Identity Management and the Australian Organisation

QQuuoorruumm UUnniitteedd
HHRR LLeeaaddeerrsshhiipp 22000033 NNaattiioonnaall
CCoonnffeerreennccee
Identity Management and the
Australian Organisation
KKaarreenn vvaann DDrruutteenn
TThhee MMeennzziieess HHootteell
22nndd DDeecceemmbbeerr,, 22000033
Quorum United Presentation December, 2003

We have people initiatives iinn ppllaaccee ssoo wwhhyy tthhee
nneeeedd ttoo ccoonnssiiddeerr iiddeennttiittyy aanndd oorrggaanniissaattiioonnaall
ccuullttuurree??

Several factors motivate ccoommppaanniieess wwoorrllddwwiiddee
ttoo rree--eevvaalluuaattee nnoott oonnllyy tthheeiirr ccoommppaanniieess’’
oorrggaanniissaattiioonnaall pprraaccttiicceess bbuutt aallssoo iiddeennttiittyy
mmaannaaggeemmeenntt::
1. The need to articulate an employment offer to
distinguish themselves in the marketplace to both
attract & retain critically-skilled individuals
2. To attract potential employees who have the ideal “fit”
with their culture to increase the likelihood of both
performance & retention
3. To target specific workforce groups e.g. along
generational lines
4. Overseas trends in employment branding which have
provided a competitive edge

PPrreesseennttaattiioonn oobbjjeeccttiivveess
 To introduce an expanded concept and business rationale
for the description “Organisational Identity”
 Frameworks for managing identity and ensuring a
performance enhancing culture.
 What do some organisations do to make a difference to
their businesses?
 To use some of the concepts to test the rigour of your
organisation’s current identity management

WWhhaatt iiss ccuullttuurree??
““hhooww tthhiinnggss aarree ddoonnee aarroouunndd hheerree””
((OOuucchhii && JJoohhnnssoonn,, 11997788))
“the set of beliefs, values & behaviour
patterns that characterise an
organisation”
(Fleming, 1994)
and more recent research suggests
DDeevveellooppmmeenntt ooff aa ccoorrppoorraattee ccuullttuurree iiss nnooww bbeelliieevveedd ttoo bbee aann aaccttiivvee
pprroocceessss wwhheerreebbyy HHRR pprrooffeessssiioonnaallss ccaann aassssiisstt iinn ddeetteerrmmiinniinngg tthhee
ccuullttuurree(Melvin, 2000) and hence the personality of the
organisation and
how it can best be influenced to improve performance

The Strategic Fundamentals
VISION (our aspirations, strategic intentions)
MISSION (our purpose)
VALUES & behaviours
STRATEGY (how we will achieve our goals)
((RR..RR.. CCoolllliinnss 11999955))
requires commitment and actions that achieve results
Primary Influence Mechanisms
STRUCTURE LEADERSHIP CULTURE
Goals, Plans, Policies,
Brings the
Budgets, I.T.Systems, Job
documentation
descriptions, Tangible
alive
rewards
Patterns in behaviour
Icons rituals, stories,
ceremonies, Beliefs

What is an oorrggaanniissaattiioonnaall iiddeennttiittyy??
AAbbssoolluuttee ssaammeenneessss
vv’’ss
aann oorrggaanniissaattiioonnaall ppeerrssoonnaalliittyy

Is there any true link bbeettwweeeenn ppeeooppllee aanndd
pprrooffiittss ddeeffiinneedd iinn tthhee lliitteerraattuurree??
 Focus on all stakeholders and leadership delivers higher net
income, revenue, employment & stock price growth, (Kotter
and Heskett 1988)
 Organisations with strong performance-oriented cultures
witness far better financial growth (HBS, 2003)
 Five human resource practices including climate & rewards
delivering 20% more chance of survival (Welbourne and
Andrews 1988)
 High performance work practices deliver 14% market value
premium (Huselid 1995, Huselid and Becker 1997)
 Workers placed in the center of core strategy produce more
jobs and higher long-term returns (Bilmes, Wetzker and
Xhonneux 1997)

