Download - Urbano seminar bupa-craig mccoy
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HR’s ROLE IN TRANSFORMING
BUPA’S BUSINESS
Craig McCoyBupa Health & Wellbeing UK26.04.12
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• HR Director Bupa Health & Wellbeing July 2010
• Interim Group HRD Jersey Telecom Spring 2010
• Interim Group HRD 2ergo PLC 2009
• HR Director EMEA Aegis Media 2005 – 2009
• HR Director BT Major Business 2003 – 2005
• Group HR Director BSkyB 2000 - 2003
• HR Director UK&I Compaq Computer 1997 – 2000
• HR Director Datastream 1992 - 1997
Craig McCoy
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Back ground re Bupa
Business challenges
Changing customer perception – from Insurer to Healthcare Partner
Introduction of the Business Partner Model within HR
Engaging with and involving our people
Healthy life plans for our employees – showcasing our proposition internally
Impact on Bupa performance
Questions
What I am going to cover today:-
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Revenue Circa £8b
Head count Circa 53,000
Offices 15 countries
Bupa – Established in the UK in 1947 and is now a global brand
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Bupa – BHW – Based in the UK
Revenue Circa £1.7b
Head count
Circa 3,500
Offices Salford Quays and Staines (6th largest Private Sector employer in Greater Manchester).
Market position
NO 1 in UK PMI, circa 40%
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Bupa Business Challenges
• Diversifying business – exited hospitals and life assurance, grown internationally. More than just an insurance company!
• More aggressive competition in the market
• More integrated products with flexible choice and pricing
• Mature product lifecycle business
• Restructure to reduce operating costs
• Rising costs of medical treatment in our supply chain
• Accelerate technology enablement – e.g. eCommerce
• Enhance strategic sales capability
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The Bupa Health and Wellbeing (BHW) strategy is to create a differentiated healthcare business, offering a portfolio of healthcare products and services, to meet the needs of individuals through their life stages and businesses through their business lifecycle, to become their healthcare partner.
‘Helping you find Healthy’
BHW 2011 Transformation
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HR Service Model – Why Change?
Move away from traditional, functional HR model
Need for business partnering across BHW leadership and within HR team
‘One face to the customer’/single point of accountability
Job enrichment – broader, more multi-skilled and commercial roles
Better career development
New roles and new challenges for many
More cost-effective and efficient
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New HR Service Model
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• Ongoing programme of skills development (9 months)
• Training in business partnering (not just for business partners!)
• Business – based project work is an integral part
• ‘Action learning quads’ - balance learning from:- team colleagues along with external facilitators
• Team building, transition, handoff points between ‘centres of excellence’ and HR Business Partners
Developing Business Partnering Capability
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Employee Engagement Events
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Winning behaviours- linked to BHW Strategic Vision
• We deliver on our promises• We strive for excellence• We embrace change
• We support and challenge each other• We own and resolve issues
• We are passionate and enthusiastic
A series of experiential activities designed to allow leaders to practice the BHW
Winning Behaviours in action
Self reflection, peer feedback and facilitator observation after each leader led exercise which fed into individual Personal Action plans
400LeadersAttended
LSE
Leadership Support Events
Challenging commercial business simulation spread across two days, giving the leadership community the opportunity to stretch, test and explore leadership capability against the Winning Behaviours and identify their own development areas.
