7 Essential Steps To Create A Winning People Strategy

  154965544 A people strategy is essential if a business wants to drive up performance and get the best out of their people.

Underpinning business outcomes with a people strategy can be a pretty smart move.  Too often, business plans, aims and goals are set without any corresponding detail describing how people will help to deliver and achieve what the business has set out to do.

Developing a people strategy mustn’t be confused with an HR strategy.  Lack of understanding about terminology can make or break the success of a strategy, particularly around your people.   Too often an HR strategy is focussed on transactional and policy functions and this dilutes the emphasis about developing strategies to make sure the right people in the right roles deliver the right outcomes, in the right time.

In reality though it matters not what the strategy is called, except that it must be about people and not HR processes or transactions.   Making sure everyone is on the same page in respect of terminology being used when developing strategy is absolutely crucial.  A great people strategy will not only increase the odds of, but also accelerate the speed of, success.

Following these seven steps will help to maintain focus on what is needed to develop a great people strategy.

1.      Horizon scans internally and externally

Horizon scanning should not be a one-off event which is carried out to inform a proposed strategy, but an on-going knowledge/news bank preserved within a pre-determined framework to make sure new factors are identified at the earliest opportunity.  Organisations benefit from ensuring future scanning is a cultural norm.

There are a variety of horizon scanning models, used to pull external information together.  It is worth researching to find the best fit, but STEEP (PEST) is one of the most commonly used formats.

2.     Understand the business and its people

It is crucial the organisation’s business objectives, priorities and constraints are understood inside out. If the people strategy is being developed through the HR Department, then it’s essential that HR are involved in the formation and decision making of overall business strategy.   This is because HR will understand the capacity, capabilities and current potential of the people and such insights can temper and shape expectations around outcomes and any timelines being worked to.

3.      Establish the top five priorities

Establishing the top five people priorities is a key step, as they will contribute directly to help deliver on desired business outcomes and priorities.  Required cultural changes should not be sidestepped.  Quite often “the way we do things round here” can sabotage the most exacting and thought out outcome based people strategy.   Being tempted to include more than five priorities can be counterproductive, and using a Pareto Principle approach is more effective.  Too much detail dilutes efforts, while a vital few things will create the biggest impact.

4.      Involve others and share widely to gain maximum input at all stages

If HR is developing the strategy, make sure it is not perceived as being “owned” by HR.  The business must own the people strategy. The name must be carefully chosen, so it represents inclusion of everyone in the organisation.  Call it, the “people plan” or the “people element of the business plan”.

Involving as many people as possible is crucial to the success right at the formative stage.  Using focus groups made up of a cross-section of employees, employee representatives and external customers is an effective way to capture ideas and feedback.  Take constructive suggestions on board and if you don’t act on them, explain why.

5.      Benchmark across both industry specific and Non-specific companies

Identifying innovative and emerging people practices across a range of industries can help develop great ideas and create achievable standards and benchmarks.   Finding out about success stories in alternative industries can invoke creative and “out of the box” thinking and can lead to fresh parameters around best practice or introduce new processes.

6.      Monitor and measure progress

Setting specific, measureable, attainable, relevant and timely (SMART) criteria is essential to measure success.  Put in place a credible, simple and easy-to-compile measurement system to track progress in hitting specific goals. Link any people outcomes clearly with business outcomes   Monitor results using measureable milestones.

7.  Produce a user friendly working document in simple language

Present the final strategy in employee-friendly language so that everyone both inside and outside of the organisation can understand it. If it doesn’t fit on two sides of A4 paper at most, it’s too long and so will be put in a drawer and forgotten about. A teenager should be able to understand it.  Check it against the Flesch–Kincaid readability test which gives some ideas about how plain the English should be.

 

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Know How + Great HR = Inspiration

Inspiration is the best way to engage people!

Or  does it make you squirm?

You may be an HR Professional leader or manager relying on HR to help move your business forward.  When discussing strategy with people of different roles at many levels, I have often been met with a perplexed look when I have mentioned that the role of the HR professional is to help the business to be inspirational.   Many people feel much more comfortable with descriptors like, credible, respected, focussed, performance-led…. well I could go on and on.

So what does inspiration mean and why do many people not relate to it?  The free dictionary gives the following definition of inspiration.

  1. Stimulation of the mind or emotions to a high level of feeling or activity Or the condition of being so stimulated.
  2. An agency, such as a person or work of art that moves the intellect or emotions or prompts action or invention.
  3. Something, such as a sudden creative act or idea that is inspired.
  4. The quality of inspiring or exalting: a painting full of inspiration.
  5. Divine guidance or influence exerted directly on the mind and soul of humankind.
  6. The act of drawing in, especially the inhalation of air into the lungs.”

