HR Professionals Guide To Business Transformation White Paper
HR Professionals Guide To Business Transformation White Paper
HR Professionals Guide To Business Transformation White Paper
Overview
Changemanagementandspecificallylargescaleorganisationalchangeorbusinesstransformation initiativesaredominatingtheactivitiesofmanyorganisations.InthemostrecentTrendsin BusinessTransformation1survey84%ofEuropeanmanagersviewedtransformationasthenorm andwereinvolvedinanewbusinesstransformationprogrammeonaverageevery6months. AllUKLocalauthoritiesandNHStrustshavesomeformoftransformationprogrammeunderway, drivenbybudgetcutsandtheneedtomaintainservicelevelsinanenvironmentofsmaller resources.Intheprivatesector,25%offirmssurveyedwerereorganisingtoreducethepressure onresourcesand25%wereimprovingtheflowofinformationacrosstheorganisationtomove awayfromsilobasedthinking2. Aquickreviewofasinglerecruitmentsiteproducedalistofover500transformationalchange jobsintheprivatesectoracrossallindustrysectors.Thereishighdemandfortransformation consultantstoleadoutsourcinginitiatives,theimplementationofSAPandotherERPsystems, redesigningmarketingfunctionstofocusondigitalmediaandthedesiretoreengineerprocesses inprocurement,finance,logisticsandordermanagement. Manyofthesechangesaretransformationalpurelybecauseoftheinterdependenceofsomany ofourbusinessfunctions.Forexample,theneedtomakechangesinthefinancefunctiondrives newprocessesandneworganisationstructuresinprocurement,salesandbusinessdevelopment. Itisthisinterconnectivitythathasledtothepopularityofthetermbusinesstransformationaswe cannolongerimplementchangewithinasinglebusinessunitorfunctionalarea.Eachchangethat isconceivedmustbereviewedforitsimpactonpartoftheorganisation,recognisingthat sometimesthisimpactisanunintendedconsequenceandmayhaveanegativeeffectinonearea thatmustbebalancedbythebenefitsgainedbyanother. Thestructureandskillsneededforbusinesstransformationisderivedfromeffective OrganisationalDevelopment.ODbuildsthestrategiccapabilitythatgeneratessustainablechange. Thispaperexaminesthecontext,skillsandchallengesassociatedwithbuildingacapacityfor businesstransformation.
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Theportfolioofinitiativesthatanorganisationismanagingmustbebalancedbetweenthedesire tochangeandtheneedtoruntheexistingbusiness.Itisthecurrentbusinessstructurethatis oftengeneratingtherevenuethatwillbeusedtofundthechanges.HRarenaturallyactivein supportingthebusinessasusualenvironmentbutdemandforthissupportwillincreaseduring transformationasweaskstafftocopewiththeirexistingworkloadwhilstlearningnewwaysof workingrelevanttothetransformation. HRneedtobeinvolvedintheveryearlystagesoftransformationalchange,whenoptionsare beingexploredanddecisionsarebeingtakenaboutthescopeofthechangesandthefuturevision fortheorganisation.HRcanrepresentthecultureandvaluesoftheorganisationwhichareeasily overlookedwhenseniorexecutivesaredrivingtransformationfromtheperspectiveofefficiency improvementsandcostsavings. However,toooftenHRarenotinvolvedinatransformationonlyatthepointwhenthescope, objectivesandoverallvisionofthetransformedorganisationhasbeencompletedbythesenior managementteam.EffectivelythechangeispassedtotheHRfunctionforimplementation throughtherestructuringoftheroles,redraftingofresponsibilitiesandcommunicationofthe reasonsforandimpactofthechange. InarecentsurveyManagingChange2010:theroleofHR3,64%ofHRmanagersstatedthatthey wantedtobecomeinvolvedinchangeearlierinthecyclesothattheycanshapethe transformationtoincludetheirknowledgeoftheexistingorganisationalcapabilityforchange.
