| I had an interesting conversation at the recent Talent | | | | four common components to living companies that |
| Management Summit in Las Vegas. I was having | | | | exist over a long-term period. They are: |
| dinner with a vice president of human resources for a | | | | A company's ability to learn and adapt; Cohesion and |
| company when he asked a provocative question. | | | | identity or the ability of a company to build a 'brand' for |
| "Does what we do really have any impact on an | | | | itself that creates a community for the company's |
| organization? Can organizations still treat people like | | | | employees; Tolerance and decentralization or an |
| crap and make money?" I have to admit the question | | | | organization's ability to build constructive relations both |
| took me initially off guard but, like all great questions, | | | | within the organization and with their clients. This also |
| has really gotten me thinking. There are a lot of | | | | includes acceptance (and encouragement) of diversity; |
| companies that treat their people as cattle and (at | | | | Conservative financing, or a company's ability to |
| least in the short term) make money. The idea is to | | | | control its growth and expenditures. |
| churn and burn. In other words, squeeze every last | | | | What is interesting is that 3 of these 4 are directly |
| ounce of energy from a person and then, when they | | | | related to a strategic human resources approach. The |
| burn out, bring in the next set of people. 100 people out | | | | issues that we write about, learning and development, |
| the door, another 100 in! There are always people who | | | | leadership branding, diversity, onboarding, and culture, |
| need jobs. For these organizations, talent management, | | | | are directly related to the success of an organization. |
| training, etc. means "the floggings will continue until | | | | "Yes, by squeezing everything you can from your |
| morale improves." | | | | staff you can make money." comments Scott Fleming, |
| Heck, if they are making enough money I am sure | | | | President of Replacements Ltd. "But it is a short-term |
| there will be hundreds of consultants, academics and | | | | strategy. Companies that are successful in the long |
| business writers touting their way of doing business as | | | | haul understand that their greatest assets are the |
| 'the future trend in organizational development', selling | | | | people who work for them." |
| the 'X company way' to hundreds of other businesses | | | | How to Make a Difference |
| looking to make money. Don't believe me? Go back | | | | We can make a difference. It is the difference |
| and read how many articles around the 2000 touted | | | | between a strategic human resources department |
| the 'Enron way'. Remember the phrase | | | | and a functional one. A functional human resources |
| 're-engineering'? All you had to do was tell 10 people to | | | | department that is focused on benefits, salaries, hiring |
| do the work of 30 and 'viola!' you were making more | | | | and firing and is disconnected from the business will |
| money. Let's ship all the jobs to China! After all, we do | | | | soon be a thing of the past. Why? Because legal can |
| not have to worry about such nuisances as decent | | | | handle firings, finance can deal with payroll and benefits |
| wages, overtime pay, child labor laws or even | | | | and managers can hire their own reports. A human |
| environmental guidelines. 100 people out, 100 people in. If | | | | resources department that helps to manage talent and |
| they don't like it, they can try to find a job somewhere | | | | build a culture that attracts and retains the best people |
| else. Heck, all we really need is a factory of trained | | | | and is central to the business will be vital for its |
| monkeys and we would be in great shape. It is simply | | | | success. Here are some ways that human resources |
| inputs and outputs, with people taking on the role of | | | | can make a difference: |
| cattle. | | | | Understand the business. Doug Wilwerding had a sign |
| The Rumors of My Death Have Been Greatly | | | | in his office that said "Spectators will please remove |
| Exaggerated | | | | themselves from the field of play." Explain how your |
| Let's be honest, many companies who have moved | | | | proposal is not just a "fad of the day" but connects to |
| their manufacturing operations to China have made | | | | the larger strategy of the organization and benefits the |
| money. Usually this is accompanied by a | | | | people who work for the organization. |
| solemn-looking old guy sounding the death bell on | | | | Measure impact. We value what we measure, yet we |
| America's place in the 'new economy' (it is always a | | | | have to ensure that we are providing measurements |
| 'new' economy no matter how old). "America's days | | | | that have real meaning. For instance, you can measure |
| as the economic leader are over." they solemnly warn. | | | | training with the 'smile sheets' after a course and that |
| "A new day is dawning. The new economic | | | | will tell you if people liked it. The problem is that even |
| superpower will be (choose one) China/Asia/Eastern | | | | though people liked it they were unable to apply what |
| Europe/the Middle East/etc. Yet the new corporate | | | | they learned after the course and it had no impact. |
| giants such as Google, RIM, etc. have come from | | | | You may be able to get X amount more candidates |
| countries that value people as assets and not liabilities. | | | | for a job for less money by advertising in Y magazine, |
| For instance, 90% of all biomedical technology comes | | | | yet if none of those candidates were the right person |
| from Israel - a place with a population of roughly 7 | | | | for the job then you really have not saved any money. |
| million people and the highest average wage in the | | | | A simple questions to ask is 'What does success look |
| Middle East. | | | | like with this initiative and how will it impact the |
| People - Our Long-term Competitive Advantage | | | | business?" Learning, for instance, is a means to an end |
| Doug Wilwerding is the former C.E.O. of Omnium | | | | and not an end in itself. If you are doing training, then |
| Worldwide. Omnium is a debt collector that has | | | | what do you want it to accomplish and how will you |
| between 800-1,000 employees who operate their call | | | | know it has been successful? Show real ROI on what |
| center and try to collect debts for Omnium clients. | | | | you are doing. |
| Debt collection is a very stressful job with turnover | | | | Get executive support. There is nothing worse than an |
| running as high as 150% a year. When Doug took over | | | | initiative that is undermined by the actions of senior |
| Omnium in 1997, human resources in the company | | | | management. Ensure that everybody is onboard and |
| was transactional and disengaged from business | | | | that senior management is not just going to put words |
| operations. In 2003, he undertook a strategy change | | | | on a wall but show it walking down the hall. Once |
| for the company. He created an internal brand, calling it | | | | senior management understands the business |
| the 'O' factor or 'Be O' became the new catchphrase. | | | | implications and buys-in, they must also demonstrate |
| 'Being O' implied a series of both results and ethics. It | | | | through their actions support for the initiative. |
| was something that people bought into and whose | | | | What about those companies that have shipped the |
| behavior was modeled at the top. The result? | | | | jobs to China, how can we compete with them when |
| Turnover fell by more than one-third and the EBITDA | | | | they are paying people so much less than we have to |
| was increased by 440% and the valuation of the | | | | pay them here? The answer lies in the business. Over |
| company at the time of its sales increased by 400% | | | | the past year, for instance, numerous products have |
| from 2003. | | | | been recalled that were made in China because of |
| The Lifespan of a Company | | | | their use of lead paint. Many consumers are now wary |
| Arie de Geus in his excellent book The Living | | | | of buying products made in China not necessarily out |
| Company examined the list of Fortune 500 companies | | | | of patriotism but because many of those products are |
| in 1977 and in a 20 year span found that over 1/3 of | | | | made with toxic materials and break down. What we |
| them no longer existed. For instance, out of the 10 | | | | do does make a difference because with what |
| companies that founded the New York Stock | | | | ultimately makes a company profitable in the long term |
| Exchange, only 1 is currently still in existence (General | | | | is having a positive workplace with highly motivated |
| Electric). Why do some companies last only a few | | | | people each having the ability to utilize their unique |
| years (remember Enron?) while others, like G.E., are | | | | genius to help build the organization. |
| around for over 100 years? He found that there are | | | | |