LONDON- MANCHESTER WWW.MDH.CO.UK VIEW FROM THE TOP The latest HR market insight As the world economy experiences the greatest crisis for many decades, Macmillan Davies Hodes' CEO, John Baker has been meeting with HR leaders to find out the challenges their businesses and HR face. In the 3rd of a series of articles, he meets HR leaders from Standard Chartered Bank, East London NHS Foundation Trust and Novae. Caroline has worked for Standard Chartered Bank (SCB) since 2001. Her experience is mainly generalist, with over 20 years’ experience, across four different industry sectors. Caroline currently has responsibility for Middle East, Africa, Pakistan, Americas and Europe, as well as the Global Support Functions. She really enjoyed her time in 2002 to 2004 when she was fortunate enough to work in Dubai, covering the Middle East and South Asia. Prior to SCB, she worked at Glaxo Welcome (now Glaxo SmithKline) for seven years. For the majority of her career, Mary worked for Ford Motor Company in Human Resources. She was promoted to HR Director early in her career and worked in Germany for 5 years where she was responsible for HR function in six European Companies. She has also worked for HSBC Investment Banking and Timberland Europe. Mary received an OBE for voluntary work and fund raising. She also received the CBI sponsored award called ‘Business Woman of the Year’ for her success in Industry. Mary is also a Local Government Councillor representing an area in Peckham. John joined Novae from financial services administration and advisory firm Mourant, where he spent five years as HR director. Prior to that, while at CMS Cameron McKenna, he helped manage the merger of Cameron Markby Hewitt and McKennas. With around 20 years’ experience in HR management, John has also held senior positions with Standard Life, global accounting and business advisory firm Grant Thornton, and City law firm Linklaters. Caroline Bagshaw Head Human Resources, MEPA, Americas and Europe and Head Human Resources Global Support Functions Standard Chartered Bank Mary Foulkes Director of Human Resource East London NHS Foundation Trust John Renz Human Resources Director Novae ISSUE 3
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LONDON- MANCHESTER
WWW.MDH.CO.UK
VIEW FROM THE TOPThe latest HR market insight
As the world economy experiences the greatest crisis for many decades, Macmillan Davies Hodes'CEO, John Baker has been meeting with HR leaders to find out the challenges their businessesand HR face. In the 3rd of a series of articles, he meets HR leaders from Standard CharteredBank, East London NHS Foundation Trust and Novae.
Caroline has worked for Standard Chartered Bank (SCB) since 2001. Her experience ismainly generalist, with over 20 years’ experience, across four different industry sectors.Caroline currently has responsibility for Middle East, Africa, Pakistan, Americas and Europe,as well as the Global Support Functions. She really enjoyed her time in 2002 to 2004 whenshe was fortunate enough to work in Dubai, covering the Middle East and South Asia. Priorto SCB, she worked at Glaxo Welcome (now Glaxo SmithKline) for seven years.
For the majority of her career, Mary worked for Ford Motor Company in Human Resources.She was promoted to HR Director early in her career and worked in Germany for 5 yearswhere she was responsible for HR function in six European Companies. She has also workedfor HSBC Investment Banking and Timberland Europe.
Mary received an OBE for voluntary work and fund raising. She also received the CBIsponsored award called ‘Business Woman of the Year’ for her success in Industry.
Mary is also a Local Government Councillor representing an area in Peckham.
John joined Novae from financial services administration and advisory firm Mourant, where hespent five years as HR director. Prior to that, while at CMS Cameron McKenna, he helpedmanage the merger of Cameron Markby Hewitt and McKennas. With around 20 years’experience in HR management, John has also held senior positions with Standard Life, globalaccounting and business advisory firm Grant Thornton, and City law firm Linklaters.
Caroline BagshawHead Human Resources, MEPA, Americas and Europe and Head Human Resources Global Support FunctionsStandard Chartered Bank
Mary FoulkesDirector of Human ResourceEast London NHS Foundation Trust
John RenzHuman Resources DirectorNovae
ISSUE 3
How is the global downturnaffecting your sector? Caroline “The pace of change in financial services globally wasquicker and deeper than what anyone had anticipated andthe competitive landscape has changed considerably over thelast year. We are one of the few banks to have come outstronger in this crisis - in terms of profits, capital and liquidity.We remain consistent with our strategy: to focus on Asia,Africa and the Middle East. However, the crisis also presents abank like Standard Chartered with lots of opportunities as ourpeers get increasingly distracted. We have taken thisopportunity to grab market share, attract deposits, hire seniorlevel people, and fast-track expansion in some businesses(like the Cazenove Asia acquisition).