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Author:CharlotteWoolff,XpertHR
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SkillsandChallenges
Thecontinuingincreaseinthenumberofchangeinitiativesbeingundertakenismirroredbythe demandforchangemanagementskills.TheInterimManagementAssociationreportgrowthinthe demandfortheseskillsintheirlatestsurvey: Changeortransitionmanagementrequiredin18%ofroles(in2010thiswas14%) Businessimprovementexperiencerequiredin21%ofroles(in2010thiswas17%) Anecdotalevidencesuggeststhatwhilstorganisationshavethecapacitytoplanabusiness transformationtoofewhavetheabilitytomotivateandinspiretheiremployeestoparticipateand turntheplansintoreality.ThisissupportedbytheresultsintheCapGeminisurveywhich identifiesthreeskillsthatmanagersfeeltheirorganisationsneedtoimprove: Abilitytoensurethatstaffunderstandandacceptthetransformation Communicatingtheobjectivesofthetransformation Avoidingslippageintheimplementationofthetransformation Theseskillsareinhighdemandbecauseachievingsuccessfulchangeisasignificantleadership challenge.Numeroussurveysindicatethatfailureisaslikelyassuccess,withstructuralandpeople drivenreasonsforthisfailure:
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Definingtheskillsforbusinesstransformation
ThemapisdividedintotenprofessionsincludingOrganisationalDesignandOrganisational Development,bothofwhichexplicitlystatetheneedforchangemanagementskills.Forexample, inOrganisationalDesignthereisarequirementforHRprofessionalsto: knowhowtoutilisechampions,shiftfencesittersandremoveblockerswhendesigningand implementingstructuralchange InOrganisationalDevelopmenttherearefurtherrequirements: Knowthecriticalrolethatmanagershavetoplayinthesuccessofchangeinitiativesandis abletoengagemanagersinthechangeplan Knowthekeystagesinchangemanagement KnowhowtoimplementODinterventionsforcomplexorganisationwidetransformation programmes Learningaboutthetheoryandpracticeofchangemanagementandbusinesstransformation supportsyourcareergoalsbyenablingyoutodevelopthebehavioursnecessaryforeffectiveHR management.TheCIPDHRProfessionMapidentifieseightbehaviours,fourofwhichIthinkare particularlyrelevanttochangemanagement: Collaborative Workseffectivelyandinclusivelywithcolleagues,clients,stakeholderscustomers,teamsand individualsbothwithinandoutsidetheorganisation. Thisbehaviourmakesexplicitreferencetotheneedtoworkeffectivelywithallthosewhoseactive participationandsupportisneededtoimplementandembedorganisationalchange.
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Personallycredible Buildsatrackrecordofreliableandvalueddeliveryusingrelevanttechnicalexpertiseand experienceanddoessowithintegrityandinanobjectivemanner. Successfulchangemanagementandbusinesstransformationdrawonawiderangeoftechnical skillsunderpinnedbytheneedtoreallyunderstandtheorganisationalcontextofthechange.Itis importanttounderstandthetheoriesandmodelsassociatedwithchangemanagementinorderto makeaninformedchoiceabouttheapproachthattheorganisationneedsandtobeabletohold yourowninthecompanyoftrainedchangeprofessionals. Skilledinfluencer Demonstratestheabilitytoinfluenceacrossacomplexenvironment,togainthenecessary commitment,consensusandsupportfromawiderangeofdiversestakeholdersinpursuitof organisationbenefit. Ourorganisationsarebecominglyincreasingcomplex.Formalunderstandingofhowtoidentify, analysetheneedsandplanfortheneedsofadiverserangeofstakeholdersisacriticalskillbutone thatcanbelearnt. Couragetochallenge Showscourageandconfidencetospeakupchallengeothersevenwhenconfrontedwith resistanceorunfamiliarcircumstances Theconfidencetochallengeisderivedfromtheconfidenceyouhaveinyourskillsandknowledge. Ensuringthatyouareeducatedinthetheoriesandmodelsofchangemanagementisnotaniceto havebutabusinessessentialforthosewhowishtofullyparticipateinthemanagementand directionsettingoftheirorganisation
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Qualificationsandassessments
InadditiontothecontributionoftheCIPDinthisarea,therearetwootherbodieswhoare positioningthemselvesastheprofessionalbodyforchangemanagementpractitioners: ChangeManagementInstitute(CMI)anindependentnotforprofitorganisationsetupto promoteanddevelopthepracticeofchangemanagementinternationally AssociationofChangeManagementProfessionals(ACMP)providesnetworkingand collaborationforchangemanagementprofessionalswholeadthepeoplesideofchange. ACMPisfocusedondevelopingindustrystandardsandaprofessionalcertificationprogram toensureagloballyrecognizedstandardforthechangemanagementdiscipline. Thereisgrowingdemandforqualificationsinchangemanagement,recognisingthebusinessvalue thatthisskillsetoffers.TheAPMGroup,aUKbasedaccreditationandcertificationorganisation offerstheChangeManagementPractitionerqualificationwhichisexaminedatFoundationand Practitionerlevelandincludesmodulescovering: Definitionofchangeanditsimpactonindividuals,teamsandtheorganisationasawhole Assessingtheimpactofchangeonindividualandteamproductivity Analysisofhoworganisationswithdifferentculturesandvaluesareaffectedbychange Considerationofdifferentmodelsoforganisationalchangeandtheirapplicabilityto differentorganisationalstructuresandcultures TheChangeManagementInstituteoffersanassessmentagainstachangemanagement competencymodel,successfulcompletionofwhichresultsintheawareofAccreditedChange Manager(ACM)status.
