addis workshop

Peter TotterdillDirectorWorkplace Innovation Limited

Joint Chief ExecutiveUK Work Organisation Network

Visiting ProfessorKingston University London

[email protected]

Building versatile organisations for a fast-changing future

The UK Work Organisation Network A not-for-profit coalition committed to shared knowledge, collaborative action and policy advocacy

• The future of work and organisations• Closing the gap between leading-edge practice and common practice

www.workplaceinnovation.eu

A distinctive approach

• Evidence-based• Diverse backgrounds, common values• Stimulating “employee voice”• Committed to win-win outcomes• Sustainable change, not quick fixes

Innovation in work organisation:

an under-utilised resource?

• Competitiveness and innovation• Quality of working life• Employee engagement• Healthy working• Talent wars• Active ageing• Social inclusion

The past is an increasingly unreliable guide to the future

Survival is not compulsoryOf the Fortune 500 firms listed in any year from 1975,

over a third disappeared ten years later. Only one firm remains from the 1900 list. For smaller firms the odds are much worse.

Put simply, change is imperative.

Anticipating the future is tricky

“It will be years – not in my time – before a woman will become Prime Minister.”

Margaret Thatcher, 1974

Anticipating the future is tricky

But thinking about the future is essential

‘In preparing for battle I have always found that plans are useless, but planning is indispensable.’

Dwight D. Eisenhower

Future Quiz When was the phrase “nothing is

permanent but change” written?

Answer

Between 540BC-480BC by Heraclitus

According to former USAccording to former USSecretary of EducationSecretary of EducationRichard Riley…Richard Riley…

Times of economic downturn are Times of economic downturn are times to invest in people and times to invest in people and

workplace innovation. workplace innovation. Now is the time to engage people in Now is the time to engage people in

finding creative solutions.finding creative solutions.

The Future of WorkClichés and false predictions:• The end of work• Jobs for life and careers are dead• The office is history• The paperless office is on the way• The death of hierarchy

Are our organisations becoming obsolete?

• Technologies

• Technologies• Globalisation


CHINA AND THE KNOWLEDGE ECONOMY

CHINA AND THE KNOWLEDGE ECONOMY• 2000 higher education institutions in 2002


• 4000 higher education institutions by 2005


• 4000 higher education institutions by 2005

• 16 million students enrolled by 2008

• Technologies• Globalisation• Global Resources


SOURCE: Wall Street Journal, 24th March 2008

• Technologies• Globalisation• Global Resources• Politics


• Technologies• Globalisation• Global Resources• Politics• Climate change


• Technologies• Globalisation• Global Resources• Politics• Climate change• Consumers


• Technologies• Globalisation• Global Resources• Politics• Climate change• Consumers• Demographics


• Technologies• Globalisation• Global Resources• Politics• Climate change• Consumers• Demographics• The workforce


Is it a good job?

To join or not to join? Will the job . . .• Enhance my career capital?• Offer personal development?• Engage my talents and creativity?• Be fun?• Conflict with my values?

‘Work is getting better’

For many, work is how we identify ourselves, where we learn and make friends. Work is our community.

More and more employers are recognising that a high quality of working life offers real competitive advantage.

• Work is becoming more intense and demanding• ICT developments allow work to pervade more

of the week and every location• Stress and absenteeism as headline issues• Death of loyalty and growth of insecurity• 22.5 million (17%) “actively disengaged” US

workers cost business $300 billion a year in productivity

‘Hard Times’

Active disengagement

Globalisation bites• Polarisation of the labour market, creating

winner take all dynamics at the top of the labour market, and dislocation at the bottom

• Globalisation + flexible labour markets = increased insecurity

Organisations under pressure• There will be winners and losers at the end of the

current crisis• The business environment is less predictable• Product ranges and services change more quickly• Constant imperative to offer more differentiation and

choice• Customers expect high quality service at speed, when

and where it suits them best• Companies expected to be environment friendly and

ethical

Scenarios for the future of work

“Built to Last”• multiple stakeholders• investment in employee and organisational

development• large companies absorb the majority of talent


“The Network Economy”• Italian successes• Phycomp• VC 2010• Soho• The Hub


“Stagnation”Apparent stability but . . .• high casualty rates• dependency culture• perpetual cost driven restructuring and wage

squeezes• restricted quality of working life


“McJobs”• high levels of employment• little security• low skill/low wage economy


“It’s a jungle out there”• highly entrepreneurial• high casualty rates• limited regulation• poor quality jobs• increasing social division


The Matrix . . .


