HR Disrupted

It's time for something different (2nd Edition)

Lucy Adams

• Publisher: Practical Inspiration Publishing
• Year: 2021
• ISBN:
  9781788602105
• Edition: 2
• Topic: Business
• Subtopic: Human Resource Management
• Index: Business

THE NEW AND UPDATED EDITION OF THE CLASSIC WORK ON DISRUPTIVE HR. THE WAY WE WORK IS CHANGING FAST, AND TRADITIONAL HR IS NO LONGER FIT FOR PURPOSE.

Equipping our organizations to meet today's demands requires something very different. This book provides HR professionals with:

• a compelling case for changing HR
• practical people solutions for a disrupted world
• strategies to make the changes they need
• ways to equip HR with the right capabilities and mindset

Lucy Adams is a 'recovering HR Director'. Having held Board-level HR roles in major organizations, she is now on a mission to change outdated HR practices for good.

Part I

What’s wrong with HR?

Human resources, HR, personnel – whatever you call the team looking after people in your organization, it’s broken. This sounds extreme, but it’s not a view I’ve come to lightly. My doubts about the way we HR professionals have been doing our jobs first arose around seven years ago while I was HR director at the BBC. In the five years that I have been running my company Disruptive HR, my conviction has strengthened. Then in 2020, of course, everything was turned upside-down. But the facts remain the same. HR is not fit for purpose.

This isn’t to say I don’t have a huge amount of sympathy for those who work in HR – it’s not as if we have an easy life. We’re being asked to deliver more for less, achieve greater productivity, and magic up more innovation. There doesn’t seem to be a senior executive in existence who hasn’t read about getting rid of appraisals and isn’t asking what we’re going to do about them; it seems to be getting harder, not easier, to make people work cross-functionally; and those pesky millennials won’t stop demanding more flexibility. Then, just when we thought our HR budgets might increase for the first time in years, the financial director’s begging bowl has reappeared. The problem is, despite the fact that all HR professionals face these same challenges regardless of their sector, the HR function isn’t rising to them. So, what can we do about it?

In this book I’ll be talking you through what’s wrong with HR and how we need to turn conventional wisdom on its head. We must re-imagine our relationships with our employees, becoming slicker, faster, and more creative in our work with them. And to do this we must stop playing the company policeman and learn to be the ‘people experts’ in a radically new way.

I’ll be talking to you as a fellow HR professional, although my thoughts are also relevant for anyone in a leadership position who sees people as the key to his or her company’s success. Some of my ideas you may passionately agree with. Others you’ll find surprising, even shocking, and a few you might downright dislike. That’s all fine. I just want to provoke you into new ways of thinking about this amazing profession of HR, which I still love with all my heart.

I’ve also got some free resources which will help you tailor this book to your own needs, enabling you to see where you stand on these issues right now and to decide what changes to make for the future. Just head on over to http://disruptivehr.com/each-hr-diagnostic/ and take a look.

One thing’s for sure: HR can’t carry on in the same old way or it will be irrelevant before we know it. On the other hand, if we can transform the way we practise HR, we’ll be turning our organizations into the winners of the 21st century. There’s no time to lose, so let’s get started with the reinvention of HR.

1

HR is dead (long live HR)

Almost any introduction to a book about business disruption risks sounding clichéd and tired, so let’s just get into it. The business world we now live in is so different, so fast-moving, so disrupted, and so changed from the way it was, that the traditional methods of managing people are just not cutting it anymore. And I’m not just referring to the COVID crisis. They haven’t been for some time.

This means everyone who’s in the business of leading people has to find new ways of dealing with, or even creating, complex and rapid change. You need higher levels of creativity and productivity than ever before, which means the old style of relationship you have with your employees is no longer relevant. In your time in HR you’ll certainly have experienced many changes in the way you work: saving money, driving up creativity, restructuring, and attracting new and different people are all on your agenda. But have you found ways to translate this into action? In my talks and workshops with HR managers and leaders I find this is the main challenge, and overcoming it starts with fully appreciating what it is you’re dealing with in the first place.

So what does HR have on its plate today, and how is it different from before? I’m going to describe this by using my most recent experience as a proper HR director – at the BBC. While you may not have worked in broadcasting or the media you’ll still be familiar with the BBC and the challenges it’s facing. In addition, the BBC certainly isn’t unique; it’s a microcosm of the disrupted world in which all organizations live. Whatever business you’re in, you’ll have your own version of the ups and downs we faced.

There are seven main areas of change which HR needs to address. Let’s understand what they are first, before we work out what to do about them.

