Doing the same for everyone means you are treating people equally. But your people are not all in the same position. Treating people fairly means that you do the right thing for that person, so you are meeting their individual needs. Giving everyone the same may feel fair, but it isn’t.
The cost of living crisis will not impact all your people equally. Higher earners will be better insulated to survive. How do you, as a CEO, implement support that helps the people that need it, without ostracising the people that don’t?
Doing the same for everyone means you are treating people equally. But your people are not all in the same position. Treating people fairly means that you do the right thing for that person, so you are meeting their individual needs. Giving everyone the same may feel fair, but it isn’t.
Equal treatment (i.e. the same) doesn't always produce an equitable outcome
If you’ve got a gender pay gap (and you probably have) and/or an ethnicity pay gap (which you also probably have and may not even measure) take care not to increase inequality through your actions.
Don’t assume low use of an existing benefit means it’s not valuable
If you’ve got a gender pay gap (and you probably have) and/or an ethnicity pay gap (which you also probably have and may not even measure) take care not to increase inequality through your actions Not every benefit needs to have majority use to be valuable. Removing a low-use benefit might have a significant impact on some team members.
For example, a health cash plan, which gives cash back for dental, optical, and other routine health appointments, might be disproportionately beneficial to working families or those with long term health needs. Be sure to check the impact of your decisions with a formal Equality Impact Assessment and by listening to your team before you act.
We are passionate about finding ways to help bosses do the best they can to look after their people. Some of what we’ve outlined here is simple, but implementing activity that’s targeted to help those that need it most often gets businesses in a pickle. Primarily because they get bogged down about treating all employees the same. If you need help to work how to support those that need it in a way that’s fair and legal, then please drop us a line. We’d be happy to talk to you.
What is the difference between treating people equally and treating people fairly?
One off payments may benefit higher paid staff more than lower paid colleagues
One off payments may increase your gender pay gap
You may inadvertently create a wider gender and ethnicity pay gap
Don't know where to start when it comes to supporting your team through the Cost of Living Crisis?
Tag: Productivity
How to Lead Hybrid Teams
“Should I have my whole team in … or my whole team out? In, out, in, out …”
Shake it all about! We all know traditional working practices have changed. People have been flipping between being in and out of the office for over 2 years now. Something which has undoubtedly shaken many companies.
Lots of office workers have now been instructed to return for at least some of the week. But the situation that greets them varies hugely between organisations, internal teams and even pay grades.
How does it feel if your CEO has said you have to be in the office everyday, but you’ve not seen them up close and personal for weeks?
Or how about if some teams in the business are in, but others are entirely home-based?
The aftermath of the pandemic has left a huge swathe of organisations with fragile, fractured or ‘not quite figured out yet’ working environments. Some organisations moved quickly to new working policies whereas others have muddled along without formalising new ways of working.
C-suite executives expect 87% of work to be done via some form of hybrid working
According to research by McKinsey, most organisations don’t yet have a detailed vision in place for hybrid working, with as few as 3 out of 10 organisations having both prepared for and communicated their vision for the post-pandemic world. Despite this, executives expect most work to be done via some form of hybrid work in future. Perhaps many of us are still in ‘reaction mode’ and the case for hybrid working is still unclear?
Why could a hybrid working model be good for my business?
If you’re considering it, it’s probably because you’re already doing it in some way. Hybrid working became a necessity in the pandemic.
Some organisations only did it because they had to, and for some companies, being at work in person will always be the best model for them.
You may have never considered it as an option pre-covid but perhaps now you’ve seen some benefits in productivity, staff wellbeing, retention or recruitment. A hybrid mix brings many positives:
Hybrid working is no longer a ‘nice to have’, it’s a ‘must have’ for most workers
Benefits of Working at Home
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Focused periods of concentration on tasks that are best done uninterpreted.
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A place to do virtual calls.
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Good for those who need adjustments to their working environment, such as people with a disability.
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More useable time in the day for those who have a lengthy commute.
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A better work/life balance.
Benefits of Being in The Workplace*
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Informal learning of technical knowledge … being in earshot of colleagues.
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Learning good leadership skills by listening to and ‘soaking up’ the actions of positive role models.
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More chance to naturally include less confident colleagues, in meetings that are in-person.
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Space for creative conversations between colleagues.
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More opportunities for new starters to absorb company culture.
*None of the ‘benefits’ of working in the workplace are effective if leaders, and relevant colleagues are not there … AT THE SAME TIME!
Absorbing and contributing to company culture is virtually impossible at home
How do I lead a fully hybrid team?
Hybrid working is not new. Tech companies like Google have been doing it across teams successfully for many years.
The reason they and others adopted it in the first place was because it was better for productivity.
For hybrid working to work, leaders need to be clear and visible and employees need to understand how their work fits into big picture company objectives.
Agree the ground rules for hybrid working, including what leaders need to do
Five practical steps to successful hybrid working
There are some specific steps that every leader can take to make hybrid working work for you, your team and most importantly, your customers. One word of warning before you start…don’t be the CEO that says everyone has to work in a certain way, except you. That’s a sure-fire way to make sure hybrid working doesn’t work.
Step 1 – Make an Agreement (Formal or Informal)
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If people have become used to the flexibility of 100% home working they need time to put a new routine in place.
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Remember, people will be factoring in the cost of commuting, cost of living and childcare responsibilities.
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You may be perfectly entitled to have them back in the office but do it with compassion.
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Top Tip: an informal or formal agreement can help get people back into the office, particularly if different parts of your business need different levels of on-site and remote working.
Step 2 – Lead by Example
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You may have always worked from home as a leader, but for hybrid working to be successful, days in the office have to be really meaningful.
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You need to model this way of working to make sure that engagement with company culture and productivity stays high.
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Not sure your company culture is strong enough? Here are 10 proactive things you can do as a leader to improve your culture.
