HR in sustainable organisations

1. HR in sustainable organisations Presentation by Bob Welsh, CEO VicSuper Chairperson Sustainability Victoria Victorian TAFE Association HR Conference 2006 Sustainable TAFE from a HR Perspective Yarra Valley Conference Centre, Dixons Creek Wednesday 4 May 2006

2. The three issues that I will cover today What is a sustainable organisation? Does HR have a seat at the executive table in a sustainable organisation? And if so, how?

3. Sustainability “Helping to raise the quality of life for all people while preserving ecological integrity.” Ecos Corporation

4. What is a sustainable organisation? An organisation that achieves its objectives creating a net benefit – economically, socially and environmentally – for all stakeholders.

5. If your organisation is a company Sustainability means increasing long term shareholder value (financial performance) through integrating and improving economic, social and environmental performance. It is about embracing the opportunities and managing the risks deriving from economic, social and environmental developments

6. An example – personal mobility The automobile Economic Product quality, supply chain management, customer relationships, brand management Social Your safety and the safety of others people management practices Environmental Carbon emissions Renewable fuels

7. Another example – TAFE Economic Education quality, brand development, funding and emerging markets strategy Social Social inclusion policies, education services to students, curriculum development People management practices Environmental Carbon emissions, resource use efficiency, business opportunities in curriculum development

8. A sustainable company creates value A sustainable company will increase long term shareholder value because it: • sees the risks and acts early, and • seizes the opportunities before competitors do

9. A seat at the executive table Does HR have a seat at the executive table in a sustainable organisation? YES – directly or indirectly Because people management practices matter

10. People management and financial performance Is there a link between people management practices and financial performance in a sustainable organisation? What the research tells us.

11. Research findings The research shows people management practices are positively correlated with financial performance in:- • Performance driven workplaces • Emotional engagement • Leadership behaviour

12. Probability of a positive correlation with financial performance

13. Probability of a positive correlation with financial performance

14. Probability of a positive correlation with financial performance

15. Obtaining a seat at the executive table How should HR professionals obtain a seat at the executive table in a sustainable organisation?

16. HR the key to more value added Need to demonstrate to the CEO the link between people management practices and organisation performance.

17. HR the key to more value added This means:- • Creating a performance driven workplace • Aligning company and personal values • Connecting performance and engagement through leadership

18. HR in sustainable organisations Presentation by Bob Welsh, CEO VicSuper Chairperson Sustainability Victoria Victorian TAFE Association HR Conference 2006 Sustainable TAFE from a HR Perspective Yarra Valley Conference Centre, Dixons Creek Wednesday 4 May 2006