Seminar E3 Developing an Effective Leadership Culture to Support Business Change

Inji Duducu Group People Director Benenden @injiduducu

The Benenden Story - transformation Background

The Challenge April 2014 Building blocks New IT system New product launch underway First acquisition underway Hospital redevelopment signed off Digital channel being built

The Approach Target Operating Model Capability Culture Group Shared Services Roadmap Values Structures Behaviours Action Plan Operational HR Improvements

Culture Look at how an organisation spends its time and money

Leadership Visibility

Celebration

Values Benenden Integrity Respect Professional Service Excellence Respond flexibly and positively to change Fair and supportive employer of staff Barclays Respect Integrity Service Excellence Stewardship Enron Respect Integrity Communicati on Excellence

Co-Creating our Future Culture Future Values - Heritage

Capability Roadmap Updated Values Framework Overview How we work with each other How we honour our heritage How we work through change How we deliver results We respect, trust and value the contributions from everyone and we inspire others through great leadership We are proud and passionate about the way we work and we strive to leave things better than we found them We continuously adapt our strategies and plans through proactively seeking opportunities in changing circumstances We use our energy, skills and resources to deliver the best sustainable results for our community and we celebrate success We communicate openly and honestly and have a positive impact on others We understand each other s strengths and spend time developing ourselves and our teams and colleagues We openly collaborate across all teams to build strong and effective relationships We inspire strong performance in everyone around us we lead by example in both what we do and how we do it We behave in the mutual way that protects and enhances our reputation and legacy We see everyone as equal and treat them fairly We look after our members money so we can sustainably protect our legacy We strengthen a sense of building and growing with all our stakeholders: internal and external We are commercially aware we understand the business and commercial plans We always look for ways to improve our work and adapt our plans for the better We challenge constructively and we re open to challenge from others We are responsible with change we seek new opportunities and we are sensitive to the impact of change on others We take pride in owning our objectives and being accountable for delivery We recognise and celebrate success We approach member and stakeholder focus with drive and enthusiasm We deliver great results by using and monitoring resources thoughtfully and efficiently 1. The framework must be brought to life through conversation about your role and expectations on how you will deliver your objectives 2. As with your performance objectives, there may be elements you need support and development on these should be discussed and reflected in your PDP

Alignment

Telling the Story

Evaluation and Sustainability Planning Programme overview Engage Pre event comms Self Reflection Questionnaire Invitation from Marc Leadership Stories Invitation from Marc Brilliant Teams Self Assessment Attend Kick Off Event Top 70 Module 1 Leading Myself & Others Module 2 Leading Brilliant Teams Action 1:1 with Line Manager Deliver Action Contract + 6week follow up Pre Assessment 1:1 with Line Manager Letter to myself Honest Conversations Brilliant Colours with team + 6 week follow-up 1:1 with Line Manager BT with team Stakeholder Engagement +6week follow up +12 week follow up Glide path Oct 2015 Q4 2015 Q2 2016

What Gets Rewarded Gets Repeated

Benchmarking

Change Landscape for our people My line manager structures Policies Sick pay Approach to pay Performance management Behaviour framework Values IT systems Fundamental processes (LDS & treatment) Supplier relationships Products & services Call centre norms

Learnings + + =

Questions?

Developing an Effective Leadership Culture to Support Business Change CIPD Conference November 2015

Introduction Who am I? What is my role? My responsibilities as Chief People Officer for HM Revenue and Customs My wider Cross Government role OFFICIAL Developing an Effective Leadership Culture to Support Business Change 25

Size and Shape of the Civil Service 24 Ministerial departments 22 Non-Ministerial departments 331 Other agencies and public bodies 408,000 Full Time Equivalent employees OFFICIAL Developing an Effective Leadership Culture to Support Business Change 26

Size and Shape of the Civil Service HR 3813 People working in Civil Service HR 1 Head of Civil Service HR 4 HR Directors General Top 150 HR SCS and HR leaders in small departments and agencies OFFICIAL Developing an Effective Leadership Culture to Support Business Change 27

Civil Service Leadership Challenge The outcomes the Civil Service has to deliver are becoming more complex and interdependent Continued need to reduce costs whilst maintaining high quality services will require leaders who can transform service delivery The ability to attract and keep talent, as well as engaging and motivating people in times of constant change Increasing capability and use of digital services. We acknowledge the size and scope of this challenge and recognise that we are on the journey to achieving great leadership in the Civil Service. OFFICIAL Developing an Effective Leadership Culture to Support Business Change 28

What does good Leadership look like? The Civil Service Leadership Statement As Civil Service leaders, we take responsibility for the effective delivery of the Government s programme and Ministers priorities, living the Civil Service s values and serving the public. Inspiring about our work and its future We will show our pride in, and passion for, public service, communicating purpose and direction with clarity and enthusiasm We will value and model professional excellence and expertise We will reward innovation and initiative, ensuring we learn from what has not worked as well as what has Confident in our engagement We will be straightforward, truthful and candid in our communications, surfacing tensions and resolving ambiguities We will give clear, honest feedback, supporting our teams to succeed We will be team players, and will not tolerate uncollaborative behaviour which protects silos and departmentalism Empowering our teams to deliver We will give our teams the space and authority to deliver their clearly set objectives We will be visible, approachable, and welcome challenge, however uncomfortable We will champion both difference and external experience, recognising the value they bring We will invest in the capabilities of our people, to be effective now and in the future OFFICIAL Developing an Effective Leadership Culture to Support Business Change 29

