Transforming customer service at a key turning point

A global data storage provider turns to KPMG and ServiceNow

Client

A leading data storage provider

Sector

Technology

Primary goal

Replace existing CSM system

Primary platform

ServiceNow

 

In just a decade, our client has evolved from a data storage manufacturer to a service provider with thousands of customers worldwide. In 2021, the company decided it was time to take their customer service function to the next level. Their Customer Service Management (CSM) platform had become hard to manage, and scaling it for future growth would be even harder. Management turned to KPMG LLP (KPMG) and workflow platform provider ServiceNow to implement a new CSM solution that would deliver an even better experience for end users and the customer service engineers who interact with them.

Key outcomes

One connected,

automated, scalable CSM solution integrating more than 15 applications

Reduced complexity,

streamlined workflows, faster response times

Improved data quality

on customers, accounts, cases, and more

 

Client transformation journey

Click on each part of the journey to learn more about our client’s transformation.

 
  • Where they were
  • Where they are
  • Where they’re headed

Where they were

Looking for the “one way” forward after acquisition-fueled growth.

Albertsons is committed to “one way.” Meaning that, as large as the company becomes, it aims to remain unified in its vision and in the systems and tools that support it. 

Acquisition-fueled growth naturally opens the door to “many ways.” By 2019, different divisions and subsidiaries had their own back-office solutions. People, processes, and data were becoming more siloed.

A different kind of company might have assumed that decentralized processes are an acceptable consequence of multiple acquisitions. Or that you can’t be one of the biggest industry players and move with startling speed and agility when it comes to acquisitions. But accepting trade-offs like those is not the Albertsons way.

Company-wide opportunities

  • Replace nearly XX aging applications that differed across divisions and subsidiaries
  • Reduce manual, disparate processes freeing up more resources for advanced analytics
  • Enable enhanced reporting and make it more widely available across the enterprise
  • Act with greater speed and agility to capture value in acquisitions

Finance Opportunities

  • Process XXX,XXX transactions per month with greater efficiency
  • Reduce 10,000+ manual journal entries per period
  • Decrease >3-week close
  • Shorten the >3-month annual budgeting cycle
  • Provide better support for a growing e-commerce busines
  • Control rising finance function costs and derive greater value 

HR Opportunities

  • Decrease hiring and onboarding times to keep pace with staffing needs
  • Be more efficient in complying with more than 800 collective bargaining agreements and dozens of government contracts
  • Introduce enterprise-wide training programs
  • Unify and automate workforce administration processes across the enterprise

Where they are

290,000+ Albertsons employees come together every day in the cloud.

Today, cashiers at 2,200 stores all log their hours via the same mobile app. That data flows seamlessly to payroll, and across the enterprise-- where it’s available for everyone from store managers making data-driven staffing projections to CFOs reviewing budgets.

Back-office staff spend less time on manual processes and more on analyzing data in ways that help lower costs and improve performance every day, and inform due diligence during acquisitions.

HR executives and business managers find it easy to access candidate information, share observations and schedule interviews, quickly and easily moving the right candidates through the hiring process.

And candidates who become new hires, continue through the same efficient, cloud-based environment as they complete onboarding and get to work—already a part of Albertsons’ “one way.” 

Company-wide success

  • Installed a single, modernized digital platform serving the entire enterprise
  • Accelerated the project schedule by XX-months due to a dual-installation of Finance and HR
  • Migrated 290,000 employees from legacy systems to Oracle Cloud
  • Increased insight-driven decision making across functions, driving performance and growth gains

Finance Successes

  • Decreased balance sheet reconciliations by 85%
  • Achieved a consolidated retail and corporate close within a shortened period
  • Reduced the types of P&L statements from 100+ to 4
  • Reduced operations costs across the board
  • Enhanced availability of data-driven insights that help to capture maximum value during acquisitions

HR Successes

  • Installed an automated, central solution to efficiently administer 800+ complex union agreements for all employee populations
  • Deployed a custom application for union rule processing enabling a single HCM platform to administer benefits to all employee populations
  • Created a digital-first, digital anywhere experience resulting in higher employee engagement
  • Reduced new hire onboarding time
  • Reduced the time it takes to fill staffing vacancies
  • Streamlined and improved the process integration of new employees post-acquisition
  • Integrate processes and technology across the employee lifecycle from recruiting through compensation and performance

Where they’re headed

Making sure the “one way” continues to be the best way.

Long before the go-live date, Albertsons was collaborating with Oracle and KPMG about future initiatives. They wanted to know what to expect from upcoming product releases and how they should be planning to leverage new functionality.

The company’s agile mindset combined with its investment in Oracle Cloud and KPMG Powered Enterprise will keep it in a position to continue evolving, always finding the best way forward as one, strong enterprise.

Company-wide vision
  • Continue to enhance analytics-driven planning and forecasting
  • Optimize the supply chain

Finance Vision

  • Achieve a continuous, virtual accounting close
  • Increase data monetization 

HR Vision

  • Migrate payroll, benefits, and absence mangement to Oracle cloud for 2023
  • Insource benefits administration

 

From the start our goal was to deliver a leading experience not only for the client’s customers, but also for the customer service engineers who interact with them. To accomplish this, we adopted a “One Team” approach to working with the client and our technology partner, ServiceNow. Throughout the engagement, if you walked into our war room you really wouldn’t have been able to tell the difference between a KPMG person, a client, or a ServiceNow person. It was just one big team.

