Category Archives: change management

Should HR Merge with RE?

Google and Facebook are both known for their innovative workplace policies on everything from hiring to parental leave.

A new post on JLL, however, offers those two organizations as a model for something else entirely: blending an organization’s HR and corporate real estate functions.

Google is already known for turning established thinking on its head when it comes to workplace design and policies, says Marie Puybaraud, global head of workplace research at JLL. “Its new £1 billion London campus features sports facilities some gyms can only dream of with a rooftop running track and a half Olympic sized swimming pool which act as a prime attraction for recruiting new talent, not to mention retaining existing employees.”

“Google’s high-end facilities are a physical demonstration that the organization is focused on looking after its staff,” continues Puybaraud. “Job-seekers will start to see such facilities as a benchmark —and all employers will put greater thought into how they use the quality of life at work as a way or recruiting and motivating staff.”

Meanwhile, the piece notes, Facebook’s new corporate village will include 1,500 apartments as well as a grocery store and offices. “The company is using its physical facilities to provide for its staff in ways which clearly go far deeper than the normal working relationship,” explains Puybaraud. “It is only when Real Estate and HR work seamlessly together that they can deliver such projects.”

Indeed, real estate teams suggesting such recreational facilities may well struggle to get them past the board without the backing of their HR colleagues. Equally, HR teams may be looking for new ways to increase engagement among staff yet may struggle with the practicalities of developing ambitious plans that require a rethink of current office space while working in a silo.

According to Puybaraud, if an organization’s workers are more engaged and fulfilled at work, they’re more likely to develop better relationships with colleagues and put more into their work. For companies, it equates to better productivity and lower turnover of staff., which is a key reason why more companies will merge their HR and Real Estate teams in the coming years.

“More businesses will realize how closely productivity follows on from deep level employee satisfaction,” Puybaraud says. “We predict that joint HR / Real Estate teams will be commonplace within a decade.”

Is your organization planning on merging HR with its real-estate functions? If so, we’d love to hear from you about the challenges and benefits of such a move.

This Just In: Change is Awful

The saying goes that “change is inevitable.” But when it comes to the workplace, Americans would rather have none of it, according to the results of a brand-new survey from the American Psychological Association.

Employees in the U.S. who’ve been affected by change at work are more likely to report chronic work stress, less likely to trust their employer and more likely to say they plan to leave the organization within the next year compared to those who haven’t been affected by organizational change, according to the APA’s 2017 Work and Well-Being Survey, which is based on responses from 1,500 U.S. adults and was conducted on behalf of the APA by Harris Poll in March.

Half of American workers report having been affected by organizational change within the last year, are currently being affected by such change or expect to be affected by it within the next year, the survey finds. Workers experiencing recent or current change were more than twice as likely to report chronic work stress compared with employees who reported no recent, current or anticipated change (55 percent vs. 22 percent), and more than four times as likely to report experiencing physical health symptoms at work (34 percent vs. 8 percent).

Workers reporting recent or current change also were much more likely than other respondents to say they experienced work/life conflict and felt cynical and negative toward others during the workday (35 percent vs. 11 percent) and ate or smoked more during the workday than they did outside of work (29 percent vs. 8 percent).

There’s plenty more in the survey results, much of it dispiriting and depressing. The upshot seems to be that too many U.S. workplaces appear to be afflicted with leaders who’ve adopted a “do as I say, not as I do” mentality. However, this article that ran in McKinsey Quarterly a number of years ago (published by the consulting powerhouse McKinsey) offers some interesting food for thought that holds true today. One of its important points, as you may already know, is that people need to understand the point of change–why something is being changed, their role in helping the change succeed and how all of it will lead to better conditions for both themselves and the larger organization. The theme is that while change may be inevitable, the negative side effects shouldn’t be and don’t have to be.

 

Report: HR is ‘Behind the Curve’

New research from the Hackett Group finds that many HR departments are lagging when it comes to helping their organizations deal with talent shortages in key areas, and — due to a lack of resources — sufficient progress likely won’t be made anytime soon.

