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PresentationPresentation toto seseugiugi 2121 JuneJune 20032003

Iain Middleton Group HR Information Strategy SAS within Human Resources

I Why?

I What?

I How?

I Where? SAS within Human Resources

I Why use SAS to “count heads”?

I What?

I How?

I Where? SAS within Human Resources

I Why use SAS to “count heads”?

I What were the integration challenges?

I How?

I Where? SAS within Human Resources

I Why use SAS to “count heads”?

I What were the integration challenges?

I How does SAS enable HR to add value?

I Where? SAS within Human Resources

I Why use SAS to “count heads”?

I What were the integration challenges?

I How does SAS enable HR to add value?

I Where are we and where are we going? Counting heads

credit scoring behavioural scoring one head per person...... easy bad debt forecasting

I Previously worked in Lending Systems

I Began working in HR on 14 February 2000 Counting heads

credit scoring behavioural scoring one head per person...... easy bad debt forecasting

I Previously worked in Lending Systems

I Began working in HR on 14 February 2000 Integration challenges - HR data on many systems

Global Financial Markets 9 Lombard Asset 20,000 staff 6,00 1 HR system 0 sta Cayman Islands 3 ff Greenwich NatWest 0+ H R Coutts Miami / Asia Multicor syste Integ ms Coutts Switzerland Direct Line ratio Comfort Cards n tra ckin Group RoyScot Trust Gro g Lombard Bank up st One Account ruct NatWest Offshore ure RB Invoice Finance Greenwich Capital Markets Adam & Company Coutts UK NatWest main UK bank Integration challenges - creating the hierarchy

10 Divisions

1,000 business areas 10,000 moves per month

40,000 cost centres

96,000 staff RBS Group March 2000

Corporate Citizens Direct Ulster Banking NW RB Retail Wealth Financial Line Bank & Financial Retail Retail Direct Management Group Group Group Markets

Manufacturing

Group Corporate Functions

Executive, HUMAN RESOURCES, Finance, Economics, Communications, Strategy, Legal & Compliance Integration challenges - dynamic global environment

I staff costs of £3.5bn (source: RBSG Accounts Dec 2000)

I presence in 25 countries

I 18,000 jobs to be tracked

I 60,000 employees to migrate to core HR system

I 4,000 joiners/leavers each month

I ....at the same time as Group Technology carried out the largest-ever IT integration in history Integration challenges - staff tracking issues

More than 30 independent HR systems covering staff in 25 countries;

Variety of data categories (including over 5,000 duplicated IDs across PeopleSoft systems);

Integration project codes not available on HR systems;

Missing/changing dates of birth, NI numbers, surnames, prefixes, initials......

Gradual evolution of reporting requirements Integration challenges - ongoing acquisitions

Euro Sales Finance Dixon Motors - UK, France, -UK Holland, Germany

WorldPay -UK, South Africa, Singapore, Germany

Allstate Royal & Sun Alliance direct motor businesses direct motor businesses - Italy, Germany -Italy Integration challenges - ongoing acquisitions

Retail Banking area of Feitelberg Insurance Corp

WorldPay

Medford Bancorp Port Financial Corp The SAS Data Warehouse

Monthly snapshot Monthly snapshot Monthly cost centre employee data absence data from details from Finance Quarterly data from Leavers’ from 30+ HR systems 30+ HR systems and line HR Questionnaires

Misc ad-hoc Group-wide reports: GEMC Report: measures and Diversity, ratings, salaries, Profit provides Group commentary on Sharing, maternity leavers/returns etc Executive with HR initiatives human capital

HRMIS : data Movers Reports for line SAS data warehouse on non-PS staff and HR to advise leaving codes, Group Tree redundancy amounts, integration codes

Tracking Toolkit Hierarchy Toolkit Scorecard Toolkit: Leavers Toolkit: showing voluntary showing headcount headcount, gross interactive analysis turnover and absence and structure for turnover, absence of answers provided rates against targets 40,000 cost centres and costs for 800 by leavers. for 800 business areas across the Group business areas Helping HR to add value

I HR management information is now:

!consistent

!reliable

!robust

!accessible world-wide

I This allows HR professionals to focus on real business issues with a bottom-line impact:

!reducing voluntary turnover by 1% improves the bottom-line by over £20m*

!reducing absence by 0.1% improves the bottom-line by over £2m* * based on an average 93,000 FTEs with an average salary of £20k Where are we now and where are we going?

I November 2002: largest-ever IT integration project completed successfully ahead of schedule Where are we now and where are we going?

I From the SAS data warehouse the HR teams now have data on: !headcount, structure, turnover, absence, leavers

I The warehouse is a vital part of the ‘data quality improvement loop’ with core HR systems

I Ongoing developments are: !short-term tenure turnover !reasons for employees choosing RBSG !forecasting based on geodemographics !in-sourcing analyses which previously had to be out- sourced

I Ultimately, a global HR platform Where are we now and where are we going? CROSS-FUNCTIONAL ANALYSIS: eg Finance Human Resources Risk Technology Corporate Citizens Direct Ulster Banking NW RB Retail Wealth Financial Line Bank & Financial Retail Retail Direct Management Group Group Group Markets

Manufacturing

Group Corporate Functions

Executive, HUMAN RESOURCES, Finance, Economics, Communications, Strategy, Legal & Compliance Where are we now and where are we going?

I RBSG is now the second largest bank in Europe and the fifth largest in the world I Market capitalisation is £47 billion (May 2003) I RBSG has more than 20 million UK personal customers, 2,287 UK branches and assets of £412 billion (Dec 2002) I Profit before tax (Dec 2002) was £4.7 billion, up by 12%. I January 2003: , Group Chief Executive named Businessman of the Year (Forbes Magazine) I February 2003: Neil Roden, Group Director Human Resources named Human Resource Director of the Year (AON Consulting) I April 2003: RBSG named winner of Best Systems Integration Project of the Year (Financial Systems Technology Magazine) STOP PRESS!

I 14 May 2003: RBSG to buy Santander Direkt Bank (Frankfurt) I 10 June 2003: RBSG “is the best-performing bank in the world” (The Boston Consulting Group) in terms of Risk-Adjusted Relative Total Shareholder Return 1998-2002 I 11 June 2003: RBSG to acquire Group

− cost of GBP 1.1billion

− RBSG will be the third largest general insurer in UK

− 9,000 employees to be added to the SAS data warehouse