Links to individual examples:
Lloyds of London: 35% productivity improvement using natural leaders
Organisational design for innovation at the Transport Systems Catapult
Friends Provident: profound culture change in less than a year
Liverpool City Council: transformational change improves productivity by 30%
Integration of three different contact centres for Sussex Police
National Savings: 100% productivity improvement over three years
Achieving BS11000 certification at VolkerRail
Nationwide Building Society; Massive IT programme on time and on budget
Major change assignments using informal networks
Xchanging Insurance Services (a leading Business Process Outsource supplier, led by the former Andersen partner in charge of outsourcing services) entered into a business process outsourcing agreement to run the entire back office operations for Lloyds of London and the London Processing Centre.
An associated major change programme led to productivity improvements of more than 35% in operational areas over a period of less than 6 months. The use of influencers in the new operations management/ supervisory team and for informal/formal communications led to staff support levels for change bouncing back to a higher level than they were six months previously. It also led to profits jumping from zero to £10 million+ in the first financial year of the new operation. Within 18 months, three new outsourcing contracts had been won to run different aspects of insurance transaction processing, including a significant international insurance contract. Key performance indicators were consistently met during the transition period.
“They used influencers to successfully implement really difficult changes without starting World War 3″ – David White, IT Director, Xchanging Insurance Services (BPO supplier for Lloyds of London).
In the 2012 budget, the UK government committed to setting up a group of ‘innovation ‘Catapults’ to catalyse innovation through collaboration across key areas that are important to the UK economy. The total investment is £1 billion over five years.
We recently completed a very innovative organisational design for a highly-effective Transport Catapult. The key elements of this design are based on innovation teams where individuals from a variety of transport-related organisations are selected both for their capabilities and for their personal innovation networks. In addition, collaboration levels are measured monthly to monitor and enhance internal team working, inter-team working and interactions with key innovators in parent organisations. The ‘health’ of these networks is a key leading indicator of innovation success or failure.
Over time, it is likely that this organisational design for highly-effective innovation will be adopted by other Catapults.
The IT Department at Friends Provident embarked on a radical change initiative to transform a relatively traditional IT department into an internal commercial IT service that really treated the Friends Provident business as its customer. This change required organisational, process and internal charging changes that were implemented efficiently over a period of six months.
However, it rapidly became evident that a radical change was needed to the culture of the IT group – relationships with customers, the way that new processes were implemented in practice and (above all) the way that IT staff behaved in their day-to-day work. We led a nine-month programme of practical culture change, using ‘waves’ of managers and influencers to identify and then progressively ‘live’ and measure the new desired behaviours. The end result was a profound and measurable change in ‘the way that we do things here’, with staff support for the move to commercial IT increasing from 20% to nearly 50% during 2004, with another 30% nearly there. These culture changes were reflected in significantly improved customer satisfaction ratings and staff satisfaction increasing from 57% to 81%. Gartner wrote a case study of the Friends Provident experiences and the Director of IT has prepared a video for us describing their experiences. In 2007, the Friends Provident IT group won the Computer Weekly ‘Best place to work in IT’ award for IT in financial services.
“Their approach to managers and influencers helped us to make a major step towards a practical, commercial IT culture” – Andy Jackson, Director of IT, Friends Provident.
Liverpool City Council and BT entered into a joint venture BPO agreement whereby a new organisation – Liverpool Direct – would run many of the administrative operations of Liverpool City Council. These included Revenues and Benefits, IT and HR.
Influencers at all levels across the organisation were identified at an early stage and used to drive all aspects of change communications – both formal and informal – during the critical transition period. The new Liverpool Direct call centre has subsequently won awards for their performance and the highly automated HR operation has been the subject of many visits by professionals across both the public and private sectors. ‘Customer’ satisfaction ratings have increased significantly. (Used as an example of successful technology-driven change in the Gershon Report).
“The identification of influencers was both quick and painless and produced the additional benefit of allowing the programme to move forward without a single staff or union objection. Having worked with many change methods, my judgement is that this Influencer Technique is both comprehensive and very impressive in managing business change” Neil Grogan, Business Change Manager, Liverpool Direct Limited (Liverpool City Council/BT joint venture).
BT Report – ‘Partnership transforms Liverpool’s Performance’:
“Still in the first half of a 10-year, £300 million project – in which BT has so far invested more than £50 million – Liverpool Direct has already enabled the council to reduce its cost base by over £100 million over five years and help to reduce its headcount from 19,000 to 13,000.
