Standard Life improves its ability to reward and retain talent

Working with IBM Global Business Services to deploy Oracle Fusion Human Capital Management

Published on 19-Sep-2013

"We chose IBM Global Business Services as our integration partner because we were impressed they were able to demonstrate they have deep knowledge of our industry, and the strength of their strategic alliance with Oracle." - Steve Finlayson, Head of Business Solutions, People Function, Standard Life

Customer:
Standard Life

Industry:
Insurance

Deployment country:
United Kingdom

Solution:
Application Infrastructure, Enabling Business Flexibility, Information Management Foundation, Transforming Business

IBM Business Partner:
Oracle

Overview

Established in 1825, Standard Life is a leading provider of long-term savings and investments to around six million customers worldwide. Headquartered in Edinburgh, it employs 8,500 people internationally and has savings and investments businesses which operate in the UK and Europe, Canada, Asia and emerging markets, Standard Life investments, a global investment manager, and joint ventures in China and India.

Business need:
Standard Life wanted to identify, develop and retain talent across its global operations. To enable meaningful comparisons of employee performance, its human capital management leadership team needed an integrated talent management and compensation solution.

Solution:
The company worked with IBM® Global Business Services® to deploy Oracle Fusion Human Capital Management with Performance Management, Goal Management, Talent Review, Compensation Management and Transactional Business Intelligence modules.

Benefits:
Aligns performance, reward and talent management processes and provides an integrated view of the workforce across the company. Establishes a direct link between performance and reward to encourage productivity, while helping the company address employee retention risks and encourage development.

Case Study

Established in 1825, Standard Life is a leading provider of long-term savings and investments to around six million customers worldwide. Headquartered in Edinburgh, it employs 8,500 people internationally and has savings and investments businesses which operate in the UK and Europe, Canada, Asia and emerging markets, Standard Life investments, a global investment manager, and joint ventures in China and India.

Need for an integrated talent management platform
To add value to its business, Standard Life wanted to identify, develop and retain talent throughout the organisation. To achieve this, the company needed a way to integrate data on employees, roles and remuneration into a single system – facilitating meaningful comparisons of employee performance.

Jacqui Mallin, Group People Director for Operational Excellence, People Function, Standard Life, comments: “In the past, our talent data was dispersed in multiple formats across a number of siloed systems. At the beginning of each year our employees would set themselves performance and development goals. Using our legacy performance management system, users had to update their performance goals and their development goals in separate places.”

Standard Life determined that a flexible and tightly integrated talent management solution with built-in analytics capabilities could dramatically increase the efficiency of the talent management process – enabling its people function to spend less time sifting through data on employee performance, and more time helping employees to fulfil their potential.

Selecting Oracle Fusion Human Capital Management
After reviewing talent management solutions from a number of vendors, Standard Life selected Oracle Fusion Human Capital Management (HCM) with Oracle E-Business Suite.

Steve Finlayson, Head of Business Solutions, People Function at Standard Life, says: “We knew that working together with an expert partner would help us both to accelerate and de-risk the implementation of our new Oracle solutions. We chose IBM Global Business Services as our integration partner because we were impressed they were able to demonstrate they have deep knowledge of our industry, and the strength of their strategic alliance with Oracle. We realised that the IBM team had the expertise, experience and contacts to ensure the success of the HCM project.”

To pave the way for the implementation of Fusion HCM in the UK, Standard Life worked with IBM to move from its legacy HR solution to Oracle E-Business Suite – improving its ability to manage core business functions such as payroll.

Planning the deployment
Next, as a way of mitigating risk for both parties during the implementation of Fusion HCM, IBM proposed a proof-of-concept exercise at the IBM Innovation Center in La Gaude, France.

Using the results of the proof-of-concept exercise and in-depth workshops with Standard Life, the IBM and Standard Life teams defined a common global data model for HR – normalising grades, assessment structures and processes across all of the company’s legal entities and operating units.

“The Fusion HCM implementation mainly involved our business in the UK, but throughout the project we had an eye on the bigger picture,” says Steve Finlayson. “In our next phase, we aim to extend Fusion HCM globally – which will ultimately help us to measure talent across borders, and identify, develop and retain the best people for our global business.”

In close collaboration with Standard Life, the IBM team implemented Fusion HCM with modules for Goal Management, Performance Management, Talent Review, Compensation Management and Transactional Business Intelligence in the Oracle Cloud. Throughout the deployment, IBM maintained close contact with dedicated resources at the Oracle Centre of Excellence – ensuring that any challenges were addressed rapidly.

“IBM is an accredited Oracle Fusion HCM Rapid Start Partner, and we saw that competency first-hand in the speed and efficiency of the implementation process,” says Steve Finlayson. “In a matter of months, IBM helped us to go from proof of concept to production, with a big-bang implementation for 6,500 users across the UK.”

Jacqui Mallin comments: “IBM was an excellent partner, and their team went above and beyond to ensure the success of the solution. Their commitment, dedication and focus were such that they worked around the clock to resolve any challenges that we encountered along the way.”

Single source of truth
With its Oracle Fusion HCM solutions, Standard Life has gained the flexible, integrated talent management platform it needs to help its employees and managers fulfil their potential – adding value to the business.

