Unipart Group of Companies Senior Management
Transcription
Unipart Group of Companies Senior Management
In partnership with Cultivating a Culture of High Performance and Productivity John Greatrex Group HRD Unipart and Gary Love Director of HR and H&S Historic Environment Scotland Cultivating a Culture of High Performance and Productivity CIPD Scotland Annual Conference John Greatrex Group HR Director Unipart [email protected] 3 March 2016 Session Outline Unipart’s approach to high productivity and: 1. Culture 2. Definition and Measurement 3. Motivation and Reward 1. Productivity and Culture Unipart’s Journey – The Unipart Way Our history Part of British Leyland in the 1980s. Poor levels of effectiveness, efficiency and engagement. Our journey A different way of working. Majority owned by employees taking a longterm view. Developed lean capability and diversified the business. Unipart today 10,000 employees, £1.1b turnover, operating in 100 countries. Divisions in Rail, Manufacturing, Logistics, Automotive and Consultancy. Strong capability in Lean and Employee Engagement. Unipart Today • UK based, privately/employee owned • Major sectors – manufacturing, logistics, automotive, consulting • 10,000 employees, growing internationally, differing organisation models • Core capabilities in lean working, employee engagement and operational effectiveness called “The Unipart Way” • Wide range of clients / sectors – eg Mission, Vision and Principles MISSION STATEMENT: The Unipart Group aims to be an enduring upper quartile performing company in which stakeholders are keen to participate, performing principally in the logistics market by pursuing our values, pursuing well judged entrepreneurial risks, ensuring the continuity, relevance and synergy of the divisions’ missions and creating an environment within which the divisions can and do pursue their missions Our VISION is to be the ultimate Logistics Partner and best Consulting Partner Another set of values Integrity Communication Respect Excellence Another set of values Integrity Communication Respect Excellence Enron, whose leaders went to jail and which went bankrupt from fraud, had these values displayed in their lobby Values alone will fail without critical support Leadership behaviours (both facts and symbols) Body of knowledge on what drives motivation and performance (Both high level specialist and organisational understanding) Tools and Techniques (Enabling people to take ownership of their work and providing them with the necessary skills) Unipart’s leadership behaviours which support the values Unipart’s Leadership Behaviours: • Be self aware • Know your people really well • Show respect, be clear, be fair, be consistent • Give your people the opportunity to grow • Set stretching goals • Always follow through • Deposit more than you withdraw In Unipart we believe there is a strong link between Employee Engagement and Productivity PERFORMANCE through ENGAGEMENT: ‘A culture that inspires and enables our people to go the extra mile and actively seek opportunities for continuous improvement in all that they do, for the benefit of themselves, the organisation and its customers’ A model for employee engagement Engagement - based on day to day experience - relationship with direct manager is key - world class engagement is driven by strong advocates - can be achieved at all levels but easier with managers - driven by emotions Growth & Development “Are there opportunities for me and the Company to grow together?” Teams doing Quality Work together “Do I belong?” Individuals Encouraged “Am I encouraged to give my best?” Satisfaction - a prerequisite - not the same as engagement - based on fairness and expectations Basics in Place “Am I given the basic tools and environment to do my job?” Inspiration and Enablement – Integrated Engagement Promoted Engagement Employee engagement requires inspiration and enablement People are motivated due to a number of factors: -Clear sense of leadership in the organisation -How they are treated by their line manager Productivity Inspired employees -Understanding that the organisation cares about them -Clearly buying into what the Company stands for and how their role fits People are enabled to give of their best due to a number of factors: -Accountability is pushed down -Work is designed to be as easy as possible -Aligned teams work effectively together -People are trained in the skills to own their own work Engaged Employees Employee Effectiveness Financial performance Talent attraction, retention Customer engagement Innovation Enabled Employees Sustained improvement 2. Productivity and