In the second part of a new series for AMBITION, Jane Sunley discusses how to get your board ‘on board’ with your people strategy
The people stuff can only be delivered effectively if whoever holds the power buys into the idea of achieving profit
through their people. Leaders will need to be prepared to support you throughout, especially by making available the required investment to get this right.
Maybe you are ‘the top’, in which case this step is an easy one. If not, and you’re in a position where those in the boardroom don’t yet quite ‘get it’, you have work to do BEFORE you dive into any of the other steps in this book. My advice to heads of people is always to negotiate your budget before accepting the role – of course you might not be in that position (so remember it for next time).
If you don’t already have a people-centric CEO, MD, owner, or other person of power, then you might only have one shot at engaging them in this journey.
You simply cannot afford to mess it up by being ill- prepared, unclear or fluffy about this – this has been the downfall of too many HR directors, who now find themselves up to their eyeballs in operational HR, while their inspirational and transformational people strategy gathers dust in a corner.
Money talks… and so do numbers; you have to be able to prove your business case as you would in any other discipline within an organisation. Your sales director didn’t get sign-off for that expensive new database without illustrating the business benefits it will bring.
So, do your homework, be business savvy in your approach; know your stuff. When presenting your business case keep it SIMPLE – your goal is to excite, engage and enthuse your fellow directors/ colleagues/boss/board (not bore them to death).
When presenting this type of stuff, think like them. Talk their language. What do they need to know to support this decision? It’s important to stick to the facts (while resisting the urge to become carried away by your own excitement). If that sounds patronising, it’s not meant to be. I see this sort of stuff happening every day and it is holding ‘team HR’ back.
Always start with the ‘why’
Too many people dive into the ‘what’ (strategy) and the ‘how’ (tactics) first. So colleagues may well become excited in the short term. However, without context (the ‘why’ – setting the scene), and the benefits (the ‘what if’) the enthusiasm soon peters out and everyone moves onto the next big thing.
This is why so many ‘initiatives’ fail. (Initiatives are not a very good idea – if we’re looking at the big picture, the longer term, then this is a culture change; a new way of life, joined-up steps and stages on a journey – far more than a series of ‘initiatives’.)
This book is not all about research – it’s a practical guide to achieving productive, profitable, performing business. However, you have to start with hard evidence to be able to progress this and thus make
a difference. And remember, you do have access to every piece of knowledge ever written, right there in the palm of your hand – so use it and use it wisely.
Below are just a few simple examples of ‘ammunition’, found at the time of writing, with which to persuade, cajole, negotiate or otherwise sell the idea to the relevant parties.
A few good reasons your board should sit up and listen:
- Companies with low engagement scores earned an operating income 32.7% lower than companies with more engaged employees.
- Companies with a highly engaged workforce experienced a 19.2% growth in operating income over a 12-month period. (Source: Engaging for Success: enhancing performance through employee engagement – prepared for the UK government, David MacLeod and Nita Clarke)
- Engaged companies grow profits up to three times faster than their competitors.
- Highly engaged employees are 87% less likely to leave the organisation. (Source: Corporate Leadership Council study of engagement levels of 50,000 employees globally
- A disengaged employee costs an organisation approximately $3,400 for every $10,000 in annual salary.
- Disengaged employees cost the US economy up to $350 billion per year due to lost productivity. (Source: McLean & Company)
And, of course, by becoming a great place in which to work, your organisation will:
- attract great talent, retaining it longer than you do now
- by improving engagement, you will also boost productivity, innovation and profits (for your CFO or FD) and save money
- win some awards thus improving your profile with clients and employees
- increase brand value and image.
First, though, you’ll probably be required to prove it…
Don’t just take it from me
“If you’re lucky enough to work with a CEO who gets it like I do, there is little to be done to get folks on board. But if you don’t, then go back to basics – cite the facts, commit to measurement, shout about your achievements and impacts and find other influencers who can speak to their experiences.’
ISABEL NAIDOO, VICE PRESIDENT HUMAN RESOURCES, FIS GLOBAL
“The value of people has to be shown to be proportional to key objectives and cost. We can show that to our board pretty well at EE and I think this is why HR is given air time at the top table.’
ROBERT PURDY, DIRECTOR OF IT, CUSTOMER MANAGEMENT AND DELIVERY, EE
“The CEO and the board must have the appetite for people-centric ideas – without that, you are unlikely to succeed. Once you have a supportive senior leadership team, the HR function should outline a clear strategy and plan to deliver – linked to the business agenda throughout. Get buy-in and non- HR sponsorship for projects, then involve as many people as you can to ensure that you stress-test the execution of your initiatives.”
ALAN MELLOR, HEAD OF EMPLOYEE ENGAGEMENT, PENTLAND BRANDS
Jane Sunley is a CEO, celebrated author, lecturer, speaker and mentor as well as an established and renowned authority on ‘all things people’.
She is a non-executive director and a visiting fellow at two UK universities as well as speaking and writing extensively on the subject of people and HR.
