HR and Customer Service

John Roberts

Ford (Retail) Motor company Ltd

Urbanopeople Event Presentation

www.urbanonetwork.co.uk

Me

• Multi site• Operations, marketing, HR• Diageo, Whitbread, Sears, Kingfisher, Greene

King, Ford Motor Company

The Brief“John's presentation will examine the relationship between internal and external customer service.  He will also explore whether the HR issues he has faced sector-specific or company specific and share his views on what Best Practice in HR means in practical terms. “

Different Sectors, Common Challenges

• Seen as a series of events, not a cohesive strategy• Not role modelled by senior management• Not linked into the key levers in the business, particularly

HR• Constant investment needed• The “owner” moves on• Feedback not actively used• Other KPI’s seen as more important• It’s a process not a value

Ford Retail – A case Study………….………….Applied life learning!

• FMC Owned• 3100 people, 65 sites• £1bn revenue – not a lot of profit• Newly formed from different businesses• Workforce not generally “well educated”• Organisational Development challenges

• Leadership• Geographic/historic • Market Culture• Customer Focus

Our starting point

Strategic objectives

– To differentiate the business through outstanding levels of customer satisfaction and loyalty

– To make our people a competitive advantage though culture and skills

Our Business

Performance

Our Behaviour

Our Customer

Experience

The theory - Sears Profit Chain

source: HBR & Sears

= =

Attitude about: Leadership Job Company Service

1. IDENTITYHow you think of yourself shapes your…

2. VALUES AND BELIEFSWhat is important to you,

and what you believe in influences your…

3. CAPABILITIESYour knowledge and skills direct your…

4. BEHAVIOURWhat you do and say determines your RESULTS in the…

5. ENVIRONMENTIn which you choose to operate

Who We Are…….

Leadership/Culture

Current Behaviours

Desired BehavioursAnd

Ways of workingDefineEmbedSustain

Recruitment/DevelopmentCommunication

360 measurementLTIP

Leadership ProgrammeAppraisals

Organisational Development

Organisational Driven InputsM

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Leadership / Culture

Customer CentricOne CompanyCollaborativeLeadershipEnergising

The Emotion

Over 10000 nominations

Over 200 winners

Over 600 nominations per month

Reward and recognition

Sustainment

Sustainment

Sustainment

• New joiners

• Refresher courses

• Management boosters

• Scratchy Moments

• Internal communications

• Suppliers

Impact on HR/business

• Embedded in processes:– Recruitment– Induction– L+D– Reward/Recognition– Performance management

• HR/business strategic model• Strategic plan• Internal Service focus• Measurement

Dealer “A” PerformanceStaff Attitude Survey Question 2009 2010

Customers take precedence over everything in Ford Retail 83% 97%

I have confidence in my leadership 77% 91%

People are praised for doing a good job 65% 84%

Moments of Truth 24 (no bonus) 2009 June 2010

New Vehicle 81% 95%

Used Vehicle 76% 90%

Service 58% 72%

Performance 2008 2009 2010

Dealership Profit) (£336k) £262k £494k

New Units 510 571 725

Used Units 536 590 651

Service Hours 14671 15987 17643

Outcomes (1)

2008 2009 2010 2011

Staff Turnover Mngt 23.5% 18.5% 14.6%Staff Turnover non mngt 32.5% 26.1% 23.5%

Staff Retention 76.5% 79.4% 82.7%

Basic Pay Drift 3.9% 2.5% 1.2% 0.1%

Benefits Provision Cost £15 v £1775 savings per head

Absence Rates Consistent at c.2% v 3.9% UK av

Initiatives Reward benchmarkingReward Project

GROUP RESPONSE

QUESTIONS ASKED

LEADERSHIP1 I am proud to work for this company7 I feel my manager respects me10 My manager offers effective leadership for the department14 People treat each other with respect in this company19 I have confidence in the company’s leadership

COMMUNICATIONS2 I understand what is expected of me at work8 I know how my role contributes to the overall business objectives15 I am kept well informed on what is going on in the company

GROWTH3 At work my opinion seems to count9 I can see a long term career in Ford Retail16 My line manager is interested in my personal development20 I get sufficient training to carry out my job effectively

COOPERATION4 Employees work well together to solve problems and get the job done11 There is no conflict at work which affects me doing my daily work

CUSTOMER FOCUS/DELIVERY5 Customer service takes precedence over everything else in this company12 I have the equipment and materials I need to do my job well17 Employees here are committed to doing quality work

RECOGNITION/REWARD6 Overall, my reward package is fair13 People are praised for doing a good job18 I feel that my contribution at work is appreciated

2008 2009

83%

77%71%62%68%

95%

90%49%

94%62%

63% 69%67% 80%66% 75%65% 75%

71% 76%63% 71%

70% 77%63% 71%76% 83%

45% 57%57% 63%64% 74%

Co Average 68%

2010

93%84%80%70%83%

97%95%

97%

70%

70%80%75%76%

77%72%

82%75%85%

53%66%74%

78% 76%

92% 83% 82% 67% 80%

’08 to ’11 variance

94%85%83%74%86%

97%97%73%

72%81%81%81%

80%73%

87%80%89%

59%70%78%

81%

Response rates 46% 78% 66% 77%

13%10%17%19%26%

2%8%

49%

14%21%23%25%

13%16%

24%27%17%

31%23%22%

67%

2011

19%

Outcomes (2) “Give Us Your Steer”