welcome. chartered institute of personnel and development
TRANSCRIPT
Welcome
Chartered Institute of Personnel and Development
HR strategies for changeHR strategies for change
A workshop on the human resource aspects of managing change and
building organisation effectiveness
Jim Cannon and Roger Niven
The reconnaissance visit
Many issues identified as important
• Evaluation and assessment
• Performance management and rewards
• Employee development
• HR planning, utilisation and development
• Retention
• Selection
• What next for FIST
What are the HR problems we face?
Basic Orientation
time
1770 – 1920
time
1930 – 1950
time
1960 – 1980
time
1990 -
Descriptive
Classical economics
- Adam Smith
entrepreneurial challenge
- Schumpeter
entrepreneurial strategy making
- Henry Mintzberg
revolutionary strategy
- Hamel
Strategic leadership
- Kotter
Prescriptive
Neoclassical economics
- Leo Walras
Industrial organisation economics
- Mason / Bain
Managerialism and marginalism
- Ansoff
‘Back to basics’
- Porter
Value systems
- Treacy and Wiersema
After Arto Lahti
The Development of Strategic Thought
Michael Porter - Forces Driving Industry Competition
Potential Entrants
Suppliers
Substitutes
CustomersIndustry Competition
McKinsey’s 7- S - Model
Shared Values SystemsSkills
Staff Style
StructureStrategy
Total business system to deliver value to customers
Management systems
Technology
Organisation CultureBusiness
Processes
Operational excellence
Product leadership
Customer intimacy
Treacy and Wiersema
An illustration of technical and adaptive work
Height
of
high
jump
Years
Scissors
Western Roll
Straddle
Fosbery Flop
From Richard Pascale
The need to involve peopleIn
fluen
ce
Only a few can choose
A wider range of experiments and prototypes
An infinite number of very small scale improvements
After Rosabeth Moss Kanter
“Management’s mandate is to minimise risk and to keep the current system operating. Change, by definition, requires creating a new system, which in turn always demands leadership”.
John P Kotter1995
Leaders and strategy
“I agree … strategy ‘emerges’ … but we are not
helpless. Strategy does not simple emerge … it is
emergent. By creating the right set of preconditions
one can provoke emergence.”
“Too often we work on ‘the strategy’, rather than the
preconditions that could lead to strategic innovation.”
Gary Hamel
Improving business results through peopleBusiness
Results
Customer Satisfaction
Employee Satisfaction
PeopleRequirements
Employee Needs
Human ResourceStrategy:
EmploymentRelationship
Human ResourcesPractices, Policies,
Programmes
Business Strategy
HR roles in building a competitive organisation
Management of StrategicHuman resources - aligning HR and business strategy byorganisational diagnosis
Management of transformation- renewing the organisation
Management of infrastructure- processes to deliver services
Management of employee contribution - listening and responding
Strategic Focus
Operational Focus Source: Ulrich and Conner
PeopleProcesses
Managing change
Exercise: Reactions to change
Think of a major change in your life:
• What were the different reactions you experienced?
• What helped and hindered you come to terms with the change?
• If it happened again, how would you handle it differently?
A spectrum of reactions
Apathy
Reactive
Loss of interest
Passiveresistance
Activeresistance
Acceptance EnthusiasmIndifference
Co-operation under pressure
Protests
“Work to rule”
Slow down
Intentional errors
Supportive
Energy
Ideas
4.11
Complex forces of change
Driving forcesRestraining forces
Forces come from:- outside- the organisation itself- internal groups- individuals
Lewin
4.7
PE
RC
EIV
ED
CO
MP
ET
EN
CE
TIME
HIGH
LOW
2. Rejection
Rejection of new reality.
Defence of existing initiatives.
Detail of problems.
False sense of
competence re-established.
1. Surprise
Immobilisation.
Shock, surprise or
anger at mismatch
between high expectations
of performance
and the new reality.
3. Uncertainty
Sense of anxiety/incompetence.
Frustration.
Uncertainty about how
to deal with new reality.
4. Acceptance
Acceptance of new
reality.‘Letting go’
of the past.
Attitudes and
behaviours
re-examined.