Step 3 – Make Office Dates Matter
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Understand which tasks work better at home and which benefit from face-to-face communication and plan around this.
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There is no point in scheduling lots of virtual calls on a day when everyone’s in the office. It’s pointless. (Ever travelled to work, done a day of Teams or Zoom calls from the office, then travelled home when you could have been anywhere? Ergh.)
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Also try to schedule company-wide office dates so that people are able to ‘drop in’ on useful colleagues.
Step 4 – Plan Unstructured Collaboration Time
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Scheduling unstructured collaboration time will invigorate your team, encourage creative thinking and help people feel positive about coming into work.
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A Deloitte survey of over 3,500 workers showed that people are up to 20% more satisfied with their workplace culture when they have access to collaboration tools that enable them to work in teams, and 34% happier with their workplace when collaboration and innovation are encouraged.
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We also know that productivity, revenue, and profitability are all positively impacted by engagement at work – collaboration with colleagues is just one way to keep your team engaged.
Step 5 – More Office Time For New Starters & Their Managers
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Your organisation is a complex web of different traits, habits, actions … ways of communicating.
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All of these are compromised if newbies aren’t properly integrated into the organisation.
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Plan extra time in the office for people joining your organisation and their managers.
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Top Tip: set an expectation that managers are on-site with new colleagues for their induction, you can share the responsibility amongst a pool of managers so new starters kick-start their internal networking.
Ringfence your time at the office for collaboration and engaging with your team
Why can’t I get my team to come back to the office?
Lots of people like working from home but it’s not without challenges, subsequently a sensible hybrid model is a pretty logical way of working for most people.
So, if you’re really struggling to get people to come back, it’s likely that your office was not a welcoming, inclusive and flexible environment in the first place!
If you’re a leader that would like a conversation about how to create and manage a hybrid working model, get in touch. We’ll show you how to enhance every professional relationship across your entire business.
A welcoming, inclusive and flexible workspace is essential for hybrid working
Don’t know where to start?
I know that making changes to your workplace and culture can be daunting – most people don’t know where to start.
I love working with Exec Teams to improve performance and unleash the potential of their organisations. Who knows what you might achieve?
Give me a call if you want to explore the options for hybrid working in your team.
Image credits
Images sourced from Canva Pro and are photographers are not individually credited. If you see one of your photos above, please let us know so we can credit you here. Photo of Andrew Knight by Nick Morrish from Nick Morrish Photography
References
Digital collaboration. Delivering innovation, productivity and happiness. Deloitte (2013)
What executives are saying about the future of hybrid work. McKinsey & Company (2021)
Cut through to your customers: Use HR Business Partners to sharpen your competitive edge
I’m often asked to define the value of HR. For starters, HR Business Partners can create a competitive advantage for your organisation. Here’s how:
Business partners are strategic thinkers, who nurture talent and get things done. In HR they can improve people management, reduce pointless admin and get the team firing on all cylinders.
They see through internal teams, to focus on bigger business goals, helping create better synergy between everyday work and big-picture company ambitions.
Business partnering was designed by Dave Ulrich almost 30 years ago, to help join up organisational strategy, workplace culture and business objectives. The model creates people solutions that deliver better commercial results.
HR Business Partners create solutions that get you better results
How do HR Business Partners (HRBPs) work?
It varies depending on the business, but there are two common models of HRBP, explored in detail by the CIPID in their Business Partnering Factsheet, but in brief:
Standalone HR Business Partners – aligned to a specific business unit
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The CIPD defines this role as “the focus of the relationship between HR and L&D and the business, ensuring HR and L&D are aligned effectively with the teams and individuals they support. BPs are facilitators and business consultants, ensuring that the HR value proposition is both relevant and effective”.
Three-pronged HRBP model – where the HR service runs across three areas of expertise:
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Shared Services – A centralised group handling transactional services across the organisation, such as payroll, sickness, recruitment and administrative HR support.
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Centres of Excellence – Small specialist HR teams, delivering business and people benefits. They tend to manage work around innovation, learning, reward, employee engagement as well as nurturing talent.
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Strategic Business Partners – Experienced people professionals who work closely with leaders. Embedded in business units, influencing, steering and implementing business and people strategy.
HR Business Partners work closely with leaders to implement business strategy
What does a good Business Partner look like?
Business partnering is a skilled role that needs a mix of experience, values, capability and knowledge. It’s not suited to everyone.
I’ve seen HR Business Partnering done differently in many organisations and every successful HRBP has a unique set of skills, knowledge and experience.
Business Partner Skills
There are some specific skills that elevate fantastic HRBPs way above the mediocre. A top level HRBP will be able to:
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Quickly establish positive working relationships that deepen over time.
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Work closely with business leaders and/or line managers.
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Lead on complex HR projects with credibility.
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Be change-makers – oozing business culture & values, to shape influence and inspire change.
Business Partner Knowledge
A good HRBP needs to know what they’re talking about and be able to communicate their expertise to others with passion and flair. They will be:
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Embedded in the business, a person ‘in the know’.
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Able to use the tools of the trade – models that support change and organisational design, employee engagement tools and other strategic ‘instruments’.
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Steering and implementing business and people strategy.
Business Partner Experience
An effective HRBP has credibility. It’s not a role well suited to ambition without experience. It works best when a person is:
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A senior and/or experienced people professional, who may have held a leadership role in the past.
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A confident generalist although they may have specialised in the past.
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Familiar with navigating complex people situations, everything from changes and reorganisation to the most challenging grievances, disciplinaries and performance issues.
A top-notch HRBP helps leaders to navigate complexity and change
How do I know if HR Business Partners would work in my organisation?
It doesn’t work in every organisation, it’s not a model that can be bolted on to a very old-fashioned way of managing people.
You need a certain amount of infrastructure and systems in place already for it to work and you need to work at it once you’ve introduced the model.
