pd 7 july 2011

PeopleDynamics

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Journal of the South African Institute of People Management www.ipm.co.za

South Africa at the crossroads

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CONTENTS

EDITOR’S LETTER 2

MANAGEMENT 3

Managing people is the hardest job in the world.

IPM 5


OPINION PIECE 6

Fast, cheap and good: Pick any two

By Immo Böhm

SKILLS DEVELOPMENT 7

Promoting from within: the key to upskilling BEE candidates

By Belinda Gault

RETRENCHMENTS 8

Banks continue to struggle with cost containment

By Francois Beyleveld

MENTOR MATTERS 9

Dead man working

By Gary Taylor

TECHNOLOGY 10

Fix your gutters before looking at the clouds

By Liam Terblanche

TEAM MANAGEMENT 11

Why teams fail

By Ken Blanchard

EXPERIENTIAL MARKETING 12

It’s all about the experience

By Ricky Robinson

TRAINING 13

Do less, but do it well

By Suzanne Hattingh

65TH ANNIVERSARY ISSUE 14

My time at the IPM

By Dudu Msomi

FORTHCOMING ISSUES FEATURES

AUGUST 2011 – Women in business, recruitment,

training, coaching and mentoring

SEPTEMBER 2011 – Payroll Admin.

EditorialAlex Bouche E-mail: [email protected] BookingsHelen BennettsTel: 011 326 0303 Fax: 011 501 2878E-mail: [email protected] Eagle Publishing CompanyTel: 011 326 0303 Fax: 011 501 2878E-mail: [email protected] FurneyTel: 011 326 0303 Fax: 011 501 2878E-mail: [email protected] ProudlockTel: 011 326 0303 Fax: 011 501 2878E-mail: [email protected] Carter Tel: 011 326 0303E-mail: [email protected] Central Office287 Kent & Harley Street, Randburg PO Box 3436, Randburg 2125Switchboard: 011 329 3760Keith PietersenTel: 011 329 3760 Fax: 011 329 3765e-mail:[email protected]

People Dynamics is the monthly journal of the South Africa Institute of People Management (IPM). The IPM is dedicated to the effective development of human potential.

In terms of fast emerging global challenges, it is critical to champion the strategic role of human resources and to acknowledge that both development and management are catalysts for growth.

In the spirit of progress and support, the IPM provides members with effective leadership and access to appropriate knowledge, information and the opportunity to network with key local and international players.

People Dynamics provide a forum for debate and discussion on all issues affecting people managers in South Africa, the African continent and beyond.

People Dynamics is distributed to all members of the South African Institute of People Management (IPM), and to other key decision-makers in the industry. To receive People Dynamics regularly and enjoy additional benefits, including discounts on HR-related services, professional networking events and HR vacancy postings on the IPM web-site, contact the membership manager of the IPM.

No part of this publication may be reproduced without prior written approval from the IPM.

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AND DEVELOPMENTORGANISATIONS

ISSN 0261-2399The views expressed in this publication do not necessarily reflect the values of the IPM.

WORLD FEDERATION OF PERSONNELMANAGEMENTASSOCIATIONS

EDITOR’S LETTER

Having had a recent experience of managing a team of people on a project I can concur with our leading article, managing people is one of the hardest jobs in

the world. There are so many different management styles and personality types and sometimes the two that have come together just don’t fit. How, as a manager do you manage this? Is it your job to change your management style in order to fit the particular subordinate?

I struggle greatly with people that do not tow the line and miss deadlines for no particular reason. More often than not, as managers, we blame our management style. But personality plays a major role too and some employees just do not and probably will not have the pride and personal will to achieve or meet your expectations.

Yup, managing people is defi nitely the hardest thing to do.

July 2011 People Dynamics 3

People are one of the most expensive and often least productive resources in many organisations. I know many

employers who constantly complain about the high cost of people and the problems associated with getting rid of them when they don’t perform. The problem lies less with the hassle of employing people, than it does with bad managers and poor management.

Becoming a people manager is something to which many people aspire and that many achieve at some stage in their careers. Being good at it is entirely different. In my experience, good people managers are extremely rare and this is because there is so little that prepares and helps managers to really manage people effectively. The first mistake that managers make is to adopt a management style (usually a style with which they are most comfortable) and the second is the arrogant belief that they are entitled to it. Managing people is about getting the best out of others and not about how you would like to go about it.

Different people respond to different approaches and a single management approach will only work well for those best suited to it. If you manage large teams it is highly unlikely that every team member will respond in the same way. We all know that some people need constant management and supervision, whilst others perform best when left alone. The trick is to discover who needs to be managed and how.

I have held management positions for over 25 years (10 of them running my own businesses) and it took me almost 20 years to discover why I had such mixed results managing people. Simply put, I didn’t manage appropriately. For decades, I adopted ‘MY management style’ rather than one appropriate to each individual subordinate. The challenge to me was: what style or approach to adopt with different people and when. In recent years, I discovered the most simple and basic concept that I had been overlooking. In adopting a certain approach, I needed to consider 2 simple factors. Firstly, was the person able to do the job required and secondly, what was their attitude towards doing what was necessary? I call

the mixture of ability and attitude, Attibility. Attibility refers to an individual’s blend of ability to do the job

and their attitude towards doing it well. Ability stems from the individual’s level of training, education, experience and resources to be able to do the job whilst attitude is made up from the basket of mental attributes including enthusiasm, passion, courage, open-mindedness, willingness to learn and self esteem.

People who have lots of ability but little attitude should be able to perform well but usually don’t. They need direct and forceful management, whilst people who have great attitude but lack the ability, need training and guidance. People, who have the necessary ability, as well as great attitude, can be left alone. Taking a soft, developmental approach with people who should be able to do well but don’t, does little to bring the performance results you want. Similarly, a forceful approach to a person with great attitude who just doesn’t know how will have the effect of dampening their enthusiasm.

