Hr professionals guide to business transformation


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Change management and specifically large-scale organisational change or business transformation initiatives are dominating the activities of many organisations. In the most recent Trends in Business Transformation survey 84% of European managers viewed transformation as the norm and were involved in a new business transformation programme on average every 6 months.

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Hr professionals guide to business transformation

  1. 1. HR Professionals Guide to Business TransformationShare this eBook:
  2. 2. OverviewChange management and specifically large-scale organisational change or businesstransformation initiatives are dominatingthe activities of many organisations. In themost recent Trends in Business Transformation1survey 84% of European managers viewedtransformation as the norm and were involvedin a new business transformation programmeon average every 6 months.   Many of these changes are transformationalAll UK Local authorities and NHS trusts have purely because of the inter-dependence of sosome form of transformation programme many of our business functions. For example,underway, driven by budget cuts and the need to make changes in the financethe need to maintain service levels in an function drives new processes and newenvironment of smaller resources. In the private organisation structures in procurement, salessector, 25% of firms surveyed were re-organising and business reduce the pressure on resources and 25%were improving the flow of information across It is this interconnectivity that has led to thethe organisation to move away from ‘silo’ popularity of the term business transformationbased thinking.2 as we can no longer implement change within a single business unit or functional area. EachA quick review of a single recruitment site change that is conceived must be reviewedproduced a list of over 500 transformational for its impact on part of the organisation,change jobs in the private sector across all recognising that sometimes this impact is anindustry sectors. There is high demand for unintended consequence and may havetransformation consultants to lead outsourcing a negative effect in one area that must beinitiatives, the implementation of SAP and other balanced by the benefits gained in another. ERP systems, redesigning marketing functions  to focus on digital media and the desire to re- The structure and skills needed for businessengineer processes in procurement, finance, transformation are derived from effectivelogistics and order management. Organisational Development. OD builds the strategic capability that generates sustainable change. This paper examines the context, skills and challenges associated with building a capacity for business transformation.  1. Cap Gemini Trends in Business Transformation 2009 2. Maven Training survey 20112 Share this eBook:
  3. 3. Transformational change is driven by the The portfolio of initiatives that an organisationstrategic objectives of the organisation which is managing must be balanced betweenare in turn impacted by developments in the the desire to change and the need to runmarket place that the organisation serves and the existing business. It is the current businessits internal capabilities. structure that is often generating the revenue that will be used to fund the changes. HR areHR professionals have a great deal to naturally active in supporting the business ascontribute in explaining the current capabilities usual environment but demand for this supportand identifying what the organisation can will increase during transformation as we askrealistically expect to develop in the short to staff to cope with their existing workload whilstmedium term. learning new ways of working relevant to the transformation. Market Forces Internal Capabilities Strategic Objectives Transformational Operational Change Requirements Portfolio Change Programme Programme Programme Project Activities Change Change Change Project Project Project Activities Activities Activities Share this eBook: 3
  4. 4. HR need to be involved in the very early stagesof transformational change, when options arebeing explored and decisions are being takenabout the scope of the changes and the futurevision for the organisation. HR can representthe culture and values of the organisationwhich are easily overlooked when seniorexecutives are driving transformation from theperspective of efficiency improvements andcost savings. However, too often HR are involved in atransformation only at the point when thescope, objectives and overall vision ofthe transformed organisation have beencompleted by the senior managementteam. Effectively the change is passed tothe HR function for implementation throughthe re-structuring of the roles, re-drafting ofresponsibilities and communication of thereasons for and impact of the change.In a recent survey, Managing Change 2010:the role of HR,3 64% of HR managers stated thatthey wanted to become involved in changeearlier in the cycle so that they can shapethe transformation to include their knowledgeof the existing organisational capability forchange.3. Author: CharlotteWoolff, XpertHR4 Share this eBook:
  5. 5. Skills and ChallengesThe continuing increase in the number of This is supported by the results in the Capchange initiatives being undertaken is mirrored Gemini survey which identifies three skills thatby the demand for change management skills. managers feel their organisations need toThe Interim Management Association report improve:growth in the demand for these skills in their • Ability to ensure that staff understand andlatest survey: accept the transformation• Change or transition management required • Communicating the objectives of the in 18% of roles (in 2010 this was 14%) transformation• Business improvement experience required • Avoiding slippage in the implementation of in 21% of roles (in 2010 this was 17%) the transformationAnecdotal evidence suggests that whilst These skills are in high demand becauseorganisations have the capacity to plan a achieving successful change is a significantbusiness transformation too few have the leadership challenge. Numerous surveysability to motivate and inspire their employees indicate that failure is as likely as success, withto participate