4 More Reasons Why Human Resources Must Become the Control Center for any Social Business Enterprise 2.0 Transformation (Part2)

In the previous article, we discussed 4 reasons why HR needs to abandon its traditional administrative role and become the company cultural citadel and flagship. We could compare HR to the helm of an “Enterprise Culture” ship, with its crew steering the company towards its “cultural destination” and in this way, having much more leverage than a mere rule enforcer. In order to become the motivational driving force of the business overall, HR must learn to meld together different mentalities, cultural tribes and department units. HR must also foster the collective mission of an employee-centric company’s vision and values, i.e. culture. But what are some of the technological, digital and disruptive challenges our traditional personnel management is faced with when bringing the Millennial Generation (Generation Y) onto the company’s payroll?

1. HR must understand and accept the rich & ubiquitous nature of Digital Communication

Broadband connectivity has changed the way we work and communicate. Tablets, phablets and smartphones are found and used everywhere, and recent statistics estimate there are already 2.5 billion mobile social accounts worldwide! As if this deluge of portably-connected devices (also known as “Bring Your Own Device”) was not enough, our traditional 20th century “Dr. Prof. Expert” has transformed himself into a powerful, multi-faceted big-data information giant. This new 21st century digital expert has granted himself a previously unknown crown of knowledge: the hyperlink. This invisible digital inline link can display remote content without displaying the content; it is to be found in many e-articles and has become the new punctuation sign you and I have to contend with!

The hyperlink is the hidden command which has literally transformed our traditional book (with its attached footnotes) into a never-ending reading ordeal! Watch out, while e-reading, that you do not get “hyperlinked-away” and end up wondering where your reading actually started! This new punctuation sign has now given us the technological agility to research any topic at scale. It is the reason why (after roughly two hundred fifty years) Encyclopædia Britannica went out of print, and 300 years later Internet overtook newspapers ad revenues.  How will HR undertake the transformation of this well known archaic enterprise legacy and adapt it to our “hyper-linked”, 21st century digital and highly-connected workplace or wirearchy without losing the necessary line of command?

2. HR TO BECOME THE TRANSFORMATIONAL DIGITAL ZEITGEIST OF LAST CENTURY’S HIERARCHICAL BUSINESS LEGACY

Complete removal of the hierarchical legacy from a company’s organigram seems highly impossible. Every enterprise needs a boss, a visionary, a strategist who guides the mission, inspires the ranks and carries the overall corporate social responsibility vis-à-vis the owner or the company shareholders. But here are examples of quite a different approach. IIya Pozin, writing about his company Ciplex, says: “There is no such thing as ‘management’. There are no departments. Those fancy job titles, like VP, executive, and manager are gone”.  What is worth noticing here is Illy Pozin’s completely different view on company hierarchy.  He continues: “I recently inverted our organizational chart.  Our clients are now positioned up at the top, while our employees make up teams stationed in the middle, and our higher-ups are no longer higher-ups — they are now known as ‘team support’ and they reside at the bottom of the chart.”! IIya Pozin genuinely promotes team culture.  He goes on to write: “You need self-motivated, self-sustaining teams, instead of individual employees below your clients. This fosters a culture in which teams are motivated to succeed together, rather than individuals. It creates a shared sense of responsibility throughout the company. At Ciplex, we create team goals to measure and improve upon every two weeks. This way, everyone becomes a valuable asset.”

Claire Suddath, reporter for Bloomberg Businessweek, wrote an enlightening article about the company Valve Software.  In “Why There Are No Bosses at Valve” (Valve Software company handbook), co-founder Gabe Newell states: “Of all the people at this company who aren’t your boss, Gabe is the MOST not your boss, if you get what were saying,” the handbook says.  Claire Suddath goes on to write:  “Every Valve employee has hiring capabilities, as well as the power to green-light an idea.  It’s basically the Montessori version of running a company. Somehow this results in completed projects and top-notch video games.”

