We previously undertook a significant project with London Underground (LU) to address the issue of staff availability, a critical factor affecting their overall performance and customer satisfaction. Our goal was to help LU enhance their operational efficiency by reducing absenteeism among line operations staff. The impact of this project has been profound, and we are pleased to share our reflections on the journey, the challenges faced, and the outcomes achieved.
Understanding the Challenge
London Underground operates one of the busiest metro systems globally, with over 1.34 billion passengers annually. The performance and reliability of the Tube are vital for the city’s daily functioning. However, LU was experiencing a decline in reliability performance since 2016, primarily due to increasing staff absenteeism.
Absenteeism led to service cancellations, lost customer hours, and significant operational costs, amounting to approximately £48 million per annum.
Our initial assessment identified three main causes of poor staff availability:
- The existing Attendance at Work Policy was not robust enough to address sustained absenteeism effectively.
- The application of the policy by key stakeholders lacked consistency and timeliness.
- There was an inadequate capability among managers to handle absenteeism issues properly.
Implementing Solutions
To tackle these challenges, we began with a comprehensive review of the current absence management processes. This involved deep-diving into individual absence cases, evaluating adherence to procedures, and understanding the mindsets and behaviours of those involved in managing absences.
We piloted a Visual Performance Management (VPM) process in the worst-performing areas, identifying key metrics to monitor and manage performance. Area leaders were coached on conducting regular performance dialogues and using structured problem-solving techniques. This approach led to a significant reduction in absenteeism, from 16% to 9%, within an initial 12-week period.
A Project Management Office (PMO) was established for Line Operations to oversee the improvement programme. We developed and deployed a standardised Tiered Visual Performance Management system across all line operations, ensuring transparency and facilitating regular performance reviews.
Reflecting on the Impact
The impact of our interventions was remarkable. For train operators in Line Operations, the number of employees on restricted duties was reduced from 85 (2.4%) to 35 (1%), a 58% improvement. This reduction resulted in a cost avoidance of £2.4 million in salaries per annum within the first nine months.
Additionally, the overall number of employees off sick across the network decreased by 14.2%, leading to additional cost savings. The reduction in lost customer hours provided a cost avoidance of £5 million, with a projected annual customer benefit of £13 million. In total, the project achieved a cost avoidance of £15.4 million, equating to a 64:1 Return on Investment (ROI).
Lessons Learned and Future Outlook
Reflecting on this project, several key lessons emerged:
- Importance of a Robust Policy: Ensuring that attendance policies are comprehensive and enforceable is critical. A clear policy provides a strong foundation for managing absenteeism effectively.
- Consistency and Timeliness: Applying policies consistently and addressing issues promptly can significantly improve staff availability. Training managers to handle these responsibilities is essential.
- Transparency and Engagement: Implementing visual management tools and fostering regular communication about performance helps create accountability and encourages continuous improvement.
- Holistic Approach: Addressing both the procedural and behavioural aspects of absenteeism management leads to more sustainable improvements.
This project demonstrated that targeted interventions, combined with a commitment to ongoing improvement, can deliver substantial benefits. By enhancing staff availability, LU not only improved their operational efficiency but also boosted customer satisfaction and reduced costs significantly.
Final Thoughts
At Project7 Consultancy, we are committed to helping organisations achieve their strategic goals through performance improvement. Our work with London Underground is an example of the impact that well-executed projects can have on an organisation’s success.
For more information on how Project7 Consultancy can help your organisation achieve similar results, please contact us.
