adaptability for hr :: shaping the future (2012)
DESCRIPTION
practice and thought leadership in the profession, bringingtogether experts from across industry to discuss the mostpressing topics facing HR and to enjoy some excellent foodand drink.As the interplay of social, economic and demographic forcescontinues to affect UK organisations in unpredictable ways,HR has a key role to play in helping the business to anticipate,respond and adapt to rapidly-changing conditions.The theme for the evening was HR’s role in shaping the organisation’s future in a deeply uncertain world. Is traditional strategic planning the answer, or does HR need to radically change its thinking and approach to enable the organisation to succeed?That was the question posed by special guest Max McKeown, a well-known writer, consultant, and researcher specializing in innovation strategy, leadership and culture. Max delivered an inspiring and at times controversial talk, challenging HR Board members to rethink their role in a world defined by constant, unexpected change.The following report captures the key themes and discussion points from the evening.TRANSCRIPT
Shaping the Future
The Oracle HR Board series was established to drive best practice and thought leadership in the profession, bringing together experts from across industry to discuss the most pressing topics facing HR and to enjoy some excellent food and drink.
As the interplay of social, economic and demographic forces continues to affect UK organisations in unpredictable ways, HR has a key role to play in helping the business to anticipate, respond and adapt to rapidly-changing conditions.
The theme for the evening was HR’s role in shaping the organisation’s future in a deeply uncertain world. Is traditional strategic planning the answer, or does HR need to radically change its thinking and approach to enable the organisation to succeed?
That was the question posed by special guest Max McKeown, a well-known writer, consultant, guru and researcher specialising in innovation strategy, leadership and culture. Max delivered an inspiring and at times controversial talk, challenging HR Board members to rethink their role in a world defined by constant, unexpected change.
The following report captures the key themes and discussion points from the evening. I hope you will find it useful and thought-provoking.
Richard Haycock HCM Sales Director, Oracle Corporation
ORACLE HR BOARD REPORT Wednesday 26 SeptemberThe Savoy | London
Recognising and Responding to “WTF Moments”
In order to cope with change, organisations need to be able to recognise it, respond appropriately, and adapt quickly to accommodate it. A two-year or five-year business plan is of little help, as it’s usually predicated on the belief that business will continue more or less as usual. HR Board members also identified other shortcomings with rigid business plans; particularly the way they discourage creative thinking and rapid decision-making.
But just throwing away the plan may not be the solution. Organisations that have no plan end up simply reacting to what’s going on day by day. They’re unable to take a step back and see the bigger picture. They miss the big changes going on in the marketplace – from technological advances to environmental change – and fail to spot competitors and opportunities coming from new directions.
HR Board members were asked to imagine the kind of future they would like to create for their organisation. One member doubted their ability to shape the future: “I want to understand and anticipate the future, but I feel I have no influence over it”. Another said that global political and economic forces – such as the rise of China as a superpower – have an uncontrollable influence on what happens in this country. But members agreed that they had a will and a responsibility to help the organisation be “the best it can be”.
The key to achieving that is to become the kind of enterprise that can quickly recognise and adapt to change. The ability to respond appropriately to what speaker Max McKeown calls “WTF moments” – moments where huge and unexpected change takes place in the business environment – will determine which of four categories the organisation falls into.
Understanding the Future
No one knows for sure what the future holds, but many of us carry in our heads an idea of what it will be like. HR Board members felt that the future for their organisations was uncertain, but that change was inevitable – especially due to the rapid development of new mobile technologies that are transforming the nature of the workplace.
One member saw a future full of “massive opportunities”, but with change happening so fast, the challenge is to identify these opportunities early and create an organisational culture that is equipped to move swiftly to capitalise on them.
In creating that culture, traditional approaches to business planning may not help. In a typical business, planning is done in long cycles – of a year or more – and tends to be based on past performance and the planners’ previous experience. In stable economic conditions, that approach may keep the business on the right track. But in the chaotic environment that many organisations are in today, using the past to guide future planning can seriously derail the organisation.
That’s because executives who use the past as a guide to what to do next are often blind to the change happening around them. Failing to identify and adapt to that change can be fatal for the business. Yet that’s what happens in many large organisations – particularly ones where senior management have risen through the ranks over many years, absorbing the culture and approach of previous generations of leaders.
calib
re o
f th
e pe
ople
bei
ng re
crui
ted
into
HR,
it d
id fe
el
thei
r pro
fess
iona
l dev
elop
men
t was
skew
ed to
o m
uch
tow
ards
inw
ard-
look
ing
skill
s rat
her t
han
thos
e th
at c
ould
he
lp th
e w
ider
bus
ines
s. T
he ir
ony
of th
is po
orly
thou
ght-
out s
yste
m o
f de
velo
pmen
t was
not
lost
on
the
Boar
d,
with
one
mem
ber a
skin
g: ‘w
ho d
evel
ops t
he d
evel
oper
s?’
Acc
ordi
ng to
HR
Mag
azin
e th
ere
are
747
inst
itutio
ns in
the
UK
offe
ring
HR
man
agem
ent c
ours
es a
nd 1
49 u
nive
rsiti
es
in th
e co
untr
y of
ferin
g po
stgr
adua
te H
R co
urse
s3 . A
nd w
hile
a CI
PD q
ualifi
catio
n is
impo
rtant
to d
evelo
ping
pr
ofes
siona
l ski
lls, i
t’s in
oth
er b
usin
ess a
reas
whe
re y
ou’ll
di
scov
er n
ot o
nly
wha
t you
r bus
ines
s doe
s, bu
t how
the
peop
le on
the
grou
nd n
eed
to d
o it.
The
Boa
rd w
ere
adam
ant:
havi
ng th
is kn
owled
ge a
nd in
sight
allo
ws H
R pr
ofes
siona
ls to
add
the
valu
e th
at C
EO
s dem
and.
Bac
k to
bas
ics
Bein
g m
ore
com
mer
cial
in o
utlo
ok a
lso m
eans
that
HR
deliv
ers o
n its
cor
e pr
emise
. The
re w
as a
con
cern
acr
oss
the
Boar
d th
at w
e’ve
mad
e a
big
noise
ove
r rec
ent y
ears
ab
out t
he ro
le w
e ca
n pl
ay in
hel
ping
ent
erpr
ises m
eet
thei
r stra
tegi
c go
als,
but i
n do
ing
so, h
ave
falle
n do
wn
on
del
iver
ing
the
vita
l bas
ics.
The
stor
y of
form
er Y
ahoo
! CE
O S
cott
Thom
pson
’s in
accu
rate
CV
4 mig
ht b
e se
en b
y so
me
as a
n in
side
fight
for
boar
droo
m su
prem
acy
by sh
areh
olde
rs, b
ut it
also
hig
hlig
hts
a ba
sic a
nd e
mba
rras
sing
HR
failu
re. I
f w
e ca
n’t m
anag
e pr
e-em
ploy
men
t che
cks,
payr
oll,
expe
nses
, hol
iday
s and
tra
inin
g co
rrec
tly, t
hen
busin
ess l
eade
rs w
ill –
qui
te ri
ghtly
–
ques
tion
wha
t we
can
deliv
er o
n a
stra
tegi
c lev
el.
Perh
aps H
R ha
s spr
ead
itsel
f to
o th
in in
its d
esire
to
be ta
ken
serio
usly
at t
he to
p ta
ble?
Som
e of
the
Boar
d po
inte
d to
an
emer
ging
Eur
opea
n m
odel
, whe
re d
eliv
ery
and
stra
tegy
fall
with
in th
e re
mit
of tw
o di
stin
ct H
R gr
oups
, as a
pos
sible
futu
re.
Big
Dat
a
Two
year
s ago
, the
(the
n) G
oogl
e C
EO
Eric
Sch
mid
t cl
aim
ed th
e w
orld
cre
ates
the
sam
e am
ount
of
data
eve
ry
two
days
as i
t pro
duce
d be
twee
n th
e da
wn
of c
ivili
satio
n an
d 20
03. T
he in
tern
et is
aw
ash
with
com
petin
g cl
aim
s as
to th
e am
ount
of
info
rmat
ion
we’r
e ge
nera
ting
and
whi
le
the
true
am
ount
may
nev
er a
ccur
atel
y be
kno
wn,
the
age
of B
ig D
ata
is he
re.
“Tw
o ye
ars a
go, t
he (t
hen)
Goo
gle
CE
O E
ric S
chm
idt c
laim
ed th
e w
orld
cre
ates
the
sam
e am
ount
of
data
eve
ry tw
o da
ys a
s it p
rodu
ced
betw
een
the
daw
n of
civ
ilisa
tion
and
2003
”
Big
Dat
a is
the
term
use
d to
des
crib
e th
e hu
ge a
mou
nts o
f un
stru
ctur
ed a
nd se
mi-s
truc
ture
d da
ta a
com
pany
pro
duce
s, w
hich
is o
ften
too
large
for t
radi
tiona
l rela
tiona
l dat
abas
es
to a
nalys
e. It
is pr
oduc
ed fr
om a
rang
e of
sour
ces s
uch
as
web
sites
, app
licat
ions
, ser
vers
, net
wor
ks a
nd m
obile
dev
ices.