5.Exploring
Testing new behaviours,
new approaches.
Lots of energy, anger
and frustration.
Beginning to deal
with new reality.
6. Developing
Search for clarity.
Developing effective
ways to respond to
new reality.
7.Consolidating
Clear insight into new
reality. Consolidation
of new behaviours.
Individual responses to a new reality :
The Transition Curve
Case study
The Levers of Change
•Self awareness (Do I understand what I need to do differently?)
•Will (Do I want to change?)•Competence (Am I able to change?)•Conscience (Is the change congruent with
my beliefs?)•Pleasure / Fear consequences (Will I benefit
or suffer?)•Vision (Is this change in line with I want
for the future?)
The stages of change (J Kotter)Establish a sense of urgency
Create a guiding coalition
Develop a vision and a strategy
Communicate the new vision
Empower employees with broad based action
Generate short term wins
Consolidate early gains but push on for more change
Anchor new changes in the culture
Activities for successful change management
Avoid over-organising
Provide help and support Communicate like never before ManagingEnsure early changeinvolvement work at gaining Commitment
Turn perceptions of threats into opportunities
‘Crazy time’
Old Newways waysof ofdoing doingthings crazy time things
Start of change ‘end’ of change
When to change?
Extra workUncertaintyFight for resources
Time
“The second curve”
Handy
Relative
performance
4.9
Who helps and hinders change?
Low Influence on change High
Seniority
Looking for the positives in any change‘I learnt something’
‘I won’t make the same mistake again’
‘I was more fortunate than some’
‘Today is the first day of the rest of my life – I can choose to let the past go’
‘I cannot change history, but I can steer a different path into the future’
Group discussion
What change strategies have worked successfully for organisations represented here today?
Human Resource Planning and
Career Development
PRIMARY
EMPLOYEES- key skills
- shared values
- commitment SECONDARY EMPLOYEES
support skills short-term
TEMPORARY EMPLOYEES
Agency Sub- Bought-in Staff consultants contractors services
The Developing HR Model?
Structure of a credit card company. A division of a bank
Management 265 9.9%
Middle level staff 1957.8 73.5
Junior staff 15 0.5
Agency 430 16.1
• Total 2668 100
• Source: Published accounts
Constructing a Human Resource Plan
Analysis of
existing
H.Resources
H.R. DEMAND SCHEDULE
quality & quantity
feedback & review
H.R. PLAN
Recruitment
(input)
Training & Retraining
(change)
Retirements / Dismissals
(output)
feedback & review
- external labour supply- changes in wastage rates
H.R. SUPPLY SCHEDULE
quantity & quality
Corporate plans/
objectives
Sales / Output
Forecasts
Wastage
Forecasts
+
+
- changes in utilisation
- changes in demand
What are the drivers of staff numbers in your business?
Staff Categories
Key
Drivers
2.9
• JUDGEMENT (“GUESSTIMATE”)
• ACTIVITY ANALYSIS (synthetic)
• CORRELATION (Ratio)
• COST BASED (Budget constraint)
• DELPHI (individual experts -> iteration -> consensus) 4.1
METHODS OF DEMAND PLANNING
Productivity measures
Activity
• Output/ person (What drives activity?)
Value
• Cost or Revenue/person cost
Opportunity
• Maximum value produced/hour – actual value produced/hour
• Note: Consider the effect, attendance and efficiency
Productivity improvement
Job analysis
‘Bottlenecking’
Benchmarking
Suggestion schemes (staff and customers)
Trend analysis
Zero based budgeting
Using activity analysis in the European Commission – a case study
Question posed: How many career counsellors were required?
Model created to structure assumptions and see the impact of changed circumstances.
Set agenda to track actual effectiveness and to clarify more realistic assumptions.
European Commission – a case studyStaffing requirements model for career counsellors.
