Name: Hanif Abdurrahman Wicaksana
NIM: 29116432
Class: YP56C
The Royal Bank of Scotland Group, The Human Capital Strategy
Main Question:
What is the symptom which told on the case?
What is the main problem?
How they solve the problem?
Short Background about Royal Bank of Scotland
The Royal Bank of Scotland (RBS) established by royal charter in Edinburgh in 1727. In
1874 the bank expanded to london, and by the 1920 the bank began establishing a presence
throughout great britain, generally through acquisition. In 1969, RBS and the National Commercial
Bank of Scotland merged to become scotland’s largest bank with a 40% of market share. Beginning in
the 1980s, the group rapidly diversified its business: It set up an innovative car issurance company.
m
er as
In the 1990s, the group implemented an effort known as a “prject columbus” which sought to
co
rejuvenate its retail banking division via superior service delivered through customers
eH w
segmentation. This project lead by Greig Aitken (the group’s head of employee engagement).
o.
Overall, the project columbus proved effecttive, allowing the group to direct increased
rs e
revenue towards lowering its cost-income ratio.
ou urc
In 2000, Sir. Fred Goodwin became a CEO of the group also succeeded in take-over battle
against competitor to acquire National Westminster Bank (NatWest) in a $34 billion deal and
the RBS achieve $4 Billion of profit enhancement. This acquisition makes RBS as the #2
o
retail bank, the #1 private, corporate, and offshore bank in the U.K, and operated over 30
countries with 140.000 staffs.
aC s
v i y re
After the acquisition of NatWest, Aitken spoke that the human capital strategy is the key in
sopporting the NatWest acquisition since the group was a home for 32.000 employees, many of whom
were located in the U.K. The Human Capital, in the RBS condition with a large organization and high
economic of scale, is not only an option for the group but rather a strategic imperative. Aitken told
ed d
that in 2000, RBS was already introduced a full service approach and the strong bussiness partner
ar stu
structure within RBS. This method enabled the introduction of the Human Capital strategy
progressively across the business also supported the business leader by getting them the right
information to make informed people decision. This method was evidence-based.
sh is
By 2006, The group having made over 20 acquistions and succeeded tracking their progress
Th
of acquisition and measure the effectiveness of people strategy as well as impact to a
bussiness performance.
By 2007, The group suceeded the integration (core competency of RBS) to be applied all over
the RBS’s large organization.
By 2008, The group had undergone a massive transformation, nearly quadrupling in size. In
this year, the group had successfully acquired the Dutch Bank ABN AMRO holdings NV for
nearly $100 billion in a concortium led by the RBS. In this year, the group was made a group
as #1 corporate and institutional bank in both the UK and the continental europe also #5 in
both the US and asia pacific (ex-japan). It makes the group has an opportuinity to enlarge
their international retail franchise in india and china, as well as extending a strong global
capability in international cash management, payments, and trade finance. By April 2008, the
group had 171.000 people across 5.000 business unit with over 40 brands operating in more
than 50 countries.
This study source was downloaded by 100000816392723 from CourseHero.com on 07-03-2021 20:43:35 GMT -05:00
https://www.coursehero.com/file/22182958/The-Royal-Bank-of-Scotland-Group-The-Human-Capital-Strategy-analysis/
The group was organized into 4 main operating division. First, global market. This division
responsible for providing banking services and integrated financial solution to major global corporate
and financial instituitions, as well as offering a world-class capability in international payments.
Second, regional market. RBS operated in a number of distinct national and regional market across
the globe. This division offering personal, business, and commercial customers a range of banking
product and services, through the largest network of branches and ATMs in the UK. Third, the RBS
issurance. RBS is the first car issurance and the second-largest general and home issurer in the UK,
with a growing presence in spain, italy, and germany. Fourth, the group manufacturing. This
division provided the rest of the group with a wide range of support function including IT, processing,
telephony, property, purchasing, and security expertise. And last, the group function (the supporting
system of group manufacturing) . Its the number of group which provided a strategic support and
advice to the operating division (such as group legal & secretariat, strategy, finance, risk & internal
audit, communication, and human resource).
Question No 1. What is the symptom which told on the case?
The underlined thing is, the group has a large-scale organization across the world so that there
is a challange to make The Human capital system integrated in their organization. The symptom
m
appeared from the initial moment when the organization was entirely small to the RBS when it begin
er as
to acquired another company till now. Also in this part given a solution to the symptom.
co
eH w
The symptom in Initial event
o.
In the 1990s is the moment when a Project Columbus was initially introduced in RBS. In this
rs e
moment, appeared a problem where Neil Roden, Royal Bank of Scotland Group director of Human
ou urc
Resource described the state of the Group’s HR when he arrived in 1997, when he go through project
colombus which a huge change program. The description can be pointed as:
o
The Human Resource of Royal Bank of Scotland Group was marginalized the Human Capital
process which conducted to a foundation to acquisition on NatWest later in 2000.
aC s
The Human Resource of the Royal Bank of Scotland Group was not in a great shape in
v i y re
applied a Human Capital process. (told as they didn’t report to chief executive, they wasn’t
keep in touch with the inner circle of the group, and the a presence problem)
There are a conflict between a team member
ed d
Solution: a strong evidance-based HR in concultancy model
ar stu
Between 1997 and 2000, Roden introduced a strong evidance-based HR function framed
around the concultancy model. He introduced an annual HR customer survey and bi-annual activity
review to ensure that the HR function was focused on delivering business’ priority. The result of this
sh is
method is a confusion appeared the issues whereas the method must adding some value to the
Th
business. This condition affected in creating a HR measurements idea. This measurements was highly
evidence-based also generated a bottom-line business performance in the RBS.
