HR InnovAsian Report 2014

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This report, geared towards human resource professionals or managers in organisations, covers an overview of Innovation, and builds the case for HR to be involved in driving innovation in …

This report, geared towards human resource professionals or managers in organisations, covers an overview of Innovation, and builds the case for HR to be involved in driving innovation in organisations. Findings on the state of innovation in HR (based on our study amongst HR professionals in Malaysia, Singapore, & Indonesia) are also shared - particularly in the areas of recruiting and managing talent.

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  • 1. Published by: Alpha Catalyst Consulting Sdn. Bhd. Level 36, Menara Maxis, Kuala Lumpur City Centre, 50088, Kuala Lumpur, Malaysia Tel: +603 2615 0133 ISBN: 978- 967-10078-1-5 © 2014 Alpha Catalyst Consulting Sdn. Bhd. All rights reserved. No part of this publication may be reproduced, stored in retrieval system, or transmitted, in any form or by any means electronic, mechanical, photocopying, recording or otherwise, without prior permission of Alpha Catalyst Consulting. The contents of this report has been prepared by Alpha Catalyst Consulting Sdn. Bhd. and constitute the views and opinions of Alpha Catalyst Consulting Sdn. Bhd. only, and not those of The publishers and authors make no representation, express or implied, with regards to the accuracy of the information contained in this book and cannot accept responsibility or liability for any errors or omissions it may contain. Brand and product names are trademarks or registered trademarks of their respective owners. Note: If you wish to publish or want to share any of the charts, please email us at
  • 3. 4 ® ® Study is one of the components under Alpha ® 2009, aiming to intensify the adoption of an innovative culture and mindset. and public sector, universities and the general public. global economy in the coming years, organisations of all types need to embrace innovation in a systematic and earnest manner. Countries need to to identify the challenges and drivers, and most importantly, recognise their strengths and weaknesses when it comes to innovating. ® , we launched a study of the Malaysian innovation climate, in collaboration with Microsoft Malaysia, to understand book, ‘Leading InnovAsian® Crowd InnovAsian® Study 2014. To date, via partnering with many other respondents, from at least 9 countries. This study is ongoing. For those who would like to contribute your voice, please go to; ® ® ® for other functions or sectors that are still in the planning stage and will to be a part of this burgeoning effort to help spearhead innovation in Asia!
  • 4. 5 FOREWORD ® Study 2014 for investing the time and mental energy to share their views respondents, not only from the three targeted countries - Malaysia, Indonesia, and Singapore - but additionally Leste, Taiwan & Japan. All this would not have been possible without the support from Malaysia, Singapore, and Indonesia, who championed promotion of the study! A special thank you also goes out to the team from, for their feedback on the survey questions. This inaugural study is aimed to uncover the state of, and the corporate innovation agenda. In analysing the outcomes from the study, we have taken the viewpoint of innovation management professionals, and do not claim to have in- It should also be noted that this study is not intended to be for robustness. It is, however, designed to give a snapshot the very best in charting a new course for themselves, while your views at Dr. Suraya Sulaiman is a thought-leader on developing an innovation culture in an organisation, and enhancing innovation capability amongst employees. Azim Pawanchik is a leading expert on specialises in working with top management of large organisations to develop innovation strategy & foresight. Aina Zahari specialises in Innovation Process & Analytics. She helps companies use data, tools, and a structured approach to be more effective in innovation. She is also a proponent of leveraging predictive analytical insights. AUTHORS
  • 5. 6 FOREWORD with leading-edge services and products to embrace the changing demands in talent sourcing. This is evident in our drive for transparency InnovAsian® Study 2014 provides fresh insights and shows the need for a innovation in your organisation through recruitment, talent management, about innovative approaches adopted for attracting and retaining talent in an organisation. organisations. Mark Chang
  • 6. 7 Businesses today have unanimously agreed that innovation is no longer optional. growth, organisations are more commonly engraving it in mission and vision statements, and more importantly, incorporating it into their everyday way of work. Does HR matter in innovation? The need to innovate is a given; the question is, who is responsible for making innovation policies, are known to be innovation killers. The main culprit, he argued, is risk aversion and the focus on uniform or standardised procedures and policies. the fundamentals of innovation and then InnovAsian® ® Study. Based on our analysis, we strongly believe involved in innovation in their organisations. The second focus of our report is to see how far innovative approaches are currently developing, engaging, rewarding, and role in innovation, they must also innovate within their own domains.This report also sheds light on some of the key challenges as a C-suite role is an emerging trend within large companies globally, and similarly in Southeast Asia. Many of the responsibilities under the purview of the Chief Innovation expanded role it should play or run the risk of being side-lined. predicting that “innovation will become a key PART 1 INTRODUCTION HRINVOLVEMENTININNOVATION 6% 11% 36% 27% 20% Not at all involved Very involved
