| Haggen invests in human performance with ARC HR analytics |
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| 26 Febuary 2008 |
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| Haggen supermarkets, an ARC customer has recently extended its business intelligence capability to improving returns on their human capital. The existing core human resources (HR) management system at Haggen focused on enabling basic HR processes with minimal reporting capabilities. |
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| Up until now, Haggen managed its HR analytic needs through extracting data from their legacy HR systems and other data sources, and creating analytic contexts manually. Haggen's fast growing business needed an efficient and committed workforce, and a plan was outlined to make improvements in processes and technologies around HR. |
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| Key drivers to improving human capital management: |
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Drive productivity, satisfaction for Haggen employees |
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Create a sustainable environment for improving customer service |
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Optimize and manage human resource lifecycle from recruitment to retirement |
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Understand and leverage the relationships between human productivity and store performance |
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Drive improvements through employee motivation and incentive programs |
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Establish measurable frameworks for improving human performance |
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Analysis capabilities to drive and support strategic HR initiatives |
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Establish an automated and scalable analytics technology for HR function |
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| Pain areas and obstacles for HR process improvement |
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| These needs are to be translated into various imperatives for a decision-making technology. |
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| For example, creating an effective compensation strategy needed the ability to closely monitor hours worked across various parameters like compensation, incentives, work time, previous performance track record, department, team and reporting manager to name a few attributes. |
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| Moreover, creating a competitive performance environment and commensurate reward mechanisms needed the ability to profile associates into performance categories and have the ability to benchmark performance across teams, roles and work types. |
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| Haggen also wanted to tie-in cost control to workforce management and drive overall productivity through measurable metrics and institutionalized processes. |
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| Extending enterprise business intelligence for HR analytics |
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| Haggen extended their enterprise business intelligence solution ARC - a product from Manthan Systems - as an HR analytic system that would power the whole spectrum of Haggen's decision-making needs around improving HR performance. |
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| ARC is a retail business intelligence solution equipped with pre-built metrics, key performance indicators and analytic frameworks for several functions in the enterprise including HR analytics. Haggen deployed ARC about 6 month ago, to enable their business intelligence needs across sales, merchandise and inventory areas. ARC's ease-of-use, rich analytic environment and extremely low maintenance architecture makes it easy to adopt and apply to all areas of the retail enterprise. |
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Citing ARC's ability to make business intelligence culture pervasive in their business, Haggen CIO Harrison Lewis says, |
| "The retail-specific capabilities of ARC has given our business managers a powerful platform for enabling their retail analytic needs as well as their decision making process across our enterprise." |
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| HR analytics - gaining focus and momentum as strategic advantage |
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| The recent development in Haggen is not surprising considering the growing awareness and interest in human capital management as a strategic area for competitive advantage. Many leading retailers today are establishing systems and processes to leverage the multi-faceted benefits of a better and smarter workforce. |
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AMR Research analyst Christa Degnan Manning explains in her report, HCM Market Outlook: Watershed Year for 2008, |
| "Many organizations are realizing their people are the source of the innovation they seek for competitive advantage, yet they have neglected and isolated the procedures, policies, and processes to attract and retain them." |
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| In an AMR Research report The Human Capital Management Spending Report, 2007-2008 by Christa Degnan Manning and Jennifer Hackbush, they mention, |
| "As globalization brings more recruiting competition and the challenge of retaining talent from an evermore shallow pool, companies of all sizes are increasingly investing in both core and strategic HCM software. The baby boom generation is retiring, and successive generations are unable to sustain expected growth levels either because of a lack of education and on-the-job experience or changing attitudes to employment. Investment in systems that support personnel engagement will be critical to success." |
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| Rapid deployment facilitates pervasive Business Intelligence adoption |
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| The deployment of HR analytics at Haggen has been quick, turned around from scoping strategic initiatives, defining measurable analytic frameworks to data integration in a short span of one month. ARC enterprise-wide retail data model is already equipped with a large library of HR analysis metrics and a data structure for taking in information from HR and sales source systems. This makes implementation and extension of the systems easy and quick, generating accelerated return on investment for the software. Haggen's HR analytic requirements cut across several technologies including Lawson, Kronos, JD Edwards and multiple custom-built solutions for leave management, benefits management and so on. |
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| The application pulls up data from various internal and external data sources like payroll applications, legacy/custom HR systems, ERP systems, financial systems, spreadsheets, industry benchmarks, labor market trends and labor regulations. The system is used by a broad user-base across strategic level HR executives, HR analysts, HR managers and reporting officers in key HR decision-making for over 4000 employees. |
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| Real benefits of a superior HR analytic framework |
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| With the advanced HR analytical capability of ARC, Haggen today leverages a strong HR decision-making environment, for example |
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Ability to analyze the complete hiring to retiring lifecycle of its human resources. |
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Complete compensation analysis to help design effective compensation benefits and policies by correlating compensation top performance targets, skill sets, seniority, and other factors. |
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The managers now have the ability to drill down from department level to employee level. They can also compare the performance of new employee vs. old employees. |
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HR managers at Haggen can do absenteeism analysis against various departments; remuneration type; time and absenteeism types. |
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This analysis helps in finding out the productivity (profitability / loss) and reduces the cost of the department. |
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The benefits administration reporting capability helps them in making decisions with regard to contribution, paid time-off and several other non-salary components. |
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| With succession planning analysis the decision makers have adopted a foresighted view to assess organization's readiness. Alerts have been set if the retirement headcount reaches or exceeds forecast limit. To successfully implement the succession plan key measures like top 10 career paths, performance assessment and attrition rate by job functions, have been substantial. |
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| The deployment will help Haggen to analyze the performance of its associates over the years and track their progressive growth in the organization. Other important analytic areas enabled are headcount analysis, benchmark analysis and risk analysis. Departments can now measure their own performance within HR scorecard against their planned targets. |
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| The Bottom-line |
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| With strong process and technology, Haggen has made a huge leap towards institutionalizing an area that can make the difference for them as they grow their food and grocery retailing business in the coming years. |
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| Haggen will make Human Power work for their business. ARC is making business intelligence work for Haggen. |
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| Contact us to learn more about this story. |
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| About Manthan Systems |
| Manthan Systems is a provider of specialized software solutions for the retail and consumer goods industries. Manthan helps retailers capture and process data that can be leveraged to improve planning, monitor results, analyze and anticipate changes, and mine opportunities. Manthan understands retail business practices and their technology underpinnings having worked with a wide range of retailers and consumer goods companies including Woolworths Germany, Haggen Supermarkets, Game Stores Group, Robinsons Retail Group, Ferré, Total Hypermarkets, Castorama, Ecco Sko, McDonalds, Loblaws and Haggar Clothing Co. For more information, please visit www.manthansystems.com. |
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| Press Contact |
| Media enquiries | media.contact@manthansystems.com | +91.80.2299.0585 |
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