HRProfessionalsGuideto BusinessTransformation

Author MelanieFranklin ChiefExecutive MavenTraining

Contents Overview................................................................................................................................3 SkillsandChallenges..............................................................................................................5 Definingtheskillsforbusinesstransformation.....................................................................6 Developingyourskillsinchangemanagementandbusinesstransformation......................9 Conclusion............................................................................................................................11 MavenCompanyOverview..................................................................................................12

Overview

Changemanagementandspecificallylargescaleorganisationalchangeorbusinesstransformation initiativesaredominatingtheactivitiesofmanyorganisations.InthemostrecentTrendsin BusinessTransformation1survey84%ofEuropeanmanagersviewedtransformationasthenorm andwereinvolvedinanewbusinesstransformationprogrammeonaverageevery6months. AllUKLocalauthoritiesandNHStrustshavesomeformoftransformationprogrammeunderway, drivenbybudgetcutsandtheneedtomaintainservicelevelsinanenvironmentofsmaller resources.Intheprivatesector,25%offirmssurveyedwerereorganisingtoreducethepressure onresourcesand25%wereimprovingtheflowofinformationacrosstheorganisationtomove awayfromsilobasedthinking2. Aquickreviewofasinglerecruitmentsiteproducedalistofover500transformationalchange jobsintheprivatesectoracrossallindustrysectors.Thereishighdemandfortransformation consultantstoleadoutsourcinginitiatives,theimplementationofSAPandotherERPsystems, redesigningmarketingfunctionstofocusondigitalmediaandthedesiretoreengineerprocesses inprocurement,finance,logisticsandordermanagement. Manyofthesechangesaretransformationalpurelybecauseoftheinterdependenceofsomany ofourbusinessfunctions.Forexample,theneedtomakechangesinthefinancefunctiondrives newprocessesandneworganisationstructuresinprocurement,salesandbusinessdevelopment. Itisthisinterconnectivitythathasledtothepopularityofthetermbusinesstransformationaswe cannolongerimplementchangewithinasinglebusinessunitorfunctionalarea.Eachchangethat isconceivedmustbereviewedforitsimpactonpartoftheorganisation,recognisingthat sometimesthisimpactisanunintendedconsequenceandmayhaveanegativeeffectinonearea thatmustbebalancedbythebenefitsgainedbyanother. Thestructureandskillsneededforbusinesstransformationisderivedfromeffective OrganisationalDevelopment.ODbuildsthestrategiccapabilitythatgeneratessustainablechange. Thispaperexaminesthecontext,skillsandchallengesassociatedwithbuildingacapacityfor businesstransformation.

1 2

CapGeminiTrendsinBusinessTransformation2009 MavenTrainingsurvey2011 CopyrightMavenTrainingLtd2011

www.maventraining.co.uk02070896161

Page3of14

Transformationalchangeisdrivenbythestrategicobjectivesoftheorganisationwhichareinturn impactedbydevelopmentsinthemarketplacethattheorganisationservesanditsinternal capabilities.HRprofessionalshaveagreatdealtocontributeinexplainingthecurrentcapabilities andidentifyingwhattheorganisationcanrealisticallyexpecttodevelopintheshorttomedium term.

Theportfolioofinitiativesthatanorganisationismanagingmustbebalancedbetweenthedesire tochangeandtheneedtoruntheexistingbusiness.Itisthecurrentbusinessstructurethatis oftengeneratingtherevenuethatwillbeusedtofundthechanges.HRarenaturallyactivein supportingthebusinessasusualenvironmentbutdemandforthissupportwillincreaseduring transformationasweaskstafftocopewiththeirexistingworkloadwhilstlearningnewwaysof workingrelevanttothetransformation. HRneedtobeinvolvedintheveryearlystagesoftransformationalchange,whenoptionsare beingexploredanddecisionsarebeingtakenaboutthescopeofthechangesandthefuturevision fortheorganisation.HRcanrepresentthecultureandvaluesoftheorganisationwhichareeasily overlookedwhenseniorexecutivesaredrivingtransformationfromtheperspectiveofefficiency improvementsandcostsavings. However,toooftenHRarenotinvolvedinatransformationonlyatthepointwhenthescope, objectivesandoverallvisionofthetransformedorganisationhasbeencompletedbythesenior managementteam.EffectivelythechangeispassedtotheHRfunctionforimplementation throughtherestructuringoftheroles,redraftingofresponsibilitiesandcommunicationofthe reasonsforandimpactofthechange. InarecentsurveyManagingChange2010:theroleofHR3,64%ofHRmanagersstatedthatthey wantedtobecomeinvolvedinchangeearlierinthecyclesothattheycanshapethe transformationtoincludetheirknowledgeoftheexistingorganisationalcapabilityforchange.
3

