Developing Innovation and the role of HR

1. Developing Innovation and the role of HR Annalisa Gigante 5 October 2006

2. Index • Defining Innovation • Innovation: the future growth engine • The key questions • The evolution of HRM • Improving your Innovation potential • Case study: the Innovation process at Manpower • Networking as a competitive advantage

3. Defining Innovation • the process of making improvements by introducing something new (Wikipedia) • the introduction of something new (Merriam-Webster Online) • the successful exploitation of new ideas (Dept of Trade and Industry, UK) Successful innovation links new ideas and technology with market needs and creates value

4. Innovation: the future growth engine • Innovation fuels the Company’s growth • Innovation is everywhere • R&D • New products • New / improved processes • ..from disruptive to evolutionary change Innovation is critical to the future success of a Company

5. How do you promote and harness innovation? How can HR help? The key questions

6. Productivity & PerformanceManagement The evolution of HRM HR Managers are becoming business partners by shifting their focus from administrative output to outcome and results, through: Strategy HRM Strategy Facilitating Cultural Change • understanding the business • personal leadership skills and credibility • ability to manage change • ability to apply the best HR management practices to the business goals. Operations HR Administration Functions Transactions Strategic HR will enhance Innovation

7. Improving your innovation potential Performance Branding Training Innovation Potential Talent architecture Organisation Culture Metrics

8. Branding • What is the role of innovation within the organization? • Is Innovation a key driver of the Company’s brand? • Is it fundamental to the company’s image? • …or is it a secondary objective? • Attract the right talent to the organization • Deliver the brand promise to customers. HR has a role to play also in defining and delivering employer branding.

9. Business Strategy People & Organisation • Technology: • Process • Information Organisation culture • How risk-averse is the organization? • Does it encourage or stifle creativity? • Is it open or resistant to change? • To what extent does it encourage knowledge-sharing inside and outside the organization? • Is there a knowledge management system in place? • Has the company set up discussion communities around key issues? • Is the word “Innovation” often used in internal communications? • Is the company more dynamic and fast-moving or more cautious and bureaucratic?                    A company’s culture is critical in delivering and encouraging innovation

10. Strategic Partner Change Agent Effectiveness Leadership Quality Processes & services Efficiency Into Within Out Metrics • Which metrics does the company use today? • Are these encouraging the desired behaviour of employees? • How are bonuses set? • Do they encourage innovation or are they purely results-driven? • Are there qualitative as well as quantitative elements in the goals? • Are incentives individual or team-based? Measuring success will drive behaviour

11. Talent architecture • Attract, develop, plan and retain key talent with an integrated view • Define each role’s specific technical and personal characteristics. SORT OUT AND SEPARATE ATTRACT EMPLOYEES RETAIN TALENT INSERT IN ORGANISATION People-based strategies DEVELOP TALENT HR OPERATIONS HR can help line management define the right Talent Architecture for the company ALIGN WITH STRATEGY

12. Training • Assess current skills and gaps • Plan & carry out targeted training activities • Team Building • Acquiring specific technical know-how • Tools for creativity and innovation • mind-mapping • Brainstorming • …

13. DEVELOPMENT IDEA GENERATION LAUNCH DISCOVERY FEASIBILTY TESTING Performance • HR together with top management, has the key role in creating and maintaining a High Performance Organisation • Engaging people’s hearts and minds to deliver profitable growth. • Establishing stage-gate processes for innovation • allow new ideas to be assessed and tested • Ensure that less-profitable or less relevant innovation projects can be stopped before the investment in them becomes potentially unprofitable. The Innovation Process

14. Improving your innovation potential Performance Branding Training Innovation Potential Talent architecture Organisation Culture Metrics

15. Country’s process innovation efficiency and effectiveness Country’s market services innovation Global vs. local innovation validation Confirmed Global projects Corporate Centers teams innovation for new activities Case study: the Innovation process at Manpower allows local innovations and global leverage when relevant Source: Manpower

16. Networking as a competitive advantage • Most of today’s innovation happens in Teams • Joint projects business – academia • Knowledge management • Managing Networks inside and outside companies • Working with start-ups • Corporate venturing • Transferring ideas from scientific research into business Focus on skills, technology and processes that build collaboration: communicating, sharing information, organising, co-ordinating

17. Appendix

18. The HRM Paradigm Shift • HR practitioners, in making the change to business leaders, need to shift their focus from just ‘managing resources & processes & transactional efficiencies’ towards defining & managing the framework for a high performance organization

19. The Challenge for HRM • Resourcing Talent • Achieving High Performance • Talent Development • Creating a Quality Work environment • Recognition, Reward, Remuneration • Benchmarking • … • Key to success in this transformation are: • Ensuring a coordinated and integrated HR service offer, from candidate attraction to separation • Aligning people with strategy

20. The world of employment is changing • The war for talent is accelerating • Retention and Development are critical • Re-skilling is a key challenge as low level skill structural unemployment is emerging • Workforces are more and more mobile • Individuals have new life style expectations : • more innovation • creative thinking • less hierarchy • new employment models • Leading corporations must embrace the wave of change

21. SORT OUT AND SEPARATE ATTRACT EMPLOYEES INSERT IN ORGANISATION RETAIN TALENT People-based strategies DEVELOP TALENT HR OPERATIONS ALIGN WITH STRATEGY EXPLOIT INNOVATION POTENTIAL • Evaluation and planning of needs for • Perms • Temps • Consultants • Attraction & Selection • Mobilization of attraction assets • e.g.Company Culture • e.g.Salary & Package • e.g Brand • Performance assessment • Technical assessment • Separation and Outplacement • Induction Training • Perms • Temps • Consultants • On site management for temps • Perms + temps co-productivity management • Employee + consultants teams co-productivity management • Compensation • Incentives • Rewards (tangible / intangible) • Labor Relations management • Legal management • HR “back office” processes (pay, 401k, benefits, etc.) • Assessment • Career Development • Transfer • HiPo pool management • Definition of needs • Training • Team Building • Motivation • Alignment measurement • Enabling innovation • Reward for innovation

22. DEVELOPMENT IDEA GENERATION LAUNCH DISCOVERY FEASIBILTY TESTING The Innovation Process