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
John.greatrex@unipart.com
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