— Mark Bower, Managing Director, Platforms, KPMG LLP

A single KPMG team with a five-phase plan

Click on a phase to scroll down to its description.

     
     
     
     
     
     
     
     
     
     

1. Vision phase


Starting at phase zero

KPMG had previously advised the client on implementing ServiceNow for back-office IT service management. While ServiceNow is widely recognized for its expertise in this area, its ability to integrate with other technology means that it can also be used to transform many other workflows. The IT project helped convince management that ServiceNow could also be used to transform customer service. Because service and support are so central to the company’s value proposition and reputation, KPMG began by conducting extensive pre-project planning sessions. This “phase zero” activity helped set a clear path for the real work to come. Key issues addressed included:

  • Defining a Target Operating Model by validating current CSM operations against leading practice
  • Prioritizing CSM implementation requirements and prototyping use cases
  • Establishing an organizational change management strategy
  • Creating a detailed capability roadmap.
     

2. Validation phase


Building buy-in from engineers and end users

While the client’s chief information officer and customer experience team were strongly committed to transforming CSM, they understood that gaining acceptance from the engineers providing service, and the customers receiving it, would be critical. Despite the lack of ability to scale the existing CSM platform, most internal users were accustomed to it and were justifiably proud of the leading support they consistently delivered. Planning and training sessions helped show them how learning the new ServiceNow system would make their work simpler, more efficient, and scalable to a larger base of customers. At the same time, user experience testing with a trial group of customers was used to gather feedback and prepare the wider user base for the new system’s launch.
 

3. Construction phase


Three teams working for a holistic solution

The extensive planning and validation made it clear that upgrading the CSM system to meet the company’s exacting standards would mean much more than just installing new software. To help ensure that training, adoption, and acceptance were achieved smoothly across the organization, KPMG assembled a cross-functional team that combined our experience in three areas:

  • The KPMG ServiceNow Practice: Our ServiceNow specialists brought in-depth knowledge of the company’s software and related technologies. KPMG is a Global Elite ServiceNow partner with more than a dozen ServiceNow certified master architects.
  • Customer Solutions and Operations: KPMG specialists with experience addressing processes and functional issues specifically related to customer service. They worked closely with the client’s own customer service team to set goals, define better processes, establish metrics, and manage and share service data.
  • Human Capital Advisory (HCA): After consulting with management, users, and other stakeholders, the KPMG HCA team built an entire communication plan, using company newsletters, blog posts, and other channels to prepare internal users and customers for the changes ahead. They also provided training and managed feedback and questions from both groups.

Together these teams created a program addressing six workstreams: cases; integrations; reporting; knowledge and communities; organizational change management and training; and data/platform security. To save time and maintain flexibility, an Agile methodology was used during the 16-sprint build cycle. 
 

4. Delivery phase


A smooth launch delivers immediate benefits

KPMG conducted extended user acceptance testing (UAT) sessions to confirm that all user feedback was collected and implemented, and that the system met all use cases. After a final round of UAT, the new ServiceNow CSM system was launched in April 2022 to approximately 1,500 customer service professionals and to hundreds of thousands of customers worldwide. Iterative, post go-live releases helped deliver continual improvements. Key benefits included:

  • An enhanced user interface, highly intelligent case routing, and a connected solution integrating more than 15 different applications
  • A significant reduction in customization and complexity, with the number of fields per case object cut from 500 to 130
  • Improved data quality—the ServiceNow platform established a single source of information on customers, contacts, accounts, assets, products, and application service providers
  • Better reporting and access to customer service metrics
  • An enhanced escalation case notification process in which the average response time improved by nearly 3.5 seconds
  • A 6 percent reduction in total cases
  • Increased automation and ability to scale.

KPMG provided enhanced HyperCare support immediately after launch, and the ServiceNow platform quickly gained the trust of the client’s sophisticated user base of engineers.
 

5. Evolution phase


Beyond customer service with ServiceNow

With the new CSM solution up and running, the client is also turning to KPMG for guidance on implementing other ServiceNow solutions as part of a broader ERP implementation. Because ServiceNow integrates well with other technologies and products, the client is planning to use the platform to enable or support a range of other capabilities. ServiceNow products being used include IT Asset Management, Strategic Portfolio Management, Security Operations, and Governance Risk and Compliance.

Turning insights into opportunity

KPMG and ServiceNow

KPMG has worked with ServiceNow for more than a decade to help companies build better digital workflows for employees and deliver better services to customers. Our combined service management solutions apply deep functional and technology experience to address strategic business outcomes that help clients achieve real value quickly.

Transform the way you manage and deliver customer services

Let’s talk about where you are now and your goals for the future. 

Edwin B Tompkins

Edwin B Tompkins

Director Advisory, Platforms, KPMG US

+1 404 979 2174
Mark Bower

Mark Bower

Advisory Managing Director, Platforms, KPMG US

+1 720-573-7012