The HR leader and Libby Sartain have reported that CEO’s now rank HR as one of the functions that adds the most value to their organisation. CEO’s commented that people issues, such as finding and keeping the right talent and building a high-performance culture, are at the top of the corporate strategic agenda as keys to sustainable competitive advantage. By focusing on HR you can easily add value to any organisation.

Where HR can add the most value
Start the culture conversation at all levels. One way to accomplish this is to conduct a cultural assessment or audit of your organisation through employee surveys, focus groups or interviews. Review your organisational history, leadership styles, HR programming and industry practices to determine what currently drives and reinforces the culture. Finally, what is your customer experience? What cultural elements are obvious to customers? Is culture aligned with business strategy? Where are the disconnects? What needs to change? This can be the basis for healthy discussion at team meetings and employee chat sessions.

Develop a business case for cultural change. Why is the change needed? How will desired changes in culture support the business strategy?

Work with the senior leadership team to determine the desired culture. Core values, desired behaviours and shared vision are essential for a positive culture change effort to succeed. Every leader must embrace the need to change, or it won’t happen. Senior leaders must make new behaviours their way of life to reinforce desired change.

Develop an agenda or action plan for enhancing the culture or bringing about change. Start with the highest priorities and work on the toughest issues. For your culture to become self replicating, the way things are done will have to reinforce the core values and the culture.

Communicate what needs to change and why. Solicit input from people. Once the needed changes and process for change is defined, tell people what is expected. What are the rewards for changing, and the consequences for more of the same.

Change the organisational structure to enable change. Find new ways to accomplish work tasks. Use teams for one-time projects. Broaden roles and responsibilities.

Acquire talent based on cultural fit. Identify the characteristics of people who exhibit those behaviours that you’ve identified as desirable. The people who fit and thrive in your culture will perpetuate that culture in everything they do. If you have to choose between the candidate who has better skills or knowledge but doesn’t fit, and a candidate who is slightly less qualified but fits culturally, choose the slightly less qualified person and provide the necessary training or on-the-job experience. Get rid of those who don’t fit in the culture.

Redesign your on-boarding process. Make sure that every new hire knows what it will take to fit in, and understands the cultural imperatives. Talk about the ways of working that lead to success and those that will derail careers. Create legendary stories of successes and failures.

Create cultural messages. Be sure that every meeting, every training program, every communication to people includes cultural messaging and reinforces the values, mission, traditions and practices.

Involve everyone. Southwest Airlines has a culture committee, but there are many ways to get people involved. Try focus groups around topics. Form cross functional teams. Call random groups of employees together for monthly breakfast or lunch meetings. Engage the help and support of a group of passionate, committed people to identify cultural disconnects and recommend remedies.

Build an internal brand that supports the external brand. Make a promise to deliver a consistent employee experience. Be sure that your employees know the differentiating elements in their experience in the organisation that will enhance their work lives and careers. Begin to create an employer of choice reputation internally and externally.

Recognise and reward results. Your recognition and rewards should support the culture that you are working to reinforce.

Cultivate leaders who promote your culture. Develop excellent leaders who will propel the culture down the ranks. Identify high potential leaders and promote them. Invest in leadership development programs. Be sure content reinforces cultural messages. Keep the good ones, and get rid of those who are unable to pass the culture on.

Make it interesting and fun. Create contests, activities that enhance the culture. Decorate the office in inspiring ways. Celebrations and events can reinforce the message.

Use HR tools. Something as mundane as the annual benefits enrolment can be a source of key cultural messages. Every training class should reinforce the basic behaviours and values that reinforce the culture. Performance review forms should measure cultural fit, as well as, job performance.

No one should be locked out of the efforts to build a high-performance culture. Culture has to become the DNA that forms the building blocks over everything else. So the entire organisation must have a role in keeping it alive. Work with corporate communications, advertising, and marketing to capture the culture messages and tout these internally and externally. Let product management see that new product development manifests the cultural values in the way it responds to the marketplace demand for quality and service. Work with your legal department to demonstrate the company culture by developing ethical standards and a code of conduct that is not just in compliance but also the right thing to do.

