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Corporate Responsibility Review 2008 - Serco

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<strong>Corporate</strong> <strong>Responsibility</strong> <strong>Review</strong> <strong>2008</strong><br />

Towards<br />

a new future


Contents<br />

Welcome<br />

“I wanted to change for<br />

the sake of my three<br />

daughters. But I could<br />

not have done it without<br />

the continuous support<br />

from the guys at <strong>Serco</strong>.<br />

They believed in me .”<br />

Cass Vernon, former prisoner,<br />

now a mentor to other prisoners.<br />

See page 30 for his story<br />

Introducing our contributors<br />

Health & Safety<br />

James Dark is the consultant editor of public<br />

transport management magazine Transit,<br />

which publishes news, analysis and comment<br />

on the bus, rail and light rail sectors<br />

People<br />

Craig Hoyle is the defence editor of<br />

Flight International, a leading aerospace<br />

weekly magazine that covers defence, air<br />

transport, business aviation and space flight<br />

Community<br />

Sonia Purnell was previously the Daily Mail’s<br />

Whitehall Editor, and Brussels and City<br />

correspondent for the Daily Telegraph<br />

Environment<br />

David Allaby is the editor of Public Servant,<br />

a monthly magazine that features news<br />

and information across the whole spectrum<br />

of the public sector<br />

“At a difficult time, when<br />

the business community<br />

and the public alike are<br />

questioning the ethics<br />

of those with whom<br />

they deal, <strong>Serco</strong>’s <strong>2008</strong><br />

<strong>Corporate</strong> <strong>Responsibility</strong><br />

<strong>Review</strong> reveals a<br />

company that combines<br />

strongly held values with<br />

exceptional people.”<br />

08<br />

A safer pair of hands<br />

James Dark finds that <strong>Serco</strong> is<br />

repeatedly exceeding the health<br />

and safety requirements laid<br />

down by its transport contracts<br />

“As recession takes a firm grip on<br />

countries around the world these<br />

are challenging times for us all.<br />

For <strong>Serco</strong>, with our many diverse<br />

operations around the world, times<br />

are always challenging because of<br />

the nature of our business. We pride<br />

ourselves, however, on being able<br />

to do difficult tasks and do them<br />

well, and this year will be no different.<br />

Our transport contracts require<br />

us to deliver swift, reliable and<br />

cost-effective services while<br />

constantly improving on safety<br />

16<br />

Life support<br />

Craig Hoyle meets the <strong>Serco</strong><br />

employees providing valuable<br />

back up for military personnel<br />

and their families<br />

levels. The prisons we operate need<br />

to hold offenders securely yet also<br />

open their eyes to a brighter future<br />

in a bid to reduce reoffending. And<br />

in our work with the military we need<br />

to provide support beyond the call<br />

of duty, where we truly engage with<br />

people so that they are enabled to<br />

better carry out a difficult job.<br />

In this report, four journalists<br />

look at whether <strong>Serco</strong> has risen<br />

to these challenges and whether<br />

its approach to four key issues<br />

– safety, people, the community<br />

24<br />

The transformers<br />

Sonia Purnell discovers how<br />

<strong>Serco</strong> prisons are adopting<br />

an innovative approach to<br />

looking after those in their care<br />

and the environment – has had<br />

a positive impact on society.<br />

We truly believe that our<br />

employees have delivered a<br />

responsible and sustainable<br />

service in <strong>2008</strong>. At <strong>Serco</strong>, however,<br />

we are always looking forward<br />

and seeking to improve the way<br />

we operate. Our goal for 2009<br />

is to do more, and to do it better,<br />

whatever the financial climate.”<br />

Christopher Hyman<br />

Chief Executive, <strong>Serco</strong> Group plc<br />

32<br />

Lean and green<br />

David Allaby examines the<br />

measures being taken by <strong>Serco</strong><br />

to reduce both its own and its<br />

clients’ impact on the planet<br />

06 The heart of <strong>Serco</strong><br />

Chief Executive Christopher<br />

Hyman tells Laura Mazur that<br />

<strong>Serco</strong>’s values are central to<br />

everything it does<br />

40 Objectives and results<br />

The challenges we set ourselves<br />

in <strong>2008</strong>, with a statistical<br />

breakdown of our achievements,<br />

plus our 2009 objectives<br />

46 Tell us what you think<br />

Your feedback is important to<br />

us; it helps us improve our<br />

perfomance and informs our<br />

plans for the future<br />

2 | <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Review</strong> | <strong>2008</strong><br />

www.serco.com | 3


Introduction<br />

Continuing the story<br />

<strong>Serco</strong> strives to deliver social outcomes in a way that has a positive<br />

impact on society. Read on and decide whether we have succeeded<br />

Can a private sector business listed on the London<br />

Stock Exchange have a public service ethos?<br />

In case after case, our people embody the values<br />

that we have worked so hard to embed throughout<br />

the organisation. These values are built on our four<br />

SERCO EMPLOYEES IN WOKING keeping the streets<br />

clean, which raises residents’ satisfaction levels<br />

governing principles: we foster an entrepreneurial<br />

culture; we enable our people to excel; we deliver our<br />

promises; and we build trust and respect. This has<br />

propelled us into the FTSE 100, becoming one of<br />

the world’s leading service companies, working in<br />

partnership with governments around the world to<br />

improve services across many areas of public life.<br />

We provide critical information to manage traffic,<br />

run world-class scientific establishments and improve<br />

patient care with our health services. We provide swift,<br />

safe travel with our trains and transport systems, and<br />

help young people learn in the schools and training<br />

centres we manage. We rehabilitate offenders in<br />

our prisons and protect borders through technology.<br />

We call this bringing service to life.<br />

This diversity is one of our great strengths. It exposes<br />

us to more opportunities for growth, protects us against<br />

downturns in individual markets and enables us to share<br />

best practice between sectors.<br />

This is reflected in our performance. Our results show<br />

that in <strong>2008</strong> our revenues of £1.5 billion were up 10.5%<br />

on the previous year, with profits at almost £63 million,<br />

up 20% over 2007.<br />

Beyond profits<br />

While financial performance is important the search<br />

for profit is not what defines us. We want to not only<br />

achieve the social outcomes we are often contracted<br />

to deliver, but to do it in a way that has a positive<br />

impact on society.<br />

In this year’s report, we asked four expert writers to<br />

look at different parts of our business to uncover further<br />

examples of how we deliver our commitment to being<br />

a responsible organisation.<br />

James Dark, Consultant Editor of public transport<br />

management magazine Transit, looks at <strong>Serco</strong>’s road,<br />

rail and air contracts from a health and safety angle;<br />

Craig Hoyle, Defence Editor of Flight International,<br />

investigates how <strong>Serco</strong> supports the armed forces and<br />

their families and also its own employees; Sonia Purnell,<br />

previously Whitehall Editor of the Daily Mail and Brussels<br />

and City correspondent for the Daily Telegraph, discovers<br />

how <strong>Serco</strong>’s home affairs activities shape the lives of<br />

those in prison; while David Allaby, Editor of Public<br />

Servant, examines the environmental initiatives of our<br />

local government business.<br />

Setting a strategic framework<br />

As an organisation, we are never complacent. We work<br />

continually to improve our systems and processes.<br />

Like all responsible companies, we are striving to<br />

become more sustainable.<br />

As a result, we have developed our corporate<br />

responsibility framework to recognise local cultures<br />

and conditions across our diverse operations. This<br />

will put sustainable development at the heart of our<br />

business. As Robert Smith, Director, Assurance,<br />

explains, this is not about imposing strict key processes,<br />

but focusing on principles defined within a clear set of<br />

boundaries. “What we have tried to say to our managers<br />

is that, when they are setting business objectives and<br />

making decisions, they should consider them from<br />

these different angles.” The framework consists of<br />

five key areas. These are:<br />

■ to make a positive difference to the communities<br />

we serve<br />

■ to reduce our environmental impact<br />

■ to reduce our consumption and assure our<br />

supply chain<br />

■ to increase our value to our customers<br />

and shareholders<br />

■ to realise the potential of our people.<br />

<strong>Review</strong>ing corporate governance<br />

During <strong>2008</strong> we undertook a complete review of our<br />

entire management system to ensure that our policy<br />

framework is the right one for the size and scale of the<br />

organisation we are now. As we continue to grow, we<br />

have focused on how to keep it as simple as possible<br />

and make sure we are using language that everybody<br />

can clearly understand.<br />

We need to ensure we have strong links between our<br />

management system, risk management and our internal<br />

audit process, so that we have confidence in both our<br />

governance structure and our management of risk.<br />

It is important that our people have clarity about their<br />

roles and accountability, empowering and enabling them<br />

to excel even further, leading to better value all around.<br />

Embedding ethical guidelines<br />

Our company values and ethics are integral to one<br />

another. Historically we have been clear about where<br />

we draw the lines. However, as we move into different<br />

countries and cultures, and as we diversify our range<br />

of services, we need to review regularly the company’s<br />

position on these.<br />

That is why we have set up a formal Ethics Committee,<br />

made up of senior management, with very clear<br />

guidelines about its remit. It is there to determine the<br />

‘big ticket’ items that define our position beyond<br />

regulatory and statutory requirements.<br />

Doing business the right way demands constant<br />

vigilance. By its very nature it has to be a journey without<br />

an ending. But as this report shows, thanks to the truly<br />

phenomenal people we employ, we are making real<br />

progress in reaching our ambitious goals.<br />

Celebrating success<br />

Launched in 2007, the Pulse<br />

Awards celebrate the vibrant<br />

heart of <strong>Serco</strong>. Winning teams<br />

and individuals are chosen<br />

because they have exceeded<br />

expectations by living our<br />

Governing Principles, which<br />

guide the way we operate.<br />

From life-saving acts of<br />

courage to innovative ideas<br />

that have transformed the<br />

way we work, through to<br />

demonstrations of commitment<br />

and skill, the awards recognise<br />

examples of excellence in<br />

business operations or<br />

improvement, environmental<br />

and safety initiatives, and<br />

leadership. They also recognise<br />

our wider responsibilities to<br />

society, the environment<br />

and the communities we<br />

serve. Read more online by<br />

visiting: www.serco.com/pulse<br />

We listen<br />

It can be difficult to ensure that<br />

50,000 employees across the<br />

globe have their say in the way<br />

<strong>Serco</strong> operates. That’s why<br />

the Viewpoint Survey was<br />

launched in 2007.<br />

The <strong>2008</strong> survey discovered<br />

that people often felt closer<br />

to their division or contract<br />

than to <strong>Serco</strong> as a whole.<br />

In response we introduced<br />

a new Sharesave scheme<br />

to share in the company’s<br />

success; the Pulse Awards<br />

(see above); and Scoop,<br />

a new employee magazine<br />

designed to increase people’s<br />

knowledge of, and pride in,<br />

the diverse work we do.<br />

Award-winning<br />

<strong>Serco</strong> was declared<br />

Britain’s Most Admired<br />

Support Service Company<br />

by Management Today<br />

for the fifth year running.<br />

<strong>Serco</strong> was also 12th Most<br />

Admired Company overall<br />

Experienced<br />

<strong>Serco</strong> has been delivering<br />

essential public services<br />

for over 40 years. More than<br />

50,000 employees deliver<br />

mission-critical services to<br />

government and private<br />

clients in over 30 countries<br />

Global<br />

We operate in Europe, the<br />

Middle East, Asia Pacific and<br />

North America. More than<br />

a quarter of our turnover<br />

comes from outside the<br />

UK. The range of activity<br />

differs between regions<br />

Markets<br />

The public sector represents<br />

more than 90% of our business.<br />

Markets include aviation, defence,<br />

education, local government,<br />

health, nuclear, science, transport,<br />

leisure, home affairs, consulting,<br />

and the private sector<br />

Go to www.serco.com<br />

for more information<br />

4 | <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Review</strong> | <strong>2008</strong><br />

www.serco.com | 5


Interview<br />

The heart of <strong>Serco</strong><br />

<strong>Serco</strong>’s Chief Executive CHRISTOPHER HYMAN reveals how<br />

the company’s values lie at the heart of everything it<br />

does – shaping every action and decision – and will<br />

guide it through these difficult times and beyond<br />

In what way is <strong>Serco</strong> a ‘values-driven’ organisation?<br />

It’s very easy for any Chief Executive to stand up and say “we<br />

are a values-driven organisation”. The challenge is to actually<br />

see it in action. When I look back on other great companies I’ve<br />

worked for, I think the difference is that in <strong>Serco</strong> the values are<br />

so deeply ingrained and the commitment to them is more visible<br />

at the leadership level.<br />

Those values are based on our four Governing Principles:<br />

we build trust and respect; we allow our people to excel; we<br />

foster an entrepreneurial spirit; and we deliver on our promises.<br />

They are called governing because they do much more than<br />

guide our actions, they are central to the way we operate.<br />

When new people come in, they wonder what that means in<br />

practice. But ask them the question a month later and there<br />

isn’t any doubt. I was asked a few years ago about the balance<br />

between doing the right thing and making money. And I said,<br />

I don’t think those things are mutually exclusive – doing the<br />

right thing does make money. To really be a ‘values-driven’<br />

organisation, the values have to run right through the company.<br />

Adhering to them is not an option. If you instill this culture, as I<br />

believe we have done in <strong>Serco</strong>, it’s very powerful and it makes<br />

a fundamental difference.<br />

What are the key reasons for <strong>Serco</strong>’s continuing success?<br />

Let’s look at what people expect from companies. They like<br />

financial success and strength, which comes from increased<br />

productivity, achieved through innovation and growth. For<br />

customers, they like to receive an excellent and reliable service.<br />

If you do this consistently then you’ll have satisfied customers.<br />

At <strong>Serco</strong> we have very good services, from controlling satellites<br />

in space to helping to transform children’s education. I believe<br />

we deliver excellence on a consistent basis and this success<br />

comes from the values at our core.<br />

But what makes a company really live its values? For me, the<br />

answer is loyalty, and real loyalty breeds advocacy. It means our<br />

employees are proud of their work. You win that sort of loyalty<br />

by the way you treat people when things go wrong; by being in<br />

touch with what’s important to them. Going the extra mile for<br />

our people as well as our customers has never let us down.<br />

When people move from the public sector to <strong>Serco</strong>,<br />

how do you ensure that they buy into its values?<br />

Often we don’t have to sell our values to attract people from<br />

the public sector to work for us, because many of them share<br />

our principles. I think that if you asked those <strong>Serco</strong> employees<br />

who had worked in the public sector why they joined us, almost<br />

every time they would say that a central reason was because we<br />

have a strong public service ethos. We show them that it isn’t a<br />

cut-throat world that says we’ll make profit without regard to<br />

anything else.<br />

We are not only interested in prisons making a profit but in<br />

lowering the recidivism rate. We are interested in whether the<br />

<strong>Serco</strong> schools have a better pass rate than the national average.<br />

We want to see more trains run on time. Ultimately we want to<br />

make a difference.<br />

When we take over a government contract, on average we use<br />

only 70% of the previous budget. Yet the people who enable us<br />

to do that are the same people who were there before, skilled<br />

people who are knowledgeable about what they do and who<br />

have been inspired to do something that helps others – inspired<br />

to make a difference.<br />

Critics of government and the civil service sector talk of the<br />

advantages of private over public sector – greater efficiency,<br />

more dynamism, less bureaucracy – but they forget the great<br />

ethos of civic service that is inherent in the public sector. In<br />

<strong>Serco</strong> we want to take the best attributes of both public and<br />

private sectors and combine them. This is key to the way we<br />

operate and I believe makes us unique.<br />

What challenges does 2009 hold for <strong>Serco</strong>?<br />

Like every year, 2009 will have its challenges. In the current<br />

economic climate, I think people throughout the organisation<br />

know that we plan to tighten belts because we have told<br />

everybody that. However, I have a personal rule that I ask all my<br />

colleagues to follow. When you’ve got bad news, whether for a<br />

customer, for a staff member, for a shareholder or whoever, you<br />

only have three things in your power. To be as open as possible,<br />

as early as possible and as generous as possible. After that<br />

they’ll still respect you. They may not like the decision but they’ll<br />

still respect you. If you don’t do those three things as a leader<br />

they’re right not to trust you again. That’s how we aspire to deal<br />

with everything we do in our company.<br />

I’m really looking forward to 2009 and beyond because I know<br />

our people will continue to do a great job. We are very fortunate<br />

because so many of our contracts are long term and our business<br />

plan for 2009 is set. I believe that what brings companies like<br />

ours to the fore in times like this is that innovation is so ingrained<br />

in everything we do. We have entered a time when governments<br />

and companies will look to us to help them improve efficiency<br />

and provide better services for less money.<br />

This really is a time when <strong>Serco</strong> can excel. If it’s a tough year,<br />

it will be a tough year in which we can be extraordinary.<br />

Christopher Hyman was talking to business journalist Laura Mazur.<br />

“To really be a ‘values-driven’ organisation,<br />

the values have to run right through the<br />

company. Adhering to them is not an option.<br />

If you instill this culture, as I believe we have<br />

done in <strong>Serco</strong>, it’s very powerful and it makes<br />

a fundamental difference.”<br />

6 | <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Review</strong> | <strong>2008</strong><br />

www.serco.com | 7


Health<br />

& Safety<br />

Transport<br />

A safer pair of hands<br />

<strong>Serco</strong> strives not only to meet<br />

the public’s safety expectations,<br />

but travel way beyond them<br />

by constantly reviewing and<br />

improving its systems and<br />

procedures, says JAMES DARK<br />

8 | <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Review</strong> | <strong>2008</strong> www.serco.com | 9