SERVICE DEMANDa) No of staff who may use the service 20000
b) Estimated % who at any time will be using the service 2 %
c) Case load (a x b) 400
d) Client contact is assumed to be once every 4 weeks
e) Number of sessions required each week (c/d) 100
COUNSELLOR SUPPLYKey assumptions:f) working week in hours 40g) Attendance (Training, sickness and hols) 0.8h) Efficiency (time spent on counselling) 0.78(overall effectiveness = gxh) 0.624I) Counselling session length in hours 3
j) Number of sessions a counsellor can complete in a weekf x g xh)/3 8.3
MATCHING SUPPLY AND DEMANDk) Number of counsellors required (e/j) 12.0
Scenario planning
Project plan
Future scenario A
Today’s Environment
Future scenario B
Future scenario C
Signposts
Decision Points
Today Future
Date 1/9 6/9 1/9 6/9 1/9 6/9 1/9 6/9
Project 1Project 2 Scenario A or B Scenario AProject 3 Scenario BProject 4 Scenario C
an case study on planning
Review the notes and information supplied.
In groups, consider the questions asked.
The Texology call centre
Career Development
Career Development Planning
assessing skills & competencies
performance management processes
psychometrics
360° feedback
assessment / development centres
career counselling
re-training
job changes
secondment
Career review
1. Personal stock take
State: experiences, interests, abilities, motivation
Explore: feelings, e.g. boredom, no challenge, outdated skills
Consider: strengths, abilities, likes personal qualities
2. Personal requirements for the future
are skills being properly utilised
where might they be better employed
is job enhancement a possibility?
3. Consider alternatives
in company - different departments
spare time occupation
other companies in same sector
change of occupation
analysis of the market place
4. Plan of action
new horizons
job search strategy
skills update
self - marketing
I WANT
REALITY I AM ABLE
What do I want to do?
Moderate risk
Research?
Low risk
Job seeking?
High risk
Long term?
Moderate risk
Retraining?
Same
work
Different
work
New sector Same sector
Tools for improving utilisation
Competency framework
Skills transition matrix
Succession planning
Human Resource Plan template
Skill Transition Matrix
Entry Level Basic requirements;Qualifications,experience,competencies(% who will remainin 1 year, 3 years)
From Job A Ongoing training tomaintainsatisfactoryperformance
Additional skills,competencies.Time to retrain,(% likely to do job)
From Job B Additional skills,
competencies.Time to retrain,(% likely to do job)
Into Job A Into Job B Into Job C
JOB TITLE
JOB HOLDER
MANAGER
J. BLOGGS
‘49
B
3
YEAR OF BIRTH
PERFORMANCERATING (A-E)
PROMOTABILITYINDEX (1-3)PHILLIPS
EATONIDENTIFIEDREPLACEMENTS
MANAGER
J. BLOGGS
‘49
B
3
PHILLIPS
EATON
HUNT
ARNOLD HUNT
-
SUPERVISOR
I. PHILLIPS
TECHNICIAN
G. EATON
‘53
A
1
‘60
B
2
Succession Planning Chart
KEY
Succession Planning - Ratings
Performance Rating:
A - ‘exceeds expectations’
B -
C - ‘satisfactory performance’
D -
E - ‘unsatisfactory performance’
Promotability Rating:
1 - ready now
2 - likely to be ready during next 24 months
3 - not ready for promotion
Career Development Records
Minimum information required:
1. name & present position
2. date assigned to current job
3. latest performance rating
4. Promotability rating
5. target date for expected move
6. actions required to prepare for (5)
plus record of training / development actions
Career & Succession PlanningProblems And Issues
the ‘Prince’ and the ‘Pauper’
people are unpredictable
planning and the forced choice
planning and the self-fulfilling prophecy
prediction in a world of change
performance v potential
expectation and ambitions
‘as is our confidence so is our capacity’
opportunity and its prediction
the politics of judgement
potential for what, in growth and decline
What should follow the FIST programme for FIST participants?
Company groups
Review the work we have done today
Identify any aspects that may be applicable to you
Discuss any actions you need to take to introduce these ideas
What further do you need to know from the tutors and others to take these ideas further.
Welcome to day 2
What were the key points for you from yesterday
Any queries and questions?
Performance management
How do we get people to perform?
Situation
Performance
How do we get people to perform?
