Record payout for race slurOn 20 Feb 2001 in Personnel Today Previous Article Next Article Comments are closed. A Sikh police sergeant who was sacked after being wronglyaccused of sending racist hate mail has received £350,000 in compensation, arecord for a police officer in a race discrimination claim.Gurpal Virdi claims the Metropolitan Police have agreed topay him £200,000 at a second racial discrimination tribunal at which he claimedunfair dismissal.The alleged settlement follows a £150,000 award made toVirdi after a tribunal last year. It showed he was innocent of sending abusiveletters to himself and colleagues at Ealing Police Station, in West London.Gurbux Singh, chairman of the Commission for RacialEquality, said, “Many important steps have been taken by the Met in recentyears. What has happened in this case compromises them if it is not respondedto promptly, properly and effectively.” Related posts:No related photos.
The remit of the Disability Discrimination Act is to be extended to bringemployees who currently miss out on protection under its umbrella, by ElaineAarons and Owen Warnock Employees currently have no protection under the Disability DiscriminationAct if they are not “disabled”. This is not as sensible as it soundsbecause people can be vulnerable to discrimination merely because an employerthinks they are disabled, or fears an existing illness will develop into adisability. The DDA gives some protection to people who have medical conditions thatcause only a limited impact but which are likely to develop to the point wherethere is a substantial effect on day-to-day activities. Early stages This proposal is intended to deal with a specific risk: if a diagnosis ismade at an early stage, before a condition has developed, an employee mightsuffer discrimination and yet have no legal protection. For example, anemployer might dismiss someone in the early stages of cancer to avoid the legalobligations that would arise if the disease developed in such a way as to havea more substantial effect on the person’s ability to carry out normal dailyactivities. To tackle this possibility, the DDA states that where a person has aprogressive condition that has some adverse effect on day-to-day activities,even if this is not substantial, then he or she is to be treated as being disabledif it is “likely” that in due course there will be a substantialadverse effect on daily activities. The Act gives as examples cancer, multiplesclerosis, muscular dystrophy and infection by the HIV virus. Day-to-day implications Cases have occurred where, in the early stages of a medical condition suchas cancer and HIV, there is no significant impact on normal daily activities. In such cases, the person concerned is not “disabled” and has noremedy when treated adversely by an employer. For example, an employer mightdismiss a person with asymptomatic HIV infection, whether because the employerfears that the person will subsequently have poor attendance, or simply becauseof prejudice, and yet this would not be unlawful disability discrimination. The Disability Rights Task Force identified this difficulty and theGovernment has now published its response to the recommendations. It proposesamending the Act to make some special rules. In future, HIV infection willcount as a disability from the time it is diagnosed. In relation to cancer,protection will apply from the point when the medical advice is that thecondition is likely to require substantial treatment. The reason for thisslightly more complicated arrangement is that some cancers will never requiresubstantial treatment. Shortfalls in the Act Unfortunately, there will still be gaps in the law. There will be caseswhere one person with cancer remains fit and active throughout the illness buthas to undergo fairly substantial treatment and so is regarded as being adisabled person. On the other hand another person whose the cancer has continuing low-leveladverse effects but who needs little treatment will not be legally disabled. It may be that the Government’s proposals will be refined to address thisissue during the consultation period. There is also a strong argument for extending the rules to other progressiveconditions. Indeed, if the aim of the law is to encourage equal opportunitiesfor all and to encourage selection on merit, the DDA should be amended toprotect job applicants and employees against detriment imposed merely becausethe employer thinks the employee is disabled. Another gap occurs because the DDA does not apply to employers with fewerthan 15 staff. The Government has announced, again at the suggestion of thetask force, that this threshold will be abolished. But a case being brought byMr Whittaker against P&M Watson Haulage (ET case no 1805354/00) suggeststhis reform may not be a voluntary Government decision but, will be forced uponit under the Human Rights Act. Whittaker argued that the exclusion meant his right of access to the courts– an aspect of the right to a fair trial in the European Convention on HumanRights – was being denied. The employment tribunal in Leeds thought he had a strong argument and has”stayed” his case, pending a decision by the higher courts. This casecould be one of the first examples of the Human Rights Act to have an effect onemployment law, although it seems doubtful since Whittaker’s argument may bemisconceived – nothing in the European Convention requires the UK to have a lawon disability. Does it matter whether there are gaps in the DDA? No, employers should beseeking to recruit and retain all competent workers, irrespective of howdisabled or ill they are, and to make any reasonable adjustments without gettinginvolved in legal niceties. Elaine Aarons and Owen Warnock are employment law specialists with lawfirm Eversheds Comments are closed. Related posts:No related photos. Previous Article Next Article Get in on the ActOn 1 Jun 2001 in Personnel Today