  • 8. 99 PART 2 WHAT HR NEEDS TO KNOW ABOUT INNOVATION What is Innovation? it is important to have a single common understanding of what is understood as innovation. In our experience, even with a company on-board for innovation. The confusion on what is innovation is The US Advisory Committee on Measuring Innovation in the Twenty- development and/or implementation of new or altered products, organisational structures, or business models for the purpose of change and the kind of value it wants to generate from innovation. ® by creativity, then invention. If there is such a close correlation to the above, where does the INNOVATIONASSOCIATIONS R&D/Research/Prototyping Creativity Invention Product/Services Value Creation Design Processes Mindset Culture Business Model Patents Risks External Collaboration 44% 43% 31% 29% 21% 17% 16% 15% 14% 12% 11% 5% 5%
  • 9. 10 As demonstrated in the chart, the level of association with external collaborations, risk, and business models is low, which is slightly worrisome. organisation to leapfrog and disrupt the industry they are in, potentially making competitors irrelevant, as these are Clayton Christensen in his book ‘The concept of disruptive innovation, where the introduction of a new technology or business model disrupts traditional market practices. In the next section, we discuss business model innovations in more depth. a culture supportive of innovation should different criteria for measuring high risk and transparent approach to managing risks greatly contributes to building a healthy environment for innovation to to drive innovation, especially when resources are constrained, which is organisations. This is an excellent reason to co-create with suppliers or customers, to identify key focus areas and solutions shared to produce a new service or product, instead of a single organisation taking on the burden on its own. It is important for both leaders and employees to understand that innovation need not always be an in-house endeavour, and that taking on risk can be acceptable. its employees perceive as innovation, it is much easier to move forward, to address any misconceptions, to have a common language for innovation and chart the innovation.
  • 10. 11 There are many types of innovation. innovation into four types - product innovation, process innovation (a new or markedly improved product or delivery changes in product design or packaging, and organisational innovation (involves introducing a new organisational method on these categories, employees from different functions and all levels - be they in production or marketing or human resources etc. - can be involved in bringing about innovation value to the organisation. ® Study are already practising the various types of innovation, with more than half focusing on Types of Innovation by the high percentage of organisations in the service sector in Asia. Coming in at a close second place is process/operational innovation. This has been a common focus in organisations, with the introduction of Six Sigma and lean management practices. In our experience, these mainly center on incremental innovation, driving organisations productivity. The two types of innovation that are marketing and business model innovations. Sales or marketing innovation is a worthwhile innovation territory to be explored, as brands may be able to leapfrog with less resources. Business model innovations may potentially assist organisations to disrupt their industry, leading change and market penetration globally. From our experience, these ideas are still in the embryonic stage for many organisations. TYPES OF INNOVATION SERVICES 54% PROCESS/ OPERATIONAL 52% PRODUCT (PHYSICAL) 47% SALES/ MARKETING 21% BUSINESS MODEL 21%
  • 11. 12 A special mention of business model innovation is made to note its effectiveness in potentially outdistancing competitors. Unlike the other types of innovation, which may be either incremental or radical, business model innovations are more likely to be radical, as they fundamentally involve a change in the essence of how the business operates. This is expected to translate into higher risk. For large organisations with much more at stake, the natural tendency would normally be to maintain the status quo rather than attempt monumental change at the fundamental level of their business. Agile younger organisations or start-ups have more often played the role of market disruptor. This kind of telecommunication giants. model that allowed online customisation of PCs. Syngenta, a Swiss agriculture company, also adopted it when the company developed an innovative packaging and distribution method of their fertilisers and protection chemicals to smallholder farmers in Kenya. The approach, which combined with training or education programs for farmers, created a new ecosystem, fuelled by a new sense of purpose. CavinKare tackled business shampoo in the 1980s. A common thread amongst all these examples is the deep understanding of their customer needs. How can a large organisation learn and adopt the entrepreneurial mindset within the organisation? Business Model Innovation
  • 12. 13 IN T EGRATION:APPLICATION:BRAND:VALUECREATIO N EG OA P D VAVV POSSIBIL ITIES:PORTFOLIOOFO PTIONS CREATION EXECUTION:IP:CHOICE CONVERSION CONNECTION CAT ALYST:NE EDS CONCEPTION Making Innovation Happen InnovAsian® Process of the industry, the innovation type or the department or function undertaking the innovation, the basic framework applies.
