Unlocking the Power of Efficiency: Your Ultimate Guide to Shared Services

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In the fast-paced and competitive business landscape of today, efficiency is the key to success, our Guide to Shared Services can help support on your journey. Every organisation strives to maximise its resources, cut costs, and streamline its operations. This is where shared services come into play. Whether you are a small start-up or a multinational corporation, unlocking the power of efficiency through shared services can revolutionise your business.

Guide to Shared Services

This ultimate guide to shared services will take you through every aspect of shared services, from understanding the concept to its implementation and benefits. We will explore how shared services can enhance productivity, boost cost savings, and improve customer satisfaction. Moreover, we’ll dive into real-life examples and success stories to illustrate the transformative impact of shared services across industries. Whether you are considering implementing shared services in your organization or simply want to gain a deeper understanding of this powerful strategy, this guide is your go-to resource. Get ready to unlock the power of efficiency and propel your business towards greater success with shared services.

In modern corporate operations, strategic innovation is key to unlocking efficiencies and staying ahead of the competition. One such approach that has emerged as a game-changer is the concept of Shared Services.

Welcome to our comprehensive guide, to help you with the in-depth understanding required to navigate the intricacies of Shared Services successfully.

Throughout this article, we will delve into the fundamental principles of Shared Services, unravel its multifaceted benefits, address the challenges encountered during its implementation, and discern the nuanced differences that set it apart from other operational models. 

When did shared services begin?

Shared services has been around for many years. The earliest recorded example was when General Motors established a shared services centre to centralise its support functions in the 1980’s. Therefore, our Guide to Shared Services is nothing new but hopefully can provide some updated guidance.

However, the widespread adoption of shared services as a business model gained momentum in the 1990s as organisations sought ways to streamline their operations and reduce costs.

Shared services has become a popular approach to enhance efficiency, minimise duplication, and drive down costs.

5 challenges when setting up a Shared Service Centre

What does a SSC do?

A shared service centre (SSC) is a centralised unit within an organisation that provides common services to multiple departments or business units within the organisation. The primary purpose of a shared service centre is to streamline and standardise support functions such as finance, accounting, human resources, information technology, procurement, and other administrative services.

The SSC typically centralises these support functions, leveraging economies of scale to reduce costs and increase efficiency. By sharing resources and expertise across multiple departments or business units, the SSC can provide high-quality services at a lower cost than if each department were to manage these functions independently.

The specific services offered by a shared service centre may vary depending on the needs of the organisation, but typical functions may include processing invoices, managing payroll and benefits, providing IT support, managing procurement activities, and handling accounting and financial reporting. Overall, the goal of a shared service centre is to improve efficiency, reduce costs, and provide high-quality support services to the organisation.

What is in shared service centres (SSC)?

Shared services typically include a wide range of support functions that are common to most businesses. The specific services offered may vary depending on the needs of the organisation, but common functions that are often included in shared services are:

  1. Finance and accounting: This may include functions such as accounts payable, accounts receivable, general accounting, financial reporting, and budgeting.
  2. Human resources: This may include functions such as recruitment, employee onboarding, payroll processing, benefits administration, and employee training and development.
  3. Information technology: This may include functions such as help desk support, software development, network administration, and database management.
  4. Procurement: This may include functions such as supplier management, purchasing, contract management, and vendor negotiation.
  5. Administrative support: This may include functions such as document management, mail and courier services, and facilities management.

What is the difference between shared services and outsourcing?

The difference between shared services and outsourcing lies in how each approach delivers services to an organisation.

Shared services is a model where an organisation consolidates and centralises its support functions into a shared service centre, which is a unit within the organisation that provides common services to multiple departments or business units within the same organisation. The main goal of shared services is to streamline and standardise support functions, reduce duplication of effort, and improve efficiency while maintaining control of the services in-house.

On the other hand, outsourcing involves contracting out a specific business function or process to a third-party service provider. The service provider assumes responsibility for performing the outsourced functions, nd the organisation is no longer responsible for managing those functions. The main goal of outsourcing is to reduce costs and improve efficiency by leveraging the expertise and resources of the service provider.

The key difference between shared services and outsourcing is that shared services is an in-house model where the organisation retains control of the support functions, while outsourcing involves contracting out the functions to an external service provider who assumes responsibility for delivering the services.

 

What is an offshore service centre?

An offshore shared service is a type of shared service centre (SSC) that is located in a different country from the organisation it serves. Offshore shared services typically involve outsourcing support functions to a service provider in another country with the aim of reducing costs and leveraging the benefits of the service provider’s expertise and resources.

Offshore shared services are often established in countries with lower labour costs or where the service provider has specialised expertise. These service centres may provide a range of support functions, including finance, accounting, human resources, information technology, procurement, and administrative services, among others.

Offshore shared services offer several advantages, including access to a large pool of skilled workers at lower costs, 24/7 service availability, and the ability to scale services up or down based on changing business needs. However, offshore shared services also come with challenges, such as cultural and language barriers, time zone differences, and the need to comply with different regulatory frameworks.

Overall, offshore shared services can be an effective way for organisations to reduce costs and improve efficiency, but it requires careful consideration of the potential benefits and challenges. 

What are the benefits of shared services?

  1. Cost savings: Shared services allow organisations to consolidate support functions and streamline operations, resulting in significant cost savings. By eliminating duplication of effort, reducing headcount, and leveraging technology, shared services can help organisations achieve cost savings of up to 30%.
  2. Increased efficiency: Shared services enable standardisation of processes and policies, which leads to improved efficiency and productivity. By eliminating silos and centralising support functions, organisations can achieve greater consistency and faster processing times.
  3. Improved quality: Shared services can lead to higher quality services by leveraging the expertise and resources of a dedicated team. By centralising support functions, organisations can ensure that services are provided by skilled professionals with the appropriate training and experience.
  4. Greater agility: Shared services can provide greater agility by allowing organisations to quickly scale services up or down based on changing business needs. By leveraging technology and shared resources, organisations can respond more quickly to changing market conditions or customer demands.
  5. Improved risk management: Shared services can help organisations improve risk management by ensuring compliance with regulatory frameworks and reducing the risk of errors or fraud. By centralising support functions, organisations can ensure that policies and procedures are consistently applied and that risks are identified and managed effectively.

Overall, shared services can offer significant benefits to organisations, including cost savings, increased efficiency, improved quality, greater agility, and improved risk management.

What is a shared service delivery model?

A shared service delivery model is a way of organising and providing services within an organisation or between different organisations. In this approach, instead of each department or unit managing its own services separately, they come together to centralise and share certain services to achieve greater efficiency and cost-effectiveness.