For me; inspiration is about tapping into the true self of a person and helping them to engage, emotionally, intellectually and physically with a situation or cause which resonates with their values.  No mean feat huh?

For you as an enlightened leader, manager or HR professional, you may be well ahead of me.  However, If you aren’t sure how, you might be asking “Is that the role of HR? “

Some people will prefer other expressions, such as “gain commitment” “going the extra mile” employee engagement”. “Performance management” to name but a few.   There is nothing wrong with these ways of expressing how you get the best from your people.  The questions are; Are you inspiring your people to be the best? and: Is the task of inspiring your people something HR should be involved in?

Well I believe yes it is.  If HR is going to be at the top table, and bring real value, it needs to understand the equation of Knowhow + Great HR = Inspiration and it goes like this: -

  1. Great HR professionals know how people tick.  – They understand why people like words like inspiration and why other people prefer words like respected.  They understand how to motivate people and why some people will never be motivated unless you pivot them in a certain way.
  2. They understand the dynamics of their organisation; how people relate to each other, and the dominant dynamic which is in place.  If their organisation is a caring sharing one, for example, they know what the big no-no’s are which might shatter the brand it has consciously or unconsciously developed.
  3. They are great at all levels of the HR offer.  They understand how to develop people strategy, as well as pay people on time.  The policies they develop reflect the desired outcomes and culture as well as mirror the values of the company.
  4. They make sure that the products they develop and the frameworks they set out include the right information and are in a format which is understood by everyone.  Most importantly, they know how to get them to people in the right way so they absorb them.
  5. They understand the business inside out.  They know how their CEO and the Board ticks and they are committed to helping the business become a success, because they share the vision and values of the organisation.
  6. They care about people, know that people are the organisations greatest resource, and so they take care to inspire them.

What do you think?  Are you an inspirational leader, manager or HR professional?  Are you managed by someone truly inspirational?  I would love to hear from you with your story.

If you are a leader, you are continually developing and "Sharpening the Saw".  If you lead and manage teams, then you must read about our Inspirational New Leadership Programme.  Sign up now to find out more details when we launch in July 2014.  There is no obligation to undertake the programme, if you sign up today, you will simply be sent more information about the programme.  You can unsubscribe at any time!  Click below to register for further information.

   

The Steps to Organisational Change

Welcome to this weeks Guest Blogger.  Paul Myers is the HR Manager for a local transport company.  He has initiated significant change in his organisation and has managed to keep his staff on board.  He is a people centric manager who has considered how to increase and harness employee engagement at every opportunity.  Below he charts just one of the organisational changes he has led to transform the organisation. 

The Steps to great organisational change

I moved into my current post as HR Manager 4 years ago.  The company had at that time transferred from a deep cultured public sector organisation to the private sector.  Invoking TUPE had meant the process had already involved a painstaking consultation period with trade unions.   .

The organisation is complex.  After the transfer, one of my objectives was the harmonisation of 28 shift patterns across 3 distinct teams, with varied terms and conditions linked to them.

The issues and reasons for harmonisation included.

  1. Varying and different shift patterns being operated between three operational areas.
  2. Not all shift patterns supported 24/7 working
  3. New equipment meant a reduction of workforce and also a requirement for new skills.
  4. Possible further reduction in workforce due to a new project.
  5. Company commitment to minimising compulsory redundancies

Starting Consultation

The objective of the consultation was to mutually agree the harmonisation of the shift patterns, to agree one pattern for all.  The consultation process was a time for all parties to gather and discuss the need for change as well as place suggestions for consideration, counter proposals and refinement.  The objective was to mutually agree the way forward.  The range of the consultation reflected the number of employees affected and the extent of change need to be implemented.

The outline of the consultation process was to:

  1. Undertake consultation period with affected employees and their representatives.
  2. Outline the need for change and timescales.
  3. Set a period of time for suggestions of ideas, proposals and counter proposals
  4. Reviewing and giving consideration to the proposals
  5. Answering and addressing concerns and questions.
  6. Agreeing the way forward.
  7. Getting ready for change such as training and agreeing terms
  8. Implementing change
  9. Monitoring  and reviewing the change.

 

Change Issues

Often with consultation and change programmes, it is difficult to get all parties and employees to agree to the changes in the working practices and terms of employment.  If the changes had not been mutually agreed, an impasse may have resulted between the employees, their representatives and the company.  If an impasse had resulted, then the organisation may have had to take the decision to invoke and enforce change.  Whilst it is was hoped that an impasse was not reached, as long as the organisation had endeavoured to consult before enforcing change, this is likely to be valid with any employment tribunal.