The report, The CHRO Agenda: An Urgent Need to Close Large Gaps in Talent and Technology Capabilities (registration required), is based on survey results from executives at 180 large U.S. and foreign companies, most with annual revenue of $1 billion or more. It finds that HR at many organizations lacks the ability to fully support key enterprise goals such as adapting talent-management strategies and processes to deal with changing business needs, address talent shortages in critical areas, manage change more effectively and develop agile executives fully capable of leading in a volatile business environment.

HR leaders at these companies don’t suffer from a lack of ambition: The report finds that they’re planning to address issues such as talent-related change and strengthening their organizations’ HR tech and information capabilities and organizational structure and processes. However, their departments are held back by limited resources, with the number of full-time equivalent HR employees expected to decline by 1.4 percent this year on top of a decline of 1.3 percent last year and budgets that are projected to decrease by an average of 1.6 percent, compared to a reduction of 0.3 percent in 2016.

“The consistent finding here is that most HR organizations are simply too busy fighting fires to get out in front on strategic issues,” says Harry Osle, Hackett’s global HR advisory leader. “In many cases, they are in reactive mode, with too much on their plates and an inability to say no to work that does not allow HR to become more strategic.”

HR must change this mindset if it’s ever going to deliver strategic value, he says. “To build a true leadership position within the organization, it is essential that HR find ways to more effectively manage and prioritize its service portfolio, adopt proactive demand management techniques from IT and make headway on transformation and improvement in key talent areas.”

Hackett finds that HR organizations are planning to “dramatically increase” their mainstream adoption efforts in several digital technology areas, including cloud applications and Software-as-a-Service, social media and collaboration technologies and advanced analytics.

The End of Telecommuting?

For many IBM employees, telecommuting will soon be a distant memory.

“Disrupt” is a catchy term in business these days, especially in the technology industry. Now one of the nation’s oldest and most prominent technology companies is disrupting what had become a common method of working for many of its employees: Thousands of IBM employees who telecommute are being called back to the office, and those who can’t or are unwilling to will be expected to find employment elsewhere.

Big Blue’s U.S. marketing department is the latest unit at IBM to announce that employees will now be “co-located” in central offices rather than working from home or in remote locations. The department, comprised of 2,600 employees, will now consist of teams working together at one of six offices located in Boston, New York, Raleigh, Atlanta, Austin and San Francisco.

Ironically enough, IBM was a pioneer in the telecommuting revolution, as noted in a story in Quartz. As recently as 2009, writes author Sarah Kessler, 40 percent of the company’s 386,000 global employees worked at home. When IBM acquired start-ups, the employees at those companies were allowed to continue working in their original locations rather than moving to central IBM offices.

Michelle Peluso, IBM’s chief marketing officer, tells Kessler that the benefits of employees working together in the same offices include “speed, agility, creativity and true learning experiences within your team.” “When you’re playing phone tag with someone is quite different than when you’re sitting next to someone and can pop up behind them and ask them a question,” she said.

Kessler cites studies showing a “water cooler effect” that arises from people working together in the same location — informal interactions that can lead to the sharing of ideas and more collaboration. CEOs such as Steve Jobs were big fans of co-location. Jobs, in fact, was so obsessed with the benefits that arise from unplanned meetings between coworkers that he wanted to place the bathrooms at Pixar’s headquarters in just one section of the building to increase the likelihood of those serendipitious interactions, Kessler writes.

IBM is struggling to reinvent itself, she writes, as the rise of cloud computing forces it and other large technology companies to rethink their business strategy. Its leaders believe having employees work together instead of remotely will better enable the sort of collaboration and increased productivity that’s desperately needed.

Of course, coworking has proven not to be a panacea for troubled companies in the past — just look at Yahoo, where CEO Marissa Mayer announced back in 2013 that telecommuting would no longer be allowed. Yahoo recently sold itself to Verizon for a tiny, tiny fraction of what it was once worth. Many IBM employees are distraught by the new arrangement: “Everyone I know is very upset,” one employee tells Kessler.

