HR needs Architects not administrators

1. HR needs Architects not administrators Steve Price Strategic Skills Seminar for Africa Mar 24th 2004

2. Agenda • High Performing Organisations • HR Models in play today • The black box • How to drive the solution

3. The business drive to create High Performing Teams • Business context of change has created the drive • Products and services are easily copied • Employees are the component in the supply chain that adds value • People and the way that they deliver a service or product are a source of competitive advantage

4. Gallup Research Findings • Research Findings • Organisations need to ‘create a better marriage between the dreams of their workers and the drive of the company to win’ hence the ‘12 questions that matter’ • There is a vivid link between people & company performance. The most ‘engaged’ workplaces (those in the top 25% of Q12 scores) were: • 50% more likely to have lower turnover • 56% more likely to have higher than average customer loyalty • 38% more likely to have above average productivity • 27% more likely to report higher profitability

5. People are responsible for a variety of assignments in which they complete meaningful work solve problems and participate in decisions Jobs are designed to provide ownership and responsibility Leaders build an environment of trust Vision and values are understood Values such as collaboration and mutual respect are fostered Employees control resources, systems, methods, working conditions and schedules Decision making occurs at the lowest possible level Individuals have the data to measure their own performance Leaders and associates work together to establish clear goals, expectations and accountabilities Leaders champion continuous improvement and facilitate learning and improvement Performance feedback comes from peers, customers and direct reports Reward and recognition are aligned to reinforce the desired behaviours Characteristics of a High Performing Organisation Berthnal Learning from HIPOS So whose job is it to sort this? Performance management Role design Leadership Reward design Culture and behaviours Role design

6. Personnel Perspective Compensation perspective Alignment perspective HIPO perspective Non strategic limited to process and employee is off at the first chance Some strategic links in pay employee says its OK but no development and its hard work Business has at least heard of HR and say the right thing but HR is off the pace Strategic links are clear and pay is a real incentive – employees want to be here HR Models in use today Ulrich 2002

7. It starts with Strategic fit HIPO perspective Alignment perspective Hi DISCONNECTED DRIVING Compensation perspective Effectiveness of Strategy DRIFTING DISFUNCTIONAL Personnel perspective Lo Hi Lo Effectiveness of HR Strategy

8. Customers experiences reflect the culture and strategy of the organisation BLACK BOX Business Strategy Customer Experience HR Strategy And Doables

9. What’s in the black box?

10. Resource Management Consistent HR practices Integrated Leadership practices Money still matters Focus on the employee Watson Wyatt conclusions • Steve sees ….. • Binge workers • Knowledge workers • Lack of hierarchy • Clear leadership • Customer focused • Pay to win or pay to play 2 tiered pay structures • Sharing information • Using employee feedback

11. Ernst and Young conclusions • “The major challenge for CEOs over the next 20 years will be the effective deployment of human assets. …. …… its about psychology. Its about getting one more individual to be more productive, more focussed, more fulfilled than he was yesterday’ If this is true how about this thought? ……………….. • 18th century the lawyers century • 19th century engineers century • 20th century engineers till the accountants took over • 21st century HR professionals ?

12. A case Study – Epsom NHS Elective Orthopaedic Centre Communications BLACK BOX Role Definition Business Strategy Organisation Development Recruitment Induction Culture & Values Desired outputs known Patient experience Development Ways of working Performance Management High performing team aspiration Reward processes Training

13. What are the implications for HR in dealing with the Diaspora • If we want them we have to ‘go get em’ • Package building • Development deals will be key • More tailor made deals to match motivation • The job? • The place of work? • The development? • The money? • The brand on the cv? • HR Directors have potential database as part of succession planning • Able to influence the recruitment of better people than we have now

14. CBC Products to meet these needs • HRSR - HR Strategic review • HRD - HR Development • CMP - Change Management Programme Details on the tables

15. Autopoiesis values • The distinctive values of Autopoiesis are respect for who people are and empowerment to realize more of their potential.   'People don't change that much. Don't waste time trying to put in what was left out. Try to draw out what was left in. That is hard enough.' The Gallup Organisation 'Stop trying to change people. Start trying to help them become more of who they already are.' Ernst and Young

16. HR needs Architects not administrators Steve Price Strategic Skills Seminar for Africa Mar 24th 2004

17. Gallup 12 questions that matter • 12 Questions The research suggests that Q1-6 are hygiene factors but Q7-12 determine whether or not employees are engaged and stay with you: • Do I know what is expected of me at work? • Do I have the right materials and equipment that I need in order to do my work right • At work, do I have the opportunity to do what I do best every day? • In the past seven days, have I received recognition or praise for doing good work? • Does my supervisor, or someone at work, seem to care about me as a person? • Is there someone at work who encourages my development?

18. Gallup 12 questions that matter part 2 7. At work, do my opinions seem to count? 8. Does the mission or purpose of my company make me feel that my job is important? 9. Are my co-workers committed to doing quality work? 10. Do I have a best friend at work? 11. In the past six months, has someone talked to me about my progress? • In the past year, have I had the opportunity at work to learn & grow?