Imagine it as a group effort where everyone contributes and benefits. It’s like having a common pool of resources and expertise that all the involved parties can tap into. For example, various departments in a company, like human resources, IT, finance, and procurement, might pool their resources and expertise to create a central team that handles these services for the entire organisation. This way, they can avoid duplication of efforts and reduce expenses, making things more streamlined.

The shared service delivery model allows organisations to standardise processes, improve service quality, and take advantage of specialised skills from a dedicated team. Instead of each department hiring its own experts for every service, they can all rely on the central shared service team, which often leads to cost savings and increased efficiency.

It’s important to note that implementing a shared service delivery model requires good communication and coordination among the involved parties. By working together, they can make sure the services meet everyone’s needs and achieve the desired goals. This way, organisations can concentrate on their core functions while still benefitting from shared expertise and resources.

What are finance shared services?

Finance shared services refer to the centralisation and standardisation of finance-related functions across different business units within an organisation. In this model, a dedicated finance shared services centre (FSSC) is established to provide services such as accounting, financial reporting, payroll, accounts payable, accounts receivable, and other finance-related functions to all business units.

The FSSC operates as a centralised unit responsible for managing and delivering finance services to the entire organisation. It leverages economies of scale, standardisation, and automation to achieve cost savings and improve efficiency. The FSSC typically employs skilled professionals who provide finance services to the entire organisation using common processes, policies, and systems.

Finance shared services offer several benefits to organisations, including:

  1. Cost savings: By consolidating finance-related functions and centralising them in a dedicated FSSC, organisations can achieve significant cost savings through economies of scale, standardisation, and automation.
  2. Improved efficiency: Finance shared services enable standardisation of processes, policies, and systems, leading to improved efficiency, accuracy, and timeliness of financial reporting.
  3. Enhanced control and governance: Finance shared services can improve control and governance by providing greater visibility and transparency into financial transactions, ensuring compliance with regulations, and reducing the risk of errors and fraud.
  4. Better decision-making: Finance shared services can provide better decision-making support by providing timely, accurate, and reliable financial information to the organisation’s leadership.

Overall, finance shared services can help organisations to achieve greater efficiency, cost savings, and improved financial control, while enabling better decision-making and supporting the organisation’s strategic goals.

What is HR shared services?

HR shared services refer to the centralisation and standardisation of human resources (HR) functions across different business units within an organisation. In this model, a dedicated HR shared services centre (HRSSC) is established to provide services such as recruitment, employee onboarding, payroll, benefits administration, training and development, employee relations, and other HR-related functions to all business units.

The HRSSC operates as a centralised unit responsible for managing and delivering HR services to the entire organisation. It leverages economies of scale, standardisation, and automation to achieve cost savings and improve efficiency. The HRSSC typically employs skilled professionals who provide HR services to the entire organisation using common processes, policies, and systems.

HR shared services offer several benefits to organisations, including:

  1. Cost savings: By consolidating HR-related functions and centralising them in a dedicated HRSSC, organisations can achieve significant cost savings through economies of scale, standardisation, and automation.
  2. Improved efficiency: HR shared services enable standardisation of processes, policies, and systems, leading to improved efficiency, accuracy, and timeliness of HR-related activities.
  3. Enhanced employee experience: HR shared services can improve the employee experience by providing consistent, high-quality services to all employees, regardless of their location or business unit.
  4. Better decision-making: HR shared services can provide better decision-making support by providing timely, accurate, and reliable HR information to the organisation’s leadership.

Overall, HR shared services can help organisations to achieve greater efficiency, cost savings, and improved employee experience, while enabling better decision-making and supporting the organisation’s strategic goals.

What is Global Business Services?

Global Business Services (GBS) is a business model that involves the centralisation and standardisation of various business functions within an organisation into a single, integrated unit. The goal of GBS is to streamline business operations, reduce costs, and improve efficiency by consolidating functions such as finance, IT, human resources, procurement, and other support functions into one organisation-wide unit.

GBS typically involves the creation of a centralised shared services centre (SSC) that provides services to multiple business units or locations across the organisation. The SSC can be located in one country or multiple countries and can utilise a range of delivery models such as onshore, offshore, or nearshore delivery.

The GBS model is typically characterised by a focus on standardisation and automation, with the use of shared services technology platforms and tools to drive efficiency, reduce duplication, and achieve cost savings. The model also often includes a strong focus on customer service, with an emphasis on providing high-quality services to internal business units or external customers.

The benefits of GBS include increased efficiency, improved customer service, reduced costs, and greater visibility and control over business operations. By consolidating and standardising business functions across the organisation, GBS enables organisations to streamline their operations, reduce duplication, and achieve greater consistency and control over their processes. Additionally, by leveraging economies of scale and standardisation, GBS can drive down costs and improve overall business performance.

 
 

What qualifications are specific to Shared Services or Global Business Services?

The Hackett Group offer a diploma and an Advanced Diploma in Global Business Services, which enhance skills, knowledge and capabilities. You can find more information about this here

However, there are several qualifications that can be relevant for professionals working in these fields.

Finance-related Shared Services roles, relevant qualifications could include:

  • Chartered Institute of Management Accountants (CIMA)
  • Association of Chartered Certified Accountants (ACCA)
  • Certified Public Accountant (CPA)
  • Certified Management Accountant (CMA)
  • Financial Risk Manager (FRM)

HR-related Shared Services roles, relevant qualifications could include:

  • Chartered Institute of Personnel and Development (CIPD)
  • Society for Human Resource Management (SHRM)

IT-related Shared Services roles, relevant qualifications could include:

  • Certified Information Systems Security Professional (CISSP)
  • Information Technology Infrastructure Library (ITIL)
  • Project Management Professional (PMP)

Global Business Services roles, qualifications that provide a broad understanding of business operations and management could be relevant. These could include:

  • Master of Business Administration (MBA)
  • Bachelor’s degree in Business Administration
  • Lean Six Sigma Certification

Additionally, soft skills such as communication, teamwork, problem-solving, and adaptability are also critical for success in Shared Services and GBS roles. Therefore, developing these skills through experience, training, and education is also important.

What is Robotic Process Automation (RPA)?

RPA stands for Robotic Process Automation. It is a technology that uses software robots or “bots” to automate repetitive, rule-based tasks in a business process.

  • Bots can be trained to mimic human actions such as logging into applications, copying and pasting data between systems, extracting and processing data from documents.
  • Is designed to increase efficiency and reduce human error in business processes. By automating routine tasks, RPA frees up human workers to focus on more complex and value-added activities. It can also reduce the time and cost associated with manual data entry and other repetitive tasks.
  • It can be used in a wide range of industries and functions, including finance, accounting, human resources, procurement, customer service, and more. RPA software can be integrated with existing business systems and applications, allowing businesse to automate tasks without significant changes to their existing technology infrastructure.