  • 13. 14 C3: CONVERSION The third stage involves selecting the best idea and converting it into a complete solution. At this stage, the organisation chooses the solution needs while still operating within the constraints faced. At the end of this stage, there will be a new invention, say a new product or service that is valuable process to scale and implement more widely in your organisation. It will also be at this point that a decision will likely be made about possibly pursuing forms of intellectual property. At this is key. A constant reassessment of the innovation in progress is necessary; If the materialise at this stage as envisioned, managers should still be prepared to kill the idea and perhaps start again from the Conception stage. C4: CONNECTION is about connecting the solution to the end user or commercialising the solution in the market to create value. value from their innovation endeavors and how they inculcate the innovation culture is evaluated. This stage will require a readiness to adapt the solution to emerging circumstances, and preparedness to deal with failure and unexpected circumstances. C1: CONCEPTION The innovation process begins at the the identifying the need for change. (The trigger for change can be a positive pull or a negative push, faced by the identifying the needs for change, to ensure an organisation can retain or create new value. At this stage, key areas to contemplate are the strategic direction, leadership drive, and This is also the point of identifying constraints faced by the organisation, in the market, by customers, and embracing them as boundary parameters. This stage serves as the foundation for the rest of the innovation process. By the end of this stage, there should be clarity in the area to innovate, achieved. C2: CREATION The next stage is to conceptualise and brainstorm possibilities to create a portfolio of options or possible ideas. Keeping a clear view of the needs and will be crucial for making sure the potential solutions are at least somewhat feasible in light of the constraints, yet stage is also about experimenting with new solutions, testing them out with customers, suppliers, or partners. Important considerations at this stage are how companies go about their idea generation and experimentation process. For instance, whether external collaborations should be tapped a portfolio of solutions, including breakthrough ideas. After creating and collecting possible solutions, evaluate their strengths and potential values.
  • 14. 15 ® combination of tangible and intangible parameters. The intent of this is to best identify the parameters that organisations should pay attention to, be it process related, culture related, etc., for moving the organisation forward in innovation. outcome from the study, listing in descending order, the top two most important challenges employees in the corporate sector say they face in innovating at work. Both of the top two challenges are deeply rooted in organisational culture and leadership aspects. The question The third biggest challenge to innovation according to respondents is ‘lack of readiness innovations ahead of market readiness, or it may imply that the solution providers are not spending enough time to truly understand the needs of the end-users and and how their their market from the early stages of innovation. same team members. In addition, more likely than not, collaboration forms the core of many play a larger role in these aspects as organisations work with more and more diverse groups of Addressing Innovation Barriers CHALLENGESEMPLOYEES FACEININNOVATING Lack of trust & empowerment No clear direction Lack of readiness by customers to accept new ideas/solutions Lack of funding to develop and commercialize ideas Lack of great ideas Lack of innovative talents Poor execution/project management Lack of understanding of customers' (internal/external) needs Fear of failure Inadequate rewards/incentives to innovate Risk averse leaders/managers 18% 12% 17% 18% 12% 10% 11% 8% 9% 6% 8% 6% 7% 12% 6% 6% 6% 7% 4% 8% 3% 7% Top challenge Second challenge
  • 15. 16 Driving Innovation in Organisations Apart from identifying the challenges, it is also key to recognise what drives employees to important aspect of what employees need to be innovative. This was followed by ‘great risks to attempt new, innovative solutions. If not managed well, the impact would be that the innovations out of reach. comfortably voice ideas, where there is empowerment, and an opportunity to learn and grow. Contrary to what may have been assumed, it appears that employees are more strongly driven TOPDRIVERSFOREMPLOYEES TOINNOVATE Leadership support & trust Great innovation teams & collaborative environments Clear process for innovation Innovation as part of my KPI Exciting innovation-related projects Time & flexibility to innovate Generous monetary rewards to innovative employees Resources and tools Innovation-related training Non-monetary rewards Top driver Second driver 30% 15% 13% 6% 9% 7% 7% 7% 7% 12% 7% 8% 5% 10% 5% 14% 2% 5% 16% 14%
  • 16. 17 Innovation Culture Why is it important? what is meant by innovation, it is important to establish important considerations of how innovation can transpire within the Innovation 1000 Study, they found that only about half of the companies surveyed had a corporate culture that robustly supports their innovation strategies. Additionally, organisations with unsupportive cultures and perform their competitors! A simple dipstick test of innovation culture that we have adopted looks at four critical parameters: 1 The clarity in the direction areas to innovate 2 The emergence of fresh solutions or breakthrough ideas 3 The willingness of leaders to take on risks to implement innovative solutions 4 How failure in innovation projects is managed There are many aspects at the foundation of innovation performance in an organisation - the culture, innovation process, capability or knowledge, and capacity or resources but not the culture or capable talent will hinder innovation. Similarly, having only an innovative culture without the capabilities will not guarantee success. As can be seen from the innovation barriers and drivers previously discussed, the need for empowerment, leadership support, great innovation teams and a collaborative environment, all relate directly to leadership culture is one that is gaining more and more traction in conversations related to innovation globally. Many organisations have begun to embrace the fact that it is a more obscure important role within the organisation. A culture is the said and unsaid practices in the company that mould the thinking, behaviour, and values that employees live and work section, many of the drivers and barriers of innovation are also related to soft skills or intangible measures. As an organisation it will be clearer how they can move forward. respondents found that it is challenging to believe that with understanding what needs to be measured, organisations are one step closer to establishing it.