Moving on upOn 10 Jul 2001 in Personnel Today HRis proving itself a launching pad for industry high-fliers. In part two of ourthree-part series on CEOs and boardroom HR, we conclude our profiles of the top20 senior executives with a background in global HR. Next week, we look at whyCEOs need a so-called ‘hard’ backgroundRichardTweedieChief Executive, Todd energyRouteto the top Asmanaging director of New Zealand’s largest domestic energy company, RichardTweedie, former HR director of Todd Motors, is one of the most influentialbusiness figures in the twin-island state. Hebegan as a management trainee in the tobacco industry, followed by a spell inmarket research at the global consumer goods company Unilever in the 1970s.During this period, while completing a Bachelor of Law degree, he becameinterested in industrial relations and gained a job with the New ZealandEmployers Federation as an industrial advocate. This was during a period ofstrong unions, and Tweedie was directly involved representing industrialgroups, mainly in the car industry, in negotiations. Hejoined Todd Motors, the Mitsubishi franchise assembler in New Zealand, asindustrial relations manager in 1976 at the age of 30. Hemoved the company away from the confrontational approach and was quicklypromoted to lead the total HR function. In 1981, his employer sent him toHarvard Business School on a three-month programme and a year later he movedinto a planning and legal management role in Todd’s oil and gas business,becoming general manager by 1987, CEO in 1990 and managing director in 1995. Howthe HR background helps “TheHR experience has significantly shaped my role, especially the experience atthe coalface of industrial negotiations. My negotiating skills were developedduring that time and the tricks of the game – many learned from unionnegotiators – are with me today.” Advicefor those starting out “Ifyou want a line management position, then you need to manage your career tothat end by identifying the time and opportunity to make your move. It has itspersonal risks, but if all goes well it can be very rewarding.” DavidSmithCEO, State Insurance Company, New ZealandRouteto the top AustralianDavid Smith has humble beginnings. He joined a small suburban branch of theBank of New South Wales as an office assistant upon leaving school at the ageof 18. The bank, however, saw potential in him and placed him on a fast-trackprogramme despite his lack of a degree, and he subsequently completed an MBA. Hespent 20 years with the Westpac banking group, of which the Bank of New SouthWales is a part, and was mostly in personnel roles. These included four yearsin New Zealand, where he ran the human resources development department of theWestpac Banking Corporation, before returning to Australia, ending as generalmanager of retail banking in Queensland. Hethen moved to NRMA in 1999 as human resources general manager, before beingappointed chief executive of the State Insurance Company. Howthe HR background helps “Ican bring the people issues to the top table. What we are going to see incompanies is that if you have a very motivated staff, then that can lead tobetter customer satisfaction and retention and profitability. We have beendoing vision and values, but if that does not mean anything to the people thenit is useless, or even counter-productive.” Advicefor those starting out “Learnto talk the language of business – that is where you start getting credibility.The best thing I did was the MBA, and what that gave me was confidence.” MauriceDuffyChief executive, mkworldwideRouteto the top Amidall the dramatic collapses of the dotcoms, Maurice Duffy is a rarity – a neweconomy entrepreneur who makes money. He is also a former HR director. Duffyreorganised the HR department at the European division of global telecomscompany Nortel Networks to operate as a headhunting and resourcing agency, handledat arm’s length. The logical development was to spin off the firm, which hedid, promptly severing links with Nortel and operating as an independentcompany. Its core competence is recruitment, but it now acts as a consultancyon business and technology, and as a conference organiser as well as a searchand selection agency. With80 employees and offices in London, Newcastle, Glasgow, Amsterdam, Rome, Milan,Madrid and Munich, mkworldwide has grown rapidly since starting as mksearchwith eight people in February 2000. Duffy,as European HR director of Nortel Networks, headed the 1999 Recruitment Team ofthe Year in the inaugural Personnel Today awards. Hequalified as an accountant in 1977, but went straight into HR, takingtraditional personnel roles in industrial groups in Ireland and the UK, withspells in project management and general management, before joining Nortel in1991. Howthe HR background helps Peopleare now the key to competitive advantage, he argues. “In the 1980s, it wascapital; in the 1990s, people viewed technology as the key; from 2000 forward,it is about people.” Advicefor those starting out Plainspeaking and passionate, Duffy says the only way for HR managers to reachsenior executive positions is to quit being “social workers” andbecome business managers. “Know your business,” he says. “Don’tjust read the brochure; know your customers and know what is happening. That ishow you gain respect, rather than wading through the latest HR book on how to managepeople.” TerryMorganGroup managing director of operations, BAeRouteto the top TerryMorgan runs businesses responsible for £1.3bn turnover, employing 13,000people, covering shipbuilding and aerospace manufacture. His four-year tenureas HR director at the same company immediately preceded this post. Switchingbetween different disciplines is something that has characterised his career,and something he regards as essential for any personnel manager who aspires tothe highest office. Morganbegan his career in the car industry, in a variety of managerial posts, culminatingin the position of managing director at Land Rover Vehicles in the UK between1991 and 1995. He then moved to an equivalent post at Royal Ordnance. “Asorganisations become much flatter, the learning experience from moving acrossinto different roles in order to widen experience is valuable,” he says.”I have learned a lot from that.” Buteven without spending time in the line, personnel managers must learn thebusiness objectives and priorities. InMorgan’s case, as HR director, he could never be accused of not knowing thetask, or its difficulty, because he had worked as operational manager in thesame company. This gave him great authority when encouraging junior linemanagers to take their people management responsibilities seriously. Howthe HR background helps Morganhas a high regard for the importance of HR. For example he refuses to regardhis move early in 