Welcome to Scotlands First Investors in People Conference

Welcome to Scotlands First Investors in People ConferenceWe would like to thank you sponsors

Media Partner

#IIPSConf2015

Peter RussianChief ExecutiveInvestors in People Scotland

#IIPSConf2015

The Productivity ChallengeInvestors In People Scotland |

It is estimated that about a quarter of the UKs productivity gap with the United States could be down to poor management. (Productivity & Business, LSE 2015)The UK doesnt have enough high-performance workplaces which are more likely to invest in the skills of employees or to utilise these skills effectively. (CIPD 2014)There is a 0.41 correlation between employee engagement and task performance amongst UK employees (CIPD)Gallup data from 23,910 business units demonstrated that those units with engagement scores in the top quartile averaged 18% higher productivity than those units in the bottom quartile. 71% of companies with above average employee engagement achieved company performance above their sector average while only 40% of companies with below average employee engagement. (Corporate Leadership Council)

#IIPSConf2015

Investors In People Scotland | the evidence shows under-developed leadership and management skills and a widespread failure to adopt management best practices are constraining the performance and growth of a large number of SMEs.

Professor James HaytonLeadership and Management Skills in SMEs: Measuring Associations with Management Practices and PerformanceMay 2015

#IIPSConf2015

5

Investors In People Scotland |

88% report positive impact of Investors in People

Highest impact on employee engagement, learning and development, and organisation performance

80% report impact on reputation79% report impact on productivity83% report impact on motivation78% report positive impact on peoples ability to do their jobs

8.6 /10 satisfaction with quality of Specialists

#IIPSConf2015

6

Investors In People Scotland |

#IIPSConf2015

7

Investors In People Scotland |

#IIPSConf2015

8

Investors In People Scotland | My job isto look after other people and get them to be better.

Sir Dave Brailsford

#IIPSConf2015

9

David MarquetExpert on Leadership and Innovation Bestselling Author of Turn The Ship Around

#IIPSConf2015

/ Coffee Break 20 minutes

#IIPSConf2015

Alex McGuireGroup Director of PropertyWheatley Group

#IIPSConf2015

Supporting Change Alex McGuireGroup Director of PropertyDate: 4 June 2015

15

The New Dawn

homes transferred Europes largest transfer85,000employees at transfer operating from over 60 outlets2200 Investment to homes in the first 10 years alone1.2bnhigher than the average rent in the city21%of public debt write-off or grants1.6bnof private finance levered in725m 180mWhat could go wrong?Operating turnover bigger than Celtic, Rangers and Irn-Bru; City Council spending 120m servicing debt

The New Dawn

17GHA in disarray / 5 CEOs in 6 years

Shattered stakeholder relationships

63 separate organisations, brands, cultures, agendas

No clear purpose or direction as a temporary organisation set up to dismantle itself

SST programme stalled / no new homes built / regeneration halted / poor business performance

Overall customer satisfaction poor at 67%

Customer satisfaction with repairs service 44%

Staff satisfaction 55%

False dawn: a six-year meltdown

18

False dawn: a six-year meltdownScottish Housing Regulators comments in 2009 Review:We see a real dichotomy between GHAs improvement of services on one hand, and the review of its purpose on the other The weaknesses in the review of its purpose mean that GHA does not have a sound base from which to progress

Clear and visible leadership, new board and executive team

Re-building organisation from the ground up

Creating a new vision

Restoring trust and confidence of customers, staff, stakeholders

New structure / customer focus

Using our scale to go beyond bricks and mortar

Solid foundations for a bright future

Tenant satisfaction up from 67%91%Rent arrears down from 10.4m3.6m Average days to let down from 56 Staff sickness absence from a peak of almost 10%2.5% Units on site or approved in this year alone

1400staff satisfaction94%GHA is the powerhouse of Wheatley Housing Group13

GHA todayLegacy of stock transfer?

The Wheatley Group

Timeline of the history of Wheatley Group

200320112010200920082007200620052004201220132014

Creation of Wheatley Housing Group, named after the father of social housing, Glasgow MP John Wheatley

Creation of GHA with the transfer of 85,000 homes from Glasgow City Council

The Group encompasses GHA, Cube HA, Lowther Homes and YourPlace Property Management

GHA and YourPlace have achieved a prestigious UK business improvement award Investors in People Gold Accreditation

West Lothian Housing Partnership joined the Group in 2013. Theyown and manage 381 homes in West Lothian

New management team is set up within GHA

Wheatley Group is ideally placed through size, scale and capacity to contribute to city, regional & national outcomes in housing and community regeneration

