Recruiting for a Competitive Environment

Wed, Sep 21st, 2005

Serco started as a spin off from the Cinematography division of RCA in 1963. It developed Defence businesses in the 1970s, local government support services in the 1980s, and became international in the 1990s. There was a management buyout in 1987, which was closely followed by a flotation in 1988. Since then turnover has jumped nearly 100-fold and is now in excess of £2 bn per year. It is worth remembering that on flotation in 1988, the company was classified as "miscellaneous unclassified", as there was no services classification. The company is now one of the market leaders in the provision of services worldwide, employing 30,000 people worldwide in 37 countries in 8 sectors, with 20,000 in United Kingdom. It has been voted the best company for Corporate Social Responsibility by the publication "Management Today".

The diversity of businesses run by Serco appears awesome, and range from Scientific laboratories to support services for Atomic Weapons and Australian Railways. However, they are all linked by the theme "Management is our Product". It does not matter which business it is, customers require the following basic things when outsourcing:

value for money safe and uneventful transfer of operations without aggravation
successful delivery of the service standards, ethics and reliability

and they like to see a commitment to their project through an ongoing programme of training and development.

How has Serco managed to deliver and satisfy its customers? First and foremost it ensures that it has a clear vision for itself and the projects it manages. It develops a risk profile for each project and steps are taken to manage risk at every stage. It also treats the contract manager as "King": he develops his own business plan which has built into it early warning systems so that problems can be anticipated and rectified. This can result in different sectors having different cultures, but the key to ensuring successful delivery in a diverse environment is to have shared values.

The company aims to:

1. Foster entrepreneurial spirit within the framework of the organisation, rather than the growth of entrepreneurs. Everyone is expected to deliver business plans and risk management processes. 2. Encourage safe, consistent and honest principles, fostering trust and respect. People are encouraged to challenge when they feel that a project is not working and when changes are seen as required 3. Deliver on its promises. It places high priority on delivering what it is contracted to do and rectify problems when required. In 11 years only 3 contracts have gone seriously wrong. It operates as far as possible an "open book" policy, and resists the temptation to "slip something in" 4. Enable people to transfer as necessary and when required and ensure that they are motivated. Everyone is expected to give of their best. People have to made clearly aware that they are always expected to achieve more, which means engaging them in all aspects of their work. Keeping people informed of decisions is crucial, even if they do not have an immediate impact on them. For example, cleaners and receptionists are debriefed with breaking news and a regular internal newsletter is produced. Running a business in an atmosphere where expectations are high, it is therefore absolutely vital that the right people are in the right jobs. If people are transferred they should not pass on "baggage", which the company takes as a serious matter and will result in withdrawal of bonuses. 5. Encourage innovation. Diversity fosters innovation but it has to be managed. Gaps must be covered, there must be a balance of skills and experience on each team. The team must have a "natural feel" to it, it must be personal, and it should reflect a normal environment, e.g. a group should reflect a mix of people one might encounter or see walking down a street. If the comfort of a sound foundation is present, this combined with a high achievement environment will encourage innovation.

Additionally, it is vital that contracts managers are in constant contact and that the CEO is in contact with each unit at least once per month. The working environment must be free from organisational politics and inappropriate behaviour must be identified and prevented from recurring.

In short, "always strive to be best but never believe that you are". Fangio

RT 21.09.05