Did you read that the CIPD (Chartered Institute for Personnel development) conference discussed how HR should become more business savvy to increase their impact.

Too little influence
For years the CIPD have been moaning that HR has too little influence at senior levels in so many businesses. One solution given to the conference was to “Discuss business challenges as opposed to HR Issues”.

Changing attitudes
The problem with this strategy is to persuade CEO’s, Directors and other Executives that HR is able to discuss “Business issues” when they have been used to discussing only HR and as a reaction to events as opposed to a developer of strategy.

In my experience such a change in emphasis would be easier for a “New Hire” HR Director or manager rather than a current incumbent!

Over the past weeks I’ve been talking to various businesses about the strategies that they are developing for 2012 and beyond and in the light of continued hard times.

The one common factor in my discussions is that there seems to be a great emphasis on sales and sales team restructure to maintain growth. Identifying the successful sales team members isn’t difficult and identifying those that need replacing isn’t difficult either. The problem is that those at the top probably won’t be able to deliver more and those at the bottom are difficult to motivate.

Greatest potential growth
Possibly the greatest potential growth from a sales team will come from the average performers. That is those that are producing between 90% and 125% of their target on a regular basis. This is partly because this group tends to have more people in it than the top or the bottom and motivating them to produce more has the greatest potential for success.

Sales team restructure strategy
When developing strategies for a sales team restructure they should include changing territory, clients, working times, information and support given to the sales team and a good study of the recruitment process and criteria for those joining the team.

This video on sales and marketing interview questions might help

I’m drawn to watching the apprentice because the producers of the show seem to have brought together the usual group that will inevitably make good television!
Billed as the “cream of UK’s entrepreneurial management” one can only cringe at how some behave and the delusions that they have of themselves. The best line of the night was when one of the men described himself as “good looking too”.

Sympathy for the contestants
However, perhaps I have more sympathy with the contestants this time than in earlier contests. In the past the prize on offer was a job working for Alan, sorry Lord Sugar. Now the prize is £250,000 investment into a business partnership on a 50/50 basis. Thus ensuring Lord Sugar’s continual presence.

On the basis that one chooses ones business partner more carefully than one’s life partner the process seems very one sided when Lord Sugar does all the choosing and ends each edition with…”You’re fired!”

Will the last contestant be brave enough?
When the last contestant is revealed will they, having considered the tedious selection process, Sugar’s knit picking and criticisms and the defence of their own ineptitude in the boardroom week after week, be brave enough to say something like, “Over the past weeks I’ve seen you in action and on reflection I think I’ll find someone else to invest in me”

Now if that were on the cards wouldn’t that make watching the series more fun?

The UK’s proposals for change in welfare reforms and the Armed Forces is underway but business change hasn’t been too noticeable for many. However that is about to change. Large companies have begun to implement significant structural change and much more is on the way, starting with HSBC on 11th May.

HSBC to reduce size of branch network

HSBC is announcing changes to its retail operations in the UK in order to lower their cost to income ratio. According to reports the options being considered include:

1. Sale of a significant number of branches.
2. Relocation of the UK retail Head Office from Canary Wharf to a less expensive location in London
3. Removal of layers of middle management
4. The creation of a new ethos where all sections of the bank must contribute profits or be restructured or sold

It’s likely that the changes will follow a similar pattern adopted by other banks and particularly by Bob Diamond at Barclays Bank where each individual business must contribute to profitability or risk being shut down.

Research determined strategy

A great deal of research has been undertaken by banks to determine the strategy that will be most beneficial. Interestingly TSB telephoned me last week to survey my attitude to service levels within my local bank in St Albans.

Too much change can be destructive

It would seem that wholesale change is likely to be implemented by Stuart Gulliver at HSBC. However, in my experience, too much change all at once can cause unforeseen problems. These include:

1. Change instability. Where one part of the organisation is unable to perform properly because of the change happening further upstream or downstream of the product flow.
2. Change fatigue. where individual teams suffer so much change that it stalls whilst they take a breather to collect their shared breath.
3. Time differences. This is where the people that have designed the change are impatient to implement the change and therefore find themselves in a future time frame where they have a vision of the desired results whilst those affected by the change are still firmly set in the past and will cling onto what they know best. To overcome this time difference there needs time for teams to express concerns without being considered disruptive or anti-sponsors of the change strategy.

Complex and all embracing change warrents Directors and managers to be meeting with teams, regularly and consistently with a similar message and reassurance, even when bad news is being delivered.  

Following the strategy paper that Maria and the Sales Director produced a few weeks ago Maria has seen the first team that is being restructured, The Marketing Department.

The post of Marketing Manager and his deputy are seen as being redundant. In future these roles will be done by the Sales Director, who sees himself as an expert on the topic.

This has come as a shock to many people in the company as the Marketing team have been credited with increasing company profile and being instrumental in the development of new product ideas that have kept the company at the forefront of their industry.

The gossip around the coffee machines would suggest that many see this move as the Sales Director “consolidating his position” as opposed to looking forward to the company’s future success.

It’s been noticed that over the past few weeks Maria has been identifying those people with real influence in the organisation. A particularly important strategy for any new hire.

So far she seems to be making an effort to engage with the Sales Director, Project Manager and Company Secretary.

The Sales Director views having the Personnel Manager on his side as being a very useful alliance as he has some changes in mind for the structure of the sales teams and he will need help and advice to implement these correctly.

Developing a network seems to be going well for Maria. There is one fly in the ointment however. She was overheard running down some members of her team to the Sales Manager saying, “I’m not sure how Christine (her assistant manager) would be much help to you, I think she’s overrated. If you need some help, come directly to me”.

It’s inevitable that as companies such as Barclays, Lloyds TSB, Marks & Spencer and even Tesco suffer reduced profits they are developing a strategy that reduces costs by reducing staff.
 
Such companies then create smaller working teams or integrate the remaining staff into other departments together with their responsibilities.

There is a hidden downside with this strategy.That is that often there isn’t enough time, or motivation due to a sense of emergency, to integrate the new team properly so that they are capable of being as productive as they might be.

Our research, over nine years, into individual and team productivity following the integration of new people shows that only 60% of such changes deliver the results that were anticipated.

Poor communication, lack of understanding of team results and changes in management style all contribute to the potential failure. The result is that costs rise, goals and opportunities are not met and this results in further downsizing.

Companies that are changing their teams need to consider that they are in effect changing the make up of the team dynamic and need to consider a integration period in exactly the same way as if they were to be introducing a new members of staff

I was asked a few days ago what I felt were the the “mission critical strategies” that a business should employ for survival during the downturn.

The first piece of advice that I gave was not to be panicked into knee jerk reactions. Panic inevitably results in poor decision making and poor decisions inevitably leads to long term regret.

The answer was then expanded into six key areas:

1) Plan for a long downturn. It’s likely that things will be slow for between one year and five. (in Japan their last recession lasted a decade)

2) Focus on productivity.(Both individual and team delivery)

3) Retain the best talent and continue to develop it. (Historically, talent tends to leave when it believes it is not learning)

4) Encourage innovation

5) Ensure robust succession planning so that if people do leave there is continuation of productivity.

6) Reduce expenditure as far as possible on non-productive items