2001 from HR director to group managing director ofoperations as a promotion, rather as a sideways move. Advicefor those starting out Hewould encourage a manager of any discipline to spend some time in a differentdepartment, and says that many need to sharpen up their people managementskills. “Management is the art of persuasion, rather than instruction,which is what many general managers do.” AdVeenhofSenior vice-president Royal Phillips Electronics and CEO, PhilipsDomestic Appliances ad Personal CareRouteto the top AdVeenhof, who began his career in HR, is a beneficiary of Philips’ policy of jobrotation which began in the 1970s. Potential senior managers were given a tasteof different functions, in a manner that has become more established since. Hestudied business administration at Nijenrode University, and obtained aneconomics degree at Groningen University, before joining the human resourcesdepartment at the electronics giant’s offices in Hilversum, the Netherlands, in1971. He spent three-and-a-half years there, followed by similar stints incorporate finance and sales. Hebecame project leader for LCD products in 1986, and for high-definitiontelevision in 1989. In January 1992, he was appointed managing director of theconsumer electronics division. He took up his current responsibilities inJanuary 1996. Howthe HR background helps Veenhofregards the skills he learned in interviewing and in managing mergers as keyabilities for senior management. He picked these up in his years in HR where,despite holding a junior role, he had access to senior managers of thedepartment. He estimates that as much as one-quarter of his time as CEOinvolves handling organisational development and HR, particularly therecruitment and development of top managers. “Alot of my time is spent getting people in the right positions,” he says.”You are thinking continually about the development of theorg-anisation.” Tipsfor those starting out “Donot stay too long in a certain field,” says Veenhof. “And you shoulddiscuss that very early in your career.” Rotation around the disciplinesis close to being essential background for a chief executive and, he notes,”Young people are asking for this.” KotaroMuneokaCorporate auditor, HitachiRouteto the top KotaroMuneoka was promoted to the board of the Japanese electronics giant Hitachi assenior vice-president in 1997, having served three years as a general managerin the employee relations department. InFebruary of this year he was elected corporate auditor. Likemany Japanese executives, Muneoka has spent his entire career at one company. Apsychology graduate from the University of Tokyo, he joined in 1964, working invarious posts while rising through the hierarchy, becoming department managerof the administration department in 1985. Hehad some experience in personnel in his junior roles, and returned to thediscipline in 1994 as general manager in the corporate employee relationsdepartment, becoming board level director for corporate personnel and trainingin 1997. MikeKinskiTransaction director, Nomura international; non-executive director, thePost OfficeRouteto the top MikeKinski made corporate history in 1998 when he became the first former humanresources director to head a FTSE 100 company in the UK. The former HR directorof both Jaguar Cars and Scottish- Power became chief executive officer oftransport group Stagecoach. Sincedeparting in 2000, he has moved to Japanese-owned Nomura International, wherehe works as a transaction director for Guy Hands, one of the UK’s mostprominent entrepreneurs. He assists Hands in identifying and acquiring largebusiness opportunities. Heis responsible for Nomura’s pub businesses, comprising 5,500 pubs; the FirstQuench retail chain and Hyder Business Services, which provides outsourcedservices for local government. Kinskibegan his career as an electrician, moving into the car industry as an engineerand progressing to become HR director of Jaguar by 1990. In1992, he moved to the utility Scottish- Power as HR director and progressed toline management roles, culminating in reaching the posts of chairman and CEO ofSouthern Water and chairman of Manweb Electricity, both part of theScottishPower group. Howthe HR background helps “Ithas clearly helped me in developing my career. Winning in business is aboutachieving competitive advantage and successfully managing change – proactivehuman resources management is fundamental to this as, at the end of the day, itis people who make things happen.” Advicefor those starting out “Makesure that you really understand the strategy and business issues for yourorganisations; develop a set of integrated initiatives to support theserequirements. People who do this will be quickly recognised andappreciated.” SirIan GibsonChairman, Nissan Motor IbericaRouteto the top SirIan has spent his entire career in the car industry. He has held seniorpersonnel management posts, as well as general management and manufacturingroles, in Ford in the 1970s in Halewood and Dagenham in the UK and Cologne inWest Germany, having graduated from the University of Manchester and the LondonBusiness School. Since1984, he has held senior general management posts at Nissan, culminating inpromotion to senior vice-president of the global car firm, now controlled byRenault. He was the first European to become a senior vice-president at thefirm. He stepped down from the executive committee in March 2001, but retainedthe role of chairman of Nissan Motor Iberica. Howthe HR background helps SirIan describes his experiences in personnel at Ford as being the prime motivatorfor seeking a senior role at Nissan, which was new to manufacturing in the UKin 1984, when he joined. “During the 1970s I had developed views on whatdid not work in running a British workforce at a time of industrial strife. Ihad experience of lots of labour relations issues, dealing with unions and tryingto see what drove those wedges between management and workforce,” he says.”Itgave me the fundamental view that training and commitment to training isfundamentally of great importance. Rather than just acquiring skills, it ispart of creating almost a bond of trust. “Thebusiness gains long-term capability and flexibility. As an employee, you seethat the company is prepared to invest in you and not only in marketingprogrammes, products and equipment.” SirIan was