Session Objectives

2. Session Objectives • Investors in People - UK context • An international Standard • Research findings • Case study – RBS Group • The Challenge • Questions

3. UK - Vision and Objectives Vision • To increase the productivity of the UK economy by improving the way in which organisations manage and develop their people, leading to business improvement and better public services Key objectives (by end 2007-8) • At least 45% of the workforce employed in organisations working with the Standard • At least 40,000 small firms working towards the Standard • Support national, regional and sector partners in achieving their objectives and targets for workforce and business development

4. UK - Profile and Impact Over 57,000 organisations currently working with the Standard ; c38% of the UK workforce (c9.5m) c6,000 are large organisations (+250 employees), but these cover c7.2m employees 95% awareness of the Standard amongst all organisations Wide economic and social partner support ; CBI, TUC, DTI, The Work Foundation

6. International F Australia Bermuda Holland Channel Isles P/F South Africa Slovenia France Sweden P Pakistan Japan Spain Denmark Canada

7. International Most established project = Australia Most recent project = Poland Biggest International project = S Africa Majority of International projects have participation from the Banking/Finance sector

9. 7 Intangible Assets Knowledge Processes & systems Relationships Cultures &Values Brand & Reputation Leadership & Communication Skills & Competencies

10. Researching the Impact • Building Capability for C21st • Market Shape 2003 • Quarterly Tracking study • Databuild – Impact Assessment June 2004 • Integral to UK Government Skills Strategy

11. The Business Case • 7/10 have become more competitive • 7/10 have improved productivity • 9/10 have increased skills across workforce • 9/10 increased team working • 8/10 report improved culture within Organisation • 9/10 have improved communication across organisation

12. The Business Case … • 91% said IiP improved their planning • 68% saw people-orientated issues as the key contribution to achieving business objectives • 91% agreed it helps people achieve their potential • 74% stated the standard delivered bottom line results • 80% have increased customer satisfaction

13. Databuild June 2004 • IiP Orgs ave increase in profit = 7.16% • Non-IiP ave increase in profit = 3.7% • Ave T&D spend is higher for IiP Orgs • IiP orgs could evidence impact of spend against non-IiP orgs • 2/3rds saw internal benefits as key, 1/3rd external benefits

14. Databuild • Expectations from IiP are “Business Improvement”, not seen as “HR tool only” • Orgs with “Top Level” support more successful, with greater returns • 64% believed IiP helped in making and sustaining change initiatives and left them “Change Ready”

15. Change Is Inevitable … • Change pressure not unique to any sector • Legislative / competitive pressures • “Change” an excuse not to or a reason you must?? • Our people drive the change for us • Organisations are more flexible if people are on board and with us

16. Back to Basics … • Communication • Competent managers of people • People knowing their role • People knowing how they contribute • Measuring impact of approach

17. 3 Vital Known Benefits • Establishing ROI for people development • Developing managers into coaches, mentors and developers • Setting values and attitudes in those today who will be your managers and leaders tomorrow

18. Reasons Not To… • Already doing this • It won’t add value • It will cost too much • Unsure of the benefits • Fear of failure (corporate vanity) • Not clear on links to existing practices

20. The Royal Bank of Scotland Group • 115k employees • Working with IiP since 1992 • 8 customer facing divisions • 6 support functions • Board level commitment • Non-prescriptive policy

21. RBS Group – why IiP • To raise standards of people performance across the Group • Improve managers people skills • IiP to be the “Glue” that linked formerly disparate strategies together • To create flex and be ready for inevitable change • Develop more consistency in approach • Improve communications “Grapevine issues”

22. RBS Group – Business Reality • Mergers • Acquisitions • Integration of different cultures • Retain brands but add value and customer offer • Reduce headcount / efficiency savings

23. RBS Group – Change Objectives • To retain commitment of employees • To be an Investor in People despite the uncertainty of change • To ensure that people were key asset • To foster trust and open communications • To improve people skills of managers

24. RBS Group - Benefits • Improved quality of communication • Increased awareness and understanding • IiP areas showed increased levels of motivation and contribution vs. non-IiP • People now want to be stretched, welcoming the challenge • Higher performing individuals worked in IiP units

25. RBS Group – Way Forward • More building blocks committed • Peer pressure, don’t want to be left behind • Integrate other initiatives into IiP philosophy • Develop future leaders from within • People to challenge the status quo “safely” • IiP units - places where people want to work • Learning environment where people feel challenged

27. The Challenge • Corporate commitment • Visible support from the top • Making the change in partnership • Developing trust • Communicating benefits • Cultural shift

28. The Challenge • Maintaining IiP - Internal Champions • Ongoing senior level commitment • As a catalyst for change from within • Embedded in culture and values • Benchmark - yr on yr improvement • Not walking away when things get tough

29. Questions Discussion