Leading HR delivering Competitive Advantage

216 Pages·2011·0.79 MB·English

by  Tris G4

LEADING HR
Delivering competitive advantage
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Clive Morton
Andrew Newall
Jon Sparkes
CD2013 Prelims 14/9/01 12:05 Page ii
The Chartered Institute of Personnel and Development is the leading
publisher of books and reports for personnel and training professionals,
students, and all those concerned with the effective management and
development of people at work. For details of all our titles, please con-
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CD2013 Prelims 14/9/01 12:05 Page iii
LEADING HR
Delivering competitive advantage
Clive Morton
Andrew Newall
Jon Sparkes
Chartered Institute of Personnel and Development
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© Clive Morton, Andrew Newall and Jon Sparkes 2001
First published 2001
All rights reserved. No part of this publication may be reproduced,
stored in an information storage and retrieval system, or transmitted
in any form or by any means, electronic, mechanical, photocopying,
recording or otherwise, without written permission of the Chartered
Institute of Personnel and Development, CIPD House, Camp Road,
London SW19 4UX.
Typeset by Fakenham Photosetting Limited, Fakenham
Printed in Great Britain by the Short Run Press, Exeter
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
ISBN 0-85292-922-6
The views expressed in this book are the authors’ own and may not
necessarily reflect those of the CIPD.
CIPD House, Camp Road, London SW19 4UX
Tel: [phone] Fax: [phone]
E-mail: [email protected] Webside: www.cipd.co.uk
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CD2013 Prelims 14/9/01 12:05 Page v
CONTENTS
Foreword by Geoff Armstrong viii
Acknowledgements xi
Introduction xii
01 The changed role of HR in organisations 1
Clive Morton
02 The challenge of sustainability in
organisations 16
Clive Morton
03 What is the role of HR today? 47
Jon Sparkes
04 Leading change 70
Andrew Newall
05 The organisation that learns 95
Andrew Newall
06 Sustaining partnership 112
Andrew Newall
07 HR strategy and business strategy 128
Clive Morton
08 Operating at board level 143
Jon Sparkes
09 Making your organisation an employer
of choice 165
Jon Sparkes
Index 190
v
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ABOUT THE AUTHORS
Dr Clive Morton is an independent adviser and coach on world-
class strategy and board development and leads the Morton
Partnership, which specialises in organisational transformation.
HeisacivilengineeringgraduatefromLeedsUniversityandspent
the early part of his career in the British construction industry,
workinginbothengineeringandindustrialrelations.Healsohas
a PhD in industrial relations from the London School of
Economics.Intheearly1980sheservedasdirectorofresourcesand
administration at Wimpey Offshore and Wimpey Engineering,
before joining Komatsu as director of personnel and administra-
tionattheoutsetofthecompany’sUKmanufacturingoperations
in 1986. In July 1992 Dr Morton was appointed director of per-
sonnelatNorthernElectric.HewasawardedtheOBEinthesame
yearforservicestomanufacturingandthecommunity.Hebecame
personneldirectorofRolls-RoyceIndustrialPowerGroupinApril
1994 and then worked with Anglian Water from March 1996
untilMarch2000,firstashumanresourcesdirectorandlatterlyas
directorofbusinessdevelopment.Clivewasavice-presidentofthe
(nowChartered)InstituteofPersonnelandDevelopmentbetween
1997 and 1999, and is actively involved in a number of learning
andinnovationorganisations.HeisalsochairmanofPeterborough
Hospitals NHS Trust. Clive is the author of two previous titles:
Becoming World Class, which won the Management Consultancies
AssociationprizefortheBestManagementBookoftheYear,and
Beyond World Class, both published by Macmillan. He may be
contacted at [email protected]
Andrew Newall is the corporate human resources director for
Allied Domecq, where he focuses on HR operations and the man-
agement of knowledge at the organisational level. His academic
background includes a BA in social theory from Paisley College
of Technology, an MA in employment law from Leicester
University, an MBA from Warwick University and a diploma in
personnel management from Glasgow College of Technology. He
began his career in personnel with the British Steel Corporation
at their Ravenscraig site, where he was employed as an industrial
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ABOUT THE AUTHORS VII
relations officer. He was promoted to the post of personnel man-
ager for Whitehead Narrow Strip Ltd, a wholly owned subsidiary
of British Steel. From there he moved to Llanwern Steelworks in
south Wales before moving to Rotherham as project manager for
the Narrow Strip business. In 1993 he joined Laura Ashley Ltd as
human resources manager, initially responsible for their manufac-
turing units, before taking on responsibility for all activities in
Wales. He was moved to Maidenhead as project manager to co-
ordinate the HR activities arising from a global restructuring. In
November 1995 he joined Allied Distillers Ltd as the employee
relations development manager and was promoted to director in
January 1998. He sits as a council member of the CBI and regu-
larly speaks at management conferences.