Big
Dat
a is
big
new
s bec
ause
it e
nabl
es c
ompa
nies
to sl
ice
into
their
bus
ines
s int
ellig
ence
, giv
ing
them
the
pow
er to
se
gmen
t cus
tom
ers,
targ
et th
eir m
arke
ting
and
pred
ict h
ow
their
cus
tom
ers w
ill b
ehav
e. A
n in
sight
into
how
the
mar
ket
view
s Big
Dat
a is
offe
red
by so
ftwar
e co
mpa
ny S
plun
k –
whi
ch sp
ecial
ises i
n an
alysin
g lar
ge a
mou
nts o
f in
form
atio
n –
and
whi
ch w
as v
alued
at 2
7 tim
es it
s rev
enue
in it
s rec
ent
IPO
5 . A
nd u
nlik
e Fa
cebo
ok, i
ts sh
are
price
has
not
dro
pped
.
Whi
le te
chno
logi
es d
o ex
ist th
at a
llow
bus
ines
ses t
o an
alys
e an
d ac
t upo
n Bi
g D
ata,
the
busin
ess f
unct
ions
ac
tivel
y ca
pita
lisin
g on
its p
oten
tial a
re c
urre
ntly
led
by
sale
s and
mar
ketin
g.
The
clo
thin
g ch
ain
Zar
a is
a ca
se in
poi
nt. I
t com
bine
s a
cons
tant
ana
lysis
of
its s
ales
dat
a w
ith re
gion
al
prod
uctio
n fa
cilit
ies
base
d cl
ose
to it
s m
ain
reta
il ou
tlets
. Sa
les
data
is tr
ansm
itted
from
sho
ps d
irect
ly b
ack
to
prod
uctio
n st
aff,
who
are
abl
e to
see
wha
t des
igns
, siz
es
and
colo
urs
are
selli
ng. P
rodu
ctio
n ca
n th
en b
e al
igne
d to
de
man
d, e
nsur
ing
the
reta
iler i
s no
t lef
t with
a s
urfe
it of
st
ock
at th
e en
d of
a s
easo
n, a
nd is
ext
ract
ing
max
imum
va
lue
from
its
cust
omer
s.
A re
cent
new
s sto
ry a
bout
Am
erica
n re
taile
r Tar
get a
lso
show
s the
revo
lutio
nary
effe
ct B
ig D
ata
is ha
ving
, with
the
com
pany
abl
e to
det
erm
ine
whi
ch o
f its
cus
tom
ers w
ere
preg
nant
and
whe
n th
eir c
hild
was
due
6 . Th
is en
abled
it to
se
nd a
ds to
exp
ecta
nt m
othe
rs d
urin
g th
eir se
cond
trim
este
r, ta
rget
ing
them
with
spec
ific
baby
-relat
ed p
rodu
cts.
But i
s HR
read
y fo
r Big
Dat
a? A
necd
otal
UK
evi
denc
e su
gges
ts n
ot, w
ith se
nior
HR
lead
ers o
nly
now
get
ting
to
grip
s with
wha
t it m
eans
and
off
ers.
How
ever
, tha
t’s n
ot to
sa
y th
e di
scip
line
is at
faul
t, as
HR
team
s are
rare
ly st
affe
d w
ith st
atist
icia
ns a
nd d
ata
anal
ysts.
But
with
Big
Dat
a al
read
y su
perc
harg
ing
cust
omer
inte
ract
ion,
firs
t-mov
er
HR
team
s are
alre
ady
disc
over
ing
the
effe
ct it
can
hav
e on
em
ploy
ee e
ngag
emen
t.
For i
nsta
nce,
food
serv
ices c
ompa
ny A
RAM
ARK
leve
rage
s Bi
g D
ata
to li
nk b
usin
ess r
enew
al ra
tes t
o em
ploy
ee
satis
fact
ion
levels
and
oth
er fa
ctor
s7 . Se
nior
exe
cutiv
es u
se a
co
mpa
ny-w
ide
dash
boar
d to
aler
t the
m if
mea
sure
s cha
nge,
givi
ng th
em th
e op
portu
nity
to ta
ke c
orre
ctiv
e ac
tion
befo
re
clien
t rela
tions
hips
and
reve
nues
are
impa
cted
.
Som
e of
the
Boar
d ha
ve se
en B
ig D
ata
havi
ng a
pos
itive
im
pact
with
in th
eir o
wn
orga
nisa
tions
, with
one
hav
ing
used
an
anal
ysis
of a
bsen
teei
sm d
ue to
flu
to c
onvi
nce
thei
r C-le
vel l
eade
rshi
p th
at fu
ndin
g va
ccin
atio
ns w
ould
sa
ve th
e co
mpa
ny m
oney
in th
e lo
ng ru
n.
Con
clus
ion
This
HR
Boar
d sa
w a
gen
eral
them
e de
velo
p th
at h
as
been
miss
ing
from
main
stre
am H
R th
ough
t – th
at fa
r fr
om d
eser
ving
a p
lace
on e
xecu
tive
boar
ds, w
e fir
st
need
to e
arn
the
right
.
One
are
a of
con
cern
that
met
with
una
nim
ous
appr
oval
was
the
need
to c
hang
e th
e m
inds
et o
f th
e di
scip
line;
shift
ing
away
from
bei
ng o
bses
sed
with
pr
oces
s and
pro
cedu
re to
bei
ng m
ore
agile
an
d bu
sines
s frie
ndly.
Whe
ther
it’s
true
or n
ot, a
per
cept
ion
exist
s am
ong
busin
ess l
eade
rs th
at H
R ca
n so
met
imes
be
a ro
adbl
ock
to re
actin
g to
fres
h m
arke
t con
ditio
ns.
This
fed
into
a se
cond
train
of
thou
ght –
that
to a
dd
real
valu
e to
our
org
anisa
tions
, we
need
to b
ecom
e m
ore
prag
mat
ic an
d co
mm
ercia
lly a
ttune
d. A
bove
all
else,
we
need
to re
mem
ber w
e’re
prim
arily
em
ploy
ed
to h
elp o
ur o
rgan
isatio
ns su
ccee
d at
wha
t the
y do
. W
e’re
busin
ess p
eopl
e fir
st; p
eopl
e m
anag
ers s
econ
d.
Fina
lly, w
hile
Big
Dat
a lo
oks s
et to
com
plet
ely c
hang
e th
e w
ay o
rgan
isatio
ns u
se th
eir h
uman
reso
urce
s, th
e di
scip
line
is st
ill in
the
early
stag
es o
f lea
rnin
g w
hat i
t can
do.
HR
prof
essio
nals
lack
the
skill
s to
succ
essf
ully
expl
oit t
he c
ontin
uing
exp
losio
n in
bu
sines
s dat
a, an
d th
at is
why
our
lear
ning
cur
ve
begi
ns n
ow.
OR
A_H
R-W
riteu
p_12
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29.in
dd
4-5
16/0
7/20
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14:3
7:46
“ I want to understand and anticipate the future, but I feel I have no influence over it”
– HR Board Member
Four Types of Organisation
Organisations broadly fall into one of four categories depending on their ability to move with the times.
Collapsing organisations have outlived their usefulness. Nobody needs what they offer, as better, more useful and more attractive alternatives have sprung up elsewhere. These organisations have failed to recognise and respond adequately to change in the wider environment. They are, in effect, doomed.
Surviving organisations are managing to maintain relevance for now, but are probably having to work very hard to maintain the status quo, and are not responding nimbly or effectively to change in the marketplace. They are running to stand still, and what they do next will determine whether they become a collapsing organisation or a thriving one.
Thriving organisations are making the most of current conditions. They are relevant and in demand, and they do what they do very well. They recognise and accommodate changing conditions in order to make incremental improvements to what they do and offer. What a thriving organisation doesn’t do – and which may ultimately be its downfall – is alter the rules of the game. They make the best of the current environment, but aren’t active agents of change.
Transcending organisations are active ‘game-changers’. They recognise change on micro and macro levels, and come up with revolutionary new ideas that break with current ways of doing things and introduce entirely new rules of engagement that create (at least for a while) prosperity and plenty. Other organisations are forced to change their own game in response, but can only do so if they recognise and understand what the transcending organisation is doing.
The HR Board debated whether it’s a worthwhile ambition to become a ‘transcending’ organisation in the current economic climate, when many organisations are happy just to be ‘surviving’. There was a perception that to aim for anything higher than ‘thriving’ could involve an unacceptable amount of risk – when there’s no money to fund expensive experiments or accommodate expensive mistakes.
The Role of HR
The role of HR should be to enable the organisation to get to a transcendent position, and stay there for as long as possible. That means creating a culture and a mindset where the entire organisation is able to recognise change, understand what needs to be done to accommodate it, and quickly adapt according to those insights.
HR board members were invited to identify ways in which they could prepare the organisation for rapid change. Suggestions from around the table included:
• Paint a simple vision of the future: so that everyone knows where the organisation is trying to get to, and making decisions will bring it closer to that vision.
