Page 177 - DMGT548_GLOBAL_HRM

Global HRM

Notes in behavioural terms in the various local cultures also becomes more sophisticated. It is
worth bearing in mind that in sharing some of the detail behind recent events and placing
them into a structured account, it is easy to lose the sense of dynamism, pace and excitement
which surrounds such an internationalisation strategy.
Seeding Expansion

Barclaycard was established in 1966 as part of Barclays Bank PLC. Barclays Bank PLC’s
strategy has four medium term themes: to defend and extend UK Banking, build new
international markets, grow world class global product businesses; and develop operational
excellence. One of the ways in which global product businesses will grow is through the
expansion of the cards and loans business. Barclaycard was the UK’s first credit card and is
now one of the largest global credit card businesses. It has 11.2 million retail customers in
the UK, with 3.7 million cards issued internationally (up from 1.28 million cards in 2002
and 1.42 million in 2003). Barclaycard is a multi-brand credit card and consumer lending
business. It is currently one of the leading credit card companies in Europe and is increasing
its international presence.
Barclaycard encompasses: the Cards & Loans business mostly traded as Barclayloan,
FirstPlus, Clydesdale Financial Services and Monument credit cards. Outside the UK,
Barclaycard International operates in the United States, Germany, Spain, Greece, Italy,
Portugal, Ireland, Sweden, Norway, France Asia-Pacific and across Africa. Barclaycard
International is evolving from a domestic base and has some interesting challenges ahead
in doing so.
Barclaycard International first became profitable in 2003 with profits of £4 million. After
an alliance with the Standard Bank of South Africa in 2003 and launches the next year in
Ireland and Portugal, by 2004 profits increased to £8 million despite the investment costs
of the international expansion and acquisition. The acquisition of the US credit card issuer,
Juniper Financial Corporation, was completed on 1st December, 2004. Acquiring Juniper
(rebranded as Barclays USA) was part of Barclaycard International’s strategy to become as
meaningful a contributor to the Group as Barclaycard UK currently is by 2013. In order to
do this Barclays will invest significantly in Barclaycard International.
Growth Strategy
Barclaycard International has a challenging and rapid growth strategy. If it is to be as
successful as its stated ambition, the need for a truly global approach to doing business
will become ever more apparent. It employs around 3000 staff across its portfolio of
businesses, of which just 15% are based in the UK. As new international operations are
created either as a consequence of joint ventures (JV) acquisitions, or through organic
growth this number the number of staff will continue to increase while the relative % of
staff based in the UK will reduce. The rapid growth of this business brings its own challenges
for the HR function.
The HR Director and HR Business Partners support the Board Directors of Barclaycard
International and ensure an end to end HR service is provided to employees in every
location. As a HR Business Partner the challenge varies in each country but always includes
the question of how to ensure rigour and consistency across operations in very different
cultures, business markets and labour markets.
One area of focus for the HR Director for Barclaycard International is to put a platform of
people management processes in place that bring sufficient stability, governance and
control , ensure flexibility in global and local decisions and use this platform to enable
rapid future expansion. This means turning what has historically been a UK-centric
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