B27 Building Decision Making and Risk Taking Abilities

 A few months back we at Aventus Partners has carried out a structured interaction with Corporates to understand better their respective and collective human resource needs and explore opportunities of working in tandem to address at least some of these needs.

This included Corporate Leaders, Business Heads and HR leaders across industries like Food & Spices, Financial Services, Textile, Software, Trading, Electronics and Consumer Goods.

While 50% of the Corporates were evaluating initiatives that will enable them to accelerate at a faster rate of growth over the next 15-18 months.(To be primarily achieved through expansion to new geographies, products/services/markets), another 30% were keen to focus on consolidating their current position having battled out a tough period 12-24 months back.

We observed that at an individual (employee) level there was a recurring need for Managers in these organizations to display strong decision making skills, risk taking ability, the ability to nurture and rally their people and have the required influence and impact in order to actualise the above plans.

This can be honed by making people  

•  More aware of the process and the key elements in risks and its impact on decision making
• Cognizant of their preferred decision making style, their responses to risks and their ability to be flexible depending on the situation
• Sensitive to their thinking and behavioral patterns /habits while making decisions
• Capable of creating a personal plan for further skill enhancement.

We believe that this would be one significant step in enabling organisations strengthen skill levels of their people and push decesion making closer to the customers .

B26 The Skills Development Challenge in SMEs

 Lack of talent more often than not sounds the death kneel for an entrepreneur; especially those in the small and the Medium sector.

I am sure many of you reading this will identify with this. For you an investment in Training and Development is a necessity for business survival and not a luxury. 

Though most of you intuitively know and agree in private conversations that you would prefer to grow people from within the organization, when faced with your day to day challenges you seek to recruit skills and talent from outside . But you are caught in a loop here as you realise your limitations inattracting good talent from the open market and paying for it. 

Some of the typical challenges entrepreneurs talk about in the context of  growth and talent within SMEs are

1) Lack of trained/skilled managers to manage for growth

2) Inability to attract skilled trade practitioners

3) Inability to retain good trained resources for a long time. People keep leaving for new and remunerative pastures

4) Most of the market offerings for talent development are generic or are designed and implemented by people who do not understand the specific requirements of the SME.

5) Inability to spare people for training for extended periods of time

6) Need to balance between long term perspectives and short tem practical skill needs

7) High need /demand to show training investment ROI

8) Cynicism and lack of motivation among the staff towards training

9) Inability to pay the high fees that most institutions charge for formal training

10) Lack of knowledge as to where and how to look for and locate quality resources

11) Inability to have dedicated resources spearheading developmental activities

12) Poor image as employers

13) Low social status attached to people working there

14) Lack of professionals skills to carry on and develop on the work done by the promoters 

Success emanates from addressing these challenges. 

The guide for training in SMEs available in the European Union Website (link Provided below) offers a lot of practical suggestions and examples that address some of these questions . I find the ideas to be relevant even in a non European context. Read it , it is worth your time. 

ec.europa.eu/social/BlobServlet?docId=3074&langId=en

B25 The Innovation Challenge -Encouraging and Institutionalising Innovation 2

 This is the second and final part of the 2 part series that looks at how to address the challenge of Limited innovation happening within the organization

The first part ( http://tinyurl.com/innopart1 )looked at symptoms and their likely causes and the second part looks at things organizations can do to encourage innovation as a way of life within the organization 

There are 3 broad ways in which one can encourage innovation and institutionalize that within organizations.

1. People skills

2. Systems and processes

3. Structural Changes 

People skills 

Enhancing people skills in the domains of

• Creativity and innovation
• Idea filtering and selection
• Risk taking and strategic orientation
• Developing appreciation of issues outside ones domain (thru Cross functional stints, appreciation training etc )is a powerful catalyst .

Do ensure that people across organization levels including senior leadership and the board members are covered. 

Systems and processes 

Institute or redesign the following systems and processes to address the following

• Performance Management Process

· To reflect, measure and reward not just operational measures but innovation and growth measures

· To ensure failure in new initiatives are not penalized

• Reward and Recognition Programs

· To provide for attractive financial incentives to reward ideators and implementers

· To widely publicize successful efforts

· To provide opportunities to showcase achievements within and outside the organization.