• Carrot and stick: rewarding behaviours that identify and adapt to change, and penalising those that don’t.
• Watch and learn: see how completely different organisations – of different sizes or in different industries – adapt to change, and learn from their behaviour.
• Set expectations: make it clear what’s expected from everyone in the organisation in terms of recognising and responding to change.
• Encourage curiosity: leaders and employees who are curious about why things work (or don’t work) are better able to embrace and even drive change.
• Create time to think: people at all levels need to have the opportunity to step back from day-to-day work and think constructively about where the organisation is going.
calib
re o
f th
e pe
ople
bei
ng re
crui
ted
into
HR,
it d
id fe
el
thei
r pro
fess
iona
l dev
elop
men
t was
skew
ed to
o m
uch
tow
ards
inw
ard-
look
ing
skill
s rat
her t
han
thos
e th
at c
ould
he
lp th
e w
ider
bus
ines
s. T
he ir
ony
of th
is po
orly
thou
ght-
out s
yste
m o
f de
velo
pmen
t was
not
lost
on
the
Boar
d,
with
one
mem
ber a
skin
g: ‘w
ho d
evel
ops t
he d
evel
oper
s?’
Acc
ordi
ng to
HR
Mag
azin
e th
ere
are
747
inst
itutio
ns in
the
UK
offe
ring
HR
man
agem
ent c
ours
es a
nd 1
49 u
nive
rsiti
es
in th
e co
untr
y of
ferin
g po
stgr
adua
te H
R co
urse
s3 . A
nd w
hile
a CI
PD q
ualifi
catio
n is
impo
rtant
to d
evelo
ping
pr
ofes
siona
l ski
lls, i
t’s in
oth
er b
usin
ess a
reas
whe
re y
ou’ll
di
scov
er n
ot o
nly
wha
t you
r bus
ines
s doe
s, bu
t how
the
peop
le on
the
grou
nd n
eed
to d
o it.
The
Boa
rd w
ere
adam
ant:
havi
ng th
is kn
owled
ge a
nd in
sight
allo
ws H
R pr
ofes
siona
ls to
add
the
valu
e th
at C
EO
s dem
and.
Bac
k to
bas
ics
Bein
g m
ore
com
mer
cial
in o
utlo
ok a
lso m
eans
that
HR
deliv
ers o
n its
cor
e pr
emise
. The
re w
as a
con
cern
acr
oss
the
Boar
d th
at w
e’ve
mad
e a
big
noise
ove
r rec
ent y
ears
ab
out t
he ro
le w
e ca
n pl
ay in
hel
ping
ent
erpr
ises m
eet
thei
r stra
tegi
c go
als,
but i
n do
ing
so, h
ave
falle
n do
wn
on
del
iver
ing
the
vita
l bas
ics.
The
stor
y of
form
er Y
ahoo
! CE
O S
cott
Thom
pson
’s in
accu
rate
CV
4 mig
ht b
e se
en b
y so
me
as a
n in
side
fight
for
boar
droo
m su
prem
acy
by sh
areh
olde
rs, b
ut it
also
hig
hlig
hts
a ba
sic a
nd e
mba
rras
sing
HR
failu
re. I
f w
e ca
n’t m
anag
e pr
e-em
ploy
men
t che
cks,
payr
oll,
expe
nses
, hol
iday
s and
tra
inin
g co
rrec
tly, t
hen
busin
ess l
eade
rs w
ill –
qui
te ri
ghtly
–
ques
tion
wha
t we
can
deliv
er o
n a
stra
tegi
c lev
el.
Perh
aps H
R ha
s spr
ead
itsel
f to
o th
in in
its d
esire
to
be ta
ken
serio
usly
at t
he to
p ta
ble?
Som
e of
the
Boar
d po
inte
d to
an
emer
ging
Eur
opea
n m
odel
, whe
re d
eliv
ery
and
stra
tegy
fall
with
in th
e re
mit
of tw
o di
stin
ct H
R gr
oups
, as a
pos
sible
futu
re.
Big
Dat
a
Two
year
s ago
, the
(the
n) G
oogl
e C
EO
Eric
Sch
mid
t cl
aim
ed th
e w
orld
cre
ates
the
sam
e am
ount
of
data
eve
ry
two
days
as i
t pro
duce
d be
twee
n th
e da
wn
of c
ivili
satio
n an
d 20
03. T
he in
tern
et is
aw
ash
with
com
petin
g cl
aim
s as
to th
e am
ount
of
info
rmat
ion
we’r
e ge
nera
ting
and
whi
le
the
true
am
ount
may
nev
er a
ccur
atel
y be
kno
wn,
the
age
of B
ig D
ata
is he
re.
“Tw
o ye
ars a
go, t
he (t
hen)
Goo
gle
CE
O E
ric S
chm
idt c
laim
ed th
e w
orld
cre
ates
the
sam
e am
ount
of
data
eve
ry tw
o da
ys a
s it p
rodu
ced
betw
een
the
daw
n of
civ
ilisa
tion
and
2003
”
Big
Dat
a is
the
term
use
d to
des
crib
e th
e hu
ge a
mou
nts o
f un
stru
ctur
ed a
nd se
mi-s
truc
ture
d da
ta a
com
pany
pro
duce
s, w
hich
is o
ften
too
large
for t
radi
tiona
l rela
tiona
l dat
abas
es
to a
nalys
e. It
is pr
oduc
ed fr
om a
rang
e of
sour
ces s
uch
as
web
sites
, app
licat
ions
, ser
vers
, net
wor
ks a
nd m
obile
dev
ices.
Big
Dat
a is
big
new
s bec
ause
it e
nabl
es c
ompa
nies
to sl
ice
into
their
bus
ines
s int
ellig
ence
, giv
ing
them
the
pow
er to
se
gmen
t cus
tom
ers,
targ
et th
eir m
arke
ting
and
pred
ict h
ow
their
cus
tom
ers w
ill b
ehav
e. A
n in
sight
into
how
the
mar
ket
view
s Big
Dat
a is
offe
red
by so
ftwar
e co
mpa
ny S
plun
k –
whi
ch sp
ecial
ises i
n an
alysin
g lar
ge a
mou
nts o
f in
form
atio
n –
and
whi
ch w
as v
alued
at 2
7 tim
es it
s rev
enue
in it
s rec
ent
IPO
5 . A
nd u
nlik
e Fa
cebo
ok, i
ts sh
are
price
has
not
dro
pped
.
Whi
le te
chno
logi
es d
o ex
ist th
at a
llow
bus
ines
ses t
o an
alys
e an
d ac
t upo
n Bi
g D
ata,
the
busin
ess f
unct
ions
ac
tivel
y ca
pita
lisin
g on
its p
oten
tial a
re c
urre
ntly
led
by
sale
s and
mar
ketin
g.
The
clo
thin
g ch
ain
Zar
a is
a ca
se in
poi
nt. I
t com
bine
s a
cons
tant
ana
lysis
of
its s
ales
dat
a w
ith re
gion
al
prod
uctio
n fa
cilit
ies
base
d cl
ose
to it
s m
ain
reta
il ou
tlets
. Sa
les
data
is tr
ansm
itted
from
sho
ps d
irect
ly b
ack
to
prod
uctio
n st
aff,
who
are
abl
e to
see
wha
t des
igns
, siz
es
and
colo
urs
are
selli
ng. P
rodu
ctio
n ca
n th
en b
e al
igne
d to
de
man
d, e
nsur
ing
the
reta
iler i
s no
t lef
t with
a s
urfe
it of
st
ock
at th
e en
d of
a s
easo
n, a
nd is
ext
ract
ing
max
imum
va
lue
from
its
cust
omer
s.
A re
cent
new
s sto
ry a
bout
Am
erica
n re
taile
r Tar
get a
lso
show
s the
revo
lutio
nary
effe
ct B
ig D
ata
is ha
ving
, with
the
com
pany
abl
e to
det
erm
ine
whi
ch o
f its
cus
tom
ers w
ere
preg
nant
and
whe
n th
eir c
hild
was
due
6 . Th
is en
abled
it to
se
nd a
ds to
exp
ecta
nt m
othe
rs d
urin
g th
eir se
cond
trim
este
r, ta
rget
ing
them
with
spec
ific
baby
-relat
ed p
rodu
cts.
But i
s HR
read
y fo
r Big
Dat
a? A
necd
otal
UK
evi
denc
e su
gges
ts n
ot, w
ith se
nior
HR
lead
ers o
nly
now
get
ting
to
grip
s with
wha
t it m
eans
and
off
ers.
How
ever
, tha
t’s n
ot to
sa
y th
e di
scip
line
is at
faul
t, as
HR
team
s are
rare
ly st
affe
d w
ith st
atist
icia
ns a
nd d
ata
anal
ysts.
But
with
Big
Dat
a al
read
y su
perc
harg
ing
cust
omer
inte
ract
ion,
firs
t-mov
er
HR
team
s are
alre
ady
disc
over
ing
the
effe
ct it
can
hav
e on
em
ploy
ee e
ngag
emen
t.