I personally know many people managers and with few exceptions, they all complain about lack of performance from certain subordinates and all of them struggle to get consistent, good performance from their teams. I also know of many managers who have conducted disciplinary hearings with staff for all manner of transgressions, but seldom for basic lack of performance.

If managers are responsible for getting things done through others, shouldn’t they be held accountable for the performance (or lack thereof) of their subordinates? Managing people well is one of the hardest jobs in the world and managers often blame everything and everyone else. There are countless books, courses and programs on management but we often overlook the most basic elements:

Be absolutely clear about what must be accomplished and how it will be measured and make sure that the subordinate is clear on this too.

Employ the right people for the job. This includes making sure

MANAGEMENT

Managing people is the hardest job

in the world.By Andre Grobler

4 People Dynamics July 2011

they have the ability to do the job as well as the attitude required to do it well. (Many managers inherit staff that they did not employ themselves and this makes point 3 all the more important.)

Actively and continually manage people and their performance by adopting an appropriate approach according to their attibility.

When active and appropriate management fails to deliver

results – take action.I have found such great value and success in employing

these principles in my own businesses, that I started a company (Attibility Management Training and Consulting) to help my own organisation, and others, to employ, manage and control high performing individuals.

By being clear on what people need to accomplish (rather than do), by hiring the right people, managing them appropriately and taking action when they don’t perform, every people manager can bring major performance results to the workplace. I know, because I have made all the mistakes and paid the price and I have experienced firsthand, the benefits of managing people properly.

Managing people implies doing what you can with what you already have and when it comes to poor performers that means we are dealing with the symptoms rather than the causes. The causes of poor performance are usually one of the following: We weren’t clear about what we wanted from the person doing the job. We employed the wrong person. We didn’t monitor or measure them. We didn’t take appropriate action at the appropriate time.

So in order to get the best performance out of your team, you need to be clear from the start, make sure you’ve got the right person for the job, and above all, keep your finger on the pulse.

Andre has published two books on this topic, Wheelbarrows have to be pushed and Attibility – using your attitude to get ahead. They are both available at leading book stores.

Andre Grobler, Director, Attibility Management training and consulting (Pty) Ltd and CEO of Ngikwazi Group, www.attibility.co.za, 011 454 4440

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MANAGEMENT


IPM

South Africa has reached a tipping point of economic development and social inclusion. It faces high unemployment rates, with a particularly worrying mass of

jobless youth. There exist burning issues around effective service delivery, especially where services are absent in some of our poorest communities; an educational system struggling to keep up with the demands placed on it and yet critical to securing our productivity and performance on a local and global platforms; rapid and essential infrastructure development requirements to meet our growing economy. All this is amidst a still-present legacy of economic disparity and underdevelopment. These are not small issues to tackle. Our country has many demands currently being placed on it, expectation levels are high, and we need to deliver within a frame of limited resources.

In North Africa and the Arab world, we have seen how citizens of those countries have refused to accept what they perceive as a lack of tangible action by authorities, to address the compromising social and economic daily realities and the hardships of its citizens. History is littered with examples of social unrest due to the unsustainable and unethical maintenance of a dominant elitist group. And yet it is not easy to throw challenge to the status quo through raising concerns, expressing an opinion at variance with current thinking, advocating a new path, action or set of policies. These all take a measured degree of courage and conviction.

However this message is not intended to catalogue a series of insurmountable challenges. It is intended as a call for action to both business and government. The IPM seeks to create and maintain a healthy debate about a way forward.

The Ministry for Economic Development in the National Growth Path, and the Planning Commission through its recently released 2030 Vision document for public comment, have called for urgent action, for courageous leadership.

Any country that needs to be successful and maintain political and social stability, addresses the needs of its citizens fi rst. These are the people who placed their confi dence in the government of their choice and trust that the actions, programmes and policies of those in authority have their needs truly at heart (thus the ANC Youth League has propagated a solution which in their view would reach out to the masses of this country – nationalization and land reform).

To succeed in this environment, the South African Government and captains of industry need to identify those who can lead us into a path for the future, courageously. They need leaders who are able to do what all the leading thinkers talk about in our modern and complex world, to be able to listen, to challenge, to make good decisions, and then to act – to infl uence.

I am reminded here about a set of principles, introduced in 1977 by a Dr Leon Sullivan. Sullivan joined the Board of Directors at General Motors in 1971 and he used his infl uence on that Board to challenge, he showed courageous leadership. His backdrop was the 1970’s, when the South African government of the time was uncompromising and voices of reason globally engaged in the struggle for liberation went unheard.

According to the Sullivan Principles website, General Motors at the time was the largest employer of Black people in South Africa. Sullivan drafted what was called the ‘Sullivan Principles’, and they called for multinational companies to play a much larger role in the advancement of human rights and social justice. These principles of 1977, with one addition in 1984, were in confl ict with the Apartheid government’s policies of racial segregation and unequal rights. The principles are still relevant and applicable to all South African companies across the board. In summary, they required multinationals operating in South Africa then to practice the following: Equal and fair employment practices for all employees. Equal pay for all employees doing equal or comparable work for the

same time of period.

Initiation of and development of training programmes that will prepare, in substantial numbers, blacks and other non-whites for supervisory, administrative, clerical, and technical jobs.

Increasing the number of Blacks and other non-whites in management and supervisory positions.

Improving the quality of life for Blacks and other non-whites outside the work environment in such areas as housing, transportation, school, recreation and health facilities.

Working to eliminate laws and customs that impede social, economic, and political justice (added in 1984)”.

These principles called upon multinationals to rise to the challenges facing the country then and they had impact on other local companies who also adopted the Principles, such as HL&H Mining Timber for whom I worked at that time. The Sullivan principles underpin the transformation we are striving for

in South Africa. But to effect real change, we need to lead with authenticity, and to approach debates such as Nationalization with the reality of the sustainable and tangible benefi ts for our citizens truly at heart. We need to commit courageously, to be able to challenge the status quo where this improves the plight of those in small towns, rural areas and urban areas who are not able to empower themselves through education or training because these are absent or of poor quality; who cannot support themselves as there are no jobs.

