CATALYST Business Smart Relocation.

A smart move.

Strathclyde Pension Fund.

Zero-cost relocation transforms business

culture and performance within 9 months

and enables 10% reduction in annual

operating costs.

The Background.

Strathclyde Pension Fund is the 15th largest pension fund in the UK; with net assets of £10.3bn

and over 193,000 scheme members. SPF administers the local government pension scheme

on behalf of 12 local authorities and 200 other public sector bodies in the west of Scotland.

The organisation has an office of around 110 people and an administration budget of £5m per

annum. The business is structured into 2 divisions; Operations and Development, which are

split into 7 teams: front office; administration; communications; technical; pension payroll;

investment & finance and records & liabilities.

The Challenges.

The Clyde Valley Review; The Independent Budget Review and the recession have challenged

The public sector to fundamentally change their business models to improve economy and

efficiency.

SPF was established in 1974 by Strathclyde Regional Council and transferred to Glasgow City

Council in 1996. Public sector operating practices were embedded into every level of the

organisation over the past 36 years.

SPF launched a new vision and set of values and objectives in January 2008, but there was not

a material improvement in operational performance during the subsequent 24 month period.

SPF manages pension contributions and payments in excess of £1bn pa for the 193,000

members; business continuity and risk management were therefore critical requirements.

CATALYST Business Smart Relocation.

SPF shared office accommodation with Glasgow City Council for the past 15 years, which had

a dramatic impact on their brand, market profile and identity.

Charlotte House at 78 Queen Street is one of the poorest quality office buildings in Glasgow. The

13 storey, 1960’s tower suffered from two decades of underinvestment, although the occupancy

costs were above market norms.

SPF occupied levels 2 & 4 at Charlotte House, which provided 1,500-sq.m of poor quality, non-air

conditioned office space. The 2 divisions and 7 teams were split over two “T” shaped floors,

which inhibited workflow, collaboration and communications.

SPF shared an ICT network with Glasgow City Council, which had an impact on their operational

flexibility and performance. The distributed servers; ageing infrastructure and outdated desktops

had exceeded their economic life.

SPF has a statutory obligation to deliver best value for money for its stakeholders and is

accountable to the SPF Committee and the SPF Representative Forum, which represents the

employers, members, trade unions and pensioners.

The Approach.

We reviewed SPF’s business strategy, budget, service delivery model, organisational structure,

operating practices, business processes and technology, property and workplace assets to create

a compelling business case that was approved by SPF’s Executive Committee.

We developed the business case into a fully integrated business relocation solution and provided

a programme director and management team to lead and control every aspect of the relocation

programme and ensure business continuity at every stage.

The key components of the programme are outlined below:

Value Delivery.

We developed a zero-cost relocation solution that was the catalyst to transform

the business and deliver substantial cost and efficiency savings.

Change Management.

We controlled the stakeholder engagement, corporate communications and

cultural issues to successfully manage the complex matrix of interdependencies.

Human Resources.

We helped to realign the workforce with the corporate business plan and

introduced new ways of working to improve productivity; enhance training &

development and enable headcount reduction.

Customer Service.

We analysed the service delivery model and introduced new processes and

customer interface systems to improve the quality of service and accessibility,

optimise interactions, increase user satisfaction and enhance visitor experience.

Business Processes.

We analysed the operating model and redesigned the key business processes

across the 2 divisions and 7 teams to enable smarter working and improve

efficiency and effectiveness.

Document Management.

We introduced an electronic document and records management system to

rationalise the paperwork; improve the accuracy of records and accelerate the

processing time associated with the administration of 193,000 members.

Information Technology.

We introduced virtual servers; replaced the ICT network, infrastructure and

desktops; and deployed Class CPX pension administration and Axis-e applications

to improve performance, workflow management, measurement and resilience.

Charlotte House.

Capella.

CATALYST Business Smart Relocation.

Location Analysis.

We carried out an options appraisal; consulted with all stakeholders and

selected the International Financial Services District as the most appropriate

location to provide a separate identity and optimise the business benefits.

Property Transaction.

We reviewed the office market; selected a shortlist of suitable properties;

negotiated the best commercial terms on 3 options; selected 1,000-sq.m at

Level 6 Capella on York Street; managed the entire legal process and

concluded the transaction with the landlord.

Workplace Design.

We designed a dynamic, collaborative, productive and high-quality workspace

that integrated all the changes in the workforce, service delivery, processes and

technology and transformed the corporate brand and working environment.

Interior Fit Out.

We managed all the design, consent, procurement and H&S processes and

project managed all the work-packages: voice & data; technology; telephony;

construction; finishes; furniture; storage; fittings; audio visual; video

conferencing and training equipment.

Move Management.

We managed the entire move process for all staff, ICT, files and equipment from

Charlotte House to Capella over 1 weekend – without any downtime.

Sustainability.

We reviewed the sustainability policy and selected a Category-A BREEAM very-

good property that enabled a 50% reduction in the CRC targets and reduced

annual energy costs.

Leasehold Liabilities.

We managed the disposal of the office space at Charlotte House and managed the

disposal of the surplus ICT and furniture assets.

Benefits Realisation.

We managed the business case across the entire relocation lifecycle to guarantee

the successful delivery of the programme and ensure that the business outcomes

exceeded expectations.

The Results.

The business relocation programme was initiated in November 2009 and was complete on

plan, on time and at zero-cost to SPF in July 2010.

The financial benefits detailed in the business case have been realised, which deliver cost

and efficiency savings in excess of 10% of the annual administration budget.

The corporate culture has been transformed, with motivated and empowered staff performing

at a much higher level and delivering a more efficient and effective service for members.

The business relocation programme has unlocked the organisation’s resistance to change

and has delivered a double benefit; cost reduction and performance improvement, which

will deliver greater long-term value for stakeholders.

The end-to-end programme management and integrated solution delivery streamlined the

entire relocation process and maximised the return on investment; whilst utilising less than

5% of SPF’s management resource during the programme lifecycle.

Level 6 Capella.

CATALYST Business Smart Relocation.

Charlotte House. Level 6 Capella.

CATALYST Business Smart Relocation.

Charlotte House. Level 6 Capella.

CATALYST Business Smart Relocation.

Charlotte House. Level 6 Capella.