For i
nsta
nce,
food
serv
ices c
ompa
ny A
RAM
ARK
leve
rage
s Bi
g D
ata
to li
nk b
usin
ess r
enew
al ra
tes t
o em
ploy
ee
satis
fact
ion
levels
and
oth
er fa
ctor
s7 . Se
nior
exe
cutiv
es u
se a
co
mpa
ny-w
ide
dash
boar
d to
aler
t the
m if
mea
sure
s cha
nge,
givi
ng th
em th
e op
portu
nity
to ta
ke c
orre
ctiv
e ac
tion
befo
re
clien
t rela
tions
hips
and
reve
nues
are
impa
cted
.
Som
e of
the
Boar
d ha
ve se
en B
ig D
ata
havi
ng a
pos
itive
im
pact
with
in th
eir o
wn
orga
nisa
tions
, with
one
hav
ing
used
an
anal
ysis
of a
bsen
teei
sm d
ue to
flu
to c
onvi
nce
thei
r C-le
vel l
eade
rshi
p th
at fu
ndin
g va
ccin
atio
ns w
ould
sa
ve th
e co
mpa
ny m
oney
in th
e lo
ng ru
n.
Con
clus
ion
This
HR
Boar
d sa
w a
gen
eral
them
e de
velo
p th
at h
as
been
miss
ing
from
main
stre
am H
R th
ough
t – th
at fa
r fr
om d
eser
ving
a p
lace
on e
xecu
tive
boar
ds, w
e fir
st
need
to e
arn
the
right
.
One
are
a of
con
cern
that
met
with
una
nim
ous
appr
oval
was
the
need
to c
hang
e th
e m
inds
et o
f th
e di
scip
line;
shift
ing
away
from
bei
ng o
bses
sed
with
pr
oces
s and
pro
cedu
re to
bei
ng m
ore
agile
an
d bu
sines
s frie
ndly.
Whe
ther
it’s
true
or n
ot, a
per
cept
ion
exist
s am
ong
busin
ess l
eade
rs th
at H
R ca
n so
met
imes
be
a ro
adbl
ock
to re
actin
g to
fres
h m
arke
t con
ditio
ns.
This
fed
into
a se
cond
train
of
thou
ght –
that
to a
dd
real
valu
e to
our
org
anisa
tions
, we
need
to b
ecom
e m
ore
prag
mat
ic an
d co
mm
ercia
lly a
ttune
d. A
bove
all
else,
we
need
to re
mem
ber w
e’re
prim
arily
em
ploy
ed
to h
elp o
ur o
rgan
isatio
ns su
ccee
d at
wha
t the
y do
. W
e’re
busin
ess p
eopl
e fir
st; p
eopl
e m
anag
ers s
econ
d.
Fina
lly, w
hile
Big
Dat
a lo
oks s
et to
com
plet
ely c
hang
e th
e w
ay o
rgan
isatio
ns u
se th
eir h
uman
reso
urce
s, th
e di
scip
line
is st
ill in
the
early
stag
es o
f lea
rnin
g w
hat i
t can
do.
HR
prof
essio
nals
lack
the
skill
s to
succ
essf
ully
expl
oit t
he c
ontin
uing
exp
losio
n in
bu
sines
s dat
a, an
d th
at is
why
our
lear
ning
cur
ve
begi
ns n
ow.
OR
A_H
R-W
riteu
p_12
-105
29.in
dd
4-5
16/0
7/20
12
14:3
7:46
“ Amazon is the definition of a transcending organisation – you know you’re transcendent when your competitors simply give up.”
– Max McKeown
The Importance of Engagement
HR Board members agreed that employee engagement was critical to the ability to recognise and respond to change. Employees who are not engaged will not have the desire, motivation or curiosity to understand the change going on around them and harness it to make positive decisions for the organisation.
But engagement is a tricky thing to define and measure. One member said they had created a model to identify different types of employee engagement, and map those engagement types to individual job roles. Recognising different styles of engagement is critical, because if only one style is encouraged, it means that people can find themselves slapped down or penalised for behaviour that is actually very beneficial for the organisation.
Several examples served to highlight this point. One is that ‘ambition’ is often treated as a positive attribute, recognised and rewarded at the hiring stage and beyond. But ambitious people may not stay with the organisation for long, if they see better opportunities elsewhere.
Similarly, few organisations actively encourage grumpy loners who don’t seem to care about the business, but those people may be geniuses who will have a big idea that can take the organisation forward. And curiosity is a positive way to drive change – Google’s 20% time was cited as a way to encourage curiosity that sometimes results in valuable new products and business models – but can be penalised in an organisation that is very results-driven.
The speaker cited the example of a bin collector he had interviewed, who loved his job because it meant he could work the hours that he liked and be drunk at work if he wanted. Those might be perceived as negative attributes, but the bin collector was completely dedicated to his work.
calib
re o
f th
e pe
ople
bei
ng re
crui
ted
into
HR,
it d
id fe
el
thei
r pro
fess
iona
l dev
elop
men
t was
skew
ed to
o m
uch
tow
ards
inw
ard-
look
ing
skill
s rat
her t
han
thos
e th
at c
ould
he
lp th
e w
ider
bus
ines
s. T
he ir
ony
of th
is po
orly
thou
ght-
out s
yste
m o
f de
velo
pmen
t was
not
lost
on
the
Boar
d,
with
one
mem
ber a
skin
g: ‘w
ho d
evel
ops t
he d
evel
oper
s?’
Acc
ordi
ng to
HR
Mag
azin
e th
ere
are
747
inst
itutio
ns in
the
UK
offe
ring
HR
man
agem
ent c
ours
es a
nd 1
49 u
nive
rsiti
es
in th
e co
untr
y of
ferin
g po
stgr
adua
te H
R co
urse
s3 . A
nd w
hile
a CI
PD q
ualifi
catio
n is
impo
rtant
to d
evelo
ping
pr
ofes
siona
l ski
lls, i
t’s in
oth
er b
usin
ess a
reas
whe
re y
ou’ll
di
scov
er n
ot o
nly
wha
t you
r bus
ines
s doe
s, bu
t how
the
peop
le on
the
grou
nd n
eed
to d
o it.
The
Boa
rd w
ere
adam
ant:
havi
ng th
is kn
owled
ge a
nd in
sight
allo
ws H
R pr
ofes
siona
ls to
add
the
valu
e th
at C
EO
s dem
and.
Bac
k to
bas
ics
Bein
g m
ore
com
mer
cial
in o
utlo
ok a
lso m
eans
that
HR
deliv
ers o
n its
cor
e pr
emise
. The
re w
as a
con
cern
acr
oss
the
Boar
d th
at w
e’ve
mad
e a
big
noise
ove
r rec
ent y
ears
ab
out t
he ro
le w
e ca
n pl
ay in
hel
ping
ent
erpr
ises m
eet
thei
r stra
tegi
c go
als,
but i
n do
ing
so, h
ave
falle
n do
wn
on
del
iver
ing
the
vita
l bas
ics.
The
stor
y of
form
er Y
ahoo
! CE
O S
cott
Thom
pson
’s in
accu
rate
CV
4 mig
ht b
e se
en b
y so
me
as a
n in
side
fight
for
boar
droo
m su
prem
acy
by sh
areh
olde
rs, b
ut it
also
hig
hlig
hts
a ba
sic a
nd e
mba
rras
sing
HR
failu
re. I
f w
e ca
n’t m
anag
e pr
e-em
ploy
men
t che
cks,
payr
oll,
expe
nses
, hol
iday
s and
tra
inin
g co
rrec
tly, t
hen
busin
ess l
eade
rs w
ill –
qui
te ri
ghtly
–
ques
tion
wha
t we
can
deliv
er o
n a
stra
tegi
c lev
el.
Perh
aps H
R ha
s spr
ead
itsel
f to
o th
in in
its d
esire
to
be ta
ken
serio
usly
at t
he to
p ta
ble?
Som
e of
the
Boar
d po
inte
d to
an
emer
ging
Eur
opea
n m
odel
, whe
re d
eliv
ery
and
stra
tegy
fall
with
in th
e re
mit
of tw
o di
stin
ct H
R gr
oups
, as a
pos
sible
futu
re.
Big
Dat
a
Two
year
s ago
, the
(the
n) G
oogl
e C
EO
Eric
Sch
mid
t cl
aim
ed th
e w
orld
cre
ates
the
sam
e am
ount
of
data
eve
ry
two
days
as i
t pro
duce
d be
twee
n th
e da
wn
of c
ivili
satio
n an
d 20
03. T
he in
tern
et is
aw
ash
with
com
petin
g cl
aim
s as
to th
e am
ount
of
info
rmat
ion
we’r
e ge
nera
ting
and
whi
le
the
true
am
ount
may
nev
er a
ccur
atel
y be
kno
wn,
the
age
of B
ig D
ata
is he
re.