We need to create genuine programmes which are truly felt in all corners of our country. And those who are able to have most infl uence, to really lead on effecting change, are those leaders in government through its policies and business through its actions. The role that business has to play in putting South Africa onto the global landscape as a formidable emerging economy, with the social and economic best interests of its citizens fi rmly at heart, through training and development, access to opportunities, this role cannot be underemphasized.

The Institute of People Management seeks to create and keep a healthy debate alive as we all embark on this journey. Courageous leaders can infl uence the conditions we live in so that we can authentically effect change; a challenging role to assume, but one that will have multiple benefi ts for the success of the whole country and all those who live within it.

When people are mobilized around such positive and collective energy driven by business as recommended in the Sullivan Principles, possibilities which were before invisible, will become visible and the country will start benefi ting from its diversity.

Rre Elijah Litheko, IPM CEO.


Rre Elijah Litheko,


OPINION PIECE

In this internet driven world of instant gratifi cation and low cost software, isn’t it time we had super-fast delivery of cheap business

solutions? Don’t be fooled; while there is plenty of really good free or low cost software, especially those based on cloud computing models, fast and cheap remain an extraordinarily bad idea. So bad, in fact, that it could cost the farm.

Impatient companies which attempt to implement an enterprise resource planning system (or Integrated Business Platform, the next generation of ERP) on the quick are destined for failure, unless they are able to compress the work required to select, implement, confi gure and commission the system into a timeframe which does not allow for any shortcuts to be taken. That will drive up the cost, inevitably. The rule is very simple: fast, cheap, good. Pick any two of the three.

It is certainly possible to implement a good project fast, but it is not going to be cheap as expensive consultants will be necessary to do most of the work.

On the other hand, it is possible to opt to do much of the legwork internally - but then your project is not going to be fast, although the ultimate cost will be considerably reduced.

If quality isn’t a consideration and the project is rushed, it could well be fast and cheap, without those expensive consultants. But you guessed it: it will defi nitely not be good.

For any provider of complex enterprise software, there is pressure to meet the sometimes unreasonable expectations created by the internet age. The bottom line is that while getting a good system up and running in as little time as possible is an ideal, it should always be remembered that it should take only as long as it has to, and no longer than that.

We don’t like cheap and fast and no good. ‘The bitterness of poor quality lasts long after the sweetness of making a deadline is forgotten’, so the adage goes; or as the Afrikaners say, somewhat more succinctly, ‘goedkoop is duurkoop’. This rings especially true where enterprise software is concerned.

It remains an ongoing challenge for project managers to manage expectations; the fact remains that these projects are complex, they do take time and, to deliver the promised result, they also take a lot of hard work. Not only from the provider of the solution but also from the client themselves. That hard work comes at a cost, especially since ‘business as usual’ has to take place around the implementation of the integrated business platform.

Avoid that cost and commitment at your peril. Expect a complex project to take some time. Expect it to cost money. And then expect delivery of a good system to run your business better.

Immo Böhm, Managing Director, Afresh Consult, +264 81 124 7515, [email protected]

Fast, cheap and good: Pick any twoBy Immo Böhm


SKILLS DEVELOPMENT

As the world’s largest package delivery company, UPS employs more than 400 000 employees globally, 44 000 of which are in managerial

positions. More than 75% of UPS’s management staff began their careers in non management positions, proving that UPS is committed to developing staff across all spheres of the business, in spite of the challenges posed by an increasingly competitive skills environment.

In South Africa, UPS employs 278 individuals including 18 managers and 14 junior managers. UPS South Africa recruits employees from previously disadvantaged communities and develops these individuals from the ground up. This system of promoting from within and the empowerment of previously disadvantaged communities is a defi ning factor in this global company’s approach to talent management.

The philosophy of promoting from within is very relevant in today’s business climate and is particularly effective for us when combined with the requirements of Broad Based Black Economic Empowerment (BBBEE). It allows UPS employees to be trained on all aspects of the business, presents them with the opportunity to develop their professional skills and to identify their career paths.

Keeping all staff motivated and challenged by providing access to better opportunities plays a signifi cant role in employee satisfaction. Managers and potential managers understand that by making a long term commitment to UPS, they will be exposed to great career opportunities and skills development across the company structure.

To further address the challenges related to recruiting from previously

disadvantaged communities, UPS South Africa also developed and implemented a learnership programme, providing individuals with the skills and knowledge required to gain formal employment in the forwarding and clearing industry.

Many UPS employees are BEE candidates that have taken advantage of these opportunities. There are, in particular, two individuals whose stories are testament to the fact that promoting from within works at UPS.

Nad Naidoo joined UPS as an operations clerk in 1994. He was given the opportunity to learn and develop his professional skills and was promoted to branch manager in January 2005 after spending time in a business development role and with UPS partners in Kenya. Naidoo also obtained a B.Com degree from Unisa during his employment at UPS and is committed to continuing his growth in the company.

UPS has motivated him to focus on his career and play a more infl uential part in the company’s development and will continue to embrace the commitment to excellence demanded by the organisation.

Francois De Klerk also joined UPS as an operations clerk in February 2004. After being promoted to a supervisor position in Cape Town, De Klerk was able to demonstrate his passion to succeed. As a result he was promoted to Centre Manager in Durban and is working on his Masters degree in Business Administration.

Belinda Gault, human resource manager, UPS South Africa

Promoting from within: the key to upskilling BEE candidatesBy Belinda Gault

Skills


RETRENCHMENTS

There is an alarming trend amongst global banking institutions in that they remain reactive in addressing existing costs, the result of which has been

an increase in staff cuts in a bid to solve the situation. This is however a quick fi x that will not solve a deeper problem.

The economic crisis brought to light a number of hidden challenges in the global banking fraternity and a signifi cant trend has emerged amongst local banks, one of which has been the recording, of signifi cantly high cost-to-income ratios.

