Lloyds TSB realigns HR strategyOn 30 Sep 2003 in Personnel Today Comments are closed. Previous Article Next Article Lloyds TSB has taken a significant and innovative step in improving HR forits 80,000 employees, by setting up a new team focused entirely on maximisingthe value they receive from HR suppliers. The two-person HR supplier development function team is responsible forensuring that HR supplier activity is aligned to the bank’s internal HRstrategy, and that relationships between them and the business are managedeffectively. The function is run by Iain Brumpton, senior manager and HR specialist, witha background in relationship and supply management, and Paul Bennett, a managerand qualified lawyer, who provides contractual support. They work in Bristol and report to Tony Garnett, Lloyds TSB’s head of HRstrategic projects. The supplier development department co-ordinates a virtual team ofoperational relationship managers and support functions (such as purchasing andlegal), which meets on a quarterly basis to share their knowledge. For the first time, Lloyds TSB has also shared its strategy and thinkingwith key suppliers by organising an HR supplier strategy forum. While the Supplier Development function is not targeted at deliveringsavings, it has managed to rationalise its supplier portfolio, and whereappropriate, ensure new supplier activity is co-ordinated across key alignedsuppliers. A toolkit has also been produced for operational relationship managersacross seven internal HR teams to help them track specific issues, deal withrisk management and develop contracts. Lloyds TSB is also creating an online database of existing and potentialsupplier information, and is further developing balance scorecards to supportthe management of internal relationship managers and external suppliers. Tony Garnett described the initiative as a major breakthrough for thebusiness. “An effective HR strategy is one which is aligned to businessstrategy. This requires alignment not only internally but also externally withour suppliers,” he said. “In achieving this alignment, we must ensure value and quality areeffectively balanced with the bottom line.” Suppliers appreciate the effort too. Paul Glynn, account director atKnowledgePool, said: “It’s unique to us and represents the only trueclient partnership we have. This means we can approach the team with bothpositive and negative issues without fear of losing business on the contractswe have.” Related posts:No related photos.