How To Measure Human Resources Effectiveness

measure human resources effectiveness

Let’s be honest here. HR people aren’t always the most popular people in the company. That’s not that big of a surprise, really, since they are usually the face of performance improvement processes, layoffs, annual reviews, and all those other fun processes.

Plenty of the time, they have to be the bad guy.

What about all the other things that HR is supposed to handle though? Have we forgotten all about the real purpose of “Human Resources” and turned the job into the office’s keeper of the process? Between the mandatory employee engagement action plans and completed performance management forms, is that so hard to believe?

HR leaders aren’t supposed to be some militant watchdog – they’re the driver of talent management. They’re supposed to be the group responsible shaping future leaders and ensuring that its current leaders are agents of change. In the age of knowledge workers, there is probably not a part of the organization that is more important than HR.

This is NOT the position of a bad guy or the “People Process Police”. In fact, HR leaders should be looking for ways to unleash the organization’s leaders not miring them in process.

So let’s get real – are you helping the organization to be their best, or just instituting programs? If you had to give yourself an honest assessment, a letter grade even, how would you rank your own performance?

Seriously – how would you measure human resources effectiveness in your organization if the criteria were the following:

  • Impact to business goals
  • Impact on engagement
  • Impact on being ready for change

IMPACT ON BUSINESS GOALS

HR’s programs, practices and initiatives should be designed to positively impact business goals. Not just “cost of hire” or “cost of attrition” type of metrics. Those are passive measures. HR needs to link each and every program to a specific business goal. It is likely that the success of the goal will not be solely impact by HR, but that’s not really the point.

No HR program should be started or continued unless it’s connected to a business outcome or goal.

How many of your programs have a direct impact on business goals?

According to SHRM’s “Future of the HR Profession” white paper one of the most critical areas of focus (and improvement) for HR is to

“quantify in dollar terms the value HR initiatives bring to the bottom line, is the best way to ensure future investment in the HR function.”

If you had to give a grade for your organization on impact, what would it be?

IMPACT ON ENGAGEMENT

There has been a lot of talk over the past years about employee engagement. The problem is not that organizations aren’t concerned about it. They are spending countless hours and dollars on it. Unfortunately, the results have been less than stellar.

“A recent national study by Dale Carnegie Training placed the number of “fully engaged” employees at 29%, and “disengaged” employees at 26% – meaning nearly three-quarters of employees are not fully engaged (aka productive)” – Victor Lipman (@VictorLipman1)

With all of the measuring and talking about engagement, very little of significant impact is being done. Study after study shows that there are a handful of methods to drive employee engagement:

  • Get results to people quickly
  • Empower teams, managers and employees to take action immediately
  • Connect employee engagement to business goals/outcomes that matter
  • Make sure that the business owns engagement, not HR
  • Make engagement part of the every day, part of a leader’s routine

How many of these does your organization enact? If you had to grade your organization on how it impact’s employee engagement, what would it be?

IMPACT ON CHANGE READINESS

One of the most important roles of HR is to ensure the organization is ready for and looking forward to change.

“Forces at work in … business — increased competition, rapidly shifting technologies, and emerging disruptive business models — are the forces that are reshaping many parts of the global economy “ – Scott Anthony

It’s cliché, but true – change is the new normal. Organizations that are not constantly ready and even looking for change are doomed to failure. It’s HR job to make sure its leaders are agents of change.

Is HR in your organization looked upon as change experts? Do other parts of the organization regularly call upon HR to lead or facilitate change?

If you had to grade yourself on how well you’re preparing the organization for change, what would it be?
There are many areas that require HR’s expertise and wisdom. HR can push organizations to greater impact or fight mightily for the status quo. If you were grading HR for your organization, which role would you say they play?

I’d be curious to hear about other areas of grading for HR. What are critical factors that HR plays on an organization’s success. Please let me know your thoughts!

Picture thanks to – http://lawdawgblawg.wordpress.com

Employee Engagement Strategies: Help People See Impact

Here’s one of the best employee engagement strategies around: help your people see the impact they have on gaining or retaining customers.

employee engagement strategiesCulture and operations are a little different for every company, and because of that, finding ways to spur employee engagement takes a unique and fresh approach for each individual business.

