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Business Restructuring Toolkit

Delivering smooth, cost effective and sustainable organisational change

Managing Your People in a World of Change

BUSINESS RESTRUCTURING TOOLKIT

The business restructuring toolkit is a comprehensive on-line facility that provides practical and comprehensive guidance for managing your business restructure in the UK. The toolkit provides everything the HR practitioner and business leader need to know and do during each stage of the process.

Our unique 10 step model takes you through: · · · · · · · · Making the case for restructuring and downsizing How to conduct the selection process Identifying and managing risk When and how to consult collectively and individually Practical tools to implement the change Responsibilities of the line manager Redundancy calculator Business briefcase and presentation pack

Getting it wrong is costly In the UK, the cost to businesses of getting it wrong is calculated at £50m plus per annum. One claim can cost you on average £20,000 (based on management time, legal fees, plus the average claim settlement). Yet many companies seem to be getting it wrong... There has been a massive increase in the number of legal claims over the last year. More than half of tribunal claimants are increasingly successful in suing their previous employer. Companies were fined because they simply failed to follow the correct procedure, didn't consult properly or they miscalculated an employee's redundancy pay.

The toolkit is supported with a training package to embed knowledge, identify potential hotspots for your organisation, and identify roles and responsibilities; it also explains how to put it all into practise.

Value of the toolkit The `toolkit' has been written by leading practitioners and has been proven and tested in the UK in a large Financial Services Company (FTSE 250). It has mitigated against legal action, and reduced claims thus saving money and reduced employee grievances thus saving management time. Our practical, no-nonsense approach will tell you what you as the HR practitioner and your business leaders need to do at each stage of the process... and tell you what not to do! The toolkit is a proven and comprehensive set of tools and business guides. There are step by step guides for HR practitioners, business leaders and line managers. The toolkit provides templates for redundancy letters and business cases, as well as presentation materials to support you through the change. Whether you are new to business restructuring or have had experience, we can promise that you will find value in our toolkit.

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© Penna Plc/People Forum Limited 2010

BUSINESS RESTRUCTURING TOOLKIT

Our toolkit includes sections for HR Practitioners, Business Leaders and Line Managers and Employees as well as providing templates and tools that can be customised for your organisation.

HR Practitioners HR practitioners have dedicated advice and support at each stage of the restructuring process. The ten steps are:

Step 1:

The business strategy and aspired destination HR practitioners have a key role to play in ensuring that business change is effective. This step shows HR practitioners how they can best support their business leader and what their business leader is accountable for. A critical stage to get right, if business change is to be successful.

Step 3:

Identifying selection pools The next step is to identify which employees are impacted in the change. HR practitioners need to identify employees whose role will no longer exist in the new structure and/or where the corresponding new role is substantially different to the individuals' current role. This step provides full support to HR practitioners in identifying the selection pool and how it is constructed.

Step 2:

Supporting your Business Leader with a business case The business case is a mandatory document required for consultation purposes. This step shows how to demonstrate the current and proposed organisational structure, reporting lines, job titles and role profiles. Key questions identify the impact of change on employees and provide HR practitioners with clarity on how this can best happen. A business case template is provided.

Step 4:

Managing the selection process This comprehensive step shows what needs to happen at each stage of the selection process. Selection is made by interview or by matrix. Every step of this 11 stage process details what needs to be done, who needs to be informed and how to implement. Supporting material is provided in the business briefcase.

© Penna Plc/People Forum Limited 2010

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BUSINESS RESTRUCTURING TOOLKIT

Step 5:

Collective Consultation and Communication A key part to effective business restructuring is consultation. Organisations are required to consult in good faith with a view to reaching agreement. This section explains who must be consulted, what happens during collective consultation, how to set up an Employee Consultative Body (ECB) in non union recognised areas, as well as what is required at this stage from the HR Practitioner. The business briefcase provides more information on communicating timescales and proposed templates for communication.