Health<br />

& Safety<br />

Safety<br />

THE PUBLIC REGARDS it as a<br />

fundamental right to be able to embark<br />

upon, and complete, journeys safely. A<br />

belief clearly demonstrated by media and<br />

public reaction when accidents do occur.<br />

In rail, for example, only one passenger<br />

has been killed in a train crash in the UK<br />

since 2004. Yet media and public scrutiny<br />

of the February 2007 Grayrigg derailment<br />

– and the safety lessons for rail travel in<br />

general (see page 13) – continue nearly<br />

two years on. Expectations of air and<br />

rail travel, in particular, are now at such a<br />

level that industry executives, regulators<br />

and the government talk openly about<br />

aspirations for zero fatalities.<br />

For <strong>Serco</strong> – whose contracts include<br />

the operation of air traffic control services<br />

in the United States, the Middle East,<br />

and the UK, and trains in London, the<br />

north of England and Australia – safety<br />

is paramount.<br />

The company is also the UK’s leading<br />

maintainer and operator of traffic<br />

management systems, with contracts<br />

to run the National Traffic Control Centre<br />

for the Highways Agency and to maintain<br />

high-tech communications equipment<br />

on urban roads and motorways in the<br />

UK, Australia and the US.<br />

Driving ambition<br />

While the public is more accepting of a<br />

degree of risk when driving, in <strong>Serco</strong>’s<br />

highways work safety has to be a core<br />

part of its expertise. It is not uncommon<br />

for it to insist on safety standards beyond<br />

clients’ and the law’s requirements from<br />

its contractors. Employees’ safety is also<br />

a paramount consideration.<br />

The focus on looking after passengers<br />

and employees starts at the top of<br />

the company, with Chief Executive<br />

Christopher Hyman championing<br />

safety on the board, and permeates<br />

throughout the company with safety<br />

goals and policies devolved to divisions<br />

and operations worldwide by <strong>Serco</strong>’s<br />

<strong>Corporate</strong> Assurance Group. “One of the<br />

reasons I am proud to work for <strong>Serco</strong> is<br />

that there is genuinely no compromise<br />

over safety,” says <strong>Serco</strong> Group Health,<br />

Safety and Environment Director Andy<br />

Lewis. “If it’s not safe, we won’t do it.”<br />

In the past year, direction to the <strong>Serco</strong><br />

Integrated Transport (SIT) board has<br />

seen a strong focus on ensuring<br />

compliance with the new <strong>Corporate</strong><br />

Manslaughter Legislation. As part of this<br />

work, a package has been developed<br />

with the Automobile Association to<br />

assess the status of all SIT drivers and<br />

the level of risk involved in their work.<br />

Data collected includes the miles and<br />

type of vehicle employees drive, and<br />

the reasons for points being on their<br />

licences. Training and advice is being<br />

tailored for each driver, and the company<br />

is setting itself targets to measure and<br />

improve its drivers’ safety for the first time.<br />

“It will particularly help people who<br />

have to drive specialist vehicles or late<br />

at night as part of their work,” says <strong>Serco</strong><br />

Group Fleet Manager Sue Blair. Once<br />

established at SIT, the system will be<br />

rolled out across <strong>Serco</strong>’s divisions. Over<br />

the next three years all 13,500 registered<br />

<strong>Serco</strong> drivers will be assessed.<br />

A second major focus for the SIT board<br />

has been a programme to integrate<br />

<strong>Serco</strong> Middle East – with its light rail and<br />

aviation contracts – into SIT from the start<br />

of 2009. Experienced, non-executive<br />

directors will play a key role in ensuring<br />

that all safety processes are in place and<br />

that SIT Directors understand their new<br />

responsibilities, while emphasising<br />

that integration will not happen unless<br />

it can be shown to be safe.<br />

Meanwhile, all SIT’s employees have<br />

the chance to comment on safety<br />

practices during regular Safety Culture<br />

Surveys and at employee meetings,<br />

where they can make suggestions<br />

PREVIOUS PAGE:<br />

the <strong>Serco</strong>-operated<br />

air traffic control<br />

tower at Dubai<br />

International<br />

Airport<br />

PASSENGER<br />

NUMBERS ON<br />

DLR (RIGHT)<br />

HAVE MORE<br />

THAN DOUBLED<br />

in the nine years<br />

that <strong>Serco</strong> has<br />

run the franchise<br />

based on their working experiences.<br />

This feedback influences detailed safety<br />

plans drawn up and overseen by the<br />

senior management teams running each<br />

contract. At board approval stage, the<br />

Assurance Director checks whether<br />

there are any issues best addressed by<br />

common standards.<br />

Fighting fatigue<br />

In <strong>2008</strong>, fatigue management figured<br />

prominently in rail companies’ action<br />

plans and it was decided that the issue<br />

could be dealt with most effectively by<br />

universal rules limiting the number of<br />

consecutive hours employees, including<br />

drivers and engineers, can work.<br />

“It’s a really significant step because it<br />

means thinking again about how we run<br />

trains and manage businesses,” says<br />

Stuart Williams, Safety and Assurance<br />

Director for <strong>Serco</strong> Transportation<br />

Systems. In this way, safety initiatives<br />

are not only developed and devolved<br />

from group level through the SIT board<br />

to each of its companies and contracts,<br />

but also back up from the shop floor and<br />

the management teams of individual<br />

contracts to SIT directors.<br />

Once priorities and plans are<br />

established, an array of key performance<br />

indicators are developed and monitored<br />

by risk oversight committees at divisional<br />

and individual contract level to check that<br />

the desired results are achieved.<br />

It is a safety management system that<br />

stands comparison with any of <strong>Serco</strong>’s<br />

peer companies. In the Highways<br />

Agency’s assessment of its capabilities,<br />

SIT received the third highest score of<br />

any company, and, of 24 areas assessed,<br />

health and safety culture was the highest<br />

individual scorer.<br />

The benefits of <strong>Serco</strong>’s rigorous<br />

approach to safety management are not<br />

just of fringe value. They have contributed<br />

directly to <strong>Serco</strong> winning contracts, <br />

Docklands Light Railway, UK<br />

Setting new standards in safety<br />

■ <strong>Serco</strong>-operated and maintained light railway system<br />

■ RoSPA award winner for its high-quality safety management<br />

■ Ongoing promotion of safe rail travel practices<br />

The <strong>Serco</strong>-run Docklands Light Railway (above), responsible<br />

for carrying 66 million passengers safely around London<br />

each year, has received one of the highest safety accolades<br />

of <strong>2008</strong>, winning the Royal Society for the Prevention of<br />

Accidents (RoSPA) annual award for the transport, storage<br />

and distribution sector. The business was also the runner-up<br />

in the Sir George Earle Trophy, RoSPA’s annual prize for the<br />

best performer from any sector.<br />

The standards demanded by RoSPA mean that businesses<br />

are only eligible to enter its awards when they can demonstrate<br />

a robust and high-quality safety management system,<br />

together with a minimum of four years’ consistently<br />

excellent or improving health and safety performance.<br />

Initiatives that <strong>Serco</strong> Docklands has introduced to improve<br />

safety include annual visits to local primary schools and<br />

centres for vulnerable adults to educate them on the dangers<br />

of the railway; leaflets and posters that graphically explain<br />

the risks of train surfing (riding on the outside of the train<br />

when it is moving); the use of DNA testing kits to deter spitting<br />

at employees; the introduction of Travel Safe officers on<br />

trains; and joint patrols with British Transport Police.<br />

Advertised on trains and at stations and via the press, these<br />

schemes not only promote public safety, but also <strong>Serco</strong>’s<br />

intolerance of assaults and anti-social behaviour.<br />

When assessing <strong>Serco</strong> Docklands’ submission, the judges<br />

noted the commitment to safety throughout the company.<br />

Senior managers complete the Institution of Occupational<br />

Safety and Health’s managing safely qualification and are<br />

trained to carry out safety tours of the company.<br />

<strong>2008</strong> at a glance:<br />

Road<br />

Personal Road Safety course transfers best practice from <strong>Serco</strong>’s rail operations<br />

Rail<br />

New safety measures include limiting employees’ working hours to reduce<br />

the risk of accidents caused by fatigue<br />

Light Rail<br />

The <strong>Serco</strong>-run Docklands Light Railway wins a <strong>2008</strong> RoSPA award; meanwhile<br />

the Dubai Metro draws on DLR’s expertise to draft its own safety measures<br />

“Businesses are only eligible to enter the<br />

RoSPA awards when they can demonstrate a<br />

robust and high-quality safety management<br />

system, together with a minimum of four<br />

years’ consistently excellent or improving<br />

health and safety performance.”<br />

10 | <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Review</strong> | <strong>2008</strong><br />

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Health<br />

& Safety<br />

even when the company has not been<br />

the lowest-priced bidder, and to safer<br />

systems being introduced on the UK’s<br />

roads and railways, as well as at airports<br />

(in air traffic control) in the Middle East<br />

and the US.<br />

Prevention, not cure<br />

In April <strong>2008</strong>, <strong>Serco</strong> won the contract to<br />

maintain traffic signals at 40 sites around<br />

Heathrow with the promise of a large<br />

improvement in the availability and safety<br />

of the equipment. In its bid for the contract,<br />

<strong>Serco</strong> demonstrated that safety standards<br />

could and should be improved.<br />

Rather than a maintenance system<br />

based on repairing faults, <strong>Serco</strong> offered<br />

a preventative system based on avoiding<br />

faults happening in the first place.<br />

“We look at the history of each piece<br />

of equipment, establish fault risks and<br />

decide what measures need to be taken<br />

and when to change parts so equipment<br />

doesn’t fail,” explains <strong>Serco</strong>’s London<br />

Street Services Director Rob Bourne.<br />

<strong>Serco</strong>’s bid was not the cheapest, but<br />

it persuaded Heathrow’s owner, British<br />

Airports Authority, that a higher cost was<br />

Scout Association Personal Safety Badge, UK<br />

Scouts show the way<br />

worth paying in order to gain the safety<br />

and customer service improvements.<br />

SIT also expects safety expertise to<br />

play an important part in bids to retain<br />

contracts that are coming up for renewal.<br />

In America, where <strong>Serco</strong> is preparing<br />

to defend a contract to supply air traffic<br />

control at more than 50 towers, it will be<br />

able to point to a safety record that is well<br />

in excess of a tough contract target set by<br />

the Federal Aviation Administration (FAA).<br />

While the FAA’s target is only 2.15 errors<br />

per million operations, the company is<br />

averaging 1.3 errors per million. “An error<br />

is two planes getting closer to each<br />

another than the minimum standard<br />

allowed,” says Jon Siverly, <strong>Serco</strong>’s US<br />

Aviation Safety Director. There are dozens<br />

of standards, vertical and lateral, and<br />

if at any time separation between the<br />

aircraft is less than what’s required, an<br />

error is said to have occured. “Although<br />

we are proud of our record, we will not be<br />

satisfied until we no longer have errors,”<br />

says Jon. The rigorous monitoring and<br />

training that has helped achieve this<br />

standard includes random checks of<br />

audio tapes to determine whether <br />

■ Educates young people about safety on railways<br />

■ Supported by almost every train operator in the country<br />

■ Breaking all records, with 40,000 safety packs already requested<br />

<strong>Serco</strong>-run Northern Rail’s projects to teach children about the dangers of railway<br />

crime have seen youth crime on its network reduced by almost 50%. Now the<br />

new Personal Safety badge for Scouts, devised by <strong>Serco</strong> with the Scout<br />

Association, aims to take these methods nationwide.<br />

Launched in December <strong>2008</strong> by Transport Secretary Geoff Hoon, who<br />

described it as a “brilliant initiative”, it will educate young people – and the wider<br />

community – about staying safe at stations and the dangers of trespassing on<br />

the railway. It is also designed to counter the perception that railway vandalism<br />

is a victimless crime and illustrate the cost of the 13,000-plus incidents each year,<br />

which add more than 20p to the cost of every rail ticket bought.<br />

RIGOROUS AIR<br />

TRAFFIC SAFETY<br />

MANAGEMENT<br />

SYSTEMS put in<br />

place by <strong>Serco</strong> at<br />

Dubai International<br />

Airport (left) have<br />

seen errors fall<br />

significantly<br />

despite a 12% rise<br />

in traffic each year<br />

Learning from Grayrigg<br />

The day the Rail Accident Investigation Branch<br />

(RAIB) published its initial report into the<br />

derailment of the Virgin train at Grayrigg in<br />

Cumbria, <strong>Serco</strong> started a process to ensure<br />

that, as far as possible, a similar incident could<br />

not occur at any of its own rail operations.<br />

Its Northern and Merseyrail franchises were<br />

told to establish whether issues identified in the<br />

report were also a cause for concern for them,<br />

and to work with Network Rail to ensure any<br />

problems were resolved.<br />

Following Network Rail’s own report into the<br />

incident in November 2007, the review was<br />

repeated by Safety Directors from <strong>Serco</strong>’s UK<br />

rail companies, and again after the RAIB’s final<br />

report in October <strong>2008</strong>.<br />

Although the second review showed that<br />

any problems on the ground had largely been<br />

resolved, it highlighted that it would be valuable<br />

for <strong>Serco</strong> to update its strategic safety training<br />

for senior managers, including those not<br />

involved in running trains.<br />

The training is designed to ensure that<br />

commercial and finance managers, as well<br />

as operations managers, consider the safety<br />

implications of every decision they make and,<br />

when in doubt, check with safety professionals.<br />

The response to Grayrigg reflects the way<br />

in which <strong>Serco</strong> reacts to any major industrial<br />

incident that affects any company, anywhere<br />

in the world in the sectors in which it operates.<br />

“We go through the accident reports in detail<br />

to make sure it can’t happen to us and to see<br />

if there are lessons we can learn,” says <strong>Serco</strong><br />

Group Health, Safety and Environment<br />

Director Andy Lewis.<br />

“The benefits of <strong>Serco</strong>’s rigorous approach<br />

to safety management are not just of fringe<br />

value. They have contributed directly to<br />

<strong>Serco</strong> winning contracts, even when it has<br />

not been the lowest-priced bidder, and to<br />

safer systems being introduced. ”<br />

<strong>2008</strong> Pulse Award winner: Goodyear Tower<br />

The team at Phoenix’s Goodyear Air Traffic Control Tower in Arizona was judged<br />

first out of 240 federal contract towers as one of the safest, most courteous<br />

and professional air traffic providers in the US with an unprecedented 12-year<br />

record of directing more than 1.6 million error-free take-offs and landings. Their<br />

commitment to performance excellence and customer service has brought<br />

<strong>Serco</strong> national recognition, and has helped to establish <strong>Serco</strong>’s reputation with<br />

the FAA as an outstanding partner in providing contract air traffic control services.<br />

12 | <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Review</strong> | <strong>2008</strong><br />

