Page 14 - MetalForming July 2013

Human Capital By Debbie McGrath
Ignite Innovation: Engage your Employees
Posted to HR.com by David Tighe, partner, Bovo-Tighe
Iread two articles recently that confirmed what human- resource professionals have long known: Innovation comes from people who have had their creative drive nur- tured and encouraged, and does not require massive invest- ments in technology to achieve.
The first article that caught my eye was by banking-indus- try blogger Chris Skinner.
“It intrigues me how often we have a conversation about innovation,” Skinner wrote, “and everyone starts talking about new technology...Apart from the fact that innovation is no longer the hot topic it was in banking—the credit crisis saw to that—innovation has nothing to do with technology. Innovation has to do with people.”
Right on. I see this all the time in my own work. Great tech- nology is bought to improve productivity, and fails miserably because the people who need to fully utilize the technology are not engaged in any part of the process. As Mr. Skinner finds, the lowest-tech outfits often innovate better than their highly automated rivals.
“There are loads more (examples) we could reference,” Skinner continued, “and they all have one thing in com- mon: None of their innovations have anything to do with technology. Their innovations are all about design, process and culture. So stop thinking that innovation needs, requires or relates to technology.”
You can singlehandedly be the champion of this person- based innovation mindset in your own organization.
The second article that grabbed me, from McKinsey & Company, had this headline:
“Five ways CFOs can make cost cuts stick.”
Here are the five ways McKinsey recommends companies make cost-cutting initiatives stick:
• Assign accountability at the right level.
• Focus on how to cut, not just how much.
• Don’t let P&L accounting data get in the way of cost
reduction.
• Clearly articulate the link between cost management and
• Treat cost management as an ongoing exercise.
As HR leaders, we can play a big role in establishing a cost- conscious culture the right way, marshalling engaged employ- ees who take the lead in innovating ways to invest time and money in programs and activities that add value and improve the bottom line. Senior managers cannot implement such strategies. The staff must, and employees will only do so if they believe in the cost-cutting mission and they make it part of the culture.
From the McKinsey article:
“Most companies treat cost management as a one-off exercise driven by the need to manage short-term profit targets—and some of these exercises do succeed in the short term because of constant pressure from the CEO or CFO. Yet such hasty cost-cutting activity typically goes into reverse once the pressure is removed and rarely results in sustainable changes in cost structure. In our experience, the reason is that one-off exercises don’t require internal capability building. A better approach is to use the initial cost-reduction program as an opportunity to build a competency in cost management rather than in mere cost reduction. A more enduring approach includes changing the way people think about costs by, for example, setting new policies and procedures and then modeling the desired behavior.”
Changing mindsets within a company requires HR expert- ise. Here is your opportunity to step in and help the CFO and his staff by ensuring the cost-cutting initiative is construct- ed sustainably; by taking the time to clearly communicate the strategic reasons for the change in culture; and by establishing training that instills within the staff an instinct to tie a dol- lar spent to a revenue-generating activity.
Done right, cost-cutting is not a burden, rather an inno- vative activity that inspires better use of available funds. Money saved can be used for anything that has the potential to generate return-on-investment, too.
Don’t Judge an Applicant by His Background Check
Posted to HR.com by Eric Chester, author of the Reviving Work Ethic blog
Imagine you have one opening you’re trying to fill, and 16
eager applicants aged 17 to 22—all with more than ade- quate skills for the job—awaiting their second interview. Before the interviews begin, you discover from background checks that among these candidates, five are recovering addicts, two are pregnant unwed teens, three are on proba- tion and one is recovering from a traumatic brain injury. Eight
strategy.
12 MetalForming/July 2013
www.metalformingmagazine.com
Content for Human Capital comes courtesy of Debbie McGrath, founder and chief instigator of HR.com, Aurora, Ontario, Canada. McGrath has a degree in computer science and business administration from the University of Guelph. Founded in August 1999, HR.com aims to help build great companies by con- necting them with the knowledge and resources they need to effectively manage the people side of business.
www.HR.com
tel: 877/472-6648