In light of this, South African fi nancial institutions have taken an aggressive stance on reducing overheads and are currently looking at the reduction of head counts to help bring down costs, fatten the bottom line and contain spiralling costs.

Let’s take a look at Bank A as an example, where cost-to-income ratio has increased to 56.2% while operating expenses grew by only 15%. These fi gures include a 19% increase in information technology costs and expenditure from the previous year, with an increase in staff costs, the largest component of its overall costs, of 16%.

Another example, that of Bank B, where its cost-to-income ratio was fast climbing, from 52,4% during 2008 and 2009 to a worrying 61,7% in the year to end 2010. Reasons for this may be pinned on demands placed on banks by the National Credit Act, as well as sustained lower interest rates and sustained weak demand for fi nancial services. But there is an exception and from our analysis this appears to be Bank C that has managed to contain its costs. While this Bank also went through the process of reducing headcount, it conversely managed to slash operating expenses by 13% over the past year, an achievement that few of its peers have managed to emulate.

Cost-to-income ratio shows what percentage of a bank’s income is spent on operating expenditure or opex. This is particularly relevant at a time when opex is being crunched in favour of capex or capital expenditure. If you analyse the fi gures, since the beginning of 2009 costs have been climbing quicker than actual income. That said a factor to consider is that on average, the cost of people on the income statement of a bank account for around 60% of the total expenses of the business.

Ongoing staff cuts shows that banks are analysing expenditure in the wrong places and by cutting back on staff they are merely applying Elastoplasts to the symptoms. From what we can see the real issue is that cumbersome and

unwieldy processes are affecting the bottom line and many of them currently don’t have a real view of the actual costs associated with their processes.

Banks need to ask themselves: do they understand the true cost of each product for any market segment? Can they effectively allocate the exact or accurate costs to each product, segment or channel? Banks cannot allocate costs down to a product, segment or channel level as it can be very complex to allocate. Cutting staff quotas may not always be the right approach if the banks have not done a detailed analysis on the aforementioned areas.

Looking back to the early 1990’s and 2000, banks had an excellent handle on the costs per process and used this information when making pricing policy decisions. Consequently the time of blaming the recession and local and global regulatory policies, for ill managed expenses are over. The facts are that year-on-year revenues are growing at a snail’s pace while expenses are growing by around 13% based on current market trends.

They fi rst have to start identifying problems in processes, capacity and support costs, and only then can they allocate costs accurately. After this they can ask themselves the question – should I cut staff? They must analyse which products, markets and segments are profi table or non-profi table - then only can decisions be made about rationalisation. Cost structures must also support pricing models and future decisions regarding new products and services being offered must be made on these.

Traditionally, as a rule of thumb, staff expenses in a bank equate to about 60% of overall operating expenses. It is the remaining 40%, of which IT and communication expenses are the biggest contributors that affect the viability or merit of the product. Most banks do not have a real understanding of how its IT cost expenditure contributes towards each product.

A detailed understanding and a “what-if” cause-and-effect analysis of actions on the processes are critical and banks need to effectively investigate what works, what the true costs of products are, as well as their ability to price the products correctly according to the true costs without unnecessarily growing capacity. There is simply no point in constantly trying to be innovative, if this very innovation is the reason cost-to-income ratios continue to spiral out of control.

Francois Beyleveld, Principal Consultant for Performance Management at SAS Institute

Banks continue to struggle with cost containmentBy Francois Beyleveld


MENTOR MATTERS

Occasionally work-related suicides get reported in the popular press, but only when they are dramatic enough to warrant a

story. Most HR people only deal with a few in their lifetime, so it is not spoken about much in polite HR circles, other than when justifying an EAP budget. A more recent case was highlighted internationally, and the response of the employer was particularly interesting.

Foxconn in China has mass produced 90 million iPhones and other smart gadgets for major players, but caught the public eye in the way it reacted to 17 work suicides (9 between March and May alone) by erecting suicide nets. This was because the deaths were all caused by staff jumping off the high rise buildings at the employer’s sprawling campus in Shenzhen, accommodating 300 000 workers in one location.

Then, when one suicide note stated that the jumper was ending his life in order to provide for his family, the compassionate HR department responded by withdrawing the death benefit for employees! I wonder whether its cancellation was prompted by HR wanting to impact behaviour, or finance wanting to contain a premium escalation because of increased claims experienced. Stories have emerged about the employer’s 12-in-a-dormitory housing, 1 day off a month and punitive practices which would give our labour organisers cold shivers.

When the press and Foxconn client companies raised concerns about working conditions, salaries were hiked 30% while also issuing sociological explanations that these deaths-per-thousand are purportedly less than the Chinese national average. Truly, an employer to die for! Then along comes France Telekom with 46 suicides in a progressive socialist first world country, confounding the simple assumptions which many of us make about sweatshop conditions in the east.

OK, hot shot HR practitioner, so what would YOU do in the face of a dozen suicides at the workplace, all committed in the same manner? Does it help you (or confuse you) to know that Foxconn’s suicide nets and withdrawal of the death benefit actually worked? Immediately, the jumping “trend” normalised, allowing other measures to be put in place for the medium and longer term.

Ask any well worn HR mentor about their experiences with suicides at the workplace (just think what a statement it makes that a person chooses to end their life at your work premises.) Some of us would have tried to isolate the incident as “unhappy Harry,” while others assume it to be symptomatic of the organisational culture, and launch into a climate survey, to try to diagnose a single cause of organisation-wide toxicity.

Perhaps your best advice is to avoid having the CEO, CFO, CIO or even the HR “ou” trying to diagnose something for which they are not trained, especially when their own reputations might be impacted by the findings. This is where you need to defer to the Employee Assistance Programme people, who will probably not allow you to get away with a single, simple diagnosis and solution.

