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HR and OD Strategies for Business Sustainability


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HR and OD Strategies for Business Sustainability

  1. 1. Company LOGO HR Driven Business Sustainability Development
  2. 2. Objectives A. Provides Direction and Strategy Framework B. Equips Employees C. Enhances Employee Engagement D. Drive productivity and innovation 2
  3. 3. Contents A. Long Term Business Sustainability B. Organization Development C. Process Improvement D. Talent Development 3
  4. 4. Business Results Organization Development Process Improvement Talent Development 4
  5. 5. 5 A. Business Sustainability
  6. 6. A. Long Term Business Sustainability  Strategy  Execution  Culture  Structure  Talent  Leadership  Innovation  Mergers and acquisitions Total Return to Shareholders 943% (Winners) vs 62% (losers) Sales 413% (Winners) vs 83% (losers) Operating Income 326% (Winners) vs 22% (losers) Return on Invested Capital (%) +5.45% (Winners) vs -8.52% (losers)
  7. 7. Diagnosis Strengths Next Area Improvement Solutions Results Strategies Execution Innovation Organization Culture Leadership Talent
  8. 8. 8 High Performance Model Process Development Organisation Development Talent Development Productivity Profit Talent Culture Strategy Management Corporate Culture Effective Org Structure Talent and Leadership Productivity Innovation
  9. 9. 9 Developmental Phases Strategy Management Lean Productivity Improvement 1st Year 2nd year 3rd year 4th Year 5th Year Account Management Leadership Development Innovation HiPo Development Coaching Career Development TWI Engagement Team Bonding Org Dev Process Dev TalentDev
  13. 13. Scope System Training Consulting Outcomes Strategies Corporate Strategies – formulation, communicate and review Strategic Training and Planning Facilitate Strategy Planning and review Accomplishes Corporate and Department Strategies and Goals
  14. 14. Scope System Training Consulting Outcomes Culture Coaching Culture Engagement Culture – WIFI Model Team Culture Coaching Program Team Bonding Coaching follow-up Engagement Survey and Analysis Train-the-trainer Improve employee performance 10- 20% Understand and improve engagement . 50% lower staff turnover; 38% productivity:56% Customer loyalty; 27% Profitability Bonding team to reduce conflict and increase loyalty to organization
  15. 15. Scope System Training Consulting Outcomes Execution Lean Productivity Lean Manufacturing Training ( 3 options) Lean Assessment Consulting or leading projects Continuous Improvement Culture Lean Quarterly Review Productivity Improvement 30% Reduced Inventory and cycle time by 50% Reduced labour- hours by over 25%
  16. 16. Scope System Training Consulting Outcomes Execution Account Management Operator Training and Engagement (Training Within Industry) Business Development Workshop (1-2D) TWI (6 Days) – Job Instruction Job Method Job Relations Training Manual Job Analysis Improve of Sales from 10% to 25% Reduced training time by 25% or more Reduced scrap/rework by at least 25% Reduced grievances by more than 25%
  17. 17. Diagnosis System Training Consulting Outcomes Innovation Innovation Culture Lean Innovation Training Projects
  18. 18. Diagnosis System Training Consulting Outcomes Leadership Leadership Development Senior Leadership Development Leadership Dev Phase 1 Leadership Dev Phase 2 Senior Leadership Phase 1 Executive Coaching Higher Productivity and engagement Talent HiPO Development Career Development Junior Manager Phase 2, 3 and 4 Various Soft Skills Executive Coaching Higher Productivity and engagement
  19. 19. Tools: Management Competencies 19
  20. 20. Team of Experts • Turn Around Expert: Dr Yulin (Asia Pacific Turn Around Solution provider from Dell) • Profitable and Productivity Expert: Ramesh Victor (Global Lean Enterprise Solution Providers from Seagate) • People and Leadership Expert: Laurence Yap (Asia Pacific Organization and People Development Experts from Ebay) 20
  21. 21. 21 Development Components C. Organization Development A. Leadership Development 3. Clear Strategy Alignment and review 4. Effective Operational Execution through systemic process 5. Develop Innovation and continuous improvement culture 6. Build and maintain a fast and flexible organization structure 7. Develop Performance Driven Culture 2. Build leadership pipelines: HiPo, Succession Planning, Sr leadership Development 1. Develop Employees and Management Competencies A.