The Matrix we want

24th January 2022

24th January 2022

What will I be doing?

24th January 2022

24th January 2022

The Economy

24th January 2022

The Workplace

The Economy

24th January 2022

The Workplace

The WorkforceThe Economy

24th January 2022

The Workplace

The Workforce

Technology

The Economy

24th January 2022

The Economy

The Workplace

The Workforce

Technology

24th January 2022: Global Threats and Exciting Opportunities

Micro Global

Control

Influence

Adapt to things that cannot be changed

Traditional ways of organising Traditional ways of organising work and traditional work and traditional approaches to management approaches to management are inadequate in an are inadequate in an increasingly volatile world.increasingly volatile world.

Work and CapitalThen

Work Anonymous and replaceable

Capital Personal and unique

Svenskt Näringsliv – Confederation of Swedish Enterprise

Work and CapitalThen Now




Work and CapitalThen Now


Personal and unique


More and more anonymous and replaceable


“. . . a clear concentration on those factors in the work environment which determine the extent to which employees can develop and use their competencies and creative potential to the fullest extent, thereby enhancing the company’s capacity for innovation and competitiveness while enhancing quality of working life.”

Hi-Res Study (available at www.ukwon.net)

The critical importance of employee voice

Towards the High RoadTowards the High Road

• Beyond the Low Road of cost-driven Beyond the Low Road of cost-driven restructuringrestructuring

• Innovation: the ability to do things Innovation: the ability to do things differentlydifferently

• Convergence between enhanced Convergence between enhanced performance and quality of working lifeperformance and quality of working life

High Road:Quality

Low Road:Costs

Strategy WorkOrganisation

HRWO

Neo-Taylorism

Total QualityManagement

Team Work

Project Groups


Team Work

Project Groups

Quality Culture

Quality Control

semi autonomousholistic taskscontinous improvement

co-operation over hie-rarchical boundaries

Multiskilling

Job RotationShort Work Cycles

taylorist product development

High Road:Quality

Low Road:Costs

Strategy WorkOrganisation

HRWO

Neo-Taylorism


Team Work

Project Groups


Team Work

Project Groups

Quality Culture

Quality Control

semi autonomousholistic taskscontinous improvement

co-operation over hie-rarchical boundaries

Multiskilling

Job RotationShort Work Cycles

taylorist product development

How do you interpret history?

• Histoire evénémentielle• La longue durée

Fernand Braudel (1949)

Leadership theory is a mixed blessing

‘If the characteristics of successful leadership were easy to identify, quantify and replicate, organisations would look very different and a lot of consultants would lose their jobs.’

DON’T worry about:CharismaPersonalityStrategy

Quick Guide to Leadership Theory

DON’T worry about:CharismaPersonalityStrategy

DO worry about:Self-directed teamsDeliveryReflectionLearningTrustEntrepreneurship

Quick Guide to Leadership Theory

Vision?Vision?

“People are proud to work here. Proud of colleagues, proud of the company and proud of themselves.”

David, Managing Director

“I wonder if David knows how people are treated? I’m sure he wouldn’t want his company to be run like that”.

Trish, Shopfloor Worker

Active disengagement

Dialogue,Reflection,Negotiated Action


SharedKnowledge &Intelligence

People shape organisations but organisations shape people

Entrepreneurial Organisations and Entrepreneurial Individuals

IN

DIV

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ORGANISATIONS

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Conforming Entrepreneurial


IN

DIV

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ORGANISATIONS

Con

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Sally


IN

DIV

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ORGANISATIONS

Con

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CONFORMITY


IN

DIV

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ORGANISATIONS

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SYMBOLIC ENTREPRENEURSHIP


IN

DIV

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ORGANISATIONS

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Jess


IN

DIV

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ORGANISATIONS

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RESISTED


IN

DIV

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ORGANISATIONS

Con

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Sonya


IN

DIV

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ORGANISATIONS

Con

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ENTREPRENEURIAL ORGANISATION

•Building an inclusive vision?

