{"id":138325,"date":"2025-05-05T13:50:49","date_gmt":"2025-05-05T11:50:49","guid":{"rendered":"https:\/\/www.cbs-consulting.com\/?p=138325"},"modified":"2025-05-05T14:41:38","modified_gmt":"2025-05-05T12:41:38","slug":"laying-the-foundation-for-steering-excellence-in-an-s-4hana-transformation","status":"publish","type":"post","link":"https:\/\/www.cbs-consulting.com\/en\/laying-the-foundation-for-steering-excellence-in-an-s-4hana-transformation\/","title":{"rendered":"Laying the foundation for steering excellence in an SAP S\/4HANA transformation"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"138325\" class=\"elementor elementor-138325\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-22c4ec87 e-flex e-con-boxed e-con e-parent\" data-id=\"22c4ec87\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-216bc8f2 elementor-widget elementor-widget-text-editor\" data-id=\"216bc8f2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><span class=\"TextRun SCXW173606582 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW173606582 BCX0\">When <\/span><span class=\"NormalTextRun SCXW173606582 BCX0\">our <\/span><span class=\"NormalTextRun SCXW173606582 BCX0\">client,<\/span> <span class=\"NormalTextRun SCXW173606582 BCX0\">a global leader in <\/span><span class=\"NormalTextRun SCXW173606582 BCX0\">technology,<\/span><span class=\"NormalTextRun SCXW173606582 BCX0\"> set out to transform its business with SAP S\/4HANA, the goal was not just a system upgrade. With operations spanning over 40 countries and more than 100 subsidiaries and joint ventures, <\/span><span class=\"NormalTextRun SCXW173606582 BCX0\">our client<\/span><span class=\"NormalTextRun SCXW173606582 BCX0\"> aimed to create a digital backbone capable of supporting innovative business models<\/span><span class=\"NormalTextRun SCXW173606582 BCX0\"> incl. digital service models<\/span><span class=\"NormalTextRun SCXW173606582 BCX0\">, improving customer satisfaction, and driving operational efficiency at scale.<\/span><\/span><span class=\"EOP SCXW173606582 BCX0\" data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span class=\"TextRun SCXW133559601 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW133559601 BCX0\">But before diving into system design, one fundamental question needed to be answered:<\/span><\/span><span class=\"LineBreakBlob BlobObject DragDrop SCXW133559601 BCX0\"><span class=\"SCXW133559601 BCX0\">\u00a0<\/span><\/span><\/p><p><span class=\"TextRun SCXW133559601 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW133559601 BCX0\">Is <\/span><span class=\"NormalTextRun SCXW133559601 BCX0\">the <\/span><span class=\"NormalTextRun SCXW133559601 BCX0\">current <\/span><span class=\"NormalTextRun SCXW133559601 BCX0\">company <\/span><span class=\"NormalTextRun SCXW133559601 BCX0\">operating model <\/span><span class=\"NormalTextRun SCXW133559601 BCX0\">fit-for<\/span><span class=\"NormalTextRun SCXW133559601 BCX0\">-future<\/span><span class=\"NormalTextRun SCXW133559601 BCX0\">?<\/span><\/span><span class=\"EOP SCXW133559601 BCX0\" data-ccp-props=\"{}\">\u00a0<\/span><\/p><h4><span class=\"TextRun SCXW226848798 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW226848798 BCX0\">A <\/span><span class=\"NormalTextRun SCXW226848798 BCX0\">s<\/span><span class=\"NormalTextRun SCXW226848798 BCX0\">tructured <\/span><span class=\"NormalTextRun SCXW226848798 BCX0\">s<\/span><span class=\"NormalTextRun SCXW226848798 BCX0\">tart: The <\/span><span class=\"NormalTextRun SCXW226848798 BCX0\">Target <\/span><span class=\"NormalTextRun SCXW226848798 BCX0\">Operating Model Review<\/span><\/span><span class=\"EOP SCXW226848798 BCX0\" data-ccp-props=\"{}\">\u00a0<\/span><\/h4><p><span data-contrast=\"auto\">To answer this, we jointly conducted together with the client a structured <a href=\"https:\/\/www.cbs-consulting.com\/en\/next-one\/target-operating-model\/\">Target Operating Model<\/a> (TOM) Review as a crucial first step in the transformation journey. Rather than jumping directly into solution design, we took a step back to assess the existing framework across five key dimensions:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><ul><li data-leveltext=\"\uf0a7\" data-font=\"Wingdings\" data-listid=\"13\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Wingdings&quot;,&quot;469769242&quot;:[9642],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0a7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Governance &amp; Organization<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li><\/ul><ul><li data-leveltext=\"\uf0a7\" data-font=\"Wingdings\" data-listid=\"13\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Wingdings&quot;,&quot;469769242&quot;:[9642],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0a7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Performance Management<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li><\/ul><ul><li data-leveltext=\"\uf0a7\" data-font=\"Wingdings\" data-listid=\"13\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Wingdings&quot;,&quot;469769242&quot;:[9642],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0a7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Business Process Model<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li><\/ul><ul><li data-leveltext=\"\uf0a7\" data-font=\"Wingdings\" data-listid=\"13\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Wingdings&quot;,&quot;469769242&quot;:[9642],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0a7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"auto\">Material &amp; Value Flow Model<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li><\/ul><ul><li