The Product of work is people....

As stated in an earlier blog I have been studying lately about the whole area of socio-technical systems within our organizations as advanced by Larry Miller. It is a very unique way to look at our organizations. In one of the articles I was reading we came across a very profound statement. A statement which, on its face value, would totally reinvent our organization’s both now and in the future.

According to the article in 1975 in a publication called the Quality of Working Life Volume 1, Phil Herbst made the following observation. He stated that “The Product of Work is People, as well as goods and services. A Society is no better than the quality of the people it produces.” Stop and think about that for a minute and consider whether your organization operates from that frame of reference.

As an organization we have two very distinct purposes. The first is that we are trying to ensure that the organization remains in existence for perpetuity. We are not in the business of telling our customers and human capital assets that we are going to be gone tomorrow. The second is that we are charged as an organization to go out and acquire and maintain customers. Neither of those can be accomplished without the assistance of the human capital assets that surround the operation. So if that is true, and I strongly contend it is then what do we have to do to meet Mr. Herbst’s discover that the product of work is people?

In a blog post several years ago entitled Who Am I? we discussed the Quaker Business Model. It is a fulfillment of the findings mentioned above. The Quaker Business Model believed that the responsibility of an organization was to make life better for its human capital assets. It was exemplified by Cadbury Chocolate in the United Kingdom. To create that better quality of employee they were the first organization to raise wages, introducing the concept of pensions, introducing unemployment benefits, and health and wellness programs. Cadbury went on to build the first company town and provide educational assistance to its employees. It was the intent of both the company and its staff to make the necessary changes for the community’s best interests.

Fast forward to today and are we still meeting that model? In many organizations the answer is no. We consider employees to be an expense item and just a number. We look at the ability of the organization to make a profit rather than earning more business by taking care of our employees. We argue that our human capital assets are not engaged, but we do not provide them a reason to be so engaged. We forget that if every individual that you have hired, walked out the door, the organization would cease to function. So it is time we change that focus and return back to the future and provide an engaging environment for the human capital assets.  Help them develop their skills. Help them create better lives for them and their families. Provide them access to training and education opportunities to increase their skills. Turn on Undercover Boss in your area and watch the faces when the boss helps the employees reach their goals and dreams. These bosses understand that the product of their work is people. They understand that when we remove the stress that the employee is under and help create that quality worker everyone wins.

Are you walking the walk and talking the talk when it comes to organizational change. Want to find out more about how to introduce an authentic change environment? Join us in in Orlando Sept 25 for a look out how to bring about change in your organizations. For more information visit http://achievinghrexcellence.eventbrite.com. Deadline for registration is August 20^th.

Cut them hours, it is survival time

Ever since the beginning of the financial downturn we have seen organizations of all sizes determined to solve the economic effects of the downturn by cutting headcount. In the process improvement efforts many organizations believe that the way to improve the organization is to cut headcount. The we add to this the misguided vie that the way to ensure the sustainability of the organization as the Affordable Care Act requirements kick in is to cut hours so they can avoid the mandate to provide medical coverage for their employees. So let me ask you to really think about the following questions and consider the implications of your responses.

·         Is your organization ready to close the doors?

·         Are you prepared to dilute your organizational knowledge base?

·         Can you truly meet the needs of your customers with fewer employees?

·         Are you still as innovative as you were before the reduction in force?

Despite the gloom and doom projections there are some organizations that truly understand the role of the human capital assets within your organization. Cumberland Farms has just announced that they will ensure that all their employees are working 30 hours a week and are getting health insurance. Costco, who provides health benefits AND a higher than average wage (in an article yesterday which talked about a living wage bill going through the District government stated the average Costco wage is $21.65 per hour) have seen sales income grow despite the added expense. In an article from Forbes on April 17, 2013 (http://www.forbes.com/sites/rickungar/2013/04/17/walmart-pays-workers-poorly-and-sinks-while-costco-pays-workers-well-and-sails-proof-that-you-get-what-you-pay-for/) Costco is reporting an eight percent growth in year on year sales. Look at the other side of the coin at Wal-Mart. The same article states in the same time period Wal-Mart saw sales climb 1.2%. Wonder why?

Let’s talk strategy here for a moment since that is what we do. You are in a senior management role and your primary goal is to ensure that your organization is still in business way after you have departed. So how are you going to achieve that? You are going to achieve that by ensuring that the organization is being proactive in being innovative with new services and products. You are going to do that by having human capital assets that are happy and engaged. You are doing that by having human capital assets that can’t wait to enter your portals each and every day.  You achieve this by becoming the employer of choice in your community and industry.  

In light of these data points, return to the questions above and see if your answers correspond to our thoughts. We first asked you whether your organization is ready to close its doors. So let me ask it in a slightly different aspect. Have your organization in the past 60 days begun the process to tell your customers that you are going to file Chapter 7 under the Bankruptcy laws, if not you are not ready to close the doors. Second we asked you if you were ready to dilute the knowledge base. We are not in your father’s world. We compensate our human capital assets based on what is in their heads, not what they produce. So, if you reduce hours or headcount those knowledge points leave your organization making it less agile to innovate.

Before you cut them hours be absolutely sure you know the complete impact on your organization. Make sure that you can remain innovative and ahead of the competition.

Are you walking the walk and talking the talk when it comes to organizational change. Want to find out more about how to introduce an authentic change environment? Join us in in Orlando Sept 25 for a look out how to bring about change in your organizations. For more information visit http://achievinghrexcellence.eventbrite.com. Deadline for registration is August 20^th.

How you change is the change!

I recently had the opportunity to read a new book by Lawrence M. Miller entitled Getting to Lean: Transformational Change Management Beyond Problem-solving to Co-Creating the Future. In full transparency I have known Larry for over 40 years as we were classmates at a small liberal arts college in Iowa called Parsons College.

A sub title to the book made the statement that how you change is the change. When we consider that more in depth it begs us to ask how do you go about changing the organization? As a vital member of your organization you have really only three courses of action.

First you can choose to do nothing at all. Many organization’s choose to talk the talk about improving the processes within the organization while utilizing an undertone which says change won’t work because that just is not the way we do things here. Management is totally complacent with continuing the way the organization operates even though the customers are telling the organization you are not meeting the needs we have. This track usually leads to loss of the client base as your customers take their business elsewhere.

Second, the organization can dictate the change from a high. Management tells the organization via edict that this the way we will change. The expectation is that because the ivory tower says change the organization will change. Surprise the result is a totally disengaged organization. Needs of the organization and the customer are never met.

The final choice in implementing change is the total involvement of the entire organization within the change process. The change process is centered around the input of the experts within the organization combined with management. The experts are those on the front line of the organization. The front line experts see the problems before they reach the C-Suite. To be successful the change process requires cross-functional teams which review the entire process and the impact on the customers. It requires the same steps as when you were doing the experiments in HS science class. The change process is the scientific method of the business world.

We consistently hear management complaining that the organizational human capital assets are not engaged within the organization. The change process provides a view of the way to change that. We need to be willing to change the way we change the corporate culture. Understand we are dealing with a corporate culture which is a constant state of fluidity. This means we change just from meeting the demands of our customers. This means we change because the marketplace changes. This means that we change because our front line assets see processes evolve which in turn create the potential for new problems that need viable solutions.

Which change process is your organization following? Are you walking the walk and talking the talk when it comes to organizational change. Want to find out more about how to introduce an authentic change environment? Join us in in Orlando Sept 25 for a look out how to bring about change in your organizations. For more information visit http://achievinghrexcellence.eventbrite.com. Deadline for registration is August 20^th.