Leading with Vision, Inspiration and Integrity prize at the 2013 EFQM (European Foundation for Quality Management)

Loretto Housing Association with 1,089 homes across Central Scotland and its care subsidiary Loretto Care - with almost 1,000 service users joined the Group

Wheatley Group ranked 36th in the Sunday Times Best Companies Awards

Cube joins GHA in receiving Charter Mark for customer service excellence

2015Wheatley Group raises bond on capital markets, securing the UKs lowest all-in price (at the time) for a housing association public bond April 2015 Dunedin Canmore joins Wheatley Group

21

Delivering excellence through group structure

Current Wheatley Group subsidiaries:

GHA, Scotland's largest social landlord, with almost 43,000 affordable homes in GlasgowCube Housing Association, with over 3,300 social homes across the West of ScotlandLoretto Housing, with over 1,000 affordable homes in the central beltWest Lothian Housing Partnership with 381 affordable homesLoretto Care, supporting over 1,000 care clients and service usersYourPlace Property Management, Scotlands Feel Good Factor, with over 25,000 customersLowther Homes, with over 500 homes for full and mid-market and shared equityDunedin Canmore, with 5,500 homes in Edinburgh the Lothians and Fife A young and dynamic HA which is now firmly on the mapNamed after John Wheatley, the Glasgow MP who became known as the father of social housingAll parts of the Group are firmly rooted in their local communities, putting customers at the heart of decisions affecting their homes and neighbourhoodsIdeally placed through our size and scale to contribute to city, regional and national outcomes in housing, care and community regeneration

22

Delivering excellence through group structure

23

Time to change the rules

Redefining the authorising environment who should be in control?Release energy and passion at the right levelsChallenge people to challenge themselves no rules of engagementTrust yourself not the process

24

Our platform to transforming customer services

25

Lets not enhance the rules which make us ineffective

Challenge existing concepts and behavioursDeleting frustration not building on itExperiment lets just do thisCommand and control is risk management, not creativityProcess of design relegates behaviourNo universal customer no universal solution

26

The language of comfortmy manager trusted me and that gave me confidencethe new structure empowers me to make decisionsI believe I can make a difference

27

The language of transformationI am in chargeI am trusted and I am confidentI take decisions and act for my customerI change livesI believe in usI challenge myself to challenge others

28

Where we were

29

Where we thought we wanted to get to

30

What we created

31

Think Yes transformational leaders

Traditional// Leader wants to be at the centre of things

// Leader is self serving

// Culture is to tell, solve and check

// Value derives from power

// Culture of escalationThink Yes// The team challenge the leader

// The power is with the person who touches the customer

// Leader serves the team

// No universal solution no universal behaviour

// Leader lives within a culture of risk

// Outcomes not processes design as we speak

32

Behavioural leadership not process

The more leadership you devolve, the more leadership you have to show

33

34

Transformational gain

050010001500200025002009201020112012HeadcountCustomer Satisfaction

3000201376%78%80%82%84%86%88%90%

Transformation Gain

35

Making homes and lives better

36

/ Lunch 45 minutes

#IIPSConf2015

Therese ProcterPersonnel DirectorTesco Bank

#IIPSConf2015

38

IMPROVINGTherese Procter, Tesco Bank

WHAT DOES GREAT LEADERSHIP LOOK LIKE?LEADERSHIPTRUSTGENEROSITYCOMMUNICATIONENGAGEMENTPASSIONINSPIRATIONALINTEGRITYPROACTIVECREATIVITYCURIOSITYSELF-DISCIPLINEINNOVATIONCONFIDENCEMOTIVATIONSTRENGTHCOMMITMENTHONESTYRECEPTIVEVISIONFOCUSOPTIMISTICINTUITIVEEMPATHICCHANGERESILIENCEENTHUSIASMRESOURCEFULCHARISMARESPECTFULHUMILITYAGILITYTRUTH EMPOWERINGVALUESDECISIVEENERGYLISTENING POSITIVELOYALTY

LEADERS ARELIKE TEABAGS

IN HOT WATER

IN HOT WATER

THE DEFINING LEADERSHIP QUALITY COURAGE

THE DEFINING LEADERSHIP QUALITY COURAGEIn the face of the unknown, courage means being certain that you are right in terms of fact and values.Sir Terry Leahy

THE FACTS:LISTENING TO CUSTOMERS

OUR VALUES

Treat everyone how we like to be treatedNo one tries harder for customersWe use our scale for good

COURAGE IN BANKING

At the heart of our culture which will be underpinned by our values will bethe imperative that we are led by the needs ofour customers.Benny Higgins Chief Executive, Tesco Bank

THE JOURNEY: KEY MILESTONESTesco Personal Finance established in February 1997under the terms of a joint venture with Royal Bank of Scotland Group

Tesco purchased 100% controlin December 2008 at a cost of 950millionFocus for the following three years wasthe transformation of systems, processes and people

Customer migration completed May 2012with over 6 million customers moved onto new Tesco Bank infrastructureStaff numbers have increasedover that period from 180 to over 4,000.