Situation
Vision Behaviour Culture
Mission and goals Group feeling Policies
Strategy
Structure Needs Procedures
Skills Freedom
Performance
Balanced scorecard an example from an international bank
PeopleStrong leadership teamHigh quality people at all levelsDiversity, fairness and opportunityCommitment to employee success
FinancialMaximise SVA over time
ProcessesWorld class efficient processesStrong preventative and detective controlsKey performance indicatorsInnovation and continuous improvement
ClientsMarket leadershipProduct excellenceOutstanding customer service
Vision and Strategy
Measures
Financial – share price, Price/ earnings, ROCE
Clients – Market share, product comparisons in focus groups, service failures, customer surveys
Processes – Benchmark comparisons, mistakes, performance against Key Performance Indicators
People – Absence, turnover, attitude surveys, upward feedback
Case study
Assessment and Selection
A model of good selection
Define the job to be done – the job description
Specify the ideal candidate – the person specification
• Technical experience and knowledge• Behavioural criteria
Define the selection method
Attract suitable candidates
Assess
Attract, appoint and induct
Selection methods
Application form
Interview
• Competency based
Panel interview
Tests
Group discussion
Report / presentation
Assessment centres
Assessment – a banking example
Exceeded performance standard 29.3%
Met standard 70.0
Failed 0.7
Source: Monthly HR statistics
Retention
Controlling Labour Turnover
expect labour wastage
reduce its impact
be competitive in labour market
emphasise areas of satisfaction
reduce areas of dissatisfaction
analyse reasons for turnover
use feedback to change management systems / practices
Some Factors Affectingthe Decision to Leave
Individualjoins
Temporarilycommitted
Reference groupbehavior.Value system,performancefeedback. Paystructure.Chances of promotion expectations,knowledge ofother opportunities.
Reason forjoining
Male/Femalemarital status
Un-decided
Decisionto leave
Externallabourmarket
Needs and satisfaction = Needcontribution balance
Morepermanentcommitted
Ill health & deathretirementfinancial inducement
Termination
Critical factor‘Last Straw’
Age,grade,length ofservice, skill type; level
Employer Influence OnLabour Turnover
most firms are
ACTUALLY
here
but….
THINK they
are here
high
EMPLOYER INFLUENCE
Bevan 1988
low
Internal labour market causes
External labourmarket causes
Tactics for Reducing Turnover
be the best in town
work hard at labour retention
pilot schemes
establish positive role models
research where staff come from
allocate v select/reject
train and retrain
restructure work
career pathing
EXIT INTERVIEW - COMPANY CASE STUDYA SURVEY OF 177 PEOPLE WHO LEFT OVER A SIX MONTH PERIOD
Pregnancy 4 4Marriage 1 0More Money 17 12Better job 23 28Promotion 5 2Leaving the area 7 7Change of career 4 3Wanted a change 8 18Did not get on with boss 2 11Working conditions 4 10Domestic reasons 15 3Dissatisfied 12 3Training 8 5Other 18 22Non voluntary reasons 49 49
Total 177 177
REASON GIVEN AT TERMINATION INTERVIEW
REASON GIVEN 3MONTHS LATER
5.15
Employee development
Training needs analysis
Desired performance minus Actual performance
Gap
Training need Non-training need
Non-training factors affecting behaviour / performance
Organisation
Personnel practices
Job design
Supervision
Environment
Information systems
Non-work problems and worries
Some current ideas
Leadership is for all
• Skills, behaviours, beliefsLeadership is about:
• Behaviour• Coaching• Emphasis on vision and values
• Reading situations• Mentoring
• Self-awareness• 360 feedback
• Choices• Management of time and attention
Strategies for matching how we learn to needs at different levels
Activist Theorist Reflector PragmatistOrganisation
Events Presentations Visibility of Practical supportConferences on strategy senior managers
Team Team problem Goal setting Observe experts Able to experimentsolving
Individual Learn by doing ‘why do I need to Coach/mentor flexibility to findknow that or do it?’ the best way for me
Company groups
Review the work we have done today
Identify any aspects that may be applicable to you
Discuss any actions you need to take to introduce these ideas
What further do you need to know from the tutors and others to take these ideas further.
Thank you for coming
Roger Niven and Jim Cannon