1. VIEW FROM THE TOP
The latest HR market insight
ISSUE 3
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 3rd of a series of articles, he meets HR leaders from Standard Chartered
Bank, East London NHS Foundation Trust and Novae.
Caroline has worked for Standard Chartered Bank (SCB) since 2001. Her experience is
mainly generalist, with over 20 years’ experience, across four different industry sectors.
Caroline currently has responsibility for Middle East, Africa, Pakistan, Americas and Europe,
as well as the Global Support Functions. She really enjoyed her time in 2002 to 2004 when
she was fortunate enough to work in Dubai, covering the Middle East and South Asia. Prior
to SCB, she worked at Glaxo Welcome (now Glaxo SmithKline) for seven years.
Caroline Bagshaw
Head Human Resources, MEPA, Americas and Europe and Head Human Resources
Global Support Functions
Standard Chartered Bank
For the majority of her career, Mary worked for Ford Motor Company in Human Resources.
She was promoted to HR Director early in her career and worked in Germany for 5 years
where she was responsible for HR function in six European Companies. She has also worked
for HSBC Investment Banking and Timberland Europe.
Mary received an OBE for voluntary work and fund raising. She also received the CBI
sponsored award called ‘Business Woman of the Year’ for her success in Industry.
Mary is also a Local Government Councillor representing an area in Peckham.
Mary Foulkes
Director of Human Resource
East London NHS Foundation Trust
John joined Novae from financial services administration and advisory firm Mourant, where he
spent five years as HR director. Prior to that, while at CMS Cameron McKenna, he helped
manage the merger of Cameron Markby Hewitt and McKennas. With around 20 years’
experience in HR management, John has also held senior positions with Standard Life, global
accounting and business advisory firm Grant Thornton, and City law firm Linklaters.
John Renz
Human Resources Director
Novae LONDON - MANCHESTER
WWW.MDH.CO.UK

2. VIEW FROM THE TOP – ISSUE 3 mdh.co.uk
How is the global downturn There are areas within the sector that aren’t so affected
where risk can be spread. ”
affecting your sector? What are the key challenges
Caroline
“The pace of change in financial services globally was
for your organisation?
quicker and deeper than what anyone had anticipated and Caroline
the competitive landscape has changed considerably over the
last year. We are one of the few banks to have come out
“ In these difficult times it is really important not to turn all our
attentions internally; we need to continue to focus on the
stronger in this crisis - in terms of profits, capital and liquidity.
customer and their needs and wants. We have to remember
We remain consistent with our strategy: to focus on Asia,
that they are all impacted by the economic situation and this is
Africa and the Middle East. However, the crisis also presents a
the time when we should be there for them.
bank like Standard Chartered with lots of opportunities as our
peers get increasingly distracted. We have taken this One of our key challenges is ensuring we seize opportunities
opportunity to grab market share, attract deposits, hire senior that have been presented because the competitive landscape
level people, and fast-track expansion in some businesses has changed, continuing to build on our strong commercial and
(like the Cazenove Asia acquisition). employee brands which have been a really positive outcome of
the economic crisis for us.
However, while we have traditionally been a very conservative
bank, we are extremely mindful of the risks and challenges It goes without saying that we must ensure operational
that lie ahead as these still remain difficult to predict.” effectiveness and efficiencies both in the business and
functions. This is the time to be more focused on these areas;
Mary to ensure we have no surprises and that we are ready to
“ Like other NHS Organisations the recession may result in a respond to the upturn.
reduction in the Department of Health's central allocation. If
We have recently reviewed our Consumer Banking model to
there is also a reduction in the PCT allocation this could also
focus more on the customer and getting the basics right. For
have an adverse impact on our financial situation.
Wholesale Banking, we are continuing with our customer
We are a proactive Trust and prior to the recession we were centric strategy that we have been following for last 4 or 5 years
focussing on prioritising our management cost by reviewing that has continued to deliver strong growth, even in these
new ways of working. Instead of automatically hiring new staff ”
difficult times.
if we make a change to the structure, we now will review how
we can use the employees we have more efficiently to cover.
Mary
Despite the pressures that have arisen from the recession we
“ We are seeing a challenge from the private sector. As
commissioners go out to tender for new suppliers of mental
are committed to offering a first class inpatient and
health services we need to be prepared for the fact that we have
community service to our service user. We continue to work
more competition of a different nature. We need to assess our
towards creating more innovative strategies to cope with the
culture so that we can benefit in a competitive market. In
effects of reduced spending, especially as we foresee it really
addition we have to look at how we engage and retain our staff.
starting to effect us over the next couple of years.
We have an Organisation Development Programme which will
The Boroughs we work in are some of the most deprived in include development and internal leadership programmes,
the UK and there has always been a disproportionate level of enhancing communications between managers and staff and
unemployment and deprivation. The recession has made finding different ways of acknowledging and rewarding staff or
things even worse. We are working with local communities teams. NHS Trusts are restricted by Agenda for Change which
and Job Centre Plus to ensure that the local population apply dictates how we can pay and reward staff. We will have to
for jobs in the Trust. compete against private sector providers who are not restricted
Due to the number of job losses in a number of
by the Agenda for Change. ”
organisations, there are some highly quality candidates on John
the market which will assist us in achieving our recruitment
targets. There is still a shortage of nurses, who have a “ Having a coherent approach in the way we lead our
significant impact on our service users. We have been able people is certainly at the top of the agenda. Currently
to make some fantastic hires and vacancies have reduced leadership and communication is top down. What needs to
from 22% to 7%. ” be agreed is the style of leadership that balances business
goals and individual preferences. Making sure we have the
John right skills and strong internal relationships are also the key
to moving the business forward.
“ The 2 key concerns for our sector is firstly the longer term
liabilities born out of the financial crisis that have not yet Novae are also looking to grow, both organically and by
come through the system; and secondly the short supply of acquisition. The business is going to have to change from its
capital to underwrite. Both of these have measurable and current form to a model that is fit for purpose. It is going to be
material impacts and the worst may yet be to come. At a a maturation process of getting the people proposition right. ”
time when there should be more business in underwriting
and less in investment, one can support the other but both
are reasonably flat as interest rates have remained so low.