RPA is a powerful tool to increase efficiency, reduce costs, and improve the quality of business processes.

Hopefully our Guide to Shared Services has been useful for more information you can contact our Shared Services specialist James Cumming. 

OUR FOCUS ON LONG-TERM PARTNERSHIPS

At re:find Executive Search we believe that recruitment is not a one-off transaction but rather a long-term partnership. By building long-term relationships with our clients, we help them to find and retain the best talent for their organisation.

  • Every organisation is unique and we feel that there is no one-size-fits-all solution when it comes to recruitment.
  • re:find offer bespoke recruitment solutions, that are tailored to meet the specific needs of each client.
  • Whether you need help with a single hire or a full recruitment campaign, we can help.
  • We commit to providing our clients with the highest quality service.
  • We take the time to understand your organisation’s culture and values, and the specific skills needed for each campaign.

For more information please get in contact with our Managing Director, James Cumming.

When to Implement a Leadership Change for Business Growth

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A senior leadership team plays a pivotal role in guiding an organisation towards success. Sometimes to achieve this success, a change of leadership at the top becomes necessary. Identifying this moment is crucial for the sustained health and growth of any company. Here, we explore the indicators that suggest it’s time to consider a change in your senior leadership team.

1. Stagnation in Performance

Business stagnation in performance refers to a period where a company experiences little to no growth.

Key performance indicators (KPIs) such as revenue, profit margins, market share, or other significant metrics, will show this.

This plateau can signal underlying issues that may lead to long-term detrimental effects on the company’s health and success.

A clear sign that a change may be needed is a noticeable stagnation or decline in the company’s performance. This could manifest as consistent underachievement of financial targets, loss of market share, or a decline in productivity.

Fluctuations in performance are normal, a persistent downward trend may indicate that the leadership’s strategies are no longer effective in the current business environment.

2. Loss of Vision and Direction could indicate a Change of Leadership is required

Leadership is as much about vision as it is about execution. If the senior team seems to lack a clear, strategic direction or fails to communicate a compelling vision for the future, it may signal the need for new leadership. A fresh perspective can rejuvenate the company’s strategy and re-align the organisation with its core objectives and values.

The loss of vision and direction refers to a situation where a company no longer has a clear or coherent strategy guiding its operations, growth, and long-term objectives. This can manifest in various ways and have significant implications for the company’s success and sustainability. Below are key aspects that illustrate what loss of vision and direction entails and its potential impacts on a business:

2.1 Lack of Clear Objectives

Without a clear vision, a company might struggle to set and pursue meaningful objectives. This can lead to a lack of focus in its operations. And then, making it difficult for the business to allocate resources effectively or pursue opportunities that align with its core competencies and long-term goals.

2.2 Difficulty in Decision Making

A clear vision and direction facilitate decision-making processes by providing a framework against which options can be evaluated. Without this clarity, decision-making can become inconsistent, reactive, and lacking in strategic focus. This can lead to missed opportunities or misallocated resources.

2.3 Eroding Competitive Edge

A well-defined vision often includes elements of differentiation that set a company apart from its competitors. Losing sight of this unique value proposition can result in a business that struggles to stand out in the marketplace, affecting its ability to attract and retain customers.

2.4 Demotivation Among Employees

Vision and direction are crucial for employee motivation and engagement. They provide team members with a sense of purpose and belonging. Without a clear vision, employees may feel disconnected, unsure of their contributions towards the company’s goals, leading to lower productivity and higher turnover rates.

2.5 Misalignment of Efforts can mean a Change of Leadership is required

A strong vision ensures that all aspects of the company—from its product development and marketing strategies to its customer service and internal processes—are aligned towards a common goal. The loss of vision can lead to disjointed efforts, where departments or teams work in silos, undermining the company’s overall effectiveness and efficiency.

2.6 Strained Stakeholder Relations

Investors, partners, and customers often engage with a company based on its vision and the promise of what it aims to achieve. When a company loses its direction, it can erode trust and confidence among these key stakeholders, potentially leading to reduced investment, partnerships, and customer loyalty.

2.7 Inability to Adapt

A clear vision includes a forward-looking component, anticipating changes in the market and adapting accordingly. The loss of vision and direction can make a company less agile, slowing its response to industry trends, technological advancements, or shifts in consumer behavior, which can place it at a competitive disadvantage.

3. Resistance to Change

In today’s fast-paced world, adaptability is key. If your leadership team is resistant to change or slow to respond to industry shifts, technological advancements, or changes in consumer behaviour, it could be detrimental to your business. A leadership team that embraces change, seeks innovation, and is willing to pivot strategies when necessary is vital for long-term success.

4. Erosion of Company Culture can Result in a Change of Leadership

If there’s a noticeable decline in employee morale, engagement, or an increase in turnover, particularly among high performers, it might be a reflection of leadership issues. A change at the top can help to reset the culture, align it with the company’s values, and boost morale.

5. Deterioration in Stakeholder Confidence

Confidence from stakeholders, including investors, customers, and employees, is fundamental. If stakeholders express concerns about the company’s direction or leadership’s decisions, it’s important to take notice. Losing stakeholder confidence can have a severe impact on the company’s reputation, financial health, and operational stability.

6. Lack of Succession Planning

A forward-thinking leadership team will have a clear plan for succession to ensure the company’s resilience and continuity. If there’s a lack of focus on developing internal talent or identifying potential future leaders, it may indicate a need for change. Effective succession planning is a hallmark of robust leadership and organisational health.

Conclusion about Change of Leadership

Deciding to change your senior leadership team is not a decision to be taken lightly. It requires a thoughtful assessment of the current leadership’s effectiveness, the company’s performance, and the broader industry context. Recognising and acting upon the need for change can be a transformative step, paving the way for renewed success and growth. As such, it’s imperative for companies to remain vigilant, assessing their leadership effectiveness regularly and being prepared to make tough decisions when necessary for the greater good of the organisation.

OUR FOCUS ON LONG-TERM PARTNERSHIPS

At re:find we have been in Executive Search for over 20 years. We believe that recruitment is not a one-off transaction but rather a long-term partnership. We aim to build long-term relationships with our clients, providing ongoing support and advice to help them find and retain the best talent for their organisation.

In addition, as a business, we understand that every organisation is unique and that there is no one-size-fits-all solution when it comes to recruitment. That’s why we offer bespoke recruitment solutions that are tailored to meet the specific needs of each client. Whether you need help with a single hire or a full recruitment campaign, we can help.

We are committed to providing our clients with the highest quality service. As part of this, we ensure that we take the time to understand your organisation’s culture and values, as well as the specific skills and experience needed for each role.