• Skill and competency management Process

· Through Identification of key competencies like relationship and partnership management critical to the business

· Ensuring that this is linked to the Performance management process to measure periodic demonstration of these competencies 

Structural Changes

Create formal new projects /ideas monitoring and approval processes and Integrate it with the existing decision making forums and structures. What is also important is holding people in these forums responsible and accountable for their results.

Create communities of practice built around an area of expertise, each comprising volunteers from different parts of the organization. Let these teams solve specific problems and participate in monthly summits with representatives from units/sub units. 

A word of caution . Do not attempt all these at once. Prioritize them basis your critical needs. 

The following article gives examples of some successful practices in organizations http://hbr.org/products/R0706J/R0706Jp4.pdf

B24 The Innovation Challenge - Symptoms and Causes

 Innovation is today taken as a necessary given for organizational success, yet a lot of us struggle to institutionalize it . 

This 2 part series will look at how to address the challenge of Limited innovation in an organization. 

The first part looks at symptoms and their underlying causes and the second part will look at how to instil innovation as a way of life. 

Do you see the following happening within the organization 

1. No new ideas coming up from within the business units, sales offices, factories
2. No new ideas coming from interdisciplinary teams
3. No ideas , suggestions, coming in from external partners, suppliers, consultants , customers etc
4. Ideas being generated but not being converted to meaningful projects

If so I am sure you have wondered why this is happening. Here is what we have concluded based on our experience. 

The underlying causes behind some these symptoms are 

No new ideas coming up from within the units

• Silo-ed thinking in people.
• People skills in creativity and innovation needing upgradation
• People focusing only on immediate priorities
• No incentive to generate /no reward-recognition processes for new ideas
• Fear of failure

No ideas coming from interdisciplinary teams

• Lack of inter disciplinary forums
• Lack of appreciation of others functional areas and domains
• Interdisciplinary forums not having sufficient authority
• Lack of shared responsibility.
• People concerned only about their domains.
• Poor collaborative culture

No ideas coming in from external partners , suppliers , consultants , customers etc 

• Inadequate external networks
• External partnerships are formal and contractual
• Absence of multiple nodes of relationships with external partners
• (Relationship and interactions are held only by some key individuals)
• Ideas are generated but are not being converted to meaningful projects
• No formal process to channelise these ideas
• Ideas of differing sizes, varying cost resource commitments , impact , risk levels )
• People in key positions lack skills to appreciate new ideas or are risk averse
• Too many layers of hierarchy for approval
• No dedicated / accountable set of people to champion new ideas

Think about it and also see what all hold true for your organisation

The next part will look at how you can address these causes from the following three perspectives
1. Skills 
2. Systems and processes 
3. Structural mechanisms 

Reference : http://hbr.org/products/R0706J/R0706Jp4.pdf

B23 Retention of Blue Collar employees: An issue of organisational survival

 Paradoxical as it might sound the reality is that in India a large number of organisations especially in the manufacturing sector are faced with a problem of very high attrition among their blue collar work force. The ready to wear garment industry is one example. 

This is not merely a HR problem, or an issue that they need to address/fix because attrition needs to be curbed for its own sake, but one that has a very high impact on the survival of the business and their business model namely: “The ability of the organization to live up to the commitments that it makes to its customers, and thereby build its brand equity and trust quotient “ 

We see the roots of the problem in a mismatch of perceptions and expectations on issues like future opportunities, job tasks, working conditions and environment, job security and total compensation that the organisation provides. 

The ability of an organisation to clearly identify the areas of mismatch, and address then at both the pre hiring stage and during the tenure of the employment is what leads to successful retention. 

If you are an organisation faced with this challenge you could adopt a combination of the following means to identity the root causes. 

1.Survey a sample population of current employees (This could be a paper and pencil survey in a language that the respondents understand.). The survey should be anonymous to ensure accuracy of responses and protect confidentiality .Use an external agency if you think that will help in greater trust in the process.
2.Interview a sample set of employees who have left the organisation: This should be face to face or telephonic in case the former is not possible for any reason. 
3.Interview key managers as well as people who are involved in recruitment, selection and management of the blue collar employees. 
4.Interview supervisory and managerial personnel who have spent sizable time with the organization and who have through their position, experience and disposition a close rapport with the blue collar workforce. 
5.Conduct a process study and analyse all management processes impacting the blue collar employees . 
6.Analyse existing documentation like exit interview records 
7.Hold discussions with companies of comparable size operating in the same industry and the same geography to understand their experience and views. 

