Management

Using the Seven S Model to Align HR with Business Needs Glenn Splieth, VP of HR Splieth, RadiSys Corporation September 2004 A Quick Biography Education B.S. Natural Resources, Utah State University M.P.A. Montana State University Work Background - Total 20+ years Hewlett Packard Mentor Graphics Epson (Japanese) NetTest (Danish) RadiSys - Present My Orientation to OD Influenced by: College Studies in Natural Resources Systems Thinking - Senge Seven S Model - McKenzie Consulting Role of HR - Dave Ulrich RadiSys A Company Overview Our Business RadiSys Is a Leading Provider of Embedded Platforms for Compute, Processing and Network-intensive Applications for Global Communications, Enterprise and Commercial Systems Providers. RadiSys Profile Founded in 1987 NASDAQ ticker – RSYS 550 Employees with 200 Engineers Headquartered in Hillsboro, Oregon Global (NA, Asia, Europe) 2003 Revenue of $200+M Geographical Reach R&D Centers Production Centers Sales & Support Centers Our Vision To be the leading global provider of high quality, advanced embedded solutions that enable our customers to bring better products to market, faster and more economically Our Values – Code of Conduct Delighting Our Customers Leaders in Innovation Highest Levels of Integrity Respect for Individuals Passion and Accountability RadiSys’ Technical Expertise Integrated Platforms Systems SW-Rich SW-Rich Blades ASICs R&D Expertise in Software Chassis Architecture & Integration Compute and CPU Network Processors Embedded OSs Middleware & Software ASIC Design Signaling/Switching Using the Seven S Model as a Diagnostic and Planning Tool Traditional HR Planning is sometimes... Reactionary (responding to an immediate problem) “Point solution” (focused on one issue) Not linked to other organizational initiatives Biased toward one or another types of approaches (hire more people, get a new leader, change the performance review form, etc.) without analysis of the full problem Linear (it takes a long time to get the whole fix) Some Familiar HR Initiatives… but generally point solutions MBOs, Hoshin planning Balanced Scorecard Training programs Diversity hiring Hiring a new leader/manager Implementing a new compensation/bonus program Implementing a college hire program Reorganization A Seven S Based Organization Development Process Organizational Objectives Organizational Assessment Analysis & Action Planning Continuous Testing for Alignment Implement Change Initiatives Organization Development Systematic Approach to increasing the capacity, capabilities, and effectiveness of an organization to produce business results Role of Human Resources (from: David Ulrich, Univ of Michigan) Management of Strategic Human Resources Executing strategy Strategic Partner Aligning HR and Business Strategy Organizational diagnosis Management of Employee Contribution - Increasing employee commitment and capability - Employee Champion - Listening and responding to Employees - Providing resources to employees - Management of Transformation and Change Creating a renewed organization Change Agent Managing transformation and change Ensuring capacity for change Management of Firm Infrastructure Building and efficient infrastructure Administrative Expert Re-engineering Organization Processes & Shared Services Role of Human Resources in Organization Development Management of Organizational Strategic Human Objectives Resources Management of Transformation and Change - Creating a renewed organization Executing strategy - Change Strategic Partner Organizational Agent - Managing transformation and Aligning HR and Business Strategy Assessment capacity for change change - Ensuring Organizational diagnosis Management of Management of Analysis & Firm Infrastructure Employee Contribution Action Planning - Building and efficient infrastructure - Increasing employee commitment - Administrative Expert and capability - Employee Champion Re-engineering Organization Implement -Change & Shared Services - Processes - Listening and responding to Initiatives Employees - Providing resources to employees Elements of Organization Development (7-S) (from: McKinsey Consulting and others) Staff - Number of Staff; How people are hired, integrated, developed, and socialized into the organization Skills - The distinctive skills, capabilities, and competencies that reside in the organization Strategies - The initiatives that the organization has chosen to gain sustainable competitive advantage and reach its vision Structures - The organizational structure, roles, and other frameworks that the organization uses to guide activities Systems - The formal and informal processes and procedures that support and govern activities Style of Leadership - The leadership approach of top management Shared Values - The guiding concepts and principles used to guide behavior in the organization A Systems View Using Seven 7 Model Skills Vision Staffing Systems Mission Objectives Strategy Structures Shared Values Style of Leadership Organization Assessment and Development Testing and Managing For: Alignment of objectives Sufficiency of resources, communication, sponsorship, rewards, etc. Presence & Removal of Obstacles or Barriers Clarity of strategy, objectives, goals Consistency Competing Objectives Level of “Follower-ship” Questions: Strategies What are the organization’s strategic initiatives' Are the strategies aligned with and supportive of the vision' Is there sufficient clarity of the strategy for people in the organization to plan next implement' Is there shared understanding and agreement on the set of strategies across the leadership team' Are there sufficient resources and bandwidth in the organization to fully address the strategies' Is there clear accountability/ownership for each strategy' Is the outcome (reward) for accomplishing the strategy clear' Etc. Questions: Structures Is the organizational structure appropriate given the strategies and objectives' Are the roles clear and defined well enough to ensure accountability' Are the reporting structures realistic, practical, and clear' Where is the connection to customers' Does the floor plan/physical layout facilitate communications and interaction' Are the job descriptions and levels structured to support career development' Etc. Questions: Systems What Information