Don’t Panic It’s only a Recession Colin MacGregor

Don’t Panic It’s only a Recession

Colin MacGregor

8 Steps to Organization Renewal1.Review Mandate2.Review Processes3.Review Organization Structure4.Review Activities5.Review People6.Develop Communication Strategy7.Take Action8.Repeat annually through good times

and bad

#1 Review Mandate◦ Mission – why does your business exist?

Redefine if necessary due to economy and competitive pressure

◦ Vision – What do you want the business to be? Has it changed?

◦ Values Shouldn’t change

◦ Value proposition Value to customers - has it changed?

#2 Review Processes◦ Are your current processes efficient?◦ Do your current processes support the

new business climate?

#3 Review Organization Structure◦ Does your organization structure fit the

new business reality?◦ Is it aligned with your business mandate

and your processes?

#4 Review Activities◦ What are the things you need to keep doing?

What's working well and adding value

◦ What are the things you need to stop doing? What is not working well and stopping you from

being as successful as you can be.

◦ What are the things you need to start doing? What came out of steps 1, 2, 3 What changes are necessary to meet your new

reality

#5 Review People◦ What skills do you need to fit the new

paradigm?

◦ Who has those skills?

◦ Who can develop those skills?

◦ Match those people with the new tasks and organization

◦ Make decisions on those who don’t fit and act quickly

#6 Develop a Communication strategy◦ Be honest and open with people

◦ Make sure they get their information directly from the top?

◦ Avoid paralysis by rumour.

◦ Don’t give the organization lawyers a chance to sabotage your company

◦ Give people an outlet for their fears and concerns

#7 Take Action◦ Communicate the new reality

◦ Make organization changes with a sense of urgency

◦ Train people who need new skills but instill a sense of purpose and urgency.

◦ Deal quickly with people who are not going to be part of the new organization. Don’t drag it out. Take action and move on.

#8 Repeat Steps 1 through 7 Annually◦ Regardless of the business climate you

need to revisit the organization annually to keep it fresh an ahead of your competition

◦ Regardless of how bad the economy gets there is always someone making money and doing well. You want to be one of them

“As we move into the new millennium and find ourselves in a knowledge economy, it is undeniable that people are the profit lever.”

Jac Fitz-enz – The ROI of Human Capital

“After a long career in Human Resources working for a number of good companies in several different industries I’m convinced that the one constant in business over the years is poor management.”

Common Reasons for Business Failure

“Bad or improper management practices, including poor cost controls”

From the MasterCard website

Lack of direction. Business owners often fail to establish clear goals and create plans to achieve those goals, especially before starting out, when they fail to develop a complete business plan before launching their company.

#1 reason for business failure from Entrepreneur Magazine and Yahoo

“doing the right things and doing things right”

Strategy Focus on what is important to the business

Alignment The organization, business processes, HR

processes aligned to meet organization objectives

Many a report on business failures cites poor management as the number one reason for failure. New business owners frequently lack relevant business and management expertise in areas such as finance, purchasing, selling, production, and hiring and managing employees. Unless they recognize what they don't do well, and seek help, business owners may soon face disaster.

Patricia Schaefer – www.businessknowhow.com

Team and Individual Competencies

Corporate Strategy

Strategic Objectives Core Capabilities

Business Measures (Financial, Operating, Customer, People)

Core Performance Competencies (Business Knowledge, Functional Skills, Value-Added Behaviors)

Team and Individual Measures Key Performance Factors

“THE WHAT” “THE HOW”

IntegrationOrganizational systems and processes should not be developed in isolation

The Training & Development function is part of a much larger system

CompensationStructure

Skill Assessment& Inventory

AccountabilityFramework

Assessment &Career

DevelopmentProcess

On the JobCoaching

MentoringProgram

Education Support

TalentPool

ReplacementPlanning

Succession Planning

Training and Development Strategy

HRPlanning

Recruitment Process

&Tools

Orientation

Foundation

Development Stream

On Boarding Stream

3 Categories of Training & Development

1. Compulsory legislated operational Policies & procedures

2. Performance Related Organizational Individual

3. Development Succession planning personal