1. Technology is transforming our businesses

I’m sure the way you watch television, listen to radio, and consume media generally has changed dramatically in recent years. When I was a kid, if I wanted to watch my favourite programme I had a choice between BBC1, BBC2, ITV, and then (oh, the excitement!) newcomer Channel 4, and I’d have to make sure I was sitting in front of the box at the allotted time in order to catch it. Fast-forward to today and all that has changed. My daughter recently came back from her around-the-world backpacking trip, and one of the first things she said to me (apart from ‘Hello’) was, ‘Have I got Netflix in my bedroom? I want to binge-watch the second series of Vampire Diaries all weekend.’ I had to restrain myself from telling her how lucky she was.

Today we ‘time-shift’ our viewing. Did you know 40% of drama programmes are now watched at a time when they weren’t originally scheduled? When a new series comes out, my husband and I will install ourselves in front of it in one go – why wait an entire week for the next episode? Not only that, we ‘dual-screen’, which means tweeting or tapping on our laptops while we’re watching the TV. Smartphones have brought a richer and more involved experience to the act of watching television, which has obvious implications for the way in which the BBC now has to produce its programmes.

What’s more, the BBC doesn’t have full control of its content any longer. Think of the reporting around the Arab Spring, much of which came from locals in Tehran and Egypt who filmed events with their smartphones and gained access to places the BBC couldn’t go. That’s a very different business model to the one in which the BBC would produce a programme for a scheduled time, and people would either watch it or they wouldn’t.

So how does this relate to you? If you work in high-street retail, for instance, you’ll be managing the impact of Internet shopping. If you’re in banking, technology will have made massive differences to the way you work. If you own a restaurant, your customers will have checked out reviews of your place online before stepping through the door. It’s easy to take for granted the changes technology has made to the way we do business, so it’s worth pausing to consider what impact it’s made on your sector.

From an HR perspective, technology’s rapid emergence means we need our leaders not only to cope with fast-changing business models, but also to embrace and even create them. Have you got leaders in your organization who are thinking ahead about what’s needed, and coming up with the ideas and methods to make it work? We’ve all seen what happens to those companies who haven’t.

Often the best ideas for how to harness technology come from the younger generation, so HR needs to ensure these employees are managed in a way that inspires and excites them. Unfortunately, if your team is like most you’ll be more concerned with driving costs down than ensuring you have an emerging group of staff who feel free to challenge the status quo. The old-style, command-and-control company structure is geared towards operational efficiency, not innovation and creativity.

2. Our competitors aren’t who they used to be

Whenever I give a talk and ask those in the audience who have Netflix or Amazon Prime to raise their hands, a sea of arms instantly waves. What a change from the days when the BBC’s main competition used to be good old ITV; it was so simple then, wasn’t it?

But here’s where it gets interesting. When I was at the BBC, broadcasters like Sky, Netflix, and Amazon Prime weren’t just our competitors, they were also our collaborators and partners. For instance, when we realized we couldn’t afford to bid for the Grand Prix broadcasting rights on our own, we teamed up with Sky. Similarly, the third series of Ripper Street was a co-production between us and Amazon Prime.

Your competitors aren’t always the enemy anymore. They now come from places you don’t expect, which means your relationships with them won’t be as black-and-white as they used to be. We need to think about these relationships in a less simplistic way, which is a big shift for many senior managers. The problem is we don’t generally have the skills and capabilities in our organizations to help them do that.

3. We’re working in a collaborative, networked world

When I was at the BBC it was – like most organizations – essentially tribal. There was ‘Tribe’ News, ‘Tribe’ Television, ‘Tribe’ Radio, ‘Tribe’ Online, and so on. Getting these tribes to collaborate and co-operate with each other could feel like an insurmountable challenge. But today that’s just not good enough; if an organization wants to adapt to change its employees need to be able to work together across functions and geographies. There are two reasons for this: to save costs and to provide a better customer experience.

A great example of cost saving is the way in which the Glastonbury Festival is now covered by TV companies. Until relatively recently, if you’d been at the event and wandered past the media area in your wellies, you’d have seen production crews from BBC Radio 1, BBC Radio 2, BBC 3, local news stations, and probably BBC News as well. But audiences don’t really care which channel their Glastonbury footage is coming from – they just want to see the bands and hear the interviews. So now one in-house Glastonbury producer pulls together all the different teams, making it a more cost-effective and coherent experience for their audience; in fact, once the teams started collaborating, viewing and listening figures for Glastonbury rose 77% across all channels.

