mark martin keynote london
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HR In the Digital AgeMark Martin
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Executive Summary• Mark Martin, Group HR Director at Direct Line Group
• Direct Line Group is a retail general insurer with leading market positions in the UK and businesses in Italy and Germany. We have over 20 million customers.
• We employ a diverse workforce of 15,000 people, including contact centre staff, mechanics and actuaries.
• Royal Bank of Scotland Group is now a minority shareholder. RBS Group was required to divest its insurance business following an EU mandate, as a result of the banking crisis.
• In order to divest, we needed to build our own HR function, independent of RBS Group personnel, systems and processes.
• We selected and implemented a suite of 7 cloud based systems – Workday, Taleo, Success Factors, Neocase, Ceridian, Aon Hewitt & Transversal
• The HR function separated successfully in June 2012 and the business separated dependencies from Group in October 2012
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Target Customers
What do we have to do to be brilliant?
Capability
Engagement
We all know what makes a business successful
We have known it for thousands of years!
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Believe it or leave it
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We currently don’t see the value of people or customers
Strategic Choices
StrategyObjectivesVision
Executive Leadership
Critical Tasks
Formal Organisation
CulturePeople
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Two things are changing in parallel…
The world is wrestling with what is wrong for people and for customers
Advances in technology are increasing the transparency of customer & employee behaviour & its consequences
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We need to do the right thing for people & customers
With the transparency that new technology brings those that have been in conflict will form a powerful community of
change.
The wealth creation opportunity is becoming increasingly clear
The world is demanding it
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For example this powerful community of change will demand
• Customer Life Time Value
• Profit Per Employee
• People Manager Index
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What HR systems will be required to take us in to the digital age?
Usability
Capability
V
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All about Direction of travel
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Turning a vicious circle into a virtuous circle
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What makes a system usable?
Object Orientated
Timely
AccessibleSocial
Configurable
Up to date
Accurate
Trustworthy
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Moving HR from the what to the how
13
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What is the role of HR in the Digital Age?
HR will have two main roles:
• Enabling managers to manage the capability and engagement of their people
• Strategic risk management – ensuring there is the right capability & engagement to deliver the business strategy
If the business don’t want it or cant afford it AND the Board and ExCo do not believe it is a strategic risk HR do not do it!
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HR function in the Digital Age
‘Advanced’ Business Partner
“understanding the business strategy &
capability requirements”
People matters “Payroll & HR matters
support team”
Technical Expertise“providing technical
expertise eg reward’
Planning, Delivery & Infrastructure
“driving the creation & implementation of the people infrastructure & development roadmap
Systems configuration & maintenance
Supplier interface & management
HR delivered through Digital People Infrastructure
Business Strategy
Strategic People Risks
Core HR Constantly in constructive conflict
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You can't manage what you don't measure
• The world is changing and advances in technology are increasing transparency of customer and employee behaviour and its consequences
• As a result HR will need to fundamentally reassess their role in the ‘Digital Age’
Once you can measure your people & customers you will manage it
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Q&A