For more information on our executive search practice and our CCS framework
please get in touch with our Managing Director, James Cumming.

Please visit our website to see more of our knowledge hub: https://refind.co.uk/

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A store without stock? Yes please.

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A store without stock is still a store

You don’t need to have ‘stuff’ in a store for it to be a shop. There are alternatives. 

Imagine this. You’re in shopping mode and heading down to the high street. There are a load of stores with shelves groaning under the weight of all the inventory displayed within their walls. You are spoilt for choice. 

Yet instead of selecting from any of them, you head for the one emporium that appears to have no stock whatsoever. It might sound a curious decision, but it is not without merit. 

You’re a modern person and you know your way around both your laptop and the smartphone to which you are umbilically attached. 

So you know exactly what’s out there and what the price of almost everything is, long before you arrive at the shops. All you have to do is pick up your order and perhaps have a little ‘service’ time. 

That is the underlying premise of Nordstrom Local, an offshoot of the eponymous Seattle-based department store group designed to provide a more convenient option for existing customers, layered with a range of services. 

At present there are two Nordstrom Locals, both in Los Angeles. The first opened at the end of last year and the second, measuring 3,000 sq ft, welcomed its first ‘shoppers’ a couple of months back. 

They do have a very limited amount of fashion stock, but none of it can be taken away and the clothes are really just there as tasters of what Nordstrom is about. 

More to the point, they are not just glorified click-and-collect stations. Instead, visitors can have a coffee at the in-store café (or maybe even a ‘drink’ drink) while they wait for their shoes to be repaired, having handed in their clothes to the dry cleaner, prior to having a manicure. This is service. 

And shoppers appear to like it. Two more Nordstom Locals are scheduled for LA this year and it’s a fair bet that more will follow in other large Nordstrom-friendly conurbations. 

Is this, however, a store? It doesn’t really have anything tangible that you can buy in situ and walk away with, but it does provide something that Amazon at present cannot. 

Shoppers may make purchases online, but they can then enjoy a range of services as they complete the transactional loop when picking up the goods. 

This is an online shop with bells and whistles and seems a good alternative to the mundane click-and-collect counter. There are also reasons to come back. 

Nordstom Local may not be the whole of the future, but it certainly looks like one direction in which things are headed. 

Click here to read the original article from Retail Week. 

James Cumming is our MD, Interim and Transformation Search specialist. If you’ve got a hard-to-fill role and need some help, get in touch. Connect with him on LinkedIn here.

If you would like to find out more about re:find and how we can support you and your business then please get in touch.

Why HR Shared Service Centres fail

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HR Shared Services

HR Shared Services are set up to streamline HR activities, which reduces costs, increases the efficiency of business processes and frees up time to concentrate on strategy.

HR Shared Services functions can add a lot of value if you do it right. If you get it wrong, it can have a negative effect on employee experience and relationships throughout the business with HR can be damaged.

Technology plays a big part in making HR Shared Services effective, but the exact structure and scope of HRSS really depends on the company and various other factors.

Why does HR Shared Services go wrong?

Organisations use shared services as a way of streamlining their HR activities, typically concentrating transactional activities into a centralised and commonly shared function. The shared service model can help businesses reduce costs and increase the efficiency of processes and allow a greater focus on HR strategy.

When done well, HR Shared Service Centres (HRSSC) add untold value to an organisation. However, get it wrong and it can ruin employee experience and destroy the relationship between HR and the wider business. But why does it fail?

You haven’t engaged the business in the change

When you implement an HRSSC, two groups of people need properly consulting. The people working in the shared service centre and those who will be using it. Both of these groups are equally important. You need to take your customers on the journey with you and engage and influence, in order for them to understand how you’re changing the way they currently do things. If either of these groups of people aren’t engaged, the SSC simply won’t work.

You have rushed it

Delivering an HRSSC into a business takes time. It isn’t something you can decide to do and then implement within 2 weeks. You cannot do it half-arsed. There are a lot of things to consider – from mapping out processes and ensuring you have the right technology, right down to hiring and onboarding the right talent. All of these things take time. If you rush any areas and don’t give them the time and attention they need, the chances are they will fail.

You don’t use analytics to measure success and continuously improve

Establishing the right metrics to analyse in an HRSSC is the key to success. By monitoring data, you can see how your teams are performing and highlight inefficiencies and potential problem areas, that may need investigation.

Measuring results and data enables informed decisions to be made that drive your HRSSC to continually develop and run better. This gives your HR teams the resources they need to be successful, provides employees with a better experience and ultimately gets the business results you want.

Poor leadership

Having the right leader is important for any team, particularly in a shared service environment. If you have the wrong leaders in a shared service centre, the wheels can fall off the entire operation, leaving you with an unhappy, disengaged team who lose their passion for delivering excellence. When this happens, the knock-on effect across the business can be immense.

A good shared service leader should be able to look beyond the SSC and understand the impact it has on employees, as well as customers and clients.

You don’t have the right technology

Technology is a fundamental component of any HRSSC. If you don’t have the right technology, then the SSC just won’t work. So, you need to check that your current HR systems are fit for purpose. Take time looking at your current systems and processes and what you need them to do. HR tech is a big investment, so make sure you choose the right one. Meet multiple vendors, get demonstrations – and challenge them, to make sure the system does everything you need it to. Modern HR technology allows HR to manage incoming requests, review case histories and related employee files, provide consistent responses and escalate a case when necessary.

You are probably reading this and wondering why I am writing all of this, because it all seems like common sense, right?

You would be amazed at how often people miss out one of the key elements to ensure their HR Shared Service Centre is a success.

So, do you agree? Have you had a Shared Service function which is been fantastic or failed spectacularly? Share your experiences!

If you would like to find out more about re:find and how we can support you and your business then please get in touch.

James Cumming is our MD, Interim and Transformation Search specialist. If you’ve got a hard-to-fill role and need some help, get in touch. Connect with him on LinkedIn.

Restructure in retail – will the changes prove counter-productive?

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Restructure in retail

Tesco has launched a consultation with 9,000 workers as it ramps up efforts to build a “simpler, more sustainable business”. 

The supermarket giant is proposing a raft of changes that will affect staff working on in-store counters and in stock management, merchandising, staff canteens and head office operations. 

It has been a constant theme during Dave Lewis’ four years in charge of Tesco – building a simpler, more sustainable business, focused on serving customers better. 

On Monday, Tesco revealed the latest phase of that long and arduous journey during a series of emotionally charged meetings with staff. 

The grocer is streamlining its operations across a number of areas, which will impact 9,000 staff. Around half of them are expected to lose their jobs. 