“Tw
o ye
ars a
go, t
he (t
hen)
Goo
gle
CE
O E
ric S
chm
idt c
laim
ed th
e w
orld
cre
ates
the
sam
e am
ount
of
data
eve
ry tw
o da
ys a
s it p
rodu
ced
betw
een
the
daw
n of
civ
ilisa
tion
and
2003
”
Big
Dat
a is
the
term
use
d to
des
crib
e th
e hu
ge a
mou
nts o
f un
stru
ctur
ed a
nd se
mi-s
truc
ture
d da
ta a
com
pany
pro
duce
s, w
hich
is o
ften
too
large
for t
radi
tiona
l rela
tiona
l dat
abas
es
to a
nalys
e. It
is pr
oduc
ed fr
om a
rang
e of
sour
ces s
uch
as
web
sites
, app
licat
ions
, ser
vers
, net
wor
ks a
nd m
obile
dev
ices.
Big
Dat
a is
big
new
s bec
ause
it e
nabl
es c
ompa
nies
to sl
ice
into
their
bus
ines
s int
ellig
ence
, giv
ing
them
the
pow
er to
se
gmen
t cus
tom
ers,
targ
et th
eir m
arke
ting
and
pred
ict h
ow
their
cus
tom
ers w
ill b
ehav
e. A
n in
sight
into
how
the
mar
ket
view
s Big
Dat
a is
offe
red
by so
ftwar
e co
mpa
ny S
plun
k –
whi
ch sp
ecial
ises i
n an
alysin
g lar
ge a
mou
nts o
f in
form
atio
n –
and
whi
ch w
as v
alued
at 2
7 tim
es it
s rev
enue
in it
s rec
ent
IPO
5 . A
nd u
nlik
e Fa
cebo
ok, i
ts sh
are
price
has
not
dro
pped
.
Whi
le te
chno
logi
es d
o ex
ist th
at a
llow
bus
ines
ses t
o an
alys
e an
d ac
t upo
n Bi
g D
ata,
the
busin
ess f
unct
ions
ac
tivel
y ca
pita
lisin
g on
its p
oten
tial a
re c
urre
ntly
led
by
sale
s and
mar
ketin
g.
The
clo
thin
g ch
ain
Zar
a is
a ca
se in
poi
nt. I
t com
bine
s a
cons
tant
ana
lysis
of
its s
ales
dat
a w
ith re
gion
al
prod
uctio
n fa
cilit
ies
base
d cl
ose
to it
s m
ain
reta
il ou
tlets
. Sa
les
data
is tr
ansm
itted
from
sho
ps d
irect
ly b
ack
to
prod
uctio
n st
aff,
who
are
abl
e to
see
wha
t des
igns
, siz
es
and
colo
urs
are
selli
ng. P
rodu
ctio
n ca
n th
en b
e al
igne
d to
de
man
d, e
nsur
ing
the
reta
iler i
s no
t lef
t with
a s
urfe
it of
st
ock
at th
e en
d of
a s
easo
n, a
nd is
ext
ract
ing
max
imum
va
lue
from
its
cust
omer
s.
A re
cent
new
s sto
ry a
bout
Am
erica
n re
taile
r Tar
get a
lso
show
s the
revo
lutio
nary
effe
ct B
ig D
ata
is ha
ving
, with
the
com
pany
abl
e to
det
erm
ine
whi
ch o
f its
cus
tom
ers w
ere
preg
nant
and
whe
n th
eir c
hild
was
due
6 . Th
is en
abled
it to
se
nd a
ds to
exp
ecta
nt m
othe
rs d
urin
g th
eir se
cond
trim
este
r, ta
rget
ing
them
with
spec
ific
baby
-relat
ed p
rodu
cts.
But i
s HR
read
y fo
r Big
Dat
a? A
necd
otal
UK
evi
denc
e su
gges
ts n
ot, w
ith se
nior
HR
lead
ers o
nly
now
get
ting
to
grip
s with
wha
t it m
eans
and
off
ers.
How
ever
, tha
t’s n
ot to
sa
y th
e di
scip
line
is at
faul
t, as
HR
team
s are
rare
ly st
affe
d w
ith st
atist
icia
ns a
nd d
ata
anal
ysts.
But
with
Big
Dat
a al
read
y su
perc
harg
ing
cust
omer
inte
ract
ion,
firs
t-mov
er
HR
team
s are
alre
ady
disc
over
ing
the
effe
ct it
can
hav
e on
em
ploy
ee e
ngag
emen
t.
For i
nsta
nce,
food
serv
ices c
ompa
ny A
RAM
ARK
leve
rage
s Bi
g D
ata
to li
nk b
usin
ess r
enew
al ra
tes t
o em
ploy
ee
satis
fact
ion
levels
and
oth
er fa
ctor
s7 . Se
nior
exe
cutiv
es u
se a
co
mpa
ny-w
ide
dash
boar
d to
aler
t the
m if
mea
sure
s cha
nge,
givi
ng th
em th
e op
portu
nity
to ta
ke c
orre
ctiv
e ac
tion
befo
re
clien
t rela
tions
hips
and
reve
nues
are
impa
cted
.
Som
e of
the
Boar
d ha
ve se
en B
ig D
ata
havi
ng a
pos
itive
im
pact
with
in th
eir o
wn
orga
nisa
tions
, with
one
hav
ing
used
an
anal
ysis
of a
bsen
teei
sm d
ue to
flu
to c
onvi
nce
thei
r C-le
vel l
eade
rshi
p th
at fu
ndin
g va
ccin
atio
ns w
ould
sa
ve th
e co
mpa
ny m
oney
in th
e lo
ng ru
n.
Con
clus
ion
This
HR
Boar
d sa
w a
gen
eral
them
e de
velo
p th
at h
as
been
miss
ing
from
main
stre
am H
R th
ough
t – th
at fa
r fr
om d
eser
ving
a p
lace
on e
xecu
tive
boar
ds, w
e fir
st
need
to e
arn
the
right
.
One
are
a of
con
cern
that
met
with
una
nim
ous
appr
oval
was
the
need
to c
hang
e th
e m
inds
et o
f th
e di
scip
line;
shift
ing
away
from
bei
ng o
bses
sed
with
pr
oces
s and
pro
cedu
re to
bei
ng m
ore
agile
an
d bu
sines
s frie
ndly.
Whe
ther
it’s
true
or n
ot, a
per
cept
ion
exist
s am
ong
busin
ess l
eade
rs th
at H
R ca
n so
met
imes
be
a ro
adbl
ock
to re
actin
g to
fres
h m
arke
t con
ditio
ns.
This
fed
into
a se
cond
train
of
thou
ght –
that
to a
dd
real
valu
e to
our
org
anisa
tions
, we
need
to b
ecom
e m
ore
prag
mat
ic an
d co
mm
ercia
lly a
ttune
d. A
bove
all
else,
we
need
to re
mem
ber w
e’re
prim
arily
em
ploy
ed
to h
elp o
ur o
rgan
isatio
ns su
ccee
d at
wha
t the
y do
. W
e’re
busin
ess p
eopl
e fir
st; p
eopl
e m
anag
ers s
econ
d.
Fina
lly, w
hile
Big
Dat
a lo
oks s
et to
com
plet
ely c
hang
e th
e w
ay o
rgan
isatio
ns u
se th
eir h
uman
reso
urce
s, th
e di
scip
line
is st
ill in
the
early
stag
es o
f lea
rnin
g w
hat i
t can
do.
HR
prof
essio
nals
lack
the
skill
s to
succ
essf
ully
expl
oit t
he c
ontin
uing
exp
losio
n in
bu
sines
s dat
a, an
d th
at is
why
our
lear
ning
cur
ve
begi
ns n
ow.
OR
A_H
R-W
riteu
p_12
-105
29.in
dd
4-5
16/0
7/20
12
14:3
7:46
“ Conservative organisations are happy enough to be surviving at the moment.”
– HR Board Member
Five Ways to Shape the Future
At the end of the evening’s discussion, Max McKeown was asked for his advice on how HR directors can shape the best future for their organisations. These were his top five tips:
1. Create time to think – and to think better.
2. Start at the top and train senior executives in how to ask the right questions in order to make good decisions quickly. They can then cascade that skill down through the organisation.
3. Don’t focus on big transformations – they take too long. Instead, look to make lots of tiny changes that together have a ‘pivot’ effect.
4. Make curiosity an important part of the organisation’s culture – freeing people to explore and test new ideas.
5. Introduce simple frameworks – with clear expectations and rules of engagement, and a simple vision of the future that everyone can work towards.
Risky Decisions in a Down Economy
HR Board members agreed that the faltering economy has created a widespread aversion to risk-taking, even (or especially) among businesses that previously embraced risk. Decision-making is ultra-cautious and takes a long time. One member said that an investment bank he had worked at, the organisation took nine months to model a forex strategy.
There is a distinct fear of bold decisions, with many senior executives preferring to make decisions by committee in order to protect themselves from the ramifications of making the wrong call.
One member recalled that it had recently been fashionable to encourage failure, based on the notion that individuals and organisations can learn valuable lessons from getting things wrong. That seemed naïve in the current climate, however. “People don’t want to fail right now. Failing fast is difficult – there isn’t the money to cover it.”
