The document provides an overview of HR's role in transforming Bupa's business. It discusses how HR shifted to a business partner model to better support the organization's goals of diversifying its business lines, increasing competition, and enhancing its technology. Key changes included developing business partnering skills, engaging employees through health initiatives, and tying performance management more closely to business objectives. The results were increased revenue, profit, and multi-year growth for Bupa.
1. HR’s ROLE IN TRANSFORMING
BUPA’S BUSINESS
Craig McCoy
Bupa Health & Wellbeing UK
26.04.12
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2. Craig McCoy
• 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
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3. What I am going to cover today:-
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
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4. Bupa – Established in the UK in 1947 and is now a global brand
Revenue Circa £8b
Head count Circa 53,000
Offices 15 countries
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5. Bupa – BHW – Based in the UK
Revenue Circa £1.7b
Head Circa 3,500
count
Offices Salford Quays and
Staines (6th largest
Private Sector employer
in Greater Manchester).
Market NO 1 in UK PMI, circa
position 40%
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6. 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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7. BHW 2011 Transformation
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’
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8. 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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10. Developing Business Partnering Capability
• 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
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12. 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.
A series of experiential
activities designed to allow
leaders to practice the BHW
Winning Behaviours in
action
400
Leaders
Attended
LSE
Self reflection, peer feedback and Winning behaviours-
facilitator observation after each linked to BHW Strategic Vision
leader led exercise which fed into •We deliver on our promises
individual Personal Action plans •We strive for excellence
•We embrace change
•We support and challenge each other
•We own and resolve issues
•We are passionate and enthusiastic
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13. 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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14. Internal Communications Vehicles
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
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15. Performance management and bonus approach
In combination, the performance and bonus approaches are designed to inform objective setting from a business and an individual perspective
The review of the performance management process for all managers in the Group Bonus Scheme
Approach and Key Changes
• Establish a common set of principles - with a
Objective Setting
• To support Bupa’s ambition of HCP we propose
• The rating scale applies to each factor
Rating Scale
two factor objective setting and rating scale 2 factors (A and B) for objectives (all managers • It aims to recalibrate performance, where a 5 is truly exceptional and
• Encourage and reward the setting and in the Group Bonus scheme)
exceeding of stretching targets - by raising the a 3 is good
bar • Factor A – delivering operational • The what and the how is embedded in the scale
• Encourage differentiation - recalibrating 3 as performance: The focus is on delivering
• The likely comparison to peers and the competitive market is called
good, with the very highest achieving 3 rated excellent operational performance for the
out to support calibration, fair differentiation and reward
employees eligible to receive 100% bonus business in the near term (including all
• Allow managers to manage - where each BU is commercial objectives regardless of time-scale)
awarded a bonus ‘pool’ and broad guidelines.
5 - Exceptional 4 - Outstanding 3 - Good 2 - Inconsistent 1 - Poor
• Factor B – building a better Bupa: The focus
Within these, the BU MD should identify the best is on building a strong business for the future, Significantly above Well above performance and Consistently achieving or Achieves in some areas, Not meeting performance or
performance and behavioural expectations above performance and although overall behavioural expectations
way to spend the bonus pool for maximum increasing capability, delivering continuous behavioural expectations behavioural expectations inconsistently meeting
return improvement and strengthening Bupa overall.
performance or behavioural
expectations
• Be flexible enough to support internal moves
and retention of key staff - allowing bonuses to Factor B objectives should begin with Delivers exceptional Delivers outstanding results
results against stretching against stretching objectives Delivers good results against
Achieves objectives in some Unacceptable performance
areas although not all / against objectives
be awarded to employees who have a) moved considering the business unit 3YP, and then objectives stretching objectives achieves most objectives
although they are not
into under-performing business units or b) have work across boundaries to build a better Bupa stretching
Likely to be at the top when Poor when compared to peers
demonstrated outstanding performance in their • The suggested form is simple, and aims to Likely to be at the very top compared to peers and Likely to be a core and key Likely to be inconsistently and against the competitive
when compared to peers against the competitive contributor when compared achieving when compared to market
part of the business, which is not reflected in the encourage the manager and employee to have a and against the market to peers and against the peers and against the
totality rich discussion
competitive market competitive market competitive market
• The year end rating will be
Year End Rating
Bonus Proposals
• The guidelines for bonus awards are as outlined in the table below
calculated by adding • Factor A – delivering operational performance for the business – is the lead rating in deciding where in
5 6 7 8 9 10
Building a better Bupa
together the 1-5 ratings for the bonus range to place an individual
each factor
• On both factors,
4 5 6 7 8 9
Factor B
Year end
behavioural considerations 2 3 4
appraisal rating
must be taken into account 3 4 5 6 7 8 5 6 7
5 6 6 7 7 7 8 8 8 9 9 10
when coming up with the
final rating 2 3 4 5 6 7 Suggested bonus range
(% of adjusted target)
Nil 0 - 50% 50% - 100% 90% - 115% 110% - 130% 130% - 140% 150%
• The final rating will inform
the bonus decision and 1 2 3 4 5 6
individuals will be eligible for • The distribution of ratings (and therefore likely bonus distribution) reflects the overall performance of the
a bonus if they achieve: 1 2 3 4 5
business
- 3 or above in factor A; and Factor A • Whilst bonus awards need to be strictly managed within the allocated BU bonus pools for the year,
- 2 or above in factor B Delivering operational performance significant discretion can be used as to the best way to allocate the pot across their teams
16. Bupa Group 2011 results (announced March 2012)
£8bn
REVENUE
£559m
PROFIT
20% 50%
GROWTH 4-YEAR
GROWTH
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