And remember that no, one department can force corporate culture on to the rest of the company. You must achieve buy-in from everyone, from the CEO all the way down. This way you play it safe and also to win!

Human Resources IQ has written an article claiming that the current economic situation is creating difficulties for human resources leaders.

The economic challenges that we are facing are creating a difficult environment for human resources leaders. Many companies are simultaneously experiencing surplus and scarcity of talent and are struggling to find the right human resources delivery models, the right labor and organizational structure and solutions for attracting and retaining key talent. In recent years, a distinct trend has emerged. More companies are selecting human resources leaders who do not come from traditional human resources backgrounds. An unscientific look at recent changes in human resources leadership shows that nearly two in five human resources leaders have come from outside the human resources function in the past five years versus pervious trends of one in 10. Reasons cited by corporations are many, including:

• An increasing need to get the people part of the business right
• Concern over the ability of traditional human resources leaders to understand the company and deliver business-oriented solutions
• “Human Resources Transformation” initiatives that are too slow to deliver results
• An inability of human resources to get costs under control
• A lack of robust people analytics

The emerging model is to place a strong operations leader in the top human resources spot and surround him or her with the appropriate experts who have deep functional knowledge. Operations leaders tend to have demonstrated strong people management skills in their roles and are seen as strong people managers. The expectation is that these leaders can model the behaviors of good managers and better balance business needs with more traditional human resources concerns. In addition, there is a strong focus on operational leaders who have led business transformation efforts and have a strong grasp of metrics and cost-cutting. Their mandate is often to simultaneously make human resources more efficient and effective with a strong focus on improving business results.

This trend has been enabled by a number of changes in the vendor marketplace, including the evolution of both the human resources outsourcing and human resources systems markets. Companies have more and more options for getting core human resources services and technology delivered and can find others to do many of the transactional activities. This allows these operational leaders to leverage their external relationships while focusing on the most strategic human resources priorities for the business. In addition, having the right staff with the appropriate expertise is critical to making these leaders successful.

Read the full article.

HR leader explains the new discrimination law powers of the Fair Work Ombudson should cause concern amongst employers.   

The recent changes to the Federal Disability Discrimination Act should not be employers’ greatest concern. The impact of the new discrimination law powers of the Fair Work Ombudsman are of more significance, according to Jane Seymour of Justitia Lawyers & Consultants.

Although the changes to the Disability Discrimination Act, which came into effect on 5 August, will affect employers, Seymour said the newly introduced right of employees to make a discrimination complaint to the Fair Work Ombudsman should cause employers more concern.

“The recent changes to the Federal disability legislation do change the detail of the law, but not so significantly that employers can either relax or, on the other hand, have to significantly tighten their practice,” said Seymour.

She said what should be of more concern for employers is potential prosecution by the Fair Work Ombudsman for taking discriminatory “adverse action” – where employees can make a direct complaint to the Fair Work Ombudsman in relation to disability (and other types of ) discrimination.

“This adds a much greater risk for the employer who puts a foot wrong in the area of disability,” said Seymour. “Employers could face investigation, prosecution and potentially a penalty of up to $33,000 for each breach.”

Since 1 July the Fair Work Ombudsman can start legal proceedings against an employer found to be discriminating against an employee.

The recent changes to the Disability Discrimination Act include the introduction of an explicit obligation to provide “reasonable adjustments” and extending the availability of the “inherent requirements” and “unjustifiable hardship” defences.

“One of the main changes is that the onus of proof has shifted from the employee to the employer,” said Seymour.

Professor Susen Varghese from SIES College of Management Studies shares her views on leadership in today’s modern society and how to ensure leadership is effective.

Peter F Drucker once said “Leaders grow, they are not made”
Leadership today has become a very multi meaning term. Professionals from various disciplines have defined ‘Leadership’ in different ways. Paradigm shifts in the cultures of organisations and the consistent parallel and horizontal development of companies have raised the need to look at leadership in a new angle.