EEccoonnoommiicc PPeerrffoorrmmaannccee
Over 11 years - 1977 -
1988
Culture
Strong Weak
Revenue 682% 166%
Workforce Growth 282% 36%
Share Price 901% 74%
Net Income 756% 1%
John P. Kotter 1992
(Study of 171 Corporate Firms)

Performance EEnnhhaanncciinngg CCuullttuurreess
Top Management Action
• Commitment to adaptive values
• Communicate endlessly
• Consistency
• Don’t allow “new/other”
• Arrogance in others
• Egos under control
Corporate Culture
 Values
 Value leadership
 Value key constituencies
 Behaviour
 Change practices to “fit” business
 Engage in modern business
practices
}
Managers
Core
Other

SSttuuddyy 22:: WWaattssoonn WWyyaatttt’’ss HHuummaann CCaappiittaall IInnddeexx® AAssiiaa--PPaacciiffiicc 22000022
7788..77%% SShhaarreehhoollddeerr vvaalluuee aadddd aanndd ssuuppeerriioorr rreettuurrnnss lliinnkkeedd ttoo
ggoooodd ppeeooppllee mmaannaaggeemmeenntt aaccrroossss 4411 ssppeecciiffiicc ppeeooppllee pprraaccttiicceess
 31.5% HR function effectiveness
 21.5% Collegial, flexible, customer-focused workplace
 17.7% Clear total rewards and accountability
 5.4% Recruiting & retention excellence
 2.6% Communications Integrity
 -11.2% Training unintelligently
 - 3.2% Investment in HR technologies
 - 0.3% Not adjusting headcount with the times
 -0.3% Multi-source feedback

SSttuuddyy 33:: Hewitt Employers of Choice
better 3 to 5 year growth in revenues & profits and typically
outperform other companies in industry sector, attract more
employees & have lower turnover
What makes a Best Employer?
1. People Leadership – leaders are trusted,
communicate more and are more passionate about
their employees
2. Compelling Employment Offer – have a higher
purpose & offer a different work experience
3. Accelerated Development – invest more in L&D
for employees
4. Culture & Values – fun & celebration, employee
recognition & performance management

Some observations ttoo nnoottee aaccrroossss eemmppllooyyeerrss
ooff cchhooiiccee
 Observation #1:
 In response to pressures to secure staff, companies
leverage their corporate reputations and people practices to
become “employers of choice”. The decision to become one
is a strategic commitment that, at its core, requires long-term
investment in people as valuable assets
“achieving this distinction takes more than words in a press
release or mission statement. Pretenders are soon found out
and not soon forgiven” (Katz & Miller “Viewpoint”, HR Today,
May 1997)

Some oobbsseerrvvaattiioonnss ((ccoonntt’’dd))
 Observation #2:
 Being a worthy organisation is very important. This is
reflected in terms of policies and practices that support
people in doing their best work and developing to their
fullest potential, both professionally and personally

 Observation #3:
 Being known and recognised both as a leader in the
marketplace, and as a leader in creating an environment
that enables all people to succeed, is a standout feature.

 Observation #4:
 Although practices differ, most customise their recruitment
and retention tactics to meet the demands of their business
and local labour dynamics

 Observation #5:
 Specifically, companies target key areas believing a
particular issue to be very important or a significant factor
in enabling a company to become an employer of choice e.g.
*career development
*compensation
*reputation in the community
*corporate culture
*management style and leadership
*work-family programs
*performance and profitability
*employee communications
*diversity education

Employment Branding and the emerging trends in Australia
Along generational lines e.g X = Learning & mentoring
 Graduate recruitment on campus
 To reposition “old” industries
Tailored collateral with brand image and values

Marketing & BBrraanndd IIddeennttiittyy
NNaammee LLooggoo SSllooggaann LLooccaattiioonn

The architecture of BBrraanndd & OOrrggaanniissaattiioonnaall
IIddeennttiittyy
CCoorrppoorraattee VVaalluueess
&&
BBrraanndd EEsssseennccee
PPooiinnttss ooff pprrooooff
TThhee OOffffeerr
IIddeennttiittyy PPeerrssoonnaalliittyy
SSBBUU
rroolleess