  22. 22. • A Fortune Magazine study suggested that 70% of 10 CEOs who fail do so not because of bad strategy, but because of bad execution. (Source: Why CEOs Fail - R Charan & G Colvin, Fortune Magazine, 21 Jun 1999.) • In another study of 200 companies in the Times 1000, 80% of directors said they had the right strategies but only 14% thought they were implementing them well 22
  23. 23. 23 Driven by HR People and Leadership Development - Trg Management Skills Dev Strategy Management - HR/Trg: Facilitation – Com - Review Profit and Productivity Improvement: Trg: Action learning 1st Year 2nd year 3rd year 4th Year 5th Year Customer Service Trg: Action learning Succession Planning – HR: Review – Dev - Evaluate Innovation Trg: Action Learning HiPo Development – HR: selection, review, dev, eva Performance Management: HR: Review- Career Dev Organization Structure: HR: Review Employee Engagement – HR: Survey-Anaysis-Action
  24. 24. 24 Benefits People and Leadership Development - Engagement & Contribution Strategy Management - Clear Direction, Alignment and Synergy Profit and Productivity Improvement: Profit , Effective & Efficiency 1st Year 2nd year 3rd year 4th Year 5th Year Customer Service : Business Growth & brand reputation Succession Planning – Leadersahip Continuity Innovation: Profit, organization renewal & market share HiPo Development – Retention Performance Management: Performance Improvement & Retention Organization Structure: Effective Execution Employee Engagement - Productivity , Profitable & Turnover
  25. 25. B. People, Talent and Leadership
  26. 26. Process • Link Management competencies to corporate behaviors or values • Select Management Competencies in four management levels • Within each management competencies, refine behaviors needed • Use newly development management competencies for hiring, development and appraisal 26
  27. 27. Tools: Management Competencies 27
  28. 28. Behaviors and Management Individual Management Focus on self- awareness and learning (7) Focus on Self Awareness and Learning recognizes how our behaviors affect those around us. We must accurately assess our own strengths and weaknesses and take action to improve. •Listen and accept feedback for improvement as a message that others care about your safety. •Accept feedback and demonstrate commitment to modify behaviors based upon it. •Keep emotions from interfering with performance and objectivity. •Push yourself outside of your individual comfort zones in order to learn and grow. •Learn from personal successes and failures, as well as from those of others. - Communicate effectively (5) providing timely and concise information to others, and using clear and thoughtful oral and written communications to influence, negotiate, and collaborate effectively. Leaders and associates need to appreciate that effective communication is about listening and being listened to, but is not always about being in agreement. •Simplify complex issues whenever possible. •Write and speak clearly and succinctly. •Anticipate the informational needs of diverse audiences. •Use the most effective means or technology to provide information to people around the globe Be an integrative thinker (3) requires decisiveness and taking action by applying intuition, experience, and judgment to the data available. We should demonstrate the ability to assimilate various and conflicting information or opinions into a well-considered decision. We should understand the implications of individual actions or recommendations on other markets, processes, and functions •Each day make safety an integral part of your routine. Never perform a task unless it can be done safely. •Connect experiences, observations, and seemingly unrelated bits of information to see patterns and draw conclusions not readily apparent to others. •Use information, judgment, and logic to understand a problem or situation and assess it carefully before acting. •Be able to identify and address the critical issues in a complex situation. •Give appropriate weight and balance to different pieces of information. •Identify the part of the business value chain that is affected by a particular decision or action, diagnose the situation, and prioritize what needs to be done and who needs to be involved. •Think strategically and critically on multiple levels while gathering, analyzing, and synthesizing globally relevant data. •Balance seemingly conflicting goals and do well at executing both (i.e., innovation and dependability, clear goals and flexible strategies, quality and speed). 28
