Embracing Change Banking on change by Rachel Autherson Much is said about the need to empower Human Resources professionals, but few can ever explain how... Having found an elegant solution to this problem through a tough reengineering process, Standard Chartered sets an example Like many organisations, the Human Resource (HR) and Organisation Learning (OL) functions at Standard Chartered Bank used to be bogged down by daily administration. However, when Standard Chartered decided to create a new customer-led service culture, it became clear that things would have to change. For HR & OL to lead the organisational development, they had to become much more efficient. "We needed to create a competitive edge," says Miranda Holland, head of resources management, Group Organisation Learning, who headed the OL arm of the reengineering team, "but with headcount being reduced every year, we knew we would not find the necessary resources. Instead we had to create more time for existing HR & OL staff." Standard Chartered launched the reengineering project in 2002, following a detailed cost-benefit analysis. The objectives were clear: to save costs; increase efficiency; empower HR & OL; and ensure excellent customer service. Solutions also needed to be globally consistent and easily transferable across geographical boundaries, so that individual HR jobs could be performed from anywhere in the organisation. Streamlining process and structure The reengineering team began by standardising global processes. Representatives from each location worked together to define universally acceptable procedures. Even simple tasks, such as defining how a name should be entered into a database, caused conflict. "We were debating until we were blue in the face," says Ms Holland "We had an approval cycle, where we sought the direct input of users before and after designing each small part of the new process" Team members then started to identify duplicated roles. For example, in the learning arena there were multiple teams involved in delivery. "We had to be very brave," says Ms Holland, "but we managed to cut headcount by 50 percent." Within the new structure, strategy is developed through a leadership team including the Organisation Effectiveness (OE) team and Centres of Expertise (COE), such as the recruitment COE, who provide specialist knowledge and implement policies. Locally, in-country HR specialists manage local HR and OL needs and deliver solutions. Enabling through technology By centralising and automating HR processes, Standard Chartered has minimised administration for local HR & OL specialists. They created a Shared Services Centre (SCC) based in India, which handles routine HR enquires via e-mail or the telephone. They also developed a web-based HR & OL Self-Service system, through which basic transactions, such as leave requisition forms, are processed and through which HR mangers have access to a wide range of data. The benefits of reengineering are clearly seen in graduate recruitment. Standard Chartered used to receive over 32,000 applications per annum, each screened manually at a cost of approximately HK$75,000 per successful applicant. Now, they screen more than 60,000 online applications automatically and personally view only 12 percent of them. By applying intelligent technology, Standard Chartered have reduced the cost of graduate recruitment by around 70 percent. Making it happen It was vital that employees bought into the new system, and so Standard Chartered employed an external consultant to train the team in change management. Ms Holland says, "We had an approval cycle, where we sought the direct input of users before and after designing each small part of the new process." The team experienced many frustrations and Ms Holland says, "One of the biggest challenges was keeping our own motivation high, since we had little face-to-face contact with our global team members. However the consultant anticipated our need for moral support and included off-site team building events within the project plan." Ms Holland attributes the project's success to the quality of the team. Each team member had significant front-line expertise and, she says, "a shared enthusiasm for doing things better through technology". The future is bright Projections suggest that Standard Chartered is on track to recoup its US$20 million investment within the 28-month target. But there is still plenty to do. The next step will be to create a paper-free global HR & OL web-portal, offering integrated talent assessment; career planning; workforce planning; and real-time, work-based, experiential learning. Eventually, they hope that the HR & OL platform will become a profit centre in its own right. BEFORE & AFTER Before * Process-oriented HR & OL staff * HR & OL productivity limited by inefficient systems * Global replication of HR & OL activity * Global variation in HR & OL processes * Process administered locally * HR & OL transactions administered by local HR & OL staff * Only HR staff have access to HR & OL systems * Global variation of technology; many systems and suppliers * Paper-based administration After * Strategy-oriented HR & OL staff * OL productivity increased by 30 percent * Streamlined structure, OL headcount reduced by 50 percent * Globally standardised HR & OL processes * Process administered centrally * Centralised and automated HR & OL services * Employees have direct access to HR & OL systems * Technology standardised globally; reduced systems and suppliers * Web-based administration Taken from Career Times 28 February 2003 Your comments are welcome at [email protected]