Jon Sparkes is the human resources director of the Generics
Group, an integrated technology and business consulting, devel-
opment and investment company. His main focus is the growth
anddevelopmentofanorganisationbasedoninnovationanddiver-
sity.JongraduatedfromLoughboroughUniversitywithaBScin
management sciences, and gained his post-graduate diploma in
personnelmanagementatNottinghamBusinessSchool.Hebegan
his career in an employee relations role at GPT Business Systems
(formerly GEC Plessey Telecommunications) during a time of
significant change in the telecommunications industry. This was
followed by several human resources roles within GPT, with a
particular focus on manufacturing and IT. In 1993 Jon moved to
Southern Derbyshire Training and Enterprise Council. His role
included both human resources and operational responsibility for
theTEC’sinterestsinlocaleconomicdevelopment,labourmarket
researchandeducation.Atthistimehewasagovernorofalocalfur-
thereducationcollegeandoneofthefounderdirectorsofRoutesto
Work(Derby)Limited,acompanyprovidingjobsandtrainingfor
long-term unemployed people. Jon joined the Generics Group in
1995,initiallyashumanresourcesmanager,andinJanuary2001
hejoinedthegroupexecutiveboardshortlyafteritsflotationonthe
London Stock Exchange. His role encompasses HR responsibility
forallgroupoperationsintheUK,USA,SwedenandSwitzerland.
Jonisalsoanon-executivedirectorofOpportunityLinks,anot-for-
profitbusinessprovidinginnovativesocialinformationsystems.
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FOREWORD
Success in the global, knowledge-based economy of the twenty-
first century depends on people: how they are managed, how they
are led and how they are enabled to contribute to business goals.
World-class organisations excel in the delivery of customer value
– which relies upon our profession’s ability to deliver outstanding
people management and development.
We are in a world where customers are firmly in control – in the
public,privateandvoluntarysectors.Suppliersnolongerdictatethe
customers’choice:customersdemandsatisfactionontheirtermsor
theygotosomeoneelse.Theexpectationsofcustomersaresetbytheir
experiencesofthebest.Insuchamarketplace,operationalexcellence
nolongerprovidescompetitiveadvantage:itisanentryrequirement.
Thischallengetodelightthecustomercanbealltheharderformature
organisations.Establishedmindsetsandsunkinvestmentinequip-
ment and working practices – combined with a lack of employee
developmentand,worse,aresistancetosharingknowledgeforfearof
underminingmanagementcontrol–canleaveabusinesspowerlessas
thedemandsofcustomersaremetbymorenimblecompetitors.
Investment in unique technologies or products is not the answer
either. The rapid, global spread of IT hardware and software
enables many to match the physical products of the best. What
sellsiswhatcomesfromthebrainsandexperienceoftheworkforce,
constantly adapted to new applications that the customer wants.
The answer lies in having the agility to meet the needs of the
individual customer through rapid innovation and continuous
improvement. This can be achieved only through the ability to
capitalise on the knowledge, initiative and willing contribution
of people at all levels of the organisation.