•Confidence to engage?

•Making change stick?

Three dilemmas


Three dilemmas



•Making change stick?

Three dilemmas

Organising, Involving, Learning

The Slick Organisation

Innovation in work organisation:

an under-utilised resource?

• Competitiveness and innovation• Quality of working life• Employee engagement• Healthy working• Talent wars• Active ageing• Social inclusion



ORGANISING

INVOLVING LEARNING



Job design

Teamwork

Organising

Teamworking

Effective teams:•are multi-skilled and work on a common task •have high levels of discretion for managing their day-to-day work •allocate tasks between themselves •plan and pace work according to the outlined requirements of the business •recruit and train new team members •actively seek improvements to the work process.



Involving

CommunicationChange

ImprovementInnovationPartnership

Management / Workforce Partnership

• Often a formal partnership agreement• A representative employee forum• A shared commitment to new ways of

working together• A joint search for ‘win-win’ outcomes• Boxing and dancing

• Setting an agenda relevant to stakeholders

• Closeness to the drivers of change

• Proactive or reactive

• Supporting transition

• Building resilience

• Maintaining commitment

Moving partnership beyond IR and HR

• Partnership representatives as knowledgeable participants in innovation and change?

• Building skills and competencies in partnership and engagement

• Time and commitment

The roles and competencies of partnership representatives



Learning

CompetenceKnowledge

sharingDialogue

ORGANISING

INVOLVING LEARNING

Developing & using competencies High involvement innovation

Shared learning and knowledge

Organising, Involving, Learning

SELF ASSESSMENT

Taking Stock

•Representative participation alone has little direct impact on performance.•Direct participation is strongly correlated with improved performance against several indicators.•BUT these improvements are both enhanced and more sustainable when direct and representative participation co-exist in a series of mutually reinforcing practices.

South Maasland Hospital, The Netherlands

Signposts?

• Tegral• Kaiser Permanente• Tower Automotive• Lindum Group

Reading and reflection

Towards the High RoadTowards the High Road

• Beyond the Low Road of cost-driven Beyond the Low Road of cost-driven restructuringrestructuring

• Innovation: the ability to do things Innovation: the ability to do things differentlydifferently

• Convergence between enhanced Convergence between enhanced performance and quality of working lifeperformance and quality of working life

BOARDSenior Management Team


Strategic Knowledge


Strategic Knowledge

Stakeholders


Strategic Knowledge

StakeholdersOpportunitiesThreats


Strategic Knowledge

StakeholdersOpportunitiesThreats

Leadership, Strategy, Values

Workforce

Workforce

Practical Knowledge, Experience, Ideas

Workforce

Management, Work Organisation, Productive Reflection

Practical Knowledge, Experience, Ideas

Workforce




Workforce




GAP?

Workforce




LineManagement

Workforce




LineManagement

CompetenceRole definitionClarity

Workforce




Systems and Procedures

Workforce




BehavioursTrustAdaptability

Systems and Procedures

Workforce




Innovation & Improvement

Workforce




Knowledge, experience, creativityTwo dimensions to every jobCommon purpose

Innovation & Improvement

FORMAL, RIGHTS-BASED

REFLECTIVE AND KNOWLEDGE-BASED

TEAM-BASED PROBLEM SOLVING

INFORMAL

Self-organised teamworking

Empowering job design and individuals engaged in dialogue

Employees participating as experts in improvement and innovation

Partnership involving Trade Union or Workplace Representatives




INFORMAL



Knowledge Sharing






INFORMAL



Knowledge SharingTACIT KNOWLEDGE INTO STRATEGY

STRATEGY INTO PRACTICE






INFORMAL





Ensuring quality of dialogue Partnership involving Trade Union or Workplace Representatives





