Identity Management and the Australian Organisation

Quorum United Presentation December, 2003

Quorum UnitedQuorum UnitedHR Leadership 2003 National HR Leadership 2003 National

ConferenceConference

Identity Management and the Australian Organisation

Karen van DrutenKaren van Druten

The Menzies HotelThe Menzies Hotel

22ndnd December, 2003 December, 2003


We have people initiatives in place so why We have people initiatives in place so why the need to consider identity and the need to consider identity and

organisational culture?organisational culture?


Several factors motivate companies Several factors motivate companies worldwide to re-evaluate not only their worldwide to re-evaluate not only their companies’ organisational practices but also companies’ organisational practices but also identity management:identity management:

1. The need to articulate an employment offer to distinguish themselves in the marketplace to both attract & retain critically-skilled individuals

2. To attract potential employees who have the ideal “fit” with their culture to increase the likelihood of both performance & retention

3. To target specific workforce groups e.g. along generational lines

4. Overseas trends in employment branding which have provided a competitive edge


Presentation objectivesPresentation objectives

To introduce an expanded concept and business rationale for the description “Organisational Identity”

Frameworks for managing identity and ensuring a performance enhancing culture.

What do some organisations do to make a difference to their businesses?

To use some of the concepts to test the rigour of your organisation’s current identity management


What is culture?What is culture?

“how things are done around here” “how things are done around here” (Ouchi & Johnson, 1978)(Ouchi & Johnson, 1978)

“the set of beliefs, values & behaviour patterns that characterise an

organisation”(Fleming, 1994)

and more recent research suggests

Development of a corporate culture is now believed to be an Development of a corporate culture is now believed to be an active process whereby HR professionals can assist in active process whereby HR professionals can assist in determining the culturedetermining the culture(Melvin, 2000) and hence the

personality of the organisation andhow it can best be influenced to improve performance


The Strategic Fundamentals VISION (our aspirations, strategic intentions)

MISSION (our purpose)

VALUES & behaviours

STRATEGY (how we will achieve our goals)

requires commitment and actions that achieve results

STRUCTURE LEADERSHIP CULTURE

Goals, Plans, Policies, Budgets, I.T.Systems, Job descriptions, Tangible rewards

Brings the documentation alive

Patterns in behaviourIcons rituals, stories, ceremonies, Beliefs

Primary Influence Mechanisms

(R.R. Collins 1995)(R.R. Collins 1995)


What is an organisational identity?What is an organisational identity?

Absolute sameness Absolute sameness v’s v’s

an organisational personalityan organisational personality


Is there any true link between people and Is there any true link between people and profits defined in the literature?profits defined in the literature?

Focus on all stakeholders and leadership delivers higher net income, revenue, employment & stock price growth, (Kotter and Heskett 1988)

Organisations with strong performance-oriented cultures witness far better financial growth (HBS, 2003)

Five human resource practices including climate & rewards delivering 20% more chance of survival (Welbourne and Andrews 1988)

High performance work practices deliver 14% market value premium (Huselid 1995, Huselid and Becker 1997)

Workers placed in the center of core strategy produce more jobs and higher long-term returns (Bilmes, Wetzker and Xhonneux 1997)


Economic PerformanceEconomic Performance

Over 11 years - 1977 -1988

Culture

Strong Weak

Revenue 682% 166%

Workforce Growth 282% 36%

Share Price 901% 74%

Net Income 756% 1%

John P. Kotter 1992(Study of 171 Corporate Firms)


Performance Enhancing CulturesPerformance Enhancing Cultures

Top Management Action• Commitment to adaptive values• Communicate endlessly• Consistency• Don’t allow “new/other”• Arrogance in others• Egos under control

Corporate Culture Values

Value leadership Value key constituencies

Behaviour Change practices to “fit” business Engage in modern business practices

}

Man

agers Core

Other


Study 2: Study 2: Watson Wyatt’s Watson Wyatt’s Human Capital Index® Asia-Pacific Human Capital Index® Asia-Pacific 20022002

78.7% Shareholder value add and superior returns 78.7% Shareholder value add and superior returns linked to good people management across 41 linked to good people management across 41

specific people practicesspecific people practices 31.5% HR function effectiveness 21.5% Collegial, flexible, customer-focused workplace 17.7% Clear total rewards and accountability 5.4% Recruiting & retention excellence 2.6% Communications Integrity

-11.2% Training unintelligently - 3.2% Investment in HR technologies - 0.3% Not adjusting headcount with the times -0.3% Multi-source feedback


Study 3: Study 3: Hewitt Employers of Choice

better 3 to 5 year growth in revenues & profits and typically outperform other companies in industry sector, attract more employees & have lower turnover

1. People Leadership – leaders are trusted, communicate more and are more passionate about their employees

2. Compelling Employment Offer – have a higher purpose & offer a different work experience

3. Accelerated Development – invest more in L&D for employees

4. Culture & Values – fun & celebration, employee recognition & performance management

What makes a Best Employer?


