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SSON 12th Annual European Shared Services & Outsourcing Week: HR Transformation

Game Changing Technology: The Powerful Opportunity Behind HR 2.0 – SaaS, Workforce Analytics, TM Systems & What’s Next.......

Andy Moffat, HR Director, Aviva Europe

May 2012

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How Aviva Addressed This Subject

1. Introduction to Aviva

2. Why Saas/Cloud Technology was the Right Choice for Aviva ?

3. Now We Are Live, What’s SaaS/Cloud Really Like to Live With?

4. Looking Forwards, What’s Next?

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Aviva: A 300 Year Heritage

1861

1865

1797

1696

1998 2000

2002

London & Edinburgh 1998

1905 Hand in Hand

2005 2006 2009

One Global Brand Aviva

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Aviva Facts And Figures

We have worldwide sales of £47 billion

We have 36,100 employees worldwide

We have £263 billion of funds under management

The world’s sixth largest insurance group

44.5 million customers worldwide

Aviva, a $6 billion global brand

300 years of history We operate in

21 countries, with focus on 12 core markets

We’ve insured everyone from Sir Isaac Newton to

John F Kennedy

We sponsored Dee Caffari, the first woman

to sail non-stop both ways around the world

60,000 hours of employee volunteering in 2011

The largest insurance services provider in the UK

Aviva Markets 2012

•Canada •China •France •Hong Kong •Lithuania •Malaysia •India •Indonesia •Ireland •Italy •Poland •Russia •Singapore •South Korea •Spain •Sri Lanka •Taiwan •Turkey •UK •USA •Vietnam

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Why Aviva Chose Saas/Cloud Technology for its HRMS: Workday

Workday is a Software as a Service (SaaS) solution, i.e. a software delivery model where a software vendor develops a web-native software application and hosts and operates the application for use by its customer over the internet through a single subscription fee.

What Workday

manages for Aviva

Upgrades Patches Availability Backup Network Storage Operating system Database Integration Provisioning Security Data center Disaster recovery System maintenance Performance tuning

Why Aviva Benefits

Ability to leverage the best of the web

Cheaper & faster than ERPs of similar scope and scale

Rapid delivery of new functionality (3 releases per year)

Immediate improvement of HR operations through best practice

Ability to dynamically maintain & measure

Data security complying with our data protection requirements

What Aviva gets for its money

Newest in Innovations

Rapid implementation

Immediate upgrades

Lower operating costs

Better service levels

Comprehensive Security

Discipline & Governance Forced to stay vanilla as configuration not customisation

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Now we are Live, What’s SaaS/Cloud Really Like to Live With – The Positives?

• 3 Releases a year ensuring on-going global compliance and introducing new functionality you can adopt when you want eg Performance Mgt

• Ease of Configurability – Configuration in HRs hands not dependant on IT availability (although configuration does require some governance oversight)

• Single instance – global data available instantly to support decision making

• Access any time anywhere through mobile devices – ipad, iphones, blackberries

• Ease of Use - Modern look and feel naturally driving high levels of employee adoption with low training requirements.

• Cost of ownership: New functionality included within regular releases eg succession planning; annual reward and bonus cycle; global mobility

• Single platform facilitated the creation of HR Shared Services

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Now We Are Live, What’s SaaS/Cloud Really Like to Live With – Lessons Learned

• Initial disbelief in speed of deployment particularly amongst third party incumbant suppliers - strong change management needed for all parties that are not familiar with Saas/Cloud technology

• Upfront definition of data dictionary critical to maximising global MI & Reporting benefits

• Put in place governance to minimise configuration variation by country/function to minimise overhead from new release testing. This governance has to continue in BAU.

• Scarcity of experienced resources

• Dependant upon supplier for new functionality so need to take an active role in appropriate communities to shape and influence demand for new functionality

• Whilst self service is intuitive, continued monitoring is required to continue to drive high self service utilisation levels

Example Utilisation Metrics

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ESS Compliance MSS Compliance 95% 88%

Business Process ESS HR MSS Total Blueprint %

Compliance Change Marital Status 13 13 ESS 100% Change Personal Information 2 2 ESS 0% Change Photo 4 4 ESS 100% Change Primary Address 18 1 19 ESS 95% Correct Date of Birth 4 4 ESS 100% Correct Time Off 64 6 70 ESS 91% Create Primary Address 5 5 ESS 100% Manage Goals 85 85 ESS 100% Move Worker 1 1 2 MSS 50% Request Compensation Change 1 1 MSS 0% Request Delegation Change 16 1 17 ESS 94% Request Leave of Absence 66 20 15 101 ESS 65% Request Return from Leave of Absence 52 14 7 73 ESS 71% Request Time Off 496 5 501 ESS 99% Set Review Content for Performance Review 515 1 516 ESS 100% Terminate Employee 1 11 12 MSS 92% Transfer Employee 3 30 33 MSS 91% Grand Total 1338 55 65 1458

Current state:

System utilisation and blueprint compliance results continue to be very good in Spain. A lot of work has been put into encouraging the managers to use MSS and supporting them in doing so.

Low compliance in some transactions is related to exceptional cases when the manager is external and not easily available.

Next Steps:

We will look closer into possibility of differentiating planned leaves from unexpected ones as well as into possibility of treating LoA-related processes as MSS or HR (exceptionally) and not as ESS.

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Looking Forwards

• Great source of global data – Maximise the use of this data particularly focussing on resource planning, talent management and succession planning

• Digital media is creating additional data that we need to be actively using to continue to improve services eg listening audits, web page on which candidates abandon etc

• Optimising the use of new functionality to take maximum advantage of what’s available in the core product

• Increased virtual and cross border working making mobile technology even more important

• Moving to predictive analytics

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Looking Forwards – What’s Next for Aviva...

Software-as-a-Service

End-user applications delivered as a service

Significantly lower run cost of ownership for Aviva

Mobile Technology

Gives self-service access to data to run our business effectively

anytime, anywhere

Recruitment Technology Learning Management Solution

Saas Based Integrated LMS via preferred supplier

Digital Media Strategies

Currently reviewing how digital media could provide more effective ways to

attract talent to Aviva. Piloting a number of different approaches to inform our

digital media strategy

Workday will be our primary, single source of HR record globally and with the fully integrated learning solution (Cornerstone OnDemand) and recruitment technology provides our core HR technology offering globally.

Data Warehouse, Data Archiving & Document

Management Strategies

Currently reviewing whether we need A data warehouse, approach to data Archiving and document mgt strategy

Saas based candidate tracking and CRM solutions

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© Aviva plc 2009

Thank You & Questions

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© Aviva plc 2009