The transformation of the Unipart Group from part of a publicly-owned automotive company to a global logistics enterprise with a range of blue chip clients is very much a British success story. At the heart of that metamorphosis is long-time chief executive John Neill who, for over two decades, has implemented continual change while developing the company’s capabilities and knowledge. That has resulted in Unipart’s about-turn from being the after-market division of British Leyland to one of the largest third party logistics providers in the UK.
Entrepreneurial thinking from the leadership team has completely changed the company’s capabilities. There was a realisation that although superficially Unipart was in the automotive parts industry, its true core business was that of logistics the ability to manage the entire supply chain and work in long-term partnerships with clients and suppliers. Partnerships built on trust.
In the early 1990s, there was also a realisation that command and control-style management was obsolete. If the company was to succeed, staff would need the opportunity to learn new skills and techniques, and to share that learning across organisational boundaries. In 1993, the Group launched The Unipart U, one of the first corporate universities in Europe that’s located on the ground floor of the company’s Cowley hq in Oxford. There are around 200 different courses running throughout the U facilities. Aimed at managers and staff, they cover IT skills, supplier management and lean production. Attendees ‘train for work’.
Learning from The Unipart U not only defined the Group’s business in a new way, but also kick-started an organisational capability that could successfully compete with other world class operations. The key to that was the development of a culture, philosophy and management tools adapting Best Practice from other companies such as Toyota into an all-embracing concept known as The Unipart Way.
Explaining The Unipart Way
The Unipart Way is a proprietary system developed over almost 20 years. Its 18 key principles (see box panel ‘The 18 Key Principles of The Unipart Way’ on page 26) have become the differentiator within the marketplace, and the basis for Unipart’s ongoing development.
As you would expect, the system is very much at the heart of Security: The Unipart Way, as provided by Unipart Security Solutions. There is no ‘shrink wrap’ or ‘one-size-fits-all’ security solution here. The approach is based on protecting what’s important to individual clients, and achieving the right levels of security resilience in accordance with the risk.
In essence, the philosophy is all about applying the appropriate controls to manage potential security threats at individual sites without turning them into fortresses that hinder other aspects of Unipart’s clients’ daily business activities.
In charge of implementing continuous improvement for Unipart Security Solutions are Jim Gannon (head of security) and special projects manager Eammon Trollope. Eammon’s background encompasses a short spell in the Armed Forces. He then worked at The Hilton and The Dorchester Hotels on Park Lane (the latter in a security management capacity) before embarking on an eight-month stint as training manager at the Morgan Stanley Bank. Eammon joined Unipart 19 months ago. Not surprisingly, he’s keen to explain the revolutionary approach to security his division is now espousing.
“As Unipart Security Solutions, we’ve realised that we have services we can sell externally. We firmly believe we can provide solutions to customers other than our existing logistics clients,” states Trollope with gusto.
The management of security guarding services is regarded as an important and integral part of what Unipart Security Solutions has to offer. “Many people throughout the industry have no doubt spent countless hours debating the advantages and disadvantages of bringing security guarding services in-house as opposed to using an external supplier,” states Trollope. “Our view is that, by adopting Security: The Unipart Way, that decision is for all intents and purposes irrelevant. We are confident that as a result of our management procedures and training programmes, together with a passion for measuring and constantly looking at ways to improve performance, we can ensure that a high quality of service is delivered which exceeds client expectations at all times.”
Recognition from the industry
Eammon is fully in favour of the Security Industry Authority (SIA) and the role it plays. “I agree with licensing, the Act and what the SIA is doing to enforce legislation,” he comments. “Security officers need to be recognised by the industry in which they work. It’s important for our officers to be part of that industry, not just the company they work for.”
For Eammon, companies who contract out their guarding services can often lay too much onus on the contractor and its management team. “There’s a danger of using them as a ‘whipping boy’ in relation to the Service Level Agreement. In our management of security guarding services, we look to take the training suggested by the SIA beyond, if you like, the point where the officer is taught the ‘basics’.