No, it does not mean that we all need to spend zillions on creating a workplace like Google. It also doesn’t mean we have to hike the salary bill by 30% like Foxconn. A long time ago, the Hawthorne studies showed that worker productivity improved as a result of both workplace improvements and the worsening of conditions – the conclusion being that people responded positively merely to the fact that the employer was showing an interest in their conditions.

With global competition driving low cost producer mentalities, the workplace where we spend most of our waking hours is largely

depersonalised, clinically branded, and relatively unsuccessful at eliciting true employee engagement. Some of us are doing some great things – learning as we go, of course – but working at it in partnership with our people. The consolation from Hawthorne is that (even if some of your projects don’t work) you are making a difference.

Perhaps one of our greatest challenges in HR will be the way in which HR can help create a good “Employer to work for” while adapting to global competitive pressures, without mimicking Henry Ford’s mindless production line.

The cost of failure is getting high.

Dead man workingBy Gary Taylor

Gary Taylor has written several articles for People Dynamics over the years. His Mentor Matters is a regular column in which he addresses topical HR issues from the perspective of a career HR practitioner (and mentor) and offers some new perspectives on regular issues that HR practitioners face daily.

Gary has been in HR for 25 years, in National Mutual and Unilever, HR director at Medscheme for 14 years, and three years as Executive Director: HR at Wits University. Two years ago, he was appointed to start up HR for a new university in Saudi Arabia, where he is now Director of the Policy Offi ce. He is registered as a Master HR Practitioner and Mentor with the SABPP, served as vice president for the IPM for two years, and received the IPM President’s Award in 2008. He has written a chapter for an HR book, been published in People Dynamics and HR Future, and was the SA correspondent for the UK magazine, People Management, for a year.


TECHNOLOGY

The recent media is abuzz with Cloud Computing in all its forms and permutations. And it has become apparent that, to some

degree, each and every one of us will sooner or later be faced with the decision of what cloud services to use, and when to adopt this promising architecture.

If everyone promises cheaper services, more up-time, and most importantly, a reduction in infrastructure costs when using Cloud Computing, what should the CIO in your company be looking at in preparation for this latest wonder of our IT world?

The answer lies in bottle necks and redundancy. If I were to build a new house and be completely dependent on rain water for all my requirements, the fi rst thing I’d do is to make sure that there are no bottle necks in the transfer of water from the catchment area into some form of reservoir. From there, I’d have to establish a redundancy system of new, large-diameter water pipes to those areas of my household that will be needing access to the water. In other words – fi x up your gutters and increase the size of your water pipes. Remember, in order to run my household, I cannot go without water, and neither do I have my own borehole anymore. (I sold it to buy the new water pipes). So yes, tapping resources from an external provider is defi nitely more cost effective if you are starting out a new house. Converting an existing household’s water-supply to accommodate this new network may require some noticeable investment.

Cloud Computing is no different. Companies surrender their own boreholes (client-based software licenses and services) in order to make use of a resource feed from within the ‘cloud’. As such, the days of using large power-hungry servers in an expensively run air-conditioned room may seem to be numbered. But, as with boreholes, you move the weakness from your own infrastructure to that of the service delivery

mechanism. In this instance, your network supply.Setting up your company with quality network infrastructure, from

your local area networks, to your switching systems, domain servers and routers, is a non-negotiable before committing to cloud services. Similar to tapping water resources from a catchment area via high quality, high capacity gutters, you have to concentrate on redundancy and distribution.

At the moment, there are a number of public cloud solutions that do not allow for online-offl ine redundancy. In other words, with the exception of a few experimental frameworks – including Google Gears – should one perform mission critical applications on a cloud service, and the connection to the cloud goes offl ine, you would need to resume on a local instance of that server until the network has been reconnected. And even if this was possible, is it feasible?

Why go to the cloud in the fi rst place if you have to fork out some serious computing power to run the service locally?

So to summarise; initially, one should not see the utilisation of public cloud services as a money saver. Use that infrastructure savings (servers, software licenses, electricity, etc.) to spend on upgrading your networking system. This should span your feed from the internet right through to the network adapters on your PC’s.

One fi nal point on the decision of when to adopt cloud computing: Until your infrastructure has proven itself, limit the usage to services that you can do without for short periods of time. I’d be happy to run my mail server in the cloud, but mission critical services which may include Accounting, CRM, ERP, etc. will have to wait until I’m satisfi ed that my service provider can deliver on his promises.

Cherrie Lawlor, [email protected], 011 719 8000, www.accsys.co.za

Fix your gutters before looking at the cloudsBy Liam Terblanche


TEAM MANAGEMENT

Are your teams organised, innovative, high performing teams that meet their goals? Or are they ‘pseudo teams’ which struggle

because team members can’t work together effectively? Good teamwork doesn’t have to be hit-or-miss, not if you start your team up properly, and then get out of the way so it can get on with doing the job.

Teams are critical in our 21st century business landscape, which is getting increasingly competitive and increasingly complex. Organisations that will succeed in the future are ones that are nimble and innovative, and can maximise and build on the knowledge and richness coming from different perspectives across different departments.

This is why “None of us is as smart as all of us” has long been one of my favourite mantras. Not only can a good team achieve far more than any individual – however intelligent or dynamic that individual might be – any single individual will also perform better if they are working as part of a great team.

When teams work effectively, they can make better decisions, solve more issues, enhance creativity and build skills faster and easier than individuals working alone. There is no doubt they are the most effective unit you’ll fi nd when it comes to responding quickly and effi ciently to the changes and demands heaped upon businesses today. But when teams go wrong, the fallout can devastate performance and productivity overnight.

So why do teams fail, and how can team leaders prevent failure and promote success?

My colleague Dr Eunice Parisi-Carew, a teams’ expert says the fi rst mistake leaders make is when they are setting teams up for the fi rst time. Panning for success starts here, she says.