However, while we have traditionally been a very conservativebank, we are extremely mindful of the risks and challengesthat lie ahead as these still remain difficult to predict.”Mary“Like other NHS Organisations the recession may result in areduction in the Department of Health's central allocation. Ifthere is also a reduction in the PCT allocation this could alsohave an adverse impact on our financial situation.
We are a proactive Trust and prior to the recession we werefocussing on prioritising our management cost by reviewingnew ways of working. Instead of automatically hiring new staffif we make a change to the structure, we now will review howwe can use the employees we have more efficiently to cover.
Despite the pressures that have arisen from the recession weare committed to offering a first class inpatient andcommunity service to our service user. We continue to worktowards creating more innovative strategies to cope with theeffects of reduced spending, especially as we foresee it reallystarting to effect us over the next couple of years.
The Boroughs we work in are some of the most deprived inthe UK and there has always been a disproportionate level ofunemployment and deprivation. The recession has madethings even worse. We are working with local communitiesand Job Centre Plus to ensure that the local population applyfor jobs in the Trust.
Due to the number of job losses in a number oforganisations, there are some highly quality candidates onthe market which will assist us in achieving our recruitmenttargets. There is still a shortage of nurses, who have asignificant impact on our service users. We have been ableto make some fantastic hires and vacancies have reducedfrom 22% to 7%.”John “The 2 key concerns for our sector is firstly the longer termliabilities born out of the financial crisis that have not yetcome through the system; and secondly the short supply ofcapital to underwrite. Both of these have measurable andmaterial impacts and the worst may yet be to come. At atime when there should be more business in underwritingand less in investment, one can support the other but bothare reasonably flat as interest rates have remained so low.
There are areas within the sector that aren’t so affectedwhere risk can be spread.”
What are the key challengesfor your organisation?Caroline “In these difficult times it is really important not to turn all ourattentions internally; we need to continue to focus on thecustomer and their needs and wants. We have to rememberthat they are all impacted by the economic situation and this isthe time when we should be there for them.
One of our key challenges is ensuring we seize opportunitiesthat have been presented because the competitive landscapehas changed, continuing to build on our strong commercial andemployee brands which have been a really positive outcome ofthe economic crisis for us.
It goes without saying that we must ensure operationaleffectiveness and efficiencies both in the business andfunctions. This is the time to be more focused on these areas;to ensure we have no surprises and that we are ready torespond to the upturn.
We have recently reviewed our Consumer Banking model tofocus more on the customer and getting the basics right. ForWholesale Banking, we are continuing with our customercentric strategy that we have been following for last 4 or 5 yearsthat has continued to deliver strong growth, even in thesedifficult times.”Mary“We are seeing a challenge from the private sector. Ascommissioners go out to tender for new suppliers of mentalhealth services we need to be prepared for the fact that we havemore competition of a different nature. We need to assess ourculture so that we can benefit in a competitive market. Inaddition we have to look at how we engage and retain our staff.We have an Organisation Development Programme which willinclude development and internal leadership programmes,enhancing communications between managers and staff andfinding different ways of acknowledging and rewarding staff orteams. NHS Trusts are restricted by Agenda for Change whichdictates how we can pay and reward staff. We will have tocompete against private sector providers who are not restrictedby the Agenda for Change.”John“Having a coherent approach in the way we lead ourpeople is certainly at the top of the agenda. Currentlyleadership and communication is top down. What needs tobe agreed is the style of leadership that balances businessgoals and individual preferences. Making sure we have theright skills and strong internal relationships are also the keyto moving the business forward.
Novae are also looking to grow, both organically and byacquisition. The business is going to have to change from itscurrent form to a model that is fit for purpose. It is going to bea maturation process of getting the people proposition right.”
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What are the keychallenges for HR? Caroline “Firstly, the key focus for HR is employee engagement. The HRteam has already developed great tools and processes to supportthis, so our focus is providing coaching and facilitation support tomanagers and their teams. We know from our internal research,as well as available external research, that one of the key levers tohighly engaged employees is their manager. It is simple,managers need to be clear about what their teams are expectedto deliver, ensuring they do what they do best, let them know howthey are doing, ensure they have to tools to do their jobs and takecare of them so they feel valued. The other important area for usis the organisation culture and values which sets us apart fromthe competition and is part of our strong employer brand. Boththese ensure we attract and retain talent.