Other employees think co-location is an improvement over teleworking. “I think that getting everyone in a room, hashing it out, throwing it up on a whiteboard is my preference rather than doing share screens,” an employee tells Kessler. “People pay attention so much less when on the phone.”

That employee, however, is choosing to quit rather than make the move, Kessler writes.

A Three-Prong Approach for Transforming HR

If there ever was any doubt that HR is now at a pivotal moment in its evolution, Ryan Estis tried his best to put them to rest in his Monday Master Session titled “Rethinking HR: The Future of Work” at SHRM 2016.

Changes Ahead
Changes Ahead

Estis, chief experience officer for Ryan Estis & Associates in Minneapolis and a regular presenter at SHRM, told a packed room of attendees that the HR profession is at an important “inflexion point.” As the world of work continues to change, he said, HR professionals are going to need to transform the way they go about performing their jobs.

Specifically, Estis served up three key principles HR practitioners need to keep top of mind.

No. 1: The profession needs to undergo continuous reinvention. “It’s our opportunity to play offense and be a disruptor,” he said. To successfully contribute to their organizations, he explained, HR leaders have to step out of their comfort zone and try new approaches.

“I personally try to force myself to stay in my learning lane,” he said, noting that every day he asks himself if “I’ve done something today that made me uncomfortable?” and whether or not “I’m making progress and improving?”

People resist change because they’re afraid to fail, he said, adding that “the antidote for curing that problem is to take action,” he said.

Estis specifically cited Adobe’s decision a few years back to eliminate its performance-appraisal system as an excellent example of how HR was able step out of its comfort zone to fix a process that everyone agreed was broken. “Leaders hated it and employees hated it,” he said. “So they got rid of it and replaced it with what they call Check-ins, where employees have conversations with their managers.”

(Estis referred attendees to HRE’s July 2013 cover story titled “Rethinking the Review,” featuring Adobe Senior Vice President of People Resources Donna Morris on the cover.)

No. 2: HR needs to deliver from a position of influence. “You have to inspire other people to champion initiatives,” he said. “You can’t do it alone.”

The best leaders are the best listeners, he added.

Estis told those in the audience they need to be able to have the courage to attack old ways of doing things and be willing to challenge leadership.

Further, he said, HR must develop a digital mind-set if it expects to be relevant.

No. 3: Be a culture champion and a catalyst of change, he said. Employers with breakthroughs have great cultures, he said, referencing Mayo Clinic (another client of his) as an example of an organization that has built a culture that has resulted in a highly engaged and loyal workforce.

At the Mayo Clinic, he explained, every employee, even those who don’t have jobs in which they interact directly with patients, embrace the organization’s core value of “putting the needs of the patient first.”

In employee focus groups, he said, each and every employee who took part fully understood the role they play in actualizing that value.

Harnessing the Power of Vulnerability

Many HR leaders — along with leaders of every stripe — tend to view vulnerability as a weakness, and strive to “engineer it out” of their organizations. This is a mistake, according to author, consultant and University of Houston research professor Brené Brown, who delivered a keynote address at the Indeed Interactive conference in Austin, Tex. today on “Vulnerability and Workplace Transformation.”

Far from being a weakness, vulnerability can be a source of strength, power and innovation if people understand how to use it properly, said Brown, who’s spent the past 13 years of her career studying vulnerability, shame, courage and worthiness. Leaders who have an honest understanding of their own vulnerability, and who are comfortable displaying it during critical moments, are better equipped to lead and inspire other employees, she said.

Brown, whose TED Talk on The Power of Vulnerability in 2010 became the fifth most-viewed TED Talk ever, cited her own experience in the wake of the talk’s popularity as instructive. Although it garnered more than 25 million views, the video also attracted some nasty comments from online viewers denigrating Brown’s appearance.  The anonymous comments included suggestions that Brown get Botox injections for her wrinkles and “If I looked like that, I’d feel vulnerable, too.”