Service counters such as fishmonger’s, butcher’s and delicatessens will close in 90 Tesco stores. The number of hours required on merchandising will be slashed as the grocery giant reduces the number of layout changes it makes in its supermarkets. 

Similarly, there will be a “significantly reduced workload” for those working on stock management as new technologies track gaps on shelves. Staff canteens will no longer have a hot food service – negating the need to employ third-party caterers – and 500 jobs will be axed at head office as the retailer moves to a “simpler and leaner structure” at Welwyn Garden City. 

Basic economics 

Bernstein analyst Bruno Monteyne, a former Tesco director, also understands the motivations behind the grocer’s sweeping changes. 

He believes they would have been “planned and executed over several years”, rather than being a knee-jerk reaction to the “competitive and challenging market’”. 

Those challenges have been born out much more than the changing shopper habits Tarry alludes to. A perfect storm of rising rents, ballooning business rates, the increasing popularity of online shopping and the relentless onslaught of the discounters has forced Tesco – and its big four rivals – to radically rethink operations. 

“The increased wage costs, National Insurance contributions, business rates and the like will all contribute to the basic economics of the counter operation making little sense in many stores,” Grocery Insight director Steve Dresser says. 

The emergence of the discounters as a mainstay of British food shopping has also played a big part in Tesco’s streamlining. The supermarket giant is bidding to regain a group margin of 3.5% to 4% by 2020, and so operating in a more efficient fashion – in the way that Aldi and Lidl so famously do – has been a central driver. 

But the growth of the German duo has had some potentially unforeseen consequences. As Tesco ploughed investment into its entry-level ranges – creating the successful stable of ‘Exclusively at Tesco’ brands – shoppers have been slowly lured away from the service counters that were so long seen as a crucial differentiator between big-four operators and their discount counterparts. 

“The irony with this strategy is that chasing discounters in meat, fish and cooked meats has led to a strengthening of the value tier in terms of price points and range, designed to stop discounters establishing a price gap,” Dresser explains. 

“However, if you make your aisle of product cheaper and certainly equivalent to discounters’, then there are fewer reasons to visit the service counters unless you are a real die-hard shopper.” 

Beware the pitfalls 

The finances, then, seem to stack up. But could the changes have an adverse effect on the store experience? It is a pitfall that both Sainsbury’s and Asda have fallen into in the not-too-distant past. 

Both grocers made radical changes to store teams over the past few years, most recently Sainsbury’s when it “reset” its shopfloor structure in 2018. The business “streamlined” the number of in-store roles, creating five “broader” positions – down from the 22 it used to offer. 

But availability in its stores suffered during a hectic summer of trading, as its supermarkets struggled to keep up with demand heightened by the heatwave and England’s surprise progression in the World Cup. Those issues were not fully addressed ahead of the crucial Christmas period, despite the protestations of boss Mike Coupe. 

Similar fears may well be raised among analysts and Tesco investors after it said it had “found a simpler way to conduct store routines”, which would be rolled out to all its shops. 

Clive Black, head of research at M&S and Morrisons house broker Shore Capital, is among those who admits he will be “watching with heightened interest to see overall availability in the estate over time” as the new model filters through. 

Roberts, however, has few concerns and suggests some of the hours freed up from the service counters could be used to make sure customer service and availability do not deteriorate in a similar fashion. 

“You can tell that counter staff aren’t all rushed off their feet. If they can be redeployed elsewhere to contribute a lot more to customer service, or to improve availability, then arguably that’s a better use of their time and Tesco’s money than standing behind a quiet service counter. I wouldn’t read too much into it in terms of the impact it will have on the broader offer,” he argues. 

Minor risk 

But could the loss of those counters – and the expert knowledge that employees working on them are supposed to provide – ultimately lead to a loss of customers? After all, Morrisons sees its market street proposition of butchers, bakers and fishmongers as a key USP – and that could leave it well-positioned to reap the rewards of Tesco’s move. 

“To some shoppers, at least, counters are an important part of how they shop. It might be the case that this is a deal-breaker for them and they will shop elsewhere,” Roberts says. 

“The obvious choice for those shoppers would be Morrisons and, to a lesser extent, Waitrose. Indies as well might be able to step up to the plate on meat and fish in particular. But ultimately, fresh fish in the UK is such a microscopic part of our way of life that not many people are going to miss those counters. 

“So the overall risk of Tesco losing customers is minor. It doesn’t appear that a lot of shoppers are habitually frequenting the counters and spending a lot of money through them.” 

Echoing Roberts’ views, Monteyne concludes that “the plan reassures us in many ways” and insists the impact on Tesco’s quality credentials “should be minimal”. 

But the effect on costs should be more visible. Monteyne estimates Tesco will save between £150m and £170m a year as a result of the latest structural changes. About 70% of those benefits will be felt in 2019/20 – the year Tesco is aiming to return group margins to that magic figure of almost 4%. 

Monteyne’s ultimate conclusion should ring in the ears of Tesco’s critics and rivals: “Anybody doubting the Tesco margin recovery should think again.” 

Click here to read the full article by Retail Week 

James Cumming is our MD, Interim and Transformation Search specialist. If you’ve got a hard-to-fill role and need some help, get in touch. Connect with him on LinkedIn here.

If you would like to find out more about re:find and how we can support you and your business then please get in touch.

AI in action – the transformation of retail

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Artificial Intelligence and how it's transforming retail
AI in action – the transformation of retail

The opportunities presented by artificial intelligence are potentially transformative. And far from it being a technology of tomorrow, many retailers are already exploiting it. And the reasons are clear: a survey carried out by Vista Retail Support in August 2018, shows that 77% of UK consumers feel that artificial intelligence (AI) can “transform their shopping experiences”. More than two-thirds believe retailers should be doing more to bring the technology into their stores. 

But what does that mean in practice? The emergence of new tech tools – and an accompanying lexicon of new words and phrases – means there is a lot that 21st century retail boards need to get to grips with. 

So where is the retail industry at with this futuristic technology? Click here to read the full article by Retail Week, as we take a look at some of the most exciting examples of AI in action. 

1. AI-powered visual search 

Shoppers don’t want to spend hours searching for clothes online, especially on a touchscreen. As Aubrey-Cound points out, how people like to browse is – “visually – they don’t want to do it with text”. 

Cue one of the most important developments in ecommerce to date: visual search. 

Instead of suggesting products that are similar only on paper, visual search presents shoppers with clothes that look and feel like the ones they are browsing. Instead of size and colour alone, they can find items with the same style or detail. Big name retailers are committing to the AI tech that drives it.

In the UK John Lewis has permanently installed ‘Cortexica’s Find Similar’ technology on its iPad app, after a six-month trial.