After much discussion, the Board broadly agreed that a strategy of learning from mistakes could still be viable if the organisation pursued lots of avenues and ideas simultaneously. Pinning every hope and aspiration on one idea was a recipe for disaster if that idea failed. The days of betting the farm are over (at least temporarily), but that doesn’t mean that organisations shouldn’t experiment with new ideas and take certain risks in numerous smaller ways.
Picking the Right Ideas
But how do you know which ideas are good ones? And how do you make a good idea into a fantastic idea? To be successful – to become transcending – organisations need to be able to select the best ideas and develop them into game-changing innovations.
That means not just having the mechanisms in place to gather, suggest, review and evaluate ideas, but processes and mechanisms for working on them, developing them, testing them and refining them - all at the rapid pace of modern business – until they work.
One of the key roles of HR is to create a culture in which the free exchange and review of ideas is possible at every level within the organisation. The best ideas may not come from the top, but from the shop-floor: people who are daily contact with customers and have direct experience of how their wants, needs and behaviours are changing. First Direct, for example, has led the way in creating new services – such as SMS banking – by collecting customer complaints and turning them into products.
But for that approach to work, there must be mechanisms for filtering ideas rapidly upwards through the organisation to a level where they can be accepted or rejected. This may be an argument for putting social media tools to work as a way to share and comment on ideas, although one HR Board member said their organisation had yet to get to grips with social media, and was struggling to understand how it could best be used as an internal collaboration tool.
Another concern is that people are frightened to share their ideas in case they’re laughed at or ignored. Here there is a very clear case for HR to help create and nurture an organisational culture in which all ideas are valued, and where there are clear rewards for putting them forward.
calib
re o
f th
e pe
ople
bei
ng re
crui
ted
into
HR,
it d
id fe
el
thei
r pro
fess
iona
l dev
elop
men
t was
skew
ed to
o m
uch
tow
ards
inw
ard-
look
ing
skill
s rat
her t
han
thos
e th
at c
ould
he
lp th
e w
ider
bus
ines
s. T
he ir
ony
of th
is po
orly
thou
ght-
out s
yste
m o
f de
velo
pmen
t was
not
lost
on
the
Boar
d,
with
one
mem
ber a
skin
g: ‘w
ho d
evel
ops t
he d
evel
oper
s?’
Acc
ordi
ng to
HR
Mag
azin
e th
ere
are
747
inst
itutio
ns in
the
UK
offe
ring
HR
man
agem
ent c
ours
es a
nd 1
49 u
nive
rsiti
es
in th
e co
untr
y of
ferin
g po
stgr
adua
te H
R co
urse
s3 . A
nd w
hile
a CI
PD q
ualifi
catio
n is
impo
rtant
to d
evelo
ping
pr
ofes
siona
l ski
lls, i
t’s in
oth
er b
usin
ess a
reas
whe
re y
ou’ll
di
scov
er n
ot o
nly
wha
t you
r bus
ines
s doe
s, bu
t how
the
peop
le on
the
grou
nd n
eed
to d
o it.
The
Boa
rd w
ere
adam
ant:
havi
ng th
is kn
owled
ge a
nd in
sight
allo
ws H
R pr
ofes
siona
ls to
add
the
valu
e th
at C
EO
s dem
and.
Bac
k to
bas
ics
Bein
g m
ore
com
mer
cial
in o
utlo
ok a
lso m
eans
that
HR
deliv
ers o
n its
cor
e pr
emise
. The
re w
as a
con
cern
acr
oss
the
Boar
d th
at w
e’ve
mad
e a
big
noise
ove
r rec
ent y
ears
ab
out t
he ro
le w
e ca
n pl
ay in
hel
ping
ent
erpr
ises m
eet
thei
r stra
tegi
c go
als,
but i
n do
ing
so, h
ave
falle
n do
wn
on
del
iver
ing
the
vita
l bas
ics.
The
stor
y of
form
er Y
ahoo
! CE
O S
cott
Thom
pson
’s in
accu
rate
CV
4 mig
ht b
e se
en b
y so
me
as a
n in
side
fight
for
boar
droo
m su
prem
acy
by sh
areh
olde
rs, b
ut it
also
hig
hlig
hts
a ba
sic a
nd e
mba
rras
sing
HR
failu
re. I
f w
e ca
n’t m
anag
e pr
e-em
ploy
men
t che
cks,
payr
oll,
expe
nses
, hol
iday
s and
tra
inin
g co
rrec
tly, t
hen
busin
ess l
eade
rs w
ill –
qui
te ri
ghtly
–
ques
tion
wha
t we
can
deliv
er o
n a
stra
tegi
c lev
el.
Perh
aps H
R ha
s spr
ead
itsel
f to
o th
in in
its d
esire
to
be ta
ken
serio
usly
at t
he to
p ta
ble?
Som
e of
the
Boar
d po
inte
d to
an
emer
ging
Eur
opea
n m
odel
, whe
re d
eliv
ery
and
stra
tegy
fall
with
in th
e re
mit
of tw
o di
stin
ct H
R gr
oups
, as a
pos
sible
futu
re.
Big
Dat
a
Two
year
s ago
, the
(the
n) G
oogl
e C
EO
Eric
Sch
mid
t cl
aim
ed th
e w
orld
cre
ates
the
sam
e am
ount
of
data
eve
ry
two
days
as i
t pro
duce
d be
twee
n th
e da
wn
of c
ivili
satio
n an
d 20
03. T
he in
tern
et is
aw
ash
with
com
petin
g cl
aim
s as
to th
e am
ount
of
info
rmat
ion
we’r
e ge
nera
ting
and
whi
le
the
true
am
ount
may
nev
er a
ccur
atel
y be
kno
wn,
the
age
of B
ig D
ata
is he
re.
“Tw
o ye
ars a
go, t
he (t
hen)
Goo
gle
CE
O E
ric S
chm
idt c
laim
ed th
e w
orld
cre
ates
the
sam
e am
ount
of
data
eve
ry tw
o da
ys a
s it p
rodu
ced
betw
een
the
daw
n of
civ
ilisa
tion
and
2003
”
Big
Dat
a is
the
term
use
d to
des
crib
e th
e hu
ge a
mou
nts o
f un
stru
ctur
ed a
nd se
mi-s
truc
ture
d da
ta a
com
pany
pro
duce
s, w
hich
is o
ften
too
large
for t
radi
tiona
l rela
tiona
l dat
abas
es
to a
nalys
e. It
is pr
oduc
ed fr
om a
rang
e of
sour
ces s
uch
as
web
sites
, app
licat
ions
, ser
vers
, net
wor
ks a
nd m
obile
dev
ices.
Big
Dat
a is
big
new
s bec
ause
it e
nabl
es c
ompa
nies
to sl
ice
into
their
bus
ines
s int
ellig
ence
, giv
ing
them
the
pow
er to
se
gmen
t cus
tom
ers,
targ
et th
eir m
arke
ting
and
pred
ict h
ow
their
cus
tom
ers w
ill b
ehav
e. A
n in
sight
into
how
the
mar
ket
view
s Big
Dat
a is
offe
red
by so
ftwar
e co
mpa
ny S
plun
k –
whi
ch sp
ecial
ises i
n an
alysin
g lar
ge a
mou
nts o
f in
form
atio
n –
and
whi
ch w
as v
alued
at 2
7 tim
es it
s rev
enue
in it
s rec
ent
IPO
5 . A
nd u
nlik
e Fa
cebo
ok, i
ts sh
are
price
has
not
dro
pped
.
Whi
le te
chno
logi
es d
o ex
ist th
at a
llow
bus
ines
ses t
o an
alys
e an
d ac
t upo
n Bi
g D
ata,
the
busin
ess f
unct
ions
ac
tivel
y ca
pita
lisin
g on
its p
oten
tial a
re c
urre
ntly
led
by
sale
s and
mar
ketin
g.
The
clo
thin
g ch
ain
Zar
a is
a ca
se in
poi
nt. I
t com
bine
s a
cons
tant
ana
lysis
of
its s
ales
dat
a w
ith re
gion
al
prod
uctio
n fa
cilit
ies
base
d cl
ose
to it
s m
ain
reta
il ou
tlets
. Sa
les
data
is tr
ansm
itted
from
sho
ps d
irect
ly b
ack
to
prod
uctio
n st
aff,
who
are
abl
e to
see
wha
t des
igns
, siz
es
and
colo
urs
are
selli
ng. P
rodu
ctio
n ca
n th
en b
e al
igne
d to
de
man
d, e
nsur
ing
the
reta
iler i
s no
t lef
t with
a s
urfe
it of
st
ock
at th
e en
d of
a s
easo
n, a
nd is
ext
ract
ing
max
imum
va
lue
from
its
cust
omer
s.
A re
cent
new
s sto
ry a
bout
Am
erica
n re
taile
r Tar
get a
lso
show
s the
revo
lutio
nary
effe
ct B
ig D
ata
is ha
ving
, with
the
com
pany
abl
e to
det
erm
ine
whi
ch o
f its
cus
tom
ers w
ere
preg
nant
and
whe
n th
eir c
hild
was
due
6 . Th
is en
abled
it to
se
nd a
ds to
exp
ecta
nt m
othe
rs d
urin
g th
eir se
cond
trim
este
r, ta
rget
ing
them
with
spec
ific
baby
-relat
ed p
rodu
cts.