  29. 29. 1. Knowing and Managing Yourself Emotional Intelligence/Self-Awareness Self-Confidence Self-Development Building Trust and Personal Accountability Resilience and Stress Tolerance Action Orientation Time Management Flexibility and Agility Critical and Analytical Thinking Creative Thinking 29
  30. 30. 2. Knowing and Managing Others  Oral Communication  Written Communication  Valuing Diversity  Building Teams  Networking  Building Relationships  Partnering  Emotional Intelligence/Interpersonal Savvy 30
  31. 31.  Influencing  Managing Conflict  Managing People for Performance  Clarifying Roles and Accountabilities  Delegating  Empowering Others  Motivating Others  Developing Top Talent 31 3. Knowing and Managing Others
  32. 32. 32 Developmental Phases People and Leadership Development Strategy Management Profit and Productivity Improvement 1st Year 2nd year 3rd year 4th Year 5th Year Customer Service Succession Planning Innovation HiPo Development Performance Management Organization Structure Employee Engagement
  33. 33. Implemenatation Q1 Q2 Q3 Q4 Q1 People and management competencie s Select competencies Leadership trg Employee trg Recruitment criteria Performance Appraisal Leadership trg Employee trg Leadership trg Employee tr Hi Po Selection (2nd year) Potencies definition and process Talent selection and review Training and coaching Project and coaching Evaluation and Next Action Succession Planning (2nd Year) Process Survey, Pipeline strength Evaluation Executive Coaching 70/20/10 Training Employee Engagement Measurement and survey Diagnosis and discussion Assignment Assignment Review
  34. 34. 34 C. Strategy Management
  35. 35. 35 D. Productivity, Performance and Innovation Growth
  36. 36. 36 E. Customer Service
  37. 37. 37 F. Org Structure and Performance Management
  38. 38. 38 Developmental Phases People and Leadership Development Strategy Management Profit and Productivity Improvement 1st Year 2nd year 3rd year 4th Year 5th Year Customer Service Succession Planning Innovation HiPo Development Performance Management Organization Structure Employee Engagement
  39. 39. Contents A. Big Pictures for Sustainability Objectives, Focuses, Development Phases and Diagnosis B. People, Talent Leadership C. Strategy Management D. Productivity, Performance and Innovation Growth E. Customer Service F. Org Structure and Performance Management 39
  40. 40. Company LOGO B1. Focus and Timelines 40
  41. 41. 41 3 Components People Development Corporate Culture TEXT Employee Engagement *Foundation (Values, Leadership and People Behaviors) People and Management Dev
  42. 42. Focus Focuses on A.Management Competencies: Managing Self, Managing People, Managing Business (360 degree or level 3 survey) B. Tlnt Mngmnt Development C. Engagement Culture (Attrition and engagement rates) D. Develop Corporate Culture and Foundation (Values and Behaviors) 42
  43. 43. Foundation Linking Values, Leadership and Employee Behaviors to training, hiring and performance appraisal •Values (Safety First, Integrity, Customer Service etc) • Leadership Behaviors (Build team, Empower employees, Focus on Issues) •Employee Behaviors (Team Player, Work Extra Miles, Contribute positively) 43
  44. 44. 44 Leadership Practices Model the Way Encouraging the Heart Leadership Practices Enable Others to Act Challenge the Process Develop a Shared Vision
  45. 45. Company LOGO B1. Focus and Timelines 45
  46. 46. 46 Time Line: Year One Diagnosis Training and Dev for People and Mgm( Cont) OD Interventions: Culture/Engagement (cont’ 4th Q 1st Q 2nd Q 3rd Q 4th Q Coaching (Cont’) Engagement, Corporate Culture, Competencies, Foundation*, Strategies Senior Mgm Dev
  47. 47. 47 Timeline: Year Two to Five Training and Dev for People and Mgm( Cont) OD Interventions: Culture/Engagement (cont’) 1st Year 2nd Year 3rd Year 4th Year 5th Year Coaching (Cont’) Senior Mgm Dev (Strategy, bencmarking etc) Team Dev (Bonding, Conflict, Colaboration)
  48. 48. 48 3 Components People Development Corporate Culture TEXT Employee Engagement *Foundation (Values, Leadership and People Behaviors) People and Management Dev
  49. 49. Company LOGO B2. Methods, Measurement and Tools 49
  50. 50. 50 B2: Measurements People Development Corporate Culture 30% improvement In desirable cultural development TEXT Employee Engagement 30% improvement in Engagement Survey annually Foundation (Values, Leadership and People Behaviors) People and Management Dev 40% gain in Learning (Level 2) and Competencies (Level 3)
  51. 51. Results Results •Measurement of Expected Results- 30% increase (determine by management team) •Attrition Rates – reduced 30% if they walk the talk •Engagement Rates – Increase 30% (Gallup Q12 or WIFI Model) 51