2. Stock optimisation 

There is nothing new about the need to keep shelves stacked and stock up to date. But with stores and warehouses hooked up to increasingly busy and complex ecommerce sites, there has never before been such a need for speed. 

With 491 stores, Morrisons decided it needed to get on board with the technology. The solution highlighted one of the most important and potentially valuable uses of AI – replenishment optimisation. 

The grocer’s partnership with AI specialist Blue Yonder led to a 30% reduction in shelf gaps for starters. 

Taking into account a whole range of factors, including weather forecasts and public holidays, as well as automatically analysing sales and stock data from stores, the system Morrisons uses now makes 13 million stock ordering decisions per day. 

Morrisons chief executive David Potts has described the replenishment system as the retailer’s “biggest new initiative” in technology. 

The use of this technology is by no means confined to the grocery sector. In fast fashion, where huge volumes of product moves in and out of warehouses barely touching the shelves, the possibilities of automation are plentiful.

3. The use of chatbots 

“If you think you can spot a robot a mile off, take a minute to reflect on Amazon’s voice-activated AI assistant Alexa. The fact that ‘she’ isn’t real didn’t stop more than a quarter of a million of users proposing to Alexa last year. Millions more have happily chatted away with AI chatbot customer service agents – inappropriately or not – as though they were nattering with a human.” 

Whether their customers know it or not, some big retailers are using chatbots as live agents on their customer service lines and to help steer shoppers to products. 

A survey by IBM last year revealed that 65% of millennials say they prefer to be greeted by a chatbot than a human agent. So bots are not just a way of cutting back costs on call centres – they are preferred by many users and are more sophisticated than humans when it comes to searching vast quantities of information. 

4. Intelligent recommendations 

Since not long after ecommerce began to take off, retailers have been offering suggestions to shoppers based on previous purchases. AI takes this to another level. 

North Face’s platform doesn’t just remember what shoppers have bought in the past, it uses IBM’s Watson AI to work out what you might need – after all, a stroll through the Peak District and a trek up Mount Kilimanjaro are very different scenarios. 

Using AI to process a variety of data about the customer, from the usual characteristics such as height and weight to more specific details such as where in the world they’re off to, North Face offers shoppers gear customised for each trip. 

5. Personalised marketing on the go 

AI isn’t quite in the era predicted in Minority Report, where a shopper will be recognised and assisted the second they set foot in a store. 

But that is not to say that AI hasn’t made it into the real, bricks-and-mortar world. 

Early versions of shopping apps were little more than a hand-held directory of a mall or even a high street. This is being refined with more intelligent systems that ‘guide’ shoppers around stores, knowing – thanks to geolocationing technology – where they are in a store, backed up by AI to help them find what they’re looking for. 

US department store Macy’s has made some of the most exciting advances in this field. In 2016, working with IBM Watson, the retailer unveiled the Macy’s On Call app, the closest thing so far to a smartphone personal shopper. 

Customers type in what they’re looking for and are then directed by the app to the right place in the store. With time the AI-powered app learns and refines the answers it gives back based on that shopper’s individual habits. With its in-built geolocation, intelligent learning ability, chatbot and visual search functions, the Macy’s app ticks a lot of AI boxes. 


To discuss this further, you can email me on danny@refind.co.uk. 

re:find help businesses find the talent they need to deliver transformational change.  Clients call us when they need change to happen quickly and effectively. We are Executive Search and Interim Search specialists. 

Click here to read about what we do specifically in the retail sector.

Predictions for retail this year

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Predictions for retail

As we head into 2019, we’re facing a pretty uncertain time. While 2018 was a year of growth for many retailers and brands, accelerated by tax cuts and low unemployment, 2019 is more precarious. The stock market is in flux, many retailers are facing the reality of steepening tariffs, emerging markets are flexing their muscles as they take on a greater share of global growth and it’s anyone’s guess on which way the wind might blow fickle consumers and their expectations for connectivity around every transaction. 

That said, you could also say that the glass is more than half full and that these challenges also present opportunities for savvy retailers and brands willing to face the winds head on. Here are 10 key points on what the retail industry should expect in 2019. 

Click here to read the full article by Forbes but here is an overview: 

1. Retailers will get personal with zero-party data 

Consumers are becoming more aware of their rights thanks to Facebook and GDPR, which is making way for a new age of privacy and personalisation. If 2018 was the year that marketers were forced to wean themselves off third-party data sets, 2019 will be the year they shift to “zero-party data.”  

2. Small is the new big 

Digitally-native and niche brands have come on the scene over the last couple of years, and 2019 will be the year that the growth of these brands will eclipse the growth of traditional retailers – and not only in their online businesses. 

3. Customer-centricity will go mainstream 

Retailers have been saying they want to “put the customer at the center of everything they do” for the past two or three years, but have struggled with how best to scale this. In 2018, retailers learned that simply monitoring social media is not enough. We believe that, thanks to the adoption of technologies like Voice of Consumer (VoC) Analytics, 2019 will be the year that the industry actually makes the customer-centric model happen. Offers a robust solution that enables them to determine what their customers want and also to deliver it – with speed and at scale. 

4. Retailers and consumers will begin to feel the weight of tariffs 

Retailers will be faced with making decisions in 2019 to determine the categories and products they raise in price and push the cost increases onto the customers, and where they need to absorb the cost increases themselves. This may force retailers to evaluate whether it makes sense to exit certain categories if they cannot sell product profitably.  We all wait on the outcome…

5. Algorithms take control 

Retail has long been driven by savvy merchants who had a penchant for following their gut to the right product selections and it has been an art far more than a science. But as more retailers implement innovative tools to leverage consumer data – whether to confirm the merchant’s gut feeling, or to guide decisions altogether – 2019 will be the year when the true science of retail takes hold. 

6. Millennials will flock to brands – they will want luxury 

Millennial purchasing power continues to increase.  By 2025, Bain & Co. forecasts that Millennials and Generation Z will represent 45% of the global personal luxury goods market.  This is a great opportunity for luxury brands, but it’s also a challenge since younger consumers think and shop differently than their parents. 

7. Baby Boomers will constrict spending in a much bigger way 

Along with the growth of Millennial spending, comes the decline of spending by Baby Boomers.  Millennials are expected to overtake Boomers in population in 2019 as their numbers swell to 73 million, while Boomers decline to 72 million. But the Boomer segment is still a huge cohort whose spending habits drive the economy. 

8. Apple jumps the shark 

A warning to Apple aficionados:  The Crown of Cupertino is losing its luster.  We haven’t seen any real innovation from Apple in years – with only incremental enhancements to the iPhone and Mac since 2010.  Apple has grown revenues by increasing prices – the average selling price of an iPhone in 2018 was $765 which was up 20% from 2017, while unit sales have flattened out. 