Making HR Business Partnering work for you will take time, effort and resources
Four key questions you can ask yourself to find out if HR Business Partners could transform your organisation…
As, it’s not a simple ‘yes’ or ‘no’, we’ve helpfully devised four key questions you can ask yourself to figure out whether an HRBP model could benefit your business:
The best HRBPs transform organisational performance and productivity
Question 1 – Do I have clear business strategy or some form of business plan with tangible outcomes, objectives or goals?
This matters because HR need to know how to help teams internally deliver what customers want. True HR business partnering is about enabling your people to achieve their goals and serve your customers better.
Question 2 – Do HR have a seat at the table in top-level decision making?
This is crucial. If your HR Team is not represented at the top level of your business then they’ll never have the opportunity to make the kind of strategic impact you’re going to need.
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In large organisations this means a Chief People Officer or HR Director on the Exec Team or Board.
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In smaller organisations this means a Head of HR or Business Partner reporting directly to either the Chief Executive or Managing Director, or one of the directors of your business.
Question 3 – Do I have the infrastructure to produce good (read that as reliable) data about my people?
This matters because good HR is about evidence-based practice and measuring the impact of our work. As the old saying goes ‘what gets measured gets done’.
Question 4 – Do I care about our high levels of engagement, wellbeing and team morale?
Wait…what…of course I do! This question matters because there’s nothing worse than introducing a modern and mature approach to people management in your organisation, if it’s not aligned with the way you do things.
How did you do…?
If you answered mostly positively, then congratulations, it’s likely that a HR business partnering model will work for you! If you answered mostly negatively, then you probably aren’t ready to introduce HR business partnering just yet…but don’t despair, you can get there.
In a nutshell, if you don’t have a HR Business Partnering model, you’re probably missing-out
The biggest benefit of the HRBP is to create solid connections between your people and your business goals, making sure that all people activities in your business link with what the customer needs.
In short, if a ‘people task’ doesn’t help you achieve your business goals, then don’t do it.
Give me a call if you want to delve further and explore how a HRBP model could work for you.
Don’t know where to start?
I know that HR can sometimes seem like a dark art and the thought of changing to a different way of working can feel overwhelming.
I love working with Exec Teams to improve performance and unleash the potential of their organisations. Who knows what you might achieve?
Give me a call if you want to delve further and explore how a HRBP model could work for you.
Image credits
Images sourced from Canva Pro and are photographers are not individually credited. If you see one of your photos above, please let us know so we can credit you here. Photo of Andrew Knight by Nick Morrish from Nick Morrish Photography
HR myths busted: “Formal annual appraisals are more important than informal check-ins”
There was a time when it would be considered a clear mark of a rubbish employer if there wasn’t a structured yearly appraisal in place. But the modern workplace recognises that a date in the diary once a year, coupled with a fat form to fill in, is nowhere near as effective as regular informal feedback.
Too many businesses conduct annual reviews in a way that is overly formal, creating unnecessary paperwork and ticking a box, without really getting to the heart of the employee’s performance.
Lots of big companies, such as Adobe, have scrapped the yearly appraisal after realising the huge investment in the process often fails to hit the mark.
At Adobe, after a staff consultation, the old performance management system was replaced with check-in discussions at least once a quarter with less paperwork and proper space to review contributions, reward achievements and gather feedback.
It’s a great example, and is starting to be adopted by many forward-thinking companies.
Formal box-ticking appraisals are a barrier to good performance and development
How often should performance be reviewed?
There is no magic formula, but regular and meaningful is a good rule of thumb.
- Don’t save things up for a yearly formal review
- Involve employees in decisions to reprioritise workloads in real time, and explain why it’s necessary.
- Meet monthly for a structured review and if that’s not possible, no less than every six months.
Daily feedback is 6x more likely to be meaningful than annual feedback
How should I be managing and developing performance in my organisation?
- The key to managing performance is open and transparent conversations, where the employee feels in control of their own destiny.
- Both employer and employee know what’s expected of them, what they’re great at, and where they need support. It’s not rocket science, this approach builds engagement, which is better for business.
- Research shows engaged employees generate 43% more revenue than disengaged counterparts. High engagement can also lead to a tripling in profit growth, an 87% reduction in staff turnover and a 20% improvement in performance.
It's not rocket science: higher engagement = improved productivity and performance
What’s the starting point for a new system?
Make sure both the employee and manager are clear about what their performance is being measured against.
You will need:
- A job description that’s real, not aspirational! It should outline responsibilities, and accurately reflect the job that’s being done.
- A clear understanding of what’s expected at work.
- A rock-solid connection between individual goals and the goals of the business.
- With these basics in hand, managers can agree clear objectives and work out with employees how to regularly measure performance.
Have regular conversations to create a high performance culture
What does a good performance review system look like?
A system that’s working well will increase staff moral, engagement and productivity. It will nip problems in the bud by dealing with anything that comes up quickly, and will prevent the company from spending huge chunks of time on the paperwork that traditional annual appraisals generate.
Top tip: use a blend of formal reviews and informal development conversations
How can I design the right approach for me?
- What works for you will depend on your business, there is no one-size fits all, although as a general guide everyone could benefit from creating a process that:
- Reviews energy, engagement, wellbeing, resilience, skills, personal development and priorities.
- Creates a balanced scorecard which measures WHAT’s been achieved and progress made.
- Gathers feedback from colleagues, customers and managers on HOW the employees’ approach their work.
- Outlines goals and commitments …what’s happening next and how will the business support this.
- Moving from a yearly appraisal system to more regular check-ins may be a huge change for your organisation and managers may need lots of additional training and support.
- Managers may need training and support to give regular and meaningful feedback
Organisational wide forms, systems, templates and guidance are a good idea, including making best use of HR self-service and HR systems. Above all, managers need to be self-aware and understand how to tailor their approach to the needs and wants of each team member.