  • 17. 18 InnovAsian® which evaluates the culture within various industries, namely IT, oil & gas, banking, manufacturing, and services. Leading the way in terms of clarity of the direction to innovate is the IT industry. The emergence of breakthrough ideas within the service, banking and manufacturing industries are low compared to IT or oil & gas industries. These the lack of encouragement or even a lack of channel for ideas to be captured. The last two indices on the graph are an echo of the pervasive culture within the organisation. The IT industry leads on the willingness to take risks, likely a result of the highly competitive and fast-paced industry. A very in the convergence of scores, across all evaluated industries on the parameter ‘failure of respondents believe being involved in ® of 4, which indicates an agreement to the statement, had not yet been reached in any of the parameters; This is still some distance away from the ideal scenario. The best possible score in both studies were 5, which would have meant that respondents strongly agree that the four critical innovation culture elements are in place in their organisation. CLEAR DIRECTION TO INNOVATE FREQUENT BREAKTHROUGH IDEAS WILLINGNESS TO TAKE RISK FAILURE DOESN’T IMPACT CAREER BANKING MANUFACTURING SERVICES IT Agree 4.0 3.8 3.6 3.4 3.2 Neutral 3.0 STATE OF INNOVATION CULTURE IN MALAYSIA A Sectoral Comparison OIL & GAS
  • 18. 19 company culture supports innovation. below. Indonesia seems to lead the pack when it comes to clarity on direction to innovate and the emergence of breakthrough when it comes to willingness to take on risk and innovation failure management. CLEAR DIRECTION TO INNOVATE FREQUENT BREAKTHROUGH IDEAS WILLINGNESS TO TAKE RISK FAILURE DOESN’T IMPACT CAREER 2.8 3.0NEUTRAL AGREE 3.2 3.4 3.6 3.8 4.0 HR’S PERSPECTIVES: COUNTRY COMPARISON in the clarity of direction to innovate, and emergence of breakthrough ideas, scores for willingness to take risk and managing failure within the organisation are almost indistinguishable between the 3 countries and between the various industries, as previously overall Asian culture and practices, instead of in an attempt to address it, what needs to be 20%of HR professionals strongly believe their company culture supports innovation Only
  • 19. 20 Managing the Risks As we have touched upon in previous sections, an essential part of managing building a stronger innovation culture in the organisation. great idea and developing it into reality does not ensure successful acceptance in the marketplace. There are many elements that need to be considered before introducing or implementing any innovation. This will also depend on the nature of the innovation and the type of industry the organisation is in. Take for instance, in costly or highly technical industries like the upstream oil & gas machinery processing, end-user acceptance must be almost guaranteed before the product or design. Compare this to the IT industry, where one can build an app, for example, with relatively little resources. It is worth repeating that knowing where to innovate is paramount in aligning the need to have a corresponding risk appetite to ensure that leaders are courageous enough to execute daring or bold solutions. the direction to innovate versus perception according to the Malaysian Innovation Climate Study, where we analysed the results by industry and by company type (multi-national company, government linked industry is clearly ahead compared to the manufacturing or banking industry, while As a point to benchmark, we have also mapped a known innovative Malaysian PLC 3.0 2.6 2.8 3.0 3.2 3.4 3.6 3.8 4.0 3.2 3.4 3.6 3.8 4.0 4.2 DIRECTIONTOINNOVATE WILLINGNESS TO TAKE RISK GLC BANKING MANUFACTURING MNC PLC IT INNOVATIVE COMPANY Neutral Agree Neutral Agree MALAYSIAN INNOVATION CLIMATE STUDY: RISK-TAKING The Intersection of Clarity and Boldness to Innovate. The scores for various types of companies (government-linked companies, multinational companies, and public shown in the graph above. Also shown on the top right corner is a benchmark from an innovative Malaysian public listed company. The graph shows the clarity employees have in terms of knowing the direction to
  • 20. 21 supporting innovation endeavours by helping to shape an environment where employees are soft skill competencies that aim to encourage employees to take on a more dominant role in may need re-evaluation and strategy may need to be revisited. Why manage risk? analytical insights, and governance that help organisations better manage and optimise their innovation portfolio. A strong risk management capability enables organisations to increase their risk appetite, to be able to systematic and deep analysis on possible missteps and mitigation can happen. It is important to remember that breakthrough products and services, which have revolutionised markets, were once until those ideas were funded and allowed implementation. HOW IS YOUR ORGANISATION VIEWING AND MANAGING ITS RISKS?