and turn the plans into reality. structural and people driven reasons for this failure: Business Transformation challenges   We don’t have enough resources to change our organisation whilst at the We change our minds about what The new ways of working have not taken account of all same time keeping the current business we want halfway of our exceptional which funds the transformation) going through our change circumstance and so   fail to be adoptedThe planning of the The transformation istransformation is being derailed by the complexityundertaken at too low a level of all the moving pieces The programme absorbsto get the necessary support - by making one change so much resource our we had a series of business suffers and we then unintended consequences abandon the transformation which negatively to take remedial action in There is insufficient cooperation our main business and collaboration to implement impacted what we were trying to achieve  the changes cross functionally - our silo based mentality means that each function alters the The team responsible for the transformation is so far requirement to suit its own removed from those expected to change that they have needs insufficient influence to make change happen   Share this eBook: 5
  6. 6. Defining the skills for business transformationThe contribution that HR professionals can In Organisational Development there aremake to successful business transformation further requirements:is recognised by the Chartered Institute of • Know the critical role that managers havePersonnel and Development ( to play in the success of change initiativesin their HR competency framework, called the and is able to engage managers in theHR Profession Map. change planThe map is divided into ten professions • Know the key stages in changeincluding Organisational Design and managementOrganisational Development, both of • Know how to implement OD interventionswhich explicitly state the need for change for complex organisation-widemanagement skills. transformation programmesFor example, in Organisational Design there is Learning about the theory and practicea requirement for HR professionals to: of change management and business• know how to utilise champions, shift fence- transformation supports your career goals sitters and remove blockers when designing by enabling you to develop the behaviours and implementing structural change necessary for effective HR management.6 Share this eBook:
  7. 7. The CIPD HR Profession Map identifies eightbehaviours, four of which I think are particularlyrelevant to change management: Collaborative Works effectively and inclusively with Personally credible colleagues, clients, stakeholders customers, teams and individuals both within and Builds a track record of reliable and valued outside the organisation. delivery using relevant technical expertise and experience and does so with integrity This behaviour makes explicit reference to and in an objective manner. the need to work effectively with all those whose active participation and support Successful change management and is needed to implement and embed business transformation draw on a wide organisational change. range of technical skills underpinned by the need to really understand the organisational context of the change. It is important Skilled influencer to understand the theories and models associated with change management in Demonstrates the ability to influence order to make an informed choice about across a complex environment, to gain the approach that the organisation needs the necessary commitment, consensus and to be able to hold your own in the and support from a wide range of diverse company of trained change professionals. stakeholders in pursuit of organisation benefit. Courage to challenge Our organisations are becomingly increasingly complex. Formal understanding Shows courage and confidence to speak of how to identify, analyse the needs and up, challenge others even when confronted plan for the needs of a diverse range of with resistance or unfamiliar circumstances stakeholders is a critical skill but one that can be learnt. The confidence to challenge is derived from the confidence you have in your skills and knowledge. Ensuring that you are educated in the theories and models of change management is not a ‘nice to have’ but a business essential for those who wish to fully participate in the management and direction-setting of their organisation. Share this eBook: 7
  8. 8. Qualifications and assessments In addition to the contribution of the CIPD in this area, there are two other bodies who are positioning themselves as the professional body for change management practitioners: Change Management Institute (CMI): an independent not-for-profit organisation set up to promote and develop the practice of change management internationally Association of Change Management Professionals (ACMP): provides networking and collaboration for change management professionals who lead the people-side of change. ACMP is focused on developing industry standards and a professional certification program to ensure a globally recognized standard for the change management discipline.8 Share this eBook:
  9. 9. There is growing demand for qualificationsin change management, recognising thebusiness value that this skill set offers. TheAPM Group, a UK based accreditation andcertification organisation offers the ChangeManagement Practitioner qualificationwhich is examined at Foundation andPractitioner level and includes modulescovering:• Definition of change and its impact on individuals, teams and the organisation as a whole• Assessing the impact of change on individual and team productivity• Analysis of how organisations with different cultures and values are affected by change• Consideration of different models of organisational change and their applicability to different organisational structures and culturesThe Change Management Instituteoffers an assessment against a changemanagement competency model,successful completion of which resultsin the award of Accredited ChangeManager (ACM) status. Share this eBook: 9