But the most significant way in which all businesses need to develop internal collaboration relates to my very first point: the Internet. In the ‘old days’ (which were actually less than 20 years ago), whenever the BBC created a new programme, such as Strictly Come Dancing, the production team would call the online department and say, ‘Make us a website’. But audiences don’t consume TV programmes and websites in isolation – they see them as separate parts of the same experience. This meant I had to find a way of getting the online and television departments working closely together, which was easier said than done. In the end it was only when fresh people led each department that we were able to create a properly joined-up experience for our audience.

If you’re a retailer this is something you’re already grappling with. In the past, when you stepped inside a department store, you would have had an experience very different from shopping on the company’s website. That’s all changed. Now you can buy an item online and pick it up in-store, just like you can with the major supermarkets and many clothing retailers. As customers, this is something we’re expecting companies to get right. But behind the scenes it’s only created through collaboration between different leaders, and that’s not happening as quickly as it should.

Think back to when you last tried to get disparate teams in your company to collaborate. It’s tough, isn’t it? And it’s all down to the way in which we’ve typically led people; we’ve developed managers who focus only on their own budgets, staff, areas of expertise, and customers. Now we need to shift towards working from the customer backwards, ensuring our organizations can respond to the needs of the customer instead of those of the silo.

4. Organizations are changing structurally

Every HR person has grappled with organizational restructures, and it can feel like a thankless task. With many companies transporting work offshore, staff must be relocated to different regions or even countries. To have better relationships with our BBC regional audiences – who, after all, pay their licence fees no matter where they live – we moved children’s and breakfast TV, sport, and Radio 5 Live from London to Salford, drama to Cardiff, and arts to Scotland. This was a massive shift for us and highlighted a degree of London snobbery in some of those who were expected to move. My favourite quote came from a senior manager: ‘I can’t possibly move north, I’m a vegetarian!’ This is a small and rather silly example, but it shows the difficulties involved in managing geographic changes.

Managing virtual teams is the next challenge. I’m sure you no longer have everybody in your head office working 9–5 together; you’re liaising across time zones, cultures, and locations. Many companies are still figuring out how to tackle the issues related to managing, developing, and leading people who aren’t based in the same physical space and, of course, we are now facing the demise of the full-time office and a future hybrid of permanent home workers and occasional office contact.

5. Companies want more for less

HR managers are now having to make large-scale redundancies as a result of the current economic crisis. Of course, every business is under constant pressure to save money, Global Financial Crisis or not. But my point here isn’t only about the cost-cutting; it’s also about how it strikes at the heart of the traditional, paternal employee/employer relationship. When pension schemes are curtailed, and terms and conditions are changed, it undermines employees’ sense of entitlement that their organization is always there to look after them.

At the BBC we made 30% of senior managers redundant and closed our final salary pension scheme. The shock waves were not just financial but emotional: ‘I assumed I’d have a job for life and you were going to take care of me and my pension.’ What’s more, in the public sector especially, many people feel their employers haven’t replaced what they’ve taken away in security with the sweetener of a more modern and dynamic style of management.

6. The workforce is shape-shifting

This pressure to save money has also led to more zero-hours contracts and contingent workers, a situation which can be difficult to manage. For instance, everyone working in BBC Productions used to be on staff, but now for programmes like Strictly Come Dancing you’ll find hundreds of people working for a brief period while the show is out, with the numbers plummeting to only three or four after it’s aired. Television production companies have been operating with this model for some time now, but for many organizations this is a massive change.

Let’s think about how it used to be. In most companies, an employee would join, go onto the payroll, and ‘belong’ to the organization. It was a solid, dependable, loyal relationship on both sides. But now this standing army of staff is only part of the story; when our workforce is largely made up of freelancers, as has been happening in the tech world for some time, we need to create a more agile training and talent management approach. How do we think beyond our standard boundaries so we attract the best people, but at the same time cope when our teams come together quickly and disperse?

The rise of the ‘millennials’, ‘Gen Y’, and now ‘Gen Z’, as they’re sometimes called, is another challenge. Some people claim this group is completely different to how older managers were when they were starting out in their 20s and 30s, but I’m not of that school of thought. Whilst I don’t think that you can ascribe a whole set of motivations and behaviours to a specific generation, I do believe the younger generations have a different set of expectations than their predecessors. They assume they’ll have a level of autonomy, will be asked their views, and will have a voice at a relatively junior stage; they don’t have the same sense of deference older people grew up with.

My heart sank when my daughter came home from college one day and said, ‘I had to see the head o...