convinced that greater partnership could be realised by starting with aclean slate, so he jumped at the chance of working with Nissan when it beganproduction in Sunderland, north-east England. The plant is now the mostproductive in Europe. Advicefor those starting out SirIan advises personnel managers aiming for the top posts to “understand thebusiness; this does not just mean the numbers”, he says. “You need toengage with colleagues enough to understand what the drivers are in the coreactivities of the business.” GeorgeHicktonChief executive, New Zealand Tourist BoardRouteto the top Anotheralumnus of the car industry, George Hickton discovered the importance ofintegrating HR and strategic management independently, and in advance of manyothers. Hebegan in personnel with the Ford Motor Company, eventually reaching a senior HRrole, before becoming general manager sales and marketing at Honda New Zealand.In 1988, he took over the New Zealand Employment Service, moving to the IncomeSupport Service – responsible for making welfare payments to those in need inthe country – in 1992. In this role he transformed the agency into anorganisation more focused on the customer by setting up teams to replace narrowfunctional disciplines. Followingthis, he took over at the media and betting company TAB, before being appointedto head the country’s tourism board in April 1999. Hickton,a versatile manager and, by many accounts, an inspirational figure, is famousfor cutting through the jargon and accepted ways of administration. When incharge of the New Zealand Income Support Service, he used to begin staffbriefings by quipping, “We are giving out $10bn a year and nobody likesus! We could be doing something wrong.” Howthe HR background helps Hicktonargues that management in general is about enthusing and empowering people,which means that training in personnel can be invaluable. “As a guidingprinciple, I believe that people actually want to contribute to theorganisation that they work for, if they are given the opportunity.” Advicefor those starting out Themain advice is to know and understand what people in the organisation actuallydo, and as such be prepared to engage in “management by wanderingaround”, he advises. IanMannChief executive, ECA InternationalRouteto the top IanMann, previously international HR manager at NatWest Bank, is hardly unique inhaving moved from HR management to head an HR agency, but ECA International isa major international business in its own right, so, as managing director, Mannqualifies for this list. ECA has 16 offices worldwide and more than 1,500member and client companies, providing consultancy and advice to multinationalcompanies. AtNatWest, he directed the expatriate programme and the personnel function forthe European Region of NatWest Markets, the investment banking division. Beforethis, he worked for six years as a consultant in the field of expatriate policyand administration, having worked for Bank of America covering Europe, theMiddle East and Africa. Mann’searly career began at Rolls-Royce, followed by six years spent at Avis Rent ACar installing and implementing a job evaluation programme. Hewas appointed managing director of ECA International in June 1997. Howthe HR background helps Heargues that HR people have to learn the business; but, by the same token,business managers must learn the people. “The organisation and the peoplein it are to my mind synonymous,” he says. “The goals of theorganisation and of the people have to be congruent. If you do not do that, noone achieves any of their goals and you do not keep your staff.” Advicefor those starting out “Thinkbig. Think about your business.” The profession has limited itself bybeing too concerned with administration, he says. “What we really need todo is ensure the triumph of people and strategic thinking. If we achieve that,then there will be many who can move into general management roles.” Previous Article Next Article Comments are closed. Related posts:No related photos.
Previous Article Next Article Comments are closed. Call for more training to dealOn 31 Jul 2001 in Personnel Today Related posts:No related photos. As violence in the workplace escalates employers are being urged to improvetheir risk assessment and reporting of incidents. A Home Office report released last week shows that in 1999 there were almost1.3 million incidents of violence at work in England and Wales – an increase ofaround 5 per cent between 1997 and 1999. Elizabeth Gibby, head of the psychosocial issues policy unit at the Healthand Safety Executive, claimed that businesses have to carry out riskassessments and draw up an action plan to reduce violence. An effective reporting system is also vital for employers to identifywhether implemented measures are proving effective. “Managing work-related violence is like any other health and safetyissue. Employers can use the same principles,” she said. The report, Violence at Work: New Findings from the 2000 British CrimeSurvey, shows that 72 per cent of employees had not received any formaltraining or informal advice about how to deal with violent or threateningbehaviour. Even among high-risk groups, such as health professionals and publictransport, no more than half had been trained, except for security andprotective services where 71 per cent had received training. Gibby said employees need training and information so they know how todiffuse a situation. But she added that training is only one of a range ofmeasures that employers should take to try and eliminate risks to employees. Businesses should examine job roles and ensure that people are not isolatedat work. The British Crime Survey estimates that 2.5 per cent of working adultssuffered violence at work in 1999. www.hse.gov.uk