Two elements are critical here: first, the creation of a ‘talent bank’
of performing, motivated and continuously learning individuals;
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FOREWORD ix
second, leaders with the ability and the vision to create a ‘can-do’
culture and relationships of trust that will in turn drive the ambi-
tions of the organisation ever higher.
World-class productivity and economic performance rely on the
need to build human capital. To be an employer of choice means
attracting and retaining people in tight labour market conditions
and a commitment to develop them through continuous learning.
The role of people management is to develop an innovative
‘employerbrand’thatwillattracttalentandchampionlearningand
developmentwithintheorganisation.Youhavetoinvestinpeople:
theyaretheprimarysustainablesourceofcompetitiveadvantage.
Success depends, however, on volunteers, not conscripts. Every
person in the organisation must make a willing contribution.
‘Customer-driven‘thinkinghasbecomecentraltotheemployment
relationship – both employer and employee are now one another’s
customers. Developing and maintaining an effective psychological
contract, valuing and respecting contribution from wherever it
comes, is essential to support this new model of working.
Capacity through people has become the driver of strategy, rather
thantheoutdatedmodelthattreatspeopleasresourcesatthebeckand
callofthestrategyoftheday.Anorganisationcanneverknowevery-
thing,sothenotionofatop-down,rigidbusinessstrategyceasestobe
applicable. Instead there must be fluidity in the strategy, both in
whereitoriginatesandhowitismanaged.Thiscanbeachievedonly
withateamofskilledplayerswiththeabilitytoperforminavariety
ofpositions,regardlessofindividualspecialisms.TheHRprofession
hastomeshwiththestrategicleadershipofthebusinessinorderto
realisetherealbenefitsoftheinvestmentinhumancapital.Butthe
newmodeldoesn’tjusthappen:itmustbepioneeredbyleaders.
Leadership is central to the delivery of customer value, at both the
strategic and operational levels. Leaders must aspire high and
deliver results to all stakeholders by increasing customer satisfac-
tion and growing revenues, not just by cutting costs. They must
develop a culture that allows and encourages carefully developed
human capital to work to its strengths. They must also realise
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x LEADING HR
that in such an environment of empowerment, strategy cannot be
dictated from the boardroom but rather continually develops
throughout the organisation as capacity through people rises.
Leaders also share the responsibilities of every other person in the
organisation. They must keep close to actual and potential cus-
tomerssothattheyknowwhatdelightsthem.Theymusttrackthe
competition, monitor developments in the market and ensure that
thisinformationiscontinuallyevaluated.Theymustfosterlearning
attheworkplaceandtheconstantsharingofknowledge.Theymust
establishconditionsinwhichcreativityisencouragedandrewarded.
LeadingHRplacestheroleoftheprofessiontodaywithinthiscontext.
Astheauthorsnote,thenotionofbusinesspartnerhaslongbeeninthe
sightsofHRprofessionals,butnotenoughhavemadeitthereality.
Tobecomefullbusinesspartners,wemustdemonstrateaclearunder-
standingofthebusiness,bepreparedbothtochallengeandsupport
theline,andtotakealeadonculturalandchangemanagementissues.
At the same time, we must continue to deliver efficient services,
whetherin-houseoroutsourced,andensurethateffectivepsychologi-
calcontractsbasedontrust,respectandfairnessareinplace.
HR has always had an important role to play in business success.
In this age of people-centred business strategy, the leadership
offered by the profession has become critical. Organisations must
have leaders who are able to build cultures that inspire people to
contribute to the continuous improvement in the service given to
customers. They must also have the capacity to manage the con-
stant change that typifies today’s business.
We as a profession are ideally placed to tackle these issues. It is
for us to take up the leadership role and ensure that people can
become the leading edge for any organisation. People will deliver
this advantage, and thus the organisation will succeed, only if
they are continually developed, supported, stimulated and given
the freedom to perform against stretching goals. We as the people
professionals must demonstrate that we are up to the job.
Geoff Armstrong
Director-General, CIPD