Secondly, it is important that we have the right organisationalmodels. We have a number of organisational developmentreviews going on at this time to ensure that .
Thirdly, as a result of the global financial services environment,you will know that the Financial Services Authority (theRegulator) is reviewing how bankers are rewarded. We believethat reward is key to driving the right behaviours and has beenpart of our compensation philosophy. We continue to review thisto ensure a balance of risk (short term and long term) andreward, whilst remaining competitive.
Finally, we are continuing to transform our own function. Wereviewed our operating model last year and confirmed that itwas the right model for us. However, we needed to continue tostandardise and migrate processes, improve user friendliness ofsystems to encourage MSS and ESS and ensure that the HR isa real business player by having the right conversations aboutbusiness outcomes and not HR processes and products.”Mary “Engagement of our employees is essential. We will not onlybe competing for the contracts with new private operators, butalso for staff. We need to accept that we cannot adjust ourremuneration strategies in the same way that our newcompetition can. We can offer more to our employees thanpurely financial rewards. The benefits we offer are understated.Being the largest employer in the UK we have been able tonegotiate a variety of discounts to all staff and their families ona wide selection of services and retail products, which areoffered to us by leading, high street retailers, financial, legaland travel providers. We have introduced a life long learningprogramme and a scheme to ensure we become a placewhere staff with mental health issues are supported. We aredeveloping an environment where our service users aresupported if required when they join the Trust. We have anexcellent range of flexible working options and we havemaintained a final salary pension scheme. One of the currentprojects is the implementation of a new administrationstructure. The aim of the admin review was to:
• Foster continual service improvement and innovation. • Support clinical leaders to achieve excellence. • Value staff so that they can achieve their potential. • Promote and encourage learning.
We have carried out facilitated workshops for our clinical teamsto help equip them to deliver the Trust's five year plan.
We are reviewing our training and development department sothat it can deliver the ever requirement to deliver statutory andmandatory as well as personal development training.
We are introducing a number of schemes with the aim ofreducing the number of grievances. This includes the use ofmediation to resolve issues before they become formal. Over thepast 18 months there have been significant changes in the HRdepartment. This includes an increase in the number of HRteam members being based in the localities where the majorityof line managers and service users are based. The reputation ofthe department has improved but there is still a long way to go.The positive feedback is starting to filter through around thequality of work our customers are now experiencing.
I am fortunate to work with a leadership team who recognisethe importance of the HR teams’ role in delivering ourworkforce strategy.
The workforce strategy specifically addresses the Trust’sstrategic objectives to:
• Drive up the quality of our community and inpatient services• Develop a highly skilled, motivated and culturally competent
workforce• Maximise learning opportunities for all staff, provide high
quality teaching and training, and remain a centre ofexcellence for research;
• Develop existing and new partnerships to promote socialinclusion for all our service users
• Become the Mental Health Employer of Choice for East London.
The workforce strategy has six strategic aims:• To improve recruitment and retention in order to have the
right numbers of the right staff in place at the right time• To develop a highly skilled, motivated and culturally
competent workforce• To become the Mental Health Employer of Choice for East
London• To facilitate new ways of working to ensure that the best use
is being made of highly trained professionals• To improve workforce design and planning to ensure the
right workforce capacity• To develop Human Resources capacity and capability.
My role is challenging and whenever I feel frustrated, Iremember why the HR team are essential in offering a firstclass service to our customer and in turn they will provide ourservice users with the care and support they deserve.”John“Executive Remuneration has become a political issue andthere will be an increased need for intervention. Any argumentpreviously made by HR to reward long term performance overshort term risk taking is lost and the regulators are moving in.This means remuneration will become a compliance issuerather than a behavioural issue. As such, the ability to shapebehaviours and culture through reward will be limited bycompliance and regulatory bodies.
We will also need a consistent approach to leadership but stillallow for the entrepreneurial flair of our people that makes thebusiness successful. It is going to take a more intellectual styleof leadership to allow this to happen.
Insurance broking and underwriting does not have bestreputation for listening to the advice of HR. It will be my role toensure HR is heard amid the complex pressures the businesswill face legally and politically.”
VIEW FROM THE TOP – ISSUE 3 mdh.co.uk
Find out what’s challenging the HR Leaders in other sectors. Three more HR Leaders share their views on the currenteconomy and the challenges that their businesses and HR face.
If you would like to participate in ‘A View from the Top’ and share your views with the HR community, please contactJohn Baker on the number below.