A strong company is the one that has leaders spread all across the company, not just at the top. The business world today needs both good leaders and good managers. However, because of the rapid change occurring in the industry today, a company needs far more leaders, not more managers.

Appointing the right Leader
Time after time again, businesses put the wrong person in charge. Unintentionally, they reward a "don't rock the boat" mentality. Conformity and status quo are the first steps leading down the staircase of a business disaster. Good leaders develop through a never ending process of self-study, education, training, and experience.

As correctly quoted by Ray Croc “The quality of a leader is reflected in the standards they set for themselves”. Effective leadership arises out of groups, organisations and communities that have built trust, and learned to collaborate and make decisions and solve problems constructively.

Successful Leadership
True leadership is about taking people to a place they wouldn't go to by themselves. Good leaders don't merely supervise; they create a sense of purpose and direction for those they lead.

Organisations can only build great leaders in an environment that nurtures and supports that development. If they don’t have such an environment, they need to change their culture to create one. But organizations cannot change their culture without good leadership.

Leaders need to "be present" and being literally; physically present is the fundamental meaning of that term. We're always surprised at how many leaders we encounter who spend most their time in their offices or on "executive row."

They seldom show themselves to those they lead. It has been over twenty years that the groundbreaking book ‘In Search of Excellence’ pointed out the virtues of "Management by Walking Around." Mayor Giuliani certainly demonstrated the wisdom of that practice.

But being present means more than just physical presence, important as that is. It means being present in the moment - focused totally and completely on what is happening right here and right now. It means, when you're with people, giving them your full attention, so that they will feel recognized and motivated. When you're not present to the people you lead, it weakens their willingness to commit.

Being present also means being flexible, able to deal spontaneously with rapid change. Think of being present as a focused but flexible dance with the world in which the leader can instantly change step or tempo as the music changes.

Using effective leadership to avoid Employee burnout and high staff turnover
Good leadership is also instrumental in avoiding employee burnout and reducing staff turnover. James Bradley lately pointed out that “Burnout is no longer the acknowledged domain of the highly pressured lawyer or doctor, but a condition that can hit anyone at any time in their career if they are faced with high productivity expectations in a hostile and unsupportive environment”. The key then, is a business philosophy that values its people and invests to nourish and support development through professional training, coaching and mentoring. Problems only arise when this is not set in place as a positive encouraging mechanism, but instead is used as a whip by ill-equipped management. It needs to inspire people, raise morale and restore a sense of purpose and self-worth, naturally leading to best performance.

As Natalie Calvert, MD, Calcom Group points out “Positivity and optimism in the workplace encourage tolerance and balanced judgement, and inspirational leadership enables access to those positive qualities that build our self-respect and contentment - the ultimate preventative medicine for burnout”.

Tips to achieve effective leadership
Thus, the ‘leader today’ requires to stick to certain must do’s in order to be effective, successful and sustaining in this ever changing corporate governance. These essentials can be listed as:-

01. Being there.

02. Always remember, Communication is the key.

03. Instilling optimism while staying grounded to reality.

04. Tell the hard truths.

05. Minimize status differences and insist on courtesy and mutual respect.

06. Master conflict. Deal with anger in small doses and engage dissidents.

07. Take care of yourself: Maintain your stamina and let go of guilt.

08. Reinforce the team message constantly.

09. Find something to celebrate and something to laugh about.

10. Have the courage to take big risks, and more.

11. Foster a spirit of tenacious creativity. Never give up—there’s always another move.

rogenSi have released their May survey results aiming to help organisations understand the impact of the financial crisis on the mindset of the global workforce.

Introduction
There can be no doubt that the financial crisis of the last 12 months has impacted on the mindset of the global workforce. This survey specifically focused on the mindset of exceptional performance. This is not to deny the critical importance of knowledge, skills and process, but it is ultimately the mindset of team members that drives their energy and resourcefulness.

