1. VIEW FROM THE TOP
The latest HR market insight
ISSUE 2
As the world economy experiences the greatest crisis for many decades, Macmillan Davies Hodes'
CEO, John Baker has been meeting with HR leaders to find out the challenges their businesses
and HR face. In the second of a series of articles, he meets HR leaders from Rio Tinto,
Wincanton and ISS.
Anne joined Rio Tinto as Vice President of HR in the Copper & Diamonds business in 2008.
Joining at a time of considerable change, Anne has been tasked with driving consolidation,
consistency and change globally through engagement and leadership.
Anne’s earlier career began in taxation and finance before moving into IBM where she spent
18 years in various roles in HR, Consulting and Line Management . After being headhunted
by CSC (Computer Sciences Corporation) , Anne was asked back to IBM in 2001 where she
spent a further 5 years in Global Business Services, before joining CMC Markets as Global
Head of HR.
Anne Stevens
Vice President of HR – Copper & Diamonds
Rio Tinto plc
Nigel has worked for Wincanton as Group HR Director since 2002. He is a member of the
plc Board and has functional responsibility for Human Resource Strategy, Policy and practice
across a business which employs 30,000 people in 12 countries. Nigel also has functional
responsibility for Procurement, Property, Health & Safety and the Environment. Previous to
joining Wincanton he worked in the UK and Internationally in senior HR positions at Rover
Group, Nortel and Marconi. His passion is to drive business transformation through the
enthusiasm and talent of people.
Nigel Sullivan
Group HR Director
Wincanton plc
Paul has led the transformation of HR as a Board level HR Director for the past decade in large
and complex organisations including Scottish Power, Scottish Water and the Scottish
Government. Rather uniquely, he has operated across both Public and Private sectors, and he
is also a member of the Employment Appeals Tribunal. In November 2008 he became Group
HR Director for ISS UK which employs 43,000 people who work in many well known
companies delivering catering, cleaning, security, building services, landscaping and integrated
facility services.
Paul Pagliari
Group HR Director
ISS UK LONDON - MANCHESTER
WWW.MDH.CO.UK

2. VIEW FROM THE TOP – ISSUE 2 mdh.co.uk
How is the global downturn have a robust and sustainable approach to safety at all levels of
the organisation and across our entire workforce, including our
affecting your sector? contractors on who we rely heavily at some of our sites.
In response to the current economic climate, Rio Tinto is
Anne focusing on some key initiatives :
“It would be fair to say that the global economic downturn • Reduction of controllable operating costs by $2.5bn pa
has been sudden and far more severe than anyone had in 2010
originally anticipated. As a result, China, one of the key global
• Global headcount reduction of 14,000 roles
economies has reduced their spending, building, production
• Increased scope of potential asset divestments
and exports which in turn mean reduced demand for metals,
minerals and natural commodities across the globe. Inevitably, • Reduction of 2009 capital expenditure by $5bn
stock piles of inventory and market pressure on prices affect • Engagement and retention of their staff
confidence and business decisions on investment, spending These will enable us to make the most of opportunities to
and growth. Despite some small signs of recovery, the current drive change, to weather the downturn and to position
level of uncertainty is certainly impacting the sector. The ourselves for growth in the future.
knock-on effect of all these things make it very challenging to
plan future investments, or significant growth strategies. As an example, the potential partnership with Chinalco,
demonstrates how we are looking at innovative and creative
Having said all that, in mining, it is always worth taking the long ways of doing business while bringing financial and strategic
term view. If I look at trends since the early 1900s there have benefits to Rio Tinto.”
been frequent fluctuations in prices and demands which over
time have seen the industry decline and recover in almost equal Nigel
proportions. The long term outlook for the industry remains
strong, so the message is, stay calm and hold your nerve ! ” “ We are in a very strong position with great customers, a great
industry reputation and a new business pipeline that will
Nigel continue to deliver opportunities for us.
“ We estimate that around 70% of products in our homes There are a number of key challenges:
have been touched by Wincanton, so our activities to an
Customers: retaining our customer base and giving them
extent are a barometer of the economy. Logistics operators,
the best possible service at the right price is crucial.
whether it be on land, sea or air slow down if their customers
‘Customer intimacy’ is an often-used phrase at Wincanton
slow down. Falling consumer demand means falling
and it’s really important we work closely with our customers
volumes. For Wincanton this has been most marked in our
to map out their future supply chain requirements and
direct volume related business. These are in container
understand how we can best support them.
logistics, recycling, road network activities and construction
logistics. Across the logistics sector as a whole volumes are Confidence: we are a resilient, well respected industry
generally down double-digit percentages and the resulting leader and it has to stay that way. So being confident
overhead cost reduction and restructuring has taken place. ” without arrogance gives Wincanton an edge. This means
increasing our market share – such as the new business
Paul wins that have recently been announced with Marks and
“ Like all businesses currently, we are being asked by Spencer, The Football Association, Marley Eternit, Augusta
customers to deliver their solutions which add real value Westland & Panasonic.
whilst assisting them in managing their costs more Communication: getting our message out about how we are
effectively. Because of our in depth expertise across the full doing and what we are doing to respond positively to the
range of services, we are often able to deliver innovative current challenges is very important. We have started an
solutions to our clients whilst improving all aspects of their aggressive campaign of external communication to make
experience of services they assign to us. sure our current and prospective investors and customers
The current downturn is encouraging larger companies to know our capabilities. Equally important is our ability to
concentrate on their core areas of expertise and to outsource balance our messages internally so that our teams know
to us in areas where we can deliver more efficiently on their and recognise that we are making good progress, but also
behalf. It’s a tough market but we have a ‘can do’ mentality understand the pressures we are under. ”
”
in ISS!
