HRO Today Forum EMEA 2016

8-10 November, 2016 SHERATON GRAND HOTEL & SPA

Edinburgh, Scotland

Workplace innovation:

the contribution of employees

and HR

Maura Sheehan and Peter Reilly

Edinburgh Napier University

Menu for today • A model of innovation

• Drivers of innovation

• Organisational initiatives

• Enablers of workforce innovation

• Barriers to workforce innovation

• Challenges to developing innovation

• Role of HR

CIPD’s model of HRM and innovation

Inputs

Human Capital

Innovative forms of

organising Social Capital

Organisational Capital

Processes

Innovative services

Creative output

Outputs

HR policies

and practices

Context: climate, trust , culture

Drivers of workforce innovation • Tougher & more difficult competition – increasingly globalized markets & now (for UK) post-Brexit challenges

• Innovation at all points in the supply chain – enhanced by access to global markets & knowledge sharing

• Continual pressure to reduce costs driven by access to global markets

• Shorter innovation cycles – technologically & knowledge driven

• Customised solutions for customers and more integrated solutions

• Importance of managerial leadership – esp transformational leadership to encourage employees to take risks, creating a culture tolerating ‘failure’

• Leaders enhance internal and external knowledge sharing & creation; and sustain a knowledge sharing climate in organisations to enhance innovation

What are organisations doing to stimulate

workforce innovation?

Culture change constructive challenge, collaboration, accountability, customer centricity

Greater organisational efficiency

speeding up activities, simplifying processes,

more agility

Diverse people, better deployed and

directed

More joined up extended thinking

internal reorganisation, co-location, faster learning

external partnerships Knowledge sharing

Enablers of

workforce

innovation

FOCUS and DIRECTION

TRUST and RESPONSIBILITY

WORKFORCE REFRESHMENT

IMPROVED KNOWLEDGE

MANAGEMENT

CHALLENGING/ INSPIRING

BENCHMARKING

VIRAL CULTURE CHANGE

LEADERSHIP

Barriers to

workforce

innovation MANAGERS

STIFLING IDEAS

INFORMAL PROCESSES

SILOED ACTIVITIES

KILLING OFF IDEAS TOO

QUICKLY

INSULAR LEADERSHIP

POOR PRIORITISATION

OF IDEAS

PEOPLE NOT SEEN AS

INNOVATION SOURCE

INNOVATION LOW BUSINESS

PRIORITY

V

NEGATIVE THINKING

Challenges and tensions • Managing the paradoxes between objectives (not always aligned)

• Getting task and spatial boundaries right:

• All in one location – risk of group think v More dispersed – wider inputs but fragmented

• Overly directed work – too little space to think v Too autonomous – risk of hobbyism

• Respecting tradition but not being hidebound by it

• Scaleability and replicability are important in large firms but can deter new thinking

• Overcoming tendency to see solutions in structures & processes, not culture & leadership

• Culture change is a resource and time intensive activity – not done quickly

• Greater staff self-governance feels ‘scary’ to those in senior positions

• Fear that overly driven innovators will not get the commercial:values balance right

HR’s role

HR delivers efficiency in own area

HR delivers fresh resources to new spec

HR helps structural reorganisation

HR as prop and cop HR as strategic contributor

HR encourages & facilitates cultural change

HR leads & helps to develop new leadership behaviours

HR introduces new training suite and methods

HR’s own governance approach reflects new culture

HR attunes policies/practices to innovation strategy

And how do HR policies and practices help? Performance Management

Reward Employee engagement

Talent management Job design Learning and development

Case study 1

Tension: consistency v adaptation to suit local needs.

Different views on focussing on best, power of PRP.

Limited role as high engagement already. Coms more important.

Critical to success especially new recruits.

Traditionally a control & delivery mechanism. Line owned.

Taking time to shift towards behavioural from technical training

Case study 2

Not core but can assist: standard expected behaviour but adaptation. Quality manager/ staff conversations, encouraging innovative actions

Not central driver as views differ over power to alter behaviours. ‘How’ job done now assessed but not equal to ‘what’. Recognition may be more significant

Seen seen as a means to achieve a happy and healthy workforce, and to win hearts and minds.

Now looking beyond technical capability to communication, relationships, values -‘people who are right for the culture’.

No connection made to innovation though signs of greater autonomy allowed.

AI, action learning & story telling used to modify behaviour. L&D conveys the intended culture, helps adaptability & build skills

Case study 3

Innovation targets. Now more flexible/ collaborative, incl team based. Staff dialogue supported.

Company very responsive to disengagement signals incl lack of engagement.

Technical skills prized over behavioural. Cultural goals reflected in talent/ leadership sought.

Focus on management of risk and innovation.

Issues arising

• Can HR play a more active role in innovation?

• Is so, how best to do it?

• Need for OD, HR and L&D to provide seamless

contribution. Is that achievable?

• How can desired cultural change be sustained

(when things get difficult)?

Further reading

Sheehan, M. (2016), ‘Leadership Style & Behaviours, Employee Knowledge Sharing & and Innovation Probability’, in: Shipton, H.; Budhwar, P.; Sparrow, P.; Bimrose, J. (eds.). Human Resource Management, Innovation and Performance. Hampshire: Palgrave MacMillan. Reilly P (2015) ‘Managing across borders and cultures’, Strategic HR Review, Emerald Group Publishing Limited, Vol. 14 Iss: 1/2, pp.36 - 41, May