CopyrightMavenTrainingLtd2011 www.maventraining.co.uk02070896161

Author:CharlotteWoolff,XpertHR

Page4of14

SkillsandChallenges

Thecontinuingincreaseinthenumberofchangeinitiativesbeingundertakenismirroredbythe demandforchangemanagementskills.TheInterimManagementAssociationreportgrowthinthe demandfortheseskillsintheirlatestsurvey: Changeortransitionmanagementrequiredin18%ofroles(in2010thiswas14%) Businessimprovementexperiencerequiredin21%ofroles(in2010thiswas17%) Anecdotalevidencesuggeststhatwhilstorganisationshavethecapacitytoplanabusiness transformationtoofewhavetheabilitytomotivateandinspiretheiremployeestoparticipateand turntheplansintoreality.ThisissupportedbytheresultsintheCapGeminisurveywhich identifiesthreeskillsthatmanagersfeeltheirorganisationsneedtoimprove: Abilitytoensurethatstaffunderstandandacceptthetransformation Communicatingtheobjectivesofthetransformation Avoidingslippageintheimplementationofthetransformation Theseskillsareinhighdemandbecauseachievingsuccessfulchangeisasignificantleadership challenge.Numeroussurveysindicatethatfailureisaslikelyassuccess,withstructuralandpeople drivenreasonsforthisfailure:

CopyrightMavenTrainingLtd2011 www.maventraining.co.uk02070896161

Page5of14

Definingtheskillsforbusinesstransformation

ThecontributionthatHRprofessionalscanmaketosuccessfulbusinesstransformationis recognisedbytheCharteredInstituteofPersonnelandDevelopment(www.cipd.co.uk)intheirHR competencyframework,calledtheHRProfessionMap:

ThemapisdividedintotenprofessionsincludingOrganisationalDesignandOrganisational Development,bothofwhichexplicitlystatetheneedforchangemanagementskills.Forexample, inOrganisationalDesignthereisarequirementforHRprofessionalsto: knowhowtoutilisechampions,shiftfencesittersandremoveblockerswhendesigningand implementingstructuralchange InOrganisationalDevelopmenttherearefurtherrequirements: Knowthecriticalrolethatmanagershavetoplayinthesuccessofchangeinitiativesandis abletoengagemanagersinthechangeplan Knowthekeystagesinchangemanagement KnowhowtoimplementODinterventionsforcomplexorganisationwidetransformation programmes Learningaboutthetheoryandpracticeofchangemanagementandbusinesstransformation supportsyourcareergoalsbyenablingyoutodevelopthebehavioursnecessaryforeffectiveHR management.TheCIPDHRProfessionMapidentifieseightbehaviours,fourofwhichIthinkare particularlyrelevanttochangemanagement: Collaborative Workseffectivelyandinclusivelywithcolleagues,clients,stakeholderscustomers,teamsand individualsbothwithinandoutsidetheorganisation. Thisbehaviourmakesexplicitreferencetotheneedtoworkeffectivelywithallthosewhoseactive participationandsupportisneededtoimplementandembedorganisationalchange.

CopyrightMavenTrainingLtd2011 www.maventraining.co.uk02070896161

Page6of14

Personallycredible Buildsatrackrecordofreliableandvalueddeliveryusingrelevanttechnicalexpertiseand experienceanddoessowithintegrityandinanobjectivemanner. Successfulchangemanagementandbusinesstransformationdrawonawiderangeoftechnical skillsunderpinnedbytheneedtoreallyunderstandtheorganisationalcontextofthechange.Itis importanttounderstandthetheoriesandmodelsassociatedwithchangemanagementinorderto makeaninformedchoiceabouttheapproachthattheorganisationneedsandtobeabletohold yourowninthecompanyoftrainedchangeprofessionals. Skilledinfluencer Demonstratestheabilitytoinfluenceacrossacomplexenvironment,togainthenecessary commitment,consensusandsupportfromawiderangeofdiversestakeholdersinpursuitof organisationbenefit. Ourorganisationsarebecominglyincreasingcomplex.Formalunderstandingofhowtoidentify, analysetheneedsandplanfortheneedsofadiverserangeofstakeholdersisacriticalskillbutone thatcanbelearnt. Couragetochallenge Showscourageandconfidencetospeakupchallengeothersevenwhenconfrontedwith resistanceorunfamiliarcircumstances Theconfidencetochallengeisderivedfromtheconfidenceyouhaveinyourskillsandknowledge. Ensuringthatyouareeducatedinthetheoriesandmodelsofchangemanagementisnotaniceto havebutabusinessessentialforthosewhowishtofullyparticipateinthemanagementand directionsettingoftheirorganisation

