Transcript None - Sourceforconsulting.com

Source Seminar
Intelligent Cost-Cutting
February 2009
Eilish Henry
PwC
Employee Engagement: the key to sustainable efficiency
gains
Sharing the distilled learning, not just from what we did well,
but also, and perhaps even more important, what we did badly –
including employee engagement!
PricewaterhouseCoopers LLP
February 2009
Slide 2
HMRC – some context
• HMRC – created in April 2005 - merger of IR and C&E
• 100k people in more than 800 sites with 200+ supporting IT
systems
• Major public sector reviews (Gershon & Lyons)
• Gershon – find efficiency savings for HMRC of 12,500!
• Processing function (“back office” with 30,000 people - find
savings of 8,500!)
• IT Programmes would not deliver within the timescale
and
• A Key Departmental Target – Deliver a better customer
experience!
PricewaterhouseCoopers LLP
February 2009
Slide 3
The challenge – how to
do more work
to a higher standard
with fewer people?
PricewaterhouseCoopers LLP
February 2009
Slide 4
The Solution? - PaceSetter
• Lean – taking the non-value added work out of our
processes
• Supported by Leadership and Operational Management
interventions
• Benchmarking against other organisations and learning
from them – “Go and See”
And then later…
• Re-configuring Processing using
• Migration of work and people
PricewaterhouseCoopers LLP
February 2009
Slide 5
This was not about “slash and burn”
The aim was not to simply cut a fixed % across the whole of the business but
rather to carefully target the cuts at those areas that did not add value!
PricewaterhouseCoopers LLP
February 2009
Slide 6
The changes were both tangible and intangible
Tangible
Intangible
Fewer staff
Fewer sites
Increased confidence amongst team
members - a “can-do” attitude
Larger sites
More ownership of problems and
New desk layout – team-working
Willingness to use their knowledge of
the business processes and
Hot-desking
Visual Management
Daily performance conversations
To engage in problem-solving
More effective team working
Increased focus on the customer
Greater level of risk-taking
PricewaterhouseCoopers LLP
February 2009
Slide 7
Examples of tangible changes – Visual Management
Position for graphic
or image
Team Performance Board – Tracking only a handful of
KPIs - the focus of the team’s daily performance
conversation with their team leader. What went well and
why? Learning from this? What didn’t go well and why?
Learning from this?
Communications Hub - key messages about
performance and also wider organisational concerns.
Shared learning. Feedback from customers.
PricewaterhouseCoopers LLP
February 2009
Slide 8
Where we did a bad job:
People felt de-motivated and insecure, unwilling to get behind the changes
People with options voted with their feet
We lost skilled, experienced and motivated staff and
Retained less experienced, less skilled and de-motivated staff (refer to results
of staff surveys and also Radnor Report)
Where we did a good job:
People felt informed, energised and were willing to get involved with the
changes and also to
Acquire new skills and enhance existing skills.
We retained more of our skilled, experienced and motivated staff and
Restructuring and re-organisation was achieved without adverse impact on the
customer
“People learn what they want to learn”. Boyatzis
PricewaterhouseCoopers LLP
February 2009
Slide 9
Enhanced Employee Skills
Team members
Team Leaders
“Expert” support
•Effective team working
All of column 1 +
All of columns 1 & 2 +
•Lean tools & techniques
•Coaching & Mentoring
•Detailed knowledge &
•Problem Solving
•Visual Management
•Challenging
•Challenging
application of lean
tools
constructively
appropriately:
•Facilitation skills
•Enhanced technical skills non-attendance &
•Customer Focus
PricewaterhouseCoopers LLP
under-performance
February 2009
Slide 10
Effective Team Working
• Small teams & groups are natural forms of social
organization
• Neural capability & evolutionary development of the brain
equip humans to function in small groups
But
• Simply being in a team or small group does not necessarily
produce an effective team
• People change through and with others
• Effective coaching and mentoring are essential ingredients
for change
PricewaterhouseCoopers LLP
February 2009
Slide 11
Finally
• Never underestimate the capacity people have to
resist change
• Especially true in public sector organisations
• Many people need compelling reasons to change –
the “burning platform”
PricewaterhouseCoopers LLP
February 2009
Slide 12
A downturn can be viewed as an opportunity
- not to simply cut costs but
- to improve employee skills and
- the way you work
and
- deliver a better outcome for customers
This publication has been prepared for general guidance on matters of interest only, and does not constitute
professional advice. You should not act upon the information contained in this publication without obtaining specific
professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness
of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP,
its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any
consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this
publication or for any decision based on it.
© 2009 PricewaterhouseCoopers LLP. All rights reserved. 'PricewaterhouseCoopers' refers to
PricewaterhouseCoopers LLP (a limited liability partnership in the United Kingdom) or, as the context requires, the
PricewaterhouseCoopers global network or other member firms of the network, each of which is a separate and
independent legal entity.
PwC