers

Phase 2 – completed 1st quarter 2005

Mar-04 Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04

Plan

Req gather

Chief Assignments

Deployment

Testing

Design and Build

Data Clean-up

Go-Lives

MSS Implementation Phase 1 Timeline

Notice time period for data cleanup and chiefs

MSS Deployed Functionality

HR Home PageHR communication ticker to managersDate reminders for current monthLinks to weather, traffic, stocks, news

Team information Telephone contact listCost center listSick and vacation quota, used and balance

Personnel DevelopmentPersonnel evaluation ratings historyTraining deficiencies

SecurityAssigned SAP security roles

Employee ProfileOrganization information Emergency contactAddresses and phone numbersAbsence days and typesOrganizational history within companyCompany property issued to employeeDate reminders for tasks

CompensationCurrent salary and salary historyBonus and allowance amountsStock awards

MSS Deployed Functionality

Reporting - downloadable reports for any or all of a manager’s personnelContacts and locations

Phone listBusiness addressesEmergency contacts

DatesService awardsEmployment related dates

CompensationSalary history

TimeAbsences and attendances and paid time-off balances

OrganizationCost center reportingMatrix hierarchy reportsSecurity roles

QualificationsPrevious employersEducationPersonnel evaluation ratingsTraining deficiencies

MSS Deployed Functionality

MSS Business Case

Cost Benefits

Reduction in costs associated with HR responding to queries from

managers for data on their employees both from the manager’s and

HR’s perspective

Shutdown of standalone custom applications

Estimated at $1.8MM annually

Strategic Benefits

Decrease HR Administrative time allowing increased focus on more

value added activities

Employee Benefits

Greater visibility and timliness of HR data

Better data integrity

MSS Lessons Learned

Requirements and DesignIncorporate input from a variety of managersHR Organizational Unit structure and assignment of managers – do not underestimateTypes of managers

Matrix – complexity of includingLine – tailoring functionality available by type of managerGeographic versus functional – who “owns” a person for update, especially salary changes“Control” issues – differing manager views on what they want to control and what they want to push down to lower level managerNot a tool for managers with a very high number of directly reporting employees

Design of evaluation paths for defining directly and indirectly reporting employees is critical

MSS Lessons Learned

Implementation/DeploymentInsist on data verification of chief assignments!Importance of position control and good HR processes

Communications and trainingTrain HR personnel on Org Management and troubleshooting managerassignmentsCommunicate, communicate, communicate

MSS Lessons Learned

SecurityStructural authorizationsControl number of MSS related rolesExpats/commuters with two personnel records – assign both positions as chiefs

Other functional areasProvide timeline and expectations to supporting teams

Security Team – userid/password set-upHelp Desk – scripts and processes

Don’t forget Internal Audit

Future Plans

ESSImplement with SAP portalMore event driven functionality

MSSPersonnel Change requestsAdditional functionality based on feedback from managers

eRecruiting – 2005/2006

Learning Management System – 2006/2007