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PRODUCTIVITY PAYS It’S a Problem That Needs to Be Tackled by the UK Economy

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PRODUCTIVITY PAYS It’S a Problem That Needs to Be Tackled by the UK Economy PRODUCTIVITY PAYS It’s a problem that needs to be tackled by the UK economy. But productivity – along with internal training and recognition – is what Unipart Group credits for its success. Introducing Oxford students to logistics 32 BUSINESS VOICE | OCTOBER/NOVEMBER 2014 MEMBER PROFILE: Unipart Group t the strategic level, there And it’s been implemented not he opened Unipart’s newest “A are only three enduring just across the company’s global factory-floor faculty. “They’re sources of competitive advantage automotive manufacturing, supply all exactly the same: they teach for a business: operational chain and logistics businesses. It the same body of knowledge in excellence, customer engagement has also been adopted by blue-chip the same way, because we’ve and innovation,” says John Neill, clients including National Grid, worked out what works.” founder and CEO of Unipart Group. Shell and HM Revenue & Customs. Another important way the “And all of those depend on “We knew we couldn’t company disseminates its growing and developing people.” compete on low pay: approach among staff That is why, Neill explains, Unipart we had to compete is through the – which was created through a on the talent, drive regular “Mark in management buy-out from auto and motivation of Action” awards. manufacturer British Leyland in our people,” says “The awards 1987 – set up what it describes Neill. The ability have generated as the UK’s first “corporate to replicate the hundreds of university” in 1993, to develop philosophy – stories and the best-practice management and university examples of things systems that have become what “faculties” – that our staff have it calls the “Unipart Way”. across the company’s done using the Unipart This is a set of tools and industries, and in every Way, to deliver outstanding techniques designed to boost territory it’s in, have been the secret customer service either internally productivity, innovation and of the group’s success, he says. or externally,” says Neill. customer service levels through He has recently returned Recent winners include a team better employee engagement. from a trip to China where that successfully moved a complex BUSINESS VOICE | OCTOBER/NOVEMBER 2014 33 data centre, which Unipart had have survived, because the core “Companies want help and been running for several decades, business upon which we depended advice to engage their people to to a new location. “They put was not to going to survive.” drive high levels of productivity in a huge amount of planning, This lack of a future led to the and innovation. To this end, professionalism, deep technical decision to branch out and start we’re able to implement the expertise, fantastic teamwork, and making and sourcing parts for all Unipart Way in partnership incredible hours. We don’t want makes of cars. “After we bought out with a wide and growing range people to work 18 hours a day but the company in 1987, we did logistics of global clients,” he says. sometimes you have to,” he says. for Jaguar,” he says. “Again, we The company will work alongside “We celebrate those successes got better and better at that.” these clients, and bring their because they build a culture Here again, the company decided people into its business, to see of employee engagement, and to widen its focus. “Managing the how the Unipart Way works – a desire among our people to logistics and supply chains for the an approach that Neill believes learn and grow and develop car industry is perhaps the most makes Unipart different. new skills and capabilities.” complex job in the world. So we For example, following a recent said, ‘instead of just doing logistics tie-up with National Grid in the A wider reach for the car industry, why don’t we UK, the group’s consultancy Unipart began life in the 1970s, have do logistics for the world?’” arm, Unipart Expert Practices, manufacturing and sourcing This shift in emphasis has has been hired to work with the car parts for its parent company resulted in supply chain work firm in the US. It’s further proof British Leyland. However, Neill for the rail industry, fashion that the Unipart Way crosses says, this business did not manufacturers, and for technology national borders with ease, have a long-term future. firms such as Vodafone. But there says a Unipart spokesman. “We were pretty good at what was still further to go. The success we did, but even if we had been of the Unipart Way, says Neill, Lesson for government absolutely the best in the world meant that the next logical step was Politicians would do well to mirror on all key metrics, we would not to set up a consulting business. Unipart’s focus on innovation and productivity, Neill adds. “The UK government has done a good job in creating growth at a time when the rest of Europe is flatlining,” he says. “But there is still a huge amount to do: we still have a massive deficit and debt. To get that down, we have to grow the economy. And the only way to do that is to be more competitive and productive.” The only recent blip came when a firm that Unipart sold three years ago, parts supplier Unipart Automotive, went into UEP consultant teaching Unipart Way in the office administration in July this year. 34 BUSINESS VOICE | OCTOBER/NOVEMBER 2014 MEMBER PROFILE: Unipart Group Unipart manufacturing in Coventry Unipart had ceded control as well as majority ownership to H2 Equity Partners, but it had licensed the firm to continue using the Unipart brand. This decision appeared to have backfired when newspaper headlines appeared in the FACTFILE: summer announcing “Unipart in administration”. Unipart Group “People who didn’t read the body copy were left with the residual impression FOUNDED: that we as a company had gone into administration, which was galling,” Neill 1987 through management says. However, the firm got support from the CBI. “The CBI helped us write buy-out from British to our customers and industry leaders to explain what had happened.” Leyland The situation was both costly and put jobs at risk. “It was annoying because of the money it cost us, but it was particularly disappointing HEADQUARTERS: because it risked 1,400 jobs,” says Neill. Happily, he adds, many of those Oxford employees have now managed to find work elsewhere in the industry. STAFF: But the saga has taught him two lessons: “Beware private equity making Almost 10,000 promises it can’t keep. And never license your brand to anybody.” ◼ OWNERSHIP: Employees, managers and the Unipart Pension Trust TURNOVER: £1,056.3m PROFIT: £26.2m (including joint ventures, before exceptional items) Unipart Way used in the NHS BUSINESS VOICE | JUNE/JULY 2014 35.
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