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Developing Innovation and the role of HR

Annalisa Gigante

5 October 2006

AG 2

Index

• Defining Innovation• Innovation: the future growth engine• The key questions• The evolution of HRM• Improving your Innovation potential• Case study: the Innovation process at Manpower• Networking as a competitive advantage

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Defining Innovation

• the process of making improvements by introducing something new (Wikipedia)

• the introduction of something new (Merriam-Webster Online)

• the successful exploitation of new ideas (Dept of Trade and Industry, UK)

Successful innovation links new ideas and technology with market needs and creates value

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Innovation: the future growth engine

• Innovation fuels the Company’s growth

• Innovation is everywhere– R&D– New products– New / improved processes

• ..from disruptive to evolutionary change

Innovation is critical to the future success of a Company

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The key questions

• How do you promote and harness innovation?

• How can HR help?

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Transactions

Strategy

HR Administration Functions

Productivity &Performance Management

HRMStrategy

FacilitatingCultural Change

Operations

The evolution of HRM

• understanding the business• personal leadership skills and credibility• ability to manage change• ability to apply the best HR management practices to the business goals.

HR Managers are becoming business partners by shifting their focus from administrative output to outcome and results, through:

Strategic HR will enhance Innovation

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Improving your innovation potential

Innovation Potential

Metrics

Branding

Organisation Culture

Performance

Training

Talent architecture

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Branding

• What is the role of innovation within the organization?• Is Innovation a key driver of the Company’s brand?• Is it fundamental to the company’s image?• …or is it a secondary objective?

            

• Attract the right talent to the organization• Deliver the brand promise to customers.

HR has a role to play also in defining and delivering employer branding.

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Organisation culture

• How risk-averse is the organization?• Does it encourage or stifle creativity?• Is it open or resistant to change?• To what extent does it encourage knowledge-

sharing inside and outside the organization?• Is there a knowledge management system in

place?• Has the company set up discussion

communities around key issues?• Is the word “Innovation” often used in internal

communications?• Is the company more dynamic and fast-moving

or more cautious and bureaucratic?                   

A company’s culture is critical in delivering and encouraging innovation

BusinessStrategy People &

Organisation

Technology:•Process•Information

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Metrics

• Which metrics does the company use today?

• Are these encouraging the desired behaviour of employees?

• How are bonuses set?

• Do they encourage innovation or are they purely results-driven?

• Are there qualitative as well as quantitative elements in the goals?

• Are incentives individual or team-based?

Measuring success will drive behaviour

Processes & services

Leadership Quality

StrategicPartner

Change Agent

Into OutWithinEff

icie

ncy

Eff

ectiv

enes

s

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Talent architecture

• Attract, develop, plan and retain key talent with an integrated view

• Define each role’s specific technical and personal characteristics. RETAIN

TALENT

DEVELOP TALENT

ALIGN WITH

STRATEGY

ATTRACTEMPLOYEES

SORT OUTAND SEPARATE

INSERT IN ORGANISATION

HR OPERATIONS

People-based

strategies

HR can help line management define the right Talent

Architecture for the company

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Training

• Assess current skills and gaps

• Plan & carry out targeted training activities– Team Building

– Acquiring specific technical know-how

– Tools for creativity and innovation

• mind-mapping• Brainstorming• …

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Performance

• HR together with top management, has the key role in creating and maintaining a High Performance Organisation

• Engaging people’s hearts and minds to deliver profitable growth.• Establishing stage-gate processes for innovation

– allow new ideas to be assessed and tested

– Ensure that less-profitable or less relevant innovation projects can be stopped before the investment in them becomes potentially unprofitable.

IDEA GENERATION

DISCOVERY DEVELOPMENT

FEASIBILTY LAUNCHTESTING

The Innovation Process

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Improving your innovation potential

Innovation Potential

Metrics

Branding

Organisation Culture

Performance

Training

Talent architecture

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Case study: the Innovation process at Manpower

Global vs. local

innovation validation

Confirmed Global

projects

Country’sprocess innovation efficiency and effectiveness

Country’s market services innovation

Corporate Centers teams innovation for new activities

allows local innovations and global leverage when relevant

Source: Manpower

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Networking as a competitive advantage

• Most of today’s innovation happens in Teams• Joint projects business – academia• Knowledge management• Managing Networks inside and outside companies• Working with start-ups• Corporate venturing• Transferring ideas from scientific research into business

Focus on skills, technology and processes that build collaboration: communicating, sharing information,

organising, co-ordinating

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Appendix

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The HRM Paradigm Shift

• HR practitioners, in making the change to business leaders, need to shift their focus from just ‘managing resources & processes & transactional efficiencies’ towards defining & managing the framework for a high performance organization

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The Challenge for HRM

• Resourcing Talent• Achieving High Performance• Talent Development• Creating a Quality Work environment• Recognition, Reward, Remuneration• Benchmarking• …

• Key to success in this transformation are:– Ensuring a coordinated and integrated HR service

offer, from candidate attraction to separation– Aligning people with strategy

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The world of employment is changing

• The war for talent is accelerating

• Retention and Development are critical

• Re-skilling is a key challenge as low level skill structural unemployment is emerging

• Workforces are more and more mobile

• Individuals have new life style expectations :– more innovation– creative thinking– less hierarchy– new employment models

• Leading corporations must embrace the wave of change

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RETAINTALENT

DEVELOP TALENT

ALIGN WITH

STRATEGY

ATTRACTEMPLOYEES

SORT OUTAND SEPARATE

INSERT IN ORGANISATION

HR OPERATIONS

EXPLOITINNOVATION POTENTIAL

People-based

strategies

•Assessment•Career Development•Transfer•HiPo pool

management

•Compensation•Incentives•Rewards

(tangible / intangible)

•Performance assessment•Technical assessment•Separation and

Outplacement

•Evaluation and planning of needs for •Perms•Temps•Consultants

•Attraction & Selection •Mobilization of attraction assets

•e.g.Company Culture•e.g.Salary & Package•e.g Brand

•Induction Training•Perms•Temps•Consultants

•On site management for temps

•Perms + temps co-productivity

management•Employee + consultants teams

co-productivity management

•Definition of needs •Training•Team Building •Motivation•Alignment measurement

•Enabling innovation•Reward for innovation

•Labor Relations management

•Legal management•HR “back office”

processes (pay, 401k, benefits, etc.)

AG 22

The Innovation Process

IDEA GENERATION

DISCOVERY DEVELOPMENT

FEASIBILTY LAUNCHTESTING