1) Management capability is essential for organizational capability. Strong management is needed to drive organizational agility, commercial focus, and build a culture centered around people, customers, and shareholders.
2) LV= has grown significantly over 5 years but now faces challenges in sustaining engagement as the workforce and world changes rapidly. Automation and demographic shifts will impact nearly half of all jobs over the next 20 years.
3) LV= is developing leadership capabilities through competency profiling of managers and a holistic approach to talent management, performance management, and learning and development. This will help create a sustainable pipeline of talent to meet future challenges.
2. introduction
It is often said that “people are our most important asset”:
how true is this & what does is actually mean?
3. Founded in 1843, now UK’s largest Friendly Society
6000 people
5.5m policyholders
17 sites
A big agenda!
but first…where we’ve come from …
900 people
1m policyholders
1 site
4. business strategy & organisational evolution…
2007 2011 2015 onwards….
To become a Top 5
car insurer
#3
today
To become
‘Best Loved’
A sustainable
business model
#3
by 2013
#5
by 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
8. what drives us…
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
Sales
Customer Satisfaction
Employee Engagement
Loyalty/Retention
First Call Resolution
Attrition
Re-work
Costs
10. 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
11. 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)
Leaving
New
Candidate
Experience
Onboarding
Experience
Employee
Experience
Leadership
Framework
“EVERY LV= EMPLOYEE DESERVES A GOOD
LINE MANAGER”
12. leading by example – our leadership framework…
Enterprise
Builder
Authentic
CollaborativeEmpowering
Curious
Balanced
Judgement
In a more
challenging
environment
what must
we do for
our people?
13. sustainability is our biggest challenge…
sustainable engagement is the best predictor of performance
LV=
LV=
14. we have very solid foundations…
Engagement profiles
Fully 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
15. 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%
16. Understand organisation levers
Design a competency profile in the business
Profile c300 leaders
Understand development needs
Quality assurance
Develop layered multiple learning solutions –
70:20:10
Refine with people practices
Introduce into Performance Mgt
Drive into the LV= DNA
snapshot of the “role model leader” journey…
17. The RML story to date
First draft
competencies
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
Communications
Exec (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…
18. Safe Bets
(Solid, Dependable, Reliable)
Spiky
(more challenging, potentially
less experienced, more
potential)
V
Technical Experts Inspirational LeadersV
Today Future PipelineV
developing a talent pipeline…
19. The Leadership profile
role 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…
20. create a sustainable talent pipeline…
Profile Current Population
Behaviours Rating
Leadership Strengths
Key Development Requirements
De-railment Factors
Potential 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 Population
Behaviours Rating
Leadership Strengths
Key Development Requirements
De-Railment Factors
Potential Factor
Senior Leavers
(12 Months)
Profile Current Population
Behaviours Rating
Leadership Strengths
Key Development Requirements
Potential Factor
Senior Hires
12 Months
Talent
Pooling
Market
Mapping
Targeted
Succession
Planning
Development
Offering to
nurture
identified
potential
21. 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
22. How it all adds up…
Customer
Member
Engagement =
Member Customer²
People
23. 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
Editor's Notes
Our history and future
Our roots go all the way back to 1843 as the largest Friendly Society, I will today be talking about the General Insurance Division
Back in 2006, 900 people worked in the General Insurance area
Back then we had circa 1 million customers
Now we have over 3000 people working in the GI Operations area that I look after covering Sales, Service, Claims and Operational Support for the company.
The GI business has grown to having over 4 million policy holders now.
From only 1 office in 2006, we’re up to 8 UK locations.
In GI we started with just the 1 site in Bournemouth and have grown to 8 sites across the country. Now 4th largest insurer in the UK.
In 2010 our people voted overwhelmingly to be Britain's best loved insurer – we’ll never be satisfied but to move in that direction, we need to ensure our customers & people are at the heart of what we do.
At the end of year updates, our GI Exec asked our people to help us choose our GI vision for the next five years (Our vision was to be a top 5 UK car insurer by 2012. However we beat that, two years ahead of plan!)