Employers are putting too much emphasis on winning Investors in Peoplestatus rather than considering the cultural benefits of the process, accordingto research. The report by the Open University Business School claims too manyorganisations focus on the hard, structural side of the IIP process, whichundermines the development of softer, cultural aspects. If measurement, badge-collecting and hard learning are allowed to dominatethe process, managers will simply aim to satisfy the criteria for assessment,claims the report. Dr Scott Taylor, co-author of the report, believes there are importantbenefits. “It forces companies to look at training and development, whichis a good thing. It can be useful for HR managers in terms of careermanagement” he said. The research is based on six organisations that have been through the IIPprocess. More than 24,000 organisations have achieved recognition and it is supposedto provide a framework for improving performance through HR development. An IIP spokesperson said, “It isn’t possible to get the award unlessthere is clear evidence that an organisation is committed to and carries outeffective training and development to meet business needs.” Related posts:No related photos. Comments are closed. Previous Article Next Article Firms must not forget ‘soft’ side of IIPOn 18 Sep 2001 in Personnel Today
What makes the essential difference to a CEO in times of trouble? Threewell-known companies which worked closely with their top HR executives toensure the development of future leaders tell their story. Pepi Sappal reportsTo deliver Cadbury Schweppes’ tough financial targets, CEO John Sunderlandneeds the right leaders at the helm. He works with global resourcing directorNorma Boultwood to chase tomorrow’s high-fliers When John Sunderland was appointed CEO of Cadbury Schweppes last year,shareholders were not happy. “Our earnings per share, and more importantlyour return to shareholders, had been sluggish for many years. So things had tochange,” says Sunderland. His vision is to continue to grow the beverage and confectionery businessglobally to beat rivals like Coca-Cola and Mars. “We’ve set some verytough goals – to grow earnings every year by 10 per cent and double shareholdervalue every four years,” Sunderland says. In order to achieve these goals he needs the right leaders at the helm ofthe organisation. “Our business will succeed or fail by the quality of ourpeople at all levels. Given that premise, there’s no doubt that people matterssuch as recruitment are a board responsibility. Yet it’s always been a greatsurprise to me why HR isn’t represented on more boards. At Cadbury Schweppes,HR has been on the board for almost 20 years,” he says. Sunderland takes a personal interest in HR matters, working closely withglobal resourcing director Norma Boultwood to make sure that the rightcandidates are being recruited, developed and persuaded to pursue their careersat Cadbury Schweppes. “We fill 85 per cent of our senior posts from within theorganisation,” says Sunderland. “But to make it to the top at thisfirm, you have to put in the years.” He and Boultwood did. It took Sunderland almost 28 years to make it to CEO.And Boultwood started her HR career back in 1980 as a personnel trainee. “Developing leadership at Cadbury Schweppes is almost a 30-yearproject,” says Sunderland. “Our strategy is to recruit them young,ideally straight out of university because the consequences of getting it wrongare low.” So what qualities does he look for? “Vision – people who canintuitively understand the future and have the ability to take people withthem,” Sunderland responds immediately. “But those types of traitsare harder to spot in young recruits. So we look for basic leadership qualitiessuch as energy, drive and a will to succeed. If people have these basics inabundance then we are halfway there.” Those were the qualities he was looking for when he attended AIESEC’sDeveloping Leaders Day in late August this year in Lenk, Switzerland “It’sa very efficient way of tapping into the best international graduatepopulation. This group does more than enjoy university,” says Sunderland.”The 30,000 members of AIESEC have a global perspective – that’s what setsthem apart from national university recruits.” The drawback is that this group is far more difficult to seduce, he claims.As these graduates have far more opportunities than before, joining amultinational corporation is no longer their priority. “Far more havetheir sights set on joining a not-for-profit organisation or the governmentsector so that they can make a difference and contribute to society.” So Sunderland is cleverly luring this talent by saying you can achieve thesegoals by joining us too. “Cadbury Schweppes has been criticised foroperating in South Africa, during Apartheid, and China – a country oftenaccused of having the worst human rights record. But I genuinely believe we cando far more to influence the way those societies develop from the inside thanthe outside. By setting a good role model of how we treat and deal with peoplein those countries, we can – in a small way – make our voice heard.” Many of AIESEC’s graduates have shown interest in the company’s globalexchange programme. Global resourcing director Norma Boultwood explains,”It’s a scheme where, say, a Chinese graduate will spend a year at ourAustralian office, and the Australian graduate in China. Both return home atthe end of the year and if things work out, they are recruited in their homecountries. We have similar arrangements between the US and UK, US and Mexico,and Argentina and Canada.” But that’s just the first hurdle. “We then have to train, develop andgroom these people into leaders through our internal programme which movesmanagers around internationally and cross-functionally,” says Boultwood. Sunderland is also actively involved in developing staff. “We are inthe process of developing a sales and marketing academy. And John [the CEO]plans to spend a lot of time there tutoring. He’s also helping to devise themesfor the coursework,” adds Boultwood. But simply developing the right leaders is not going to be enough to achievethe type of results Sunderland has in mind. “As creation of shareholdervalue became Cadbury’s governing objective, he needed the buy-in of all our36,000 employees worldwide to agree to go on this journey with him, not justthe managers,” explains Boultwood. So Sunderland and his HR team pursued an idea devised in 1997, to help themdeliver the type of talent required to achieve that objective. “We call it Managing For Value (MFV),” says Boultwood. “Theconcept incorporates five values that were of most strategic priority for us,including raising financial performance, sharpening the culture, values-basedmanagement, leadership capability and rewards. “It basically meant a fundamental reorganisation of the business. Toshow our management we were serious about stretching our financial targets, weput