“The levels of training defined in the Regulator’s guidelines provide an excellent foundation, but by overlaying this with our own philosophy on training, we believe we can equip officers with skills such that the client will perceive they have their own dedicated in-house operation.” An excellent philosophy.
End-to-end supply
The Unipart Group now has some 10,000 employees. Much of its work is in warehousing, distribution and end-to-end supply solutions.
“When you understand the diverse needs and requirements of the industry we’re in it’s very easy to transfer that to other sectors,” explains Eammon. “Our investigations, for example, are extremely thorough and very structured. We can take them to the Crown Prosecution Service and follow them through to prosecution if that’s what the client wants. It’s hands-on consultancy with responsibility.”
Risk assessments, due diligence, audits and surveys are all offered by Unipart Security Solutions. In addition, a Remote Site Monitoring Centre is up-and-running at Cowley. Its capacity has been doubled within nine months. Again, The Unipart Way drives the Control Room and its operators’ functions.
Are there third party clients on board already, then? “Oxford City Council currently uses us for remote monitoring, and so does Dolcis,” replies Trollope.
The Control Room is just coming up to its first ISO 9001 audit, to be carried out by the National Security Inspectorate. The ultimate objective is for the security operation as a whole to be run to the relevant sections of British Standards BS 7499, BS 7984, BS 7858 and BS 7958.
Interestingly, Eammon’s operation has forged a relationship with Dedicated Micros (DM) on the remote monitoring side.
“Dedicated Micros was prepared to listen and understand,” suggests Eammon. “If any issues arise we can solve them directly in conjunction with DM. System resilience is important, so if we can help them develop new solutions that help us then so much the better.”
Currently, DM’s NetVu Observer DS2 technology is deployed for the Unipart Security Solutions Control Room, along with the popular ADPRO Gold.
Long-term partnership building
What type of client is Unipart Security Solutions looking for, exactly? “We don’t want to do business with anyone who isn’t interested in forging a true partnership,” retorts Eammon. “We’re proud of that stance. That’s exactly what The Unipart Group advocates. We like to deal with those companies who’ll genuinely buy-in to our philosophy.”
Halfords, Airbus, Vodafone and Jaguar are all existing clients. “We’ve just been awarded a new ten-year contract by Vodafone,” Eammon chips in. “This length of contract is extremely rare in this day and age, but that’s how we want to grow our business. We don’t believe in the scatter-gun approach.”
A good example of this partnership approach occurred only recently, when one of Unipart Security Solutions’ clients on the remote monitoring side was suffering from too many false alarm activations. Eammon considered it his team’s duty to look at the problem. Metrics were managed and recommendations duly made to the client for a swift resolution. “We could have simply increased their monthly activation rate and generated more revenue, but we’re looking to keep that client for ten years and more,” he explains. The reasoning is easy to understand.
From Eammon’s perspective, security in any organisation must be driven from the top. “In terms of the Unipart Group Board,” opines Trollope, “they’ll want to know how our products and services are performing. John Neill will not only ask if all of our services have met their financial targets. He’ll also question what proportion of our staff are practising The Unipart Way. He’ll most certainly want to know if clients have seen evidence and benefits of The Unipart Way in the real world. Are we building sustainable partnerships? If the answer to any of these questions is ‘No’ then Mr Neill will not be too happy.”
There is clearly no room for wasted effort. The service has to be lean, and totally focused on what clients want and what they have paid for. To this end, account manager and security advisor meetings are a regular fixture on the Unipart agenda. “There’s a danger that the industry will go further and further away from the service aspect, given that in many cases the buck now stops with someone like a procurement specialist who is not a security professional,” adds Trollope. “That type of client often doesn’t know what’s required in terms of the security provision.”
Having finished the formal part of our interview, we made our way around The Learning Curve IT Help Room and The Leading Edge (Unipart’s own library) before sitting down to an excellent luncheon in the staff restaurant (known as The Art Room).
Just as we were finishing, John Neill himself approached the table having concluded an informal Board meeting only a few yards away. Explaining the philosophy he helped to build, Mr Neill offered a telling comment that wasn’t lost on either of us.
“When you are born, you must breathe or you die. Once you learn to breathe, you must learn or you will die.” How very true.
