DeLaval: Creating the Workplace of the Tomorrow with SAP SuccessFactors Solutions

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1 DeLaval: Creating the Workplace of the Tomorrow with SAP SuccessFactors Solutions DeLaval, a world leader in the dairy farming industry, wanted to attract the best talent available. It is on its way to achieving this with SAP SuccessFactors solutions, introducing a modern leadership style and a culture that stressed agility and flexibility. It standardized its HR processes, which created the foundation to modernize talent management and incentives.

2 Company DeLaval Headquarters Tumba, Sweden Industry Industrial machinery and components Products and Services Automatic and conventional milking systems, cooling and feeding systems, and farm management support systems Employees 4,500 Web Site BUSINESS TRANSFORMATION Objectives Build a high-performing organization driven by HR Increase transparency of talent data to make better business decisions Increase operational efficiency through common standardized processes and modern technology Achieved a single view of the global workforce with the SAP SuccessFactors Employee Central solution Defined desired behaviors and targets with year-long tracking with the SAP SuccessFactors Performance & Goals solution and support from Gavdi Fostered a culture of performance, internal mobility, and diversity with the SAP SuccessFactors Succession & Development and SAP SuccessFactors Compensation solutions Benefits Modern incentives and talent management processes More attractive and agile workplace Strong and clear governance for the most important HR processes and services 90% Of HR processes automated 100% Governance for HR processes 30% Expected cost savings for HR Partner Gavdi Read more SAP SuccessFactors solutions help bring our employee value proposition to life. We re creating an agile, flexible workplace where people will enjoy working and will want to stay long term. Mikael Landberg, Senior Vice President of HR, DeLaval 2 / 6

3 Building a high-performing organization To drink and eat quality food, it is important to look for quality at the source on the farm. In the field of dairy products, DeLaval is a leader in equipment and services that allow dairy farmers to improve the milking, cooling, feeding, and overall welfare of millions of dairy animals worldwide. For many of DeLaval s 4,500 employees, going to work means spending time thinking about the farmers daily life, and a large part of the personnel spends a lot of time on farms. Its employees are located in 42 countries, serving farmers scattered around the world. The company s outdated workforce management system stood in contrast to the high-tech solutions it offered its customers. We weren t walking the talk, says Mikael Landberg, senior vice president of HR at DeLaval. What we do for our farmers, we needed to do for ourselves. DeLaval s HR departments around the world worked in silos using paper, spreadsheets, and self-developed tools. As a result, management relied on their perceptions and assumptions when making decisions on rewards, performance, and development. This rudimentary approach to workforce management conflicted with DeLaval s vision to build a high-performing organization, supported by modern HR practices and technology. Landberg began a search for a way to introduce more transparency, more accountability, and better governance to DeLaval s key HR processes. Our culture needed to change to become more agile and flexible. And we needed a modern leadership style so that the organization could spend more time creating a more-attractive workplace. Mikael Landberg, Senior Vice President of HR, DeLaval 3 / 6

4 Creating a single view of talent management Landberg realized that in order to change the culture and make DeLaval a more attractive workplace, first it needed to get the basics right. That meant creating a single view of the workforce and standardizing its core HR processes. I wanted full automation of our HR data and processes so we could get away from perceptions and assumptions when talking about our staff, says Landberg. DeLaval first introduced the SAP SuccessFactors Employee Central solution, which created a complete résumé-like inventory of its talent and included the functionality to search for internal talent. Profiles showed managers what integrated HR data and automated HR processes were capable of, says Landberg. The 360-degree view of DeLaval s workforce proved very useful. Before that, we didn t know what kind of talent we had, what their salaries and job families were, or what the role of a job family was, explains Landberg. Managers had to ask HR for this kind of information, but without definitions and one place to go, the risk for mistakes and misunderstandings was high. The new HR system was named ORIGO. Landberg explains, ORIGO is Latin for origin. In math it refers to the focal point, and that s how I see it as the focal point for our HR activities. With a common HR system in place, DeLaval then revitalized performance management, goals management, and compensation using the SAP SuccessFactors Succession & Development solution, followed by the SAP SuccessFactors Performance & Goals solution. Our managers appreciate being able to define targets early in the year and follow up on them, gaining more visibility into their teams. Managers are empowered to access the HR data they need. Mikael Landberg, Senior Vice President of HR, DeLaval 4 / 6

5 Bringing the employee value proposition to life Today, DeLaval s HR department is more efficient and effective. Central HR costs have been reduced by 8% since 2012 when the cultural transformation began. The department is now armed with highquality data and reports, making it an important strategic partner for senior management in attracting talent. HR led the way in increasing transparency, professionalizing its processes, and creating better governance, says Landberg. This is speeding up the cultural transformation our company needs. With a modern HR system, DeLaval can focus on fulfilling its employee value proposition. Landberg stresses employees individuality and professional skills, and recognizes their desire to build exciting futures at the company through continuous training and career progression. We want to be an organization where people enjoy working because they are well informed, listened to, given responsibility, and assessed fairly, says Landberg. To support Landberg s vision, DeLaval revitalized its succession planning, incentives, and compensation practices. Previously, DeLaval had only one compensation ratio. The SAP SuccessFactors Compensation solution allowed the company to have a much better structure and principles around variable pay and to guide its future HR activities with defined key performance indicators for internal promotion, regretted loss, and gender and age diversity. In the past DeLaval s succession planning process lacked robust information on rising talent. We can finally spend more time executing our succession plans rather than chasing after data, says Landberg. We can build a more diverse workforce with younger talent and stimulate more internal mobility. We can t afford not to do this. 5 / 6

6 DeLaval Improving knowledge sharing and recruiting statistics Despite the SAP SuccessFactors solutions the company has introduced and the benefits they have yielded, Landberg believes that DeLaval is still at the beginning of its journey in using cloud-based talent software. One of the next stops will be the SAP SuccessFactors Learning solution, which will develop the competencies of its employees, train and certify its independent dealers, and train its customers. Landberg also wants to use this solution as a tool to share and transfer knowledge. DeLaval also plans to deploy the SAP SuccessFactors Recruiting Management solution. DeLaval recruits about 10% of its staff each year, but disparate recruiting tools are still used throughout the company. As a result, DeLaval doesn t have statistics on how many applications it receives or how long it takes to fill a vacancy. We need to raise the bar for track and trace in our recruiting activities, says Landberg, and we plan to do that with SAP SuccessFactors solutions (16/03) 6 / 6

7 No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. Please see for additional trademark information and notices. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE s or its affiliated companies strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

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