them into the public domain very clearly,” says Sunderland. “But it’s no good just exhorting people to do better. We then had toprovide the tools to help them achieve these tough targets. We introducedvalues-based management to give our managers new ways to analyse the businessto understand where we were producing economic profits and where we werefailing, and then ensuring our resource allocation decisions were made inbacking the winners. “Having set the goals and provided the tools, we then had to ensure wehad the right team and that they were properly motivated and remunerated. Thenext phase was therefore a management audit in which, among other things, theleadership imperatives we sought from our management were defined. We assessedand changed our management team. We then launched a worldwide programme tosharpen the culture and engage all our employees in the MFV journey. “Finally, our rewards scheme also had to change to reflect economicprofit. So we developed new ways in which as many employees as possible canhave shares and a personal interest in the company,” says Sunderland. He was personally involved in delivering the Managing For Value programme tomore than 2,000 of his managers – confirming his mantra: “Running abusiness successfully is only 20 per cent about strategy but 80 per cent aboutpeople”, says Boultwood. “It was this statement that gave HR a fantastic platform. This wholeMFV had a great people component, which put HR at the top of the CEO’sagenda.” In this case, HR has certainly helped to deliver on the bottom line.”Our 2001 half-year results are ahead of expectations,” she adds.”Sales rose 26 per cent to £2.46bn, and pre-tax profits by 14 per cent to£351m compared to the same period last year.” And, although, it’s too early to tell whether shareholder return hasdoubled, the signs are promising. “Over the last four years, we haveachieved an 84 per cent increase in total share owner return at a time ofconsiderable stock market volatility,” confirms Boultwood. All of which isproof that HR value has a strong correlation to shareholder value. Pierre Hessler and Carolyn Nimmy of Cap Gemini Ernst & Young’s believegood leadership skills can only be acquired through intelligent followship The downturn in the IT and telecoms industries is certainly having aknock-on effect on consultancies. Management and IT consulting firm Cap GeminiErnst & Young is no exception. The group’s main activities – helping businesses implement growth strategiesand leverage technology in the new economy – have markedly slowed over the pastfew months after clients delayed or cancelled projects. Like most companies, ithas had its fair share of casualties this year – 2,700 out of its 60,000employees have been shed to date. However, group managing director Pierre Hessler, former CEO of Cap Gemini,is adamant that industry growth hasn’t declined – just slowed down. But demandfor good leadership skills within the firm at every level is higher than ever –especially if the firm is to fulfil its growth and financial targets for 2001,about 9bn Euros. Both he and Carolyn Nimmy, global director of people relationship managementat CGE&Y, are looking for leaders who are pioneers and innovators,spearheading change in every sector, continuously evolving and learning, whilepersonally guiding and mentoring others to take on new challenges. Butaccording to Hessler, such skills are in chronically short supply, and can onlybe acquired through “intelligent followship”. “It has nothing to do with sheep-like conformism or blind obedience,”stresses Hessler. “Junior members of organisations learn leadership skillsfirst hand even while following the example of others from the start. Butfollowship does not end with the first promotion, nor if one rises to themeteoric heights of CEO. It is a whole set of skills – from the ability tointerpret and translate vision into action, to listening and responding tofellow colleagues – without which, no-one can hope to become a goodleader.” Managing change is another crucial skill for future leaders. “There hasbeen more change throughout the economy in the past five years than in theprevious 50, and all the signs indicate that rapid change will continue, andeven accelerate. Knowing how to be an agent of change, how to ride change, how to make it happenand how to thrive from its consequences are essential skills for anyonestarting a career today.” But the inflexible few, unable to adapt their skills in a high-performanceculture are doomed to fail. “An awareness and insight into new technology,as opposed to specific technical know-how, is also an essential skill forwannabe leaders, since the entire structure of organisations and their marketsare now determined by the technologies available,” adds Hessler. Of course, such talent is extremely rare. “Yet the search for peoplewith these skills remains constant,” says Hessler. “Given that theonly money we make is by renting out our brain power, it is imperative we findthe best and develop them.” Both CEO Geoff Unwin and Hessler rely on Carolyn Nimmy and her HR team tofind these skills. In fact, last year, Unwin told globalhr that he personallyspends 60 per cent of his time dedicated to sourcing talent. “There’s certainly a stronger focus now on HR from the top to see how ourhuman assets match the current market conditions, and what we are doing toattract, retain and develop the talent required,” says Nimmy. “Andthe board is not just interested in the hard facts and figures but howproactive we are being. Both Pierre Hessler and Geoff Unwin want to know whereare our future leaders are and what’s being done to recruit the best. They arealso curious about how potential recruits feel towards our brand and what theirmotivations are for joining us.” Both had the opportunity to discover exactly that over the past two yearswhen they attended AIESEC’s Developing Leaders Day with Nimmy, last year inEdinburgh, and this year in Lenk, Switzerland (see box on page 27). Nimmy first got involved with AIESEC back in 1997, when she was quicklyinfected with the positive energy and entrepreneurial skills of thisorganisation. “We are actively involved with AIESEC as many of thesegraduates will end up working for a consultancy,” says Nimmy. “It’s agreat to opportunity to not only increase our brand awareness in more than 85countries, but expose our