Managers may need training and support to give regular and meaningful feedback
Organisational wide forms, systems, templates and guidance are a good idea, including making best use of HR self-service and HR systems. Above all, managers need to be self-aware and understand how to tailor their approach to the needs and wants of each team member.
Don’t know where to start when it comes to supporting your team through the Cost of Living Crisis?
We are passionate about finding ways to help bosses do the best they can to look after their people.
Some of what we’ve outlined here is simple, but implementing activity that’s targeted to help those that need it most often gets businesses in a pickle. Primarily because they get bogged down about treating all employees the same.
If you need help to work how to support those that need it in a way that’s fair and legal, then please drop us a line. We’d be happy to talk to you.
Does your HR team make things easier or are they getting in the way?
Improve People Management, Reduce Pointless Admin and Get Your HR Team Firing on all Cylinders!
We’ve talked a lot recently about how to spot when things aren’t going well. We’ve covered cultural blindspots, festering grievances and ineffective organisational structures.
In lots of cases these problems emerge because those in charge of managing HR are distracted by other stuff!
From holiday pay and recruitment challenges through to furlough – a busy HR team often gets bogged down with no time to see the big picture. It doesn’t have to be this way!
Changes to company infrastructure and HR systems could revolutionise the capacity of your HR team and make it easier for your organisation to get things done. After all, most (if not all) HR people want to do the best for you, your teams and your customers.
Our job as HR practitioners is to enable you to achieve your goals and objectives
What parts of people management should sit with HR?
This might come as a bit of a shock, but virtually all day-to-day people management decisions should sit with line managers, not HR.
This means everything from 1:1s, performance coaching, recognising achievements, managing attendance, and so on …
Organisations that manage people through a centralised HR department are outdated and often not resourced effectively. Gone are the days of HR making decisions for managers or telling managers what to do.
In modern organisations, it’s HR that enables and managers that manage
Great. But what are HR doing, whilst I’m doing all the people stuff?
It makes more sense for teams to be given the skills and flexibility to manage their people properly.
If you can achieve this, then your HR team will have the time and space to make your organisation function better. There are four things they can do to achieve this (Ulrich model):
Be a Strategic Partner
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This is about the alignment of HR activities and initiatives with your business aims and strategy.
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Strategic partners see beyond the internal function of HR to consider the customer and how best to organise the business to serve their needs.
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It’s usually a job for HR Directors and HR Business Partners.
Be a Change Agent
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An HR team can be instrumental in supporting change that helps the business to achieve its aims.
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It’s not about restructuring for the sake of it.
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The role of HR is to be an expert and trusted adviser, and driver of change activities.
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They should also be able to understand the future skills and talent needed to make any organisational changes a success.
Be an Employee Champion
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Being an employee champion is about doing the best for colleagues, leaders, and customers, it shouldn’t be confused with formal advocacy or trade union activity.
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Good leadership, clear brand values and a solid organisational moral compass will nurture authentic employee champions.
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These people are crucial and act as the conscience of the business, taking care of people at all levels equally, and prioritising ethical and fair business practices.
Be an Administrative Expert
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We don’t mean the world’s fastest touch-typist!
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In the past HR was about writing letters and documents for managers as they ‘couldn’t be trusted’ to do it themselves.
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These days it’s about creating efficient administrative systems, providing user-friendly templates for managers to personalise and most of all, maintaining excellent HR technology that enables people.
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In short, this is where HR can and should, get out of your way.
HR falls down when we focus on one role and not excellence in all areas
How are HR using technology to manage and enable people?
Knowing when to automate processes and when the human touch is still needed, is a key skill for HR leaders.
We all expect on-demand and instant service, from banking apps to self-service tills in stores, HR is no different.
Our colleagues expect to be able to easily make holiday bookings, record appraisal ratings and access their data at the touch of a button.
An HR team that’s nailed being an ‘administrative expert’ will be creating, maintaining, and evolving systems, tools, and technology to serve you better. Remember, a system with even a minimal level of automation can save hours of wasted time and admin that does not add value, freeing-up time for HR teams to add value in other ways.
HR technology can be used to enhance engagement and save valuable time
What is the gold standard for a modern HR team?
Obviously, all organisations are different, but the key is to enable your HR Team to be an integral part of the business, not an afterthought.
HR Teams come in all different shapes and sizes, but the best and most effective HR functions a focused on their customers.
Award-winning HR Teams enable managers and teams to achieve their goals
We’ll give a gold star to any HR team that …
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Puts the customer first – HR is a core support function, so an overhead that you need to get the best value for. HRBPs and HR Directors should be structuring the business to better achieve your customer goals. When you understand what the customer needs you can shape systems and processes accordingly.
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Is a genuine catalyst for change – Top HR teams will ask tough questions about how you’re going to achieve your objectives. This can result in minor adaptations and actions, or major restructures and changes to how the business works. Either way, a top-notch HR team will be help you to manage change effectively and sustainably.
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Empowers others to make change happen! – Your HR team should be the experts at enabling and empowering managers to deliver the business plan for your customers.
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Makes the best use of talent and skill – Specialists specialise and generalists generalise. Wait…what? We’re talking about making the best use of talent, skill, and experience both within your team and elsewhere. Rely on your HRBP to get the best from your HR service and help you achieve your goals, and leave specialists to deliver project work and key goals across the organisation.
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Is totally prepared to say ‘no’ – The best HR teams help leaders to avoid unfocused vanity projects and ad hoc ‘people initiatives’ (so unhelpful) that aren’t linked to a proper strategy or business goals. Empower your HR Team to say ‘no’ to things that will not help to achieve your vision.
How can I achieve HR gold?
