CATALYST Business Smart Relocation. A smart move. Strathclyde Pension Fund. Zero-cost relocation transforms business culture and performance within 9 months and enables 10% reduction in annual operating costs. The Background. Strathclyde Pension Fund is the 15th largest pension fund in the UK; with net assets of £10.3bn and over 193,000 scheme members. SPF administers the local government pension scheme on behalf of 12 local authorities and 200 other public sector bodies in the west of Scotland. The organisation has an office of around 110 people and an administration budget of £5m per annum. The business is structured into 2 divisions; Operations and Development, which are split into 7 teams: front office; administration; communications; technical; pension payroll; investment & finance and records & liabilities. The Challenges. The Clyde Valley Review; The Independent Budget Review and the recession have challenged The public sector to fundamentally change their business models to improve economy and efficiency. SPF was established in 1974 by Strathclyde Regional Council and transferred to Glasgow City Council in 1996. Public sector operating practices were embedded into every level of the organisation over the past 36 years. SPF launched a new vision and set of values and objectives in January 2008, but there was not a material improvement in operational performance during the subsequent 24 month period. SPF manages pension contributions and payments in excess of £1bn pa for the 193,000 members; business continuity and risk management were therefore critical requirements.
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CATALYST Business Smart Relocation.
A smart move.
Strathclyde Pension Fund.
Zero-cost relocation transforms business
culture and performance within 9 months
and enables 10% reduction in annual
operating costs.
The Background.
Strathclyde Pension Fund is the 15th largest pension fund in the UK; with net assets of £10.3bn
and over 193,000 scheme members. SPF administers the local government pension scheme
on behalf of 12 local authorities and 200 other public sector bodies in the west of Scotland.
The organisation has an office of around 110 people and an administration budget of £5m per
annum. The business is structured into 2 divisions; Operations and Development, which are
split into 7 teams: front office; administration; communications; technical; pension payroll;
investment & finance and records & liabilities.
The Challenges.
The Clyde Valley Review; The Independent Budget Review and the recession have challenged
The public sector to fundamentally change their business models to improve economy and
efficiency.
SPF was established in 1974 by Strathclyde Regional Council and transferred to Glasgow City
Council in 1996. Public sector operating practices were embedded into every level of the
organisation over the past 36 years.
SPF launched a new vision and set of values and objectives in January 2008, but there was not
a material improvement in operational performance during the subsequent 24 month period.
SPF manages pension contributions and payments in excess of £1bn pa for the 193,000
members; business continuity and risk management were therefore critical requirements.
CATALYST Business Smart Relocation.
SPF shared office accommodation with Glasgow City Council for the past 15 years, which had
a dramatic impact on their brand, market profile and identity.
Charlotte House at 78 Queen Street is one of the poorest quality office buildings in Glasgow. The
13 storey, 1960’s tower suffered from two decades of underinvestment, although the occupancy
costs were above market norms.
SPF occupied levels 2 & 4 at Charlotte House, which provided 1,500-sq.m of poor quality, non-air
conditioned office space. The 2 divisions and 7 teams were split over two “T” shaped floors,
which inhibited workflow, collaboration and communications.
SPF shared an ICT network with Glasgow City Council, which had an impact on their operational
flexibility and performance. The distributed servers; ageing infrastructure and outdated desktops
had exceeded their economic life.
SPF has a statutory obligation to deliver best value for money for its stakeholders and is
accountable to the SPF Committee and the SPF Representative Forum, which represents the
employers, members, trade unions and pensioners.
The Approach.
We reviewed SPF’s business strategy, budget, service delivery model, organisational structure,
operating practices, business processes and technology, property and workplace assets to create
a compelling business case that was approved by SPF’s Executive Committee.
We developed the business case into a fully integrated business relocation solution and provided
a programme director and management team to lead and control every aspect of the relocation
programme and ensure business continuity at every stage.
The key components of the programme are outlined below:
Value Delivery.
We developed a zero-cost relocation solution that was the catalyst to transform
the business and deliver substantial cost and efficiency savings.
Change Management.
We controlled the stakeholder engagement, corporate communications and
cultural issues to successfully manage the complex matrix of interdependencies.
Human Resources.
We helped to realign the workforce with the corporate business plan and
introduced new ways of working to improve productivity; enhance training &
development and enable headcount reduction.
Customer Service.
We analysed the service delivery model and introduced new processes and
customer interface systems to improve the quality of service and accessibility,
optimise interactions, increase user satisfaction and enhance visitor experience.
Business Processes.
We analysed the operating model and redesigned the key business processes
across the 2 divisions and 7 teams to enable smarter working and improve
efficiency and effectiveness.
Document Management.
We introduced an electronic document and records management system to
rationalise the paperwork; improve the accuracy of records and accelerate the
processing time associated with the administration of 193,000 members.
Information Technology.
We introduced virtual servers; replaced the ICT network, infrastructure and
desktops; and deployed Class CPX pension administration and Axis-e applications
to improve performance, workflow management, measurement and resilience.
Charlotte House.
Capella.
CATALYST Business Smart Relocation.
Location Analysis.
We carried out an options appraisal; consulted with all stakeholders and
selected the International Financial Services District as the most appropriate
location to provide a separate identity and optimise the business benefits.
Property Transaction.
We reviewed the office market; selected a shortlist of suitable properties;
negotiated the best commercial terms on 3 options; selected 1,000-sq.m at
Level 6 Capella on York Street; managed the entire legal process and
concluded the transaction with the landlord.
Workplace Design.
We designed a dynamic, collaborative, productive and high-quality workspace
that integrated all the changes in the workforce, service delivery, processes and
technology and transformed the corporate brand and working environment.
Interior Fit Out.
We managed all the design, consent, procurement and H&S processes and
project managed all the work-packages: voice & data; technology; telephony;
construction; finishes; furniture; storage; fittings; audio visual; video
conferencing and training equipment.
Move Management.
We managed the entire move process for all staff, ICT, files and equipment from
Charlotte House to Capella over 1 weekend – without any downtime.
Sustainability.
We reviewed the sustainability policy and selected a Category-A BREEAM very-
good property that enabled a 50% reduction in the CRC targets and reduced
annual energy costs.
Leasehold Liabilities.
We managed the disposal of the office space at Charlotte House and managed the
disposal of the surplus ICT and furniture assets.
Benefits Realisation.
We managed the business case across the entire relocation lifecycle to guarantee
the successful delivery of the programme and ensure that the business outcomes
exceeded expectations.
The Results.
The business relocation programme was initiated in November 2009 and was complete on
plan, on time and at zero-cost to SPF in July 2010.
The financial benefits detailed in the business case have been realised, which deliver cost
and efficiency savings in excess of 10% of the annual administration budget.
The corporate culture has been transformed, with motivated and empowered staff performing
at a much higher level and delivering a more efficient and effective service for members.
The business relocation programme has unlocked the organisation’s resistance to change
and has delivered a double benefit; cost reduction and performance improvement, which
will deliver greater long-term value for stakeholders.
The end-to-end programme management and integrated solution delivery streamlined the
entire relocation process and maximised the return on investment; whilst utilising less than
5% of SPF’s management resource during the programme lifecycle.