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Royal Mail 10 years of HR Transformation & ……Collaboration Len Watson Head of Pay Services December 2013

Royal Mail 10 years of HR Transformation - … - 20131203 - hr shared... · 10 years of HR Transformation & ……Collaboration ... 5s ISO New HR system built ... professionalism

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Page 1: Royal Mail 10 years of HR Transformation - … - 20131203 - hr shared... · 10 years of HR Transformation & ……Collaboration ... 5s ISO New HR system built ... professionalism

Royal Mail

10 years of HR

Transformation &

……Collaboration

Len Watson Head of Pay Services December 2013

Page 2: Royal Mail 10 years of HR Transformation - … - 20131203 - hr shared... · 10 years of HR Transformation & ……Collaboration ... 5s ISO New HR system built ... professionalism

What we will cover today…..

• Who we are?

• 4 stages of our journey & the key

principles

• Where next for HR shared services?

• Questions & Answers

Page 3: Royal Mail 10 years of HR Transformation - … - 20131203 - hr shared... · 10 years of HR Transformation & ……Collaboration ... 5s ISO New HR system built ... professionalism

RM Group

• New PLC

• 378 years old

• Global brand – UK’s most trusted

• 3 main operations – Letters / Parcels / Direct Mail

• £9.5 billion turnover

• UK’s largest single employer - 150,000

• Universal Service – 29 million addresses, every day

• 58 million letters & packets every day

• 120,000 collection points, 35,000 vehicles, 33 aircraft

routes

Page 4: Royal Mail 10 years of HR Transformation - … - 20131203 - hr shared... · 10 years of HR Transformation & ……Collaboration ... 5s ISO New HR system built ... professionalism

RM people

• 150k employees

• 125k are weekly paid

• 100-200 people per week are recruited (additional 20k at

Xmas)

• 200 employees leave each week

• 125k overtime payments per week

• 1300 grades, 4200 pay points and 3300 allowances

• 250k pensioners

• 20k calls to HR Service Centre per month (>90%

resolved on 1st call)

Page 5: Royal Mail 10 years of HR Transformation - … - 20131203 - hr shared... · 10 years of HR Transformation & ……Collaboration ... 5s ISO New HR system built ... professionalism

Royal Mail HRSS Scope

• Recruitment

• Payroll

• Advice Centre

• Appeals

• Pensions

• Training (latterly set up in separate unit)

• HR Management Information

• HR Systems Support

Page 6: Royal Mail 10 years of HR Transformation - … - 20131203 - hr shared... · 10 years of HR Transformation & ……Collaboration ... 5s ISO New HR system built ... professionalism

Our journey

Page 7: Royal Mail 10 years of HR Transformation - … - 20131203 - hr shared... · 10 years of HR Transformation & ……Collaboration ... 5s ISO New HR system built ... professionalism

The Way We Were – HR in 2003

• Service Delivered:

HR cost £170M

HR staff : employees – 1:65

Cost per FTE £850

Absence and attrition out of control

Policies too complex to implement

• Result:

= High cost, low impact HR service – poor levels of control - lots of

locations – 3300+ mainly transactional people

Page 8: Royal Mail 10 years of HR Transformation - … - 20131203 - hr shared... · 10 years of HR Transformation & ……Collaboration ... 5s ISO New HR system built ... professionalism

The Way We Are – HR in 2013 • Service Delivered:

HR Services cost £32M – other HR £30M

HR Services – 600 – plus HR 300 (HR Policy / Business Partners /

Learning)

HR staff : employees – 1:167

Cost per FTE £413

Absence and attrition under control

• Result:

= Low cost, high impact HR services – high levels of control - 2

major locations / 2 smaller locations

Page 9: Royal Mail 10 years of HR Transformation - … - 20131203 - hr shared... · 10 years of HR Transformation & ……Collaboration ... 5s ISO New HR system built ... professionalism

Timeline

• 2003 – new Group HR Director appointed –

“Ulrich”model adopted – HR Services created

• 2005 – stage 1 - initiation – simplify/standardise

• 2007 – stage 2 - growth – centralise

• 2009 – stage 3 - maturity - build a new system!

• 2012 – stage 4 – BAU - work in progress

• 2013 – RM PLC

Page 10: Royal Mail 10 years of HR Transformation - … - 20131203 - hr shared... · 10 years of HR Transformation & ……Collaboration ... 5s ISO New HR system built ... professionalism

Key Design Principles

• Have clear vision and objectives and stick to them

• Get key stakeholder buy-in and keep communicating

• Be brave – not stupid

• Standardised processes to maximise benefit

• Don’t leave ‘residuals’ outside shared services –

future terrorists

• But do retain local resource reporting to shared

services

• Line managers are future front line of HR, but not

immediately

Page 11: Royal Mail 10 years of HR Transformation - … - 20131203 - hr shared... · 10 years of HR Transformation & ……Collaboration ... 5s ISO New HR system built ... professionalism

4 Stages in detail…….

Ne

t Busi

ness

Bene

fit

P&OD Transformation Six Sigma introduced 5s ISO

New HR system built & implemented Leader CI Capability Service Improvement Review LEAN

VSM Aligned to Business Planning

Initiation

Maturity

Growth

Do improvement FOR the business

The way we work

Build capability AND capacity

Do improvement WITH the business

BAU Continuous Improvement seen as the way we work

2003 -2005 2005 - 2009 2009 - 2011 2011+

Page 12: Royal Mail 10 years of HR Transformation - … - 20131203 - hr shared... · 10 years of HR Transformation & ……Collaboration ... 5s ISO New HR system built ... professionalism

