The Client:
Safeway Inc. owns over 1800 stores, pharmacies and distribution centers in the US and Canada and boasted a net income of $169.8M for 2003. The company was looking for a way to replace their existing legacy system with a more versatile option. One that could handle a large volume of transactions from multiple resources, and allow them flexibility in reporting data to meet their business needs.

The Challenges:
The Dinosaur
Converting a 25 year old legacy system that was complex from multiple systems, numerous inbound and outbound interfaces and vast customizations presented quite a challenge. Included in the conversion were multiple PC based applications that handled everything from assets to check-clearing processes to the calculation of journal entries for uploads.

A Team Divided
The Safeway team, like many other implementation teams faced the reality of a team divided functionally and resources divided physically. Initially the Finance and Information Technology (IT) departments did not share the same goal from the start. After several months of no “buy-in” from the IT team, Safeway management made the decision to place an executive in the middle. This individual had the dual responsibility of directing activities on both sides. By bringing both teams together under the same leadership, objectives were re-aligned and the team was able to work towards common goals.

Additionally, not all members of the initial implementation team (25-30 Safeway project team members and 4-6 outside consultants) were located at the Phoenix Arizona headquarters. This created obstacles for the group as they had to fine tune communication skills, adjust schedules and arrange meetings at multiple locations for multiple users.

As with most project teams, the skill level of the users varied and the desire to implement new software not always positive. Several of the key users had been with the company for many years and were not anxious to take on new skills and responsibilities.

Volume
Volume in the number of transactions processed and volume in the number of employees that needed to be trained on the new systems. Over 500 Safeway employees needed to be trained in the new applications and process redesigns that were necessary to ensure a successful implementation.

The Solution:
The team mandate was to set up Lawson software applications General Ledger, Activities, Asset Management, Accounts Payable, Accounts Receivable, Cash Ledger, Matching and Purchase Order. The team became creative process engineers and spent many hours redesigning current procedures to avoid having system modifications. Many of these new processes required documentation of and end user re-training. Paradigm team members were able to draw from their Change Management training and utilize key skills several times during this phase of the project.

Due to the unique structure of the Safeway organization, a tiered approach was developed for training. The Canadian operation went live first, followed by Corporate and Supply Divisions, and the U.S. Retail Segment. Those that went live first were able to help train the following divisions which also improved the cohesiveness of the group.

Although there were some delays throughout the project, they were primarily caused by client hardware issues and the high volume of transactions that needed to be processed on a monthly basis. The project team was instrumental in utilizing Lawson Softwares ability to provide more horsepower and enhanced processing of inquiry, batch and update programs.

The Benefits:
The Paradigm Business Solutions Implementation Team was instrumental in helping Safeway Inc. define project expectations, allocate resources and determine the specific activities needed to go live. Despite the challenges faced by the Safeway Implementation Team, they were able to meet deadlines with few delays. Safeway has successfully replaced their antiquated legacy system in addition they have drastically reduced modifications and increased processing capabilities.

Paradigm’s added value at Safeway beyond providing application expertise was to promote a vision that kept the team focused. By keeping efforts focused on the “big picture” and away from the daily tasks and monumental project goals, they were able to convey that the end result would benefit everyone involved. As a result, Safeway experienced a successful implementation, is able to process increasing volumes of data and has the tools they need to successfully run their business.