3. HR TO HIRE TALENT MATCHING COMPANY CULTURE, & SECURE PERSONNEL EXPANSION

HR should hire first for passion and second for skills! What would be the outcome if a multi-talented hiree happened to “row in the opposite direction” of the company culture?  Some of my readers may think that I am on a cultural bandwagon or crusade, but please bear with me, and let’s look at a cultural misfit example we’ve all read and heard about: The Hewlett-Packard/ Compaq merger case:

In 2001 the Hewlett-Packard computer giant acquired Compaq for US$ 24 billion — the largest IT deal ever made!  Combining workforces and operations in more than 150 countries (with roughly 150,000 employees) must have been a daunting task to undertake, but particularly so for HR. Restructuring both businesses was an intimidating challenge that turned out to be a disastrous cultural match. HP originated mostly from an engineering background, while Compaq from a “door-to-door” sales mentality.  This merger was considered a failure and HP was forced to make dramatic leadership and cultural changes to make things work. Could it be that the results of the consequences of that merger are still evident even to this day?   CEO Meg Whitman recently pointed to a lack of clarity around the company’s strategy as well as heavy executive turnover.  Who knows?

HR now has a golden opportunity to start molding and shaping Generation Y hirees (soon to replace baby boomers), to bestow upon them crystal clear cultural beliefs and values, impart the necessary ethics, and to finally turn them into real company spokespeople and brand evangelists.  And even more so, HR has the responsibility to set up the right working environment and transform the attitudes of the workforce into a highly motivated group of engaged employees. It is crucial that co-workers possess the inner satisfaction of having a clear mission, of serving a purpose and delivering outstanding products or services. When HR Daily Advisor SPHR, MBA Kojo Amissah was asked to define HR he gave this most unusual and amazing reply:  “HR is about the business to the extent to which you can utilize people to obtain business goals.”  Some of the structural challenges HR is facing nowadays in modern companies could be perfectly summed up by Dan Pontefract: “Our organizations are built on 19th century learning styles, coupled by 20th century leadership models fused with 21st century technology.”

4. HR TO BECOME THE PROMOTIONAL ENGINE OF SUSTAINABLE EMPLOYEE ENGAGEMENT

A recent Towers Watson Global 2012 Workforce Study reveals how the views of employees directly shape their engagement in their work, commitment to their employers, and ultimately their behavior and performance on the job. The study reflects the attitudes and concerns of workers around the world. It also points out that the traditional definition for engagement is shifting and reshaping itself into a 21st century “dernier cri” term of “sustainable engagement”. As we read above, companies are running 21st century businesses in 20th century workplaces. The resulting lack of employee engagement is staggering to say the least:
- 35% employees are highly engaged
- 22% employees are unsupportive
- 17% employees are detached
- 26% employees are disengaged
 
Don’t you think it is time for companies to start attracting, motivating and retaining the right cadre of employees     – those who will best benefit the corporate business identity? What will be the mid and long-term consequences of HR developing a “sustainable engagement” environment for its workers? The Tower Watson study quantifies the direct relationship between employee output, engagement and motivation on the job, and the level of operating margin an enterprise is able to record. It also shows that the higher the level of engagement, the higher the average operating profit will be: 
- Companies with low engagement scores have an average operating margin of 10%
- Companies with high traditional engagement an average margin of 14%
- Companies with the highest level of “sustainable engagement” an average of 27%
 
What is the line of attack your company is applying in order to reverse those trends? How is your HR department raising the employee level of engagement?
 
Follow Bruno Gebarski on Twitter: https://twitter.com/BrunoGebarski@brunogebarski or on LinkedIn: https://www.linkedin.com/in/brunogebarski
Related posts to Social Business i.e. Enterprise 2.0:
-4 Reasons Why Human Resources Must Become the Control Center to any Social Business Enterprise 2.0 Transformation (Part 1)
-3 Ways to Promote Your Employee Engagement and Increase Your Social Business Enterprise 2.0 Productivity
-4 More Ways for Leaders to Promote Personnel Engagement in Social Business Enterprise 2.0
-Why Are People, Processes and Platforms the Three Fundamental P’s of Any Social Business Enterprise 2.0 transformation?
-Why Company Culture is The Foundation to Any Social Business Enterperise 2.0
-Understanding the 4 Fundamentals of a Social Business Enterprise 2.0

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