hr professionals guide to business transformation
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DESCRIPTIONChange 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.
- 1.HR Professionals Guide to Business TransformationShare this eBook:
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 programmemany of our business functions. For example,underway, driven by budget cuts andthe need to make changes in the financethe need to maintain service levels in anfunction 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 development.to reduce the pressure on resources and 25%were improving the flow of information acrossIt is this interconnectivity that has led to thethe organisation to move away from silopopularity 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 sitechange 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. 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 thethe desire to change and the need to runmarket place that the organisation serves andthe 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 tonaturally active in supporting the business ascontribute in explaining the current capabilitiesusual environment but demand for this supportand identifying what the organisation canwill increase during transformation as we askrealistically expect to develop in the short tostaff to cope with their existing workload whilstmedium term. learning new ways of working relevant to the transformation.Market ForcesInternal CapabilitiesStrategic ObjectivesTransformationalOperationalChange RequirementsPortfolio Change ProgrammeProgramme ProgrammeProject ActivitiesChangeChange ChangeProjectProjectProjectActivitiesActivities Activities Share this eBook: 3 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. Skills and ChallengesThe continuing increase in the number ofThis 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 theleadership 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 thisfailure: Business Transformation challengesWe dont have enough resources tochange our organisation whilst at theWe change our minds about whatThe new ways of working have not taken account of all same time keeping the current business we want halfway of our exceptionalwhich 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 piecesThe programme absorbsto get the necessary support - by making one changeso much resource our we had a series of business suffers and we thenunintended consequences abandon the transformationwhich negatively to take remedial action inThere is insufficient cooperation our main businessand collaboration to implement impacted what we weretrying to achievethe changes cross functionally -our silo based mentality meansthat each function alters theThe team responsible for the transformation is so farrequirement to suit its own removed from those expected to change that they haveneeds insufficient influence to make change happen Share this eBook:5 6. Defining the skills forbusiness 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 (www.cipd.co.uk)to play in the success of change initiativesin their HR competency framework, called theand 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 changefor 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 designingby enabling you to develop the behaviours and implementing structural changenecessary for effective HR management.6 Share this eBook: 7. The CIPD HR Profession Map identifies eightbehaviours, four of which I think are particularlyrelevant to change management: CollaborativeWorks effectively and inclusively with Personally crediblecolleagues, clients, stakeholders customers,teams and individuals both within andBuilds 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 toand in an objective manner. the need to work effectively with all thosewhose active participation and support Successful change management andis needed to implement and embedbusiness 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 aboutacross a complex environment, to gain the approach that the organisation needsthe 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 organisationbenefit. Courage to challengeOur organisations are becominglyincreasingly complex. Formal understandingShows courage and confidence to speakof how to identify, analyse the needs andup, 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 onethat can be learnt.The confidence to challenge is derived fromthe confidence you have in your skills and knowledge. Ensuring tha