“Many teams are thrown together with no more thought than: ‘we need a team to do this.’ The whole process is really rather sloppy, with only vague ideas of how the team will work. Teams that don’t have a clear purpose get off on the wrong foot because they don’t know where they’re going, or even why they are a team. You have to have a strong vision of excellence, of where you’re going, a clear foundation that includes a purpose and a charter of what the work is and how you are going to get there.”

Another common mistake, according to Parisi-Carew, is creating a new team out of several already high-performing individuals. “It’s much better to build new teams by bringing together team members who have good teaming skills, and diverse skills,” she says. “Then they can develop a group of people into a champion team, instead of trying to fi eld a team of champions, who can’t actually work together.”

Parisi-Carew also encourages team leaders to rethink the conventional hierarchy, where they are the ones in control and they

manage the individuals within a team, rather than the team itself. Yes, it’s a challenge to ignore our natural instincts to see teams as collections of individuals, but actually a team is a separate entity with its own pattern of behaviour. Leaders trip up when they forget this. For example, if someone on the team is misbehaving, rather than allowing the team to deal with it, the leader feels compelled to go in, take that person out, and deal with the disruptive behaviour. And while that action may be expedient, it deprives the team of the opportunity to work through that experience, benefi t from it, and move forward as a group.

Seeing a team as a whole also helps combat fear and insecurity. At an individual level, collaboration means being mutually accountable, sharing the workload with everyone focused on the same goal. It means sharing expertise and jumping in to help others out. But in reality, everyone wonders if it’s really in their best interests to work together and share openly when they start with a new team. Knowledge is power, and people are afraid to give it away – especially in organisations that reward individual accomplishment.

“Swift and effective decision making and effective confl ict management helps to build trust within teams and tackle any personal insecurities,” says Parisi-Carew. “Key here is dealing with differences and confl icts quickly; ignore or avoid differences of opinion and they will only escalate, potentially blowing a team apart or turning it into an apathetic group. But handled well, confl ict can lead to higher levels of trust, creativity, and accountability.”

Finally, being a team leader means seeing your role as helping the group along the journey, not doing the job for them. You’re the one who needs to fi gure out what the team needs as a whole, to provide the direction, the vision, and then let the team grow and develop into self-suffi ciency.

Teams hit trouble when the leader wants to hang on to power. A good team leader follows the curve as the group develops, moving from providing direction in the beginning, to offering support, encouragement, and recognition. This builds success and takes full advantage of the benefi ts of collaboration.

Learning to let go, to put your team fi rst, is an empowering experience that leads to high-performing, high fi ve teams!

For more information on Blanchard’s team building solutions, email [email protected] or call 0800 980 814. Web www.kenblanchard.com Social Media Links: Twitter @kenblanchard; www.facebook.com/kenblanchard Blog: www.HowWeLead.org Business and Management forum: www.leaderchat.org. © The Ken Blanchard Companies, 2011

Why teams failBy Ken Blanchard


There’s no denying that the modern consumer is looking for more than just products and services and that the experiences offered by

some companies are keeping them ahead of the pack. While products and services still play their part, the experience associated with these aspects is what grabs consumers’ attention and holds it, in a world of many distractions. Experience is key to success.

The experience is the new economic offering. To stay ahead of competitors, companies need to offer something more than just a product or service - they need to offer an unforgettable experience. This shift in mindset is one LRMG knows well and tries to not only take to its clients but encourages them to actively promote to their customers too.

A company creates an experience when it intentionally uses services as the stage and goods as props to engage people. Experiences will be different for each person depending on whether they are engaged on an emotional, physical, intellectual or even spiritual level. Companies should bear in mind that experiences are not exclusively about entertainment or only for the consumer industries. Companies stage an experience whenever they engage clients in a personal, memorable way. Business-to-business settings also present stages for experiences.

LRMG decided a while ago to participate in the experience economy and aligned the business to offer a unique ‘Xperience’, as LRMG terms it. We started offering engaging sensory journeys that people would participate in and connect with, leaving an indelible impact on their lives. We immediately saw a positive response from the market. Beyond delivering experiences, all solutions should be measurable and as such decided to highlight to their clients the ‘Return on Xperience’, a twist on Return on Investment.

So what makes a truly memorable experience? The fi rst dimension of an experience is that it involves participation from the people involved - this can be active or passive. The second is that experiences create a connection, which creates either absorption or immersion of participants.1

LRMG has taken the principles of what makes the ultimate experience and puts them into practice with its clients. Experiences are themed, they harmonise impressions with positive cues, eliminate negative cues, mix in memorabilia and engage all five senses. Many clients we encounter need a unique experience. Their employees need something with the wow factor for real change to happen. The theme we decide on includes all elements of design and staged events so the clients experience a story line that captivates them. Our creative team really goes to town in this regard and we’ve taken some very unusual and unique sensory experiences to clients.

One of the key elements that companies need to remember when aiming to create an experience for customers is that it needs to be seen as worth the price being charged. Excellent design, marketing and delivery will be every bit as crucial for experiences as they are for goods and services.

Customers will have no problem paying for a truly memorable experience but will be quick to criticise and look elsewhere if the experience is less than impressive. This means that ingenuity and innovation is as important in the experience economy as in the services and products arena.

To truly connect with customers in an experiential way, companies need to understand their customer, not be afraid to innovate and make experience creation an integral part of all aspects of the business. We pride ourselves on the LRMG Xperience and the impact it makes on our clients’ work and personal lives

Ricky Robinson, Chief Executive Offi cer, LRMG Performance Agency

(Endnotes)1 B. Joseph Pine II and James H. Gilmore. Welcome to the Experience

Economy: Harvard Business Review: July - August 1998. Pgs 97 - 105

It’s all about the experienceBy Ricky Robinson

EXPERIENTIAL MARKETING


TRAINING

In the current tough economic times the money we spend on training must deliver the desired results. Unfortunately, despite all

the efforts spent on the systems and processes for improving the quality of training, too much of the training is done badly. This not only wastes valuable resources, it undermines the credibility of skills development, especially among managers who do not see the positive impact of training in the workplace.