  52. 52. 52 B3: Tools and Methodologies People Development Corporate Culture Competing Values Model McKinsey 7S Model Human Performance Model Survey, Training, OD Intervention, Facilitation TEXT Employee Engagement Gallup Q12 Model, Saratoga Institute Model McKinsey 7S Model Survey, Training, OD Intervention, Facilitation, Engagement and Attrition Rates Foundation (Values, Leadership and People Behaviors) People and Management Dev AMA Management Model Training, Executive Coaching, 360 survey
  53. 53. Methods Methods •Training on people and management •Executive Coaching •360 degree on leadership behaviors •Engagement and Attrition Survey 53
  54. 54. Tools: Human Performance Enhancement
  55. 55. Tools: Management Competencies 55
  57. 57. 7S FRAMEWORK THE SYSTEM COMPONENTS SYSTEM 6S TWI KAIZEN WORLD CLASS SUPERVISOR STYLE • Learn-Do- Maintain and improve • Learn-Do-Maintain and improve • Focused Cyclical improvement on Constraint and Value Stream • Proactive management of shop-floor cultures and performance SKILLS - 5S - Safety Near Miss - Self audit and workplace improvement skills - 6S activity facilitation skills - Effective training method - Shop floor problem solving - Job method standardization skills - Employee engagement skills - Employee relations skills - Value Stream mapping - Waste Elimination - Lean Tools: Quick Changeover, Pokayoke, Equipment Improvement (TPM), Kanbans and Inventory Management - Constraint Management - Daily Proactive planning skill - Time management - Performance monitoring - Employee Engagement skills - Audit and improvement skills
  58. 58. 7S FRAMEWORK THE SYSTEM COMPONENTS SYSTEM 6S TWI KAIZEN WORLD CLASS SUPERVISOR GOALS • 100% Safety compliance • Uncluttered and clean Work space • Employee Engagement • 100% Employee Engagement • Autonomous employee management skills • Increasing Employee commitment & Passion • Constraint Management • Waste Elimination • Productivity & Quality improvement • Continuous Improvement Culture • Consistent Shop-floor performance to standards and targets • Employee Engagement • Safe Work Environment STRUCTURE • Shop-Floor Daily 10 to 15 mins 6S activity – Red tagging • Weekly 6S improvement activities • Daily audits • Monthly involvement by management in 6S activity and cleaning • Supervisor/Enginee r trains using TWI Learn-Do-Coaching method • Daily/Weekly involvement by operators in Job Method improvement • Daily supervisor- employee interaction • 6 months once value stream map created • Waste (Non Value Adds) elimination • Identifying and managing Constraints • Equipment improvement • Inventory management • Supervisor uses the daily supervisor checklist to proactively manage shop floor
  59. 59. 7S FRAMEWORK THE SYSTEM COMPONENTS SYSTEM 6S TWI KAIZEN WORLD CLASS SUPERVISOR STAFF Supervisor, Leader, Engineer, Technicians & Operators. Supervisor, Leader, Engineer, Technicians & Operators Manager, Engineers, Supervisor, Selected operators/technicians Supervisors, Technicians, Engineers, Operators STRATEGY • Shop-Floor personnel implement, monitor and maintain the system • Management reviews, involves periodically and shows sponsorship • Shop-floor supervisors /Technicians/Engin eers and operators involve in Job Training, Improvement & monitoring • Department Management reviews periodically and shows sponsorship • Managers, supervisors, engineers and selected operators/leaders will plot , improve value stream and mange constraints on a cyclical basis • Top management review and show sponsorship • Self motivated approach to meet daily KPI, Improve Performance and Engage Employees
  60. 60. Tools: Corporate Culture • Each type of culture emphasis certain management competencies and practices 60
  61. 61. Corporate Culture • Using 25 questions to evaluate corporate cultures. • Each culture has its emphasis on people and management development • Determine the future direction of corporate culture 61
  62. 62. Culture and People Development
  63. 63. Tools: Employee Engagement • Gallup Q12 63
  64. 64. 69 C. People and Management Development Modules
  65. 65. Individual Contributor level 70
  66. 66. Supervisor and Junior Manager 71
  67. 67. Manager 72
  68. 68. Directors and Senior Managers 73
  69. 69. 74 Questions
  70. 70. 75
  71. 71. 76
  72. 72. Background • Nitin Nohria is the Richard P. Chapman Professor of Business Administration at Harvard Business School • Sustained Business Success • Nitin Nohria, William Joyce, and Bruce Roberson
  73. 73. Major 4 Factors 1. Strategy: devise and maintain a clearly stated, focused strategy. 2. Execution: develop and maintain flawless operational execution. 3. Culture: develop and maintain a performance- oriented culture. 4. Structure: build and maintain a fast, flexible, flat organization.
