expert guide may 2014

by Ann Mary Wardman & Simon Boulcott

A FEW STEPPING STONES ON THE PATHWAY TO GROWTH

An Expert Guide for Business Owners

Creating pathways to growth

0117 364 [email protected]

www.hrbusinessalliance.co.uk

Copyright © HR Business Alliance

www.hrbusinessalliance.co.ukwww.hrbusinessalliance.co.uk

IntroductionAll businesses depend on people somewhere along the way and getting the best out of the people resources in any business is a mixture of art and science.

Art, because every one of us is different and so the triggers that set us off on the road to high performance are equally varied. Science, because sometimes a system or a process is needed, with checkpoints along the way, to steer everyone along the same pathway towards success.

Anyone who has managed a team of people knows very well how hard it can be to get everyone lined up and facing in the same direction, with a shared objective, and undistracted by the impact of natural human traits that make us all individuals.

For some, managing people seems to come easily, for others it seems hard work.

The tips in this guide will not turn you into a people management expert overnight. But if you keep them in mind they can help you gain greater power as you negotiate the challenges of getting the best out of the people resources in your business.

Getting the right balance requires patience, planning, persistence, persuasion… and a little bit of alchemy!

The HR Coach Research Institute Strategic Action ModelTM is a key model within the method. The model explores the link between strategy and the actions of individuals within the organisation.Using this research, the HR Business Framework HRF101: 2013 was established for the United Kingdom. The framework was validated by an international external industry and academic committee in 2009 and is core to the HR Business methodology of taking HR in businesses from an art into a science.

The Strategic Action ModelTM


A Pathway to GrowthBuilding a sound platform for managing the people aspects of your business is a really good place to start. By doing this you minimize the risks that come with people management and then go on to develop the resources you need through a planned approach to performance management and workplace improvement.

So think about the things you could do in these five categories:

Organisational measurement and planning Human resources processes and systems Governance and compliance Performance management Workplace improvement.

These five elements flow naturally into each other. By starting at the beginning, with assessing where you are, then putting in place the right processes and controls, you will be taking steps towards developing your people resources and enabling them to help you grow your business.

Figure 1 - Model for the Human Resource Framework©

1. Organisational measurement

& planning

4. Performancemanagement

5. Workplaceimprovement

2. Human resourcesprocess & systems

Maximise Sustainability

MinimiseRisk

3. Governance &compliance

Stepping Stone 1Organisational Measurement and PlanningEvery successful project requires a plan and some way of measuring the outputs. Managing people successfully is one of the most complex projects many of us will undertake. There are many variables and not all of them in our direct control.

A good place to begin is to think about measuring the starting point, to get a fix on where things are today.

Ask yourself a question; what are my expectations of the business and the people in it, and have they been met? Also ask about the employees’ expectations and understanding of the business and its goals.

A good way of getting feedback from employees is to think about running a staff survey or focus groups – these don’t have to be expensive and time consuming. Doing this with your staff is a clear sign to them that you are interested in their

point of view and this is a really positive message to send.

If you do a survey or run some focus groups do not forget to make sure you complete the process by going back to your people with the outcomes.

Repeating surveys at suitable intervals is also a good way of measuring progress on some key issues such as staff satisfaction and engagement.

When the measurement is done you can start to think about some planning. Prioritise the issues raised from the questions you have asked into actions and you can start to see what you need to address first - you have the basis of a plan.

A good plan is no good at all if you cannot measure progress against it. Keep it current by having scheduled reviews and evaluations against the milestones you have set out.

Stepping Stone 2Human Resource Processes and SystemsAs a business owner, you do everything you can to manage and mitigate risk in your business and this should extend to your people-related processes and systems.

A good place to start is contracts of employment and a basic staff manual. Once these are in place you can start to build in related processes as you need them such as:

Remuneration Recruitment Staff development Performance management Career development Exit procedures

Business ethics and codes of conduct Workforce planning.