Feeling traumatized, Brown compensated by “binge-watching Downton Abbey and eating lots of peanut butter.” But while watching the iconic British drama, she researched who was U.S. president at the time, and came across a speech excerpt by Teddy Roosevelt that inspired her:

It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly;  …  who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat. 

Roosevelt’s words not only helped Brown put the comments in perspective, but inspired the title of her 2012 book, Daring Greatly: How the Courage to Be Vulnerable Transforms the Way We Live, Love, Parent and Lead.

“If you’re not in the arena, being brave and getting your ass kicked, then I have no interest in your feedback,” she said. “The world is filled with cheap seats, with people who hide behind anonymous comments and never get in the arena.”

Feeling vulnerable often leads people to try and compensate in ways that aren’t always helpful and, in some cases, damaging. She cited a brief disagreement with her husband that could’ve turned ugly had she not applied her own lessons in being aware of and mastering one’s vulnerability.

“Emotions drive our responses to tough things,” said Brown. “We tell ourselves stories about things that are happening and we get a reward from our brain that makes us feel better, even if the story isn’t accurate.”

However, vulnerability is not only the source of shame, fear and anxiety but also of love, belonging and joy, she said. It’s also the source of courage, empathy, trust, innovation, creativity, accountability and adoptability.

“If you foster a culture in your organization that doesn’t allow for vulnerability, then do not expect people to take risks and innovate,” said Brown. “If you don’t understand vulnerability, you cannot manage and lead people.”

Of course, leaders can’t display vulnerability in every situation, she said, citing the CEO of a start-up who told her he’d decided to share his vulnerability by going public with his feelings of being in over his head and having no idea what he was doing. “People who invested money in your company obviously aren’t going to want to hear that,” said Brown. “But if people sense that you’ll reach out for help when you need it, rather than not saying anything and continuing to plug along, that’s OK.”

The ability to be honest about what you don’t know or are uncertain of is a strength, not a weakness, said Brown.

“To be alive is to be vulnerable,” she said. “To be a leader is to be vulnerable every moment of every day.”

Mercer: People Risks Can Undermine Mergers

Last year saw a veritable “merger tsunami,” including health-insurance giant Anthem’s proposed $47 billion acquisition of rival Cigna Corp., chemical giants Dow and DuPont becoming one and Dell’s announcement that it would acquire EMC. The trend is expected to continue through 2016, as low interest rates and volatile capital markets spur companies to grow via mergers and acquisitions.

A failure to address people issues can lead to a merger's unraveling.
Failing to address people issues may lead to a merger’s unraveling.

Mergers can and do go wrong, however, and one of the most volatile components are the people, especially the talented and experienced ones necessary for making it work in the first place. This risk is magnified when the necessary planning for employee retention, cultural integration, leadership assessment and compensation/benefits is given short shrift. However, in its first-ever People Risks in M&A Transactions report, Mercer finds that corporate leaders are being given less time than ever to properly address these risks.

The report finds that 41 percent of buyers report less time to complete due diligence compared to three years ago, while 33 percent say sellers are providing less information about assets for sale. Notably, more than one-third of sellers (34 percent) say more and more of their divestment resources are needed to address HR issues.

For buyers and sellers alike, a plan for clear and consistent communication is necessary for minimizing disruption, says Mercer. Beyond that, the companies doing the buying should use skills inventories and competency assessments to gauge the capabilities of leadership teams and key employees on factors such as their ability to govern, lead people and drive cultural change.

Buyers also need to “adopt an enterprise or global view” to effectively manage benefits, the report finds, and develop effective retention strategies for key stakeholder groups beyond the executive team during and after the transaction.

Sellers also need to identify critical employee groups and consider a retention program, says Mercer, and document a clear talent management/staffing plan to establish the infrastructure of the entity being sold and determine which employees will stay and which will join the new organization.