  74. 74. Strategy Whatever your strategy, whether it is low prices or innovative products, it will work if it is sharply defined, clearly communicated, and well understood by employees, customers, partners, and investors. • Build a strategy around a clear value proposition for the customer. • Develop strategy from the outside in, based on what your customers, partners, and investors have to say—and how they behave—not on gut feel or instinct. • Continually fine-tune your strategy based on changes in the marketplace—for example, a new technology, a social trend, a government regulation, or a competitor's breakaway product. • Clearly communicate your strategy within the organization and to customers and other external stakeholders. • Keep focused. Grow your core business, and beware the unfamiliar.
  75. 75. Major 4 Factors 1. Strategy: devise and maintain a clearly stated, focused strategy.
  76. 76. Execution Develop and maintain flawless operational execution. You might not always delight your customers, but make sure never to disappoint them. • Deliver products and services that consistently meet customers' expectations. • Put decision-making authority close to the front lines so employees can react quickly to changing market conditions. • Constantly strive to eliminate all forms of excess and waste; improve productivity at a rate that is roughly twice the industry average.
  77. 77. Major 4 Factors 2. Execution: develop and maintain flawless operational execution.
  78. 78. Culture Corporate culture advocates sometimes argue that if you can make the work fun, all else will follow. Our results suggest that holding high expectations about performance matters a lot more. • Inspire all managers and employees to do their best. • Empower employees and managers to make independent decisions and to find ways to improve operations—including their own. • Reward achievement with pay based on performance, but keep raising the performance bar. • Pay psychological rewards in addition to financial ones. • Create a challenging, satisfying work environment. • Establish and abide by clear company values.
  79. 79. Major 4 Factors 3. Culture: develop and maintain a performance- oriented culture.
  80. 80. Structure Managers spend hours agonizing over how to structure their organizations (by product, geography, customer, and so on). Winners show that what really counts is whether structure reduces bureaucracy and simplifies work. • Simplify. Make your organization easy to work in and work with. • Promote cooperation and the exchange of information across the whole company. • Put your best people closest to the action. • Establish systems for the seamless sharing of knowledge.
  81. 81. Major 4 Factors 4. Structure: build and maintain a fast, flexible, flat organization.
  82. 82. Secondary 4 Factors Master two of the four secondary management practices: (5) Talent: hold on to talented employees and find more. (6) Innovation: make industry-transforming innovations. (7) Leadership: find leaders who are committed to the business and its people. (8) Mergers and acquisitions: seek growth through mergers and partnerships
  83. 83. Talent Winners hold on to talented employees and develop more. Fill mid- and high-level jobs with outstanding internal talent whenever possible. Create and maintain top-of-the-line training and development programs. Design jobs that will intrigue and challenge your best performers. Keep senior management actively involved in the selection and development of people.
  84. 84. Innovation An agile company turns out innovative products and services and anticipates disruptive events in an industry rather than reacting when it may already be too late. • Relentlessly pursue disruptive technologies to develop innovative new products and services. • Don't hesitate to cannibalize existing products. • Apply new technologies to enhance all operating processes, not just those dedicated to designing new products and services.
  85. 85. Leadership Choosing great chief executives can raise performance significantly. Closely link the leadership team's pay to its performance. Encourage management to strengthen its connections with people at all levels of the company. Inspire management to hone its capacity to spot opportunities and problems early. Appoint a board of directors whose members have a substantial stake in the company's success.
  86. 86. Mergers & Acquisitions Internally generated growth is essential, but companies that can master mergers and acquisitions can also be winners. • Enter new businesses that leverage existing customer relationships and complement core strengths. • • When partnering, move into new businesses that make the best use of both partners' talents. • Develop a system for identifying, screening, and closing deals.