managers to future talent.” The case of SwissAir provides an insight into how hard the company fought tokeep its business airborne. The group’s CEO Mario Conti, who hails from afinancial background, and chief personnel officer Matthias Mîlloney firmlybelieve that the right leadership in the driving seat can help a company introuble The SwissAir Group had its fair share of problems over the past few months.Two changes of CEO, plus reported losses of SFr2.9bn (approximatley $1.7bn) for2000 – largely due to its fledgling airline operations. So CEO Mario Conti,formerly CFO of Nestlé, had enough to contend with when he took up his post inApril this year. globalhr learnt of his strategy to keep the company airborne in late August.Unfortunately the tragic events of 11 September in New York marked its eventualdemise. It plunged the group, along with other airline companies, into furthercrisis and ultimately led to the company filing for bankruptcy in earlyOctober. SwissAir’s story provides a fascinating insight into how both Conti andchief personnel officer Matthias Mîlloney struggled to turn the company’sfortunes around. They continued to fight until the events of 11 September forcedthem into bankruptcy, which is why we have decided to run the comments theymade at the time. Conti had been working closely with Mîlloney at the time to ensure thecompany’s survival. This shrewd operator knew he was unlikely to turn thefortunes of the company around without the buy-in of his staff. So one of thefirst things he did when he came on board was to invite Molloney onto theexecutive management board. “What’s unique about Mario Conti is that, unlike most CEOs with afinance background, he understands the value of HR,” said Mîlloney.”The fact that he’s from Nestlé – a company reputed for its HR bestpractices – probably explains a lot.” Conti may have only been eight months into his job but was getting to knowhis organisation’s strengths. “He is keen to find out what our skills baselooks like, and spends at least half a day a week at our offices and factoriesto find out more about our staff – what drives them, concerns them and soon,” said Molloney. He took a huge interest in HR matters – a fact which impressed Mîlloney.”In our regular one-to-one hourly meetings we often discuss specifictraining for managers. Other times we discuss management audits, to see whetherwe have allocated talent effectively for optimal performance,” he said. Making sure their leaders were in the right place at the right time wascritical, explained Mîlloney. “Leaders that can not only see through thetough times, but those with good international capabilities to grow and expandthe business internationally as our home market is extremely small. If we wantto grow successfully, we need 10 times the size of our market, and that meanscompeting for international clients,” he said at the time. But finding leaders with global skills and multicultural experience to growand respond to an international customer base is extremely difficult, saidMîlloney. “They need more than languages, but transnationalthinking.” So Conti and Mîlloney worked together on strategies to help find theseglobal leaders, and also develop and motivate them enough to stay. That’s whyboth attended AIESEC’s Developing Leaders Day with Cadbury Schweppes and CapGemini Ernst & Young. Mîlloney, who also sits on AIESEC’s board, believes the graduate members ofthis group have the global mindset they are looking for. Having been in the HRbusiness for approximately two decades, Mîlloney believes leadership issomething that no university can teach. “But leaders should have a licenceto lead,” he says. Perhaps in his dual role as practitioner and professorof HR, he’ll change that. However, as events have overtaken him, he now hasother things to keep him occupied. Tomorrow’s LeadersAccording to CEO John Sunderland, drive, judgement andinfluence are the characteristics which underpin successful leadership.”Leaders have to see the future, challenge the status quo, determine avision, to motivate the organisation to follow the pursuit and achievement ofthat vision. “That used to be all that leaders had to worry about, butthe world is changing. Business in the guise of what is called globalcapitalism is becoming deeply unpopular. As business continues to transcendnational boundaries and many corporations have valuations greater than many ofthe world’s countries GDPs, we face a new set of challenges,” explainsSunderland.The new generation of leaders will need to work much harder.”They’ll need to communicate the value and contribution business makes totoday’s world. At the same time they will need to ensure that theirorganisations are not just subscribing to, but are delivering on all thetenants of good corporate governance. Care for the environment and sustainabledevelopment, commitment to human rights and ethical trading, encouragement ofdiversity and active contribution to the communities and societies within whichthey operate,” he says.If he had to summarise leadership in four words he said itwould be “to make a difference”.AIESEC Leaders DayThis year, Cadbury Schweppes, Cap Gemini Ernst & Young andThe SwissAir Group supported AIESEC’s Developing Leaders Day 2001, in Lenk,Switzerland. The event gave the three companies the chance to meet and developleadership skills of about 500 graduates from 85 countries. Each companysupported the event by providing about 15 managers to help the studentsunderstand and develop leadership qualities. AIESEC is the world’s largest student-run organisation withabout 30,000 members from more than 800 universities worldwide. “Ourmission is tocontribute to the development of our countries and their peoplethrough an overriding commitment to international understanding andcooperation,” says Sahil Kaul, incoming president of AIESEC. “We hopeto produce more than 10,000 change agents by 2005.”According to outgoing president Jose Pablo Retana, “It’sthe perfect place to find those diverse leaders who will eventually replacemany of today’s Anglo-Saxon-dominated boards that tend to lack the key marketinsights necessary to capitalise on today’s global opportunities.” For more information go to: www.aiesec.org Comments are closed. From one leader to anotherOn 1 Nov 2001 in Personnel Today Previous Article Next Article Related posts:No related photos.