data-leveltext=\"\uf0a7\" data-font=\"Wingdings\" data-listid=\"13\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Wingdings&quot;,&quot;469769242&quot;:[9642],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0a7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"5\" data-aria-level=\"1\"><span data-contrast=\"auto\">Legal &amp; Tax Model<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li><\/ul><p><span data-contrast=\"auto\">A current state assessment created transparency across all of the above mentioned dimensions. It confirmed which parts of the operating model were already transformation-ready \u2013 for example, the Business Process Model, which required only minimal changes. Key business scenarios were aligned and documented \u00a0and later used to structure requirements for future end-to-end processes. This ensured a completeness of the critical business scenarios for S\/4HANA solution design and ensured continuity in critical business operations.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><h4><b><span data-contrast=\"auto\">From fragmentation to steering clarity<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/h4><p><span data-contrast=\"auto\">While some areas proved mature, the newly established business sector revealed critical gaps in steering, particularly regarding profitability and accountability. <\/span><span data-contrast=\"auto\">These included:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><ul><li data-leveltext=\"\uf0a7\" data-font=\"Wingdings\" data-listid=\"14\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Wingdings&quot;,&quot;469769242&quot;:[9642],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0a7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Unclear responsibilities for profitability steering<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li><\/ul><ul><li data-leveltext=\"\uf0a7\" data-font=\"Wingdings\" data-listid=\"14\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Wingdings&quot;,&quot;469769242&quot;:[9642],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0a7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Inconsistent KPI structures across management layers<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li><\/ul><ul><li data-leveltext=\"\uf0a7\" data-font=\"Wingdings\" data-listid=\"14\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Wingdings&quot;,&quot;469769242&quot;:[9642],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0a7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Limited transparency in product and service performance<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li><\/ul><p><span data-contrast=\"auto\">In a second step, the TOM Review was followed by an in-depth analysis and redesign of the client\u2019s steering model. A future-state design was developed based on three key elements:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><ul><li data-leveltext=\"\uf0a7\" data-font=\"Wingdings\" data-listid=\"15\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Wingdings&quot;,&quot;469769242&quot;:[9642],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0a7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Clearly defined steering objects<\/span><\/b><span data-contrast=\"auto\">, strongly oriented toward the company\u2019s digital product and service logic as well as commercial structures \u2013 providing a structured basis for managing and optimizing both internal and external business areas<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li><\/ul><ul><li data-leveltext=\"\uf0a7\" data-font=\"Wingdings\" data-listid=\"15\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Wingdings&quot;,&quot;469769242&quot;:[9642],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0a7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">A focused KPI model<\/span><\/b><span data-contrast=\"auto\">, harmonized across steering levels to drive alignment and strategic clarity<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li><\/ul><ul><li data-leveltext=\"\uf0a7\" data-font=\"Wingdings\" data-listid=\"15\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Wingdings&quot;,&quot;469769242&quot;:[9642],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0a7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">A streamlined P&amp;L structure<\/span><\/b><span data-contrast=\"auto\"> with clearly visible value drivers to enhance performance steering<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li><\/ul><p><span data-contrast=\"auto\">This model laid the blueprint for improved decision-making, financial transparency, and effective performance management across all steering levels.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><h4><b><span data-contrast=\"auto\">Shaping the transformation<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/h4><p><span data-contrast=\"auto\">The Target Operating Model Review did more than identifying improvement areas, it defined actionable guardrails for the transformation journey. The results have been used by the project team as working assumptions for the Finance &amp; Controlling design of the S\/4HANA implementation. This ensured that all TOM related requirements would be reflected in the upcoming solution blueprint.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">By combining an initial readiness check with a targeted redesign of critical performance levers, this project proved how the right foundation can turn complexity into clarity and accelerate value across the entire transformation.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-587139ac elementor-grid-1 elementor-grid-tablet-1 elementor-grid-mobile-1 elementor-widget elementor-widget-loop-grid\" data-id=\"587139ac\" data-element_type=\"widget\" data-e-type=\"widget\" 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