Worlds Fifth Largest Toy Manufacturer to Deploy SuccessFactors to 5,000 Employees Across 32 Countries with Expected ROI of 18 Months on Efficiency Savings Alone
SuccessFactors Inc., a leader in on-demand performance and talent management solutions, has signed a contract with LEGO Group, one of the worlds market leading toy companies. LEGO Group will be deploying SuccessFactors Performance Management, Compensation Planning and Total Goal Management modules to its 5,000 employees across 32 countries with an expected return on investment of just eighteen months. The goals of the SuccessFactors initiative are to align employee efforts behind corporate goals and to gain better visibility on their worldwide talent by having employee data in one single system.
With a turnover of almost $1.4 billion (DKK 7,823m), LEGO Group is the worlds fifth largest toy manufacturer and one of the most well known brands in the market. Founded in 1932, ownership of the company has been passed down from three generations of the same family, growing from a small carpenters workshop to a thriving, modern, global enterprise. The company has been using a Performance Management program which has been in place since 1999 and a People Review program which has been in place since 2002, both of which are Excel-based systems and were developed in-house. The process was resource intensive and required heavy administrative support. LEGO Group conducted a thorough market evaluation of several vendors before deciding to adopt and globally standardize on SuccessFactors performance and talent management solution.
Despite the solid processes Lego has in place, our internally developed performance management system requires an enormous amount of resources to gather all the necessary data and manage it in an Excel format, said Soren Pagh Pedersen, Senior Director, HR, LEGO Group Lego also runs the risk of having invalid data due to complexities, lack of professional IT solutions around the programs and heavy administrative overheads, all of which made it imperative to switch to a more robust, market-tested solution like SuccessFactors.
We felt SuccessFactors was the most mature system on the market, and their people showed the best insight and expertise about what it takes to actually run and manage a professional HR system, added Pedersen. In particular, we liked the fact that SuccessFactors could easily adapt to our existing system in terms of look and feel. This means that in addition to the many benefits it will bring, it will also be the least disruptive to introduce as it adapts extremely well to our existing way of working. It was also important for us to have an effective means of managing our senior management. We wanted a smoother workflow and the ability to have a consistent, historic track record of all of our employees and managers.
LEGO Group will be implementing SuccessFactors in a phased rollout. Initial deployment will begin in August 2007 to a limited group of 300 people in a cross section of the company, mainly middle management and higher. Full deployment will begin in November 2007 which will include up to 5,000 people.
Continued Pedersen, Our internal business case shows an expected return on investment within eighteen months. We expect to save 105 days a year in transactional work on the HR side and save a further 600-800 man days in the business annually. The Software as a Service pricing model fits with where our business is heading and we believe SuccessFactors can grow and adapt with us over time.
SuccessFactors CEO Lars Dalgaard, added, I may be the CEO of a global software company, but as someone who grew up in Denmark, I am incredibly proud that a great company such as LEGO Group chose to partner with SuccessFactors. We are looking forward to helping this great company achieve even more success in the future.
Moving forward, Pedersen and his team will also be reviewing and scope additional potential areas of functionality, including SuccessFactors Succession Planning module.
About LEGO Group
The companys corporate headquarters are located in Billund, Denmark with subsidiaries and branches throughout the world, and LEGO products sold in more than 130 countries. The name LEGO is an abbreviation of the two Danish words leg godt meaning play well, which remains at the heart of the companys vision today. Approximately 17.8 billion LEGO bricks and other components are made every year equivalent to approximately two million bricks an hour, or 33,824 a minute!
SuccessFactors delivers performance and talent excellence, on demand. The companys software promotes visibility, accountability and results, enabling organizations to eliminate the politics that destroy motivation and impede performance. Fueled by the industrys highest renewal rate, SuccessFactors has grown in the past 12 months from 346 customers to over 1,300 customers and from 1 million users to over 2 million users in 156 countries, across 60 industries, and in 18 languagesall while becoming easier to use. During that period, the company nearly doubled its employee base, currently employing over 450 people, passionate about effective human capital management. Carefully managed and executed internal growth has allowed the company to provide the same caliber of absolute excellence in execution for customers that catapulted SuccessFactors into the product, customer and revenue leader in the performance and talent management space. Customers include Kimberly-Clark Corporation, MasterCard Worldwide, Textron, Sutter Healthcare, Direct Energy, Quintiles Transnational, Volkswagen of North America, Lancaster General Hospital and Salesforce.com. The company continues to execute at a level of global excellence by providing an industry-leading, scalable and secure global hosting operation. Founded in 2001, SuccessFactors has 15 worldwide offices collaborating for strong local support of customers.