CASE STUDY In-House Mediation Scheme:
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1 CASE STUDY In-House Mediation Scheme: Overview NHS East Lancashire Authors: Karen Bailey & Alex Efthymiades This paper describes NHS East Lancashire s experience of setting up and evaluating an in-house mediation scheme. The scheme has, in a very short period of time, yielded significant benefits to the Trust which are outlined in this paper. This paper analyses the key milestones for the scheme and the lessons to be learned for organisations that want to implement or further develop an inhouse mediation scheme info@consensiopartners.co.uk 2009 Consensio Partners Resolution Ltd.
2 Contents Introduction... 3 Table A - NHS East Lancashire: Key facts and figures... 3 Why NHS East Lancashire set up an in-house mediation scheme... 3 Stages of setting up an in-house mediation scheme... 4 Table B - Accredited Mediation Training... 5 Stories from stakeholders... 5 Evaluating the in-house mediation scheme... 6 Table C - Cost-savings to NHS East Lancashire... 7 Table D - Measuring the cost of conflict....8 Key factors for success... 9 About Consensio About NHS East Lancashire Consensio Partners Resolution Ltd. 2
3 Introduction This paper describes NHS East Lancashire s experience of setting up and evaluating an in-house mediation scheme. The scheme has, in a very short period of time, yielded significant benefits to the Trust: a 60% reduction in formal processes (grievances and fair treatment cases), a 96% success rate measured by written mediation agreements, significant cost-savings to the Trust, and importantly, the shift towards culture change within the Trust. This paper analyses the key milestones for the scheme. It also outlines the lessons to be learned for organisations that want to implement or further develop an in-house mediation scheme. This paper is a joint initiative by Consensio, a workplace mediation and training provider, and Karen Bailey, Change Consultant at NHS East Lancashire who set up the mediation scheme. Consensio trained the NHS East Lancashire mediators on the Accredited Workplace Mediation Certificate course in spring Table A NHS East Lancashire: Key facts and figures Why NHS East Lancashire set up an in-house mediation scheme Prior to working at NHS East Lancashire, Karen Bailey worked in a number of other NHS organisations that had embraced mediation as a means of conflict resolution. On taking up the role of interim HR Director at NHS East Lancashire, Bailey was struck by the employee relations culture and the prevailing attitude to conflict at the Trust notably, the reliance on formal processes as the only means of resolving conflict. Thus, a significant reason for introducing an in-house mediation scheme at NHS East Lancashire was to create a shift in how the Trust dealt with conflict and difficult relationships within the workplace. In other words, Bailey wanted to embed mediation to create a whole systems approach to resolve the presenting issues (the parties in conflict) as well as the underlying causes (the organisational issues that give rise to conflict) Consensio Partners Resolution Ltd. 3
4 In addition to culture change, it was anticipated that there would be some real benefits in terms of time- and cost-savings to the Trust. These would be due to mediation s potential to override the need to carry out extensive investigations and/or hold complex hearings, as necessitated by formal process. Whilst NHS East Lancashire was in the process of conceiving the mediation scheme, Michael Gibbons was finalising his review of the dispute resolution regulations, and he strongly advocated for mediation as an appropriate way forward. Therefore, the legislative angle provided a further impetus to set up a mediation scheme. Stages of setting up an in-house mediation scheme Setting up an in-house mediation scheme requires careful planning and a variety of internal and external resources. Below are some of the factors that featured prominently in the establishment of NHS East Lancashire s in-house mediation scheme. Stakeholder engagement: As a trained and accredited mediator, Bailey was able to demonstrate the effectiveness of mediation through the successful completion of a number of difficult mediation cases within the Trust. Raising awareness and selecting potential mediators: A mediation awareness-raising session was attended by approximately 50 NHS East Lancashire employees. Attendees included Managers, Staff Side (Union representatives) and HR professionals. This session included a discussion on organisational conflict, the principles of mediation, as well as a short mediation role play. Subsequently, individuals self-selected to attend an accredited mediation training course. Accredited mediation training: Delegates were trained by Consensio on a 6-day Open College Network (OCN) accredited mediation course. (Table B, p.5) Mediation protocol: A mediation protocol was devised with the support and input of the trained mediators. The protocol provides the terms of reference for the in-house mediation scheme. Championing the scheme: A lot of time was dedicated to championing the scheme and providing leadership to the network of mediators. Mediation co-ordinators: Two mediation co-ordinators were assigned to the scheme. Karl Cockerill, a Union representative, and Gill Catlow, HR manager. Cockerill dedicates three days per week to the role of Alternative Dispute Resolution (ADR) Lead. Cockerill promotes the mediation scheme with frontline staff and co-ordinates the set up of mediations, including the sensitive discussions with parties prior to mediation. Continuing Professional Development (CPD): Mediator debrief sessions and CPD events are held on a regular basis to ensure that mediators are debriefing their cases with each other, learning from each other, and maintaining best practice. Evaluation: An evaluation framework has been created to examine the effectiveness and sustainability of the in-house mediation scheme. (See section on evaluation of scheme, p.6-9) 2009 Consensio Partners Resolution Ltd. 4