Be bold and give more power to the people! If your HR team is micromanaging every person in your business from some ivory tower (or just a bog-standard red brick HQ) have a good think about what they could achieve if they weren’t rubber stamping holiday request forms or typing up appraisals.
There is so much that can be achieved by overhauling outdated systems. Even by introducing one single approval workflow in a business, we saved 1,000 hours of management time over a year.
Give me a call and I’ll explain how even minor changes like this can make a dramatic difference.
I need the help of a HR specialist to transform my HR function
You might not know how or where to start changing things to create extra capacity in your HR Team. You might need an experienced and knowledgeable HR specialist to help you get started and create an action plan.
I love working with HR Teams to release capacity and release their potential. Who knows what they might achieve?
Get in touch for a friendly chat about how I can help.
Image credits
Images sourced from Canva Pro and are photographers are not individually credited. If you see one of your photos above, please let us know so we can credit you here. Photo of Andrew Knight by Nick Morrish from Nick Morrish Photography
HR myths busted: “You can ‘Lift and Shift’ an organisational structure from one business to another”
If you’re looking to make a change, it can be tempting to try and transplant or improve upon an example that has worked brilliantly for another organisation. Amazing examples that get a mention on a podcast, or in a book can be thought-provoking and provide ideas but ‘lifting and shifting’ a design from one organisation to another rarely works, because just like you, your organisation is unique.
Having said that, there are four broad ‘types’ of organisational structure that you may have heard of, which are useful to understand.
‘Lifting and shifting’ an organisation structure rarely works, because your organisation is unique
The Four Organisational Structures
There are four types of organisational structures that can be seen across most organisations: Function, Product, Geography and Customer.
These four archetypes are the building blocks that organisations typically use when they’re (re)designing and (re)structuring their teams.
There are pros and cons to all four structure types and in reality, you’ll probably see a blend of the different types of organisation structure in use in your workplace today.
There are four types (or archetypes) of organisational structure seen in most companies today
- So you’re probably wondering how are the most successful organisations structured?
- What’s the ‘secret sauce’ for a great organisation design?
- Where should I start if I’m thinking about restructuring my teams and my business?
- Which of the four archetypes is most effective?
- Well, that depends on what you’re trying to achieve…
Functional
Functional structures organise and group work together by common activity.
In a functional structure, each function within the organisation is a separate ‘entity’ that is managed vertically by a Head of Function or Chief Officer.
Functional areas are sometimes referred to as “silos”. Communication generally follows the reporting lines (or hierarchy) of each function cross-departmental communication is usually handled by the department heads.
Functional structures organise and group work, and therefore teams, by common activity
- Functional structures work well when you’ve got a single line of business but can be challenging when you grow your product/service portfolio as nobody has end-to-end responsibility for product/service.
- When the work teams do is sufficiently specialised, functional structures can create efficiency and allow teams to focus right in on what they’re great at.
- When communication between departments can only be achieved by sending messages up the ‘chain of command’ to be passed at a senior level and cascaded down in another function, this can create blockages, duplication and barriers to productivity.
Product
Product organisation structures will group work by division, category, sector, or business unit.
In a product or divisional structure, it’s unusual to find any overlap between divisions. Typically, divisional leaders have high levels of autonomy and do not need to coordinate activity with other teams.
This usually means that each division is ‘self-contained’ and has its own resources to support that product line, e.g. its own marketing or product development teams.
Product structures are often organised as ‘self-contained’ and autonomous teams
- Many large corporations and multinationals have a multidivisional format, trading through subsidiaries and using the parent company’s brand name and/or intellectual property.
- Whilst subsidiaries or divisions benefit from the investment in branding by the parent company, it can be challenging to maintain consistency across each ‘self-contained’ or autonomous team.
- Sub-cultures can also be an advantage when well-managed, allowing for inclusion and expression, but can cause damage when allowed to diverge from an organisations core values, purpose, vision and mission.
Geography
Geographic organisation structures will group work by, well, geography!
In a saturated market this might look like an area or regional structure. In new markets, teams may be grouped together by country or territory.
Core products/services may be standardised but geographic teams are empowered to make decisions based on local culture, politics and tastes.
Geographic teams are, well, organised by geography, and usually empowered to make localised decisions
Geographic structures take many forms including satellite offices, websites and offerings tailored to local markets, and area/regional/country/global headquarters. In short, anything to stay close to customers.
Geographically dispersed teams can react more quickly to local events, cultural shits, political changes and the evolving tastes of their customers. Ever noticed that some soft drinks taste sweeter or more bitter in other countries? That’s a great example of a geographic team making a local decision to suit the market, whilst maintaining the core product offering.
Sometimes a geographically distributed team can duplicate resources and effort; I’ve even heard of three teams at one company all working on the same project without anyone realising. Without really top-notch employee engagement and internal communications, the business can end up competing against itself. This has the potential to mix messages for clients, and possibly create waste and inefficiency.
Customer
Customer structures will group work by prioritising the customers’ need for a single point of contact.
It’s fairly common to see customer structures when organisations group activity towards customers with similar buying behaviours.
If you ever meet a sales representative, account manager or customer relationship manager, the chances are that organisation is using a customer structure. It’s nice to know that they’re organised around your needs, eh?
- But a customer structure isn’t just for organisations with a product or service to sell. Many not-for-profit organisations and social enterprises offer services for clients with similar needs
- Having a single point of contact (often through a caseworker, community officer or advice service) means that customers have consistent contact with someone who can help them with everything. It’s a one-stop-shop built around the needs of the client.
- There are drawbacks to customer structures, particularly if the relationship deals with sensitive issues, such as social support services or relationships with vulnerable clients. The customer often sees the person delivering services as ‘the company’ and any changing of the guard can often have a negative impact on clients.