Too often, training is seen as a quick-fi x solution, such as, “my administration assistant is not performing as per my expectations, send her for training”. Generally, too little time is spent on planning training interventions. However, the more time spent on planning, the greater the chances of success of any endeavour – whether it is planting tomatoes or implementing a complex change management strategy.

Training can deliver the desired results only if it addresses clearly-formulated competency requirements for a job, if the skills needs of the incumbent of the job have been identifi ed through a valid analysis process, and if the programme is designed to address the identifi ed skills.

Therefore, the starting point is to formulate clear job requirements for all the occupational categories in your organisation: What must the persons in this job know, understand and be able to do, and what additional attributes must they have to perform the tasks to the required standards? This should be followed by a skills audit to determine the skills needed in the organisation to achieve its immediate as well as its medium- and long-term goals and objectives. The audit should then compare the skills employees currently have with the skills needed to determine the gap.

An organisation-wide skills audit should be conducted about every three years, or when there have been major changes in the organisation that affect skills needs. The results of the skills audit should form the basis for conducting an annual training needs analysis.

Frequently, training is used to address problems that it cannot fi x. Training is effective only in addressing performance problems that are caused by a lack of skills. Therefore it is essential to analyse information on performance gaps – for example, the results from performance appraisals – to determine the underlying causes. Only then can the most appropriate solution to the performance gap be selected. Poor performance as a result of ineffective management, low motivation, lack of appropriate tools or incorrect placement, is best solved through people management or operational processes – not through training.

Where there is a need for training to address skills gaps, it is essential to select the type of programme that is most appropriate to addressing the identifi ed need. This would generally include programmes that are aligned to the National Qualifi cations Framework (NQF), such as learnerships and skills programmes, as well as programmes that fall outside the NQF, such as short courses, informal in-house development activities or mentoring by senior colleagues.

While NQF-aligned programmes are important for people who wish to gain credits or qualifi cations, it is not true that other programmes have no value. For example, Minister Trevor Manual and his management team could attend a three-day programme on effective national and interdepartmental planning processes offered

by local and international academics and experts. They would gain valuable information and insight through this programme that would have a signifi cant impact on our country – but do they really want to be formally assessed to gain fi ve credits on the NQF?

The workplace skills plan (WSP) was designed to provide information required by the SETAs; it was not designed primarily as a planning tool for addressing the skills needs of organisations. Unfortunately, this is why most employers do not see the relevance of the WSP and generally submit it simply to qualify for the SETA mandatory grants, where after it gathers dust in the WSP fi le.

I always encourage employers to develop a more comprehensive training and development plan for internal use, from which they extract the information required in the WSP. This internal document should include all the planned formal training and informal development programmes, the names of staff to be trained, the preferred training providers, cost, delivery schedule, etc. so that it serves as the implementation plan to address the organisation’s skills needs.

Many learnerships are implemented without the necessary planning and fail to achieve the desired results for the employer, the learners or the broader nation in improving productivity, providing opportunities to the unemployed for income generation and unemployment and poverty. Millions are spent on training a thousand learners who end up with no qualifi cation and without any prospect of employment. This is not unique; I encounter similar horror stories in my work with learnerships across the country. There are many success stories, but they are overshadowed by many poorly implemented learnerships, mostly stemming from poor planning.

Decisions on learnerships should primarily be driven by an internal organisational need – not by external drivers, such as SETA funding or BBBEE. I had a number of participants in recent workshop on implementing learnerships who planned to use learnerships to get the six points on the BBBEE scorecard. However, there was no internal need for learnerships, nor was there the buy-in from line managers, nor the required internal processes for successful learnership implementation.

We must get the basics right if we want the millions we spend on training to have the desired impact. The current trend to increase the numbers of people we push through training programmes to achieve SETA or BBBEE targets are counterproductive. We should be doing less training, but doing what we do well. This will ensure that the money spent on skills developed builds the skills base essential for our country to improve service delivery and increase productivity in a highly competitive global economy.

Suzanne Hattingh, managing director of Learning for Performance Improvement

Do less, but do it wellBy Suzanne Hattingh


My introduction to the Institute of People Management was in 1999 when I was still the Human Interest Director at Saatchi & Saatchi

Advertising. Abby Goodford, the then Chief Executive Offi cer had met me at an HR Executive Roundtable and approached me to Chair the People Dynamics Publication Board. However when I moved to Cape Town to take up the position of Deputy CEO of the Life Offi ces’ Association (LOA) in 2002, I resigned from the IPM Board.

Since studying Corporate Governance in 1997, my goal was to establish a strategic advisory and consulting fi rm working with leadership. Now I have achieved that. Therefore my strategy then was to move and learn across the disciplines and functions that make organisations tick so that I can have as much practical experience of general management and leadership as possible to be a good advisor.

By 2001, my was wish was to run an organisation, not to remain in advertising, whether non-profi t or for profi t, in order to get the entrepreneurial, leadership and management exposure that I required. There is a quote by Paulo Coelho, the author of The Alchemist, which I believe in which says, “When you want something, all the universe conspires in helping you to achieve it”. It may not come neatly wrapped, but the universe does create the conditions for your learnings to occur.

Abby Goodford was a guardian angel brought into my path to help me realise some of those personal goals. When she got wind that I was in the job market in mid-2003 and that what she called “not-good-fi t” companies were interviewing me for positions, she requested that I consider directing the passion I have for my work, for marketing and my professionalism to the IPM. She was single-minded in her belief that my next challenge should be as CEO of IPM and that she had the confi dence that I am the best person for the job. I was caretaker for three months she took off to complete her MBA thesis as an opportunity for me to see if I would really like to be considered for the CEO position when she resigned on her return and the position was opened up to the market. The three months gave me some insights (not comprehensively) into the state of the organisation. I communicated that my intention would be to stay for one year.