5 Table B Accredited workplace mediation training Stories from stakeholders 2009 Consensio Partners Resolution Ltd. 5
6 Evaluating the in-house mediation scheme The success of the NHS East Lancashire in-house mediation scheme can be evaluated on three levels: 1) the human element 2) organisational learning, and 3) cost-savings to the Trust. 1) Human element: Mediation, unlike formal processes, considers the human element of conflict, as well as the psychological impact conflict has on individuals and teams. Mediation allows parties in conflict to resolve their own issues, rather than imposing a solution on them. Though difficult to evaluate, this element is fundamental to mediation. Feedback from mediation parties reflects that they found the experience empowering, even if they were sceptical prior to the mediation process. At NHS East Lancashire, mediation parties are asked to complete an anonymous and confidential evaluation form post-mediation. One of the key themes to emerge from this is that parties feel in control again through the mediation process. I d like to say a big thank you to both mediators. This is a caring initiative and just knowing it is there means a great deal as a powerless employee. Mediation party. Since spring 2008, NHS East Lancashire mediators have carried out 23 mediations, of which 22 have reached a written agreement. This equates to a 96% success rate. The issues brought to mediation have ranged on a spectrum from grumbles between employees to cases of racial harassment and bullying. Some of these cases were destined for an Employment Tribunal had they been dealt with through formal process Consensio Partners Resolution Ltd. 6
7 2) Organisational learning: The in-house mediation scheme was implemented to create a shift in attitudes to conflict resolution at NHS East Lancashire. The mediation scheme has certainly been a trigger in changing the attitudes and approaches of staff in dealing with conflict. NHS East Lancashire employees are now more likely to adopt a collaborative approach when dealing with conflict between managers, HR and union representatives. We never knew we needed the mediation scheme until we had it. Then we knew we had needed it all along. Bonnie Mitchell, Partnership Lead, In the period of time that the in-house scheme has been operating, the number of formal processes (grievance and fair treatment cases) has been reduced by 60%. My perception is that mediation leads to a sustained resolution, whereas more formal processes often seem to resolve the issue, but the discontent reappears in further grievances or relationship issues. Janet Whitworth, Director of HR, Workforce and OD. 3) Cost-savings: As a consequence of embracing the mediation scheme, NHS East Lancashire has realised initial cost-savings of 213,753. The formula used by NHS East Lancashire to determine this figure was based on calculating the potential cost of conflict to the Trust had it used formal processes instead of mediation, and subtracting the actual cost of mediation from this figure. See Table D, p.8-9, for more information on how the Trust calculated this figure. NHS East Lancashire is proud of the success of their in-house mediation scheme. The significant cost-savings, as well as the culture change achieved in just 18 months, have already far outweighed the initial cost of setting up and resourcing the scheme. Table C Cost-savings to NHS East Lancashire 2009 Consensio Partners Resolution Ltd. 7
8 Table D Measuring the cost of conflict 1 Cost Category Details Cost of 23 Formal Processes (Grievance or Fair Treatment Cases) Cost of Management Cost of Witness Cost of Union Management time spent on disciplinary and grievance cases in the public sector is estimated as 14.5 days per case 2. Salaries have been calculated at the mid-point of band 8a (the average rank of staff usually involved). Witness time has been estimated at an average of 4 days per case. Salaries have been calculated at the mid-point of band 6. Union time has been estimated at an average of 5 days per case. Salaries have been calculated at the mid-point of band 6. 65,021 12,420 15,525 Cost of Employment Tribunals (ETs) The CIPD survey, Managing Conflict at Work, notes that on average, a UK employer receives three ET applications a year 3. The survey also finds that 14% of bullying and harassment cases escalate to ET 4, which would equate to three cases per year at NHS East Lancashire. Therefore, the following data has been based on three ET cases. Cost of Management Cost of Witness Cost of Union spent preparing for ET cases in the public sector is estimated as 23 days per case 5. Salaries have been calculated at the mid-point of band 8d (the average rank of staff usually involved). Witness time has been estimated at an average of 4 days per case for staff and 6 days per case for management. Salaries have been calculated at the mid-point of band 6 for staff and the mid-point of band 8a for management. Union time has been estimated at an average of 10 days per case. Salaries have been calculated at the mid-point of band 6. 23,460 5,130 4,050 Cost of ETs The average cost incurred by employers as a result of ET claims in the public sector is estimated as 22, This figure includes settlement, compensation & legal advice. Cost of Sickness Absence 67,605 Cost of Short- Term Absence Due to Stress Average cost to a public sector health organisation is estimated as 11.7 days 7 or 1,153 per employee 8. Stress is the number one cause of short-term absence 9 for non-manual employees, and accounts for 72% of absence in the public sector 10. N.B. The cost of short-term absence has been based on 22 successful mediations. 36,527 Total 229,738 1 This calculation is based on the cost of using formal processes vs. mediation. Set up costs for training accredited mediators are not included nor are the training costs associated with formal processes. 2 CIPD (2004). Managing Conflict at Work, p.9 and CIPD (2007). Managing Conflict at Work, p.4. 3 CIPD (2004). Managing Conflict at Work, p.4. 4 Ibid., p Ibid., p CIPD (2007). Managing Conflict at Work, p CIPD (2008). Absence Management, p.6. 8 Ibid., p Ibid., p Ibid., p Consensio Partners Resolution Ltd. 8