Step 7:

Supporting employees through redeployment Redeployment is usually offered at the appropriate point during the individual consultation process. Line managers are responsible for managing the redeployment process, and this step explains how the process works.

Step 9:

Managing outplacement The outplacement process is explained. The outplacement process provides support for eligible employees to help them make their next external career move.

Step 10: Step 8:

Serving notice This section explains the process for line managers and HR practitioners in serving notice to employees. Template letters are available to support the process and can be found in the templates section. Managing appeals All employees have the right to appeal after the redundancy notice has been issued. This step describes the responsibilities of the HR practitioner, and details the process. Supporting material can be found in the business briefcase with a Grievance Policy template available in the templates section.

Step 6:

Individual consultation The stage explains how line managers need to conduct the individual consultation with potentially redundant employees. It details what needs to happen at each meeting, what is voluntary redundancy, and how the VR process works. To fully support this step, fully detailed guides are available for line managers at each step of consultation; from risk of redundancy to the selection outcome to notice of compulsory redundancy. These guides detail the aims of each meeting. Each guide contains frequently asked questions, guidance on behaviour and language, and guidance at each stage of the process. The guides focus on the practicalities of each meeting by identifying the preparation required as well as what needs to be said.

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© Penna Plc/People Forum Limited 2010

BUSINESS RESTRUCTURING TOOLKIT

Further support for HR practitioners HR practitioners have a key role to play in business restructuring. One of their key roles is to advise in complex or difficult situations. As a result we have compiled a `Hotspots Guide' that explains how to deal with difficult situations. How to deal with employees on maternity leave, employees with a disability, on sick leave, secondment, on a fixed term contracts, on a graduate programme or who raise a grievance. Our hotspots guide provides HR practitioners with clear guidance on each scenario. In addition we have designed a tried and tested template for the Business Case that forms part of the collective consultation, plus the statutory redundancy calculator to ensure you keep within the law. Our business briefcase contains presentation materials for briefing business leaders and line managers, managing communication, and guides for selection pooling and bumping as well as briefing papers on how to set up an Employee Consultation Board (ECB).

Business Leaders and Line Managers Business leaders and line managers have their own dedicated section of the website. There is a comprehensive business leader guide which compliments the HR practitioners guide. It explains what business leaders and line managers are accountable for and what they need to do at each stage of the 10 steps of the business restructuring process. To support the line manager with employees who are at risk of redundancy, there are fully detailed guides available for line managers at each step of consultation; from risk of redundancy to the selection outcome to notice of compulsory redundancy. These guides explain the aim for each meeting: each guide contains frequently asked questions, guidance on behaviour and language, expectations and the practicalities of each meeting by identifying the preparation required as well as what needs to be said. In addition there is a dedicated guide on Frequently Asked Questions to support line managers, as well as a dedicated guide for employees. Templates In the template section of the website, the business restructuring process is supported by containing templates for employee letters at each stage of the process. These letters detail what needs to be said, what information needs to be included ­ all supporting the line manager meetings. In addition there are templates for all the key employment policies: Redundancy, Grievance, Redeployment and Outplacement. These are essential prior to commencing any business restructuring exercise.

Additional Tools Business Restructuring requires two components that are critical to its success: Risk management and project management. We have developed a set of robust tools, frameworks and guidance to help assess and effectively govern risks. These help the HR practitioner and business leader to make informed decisions about potential areas of risk enabling good governance and controls and supporting any audit process. Our project management tools include templates for documenting the project scope, terms of reference, stakeholder mapping and management plan, progress reviews, and project workshop agendas; identify the roles and responsibilities for HR practitioners, business leaders and line managers so everyone has clarity of purpose; ensuring that risks and issues are managed proactively in a timely and efficient way. Our tools add professional credibility and influence of HR as key change agents. All of our template material is available for customisation by your organisation. This will save you time and money by providing templates for key documents, such as the business case ­ a mandatory document required for collective consultation (20 or more redundancies); letters to employees at risk of redundancy; key policies: redundancy, grievance, redeployment and outplacement.

