Becoming an Employer of Choice: Mapping the Practices of a Winning

Organisation

Liz GriffinSenior Manager

Organisational Development

Overview

The link between culture & high performance

HR as a strategic business partner

Developing winning people strategies within your organisation

Emerging trends

Ernst & Young

Global network comprising more than 100 000 people in 130 countries

Our vision is to contribute most to the success of our people and clients by creating value and confidence

EY Australia: 4 000 People 10 offices (Sydney, Melbourne,

Brisbane, Canberra, Adelaide, Perth, Darwin, Cairns, Townsville, Gold Coast)

Culture and High Performance

What is Culture?

“A pattern of basic assumptions – invented, discovered or developed by a given group as it learns to cope with the problems of external adaptation and internal integration – that has worked well enough to be considered valid and therefore to be taught to new members as the correct way to perceive, think and feel in relation to these problems” (Schein,1985).

Schein, E., Organisational Culture and Leadership, 1985.

Where Does Culture Fit?

Clear Direction

Communication of Direction

Adapt Culture• Keep strengths from current cultural state that support direction• Change other aspects to move to desired cultural state that will support direction

Hubbard, G., Samuel, D., Heap, S., Cocks, G., The First XI: Winning Organisations in Australia, 2002.

Unique Current Culture

Build a Clear Direction • Based on the strengths of the current culture

Communication of Direction

Approach 1

Approach 2

The Research – Culture has a significant impact on a firm’s economic performance

Nohria, Joyce and Roberson: What Really Works (2003) Hubbard, Samuel, Heap & Cocks: The First XI – Winning

Organisations in Australia (2002) Watson Wyatt: Human Capital Index – Human Capital as a

Lead Indicator of Shareholder Value (2001) Hewitt Associates: Best Employers to Work for in Australia

Studies (2001-2003) Deal & Kennedy: The New Corporate Cultures (2000) Buckingham & Coffman: First, Break All Of The Rules (1999) Collins & Porras: Built to Last (1994) Kotter & Heskett: Corporate Culture & Performance (1992) Peters & Waterman: In Search of Excellence (1982)

The Business Basics: What Really Works 4 + 2 = High Performance

Primary Management Practices (4)

Strategy Execution Culture Structure

Secondary Management Practices (2)

Talent Innovation Leadership Mergers & Partnerships

Nohria, N., Joyce, W., & Robinson, B.,What Really Works, HBR, July 2003.

Benchmarking Successful Organisations7 Keys to High Performance

Corporate Leadership Council, Benchmarking The High Performance Organisation, 2003.

Performance Management System

Performance Culture Manager - Employee Interaction Formal Performance Review Informal Performance Feedback Day to Day Work Job Opportunities

NB: The research found that although financial incentives contribute to retention they have less impact on high performance

Building the Right Culture

“No culture or mix of cultures is bad or wrong in itself, only inappropriate to its circumstances” (Handy, 1995).

It is less about about creating a “…fun environment and more about championing high level performance and ethical behaviour. In winning organisations, everyone works at the highest level” (Nohria, Joyce, Roberson, 2003).

In high performance cultures, talent is identified & utilised, performance is rewarded, potential is developed and everyone is accountable for outcomes.

Investing in Cultural Development

“…getting culture right has virtually replaced cost cutting rhetoric in senior management circles in the new millennium.”

Australia’s blue chips across a range of industries are investing and engaging in cultural development.

It’s not about “…touchy–feely hugging sessions.” It is about high performance, ownership, trust,

transparency, accountability, empowerment, better systems, creativity, performance leadership, integrity, courage, respect, building communities and bottom line results.

Fox, C., Workers By Design, AFR Boss, August 2003.

HR as a Strategic Business Partner

Developing & Implementing Business Strategy

Strategy is about finding the match between what an organisation can do - internal strengths and weaknesses - and what it might do - external opportunities and threats (Arrow, 1980).

Strategy is also about matching, committing and adapting significant resources – financial, people, physical, technology etc.

At the heart of strategy is people… organisations don’t implement strategy, people do.

Levels of Strategy

Corporate strategy – growth, portfolio, value proposition, position

Business strategy – growth, products & services, target clients & markets, position in industry

Business unit strategy – business unit activities

Personal strategy – personal contribution, personal goals and behaviours

Hubbard, G., Samuel, D., Heap, S., Cocks, G., The First XI: Winning Organisations in Australia, 2002.