Solution: Human Capital Model in 2000
This Human measurements was a tool when RBS acquired NatWest. At the time RBS
acquired NatWest, Tony Williams had implemented RBS’s shared service strategy and was backing a
Natwest into the strategy. His team developed a global data warehouse that pulled various elements of
people data together from HR system across the group including information such as where they
work, what their performance rating is, what their salary is, etc. This data from williams joined up
with data on the business as a whole particulary financial measures. This method started a proactive
HR measurements approach which called Human Capital
Turnover and Absence Symptom
This study source was downloaded by 100000816392723 from CourseHero.com on 07-03-2021 20:43:35 GMT -05:00
https://www.coursehero.com/file/22182958/The-Royal-Bank-of-Scotland-Group-The-Human-Capital-Strategy-analysis/
The aggregation of people data and subsequent analysis provided RBS the deep insight of
people measurements in absence and turnover. There were an intense focus within organization on
short-term tenure, tunover, and absence, including target, and these were driven down to below
market norms. This focus on metrics delivered significant financial savings in recruitment cost and the
retention level which consequently higher. Solution: So The team from RBS analyzed that the survey
must included the employee proposition which segmented as age, gender, and tenure.
Employee Engagement as a New Human Capitan Strategy
RBS partenered with HR conslutant (Hewitt Associates) developed a new metrics. The
metrics measured by multi-regression on survey data. RBS determined that more engaged employees
the more its produced superior business result. Engagement manifestated in 3 ways: what employees
said, increased retention, and whether or not they exerted extra effort toward behaviour that
contributed to a group’s success.
Building Human Capital Buy-in
Symptom: The employee engagement is not the only one which utilized in the Human Captial
Analysis, there is a leadership effectiveness and linked to customer services, achievement, staff
m
er as
absences, and turnover which conducted to be the parameter in HC analysis. Solution:
co
Question No 2. What is the main problem?
eH w
The RBS group has been introduced the Human Capital Strategy in its quest to make the HR
o.
more business-centric and more business-approach. The problem appeared when it comes to the keay
rs e
area application of the RBS itself. The group has 2.250 branches and encapsulated both the RBS and
ou urc
NatWest retail brand, collectively catering to over 15 million customers around the globe. This area
meaning that the analysis which conducted by RBS which consists of:
o
Number of employee in each key role, Distribution of performance rating
aC s
from customer advisor through across key role
v i y re
regional manager Spans of control
Average salary for each key role Engagement and leadership index
Average incentive payout scores
Absence rates compare to target Discipline and grivances number
ed d
Tenure and turnover rate Diversity metrics
ar stu
Talent ratings
sh is
Th
This study source was downloaded by 100000816392723 from CourseHero.com on 07-03-2021 20:43:35 GMT -05:00
https://www.coursehero.com/file/22182958/The-Royal-Bank-of-Scotland-Group-The-Human-Capital-Strategy-analysis/
Must be known and understand about the impact of the Human Capital Analysis to
their performance measure on their business by the key consumers banking executive.
Problem Statement: “The challange before the HR manager is to increase the understanding
and usage across the globe, extend its application, and utilization in the commercial and
corporate business unit. The issues is to find out the best way to approach manager to use the
toolkit and increase the utilization so the manager could be understand and get an insight
about the human capital to make a well-informed decision about their business.”
Question No 3. How do they solve the problem?
In order to accomplished the challange in deliver the Human Capital Strategy, Roden tells the
solution:
RBS has the outstanding Human Capital infrastructure across the group that deliver
insight directly to the desktop of HR professional. Since RBS has the number of key tools which is so
powerful and readily accesible to the business leader, they must build an interactive tool that will
m
enable leaders to view key people, sales, customer service, and financial performance metrics through
er as
single lens. When this interactive tools accomplished, RBS could embed the human capital strategy
co
into the way RBS do business. The answer for the interactive tools are the human capital toolkit
eH w
The Human Capital Toolkit
o.
rs e
The human capital toolkit is the online tools and resource that helped HR professional
ou urc
across the group diagnose issues, develop intervension, share best practices, and measure the
effectiveness of their people strategy. The Human capital toolkit consist of 6 modules which is survey,
reports, benchmarking, research, measurement and business intelligence, and was available to around
o
2.000 HR executives and consultant across the group. Put simply, the toolkit aimed to put the sum of
aC s
the group’s human capital effort in one place to enable access in the large organization like RBS.
v i y re
ed d
ar stu
sh is
Th
This study source was downloaded by 100000816392723 from CourseHero.com on 07-03-2021 20:43:35 GMT -05:00
https://www.coursehero.com/file/22182958/The-Royal-Bank-of-Scotland-Group-The-Human-Capital-Strategy-analysis/
Powered by TCPDF (www.tcpdf.org)