A significant challenge leaders currently face is to deliver exceptional results in a very difficult climate, whilst simultaneously maintaining employee engagement and morale. Whether their focus and concerns are at the survival end or the accelerated growth end of the performance spectrum, these times provide needs and opportunities like few before.

The study revealed:
    • Employees believe in themselves, but not necessarily the leadership;
    • There are mixed levels of ‘change readiness’ across age groups; and,
    • Client facing sales teams have been the most impacted by the current challenges.

These findings are a clear ‘call-to-action’ for global leaders. Employees report high levels of self-belief, but are experiencing equally high levels of disengagement. Obviously, left unchecked this will progressively impact on business performance. Leaders need to creatively connect with and inspire their people at a deeper and more meaningful level.

Overview of the results
According to the authors, leaders must "harness" this positive employee self-belief - before it wanes - by "engaging their people more creatively and purposefully".

They must "connect with and inspire" workers at "a deeper and more meaningful level".

And "time is of the essence", they say. Leaders must "radically change the level and nature of their connection with their teams". "Incremental improvements in leadership connection and impact are unlikely to be sufficient to even maintain the motivational status quo."

Leaders, they say, must:

    * communicate the business plan to all employees, and keep talking to them to ensure they understand, accept and are committed to the strategy;
    * emphasise the process of how success will be achieved, and de-emphasise results. Results are a manifestation of many factors, including those that can't be controlled. "Put the focus on what we can control and commit to execution excellence";
    * measure the behavioural expectations of employees, and provide regular feedback on the achievement of these standards;
    * use the power of the team by looking for opportunities to involve employees in the planning, execution and celebration of goals;
    * link business-specific issues to general motivation and emotional wellbeing; and
    * provide employees with meaningful, rewarding and challenging work. "People want to know they are making a difference and feel recognised for their achievements."

In short, leaders must continue to apply the same strategies required in "good times" to drive "exceptional performance", but deliver "more" of them and "with a higher level of quality", the authors say.

To continue reading Global Mindset Survey Results May 2009

HR Daily discusses the importance of forming successful employer/employee relationships.  

In an era of constant change, an employer's capacity to adapt, succeed or survive hinges on the quality of employer/employee relationships, or the "psychological contract", according to a corporate psychologist.

"The psychological contract defines the 'essence' of the employment relationship," says Colin Beames in his book, Transforming Organisational Human Capital.

"It serves to bind individuals and organisations together and regulate their behaviour, making possible the achievement of organisational goals."

And it's a "powerful determinant", he says, of the behaviour and attitudes of workers.

"The quality of these employer/employee relationships... significantly impacts on both performance and retention."

Employees, Beames says, are more willing to accept change - such as downsizing, restructuring or the implementation of new initiatives - if their relationships with their employers are "healthy".

How the psychological contract is formed
Every relationship has a psychological contract, Beames says.

In business, he says, it can be defined as the set of expectations - based on stated or implied promises and understandings - that operate between employers and their staff. It is neither a written nor legal document, but "nevertheless 'real'".

The contract is established from the moment the organisation "promotes itself" (in a job advertisement, for instance) and develops progressively through every phase of the employment relationship, Beames says.

It is formed through what is written (from job ads through to HR policies), said or unsaid (by managers and colleagues), implied and observed, and is influenced by:

• the salary package;
• other financial and non-financial benefits;
• job security and career development;
• recognition of ontribution;
• workplace safety;
• the resources and training provided;
• managerial support; and
• promotion opportunities.

The "health" of the psychological contract, Beames says, depends on the employee's perception of the "delivery of the deal".

If they feel that their expectations aren't being met, he says, they're likely to become disengaged.

The cost of getting it wrong
Beames notes that while employers can increase the job satisfaction and engagement of workers by making and keeping promises, they can't be expected to fulfil every expectation.

There must be a "trade-off", or balance, he says, between meeting employee expectations and achieving business goals.