Civil Service Leadership Statement key expectations Need the most senior leaders to be visible from the top Recognise and promote the desired behaviours by identifying, acknowledging and disseminating examples of best practice Provide training opportunities for everyone, regardless of grade, to develop their leadership skills and behaviours Ensure clear consequences for poor leadership behaviours, through 360 degree feedback OFFICIAL Developing an Effective Leadership Culture to Support Business Change 30

What HMRC achieves OFFICIAL Developing an Effective Leadership Culture to Support Business Change 31

The starting point for HMRC Launched in 2008 we set out our expectations for the future of HMRC Our Purpose We make sure that the money is available to fund the UK s public services We also help families and individuals with targeted financial support Our Vision We will close the tax gap, our customers will feel that the tax system is simple for them and even-handed, and we will be seen as a highly professional and efficient organisation Our Way We will put our customers at the heart of everything we do OFFICIAL Developing an Effective Leadership Culture to Support Business Change 32

How will good Leadership help us and what are our challenges? HMRC is transforming how we bring in the money, how we serve our customers and how we make savings, efficiencies and innovations. Our leaders must understand HMRC s strategic direction. We need leaders who can role model excellent leadership, engage our people and explain our future vision and journey We need to build the leadership capability within our organisation Over 60% of our Senior Leaders do not directly manage people We have 21 professions in HMRC with their own CPD requirements OFFICIAL Developing an Effective Leadership Culture to Support Business Change 33

Our Approach the 8 step Change Leadership Model We used this model as a basis for communicating our transformation plans We recognised that it was important to engage with everyone early on We used the power of storytelling to underpin our engagement programme with our people We call it Building our Future OFFICIAL Developing an Effective Leadership Culture to Support Business Change 34

Shifting Leadership Capabilities the Building our Future programme Building our Future describes how we will transform This is a national conversation that started in April 2014 To build leadership capability we have up-skilled all our senior leaders in change leader techniques and capability to deliver to large audiences. We are currently on phase 3 of the programme. This year we launched the Civil Service Leadership Statement, making a commitment to invest in the capability of our leaders, with the Leading our Future programme and a Leadership Academy OFFICIAL Developing an Effective Leadership Culture to Support Business Change 35

OFFICIAL Developing an Effective Leadership Culture to Support Business Change 36

A new Leadership Academy for all Leaders Investment in five days leadership learning a year for the next five years for all our Leaders A virtual Leadership Academy and a leadership offer for all our people from Aspiring Leader through to our Senior Leaders Leadership development split into essential and elective components to suit individual development needs, encompassing a range of learning media Building local leadership communities across all our Directorates using digital solutions Developed in an agile way, and will grow and expand over time OFFICIAL Developing an Effective Leadership Culture to Support Business Change 37

The Importance of Trust The drivers of trustworthiness (Dietz 2005) In order to build trust, leaders and managers must demonstrate that they are not self serving but that they are acting in the interest of the whole organisation. OFFICIAL Developing an Effective Leadership Culture to Support Business Change 38

Trust Workshops HMRC ran workshops The Importance of Trust in Effective Leadership for our senior grades developed with Bath Business School and the CIPD These focused on understanding of Trust as an ingredient for organisational performance. They provided a practical approach for rebuilding trust in organisations. Developed our HR Professionals and Leaders to build insight, and raise levels of trust. Raised awareness of the challenges of using research as a tool for organisational change. Feedback was positive with 84% finding the workshops engaging, 92% have increased their understanding of trust and 88% feel confident in making changes in the workplace. OFFICIAL Developing an Effective Leadership Culture to Support Business Change 39

Simpler, streamlined processes - PaceSetter PaceSetter is the way we do business in HMRC, using Lean techniques to drive continuous improvement It supports the achievement of our HMRC Vision by helping make Our Way of working a reality Its tools and techniques enable everyone to identify and cut wasteful processes this links to our Leadership Statement by empowering our people Using it gives us: - a well-designed, high performing business, organisation specifically to respond swiftly to change and deliver an excellent service for its customers - skilled professional leaders who inspire people to find ways to do things better - committed, involved and valued people who understand the aims of the business and the part they play OFFICIAL Developing an Effective Leadership Culture to Support Business Change 40

What difference has it made? Building our Future has helped me understand how HMRC is changing. I am now confident in my role as a leader By the end of Phase 3 the aim is that 1 in 3 leaders are Living it and all leaders are Believing it Building our Future has provided me with greater insight into what is happening on the front line and improvements in digitalisation. OFFICIAL Developing an Effective Leadership Culture to Support Business Change 41

What have we learned from this? HR Business Partner Engagement is Key to Success Messages have to be Business Owned and Led with HR support Comms don t give your own opinion leaders should not deviate from the core messaging content. They should always be credible and not try and give their own opinion that becomes rumour and fact. We are actually asking for feedback and we have acted upon feedback you said - we did OFFICIAL Developing an Effective Leadership Culture to Support Business Change 42