Embedded Files
Overview
Overview
This stage of transition is generally characterised by reflection and improvement, where organisations may choose to ‘take a step back’, reflecting on what is in place already and assessing whether it is right for their future direction or whether change is needed. The amount of time spent in this stage can be due to good reason, through conscious choice and often not due to failure. However, it can also be a product of the external context.
Business strategy now tends to be planned rather than emergent. Therefore in this stage a more forward-looking, systematic and strategic HR approach tends to be adopted, ensuring practices support achievement of the organisation’s goals and are aligned with the organisation’s strategic direction and values.
Development of a more planned and embedded approach to people development is needed to increase SME capability and their competitiveness. As well as developing their in-house training approach, our case studies have engaged with various training courses and general support provided by the Singapore Government.
Typically organisations have more management layers or dispersed operations, making a formal two-way communication strategy essential. This helps to ensure the right messages are being communicated, and that employees still feel their views are heard.
Tipping Point
Tipping Point
Although HR policies and processes tend to be in place and aligned to the business strategy at this inflection point, the cracks begin to show if they are no longer suitable for the next stage of transition, perhaps due to the organisation’s size or changing context. Difficult decisions need to be made about what existing approaches should be preserved and which need to now be refined or let go as they are no longer suitable or adding value.
What has become apparent during the consolidation stage is that it’s the intangibles such as knowledge-sharing, the organisation culture and employee engagement that require attention. For example, working as ‘one organisation’ is critical. If the organisation is to transition further, these issues need to be addressed.
In addition, employees’ expectations of the employment ‘package’, including engagement and retention drivers, are changing. In the early stages of an organisation, people tend to be strongly engaged with the organisation, what it stands for and the founder themselves, enjoying a large degree of face-to-face time with them. However, by the established organisation stage, different engagement drivers emerge, such as having a career path (there may now be fewer opportunities for internal progression), having an engaging manager and the same competitive reward package typically offered by larger organisations.
Summary of the phase
Systems and processes
Resourcing and talent
Reward
Learning and development
Vision and values
Engagement
Organisation and job design
Communication
Consolidating Organisation
This phase is characterised by reflection and improvement. With the business strategy tending to be more planned, a more strategic HR approach is required, ensuring practices support achievement of the organisation’s long-term goals.
Process improvement and system refining: a focus on simplicity and efficiency.
Talent planning: planful resourcing, aligned with organisation values and long-term needs.
Sophisticated reward: a more strategic approach, aligned to the organisation’s goals. Mechanism to promote engagement introduced or refined, such as performance-related pay or profit-sharing.
Future-focused L&D:looking at long-term skills requirements and a focus on both multi-skilling and management development.
Formal articulation of vision and values: formal expression of the vision and values in a way that allows employees to interpret ‘what do I need to do and how do I need to do it?’
Systematic engagement:engagement activity is more planful, with managers playing a vital role in engaging their teams. Engagement surveys tend to be introduced to ‘take the temperature’ of the organisation and guide action.
Enabling job roles: clear job roles which strike the balance between functional specialism and flexibility.
Reinforced communication:messages are delivered through the management layers and using different organisation-wide media (for example all-staff briefings; newsletters; intranet). Mechanisms put in place to facilitate upwards communications.
Tipping Point and Useful References
Systems and processes may no longer suit the organisation size, reinforcing silo working.
Workforce Planning FlowchartDownload all
Employees desire the clear career path offered by large organisations, with implications for engagement and retention.
WASP Interviewing Model Download all
Tensions between reward expectations of ‘old hands’ and new recruits which need to be resolved.
Reward Strategy Project ProcessDownload all
L&D is driven by the HR function and managers with little employee ownership.
Training Process FlowchartDownload all
There is a risk of losing the values if they are not a fundamental part of how the organisation operates.
Why Should Anyone be Lead by YouDownload all
Engagement drivers continue to change as the organisation changes. Having a career path with the organisation becomes a key engagement driver.
Questions to Ask SomeoneDownload all
Current structure will not accommodate future growth and the current organisation and job designs may promote silo working.
How Fit is Your Organization DesignDownload all
With attention focused on a vertical communication strategy, horizontal communication between teams and business areas is limited, reinforcing functional divides.
From our case study research we suggest six insights which we believe are important to support the sustainable long-term performance of SMEs, with implications for practice. Under each insight we pose questions for you to consider – whatever stage of transition your organisation is in – about whether your current HR practices and approaches are contributing to the long-term performance of your organisation. And there is no one-size-fits-all solution, as the most appropriate courses of action will depend on your organisation’s individual situation.
As mentioned in the introduction to this report, we tested out our six key insights for practice both through our case study research and with local SMEs at various events and forums in Singapore (attended by more than 200 SMEs). The feedback from these local organisations was that the insights largely resonated with their experiences. However, we were careful to also remain open to any new and different findings, and we did uncover some subtle nuances to the insights, which we have incorporated into our explanations of them below.
1 – Anticipation is key: readiness and relevance will determine success
To be truly sustainable, it is not enough to just understand the current business priorities and the practices that will enable you to deliver today. Anticipation of the next stage of organisation transition, through having a deep understanding of your organisation’s context, strategy, vision and values, will enable you to revise your current approaches and avoid hitting a ‘crisis point’.
• What is your organisation’s history of change and transition, as well as your future transition scenarios?
• What are the limits and the opportunities of your current HR approach that need to be addressed under these scenarios?
• How will you maintain close relationships with your stakeholders through the different stages of organisation transition, hence preserving your understanding of operational issues?
• To what extent are people in the business actively scanning the external environment to anticipate trends and opportunities?
Atlas is adopting an interesting approach to talent sourcing, creating an external talent bank.
They aim to establish an employee outreach programme, with employees visiting institutions and schools as Atlas ambassadors.
The senior HR executive explains:
‘We know that recruiting for talent is going to be an issue in years to come so we need to continue to build our employer brand now, making sure people know about us and entice them to want to join us. We know word of mouth is a powerful way to let people know about us as an organisation and our current employees are our best ambassadors. Already many new people join us because of a personal recommendation.’
2 – Organisation values and purpose need to be the constant bedrock of the business
3 – Skilful alignment of people management insight with leaders’ aspirations is a critical HR challenge
4 – Simplicity of structure and purity of process preserves innovation and entrepreneurship
5 – Sustainable growth involves striking a balance between preservation and evolution
6 – Look beyond immediate operational issues and take the opportunity to lay the organisation’s cultural foundations for the future
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