Alstom: Becoming the Preferred Partner for Transport with SAP SuccessFactors Solutions

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1 Picture Credit Alstom, Paris, France. Used with permission. Alstom: Becoming the Preferred Partner for Transport with SAP SuccessFactors Solutions After a multibillion-dollar transaction in which it became a smaller but more focused market player, Alstom faced the challenge of integrating its outdated on-premise HR software into one cloud-based solution. Using SAP SuccessFactors solutions, Alstom achieved this in a record eight months. It s now moving full speed ahead with new agility.

2 Company Alstom Headquarters Paris Industry Engineering, construction, and operations Products and Services Railway equipment, services, and components Employees 31,000 Revenue US$6.9 billion (2016) Web Site BUSINESS TRANSFORMATION Objectives Transform the HR organization following a multibillion-dollar transaction that made Alstom smaller but more specialized Introduce HR software for over 30,000 employees in 60 countries Improve external brand awareness of the New Alstom Replaced outdated on-premise HR solutions with the SAP SuccessFactors Employee Central solution in eight months Established integrated talent management Created a fully automated recruiting function with the SAP SuccessFactors Recruiting solutions Benefits High level of adoption due to an improved user experience leading to higher HR efficiency Ready identification of the current and potential pools of talent Ability to track compliance concerning mandatory training Faster performance management and more flexibility in reward and compensation Read more The fact that we have an integrated HR solution has made our HR function more agile. And SAP SuccessFactors solutions just worked. The acceptance within the organization was great. Mathias Klemptner, Senior Vice President of HR, Alstom 8 months For the global rollout of SAP SuccessFactors solutions in 60 countries, excluding learning 100% Satisfaction with solutions among staff 92% Of talent reviews completed on time 85% Of performance reviews completed on time 2 / 6

3 Working smoothly from day one with integrated HR software The UN estimates that the earth s population will increase by two billion between 2015 and Most of that growth will be in cities. Urbanization is already creating an urgent need for more services and products in the areas of transportation, healthcare, housing, education, sanitation, and energy. For the potential to respond to these demands, look no further than Beijing, which turned its subway system into the third largest in the world in just 10 years time. An increase in rail construction is good news for Alstom, who develops and markets services, systems, and equipment for the railway sector. It became a rail-focused engineering company in 2015 after a US$14.2 billion transaction with General Electric Company. To be ready to operate as an independent company from day one, it had to move quickly. In particular, it needed a single integrated HR software system covering its 31,000 employees in all 60 countries where it operates. It also required a better way to identify its talent so it could make progress toward its new corporate strategy. We knew resources would be a problem once we were on our own, so we had to be very fast in moving everything to a cloud-based solution, explains Mathias Klemptner, Senior Vice President of HR. The change was welcome: Alstom s on-premise HR IT solutions were 10 years old an eternity in IT and had been highly customized. A cloud-based HR solution would optimize the flow of HR data between all users and reinforce a can-do culture. We wanted to become more agile and have an entrepreneurial mind-set like a new startup. And we wanted the user experience to fit this image of the new Alstom, says Klemptner. 3 / 6

4 Using powerful, award-winning solutions The decision to use SAP SuccessFactors solutions was made quickly, due in part to the fact that SAP software already served as the backbone of Alstom s financial activities. The fact that all HR and personal data would be safely stored within the SAP Cloud portfolio convinced the European work councils that SAP SuccessFactors was the best choice. Alstom introduced the SAP SuccessFactors Employee Central solution for core HR data, as well as the full range of SAP SuccessFactors Talent solutions. It subsequently implemented the SAP SuccessFactors Learning solution in order to bring all training and certification management to one platform. The changeover to the new HR software was really smooth, confirms Klemptner. We re an engineering company. Our people can deal with no functionality, but it drives them mad if functionality should work and it doesn t. The SAP SuccessFactors solutions just worked. The high level of user adoption was due in part to the fact that Alstom could retain the brand name of its old HR software. This reinforced the business as usual impression we wanted and kept change management to a minimum, he says. Other reasons for success included using standard functionality and configuring the software from the perspective of the employee to keep it user-friendly. Learning became easier to manage. Previously, Alstom had worked with several learning vendors; now all training catalogs are visible in one place. HR could also offer mandatory training and track compliance. The global rollout was completed within a record eight months, excluding learning a feat that earned Alstom an award for the best HR information system (HRIS) project in France in 2016 by a leading French professional HR society. 4 / 6

5 Rewarding and nurturing talent for the future HR processes are faster today due to the new solutions. Take performance management: 85% of performance reviews are completed on time, namely within 2 months. This is our best achievement ever for the delivery of performance reviews, and it impacts everyone s incentives, says Klemptner. Alstom can reward people faster than in the past, which improves engagement and retention. Managers can immediately review proposals for salary increases based on performance, and HR can calculate bonuses or sign off on a long-term remuneration plan all in the same software. Klemptner observes, In the past we had double data entry and different modules for the different steps in talent management. Now what you do once is in the system for good. Integrated workflows make the company more agile and improve the user experience. If a manager in one country becomes an expat someplace else, they want to see the same process everywhere. Finally, Alstom has a more realistic picture of talent, which will help it achieve its 2020 strategic priorities. These include localizing production and engineering, offering a wider range of products and services, ensuring a high level of safety and environmental performance, and innovating more. Alstom wants a more diverse workforce, too, with more senior roles filled by women and non-europeans. Instead of relying solely on succession plans for certain roles, Alstom is casting a wider net for talent inside the organization through talent pooling. It defines specific categories of talent and classifies experts in the SAP SuccessFactors Employee Central solution according to the criteria. Talent pools form the basis for annual talent reviews. 5 / 6

6 Alstom Selling the company to the outside world Urbanization is not the only factor transforming the rail sector. The expectations of the cities and governments who pay for new rail systems have changed, as have those of the passengers who ride on them. Everyone wants mobility to be more energy efficient and safer, and they want a passenger experience that leverages the latest technologies. Studio SAP (17/04) Alstom is taking up the challenge. It plans to develop talent pooling further by managing and measuring specific competences. In recruiting, Alstom has already gone from approving job requisitions and posting ads to a fully automated process. The next step is to integrate more steps into its recruiting solution. It wants to increase user adoption of the recruiting tool within the HR community and improve external brand awareness. We need to sell the company to people who may not be aware of Alstom as an employer, and go to where the candidates are, says Cécile Michel, Vice President for HR Efficiency at Alstom. 6 / 6 Picture Credit Alstom, Paris, France. Used with permission.

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