Paul
What are the key challenges “ We reflect the needs of our customers who constantly
for your business? seek excellent products and services, value for money and
results. ISS is a highly responsive company which
Anne constantly develops its business model and capability to
drive excellence at all levels of its operations. In many
“Safety is always at the top of the agenda for Rio Tinto. In times respects our challenges never change ie to anticipate, meet
of uncertainty, it would be easy to get distracted and take our and exceed the requirements and expectations of
eye off our safety imperatives. With that comes increased risk our customers. ”
and so safety is more important and requires more focus than
ever before. We are taking stringent actions to ensure that we

3. VIEW FROM THE TOP – ISSUE 2 mdh.co.uk
What are the key people and we continue to seek out, interview and log talented
people who can be part of the Wincanton team in the future. So
challenges for HR? we will continue polishing up the team we have by improving
the talent we’ve got. And we keep looking for new opportunities
and the right people for our future growth.
Anne We’ve been working hard on our internal development
“This is a great time for HR to be at the forefront of change. We challenge. Whether that be the 400+ managers we placed
need to be credible subject matter experts and drive actions to through our internal programmes in the last year, or our
2500th NVQ for our colleagues who are LGV drivers. We are
achieve efficiencies and consistency on a global scale.
currently expanding our ‘Train to Gain’ initiative with the
In my view it is the role of HR not only to support, but also to government to 15,000 warehouse staff as a supplement to
challenge the business at times like this. By being aligned existing warehouse training schemes.
with the business imperatives in a changing environment, we
We have a first class HR team who adapt quickly to change and
are able to flex and be highly responsive to the market. We
interact directly into our business. Clearly there have been job
are working directly with our leaders to review the
losses and restructuring activities as for many companies.
effectiveness of our teams while supporting the management
Being resilient and professional during tough times is an
population who may have never operated in a downturn
important element of our profession. People lean on us in HR
before. It is all about equipping them with the competence
for moral support, technical advice and to make sure the
and confidence to succeed. business is supported to achieve its results. It’s never easy
HR is also focusing on flexible and innovative reward programs; when people lose their positions through no fault of their own
organisation development; and retaining top talent. Keeping our and I believe an organisation treats people right on the transition
key talent engaged and connected with the business is critical out of employment is just as important as an employee’s
as we work through this period of uncertainty. recruitment, or during their tenure in the business. This can be
tough on HR people but being resilient whilst keeping a view on
Now is the time for HR to step into the limelight and provide
real leadership and value. If we can combine this with
”
the long-term future is a tricky yet fundamental skill to adopt.
outstanding communications and clear guidance, then we Paul
really will be helping the business through these challenging
times. There has never been a more exciting time to be an “In many respects they are the same as those for the business
HR professional in Rio Tinto ! ” – as it should be! I despair at all of the HR Gobbledegook! We
are here as an integrated part of the business and we actively
Nigel participate in bidding for and winning contracts, yet we operate
at rates of 1HR person to 700 employees! We truly are lean.
“Over the last 2-3 years it has been all about managing the HR in ISS is about delivering relevant people initiatives and
internal & external talent pipeline for very significant growth. The
services to the business at the right time at an affordable cost
growth has slowed markedly across most of the sectors we are
to achieve required business performance results. We have
in. But you know, that objective has not actually changed a
excellent training programmes which equip our people for the
great deal. The challenge of people capability & leadership
challenges they face at all levels of the organisation at the time
succession remains. From an internal perspective it’s about
when they are needed.
getting everyone focused on our plan, continuing to develop our
talent performance & succession and to provide people every It has always been my view, through the enormous change
opportunity to give their best. Being ready and able to respond which I have navigated, that HR stands or falls by how truly
to today’s opportunities such as winning market share and to relevant it is considered to be by the business. At ISS, as
respond quickly to the inevitable growth in new business as indeed for the past 10 years, I am a member of the Board and
recession ends are big business drivers for us. From an external I am judged on my contribution to the overall success of the
perspective it’s true we are not hiring in quite the volume of Business. This kind of accountability, in my view, is the only
people as in recent years. But we are still recruiting some way forward for HR in whichever sector they may operate. ”
Next issue – June 09
Find out what’s challenging the HR Leaders in other sectors. Three more HR Leaders share their views on the current
economy and the challenges that their businesses and HR face.
If you would like to participate in ‘A View from the Top’ and share your views with the HR community, please contact
John Baker on the number below.
Get in touch
John Baker Chris Archer Angela Franks Darren Hayman
CEO Macmillan Davies Hodes MDH Interim MDH Futurexec
020 7551 4732 020 7551 4710 020 7551 4668 020 7551 4761
jbaker@mdh.co.uk carcher@mdh.co.uk afranks@mdh.co.uk dhayman@mdh.co.uk