HR Excellence Awards 2012 – Most Successful Change Management Programme: Thames Water

Two years ago, in 2010, utility company Thames Water was set the tough financial challenge by its regulator Ofwat to save £300 million through efficiencies by 2015. This triggered the organisation to think about widespread strategic changes to provide a platform for its future security and success.

The company, which employs 1,600 staff, used its change programme to make a commitment on job security, make financial savings, enable technical innovations, increase operational cover, reduce overtime and improve customer experience.

It did this by aligning staff availability to customer demand, saving £10 million in overtime and excessive working hours alone, reviewing terms and conditions to support new working conditions that were flexible, but being competitive as an employer of choice and engaging its people in cultural change by communicating transparently. Operating in a unionised environment, Thames Water also had to be sure to have buy-in from the trade unions.

But through a non-siloed approach to project management, engagement from Unison, Unite and the GMB, involvement from staff and union representatives, decisions based on surveys and transparent feedback, the change management programme has been positively received.

The company worked to extremely tight project timescales, incorporating workshops and roadshows to communicate efficiency savings to all employees and comprehensive training for HR teams to ensure they were ready to talk to staff and amend working conditions accordingly.

Two years on and staff have a better holiday allowance, a standardised working week, a reduction in working patterns from 122 to 23, variable hours and standardised working across all teams. It allows more flexibility for employees, with greater cover for shifts if this is needed.

From a customer perspective, the working patterns give users of Thames Water appointment slots when they need them. In short, the company has moved into a more flexible, modern way of working, is on track to deliver the savings required and the customers are receiving a higher level of service from the water provider.

Judges were impressed with the strategy, which they believed set out clear goals and delivered a step-change for the entire business.

The panel was convinced that, while a modernisation programme of this scale - incorporating changes to terms and conditions - could have been received negatively by staff, the robust and transparent communications with employees, along with the training initiatives throughout the change programme ensured maximum buy-in from the workforce and a positive outcome for the business.

Finalists

• AmicusHorizon

• Busaba Eathai

• Central Surrey Health

• Co-operative Banking Group

• Northern Rail