  10. 10. Developing your skills in change management and business transformation Managing Business Transformation Creating your Business Change Lifecycle Change Leaders Change Managers Change Agents Understanding Understanding Defining the and planning the and planning the change change transition Sponsoring the Implementing and Moving from implementation of embedding the transition to change change business as usual Making change Making change Planning change happen - happen - Managers Individuals Change Management Foundation and Practitioner Introduction to Change Management10 Share this eBook:
  11. 11. HR professionals undertake a number of 2. Developing the business change lifecycleroles in managing change. To support Many organisations struggle to implementorganisation wide change they facilitate change successfully because they do notthe communication and engagement with have a pre-agreed approach to managingthe change, and guide those operational change that is understood and can bemanagers who are making changes to applied by all those involved in a consistentprocesses, systems and organisation structures. way.Where change is directly impacting the HRfunction of an organisation HR managers will An organisation needs a business changebe expected to adopt the role of leader, lifecycle that sets out how a change ismanager or change agent. planned, implemented and embedded, taking into account the culture of theThe knowledge and skills required to undertake organisation and scale of the changesthese roles include: being undertaken. It should explain in detail each step of the change management1. Understanding the approach to business process from initial idea to successful transformation embedding of the change as the new business as usual. To effectively support change it is imperative that those helping others to engage are themselves very clear about 3. Building confidence to successfully how the transformation will be delivered. implement and embed change Understanding the process of business transformation enables you to remain Business transformation requires the focused on the necessary steps and help participation of everyone in the those involved to navigate their way organisation as it is only at this individual through the uncertainty and chaos that level that specific changes to working is often associated with transformational practices will take place. We need to build change. an environment of trust where individuals believe in the fairness of how changes that • It breaks down the many moving parts of affect them are reached and empower the change into clearly defined pieces individuals to make these changes. of work, reducing the paralysis that arises when staff and managers feel the work is This empowerment comes from so complex that they don’t know where understanding the psychological impact of to start change and how influencing, motivating • It produces a roadmap of changes and and persuading are essential skills in making new capabilities that are expected as a change happen. Identify activities that result of all the different projects which celebrate completion of the change and enables people to identify how they will reward new behaviours and attitudes that be affected and how they can become align with the new business model. involved Share this eBook: 11
  12. 12. Conclusion Understanding what is involved in business transformation and developing a detailed knowledge of the theories and models of change management and how to practically apply them are an essential HR skill set. The importance of this skill set is recognised by the Chartered Institute of Personnel as fundamental to your progression in your HR career. Development of these skills offers HR professionals the chance to significantly contribute to the strategic direction of the organisation and the form that this journey will take. Position yourself as a strategic thinker who can also contribute from the perspective of human resources rather than an expert in human resources who is only called upon when there is a perceived HR impact to a strategic decision.12 Share this eBook:
  13. 13. Maven Company OverviewMaven has a strong foundation in change, programme and project management expertise.We have synthesised this wealth of skills and knowledge in these three areas to provide our clientswith a systematic approach to business transformation. Effective business transformation Change Management Capability Change Management Project Programme Management ManagementWe will work with you to:• define what your organisation needs to achieve and the structures and roles required to do so• ensure that the change leaders can provide inspiration, motivation and drive for the change• enable managers to implement the change• ensure that those impacted by the change to their working environment know why it is happening and support itMaven can provide you with the skills and techniques to avoid becoming yet another case ofbusiness transformation gone wrong. We are not management consultants – we will not do it foryou – but we will enable you to do it. Share this eBook: 13
  14. 14. Biography:Melanie FranklinMelanie has an impressive track record in the successful realisation of business changeprogrammes across private and public sector organisations. She is the founder and ChiefExecutive of Maven Training and is highly experienced in the delivery of board level guidanceand mentoring.She takes a very practical approach to change, programme and project management withpriority on the realisation of planned benefits, working closely with her client base to ensure thatthe desire to implement best practice does not result in bureaucracy for its own sake. Eachsolution that Melanie proposes to clients is based on sound practical advice and experience withguidance on how it is likely to be received by staff, how resistance to change can be overcomeand how stakeholders can be engaged from the outset.Melanie is a talented communicator and has a reputation for delivering complex information withhumour and passion. She draws on her wealth of practical experience to illustrate concepts andto engage her audience in lively debates on advantages and disadvantages of each approachthat she outlines.Melanie is the author of a number of books and whitepapers about project and changemanagement including the recently launched Managing Business Transformation: A PracticalGuide.14 Share this eBook:
  15. 15. For further information about Maven Training please contact: Melanie Franklin Telephone: 020 7403 7100e-mail: Follow us on: Twitter Facebook LinkedIn Slideshare YouTube Scribd Share this eBook: 15