REVITALISING LLOYDS BANK

Louise Wadman

Joint Head of Internal Communication, Group Executive Functions, Lloyds Banking Group

March 2017

INTRODUCING LLOYDS BANKING GROUP

We are the UK’s largest Retail and Commercial Bank

With over 25m active customers and 75,000 staff

Our brands touch nearly every community and household in the UK

Our purpose is to help Britain prosper

THE START OF OUR COMMUNICATION JOURNEY

Following an EC ruling to increase competition, Lloyds Banking Group had to separate Lloyds TSB, creating two separate entities: Lloyds Bank and TSB

The separation was important as it provided an opportunity to do more than just rebrand. The executive team decided to change the culture: to make Lloyds Bank far more customer focused

It required mindset, behavioural, role, systems and process change…

To create an utterly compelling communication and engagement strategy to support the rebrand and on-going Revitalisation of Lloyds Bank

In other words it was a wide-ranging cultural change programme that spanned more than three years

IMPORTANTLY THERE WAS ALWAYS FULL ALIGNMENT BETWEEN THE BUSINESS AND COMMUNICATION STRATEGIES

Colleague Behaviours launched

Dedicated(Empathe-c(

Knowledgeable(

New Mobile Banking

App

Senior roles revitalised

New leadership behaviours

New customer centric

Management Info. boards

Quarterly Revitalisation

Senior Leaders event

1200

volunteered

1450

volunteered

New variable pay scheme

Banking Hall Management

launches

April Senior leaders

Workshop

July Leaders

Conference

Launch of Revitalisation

2:0

November Leaders

Conference

Every Day Excellence

events

Club Lloyds

Launched

Major changes to variable pay

New Lloyds Bank marketing campaign

New Lloyds Bank fascia's revealed

1300 Colleague Launch Celebrations and

Customer Opening Ceremonies

24 Straight Talking

Roadshows

Other roles revitalised

roles

In-branch Revitalised

roles

Regional Leaders

Conferences

2013

2014

Every Day Offers

launches

14,000 BRANCH COLLEAGUES BECAME THREE DISTINCT AUDIENCES. WHICH ONE DO YOU WANT TO LEARN ABOUT?

Leaders All other colleagues

Revitalisation 2013

•  Defining our customer-centric culture •  Deeply engaging some colleagues •  Launching the brand

Audience Segmentation

Options: Brand Builders

Leaders All other colleagues

Brand Builders were not, initially, communication champions

BRAND BUILDERS: OUR ACTIVISTS AND EARLY ADOPTERS

Volunteers from across LloydsTSB branches from all grades, roles and work patterns

Brand Builders sit at the heart of Revitalisation

The leadership team was committed to involving colleagues in the changes to make Revitalisation happen

Prepared to be challenged and willing to

feedback ideas

Will attend local Brand

Builder calls/ meetings

Will test changes where

appropriate

Understand the need

for change

Share messages with their

colleagues

Want to get involved and

make a difference

Passionate about customer

service

WE CREATED SPECIFIC COMMUNICATION ACTIVITIES FOR BRAND BUILDERS WHICH EVOLVED OVER TIME

Monthly Meetings

Workouts

Speak Up

•  In 2013 approx. 1200 people volunteered

•  By 2015 we had 2600 (of which 1900 were from the least senior populations)

•  Between 2013-2015 Brand Builders answered 25,000 surveys and participated in 250 projects from 25 different business areas in Lloyds Banking Group

BRAND BUILDERS WERE ENTHUSIASTIC FROM THE START

But it took some time for colleagues to feel that they were making a difference

June 2013:

92% of Brand Builders felt excited about their new role

but only 73% felt that their views will be acted upon

November 2014:

97% of Brand Builders felt they had made positive change to Lloyds Bank

July 2014:

86% of Leaders felt that Brand Builders were making a difference

September 2014:

95% of Leaders feel that Brand Builders are making a difference

LEADERS

We needed leaders to quickly understand and fully embrace Revitalisation

They needed to drive forward change and be role models

Leaders needed to rationally believe in the change, alter their habits and engage emotionally

There were a number of challenges:

•  Our culture was more sales than customer-focused

•  The initial Revitalisation changes were slow to be implemented

•  Many of our leaders were sceptical

•  Our leaders needed to trust that change would happen

•  We needed to make them part of the change process

COMMUNICATION APPROACH FOR LEADERS

Lots of face to face

Using case studies, best practice and sometimes storytelling

Measuring progress

FEEDBACK REVEALED A PERCEPTION GAP BETWEEN LEADERS AND THEIR TEAMS

By November 2013, 88% of leaders felt they were working in new and different ways to be more customer focused

By the same date 23% of Brand Builders and 16% of colleagues were not confident that leaders were sufficiently customer focused

Leaders’ roles had been changed, their performance was being measured for different things, the bank had become far more customer centric and improved tens of processes and systems and was on track to deliver new customer propositions

Changing ingrained behaviour takes time!