CopyrightMavenTrainingLtd2011 www.maventraining.co.uk02070896161

Page7of14

Qualificationsandassessments

InadditiontothecontributionoftheCIPDinthisarea,therearetwootherbodieswhoare positioningthemselvesastheprofessionalbodyforchangemanagementpractitioners: ChangeManagementInstitute(CMI)anindependentnotforprofitorganisationsetupto promoteanddevelopthepracticeofchangemanagementinternationally AssociationofChangeManagementProfessionals(ACMP)providesnetworkingand collaborationforchangemanagementprofessionalswholeadthepeoplesideofchange. ACMPisfocusedondevelopingindustrystandardsandaprofessionalcertificationprogram toensureagloballyrecognizedstandardforthechangemanagementdiscipline. Thereisgrowingdemandforqualificationsinchangemanagement,recognisingthebusinessvalue thatthisskillsetoffers.TheAPMGroup,aUKbasedaccreditationandcertificationorganisation offerstheChangeManagementPractitionerqualificationwhichisexaminedatFoundationand Practitionerlevelandincludesmodulescovering: Definitionofchangeanditsimpactonindividuals,teamsandtheorganisationasawhole Assessingtheimpactofchangeonindividualandteamproductivity Analysisofhoworganisationswithdifferentculturesandvaluesareaffectedbychange Considerationofdifferentmodelsoforganisationalchangeandtheirapplicabilityto differentorganisationalstructuresandcultures TheChangeManagementInstituteoffersanassessmentagainstachangemanagement competencymodel,successfulcompletionofwhichresultsintheawareofAccreditedChange Manager(ACM)status.

CopyrightMavenTrainingLtd2011 www.maventraining.co.uk02070896161

Page8of14

Developingyourskillsinchangemanagementandbusinesstransformation

HRprofessionalsundertakeanumberofrolesinmanagingchange.Tosupportorganisationwide changetheyfacilitatethecommunicationandengagementwiththechange,andguidethose operationalmanagerswhoaremakingchangestoprocesses,systemsandorganisationstructures. WherechangeisdirectlyimpactingtheHRfunctionofanorganisationHRmanagerswillbe expectedtoadopttheroleofleader,managerorchangeagent. Theknowledgeandskillsrequiredtoundertaketheserolesinclude: 1. Understandingtheapproachtobusinesstransformation Toeffectivelysupportchangeitisimperativethatthosehelpingotherstoengagearethemselves veryclearabouthowthetransformationwillbedelivered.Understandingtheprocessofbusiness transformationenablesyoutoremainfocusedonthenecessarystepsandhelpthoseinvolvedto navigatetheirwaythroughtheuncertaintyandchaosthatisoftenassociatedwith transformationalchange. Itbreaksdownthemanymovingpartsofthechangeintoclearlydefinedpiecesofwork, reducingtheparalysisthatariseswhenstaffandmanagersfeeltheworkissocomplexthat theydontknowwheretostart Itproducesaroadmapofchangesandnewcapabilitiesthatareexpectedasaresultofall thedifferentprojectswhichenablespeopletoidentifyhowtheywillbeaffectedandhow theycanbecomeinvolved