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Health<br />

& Safety<br />

Personal Road Safety course, UK<br />

Reducing risk<br />

■ Ensures road crews work safely<br />

■ Adopts best practice from railways<br />

■ Praised by the Highways Agency<br />

<strong>Serco</strong> employees are now better<br />

prepared than ever before for working<br />

on roads and motorways. Those<br />

engaged on contracts to maintain<br />

CCTV cameras, roadside electronic<br />

messaging signs and communication<br />

equipment have undertaken a course<br />

proving their competency to work<br />

safely in this high-risk environment.<br />

It is an approach that exceeds<br />

contractual and legal requirements.<br />

A best practice review of <strong>Serco</strong>’s<br />

road and rail operations highlighted<br />

that while there is a legal requirement<br />

for rail industry personnel to attend<br />

a safety certification course before<br />

working trackside, there is no<br />

equivalent for road workers.<br />

The new Personal Road Safety<br />

course teaches employees how to<br />

minimise risk when preparing for<br />

work, getting to the work site, carrying<br />

out the work, and leaving the site.<br />

They are then assessed on-site and<br />

given a handbook detailing what<br />

they have learned.<br />

“This shows how we are proactive in<br />

the way we adopt best practice across<br />

our transport operations,” says<br />

Donald Scott, Assurance Manager<br />

for <strong>Serco</strong> Transport Special Projects.<br />

“If we find a gap we address it.”<br />

The handbook has received strong<br />

endorsement from the Highways<br />

Agency: “This is a very good example<br />

of how best to get the message<br />

of personal safety over to a wide<br />

audience,” said the Agency’s<br />

Traffic Technology Team Leader<br />

Hugh Maxwell.<br />

SERCO-RUN<br />

MERSEYRAIL<br />

has been awarded<br />

Secure Station<br />

status for all 66<br />

of its stations,<br />

including Liverpool<br />

Lime Street (right)<br />

controllers are reporting errors and to<br />

ensure correct phraseology and<br />

procedures are used.<br />

Performance assessment includes<br />

mandatory skill checks for controllers and<br />

quality assurance reviews to determine<br />

whether procedure changes or refresher<br />

training are needed.On top of that, all of<br />

the control towers undergo audits by<br />

<strong>Serco</strong> every two years to ensure group<br />

standards are being maintained. Tower<br />

employees must also perform an annual<br />

internal audit, using a comprehensive<br />

checklist. The FAA audits the towers less<br />

frequently than <strong>Serco</strong> “so you can see<br />

that our standards are in excess of what<br />

is required by the FAA”, Jon says.<br />

Similarly rigorous safety management<br />

systems at <strong>Serco</strong>’s six Middle East air<br />

traffic control operations have seen errors<br />

fall significantly despite unprecedented<br />

growth in traffic of around 12% every year<br />

for the past six years. “Given this increase<br />

in traffic you would expect incidents to<br />

rise proportionally if not exponentially as<br />

the airspace becomes more congested,”<br />

says Brendan Ginn, Manager Air Traffic<br />

Operations, <strong>Serco</strong> Middle East. Latest<br />

figures show, however, that errors per<br />

100,000 air movements are 1.48 in <strong>2008</strong>,<br />

in comparison with 1.86 in 2003.<br />

Best practice travels well<br />

In December <strong>2008</strong>, the Middle East<br />

operations were incorporated into <strong>Serco</strong><br />

Integrated Transport and Stuart Williams<br />

expects there to be considerable benefits<br />

in sharing best practice across rail, road<br />

and air to improve already high safety<br />

standards. “There is a lot of good practice<br />

to be shared,” he says. Systems to share<br />

best practice among SIT operations are<br />

well established, and the company has<br />

transferred safety training from the rail<br />

industry to its road contracts (see box left).<br />

Perhaps the most striking example<br />

of transferring expertise is <strong>Serco</strong>’s lead<br />

role in designing Dubai’s rail transport<br />

safety standards.<br />

Signed in April <strong>2008</strong>, the £500 million<br />

contract to operate and maintain the<br />

state’s first rail system was set by the<br />

Dubai Roads and Transport Authority<br />

(RTA), whose aspirations include having<br />

the best safety standards anywhere in the<br />

world. Being able to draw down on its<br />

safety record and expertise at Docklands<br />

Light Railway and elsewhere was an<br />

important factor in winning the contract.<br />

Because there is virtually no public<br />

transport in Dubai at present, <strong>Serco</strong><br />

has started with a blank sheet of paper<br />

in drawing up its safety management<br />

system. Andy Brooks, Safety Director<br />

for <strong>Serco</strong> Dubai Metro, says the system<br />

will be “rigorous”, in line with both the<br />

RTA’s brief and <strong>Serco</strong>’s standards.<br />

Rail, road and regulations<br />

The contract to assist Network Rail in<br />

improving the safety of the UK’s railways<br />

involves operating specialist trains, which<br />

identify track defects before they become<br />

a significant risk and carry out essential<br />

rail grinding work that helps prevent<br />

broken rails.<br />

In 2007/08, <strong>Serco</strong> Rail Operations<br />

delivered more than 250 shifts beyond<br />

the contracted numbers, with many of<br />

these undertaken at late notice when<br />

issues were identified that needed<br />

immediate attention.<br />

Other notable safety improvements in<br />

<strong>2008</strong> included developing the Highways<br />

Agency’s ESDAL web portal, which<br />

assists hauliers in fulfilling their legal<br />

obligation to plan safe routes and notify<br />

relevant emergency services and<br />

infrastructure owners of potentially<br />

problematic, abnormally large loads.<br />

Providing this service has involved<br />

surveying the dimensions of more than<br />

200,000 bridges and other structures<br />

throughout the country.<br />

Its effectiveness is demonstrated<br />

by a huge reduction in the number of<br />

notifications made to infrastructure<br />

owners. British Waterways now receives<br />

just one a week, compared to hundreds<br />

of thousands in the course of a year.<br />

Meanwhile, <strong>Serco</strong>’s train operating<br />

companies have implemented the<br />

Railways and Other Guided Transport<br />

Systems (ROGS) regulations, which<br />

require companies to ensure their safety<br />

management systems are updated<br />

and comply with EU and UK legislation.<br />

<strong>Serco</strong>’s ROGS review showed that its<br />

rail companies have fulfilled most of the<br />

criteria for IS18001 safety certification<br />

– the highest level available in the UK,<br />

which the Docklands Light Railway (DLR)<br />

expects to achieve in 2009, and which<br />

Northern Rail is already part of the way<br />

towards achieving.<br />

In 2009, safety management across<br />

SIT and all <strong>Serco</strong>’s operations worldwide<br />

is set to take a further step forward with<br />

the implementation of a single safety<br />

management system and procedures<br />

for the entire company, drawing on best<br />

practice from all divisions and ultimately<br />

replacing the individual systems at the<br />

600 contracts <strong>Serco</strong> manages.<br />

Each contract will have a system that<br />

is up to date, takes account of lessons<br />

learned throughout <strong>Serco</strong>’s operations<br />

and is consistent with its neighbouring<br />

contracts. Each contract will be designed<br />

to make safety management easier to<br />

understand, so that people moving from<br />

one <strong>Serco</strong> company to another know<br />

what to expect and when. It is regarded<br />

by Andy Lewis as “the single most<br />

important project for 2009”.<br />

In touring <strong>Serco</strong>’s operations, it is<br />

apparent that improvements to safety<br />

management are serving a vital function<br />

beyond protecting employees and the<br />

public – they are also keeping the whole<br />

transport system moving, increasingly<br />

important as demand for travel increases.<br />

“We can’t build our way out of<br />

congestion with more roads; we have<br />

to manage traffic and infrastructure<br />

maintenance better,” Andy explains.<br />

“Reducing accidents and risk is part<br />

of that process. And, of course, if we<br />

can limit traffic congestion and run trains<br />

more efficiently, safety will also improve.”<br />

Georgia Traffic Management Center, US<br />

Going the distance<br />

■ Provides information and advice on road traffic conditions<br />

■ Employees answer calls within four seconds on average<br />

■ Has introduced 100-plus ramp meters to regulate traffic<br />

Following America’s Thanksgiving holiday in November<br />

<strong>2008</strong>, <strong>Serco</strong> employees at the Georgia Traffic Management<br />

Center (TMC) in Atlanta were described as the state’s<br />

“unsung heroes” by Gena Evans, Georgia’s Department<br />

of Transportation Commissioner, who said they deserved<br />

special recognition for their tireless work behind the<br />

scenes. The system they operate handled a staggering<br />

71,734 calls from motorists asking for advice on road traffic<br />

conditions over the holiday period.<br />

The free phone service offers route-specific information,<br />

state-wide traffic conditions and estimated travel times<br />

within Atlanta. <strong>Serco</strong> employees also direct the state’s<br />

Highways Emergency Response Operators (HERO) to<br />

motorists needing assistance. HERO trucks often arrive<br />

before other emergency services and, as many traffic<br />

accidents are caused by earlier incidents, this rapid<br />

response plays a vital part in road safety.<br />

The exceptional usage of the service shows that<br />

expectations of a high quality of customer service from<br />

<strong>Serco</strong> have been met. “People don’t provide that level of<br />

service unless they are motivated and happy in their work,”<br />

says TMC Program Director Marcus Wittich.<br />

Since it took over the contract, <strong>Serco</strong> has also integrated<br />

more than 100 ramp meters into the system. These regulate<br />

the flow of traffic entering freeways, significantly reducing<br />

both travel times and pollutants.<br />

Secure status for <strong>Serco</strong>-run stations<br />

Merseyrail, <strong>Serco</strong>’s rail operation on Merseyside, has been accredited as the UK’s<br />

first fully secure rail network. All 66 of its stations have been awarded the coveted<br />

Secure Station status after visits made by the British Transport Police on behalf of<br />

the Department of Transport in association with Crime Concern. Each station was<br />

evaluated on its safety measures; buildings and facilities; and customer service. In<br />

addition, 95% of the network’s station car parks have achieved Secure Car park status.<br />

“We can’t build our way out of congestion with more roads;<br />

we have to manage traffic and infrastructure maintenance<br />

better. Reducing accidents and risk is part of that process.<br />

And, of course, if we can limit traffic congestion and run<br />

trains more efficiently, safety will also improve.”<br />

Andy Lewis, <strong>Serco</strong> Group Health, Safety and Environment Director<br />

14 | <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Review</strong> | <strong>2008</strong><br />

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People<br />

Defence<br />

Life support<br />

<strong>Serco</strong> employees supporting<br />

military personnel and their<br />

families combine an in-depth<br />

understanding of the culture<br />

and ethos with exceptional<br />

compassion, reports CRAIG HOYLE<br />

16 | <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Review</strong> | <strong>2008</strong><br />

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People<br />

IT WOULD PROBABLY SURPRISE many<br />

people to discover that the individuals<br />

maintaining aircraft, providing secure<br />

communications between troops on<br />

the frontline and their families back<br />

home, and delivering re-education and<br />

counselling services at the end of a<br />

soldier’s career, do not routinely wear a<br />

uniform, and are, in fact, the employees<br />

of public service companies.<br />

Responsible for providing a wide range<br />

of support to military customers on both<br />

sides of the Atlantic, and in combat<br />

theatres including Afghanistan and<br />

Iraq, <strong>Serco</strong> is at the forefront of those<br />

companies that, on a daily basis, are<br />

enabling armed forces of nations such<br />

as the UK and the USA to focus their<br />

resources at the “tip of the spear”.<br />

In the UK, for example, <strong>Serco</strong> employees<br />

at RNAS Yeovilton maintain and repair<br />

aircraft deployed ‘in theatre’, while<br />

those at RAF Benson train many of the<br />

pilots who will fly those aircraft. And,<br />

demonstrating the proactive approach<br />

that runs throughout <strong>Serco</strong>’s defence<br />

business, apprenticeship programmes<br />

are in place, ensuring the talent pool does<br />

not run dry (see case study, page 22).<br />

Family matters<br />

But <strong>Serco</strong>’s role is not confined to<br />

supporting those on the front line; its<br />

reach extends to their families, too.<br />

In the USA, <strong>Serco</strong> provides an extensive<br />

network of services to military personnel<br />

and their families under a variety of<br />

contracts, including the Military Family<br />

Program, which offers practical advice<br />

and help for families via highly trained,<br />

specialist advisors, such as Family<br />

Program Assistants (FPAs) and Personal<br />

Financial Managers (PFMs).<br />

It is also an umbrella for a number of<br />

other programmes, including the Army<br />

Career and Alumni Program (see case<br />

study, page 21); the Army Spouse<br />

Employment Partnership (ASEP), which<br />

helps military spouses establish and<br />

maintain careers wherever the Army<br />

sends them; and the Family Advocacy<br />

Program, which addresses domestic<br />

violence in military families.<br />

FPAs make regular outreach calls to<br />

families to check on their well-being,<br />

providing a friendly voice and mobilising<br />

support systems where needed. In turn,<br />

families know they can call them with<br />

any problems.<br />

Elisdelia Coronado, an FPA based at<br />

Fort Sam Houston in San Antonio, Texas,<br />

is just one of the exceptional people<br />

fulfilling this role. From pointing a married<br />

couple towards counselling resources by<br />

conference call, to helping a father reach<br />

his deployed son when his pregnant<br />

daughter-in-law was involved in an<br />

accident, her job requires quick thinking<br />

alongside an extensive contact book.<br />

Beyond the call of duty<br />

Jo Sperry, a Victim Advocate (VA), is<br />

another <strong>Serco</strong> employee who works<br />

above and beyond the terms of her<br />

contract. Part of the Family Advocacy<br />

Program, VAs liaise between the victim<br />

of a crime and the State Attorney’s Office<br />

when an incident is under investigation.<br />

The role requires a compassionate<br />

individual with exceptional interpersonal<br />

skills, given the often-sensitive nature<br />

of the crimes.<br />

When a soldier who was sexually<br />

assaulted had to return to the US to testify<br />

in the trial against her alleged offender, Jo<br />

did all she could to minimise her trauma.<br />

After seven days’ travel from Iraq, the<br />

soldier was emotionally and physically<br />

drained, and her morale was low. Jo<br />

stayed late into the night with the soldier<br />

and the Judge Advocate (JA), working<br />

with her on her testimony and, when the<br />

soldier asked for her continued support<br />

throughout the trial, she attended <br />

Military Child Education Coalition, US<br />

Taking care of the children<br />

■ Addresses the needs of military children<br />

■ Provides mentors who have similar experiences<br />

■ Supports local programmes and initiatives<br />

Research in the USA has shown that a child from a military<br />

family will change schools on average between six and<br />

nine times during their primary years of education alone<br />

and that this might include overseas postings. Some two<br />

million children currently face this reality, with their frequent<br />

and potentially damaging educational upheaval often<br />

exacerbated by the emotional effects of being separated<br />

from a parent serving his or her country.<br />

Alarmed by the lack of available support for such children,<br />

in 1997 a group that included a former senior army<br />

commander created a now-flourishing organisation named<br />

the Military Child Education Coalition (MCEC). Its goals<br />

included raising awareness of the issue among military<br />

and educational circles, and helping families to deal with<br />

the demands of service life.<br />

A significant percentage of <strong>Serco</strong>’s North American<br />

employees hail from a military background. <strong>Serco</strong>’s<br />

Rich Gilligan, Vice President MCEC Project Support says<br />

this gives them a natural empathy with the issues<br />

experienced by many military children.<br />

This instant connection with MCEC continued when<br />

<strong>Serco</strong> colleagues proposed supporting its activities to<br />

Chief Executive Ed Casey. “We didn’t even take a minute,”<br />

says Rich. “He just said: ‘You got me.’”<br />

<strong>Serco</strong>’s involvement with the charity has included backing<br />

events at MCEC’s annual conference as a primary sponsor,<br />

a commitment worth more than $100,000 in sponsorship<br />

to date. It has also provided support for local programmes<br />

and community initiatives staged near its major operating<br />

sites, by encouraging its employees to get involved.<br />

“We look for what we at <strong>Serco</strong> can do, beyond providing<br />

dollars,” says Michael Greer, also from <strong>Serco</strong>’s Military<br />

Family Program business unit. For example, by using its<br />

existing contracts to support US military personnel, <strong>Serco</strong><br />

can provide practical support to children entering new<br />

schools by identifying and introducing mentors who have<br />

been through the same life experiences.<br />

“We’ve committed, and committed hard”, says Rich,<br />

who concludes: “<strong>Corporate</strong> responsibility is not just about<br />

writing a cheque. Our people really care about these<br />

military kids.”<br />

PREVIOUS PAGE:<br />

Apprentices<br />

working on a<br />

helicopter at<br />

<strong>Serco</strong>-run<br />

RNAS Yeovilton<br />

CHILDREN<br />

FROM MILITARY<br />

FAMILIES (LEFT)<br />

face constant<br />

upheaval in<br />

their education,<br />

something that<br />

the Military Child<br />

Education Coalition<br />

seeks to minimise<br />

Casualty and Mortuary Affairs Operations Center, US<br />

Compassionate care<br />

■ Communicates with partners and families<br />

■ Co-ordinates travel and accommodation<br />

■ Provides advice and assistance<br />

Of the many contracts <strong>Serco</strong> has in place with the Army, the<br />

partnership under which the company provides operational<br />

support services to its Casualty and Mortuary Affairs<br />

Operations Center (CMAOC) demands, perhaps, the<br />

most compassion and sensitivity from its employees. The<br />

contract has been held since 2004 and was renewed in<br />

<strong>2008</strong>, but demand for the service has sadly increased.<br />

More than 130 <strong>Serco</strong> and sub-contractor employees now<br />

support the CMAOC, working alongside military personnel,<br />

compared with 48 when the contract commenced.<br />

Their responsibilities include managing information and<br />

communications when a soldier is wounded or killed, and<br />

accounting for, cleaning and forwarding personal effects<br />

to family members when the worst happens.<br />

The demanding role carried out by Army Casualty and<br />

Mortuary Affairs Specialist Brandon Batt is just one example<br />

of the services provided by the CMAOC. Spending nights,<br />

weekends and holidays assisting soldiers wounded in Iraq<br />

and Afghanistan, Brandon found small ways to make these<br />

people more comfortable. He also coordinated travel and<br />

accommodation for their families, and provided advice and<br />

assistance on everything from passports to finances.<br />

“Brandon epitomised service excellence at <strong>Serco</strong>,” says<br />

<strong>Serco</strong> CMAOC Project Director Col (Ret.) Dennis Duffie.<br />

SSAFA, UK<br />

Charity begins at home<br />

<strong>Serco</strong> is a proud supporter of the UK-based Soldiers, Sailors,<br />

Airmen and Families’ Association (SSAFA). Founded in 1885,<br />

it provides invaluable support to current and former service<br />

personnel and their families.<br />

More than 50,000 people approach the charity each year,<br />

seeking advice or financial assistance. <strong>Serco</strong> sponsors<br />

SSAFA’s ‘Big Brew Up’, an annual fund-raising drive. In<br />

<strong>2008</strong>, more than 400 tea parties were staged by the charity’s<br />

supporters, raising more than £100,000, up from £75,000 in<br />

2007. “SSAFA is extremely grateful to <strong>Serco</strong> for its generous<br />

sponsorship of this event,” says the charity. “The sponsors<br />

are key to making it happen.”<br />

<strong>2008</strong> at a glance<br />

The Family Support Program, US<br />

<strong>Serco</strong> employees are regularly exceeding the terms of their contracts to<br />

help the families of military personnel in the US and around the world<br />

Wounded Warrior Program, US<br />

Supporting injured Marine Corps personnel as they embark on the road to recovery<br />

