S

Syndicate 6

The Royal Bank of Scotland Group:

The Human Capital Strategy

1. Devi Natasha Polim – 29121048

2. Masegi Primartono – 29121070
3. Yosantia Bella – 29121085
4. Tigas Adrian W – 29121173
5. Billyandri Herfiantara - 29121267

School of Business & Management

Bandung Institute of Technology
 INTRODUCTION
The Royal Bank of Scotland Group (RBS) is one of the world’s leading financial services providers and one of the oldest banks
01 in the UK. The takeover of National Westminster Bank in 2000, followed by a series of approximately 30 smaller acquisitions,
marked a
period of significant growth for the Group, increasing its strong UK presence with operations across Europe, the USA, and Asia.

By the end of 2002, it was the second largest bank in Europe and the fifth largest in the world by market
02 capitalization. In the UK the RBS Group’s branch network spans the nation and boasts a pedigree of great
variety and distinction.

Its history is very much the history of banking in the British Isles over the past four centuries, as the Royal
03 Bank can trace its roots back to the sixteenth century through the amalgamation of more than 200 private and
joint stock banks which comprise its past and present constituents.

04 Following the recent acquisition of ABN Amro, the Group now serves more than 40 million customers in 53
countries with around 170,000 staff.

Because they are growing by acquisitions, integrating the organization from various cultures and values is a challenging issue.
They need to know every staff or employees wants about their job. They also believe that in this crowded and “almost perfect
05 competition” between their peers, employee contribution and performance it’s the key. With a very supportive HR Director and
Chief Executive, and a ‘make it happen’ culture within RBS, the development of HCM has aimed to keep ahead of the
information needs of the company. 2
 PROBLEM DESCRIPTION
• Blocks of the human capital strategy, when Neil arrived in 1997
the Group also had some conflicts between members. Having a
problem of HR measurement in annual employee opinion
survey and included external benchmarks.
• The RBS has a problem in the Utilization of human capital
measures is bad, miscommunication and distance between HR
(not involved in the decision-making process) and Top
Management, and managers lack human capital intelligence.
• The challenge before the HR managers is to increase its
understanding and usage across the globe and extend its
application and utilization in the commercial and corporate
business units.
• The issue is to find out the best way to approach managers to
use the toolkit and increase the utilization so that managers get
insights about the human capital and make more informed
decisions.
 PROBLEM DESCRIPTION
• The RBS group introduced Human Capital Strategy in its quest to make HR more business-centric
and have a business partner approach  The focus was to develop a consultancy model, make
HR evidence-based and give valuable insights to the managers regarding the workforce practices
and their impact on business.
• To fulfill these objectives, Human Capital Toolkit was introduced which was a suite of online tools
and resources that helped HR professionals across the group diagnose issues, develop
interventions, share best practices and measure the effectiveness of their people strategy.
• The benefits of this tool were conveyed to the managers and this tool was launched in the retail
banking operations in the US. The understanding of the tool and its usage has been extremely
high in UK and US but its reach is almost 50% in Asia and Europe.
• The challenge before the HR managers is to increase its understanding and usage across the
globe and extend its application and utilization in the commercial and corporate business units.
 The issue is to find out the best way to approach managers to use the toolkit and increase the
utilization so that managers get insights about the human capital and make more informed
decisions.
 PROBLEM SOLVING
The HR department needs to adopt the marketing approach to pull the managers towards the
application and increase its usage and utilization. This can be done in the following four steps:

Awareness Interest Trial Adoption

The business managers should be
informed of the availability of
this tool. This can be done by
sending mailers to the business
unit heads and departmental
heads. The more effective way
would be to leverage the support
of the chief executive to draw the
attention of the managers to this
toolkit. CEO can talk about this
toolkit in the morning weekday
meetings. The fact that CEO is
taking interest would give a
strong message to the business
managers.
To raise the interest of the
stakeholders, the HR managers
should drive home the benefits that
can be derived from this toolkit.
Some of the benefits that will grab
the attention of the managers
would be the impact of employee
engagement on the bottom line,
finding out improvement areas of
subordinates, the impact of
manager’s characteristics on the
leadership excellence profile
competencies, engagement drivers,
etc.
Once the interest of the managers is If the trial is successfully
grabbed, they should be given trials implemented, the business
of the toolkit. The HR managers managers will see for
should make sure that the themselves the utility of the tool
application is simplified and tailored and the impact can have on
to the contextual characteristics of business and will encourage
the business as this will help in them to adopt the tool. To
increasing the utility and hence the encourage greater utilization, the
adoption of the tool. The trial can be early adopters may be
targeted to sample users covering incentivized through public
the entire spectrum of managerial recognition. The success stories
positions ranging from branch can be posted on the employee
managers, area managers, and portal that will encourage the
executives. other managers to adopt and
utilize the tool.
RECCOMMENDATIONS
Adapt to Different
Strengthen Develop Unique Expand Into New Strengthen Value
Cultural Aspects of
Distribution Network Marketing Tactics Regions Network
Different Markets

Identify Different
Higher Market
Control Consumer Group
Penetration Expansion
Characteristics

Forming a Adapt to and

Stronger relation Product
Partnership with Respond to
with consumers Diversification
Consumers Characteristics
Thank You