A large financial services provider had strengthened its position by acquiring 3 competitors. Maintaining the independence of its own and the acquired brands led to a high level of complexity in the product portfolio and duplication in settlement structures and processes. With a recognized high level of service in customer contact and support, these cost disadvantages and the long-term low interest rate level led to a sustained weakness in earnings.
Unification and staff reduction to cut costs by 20 percent
In the "Operations" division (with more than 1,000 employees), costs were therefore to be drastically reduced through standardization, centralization, streamlining and automation of products, processes, structures and systems. In addition, personnel costs were to be reduced by cutting around 20 percent of the total workforce over the course of three years. In addition, the modernization of the digital customer approach should contribute to a better performance in the acquisition of new customers and thus to an improvement of the "top line". The interim HR manager was tasked with supporting the change processes on the one hand and consistently implementing the cost-saving measures on the other. In the course of the project, he was entrusted with various tasks.
Location closure, relocation of tasks and staff reduction
The interim manager helped formulate the catalog of measures for the staff reduction. The focus was on an extensive voluntary redundancy program. Change bonuses, early retirement agreements, amicable contract terminations, individual orientation counselling and an open-ended outplacement program helped to largely meet the savings quota.
Thanks to the socially responsible approach, the interim manager was able to successfully negotiate a reconciliation of interests with the works council in accordance with the Works Constitution Act (BetrVG). To monitor success, he also developed a reporting system that regularly informs top management and the works council about staffing levels.
Identifying and retaining high performers with high future potential
As part of the change process, particular attention was paid to so-called "high potentials". Especially in times of increased competition and the emergence of new market players (online insurance, mobile insurance apps), these employees could not be unsettled under any circumstances. One of the objectives of the restructuring was to avoid increased fluctuation in this group of employees at all costs.
At the start of the project, however, there was no functioning performance management process and no standardized methodology for identifying and promoting high potentials or high performers. The interim manager therefore initially developed a pragmatic method for identifying particularly valuable employees. He used a multidimensional catalog of criteria, an indication process based on the "four-eyes principle", individual interviews and talent workshops with top management. In the workshops, retention tools developed by the interim manager such as retention interviews, career paths, top management perspectives, career coaching as well as individual and group development programs were coordinated and approved.
Coaching and training for sustainable change management developed and implemented
The active involvement of middle managers (second and third management levels) is essential for successfully shaping change. Ultimately, this group (in this case a total of around 60 managers) decides through their behavior and communication whether and how employees accept far-reaching changes.
This is why the interim manager designed and implemented management workshops for training retention, perspective and separation interviews. In the course of the training process, he was able to improve the leadership behavior of the line managers and ensure the success of the discussion-based intervention. In addition, the interim manager initiated a self-organized peer support process through which the managers now provide each other with ongoing support.
HR organization enriched by the role of change agents
The HR department plays a central role in the implementation of organizational adjustment processes. In the functional areas of the already modern HR organization (HR Operations, Competence Centers and Business Partners), the interim manager introduced the overarching role of the "change agent". These work both internally (in raising awareness in the HR department) and externally - with the entire workforce. A digital team platform (Slack) forms the basis for collaboration between the change agents across functional areas and locations.
Roadmap for new HR management methods and offerings developed
Shortly before the end of the 9-month interim mandate, the interim manager set up various accompanying measures to support the change process, which were implemented at different times. These included strategic maps, feedback workshops and a change site on the intranet.
He also created an initial backlog of projects for changes in HR management as a whole. These include talent management, remuneration, health, climate, working hours and benefits. The backlog and new projects are now being successively processed by a project group in HR using agile methods.