Systems are in place' Are they effective and being used' What communication systems and tools are needed' Do people have access to communication channels' Do they have enough information to make good decisions' Are the Reward and Recognition Systems aligned with the vision, strategies and objectives' Do they provide sufficient motivation to overcome the challenges and barriers involved in reaching results' What performance management systems are being used' Do employees have clear work objectives' Are they receiving regular performance feedback' Are there sanctions for those that do not reach their goals' Does the business have effective planning systems' Do the plans effectively support reaching the strategies and objectives' What measurement systems are in place to make progress and problem areas visible to management' Questions: Style of Leadership How effective are the leaders and the leadership style' What is the predominate model for decision making' Is it aligned with the organization’s values' Is is effective given the nature of the decisions and needs of the organization' How are leaders communicating with others' Is leadership disconnected from the rest of the organization' How do leaders react under crisis' Does the leadership style vary depending on situation' Is the leadership style effective in each situation' Are the leaders effective role models for the rest of the organization' Etc. Questions: Staff Is the number of people appropriate for the amount of work' What is the process for integrating new people into the organization' Is it effective' Do people feel part of the team' Where are people located geographically' Are they close to customers' Close to the work' What is the social network of the organization' Is it strong or weak' Do employees see other employees as partners or adversaries' What are the mechanisms to create a sense of teamwork' Is the work an individual effort or work that requires strong partnering' Etc. Questions: Skills What technical skills are needed in the organization' Where do these skills get developed' What types of communication skills are needed' Oral, written, both, etc. Are these skill requirements built into the selection process' What management skills are required for a manager to be successful' Is it expected that a person learn these elsewhere or within the organization' What are the rewards for effective people management' What incentives are provided for building new skills' How is skill development managed within the organization' Is it individual driven or does the organization (or manager) drive skill development' Etc. Shared Values How clear are the organization values' Are they stated or unstated' How does the organization gain alignment or organization values with individual values' Are there disconnects' How are these reconciled' Do the values align with the organization’s mission and objectives Are there rewards for behaviors that align with the values' How are situations handled where there has been a breach of values' How are the values communicated' Are the values universal or do they work best for certain groups or geographies' Etc. Some Additional Organization Assessment Tools Gap Analysis Force Field Analysis Data Collection/Interviews Brainstorming Root Cause Analysis Employee Satisfaction Surveys Management Surveys/Interviews Action Planning & Implementation Use the organization (Seven S) assessment Identify clear actions required to improve the “System” as part of an organization development plan Identify the Sponsor (typically the top exec of the organization) Communication and collaborate with leadership to implement the organization development plan Monitor Progress Reassess as required Sample Organization Development Plan Sample OD Plan - Goal: Increase the globalization and effectiveness of sales organization Strategy: Create and implement improved sales process and sales skill/tool improvement program Work with the sales team to create and communicate a stronger value proposition for selling products; Use CEO to help communicate it. Increase the focus on Global Account Manager role including role clarity and training. Implement CRM (customer requirements management) tool to increase sales team effectiveness Structure Redefine role of Global Account Manager (GAM) Identify compensation structure for GAM Define and communicate the career paths for each sales job function Change organization structure so that FAE become part of separate team structure Systems Create a “Design Win” calculator and more efficient process for accepting orders Define the “sales process” model' Identify and communicate expectations to all sales personnel Develop clearer employee policies in areas such as auto and travel expenses (especially for Europe) Develop the needed infrastructure (comp, benefits, payroll, etc.) for Asia sales Make gross margin bonus an element of the 2004 commission plan Sample OD Plan - Goal: Increase the globalization and effectiveness of the sales organization, cont. Style of Leadership: Increased visibility of leadership through establishing regular staff meetings Implement leadership development program for directors and managers Staff Hire Customer GAM Hire FAE in Europe Hire sales person in Japan Skills Validate the needed GAM skills and test for those among existing team Increase the team’s skills and willingness to use the new CRM tool & processes Increase sales management’s people management skills Train sales staff in the “sales process” model Increase technical knowledge of products and technologies, especially non-telecom Improve sales team’s skills in building customer relationships Shared Values Instill the value that each AM and GAM is an independent business person who can demonstrate their value to the organization and manager their own business Summary Seven S Approach to HR Planning and Implementation More systems oriented and holistic - considers all elements of an organization and increases alignment between initiatives Focused on the business objectives Has sponsorship from the leadership; Creates partnership between Management and HR Helps identify all of the work and resources required in HR for upcoming year (budget) Results in stronger, more effective HR organization Expands career opportunities for those in HR Thank You