9. Amazon: Prime membership plateaus and prices increase 

Amazon’s growth of Prime membership is showing signs of slowing down. At 55 percent, just over half of the U.S. is subscribed to Prime, which is about the same as in 2017.  This was the first year that Prime membership did not increase. Some of this may be due to the fact that Amazon raised the Prime membership price in May to $119, but it is more likely a function of reaching a saturation point in the U.S. market. 

10. The final divide of retail winners vs losers 

2018 saw additional retail bankruptcies, and 2019 will be the year of the final shakeout.  Most of the winners and losers have been decided, but several more will hit the mat this year.   

As in any year, 2019 will have a tremendous amount of opportunity for those who spot the trends and position their companies to capitalise on them. 

To discuss this further, you can email me on danny@refind.co.uk. 

re:find help businesses find the talent they need to deliver transformational change.  Clients call us when they need change to happen quickly and effectively. We are Executive and Interim Search specialists. 

Click here to read about what we do specifically in the retail sector.

Transformation in the insurance sector – a glimpse at the scale of the challenge

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transformation in the insurance sector

 

Adam Hembury is COO, Innovation and Transformation Director at Gunbury Limited: business, operations and technology consulting across financial and professional services. For this blog, Adam has kindly shared his views on transformation in the insurance sector, discussed the challenges faced and given some home-truths!

 

Transformation: Having worked across financial and professional services, I continue to be both surprised and intrigued by the potential for change across the insurance industry, as well as the enormity of the task, whichever part of the industry you sit in.  To be fair, the insurance industry covers a diverse spectrum, from the highly competitive personal lines sector, where margins are tight and regulatory pressures high, through to the business carried out in the hallowed halls of Lloyds of London, where ways of doing business have changed little for decades.  Yet as an industry, change has been slow coming, and many insurance businesses are struggling with legacy systems, clunky processes and out-dated operating models. These strategic issues then spawn significant transformation programmes underpinned by large technology spends.  Yet in an industry that is relatively immature in the delivery of change, this creates a massive challenge – how to manage and deliver the transformations in a way that avoids the usual pitfalls of escalating costs and a failure to realise the benefits.

 

So, I hope to provide a brief overview of some of the industry challenges and provides a few age-old truths we need to be reminded of concerning delivering change.

 

What is driving the need for transformation?

 

The case for whole-scale change and transformation is probably most acute in the Property and Casualty arena and, in particular, motor and home.  Fiercely competitive markets, where traditionally the insurance companies lose money on new customers and look to build profitability off customer inertia on renewal.  However, with the FSA’s review of ‘dual’ pricing, the pricing differential between new and existing customers may well diminish.  Coupled with ever-increasing price competition, insurance providers will need to focus on three key areas: customer retention, data analytics and pricing, to create innovative products that exploit market opportunities and continued driving out of operational costs through automation, self-serve and digitisation.

 

In the realms of commercial and speciality insurance, the pressures may not be quite as intense, however, the same three focus areas are driving significant change – customer-centricity, the sophistication of products and pricing, and operational efficiency.  The investments required to deliver change are often much larger, but my experience in these sectors is that despite large IT functions and change teams, they struggle with the same delivery disciplines and challenges described above.

 

Each one of these key areas requires a complex mixture of change across technology, data, processes, roles and capabilities, governance and organisation. However, many insurance businesses are faced with the need to be driving change in all three areas at the same time.  Without exceptional leadership and change expertise, this could well lead to taking on more change than the business can handle, which often manifests itself in cost and time over-runs, management exasperation, and failure to deliver.

And the home-truths you mentioned?

 

Delivering meaningful change is tough, often because the big investment in money, time and effort is in technology, and increasingly in data, yet the actual value is not delivered by the technology or the data, rather by changes to the way the business operates and uses the technology and data to deliver value to customers.  All too often the complexity of the technology and data implementation starts to take over the programme and the leadership attention, such that the real business change is de-prioritised, and a good chunk of the real value is lost.  In a slow-moving industry with decent margins, this is not ideal, but in the competitive, margin-driven world of insurance where the speed of change is accelerating, this is a recipe for disaster.

 

What are the typical challenges?

 

An indecent rush to start the project, with insufficient clarity and business ownership on setting out the strategic aims and the core outcomes, as well as robust challenge to limit the scope to the essentials rather than trying to build the perfect solution with all of the ‘bells and whistles’.

 

Too many different programmes going on at the same time, usually due to a lack of strong portfolio planning and decision-making to identify the priorities and the sequencing roadmaps that best support the overall strategic objectives.

 

Over-optimistic timelines and budgets, especially in the technology and data areas, leading to implementation delays, de-scoping, additional budget and other critical programmes being delayed.

 

Insufficient engagement and ownership from the business, in the design of the technology and data solutions, as well as in designing the new processes, roles, responsibilities, operating model, decision accountabilities, and in the testing and roll-out approach.

 

A programme ownership and governance approach that maintains transparency and honesty.  Sounds simple yet it is remarkably easy to find yourself in a position where you start to promise delivery against increasingly impossible timelines, especially as key relationships with stakeholders come under stress.

 

The above issues are present in all change initiatives, but here I am looking at major projects or programmes that are significantly changing the way a business operates.  For example, if a motor insurer is implementing a new cloud-based, sophisticated pricing tool with a view to compete in the aggregator markets, then the entire business needs to increase its speed of operation to match the 24/7 nature of the market – real-time data and algorithms to support quotes, automated policy administration and documentation, increased system resilience and emergency response times. This will require, in addition to the technology and data solutions, redesigned processes, roles, governance structures, new reporting metrics and a roll-out an approach that helps the overall business move to a new way of working, as it will not just happen by chance.  These programmes must be set up, managed and measured on the overall business outcomes and benefits, which is why these are business programmes supported by IT, not IT projects with a bit of business input.

What would be your takeaway, Adam?

 

This article is not offering any new insight into the issues set out above, as most professionals have seen these challenges. The insight is that despite our accumulated knowledge and experience, these issues arise again and again. Why? Because the issue is rarely about the technology itself, it is about the business fully and relentlessly taking ownership of the transformation programme, rather than letting IT do their thing, and the ability of the leadership of the programme and the business to bring their expertise to bear in a constructive and open environment. To do that all parties need to trust that the right expertise has been recruited, is operating effectively as a team, and that when difficulties arise, honesty, transparency and collaboration will make the best decisions for the business.  Transformation is never easy, and is certainly not an individual sport, as it succeeds or fails on the joint commitment to deliver the business outcome.

 

Thanks to Adam for sharing his views on transformation in the insurance sector. Adam has written a series of articles in the Transformation in the Insurance Sector, including:

How data analytics is transforming the insurance sector.

