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Aditya Agung Winoto 2411

The Royal Bank of Scotland Group: The Human Capital Strategy

Question:

1. What are the symptoms?


2. Defined what are the core problems in this case?
3. How those companies solve their problem?

Answer:

1. What are the symptoms?


Since 200 the Group had undergone a massive transformation, nearly quadrupling
in size for a list of brands and for peers by operating profits. In 2000, prior to NatWest
acquisition, the Group was home to 32,000 employees, many of whom were located in
the U.K.

2. Defined what are the core problems in this case?


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 have a problem in
Utilization of human capital measures is bad, miscommunication and distance between
HR (not involve in decision making process) and Top Management, and managers lack of
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.

3. How those companies solve their problem?


Started producing data from various sources, leveraging the data to better
understand and support HR initiatives became Aitken’s focus. He and Roden agreed that
human capital strategy needed to be highly evidenced-based and very clearly
demonstrated the impact that its measures had on bottom-line business performance.
After the acquisition of NatWest, Aiken and Roden scale to put into place a human
capital strategy across the Group. Tony Williams had implemented their shared services
Aditya Agung Winoto 2411

strategy in RBS and was backing NatWest into it – his team had develop a global data
warehouse that pulled various elements of people data together from HR systems across
the Group including information such as where they work, what their performance rating
is, what their salary is, particularly measures, and start building a much more proactive
HR measurement approach which they called human capital. RBS also must implement
flexible staffing process to make staffing decisions consistent with long-term plans. They
should foster an environment where developing talent is a priority. Empower managers
with the skills to provide ongoing feedback and coaching. Human Capital Toolkit was
introduced which was a suite of on-line 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.

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