“The people risks highlighted in our report are clearly part of our conversations with the deal community here in the [United States],” says Mercer’s Chuck Moritt, North American multinational client leader. “The good news is that both buyers and sellers are fully realizing the urgent need to address them in a thorough and thoughtful manner.”

Study: Core HR is Moving to the Cloud

In the early days of the Cloud, some predicted that while certain HR functions — talent acquisition, for example — would be well-suited for the medium, security concerns and the desire for customization (especially among large companies) meant that core HR functions would continue to reside in on-premise solutions. That’s turned out not to be the case, as evidenced by PwC’s latest Annual HR Technology Survey, which finds that 44 percent of organizatiCloud illustrationons have moved their core HR functions to the Cloud (aka Software as a Service) and an additional 30 percent plan to do so within the next one to three years.

“Moving HR to the Cloud is a question of when, not if,” says Dan Staley, a PwC principal who leads the HR technology practice.

For many organizations, however, the move has included some turbulence: More than half of the 650 companies surveyed say their organization’s “lack of readiness to give up customization and embrace the SaaS mindset” was a major stumbling block during implementation.

“Letting go of customization causes some angst for companies — they think they can do everything that they could do with their old, customized on-premise software but then find out they can’t,” says Staley.

The comparatively rapid pace of SaaS updates — patches that are released every month, new releases every six months — also takes some getting used to for organizations accustomed to on-premise updates that took place every three to four years, he says.

The study also finds that although transitioning to the Cloud makes it easier organizations to deploy mobile solutions — primarily because many Cloud vendors offer robust mobile apps to go along with their products, says Staley — many companies are failing to realize mobile’s full HR potential. For example, although 59 percent of respondents say it would be beneficial for managers and employees to use their mobile devices for performance feedback, only 18 percent of companies actually use mobile for their performance-management processes.

“Mobile is being more widely used, but organizations have got to take a ‘why not mobile’ approach to most of what they do — the capabilities are there, but they have to deploy it,” says Staley. “It hasn’t happened as quickly as it needs to.”

HR departments have moved relatively quickly in embracing mobile, he says. Two years ago, only 30 percent of survey respondents said they utilized mobile for HR-related tasks; this year’s survey finds that 70 percent do. Still, says Staley, much of that includes transactional work such as workflow and timesheet approval.

Companies have also failed to devote the necessary resources for taking full advantage of data analytics — even though they consistently say it’s very important to them, says Staley.

“I’m a little surprised — organizations prioritize analytics, but we found that 52 percent don’t have a dedicated HR analytics team and 44 percent don’t have an HR analytics strategy,” he says. “They desperately want the insights from predictive analytics but aren’t doing what they need to do to get there.”

Rise of the Intelligent Machines

“Smart machines,” aka cognitive computing systems such as IBM’s Watson, robots and other systems incorporating artificial intelligence, could profoundly change the workplace. Researchers at Oxford University, for example, predict that 47 percent of U.S. occupations could be automated within 20 years thanks to smart machines.

Most managers are excited about the prospect of smart machines: 87 percent told Accenture that these smart systems will make them more effective and their work more interesting. About one-third, however, fear that these systems will threaten their job, according to the Accenture study. The study, titled Managers and Machines, Unite!, is based on a survey that queried 1,700 managers in front-line, middle and C-suite levels at organizations in 14 countries on their attitudes and expectations regarding cognitive computing’s impact on their job roles and skills.

The managers said they spend the bulk of their workday on planning and coordinating work (81 percent), followed by problem-solving and handling exceptions (65 percent), monitoring and reporting performance (52 percent) and maintaining routines and standards (51 percent). The study’s authors, Accenture’s David Smith and Bob Thomas, write that intelligent machines can take on much of these tasks, freeing up managers for “judgment work” such as complex thinking and higher-order reasoning.

However, managers in certain industries tend to regard these systems with more trepidation than enthusiasm, largely because of the potential threat to their jobs. Managers in the electronics and high-tech industries are most concerned (50 percent), followed by 49 percent of banking managers, 42 percent of airline managers and 41 percent of retail managers.