Measurement Improving Productivity – The Key Challenge Productivity isn’t everything…but in the long run it’s almost everything. Paul Krugman What can we learn from the Automotive Industry? IN 1993 A HUGE COMPETITIVE GAP EXISTS WITH JAPAN Speech to the Automotive Fellowship International. Sir Jon Cunliffe 22 June 2015 “If productivity in the UK economy as a whole had grown in the same way as in the car industry, and employment generally had grown as it did” “The economy would now “Annual GDP per person be 30% or £½ trillion larger.” would be about £8k higher.” “Productivity in the UK has not followed the lead of the car industry ” 2007…2013 -0% -0% Annual productivity growth averaged just below zero. in 2013 output per hour in the UK was 17 percentage points below the average for the rest of the G7 – the widest gap since 1992. -17% -17% Business Benefits Turnover, absence, accidents, etc all improve as engagement increases – some such as absence and sickness are highly correlated Correlation co-efficient – Absence levels = 0.7 – Sickness per employee = 0.7 – UW scores = 0.5 – Turnover = 0.3 – Liability claims = 0.2 – Accident rates = 0.2 4.5 Absence by department Engagement grand mean / absence rate 4.3 4.1 3.9 3.7 3.5 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% -1.00% Strong correlations are seen between lean working, productivity and engagement eg in Automotive Division 0.79 correlation between high engagement scores and end to end service delivery 3. Productivity: Motivation & Reward Gallup – How We View Work • We spend more time working than any other pursuit • Primary work is one of the least 10 enjoyable activities we undertake • Spending time with your Supervisor is the least enjoyable work activity Purpose + Autonomy + Mastery = Motivation Examples of tools and techniques Personal development plans help drive growth and development for all - Mastery Learn and experience how the main tools and techniques fit together. See Know the theory/model of engagement / The difference between satisfaction and engagement / the four levels of engagement. Facilitate managers and teams through an employee engagement cycle. Ability to facilitate a variety of employees. Learn Do Effectively manage a team through a cycle of employee engagement. Teach Coach Deep knowledge and experience and interpretive skills. Able to deal with complex issues. Able to design and ensure the implementation of an engagement initiative into other organisations. The communication cell helps drive autonomy Structured team communication takes place every day Teams review the past day’s performance with a view to identifying problems and setting a plan to solve them PDM helps drive purpose and alignment Projects * Policy deployment summarises the major strategic initiatives throughout the business on one page * The executive committee policy deployment is cascaded down through the organisation Delivery Aims * Each department formulates its own policy deployment and manages its delivery Results Problem solving tools and techniques are a pre-requisite for devolving autonomy Reward and Recognition: Key Principles Reward is necessary but not a great driver of engagement per se. Poor reward design can destroy engagement and productivity. Key features in Unipart: 1. Fairness is critical – within Business Units, including equal pay 2. Significant local flexibility within principles – helps drive autonomy 3. No common grading structure – except top 4. Everyone has bonus potential based on business and team performance 5. Intrinsic reward approach for all but simplest of tasks 6. Long established Group recognition scheme based on customer service, going the extra mile with share awards. Local recognition schemes encouraged. 7. Significant benchmarking across the group Performance Outcomes • Consistently maintained grants investment at £14.5m • Membership numbers increased from 104k in 2009/10 to in excess of 162k in 2015/16 • Manage 345 Properties in Care on behalf of Scotland • Income: Visitors Admissions Income Trading Income Facilities & Other Income Total Income 2005-06 2,924,014 £13,649,833 £5,897,498 £2,110,467 £21,657,798 2006-07 3,123,149 £14,869,449 £6,084,266 £2,009,238 £22,962,953 2007-08 3,191,681 £16,322,156 £6,453,131 £2,172,497 £24,947,785 2008-09 2,912,896 £14,980,088 £6,362,694 £1,931,961 £23,274,743 2009-10 3,102,987 £18,251,891 £6,804,103 £1,683,179 £26,739,173 2010-11 3,145,944 £19,306,863 £6,929,519 £1,540,320 £27,776,701 2011-12 3,365,873 £22,442,906 £7,502,547 £1,525,126 £31,470,579 2012-13 3,176,121 £22,944,688 £7,495,943 £1,844,052 £32,284,683 2013-14 3,449,277 £26,667,630 £7,943,051 £1,875,902 £36,486,584 2014-15 3,656,218 £28,166,640 £8,075,940 £1,843,842 £38,086,422 2015-16 (FC) 3,749,172 £30,856,435 £8,482,215 £1,868,732 £41,207,382 Creating Historic Environment Scotland Merger of Historic Scotland and RCAHMS to: • Create a single new public body that is equipped to research, record, promote and protect Scotland’s historic environment; • Provide an organisational basis for putting into effect the statutory footing for key operational functions • Provide certainty of employment for staff • Provide clarity and transparency of governance, ensuring that the new organisation meets the relevant requirements as an NDPB • Provide the basis for the improvement and simplification of the delivery of public services by HES • Increase organisational resilience The Merger Process • Merger Process started in May 2013 • • • • Transition Team Programme Landscape People Focussed Work-stream (OD, HR, Pay, Harmonisation etc) HR Functions of both Bodies Merged in January 2014 • It was Underpinned by primary legislation in the Scottish Parliament • Merger was subject to on-going external validation – Gateway Reviews • Strong relationship with the Unions; met monthly • Union membership on all key work-streams • Merger 1 October 2015 Historic Environment Scotland • HES is a complex business operating across all parts of Scotland covering: • Conservation • Commercial Activity • Tourism • Regulation • Collections • Survey and Recording HES is also responsible for a range of complex sites of significant and historic and cultural importance including Edinburgh & Stirling Castles Budget and Staffing • 13-14 • 14-15 • 15-16 £83.498m (Incl. £32m staffing) £81.729m (Incl. £37m staffing) £90.198m (Incl. £38m staffing) Staffing 1,450 made up of: Architects; Surveyors; Traditional Skills; Stonemasons, Joiners, Painters Collections Professionals; Educationalists; Stewards; Research Staff; Designations / Scheduling / Recording; Finance; HR; Communications; Marketing etc etc Key People Message in Merger • HS and RCAHMS are successful organisations • We want to build on that success • No compulsory redundancies • No detriment to terms and conditions • Pension arrangements protected and remain unchanged • Jobs will continue in current situation in the immediate future • The merger is not about saving money • It is about protecting the key functions of both bodies and these continuing into HES • Continue to be part of the central Scottish Government structure HOWEVER! Good and Not So Good • Managing The Journey • Leadership • Personal Resilience Managing the Journey • Strong Business Case for Merger • A good outcome; we got a merged body that is successful • Good governance and process • Process driven • Engagement with staff was mixed; for some too much for others not enough • SMT too large? – decision-making / direction setting impacted • For senior staff focus seemed to be the merger not the business of HES • For some staff on the ground the merger seemed to be incidental • We decoupled OD from HR; yet we are an operational organisation • First October 2015 Leadership • People side of management and leadership had a positive survey • Inspiring, confidence building, empowering • Trusted and supported • The broad organisational picture of leadership was less positive • Change management, decisions, vision sharing • Visibility of leadership • Leadership behaviours • Generally business as usual was strong • Structure • Hygiene Factors Personal Resilience • Inherent built in personal resilience; • Staff have a strong sense of belonging • A strong personal commitment to the Historic Environment • Wellbeing activity and factors improved over the last 12 months However Personal Resilience • Staff stated consistently that they were over-worked • Some felt they had 2 jobs; their day job and the merger • Expressed concern about job security • What would they do in HES / how would their job change • Why structures were not addressed early • Unions advised us of increased levels of stress / overwork • In hindsight we should have addressed personal resilience in staff prior to going into the merger; intervention came too late – but previous training interventions did prepare the ground! Learning / Conclusions • We improved performance through a complex process • Key people messages were consistent; and that was a strength • Decoupling OD with HR made it more challenging to manage and support personal resilience • Should have been clearer about what we couldn’t address and why that was the case • Visibility of Leadership • Greater focus on delivering the business; this is our strength