NACO Briefing
13th September 2011
Cheryl Marshall
Programme Director
Group Board Objectives
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All businesses have the same customer facing
strategy
• Leveraging the benefits of the rejuvenated brand
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Generating improvements through organic growth
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Increasing synergies and cross-selling opportunities
between businesses
and what the objectives mean for Unity
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Who we are
One executive team to engage
with the Group Board
One culture and one language
Share knowledge across the
Group
Consistently Co-operative values
A common brand which members
want to use whenever they can
What we do
• Put the Customer first
• Hungry for growth at pace
• Efficient - increasing profits and
reducing costs
We must remove unnecessary layers of management and duplication of
back office functions to allow us to focus on delivery to our members and
customers
Guiding Principles
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One Business within two years
Maximise benefits
Adopt best practise wherever we find it
Fair and transparent H.R processes throughout
Communicate openly and honestly at all stages
Minimise disruption in the Group
Minimise risk by being robust on process
The journey so far - Phase One: Jan – March
• Programme office set up &
high level milestone plan
• Customer Leadership Team
established
• Target Operating Model
developed
• High level business case
• HR and communications
processes defined
• Engaged Trade Unions
Customer Leadership
Team
Customer Leadership Team
Sean Toal
Commercial
Director,
Food
John Nuttall
Managing Director,
Healthcare
Rod Bulmer
Retail Director
Financial Services
Gill Barr, Group Marketing Director
Ian Dyson
Director of Trading
Group IS
Mike Austin
Managing Director,
Specialist Commercial
Businesses
Mike Greenacre
Managing Director
Travel Group
Russell Gill
Head of Membership
Maria Sloan
Head of Membership
Marketing
Ian Mackie,
Managing Director, Life Planning
George Tinning,
Managing Director, Funeralcare
Revenue Workstreams
The Customer Leadership Team will live beyond Unity
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Multi channel expansion
Proposition development
Messaging planning
Membership expansion
Capability building
Support and challenge
Target Operating Model
The Target Operating Model
• Operating strategy
• Operating vision and strategy; design principles
• Operating structures
• Where should activities, decisions and assets sit?
• Interactions
• Business flows/handoffs, commercial value, funding
• Infrastructure
• Organisation design and performance management
• Capability and behaviour
• Property and locations;
• Tax and legal structure;
• IT
and how it is being developed
The Group executive
identified where the
Group can add value,
the roles of the Group
Executive, Business
Units & Business
Shared Service Centre
to meet Unity objectives
Defined the design
principles for the new
operating model and
specified the changes this
will mean
Output = a revised
organisation design,
processes and
technology locations
… the benefits this could bring for Unity
Property
Consolidation of functions,
systems & processes
Revenue Generation
Procurement
Phase Two: April – June
• Sponsors engaged, steering
groups established, workstreams
mobilised, programme office
leads nominated
• Business partners allocated to
workstreams from HR, Finance,
IS Comms
• HR toolkit deployed to HRBP’s
• Costs & Benefits tracking
framework defined
• Union consultations ongoing
Functional Workstreams
Executive
Programme Board
IS Shared Infrastructure
& Operations
Estates
Corporate
HR
Corporate
Finance
IS Governance,
Strategy & Architecture
Premises
Strategy
People
Services
Finance
Shared Services
Internal
Audit
Marketing
Group Customer
Operations
Governance & Legal
Corporate Affairs
Risk
Procurement
Target Operating Model – Workstreams’ role
Workstream PDD’s
define the people, processes and technology required
to deliver the Target Operating Model
The Target Operating Model
• Operating strategy
• Operating vision and strategy; design principles
• Operating structures
• Where should activities, decisions and assets sit?
• Interactions
• Business flows/handoffs, commercial value, funding
• Infrastructure
• Organisation design and performance management
• Capability and behaviour
• Property and locations;
• Tax and legal structure;
• IT
Unity current activity
• Two further workstreams launch
– Delivering Our Customer Promise
– Culture
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Revenue & functional workstreams have commence delivery
HR business cases progress with HRBPs
Consultations with Trade Unions continue throughout
HR support processes mobilise
– Opportunities Centre
– Outplacement support
– Recruitment website
• Programme Office Change Implementation Management
Wayne Lee
Director of Employee Relations & Reward
Unity - People Principles
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Whilst achieving reductions in staffing levels is not the focus of the Unity
programme, the removal of silos and duplication of activities, together with the
restructuring of Corporate functions and teams will result in job reductions.
Voluntary redundancy will be offered wherever possible, but it is inevitable that
some compulsory redundancies will be necessary though the Group remains
committed to keeping them to a minimum.
The Group will always seek to identify redeployment opportunities and to this end
recruitment activity in the Corporate and Head Office functions has been tightly
managed for most of this year .
Where employees are redundant the Group has put in place generous redundancy
terms and will provide significant outplacement support including assistance with
CV writing and interview skills training.
The Group will always work with it's recognised Trade Unions to make sure that the
processes we follow are as fair and transparent as possible throughout the Unity
programme.
Unity - Aligning Terms & Conditions
Objectives
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A market aligned package that is fair, consistent and cost effective to administer;
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Full consultation with the Trade Unions;
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Minimise disruption to colleagues and the business ;
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Balance the above requirements with affordability for now and the future.
Unity - Aligning Terms & Conditions
Design
•Common set of T&C’s for all colleagues in the new Corporate Centre & Shared
Services.
– Group Customer Operations will be considered at a later date after assessing the operational
requirements of a single customer operations infrastructure.
– CFS will review the T&Cs of CFS employees who do not transfer under Unity and seek to align them as
far as possible
•The employer will be Co-operative Group Limited.
•The majority are being harmonised upwards harmonised .
Aligning Terms & Conditions
Pay & Grading
•In the new Corporate Centre, the Co-operative Group’s descriptions of grades will
be adopted (Role Bands 1 to 8). Employees who accept a lower graded role / lesser
paid role within a restructuring process under Unity shall receive compensation for
the losses they incur.
Bonus
•There will be no change to bonus arrangements for 2011, payable in 2012.
•Future bonus arrangements remain under discussion with the trades unions.
Holidays
• Overall holiday entitlement between respective grades will be ‘matched up’.
Sick pay
•Overall sick pay entitlement between respective grades will be ‘matched up’.
Aligning Terms & Conditions
Working hours
•The standard working week in the new Corporate Centre will be 37.5 hours.
•Colleagues from CFS who transfer under Unity to the new Corporate Centre will
have the option as whether or not to change their present contractual working hours
from 35 to 37.5 hours per week.
•Colleagues from CFS in Role Bands 4 to 8, i.e. CFS grade G, who are matched
into roles into the corporate centre will receive a corresponding pay increment (7%)
to cover their increase in standard working hours, subject to their pay remaining
within the parameters applied in CFS.
•Colleagues from CFS in Role Band 3, i.e. CFS grades E1&2, will be offered a one
off lump sum payment (7%), but no pay increment, to encourage adoption of the
37.5 hour working week.
•Colleagues from CFS in Role Band 2 are, in CFS, employed on all inclusive
salaries and will not be offered any incentive to move to a 37.5 hour working week.