It is essential, therefore, that the psychological contract, or workforce strategy, is consciously linked to the business strategy, he says. A failure to do so can lead to excessive turnover.

For example, if the psychological contract places too much emphasis on remuneration based on short-term performance in an industry that relies on the development of long-term client relationships, those relationships will suffer and output will be restricted.

If employee salaries are stymied as a result, Beames says, talented workers are likely to leave and pursue other opportunities.

But even if workers manage to achieve outstanding results in these circumstances there is still a big chance they'll flee, he notes.

When a psychological contract is built almost entirely on short-term economic factors, he says, attachment tends to be tenuous.

Recruitment phase critical
The responsibility for managing the psychological contract is spread between executives, HR personnel and line managers, Beames says.

How they engage with the recruitment process, he says, is particularly critical.

"It is important that candidates are moved... from one part of the recruitment and selection process to the next, without them uncoupling or disengaging," he says.

Managers, he says, must maintain intermittent contact with recruits and provide them with regular debriefs and updates.

"The goal is to unite parties into a longer term relationship," he says. "However, the relationship is fragile in these early stages, and simple violations of the script or conventions are sufficient to terminate it."

Don Holley, Managing Director of  Mindset has written an article explaining the importance of succession planning.  

The idea of succession planning in the workplace has been around for hundreds of years. Think about Queen Elizabeth, for instance, who succeeded her father as the Commonwealth monarch after his death.

Like the royal succession that has happened for centuries, succession planning is all about being ready for the future; having a plan in place once the next step must be taken. As a society we have been conditioned to expect this to happen, for example when there is a government leadership reshuffle a new Prime Minister is named at the same time the outgoing Prime Minister stands down.

However unlike the monarchy, today’s succession planning not only focuses on replacing talent, but also on developing the talent who will fulfil the organisation’s long-term goals. This is relevant to all levels of the organisation, not just at the top. Succession plans should be put in place for team leader, management and executive roles.

The current economic crisis means some industries have staff freezes, so it’s important have a workplace strategy in place when the market picks up. Labour is currently more abundant, however the right talent might not be available as there is still a skills shortage in some sectors, such as engineering. This is where future planning is imperative to long-term success.

Good leadership is necessary to an organisation’s success and the current skills shortages mean companies are doing all they can to hold on to talented leaders when they find them. Companies are identifying critical jobs, pinpointing gaps in their talent pool and developing staff or recruiting to ensure the jobs are filled.

A good succession planning system will be proactive and have the employee firmly in the picture, by giving them the opportunity to assess their progress and outline opportunities needed to develop their talent further. Individual development plans are created for each ‘star’, matched to their interests and forecasted development within the company. Effective succession management is a strategic tool for attracting and retaining great staff.

Successful talent development includes mentoring, coaching, job rotation, special assignments that prepare employees for the role ahead, education (formal, in-house and web-based) and feedback opportunities. For example, computer giant Dell focuses much of its development activity on its top talent and holds business unit leaders accountable for their development.

Like in any successful operation, succession planning systems must be continually refined and adjusted for the greatest returns. Feedback from employees, technological and economic climate changes and what the competition is doing, should all be taken into account when tweaking the plan.

Tips on succession planning:
• Make the plan uncomplicated so it is consistent and objective throughout all departments and office locations;
• Balance the need to fill vacancies with opportunities for key talent to develop;
• Outline the skills, values, behaviour and attitudes required for each role;
• Have more than one person groomed for succession so there is at choice when the role needs to be filled.

While succession planning is a key component to an organisation’s continued success, there are also some points to be considered so the system runs smoothly and does not become political. When outlining talent gaps that need to be filled, be careful not to clone existing managers and don’t overlook quiet achievers in favour of employees who stand out.

It is also important to keep morale of other employees who are not on the ‘star’ list high, so they don’t become disillusioned and demotivated. New staff could be seen as a threat or an opportunity to existing employees, so it is up to the organisation’s leadership to create mechanisms for cooperation, effective team building and communication to ensure a continued culture of growth exists.