  • 22. 23 in many areas of an organisation - from processing payroll (it is immensely important that talent. talent engagement. Talent or people issues and strategies are inherently very tricky to navigate - since it involves individuals and emotions, and The 3 broad categories of managing talent that we look at are: These categories are clearly not independent of one another and, more likely than not, there innovative approaches even within a limited purview, to deliver better or faster value to the organisation. In the following pages, we will uncover the degree of implementation of PART 3 INNOVATION IN HR TALENT RECRUITING RETAINING & REWARDING DEVELOPING & ENGAGING
  • 23. 24 50% 21% 16% 11% 2% Gaps between requirements & candidates skills Candidates with poor attitudes Hiring consolidation Company branding Fast and specific needs A discussion on innovating in the war for the right talent would not be complete challenges in recruiting talent today. By far, the most frustrating aspect of agree that this may be due to multiple factors- whether its a need for upfront automation or many others. If we are to fall back on the innovation process, it may be helpful for those involved to identify what are the essential needs of both explore what are more contemporary, or more fun ways to assess the skills or to social and professional platforms available at large, how are recruiters leveraging on increasing competition from fellow competitors, bigger companies, other industries, or other countries turnaround time expected campus, crowd sourcing, headhunters, referrals company Recruiting Challenges for those in Indonesia & Malaysia, is the relatively poor attitudes among younger staff. Leveraging trends that resonate with this age group - such as transparency, or innovative solutions to this problem. acknowledged that effectively positioning their organisation as an employer of choice in this ultra-competitive landscape was a real challenge. Innovative marketing and branding strategies, as those adopted organisations can turn to. Undoubtedly, the alignment with the overall organisational culture will have to be seamless. Another aspect to consider is the satisfaction levels and opinions of current and past employees - how are these potential goodwill ambassadors being engaged to
  • 24. 25 Managing Talent: Innovative HR Approaches The scores that are shown are the average score indicating the level of implementation for that category in the following pages. least, provides organisations some guidance in prioritising their strategy. : Employer branding : Strategic Workforce planning RECRUITING TALENT DEVELOPING TALENT RET & REWARDING TALENT : Performance management : Career development opprtunities : Career progression/ Succession planning : Unique monetary rewards AVERAGE IMPLEMENTATION (O SC 3.6 RESUL Y: & IMPLEMENTA INNOVA
  • 25. 26 As you navigate the next few pages, we would like to share some guidance on how to The left, or vertical axis represents activity areas ranked by importance, whereas the asked to pick the 1st and 2nd most critical areas. The level of importance of each activity depends on the needs of your employees and innovative endeavours. Level of criticality: Activities that are deemed most critical approaches are at the top of the chart. and second most critical areas. implemented in the organisation can be seen by the length of each of the bars. In the survey, implementation level is measured on a scale of 1 to 5, where: 1 innovative approaches are not present/ not important 4 moderately implemented Employer branding Strategic workforce planning Talent Selection Process Transparency in Job Application Overall Job application process Non-traditional talent sourcing Job ad presentation Recruiting Talent HIGH LOW CRITICALITY MINIMALNONE YET STRONGMODERATE IMPLEMENTATION 2 3 4 5 How to interpret the following charts
  • 26. 27 Talent attraction or sourcing via non- traditional methods (e.g. collaboration with external networks beyond headhunters or recruitment firms, use of social media, crowdsourcing) Transparency during the job application process (providing real salary, details on hiring manager, comments from external parties) Talent Selection Process (e.g. challenge-based competitions, internships, interviewing process and worksite visit) Job application process (application forms, credentials verifications, background checks) RECRUITING Strategic workforce planning (talent analytics, e.g. of skills composition, identifying critical talent gaps) Job advertisement presentation (rich & attractive content, presenting information on the company that is believable) Employer branding (company reputation or image, e.g. providing glimpses into your company) s) (areas as asked in survey questions) “Use our company web conferencing to conduct interviews” OTHER EXAMPLES OF INNOVATIVE HR APPROACHES to quit! This is designed to ensure the new employee is fully committed to being part of Zappos after the initial period of employment, since employees who are not as earnest or excited will not be productive contributors, and will cost more to Zappos in the long run. Zappos salary known”. Innovative HR Approaches: Recruiting Talent