Analyse the findings, do a cause effect study and choose the solution mix based on a feasibility analysis of the potential solutions. 

The feasibility analysis could be on factors like 
• Impact on business financials 
• Extent of change required 
• Resistance from employees 
• Time to impact 
• Resources needed to transition, etc. 

Even what they choose to do next will give you insights into what you need to do to retain them. So where do these employees go. 
They return back to their native place to pursue traditional occupations /skills (Agriculture, animal husbandry, marginal businesses, tradecrafts, etc)
Move to another organization within the same industry (Same geographic location, or another location) 
Move to a new industry where similar skills are given due credit 
Become self employed

B22 Define your Employee Value Proposition

 Entrepreneurs and business leaders of Growth stage businesses know that a critical element in realizing their vision will be their ability to attract the desired talent and retain them.

Here is is how they can translate that desire into reality

1. Define your Employee Value Proposition (EVP) : That answers the question “Why should a talented individual with a successful career record want to work with us and remain with us”
2. Corporatise the organization: Create an identity for the organization that is distinct from its founders and a culture that is truly the organizations.

Both these together will pave the way for creating a strong employer brand. Corporatising the organization from a people perspective would include most of the activities that flow from the Value proposition.

An employee value proposition (EVP) typically encompasses all attributes that fall under the following categories:

• Compensation and Benefits: The way a company compensates its people for effort and results.
• Career Development: The mechanisms through which an employees skills and competencies and consequently his value is increased
• Company Culture: The organizations vision, values, practices, group norms and the way they manifest as day to day behaviors.

Our experience has shown that an organization has to be competitive in all these categories vis a vis the talent market but stand out in one Category (what we like to call its Signature EVP).

B21 Enabling Employees Develop the Right Attitudes

 We all use the word "Attitude " rather frequently . Intuitively most of us also realise that at the root of all success lies ones attitude towards the situation and the choices that one has in that situation . The same is true for an organization too .

Helping people develop the right attitudes is a challenge that most organizations both start ups as well as established on face .

Here are a few steps that will enable professionals in this endeavor.

People get very defensive when you tell them that their attitudes needs to change or behaviors needs to improve. They normally go into a defensive posture. The probability that you can help change their attitudes gets diminished the moment they go into this frame of mind .

A more non threatening way of facilitating attitudinal change in a formal setting is through demonstrated behaviours.

At a very simplistic level the process is as follows .

1. First help people see for themselves the way they are behaving(Actual behaviour)
2. Enable them get feedback from people that they trust on the behaviors that they actually exhibit . (Making them do it in simulated solutions makes it less threatening. )
3. Demonstrate to them through words as well as actions , the desired behaviors and the impact it has on others as well as themselves .
4. In parallel facilitate the process of seeing the thoughts ,feelings and beliefs that are leading to these behaviors and arising out of them (Both actual and desired ). 
5. Help them look at ways in which thoughts, feelings and beliefs will help reinforce the new/desired behaviors
6. Create a platform where they can practice these new behaviors

To illustrate Just visualize the case of a Sales Manager who believes he is customer responsive but in reality behaves no way like it , or the case of a Production manager who needs to adopt a more inclusive way of working with his subordinates.

PS : An attitude is ones undelying thoughts and feelings that guides ones behaviour ( Actions and words )

B20 Your destiny is in your own Hands

I see a lot of people especially in times of despair doubting in the truth that “their destiny is in their own hands”.

They often say “I am doing all the right things ,am hard working, work honestly ,look to meet others needs first, add value to them , yet I continue to struggle to meet my wants and desires, face challenges every day and an not certain of my future. I see dishonest people , backstabbers , people who will do anything to be successful make money and live a life of power and luxury “

This puts them through a lot of mental conflict and strain.

To all of them I have only the following words

The situation that you are in today are the results of all your past choices and actions. The situation you will find yourself in tomorrow is fully dependent on the choices that you make in your thoughts, words and actions today.

Therefore be focused on the present situation however unpleasant or undesirable it currently might be , being alert and being aware of the choices that are available in front of you and make those that will bring success and prosperity to others, spread happiness and love and you will see the same happening in your life in the future .

Be patient and allow the seeds you sow to grow , continue making these choices and over a period you will experience life in a way that will help you regain belief in the truth that your destiny is in your own hands.

B19 Business Success

Found on the Murugappa website

"Ensure no man you transact with loses, and you shall gain "