But i
s HR
read
y fo
r Big
Dat
a? A
necd
otal
UK
evi
denc
e su
gges
ts n
ot, w
ith se
nior
HR
lead
ers o
nly
now
get
ting
to
grip
s with
wha
t it m
eans
and
off
ers.
How
ever
, tha
t’s n
ot to
sa
y th
e di
scip
line
is at
faul
t, as
HR
team
s are
rare
ly st
affe
d w
ith st
atist
icia
ns a
nd d
ata
anal
ysts.
But
with
Big
Dat
a al
read
y su
perc
harg
ing
cust
omer
inte
ract
ion,
firs
t-mov
er
HR
team
s are
alre
ady
disc
over
ing
the
effe
ct it
can
hav
e on
em
ploy
ee e
ngag
emen
t.
For i
nsta
nce,
food
serv
ices c
ompa
ny A
RAM
ARK
leve
rage
s Bi
g D
ata
to li
nk b
usin
ess r
enew
al ra
tes t
o em
ploy
ee
satis
fact
ion
levels
and
oth
er fa
ctor
s7 . Se
nior
exe
cutiv
es u
se a
co
mpa
ny-w
ide
dash
boar
d to
aler
t the
m if
mea
sure
s cha
nge,
givi
ng th
em th
e op
portu
nity
to ta
ke c
orre
ctiv
e ac
tion
befo
re
clien
t rela
tions
hips
and
reve
nues
are
impa
cted
.
Som
e of
the
Boar
d ha
ve se
en B
ig D
ata
havi
ng a
pos
itive
im
pact
with
in th
eir o
wn
orga
nisa
tions
, with
one
hav
ing
used
an
anal
ysis
of a
bsen
teei
sm d
ue to
flu
to c
onvi
nce
thei
r C-le
vel l
eade
rshi
p th
at fu
ndin
g va
ccin
atio
ns w
ould
sa
ve th
e co
mpa
ny m
oney
in th
e lo
ng ru
n.
Con
clus
ion
This
HR
Boar
d sa
w a
gen
eral
them
e de
velo
p th
at h
as
been
miss
ing
from
main
stre
am H
R th
ough
t – th
at fa
r fr
om d
eser
ving
a p
lace
on e
xecu
tive
boar
ds, w
e fir
st
need
to e
arn
the
right
.
One
are
a of
con
cern
that
met
with
una
nim
ous
appr
oval
was
the
need
to c
hang
e th
e m
inds
et o
f th
e di
scip
line;
shift
ing
away
from
bei
ng o
bses
sed
with
pr
oces
s and
pro
cedu
re to
bei
ng m
ore
agile
an
d bu
sines
s frie
ndly.
Whe
ther
it’s
true
or n
ot, a
per
cept
ion
exist
s am
ong
busin
ess l
eade
rs th
at H
R ca
n so
met
imes
be
a ro
adbl
ock
to re
actin
g to
fres
h m
arke
t con
ditio
ns.
This
fed
into
a se
cond
train
of
thou
ght –
that
to a
dd
real
valu
e to
our
org
anisa
tions
, we
need
to b
ecom
e m
ore
prag
mat
ic an
d co
mm
ercia
lly a
ttune
d. A
bove
all
else,
we
need
to re
mem
ber w
e’re
prim
arily
em
ploy
ed
to h
elp o
ur o
rgan
isatio
ns su
ccee
d at
wha
t the
y do
. W
e’re
busin
ess p
eopl
e fir
st; p
eopl
e m
anag
ers s
econ
d.
Fina
lly, w
hile
Big
Dat
a lo
oks s
et to
com
plet
ely c
hang
e th
e w
ay o
rgan
isatio
ns u
se th
eir h
uman
reso
urce
s, th
e di
scip
line
is st
ill in
the
early
stag
es o
f lea
rnin
g w
hat i
t can
do.
HR
prof
essio
nals
lack
the
skill
s to
succ
essf
ully
expl
oit t
he c
ontin
uing
exp
losio
n in
bu
sines
s dat
a, an
d th
at is
why
our
lear
ning
cur
ve
begi
ns n
ow.
OR
A_H
R-W
riteu
p_12
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29.in
dd
4-5
16/0
7/20
12
14:3
7:46
“ People don’t want to fail right now. Failing fast is difficult – there isn’t the money to cover it.”
– HR Board Member
Once ideas have been put to executives that can sign them off, there must be mechanisms for reviewing and testing the ideas and deciding – quickly – which ones to put into production and which ones to ignore. There again, HR has a role to play in training executives to review and select ideas without fear of reprisals for ‘making the wrong call’, and to develop the ideas they feel will most benefit the organisation.
This may call for new kinds of management training. One HR Board member said their CEO had requested a new kind of management workshop, one which focused not on ticking boxes or achieving outcomes but on encouraging people to think more radically and boldly about the business. The organisation was now focusing a lot more on giving people ‘space to think’ – not by giving them time off, but by organising sessions in which people are encouraged to think about – for example – how cutting edge technological advances could affect the business.
Conclusion
Ultimately, it is new ideas that will drive the business forward. Organisations that rest on their laurels, or that believe a run of good luck will last forever, will quickly find themselves sidelined or eclipsed by a more forward-thinking competitor.
The key to success is to keep raising standards, keep finding new ways to do things, and keep finding new and useful things to offer. HR has a key role to play in creating a culture in which constantly raising standards – both in response to change and as a catalyst of change – is an organisational imperative.
ABOUT THE ORACLE HR BOARDOracle established the HR Board series to drive best practice and thought leadership in the HR profession. Regular Board meetings are attended by HR leaders from organisations including:
AstraZenecaBSkyBDiageoHome OfficeLogicaNationwideNextRoyal Bank of ScotlandSainsbury’sSantanderStandard LifeVirgin GroupWilliam Hill
Copyright © 2012, Oracle. All rights reserved. Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners.
calib
re o
f th
e pe
ople
bei
ng re
crui
ted
into
HR,
it d
id fe
el
thei
r pro
fess
iona
l dev
elop
men
t was
skew
ed to
o m
uch
tow
ards
inw
ard-
look
ing
skill
s rat
her t
han
thos
e th
at c
ould
he
lp th
e w
ider
bus
ines
s. T
he ir
ony
of th
is po
orly
thou
ght-
out s
yste
m o
f de
velo
pmen
t was
not
lost
on
the
Boar
d,
with
one
mem
ber a
skin
g: ‘w
ho d
evel
ops t
he d
evel
oper
s?’
Acc
ordi
ng to
HR
Mag
azin
e th
ere
are
747
inst
itutio
ns in
the
UK
offe
ring
HR
man
agem
ent c
ours
es a
nd 1
49 u
nive
rsiti
es
in th
e co
untr
y of
ferin
g po
stgr
adua
te H
R co
urse
s3 . A
nd w
hile
a CI
PD q
ualifi
catio
n is
impo
rtant
to d
evelo
ping
pr
ofes
siona
l ski
lls, i
t’s in
oth
er b
usin
ess a
reas
whe
re y
ou’ll
di
scov
er n
ot o
nly
wha
t you
r bus
ines
s doe
s, bu
t how
the
peop
le on
the
grou
nd n
eed
to d
o it.
The
Boa
rd w
ere
adam
ant:
havi
ng th
is kn
owled
ge a
nd in
sight
allo
ws H
R pr
ofes
siona
ls to
add
the
valu
e th
at C
EO
s dem
and.
Bac
k to
bas
ics
Bein
g m
ore
com
mer
cial
in o
utlo
ok a
lso m
eans
that
HR
deliv
ers o
n its
cor
e pr
emise
. The
re w
as a
con
cern
acr
oss
the
Boar
d th
at w
e’ve
mad
e a
big
noise
ove
r rec
ent y
ears
ab
out t
he ro
le w
e ca
n pl
ay in
hel
ping
ent
erpr
ises m
eet
thei
r stra
tegi
c go
als,
but i
n do
ing
so, h
ave
falle
n do
wn
on
del
iver
ing
the
vita
l bas
ics.
The
stor
y of
form
er Y
ahoo
! CE
O S
cott
Thom
pson
’s in
accu
rate
CV
4 mig
ht b
e se
en b
y so
me
as a
n in
side
fight
for
boar
droo
m su
prem
acy
by sh
areh
olde
rs, b
ut it
also
hig
hlig
hts
a ba
sic a
nd e
mba
rras
sing
HR
failu
re. I
f w
e ca
n’t m
anag
e pr
e-em
ploy
men
t che
cks,
payr
oll,
expe
nses
, hol
iday
s and
tra
inin
g co
rrec
tly, t
hen
busin
ess l
eade
rs w
ill –
qui
te ri
ghtly
–
ques
tion
wha
t we
can
deliv
er o
n a
stra
tegi
c lev
el.
Perh
aps H
R ha
s spr
ead
itsel
f to
o th
in in
its d
esire
to
be ta
ken
serio
usly
at t
he to
p ta
ble?