  • 27. 28 In reviewing the innovative approaches have attained a commendable ‘minimally planning appear as the top two areas respondents felt were most critical for innovation to be infused. Brand International of more than 3000 that smart companies continued to invest in their employer brand strategy with 39% of companies planning to increase their investment in the coming year. If we are on employer branding alone, only 15% of respondents said that they strongly implemented innovative approaches in recruiting talent. If we are to consider this Innovative HR Approaches: Recruiting Talent scenario, incorporating more innovative approaches may potentially save the these initiatives then be an attraction factor encompass many aspects, some of which are intangible and some that are deeply intertwined with the corporate culture. Unilever have create a dedicated employer branding function inside their organisations. Smart companies invest in employer branding strategy Employer branding Strategic workforce planning Talent Selection Process Transparency in Job Application Overall Job application process Non-traditional talent sourcing Job ad presentation Recruiting Talent HIGH LOW CRITICALITY MINIMALNONE YET STRONGMODERATE IMPLEMENTATION 2 3 4 5
  • 28. 29 HOW HAS YOUR ORGANISATION BUILT ITS BRAND AS AN EMPLOYER OF CHOICE, ESPECIALLY IN APPEALING TO WEB- SAVVY GEN Y? The skills expected of HR practitioners, and the resources available, are evolving. For instance, Nina Gothberg, Director, Human Resources, Asia has been called upon to host a webinar on how to strengthen the employer brand using Google Analytics, and why analytics is important from a HR perspective. Does HR in your organisation feel empowered and equipped to venture into these new avenues, and utilise these resources? The other area of importance picked by identifying the current and future needs of In this study, this area has one of the lowest levels of implementation. As organisations predict the composition and distribution of skills needed, preparing the talent pipeline, and aligning recruitment strategy, how would organisations identify atypical talents who could put organisations ahead of their For instance, an organisation that consciously embarks on leapfrogging in its technology offerings by working with externally- developed technologies and collaborating with outside networks, may need to build technology scouting competencies amongst its new hires. Similarly, if an organisation wants to enter new markets though a brand- driven campaign, it may need brand-building and social media experts to run the new strategy direction. The third-most critical area is the talent show that not many organisations seem to have strongly incorporated innovative approaches on this front. Is the candidate evaluation process still the standard one- on-one interview or panel interview in your adopted different approaches. Technology landscape in this area. Some organisations have also utilised mini-challenges to test and discover the top talent beyond a one-hour interview. Reality shows like “The Apprentice” some companies, albeit on a smaller and less resource-intensive scale. The advent of technology has also introduced services. This employs data collection and data mining, to identify the right talent for the organisation, moving beyond the right-brained relationship building and people oriented skills. As more and more data on individuals are made available, how are organisations leveraging on it for Another interesting aspect from the study easier and more transparent. This was especially true for Singapore and Indonesia. and recruiters alike. (Transparency in the second most critical area by respondents in
  • 29. 30 Innovative HR Approaches: Performance management (e.g. assessment of employees, encouraging risks, KPIs or competencies for innovation) Real access for the average employee to top management Career development opportunities DEVELOPING & ENGAGING TALENT (areas as asked in survey questions) Job matching (assessing and gauging employees skills & interest, and providing opportunities) New employee on-boarding program “Open competition among employees based on talent and performance” - HRIS respondent from Indonesia “Let them choose their own job title and area of specialisation (within reason, and matching ability)” - HRIS respondent from Singapore
