Our Journey to Cloud February 2016

Speaker: Ioannis Boutaris

HR Technology & Analytics Manager

HR Shared Services

Contact Details

https://uk.linkedin.com/in/boutaris

Agenda

No Description Duration

1 The co-operative – Introduction to our business 5 mins

2 Our HR Shared Services Journey (strategy, vision) 5 mins

3 OneHR Programme Scope 10 mins

4 Why did we decide moving to Oracle Cloud 10 mins

5 OneHR Programme Implementation Roadmap – Latest Update 10 mins

6 Q&A 5 mins

2

Introduction to our business The Co-operative Group, with revenue of over 9.4 billion pounds (US$13.5 billion) and 75,000 employees, is one of the world’s largest consumer co-operatives, owned by more than 8 million members. Among its wholly owned businesses are the UK’s fifth-largest food retailer (almost 2,800 local, convenience, and medium-sized stores), largest funeral services provider, a major insurer, and a developing legal services firm. The group also has a minority interest in The Co-operative Bank and a joint-venture travel business with Thomas Cook. In addition to having clear financial and operational objectives, the group is a recognized leader for its social goals and community-led programs.

Separately operated

2,900 stores

The co-operative food

Home, Motor, Pet The co-operative insurance

900 stores

The co-operative funeralcare

Online

The co-operative electrical

Will, Family Law, Estates, Claims

The co-operative legal services

10,000 properties

The co-operative estates

24% co-op owned

The co-operative bank

400 high-street branches

The co-operative travel

3

Key events in the past few years Our Business Portfolio changed significantly the last decade. Equally, the HR Service offering to our employee base was altered accordingly, however it was not streamlined due to time limitations.

HR enablers (including HR technology, MI) were not standardised. Ended up customising our in-house solution, to accommodate for the non-standard processes & fragmented HR Shared Services Model

4

• Employee Base:

• 64,000

2006

• Merger with United

• Plus 22,000

• 86,000

2008

• Acquisitions

• Britannia 4,000

• Somerfield 22,000

• Others 4,000

• 116,000

2009

• Established Joint Venture with Thomas Cook

• Minus 6,000

• 110,000

2012

• Re-structured our portfolio of businesses

• 110,700

2013

• Disposals • Bank – 6,000

• Pharmacy – 7,500

• Sunwin – 750

• Farms – 600

• 95,000

2014

• Current Employee Base following natural attrition & OD programmes

• 85,000

2015

• Expecting Growth

FUTURE

Our HR Shared Services - Strategy / Vision

5

Where we were in 2014 …

Process

• Business functions focused

• Multiple HR policies by business function, disabling HRSS from being able to streamline its operation

Department

• 4 Tiered service delivery model introduced to HR SS, but with many exceptions, leading to inconsistency

People

• Too many admin activities keeping service costs high,

• Processes time-consuming with increased probability of human error during execution

Enablers

• Some Tier 0 enablers introduced but not offered to all our customers (exceptions by business).

• Bespoke custom design to accommodate devolving service model

Target End Goal - 2017

• Focus on ‘event-based’ processes not

Business functions (One HR Department)

• Integration of entire HR supply chain from HR

policy to delivery (One Operating Model with

Unified HR services)

4 Tiered service delivery model with single

approach / SLAs for all business units

New structure introduced streamlining service

offering across HR

Aim to deliver 1st class of Service, by

refocusing operational efforts to support

strategic workforce management

Simplified design effectively supported

Tier 0 enablers: Knowledge base systems, case

management, Intranet, (integrated HR Systems)

Employee and manager self-service for all

Shifting traffic from Tier 1,2 channels to Tier 0

Our HR Shared Services - Goal The end result offers a new way of delivering HR services that puts the business first, enhancing the customer experience and improving the insight and value HR brings

• The revised structure, channel approach and service technology landscape will result in tangible benefits both for the business, and our HR function:

• An improved and consistent service - For customers, our efforts to launch HRSS will mean a faster and more efficient level of service, with HR activities that are easier to access and navigate based on a unified user experience. A culture of performance measurement and tracking will drive accountability for maintaining the high quality of service expected across HRSS

• Greater MI and insight into the workforce - By moving from a basic level of reporting to a robust analytics capability, the business will be provided insight about its people, the trends that are impacting them and their talent needs. This will enable our Group to take better decisions faster, driving competitive advantage in the marketplace

• Greater opportunities for HR colleagues - The simplified HR operating model has been designed to promote career growth throughout the HR function, emphasising the development of generalist HR skills early on in individuals careers

• Lower overall FTE - Our Group is now focussed on turnaround and transformation. By centralising HR administrative work and taking it out of the business and delivering services in a more efficient and effective way, HR Operations enables the reduction of total FTE across the HR Operating model, reducing the overall cost of HR to the business