Som
e of
the
Boar
d po
inte
d to
an
emer
ging
Eur
opea
n m
odel
, whe
re d
eliv
ery
and
stra
tegy
fall
with
in th
e re
mit
of tw
o di
stin
ct H
R gr
oups
, as a
pos
sible
futu
re.
Big
Dat
a
Two
year
s ago
, the
(the
n) G
oogl
e C
EO
Eric
Sch
mid
t cl
aim
ed th
e w
orld
cre
ates
the
sam
e am
ount
of
data
eve
ry
two
days
as i
t pro
duce
d be
twee
n th
e da
wn
of c
ivili
satio
n an
d 20
03. T
he in
tern
et is
aw
ash
with
com
petin
g cl
aim
s as
to th
e am
ount
of
info
rmat
ion
we’r
e ge
nera
ting
and
whi
le
the
true
am
ount
may
nev
er a
ccur
atel
y be
kno
wn,
the
age
of B
ig D
ata
is he
re.
“Tw
o ye
ars a
go, t
he (t
hen)
Goo
gle
CE
O E
ric S
chm
idt c
laim
ed th
e w
orld
cre
ates
the
sam
e am
ount
of
data
eve
ry tw
o da
ys a
s it p
rodu
ced
betw
een
the
daw
n of
civ
ilisa
tion
and
2003
”
Big
Dat
a is
the
term
use
d to
des
crib
e th
e hu
ge a
mou
nts o
f un
stru
ctur
ed a
nd se
mi-s
truc
ture
d da
ta a
com
pany
pro
duce
s, w
hich
is o
ften
too
large
for t
radi
tiona
l rela
tiona
l dat
abas
es
to a
nalys
e. It
is pr
oduc
ed fr
om a
rang
e of
sour
ces s
uch
as
web
sites
, app
licat
ions
, ser
vers
, net
wor
ks a
nd m
obile
dev
ices.
Big
Dat
a is
big
new
s bec
ause
it e
nabl
es c
ompa
nies
to sl
ice
into
their
bus
ines
s int
ellig
ence
, giv
ing
them
the
pow
er to
se
gmen
t cus
tom
ers,
targ
et th
eir m
arke
ting
and
pred
ict h
ow
their
cus
tom
ers w
ill b
ehav
e. A
n in
sight
into
how
the
mar
ket
view
s Big
Dat
a is
offe
red
by so
ftwar
e co
mpa
ny S
plun
k –
whi
ch sp
ecial
ises i
n an
alysin
g lar
ge a
mou
nts o
f in
form
atio
n –
and
whi
ch w
as v
alued
at 2
7 tim
es it
s rev
enue
in it
s rec
ent
IPO
5 . A
nd u
nlik
e Fa
cebo
ok, i
ts sh
are
price
has
not
dro
pped
.
Whi
le te
chno
logi
es d
o ex
ist th
at a
llow
bus
ines
ses t
o an
alys
e an
d ac
t upo
n Bi
g D
ata,
the
busin
ess f
unct
ions
ac
tivel
y ca
pita
lisin
g on
its p
oten
tial a
re c
urre
ntly
led
by
sale
s and
mar
ketin
g.
The
clo
thin
g ch
ain
Zar
a is
a ca
se in
poi
nt. I
t com
bine
s a
cons
tant
ana
lysis
of
its s
ales
dat
a w
ith re
gion
al
prod
uctio
n fa
cilit
ies
base
d cl
ose
to it
s m
ain
reta
il ou
tlets
. Sa
les
data
is tr
ansm
itted
from
sho
ps d
irect
ly b
ack
to
prod
uctio
n st
aff,
who
are
abl
e to
see
wha
t des
igns
, siz
es
and
colo
urs
are
selli
ng. P
rodu
ctio
n ca
n th
en b
e al
igne
d to
de
man
d, e
nsur
ing
the
reta
iler i
s no
t lef
t with
a s
urfe
it of
st
ock
at th
e en
d of
a s
easo
n, a
nd is
ext
ract
ing
max
imum
va
lue
from
its
cust
omer
s.
A re
cent
new
s sto
ry a
bout
Am
erica
n re
taile
r Tar
get a
lso
show
s the
revo
lutio
nary
effe
ct B
ig D
ata
is ha
ving
, with
the
com
pany
abl
e to
det
erm
ine
whi
ch o
f its
cus
tom
ers w
ere
preg
nant
and
whe
n th
eir c
hild
was
due
6 . Th
is en
abled
it to
se
nd a
ds to
exp
ecta
nt m
othe
rs d
urin
g th
eir se
cond
trim
este
r, ta
rget
ing
them
with
spec
ific
baby
-relat
ed p
rodu
cts.
But i
s HR
read
y fo
r Big
Dat
a? A
necd
otal
UK
evi
denc
e su
gges
ts n
ot, w
ith se
nior
HR
lead
ers o
nly
now
get
ting
to
grip
s with
wha
t it m
eans
and
off
ers.
How
ever
, tha
t’s n
ot to
sa
y th
e di
scip
line
is at
faul
t, as
HR
team
s are
rare
ly st
affe
d w
ith st
atist
icia
ns a
nd d
ata
anal
ysts.
But
with
Big
Dat
a al
read
y su
perc
harg
ing
cust
omer
inte
ract
ion,
firs
t-mov
er
HR
team
s are
alre
ady
disc
over
ing
the
effe
ct it
can
hav
e on
em
ploy
ee e
ngag
emen
t.
For i
nsta
nce,
food
serv
ices c
ompa
ny A
RAM
ARK
leve
rage
s Bi
g D
ata
to li
nk b
usin
ess r
enew
al ra
tes t
o em
ploy
ee
satis
fact
ion
levels
and
oth
er fa
ctor
s7 . Se
nior
exe
cutiv
es u
se a
co
mpa
ny-w
ide
dash
boar
d to
aler
t the
m if
mea
sure
s cha
nge,
givi
ng th
em th
e op
portu
nity
to ta
ke c
orre
ctiv
e ac
tion
befo
re
clien
t rela
tions
hips
and
reve
nues
are
impa
cted
.
Som
e of
the
Boar
d ha
ve se
en B
ig D
ata
havi
ng a
pos
itive
im
pact
with
in th
eir o
wn
orga
nisa
tions
, with
one
hav
ing
used
an
anal
ysis
of a
bsen
teei
sm d
ue to
flu
to c
onvi
nce
thei
r C-le
vel l
eade
rshi
p th
at fu
ndin
g va
ccin
atio
ns w
ould
sa
ve th
e co
mpa
ny m
oney
in th
e lo
ng ru
n.
Con
clus
ion
This
HR
Boar
d sa
w a
gen
eral
them
e de
velo
p th
at h
as
been
miss
ing
from
main
stre
am H
R th
ough
t – th
at fa
r fr
om d
eser
ving
a p
lace
on e
xecu
tive
boar
ds, w
e fir
st
need
to e
arn
the
right
.
One
are
a of
con
cern
that
met
with
una
nim
ous
appr
oval
was
the
need
to c
hang
e th
e m
inds
et o
f th
e di
scip
line;
shift
ing
away
from
bei
ng o
bses
sed
with
pr
oces
s and
pro
cedu
re to
bei
ng m
ore
agile
an
d bu
sines
s frie
ndly.
Whe
ther
it’s
true
or n
ot, a
per
cept
ion
exist
s am
ong
busin
ess l
eade
rs th
at H
R ca
n so
met
imes
be
a ro
adbl
ock
to re
actin
g to
fres
h m
arke
t con
ditio
ns.
This
fed
into
a se
cond
train
of
thou
ght –
that
to a
dd
real
valu
e to
our
org
anisa
tions
, we
need
to b
ecom
e m
ore
prag
mat
ic an
d co
mm
ercia
lly a
ttune
d. A
bove
all
else,
we
need
to re
mem
ber w
e’re
prim
arily
em
ploy
ed
to h
elp o
ur o
rgan
isatio
ns su
ccee
d at
wha
t the
y do
. W
e’re
busin
ess p
eopl
e fir
st; p
eopl
e m
anag
ers s
econ
d.
Fina
lly, w
hile
Big
Dat
a lo
oks s
et to
com
plet
ely c
hang
e th
e w
ay o
rgan
isatio
ns u
se th
eir h
uman
reso
urce
s, th
e di
scip
line
is st
ill in
the
early
stag
es o
f lea
rnin
g w
hat i
t can
do.
HR
prof
essio
nals
lack
the
skill
s to
succ
essf
ully
expl
oit t
he c
ontin
uing
exp
losio
n in
bu
sines
s dat
a, an
d th
at is
why
our
lear
ning
cur
ve
begi
ns n
ow.
OR
A_H
R-W
riteu
p_12
-105
29.in
dd
4-5
16/0
7/20
12
14:3
7:46
FUTURE HR BOARDSThere are further HR Boards planned for 2013. If you are interested in attending and contributing to HR Board thought leadership, please contact Sue Good, Business Development Manager, on +44 (0)7810 830629 or [email protected].