  • 30. 31 Performance management Development opportunities Job matching On-boarding program Access to top management Developing & Engaging Talent 2 3 4 5 HIGH LOW CRITICALITY MINIMALNONE YET STRONGMODERATE IMPLEMENTATION status quo, and may thus be more challenging to manage.Yet, these maverick thinkers are necessary for the organisation. In what ways can HR innovate to satisfy the innovators and those who manage them? areas in developing & engaging talent. Most critical is having a good performance management, followed by providing career down the outcomes, 60% of the respondents from Indonesia say they implement innovation in performance management at least moderately well, while Singapore appears to be strong in implementing innovative approaches for the on-boarding program. From the cohort of organisations that strongly implemented innovation in employee branding, 46% of these also strongly implemented innovative approaches in performance management In a 2009 survey by Nesta, the innovation foundation in UK, it was found that 23 per cent of the as one of the top three most effective organisational policies to facilitate innovative working. As an example, “at Breakthrough, a UK-based breast cancer charity, innovation is amongst the employee behaviours assessed both at selection and as part of quarterly and annual
  • 31. 32 Family- friendly workforce policies (e.g. childcare support facility, generous paternity leave) Career progression plan/succession planning Collaborative physical work settings Unique, incentive- based monetary rewards (beyond salary) Communication/ collaboration using interactive technology Blended workforce management (multi-generational workforce/ innovative organisation structure) RETAINING & REWARDING TALENT (areas as asked in survey questions) Innovative HR Approaches: environment with nice “play ground” with TV/Video/Game, etc. for breaks...still have so many plans to be implemented” - HRIS respondent from Indonesia implementation” - HRIS respondent from Malaysia “Expanding range of health and the same budget” - HRIS respondent from Singapore “Innovation and social media i.e. Yammer as our enterprise social communication channel” - HRIS respondent from Indonesia
  • 32. 33 waking hours to their employer. As such, they need to feel they are developing and have a future with the organisation. They needs. They want to be rewarded. Among all these areas, and across the 3 the survey stated that helping to create succession plans and career progression opportunities for talent is the most critical area in which innovative approaches are needed. Providing unique, incentive-based communication/ collaboration technology are next priority areas. Areas most lacking in execution are arrangements and family-friendly workforce policies. These outcomes are interesting as, from a cultural perspective, Asians are generally known to be more family or community oriented; however this does Social Media Use of interaction is mistrusted or considered only for play by the organisation recruiting them. Additionally, this medium can be a powerful tool for organisation and employee “a quarter of workers would not not seem to have extended widely into the workplace. These aspects pertaining to the work environment appear more developed in Let us now look at considerations in employee rewards. Most large employers have talent from about 4 different generations. Are these managed with a elements customised to appeal to the various in 2008 found that “71% do not consider generational differences when making was more than half a decade ago, suggests to generational needs is only one point of matches the strategy of an organisation, e.g. being more innovative, is also another aspect that needs to be considered in the rewards design. 2 3 4 5 Career progression/ Sucession plan Monetary rewards Communication/ collaboration technology Family-friendly workforce Flexible work arrangements Blended workforce management Non-monetary rewards Collaborative physical workspace settings Retaining & Rewarding Talent HIGH LOW CRITICALITY MINIMALNONE YET STRONGMODERATE IMPLEMENTATION
  • 34. 35 PART 4 HR AS A STRATEGIC PARTNER FOR INNOVATION ® driver was chosen 3 times more often compared to the next highest top driver. It was also the most common second rated priority. 60% of the respondents chose leadership support and ® respective organisations would seem paramount to drive innovation. Non-monetary rewards appears as the least powerful motivator, consistently on both the ECIS and HRIS. TOPDRIVERSFOR HRPROFESSIONALSTOINNOVATE Leadership support & trust Great innovation teams & collaborative environments Monetary rewards Innovation as part of my KPI Resources and tools Time and flexibility to innovate Exciting innovation-related projects Clear process for innovation Innovation-related training Non-monetary rewards Top driver Second driver 42% 18% 14% 8% 9% 14% 6% 9% 6% 14% 5% 10% 5% 5% 5% 6% 4% 11% 3% 6%
  • 35. 36 empowerment by leaders and a lack of innovative talent. The top primary barrier is similar to knows what are the needs of the employees in the organisations, what is preventing innovation TOPCHALLENGESFACEDBY HRPROFESSIONALS Lack of trust & empowerment from leaders Lack of innovative talents No clear direction to innovate Poor execution/project management Lack of funding to develop and commercialize ideas Lack of great ideas Fear of failure Lack of readiness by customers to accept new ideas/solutions Risk averse leaders/managers Inadequate rewards/incentives to innovate Lack of understanding of customers' (internal/external) needs Top challenge Second challenge 15% 11% 14% 15% 13% 11% 11% 7% 10% 11% 8% 7% 7% 4% 7% 10% 6% 10% 6% 8% 3% 7%
