Delivering Business Transformation - From loyalty to mobility. How to downsize without redundancy.

Delivering Business Transformation From loyalty to mobility How to downsize without redundancy Wim van Hennekeler, Jochen Witte wim.van.hennekeler@paconsulting.com jochen.witte@paconsulting.com PA Consulting Group Founded in 1943, PA as global company draws on the knowledge and experience of more than 3,000 employees Oslo Utrecht Stockholm UK: Dublin Copenhagen London Madison Cambridge, MA Frankfurt T’bilisi Cambridge Munich Chicago New York Tashkent Beijing San Francisco Belfast Dusseldorf Yerevan Denver Princeton Los Angeles Birmingham Washington Islamabad Houston Glasgow New Delhi Manchester Mexico Dubai Jamaica Bangalore Kuala Lumpur Jakarta Lima Buenos Aires Auckland Wellington Key PA office © PA Knowledge Limited 2008. Page 2 PA Consulting Group Successful change management and HR transformation are among PA´s key competencies Strategy Organisation Employees Processes Technology Change HR Strategy Organisation Talent Optimising Change E-HR Strategy design management HR processes management Top team HR Outsourcing/ Ways of Change strategy HR E-Learning Shared Services Working communications benchmarking Advanced People Resource personnel Change strategy Culture change management planning leadership HR Competencies Know-how Due Diligence Diversity management transfer Performance Assessment & Employer brand management development Developing management competencies Employee retention Zero cost downsizing Managing performance © PA Knowledge Limited 2008. Page 3 “From Loyalty to Mobility” Situation at the start of the transition project • UWV in The Netherlands is the Dutch social security department (comparable with Bundesagentur für Arbeit) • It is a government organisation and gets full attention of politicians and press • Early 2003 the Dutch national government decided to transfer a substantial part of the tasks of UWV to the Tax department • As a result, 800 employees needed to be transferred to the Tax department as well … • … whereas on the other hand some 2,500 employees would loose their job at the date of the transfer, 2 ½ years later • UWV´s ambition was to avoid mass redundancies as much as possible: – UWV had an exemplary role in not making staff unemployed – Employer brand in a tightening labour market should remain attractive – Around 150 Mio € Social Plan costs to be saved when no one would be made redundant (comparable to labour relations in Germany) © PA Knowledge Limited 2008. Page 4 “From Loyalty to Mobility” The transition project, supported by PA Consulting Group • The project aimed at making some 2,500 managers and employees ´mobile´ and leave UWV within 2 ½ years • The goal was a ´soft´ personnel reduction to ideally make no one redundant 7. Integration • Therefore, this was a change management 1. Shock project and not a stand alone measure taken 2. Denial 3. Depression by the top – like mass redundancy 6. Understanding • During the transition, business as usual had to 5. Test continue – UWV performance monitored closely by press, government and politicians 4. Acceptance • The key challenge initially was to create awareness around the following message: • ´Unlike previous reorganisations, this one will not pass. It will ultimately mean that you will loose your job.´ © PA Knowledge Limited 2008. Page 5 “From Loyalty to Mobility” The project structure we set up Change and Stakeholder Management Programme Management 1. Management support and coaching Communications Legal support ICT support 2. Mobility and employability 3. Personnel planning The HR Department of the Division was dismantled and integrated into the project team © PA Knowledge Limited 2008.