HR In the Digital AgeMark Martin

Executive Summary• Mark Martin, Group HR Director at Direct Line Group

• Direct Line Group is a retail general insurer with leading market positions in the UK and businesses in Italy and Germany. We have over 20 million customers.

• We employ a diverse workforce of 15,000 people, including contact centre staff, mechanics and actuaries.

• Royal Bank of Scotland Group is now a minority shareholder. RBS Group was required to divest its insurance business following an EU mandate, as a result of the banking crisis.

• In order to divest, we needed to build our own HR function, independent of RBS Group personnel, systems and processes.

• We selected and implemented a suite of 7 cloud based systems – Workday, Taleo, Success Factors, Neocase, Ceridian, Aon Hewitt & Transversal

• The HR function separated successfully in June 2012 and the business separated dependencies from Group in October 2012

Target Customers

What do we have to do to be brilliant?

Capability

Engagement

We all know what makes a business successful

We have known it for thousands of years!

Believe it or leave it

We currently don’t see the value of people or customers

Strategic Choices

StrategyObjectivesVision

Executive Leadership

Critical Tasks

Formal Organisation

CulturePeople

Two things are changing in parallel…

The world is wrestling with what is wrong for people and for customers

Advances in technology are increasing the transparency of customer & employee behaviour & its consequences

We need to do the right thing for people & customers

With the transparency that new technology brings those that have been in conflict will form a powerful community of

change.

The wealth creation opportunity is becoming increasingly clear

The world is demanding it

For example this powerful community of change will demand

• Customer Life Time Value

• Profit Per Employee

• People Manager Index

What HR systems will be required to take us in to the digital age?

Usability

Capability

V

All about Direction of travel

Turning a vicious circle into a virtuous circle

What makes a system usable?

Object Orientated

Timely

AccessibleSocial

Configurable

Up to date

Accurate

Trustworthy

Moving HR from the what to the how

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What is the role of HR in the Digital Age?

HR will have two main roles:

• Enabling managers to manage the capability and engagement of their people

• Strategic risk management – ensuring there is the right capability & engagement to deliver the business strategy

If the business don’t want it or cant afford it AND the Board and ExCo do not believe it is a strategic risk HR do not do it!

HR function in the Digital Age

‘Advanced’ Business Partner

“understanding the business strategy &

capability requirements”

People matters “Payroll & HR matters

support team”

Technical Expertise“providing technical

expertise eg reward’

Planning, Delivery & Infrastructure

“driving the creation & implementation of the people infrastructure & development roadmap

Systems configuration & maintenance

Supplier interface & management

HR delivered through Digital People Infrastructure

Business Strategy

Strategic People Risks

Core HR Constantly in constructive conflict

You can't manage what you don't measure

• The world is changing and advances in technology are increasing transparency of customer and employee behaviour and its consequences

• As a result HR will need to fundamentally reassess their role in the ‘Digital Age’

Once you can measure your people & customers you will manage it

Q&A