Stepping up the pace to manage successful business change within Serco

In February 2005 Serco acquired ITNET, a leading IT, business consulting and business process outsourcing company. The acquisition has invoked a key programme of business change to merge the two businesses and shape the strategy and philosophy of the newly branded company, Serco Solutions.



Identifying the key drivers for change
As with any capability and value based acquisition, the overarching challenge is to successfully integrate the two businesses. This involves understanding the cultures and business processes of each organisation and establishing and articulating to stakeholders a revised strategy. Given that one of the biggest problems with change management projects is that employees are not engaged at the onset, this programme sought to involve employees from the start and to empower those people to drive the change.

In order to ensure a successful transition, ëPACEí was formed as the change model to create the re-branded ITNET organisation, Serco Solutions. Following a detailed programme of due diligence, a timeline and framework for the change programme was implemented. Three key drivers for change were instigated to benchmark the current situation and progress the required change.

First step - Involving people
It was identified that the bringing together of people would be the key determinant of how successful the PACE programme was. A first step was to establish how employees felt about how they wanted to move forward with Serco Solutions. The staff survey set out to gauge peopleís attitudes and perceptions in order to create a benchmark. Over 2000 were surveyed and a response rate of 75% was achieved. It was evident that people were ready to embrace change and wanted to be involved in the programme which would make change happen. Following the initial survey, a regular newsletter which informs and updates on the progress of the programme is issued to all employees in order to maintain the engagement in the long term ñ not just at the beginning.

Step two - Bringing together business processes
The operational review set out to continually evolve the shape and structure of the organisation. After a review of business practices (including all business areas), cornerstones were put in place to generate competitive advantage and develop differentiation in the marketplace. This involved putting in place clear transformation values, designed to benefit all key stakeholders. These include:

- A single point of accountability into each account, visible to customers
- Appropriate empowerment for people in all areas
- Maximisation of efficiency from a shared service environment
- A joined up approach to proposition development, marketing, account development and new sales
- Innovation to drive continuous improvement
- Focus on service excellence
- A single point of accountability for all bids

Step 3 - Understanding cultures and values
The final drivers for change are the requirements of Serco Group.

Sercoís culture has been a differentiating factor for the group since its inception in 1987. This culture is clearly expressed in a set of Governing Principles:

- Serco fosters an entrepreneurial culture
- Serco delivers on its promises
- Serco enables people to excel
- Serco builds trust and respect

The PACE change programme has proved to be the ideal means to bring these principles to life across the business.

Step 4 - Unique approach - Driving change through empowerment
A key problem with business change programmes is fostering the support of the whole business. PACE has taken a unique ëintegrated approach rather than just a ëtop-downí approach to ensure maximum efficiency and organisational coverage.

Typically, change themes are often articulated and fed through from the top. The PACE programme has empowered over 50 Change Champions from across the business to drive change throughout the business. These change Champions are chosen from across the business irrespective of position, market or seniority.

The success of the PACE initiative involves promoting ëchangeí by stimulating the Change Champions through means of encouragement and an entrepreneurial culture. The programme aims to drive and inspire change from multiple directions within the organisation. The CEO and leadership team act as the role models to encourage and motivate change. The Change Champions are vital in the process of creating a virtuous circle of feedback. By operating in this way Serco extends its reach right across a geographically diverse business.

Benchmarking success
Going forward the vision is to involve a further 300 people from around the business in the PACE scheme. It is important that a hierarchical approach does not decelerate or complicate the change process. Encouraging a virtuous entrepreneurial model is vital in the success of the project. To reach this wide audience PACE team hosted a series of leadership retreats and a leadership conference. Around 200 delegates attended the most recent conference. During the conference, delegates were confidentially asked a number of questions. This included asking if they had seen positive change since the acquisition and 83% agreed. Another question asked delegates to prioritise actions in PACE. The team have used this to build the project plans. As the programme grows and develops momentum the aim is that it becomes part of normal business activity.

Further and regular benchmarking is important to feedback and encourage the change process. A key indicator will be the next staff survey in October which will survey 2000 employees again. Key findings will be revealed and it will gauge the extent to which the integration has been successful thus far.

Sustaining the pace
The transition from ITNET to Serco Solutions will inevitably be a long term initiative. It will continually evolve through empowerment of employees within parameters based on the governing principles of the business. The success is about people; valuing ideas, inspiring others and providing clear direction and feedback. Through this, wider support will be generated and ensure that the challenges in business strategy and operations are embraced. The PACE team are developing a series of visible measures including an E-balanced business scorecard to help sustain the momentum across the business.

Early successes
Christian Morgan-Jones, change director at Serco comments:

ìWhilst the programme is very much in its early stages of roll out, weíve already tracked the great communication and cascade following the recent conference, noticed an up-turn in the number of team meetings and seen a steady increase in the use of the PACE web site. Weíre all looking forward to the wider staff survey in October which we regard as the acid test!î