The Co-operative Group is moving its HR systems to the Oracle cloud to simplify its complex technology landscape. The key drivers for moving to the cloud include reducing complexity, breaking down silos, keeping the system simple, reducing costs, and gaining flexibility. The multi-year OneHR program will transition the group's HR functions such as recruitment, performance management, and analytics to integrated cloud systems from a single vendor. The implementation roadmap includes quick wins, piloting new systems, and a full transition with the goal of stabilizing cloud-based HR services.

1. Our Journey to Cloud
February 2016
Speaker: Ioannis Boutaris
HR Technology & Analytics Manager
HR Shared Services
Contact Details
https://uk.linkedin.com/in/boutaris

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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
20142012 - 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

8. 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 CustomisationsIntegrated
Flexible
Adaptable
BYOD Enabled

9. 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

10. 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
Accessibilit
y 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

11. Implementation Roadmap – Latest Update
11
20172014 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

12. The co-operative – Our Journey to Cloud
12