© Penna Plc/People Forum Limited 2010

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BUSINESS RESTRUCTURING TOOLKIT

Services Training workshop(s) are included in the price. This will rapidly advance HR capability and knowledge as well as embed knowledge and expertise. Our workshop(s) inform you on how to get maximum effectiveness from the product and enable your team to work through on how to implement the change that is right for your organisation. We have the best experts to facilitate workshops and maximise learning. We can tailor our workshops, depending on your requirements. Our workshops include: · · · · · · Introduction To Business Restructuring Workshop Advanced Practitioner Workshop Project Management Workshop Communications And Consultation Workshop Risk Management And Governance Workshop Line Manager Workshop In Handling Business Restructuring

The toolkit is a `one-stop-shop' saving you time in searching for the right information. All the products, templates, tools and documentation can be tailored for your organisation. This customisation is scoped to suit your organisational needs and is priced accordingly. We offer a 24/7/365 service with online secure access through silent authentication for one or all employees. We provide regular updates such as our quarterly newsletter detailing changes in case law for business restructures and our continuous review of best practice in business restructuring. All enabled by an annual licence fee that guarantees that the product remains legally updated and verified. Our business restructuring toolkit supports our career transition services. We offer practical guidance and advice to people at all levels ensuring that employees affected by the transition receive superior support to advance their career aspirations.

Disclaimer: The toolkit is intended as a generic guide through business restructuring. For individual or complex situations, you are strongly advised to take legal advice.

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© Penna Plc/People Forum Limited 2010

BUSINESS RESTRUCTURING TOOLKIT

Document Library

HR Practitioners Toolkit HR Practitioner Guide Step 1: The Business Strategy And Aspired Destination Step 2: Supporting Your Business Leader With The Business Case Step 3: Identifying Selection Pools Step 4: Managing The Selection Process Step 5: Collective Consultation And Communication Step 6: Individual Consultation Step 7: Supporting Employees Through Redeployment Step 8: Serving Notice Step 9: Managing Outplacement Step 10: Managing Appeals HR Practitioner Booklets: Hotspot Areas Roles and Responsibilities FAQs Business Case Template Redundancy Calculator Business Briefcase

Business Leader & Line Manager Guides Business Leader Guide Line Manager Guides Meeting 1a: Pooled Employees At Risk Of Redundancy Meeting 1b: Displaced Employees At Risk Of Redundancy Meeting 2: Outcome Of Employee Choice Meeting 3: Outcome Of Selection Meeting 4: Notice Of Compulsory Redundancy Manager Toolkit: FAQs Employee Guide: FAQs

Templates Redundancy Policy Template Grievance Policy Template Redeployment And Outplacement Policy Template Job Description Template Employee Letters Meeting 1a And 1b: Letter Advising `At Risk Of Redundancy' With Application Form For Vr And Notifying Redundancy Pay Meeting 2: Employee Letter Advising Outcome Of Employee Choice Meeting 3: Employee Letter Invitation To Selection Interview With Career History Application Form Employee Letter Advising Successful Redeployment Employee Letter Advising To Stay In Current Role Meeting 4: Employee Letter: Notice Of Compulsory Redundancy And Redundancy Pay

Tools Newsletters Project Management Tools Risk Governance Tools Training Workshops: Advanced Practitioner Workshop Introduction To Business Restructuring Workshop Project Management Workshop Communications And Consultation Workshop Risk Management And Governance Workshop Line Manager Workshop In Handling Business Restructuring Penna Redeployment And Outplacement Service

© Penna Plc/People Forum Limited 2010

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Grahame Russell Managing Director Consulting Solutions Penna plc Regent Arcade House 19-25 Argyll Street London W1F 7TS 020 7663 6633 [email protected] www.penna.com

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