In the early days of your business these do not need to be sophisticated or complex systems but if you are growing, or intend to grow, it is always a good idea for you to think about them and start to put down a plan for how you are going to address them. You don’t have to start from scratch either as industry bodies and advisers will have templates and best practice guides that you can adapt to your circumstances.

And remember – the process of thinking about these things, and letting your staff know that you are doing this, makes you a better employer.


Stepping Stone 3Governance and ComplianceProbably the least favourite topic of many entrepreneurial spirits – so let’s get it right first time and we don’t have to keep going back to it!

We live in an increasingly regulated environment and the best way to think about regulations is that they are there for everyone’s protection; yours, your staff, your customers and the public.

Your business reputation is critical to stability today and growth tomorrow, it does not take very long for bad news to spread far and wide in this age of instant communications.

So good businesses know that observing regulations rigorously can work in their favour. This protects against third party and employee claims and bad publicity, as well as providing a platform for presenting yourself to regulators, customers and employees (current and future) as a quality business; building confidence and trust.

You can deal with this stuff by having a plan that includes:

Reviewing internal processes for compliance and risk Monitoring the regulatory environment for

impact on your business Regular reviews to make sure your internal

processes are up-to-date Communicating changes effectively in

your businesses Auditing key processes and procedures annually

to make sure they are up-to-date.

And finally – find ways to encourage feedback from your staff and customers about any concerns or ideas they might have to keep your business right – they are often the people that see things first and you need to know about it.

Stepping Stone 4Performance ManagementPerformance management is all about setting and agreeing the performance expectations between the employer and employee, whilst measuring progress at agreed intervals. Done well, performance management can really add value to your business and your relationship with your employees. Do it badly and it can have a negative impact and breed cynicism and mistrust – it’s important to do it and to get it right.

The basis of good performance management practice is an open and honest process based on mutual trust to build respect. A good process should always meet the following benchmarks:

Agree the work standards expected taking into account individual skills and experience

Evaluate current performance against the agreed standards Understand current performance, needs and

capability of the reviewee Provide objective feedback for improvement Develop improvement initiatives for individuals

and teams.

Investment in people through a trusted performance management process can enhance employee engagement and retention – contributing to business growth.


Stepping Stone 5Workplace ImprovementYou and your employees spend a lot of time in the workplace so finding ways of making it a better place to be has to be a good thing.

The objective of a workplace improvement programme is to identify and implement improvements in the workplace to make the organisation more efficient and effective.

Engaging your staff by asking them how to improve things is a good place to start – do not underestimate the benefits of getting the basic things fixed if it is needed – a broken kettle or faulty microwave can be a real irritant in the staff room. More advanced ideas can result in

improved business performance through better collaboration within and across teams, increased deployment of discretionary effort and improved stakeholder relationships.

Here are some things to think about for the future:

An employee committee Workshops and group development

programmes Community-based projects Client and supplier joint programmes.

A Case StudyA business was about to go through an investment programme and wanted to look at the people side of things at the same time – they engaged a coach who works with HR Business Alliance resources to help them and here are the ‘before and after’ numbers that the business achieved over a 12 month period:

Measure Before AfterEmployee Turnover 50% 5%

Employee Satisfaction 63% 76%

Productivity Under performing 50% up

These improvements, along with some other investments, all contributed to this business achieving 100% improvement in profitability over the same 12-month period!


Your Next StepsTaking the next steps towards developing and implementing a sustainable Human Resources framework in your business does not need to be a burden. You can assign a member of your team to start working on it and begin a review of where you are today, enabling a plan to start emerging – and maybe you could look forward to the sort of results that our case study client got over a 12-month period.

Contact HR Business Alliance for a discussion

The HR Business Alliance methodology brings with it a diagnostic process to help you work out where you are on the pathway to growth and set out a prioritised plan to help you get there. A member of the HR Business Alliance team can come to your business and help you get started with a free diagnostic meeting.

You can call us now on 0117 364 3320 or email us: [email protected]


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We cover the UK and Republic of Ireland

Supporting hundreds of businesses internationally

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expert guide may 2014

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