Management & OrganisationalCapability – can we have the latter

without the former?

Paul Smith – HR DirectorLV= General Insurance

HR Leaders Conference

introduction

It is often said that “people are our most important asset”:

how true is this & what does is actually mean?

Founded in 1843, now UK’s largest Friendly Society

6000 people5.5m policyholders17 sitesA big agenda!

but first…where we’ve come from …

LV= 2015

900 people 1m policyholders 1 site

LV= 2007

business strategy & organisational evolution…

2007 2011 2015 onwards….

To become a Top 5 car insurer

#3today

To become‘Best Loved’

A sustainable business model

#3by 2013

#5by 2011

By 2014:• Most recommended• Most trusted• Best service

By 2014:• Most recommended• Most trusted• Best service

New entrant “start-up” focused

primarily on build

Established brand & what’s we’re known

for

Buy & build

Define our people & culture strategy to embed success

Performance culture

People culture

Leadership culture

Diversification & collaboration

keep it simple…

“culture eats strategy for breakfast”

the vision of our people…

what drives us…

PEOPLE

MAKES OUR PEOPLE FEEL: Engaged

Valued

They can make a difference

Easy to do business = less effort

Efficient calls

Lower cost expense = lower price

More competitive products

TIME SAVED REINVESTED: More coaching time

Better agents

Making their job easier

SalesCustomer SatisfactionEmployee EngagementLoyalty/RetentionFirst Call Resolution

AttritionRe-workCosts

GOING DOWN

GOING UP CUSTOMERSBUSINESS

our challenges…

Rapid

growth

Protected by

LV= bubbleMixed skill,

will & confidence

business implications…

Strong growth over the past 5 years to 6k people across 18+ sites has required a specific “need to deliver” talent proposition

This is brought out in the analysis which shows a strong propensity towards `Delivery’ & `Finding Solutions’ behaviours in those recruited with `Leadership’ & `Communication’ being the weakest

Definitions of the role of the manager at all levels

Methodology for implementing competency frameworks

One group competency framework to Management assessment tools reviewed and fit for purpose

Policies reviewed Legal framework and supporting

materials in place Management standards clear Increased case management capability

for managers at all levels Managers toolkit fit for purpose Heart to Hearts fit for purpose People Managers Passport (ongoing

content accuracy only)

Management Capability

management capability…

Knowledge BehavioursSkills

Managers have the confidence and practical ability to manage people well, using knowledge, judgement, intuition and communications skills:

People Managers Passport content and delivery process reviewed and made fit for purpose

Self-serve L&D Offerings available A coaching & learning culture

developed & embedded (70/20/10)

LeavingNew

Candidate Experience

Onboarding Experience

Employee Experience

Leadership Framework

“EVERY LV= EMPLOYEE DESERVES A GOOD LINE MANAGER”

leading by example – our leadership framework…

Enterprise Builder

Authentic

Collaborative

Empowering

Curious

Balanced Judgement

In a more challenging environment what must we do for our people?

sustainability is our biggest challenge…

sustainable engagement is the best predictor of performance

LV=

LV=

we have very solid foundations…

Engagement profilesFully engaged: I am engaged, enabled, and energised

Unsupported: I am engaged, and energised but lack support and enablement to really perform

Low Energy: I am engaged and enabled, but not energised

Disengaged: I am not engaged, enabled, or energised

51%

27%

12%

10%

Fully Engaged

Low Energy

Un-supported

Dis-engaged

51% of our people are fully engaged - another 39% are engaged but either have low energy or do not feel supported

LV= engagement “hierarchy”…

Growth

Teamwork

Management support

Basic needs

• I have the equipment/technology/tools/resources I need to do my job properly• I have a very clear idea of my job responsibilities/purpose

• I understand what I need to do to improve my performance • My immediate line manager gives me regular feedback on my performance• LV= makes adequate use of recognition and rewards other than money to encourage good performance • How do you rate your last performance review on the following: helping you identify your strengths and

development areas

• People in LV= support each other to get the job done • My team/department constantly looks for ways to better improve the customer experience • People in my department are accountable for delivering • People in my department work together as a team

• I believe that LV= provides opportunities to develop my skills (e.g. training courses, on the job training, role progression etc.)

• I believe I have the opportunity for personal development and growth in this company

Favourable score 85%+

Favourable score 75%+

Favourable score below 75%

Sustainable

Definition Understand organisation levers Design a competency profile in the business

Profiling

Development

Alignment

Profile c300 leadersUnderstand development needs Quality assurance

Develop layered multiple learning solutions – 70:20:10

Refine with people practicesIntroduce into Performance Mgt

Drive into the LV= DNA

snapshot of the “role model leader” journey…

The RML story to date

First draft competencie

s including levels defined

Competencies refined through

workshops with

‘competency working group’

Competencies overlaid

onto organisation

(using role profiles)

RML profile design

principles defined and

agreed

Integration into

performance

management principles defined and

agreed

‘Dry run’ of competency assessment completed

RML profiling

handbook developed and signed

off

Competencies refined

following dry run

Profiling design

principles defined and

agreed

Profiling

briefing days

attended by all

managers

CommunicationsExec (wider) engagement, launch events, RML intranet site, RML champions, ‘Buddy packs’, ‘Next steps’

sessions, FAQs

Organisational assurance:

Analysis of requirements for leadership in GI Ops and current gaps

Profiling completed

for all managers

Integration into

Recruitment principles defined and

agreed

a holistic approach…

Safe Bets(Solid, Dependable, Reliable)

Spiky(more challenging,

potentiallyless experienced, morepotential)

V

Technical Experts Inspirational LeadersV

Today Future PipelineV

developing a talent pipeline…

The Leadership profilerole model leader indicators:

Inspires engagement from others

Shows personal drive and accountability for results

Leads change and innovation

Drives individual and team performance

Influences and collaborates to get things done

Makes informed judgements and intelligent

decisions

Focuses on the customer and commercials

*Competencies which include high impact behaviours - Indicators of talent

forcing & fostering – a twinned approach…

create a sustainable talent pipeline…Profile Current PopulationBehaviours RatingLeadership StrengthsKey Development RequirementsDe-railment FactorsPotential Factor

Senior Leadership Group

Profile Current Population Maxed – not moving further in org Potential (Horizontal/Vertical)Key Development (Stay in role/Broaden experience at current or next level)

EXCO DRs

Profile Current PopulationBehaviours RatingLeadership StrengthsKey Development RequirementsDe-Railment FactorsPotential Factor

Senior Leavers(12 Months)

Profile Current PopulationBehaviours RatingLeadership StrengthsKey Development RequirementsPotential Factor

Senior Hires12 Months

Talent Pooling

Market Mapping

Targeted Succession

Planning

Development Offering to

nurture identified potential

Ensuring future fitness…

we’re living in a volatile, uncertain, complex and ambiguous world

The workforce will shift significantly over the next seven years

The number of 15 to 29 years olds in work will fall by 500,000

The number of 60 to 74 year olds will increase by 1.5 million

Research from Oxford University revealed that 47 per cent of jobs in the US are “at risk” of being automated over the next 20 years

How it all adds up…

Customer

Member

Engagement = Member Customer²

“The definition of insanity

is doing the same thing

over and over again

and expecting different

results.”

People

conclusion…

So the answer to the original question is….NO…

it is very difficult to have organisational capability without strong management capability which is:

agile commercial-centric firmly rooted in driving a strong people, customer &

shareholder orientated culture