Paradigm Secure Communications Team, UK<br />

Contractors on Deployed Operations (CONDO) employees are working in Iraq and<br />

Afghanistan to ensure military personnel and their families can communicate<br />

“By using its existing contracts to support<br />

US military personnel, <strong>Serco</strong> can provide<br />

practical support to children entering new<br />

schools by identifying and introducing<br />

mentors who have been through the<br />

same life experiences.”<br />

18 | <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Review</strong> | <strong>2008</strong><br />

www.serco.com | 19


People<br />

court each day. The soldier later told the JA<br />

that, without Jo’s support, she would not<br />

have been able to get through the ordeal.<br />

It’s also not unusual for <strong>Serco</strong> people to<br />

step outside their contracted role, should<br />

the need arise. As a Personal Financial<br />

Manager in Atsugi, Japan, Brad Morgan’s<br />

normal working day consists of teaching<br />

military personnel and their spouses<br />

about the basics of budgeting, credit<br />

management, car and home buying,<br />

and retirement planning.<br />

But after one of his pupils lost her<br />

husband, who had been deployed<br />

overseas in the Navy, Brad stepped in<br />

to help when the situation became<br />

overwhelming, exacerbated by her lack of<br />

English. From making final arrangements<br />

for the deceased to arranging grief<br />

counselling and navigating the insurance<br />

maze to ensure she received payment,<br />

Brad supported her from start to finish.<br />

Online and on the front line<br />

While it’s the human touch that helps<br />

resolve many of the problems facing<br />

military personnel and their families,<br />

sophisticated technology also has an<br />

important role to play. By ensuring they<br />

can communicate with each other on<br />

a regular basis, it is key to maintaining<br />

the morale of those serving on the front<br />

line – including <strong>Serco</strong> employees.<br />

A key part of the EADS Astrium-led<br />

Paradigm Secure Communications<br />

team that provides access to three<br />

SKYNET 5 satellites, <strong>Serco</strong> delivers a<br />

range of services that provide assured<br />

communications between military<br />

commanders in the UK and troops<br />

deployed in theatre.<br />

As well as providing network operations<br />

at Paradigm’s two ground stations at<br />

Hampshire and Wiltshire, and managing<br />

security and logistics at the sites,<br />

<strong>Serco</strong> employees are working alongside<br />

those on the front line, to ensure that <br />

EMPLOYEES AT<br />

THE WOUNDED<br />

WARRIOR CALL<br />

CENTRE (RIGHT)<br />

offer support and<br />

a friendly voice to<br />

US Marine Corps<br />

personnel and<br />

their families<br />

(see page 23)<br />

Army Career and Alumni Program, US<br />

Smoothing the path to civilian life<br />

■ Has helped more than two million soldiers since 1991<br />

■ Offers advice on financial, health and employment issues<br />

■ Employs 200 personnel at 52 sites around the world<br />

The transition from military service to civilian life can be a<br />

difficult process, but for US Army personnel the journey<br />

has been smoothed by <strong>Serco</strong>, which has almost two<br />

decades’ experience of supporting the service and<br />

advising its personnel on how to make this change.<br />

The Army Career and Alumni Program (ACAP) is <strong>Serco</strong>’s<br />

longest running US contract. Since it started in 1991,<br />

ACAP has helped more than two million soldiers back into<br />

civilian life. Its personnel offer leaving or retiring soldiers<br />

information on matters as diverse as managing their<br />

finances and accessing health care, and assist them in<br />

seeking new employment by, for example, helping them<br />

write their résumé and prepare for interviews.<br />

The contract employs around 200 people at 52 sites in<br />

the US and around the world, with the majority of these<br />

being counselling employees with Master’s degree<br />

qualifications. “Our employees are very well educated,<br />

part and parcel of the military culture and very motivated,”<br />

says Steve Sultan Vice President and Program Manager,<br />

and an ex-army colonel with 20 years’ military service<br />

behind him. He says that ACAP delivered services to<br />

almost 130,000 active and reserve army personnel in <strong>2008</strong>.<br />

While the number of people who pass through the system<br />

each year remains fairly constant, the volume can increase<br />

markedly when a large rotation occurs after an overseas<br />

deployment and soldiers decide to leave within a 90-day<br />

period, triggering a requirement to receive mandatory<br />

training under the ACAP contract. One such example<br />

came in October 2007, when a 12-strong ACAP team at<br />

Fort Campbell, Kentucky, was required to demonstrate<br />

its adaptability in the face of a massive spike in activity.<br />

Contractor Installation Manager Nikia Simon was<br />

required to come up with a way of delivering briefings to a<br />

daunting 4,000 soldiers within a three-month window, or<br />

80 per working day. Her team rose to the challenge, and<br />

feedback from the soldiers was overwhelmingly positive,<br />

with 98% expressing satisfaction with the assistance<br />

that they had received. “Behind every winning team is a<br />

winning coach,” says ACAP Project Director Diane Harley.<br />

“At Fort Campbell ACAP, that person is Nikia Simon.”<br />

Pulse Award winner: Pichet Samarapoom<br />

Pichet joined <strong>Serco</strong> Dubai Metro from Bangkok, his first role outside his home<br />

country.Through determination and sheer hard work he overcame considerable<br />

professional and personal challenges while showing remarkable calmness<br />

and professionalism. He has taken ownership of the recruitment of employees<br />

from far east Asia and has taken personal responsibility for the welfare of his<br />

colleagues, providing technical expertise through openness and good humour.<br />

Back to business<br />

<strong>Serco</strong>’s provision of support to Wounded Warriors (see page 23) includes trying to<br />

help them in their business ambitions after they have left the armed forces. In 2004,<br />

the US government outlined a goal to place 3% of all federal contracts with small<br />

businesses owned by veterans and service-disabled veterans. In November <strong>2008</strong>,<br />

the Department of Defense’s Office of Small Business Programs presented <strong>Serco</strong> with<br />

an award recognising its work in increasing subcontracting opportunities, after the<br />

company recorded totals of 10% and 6.6% of contracts placed respectively in 2007.<br />

20 | <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Review</strong> | <strong>2008</strong><br />

www.serco.com | 21


People<br />

RNAS Yeovilton, UK<br />

Training tomorrow’s experts<br />

■ Station repairs and maintains military aircraft<br />

■ Established apprenticeship scheme in 2001<br />

■ Scheme has double the national retention rate<br />

At the Royal Naval Air Station in Yeovilton, <strong>Serco</strong>’s<br />

long-term commitment to the local community is clear<br />

to see. The company has 300 employees at the site,<br />

delivering services ranging from the repair and<br />

maintenance of aircraft – such as AgustaWestland Lynx<br />

and Sea King helicopters returning from combat duty –<br />

to fuel delivery and engine support.<br />

And when, in 2001, its managers identified a looming<br />

skills shortage in the local job market, <strong>Serco</strong> established<br />

the Advanced Apprenticeship scheme. Accredited to<br />

deliver National Vocational Qualification (NVQ) up to<br />

Level 4 standard across a range of engineering and<br />

management areas, the initiative secured government<br />

approval and funding from the Learning and Skills Council<br />

(LSC) and its first intake of students – all recruited from<br />

the local community – entered training in 2002.<br />

Typically, around 10 applications are received for each<br />

place on the three-year course. Of the 11 students who<br />

passed the course in July 2006, nine remain in<br />

full-time employment with <strong>Serco</strong>, one has become an<br />

Air Engineering Technician in the Royal Navy and one<br />

is studying for an Aerospace Engineering degree, funded<br />

by <strong>Serco</strong> and with the guarantee of full-time employment<br />

for at least a year after graduation.<br />

A further eight apprentices have completed the course<br />

in the last two years. Six are now working at the site, one<br />

works for an aerospace company in Northern Ireland<br />

and one has been sponsored by <strong>Serco</strong> to read a Masters<br />

Degree in Aerospace Engineering with Management.<br />

Thirteen more apprentices are currently undergoing<br />

training and such has been the success of the programme<br />

– at 92%, its retention rate is almost double the national<br />

average for such schemes – that Roy Lusted, Contract<br />

Support and Training Manager, is now involved in a<br />

working group that is investigating the feasibility of<br />

establishing similar schemes for other <strong>Serco</strong> operations<br />

around the UK.<br />

“This has been a flag waver for apprenticeships and a<br />

great asset,” says Roy. “We want these people to become<br />

tomorrow’s engineers, supervisors and managers.”<br />

their communications equipment<br />

remains in working order.<br />

Fifty support personnel are deployed<br />

in Afghanistan and Iraq at any one time,<br />

working under the Contractors on<br />

Deployed Operations (CONDO) model.<br />

“They are going to a war zone, and are<br />

under the jurisdiction of the MoD,” says<br />

Overseas Support Manager Tony Alleyne.<br />

<strong>Serco</strong> was first contracted by Paradigm<br />

in 2001, to provide welfare services<br />

known as ‘WelComE’which allowed<br />

troops to telephone home from specially<br />

equipped cabins. In the past five years, it<br />

has assisted in substantially improving<br />

these services, which are now widely<br />

available. A recent effort has introduced<br />

a WiFi capability, enabling personnel at<br />

many sites to connect to the Internet from<br />

their bed spaces using their own laptops.<br />

Among the comments received in praise<br />

of the new service, one soldier notes:<br />

“It is a luxury in this environment.”<br />

In the event of an accident or incident,<br />

Richie Vella, SKYNET 5 Network Director<br />

oversees efforts to immediately remove<br />

an employee from the country, with an<br />

emergency contingency procedure<br />

coming into effect. Seven employees<br />

have required such help within the last<br />

five years, underlining the rare nature of<br />

such events, and support and counselling<br />

has been offered in all instances.<br />

“We have strong managers in theatre,<br />

and we really have to look after their<br />

welfare,” says Liz Hammond, <strong>Serco</strong>’s<br />

HR Manager for the SKYNET 5 service.<br />

Mike Brimson, Operations Director<br />

Space for <strong>Serco</strong>, says: “We have had<br />

three or four examples where maybe<br />

a rocket has damaged equipment and<br />

our guys went straight in.”<br />

AT RNAS YEOVILTON (ABOVE),<br />

the Advanced Apprenticeship scheme<br />

developed by <strong>Serco</strong> ensures the talent<br />

pool won’t run dry<br />

A friendly voice<br />

An inevitable consequence of the high<br />

operational tempo being maintained<br />

by the US armed forces in Afghanistan<br />

and Iraq is that some will sustain injuries.<br />

For injured US Marine Corps personnel<br />

and their families, a support mechanism<br />

called the Wounded Warrior Program<br />

is there to support and help them on the<br />

road to recovery.<br />

Implemented by the Marine Corps and<br />

<strong>Serco</strong> in 2007, the Wounded Warrior Call<br />

Center handles more than 900 telephone<br />

calls per week. Educated to degree level<br />

or its equivalent, these employees have<br />

an innate understanding of Marine<br />

Corps values and attitudes. Their aim is<br />

to provide immediate answers to<br />

enquiries but, when this is not possible,<br />

they conduct the necessary research<br />

and then ring the caller back.<br />

But <strong>Serco</strong>’s delivery of the Wounded<br />

Warrior contract runs beyond this<br />

valuable early support; its employees<br />

now call affected individuals one year<br />

after the initial contact – longer if needed<br />

– to find out if they need additional help.<br />

Employees at the 24-hour call centre in<br />

Dumfries, Virginia – recently renamed<br />

the ‘Sergeant Merlin German Wounded<br />

Warrior Call Center’ in honour of the<br />

inspirational Marine who died in April<br />

<strong>2008</strong>, aged just 22 – made more than<br />

35,000 such outreach calls to wounded<br />

Marines and Sailors in the 12 months<br />

from November 2007, and received an<br />

additional 4,200 calls under the service.<br />

In all, they have now contacted more than<br />

8,000 of the 9,500 marines injured since<br />

2001 to ask about their welfare.<br />

In February <strong>2008</strong>, Lt Gen Ronald S<br />

Coleman, Deputy Commandant for<br />

Manpower and Reserve Affairs, which<br />

helps plan, direct, coordinate and<br />

supervise both active and reserve forces,<br />

said of the support and services that<br />

<strong>Serco</strong> is providing and the employees it<br />

has hired: “<strong>Serco</strong> has fully embraced our<br />

mantra of Maines taking care of Marines.<br />

They are an integral part of our Wounded<br />

Warrior Regimental Team.”<br />

In June <strong>2008</strong>, Colonel Gregory A D<br />

Boyle, Commanding Officer of the<br />

Wounded Warrior Regiment, reinforced<br />

the message in a letter to Vic Bako,<br />

Program Manager and former Army<br />

Officer: “When we started this contract<br />

we had no way to know what the future<br />

would hold. I wanted to thank you for the<br />

flexibility you have shown in ensuring<br />

Marines get the care they need.<br />

“Some contractors advertise a ‘one<br />

team, one fight’ mindset. To <strong>Serco</strong>, this<br />

is more than just a slogan, it is a culture.”<br />

Atomic Weapons Establishment, UK<br />

A beacon of learning<br />

The Apprentice Academy at the Atomic Weapons<br />

Establishment (AWE), a <strong>Serco</strong> joint venture business in<br />

Berkshire, England, has been awarded Beacon status by<br />

the Learning and Skills Improvement Service (LSIS). It is<br />

the Academy’s second major accolade in <strong>2008</strong>, its scheme<br />

having been assessed as ‘outstanding’ by an Ofsted<br />

inspection earlier in the year.<br />

LSIS is the government body driving improvements in<br />

learning and skills across the UK and is the hallmark of a<br />

standard of excellence in learning providers. Beacon status<br />

recognises excellence and innovation, and is awarded to<br />

outstanding organisations within the further education system.<br />

AWE’s Apprentice Academy trains young people for roles<br />

in maintenance, electrical, electronic and mechanical<br />

engineering. “AWE is one of only 34 work-based learning<br />

providers across the UK to have been assessed at this<br />

level,” explains Marcus Hutchings, the company’s<br />

Technical and Craft Training Manager.<br />

“As well as recognising our achievements, it will also allow<br />

us to drive improvement within the skills arena by sharing<br />

best practice with other organisations,” he says.<br />

RAF Fylingdales, UK<br />

Putting students to the test<br />

Eight A-level students from Bradford gained an exclusive<br />

insight into life at RAF Fylingdales in Yorkshire, England,<br />

when they were chosen for a week’s work experience in July<br />

<strong>2008</strong> at the <strong>Serco</strong>-operated site, which provides a ballistic<br />

missile warning and space surveillance service to both the<br />

UK government and US authorities.<br />

The <strong>Serco</strong>-led initiative is now in its fourth year and<br />

competition for places is fierce. Candidates must prove their<br />

competency in maths and physics as well as demonstrating<br />

an ability to work both as team leaders and team members.<br />

The successful students took part in exercises with<br />

the RAF Challenge Team – in which their fitness, logistics,<br />

intelligence and engineering abilities were tested – as well<br />

as with MOD Police and Fire Services. They also received<br />

a briefing on a NASA space vehicle and learned what<br />

a Solid State Phased Array Radar (SSPAR) does.<br />

“When the students come for their week, everyone gets<br />

involved,” says Hugh Morgan, Support Director Defence<br />

Operations at Fylingdales.<br />

Skills for You<br />

<strong>Serco</strong> has always believed in the importance of investing in the skills and talent<br />

of its people, who are the foundation of its business. In 2004, the company<br />

launched Skills for You, a UK-based programme aligned to the government’s<br />

Skills for Life scheme and designed to improve literacy, numeracy and IT<br />

capabilities. To date, more than 600 <strong>Serco</strong> people – including scientists,<br />

firefighters, electricians and cleaners – have achieved a qualification, with a<br />

29.61% increase in their numbers since 2005. The scheme is currently being<br />

extended to include National Vocational Qualifications and apprenticeships.<br />

“<strong>Serco</strong> has fully embraced our mantra of<br />

Marines taking care of Marines. They are<br />

an integral part of our Wounded Warrior<br />

regimental team.”<br />

Lieutenant General Ronald S Coleman, Deputy Commandant<br />

for Manpower and Reserve Affairs<br />

22 | <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Review</strong> | <strong>2008</strong><br />

www.serco.com | 23


Community<br />

Home Affairs<br />

The transformers<br />

Dedicated <strong>Serco</strong> employees<br />

are helping offenders in the<br />

UK and Australia turn their<br />

lives around, inspiring them<br />

before easing them back into<br />

society, writes SONIA PURNELL<br />

24 | <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Review</strong> | <strong>2008</strong> www.serco.com | 25