Customer structures organise teams by the need for a ‘single point of contact’ or common buying behaviours
- Many healthcare professionals also operate within a customer structure, e.g. your local GP. When you see a make an appointment at your local health clinic, you’re getting access to a range of general healthcare options via a single point of contact. Specialist care is provided elsewhere and referrals are based on ‘customer’ need.
- On one hand the customer structure enables a necessary triage and diagnostic service, on the other hand it creates a blockage and potential ‘gatekeeper’ for patients to ‘satisfy’ before accessing other services.
- Human nature being what it is, if you can’t get to your GP or indeed if you don’t want to wait for an appointment, it’s tempting to work around the triage system and use another access point (in this case, A&E).
- Perceived inflexibilities for service delivery and issues with capacity, ultimately result in pressure elsewhere in the organisation. Great communication and prudent capacity management are key.
Don’t know where to start when it comes to supporting your team through the Cost of Living Crisis?
We are passionate about finding ways to help bosses do the best they can to look after their people.
Some of what we’ve outlined here is simple, but implementing activity that’s targeted to help those that need it most often gets businesses in a pickle. Primarily because they get bogged down about treating all employees the same.
If you need help to work how to support those that need it in a way that’s fair and legal, then please drop us a line. We’d be happy to talk to you.
Mergers and Acquisitions: How to Spot and Avoid Culture Clashes
There are rules for all the legal bits of a merger or acquisition process, yet there is no bible or handy instruction manual for the successful transfer or integration of company culture.
What is workplace culture?
There is no magic formula, but regular and meaningful is a good rule of thumb.
Workplace culture is your way of doing things, your approach and style of business. It’s the difference between ‘my door’s always open’ and ‘make an appointment with my PA’. It’s often tricky to explain but culture manifests itself through leadership style, how you treat your customers and colleagues, and the diversity of your workforce.
Culture can be seen in your people, personality, structure, purpose and values.
How can culture impact M&A?
An unforeseen culture clash creates an uncomfortable, disengaged work force.
If people don’t understand the values and objectives of the newly merged business they will quickly retreat into the familiarity of the old. This can slow down the integration of departments and operational systems. It also compromises customer service and sales if frontline colleagues don’t understand what kind of messages they should be communicating.
Every successful merger and acquisition has a plan to retain key talent and avoid an exodus
- Everyone’s talking about the great resignation at the moment, so it’s more important then ever before to have a plan for engagement, talent and culture. Especially if your acquiring a business or merging two organisations together.
How can I assess the culture of my acquisition?
It might be tricky to really get under the bonnet of your acquisition in advance of the legal transfer date. Certain information around TUPE, finances, compliance and commercial integration, are accessible. But when it comes to engagement and culture, you’re not going to be able to hover around the water cooler or join a team meeting to gather intel!
If you’re using an independent HR consultant to help you navigate the legal aspects of your merger or acquisition this can also be a great way to assess potential pain points and plan for the challenges ahead. An independent person may gain more access to the company being acquired and can help you learn more about the people you’re bringing in.
What clients say about our approach to M&A
“He did all the detail but he was also great at creating relationships. So whilst we were getting all the paperwork and legal stuff in place, he worked really closely with the individuals that were going to come into the business to build trust with them.”
Heyley Selway
Chief Executive, CCHA
“Studies from the Queens School of Business and the Gallup Organization showed that organizations with low employee engagement scores experienced 18% lower productivity, 16% lower profitability, 37% lower job growth, and 65% lower share price over time.”
Emma Seppälä & Kim Cameron
Harvard Business Review
Why does culture matter?
Clearly defined culture is a sign of a positive, engaged workforce, which means exceptional customer service, confident sales and marketing, increased productivity, reduced staff turnover and a better share price. Why? Because when everyone is working towards a shared vision your people are an amazing asset. When they don’t feel part of the bigger picture they switch off, and can do some serious damage.
Try to understand what the cultural differences are between the old and new company. Nip any opportunity for a ‘them and us’ dialogue to take hold with a clear communication plan that’s put into action pronto!
An engaged workforce is more profitable – can you afford not to think about culture?
Do leaders know how to promote positive culture?
If people are used to being managed in a certain way it can be deeply unsettling when a new regime comes along. One of the best ways to establish your organisation’s culture and ethos early on, is for management to get out on the shop floor and talk to people.
As a minimum, you should plan on hosting a Welcome Meeting where you can meet your new colleagues and tell them a bit about you and the new company. You can do more. Whether it’s a staff conference, video message, virtual event or just chatting informally to teams or individuals, nothing reassures people more than a boss that takes the time to listen.
As well giving people practical, operational information about how the business will look in the future it’s a great opportunity to gain insight into how people are feeling about the change.
A Welcome Meeting is a ‘must do’ when it comes to mergers and acquisitions
- Working out a change management plan in advance can give leaders structure and focus as they communicate their vision to employees old and new.
- This doesn’t come instinctively to everyone. You might be a sector-leading professional, with a multi-million pound business but actually have no idea how to inspire your workforce. Or you might just be shy! Use leadership coaching to help you articulate why the business matters and what your aspirations for the future are.
- It will help your team understand the right way of doing things and in times of pressure and stress they will feel confident about what you and the organisation stand for and which behaviours are unacceptable.
How can I take people with me?
As you plan for the future, consider the composition of your workforce.
If your organisation is office-based and you’re acquiring a business that works out in the field, how will you make those people feel welcome and avoid a two-tier workforce? Your ways of working and communicating historically may not suit your new colleagues. Sending an internal newsletter once a week via email is no good if half the business don’t sit at a desk (or have a smartphone).
As you move forward, find communication channels that work, so you can keep people informed, feeling part of the same team and contributing to your business goals.
Communicate in new ways to reach colleagues at all levels during and following an acquisition
- Ultimately it’s people that make the organisation tick, so make sure your people soak up the right information, so they’re able to perform in the way you want them to.
Don’t know where to start when it comes to supporting your team through the Cost of Living Crisis?
