SAP Global Template Demystified: Governance

Boring. Dull. Beige. Unnecessary. Overhead. You’ve heard it all when it comes to governance. It’s known to lack excitement in the eyes of many consultants and even IT decision makers. Who wants to deal with budgets and committees when you can focus on the go-live instead? On the surface this is understandable–but it’s also just plain wrong!

SAP-Governance-PM-Flow-Chart

Both strategy and execution need governance, and so does the SAP Global Template. A Global Template is about discipline, about creating and preserving a backbone in your ERP endeavor, a solid tree trunk from which you can branch out to create exciting new leaves in your IT portfolio.

Now, you might be wondering, why bring up governance as it relates to Global Template when, in fact, it’s related to all areas of business? And the answer is, quite simply, that GT governance is separate from IT governance. We cannot push down the “handling” of the creation and deployment of a Global Template into a regular SAP ERP project. There is more to it, requiring a separate structure to manage the template. It’s our responsibility to call attention to it as a stand-alone item.

Overview of Governance for SAP Global Template

Consider the following elements, which I consider to be requirements for a solid governance strategy:

Governance of the Template Strategy
Aligning with best practices, SAP Model Companies, industry solutions, and other influencing factors has to be at the core of the Executive Governance of the Global Template. It is pivotal to understand the difference between continued evolution and necessary revolution (the structural upheaval from R/3 to S/4HANA) and the impact on the overall IT organization (road map, human resources, capabilities, budgets, etc.).   

Governance of the Template Evolution from Idea to Result
You need an intake medium to properly shape the pipeline of future functionality. They handle the selection process, proof of concept, budget and ROI calculations, and the risk assessment to see if an idea will lead to a tangible business benefit. In addition to a strategy management software, it is advisable to have a Global Temple “Guardian” Committee that includes both IT and Business. Further, preselects will be established, with functions that can be deployed at designated time frames. Also, you need to be able to step into the future by configuring and testing Proof-of-Concept deployments in non-production systems as this will enable a healthy pipeline.

Governance of the Template Deployments
While it is certainly part of the regular PMO procedure to handle the roll-out of a Global Template to the organization, there are key differences to stand-alone projects. You need to avoid any aspects of reinventing the wheel (E.g., rerunning blueprint sessions) and focus on the management of deviations (E.g., concept of fit-gap). Also, a harmonization of SAP environments (systems and clients) between deployments, maintenance, and parallel proofs-of-concept is necessary. 

Governance Support Software Solutions
SAP has many tools in the portfolio that are embedded in ERP solutions. While there are many, I would like to highlight a select few:

    • Strategy and Portfolio Management – Helps to harvest ideas and bring them to fruition in an orderly fashion
    • Project Systems – Often underestimated, it can manage projects end-to-end and integrate them with Finance
    • Product Lifecycle Management – Managing products (which do not have to be tangible!) in all aspects of their evolution
    • Solution Manager – An often disregarded or simply ignored tool that can help you manage and document your SAP landscape and functionality, a fantastic way of governing within the SAP software  

Other products not owned by SAP are obviously very helpful, too, though I’ll spare you from a lecture about MS Visio and MS Project. 

I do, however, want to steer your attention to two other, relatively new products that deserve to be mentioned:

  • AMIGO by Platinum PMO: The AMIGO tool focuses on the holistic governance of the digital transformation process and integrates seamlessly with SAP. It can describe and manage the whole lifespan of your Global Template as well as deployment projects. It is described as “governance to ensure your community is playing by the rules and working in perfect harmony.” I could not say it better, and I do buy in to the concept!
  • Bella Scena: This resource offers a fresh take on meeting governance. Bring purpose to meetings by actively managing them and get out of the mode of asking yourself, “Why do I need to be here?” Bella Scena is very reasonably priced and can be your way out of boring meeting culture–definitely worth giving a try!

This brings us to the close of today’s post on SAP Global Template governance. In our next chapter we will talk about SAP Model Companies as accelerators for your SAP Global Template and its deployment. As always, thanks for your valuable time today! If you have questions about Global Template that you’d like to see addressed in future posts, we invite you to reach out via Twitter.

SAP Global Template Demystified: Rallying the Troops

Its people are the biggest asset of any company. The same is true when it comes to an SAP Global Template–it is only as good as those who establish and manage the platform. This requires that you keep those key people informed, educated, and involved. Only then can you ensure that they understand the direction, are working toward a common goal, and are ultimately willing to defend the system that has been built.

Quite often the change management impact in an effort as big as rolling out an SAP Global Template is profoundly underestimated. And even if change is generally embraced, that may not be enough to bring people on board. The message has to be clearly spelled out: Change is not the enemy but rather an opportunity, ready to be seized!

SAP Global Template Consultants

Let’s define some meaningful categories of key contributors to get closer to their needs:

People Impacting the Global Template
From executive sponsors who oversee teams implementing the Global Template, to the business people designated to support the implementations, you have to enable them with educated buy-in, access to the right tools, and recognition. And when it comes to recognition, go beyond the handshake! A well-structured incentive program may get your internal resources truly invested in the projects, allowing you to avoid much more expensive external help. In reality, the difference between a lousy and an excellent team meal could be significant motivation to go the extra (hundred) miles!

People Impacted by the Global Template
Try to walk in their shoes instead of telling them how brilliant you are. There is no success without acceptance! Make a distinction between people who accept the new world and the ones who don’t–and treat them all with dignity. Someone may just want to ride the existing state into the sunset, while others are eager to embrace change. You need them all. Don’t alienate them for no good reason! You can accept that someone does not want to go on the SAP trip and may rather choose a different position or retirement. They can still be of great help if you treat them right. Support the willingness to change as much as you can as it will contribute to a smoother, more successful process overall.

People Preserving the Impact of the Global Template
You need to defend what you built, and you cannot leave it to chance. The support team that you install needs to monitor across the board, ensuring the many elements of the Global Template are preserved and truly alive! You need to give them purpose and respect; they are NOT an appendix to the operations, but an essential and critical part of it. It starts with your Center of Excellence, includes the various Business Governance functions, like Master Data Management, and also something that is often forgotten–the harvesting of brilliant ideas to ensure continuous improvement from people in the field who really know what works and what doesn’t within the system.

SAP Global Template Team

When we talk about giving people the tools, it starts with governance of the Global Template project–the do’s and don’ts, and, also, the maybe’s that you need to foster creativity. I have found over the years that it is of utmost importance to define and communicate the boundaries around which people will interact with the Global Template. Consider these categories:

  • Global Must-Have’s – Mandatory and therefore not debatable
  • Global Can-be’s – Extendable, used as add-ons to mandatory settings
  • Local Needs – Elements that are better left to the locals

This ties back to executive messaging reinforcing that these rules are there for a reason. This clarity will help tame the “too-free spirits” in the field and also functions as guardrails, helping people walk by themselves.

In our next chapter we will talk about the Governance tools that should support the effort of creating and deploying your coveted Global Template. As always, thanks for your valuable time today! If you have questions about Global Template that you’d like to see addressed in future posts, we invite you to reach out via Twitter.