3. VIEW FROM THE TOP – ISSUE 3 mdh.co.uk
What are the key We are reviewing our training and development department so
that it can deliver the ever requirement to deliver statutory and
challenges for HR? mandatory as well as personal development training.
We are introducing a number of schemes with the aim of
Caroline reducing the number of grievances. This includes the use of
“Firstly, the key focus for HR is employee engagement. The HR mediation to resolve issues before they become formal. Over the
team has already developed great tools and processes to support past 18 months there have been significant changes in the HR
this, so our focus is providing coaching and facilitation support to department. This includes an increase in the number of HR
managers and their teams. We know from our internal research, team members being based in the localities where the majority
as well as available external research, that one of the key levers to of line managers and service users are based. The reputation of
highly engaged employees is their manager. It is simple, the department has improved but there is still a long way to go.
managers need to be clear about what their teams are expected The positive feedback is starting to filter through around the
to deliver, ensuring they do what they do best, let them know how quality of work our customers are now experiencing.
they are doing, ensure they have to tools to do their jobs and take I am fortunate to work with a leadership team who recognise
care of them so they feel valued. The other important area for us the importance of the HR teams’ role in delivering our
is the organisation culture and values which sets us apart from workforce strategy.
the competition and is part of our strong employer brand. Both
The workforce strategy specifically addresses the Trust’s
these ensure we attract and retain talent.
strategic objectives to:
Secondly, it is important that we have the right organisational
• Drive up the quality of our community and inpatient services
models. We have a number of organisational development
• Develop a highly skilled, motivated and culturally competent
reviews going on at this time to ensure that .
workforce
Thirdly, as a result of the global financial services environment, • Maximise learning opportunities for all staff, provide high
you will know that the Financial Services Authority (the quality teaching and training, and remain a centre of
Regulator) is reviewing how bankers are rewarded. We believe excellence for research;
that reward is key to driving the right behaviours and has been • Develop existing and new partnerships to promote social
part of our compensation philosophy. We continue to review this inclusion for all our service users
to ensure a balance of risk (short term and long term) and • Become the Mental Health Employer of Choice for East London.
reward, whilst remaining competitive. The workforce strategy has six strategic aims:
Finally, we are continuing to transform our own function. We • To improve recruitment and retention in order to have the
reviewed our operating model last year and confirmed that it right numbers of the right staff in place at the right time
was the right model for us. However, we needed to continue to • To develop a highly skilled, motivated and culturally
standardise and migrate processes, improve user friendliness of competent workforce
systems to encourage MSS and ESS and ensure that the HR is • To become the Mental Health Employer of Choice for East
a real business player by having the right conversations about London
business outcomes and not HR processes and products. ” • To facilitate new ways of working to ensure that the best use
is being made of highly trained professionals
Mary • To improve workforce design and planning to ensure the
“Engagement of our employees is essential. We will not only right workforce capacity
be competing for the contracts with new private operators, but • To develop Human Resources capacity and capability.
also for staff. We need to accept that we cannot adjust our My role is challenging and whenever I feel frustrated, I
remuneration strategies in the same way that our new remember why the HR team are essential in offering a first
competition can. We can offer more to our employees than class service to our customer and in turn they will provide our
purely financial rewards. The benefits we offer are understated. service users with the care and support they deserve. ”
Being the largest employer in the UK we have been able to
negotiate a variety of discounts to all staff and their families on John
a wide selection of services and retail products, which are “Executive Remuneration has become a political issue and
offered to us by leading, high street retailers, financial, legal there will be an increased need for intervention. Any argument
and travel providers. We have introduced a life long learning previously made by HR to reward long term performance over
programme and a scheme to ensure we become a place short term risk taking is lost and the regulators are moving in.
where staff with mental health issues are supported. We are This means remuneration will become a compliance issue
developing an environment where our service users are rather than a behavioural issue. As such, the ability to shape
supported if required when they join the Trust. We have an behaviours and culture through reward will be limited by
excellent range of flexible working options and we have compliance and regulatory bodies.
maintained a final salary pension scheme. One of the current
projects is the implementation of a new administration We will also need a consistent approach to leadership but still
structure. The aim of the admin review was to: allow for the entrepreneurial flair of our people that makes the
business successful. It is going to take a more intellectual style
• Foster continual service improvement and innovation. of leadership to allow this to happen.
• Support clinical leaders to achieve excellence.
• Value staff so that they can achieve their potential. Insurance broking and underwriting does not have best
• Promote and encourage learning. reputation for listening to the advice of HR. It will be my role to
ensure HR is heard amid the complex pressures the business
We have carried out facilitated workshops for our clinical teams ”
will face legally and politically.
to help equip them to deliver the Trust's five year plan.

4. Next issue – October 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