• Lower cost of Enablers – Single HR Systems Provider. Integrated Solutions. Minimum dependency on Internal IT (Hosted in Cloud). Flexible Model adapting to business demands (future proved). No customisations principle becomes part of our way of working. Enabling Enhanced Colleague Experience (MSS, ESS for all, Tier 0 driven operational service)

6

Establishment of the OneHR Programme

7

3 Years Journey

2017

Business Growth

Operating Costs

FTE Targets

Quality of Service

HR

Strategy

HR Shared

Service Delivery

HR Strategy

Our Transformation

Journey

State as of 2014

Target End State

2014 2012 - 2013 2015 2016

Phase 1 – Service

Development

Phase 2 – Service

Enhancement

Phase 3 – Service

Automation

Live – Service

Stabilisation

Inconsistent service for the customer

Inefficient and costly service delivery

Duplication of work and effort

Poorly defined accountabilities

Poor service adaptability to Business Demands

Poorly Bespoken HR systems -> hosted & supported internally

OneHR Programme Technology Vision - 2017

8

Public Cloud

Single Supplier

Recruitment

HR

Payroll

Talent

Performance Management

Learning

Succession Planning

Compensation Workbench

Analytics

CMS & KMS

Tier 0 Enabled

Workforce Planning

No Customisations Integrated

Flexible Adaptable

BYOD Enabled

OneHR Programme Technology Vision - 2017

9

Moving from MI To BI

Jan to Summer 2015 Summer 2015 to Summer 2016 Summer 2016 Onwards

Insight Enhanced Insight Foresight

Strategic

Analytics Advanced

Analytics

Hindsight

Data

Warehouse

Consolidate

Reports

Automate

Processes

Fix Technology

Issues

Reflection

HR KPI

Development

HR Performance

Management

Self-service

Reporting

HR BI Data

Visualisation

Data Governance

Framework

Data-Driven

Problem Solving

HR Continuous

Improvement

Integrated

Reporting

Visual

Analytics

Workforce

Planning

Strategic & Tactical

Workforce Planning

Insight Driven

HR Function

SaaS (optional to

develop capabilities)

Co-Op wide People

Analytics projects

Scenario

Modelling

Predictive

Analytics

Advanced Workforce

& Talent Analytics

Statistical

Modelling

Agile

Decision Making

Co-op Strategic

Objectives achieved

with HR Analytics

Strategic HCM Analytics HR Operation MI

Self-Service Analytics • Standard Reporting • Effective MI • Customisable Reports • Analytics SMEs • Improved Tools • Analytics in the boardroom

• Empowered and trained business

• Analytics Centre of Excellence

• Reduced Opportunity Cost • Insight for everyone

Reporting Monitoring Modelling Prediction

• Reports understandable

by all

• Ability to understand

and change the

workforce

• Ability drive HR and

the organisation

design using

modelling and

workforce analytics

• Able to understand

the future needs of the

organisation before

they occur

• Faster more accurate

reporting

• Stabilised HR systems

• Metrics that enable

tracking and reporting

• Quality and reliable data

• Empowered individuals

Why did we decide moving to Public Cloud In order for HR to implement its vision, we now have to simplify our HR Technology landscape. Due to the extend of customisations and the poorly designed internal infrastructure, this was impossible to be achieved in our current platform, without re-implementation of that technology.

So why we chose Public Cloud?

9 key drivers

10

HR Tech Design

Principles

Reduce Complex

ity

Breaking the Silos

Keep It Simple

Re-Use

Into The Cloud

HR Controlling

its own Destiny - Flexible Model

Single Provider to

support the HR

Systems Strategy

Reducing the cost of HR Service

Deliver Against new

Business Requiremen

ts

Integrated HR System

across modules

Accessibility to all

colleagues

No dependency on

internal network

Reduce Dependenc

y on Internal IT

Enforcing the Rule

of NO Customisa

tion Full

Alignment to IT

Design Principles

Implementation Roadmap – Latest Update

11

2017 2014 2015 2016

Phase 1 – Service

Development

Phase 2 – Service

Enhancement Phase 3 – Service Automation

Live – Service

Stabilisation

3 Years Journey

Single Vendor

Contractuals

SI RFI /

RFP

Business Engagement

& Requirements

Business

Case st. 1

Recruitment incl.

Social Sourcing

Performance

Core HR - Light

Basic Analytics Strategic Analytics

Technology Remediation

/ Quick Wins

Advanced

Analytics

Watson Analytics

Business

Case st. 2

Talent & SP –

Full Roll Out

Core HR - Full

Core Payroll

Talent & SP-

Pilot Top300

Compensation

Workbench ISE Tool

Recruitment – Full Roll Out

Case

Management

Onboard

SI

HR Intranet

Relaunch

Stabilisation

Where

We Are

Now • Fusion Learn implementation to be

agreed upon Oracle product readiness

The co-operative – Our Journey to Cloud

12