“In the past, goal-setting was a process that required a lot of manual effort,” says Jacqui Mallin. “With Fusion HCM, that’s all changed. Our employees now enter both their performance and development goals for the year directly into the goals interface in Fusion, and they automatically flow through to the performance interface – eliminating duplication of effort and reducing the risk of transpositional errors from copying and pasting data between systems.”

She adds: “Unlike our legacy performance management solution, which was only open at certain points in the year, Fusion HCM is always available for employees to use. This means that employees can update their goals and provide evidence of performance any time – ensuring our people function has access to an accurate, complete and up-to-date pool of talent data.”

To ease the transition to the new solution, Standard Life created an internal campaign to introduce business users to the new capabilities of Fusion.

“We don’t see Fusion as an IT tool; it’s a new way of managing performance across the organisation,” says Jacqui Mallin. “To communicate that message, we created an internal campaign featuring people from across our businesses, which proved to be very successful in positively sharing our messages and preparing the business to adopt the new capabilities.”

Facilitating talent reviews
To help the people function to identify talent, Standard Life has begun rolling out the Oracle Fusion HCM Talent Review module. Currently, the company is using the module to facilitate talent review for the executive succession and talent review (ESTR) population.

“We have now migrated performance data for our international ESTR population into the talent review module,” says Jacqui Mallin. “In the past, our managers used manual processes to plot scores for current and potential employee performance into a nine box matrix.

“Today, we can use Fusion to aggregate this data and automatically generate the nine box matrix – enabling side-by-side analysis of actual and predicted performance over time for up to 50 employees at once. We have been so impressed by these rich analytics capabilities that we are planning to roll out the module for managers across the business in during 2014.”

Rewarding performance
Once the people function at Standard Life has identified top performers in the business, it can use the Oracle Fusion HCM compensation module to allocate the available bonus pool – helping to reward and retain employees.

Working together with IBM, the reward team configured a set of standard formulae for bonus awards within the company – based on, for example, the number of years someone has worked for the company, and other factors such as the number of absences in the year. Managers can then use these formulae with an employee’s performance review to determine the appropriate bonus allocation.

The compensation module also includes analytics and reporting functionalities. On the performance homepage, managers can drill down to see how many people have submitted their performance documents, how many people have achieved their yearly goals, and how many reports are overdue in each department and team.

Today, the company uses Oracle Fusion HCM and Oracle E-Business Suite to calculate and issue employee bonuses.

“We used built-in tools to migrate the previous year’s performance data from the legacy solution into Fusion for analysis,” says Jacqui Mallin. “In the past, it could take us up to six weeks to calculate employee compensation. Using Fusion, we were able to calculate all bonus payments within just two weeks – our fastest time ever, and an improvement of more than 66 percent.

“Next year, all of our performance data will be handled by Fusion – meaning it will flow through the Goal Management, Performance Management, Talent Review and Compensation Management modules automatically. We expect this to dramatically reduce manual effort in the talent management process, and our managers have already started to give us very positive feedback on the new solution.”

Planning for the future
Based on the initial success of the Oracle Fusion HCM platform, Standard Life is already planning new ways to use the solution to augment its talent management process.

“Looking to the future, we are very interested in enhancing our employees’ Fusion landing pages with career planning capabilities,” says Jacqui Mallin. “This feature will enable our employees to see career opportunities and professional development programmes within Standard Life that complement their individual competencies – for example, university qualifications and languages.”

She concludes: “Thanks to our Oracle Fusion HCM solution and the expertise of the IBM Global Business Services team, we have created an integrated platform to help our Group People Function make better decisions about how to identify, develop and retain talent across Standard Life.”

Products and services used

IBM products and services that were used in this case study.

Service:
AMS: IBM Testing Services, GBS ISV Community: Oracle - EBS E-Business Suite, GBS ISV Community: Oracle - Fusion Applications, GBS Strategy and Change: Organization Change Strategy, GBS S&T: Organization and People - HR Transformation, IBM Global Business Services

Legal Information

© Copyright IBM Corporation 2013 IBM United Kingdom Limited PO Box 41 North Harbour Portsmouth Hampshire PO6 3AU United Kingdom Produced in the United Kingdom September 2013 IBM, the IBM logo, ibm.com, and Global Business Services are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the web at: www.ibm.com/legal/copytrade.shtml. This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. The client examples cited are presented for illustrative purposes only. Actual performance results may vary depending on specific configurations and operating conditions. It is the user’s responsibility to evaluate and verify the operation of any other products or programs with IBM products and programs. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided. Oracle Fusion Human Capital Management and Oracle E-Business Suite are not IBM products or offerings. Oracle Fusion Human Capital Management and Oracle E-Business Suite are sold or licensed, as the case may be, to users under Oracle’s terms and conditions, which are provided with the products or offerings. Availability, and any and all warranties, services and support for Oracle Fusion Human Capital Management and Oracle E-Business Suite are the direct responsibility of, and are provided directly to users by, Oracle. The client is responsible for ensuring compliance with laws and regulations applicable to it. IBM does not provide legal advice or represent or warrant that its services or products will ensure that the client is in compliance with any law or regulation. Statements regarding IBM’s future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only.