The organisation launched the proposal for change for Economical, Technical, Operational (ETO) reasons. In these circumstances, when it can be proven that consideration has been given to all alternatives, or there has been refusal and objection to mutually agree the way forward, then the change is enforced by giving the contractual notice under the old terms of employment, advising and offering new terms of employment from a set date.

If reaching an impasse and enforcing change, the company may be at risk of breach of contract claims.  This is as a result of the change and terminating the terms of employment, which exist.  To defend such claims the organisation needed to prove the ETO reasons for change; that it had tried to implement due change on reasonable grounds;  and that should the change not occur the business would suffer a severe detriment.

The organisation knew that at that time there was an increased risk of industrial action. This was to be avoided as well as was the leaking of any changes to the local press and media.

Achieving the Goal

Transparency with the Trade Union

I met with the union explained the plan we wished to peruse and set out our reasons. Also suggesting measures we could implement to effect the changes

Full staff Engagement

We stated our commitment to full staff engagement: Involving them fully in the decisions about their jobs to make it work

Accepted the need for disagreement

We used disagreement as a stepping stone to initiate full discussions to reach mutual agreement

The process for change

We started with staff meetings, which was a logistical nightmare due to 24/7 shifts patterns and getting the staff to participate in the meetings.

We worked in partnership with the union.  We held meetings which were quite heated at times, although we were committed to coming to agreement.

Initially we reduced the 28 shift patterns down to 15, covering 24/7/365.  A great deal of work then took place, evaluating salaries, allowances and leave entitlements.  This information together with the advantages and disadvantages of each shift pattern were verified with the unions. .

We then conducted further meetings to discuss the various shift patterns to reduce the 15 to smaller number, to where we could then go into more detailed negotiations.

In the next stage we considered 3 different working patterns.  We carried out further meetings to discuss the issues.  The staff were asked to vote.  One team was reluctant to agree and at that stage refused to reach agreement.

We initiated further discussions which revealed that the team identified a problem which meant that any of the patterns could result in a perceived detriment to their work/life balance.  We suggested some slightly different terms and conditions which had a small cost but in the overall scheme was worth the investment.

Initially they refused to agree this renewed offer.  We recognised however that we had been fair, transparent and given fair alternatives, so we advised them we had no option but to invoke an impasse and force change although we had been clear we had tried to avoid this throughout the process.   We also suggested that we would remove the additional terms and conditions offered.  At the eleventh hour the team agreed the newly offered terms and conditions.

Conclusion

We have now been working the shift patterns for 2 years, and they have been a great success.  This is largely because we have continued with an open door policy with the staff and unions.  As a result of the process we have successfully changed the culture in line with the current needs of the organisation.

The transparency of the process and the good employee relations built in that time helped in a subsequent change when the workforce was reduced by 52%, We had followed the same principles and feel we added the human factor into our HR practice, when dealing with those selected.  During this time, we have also reduced sick absence from pre-transfer from 16% to a remarkable 0.8%.

I firmly believe to be effective in organisational change you must be open transparent and honest with employees and the trade unions to gain maximum effect.

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Paul began his career in the Infantry in the Army, He served 20 years in various locations and was discharged in 1992 at the rank of Warrant OfficerOrganisational change

He commenced employment with his present employer in 1992. With no previous civilian experience, he started on the shop floor. He learned about the company and operations, and using his previous skills gained in the military and took the company through ISO 18001, 14001 and EMAS, gained all accreditations finally producing a integrated management system.

Prior to TUPE transfer on PFI he took the role on as HR Manager, responsible for delivering on the organisational change which involved reducing numbers and the reorganisation of the structure of the operational sections.

In 2 years staff numbers were reduced by 55% and all operational staff where on a one shift system. This was only achieved by being transparent with the unions and achieving maximum engagement with all staff.

He remains active in the ex military community he is trained as a welfare advice officer for SSAFA and The Royal British Legion

To achieve in HR he believes in putting the Human touch back into Human Resources, primarily effecting maximum engagement, transparency and fairness with all employees.  He has dyslexia and this has never been a barrier to his success in life

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If you are a leader, you are continually developing and "Sharpening the Saw".  If you lead and manage teams, then you must read about our Inspirational New Leadership Programme.  Sign up now to find out more details when we launch in July 2014.  There is no obligation to undertake the programme, if you sign up today, you will simply be sent more information about the programme.  You can unsubscribe at any time!  Click below to register for further information.