Haymarket Yards, EdinburghBroadway 1, GlasgowQuorum 8, NewcastleEHQ, Edinburgh

VALUES, VISION & STRATEGYTesco Bank VisionTo become a natural choice as a provider of financial services for Tesco Customers

Tesco ValuesTreat everyone how we like to be treated No one tries harder for customers We use our scale for goodTesco Bank StrategyPutting Tesco into Banking and Insurance

SUPPORTING OUR PEOPLE: VALUES-LED REWARD

SUPPORTING OUR PEOPLE: REWARD & RECOGNITION

Supporting Future GrowthWe have a consistent approach to building capability across Tesco Bank with the right structures, right investment.We know how toland change and make it stick

Growing With UsEvery person knows their career plans, what training is available, and has a realistic assessment of their personal performance and contribution

Trusted Leaders, Trusted TeamsAll our leaders understand what contribution they make to our culture and the part they play in leading collectively across the business

Changing Lives

We make the most of our contribution to society as we help people into work and careers and play our part in building basic skills for employability.Removing barriers for women and young people

Connecting Our PeopleWe find simple ways to connect people across Tesco, engage them as ambassadors and tell our story

SUPPORTING OUR PEOPLE: PEOPLE PLAN

SOLID FOUNDATIONS

PERSONAL LEADERSHIP

BUILDING CAPABILITY

DELIVERING CONTINUOUS IMPROVEMENT

18,000hrsvolunteeredby colleagues since 20101mraised for charities175,000fundraised for local charities, Diabetes UK,Race for Life and Movember in 201480%agree80%agree78%agreeWe use our scale for goodup 11% on 2013I am encouraged to participate in our social responsibility initiativesup 2%Tesco Bank brings benefits to my local communityup 6%

COMMUNITY IMPACT

THIRD-PARTY RECOGNITION

SUSTAINABLE SUCCESS

IMPROVINGTherese Procter, Tesco Bank

Introducing the new sixth generation IIP Framework

Title slide65

Introduction to Investors in PeopleInvestors In People | We help organisations to improve performance, be more productive, to change and to growWe believe that engagement, skills, communication, motivation and ownership make a big difference to performanceInvestors in People is a good practice Standard based on the features of high performing organisations.It is the only international Standard to link your ambition and your people practices.The Investors in People accreditation is recognised across 25 countries and held by over 15,000 businesses.#IIPSConf2015

The Investors in People Standard was developed in 1991 and is currently in its 6th GenerationWhat do you need to know about Investors in People?It is a best-practice management Standard based on the features of high-performing organisationsIt is the only international Standard to focus on People and their contribution to organisational performanceIt is recognised across 25 countries and held by over 15,000 businessesContinuous improvement sits at the heart of our methodology66

Investors In People | FeaturesBased on latest research on high performanceWorking with external, independent specialistsAccreditation at Platinum, Gold, and Silver levelsOpportunity to benchmark against other organisations

AdvantagesIdentifies the key people issues which will drive business successIn depth insight into your culture and practiceAdvice and guidance from industry expertsTailored to the specific needs of each organisations business prioritiesExternal recognition of your commitment to customers and stakeholders

Benefits*Improved performance and productivityImproved motivation and moraleImproved capability to achieve business goalsBetter reputation

* based on University of Glasgow research#IIPSConf2015

There are four key feature and benefits of working with Investors in PeopleWe provide independent professional insight against a world-recognised management StandardAchieving the accreditation provides opportunities for PR and public celebrationWorking through the levels of maturity is a journey of continuous improvement and benchmarking against the bestThe approach drives performance and improvement through a business by aligning the people agenda to the organisations ambition67

Key changes in the Framework04/06/2015Investors In People |

What is StayingDriven by your purpose and organisation ambitionFocus on leadership, engagement, people development and improvement Continuous improvement remains an integral part of Investors in People approach

What is ChangingReplacing Plan Do ReviewSimplifying by reducing duplication

What is NewBased on High Performance Working ResearchNew focus on Structuring Work and Creating Sustainable organisationsIntroduced Maturity levels to support change

#IIPSConf2015

For clients that previously worked with or were familiar with the fifth generation framework, this slide provides a high level summary of the key changes to the framework.