We are passionate about finding ways to help bosses do the best they can to look after their people.
Some of what we’ve outlined here is simple, but implementing activity that’s targeted to help those that need it most often gets businesses in a pickle. Primarily because they get bogged down about treating all employees the same.
If you need help to work how to support those that need it in a way that’s fair and legal, then please drop us a line. We’d be happy to talk to you.
How to put people at the heart of company decision making
Introducing a HR strategy that automates simple tasks and frees up time to focus on building a positive, people-focused company culture
- There are many misconceptions about the role of HR, which are often driven by a lack of visibility.
- When managers take accountability for people tasks that were traditionally considered part of the personnel function, it’s often seen as an indicator of good leadership; a sign that the people at the top of the company communicate well with their team. In many instances, there’s not always a need to call on HR to settle issues surrounding things like contracts, training, appraisals or bonuses.
- It’s more common to call on HR when a more technical or complicated people-related issue comes up. For example, when there’s uncertainty around regulatory or legal requirements surrounding employment, HR may be brought into the conversation as subject matter experts.
Misconceptions about HR are driven by a lack of visibility.
- A natural downside to this way of working is that many employees will only ever come across a HR professional when they’re being interviewed, or having to go through some sort of formal performance management or disciplinary process. This means that HR is sometimes seen as the department of ‘hiring and firing’, or that the ‘H’ in HR stands for anything other than human.
- I believe there’s a better way to approach the integration of HR in organisations: one that still allows leaders to stay connected with the people in their teams while placing the focus on core company values to better care for both colleagues and customers
- HR is the custodian of fairness, equality and inclusion in any business. This means that they’ll put systems and processes in place to make sure that you’re not discriminated against. You may not see them at any point during the selection process, but if you’re treated with dignity and respect, we’ve done our job right.
How should I be managing and developing performance in my organisation?
- The key to managing performance is open and transparent conversations, where the employee feels in control of their own destiny.
- Both employer and employee know what’s expected of them, what they’re great at, and where they need support. It’s not rocket science, this approach builds engagement, which is better for business.
- Research shows engaged employees generate 43% more revenue than disengaged counterparts. High engagement can also lead to a tripling in profit growth, an 87% reduction in staff turnover and a 20% improvement in performance.
Why quick fixes aren’t enough
- There’s no question that many businesses set out to do the right thing. Leaders often strive to live and breathe the core values of the companies they run, so that their actions, behaviours and decisions are consistent with these values and their organisation’s overall purpose.
- Some of the ‘quick fixes’ that businesses choose to demonstrate that they value their people and communities include:
- Flexible reward and recognition schemes
- Paying at least the living wage
- Developing a pipeline of leaders within the business
- Reinvesting profits in community investment schemes to demonstrate social value
Quick fixes won’t create a lasting and positive culture
- While these actions are all commendable, there are wider and more strategic decisions that can be taken to create a lasting and positive culture. This is where a dedicated HR expert can help.
A new model for HR
- Executives, directors, boards, business owners and leaders might consider moving from the Ulrich model (where HR is separated into roles such as employee champion, change agent, strategic partner and administrative expert) to a more evolved HR network model – one that builds on the success of existing business partnering relationships.
- Nowadays the majority of service centre work can be dealt with via automated workflows, AI, chatbots and self-service apps, allowing people to take care of admin tasks themselves. This means that tasks like managing annual leave balances, recording absences and related documentation or making basic queries about salary payments no longer require the resources they once did.
The team that previously would have managed such tasks will now be free to manage self-service platforms and related processes. In larger organisations, personalising and tailoring these platforms to the needs of the people who use them can be achieved without sacrificing efficiency or compliance.
HR needs to change. It’s time to focus on ‘people not process’
Meanwhile, HR project teams can act as internal consultants, focusing on work that is directly informed by the company’s people strategy. Their expertise can call upon a blend of internal and external resources, with subject matter experts working on important strategic areas of work such as:
- Organisational development
- Organisation design
- Diversity and inclusion
- Rewards
By following a model like this, HR becomes a network of change, engagement and influence. Your people team becomes a key part of wider business decision making, blurring the traditional boundaries of HR and putting people at the very heart of what the company does.
HR networks are excellent at building and growing relationships, managing change and engagement and work to achieve the wider strategy goals. When you consider all this, it seems natural to include HR in your decision making process.
Don’t know where to start when it comes to supporting your team through the Cost of Living Crisis?
We are passionate about finding ways to help bosses do the best they can to look after their people.
Some of what we’ve outlined here is simple, but implementing activity that’s targeted to help those that need it most often gets businesses in a pickle. Primarily because they get bogged down about treating all employees the same.
If you need help to work how to support those that need it in a way that’s fair and legal, then please drop us a line. We’d be happy to talk to you.
Build a pandemic-proof business in 2021
The coronavirus pandemic has affected us all in ways we’d have struggled to imagine when 2020 rolled around. If you run a business that has shifted from a face-to-face business model to a blended or virtual offering, the challenges and opportunities you face could leave you feeling all sorts of things: nervous, overwhelmed, uncertain and exhausted, to name just a few.
Now that we’re almost a year into the pandemic, it’s worth considering what the future of your business will look like on the other side of lockdown. If you’re not sure where to start, a HR consultant can help you to reengage with your team, identify the people challenges your business may face in the ‘new normal’ and develop your workforce to make the most of growth and development opportunities.
From leading teams remotely to keeping sight of your long-term business vision, here are some of the ways I’ve helped companies and individuals adapt and succeed during the pandemic.
Let your team hear your voice and see your face
Senior teams should be empowered to lead on operational matters and day-to-day issues. Try to create space and time for your team to look after your customers and to take ownership of their projects. This will release your time to focus on strategic matters, whether it’s the marketing plan for a post-vaccinated world or a new treasury strategy to take advantage of record-low interest rates.
