Lloyds Banking Group

Lloyds Banking Group knew that having an inclusive and growth-led workforce was critical for their strategic plan to lead the industry in a digital world. But they needed to change their traditional approach to performance management to achieve it.

 

The challenge

A central part of Lloyds’ strategic three-year plan is to transform the Group for success in a digital world. In order to deliver this transformation, Lloyds’ CEO, António Horta-Osório, recognised that equipping their 70,000 colleagues to perform at their best would be critical.

They have a uniquely diverse workforce who are a fundamental competitive advantage, so for colleagues to be at their best, bringing their whole self to work, they needed to offer an inclusive, growth-led culture.

Lloyds had a traditional approach to performance management based on ratings and annual reviews. It was unpopular and lacked transparency – only 20% of colleagues believed it was a positive experience and just 26% believed it improved performance. They were spending two million hours a year documenting performance reviews, rather than coaching and learning.

Recognizing that this was not fit for the new world, Lloyds adopted a new approach to performance management which largely removed ratings and replaced the old annual review with more informal, quarterly check-ins.

The leaders recognized that changing the process would have a very limited impact if they didn’t also change how people thought and behaved. Above all, the challenge was to change the performance culture. After a formal review of all the alternatives in the market, Lloyds’ leaders chose Mind Gym to be their partner for this vital strategic priority.

The solution

The behavioral program was built around Mind Gym’s six conditions for high performance. These were applied in the regular ‘Check-ins’ which were a key part of the new approach. These are effective only if they are adult-to-adult conversations which help people take responsibility for their performance and build the capability and confidence bit by bit.

To enable the shift, Mind Gym developed a blended learning solution that involved all 70,000 people throughout the UK in immersive, instructor-led bootcamps (delivered face-to-face and virtually for 500–1,000 participants at a time), 80,000 eLearning sessions, as well as digital toolkits and other resources for team huddles. This ‘tapas style’ approach was successful as it was accessible and flexible which suited the competing business challenges. This saved time and money, and provided legacy training which can be revisited at any time for new and existing colleagues, ensuring that every colleague understands the new approach and can develop the behaviors to engage in it.

Throughout 2019 we delivered four staggered releases, providing time to digest smaller changes regularly and respond to the needs of colleagues and the business. Delivering 250,000+ hours of training is one of the largest transformation programs in Lloyds’ history – involving changes to systems, processes and human behavior. Each release addressed a particular part of the performance management life cycle:

  • Release 1: Six Conditions to Be Your Best, objectives and feedback
  • Release 2: Check-ins (regular conversations between manager and direct report)
  • Release 3: Checkpoint (manager support forums)
  • Release 4: Reward and Recognition

At every release, Mind Gym worked closely with Lloyds’ communications agency to pique participants’ interest, developing a compelling visual identity and enticing communications.

Results

The new approach means that managers now spend 60% less time documenting performance and correspondingly more time coaching and developing their teams. 89% of colleagues believe the changes created a positive experience compared to only 20% in 2018.

The quality of the Check-ins is has had a very positive impact. Of colleagues who’ve had 3+ Check-ins:

  • 80% know how they’re performing, compared to 35% who’ve only had one or fewer
  • 72% believe the Group’s commitment to learning is making a difference, compared to 46% who’ve only had one or fewer
  • 90% feel listened to by their manager, compared to 73% who’ve only had one or fewer

We’ve seen a positive relation to colleagues, health and wellbeing too:

  • 95% agree their manager cares about their wellbeing
  • 85% feel they get more praise and recognition

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