Previous Article Next Article Related posts:No related photos. Electronic route to ethnic monitoringOn 22 Jan 2002 in Personnel Today Comments are closed. The introduction of an integrated electronic HR and payroll system at theRoyal Borough of Kensington and Chelsea will help the council fulfil itsresponsibilities under the Race Relations (Amendment) Act. The system, which is due to go live in April, will provide payroll servicesfor 6,000 staff, is being supplied by Northgate Information Solutions in a dealworth more than £1m. George Bishop, the council’s director of personnel and general services, isplanning to add recruitment and training packages, which he said will help thecouncil comply with the Commission for Racial Equality’s code of practice onthe Race Relations (Amendment) Act. Under the Act, local authorities have a legal duty to monitor the ethnicityof their workforce in job applications, grievance procedures, promotion andtraining. The integrated system, called ResourceLink, will also manage personalinformation data such as job details, sickness absence, holidays and grievanceprocedures. Bishop said the new system would integrate HR and payroll, providingsignificant efficiency and cost savings. “It is a modern integrated system which will allow us to inputinformation once rather than twice.” Bishop added it would also make managers more autonomous by giving themeasier access to staff information. The contract with Northgate will save the council more than £100,000 on itsexisting payroll contract. It includes managed services from Northgate’spayroll services team and managed solutions centre in Hemel Hempstead,Hertfordshire. www.rbkc.gov.uk
Widen non-exec gene pool by recruiting from other sectorsOn 28 Jan 2003 in Personnel Today Chiefexecutives in the public and voluntary sectors could become vital pieces of DNAin the boardroom following the call for companies to “widen the genepool” of their non-executive directors. Amongthe sweeping reforms proposed in the Higgs review is the recommendation forcompanies to appoint senior figures from outside the private sector asnon-executive directors. Itproposes that a list of 100 approved candidates should be drawn up as a pilotscheme, for companies to recruit from. Mostof the boardrooms in the City are occupied by ageing white businessmen, whowere appointed through personal contacts, claims the review. Women only make up6 per cent of non-executive posts and ethnic minorities a mere 1 per cent. Akey aim of the review is to bring in a broader mix of skills and experiencethat is lacking in boardrooms.TheAssociation of Chief Executives in Voluntary Organisations (Acevo) is workingwith head hunters to draw up the list of potential non-executives, which willbe submitted to Trade and Industry Secretary Patricia Hewitt in May.Appointments are expected to start in the summer. Comments are closed. Previous Article Next Article Related posts:No related photos.
M&S skills audit ensures firm has vital staff dataOn 15 Apr 2003 in Personnel Today Marks & Spencer is to complete a nationwide audit of staff skills tocomply with forthcoming legislation. The retail giant will map its employees’ skills to evaluate whether it hasthe resources to deliver on company objectives, and to comply with changes tothe Operational Financial Review rules that will require people management datato be published in annual reports. The firm has already piloted the scheme among its 3,000-strong workforce inIreland. Naomi Stanford, former head of organisational development at M&S, tolddelegates at the CIPD’s HRD conference in London last week that the schemecould prove a direct link between food stock levels and management skills. The firm’s 65,000 UK staff will be divided into 23 job families. They willthen fill in a self-assessment skills questionnaire and agree a ranking withtheir line manager in areas that include retail focus and ‘big picture’thinking. Stanford said that through the Irish audit, M&S found staff have 199skills it is not making use of. For example, a horticulturalist was found to beworking in the bakery department. “Companies will soon have to think about how they will report the valueof their people,” Stanford said. Previous Article Next Article Comments are closed. Related posts:No related photos.
Comments are closed. Universityof North London www.unl.ac.ukHowlong? Thecourse can be taken full-time over two semesters, beginning September orFebruary, or part-time over two years using a flexible study pattern.EntryqualificationsApplicantswill need a good Honours degree or an equivalent qualification and/or to beable to demonstrate their suitability for study at postgraduate level.ModulesTheseinclude international business strategy, international personnel anddevelopment, cross-cultural management, comparative employment systems andresearch methods. Students must also prepare a dissertation.CareeropportunitiesThisprogramme is aimed at people who are pursuing a career in HR management wherethe international dimension is significant. It will help students develop anunderstanding of the impact of HR management within a global business contextand how best to operate as HR managers within an international arena. Coursemembers can also apply to develop their dissertation topic into an MPhil/PhD programme. HR qualification: MA International HRMOn 8 Jul 2003 in Personnel Today Related posts:No related photos. Previous Article Next Article