Welcome

1. Welcome

2. Chartered Institute of Personnel and Development

3. HR strategies for changeA workshop on the human resource aspects of managing change and building organisation effectivenessJim Cannon and Roger Niven

4. 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

5. What are the HR problems we face?

6. The Development of Strategic Thought After Arto Lahti

7. Michael Porter - Forces Driving Industry Competition Potential Entrants Suppliers Industry Competition Customers Substitutes

8. McKinsey’s 7- S - Model Structure Strategy Shared Values Skills Systems Staff Style

9. Total business system to deliver value to customers Technology Operational excellence Product leadership Customer intimacy Business Processes Organisation Culture Management systems Treacy and Wiersema

10. An illustration of technical and adaptive work Fosbery Flop Straddle Height of high jump Western Roll Scissors Years From Richard Pascale

11. The need to involve people After Rosabeth Moss Kanter Only a few can choose A wider range of experiments and prototypes Influence An infinite number of very small scale improvements

12. “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 Kotter 1995

13. 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

14. Improving business results through people Business Results Business Strategy People Requirements Employee Needs Customer Satisfaction Human Resource Strategy: Employment Relationship Employee Satisfaction Human Resources Practices, Policies, Programmes

15. HR roles in building a competitive organisation Strategic Focus Management of Strategic Human resources - aligning HR and business strategy by organisational diagnosis Management of transformation- renewing the organisation People Processes Management of infrastructure - processes to deliver services Management of employee contribution - listening and responding Operational Focus Source: Ulrich and Conner

16. Managing change

17. 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?

18. A spectrum of reactions Active resistance Passive resistance Indifference Acceptance Enthusiasm Protests “Work to rule” Apathy Reactive Loss of interest Co-operation under pressure Supportive Energy Ideas Slow down Intentional errors 4.11

19. Complex forces of change Driving forces Restraining forces • Forces come from: • outside • the organisation itself • internal groups • individuals Lewin 4.7

20. Individual responses to a new reality : The Transition Curve HIGH 7.Consolidating Clear insight into new reality. Consolidation of new behaviours. 6. Developing Search for clarity. Developing effective ways to respond to new reality. 2. Rejection Rejection of new reality. Defence of existing initiatives. Detail of problems. False sense of competence re-established. PERCEIVED COMPETENCE 3. Uncertainty Sense of anxiety/incompetence. Frustration. Uncertainty about how to deal with new reality. 5.Exploring Testing new behaviours, new approaches. Lots of energy, anger and frustration. Beginning to deal with new reality. 1. Surprise Immobilisation. Shock, surprise or anger at mismatch between high expectations of performance and the new reality. 4. Acceptance Acceptance of new reality.‘Letting go’ of the past. Attitudes and behaviours re-examined. TIME LOW

21. Case study

22. 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?)

23. 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

24. Activities for successful change management Avoid over-organising Provide help and support Communicate like never before Managing Ensure early change involvement work at gaining Commitment Turn perceptions of threats into opportunities

25. ‘Crazy time’ Old New ways ways of of doing doing things crazy time things Start of change ‘end’ of change

26. Extra work Uncertainty Fight for resources When to change? “The second curve” Relative performance Time 4.9 Handy

27. Who helps and hinders change? Seniority Low Influence on change High

28. 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’

29. Group discussion • What change strategies have worked successfully for organisations represented here today?

30. Human Resource Planning and Career Development

31. PRIMARY EMPLOYEES - key skills - shared values - commitment SECONDARYEMPLOYEES support skillsshort-term TEMPORARY EMPLOYEES Agency Sub- Bought-in Staff consultants contractors services The Developing HR Model?

32. 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

33. Constructing a Human Resource Plan + Sales / Output Forecasts Corporate plans/ objectives feedback & review - changes in utilisation - changes in demand H.R. DEMAND SCHEDULE quality & quantity 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 Analysis of existing H.Resources Wastage Forecasts +

34. What are the drivers of staff numbers in your business? Staff Categories Key Drivers 2.9

36. 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

37. Productivity improvement • Job analysis • ‘Bottlenecking’ • Benchmarking • Suggestion schemes (staff and customers) • Trend analysis • Zero based budgeting

38. 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.

39. European Commission – a case study

40. Scenario planning Today Future Future scenario A Today’s Environment Future scenario B Future scenario C Project plan Date 1/9 6/9 1/9 6/9 1/9 6/9 1/9 6/9 Project 1 Project 2 Scenario A or BScenario A Project 3 Scenario B Project 4 Scenario C Signposts Decision Points

41. The Texology call centre • an case study on planning • Review the notes and information supplied. • In groups, consider the questions asked.

42. Career Development

43. Career Development Planning • assessing skills & competencies • performance management processes • psychometrics • 360° feedback • assessment / development centres • career counselling • re-training • job changes • secondment

44. 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?

45. 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

46. I WANT REALITY I AM ABLE

47. Moderate risk Research? Low risk Job seeking? What do I want to do? Same work • High risk • Long term? • Moderate risk • Retraining? Different work New sector Same sector

48. Tools for improving utilisation • Competency framework • Skills transition matrix • Succession planning • Human Resource Plan template

49. Skill Transition Matrix Into Job B Into Job C Into Job A Entry Level Basic requirements; Qualifications, experience, competencies (% who will remain in 1 year, 3 years) Ongoing training to Additional skills, From Job A maintain competencies. satisfactory Time to retrain, (% likely to do job) performance Additional skills, From Job B competencies. Time to retrain, (% likely to do job)

50. Succession Planning Chart YEAR OF BIRTH ‘49 MANAGER PERFORMANCE RATING (A-E) B JOB TITLE J. BLOGGS 3 • KEY JOB HOLDER PROMOTABILITY INDEX (1-3) PHILLIPS EATON IDENTIFIED REPLACEMENTS ‘49 MANAGER B J. BLOGGS 3 PHILLIPS EATON ‘60 ‘53 TECHNICIAN SUPERVISOR A B I. PHILLIPS G. EATON 1 2 ARNOLD HUNT - HUNT