Community<br />

IT IS ALL TOO EASY for those on the<br />

outside to judge prisons, young offender<br />

institutions and other detention centres<br />

on the rare occasions that things go<br />

wrong – they, after all, make the headlines.<br />

And noone is denying that keeping<br />

people behind bars is a challenging,<br />

often gruelling occupation.<br />

But visitors to a <strong>Serco</strong> secure centre,<br />

whether north or south of the equator,<br />

cannot help but be struck by the sheer<br />

cheerfulness of the employees; their<br />

energy, determination and optimism is<br />

quite infectious. There is a real sense of<br />

a personal vocation, a desire to reassess<br />

conventional wisdom, to pioneer new<br />

ideas, in short to go that extra mile.<br />

While the priority must always be to<br />

ensure safety both for those inside the<br />

centres and also the public at large,<br />

<strong>Serco</strong> is also driven by the need to<br />

educate and train, to help people turn<br />

their lives around before resettling them<br />

within the community with as much<br />

support as possible.<br />

It is an entrepreneurial culture that<br />

attracts an extraordinarily committed<br />

range of people, drawn not by pay or<br />

perks – employees at <strong>Serco</strong>-run secure<br />

centres do not earn more than those<br />

in the public sector; they are, however,<br />

empowered and encouraged to innovate.<br />

Adopting a dynamic approach<br />

“We try to recruit people who are not<br />

interested in simply being static guards,<br />

but in offering dynamic security. That<br />

means actively engaging with individuals<br />

in our care to understand their motivations<br />

and their fears,” explains John Smith,<br />

Director of Change and Operations for<br />

<strong>Serco</strong>’s UK residential contracts.<br />

“We know it’s safer and better to engage<br />

with prisoners than to confront them. We<br />

encourage them to accept responsibility<br />

for their previous actions and then think<br />

seriously about how they can turn <br />

PREVIOUS PAGE:<br />

the vibrant result<br />

of a painting<br />

workshop at<br />

Acacia Prison<br />

INDIGENOUS<br />

PRISONERS AT<br />

ACACIA PRISON<br />

(RIGHT) receive<br />

skills training<br />

and tailor-made<br />

education<br />

programmes<br />

Acacia Prison, Australia<br />

Rising to the challenge<br />

■ An 800-bed, medium-security prison in Western Australia<br />

■ Adapting to assimilate Indigenous prisoners<br />

■ Providing tailor-made educational programmes<br />

The size of central Europe, Western Australia is home to<br />

no fewer than 40 Indigenous language and dialect groups,<br />

each with its own culture.<br />

So when <strong>Serco</strong> took over Acacia Prison, on the outskirts<br />

of Perth, just over two years ago, the fact that 35% of its<br />

population was Indigenous presented particular challenges<br />

and consequently the need for innovative thinking. Indigenous<br />

people account for 3% of the Australian population, but more<br />

than 40% of the prison population, an over-representation<br />

that is sometimes the consequence of high levels of social<br />

deprivation, unemployment, drug and alcohol addictions,<br />

and lack of access to services.<br />

Acacia’s Director, Andy Beck took the highly unusual<br />

step of escorting Paul Mahoney, <strong>Serco</strong> Asia Pacific’s Chief<br />

Operating Officer, and John Smith, UK Director of Operations<br />

– Residential (Home Affairs), to a remote corner of the Pilbara<br />

region to discuss with a group of Elders the problems facing<br />

their communities and how to prepare Indigenous prisoners<br />

for release. “The long journey was more than worth it,” says<br />

Andy, who has recently adopted a new approach that<br />

addresses the needs of Acacia’s Aboriginal prisoners,<br />

utilising the power of their culture to restore many of the<br />

values that underpin a strong Aboriginal society and to<br />

encourage cooperation with the prison regime.<br />

Indigenous Assistant Director Vanessa Davies has<br />

responsibility for these prisoners. “Vanessa has developed<br />

an action plan that tackles many of the major issues<br />

including poor health, low levels of education and training,<br />

and spiritual and cultural needs,” says Andy.<br />

The prison has an Indigenous Advisory Board made up<br />

of prominent Indigenous Community Leaders who offer<br />

advice and guidance to help shape relevant services for<br />

Aboriginal prisoners. Through Community partnerships,<br />

they are now offered tailor-made education programmes,<br />

delivered by skilled educational employees, including a<br />

highly respected Indigenous Elder. “The prisoners look up<br />

to the Elders, who come in for traditional story-telling<br />

sessions to help get the message across about offending<br />

behaviour and the need to turn their lives round,” says Andy.<br />

Many Indigenous prisoners have had limited access<br />

to, and are wary of, Western medicine. Yet chronic health<br />

problems mean their average life expectancy is low at<br />

around 59 years for males and 65 for females (compared<br />

with 77 and 82, respectively, for Australia as a whole).<br />

Acacia worked with the Derbal Yirrigan Aboriginal Health<br />

Organisation to bring the Marman Pit Stop to the prison.<br />

Renowned for its success in getting Indigenous people to<br />

undergo crucial health checks, Pit Stop aligns parts of the<br />

body to parts of a car and prisoners are encouraged to get<br />

their bodies ‘serviced’, something they can relate to.<br />

The obligation to attend family funerals can make<br />

incarceration particularly difficult for Indigenous prisoners.<br />

“They believe that if they don’t attend, it can result in<br />

retribution or ‘pay-back’,” he says. “Once a prisoner thinks<br />

someone has called in bad spirits as part of ‘pay-back’, they<br />

can become so fearful they literally lose the will to live. When<br />

that happens, a community Elder is brought in to conduct a<br />

smoking ceremony – burning eucalyptus leaves and reciting<br />

special words to ward off evil spirits.<br />

Acacia’s pioneering work was recognised in <strong>2008</strong> when<br />

it was ranked as one of only two high-performing prisons<br />

in Western Australia in the Inspector of Custodial Services’<br />

<strong>2008</strong> annual report.<br />

“We have given a high priority to addressing the needs of<br />

our Indigenous prisoners,” says Andy. “No other prison in<br />

the state offers programmes like ours.”<br />

“Indigenous people account for 3% of the<br />

Australian population but more than 40% of the<br />

prison population, an over-representation that<br />

is sometimes the consequence of high levels of<br />

social deprivation, unemployment, drug and<br />

alcohol addictions, and lack of access to services.”<br />

<strong>2008</strong> at a glance<br />

Acacia Prison, Australia<br />

Recognising the complex needs of its Indigenous prisoners<br />

and integrating their culture within the prison regime<br />

Borallon Correctional Centre, Australia<br />

Training prisoners to help solve a manpower shortage<br />

HMP and YOI Doncaster, UK<br />

Employing a former prisoner as a mentor to other prisoners<br />

26 | <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Review</strong> | <strong>2008</strong><br />

www.serco.com | 27


Community<br />

their lives round. And our selling point is<br />

that we allow and encourage employees<br />

to explore ever better ways of doing this.”<br />

Innovation is everywhere, whether it’s<br />

HMP Lowdham Grange’s ambition to<br />

become the UK’s first carbon-neutral<br />

prison or the groundbreaking work with<br />

Indigenous prisoners in Australia. Many<br />

of the old orthodoxies are being<br />

challenged, with new ideas constantly<br />

being road-tested by people wanting<br />

to improve existing systems.<br />

“You have to understand prison culture<br />

and psychology,” says John. “A lot of<br />

prison governors, for example, have a<br />

Masters in Criminology and Management<br />

from the University of Cambridge. They<br />

apply this knowledge to great effect in the<br />

very hands-on and practical environment<br />

of a prison.” Gail Johnson, Head of<br />

<strong>Corporate</strong> Social <strong>Responsibility</strong> at <strong>Serco</strong>,<br />

adds that “It is inherent in most people<br />

to want to do more.”<br />

Where possible, employees are<br />

encouraged to get involved with<br />

charitable and local community work,<br />

supported by the <strong>Serco</strong> Foundation.<br />

A volunteering policy standard has been<br />

developed and is applicable globally.<br />

That caring approach, encompassing<br />

the needs of the community at large,<br />

informs all of <strong>Serco</strong>’s operations. The<br />

company’s goal is to reinvest 1% of its<br />

pre-tax profits into the community every<br />

year through dozens of local projects and<br />

charitable donations, recorded through<br />

a global reporting process.<br />

News of <strong>Serco</strong>’s compassionate ‘can<br />

do’ approach travels far and has helped<br />

it win hard-fought contracts in Australia<br />

to take over two challenging prisons,<br />

Acacia in Western Australia and Borallon<br />

Correctional Centre in Queensland (see<br />

case studies, pages 26-27 and 29).<br />

<strong>Serco</strong>’s Chief Executive Officer in<br />

Australia, David Campbell, sums up the<br />

<strong>Serco</strong> contribution in this part of the <br />

AT DONCASTER<br />

PRISON (RIGHT),<br />

Cass Vernon<br />

(seated third from<br />

left) is a mentor<br />

to other prisoners<br />

– see page 30;<br />

specialist training<br />

has enabled<br />

prisoners at<br />

Borallon (far right)<br />

to help solve a<br />

manpower shortage<br />

in Queensland<br />

Borallon Correctional Centre, Australia<br />

Turning negatives into positives<br />

■ A medium- and high-security prison near Brisbane<br />

■ Forward thinking ensures skills that will benefit all<br />

■ Training scheme reduces costs and targets reoffending<br />

It is certainly unusual for a prison to provide the solution to<br />

one of the outside world’s problems. But, in its first year under<br />

<strong>Serco</strong>’s tenure, Borallon Correctional Centre – an hour outside<br />

of Brisbane, Queensland – has been able to do just that.<br />

Rapid population growth in Queensland combined with<br />

ageing infrastructure has prompted a multi-billion dollar<br />

upgrade of the local Ipswich motorway. But SAFElink,<br />

the consortium that won the contract to build the road,<br />

encountered a serious industry-wide manpower shortage<br />

that challenged the project. Inspired thinking at Borallon<br />

solved the crisis by giving selected prisoners specialised<br />

training, a Certificate II in Civil Construction, and the chance<br />

to learn skills that will enable them to walk into a full<br />

traineeship and employment on release.<br />

“We chose ten prisoners for the pilot group and each went<br />

through a rigorous selection process,” said Liesl Turley,<br />

Borallon’s Offender Education Manager. “We didn’t want to<br />

set anyone up for failure, so we’ve closely monitored each<br />

prisoner’s progress and given them support when needed.”<br />

Borallon went on to supply ‘anti-gawking’ screens (for use in<br />

road works) made by inmates at the prison’s own workshops.<br />

The first batch of 1,500 was delivered on time and on budget,<br />

and there are more orders on the way.<br />

“We give our prisoners a wage and then pass our profits<br />

back to our customer, the state of Queensland. By training<br />

our prisoners in this way – the only prison in Queensland to<br />

do so – we are making them less likely to reoffend on release.<br />

We are also reducing the cost of the prison,” explains Guy<br />

Baulf, Director, Borallon Correctional Centre. “This initiative,<br />

amongst others, is aimed at reducing reoffending. The <strong>Serco</strong><br />

approach is a positive one that goes beyond the contract to<br />

achieve results. I’m glad to say the prisoners are embracing it.”<br />

<strong>2008</strong> Pulse Award Winners: BACS<br />

The <strong>Serco</strong> Behaviour and Attendance Team at Education Bradford developed<br />

Behaviour and Attendance Collaboratives (BACs) across the Bradford district to<br />

support a “community of schools” with a collegiate responsibility for meeting the<br />

needs of young people. BACs set targets to reduce exclusions, with a particular<br />

focus on vulnerable children. A Bradford headteacher called the initiative “one of<br />

the most powerful opportunities available to schools to bring about change”.<br />

“We give our prisoners a wage [for the<br />

anti-gawking screens they build] and<br />

then pass our profits back to our customer,<br />

the state of Queensland. By training them<br />

in this way, we are making them less likely<br />

to reoffend on release.”<br />

Guy Baulf, Director, Borallon Correctional Centre<br />

28 | <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Review</strong> | <strong>2008</strong><br />

www.serco.com | 29


Community<br />

Ashfield Young Offenders Institution, UK<br />

Putting young people first<br />

■ Europe’s largest custodial centre for juveniles<br />

■ Helps offenders understand why they have lost their liberty<br />

■ Encourages and inspires them to change their lives<br />

Wendy Sinclair does not look or sound like a prison governor;<br />

in fact she originally trained as a teacher. As she sits in her<br />

office at Ashfield Young Offenders Institution, outside Bristol,<br />

she compares the place to “a darn good college within a<br />

secure setting”. Her obvious humanity and warmth set the tone<br />

at Ashfield, which takes up to 400 15 to 18 year-olds. “We treat<br />

the young person first and the offender second,” she explains.<br />

Those detained are helped to understand that they have lost<br />

both their liberty and control over their lives as a consequence<br />

of their actions. At the same time <strong>Serco</strong> employees give them<br />

hands-on encouragement and inspiration to change their lives.<br />

Ashfield’s primary aim is to prevent reoffending, firstly<br />

through education, but also via a holistic approach including<br />

dealing with health issues, family problems and substance<br />

abuse. There is also great emphasis on restorative justice,<br />

where offenders are brought together with their victims in order<br />

to understand how crimes affect others and to learn how to<br />

avoid making the same mistake again. It seems to be working<br />

– of the first 400 who underwent the restorative justice<br />

programme, 97% did not repeat the offence.<br />

Ashfield has also been a pioneer in bringing in outside<br />

bodies to offer training, inspiration, work experience and<br />

even, ultimately, jobs. Wessex Water took on a young person<br />

for the last 12 weeks of his sentence and he went on to get<br />

a manager’s job with them. “We really value the support of<br />

such companies,” says Wendy.<br />

Hailed by a 2007 inspection report as a ‘model of best<br />

practice’ in this area, Ashfield is constantly searching for new<br />

partners – and beneficiaries. “The local social club in the<br />

village was falling apart,” explains Wendy, “so we sent our<br />

young people to do it up. They are proud of the job they’ve<br />

done and it’s also payback to the wider community.”<br />

world: “A more stimulating culture where<br />

people feel they can personally make<br />

a difference.”<br />

In <strong>2008</strong>, the Western Australia Inspector<br />

of Custodial Services, Professor Richard<br />

Harding said in his Report No. 53 that<br />

Acacia was “on the cusp of becoming a<br />

very good prison”. He particularly noted<br />

the ‘impressive step’ taken by Acacia in<br />

its resettlement and re-entry work – an<br />

area in which <strong>Serco</strong> repeatedly excels<br />

across the globe.<br />

A bridge to the community<br />

HMP & YOI Doncaster, a Category C<br />

prison in northern England, is rightly held<br />

as having an exemplary approach, one<br />

it has refined for the past five years and<br />

continues to improve and expand upon.<br />

Its Director, Brian Anderson, reinforces<br />

this important, but oft-overlooked aspect<br />

of prison, by allowing employees to<br />

undertake charitable work on resettling<br />

prisoners in <strong>Serco</strong> time.<br />

The work – including mentors, a drop-in<br />

centre, and continual advice and support<br />

– reflects the desire to go both beyond<br />

the contract and the prison gate.<br />

“We want to be the bridge to a full return<br />

to the community,” says Brian.<br />

The life of Cass Vernon, 51, was<br />

transformed when, following his release<br />

from prison, he made contact with the<br />

Outreach Team at <strong>Serco</strong>’s Resettlement<br />

Office. With <strong>Serco</strong>’s help, Cass was<br />

enrolled as a volunteer at Doncaster,<br />

where he became a mentor to prisoners<br />

and is now paid part-time to give valuable<br />

advice to ex-prisoners on how to stay out<br />

of trouble and sort out their lives.<br />

“I wanted to change for the sake of my<br />

three daughters,” he says. “But I could<br />

not have done it without the continuous<br />

support from the guys at <strong>Serco</strong>. They<br />

believed in me.” In just six months, Cass<br />

has helped 26 ex-offenders into secure<br />

accommodation – frequently a difficult<br />

hurdle for those coming out of prison. His<br />

example is inspiring others to follow suit,<br />

and <strong>Serco</strong> hopes that there will soon be a<br />

team of ex-prisoners such as Cass filling<br />

this vital role over a much wider area.<br />

The process, however, starts before<br />

release, with meticulous preparation for<br />

the big day. “We get Barclays Bank to<br />

come into the prison to set up bank<br />

accounts for prisoners approaching<br />

release,” explains Brian. “So many of them<br />

don’t have one, a problem that is often<br />

overlooked even though it’s very difficult<br />

to get a job without having an account.”<br />

Many of Doncaster’s pioneering<br />

programmes to give prisoners dignity<br />

and respect, while keeping them secure,<br />

have been widely admired and rolled out<br />

to other prisons. Its debt counselling<br />

service is also exemplary, as is its health<br />

and addiction work, particularly with<br />

black and ethnic minority prisoners.<br />

Finding the individual within<br />

Another <strong>Serco</strong> theme is the treatment<br />

of prisoners as individuals, right down to<br />

the youngest detainees at Hassockfield<br />

Secure Training Centre in the north of<br />

England, which takes children as young<br />

as 12 and up to the age of 18. Some of<br />

them have committed the most heinous<br />

of crimes, and yet hope is never lost,<br />

and each one is given opportunities and<br />

individual care.<br />

“Young people here are often steeped<br />

in gang mentality. Our challenge is to get<br />

them to think of themselves as individuals<br />

and to express themselves in ways that<br />

do not include aggression,” says Trevor<br />

Wilson-Smith, Director of Hassockfield.<br />

“The priority has to be security, but it<br />

would be wholly wrong to deny them the<br />

chance to express themselves as young<br />

people,” he adds. “When I’m asked to<br />

sum up our approach, I tell them we aspire<br />

to be like the perfect boiled egg; a hard<br />

exterior, but just soft enough inside.”<br />

Yarl’s Wood Immigration Removal Centre, UK<br />

Restoring dignity to its residents<br />

■ The UK’s major family removal centre<br />

■ Aims to restore respect, dignity and compassion to residents<br />

■ Offers skills training and a nursery with a high Ofsted rating<br />

The women and children detained at Yarl’s Wood Immigration<br />

Centre in Bedfordshire often don’t know when or whether they<br />

will be sent back to their countries of origin. Some will stay<br />

only a few hours, others for many months, but all are at an<br />

uncertain time in their lives and need a sensitive approach.<br />

Since it took over the contract in 2006, <strong>Serco</strong> has radically<br />