  • 36. 37 What HR should know about Innovation innovation, business model innovation, etc. By right, everyone in the organisation many people have the misconception that innovation is synonymous only with and cause underutilisation of the potential value that could be derived if everyone is brought on board to innovate. innovation discussions of the organisation, so that they can help in deliberate efforts to build the necessary innovation culture, bring in the appropriate talent, and institutionalise the appropriate processes. generate a portfolio of ideas, prototype and evaluate them, then select the best solution, and ultimately bring the innovation to the end users to create value. culture must be in place. Does HR matter? innovation, how to make it happen, along with appreciation and deeper understanding of the realities associated with it, which includes the following: The especially tough part in innovation management is building and sustaining a culture of innovation. Innovation is fairly new in Asia and many organisations and people are still very risk averse, and unsuccessful ventures are not quite tolerated. Therefore, funding and be improved if an organisation is serious about innovating.
  • 37. 38 process in the organisation or within their domains: Leadership strategy, areas to innovate, and expectation, across the organisation. Innovative Talent Recruitment - Be part of the discussions to identify the required talent for innovation, and help source for them. Innovation Training - Institutionalise a baseline understanding of the innovation common language within the organisation on innovation. Provide training on the right mindset to innovate. Capacity Building - Provide opportunities for everyone to innovate. Consider including some level of innovation in their regular work activity. The above is by no means an exhaustive list, but merely to illustrate how imperative and has numerous opportunities to innovate and make innovation happen in the organisation. Performance Management - Infuse KPIs that will drive innovation capability into performance management. Ideas Management - Provide a channel for ideas to surface from all levels of employees contributions and ensure promising ideas are implemented. Keep the evaluation process fair and transparent. Risk management - Provide policies and development opportunities to ensure employees can take on appropriate risk and are not paralysed due to fear of failures. Collaboration collaborative culture (this may include open, - Facilitate opportunities that they can contribute in or are passionate about. SHOW TO THE ORGANISATION THAT HR INDEED MATTERS IN INNOVATION, AND HR IS INNOVATING.
  • 39. 40 HR InnovAsian® Study Respondents ® Study, conducted in April through May 2014. Most of the respondents are either recruiters and/or those working in POSITION LEVEL Non - Executive Fresh / Entry Level Junior Executive Senior Executive Manager / Project Leader Senior / Middle Manager Top Management 3% 13% 24% 32% 15% 11% 2% Others 2% 77.5% 11.5% 9% COUNTRY APPENDIX
  • 41. 42 How we can help you ACC is an Asian-oriented boutique innovation consulting company specialising in guiding large radical innovation, product, service or business model innovation, we help leaders formulate roadmap to make innovation happen in the organisation. data-driven insights and pinpoint areas of innovation blockages. Based on our proprietary Innovation Framework, we create the right mindset, capabilities and culture to innovate, and build critical processes that support an environment of sustainable innovation. INNOVATION STRATEGY Facilitate discussions to create clear innovation strategies for your organisation on the leading edge in disruption and collaboration for growth. INNOVATION CAPABILITY fundamental knowledge and skills to innovate. INNOVASIAN® SPACE Source and manage real innovation opportunities & ideas that add value within your organisation and in the market via our engaging web and mobile platform. OPEN INNOVATION PROGRAMS actively co-create solutions and make meaningful connections with new vendors or solution providers. INNOVATION TOURS Accelerate buy-in and adoption of innovative culture facets by having your team tour campuses and meet with leaders in innovative organisations. INNOVATION PERFORMANCE ASSESSMENTS Identify data-driven actions to improve innovation performance and understand your culture & capability. INNOVATION FRAMEWORK DESIGN impactful company-level structure and policies based on our proprietary framework, designed to stimulate an innovation ecosystem. INNOVATION INITIATIVES Spur an innovation culture in your organisation and rally your talent pool via experiential & fun innovation events. INNOVATION SCORECARD innovation competency models and scorecard to strategies
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