Walgreens - Aligning Execution with Strategy using SAP BusinessObjects
SAP Customer Success Story Retail WALGREENS Linking StRategy and execution with SaP® Businessobjects™ tooLS Quick factS“Getting the right information in front Company SAP® Solutions and Services • name: walgreen co. • SaP® Businessobjects™ enterprise of people quickly and easily is the key. • headquarters: deerfield, illinois software SAP BusinessObjects software enables • industry: Retail • SaP Businessobjects web intelligence® • Products and services: Prescription software us to connect our HR strategy directly medication, over-the-counter healthcare • SaP Businessobjects desktop items, and general merchandise intelligence™ software to actionable insight and execution. • Revenue: uS$63.3 billion • employees: 238,000 Why SAP This is truly transformational for • already the reporting and analysis • web site: www.walgreens.com Walgreens.” standard in other divisions at walgreens Challenges and Opportunities • Reporting created from a single, Joseph F. King, corporate Manager, hR Planning, • accelerate reporting processes by using comprehensive source Systems training and consulting, walgreens integrated software • integrated solutions that complement • advance the hR team’s goal of ensuring each other retention of high-performing associates, in both store front-end and pharmacy Benefits positions • Put employees with the right talent • create a single, consistent repository of in key positions employee data by implementing a uniform • continue the company’s historical solution growth trend • improve talent management by simplifying • help management identify areas where access to information it needs to focus more attention • examine trends in employee turnover Objectives • get the right information in front of • feed data from multiple sources into a people quickly central employee data warehouse • integrate transaction systems and provide a single source of business insight • Provide critical insight into the effectiveness of retention policies
with 238,000 employees, 23,000 pharmacists, fiscal year 2007 software which was already used by other divisions within walgreens.revenue of uS$63.3 billion, and more than 6,000 stores across although walgreens health Servicesthe united States, deerfield, illinois–based walgreen co. runs has the largest deployment of the divi- sions, the hRiS group manages andwalgreens, the leading retail pharmacy chain in the united States. distributes the foundational employeeevery day, nearly 5 million customers walk through the doors of a data that keeps all the stores humming. “our corporate focus is on store growth,”walgreens store. Many are there to pick up prescribed medications says king. “to support that focus, hR– walgreens pharmacists filled more than 580 million prescriptions needs to understand where the talent comes from, how best to leverage it, andlast year. others take advantage of a broad merchandise selection what kind of talent we’re losing due toaveraging 25,000 different items per store. turnover. SaP Businessobjects soft- ware delivers the insight we need to ensure that we retain high-performingthe retailer’s mission is to provide the reporting process was cumbersome associates for merchandising as well asmost convenient access to healthcare and time-consuming for the hR infor- our strategic pharmacy area. gettingservices and consumer goods in the mation systems (hRiS) group, which the right people in place for store growthunited States. with 33 consecutive years had to use several desktop tools to is a key area of emphasis for us,” sum-of record sales and earnings, the com- merge the disparate data sets. king marizes king.pany’s growth strategy is clearly working. recalls, “we would get mainframe data, along with text files from other sources, hRiS now has a comprehensiveJoseph king, corporate manager of and we’d literally spend hours on a one- system that feeds data from multiplehR planning at walgreens, works by time project. it was a nightmare.” information sources through an extrac-a key walgreens strategy for future tion, transform, and load (etL) processstore and earnings growth – attracting Meeting the Challenge into a central employee data warehouse,and retaining top talent. he is excep- against which reports generated withtionally glad to have SaP on his team. after first attempting to solve its staffing- SaP Businessobjects tools are run. related reporting and analysis challenges information sources include payroll; hir-Prior to implementing SaP® by using an enterprise resource planning ing; benefits automation; learning man-Businessobjects™ enterprise software, (eRP) package, and then with a replace- agement; and transactions related topart of SaP Businessobjects business ment database, hRiS reassessed its position, location, and status. a richintelligence (Bi) solutions, walgreens requirements. “we identified all the set of semantic layers created with SaPused a mainframe-based legacy system information sources we had related to Businessobjects tools enables hR toto drive all hR-related activity at the firm. hiring and retention, including who used create timely, accurate reports onthe company later introduced multiple the information and how they were using employee population and staffingweb-based applications for time clocks it,” says king. “we envisioned a future requirements. “our design goal wasand hiring, as well as for tracking changes in which all data associated with an to integrate the different transactionin the position, location, and status of employee would come from a single, systems and provide a single sourceemployees. the resulting reports were consistent data repository,” adds king. of business insight into the entire com-sent to store operations management pany,” says king. “SaP Businessobjectsand to specialty groups such as insur- the company’s requirements analysis software has been pivotal in helping usance, benefits accounting, and tax. the led to SaP Businessobjects enterprise, meet this goal.”
“HR needs to understand where the talent comes from, how best to leverage it, and what kind of talent we’re losing due to turnover. SAP BusinessObjects software delivers the insight we need to ensure that we retain high-performing associates for merchandising as well as our strategic pharmacy area. Getting the right people in place for store growth is a key area of emphasis for us.” Joseph F. King, corporate Manager, hR Planning, Systems training and consulting, walgreensEnjoying the Results By using SaP Businessobjects tools Planning for the Future to examine trends in employee turnoverhR’s focus on putting employees – for example, if quality employees in the near future, walgreens planswith the right talent in key positions is are leaving and, if so, for what reason – to implement SaP Businessobjects xiessential to helping walgreens continue walgreens assesses store performance solutions as the standard for all groupsits historical growth trend. king notes that against hiring and retention goals. “we that use Bi software. for now, kingone strategy is to hire assistant manag- use metrics from SaP Businessobjects is more than pleased with the benefitsers or management trainees with col- tools to see if we’re supporting our goal already realized. “in the highly competi-lege degrees. “not so long ago, about of store growth,” said king. “we are. tive retail pharmacy environment, exe-a quarter of our management hires had we’re keeping the good performers,” cution is all-important – and gettingfour-year degrees,” he explains. “now adds king. the right information in front of peoplethat number is over 60%. we’ve made quickly is the key,” he says. “SaPa conscious effort to bring in more and then there’s the “key list.” although Businessobjects software enables uscampus hires, with the long-term goal not a strategic application, king notes to connect our hR strategy directly toof building the management pool. SaP the key list has made people’s lives eas- actionable insight and execution. this isBusinessobjects software makes it ier. he says, “every month, administra- truly transformational for walgreens,”easier to query the data and get a snap- tive assistants in more than 200 district reports king.shot view of where we stand on this offices around the country manuallyimportant metric.” assembled a list of assistant managers“We’ve created a report in SAP BusinessObjects software that shows turnover by region and district over a 12-month period, compared to the overall chain average. This provides critical insight into the effectiveness of our retention policies and helps management identify areas where it needs to focus more attention.” Joseph F. King, corporate Manager, hR Planning, Systems training and consulting, walgreensemployee turnover reports are also and pharmacists, complete withcritical. “we’ve created a report in address and phone number. that way,SaP Businessobjects software that if the district manager received a callshows turnover by region and district that someone was sick, it was easy toover a 12-month period, compared to find someone else with a key to closethe overall chain average,” says king. the store. with SaP Businessobjects“this provides critical insight into the solutions, we prepare these lists cen-effectiveness of our retention policies trally and distribute them electronicallyand helps management identify areas to the various district offices. thewhere it needs to focus more attention.” assistants love us,” enthuses king.