CopyrightMavenTrainingLtd2011 www.maventraining.co.uk02070896161

Page9of14

 2. Developingthebusinesschangelifecycle Manyorganisationsstruggletoimplementchangesuccessfullybecausetheydonothaveapre agreedapproachtomanagingchangethatisunderstoodandcanbeappliedbyallthoseinvolved inaconsistentway. Anorganisationneedsabusinesschangelifecyclethatsetsouthowachangeisplanned, implementedandembedded,takingintoaccountthecultureoftheorganisationandscaleofthe changesbeingundertaken.Itshouldexplainindetaileachstepofthechangemanagement processfrominitialideatosuccessfulembeddingofthechangeasthenewbusinessasusual. 3. Buildingconfidencetosuccessfullyimplementandembedchange Businesstransformationrequirestheparticipationofeveryoneintheorganisationasitisonlyat thisindividuallevelthatspecificchangestoworkingpracticeswilltakeplace.Weneedtobuildan environmentoftrustwhereindividualsbelieveinthefairnessofhowchangesthataffectthemare reachedandempowerindividualstomakethesechanges. Thisempowermentcomesfromunderstandingthepsychologicalimpactofchangeandhow influencing,motivatingandpersuadingareessentialskillsinmakingchangehappen.Identify activitiesthatcelebratecompletionofthechangeandrewardnewbehavioursandattitudesthat alignwiththenewbusinessmodel.

CopyrightMavenTrainingLtd2011 www.maventraining.co.uk02070896161

Page10of14

Conclusion

Understandingwhatisinvolvedinbusinesstransformationanddevelopingadetailedknowledge ofthetheoriesandmodelsofchangemanagementandhowtopracticallyapplythemarean essentialHRskillset.TheimportanceofthisskillsetisrecognisedbytheCharteredInstituteof PersonnelasfundamentaltoyourprogressioninyourHRcareer. DevelopmentoftheseskillsoffersHRprofessionalsthechancetosignificantlycontributetothe strategicdirectionoftheorganisationandtheformthatthisjourneywilltake. Positionyourselfasastrategicthinkerwhocanalsocontributefromtheperspectiveofhuman resourcesratherthananexpertinhumanresourceswhoisonlycalleduponwhenthereisa perceivedHRimpacttoastrategicdecision.

CopyrightMavenTrainingLtd2011 www.maventraining.co.uk02070896161

Page11of14

MavenCompanyOverview

Mavenhasastrongfoundationinchange,programmeandprojectmanagementexpertise.We havesynthesisedthiswealthofskillsandknowledgeinthesethreeareastoprovideourclients withasystematicapproachtobusinesstransformation.

Wewillworkwithyouto: definewhatyourorganisationneedstoachieveandthestructuresandrolesrequiredtodo so ensurethatthechangeleaderscanprovideinspiration,motivationanddriveforthe change enablemanagerstoimplementthechange ensurethatthoseimpactedbythechangetotheirworkingenvironmentknowwhyitis happeningandsupportit Mavencanprovideyouwiththeskillsandtechniquestoavoidbecomingyetanothercaseof businesstransformationgonewrong.Wearenotmanagementconsultantswewillnotdoitfor youbutwewillenableyoutodoit.

CopyrightMavenTrainingLtd2011 www.maventraining.co.uk02070896161

Page12of14

BiographyMelanieFranklin Melaniehasanimpressivetrackrecordinthesuccessfulrealisationofbusinesschange programmesacrossprivateandpublicsectororganisations.SheisthefounderandChief ExecutiveofMavenTrainingandishighlyexperiencedinthedeliveryofboardlevel guidanceandmentoring. Shetakesaverypracticalapproachtochange,programmeandprojectmanagementwith priorityontherealisationofplannedbenefits,workingcloselywithherclientbaseto ensurethatthedesiretoimplementbestpracticedoesnotresultinbureaucracyforits ownsake.EachsolutionthatMelanieproposestoclientsisbasedonsoundpracticaladvice andexperiencewithguidanceonhowitislikelytobereceivedbystaff,howresistanceto changecanbeovercomeandhowstakeholderscanbeengagedfromtheoutset. Melanieisatalentedcommunicatorandhasareputationfordeliveringcomplex informationwithhumourandpassion.Shedrawsonherwealthofpracticalexperience toillustrateconceptsandtoengageheraudienceinlivelydebatesonadvantagesand disadvantagesofeachapproachthatsheoutlines. Melanieistheauthorofanumberofbooksandwhitepapersaboutprojectandchange managementincludingtherecentlylaunchedManagingBusinessTransformation:APractical Guide

CopyrightMavenTrainingLtd2011 www.maventraining.co.uk02070896161

Page13of14

ForfurtherinformationaboutMavenTraining pleasecontact: MelanieFranklin Telephone:02074037100 email:melanie.franklin@maventraining.co.uk website:www.maventraining.co.uk Followuson: Twitter Facebook LinkedIn Slideshare YouTube Scribd