altered both the culture and conditions at the UK’s major<br />

family removal centre. Today incidents of self-harm, bullying<br />

and violence are few in what is recognised by inspectors and<br />

other outsiders as a brighter, calmer and more engaged<br />

environment than previously existed.<br />

<strong>Serco</strong> has worked hard to run the centre around core values<br />

of respect, dignity and compassion. The fundamental shift<br />

started with words – ‘residents’ replacing the term ‘detainees’<br />

– and moved through consultation, healthcare, education,<br />

independence and a symbolic but significant increase<br />

in freedom. “We have removed or pinned back 21 doors<br />

between units to allow the women greater freedom of<br />

movement,” says Director Dawn Elaine. “We wanted<br />

to reduce feelings of claustrophobia or imprisonment.<br />

Security remains paramount, but we try to normalise<br />

things as far as possible.”<br />

A tangible example of this is the brightly coloured nursery,<br />

which would not look out of place in any residential area in<br />

the UK. It has just achieved the highest rating from Ofsted –<br />

“just like the best private day nursery”, says Dawn.<br />

“Although the provision of child services is in the contract,<br />

we are proud to have gone way beyond that.”<br />

A great deal of thought has also gone into relationships<br />

with the adult residents, who have access to a library and<br />

all of the expected tuition, such as IT and basic literacy<br />

skills. There is also recognition that the environment is<br />

predominantly female. “The gym, with its aerobics classes,<br />

is geared up for women and we also have a hair and<br />

beauty salon.<br />

“People have a voice here, including a monthly consultative<br />

meeting with me and my management team,” Dawn explains.<br />

“The culture of employees actively engaging with residents<br />

ensures that many more issues are dealt with as they arise.”<br />

Hassockfield: contributing to the community<br />

Hassockfield Secure Training Centre contributes to the community at large by offering<br />

its employees support and encouragement to become members of County Durham<br />

and Darlington Fire and Rescue Service’s Retained Duty System. These are fully trained<br />

firefighters, often fully employed in other occupations, who respond to calls on a<br />

needs-only basis and are a key part of the UK’s Fire and Rescue Service. Hassockfield<br />

has also formed a Young Fire-fighters Association within the Centre, based on the Fire<br />

Service Manual for Youth Training and Development.<br />

“People have a voice here, including a monthly<br />

consultative meeting with me and my<br />

management team. The culture of employees<br />

actively engaging with residents ensures that<br />

many more issues are dealt with as they arise.”<br />

Dawn Elaine, Director, Yarl’s Wood Immigration Centre, UK<br />

30 | <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Review</strong> | <strong>2008</strong><br />

www.serco.com | 31


Environment<br />

Local Government<br />

Lean and green<br />

From installing ‘smart’ meters<br />

and sourcing sustainable fuels<br />

to creating less thirsty lawns,<br />

<strong>Serco</strong> is helping communities<br />

reduce their environmental<br />

impact, discovers DAVID ALLABY<br />

32 | <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Review</strong> | <strong>2008</strong> www.serco.com | 33


Environment<br />

WHEN BUSINESSES AS prominent<br />

as Coca-Cola and Deloitte turn to the<br />

same company for help in raising their<br />

environmental performance, it is perhaps<br />

more than coincidence.<br />

And when many in local government<br />

– those tasked to deliver on a target to cut<br />

80% of carbon emissions by 2050 – take<br />

on the same partner, it speaks volumes<br />

about the company’s influence.<br />

Sustainable development has become<br />

integral to <strong>Serco</strong>’s model for managing<br />

a better business. Its environmental<br />

agenda has been driven to date by the<br />

aspiration that it should operate with<br />

as light an impact on the environment<br />

as possible, and behave positively and<br />

proactively in the communities it touches.<br />

There is growing momentum<br />

internationally within <strong>Serco</strong> to manage<br />

impacts. This creates opportunities<br />

to lead and influence stakeholders in<br />

order to assure the supply chain and<br />

to enhance performance, supported<br />

by real-time data and environmental<br />

management systems.<br />

By doing this, the company believes<br />

it is securing the opportunity to create<br />

more value in future by embedding this<br />

type of thinking into its DNA.<br />

Customers, employees, suppliers,<br />

regulators, contractors and other<br />

stakeholders are consulted and actively<br />

involved in the way the company<br />

manages sustainability issues. This takes<br />

the form of customer satisfaction surveys<br />

and the encouragement of employee<br />

innovation, as well as the standard<br />

regulatory regimes.<br />

Each of the group’s operating areas<br />

has identified sustainability priorities,<br />

in order to forecast where they expect<br />

to be in three years’ time, and to evaluate<br />

their customers’ agendas, for example,<br />

in relation to a carbon programme.<br />

Sustainable development is more<br />

critical to some of <strong>Serco</strong>’s services and<br />

clients than others, and those businesses<br />

have a marked drive to achieve and invest<br />

more in meeting that demand.<br />

<strong>Serco</strong> has had to report using a huge<br />

number of different operational metrics<br />

for individual services across 600 diverse<br />

worldwide contracts. More unified<br />

processes have emerged recently, with<br />

<strong>Serco</strong> Leisure, for example, consolidating<br />

data and technologies to maximise<br />

savings on critical utility consumption<br />

and costs (see case study, opposite).<br />

A carbon reduction strategy is now<br />

a firmly established and commercially<br />

successful feature of <strong>Serco</strong> Integrated<br />

Services’ (SIS) contract bids, as<br />

Director of SIS Sustainable Services<br />

Graeme Cameron explains: “We<br />

implemented a range of sustainable<br />

approaches internally during 2007,<br />

including the installation of energy<br />

efficiency technologies within our<br />

corporate offices and the development<br />

of a ‘sustainable suppliers forum’. In<br />

<strong>2008</strong>, we started to incorporate some<br />

of the ideas into the commercial offer.”<br />

Starting afresh<br />

A new contract with the London Borough<br />

of Newham highlights a fresh approach<br />

to the design and delivery of ground<br />

maintenance services.<br />

It proposes to include community park<br />

gardeners to provide a more welcoming<br />

and safer environment. By allocating<br />

permanent keepers to each park, and<br />

increasing their numbers, it will cut<br />

travelling time and carbon emissions.<br />

As part of <strong>Serco</strong>’s continuing strategy<br />

to reduce the negative impact of its<br />

operations on the environment, a key<br />

objective for 2009 is a 10% reduction on<br />

carbon emissions from local government<br />

environmental services vehicles.<br />

The London Borough of Hammersmith<br />

and Fulham is piloting electric street<br />

cleaning and tipper vehicles, while <br />

PREVIOUS PAGE<br />

AND RIGHT:<br />

<strong>Serco</strong> is making<br />

considerable<br />

energy savings<br />

at the leisure<br />

centres it runs,<br />

including<br />

Basingstoke<br />

Aquadrome,<br />

shown here<br />

<strong>Serco</strong> Leisure, UK<br />

Putting the leisure industry<br />

through its paces<br />

■ Running leisure centres and gyms across the UK<br />

■ Using smart metering to measure energy consumption<br />

■ Making significant carbon and energy savings at each site<br />

Even the treadmills at <strong>Serco</strong> Leisure-run gyms in the UK<br />

are performing 30% more efficiently after the group worked<br />

with a supplier to source motors that required less energy.<br />

In the past three years, Managing Director Keith Thomas<br />

has transformed the business through leadership<br />

commitment, employee engagement, developing capacity<br />

and using the most informative data. He has delivered<br />

important carbon and energy savings at more than 64 sites.<br />

At the core of the business lie detailed utility reports that<br />

compare usage with previous years and other centres,<br />

while highlighting anomalous usage. It’s not enough to<br />

compare month-on-month or year-on-year figures; energy<br />

consumption may fall in mild weather without any efficiencies.<br />

Comparative weekly figures between sites, however, reflect<br />

performance and tend to stimulate healthy competition<br />

between them as well as driving demand for innovation and<br />

technologies to cut carbon and waste.<br />

For instance, thermal imaging cameras that can spot heat<br />

loss have led to better insulation for pools, pumps, filters,<br />

pipes, walls and windows. Leisure centres have also<br />

been pilots for IMServ smart metering of utilities, involving<br />

real-time automated readings. These allow accurate<br />

measurement of electricity, gas and water use with a view<br />

to monitoring the effectiveness of improvement initiatives.<br />

By the end of <strong>2008</strong>, the division had reduced its electricity<br />

consumption from almost 29 million kWh in 2006 to 23.6<br />

million in <strong>2008</strong>, while gas consumption fell by more than<br />

six million to 80 million kWh*. CO2 emissions were reduced<br />

by 2,728 tonnes last year, on top of savings of 2,700 tonnes<br />

in 2007 and 2,500 tonnes in 2006.<br />

Many of the steps being taken to reduce consumption and<br />

bills are now second nature to employees, who are working<br />

to reduce the global carbon footprint further by informing<br />

customers of savings they can make at home.<br />

In pursuing a sustainable quality service, Keith has<br />

established an outstanding reputation for <strong>Serco</strong> Leisure,<br />

placed top in its sector – “at least two years ahead of the<br />

competition”– by the Carbon Trust.<br />

<strong>2008</strong> at a glance<br />

<strong>Serco</strong> Integrated Services, UK<br />

Reducing carbon emissions, streamlining street-cleaning services and improving<br />

recycling rates through teamwork, training and interaction with the community<br />

<strong>Serco</strong> Leisure, UK<br />

Combining technology and common sense to make considerable energy savings<br />

<strong>Serco</strong> Parks and Gardens, Australia<br />

Significantly reducing potable water consumption, recycling storm water and<br />

replacing traditional planting with drought-tolerant grasses<br />

34 | <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Review</strong> | <strong>2008</strong><br />

“There is growing momentum internationally<br />

within <strong>Serco</strong> to manage impacts. This<br />

creates opportunities to lead and influence<br />

stakeholders in order to assure the supply<br />

chain and to enhance performance,<br />

supported by real-time data and<br />

environmental management systems.”<br />

*kWh = kiloWatt-hour = 1000 watts used per hour<br />

www.serco.com | 35


Environment<br />

Milton Keynes will have the first electric<br />

sweeper vehicles. Newham, in East<br />

London, will have electric vehicles in its<br />

parks, which should generate a 30%<br />

carbon saving over the life of the contract.<br />

Milton Keynes is also aiming to reduce<br />

carbon emissions by 30% in the next<br />

year with advances that will include<br />

sustainably sourced biofuels for vehicles.<br />

Residential refuse collection is now<br />

being designed to optimise efficiency,<br />

using scientific modelling of rounds to<br />

reduce journeys. In Norfolk, the Breckland<br />

contract vehicles have been performing<br />

10% more efficiently in the pilot – no small<br />

feat, with refuse collection trucks across<br />

the industry running at just 4mpg.<br />

<strong>Serco</strong>’s pioneering approach to raising<br />

customer appreciation is active in Woking,<br />

in Surrey (see case study). Cited as best<br />

practice, it has been adopted by the<br />

Department for Communities and Local<br />

Government, and the Confederation of<br />

British Industry (CBI).<br />

The need for change<br />

Across the whole sustainability agenda<br />

a key challenge is to change behaviour.<br />

The <strong>Serco</strong>-sponsored Time to Waste<br />

research report offers solutions to the<br />

challenges facing the UK waste industry.<br />

Developed in association with the<br />

new Local Government Network, an<br />

independent local government think tank,<br />

the report argues that the UK needs to<br />

fundamentally rethink its policy if it is<br />

to solve the current landfill crisis and<br />

meet the national commitment to recycle<br />

50% of all waste by 2020.<br />

SIS has launched an environment<br />

badge for the Scout Association (see<br />

panel, far right) to engage young people<br />

and the community at large in taking<br />

responsibility for their neighbourhood.<br />

Similarly, many of the steps being<br />

taken at <strong>Serco</strong> Leisure sites to save on<br />

resources and costs can be replicated <br />

KEEPING PARKS<br />

AND STREETS<br />

clean and neat<br />

in Woking (right) is<br />

not only a key part<br />

of <strong>Serco</strong>’s role in<br />

the borough, it also<br />

raises residents’<br />

satisfaction levels<br />

Woking Borough Council, UK<br />

A visible difference<br />

■ Cleaning and maintaining Woking’s streets and parks<br />

■ Raising public awareness in order to increase satisfaction<br />

■ Inviting feedback so that services can be improved<br />

When the C40 – a group of the world’s largest cities<br />

committed to tackling climate change – recognised best<br />

practice from around the world, Woking Borough Council<br />

was the lone UK exemplar.<br />

Now Woking is breaking new ground in a collaboration<br />

with <strong>Serco</strong>. Together they have created a development plan<br />

for the council’s Streetscene scheme, which puts a public<br />

face on cleansing and maintenance work. “But it is much<br />

more than getting the streets clean,” says Robin Davies, <strong>Serco</strong><br />

Integrated Services’ Marketing Director for Local Government<br />

(Environment). “Good parks and clean streets are life enhancing.”<br />

While old-fashioned contract delivery was based on<br />

a schedule of work, the new way is to achieve outcomes<br />

while increasing customer satisfaction. One initiative is the<br />

card drop survey, which invites people to comment on the<br />

standard of work and the conduct of employees.<br />

Two sets of quarterly surveys gauge performance. The<br />

Customer Satisfaction Tracker records the public’s perception<br />

of cleaning and maintenance services. Satisfaction levels<br />

here are averaging 75%, up from 65%. National Indicator 195<br />

assesses 300 locations around the borough for street<br />

cleanliness. It is a focus on detail and efficiency, and<br />

satisfaction levels have increased from 65% to 92%.<br />

“Woking is a great example of profit being linked directly<br />

to customer satisfaction,” says Robin.<br />

Scouts’ promise<br />

Scouting in the UK has 100,000 voluntary<br />

leaders and 500,000 youth members. It is a<br />

massive force for well-being and community<br />

endeavour and, over the years, <strong>Serco</strong> Local<br />

Government, part of <strong>Serco</strong> Integrated Services<br />

(SIS), has developed links with a number of Scout<br />

groups, a partnership that is now going national.<br />

In November <strong>2008</strong>, Winchester-based<br />

Scouts were among the first in the country to<br />

be given the opportunity to achieve the new<br />

environment badge, supported by <strong>Serco</strong>.<br />

“The badge, built around the theme of ‘Your<br />

Neighbourhood, Your World’, draws together<br />

the many strands of our corporate responsibility,”<br />

says SIS Communications Director Adam Fergie.<br />

“It encourages young people, their families and<br />

the wider community to take pride in keeping<br />

their neighbourhood clean and safe.”<br />

It also helps youngsters think about why their<br />

community is so important, what steps could<br />

be taken to improve it, and the effect that each<br />

small personal action can have within the<br />

context of the wider world.<br />

Developed by <strong>Serco</strong> Local Government,<br />

the environment badge resource pack contains<br />

high-visibility vests, protective gloves, litter<br />

pickers, black sacks and recycling bags, together<br />

with information on how to organise a clean-up<br />

campaign – and do it safely.<br />

<strong>2008</strong> Pulse Award winner: Martin Milton<br />

In his 17 years at the National Physical Laboratory in London, working in<br />

Analytical Science, Martin Milton developed a novel laser-based system (now<br />

used by BP and Shell worldwide) that measures atmospheric pollution; he<br />

played a leading role in the standardisation of gas concentration measurements<br />

for government and industrial users; and, in 2007, his achievements contributed<br />

to a Nobel Peace Prize to the Inter-government Panel on Climate Change (IPCC).<br />

