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Spain's CESPA Transforms People Management Processes via SAP-HR Backed by Flexible Applications Management Services

CESPA is a group of companies covering the whole waste cycle, offering customised services for the benefit of the community and the environment.

Following a long period of consolidation via mergers, acquisitions and market liberalisation, CESPA had acquired a plethora of disparate, disconnected systems to support its people management processes. The challenge was to develop a single integrated solution with SAP-HR at the heart, with transition to the euro dictating a time-critical pressure.

With vital input from Capgemini, the results are integrated HR processes, backed by a flexible Applications Management service to secure CESPA’s investment, now and in future.

Client Profile

Apart from being leader in its native Spain, CESPA has a presence in Portugal, Morocco and Argentina. AGBAR, undisputed leader in Spain for waste and water services and SITA, a global waste service provider, jointly own CESPA.

The group covers the entire waste cycle by offering customised services that benefit communities and their environment. CESPA delivers waste management, street cleaning and gardening services to over 12 million people and some 9,000 industrial and commercial customers. Waste management includes sorting and recycling, composting, deriving ‘green’ energy and landfilling.

Business Issues

CESPA had undergone immense changes to its organisation since its consolidation in the early seventies. Mergers, acquisitions and market liberalisation had introduced a plethora of small, disparate and disconnected systems and processes. Operating in a labour-intensive industry, this was especially true for people management and HR.

It was impossible for senior management at CESPA to know exactly what constituted individual employee contracts, considerable in number, and the impact of numerous labour laws affecting them.

The situation posed high risk to CESPA - systems did not provide management with the degree of accuracy, control or quality that was a must for a people-based employer. HR represented an important part of total costs, so clearly this was an important element for CESPA to address.

Management wanted to review HR processes so that they were optimally aligned to the business. CESPA recognised that it needed a modern integrated ERP solution for HR and selected SAP-HR at the heart.

In a competitive bid tender, Capgemini demonstrated sound knowledge and experience of SAP solutions, industry know-how and innovative approaches for integration and subsequent support provision. In particular, Capgemini offered depth and breadth of services encompassing the entire spectrum from consulting excellence to flexible, innovative outsourcing services.

Solution

Capgemini deployed an experienced project team to scope the project and define a strategy to adopt. A core team comprising 10 people facilitated workshops to gather information via a template based on SAP methods.

In essence, there were four fundamental requirements, all needing to be progressed simultaneously. Apart from HR, other elements included work to get CESPA euro-ready, interfaces to financial systems, and ongoing AM (Applications Management) services. A separate team of five people developed the other projects, while a team of six commenced the core AM service.

SAP-HR was deployed across CESPA’s organisation in Spain via four phases, each looking after specific geographies - North East centred around Barcelona, North West, Central and South. Due to the vast disparity of local practises and systems, a standard project rollout was impractical.

The team devised templates and checklists that maximised re-use, leveraging knowledge and experience gained to shorten subsequent phases. The first phase, lasting 8 months and including a pilot, was successfully implemented in the first region.

As a result of the innovative approach, Capgemini commenced effective AM services within a month of deployment of each phase. Simultaneously, the core team moved to other regions to deploy the application, while the AM service clicked into gear. The approach facilitated ongoing AM services to commence at the earliest point in the cycle.

The next two phases lasted three months each, and the final one, representing CESPA’s largest in terms of people, lasted a mere five months. Detailed project plans included agreed milestones with dates and clear responsibility for each project activity. The entire project took 19 months overall with the implementation phases lasting eight months in total.

AM services are provided remotely from Capgemini’s premises near CESPA’s headquarters in Barcelona. The service delivery is flexible - the number of people assigned to CESPA fluctuates as demanded by business needs.

Benefits

CESPA management is delighted with Capgemini’s input. Of particular note are on-time deployment and a smooth transition to AM services before the critical target date.

The workshops facilitated by Capgemini provided CESPA with added value by getting buy-in from key stakeholders in the organisation. This built awareness of project complexities and mobilised both the business units and HR directors to support deployment.

Capgemini’s experience of change management of such projects was also highly valued by CESPA management. In the live and dynamic business environment that exists at CESPA, this is an important benefit, critical for success.

Of course, the most valuable contribution to CESPA is a fully integrated people management process and system. It allows management of the business via effective MIS. HR costs for CESPA have been transformed from a high level of uncertainty before to a high level of certainty now, with cost-reduction realised as a consequence.

The effective, flexible AM service delivered by Capgemini means that CESPA retains a sharp focus on its business in the firm knowledge that the finance and employee elements of its business have been completely transformed to serve requirements, now and in future.

Written in co-operation with CESPA Group