“A new contact centre is now handling 200,000 calls a month, resolving over 90 per cent of them first time. A Human Resources (HR) intranet is automating routine business (30,000 hits a week) and allowing the council to re-deploy over 1,000 staff, while absenteeism has fallen below the national average. The revenues and benefits functions have also been transformed, leading to performance improvement and financial benefits. The Audit Commission now places 70 per cent of Liverpool’s key services in the upper quartile of the industry standard in its performance indicators.”
Sussex Police decided to integrate three different contact centres operating on three different locations into a single much more integrated and multi-functional unit operating on a single site.
As a key part of their implementation, we identified change-positive and open-minded influencers across centres to act as user representatives in the integration change programme. Through active involvement in change planning, training, communications and implementation, the influencers proved invaluable in achieving high levels of practical integration, on time and on budget.
The single biggest Private Finance Initiative (PFI) contract issued by the UK Government at the time involved a practical partnership between National Savings (investment assets £60billion) and Siemens Business Services (SBS) – part of the giant Siemens Group. Under this contract, SBS runs all the administrative systems and processes for National Savings, as well as taking over responsibility for some 4,000 staff. The objective of this PFI is nothing less than to create a highly effective, automated and modern organisation that can fully meet the current and future needs of National Savings, while at the same time utilising surplus staff and a comprehensive IT/IS infrastructure to service new business clients. The technology involved includes e-commerce, call centres and intelligent document scanning and recognition.
We were in charge of the people side of this massive change initiative, reporting into a member of the main SBS/NS Account Board. Part of this responsibility was to guide the extensive work on new organisation design, including all aspects of organisational structures, career progression, performance assessment and rewards. The work done represents the leading edge of change management, placing a strong emphasis on influencer identification and involvement – and is directly responsible for the smooth transition of Civil Servants into a highly competitive commercial business environment. Productivity improvements of more than 100% were achieved while more than 99% of key performance indicators were met during the crucial transition period.
“The use of innovative, influencer-based techniques made a major contribution to gaining staff commitment during the change programme” Julie Fisher, Pathfinder Change Manager, National Savings (BPO partner Siemens Business Services).
National Audit Office Report ‘PPP in practice: National Savings and Investments’ deal with Siemens Business Service (SBS) four years on’:
“SBS has significantly increased productivity (more than 100%) without compulsory redundancies through reducing the number of staff transferred to it from 4,100 to some 2,000, although the volume of work has remained the same. It has reduced the level of absenteeism to close to the national average of 3.1 per cent, compared to eight per cent when it took over the business. SBS has re-deployed 650 of the
2,100 staff no longer required for NS&I work, on third party work. Of the remainder no longer employed on NS&I work, 1,200 took Voluntary Early Release and 250 were released through natural wastage.”
As part of a BS11000 (business partnering relationships) certification exercise, we carried out a series of interviews and collaboration/innovation surveys across VolkerRail, its contractor partners and its main customers (Network Rail and Transport for Greater Manchester). The purpose of the assignment was to assess the quality of the collaborative partnerships engaged in by VolkerRail across the UK rail industry and the issues that need to be addressed to improve collaboration with its partners.
The results from our analyses were that collaborative relationships were very good overall and (not surprisingly) VolkerRail achieved BS11000 certification quite rapidly. In addition, the collaboration and innovation networks analyses we produced provided a benchmark for VolkerRail to improve their collaborative and innovation networks even further.
“The network analyses you did made a major contribution to VolkerRail achieving BS11000 certification.” David Moreland, Pre-contract Director, VolkerRail
A major IT infrastructure and associated new application systems implementation exercise for Nationwide Building Society. During this assignment, we prepared a management of change strategy and established a practical management of change framework for implementing more than £130 million of new IT facilities that would enable new ways of doing business – through e-commerce and call centres, as well as through traditional branches. This involved working with the outsource supplier responsible for overall project management (Siemens Business Services) on all aspects of the change process including communications, training and gaining the commitment of influencers throughout the organisation.
This implementation was so successful that Nationwide agreed to the publication of a case study of the assignment by the Wentworth/Gartner Group to illustrate “best practice in managing a major change project”.
“We had an opportunity to compare nominated representatives with identified influencers during the implementation process. Overwhelmingly, influencers were the key to success.” Tim Pink, Management of Change Manager, TITAN Change Programme, Nationwide Building Society