We asked our people to vote on the following:
1. To become a Top 3 car insurer
2. To become a Top 5 general insurer in Car, Home and SME (small to medium sized enterprises)
3. To be the UK’s best loved insurer
In order to become the UK’s best loved insurer, we have a number of schemes in place which invest in both our people and customers.
Throughout the presentation we will highlight what these schemes are.
In 2010 our people voted overwhelmingly to be Britain's best loved insurer – we’ll never be satisfied but to move in that direction, we need to ensure our customers & people are at the heart of what we do.
At the end of year updates, our GI Exec asked our people to help us choose our GI vision for the next five years (Our vision was to be a top 5 UK car insurer by 2012. However we beat that, two years ahead of plan!)
We asked our people to vote on the following:
1. To become a Top 3 car insurer
2. To become a Top 5 general insurer in Car, Home and SME (small to medium sized enterprises)
3. To be the UK’s best loved insurer
In order to become the UK’s best loved insurer, we have a number of schemes in place which invest in both our people and customers.
Throughout the presentation we will highlight what these schemes are.
Overall, at LV= excellent customer satisfaction is a key metric rather than just a focus on profit an income. Therefore we are continually looking for ways to improve the customer experience.
As part of our strategy we focus on making it easy to do business with us, reducing customer effort which creates greater efficiency and lowering
costs to provide an opportunity for us to be more competitive.
The knock on effects:
Costs reduced
Reduced re-work
Improved customer satisfaction
Happier customers = happier employees in their roles
Improved performance
The business can reinvest the time saved to focus on our people, supporting them to be the best they can be.
The knock on effects:
Employees feel more engaged
They want to create more value for the business
They bother to make the difference in process improvements, customer feedback and action
This loops back to if our employees feel empowered they help make improvements for the customer and so the cycle for continuous improvement
evolves again.
In 2010, we reached our target of being a top 5 private motor insurer 2 years ahead of schedule and we have seen a significant growth in our customer base. As a result we are entering a period of sustainability. Our strategic model to support this is now based around retaining our existing customers as well as attracting new ones. In order to do this our objective is to focus on improving our operational effectiveness to improve the customer experience. Therefore, our aim is to continuously review every point in the customer journey to make it more customer-focused. To do this we use feedback from both our customers and employees to make our processes more user-friendly whilst still adhering to regulatory requirements.
How we achieve this is through the following initiatives starting with how we invest in our people.
The pace of growth and change created great opportunities for career progression for our people and the overwhelming focus at this time was getting the job done (Task orientation) the excitement and buzz on making stuff happen meant that whilst we congratulated ourselves on the business performance which was bucking the trend of a recession hit UK market we were not paying attention to the sustainability dimension. Previous work on leadership and behavioural competence had been patchy and driven by a specific initiative. In a nutshell we had a landscape of sub optimal capability, in some cases a lack of appetite for the behavioural and leadership aspects and even if these 2 elements were in sync we had managers who lacked the courage of their convictions and without the confidence to lead were accepting of individual mediocrity because the business performance showed great results so individual contributions were not under the microscope.
We had not really set the vision on expectation or given any tools or techniques to help an individual be the best they could be. The rapid promotion based often on previous technical prowess did not always translate into people leading capability and so the practice adopted was often a copy of whatever they were receiving with 90% of a 121 focused on ‘where are you on to do list and lets look at the KPIs that show whether you are hitting the expected standards
This is the high level process for the whole programme of work – not sure if we briefly show this slide and the what drives us together. The focus is more on taking apart the next slide
Understand organisation levers and design a competency profile in the business
We knew we had a piece of work and we knew it could not be a one and done activity. We partnered with an external consultancy so that we would have an objective view of where we would best focus our attentions. The initial framework created the prompts and flags so that we were able to maintain a ‘true north focus’ whilst respecting the need to be flexible, pragmatic and make it work in LV. The kicking the tyres activity of assuring our organisation’ gave us the clarity to understand why previous work had not landed (mis aligned, siloed, failed to make into the DNA)
and also gave us the clues as to the natural ordering that would work with the business reality rather than seeking to impose a new reality