Typical challenges in getting new technology and data to work.

How innovative is the insurance sector?

 

 

To discuss transformation and change further, you can email me on James@refind.co.uk.

You can view more about James Cumming our change and business transformation specialist here.

Hiring an Interim Executive? You need to get it right! Discover the 8 step process you should follow, by downloading our free eBook here.

 

How to progress your interim career

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I asked my network about an interim career and if they thought interim professionals could focus on their own development. Or if they were dictated by what was out there on the market and got a number of thoughts and opinions back.

A concern of many individuals in permanent employment is the perceived lack of career progression as a contractor. Some think that if you move into interim employment, you stay in that one position for the rest of your working life.

Sarah Cowley, Executive Coach

“Managing one’s career takes courage, and the confidence to say no. A successful career is dependent on personal growth which results from spending time and money on learning.”

A key difference of the employment status of an interim (becoming a LTD company) is the mentality. You’re not just an individual carrying out an assignment (or a job) but actually thinking and behaving like a business. Just as any other successful business might do, you need to innovate and develop.

Steve Lungley, Interim Transformation Director

“We will have had to define our services, identify the markets, sectors and environments in which we want to operate. Then develop marketing and channel strategies, sell our services and deliver them (brilliantly of course, because our reputation depends on it). On top of tht manage all those other things day to day things like accounting, tax and VAT.”

Like any business, understanding your routes to market is absolutely pivotal. Developing your personal and employer brand are key to finding that next assignment. Developing broader business management skills such as finance, sales and marketing are necessary to having a successful interim management business.

Barry Flack, Interim HR Director

“We have to supplement the assignment with a need to hone true business development capability – and personally – given that your proposition is everything. Then it requires a constant need to learn, adapt and stay relevant.”

To continuously develop your brand, you have to get your name out there through delivering successful assignments, communicating with key decisions makers and staying front of mind through social media channels (such as blogging, as well speaking and attending seminars in the relevant subjects and sectors).

Of course, all these activities take time and in the life of an interim this may be at the weekend, evenings or may even require you to take unpaid leave – so it’s not all plain sailing.

Although the activities outlined above certainly require additional time on top of the day job, they can bring increased opportunities.

Paul Powell, Interim Head of Resourcing

“Some of my moves have been intentional, gaining functional or sector knowledge and have involved calculated risk. It’s often meant stepping outside of the confines of my comfort zone. As a result, I have gained some good experience and a portfolio of skills, plus it has allowed me to share some pretty powerful insights with some clients.”

The interim market provides a wealth of opportunities and challenges. There’s short-term problems to fix, ideas to come up with and to deliver quickly. It can, therefore, be an exciting place for the right people.

Hayley Proctor, Interim Head of Resourcing

“Being the interim allows you the freedom to be bold and disruptive with your ideas to drive positive change…you are also expected to be the master of your ideas so learning and experimenting become the norm, whilst you’re given far more freedom and autonomy than your permanent counterparts.”

As an interim, there is no forced structure to your development as there is in permanent employment. You are expected to provide your own advice and guidance in this respect, to take responsibility for your own career and your own development.

Sharon Green, Interim OD and Change Expert

“I set aside a budget each year for CPD, ask clients for feedback and want to keep developing my business”.

Regardless of whether an individual is a permanent employee or an interim, if that person wishes to continuously develop their capabilities, they will progress.

I had a recent conversation with a senior HR director, who has just been offered a year’s extension. (And turned it down for the right reasons!) The CEO couldn’t believe that they were leaving, to go to nothing…who in their right mind would do this in permanent employment?

I think the feedback is overwhelmingly positive regarding an interim career. However, this is very different from being a permanent employee and won’t be for everyone!

So in summary:

  • Interims are often thrown in the deep end and need to learn new skills.
  • They need to be responsible for their own development and need to ensure that they make it happen.
  • Interims think of themselves as a business – building a proposition and delivering against it.
  • They are adaptable and learning broader skills (rather than developing their career vertically).

James Cumming is our MD and leads our HR practice. He has recruited senior HR professionals for over 15 years and has experience in finding niche HR talent. Connect with him on LinkedIn here.

If you would like to find out more about re:find and how we can support you and your business, then please get in touch.

The return of the unions?

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The return of the unions?
The return of the unions?

Industrial relations skills reemerge amid modern challenges like Brexit and recent strikes at Tata.

It all seems like a bit of a minefield – could we actually be seeing a resurgence in union activity?

Might the mass redundancies we regularly see in retail prompt a surge in union membership?

In this article, we speak to career interim Bill Gregory who just happens to be a HR specialist and an industrial relations expert:

One of the best uses of an interim is to carry out a time-bound task, that calls for a specific skill and expertise that the in-house team either doesn’t have or doesn’t have the time to use. Why keep a specialist on the payroll if they are only used infrequently? Not to mention, what kind of professional would work under those circumstances?

One such area these days is employee and industrial relations – this can take many forms:

• Varying terms and conditions to reflect new customer demands
• Requests for union recognition
• Pay deals
• Complex restructures involving demanding consultations

These tough areas present challenges:

1. Expertise. No doubt an incumbent HR director would take on these tasks. Sometimes, however, things can come out of the blue, or there is something at a local level that needs more of an additional resource – a heavy hitter with specific experience and expertise to come on board.

2. Time. Dealing with these issues requires immense planning and a carefully managed implementation.

There is also a significant amount of engagement that is needed with key stakeholders in the business – it is vitally important to have regular informal meetings with employment lawyers and trade union officials in order to be familiar with the environment and the law. A large part of the role is spent reading the legal case reports every week and interpreting what the impacts will be.

3. Long term. Often these exercises can be tense and having someone to manage it in the short-term, means that the long-term relationship between the employer and staff, their union etc., is protected. That’s not cowardice on the employer’s behalf – that’s good sense.

4. Project management. Having one person project managing the exercise means a single, competent point of contact for the busy HRD. For example, industrial action can cause loss of output and have a major impact on reputation. A skilled practitioner will work with the client’s communication team to contain these effects, as well as to train managers what to expect and how to cope.

A good interim will aim to leave behind the result the client wants and to share knowledge and expertise with the in-house team. Good interims do not protect their knowledge in the way that management consultants might do, especially when using proprietary systems.

Bill points out that while some traditional areas of union membership have ceased to exist, where they are in place, actual density of membership is as high as ever (rail, transport etc) and that there is an increasing tendency for those in the professions (junior doctors being a good example) to take action.

There is little doubt in Bill’s mind that it has set a precedent for other groups.

To discuss further, you can email me on James@refind.co.uk.

You can view more about James Cumming our change and business transformation specialist here.