“The <strong>Serco</strong>-sponsored Time to Waste research<br />

report, developed in association with the new<br />

Local Government Network, argues that the<br />

UK needs to fundamentally rethink its policy<br />

if it is to solve the current landfill crisis and<br />

meet the national commitment to recycle<br />

50% of all waste by 2020. ”<br />

36 | <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Review</strong> | <strong>2008</strong><br />

www.serco.com | 37


Environment<br />

<strong>Serco</strong> Parks and Gardens, Australia<br />

Keeping the ‘city of parks’ green<br />

■ Maintaining Melbourne’s parks, gardens and grounds<br />

■ Reclaiming water and using it to maximum effect<br />

■ Recognising climate change and planting accordingly<br />

Australia is a nation that lives for its sport and the active<br />

outdoor life. But the worst drought in 100 years has<br />

presented <strong>Serco</strong>’s Parks and Gardens operation for the<br />

City of Melbourne with an exceptional challenge.<br />

Through what has been described as a quiet revolution,<br />

<strong>Serco</strong> helped the city to a prestigious Banksia<br />

Environmental Foundation Award in <strong>2008</strong> for “managing<br />

drought in the city of parks”. On behalf of the city council,<br />

Professor Rob Adams, Director of Design and Urban<br />

Environment, praised <strong>Serco</strong>’s contribution: “<strong>Serco</strong> has<br />

played an important part in the reduction of water use,<br />

which was fundamental to our entry’s success.”<br />

<strong>Serco</strong> manages the city’s Wetlands water facility, which<br />

holds 18 million litres of water captured from storm-water<br />

drainage. The water goes through natural treatment ponds<br />

before a UV system that allows it to be used for tree and<br />

sports field watering. “Sustaining parks, sports fields and<br />

streetscapes through reclaimed water use and innovation<br />

has allowed open spaces to be widely enjoyed across the<br />

community,” says <strong>Serco</strong> Contract Manager Colin Patterson.<br />

It is estimated that he and his team, including Simon<br />

Fishlock, Operations Support Manager (above), have<br />

reduced potable water consumption by 75% on 2005 usage.<br />

“I feel lucky that my job gives me the daily opportunity to<br />

make a positive difference to the environment,” says Simon.<br />

All garden and turf planting now occurs with more<br />

drought-tolerant species, such as couch and kikuyu<br />

grasses. It has led to a public mindset that not everything<br />

has to be ‘green’ to be enjoyed in public spaces.<br />

“The climate change we are experiencing is now the<br />

norm, so our methods and practices have had to change<br />

dramatically,” says Colin. “I believe that even if our dams<br />

got back to full levels, we should never go back to doing<br />

what we did before.”<br />

at home. Employees aim to extend<br />

their advice on simple, energy-saving<br />

measures to leisure centre customers.<br />

Sustainability has become central to<br />

new business, such as in managing the<br />

UK-wide property portfolio for Deloitte.<br />

There have also been early results from<br />

working with employees at Coca-Cola’s<br />

London headquarters.<br />

The SIS sustainable services team has<br />

set out to track continuous environmental<br />

improvement, encouraging senior<br />

management to lead on green schemes,<br />

and increasing efficiencies through<br />

changes to building services and<br />

technologies. Utilities consumption is<br />

expected to fall by 15%, and Coca-Cola<br />

is achieving outstanding recycling rates.<br />

Measuring our footprint<br />

A key objective for 2009 is to obtain<br />

external verification of our carbon<br />

footprint and reduction projects, for<br />

example, at the <strong>Serco</strong> Group support<br />

offices in Hook in the UK where a 20%<br />

reduction in energy consumption and<br />

the carbon footprint has been targeted.<br />

“We have installed technologies<br />

for efficient lighting and for monitoring<br />

and measuring energy systems. We can<br />

tell when people are putting a kettle on,”<br />

says Graeme Cameron.<br />

“We are examining our environmental<br />

impact wherever we are, and there<br />

are many solutions to reducing this<br />

across our divisions,” adds Andy Lewis,<br />

Group Director of Health, Safety<br />

and Environment. The <strong>2008</strong> carbon<br />

footprint figures for <strong>Serco</strong> will be the first<br />

baseline. Prior to this it was not possible<br />

to track performance over the entire<br />

operation. “This is the first time we will<br />

have a company-wide picture,” says<br />

Andy. “But you can’t put percentage<br />

figures on everything to reflect savings<br />

and achievement. A statistical reduction<br />

in one area might be achievable and <br />

a genuine success story. Elsewhere<br />

it could be meaningless.”<br />

‘Best of breed’ retrofit control technology<br />

will be used by <strong>Serco</strong> Leisure and in the<br />

company’s UK support offices in Hook<br />

to help reduce energy consumption and<br />

emissions by improving heating, lighting<br />

and motor efficiency.<br />

Meanwhile, an online trading system<br />

will redeploy and seek out serviceable<br />

office equipment, and meetings will be<br />

evaluated for their time and cost impacts.<br />

Another key area is business travel,<br />

where <strong>Serco</strong> Business Services (SBS) is<br />

using an advanced fleet management<br />

system to provide feedback to business<br />

users on their sustainability impact.<br />

There is no single blueprint; the<br />

business is underpinned by three<br />

management systems: ISO 9001 for<br />

quality, 14001 for environmental<br />

management and 18001 for health<br />

and safety. Having contracts comply with<br />

ISO 14001 is a key driver and Andy Lewis<br />

knows that all environmental impacts,<br />

strategies and sensitivities go through<br />

the processes as a matter of course.<br />

But even this does not guarantee an<br />

incident-free year. In <strong>2008</strong> there was a<br />

major environmental spillage at a site<br />

in Birmingham. The fuel valve serving a<br />

back-up generator was left slightly open<br />

and around 1,700 litres of diesel soaked<br />

into the soil around the tank, finding its<br />

way into the drainage system.<br />

“Once we knew we had a problem,<br />

our emergency procedures were<br />

immediately implemented to contain the<br />

situation,” says Andy. Working around<br />

the clock, teams excavated and replaced<br />

soil around the major gas pipes and<br />

IT cables. The Environment Agency<br />

checked the work and was satisfied<br />

with all actions for a positive outcome.<br />

The goal for 2009 is for each division<br />

to encourage innovation and provide<br />

ways of making more informed decisions.<br />

Mid Sussex District Council, UK<br />

Teamwork and talent triumph<br />

■ Cleaning streets and managing refuse and recycling<br />

■ More than doubling recycling levels in just over a year<br />

■ Training and regular meetings create strong teams<br />

Having entrusted responsibility for refuse and recycling<br />

management and street cleansing to <strong>Serco</strong> in July 2007,<br />

Mid Sussex District Council did not have long to wait for<br />

the new direction to pay dividends.<br />

During <strong>2008</strong> the Audit Commission commended the<br />

local authority for having the cleanest streets in Sussex<br />

SMART WORK<br />

(LEFT): NVQ<br />

training and IiP<br />

accreditation have<br />

helped <strong>Serco</strong>’s<br />

Mid Sussex<br />

employees work<br />

more efficiently<br />

and its recycling figures topped a league table of 75 South<br />

of England councils.<br />

With landfill space in West Sussex projected to run out by<br />

2010 and costs continuing to rise, the <strong>Serco</strong> team set out to<br />

improve the recycling levels of waste from 22% (collected<br />

under the old contract) to 30%-35%. Little more than a year<br />

on, the recycling return had improved to 43% of dry waste and<br />

48% of all waste, including composting, an endorsement of<br />

the powers of skills development, commitment and teamwork.<br />

Contract Manager Andy Norris says: “When we took over the<br />

Mid Sussex contract, with about 70 employees transferring to<br />

<strong>Serco</strong>, we needed to totally restructure the management team.<br />

“We brought in fresh leadership skills and a focus on effective<br />

recycling. We incorporated NVQ training, which made our<br />

employees more aware of good safety and recycling practice,<br />

and we considered our approach to the job as a team. We have<br />

bi-monthly safety and contract meetings, and employees are<br />

credited for their initiative .<br />

“We found a lot of hidden talent and going for Investors in<br />

People accreditation has helped to bring that out,” says Andy.<br />

Paul Fitzgerald, a driver-loader, guided us through the IiP<br />

process and got us to accreditation. Others are going through<br />

the rounds to help make efficiencies.”<br />

Audit reports show the Mid Sussex teams have a 95% record<br />

on training; 98% for vehicle maintenance, servicing, defect<br />

reporting and documentation; and their safety performance<br />

has risen from 38% to 88.9% – “a result of our internal safety<br />

trainer programme”, says Andy.<br />

When Andy and his teams took over the contract, the<br />

council’s requirement was for alternate weekly collections<br />

from day one – one week recyclables, one week landfill – but<br />

this did not allow time for adequate training, a communication<br />

campaign and delivery of new bins.<br />

The council took <strong>Serco</strong>’s advice, drawing on best practice,<br />

and phased in the new service over three months. The new<br />

recycling collection takes paper, cardboard, plastic, cans and<br />

glass – all in one bin. “We’ve cut waste to landfill by 15% and<br />

have become the 13th best recyclers in the country, excluding<br />

London boroughs, and the best in Sussex,” says Andy.<br />

Beyond the performance measures in the Mid Sussex<br />

contract there is a community commitment that goes deeper,<br />

such as in the assisted collections for elderly, infirm or<br />

pregnant residents.<br />

In 2009, <strong>Serco</strong> teams will be talking to parish councils and<br />

people on the streets to refine the service and boost recycling,<br />

while later in the year they will be visiting schools to talk about<br />

safety around vehicles.<br />

A chip off the old block<br />

<strong>Serco</strong> maintenance employees in Woking continue to<br />

make new inroads on the effective management of the<br />

environment. No small matter when you have, for example,<br />

more than 30,000 trees to care for. Pruned branches that<br />

once were transported from site are now put through a<br />

chipper so that the material goes straight back onto the<br />

ground as mulch to feed, save water and suppress weeds.<br />

“Best of breed retrofit control technology will be<br />

used by <strong>Serco</strong> Leisure and in the company’s UK<br />

support offices in Hook to help reduce energy<br />

consumption and emissions by improving<br />

heating, lighting and motor efficiency.”<br />

38 | <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Review</strong> | <strong>2008</strong><br />

www.serco.com | 39


Objectives<br />

<strong>2008</strong><br />

Health<br />

& Safety<br />

Key Performance Data<br />

<strong>2008</strong> Overview<br />

The challenges we set ourselves<br />

in <strong>2008</strong> and what we achieved<br />

Health, Safety and Well-being<br />

OBJECTIVE<br />

To implement fully and maintain<br />

a reporting mechanism for all<br />

safety indicators<br />

To ensure that a robust suite<br />

of crisis management plans<br />

exists and has an appropriate<br />

testing regime<br />

A reduction in reportable events<br />

by 5% against the 2007 baseline<br />

COMMENT<br />

All divisions are now reporting<br />

required information through<br />

ASSURE<br />

The divisions have in place<br />

crisis management plans,<br />

which have been updated<br />

during <strong>2008</strong> as appropriate<br />

and exercises carried out<br />

where required<br />

A disappointing 1%<br />

deterioration against 2007.<br />

Improving our reportable<br />

injury rate is a key target<br />

for 2009<br />

People<br />

OBJECTIVE<br />

To follow up on employee<br />

engagement survey with<br />

divisional action plans<br />

To deliver leadership strategy<br />

for top talent with integrated<br />

development, talent<br />

management and performance<br />

management programmes<br />

To launch <strong>Serco</strong> Business<br />

Academy to provide consistent<br />

induction and development in<br />

core business skills<br />

COMMENT<br />

Improvement programmes have<br />

been implemented, and employee<br />

engagement remains a high<br />

priority against Group objectives<br />

Talent process has been<br />

developed, implemented and<br />

completed for members of the<br />

senior and wider leadership groups<br />

and performance management<br />

programmes have been updated<br />

We have designed and<br />

commenced building the<br />

Business Academy, and the<br />

first module called Discover<br />

<strong>Serco</strong> is due to be launched<br />

in the first quarter of 2009<br />

Health, Safety and Well-being<br />

Fig 1. Business in the Community (BitC) 2007 <strong>Corporate</strong> <strong>Responsibility</strong> Index<br />

Management<br />

systems<br />

96% was our overall<br />

score in the social impact area of Health, Safety<br />

and Well-being (see Fig 1 for breakdown) in<br />

the BitC 2007 <strong>Corporate</strong> <strong>Responsibility</strong> Index.<br />

This is significantly better than the average<br />

for our sector (72%).<br />

Reportable incident rate – per 100,000<br />

Fig 3. <strong>2008</strong><br />

Employee<br />

programmes<br />

Measurement<br />

and reporting<br />

1,200<br />

■ <strong>Serco</strong> ■ Sector ■ Index<br />

Scope and quality<br />

of information<br />

Targets and<br />

performance<br />

100%<br />

80%<br />

60%<br />

Incident rate – per 100,000<br />

Fig 2. <strong>2008</strong><br />

2004<br />

2005<br />

Lost-time incidents – breakdown by type<br />

Fig 4. <strong>2008</strong><br />

Reportable<br />

– three-day<br />

absence<br />

56%<br />

2006<br />

2007<br />

Reportable<br />

– major 6%<br />

<strong>2008</strong><br />

2,500<br />

2,000<br />

1,500<br />

Non-reportable<br />

incidents<br />

38%<br />

■ Our lost-time incident rate per<br />

100,000 employees improved<br />

by 9% in <strong>2008</strong>, bringing the total<br />

improvement since 2004 to 30%<br />

(see Fig 2). It reflects our ongoing<br />

commitment to health and safety<br />

via a number of initiatives, such as<br />

a ‘Zero Harm’ programme in Asia<br />

Pacific that has resulted in a 25%<br />

reduction in lost-time incidents.<br />

This initiative continues to grow<br />

in momentum and is being used<br />

as an example of best practice.<br />

■ 56% of incidents related to<br />

reportable three-day absence<br />

(see Fig 4). To address this,<br />

we have launched a pilot<br />

scheme in <strong>Serco</strong> Health to<br />

improve the active management<br />

and intervention of<br />

reported absences.<br />

Community<br />

OBJECTIVE<br />

To develop our approach to the<br />

measurement of social impact<br />

To review the <strong>Serco</strong> Foundation<br />

To implement a group-wide<br />

community campaign in<br />

highlighting to families the<br />

dangers that the Internet<br />

poses to children<br />

COMMENT<br />

Research commenced and<br />

a potential tool was identified,<br />

with further work to be carried<br />

out in 2009<br />

The review was carried out and<br />

ideas were presented to the<br />

Executive Team – more work will<br />

be undertaken during 2009<br />

Information was released on<br />

the Our World intranet and<br />

a pilot volunteer programme<br />

was undertaken with the<br />

Child Exploitation and Online<br />

Protection Centre – now part of<br />

a wider security strategy being<br />

planned within <strong>Serco</strong> for 2009<br />

Environment<br />

OBJECTIVE<br />

To implement fully and maintain<br />

a reporting mechanism for all<br />

environmental indicators<br />

To complete work to identify<br />

all environmental aspects and<br />

impacts across the business<br />

To roll-out revised sustainable<br />

procurement policy in line with<br />

new procurement strategy<br />

COMMENT<br />

All divisions are reporting<br />

required information<br />

through ASSURE<br />

Key UK sites have identified<br />

their aspects and impacts.<br />

Remaining contracts will<br />

complete this work in 2009<br />

A revised policy has been drafted<br />

and is with UK divisions for<br />

comment and implementation<br />

in line with new procurement<br />

strategy in 2009. Non-UK<br />

divisions will implement in 2010<br />

2004<br />

2005<br />

2006<br />

2007<br />

<strong>2008</strong><br />

1,100<br />

1,000<br />

Overview<br />

■ We received no prohibition or<br />

improvement notices during <strong>2008</strong><br />

and were neither prosecuted<br />

nor paid any fines under health<br />

and safety legislation.<br />

■ In <strong>2008</strong> we concluded the<br />

implementation of a new<br />

■ 62% of all lost time incidents<br />

were classified as reportable.<br />

This resulted in a reportable<br />

incident rate per 100,000<br />

employees of 991, a<br />

disappointing deterioration<br />

against 2007. It also fell<br />

short of our ambitious target<br />

of 930 although it reflects a<br />

15% improvement on 2004<br />

(see Fig 3).<br />

occupational health service<br />

provision in the UK. This has<br />

improved the reporting and<br />

management of occupational<br />

health issues, and data<br />

reported in <strong>2008</strong> will in future<br />

be used as a baseline for<br />

benchmarking performance.<br />

■ The Royal Society for<br />

the Prevention of Accidents<br />

recognised us in its annual<br />

awards with a President’s<br />

Award (Fylingdales SSPAR),<br />

a Sector Award (National<br />

Physical Laboratory), three Gold<br />

Medals and nine Gold Awards.<br />

■ After active engagement with<br />

staff and the embedding of several<br />

initiatives over the last few years,<br />

we have kept both physical and<br />

verbal staff assault rates below<br />

target. Physical assault rates are<br />

33% better than 2007 and verbal<br />

assault rates are 27% better.<br />

■ The British Safety<br />

Council recognised<br />

contracts operated within<br />

our Civil Government<br />

division with four Swords<br />

of Honour, nine Five Star<br />

awards and one Four<br />

Star safety award.<br />

■ In <strong>2008</strong>, Ashfield Young<br />

Offenders Institution became the<br />

first facility in the UK to achieve<br />

National Healthy School status.<br />

This Department of Health-led<br />

initiative not only aims to make<br />

students healthier but also help<br />

them get the most out of life.<br />

40 | <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Review</strong> | <strong>2008</strong><br />

Please visit our website www.serco.com for more detailed information | 41


People<br />

Key Performance Data<br />

Community<br />

Key Performance Data<br />

Workplace Management<br />

Fig 1. BitC 2007 <strong>Corporate</strong> <strong>Responsibility</strong> Index<br />

Employee Welfare<br />

Fig 2. BitC 2007 <strong>Corporate</strong> <strong>Responsibility</strong> Index<br />

Community Management<br />

Fig 1. BitC 2007 <strong>Corporate</strong> <strong>Responsibility</strong> Index<br />

Community Investment<br />

Fig 2. BitC 2007 <strong>Corporate</strong> <strong>Responsibility</strong> Index<br />

