Best Practices for Optimizing Workforce Management

Best Practices for
Optimizing Workforce Management
Matt McKinley, Global Senior Business Systems Analyst, Nike, Inc.
Bret Molnar, Solution Engineer, SAP Retail
October 23, 2007

Agenda
1. Company Background
2. Workforce Management Strategy
3. Workforce Management Execution and Best Practices
4. Impact on Labor and Payroll Management
5. Future Initiatives
© SAP 2007 / Page 2

Company Background
Beaverton, OR
26,000 Employees
SAP customer since 1998
243 NIKE stores (104 US, 139 non USA)
Sales in 140+ Countries – Footwear, Apparel, Golf
Other Brands: Cole Haan, Converse, Hurley, Nike Bauer Hockey, Starter
© SAP 2007 / Page 3

Agenda
1. Company Background
2. Workforce Management Strategy
3. Workforce Management Execution and Best Practices
4. Impact on Labor and Payroll Management
5. Future Initiatives
© SAP 2007 / Page 4

Workforce Management Strategy
Prior to implementing the solution what were the key business issues you
were facing
- Consistency of scheduling practices
- Entry/maintenance of general employee information
- Timing of when managers should create and post a schedule
Traditionally there can be different company objectives (IT vs. Operations);
how do the teams collaborate to ensure a synchronized strategy
- Compile and consolidate information
- Sponsors create business case
- Collective leadership team reviews and prioritizes
© SAP 2007 / Page 5

Workforce Management Strategy
What were the major change management challenges that were faced and
how were they addressed
- Garbage In – Garbage Out
- Managers still need to make intelligent choices
- Address data accuracy through P&P
What top key performance indictors were established to measure success
and/or ROI
- Length of time to make a schedule
(goal based on volume and number of employees)
- % of Manual Edits (goal of less than 20%)
- Effectiveness of Schedule (goal of 70%)
- Labor % to Sales (goal based on individual store)
© SAP 2007 / Page 6

Agenda
1. Company Background
2. Workforce Management Strategy
3. Workforce Management Execution and Best Practices
4. Impact on Labor and Payroll Management
5. Future Initiatives
© SAP 2007 / Page 7

Workforce Management Execution and Best
Practices
What is your approach to rolling out the solution to new stores
- Train Operations Specialists first (1 per district)
- Implement in some pilot Stores w/ Specialists and materials
- Pass through Production Test
- Roll out by time zone
What is your approach to training
- Training guides, user guides, P&P, job aides
- Operations - Specialist Support
© SAP 2007 / Page 8

Workforce Management Execution and Best
Practices
What were some of the lessons learned from your implementation
- Allow process to make more dynamic configuration
changes – Business Needs to Own it
- Tighten down what stores are given access to
- Training needs to include analytics – how to use/apply the
information the solution provides
- Sustainable training strategy
What best practices are in place to support the business from an IT and
operational perspective
- The operations specialists (Ops)
- Help Desk w/ Knowledge Base (IT)
© SAP 2007 / Page 9

Agenda
1. Company Background
2. Workforce Management Strategy
3. Workforce Management Execution and Best Practices
4. Impact on Labor and Payroll Management
5. Future Initiatives
© SAP 2007 / Page 10

Impact on Labor and Payroll Management
How has the solution impacted customer service
- Improved - employees went from being scheduled early
(to get ready) and late (to clean up) to having schedules when
customers needed service
- Improved - during a given week managers were scheduling
heavy Monday-Thursday and light on our peak business
days (Friday– Sunday)
How has the solution impacted employee performance
- Employees scheduled when the customers are there
- Employees don’t feel alone or abandoned when it is busy
- Employees don’t come back to a disaster
© SAP 2007 / Page 11

Impact on Labor and Payroll Management
How has the solution impacted labor compliance
- Positive Impact on labor compliance
- Min/Max hours per day/pre week being complied with,
meals/breaks, etc..
- Schedules for minors
What practices are in place to monitor store compliance
- Currently look at a couple of key reports
- HR monitors data in regard to benefits
- Need to make improvements when move to WFM
© SAP 2007 / Page 12

Impact on Labor and Payroll Management
Mapping back to your original key performance indicators, how did you
perform in the first year and where do you stand today; have the key
performance indicators been expanded upon
Our metrics at the time as an average across stores were:
1-2 days to make a schedule
110% manual edits
30-40% effectiveness
1-2% over payroll budget % to sales (average)
The result again as an average after a quarter:
1-2 hours to make a schedule
20 – 25% manual edits
70-75% effectiveness
.5% decrease in payroll as an organization
© SAP 2007 / Page 13

Impact on Labor and Payroll Management
How often are these metrics reviewed; who reviews the information;
and what type of actions or measures are taken
- Daily and weekly depending on the metric by the store
management team – Detailed review of labor % and
scheduling metrics
- Monthly by DSD during visit – general discussion and
review of metrics and options/solution for
achieving or improving metrics if needed
- Quarterly by senior leadership – overall labor performance
versus budget and LY
© SAP 2007 / Page 14

Agenda
1. Company Background
2. Workforce Management Strategy
3. Workforce Management Execution and Best Practices
4. Impact on Labor and Payroll Management
5. Future Initiatives
© SAP 2007 / Page 15

Future Initiatives
What is your current go forward strategy to continue to improve upon
Labor and Payroll management
- Link performance to skill level
- Centralized Management (application/database)
- Centralized Reporting (BW) – more real-time access
- Configuration vs. Customization
- Expand use of business/volume drivers
© SAP 2007 / Page 16

Thank you!
Matt McKinley
Nike, Inc.
matt.mckinley@nike.com
Bret Molnar
SAP Retail
bret.molnar@sap.com
© SAP 2007 / Page 17