What is your identity & ooffffeerr ttoo eemmppllooyyeeeess??
FFeeaattuurreess ooff tthhee jjoobb
BBeenneeffiittss ooff wwoorrkkiinngg ffoorr ZZZZZZ CCoo..
CCoorree BBeenneeffiitt

Building yyoouurr bblluueepprriinntt
LLooccaattiioonn
LLiiffeessttyyllee
““WWoorrkk ttoo lliivvee
&& ggrrooww””
MMeennttoorriinngg
PPeerrssoonnaall
DDeevveellooppmmeenntt
SSaallaarryy
ppaacckkaaggee
CCoommmmuunniittyy
CChhaarriittyy rruunn &&
llooccaall
ccoommmmuunniittyy
pprroojjeeccttss
SSppoorrttss tteeaammss
DDeevveellooppmmeenntt
PPllaannss
JJoobb rroottaattiioonn &&
ssttrreettcchh aassssiiggnnmmeennttss

A Framework for bbuuiillddiinngg OOrrggaanniissaattiioonnaall
IIddeennttiittyy
 Seven steps to building, implementing & sustaining brand success:
 Step 1
Identify brand drivers irrespective of the campaign adopted ( e.g. to
present a unified image, to become an EOC)
 SStteepp 22
Gain sponsorship and commitment (e.g. business case)
 SStteepp 33
Dedicate resources (e.g. marketing support, cross functional project
team)
 SStteepp 44
Develop a branding strategy (either internal resources or external
agencies)

A Framework for bbuuiillddiinngg OOrrggaanniissaattiioonnaall
IIddeennttiittyy ((ccoonntt’’dd))
 Seven steps to building, implementing & sustaining
brand success:
 Step 5
Obtain internal stakeholder buy-in, communicate and roll-out
the new employment brand ensuring consistency of the tag lines
( e.g. leadership buy-in through presentations, internal
marketing/launch, external promotional collateral or website )
 SStteepp 66
Measurement (e.g. number of applications, job offer declines)
 SStteepp 77
Evaluation (e.g. focus groups, customising for different groups)

Recruitment as part of a Wholesale Retention
Strategy and Employment Brand Position
“small - company environment/big-company
impact”
“Our decentralised environment
provides the means for us to
offer you the small-company
environment and culture that’s
so inviting to work in, along with
the big-company opportunities
for career development,
advancement and impact.”
“Our People are our Greatest Asset.”
Microsoft merged its
employment brand into the total
brand proposition, sending a
message to potential employees
that Microsoft values people and
intellectual capital.

An Example ooff EEmmppllooyyeerr BBrraannddiinngg SSCC JJoohhnnssoonn
PPeeooppllee PPrrooggrraammss -- 55 aarreeaass ooff uunniiqquueenneessss
 people leadership,
 career development,
 accelerated development (training),
 employee recognition
 work/life balance

EEmmppllooyyeerr BBrraannddiinngg PPrroocceessss
IIddeeaattiioonn
External market research ranked:
Flexible hours (4th)
Balance with personal life (5th)
Describes ‘A family company’
Flexible hours (1st)
Balance with personal life (2nd)

EEmmppllooyyeerr BBrraannddiinngg PPrroocceessss
MMeeaassuurreemmeenntt
Consumption models
Employee Opinion Surveys
Brand equity (internal/external)
Leadership
Employee retention in $
People ROI

AAnndd tthhee ppaayyooffff??
 SC Johnson:
 Work Life Balance ratings 76% v’s 65% BE
 Benefits meet needs ratings 75% v’s 70% BE
 Reduction in voluntary turnover
 Attraction of younger employees
 Awards e.g. Best Employers 2002 & HR Magazine 2003
 Gap is narrowing & practices are targeted

Other evidence ooff aaddddiittiioonnaall ppaayyooffffss??
 Corporate Executive Board Study June, 2003:
 Consistent and unified company image
 Increase in the number of hits to job website & online
applications
 Increase in the number of applicant submissions & in self-selection
& retention
 Recognition of one brand
 Reduction in disconnect between candidates & company image
 Reduction in recruitment & advertising costs
 Shorter time to fill
 Time savings on the part of recruiters
 Reduced dependence on search agencies
 Recognition awards

QQuueessttiioonnss

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