Alcatel-Lucent: Exceeding the Expectations of Tomorrow s Workforce with SAP SuccessFactors Solutions

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1 Alcatel-Lucent: Exceeding the Expectations of Tomorrow s Workforce with SAP SuccessFactors Solutions When the HR organization at Alcatel-Lucent set the target of reducing costs by 30% within two years, it decided to turn cost cutting into an entirely new way of delivering HR services. SAP SuccessFactors solutions, in combination with other restructuring measures, helped create a lean and connected HR organization that appeals to today s digital generation.

2 Company or Alcatel-Lucent Headquarters Boulogne-Billancourt, France Industry Telecommunications Products and Services IP networking; ultrabroadband access (fixed and mobile); cloud technology Employees 52,600 Revenue or 13.2 billion (2014) Web Site Partner Accenture BUSINESS TRANSFORMATION Objectives Simplify and harmonize global HR processes Adapt the HR organization to the digital age Empower employees to process their own data Enable managers to assume responsibility for managing their own teams Introduced the SAP SuccessFactors Employee Central solution as the new core HR IT platform Implemented SAP SuccessFactors Compensation solutions as the basis for a remuneration and bonus allocation system Hired Accenture as system integrator and consultant to roll out the project and as partner for business process outsourcing Benefits Significant cost savings in HR Modern, connected organization that enables HR to concentrate on strategic business priorities that support future growth One global view of the workforce for better identification and retention of key talent Read more HR was dominated by administrative processes in the past. By streamlining the organization and introducing cloud solutions, we supported the modernization of the entire company. Laurent Geoffrey, Head of the HR Transformation Program, Alcatel-Lucent 30% Reduction in HR costs 1 platform For HR IT, replacing 60 disparate systems 95% Of all global HR processes harmonized 1 view Of the global workforce for better identification and retention of key talent 2 / 6

3 Turning a challenge into an opportunity Today s on-demand generation has completely different expectations than their parents. In the past, people were happy flipping through weekly TV program magazines and turning on a show at a predetermined time. But today s digital natives want to watch their favorite series and stream their favorite songs anytime, anywhere, and from any device. This shift in behavior has led to a rapid rise in the demand for bandwidth to handle all that data traffic. This is why Alcatel-Lucent took a bold step in June of 2013 when it decided to transform from a traditional telecommunications equipment provider into a specialist for next-generation networks, cloud technology, and ultrabroadband access. Called the Shift Plan, the new strategy aims to secure Alcatel- Lucent s long-term profitable growth and position it to invest in the networks that consumers and business need in the future. As part of this new strategic focus, sales and administrative departments had to deliver 1 billion in fixed-cost savings by the end of For its part, HR needed to contribute cost savings of 30% in their operations. It was a daunting task. But instead of viewing it as a project to save money, HR realized it was an opportunity to completely reengineer the way its services were delivered across the company. Specifically, it wanted to make employees the owners of their data, thereby freeing up the HR team to focus more on talent issues in support of the Shift Plan. We knew that by empowering employees with self-service options to manage their HR information and profiles, we could free up time to concentrate on more-strategic tasks Laurent Geoffrey, Head of the HR Transformation Program, Alcatel-Lucent 3 / 6

4 Closing the digital gap between the office and home Alcatel-Lucent embraced the cloud to create a socially connected enterprise that empowers its people. We believe the cloud is the future of HR and that by implementing cloud-based HR solutions, our company can take a big step forward, said Laurent Geoffrey, head of the HR transformation at Alcatel- Lucent. Alcatel-Lucent chose the SAP SuccessFactors Employee Central solution as its global core HR IT system, replacing more than 60 local, disparate systems. It also deployed the SAP SuccessFactors Compensation solution to modernize its compensation process. Compensation is part of any core HR system, so it was important for me to integrate that at the same time as SAP SuccessFactors Employee Central, says Geoffrey. The main reason for selecting SAP SuccessFactors solutions was that they matched Alcatel-Lucent s vision for the new HR ecosystem it wanted to create one that was agile, fast, personalized, interactive, and connected. I was looking for a long-term strategic partner to be part of our new ecoenvironment, explains Geoffrey. I don t want to develop an on-premise system every time a law changes. With SAP SuccessFactors solutions, I automatically get quarterly software releases, including the legal changes for the various countries. Also, SAP s large international presence was important to us because it meant it could support us in all 100 countries. Its new HR ecosystem also anticipated moving operations that could be performed remotely to external vendors like Accenture. We felt it was in everyone s interest to outsource activities to partners who consider the activity their core business. Around half of Alcatel-Lucent s headcount was outsourced. Accenture also did the system integration of the new solutions. 4 / 6

5 Putting employees in charge of their HR management With all core HR data on one cloud platform, employees can update their personal and professional information themselves. Employees are now in charge of their HR data and line managers can directly access the information they need to manage their teams and run their business eliminating HR as the middleman for a certain number of tasks. A line manager in the field knows his or her team ten times better than anyone in HR, so why not put the right tools in their hands, says Geoffrey. The self-service functionality is intuitive with a modern interface, mirroring the digital experience employees are used to in their private lives. Deploying a cloud solution forces you to harmonize your HR processes at a local, regional and global level, says Geoffrey. That is the only way to create the shared process required to enable employees to manage their own data. Geoffrey believes that offering a modern digital experience is a competitive advantage in attracting talent. And, because Alcatel-Lucent now has one view of its workforce, it is in a stronger position to identify key talent across its global operations and undertake actions to retain it. Alcatel-Lucent harmonized 95% of its processes, creating a streamlined HR organization and resulting in significant cost savings. Instead of delivering administrative processes, the HR team today delivers real business value because it can concentrate on strategic workforce planning and talent management that supports business strategy. When you deploy cloud solutions you need to rethink how you want to be organized in HR. That is where the real potential of transformation lies. Laurent Geoffrey, Head of the HR Transformation Program, Alcatel-Lucent 5 / 6

6 Alcatel-Lucent Introducing more solutions in the future Self-service functionality has been strongly embraced by staff so much so that managers are now asking for more. They are very happy that they can handle a lot of tasks themselves, says Geoffrey. Now they want even more self-service, especially for HR reporting and data analytics (16/03) 6 / 6

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