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BHW Healthy Life Plans
On site clinical services (GP, Physiotherapy, Occ. Health)
On site weight management clubs
On site gym facilities
On site health assessments
On-line goal planning and behavioural change tools
EAP services (Finance, Legal, Counselling & Dependant Support)
Health Coaching (beginning with smoking cessation)
Nutritional labelling in on site restaurants
Annualised support of tactical initiatives through Health & Wellbeing Activists
Communication plan to bring benefits to life
Increase / encourage participation in 2011 and beyond
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One Voice magazine
BupaLive
e-Distribution
Conference
Air & Share
Lunch ‘n’ Learn
e-Induction
Digital newsletters
Poster campaigns
Roadshows
Desk drops
Web surveys SOP
Communication Activists
Internal Communications Vehicles
• The rating scale applies to each factor • It aims to recalibrate performance, where a 5 is truly exceptional and
a 3 is good• The what and the how is embedded in the scale• The likely comparison to peers and the competitive market is called
out to support calibration, fair differentiation and reward
In combination, the performance and bonus approaches are designed to inform objective setting from a business and an individual perspectiveThe review of the performance management process for all managers in the Group Bonus Scheme
Performance management and bonus approach
Approach and Key Changes
• Establish a common set of principles - with a two factor objective setting and rating scale
• Encourage and reward the setting and exceeding of stretching targets - by raising the bar
• Encourage differentiation - recalibrating 3 as good, with the very highest achieving 3 rated employees eligible to receive 100% bonus
• Allow managers to manage - where each BU is awarded a bonus ‘pool’ and broad guidelines. Within these, the BU MD should identify the best way to spend the bonus pool for maximum return
• Be flexible enough to support internal moves and retention of key staff - allowing bonuses to be awarded to employees who have a) moved into under-performing business units or b) have demonstrated outstanding performance in their part of the business, which is not reflected in the totality
Objective Setting
• To support Bupa’s ambition of HCP we propose 2 factors (A and B) for objectives (all managers in the Group Bonus scheme)
• Factor A – delivering operational performance: The focus is on delivering excellent operational performance for the business in the near term (including all commercial objectives regardless of time-scale)
• Factor B – building a better Bupa: The focus is on building a strong business for the future, increasing capability, delivering continuous improvement and strengthening Bupa overall. Factor B objectives should begin with considering the business unit 3YP, and then work across boundaries to build a better Bupa
• The suggested form is simple, and aims to encourage the manager and employee to have a rich discussion
Rating Scale
Year End Rating
• The year end rating will be calculated by adding together the 1-5 ratings for each factor
• On both factors, behavioural considerations must be taken into account when coming up with the final rating
• The final rating will inform the bonus decision and individuals will be eligible for a bonus if they achieve:
- 3 or above in factor A; and- 2 or above in factor B
Bonus Proposals
2 3 4
5 6 75 106 6 7 77 88 8 9 9
NilSuggested bonus range(% of adjusted target)
Year endappraisal rating
0 - 50% 50% - 100% 90% - 115% 110% - 130% 130% - 140% 150%
6 7 8 9 10
5 6 7 8 9
4 5 6 7 8
3 4 5 6 7
2 3 4 5 654321
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2
3
4
5
Factor ADelivering operational performance
Facto
r BB
uilding a better B
upa
• The guidelines for bonus awards are as outlined in the table below• Factor A – delivering operational performance for the business – is the lead rating in deciding where in
the bonus range to place an individual
• The distribution of ratings (and therefore likely bonus distribution) reflects the overall performance of the business
• Whilst bonus awards need to be strictly managed within the allocated BU bonus pools for the year, significant discretion can be used as to the best way to allocate the pot across their teams
5 - Exceptional 4 - Outstanding 3 - Good 2 - Inconsistent 1 - Poor
Significantly above performance and
behavioural expectations
Delivers exceptional results against
stretching objectives
Likely to be at the very top when compared to peers and against the competitive market
Well above performance and behavioural
expectations
Delivers outstanding results against stretching
objectives
Likely to be at the top when compared to peers
and against the competitive market
Consistently achieving or above performance and
behavioural expectations
Delivers good results against stretching
objectives
Likely to be a core and key contributor when
compared to peers and against the competitive
market
Achieves in some areas, although overall
inconsistently meeting performance or
behavioural expectations
Achieves objectives in some areas although not
all / achieves most objectives although they
are not stretching
Likely to be inconsistently achieving when
compared to peers and against the competitive
market
Not meeting performance or behavioural expectations
Unacceptable performance against
objectives
Poor when compared to peers and against the
competitive market
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Bupa Group 2011 results (announced March 2012)
REVENUE£8bn
PROFIT£559m
GROWTH20%
4-YEAR GROWTH
50%
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Thank you. Any questions?