Virtual leadership in the age of COVID-19
Leading a team remotely feels very different to managing a group of people in an office. Yet the core principles remain the same: to keep communication clear and open, inspire trust and get the best from the people you work with.
Keep information flowing and regularly share feedback
- It’s more important than ever to talk to your team regularly about how the business is performing. Involving colleagues in this process (for example, by asking what customers have been saying or encouraging individuals to explain what’s working well for them) can result in a more collaborative conversation where people feel valued and inspired to do well on behalf of the team.
Rebuilding with vision
What should leaders be focused on as they rebuild their businesses following the pandemic? The most important thing is to stick to your core values: making decisions, taking action and behaving in a way that reflects the ethos and character of your company.
Empower others and create space for yourself
- It’s more important than ever to talk to your team regularly about how the business is performing. Involving colleagues in this process (for example, by asking what customers have been saying or encouraging individuals to explain what’s working well for them) can result in a more collaborative conversation where people feel valued and inspired to do well on behalf of the team.
Stay focussed on your long term plans
- As well as keeping up momentum in the short term, it’s important to stay focused on long-term plans. You may need to recalibrate (and that’s OK) but don’t lose sight of your vision. Don’t forget to keep talking about it: clearly communicating your vision and plans to your team while engaging them in your COVID recovery plans will show clear and reassuring leadership as everyone recovers from the crisis.
Champion safety and wellbeing at work
- Above all, prioritise the safety and wellbeing of your workforce, your customers, your partners and stakeholders. People will always remember how you made them feel – you want that feeling to be safe, positive and reassuring.
Supporting your business through organisational change
- Economic and societal change are two of the big drivers for organisational change. COVID-19 has triggered both, making now an ideal time to consider how your organisation can adapt to meet the challenges and embrace the opportunities of 2021 and beyond.
- Working with an organisational change consultant will help to ensure that you make the most of the process. I’m passionate about helping my clients to optimise their organisations and meet whatever challenges come their way; getting to know the specific challenges your business is facing before coming up with smart, long-lasting solutions that are tailored to your company.
Don’t know where to start when it comes to supporting your team through the Cost of Living Crisis?
We are passionate about finding ways to help bosses do the best they can to look after their people.
Some of what we’ve outlined here is simple, but implementing activity that’s targeted to help those that need it most often gets businesses in a pickle. Primarily because they get bogged down about treating all employees the same.
If you need help to work how to support those that need it in a way that’s fair and legal, then please drop us a line. We’d be happy to talk to you.
People, not personnel: the evolving role of HR in modern businesses
From keeping things legal to boosting productivity, HR has come a long way since the personnel departments of years gone by
Imagine a time when offices were filled with cigarette smoke and rows of typists. At the end of the corridor, there’s an office with a big leather chair for the boss. You’re probably thinking of the 1960s and 70s right now, maybe Mad Men (the AMC TV Show) – hopefully not your most recent job at a contact centre!
Somewhere in this imaginary retro office, there’s a personnel department. While they’re responsible for keeping basic admin records about the workforce, the personnel administrators and managers definitely don’t have a seat at the table when it comes to making business-wide decisions.
Now let’s fast-forward to the third decade of the 21st century. Most of us want to forget 2020 – the working from home, the lay-offs, the closures and redundancies, learning how to lead a team remotely while keeping everyone engaged and happy.
The personnel department from yesteryear wouldn’t have been involved in this kind of thing, but luckily we’ve moved on a bit since then. These days we have people teams instead of personnel departments, and they’re here to help your business and its workforce remain productive and satisfied no matter what the future has in store.
People and personnel: what’s the difference?
The term personnel is a bit old hat now, but for a long time it was the foundation for the way that businesses handled issues within their staff. Personnel departments traditionally fulfilled an administrative role, and were limited in their ability to create a positive culture within the workplace.
But workplaces have changed a lot in the last 50 years, from the organisational systems we use to the role of leadership within companies. What used to be the personnel department has evolved to meet the needs of modern businesses: it’s now more common to hear about people teams, who act as partners with your business and help leaders to make decisions that will benefit both businesses and the people who work for them.
People teams use consumer-standard technology to automate low-value admin tasks, which gives them more time to spend with business leaders. Unlike the personnel department heads of years gone by, people directors often have a seat at the top table, guiding leaders and supporting the business to make sustainable decisions. Their teams are involved in a number of key business roles: recruitment and onboarding, designing and evaluating training, developing a strong pipeline of talented workers, and tackling some of the most significant issues your business will ever face (like a global pandemic, for example).
Enabling, not just enforcing
Of course, people teams also have the important role of managing risk in an organisation and ensuring that the legal aspects of employment are dealt with in an ethical and lawful way. Some of the tasks your HR or people team will take care of include:
Pre-employment checks
so you don’t employ anyone inappropriate or in a way that would breach legislation. (This is going to become even more important as the Brexit transition period ends and the UK immigration rules change on 1st January 2021.)
Championing integrity in the workplace
many businesses commission third parties to host their confidential disclosure hotlines so that employees and suppliers can report wrongdoing or corruption in confidence. When a report is made, people teams deal with them sensitively and swiftly to protect your business.
Managing complex grievance, absence and disciplinary matters
so you don’t break the law when it comes to dealing with tricky issues.
Restructuring
your business won’t look the same in 10 years as it does now. People teams will help you to design a sustainable structure and navigate your way through the restructure process
The right HR consultant for your business
As you can see, there’s a lot that a dedicated people team or consultant can help your business with. To learn more about the role I play for businesses as an independent HR practitioner, take a look at the services I offer, or get in touch for a friendly chat.
Image credits
The cast of Mad Men (AMC)
Typewriter photo by Min An from Pexels
Photo of Andrew Knight by Nick Morrish from Nick Morrish Photography