Being
involved with an organisation confronting this situation some years
ago, I found a solution that was surprisingly simple, effective
and inexpensive. It proved that HR can play a very positive and
influential role in engaging staff, heightening focus on work outcomes
and improving overall business performance during tough times.
The scenario
The company was experiencing a very difficult financial situation
which resulted in drawn out negotiation with financial institutions.
These interactions were extremely sensitive, requiring total involvement
of the Board and CEO, plus frequent involvement of members of the
senior management team. With this major distraction, top down communication
to staff virtually evaporated.
The
lack of information coming from the top was ‘deafening’.
Staff became increasingly nervous, some resigned but most remained
– distracted, de-motivated and underperforming.
The
solution
The intervention to change the situation involved engaging staff
in a business improvement exercise which lead to identification
of a series of very practical changes to business processes to improve
sales, improve efficiency or reduce costs.
The
CEO agreed to support the initiative but was not put under pressure
to reveal any sensitive or negative information about the company’s
situation. His input was to provide support for the initiative and
explain that in the current difficult circumstances it was important
for everyone to contribute to help the business be as successful
as possible.
An
attraction was that the solution was inexpensive as it used the
internal resources of the organisation led by the HR Manager.
The process
Steps in the business improvement initiative were:
1. Gaining the CEO’s commitment
The HR Manager obtained the CEO’s agreement to support the
initiative by openly endorsing it and encouraging all staff to become
involved. The CEO also committed to implementing any business improvement
recommendations that emerged from the process, subject to financing
requirements. This put a sensible commercial constraint on staff
when considering improvement ideas.
2.
Staff Engagement sessions
All staff were invited to attend a business improvement workshop
session. While not compulsory, staff were aware that this was an
important event and almost 100% attendance was achieved even though
sessions were held partly out of normal working hours. Meeting rooms
at company premises were used which made it easy for staff to attend.
Approximately
200 employees were involved so it was necessary to arrange four
sessions to ensure a maximum of 50 people in each group. This ensured
all staff were involved and able to have their ideas heard.
[Note: For very large organisations it is recommended that the exercise
be broken down to a location or division level to ensure staff feel
close to the business activities and processes involved.]
The
objective of each group session was to achieve a prioritised list
of improvement projects “endorsed” by all staff, and
a team of volunteers who were keen to work on specific projects.
3.
Making the sessions work
Sessions were structured around a simple format which could be easily
facilitated. As the business improvement initiative was clearly
people related, it provided an excellent opportunity for the HR
Manager to lead the overall exercise and the workshop sessions.
Each session lasted approximately two hours.
Session
content covered :-
- An introduction and confirmation of the importance of this initiative
delivered by the CEO, or in his absence, another senior management
team member.
- A structured process to identify business improvement ideas prioritised
on the basis of likely impact, realistic timeframe, and financial
outlay relative to payback. [see the sidebar, "Making Improvement
Workshops work successfully" for more detail on the structure
and techniques used to stimulate ideas from staff and ensure all
were able to express their ideas and feel engaged in the process]
- Obtaining volunteers for selected improvement projects based on
the enthusiasm, skills and experience they could contribute, and
volunteers for the ‘steering committee’ to set up and
monitor progress of the selected improvement projects.
- Closing the session with clear information on what will happen
next and what ongoing feedback employees would receive.
4.
Organising the improvement projects – the Steering Committee
The steering committee led by the HR Manager played an important
role in aggregating the prioritised projects from each group session,
checking for overlap between projects, deciding which projects were
to be pursued, deciding which volunteers were to be invited to work
on each project and confirming their involvement .
Other
important roles of the steering committee:-
- Identified and gained the commitment of an appropriate senior
person to be “Project Sponsor” for each of the selected
projects. The sponsor had to be in a position to authorise implementation
of any findings and allocate resources.
- Set guidelines for each project; eg milestones and time for completion,
format for financial analysis, internal resources available to project
team members.
- Analysed all suggestions which weren’t selected as projects
to find any which could be implemented quickly and cheaply without
the input of a project team.
- Monitored progress of each project against deadlines. [Note: some
projects did not proceed after initial analysis as it became obvious
the idea wouldn’t work, would cost too much or would take
too long for a payback to be achieved.]
- Communicated progress back to the CEO and senior management team
- Communicated progress regularly to all employees.
5.
Project recommendations and implementation
Project teams worked independently (except for advising the steering
committee of progress), reporting their findings and recommendations
directly to the project sponsor. Once recommendations were considered
robust enough for implementation and benefits had been clearly quantified,
the project sponsor took responsibility for implementation.
The
benefits
By engaging all employees this process provided important feedback
on the organisation’s situation and gave a positive focus
for the immediate future. The workshops ensured everyone had an
opportunity for their ideas to be considered. Some small improvement
ideas were responded to quickly, thereby providing an immediate
motivation boost.
While
the improvements which flowed from this process didn’t immediately
turn around the fortunes of the organisation, they did make a contribution,
and more importantly the process of staff engagement provided a
positive focus to counter the feelings of helplessness and de-motivation
many were feeling. 
An example of what can be achieved
One project team addressed the issue of slowness of confirmation
between sales, administration and operations in confirming
sales contracts. The company sold ‘house and land’
packages from display homes. Sales people were required
to complete a complicated sales document which was then
forwarded to Sales Administration which checked the details
in two ways. Firstly, in terms of clarity of customer details,
including their financial position and ability to afford
the purchase, and secondly, the details of the home to be
purchased, including options and variations which had implications
for the designers who were required to provide plans for
the purchasing department and building teams.
Much
time was lost in this clarification process because of poor
or incomplete information obtained by the sales person and
the importance of ensuring the customer’s requirements
were accurate as this had serious implications for costing
the purchase. During this ‘clarification’ period
many sales were lost as customers changed their mind or
went elsewhere for an alternative home.
The
improvement project team devised a change of business workflow
that introduced a dedicated Administrator to each customer
on the next working day following the sale, thereby shortening
the clarification process and keeping the customer excited
and committed to their purchase.
The
result – a significant reduction in cancelled sales.
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Doug Shadbolt is Managing Director of Human Resource Dimensions
Pty Ltd, an Australian HR consulting firm he founded 13 years ago.
The company’s consulting activities have been far reaching
including significant involvement in management and professional
development training, change management projects and talent management
and retention. Doug has a Bachelor of Arts (Economics) and MBA,
and is an Associate Fellow of the Australian Institute of Management,
a Certified Professional of the Australian Human Resources Institute
and a Member of AustCham in Singapore.
For more information, please visit www.hrd.com.au.
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