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LEGO Group Selects SuccessFactors to Drive Global Employee Performance Management, Automate Strategic HR and Accelerate Business Performance.

World's Fifth-Largest Toy Manufacturer to Deploy SuccessFactors to 5,000 Employees Across 32 Countries with Expected ROI of 18 Months on Efficiency Savings Alone

NEW YORK -- SuccessFactors, Inc., the leader in on-demand performance and talent management solutions, today announced that it has signed a contract with LEGO Group, one of the world's 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 18 months. The goals of the SuccessFactors initiative are to align employee efforts behind corporate goals and to gain better visibility into their worldwide talent by having employee data in one single system.

With a turnover of almost $1.4 billion, LEGO Group is the world's 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 carpenter's 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 review program which has been in place since 2002, both of which are Excel-based systems and were developed in-house, an intensive process that 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 and will include up to 5,000 people.

Continued Pedersen, "Our internal business case shows an expected return on investment within 18 months. We expect to save 105 days a year in transactional work on the HR side and save a further 600 to 800 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."

"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," said SuccessFactors CEO Lars Dalgaard. "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 company's 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 company's 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!

About SuccessFactors

SuccessFactors is the leading provider of on-demand employee performance and talent management solutions that enable organizations of every size, across every industry and geography, to realize their employees' potential and thus drive business results. Its hosted service is organically built from the ground up - providing a fully integrated, modular suite of performance and talent management applications that provide customers with immediate process benefits and tangible return on investment. Fueled by customer success, SuccessFactors currently has more than 1,300 customers with more than 2 million users in 156 countries and across 60 industries using the application in 18 languages. The company currently employs more than 500 people worldwide, all passionately focused on delighting customers through prompt and effective execution and constant improvement driven by customer feedback. SuccessFactors' customers include Kimberly-Clark Corporation, MasterCard Worldwide, Textron, Sutter Healthcare, Direct Energy, Quintiles Transnational, Volkswagen of North America, Lancaster General Hospital, and ( Founded in 2001, SuccessFactors has multiple offices worldwide collaborating for strong local support of customers.
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Publication:Business Wire
Date:Jun 5, 2007
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