INFORMAL





Ensuring quality of dialogueMANAGEMENT

SYSTEMS & PROCEDURES

PRODUCTIVE REFLECTION



ORGANISING

INVOLVING LEARNING

PRODUCTIVE REFLECTION

ERICSSON RADIO SYSTEMS, GÄVLE

The Green Room

Productive Reflection and Transformation

Individual creativity

Team effectiveness

Organisational innovation and transformation

Productive Reflection

Developing Innovation Capability

Impact

Time

Level 1 – Pre (‘natural improvement’)

Level 2 – Structured

Level 3 – Goal-Directed

Level 4 – Proactive

Level 5 – Capability

ORGANISING

INVOLVING LEARNING

•

Employee engagement in the UK

• Engaged employees generate 43% more revenue.• Engaged employees: 2.7 sick days per year,Disengaged employees: 6.2.• Engaged employees are 87% less likely to leave.• 67% of engaged advocate their organisations; only

3% of the disengaged do so.• 59% of engaged employees say “work brings out

their most creative ideas” – only 3% of disengaged agree.

Case studies show evidence of:

· long term competitive advantage/service improvement;· harnessing employee knowledge and creative potential;· responsiveness to market demands;· continuous improvement and innovation;· increased productivity;· greater customer care, quality and reliability;· new technologies creating a need for change;· cost reduction;· improved industrial relations;· enhanced quality of working life;· improved recruitment and retention.

If it works . . .

. . . why isn’t everyone doing it?

DISCUSSION

What are the principal obstacles and dilemmas which organisations face in securing sustainable and effective change?

And what can leaders do to overcome them?

Obstacles

Limited awareness

Poor access to actionable knowledge

Partial change

The organisation as a black box

The problem of HR

Line managers: barrier reef or resource for change?

• overwhelmed by emails and paperwork with little differentiation between ‘priority’ and ‘routine’ communications;

• accepted the need to manage within rigid financial constraints but given little indication of how to prioritise between competing demands on limited resources;

• received too little information on the rationale for new policy initiatives making it difficult to appreciate their importance;

• rarely offered the opportunity to bring their knowledge and experience to the policy design process;

• often poorly briefed by senior management on effective approaches to policy implementation;

• risk-averse through fear of blame and poor performance ratings;• lacked opportunities for peer support in discussing common

problems, sharing successful practices and raising issues of shared concern with senior management;

• sometimes lack training and competence required to manage change successfully.

The Decision Grid

Decision area:

Somebody up there decides I decide Department Managers decide

Somebody up there decides in consultation with me

I decide in consultation with . . .

Department Managers decide in consultation

with me

Sustainable innovation requires:

• Open dialogue and partnership within the organisation

• Widespread learning from outside the organisation

REGULATORY& POLICYFRAMEWORKS• National• European

GLOBALINNOVATION

GLOBALSTRATEGIC ALLIANCES

INTERNATIONAL LABOUR MARKETS

THE REGION

Intermediate Institutions

Regional Strategy

Regional Labour Markets

Supply Chains

Advanced Business Services Knowledge Networks Technology Transfer Innovation

ICTsSkills

Innovation Entrepreneurship Technology TransferKnowledge Networks

THE ENTERPRISE Global MarketsGlobal Mobility

THE ENTERPRISE Competitive StrategyOrganisational Competence Networks People

People at the centre of change

• Change is unpredictable

• It often fails

• There is no blueprint

• Experimentation and learning are unavoidable

• You need everyone’s help

• Space for reflection and dialogue is essential

Action PlansWhat are my objectives?What are the appropriate actionsWhat are the desired outcomes?Who will I consult and involve? (and when?)Who do I need to persuade or influence?How will I make the change happen?What is the timescale?How will I ensure effective communication?What obstacles can I expect? (and how to overcome them?)What are the key milestones?How will I know if it working?How will I make the change sustainable?

Planning for a resilient future Challenge or opportunity

Significance to MTN

Urgency(short,

middle or long term)

Action By whom? Obstacles

Wednesday 11th April 2012

www.ukwon.net

www.workplaceinnovation.eu