COMMUNICATION APPROACH FOR ALL COLLEAGUES

Revitalisation prior to the brand launch was fairly light touch for the majority of colleagues. Colleagues needed to be focused on helping customers through the separation of Lloyds TSB. This required lots of training and was complicated. It resulted in significant increases in customer enquiries and footfall.

We decided therefore that our communications should create a general awareness until the weeks before the rebrand.

Then, very quickly, we needed to emotionally engage all colleagues

Enable Excite Embed

Preparation Countdown Colleague Launch Customer Launch Follow Up

WE FACED A NUMBER OF CHALLENGES IN DESIGNING A FULLY ENGAGING AND COMPELLING LAUNCH

Branches were being re-branded over a four week

period

A new customer proposition was

delayed

The executive team was very keen that colleagues should

influence their launch activities

The separation activities in branch were voluminous

We designed a colleague celebration

and a customer launch.

In the case of both, there were fixed elements but plenty of

scope for local activities

The customer launch coincided with the launch of voting for

Lloyds Bank Community Fund –

which helped encourage customers

into branches

The colleague celebration was designed to be

emotional and fun

OUR COMMUNICATION APPROACH WAS A VERY EMOTIONAL ONE WITH COLLEAGUE CELEBRATIONS

SPECIAL MOMENTS DVD

15

COLLEAGUE CELEBRATIONS WEEK BEFORE LAUNCH

AND CUSTOMER LAUNCH EVENTS

Olympic athletes, torch bearers, bhangra drummers, acrobatic dogs, pythons!

Southall launch

event later featured on

the BBC Radio 4

Mark Steel programme

CUSTOMER LAUNCH EVENTS MAYORS, TOWN CRIERS, LOCAL CELEBRITIES!

CUSTOMER LAUNCH EVENTS BLACK HORSES GALORE!

CUSTOMER LAUNCH EVENTS CAKES TO RIVAL THE GREAT BRITISH BAKE-OFF!

FEEDBACK FROM COLLEAGUES

0 13

81

0

20

40

60

80

100

% responding (total: 94%)

Strongly disagree Neutral

Strongly agree

LD feedback from 7 May My team understands Revitalisation

As a percentage of 31 returns

Between September and November 2013

there was a 10% increase in colleagues

understanding what they need to do

differently as a result of Revitalisation to 93%

2013 SCORECARD

However there was a perception

gap between leaders and their

teams

We had successfully engaged key

audiences around the

rebrand

Appropriately Brand Builders and Leaders were most engaged

All audiences wanted some new customer propositions

Colleagues said they were unsure

what Revitalisation held for the future

REVITALISATION 2014: PHASE TWO

•  Embedding the right culture •  Increasing colleague

participation •  Restructuring

•  We articulated Revitalisation 2.0

•  All communication and business change was tied back to one of these themes

Options: Two way Communication Colleague Involvement

TWO-WAY COMMUNICATION

0

10

20

30

40

50

60

70

80

90

100 Positive Negative

Responding to Pensions feedback

Pensions update

Lloyds Bank MD requests more open communications and collaboration

IN FEBRUARY 2014 LLOYDS BANK MD LAUNCHED AN INTERACTIVE BLOG: INITIALLY COMMENTS WHERE VERY NEGATIVE

OVER TIME THE COMMENTS BECAME ENTIRELY COLLABORATIVE

0

5

10

15

20

25

30

35

40

Simplificaton Peer to Peer Question

THE NEXT 250 YEARS

HOW THE PROCESS WORKED

Personal invitation

Colleague ideas

Brand Builder input

Innovation Regional workshops + + + =

GREAT DEBATE DVD

What’s your idea for helping Lloyds Bank deliver great service to our customers in a multi-channel future?

28

THOUSANDS OF COLLEAGUES PARTICIPATED

What’s your idea for helping Lloyds Bank deliver great service to our customers in a multi-channel future?

33,300 page views

15,742 likes

27 Ideas from

one colleague

853 unique ideas

2 weeks

2,400 posts

1,225 ideas

114 postcards

IDEAS INTO ACTION

Design change to differentiate debit/credit

cards

September October

Start of 12 workshops to

explore top ideas/themes

First set of workshops ends

Brand Builder Conference

Online Calculator

Leaders Conference

November

Children’s activity books introduced

Ideas analysis continues with Subject Matter

Experts

Additional workshops

Replacement credit cards sent first class

OVERALL SCORECARD

Increased 7.3 points in 2013 and 5.3 points in 2014 (year on year).

Net Promoter Score

Colleague Involvement increased 2 points in 2014 to 83. Open and honest communication increased 2 points in 2014 to 73.

Colleague Engagement

Survey

LESSONS LEARNED

32

Incredibly successful but the business and not the

communication team needed to

run the programme

Brand Builders

Much, much, much more work

is required to effect enduring

change

Leaders

Can only be effective if systems,

processes and reward

mechanisms are fully aligned

Cultural change

THANK YOU QUESTIONS AND ANSWERS