Where does HR fit?

Acting as operational managers vs business partners

Known as personnel management vs strategic human resource management

Defined by what HR does vs what HR delivers Providing support vs integrating with firm

strategic development and implementation to achieve successful outcomes

Transactional vs transformational facilitator File management & employee welfare vs

strategy and organisational culture focus

Urlich, D., A New Mandate for Human Resources, HBR, Jan-Feb 1998.

Acting as a Business Partner

Member of top executive team Contributor to strategy development and

implementation Strategy reflects an understanding of people

capabilities within the organisation Measures are identified to enhance capabilities Leaders are accountable for managing and

developing people capabilities People are engaged and committed

Booth, A., A Look At Strategic Human Resource Management, Agenda, AIM, August 2003.

Developing Winning People Strategies Within Your Organisation

Developing Your Culture to Realise your Business Strategy

Leadership team engagement and commitment

Diagnosis & analysis - current state, future state, causal factors of current state, levers for change to achieve future state

Cultural development plan including alignment of organisational systems, processes and structures

Communication Implementation Review & evaluation

Inspirational Leadership

“..the only thing of real importance that leaders do is to create and manage culture and the unique talent of leaders is to work with culture” (Schein, 1992).

“Culture is not a job a CEO can delegate.You will get the behaviour you tolerate” (McGilvary, CEO, Bayer, 2003).

“Culture is the most important driver of organisational performance. I spend 60% of my time on people, leadership and culture” (Cairns, CEO, Lion Nathan, 2001).

BHP Charter: Every employee starts each day with a sense of purpose and ends each day with a sense of accomplishment (Anderson, CEO, BHP, 1998).

Attract, Retain and Develop the Best People to Realise your Business Strategy

Identification of core organisational competencies

Recruitment of people with capabilities, potential and organisational fit

Open, regular and constructive performance feedback & development

Reward & recognition linked to individual, team and organisational outcomes

Ongoing formal & informal learning & development opportunities

Practical and supportive career development Commitment to succession leadership including

development and assessment centres

Creating a People Value Proposition

2002 Compelling job attributes research manager quality* external equity* bonus* travel promotion opportunity internal equity flexible work environment

Other top attributes from 1999 research base pay hours worked job fit retirement benefits, empowerment location

Corporate Leadership Council, Benchmarking The High Performance Organisation, 2003.

* Appeared in both studies

Emerging Trends

Where is HR now?

Adoption of SHRM has been slow SHRM has not always been accepted by key organisational players Often seen as only providing administrative support & a functional role Some HR practitioners still have a short term focus Perception is that HR practitioners are often lacking the commercial

skills to assist with strategic planning Difficult to specify a direct relationship between certain people practices

& organisational performance HR practitioners are often lower paid than executives in similar positions

in the business HR practitioners often have limited exposure to a range of business

experiences Perceived effectiveness of the contribution of HR to organisational

performance & strategic outcomes is moderate to fair

Michelson,G., & Kramer, R.,The State of HRM in Australia: Progress & Prospects, Asiapacific Journal of Human Resources, August 2003.

Emerging Issues

Different workplace expectations - Gen X & Y Shortage of qualified and talented people as fewer people

entering the workforce More people living longer with capability & a need to work to an

older age More focus by people on building social capital Less secure and continuous employment & less vertical career

structures Outsourcing of administrative functions Need to manage even more flexible work arrangements Need to continue to address the issues of diversity in the

workplace Increase in managing global and transitional teams Increasing shareholder demands for corporate sustainability

Where is HR heading?

Significant role in strategic development, strategic implementation and change management

Effective balancing of short & long term outcomes Constant reassessment of HR theory and practices Flexible people management Role in corporate social responsibility development Alignment of all people and business practices Less HR people, as line managers take up more people management

responsibilities Outsourcing of some HR functions that are deemed to have less strategic

relevance HR practitioners who are flexible, adaptable and have cross functional

experience with a focus on the acquisition of business acumen, change management and team leadership capabilities

Michelson,G., & Kramer, R.,The State of HRM in Australia: Progress & Prospects, Asiapacific Journal of Human Resources, August 2003.

Becoming an Employer of Choice: Mapping the Practices of a Winning

Organisation

Liz GriffinSenior Manager

Organisational Development