Case study

Lloyds TSB

Tailoring the HR function to the business's needs saved several million pounds

The merger between Lloyds and TSB in 1996 created one of the world’s largest banks with around 80,000 employees. How could the HR function best support the organization to achieve its business objectives through any future mergers or changes?

PA developed a new HR organization that was structured around pools of focused expertise: policy, training and development, and consulting. The establishment of a telephone call center took away all low-level administrative activities. This was reinforced by working to a new commercial model and scorecard of business performance measures. Lloyds TSB made savings of over £5 million in the first full year of operation and increased this to around £8 million in the second.

PA's work won the Best Human Resources Development Assignment Award in the UK Consulting profession's annual awards for 1999.