Some observations to note across Some observations to note across employers of choiceemployers of choice

Observation #1: In response to pressures to secure staff, companies

leverage their corporate reputations and people practices to become “employers of choice”. The decision to become one is a strategic commitment that, at its core, requires long-term investment in people as valuable assets

“achieving this distinction takes more than words in a press release or mission statement. Pretenders are soon found out and not soon forgiven” (Katz & Miller “Viewpoint”, HR Today, May 1997)


Some observations (cont’d)Some observations (cont’d)

Observation #2: Being a worthy organisation is very important. This

is reflected in terms of policies and practices that support people in doing their best work and developing to their fullest potential, both professionally and personally



Observation #3: Being known and recognised both as a leader in the

marketplace, and as a leader in creating an environment that enables all people to succeed, is a standout feature.



Observation #4: Although practices differ, most customise their

recruitment and retention tactics to meet the demands of their business and local labour dynamics



Observation #5: Specifically, companies target key areas believing a

particular issue to be very important or a significant factor in enabling a company to become an employer of choice e.g.

*career development*compensation *reputation in the community*corporate culture *management style and leadership *work-family programs *performance and profitability*employee communications*diversity education


Employment Branding and the emerging trends in Australia

Along generational lines e.g X = Learning & mentoring

Graduate recruitment on campus

To reposition “old” industries

Tailored collateral with brand image and values


Marketing & Brand Identity Marketing & Brand Identity

NameName Logo Logo Slogan Slogan LocationLocation


The architecture of Brand & Organisational The architecture of Brand & Organisational Identity Identity

Corporate Values Corporate Values

& &

Brand EssenceBrand Essence

PersonalityPersonalityIdentityIdentity

Points of proofPoints of proof

SBU SBU rolesroles

The OfferThe Offer


What is your identity & offer to What is your identity & offer to employees? employees?

Core BenefitCore Benefit

Benefits of working for ZZZ Co.Benefits of working for ZZZ Co.

Features of the jobFeatures of the job


Building your blueprintBuilding your blueprint

““Work to live Work to live

& grow”& grow”

LifestyleLifestyle

LocationLocation

Personal Personal

DevelopmentDevelopmentCommunityCommunity

Salary Salary packagepackage

Charity run & Charity run & local local

community community

projectsprojects

Sports teamsSports teams

MentoringMentoring

Development Development

PlansPlans

Job rotation & Job rotation &

stretch assignmentsstretch assignments


A Framework for building Organisational A Framework for building Organisational Identity Identity

Seven steps to building, implementing & sustaining brand success:

Step 1

Identify brand drivers irrespective of the campaign adopted ( e.g. to present a unified image, to become an EOC)

Step 2Step 2 Gain sponsorship and commitment (e.g. business case)

Step 3Step 3Dedicate resources (e.g. marketing support, cross functional project team)

Step 4Step 4 Develop a branding strategy (either internal resources or external agencies)


A Framework for building Organisational A Framework for building Organisational Identity (cont’d) Identity (cont’d)

Seven steps to building, implementing & sustaining brand success: Step 5

Obtain internal stakeholder buy-in, communicate and roll-out the new employment brand ensuring consistency of the tag lines ( e.g. leadership buy-in through presentations, internal marketing/launch, external promotional collateral or website )

Step 6Step 6 Measurement (e.g. number of applications, job offer declines)

Step 7Step 7Evaluation (e.g. focus groups, customising for different groups)


Recruitment as part of a Wholesale Retention Strategy and Employment Brand Position

“small - company environment/big-company impact”

“Our decentralised environment provides the means for us to offer you the small-company

environment and culture that’s so inviting to work in, along with the big-company opportunities

for career development, advancement and impact.”

“Our People are our Greatest Asset.”

Microsoft merged its employment brand into the total

brand proposition, sending a message to potential employees that Microsoft values people and

intellectual capital.


An Example of Employer Branding SC An Example of Employer Branding SC Johnson People Programs - 5 areas of Johnson People Programs - 5 areas of uniqueness uniqueness

people leadership, career development,

accelerated development (training), employee recognition

work/life balance


Employer Branding Process Employer Branding Process IdeationIdeation

External market research ranked:

Flexible hours (4th)Balance with personal life (5th)

Describes ‘A family company’

Flexible hours (1st)Balance with personal life (2nd)


Employer Branding Process Employer Branding Process MeasurementMeasurement

Consumption modelsEmployee Opinion SurveysBrand equity (internal/external)LeadershipEmployee retention in $People ROI


And the payoff?And the payoff?

SC Johnson: Work Life Balance ratings 76% v’s 65% BE Benefits meet needs ratings 75% v’s 70% BE Reduction in voluntary turnover Attraction of younger employees Awards e.g. Best Employers 2002 & HR Magazine 2003 Gap is narrowing & practices are targeted


Other evidence of additional payoffs?Other evidence of additional payoffs?

Corporate Executive Board Study June, 2003: Consistent and unified company image Increase in the number of hits to job website & online

applications Increase in the number of applicant submissions & in self-

selection & retention Recognition of one brand Reduction in disconnect between candidates & company

image Reduction in recruitment & advertising costs Shorter time to fill Time savings on the part of recruiters Reduced dependence on search agencies Recognition awards


Questions Questions

Business

Identity Management and the Australian Organisation