To get a sense for what drives real engagement (at real companies), here is the second lesson that depend directly on “outside the box” thinking and a disruptive approach to typical engagement efforts.

You see the principles all over the place, but so many people ask me how they can actually use this stuff in their own businesses – here are the second of two real life examples:

A powerful method of improving engagement and driving employee passion is summed up in one simple concept: impact.

In a discussion with a senior accounting manager, she related some difficulty helping her employees with engagement.

She felt like her folks were really great – they were actually exceptional accountants, saving the company millions of dollars a year – but they felt like they could do the very same job anywhere, like it wouldn’t really make a difference where they worked. In many cases, they were just going through the motions.

The question I began to ponder was, what if it did make a difference? What if what we did in this accounting department made life better or easier for customers? What if we played a really large role in gaining and retaining customers?

At an employee meeting the following day, I asked them if they felt like what they did made a difference. After a long bit of silence, some responded that they certainly save the company money.

I agreed with them and asked, “How do we help gain and retain customers?”

There was silence in the room. I said, “We play a huge role in making sure the customers are well taken care of, ensuring that they get the very best service. I’d like you all think about the impact that we make. Come to our next meeting prepared to talk about how.

During the next meeting, two employees (who have been with the company the longest) seemed to be percolating with energy. It was as if they couldn’t wait to start talking. If you know any accountants, unless it has something to do with debits and credits, jumping to start a conversation just isn’t usually in their nature.

I asked who wanted to answer the question from our last meeting, and Bob just started talking!

“I came to realize that the process I’m in charge of – the process that helps find how and where we might overcharge customers – goes a long way in retaining them. I know that some of our operations and sales people don’t necessarily like the work that I do, but if I were a customer and received a check as a refund for charges, that would make me pretty happy about working with our company!”

What a great answer!

Then it was Sally’s turn to answer…

“I work with our vendors, and try to negotiate with them to reduce their fees. In turn, we pass those savings on to our customers in the form of lower rates, or sometimes just an overall reduced bill. Recognizing that helps me see that what I do really does help us retain our larger customers, which helps to make sure that I get a paycheck.”

I asked the team if they would consider how their jobs help the company gain and retain customers. I asked them to look at what they are doing now – if it’s not helping to gain or retain customers, we should discuss whether it can be altered to meet that goal – or removed from the process entirely.

In that moment, we shifted from “just” an accounting team to a team responsible for gaining and retaining customers. We supported the folks that sold to and dealt with our customers.

In that year, we:

  • Eliminated over 15 different processes that had been in place for years, simply because they either hindered gaining customers or made it difficult to retain customers.
  • Streamlined the reimbursement policy for travel and entertainment
  • Made it easier for customers to dispute charges
  • Maybe most importantly, we identified when sales people made improvements to our process, actually incorporating their workarounds into our standing processes. This not only helped to make their jobs easier, but also reduced the amount of time we spent on the phone trying to get unnecessary paperwork or approvals. We still had to make sure that we used proper expenditure documentation for tax reasons, of course, but when our partners in the business saw that we were interested in working with the sales team for efficiency, they were much more supportive of what we were trying to do.

The following year, our engagement scores went from the 35th percentile to the 75th percentile. But more importantly, our accounting team went from focusing on overhead to thinking about gaining and retaining customers. So, the biggest lesson I learned about employee engagement was to help our team (and myself) see our impact throughout the entire business.

Uncover the link between what your team does and gaining/retaining customers. Understanding that direct line of sight to the customer increases profit, productivity, AND engagement.
____________________

While these might not be an exact match to your organization or unique situation, you can see how some creative thinking (and a willingness to collaborate within an organization) led to BIG results. Hopefully, you can use this as a starting point for making engagement “real” for your team.

What employee engagement strategies have you seen work in the “real” world (and not just on paper)? Let me know, and I’d be glad to share your story!

