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
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