The study’s authors urge company leaders to address managers’ fears and concerns, explain to them the benefits of these systems and how they work, and counsel managers on developing the skills that will continue to be important. Indeed, the survey found that managers prioritize skills such as digital and technology skills, creative thinking and experimentation, data analysis and interpretation and strategy development, but place relatively little weight on soft skills such as social networking, people development and collaboration.

“Managers are not entirely sold on the benefit of intelligent machines and it is up to senior executives to address their concerns,” says Thomas. “They need to help their managers not just improve their technology skills but develop greater interpersonal skills to lead the workforce of the future.”

But given the inevitable disruption that smart machines will almost certainly wreak on the workplace (remember those Oxford predictions), one of the skills leaders will undoubtedly need is the ability to be honest with managers (particularly those on the front lines and in middle positions) about the impact this disruption will have upon them. After all, many predictions were made about how technology will free up employees (including those in HR) to focus on “more strategic tasks,” and while that has proven true in many cases, it also led to the elimination of many jobs and not a small amount of pain.

HCSC Drives Change with Relationship Data

Social diagramming and relationship analytics at Health Care Service Corp. (HCSC) was on a pretty fascinating display Tuesday at the HR Tech Conference.

HCSC Social-179275875Speaking on behalf of the Chicago-based, 14.7-million-member organization handling Blue Cross/Blue Shield plans in five states, Steve Betts, HCSC’s chief information officer, told a very different kind of social-transformation story at his session, titled Why HCSC Thinks Relationship Analytics Are the Next Big Thing in Talent Management.

Looking to make hefty changes after he came on board about a year ago, he sought the help of Syndio — also Chicago-based — to, first, solidify his case for change and, second, determine his best drivers for that change through all the social-graphing relationship data Syndio could offer.

Key changes in the company’s scope, considered most crucial due to the fast-paced changes in the healthcare industry overall, were its needs to go from siloed teams to a highly matrixed organization, to go from a more traditional hierarchical structure to one with many points of interaction and to go from an organization with limited innovation to one that would be extremely focused on driving innovation with business partners.

“Essentially,” said Betts, “HCSC needed to change and technology was right in the middle of all of that.”

But not just any technology, mind you. What Syndio brought to the process was a robust and well-populated social-diagramming and graphing process based on employees’ answers to specific, academically validated questions that would then plant them on that diagram in terms of their strength of connectivity to everyone else in the company.

As Syndio’s senior vice president of customer success, Andee Harris, described it, “we combined the HR data and [our] relationship data to tell the full story of how work gets done at HCSC.”

Included in that “story” were pockets throughout the organization where departments were maybe siloed and autonomous, “and essentially not effective,” Betts said. The data also told him how people interacted, who they collaborated with, who had more meetings than necessary with no real leaders, who the “bridgers” were and who — all through crowdsourcing data — people went to for what.

Additionally, included in what the Syndio tool captured were several characterizations about each individual, as well as where they fell on the social-networking map — such as if they were collaborators, change agents, innovators, leaders and/or listeners.

Sentiment data combined with relationship data also helped pinpoint people and departments within the organization where support for the transformation would likely come and where more focused communication would be needed. “These aspects and characterizations could truly identify change agents who could help drive [this] transformational change,” said Betts.

The data, analyzed in Syndio’s cloud base, alerted Betts to key connectors in the company who might not have the skills necessary to drive the change he was looking for, but who could potentially bring the organization to its knees because of his or her social-connectivity strength.

“We were able to work with those people” for the good of the company and its goals, he said, “rather than let them go, which could have been devastating,” as opposed to highly successful in helping exact and promote the desired changes.

“We wouldn’t have known this without this data,” Betts said. “It really has helped me see who talks to whom, and how we interact — and how we should interact — across the states.

“It’s very addictive,” he added. “Very action-oriented.”