What If Your Employee Engagement Process Is All Wrong?

employee engagement processEmployee engagement is a topic that floods LinkedIn discussions. There are, it seems, hundreds of blogs written about it every week, yet there’s still a gap between the theoretical and practical benefit of engagement. What gives?

MAYBE THE WHOLE CURRENT PRACTICE OF EMPLOYEE ENGAGEMENT IS WRONG.

THE CURRENT EMPLOYEE ENGAGEMENT PROCESS LOOKS SOMETHING LIKE THIS:

  • Buy/build survey
  • Communicate and extol the virtues of survey and engagement
  • Launch survey
  • Harangue people to take survey
  • Wait 3 to 6 months (sometime much longer) to get results
  • Massage data to present to senior leaders
  • Get tacit commitment from said senior leaders to follow through
  • Roll out results to organization
  • Ask managers or department heads to review scores with teams
  • Harangue teams for action plans
  • Send out bi-annual engagement reminders
  • Start process over the following year

There is a great deal of effort put in by a small group of managers regarding engagement, but those are the ones doing well anyway. For the most part, engagement is seen as another HR Program – and is met with immediate malaise.

“Engagement not integrated into day to day management practices is doomed to compliance at best and failure at worst”

What if we are starting employee engagement at the wrong point? What if the whole practice is wrong?

WHAT IF THE EMPLOYEE ENGAGEMENT PROCESS LOOKED MORE LIKE THIS:

During senior leadership planning for the upcoming fiscal year, identify a key business goal that is achieved only through people (or at least primarily), such as:

  • Increasing current customer sales
  • Reducing in customer attrition
  • Decreasing production errors

Link engagement to reaching key business goals. This may take some research and discussion with thought leaders in the field, but the causal data is out there. After determining goals, try the following to make engagement really work for your organization:

  • Make sure the business goal is one that impacts many leaders
  • Create an annual engagement plan that outlines actions and tools to be developed to support leaders
  • Create communication, tools, etc. prior to the survey roll out – or even before selection
  • Select engagement champions in each business unit to drive engagement at the local level
  • Select or build survey
  • Launch survey
  • Get results within one month – any vendor worth their salt can do this
  • Present findings and recommendations to senior leaders and roll out specific results to each manager the same day
  • Discuss, work on, communicate, and integrate engagement throughout the year – remember that it’s linked to a key business goal
  • Put the emphasis on what happens after the survey, not in the survey
  • Link engagement to business results
  • Make engagement a daily conversation

Doing this shifts engagement from an impersonal program to a discussion of “how we do business.” It’s not another thing to do, but an integral part of how a manager is successful.

What do you think? How have you seen engagement make an organization more profitable or productive?

Picture thanks to http://www.epicparent.tv/top-5-parenting-mistakes/

What If You Thought Like The Customer

what if you thought like the customerWe recently moved into a beautiful brand new apartment. Unfortunately we noticed two issues right away.

THE WASHING MACHINED LEAKED

The first time we used the washing machine it leaked. The maintenance person that came up looked at the leaking water and said,

“What should I do about that? I don’t know how to fix a washing machine. I’ll have to talk to my manager and will get back to you.”

That happened Tuesday. We didn’t hear back AT ALL from them until the following week. By the time everything was settled it took 4 weeks to repair. The only time we heard from them was when I called. When they couldn’t tell by when it would be finished, I asked if what we should do about washing our clothes in the meantime. The answer – “Bring your clothes to a laundry mat”

THE TOP DRAWER ON THE DISHWASHER STUCK SO MUCH YOU HAD TO FORCE IT CLOSED.

The dishwasher rack was something we pointed out the first day. It took about 4 months for them to finally replace it. When the technician came up to do it he told us – “We should have replaced this the day you pointed it out. It is faulty”

Neither of these is life threatening, but they are annoying. They are the kind of thing that will get a company a bad review on Yelp and can sink its reputation if it happens repeatedly.

But what if the maintenance folks actually thought about the issues they had to deal as if they were the renters. What if they thought about the problem from the perspective of a customer? What would they need to do differently?

