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  • Royal Mail

    10 years of HR

    Transformation &

    Collaboration

    Len Watson Head of Pay Services December 2013

  • What we will cover today..

    Who we are?

    4 stages of our journey & the key

    principles

    Where next for HR shared services?

    Questions & Answers

  • RM Group

    New PLC

    378 years old

    Global brand UKs most trusted

    3 main operations Letters / Parcels / Direct Mail

    9.5 billion turnover

    UKs 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

  • 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)

  • Royal Mail HRSS Scope

    Recruitment Payroll Advice Centre Appeals Pensions Training (latterly set up in separate unit) HR Management Information HR Systems Support

  • Our journey

  • 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

  • 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

  • Timeline

    2003 new Group HR Director appointed Ulrichmodel 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

  • 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

    Dont 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

  • 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+

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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+

  • 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

  • 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 its 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!

  • 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!

  • Questions & Answers

  • Top tip for collaboration.

    Never say BUT always say..

    AND..