Transforming the HR operating model: NatWest Group
A case study of an HR function shifting from an Ulrich+ model towards an employee experience-driven model
A case study of an HR function shifting from an Ulrich+ model towards an employee experience-driven model
NatWest Group is a financial services provider operating in the UK and the Channel Islands, India, Europe, US and Asia Pacific. It has approximately 61,000 employees.
A fundamental part of realising NatWest Group’s One Bank strategy was taking employee experience to the next level. The ambition was to create an employee experience on par with that which customers receive. Recognising that the Ulrich+ model had reached its limitations within NatWest Group, the HR team sought to reimagine the HR operating model with the aim of enabling greater agility, connectivity, and adaptability in anticipating and responding to customer and employee needs.
NatWest Group’s decision to reimagine the HR operating model and focus on employee experience was driven by many factors, such as empowering employees to deliver NatWest Group’s purpose and enabling the One Bank strategy in response to:
These drivers have led to a profound shift in employee preferences and expectations around employee experience. Therefore, the transformation needed to go beyond a process improvement or technology shift, with improving the employee experience as the core driver.
Drawing on market research, gathering data and insights and harnessing their Customer Journey learnings, NatWest Group undertook the challenge to reimagine the HR operating model to enable brilliant employee experiences. Taking a human-centred design and an evidence-based approach enabled NatWest Group to analyse the drivers and develop a ‘Goal and Journey’ archetype to pilot. Establishing the Goals concept, with end-to-end ownership of core employee lifecycle components, enabled a holistic, employee-focused solution. This helped to drive process simplification across strategy and policy and the operational delivery of propositions and services, as well as enable continuous improvement.
Alongside this was a desire to ‘dial up’ the digital transformation to increase efficiency and streamline workflows. This included the ‘Archie chatbot’ as a single-entry point for employees, to improve first time resolution of queries.
Piloting this model provided proof of concept and confidence in the day one launch, ensuring the design included the critical components needed for the new ‘Goal and Journey’ model.
January 2024 marked Day 1 of a multi-year transformation journey, with approximately 60% of the HR function aligned to a Goal. The model is focused on creating end-to-end value streams based around the employee lifecycle, eliminating silos, integrating design and delivery.
The HR model has a unifying vision and set of objectives and key results (OKRs) to ensure strategic alignment. This is broken down into several Goals (e.g. onboarding), and Shared Capability teams (e.g. DE&I, Behavioural science, Data & analytics) which are essentially disciplines with deep expertise (see Figure 1).
Each Goal has ultimate accountability to drive what work needs to be done, how services and experiences could be improved, and manage risks to drive the greatest value and impact. This is facilitated through the Goal’s leadership team (e.g. Goal lead, Journey managers) who are responsible for both the day-to-day operational service delivery, change execution and performance. Each Goal is further broken down into Journeys, which encompass people who have t-shaped skillsets (deep expertise in a particular area and the ability to cross-collaborate with other disciplines). Working end-to-end, rather than in silos, enables Goals to incorporate multi-discipline teams and expertise - bringing the right people together to inform business and people solutions. They draw on colleague data and insight and use human-centred design thinking (for example, a double diamond design process) to further develop the journey.
Shared Capability teams are made up of specialist knowledge and expertise and may be within or outside the HR function depending on the solution being developed. For example, Digital Workplace solutions often draw on several disciplines from across HR to Technology and Property. Their role is critical to shaping and informing products and solutions. Resource allocation is managed with the Goal teams based on Goal needs and priorities.
Finally, the HR model is supported by an enabling team, that supports the HR function to run efficiently and effectively which includes ongoing business performance management, and transformation of the HR model. The Strategic Business Partner role has largely remained the same.
There were several key enablers to ensure the model was implemented and embedded effectively:
Clear prioritisation: Big room planning which is undertaken quarterly, where teams prioritise the focus for the next quarter, helping to avoid bottlenecks in communication and ensuring scarce skillsets are deployed to what makes the biggest difference. Two separate planning sessions will take place every quarter with Senior HR Leadership Group, which includes Goal leads, Shared Capability leads, Goal leads and their team.
NatWest Group is continuing to experiment and improve the model as the transformation journey continues. Early success measures and positive impacts for employees and the business include the following:
This is the start of a multi-year transformation and the NatWest Group is continuing to experiment and improve the model to unlock value, as the transformation journey continues.
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