BE EMPATHETIC

Think about how it would feel if the same issue was happening to you. You would want to be treated like an adult. You would want to know that the person trying to help you wasn’t annoyed by your problems.

Most importantly, you would want your questions answered without attitude. It may have been true that we had to take our clothes to a laundry mat. But, it could have been said a little differently or alternatives could have been offered (maybe free usage of the building’s laundry service) or explored.

“No matter what procedures, processes, people or tools you put in place, empathy — the ability to identify with and understand somebody else’s feelings or difficulties — is a quality without which superior customer service simply can’t exist.” – Michael Hess

If you are uncaring in how you deal with a customer you can be sure that they will find other place to get their services.

FOLLOW UP

Even if you don’t have the answer to a question or solution to an issue, make sure the customer knows you are working on it. There is nothing more annoying than being the black hole of “what are they doing with my problem”

Imagine if it was your issue or question. If you were paying someone to solve a problem, wouldn’t you want to know what the progress was? Yes, yes you would.

Don’t wait for the customer to follow up with you. Make it a point to be proactive and contact the customer to let them know the progress. It will incentivize you to have something to tell them.

“Customer service starts the moment you have your first contact with a customer and theoretically never ends.” – Ken Mueller

If you don’t make sure that they customer knows what has developed/transpired on their issue they will assume nothing is happening. Then instead of just dealing with a customer with an issue, you’ll be dealing with an irate customer with an issue.

ACT QUICKLY

Nothing is worse than long waits to solve problems or deal with issues. Don’t make customers wait. Recently there was a study done by UK Institute of Customer Service for software companies. They proved that waiting a day doubles the cost of resolving a customer issue.

“research by the UK Institute of Customer Service shows that the approximate cost of resolving a customer issue within 24 hours is $4.70. But waiting just one more day causes that cost to skyrocket to approximately $7.80″. – Andrew Gori

Not in the computer software industry? So what. The longer you wait to solve issues the more likely that the issue will get worse and/or the customer will:

  • Will find additional things wrong
  • Go somewhere else for their business
  • Make sure everyone knows how rotten your company is

None of these are great alternatives. The faster that an issue can be resolved the better. If the problem was in your house or on your car, you would solve it as quickly as humanly possible. Treat customers like you want to be treated!

Focus on solving customer issue quickly. If you don’t, it is both a great way to lose customers and a great way to waste a lot of money.

What is your organization doing to think about issues and problems though the eyes of the customer?

Picture thanks to http://www.8020.net/Don-isms.asp

Does Technology Really Make You More Productive?

count-coins-300x180Technological advancements just keep on coming, and all the while, we tout them as “more efficient” and “better.” In many ways, though, the technologies seem to only take care of “keep the lights on” tasks, mundane or routine undertakings that once “wasted” precious human time.

Are we really any more productive though? What do these technologies do to our ability to collaborate and innovate?

I recently took a trip to the grocery store with a year’s worth of change, and after about 30 seconds of dumping coins into a machine, I was given a total and a receipt for my 10 kilos worth of coinage. When I was younger, I would bring this same pile of change to the bank, and wait patiently while the teller spent 10 minutes counting it out. During this time, my parents would chat casually with one of the bank employees.

While this wasn’t a huge transaction, or even particularly important business for the bank, manually completing the task allowed time for relationships to be built between my parents (the customers) and various bank employees (the business).

Now the automatic coin-counting machine has replaced the teller for this task. Yes, that bit of technology frees up some time for the teller and allows him or her to “get more done,” but at the end of the day, is it really making any more money for the bank?

Getting More Done With Less

With all of these technological breakthroughs, most of us are able to be very self-sufficient in the workplace. We can accomplish dull tasks more quickly and more accurately than in years past. With that tech-based efficiency, however, we’ve adopted this idea that the same amount of work can be done by fewer people – and therein lies the problem. It’s true that technology allows us to be more “productive,” but what are the underlying costs to the organization?