Initiation - Approach

• Agree on appropriate process improvement / change approach (Six Sigma)

• Ensure competence of people leading the change – HRSS new managers and project leads

• Introduction of 5s – the foundation of continuous improvement

• ISO accreditation achieved – wider recognition of process standards

• Start the process of improving line manager HR skills

• Advice Centre for manager / employee queries

• Reduction of 1350 FTE targeted and achieved

Page 13: Royal Mail 10 years of HR Transformation - … - 20131203 - hr shared... · 10 years of HR Transformation & ……Collaboration ... 5s ISO New HR system built ... professionalism

HR Services Journey - Growth

Ne

t Busi

ness

Bene

fit

P&OD Transformation Six Sigma introduced 5s ISO

LEAN VSMs Aligned to Business Planning

Initiation

Growth

Do improvement FOR the business

Do improvement WITH the business

2003 -2005 2005 - 2009

Page 14: Royal Mail 10 years of HR Transformation - … - 20131203 - hr shared... · 10 years of HR Transformation & ……Collaboration ... 5s ISO New HR system built ... professionalism

Growth - Approach

• Keep the vision and objectives clear

• Keep key stakeholders ‘in the picture’

• Introduction of simplified process improvement (Lean and VSMs)

• Widened professional training in continuous improvement techniques

• Aligned continuous improvement to business planning

• Improved project reporting and governance

• Local resource reduced as line manager professionalism increased

• Reduction of 250 FTE

Page 15: Royal Mail 10 years of HR Transformation - … - 20131203 - hr shared... · 10 years of HR Transformation & ……Collaboration ... 5s ISO New HR system built ... professionalism

HR Services Journey -Maturity

Ne

t Busi

ness

Bene

fit

P&OD Transformation Six Sigma introduced 5s ISO

Leader CI Capability Project launched Service Improvement Review launched

LEAN VSM Aligned to Business Planning

Initiation

Maturity

Growth

Do improvement FOR the business

Build capability AND capacity

Do improvement WITH the business

2003 -2005 2005 - 2009 2009 - 2011

Page 16: Royal Mail 10 years of HR Transformation - … - 20131203 - hr shared... · 10 years of HR Transformation & ……Collaboration ... 5s ISO New HR system built ... professionalism

Maturity - Approach

• Keep the vision and objectives clear

• Keep the key stakeholders ‘in the picture’

• Service Improvement Review methodology launched of which ISO

/ 5s are vital components

• Training for all leaders in continuous improvement skills

• Ownership for improvement moves from specialists to everyone

• Advice Centre moves to manager only queries (except Pensions)

• Only minimal local resource left – recruitment / learning/ conduct

appeals

Page 17: Royal Mail 10 years of HR Transformation - … - 20131203 - hr shared... · 10 years of HR Transformation & ……Collaboration ... 5s ISO New HR system built ... professionalism

Business As Usual…

Ne

t Busi

ness

Bene

fit

P&OD Transformation Six Sigma introduced 5s ISO

Leader CI Capability Project launched Service Improvement Review launched

LEAN VSM Aligned to Business Planning

Initiation

Maturity

Growth

Do improvement FOR the business

The way we work

Build capability AND capacity

Do improvement WITH the business

BAU Continuous Improvement seen as the way we work

2003 -2005 2005 - 2009 2009 - 2011 2011+

Page 18: Royal Mail 10 years of HR Transformation - … - 20131203 - hr shared... · 10 years of HR Transformation & ……Collaboration ... 5s ISO New HR system built ... professionalism

World Class HR

• Internal quality standards

• Internal quality measurement system

• Standardised improvement toolkit providing systematic approach

• Data driven process understanding and improvement identification

• Process excellence and maintenance

• External verification of approach

ISO Value

Stream Maps

SIR Focussed

Improvement

Page 19: Royal Mail 10 years of HR Transformation - … - 20131203 - hr shared... · 10 years of HR Transformation & ……Collaboration ... 5s ISO New HR system built ... professionalism

Where next for HR shared services?

• HR Shared Services has come of age – time to build towards value centric

• Technology enables us to grow again via an evolution

• Technology facilitates the delivery of our vision to make our services proactive

• Line managers have to be the first line of the HR service delivery model

• With HR systems – remember it’s always personal

• Systems governance is vital and needs to mirror both your HR OD model and ambition

• Proactive governance is vital – you need the voice of the customer

• Data and people are synonymous – you need a few rich reliable sources in one place

• Consolidate systems to deliver future service model resilience

• Stay focussed on the vision – and added value!

Page 20: Royal Mail 10 years of HR Transformation - … - 20131203 - hr shared... · 10 years of HR Transformation & ……Collaboration ... 5s ISO New HR system built ... professionalism

Summary

• HR shared services are here to stay

• HR systems sit at the heart of all systems architecture

• Technology enables HR shared services to operate differently and deliver a higher value added service

• Clean reliable employee data is crucial to having robust reliable trusted HR systems

• Proactive services are the future delivery model for HR with the front line manager being the first line of HR support

• Value added is the new measure of success

• We are proud of what we have achieved ….and collaboration is key to our future

• ….and we recognise we have not yet reached our destination!

Page 21: Royal Mail 10 years of HR Transformation - … - 20131203 - hr shared... · 10 years of HR Transformation & ……Collaboration ... 5s ISO New HR system built ... professionalism

Questions & Answers

Page 22: Royal Mail 10 years of HR Transformation - … - 20131203 - hr shared... · 10 years of HR Transformation & ……Collaboration ... 5s ISO New HR system built ... professionalism

Top tip for collaboration….

Never say BUT always say…..

AND…..