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Developingyourskillsinchangemanagementandbusinesstransformation
HRprofessionalsundertakeanumberofrolesinmanagingchange.Tosupportorganisationwide changetheyfacilitatethecommunicationandengagementwiththechange,andguidethose operationalmanagerswhoaremakingchangestoprocesses,systemsandorganisationstructures. WherechangeisdirectlyimpactingtheHRfunctionofanorganisationHRmanagerswillbe expectedtoadopttheroleofleader,managerorchangeagent. Theknowledgeandskillsrequiredtoundertaketheserolesinclude: 1. Understandingtheapproachtobusinesstransformation Toeffectivelysupportchangeitisimperativethatthosehelpingotherstoengagearethemselves veryclearabouthowthetransformationwillbedelivered.Understandingtheprocessofbusiness transformationenablesyoutoremainfocusedonthenecessarystepsandhelpthoseinvolvedto navigatetheirwaythroughtheuncertaintyandchaosthatisoftenassociatedwith transformationalchange. Itbreaksdownthemanymovingpartsofthechangeintoclearlydefinedpiecesofwork, reducingtheparalysisthatariseswhenstaffandmanagersfeeltheworkissocomplexthat theydontknowwheretostart Itproducesaroadmapofchangesandnewcapabilitiesthatareexpectedasaresultofall thedifferentprojectswhichenablespeopletoidentifyhowtheywillbeaffectedandhow theycanbecomeinvolved
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2. Developingthebusinesschangelifecycle Manyorganisationsstruggletoimplementchangesuccessfullybecausetheydonothaveapre agreedapproachtomanagingchangethatisunderstoodandcanbeappliedbyallthoseinvolved inaconsistentway. Anorganisationneedsabusinesschangelifecyclethatsetsouthowachangeisplanned, implementedandembedded,takingintoaccountthecultureoftheorganisationandscaleofthe changesbeingundertaken.Itshouldexplainindetaileachstepofthechangemanagement processfrominitialideatosuccessfulembeddingofthechangeasthenewbusinessasusual. 3. Buildingconfidencetosuccessfullyimplementandembedchange Businesstransformationrequirestheparticipationofeveryoneintheorganisationasitisonlyat thisindividuallevelthatspecificchangestoworkingpracticeswilltakeplace.Weneedtobuildan environmentoftrustwhereindividualsbelieveinthefairnessofhowchangesthataffectthemare reachedandempowerindividualstomakethesechanges. Thisempowermentcomesfromunderstandingthepsychologicalimpactofchangeandhow influencing,motivatingandpersuadingareessentialskillsinmakingchangehappen.Identify activitiesthatcelebratecompletionofthechangeandrewardnewbehavioursandattitudesthat alignwiththenewbusinessmodel.
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Conclusion
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MavenCompanyOverview
Wewillworkwithyouto: definewhatyourorganisationneedstoachieveandthestructuresandrolesrequiredtodo so ensurethatthechangeleaderscanprovideinspiration,motivationanddriveforthe change enablemanagerstoimplementthechange ensurethatthoseimpactedbythechangetotheirworkingenvironmentknowwhyitis happeningandsupportit Mavencanprovideyouwiththeskillsandtechniquestoavoidbecomingyetanothercaseof businesstransformationgonewrong.Wearenotmanagementconsultantswewillnotdoitfor youbutwewillenableyoutodoit.
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BiographyMelanieFranklin Melaniehasanimpressivetrackrecordinthesuccessfulrealisationofbusinesschange programmesacrossprivateandpublicsectororganisations.SheisthefounderandChief ExecutiveofMavenTrainingandishighlyexperiencedinthedeliveryofboardlevel guidanceandmentoring. Shetakesaverypracticalapproachtochange,programmeandprojectmanagementwith priorityontherealisationofplannedbenefits,workingcloselywithherclientbaseto ensurethatthedesiretoimplementbestpracticedoesnotresultinbureaucracyforits ownsake.EachsolutionthatMelanieproposestoclientsisbasedonsoundpracticaladvice andexperiencewithguidanceonhowitislikelytobereceivedbystaff,howresistanceto changecanbeovercomeandhowstakeholderscanbeengagedfromtheoutset. Melanieisatalentedcommunicatorandhasareputationfordeliveringcomplex informationwithhumourandpassion.Shedrawsonherwealthofpracticalexperience toillustrateconceptsandtoengageheraudienceinlivelydebatesonadvantagesand disadvantagesofeachapproachthatsheoutlines. Melanieistheauthorofanumberofbooksandwhitepapersaboutprojectandchange managementincludingtherecentlylaunchedManagingBusinessTransformation:APractical Guide
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ForfurtherinformationaboutMavenTraining pleasecontact: MelanieFranklin Telephone:02074037100 email:[email protected] website:www.maventraining.co.uk Followuson: Twitter Facebook LinkedIn Slideshare YouTube Scribd