A recent client of mine, an information technology group, reduced its team of database engineers from 55 to 45 employees. Because they are exceptional people with state-of-the-art technology, they were able to maintain the same level of customer and project support even with the reduction in staff. There was no noticeable drop off in performance or reliability. There were, however, some unintended consequences:

  • The team has little to no ability to take on new projects
  • Team member get over 400 emails every day, and that’s not including phone calls, instant messages, and texts
  • Career development is stagnant – not intentionally, but because there is no time to dedicate to it
  • Database interruptions, though rare, now take almost 30% longer to resolve

While the current workload wasn’t impacted, the reduced workforce left zero bandwidth available to take on anything outside of their narrowly defined roles. Customers were mildly disappointed in this lack of expandable service, and other IT teams found the group difficult to work with – because the level of stress (with no prospect of relief) has the team stretched tight like a drum.

Now What?

Instead of looking at how to get more done with fewer people, organizations need to start asking themselves, “what’s best for the company?”

In an emergency, sometimes layoffs can’t be avoided, but it’s worth considering that a team with adequate resources and enough members is far more capable of scaling to meet demand. When every member of a workforce is operating at maximum capacity, there is no room for additional polish on a task, no room for an expanded market share, and perhaps most importantly, no time to devote to solving problems and innovating within the company itself.

Instead of looking for ways to do more with less, companies should simply be look at how to do things better. The push to “increase productivity” is a false measure of success, because efficiency is not necessarily akin to quality. Productivity is not just accomplishing more with fewer resources, or in less time, but rather the collective result of taking on greater workloads, improving efficiency, and delivering a higher quality result at the end of the process.

There is an assumption that technology has made organizations more productive, but is this really the case?

They may be able to get the same amount of work done with fewer people, but what about taking on more work?

What about coming up with innovative solutions to customer issues? What about fostering relationships?

At what point does squeezing efficiency out of a company become strangulation? Does Technology Really Make You More Productive?

Picture thanks to http://www.globaltimes.cn/NEWS/tabid/99/ID/775996/Quick-change.aspx

My Frustrating Customer Service Experience

Frustrating Customer Service Experience Customer service is never one size fits all, so why do so many companies rely on pre-packaged solutions, canned responses, or rigid scripts to deal with customer problems?

Killing creativity one process or script at a time

Instead of giving employees the freedom to be creative when helping customers (the lifeblood of every business), far too many companies funnel all of their customers’ support needs into a rote system of predetermined fixes. Whether it’s getting the same unhelpful response from multiple people (who doesn’t love to be passed around from department to department without getting anywhere?), or the feeling that you’re just being brushed off without any real consideration, dealing with customer service can be frustrating.

You can’t find the answer where?

Recently, I was having trouble with a remote control. I spoke with customer service, and after offering one unsuccessful solution, they declared it was broken and would have to be replaced. I got this response from multiple people within the company: I would either have to bring it in or wait for a new one in the mail.

My wife spent a few minutes searching their website, and found a fix that worked. Am I really to believe that the customer service employees didn’t search their own company website for a solution to my problem? Is that even service?

I sometimes suspect that it just doesn’t matter to some of the corporate giants (who are often the worst offenders). Instead of taking the time to help you, they put every effort into getting you off the phone and moving on to the next caller, customer satisfaction (and retention) be damned.

To them, it just might be easier to snag a new customer than help an existing one.

Many organizations think operating this way, they can keep customer service expenses down – since the representatives don’t have to be knowledgeable about the products, or even interested in helping people in the first place. Yet study after study shows that keeping customers is much more profitable than getting new ones.

How can organizations change the script?

With just a little training, and a healthy dose of creative freedom, companies could easily change this paradigm. If they actually valued their current customers (and front line employees), they would give their employees free rein to solve problems any way they could – and providing that kind of service is sure to increase customer retention, resulting in greater loyalty to the company, future purchases, and strong recommendations to friends and family. Why don’t companies see the value in this?

When will companies realize that keeping their customers happy is the best thing they can do for their bottom line? If they did, they’d do away with those service center scripts and ready-made phrases to appease upset customers.

At least I can dream…

FIND A SOLUTION

Cube 2.14 will increase your organizational effectiveness. We specialize in developing innovative, practical solutions to create productive workplaces that exceed goals.