9 Cost of 23 Mediations Cost of Mediators and Mediation Coordinator s Mediator time has been estimated as three days per case (two mediator days and a further day for debrief/follow-up with the parties). Salaries have been calculated at the mid-point of band 8a. The mediation co-ordinator s time has been based on 23 mediations cases. Salary has been calculated at the mid-point of band 5. ( 15,985) Cost-benefit to NHS East Lancashire 213,753 Key factors for success NHS East Lancashire is a valuable case study of a successful and sustainable in-house mediation scheme. Through the case study example, organisations can learn important lessons which will support them as they think about whether and how to implement mediation into their organisations. Below are some of the key lessons that can be extracted from the NHS East Lancashire case study. Partnerships: The scheme was created with equal contribution and support from Managers, Human Resources and Staff Side representatives. Champion: Within the Trust, Bailey has provided the necessary passion and commitment to drive the scheme forward. She has used her Human Resources background and experience to influence and ensure that the scheme is embedded and mainstreamed within the Trust. Ownership: NHS East Lancashire made the strategic decision to distribute ownership of its in-house mediation scheme to Human Resources, Management and the Partnership Lead (Unions). This shared ownership takes place in a joint steering group. The mediators (via the mediation network group) are accountable to this group. Mediation protocol: Rather than a one-size-fits-all approach, NHS East Lancashire involved stakeholders, including internal mediators, to draft a mediation protocol. This protocol reflects the ideals of the scheme and sets out how and when mediation can be accessed. Mediation co-ordinator: Organising an in-house mediation scheme requires time, commitment, resources and logistical support. In the case of NHS East Lancashire, having two mediation co-ordinators has ensured the smooth functioning of the scheme. Mediators Network (CPD) Mediators need a certain level of after-care and support to be able to function effectively in their role. NHS East Lancashire holds regular mediator network meetings which are used as debriefing sessions. The sessions are also used as peer support and learning environments, and they provide a valuable source of CPD and additional training. Evaluation: Continuous evaluation of the mediation scheme is essential and NHS East Lancashire has considered various quantitative and qualitative factors for this purpose. These represent a multi-faceted definition of a successful scheme Consensio Partners Resolution Ltd. 9
10 Conclusion It is important, when looking at the NHS East Lancashire case study, to put its in-house mediation scheme into context. The scheme has only existed for 18 months, and already, it has made a fundamental impact on the Trust, in terms of cost- and time-savings, as well as culture change. The scheme has reaped quantitative and qualitative benefits to the Trust at a rapid pace. This is an important consideration for other organisations that are thinking about implementing mediation into their policies and practices: firstly, results can be and have been achieved very quickly; and secondly, the initial costs of setting up an in-house scheme are quickly outweighed by future cost- and time-savings. About Consensio Consensio is a leading provider of conflict management and workplace mediation solutions to organisations across the UK. Consensio believes that each client is unique and its team of experts pride themselves in creating and delivering cost-effective and bespoke solutions to help manage workplace conflict. Consensio works in partnership with its clients and offers an array of services, including: mediation, conflict coaching, consultancy and accredited mediation training. Consensio s customers span small organisations to FTSE 100 enterprises, in the private, public and third sectors across the UK. For more information about Consensio, please visit: About NHS East Lancashire NHS East Lancashire is situated in Lancashire in the North West of England. The Trust serves a population of 388,400 who reside in the five boroughs of Burnley, Hyndburn, Pendle, Ribble Valley and Rossendale. NHS East Lancashire has a budget of 601 million and has responsibility to provide, plan and fund appropriate health services for the local population. NHS East Lancashire s broad functions are to engage with the local population to improve health and well-being. The Trust s strategy is to reverse and redress the health inequalities in the area by December 2011, and in particular, to Save a Million Years of Life by For more information about NHS East Lancashire, please visit: Consensio Partners Resolution Ltd. 10
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