The next challenge on my journey was to study for the MBA and the structure of the Gordon Institute of Business Science’ (GIBS) MBA did not make it feasible for the CEO of the organisation to be simultaneously effective in their responsibilities because of the calibre and quantity of staff at the time, especially when the Global Elective was at the same time as the IPM Convention. I had already put it off when I moved to Cape Town as I was determined to do it through GIBS as I was determined to complete it by the age of 35. From an outsider coming in, the HR industry was in fl ux and there was a pervasive venomous attitude towards the IPM that I had not experienced when I was on the Board.

The Human Resource Council for South Africa (HRCOSA) had come into existence in November 2002 and its President was Shaun Schwanzer. Many HR related organisations chose to participate in the HRCOSA and distanced themselves from IPM. I also came in at a time when the much respected IPM Diploma had not been accredited because the process had not been completed timeously. On top of this, the bank balance was much depleted. It was not even going to cover salaries for the month and prospects looked bleak especially in a context of large amounts still outstanding to creditors, with Sun City wanting the deposit for the Annual IPM Convention and with members not renewing because of the HRCOSA versus IPM positioning which was very unfortunate. The publisher of People Dynamics, which is an

important and tangible representation of membership value and a crucial income generator because of the advertising, walked off the project and created a competitive HR magazine. There were previous staff members suing the organisation for outstanding bonus payments. My welcome into IPM was defi nitely a baptism of fi re. This background is critical in understanding my tenure and state of mind whilst I was the CEO of the IPM and to appreciate the tenacity of this organisation because it is still standing. It was evident that the true shape of the organisation was not known and needed to be protected. The focus was to stabilise the fi nances and to rebuild the image in disillusioned quarters and to create awareness in new markets so that the campaign against IPM would not destroy, the founder, Prof Isobel White’s legacy. My focus was to be systematic about what I can do and what I cannot and what was priority and what was not.

I will be forever grateful to George Lindique who opened his home to me so that I could go and see him whenever I wished to gain from his wisdom and experience. I drew strength from him as mentor. He helped me to understand the background of the IPM, to help me understand the personalities and the dynamics that were shaping the HR landscape so that I could be strategic about what was within my purview and capacity to control. As I did my rounds to get seasoned HR Practitioners to come back into the fold of IPM, many white males voiced the feeling of alienation. You know who you are. Thank you for respecting me enough to give me a chance and a number of those practitioners attended the IPM Convention during my time after years of not doing so. When I knocked on some doors requesting sponsorship for the IPM Convention, there were amazing individuals who helped unlock budgets from marketing on our behalf. You know yourselves. Thank you.

The funny part, which was also not pleasant at the time, was that though Shaun Schwanzer was creating waves for the IPM and expending much energy in diverting support from it, he would call and apologise. We met often for lunch. He would invite me to rugby games at Loftus. When he bought his new BMW, he called and offered me to take it for a spin. The chill went down my spine when I was informed of his passing. He died the same day as my sister, S’celo Msomi. “There are moments when troubles enter our lives and we can do nothing to avoid them. But they are there for a reason. Only when we have overcome them will we understand why they were there” (Paulo Coelho, The Fifth Mountain).

My time at IPM was a platter of experience and skills in leadership, management, new business development, marketing, sponsorship, editing, writing, publishing, fi nancial management, strategy, confl ict resolution, negotiation, sales, information technology and the list continues. It was a fertile ground for learning about my strengths and weaknesses. I learnt that there is just something about experiencing diffi culties; pain and hardships that makes us better human beings. Better teachers. Better leaders. When things are tough, that is when our true character and values come out. What I learnt for sure, is that I like the person I am and are becoming with every trial and triumph I have experienced so that every breath can be my last, without any regrets. Shaun Schwanzer was my teacher in many ways. I can hear him saying, “Promise me you’ll always remember: You’re braver than you believe, and stronger than you seem, and smarter than you think.” (Christopher Robin to His Pooh Bear from Winnie-the-Pooh).

ED’s Note: This article was to have been part of the 65th Anniversary Issue (July 2011) but was unfortunely delayed

My time at the IPM – Dudu Msomi – former CEO of the IPM

65TH ANNIVERSARY ISSUE


2011 IPM ANNUAL CONVENTION

The convention committee has already started planning for the hosting of yet another intellectually stimulating convention. Some of the issues that the convention committee has started deliberating on because of their impact on business and the economy in general are the

following:• The impact of the global economic environment on business operations locally.• People management issues emanating from both the presidential address and the budget speech.• Complexities of the South African labour market, including the shortage of critical skills and talent. In the same manner that global leaders both from public and private sectors converge under the umbrella of the World Economic Forum

to fi nd solutions to major global economic, political, and social problems, so is the tradition of HR professionals and business executives in South Africa and neighbouring countries to converge annually under the umbrella of IPM Annual Convention to fi nd growth oriented solutions confronting organisations locally.

In a study conducted by the Boston Consulting Group (BCG) in 2008, IPM Convention has been identifi ed as the conference that attracts most delegates compared to similar conferences globally. This is due to the fact that the IPM Convention Committee takes the job of organising and hosting the convention seriously and high quality speakers both locally and globally are always keen to participate in this premier HR and business leadership event.

Rre. Elijah LithekoChief Executive Offi [email protected]


IPM 55th ANNUAL CONVENTION & EXHIBITION - SUN CITY,

NORTH WEST PROVINCE, SOUTH AFRICA, 30TH OCTOBER TO 2ND NOVEMBER 2011

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IPM Member rate: R7550.00 + VAT Non-Member: R8550.00 + VAT

Gala Dinner ONLY: R1000.00 + VATCocktail Party ONLY: R800.00 + VAT

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NB!! Subject to availability

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Please submit 2 weeks before the event as IPM cannot be held responsible for dietary requirements that have been submitted late. (eg. Vegetarian, Kosher, Halaal)

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2011 IPM AWARDS

Nominations are invited from organizations and individuals who qualify to receive the following awards on the basis of the contribution that they have made in their respective fields:

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Nominations to be submitted to [email protected].

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