■ <strong>Serco</strong> ■ Sector ■ Index<br />

100%<br />

■ <strong>Serco</strong> ■ Sector ■ Index<br />

100%<br />

■ <strong>Serco</strong> ■ Sector ■ Index 100%<br />

■ <strong>Serco</strong> ■ Sector ■ Index<br />

100%<br />

80%<br />

80%<br />

80%<br />

80%<br />

60%<br />

60%<br />

60%<br />

60%<br />

Objectives<br />

(Q36)<br />

Targets<br />

(Q37)<br />

■ The BitC 2007 <strong>Corporate</strong><br />

<strong>Responsibility</strong> Index introduced a<br />

new workplace index under which<br />

% Staff Turnover<br />

Fig 3. <strong>2008</strong><br />

20%<br />

10%<br />

Employee<br />

programmes<br />

(Q38)<br />

0%<br />

Monitoring<br />

(Q39)<br />

we received platinum banding with<br />

a score of 95% (See Figs 1 and 2<br />

for breakdown) .<br />

At the end of<br />

<strong>2008</strong>, we had<br />

more than<br />

50,000<br />

employees<br />

worldwide<br />

<strong>Corporate</strong><br />

commitment<br />

Measurement<br />

and reporting<br />

Quality of<br />

information<br />

% Ethnic Breakdown<br />

Fig 4. <strong>2008</strong><br />

White<br />

57.51%<br />

Mixed 3.93%<br />

Asian/Asian British<br />

4.20%<br />

Coverage<br />

4.15%<br />

Black/Black British<br />

Other 3.91%<br />

Undisclosed<br />

29.40%<br />

Performance<br />

improvement<br />

Community<br />

strategy<br />

(Q17)<br />

Targets<br />

(Q18)<br />

Community<br />

programmes<br />

(Q19)<br />

■ The success of our community<br />

strategy has been reflected<br />

once again in the BitC <strong>Corporate</strong><br />

<strong>Responsibility</strong> Index. For the<br />

second year running, we achieved<br />

a gold overall rating (90%).<br />

Community<br />

partnerships<br />

(Q20)<br />

Monitoring<br />

(Q21)<br />

This year, a new community<br />

index was introduced as part of<br />

the overall index, and we scored<br />

highly, achieving platinum<br />

status (96%). See Figs 1 and<br />

2 for breakdown.<br />

£1,767,168<br />

<strong>Serco</strong> invested £1,767,168 in community projects<br />

in <strong>2008</strong>. This represents 1.3% of pre-tax profits,<br />

exceeding our target of 1% (see Fig 3 for breakdown).<br />

Measurement<br />

of inputs<br />

Measurement<br />

of outputs<br />

Business<br />

benefits<br />

Community Investment Breakdown<br />

Fig 3. <strong>2008</strong><br />

Cash donations<br />

(excluding<br />

hospitality costs)<br />

68.17%<br />

Community<br />

benefits<br />

Gifts in kind<br />

15.29%<br />

Staff time<br />

9.64%<br />

Management<br />

costs 6.91%<br />

Reporting<br />

2004 2005 2006 2007 <strong>2008</strong><br />

■ Staff turnover increased by<br />

13.28% in <strong>2008</strong> (see Fig 3).<br />

One of the factors for the<br />

increase was the inclusion<br />

in <strong>2008</strong> of the first full year’s<br />

data for Asia Pacific. While<br />

data collection for starters<br />

and leavers improved during<br />

<strong>2008</strong>, it remains a challenge.<br />

We are addressing this through<br />

the Excellence in People<br />

Administration programme.<br />

■ During the year, we saw the<br />

ethnic diversity of the Group<br />

widen, with minorities making<br />

up 13.09% of our employees<br />

(see Fig 4 for breakdown).<br />

■ The rate of absenteeism in<br />

<strong>2008</strong> was 0.12% worse than<br />

in 2007. This was caused by<br />

the inclusion of the first full<br />

year’s sickness data for<br />

Asia Pacific in <strong>2008</strong>.<br />

■ The number of female<br />

employees at <strong>Serco</strong> increased<br />

by 1.32% to 34% in <strong>2008</strong>.<br />

■ <strong>Serco</strong> National Physical<br />

Laboratory (NPL) and<br />

Airbus Filton were recognised<br />

by the Business in the<br />

Community Awards for<br />

Excellence, each receiving<br />

a Big Tick Award for the<br />

second year in a row.<br />

■ <strong>Serco</strong> North America<br />

was recognised by the<br />

Department of Defense<br />

Office of Small Business<br />

Programs for Excellence<br />

in its support of increasing<br />

subcontracting for disabled<br />

war veterans.<br />

■ More than 120 individuals and teams of young people<br />

from disadvantaged backgrounds benefitted directly in<br />

<strong>2008</strong> from the annual £10,000 <strong>Serco</strong> Bursary to the<br />

Duke of Edinburgh’s Award.<br />

Overview<br />

■ We launched the Pulse Awards<br />

in 2007 to recognise examples<br />

of excellence or improvement in<br />

business operations, safety and<br />

environmental initiatives and<br />

leadership. They also recognise<br />

our wider responsibilities to<br />

society, the environment and<br />

the communities we serve. This<br />

might be through significant<br />

contributions made to charitable<br />

or community organisations. In<br />

<strong>2008</strong> the first award winners were<br />

announced. Out of a total of 243<br />

nominations received, 118 were<br />

recognised with a divisional<br />

award and 48 were recognised<br />

with a Global Pulse Award.<br />

■ In <strong>2008</strong> the National Physical<br />

Laboratory won the Women in<br />

Science and Engineering (WISE)<br />

‘Investor in WISE’ award, which<br />

gives public recognition to<br />

companies that encourage girls<br />

and young women into science,<br />

engineering and construction.<br />

■ There were no cases brought<br />

against us for anti-competitive<br />

behaviour; corrupt or<br />

unprofessional behaviour;<br />

or human rights during <strong>2008</strong>.<br />

Overview<br />

■ Reflecting how we manage our<br />

business, our devolved approach<br />

to the way we support local<br />

communities and charities allows<br />

us to support many different<br />

worthy causes around the world.<br />

We encourage our employees to<br />

get involved and so the charities<br />

we support are largely selected<br />

by them. During <strong>2008</strong>, we<br />

provided support to more than<br />

250 charitable organisations.<br />

Some of the major charities<br />

included the Duke of Edinburgh’s<br />

Award, the Prince’s Trust, the<br />

Africa Foundation, Soldiers,<br />

Sailors, Airmen and Families<br />

Association, Military Child<br />

Education Coalition, MacMillan<br />

Cancer Support and the Scouting<br />

Association. We have set ourselves<br />

an objective during 2009 to<br />

improve reporting in this area.<br />

■ In Australia, <strong>Serco</strong> has<br />

received Gold Star status<br />

in the Australian <strong>Corporate</strong><br />

<strong>Responsibility</strong> Index,<br />

assessed jointly by the<br />

St James Ethics Centre in<br />

partnership with the UK<br />

Business in the Community.<br />

42 | <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Review</strong> | <strong>2008</strong><br />

Please visit our website www.serco.com for more detailed information | 43


Environment Key Performance Data<br />

Objectives 2009<br />

Environment Management<br />

Fig 1. BitC 2007 <strong>Corporate</strong> <strong>Responsibility</strong> Index<br />

Waste and Resource Management<br />

Fig 2. BitC 2007 <strong>Corporate</strong> <strong>Responsibility</strong> Index<br />

■ <strong>Serco</strong> ■ Sector ■ Index 100% ■ <strong>Serco</strong> ■ Sector ■ Index 100%<br />

80% 80%<br />

60% 60%<br />

The year ahead<br />

The challenges we have<br />

set ourselves for 2009<br />

40% 40%<br />

Health, Safety and Well-being<br />

People<br />

20% 20%<br />

OBJECTIVE<br />

COMMENT<br />

OBJECTIVE<br />

COMMENT<br />

Objectives<br />

(Q23)<br />

Targets<br />

(Q24)<br />

Breakdown of kg CO2 by type<br />

Fig 3. <strong>2008</strong><br />

Electricity<br />

74.27%<br />

Employee<br />

environmental<br />

programme<br />

(Q25)<br />

Gas<br />

17.15%<br />

Communication<br />

with external<br />

shareholders<br />

(Q26)<br />

Vehicle<br />

5.75%<br />

Environmental<br />

management<br />

system<br />

(Q27)<br />

Oil 0.62%<br />

Water 0.39%<br />

Air 1.69%<br />

Rail 0.13%<br />

Environmental<br />

audit<br />

(Q28)<br />

0% 0%<br />

Measuring<br />

and reporting<br />

(Q45)<br />

Scope of<br />

information<br />

(Q46)<br />

Quality of<br />

information<br />

(Q47)<br />

■ In <strong>2008</strong> <strong>Serco</strong> generated 257,324,087 kg CO2,* equivalent<br />

to 257,325 tonnes CO2. Fig 3 provides a breakdown of this figure<br />

by type, showing that the majority (74.27%) of <strong>Serco</strong>’s CO2<br />

emissions resulted from electricity usage. We will focus on this<br />

area in 2009. Reflecting our current business makeup, the UK<br />

was responsible for 94.97% of this.<br />

* Our data remains provisional until at least three months after year-end as utility bills<br />

and other financial issues can take that long to process.<br />

Performance<br />

improvement<br />

(Q48)<br />

89% was our overall score (see Figs 1<br />

and 2 for breakdown) in the BitC <strong>Corporate</strong> <strong>Responsibility</strong> Index for<br />

environmental management. This received a Silver banding and was<br />

an improvement on the previous index, where we scored 79.5%.<br />

We will deliver a year-on-year<br />

improvement on our staff<br />

reportable injury rate<br />

Health and safety management<br />

systems are aligned and<br />

integrated across the company<br />

and meet the requirements<br />

of BS OHSAS18001<br />

Community<br />

Using data captured on<br />

ASSURE to review root causes,<br />

to identify specific initiatives,<br />

to improve performance and<br />

to verify independently the<br />

accuracy of data entered by<br />

divisions through a robust<br />

audit process<br />

2009 – all UK divisions operating<br />

under a single health and safety<br />

management system<br />

2010 – all non-UK divisions<br />

apply this common system<br />

We will repeat the engagement<br />

survey across the whole group<br />

We will support our employees<br />

in acquiring basic literacy and<br />

numeracy skills, and in working<br />

towards their first full Level 2<br />

qualification in an area that is<br />

relevant to their business<br />

We will ensure occupational<br />

health standards are defined<br />

for key principal health risks<br />

Environment<br />

This will be the first repeat of the<br />

survey carried out in 2007 and<br />

we will be seeking improved<br />

response and engagement rates<br />

Given that government funding<br />

is available to support such<br />

skills development, we will<br />

be offering encouragement,<br />

practical support and easy-toaccess<br />

programmes to ensure<br />

employees get the skills they need<br />

Complete a review of<br />

occupational health standard<br />

requirements in 2009 and<br />

publish those relating to key<br />

identified risks<br />

■ After being recognised<br />

with a Big Tick Award in the<br />

Environment Category for the<br />

second year running in the<br />

Business in the Community<br />

(BitC) Awards for Excellence<br />

for its ongoing improvement<br />

in tackling climate change,<br />

Overview<br />

■ In <strong>2008</strong>, we increased the<br />

number of ISO 14001 certificates<br />

across our business by three.<br />

These now cover some 26%<br />

of our business.<br />

■ While we have historically<br />

reported some of our CO2<br />

<strong>Serco</strong> Leisure was invited<br />

by BitC to showcase its<br />

energy initiatives and run a<br />

workshop as part of HRH<br />

The Prince of Wales’s May<br />

Day Business Summit on<br />

Climate Change <strong>2008</strong>.<br />

■ Employees at <strong>Serco</strong><br />

emissions, <strong>2008</strong> saw a significant<br />

step forward with a comprehensive<br />

review of our environmental<br />

performance indicators and<br />

the capture of accurate<br />

environmental data. This<br />

has provided a baseline of our<br />

performance that we will use to<br />

Maidstone won an award in<br />

Kent County Council’s One<br />

Tonne Carbon Challenge for<br />

using public transport, car<br />

sharing, walking to work<br />

and reducing energy use.<br />

■ <strong>Serco</strong> Leisure Bolton won<br />

the Tackling & Adapting to<br />

benchmark future environmental<br />

performance against.<br />

■ We received no environmental<br />

fines or enforcement notices<br />

in <strong>2008</strong>, but reported two<br />

environmental incidents to the<br />

UK Environment Agency. Both<br />

related to oil spills. The more<br />

Climate Change Category of<br />

the Groundwork Business and<br />

Community Awards <strong>2008</strong> for<br />

work carried out throughout<br />

the contract, employee<br />

commitment and initiatives<br />

progressed in order to reduce<br />

carbon emissions.<br />

significant one was a discharge<br />

of 1,700 litres of diesel from a<br />

storage tank contaminating soil<br />

next to our office in Birmingham.<br />

A quick response and thorough<br />

clean-up resulted in the Agency<br />

being satisfied with the remedial<br />

action taken.<br />

OBJECTIVE<br />

We will build on work<br />

commenced in <strong>2008</strong> to<br />

develop our current common<br />

methodology and framework in<br />

order to assess the social impact<br />

of our community investment<br />

We will actively develop the<br />

talent and employment<br />

opportunities for people<br />

from disadvantaged groups<br />

COMMENT<br />

Two pilots completed by the<br />

end of 2009 in the application<br />

of a defined framework<br />

UK vacancies with base salaries<br />

up to £25k per annum will<br />

be advertised through<br />

Jobcentre Plus as suitable for<br />

disadvantaged jobseekers<br />

We will identify current best<br />

practice and develop guidelines<br />

for the effective and sustainable<br />

employment of ex-offenders<br />

OBJECTIVE<br />

We will deliver a carbon<br />

management plan that<br />

demonstrates reductions in our<br />

use of electricity, gas and fuel<br />

We will create a Sustainable<br />

Procurement Action Plan<br />

across all UK divisions<br />

Water conservation will be<br />

promoted across <strong>Serco</strong> with<br />

efficiency devices and initiatives<br />

used where assessment has<br />

shown benefit resulting in reuse<br />

or reduction in water consumption<br />

COMMENT<br />

Divisional plans will have been<br />

developed by December 2009,<br />

focusing on key initiatives<br />

Action plan will be place by the end<br />

of 2009 to ensure sustainability<br />

is a key factor in purchasing<br />

decisions alongside cost, quality<br />

and delivery. Best practice shared<br />

with non-UK divisions in 2010<br />

Key sites are identified and<br />

water use reduction strategies<br />

will be in place by the end of<br />

December 2009<br />

44 | <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Review</strong> | <strong>2008</strong><br />

Please visit our website www.serco.com for more detailed information | 45


Feedback<br />

“Our governing principles<br />

do much more than guide<br />

our actions, they are central<br />

to the way we operate.”<br />

Christopher Hyman, Chief Executive, <strong>Serco</strong> Group plc<br />

Tell us what you think<br />

We welcome your feedback<br />

on our work and the content<br />

of this report. Did reading it:<br />

■ Improve your<br />

understanding<br />

of our ethos and<br />

our employees?<br />

■ Give you a better<br />

understanding of the<br />

diversity of the areas<br />

in which we operate?<br />

■ Provide a clear<br />

overview of our<br />

operational impact on<br />

society and people?<br />

■ Tell you enough<br />

about our past<br />

performance and<br />

future objectives?<br />

For more information<br />

go to www.serco.com<br />

Please email your feedback<br />

or write to us at the address<br />

below, including your:<br />

■ Name<br />

■ Address<br />

■ Phone number(s)<br />

■ Job title (if appropriate)<br />

■ Organisation (if appropriate)<br />

■ Association with <strong>Serco</strong>, if any<br />

(customer, partner, shareholder,<br />

employee, potential employee,<br />

service user, academic, researcher)<br />

By email: gail.johnson @serco.com<br />

By post: Gail Johnson<br />

Head of Social <strong>Responsibility</strong><br />

<strong>Serco</strong> House<br />

16 Bartley Wood Business Park<br />

Bartley Way<br />

Hook RG27 9UY<br />

United Kingdom<br />

We foster an entrepreneurial culture<br />

We are passionate about building innovative and<br />

successful <strong>Serco</strong> Businesses. We succeed by<br />

encouraging and generating new ideas. We trust<br />

our people to deliver. We embrace change and, by<br />

taking measured risks, encourage creative thinking..<br />

We enable our people to excel<br />

Our success comes from our commitment and<br />

energy to go the extra mile. We are responsible to<br />

each other and can expect support when we need<br />

it most. We expect our people to achieve more by<br />

recognising and harnessing the power of individuals.<br />

We value people for their knowledge, ideas and<br />

potential to contribute..<br />

We deliver our promises<br />

We do what we say we will do to meet expectations.<br />

We only promise what we can deliver. If we make<br />

mistakes we put them right. We are clear about what<br />

we need to achieve and we expect to make a fair profit.<br />

We build trust and respect<br />

We build respect by operating in a safe, socially<br />

responsible, consistent and honest manner.<br />

We never compromise on safety and we always<br />

operate in an ethical and responsible manner.<br />

We listen. In doing so, we treat others as we would<br />

wish to be treated ourselves and challenge when<br />

we see something is wrong. We integrate with<br />

our communities.<br />

We would like to thank the many people who kindly<br />

provided their help and support to our journalists during<br />

the research, writing and production of this review.<br />

46 | <strong>Corporate</strong> <strong>Responsibility</strong> <strong>Review</strong> | <strong>2008</strong>


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