What is stayingAlthough Plan, Do, Review has been removed from the framework, the essence of people development and improvement are still strong features of the new frameworkTherefore continuous improvement not just part of the customer journey but an indicator itselfBest practice research still defines leadership and engagement as significant elements of good people management so this focus is still present

What is newBased on high performance working research 2 brand new indicators around Structuring work and Creating sustainable success we will be looking at these in more depth later on in the dayThe concept of maturity levels again will touch on this later on today

What is changingRemoval of duplication and simplify accessible and clear for all organisationsTop manager, manager, people replaced with leader and peopleIncreased stretch if an organisation is High Performing at all levels, you would think wow, does such organisation exist?

68

The new framework: Key principles04/06/2015Investors In People | Everything starts with your organisation ambition The framework is based on the concept of sustainable high performance through peopleReflects the 9 key areas to enable high performance through peopleOrganisations use the Framework to develop practice using the levels of maturityEach indicator has 3 themesOrganisations are reviewed at the criteria level within the frameworkFocus on leaders and people

#IIPSConf2015

The key principles of the sixth generation framework:Based on concept of sustainable high performance through peopleReflects the latest thinking where the 9 areas are indicators of high performance The organisations ambition is at the heart of the framework the framework is about helping the organisation understand where it needs to focus and how it needs to improve to achieve its ambitionThe sixth generation framework introduces 2 new concepts - structuring work and creating sustainable successOrganisations progress through the framework via organisational maturityStructure of the framework:3 Overarching themes: Improving, Leading, Supporting9 Indicators3 Themes within each indicatorOrganisations are assessed at the criteria level (with guiding evidence to support this) The framework looks at Leaders and People but reference is made to the line manager when the activity relates specifically to direct report responsibilities

69

The concept of maturity levels04/06/2015Investors In People |

#IIPSConf2015

..70

High Performance Heat Map04/06/2015Investors In People |

#IIPSConf2015

71

The IIP Survey Tools04/06/2015Investors In People | Survey tools will be available to support the review process

Allows an effective measure of how far practices are embedded

Allows tailoring of the review to specific themes or parts of the business

Can be integrated within in house survey tools

Will allow benchmarking against other organisations

#IIPSConf2015

The IIP survey is an integral part of the assessment process that organisations must complete in advance of their on-site assessment.Given the challenges we know organisations face around implementation of surveys, we have provided two question sets with four different deployment methods to ensure there is a flexible solution for each client.As you can see, the ideal would be for clients to go with the IIP40, which is the full, standalone survey. However, if that is not possible, we have three other options for clients that wish to go ahead with the IIP9.

INTERNAL NOTE:Please be advised that the survey is still in early stages of development compared to competitors while it is robust and the question items are strongly correlated to the indicators they measure, there is still further work to be done to refine thisTo put it in perspective, Best Companies had to pilot their initial survey questions with 20,000 employees to ensure the questions were statistically significant and continue to test and re-test new questions with employees to date. You can assume a similar process was done with Gallups Q12 survey development takes timeIn terms of why the IIP survey provides greater value compared to Best Companies or Gallup, it may be useful to highlight that those focus solely on employee engagement. The IIP survey is broader as it covers all the indicators within the framework. Therefore, while employee engagement is a feature within the survey, the IIP survey is about high performance working.72

04/06/2015Investors In People | TimetableNew Framework will be available to use in August

Period of transition to allow organisations to complete work with current Framework if appropriate

Our Specialists will advise you on the best course of action

#IIPSConf2015

/ Coffee Break 20 minutes

Wifi: Press-InternetPassword: Press_5508_2

#IIPSConf2015

Andrew CoetzeeBusiness DevelopmentInvestors in People Scotland

The new framework#IIPSConf2015

#IIPSConf2015

Discussion

Where does your organisation currently fit?

Where would you like it to fit?

How will you get there?

#IIPSConf2015

Where does your organisation currently sit against indicator 9?

Respond at PollEv.com/investorsinp905

Text INVESTORSINP905 to 07624806527 once to join, then text A, B, C, or D

Answers to this poll are anonymous#IIPSConf2015

79

Poll Title: Where does your organisation currently sit in indicator 9?https://www.polleverywhere.com/multiple_choice_polls/ZcIFwiDYHfSU4T580

/ Summary

#IIPSConf2015

/ Drinks and Canaps will be served in the exhibition and catering area overlooking the Sir Chris Hoy Velodrome

#IIPSConf2015