HR Culture

HR transformation requires HR to change its own culture. In this section, we present a model of culture our clients have found helpful (Figure 1) and set out three cultural challenges for HR to address.

 
Figure 1: Culture model. 

We know that you cannot change culture easily and you cannot change culture by running culture change programmes. You need to be clear about the kind of culture you would like to create and how distant this is from your current culture. You also need to be clear about the values and behaviours that will create the desired culture. But you will not achieve culture change by just focusing on behaviour. Culture is the product of the way the organisational system works and therefore we shape culture by focusing on many different levers.

Figure 1 can be broken down into three components.

1. At the right of the model is the experience of culture which ultimately results in performance. A key task here is for HR to define its target culture which should be aligned to the overall business culture; reflect how the HR function will deliver value and which will drive high levels of discretionary effort and engagement from within HR. This task should be addressed at the envisioning phase so that by implementation there are some clarity and commitment to the culture HR is seeking to shape.
2. The middle section sets out how culture is expressed. We hope that this work will build on foundations already laid. For example, we anticipate that HR will be able to work through how organisational values are brought to life through the work of HR. We also expect the HR capability frameworks will reflect the skills and behaviours needed to drive high performance. The areas that may need particular attention are decision-making processes and, what Ed Schein calls, the artefacts — the stories, rules, symbols, climate, etc. that communicate culture. Good examples of work in this area are where:
   • HR teams have communicated the transformation story and the kinds of stories they would like colleagues in the organisation to be telling about HR at work;
   • HR teams have used symbols (like the National Grid capability framework) in order to get the message across;
   • HR teams have changed the rules to make decision making more effective.
   These are just some examples but we hope they illustrate the need for you to be very intentional about how culture is communicated verbally and nonverbally.
3. The left of the model lists the shapers of culture. These reflect the different parts of the organisational system and each of these needs to be aligned with the target culture. So, for example, if the HR leadership does not refer to a new HR capability framework when reviewing performance, identifying development needs or providing coaching, it is unlikely that this capability framework will be embedded.

This is a lot to get right and align and it is unlikely that this will be achieved in one attempt. However, if HR teams are clear about the kind of culture they are seeking to create and take intentional actions to bring this culture to life, the outcome is likely to be a period of fine tuning rather than regular remodelling.

In our discussions with senior practitioners three particular cultural challenges have been highlighted for HR:

• Challenge 1 — To become more client-focused

Client relationship management is one of the core capability areas for HR — this is about working as a trusted advisor: developing and implementing the strategic agenda whilst securing client buy-in and commitment. But there is a dilemma here. Does client-focused mean giving clients exactly what they want? We do not think so. HR functions must learn lessons from external providers and develop a consulting mindset. As consultants we have yet to come across clients who only want us to agree with them. What they really value is opinion, challenge, research, fresh thinking and an approach that gets to grips with their real problems, not just presenting issues. We do not think HR professionals are any different if they are performing effectively. So, this will mean more HR professionals will need to learn to question and challenge what clients are asking for. Although difficult at times, partnership must be built on a relationship where support and challenge are expressed in equal measure.

• Challenge 2 — To articulate a clear value proposition

Linked to the need to be more client-focused, HR professionals must be able to articulate how HR adds value. This means getting better at measuring outcomes and estimating inputs. It means being able to have a sensible discussion about the use of resources and priorities. It also means being able to articulate what will be delivered, by whom, at what cost and when. In this way, the organisation will be able to make better choices and will see the amount of perceived low-value work diminishing.

• Challenge 3 — To market and sell HR better

This challenge is, of course, linked to the previous two. Lawler and Mohrman (2003), in their survey of trends and directions in HR, point out that perceptions of the contribution made by HR are not changing as fast as the actual change on the ground. This is clearly a cause for concern. Part of the problem is that HR professionals have not traditionally thought about how they market and sell themselves. For example, during our client relationship workshops we spend time thinking about HR's value proposition and about the way HR sells itself to the organisation. Generally speaking, this is often the first time HR professionals have thought about themselves from a selling perspective. They are not very good at thinking about their experiences and packaging them in a way that enables clients to see what they are capable of contributing.

The point we make on all HR transformations is that whatever cultural attributes the function wishes to develop, they need to be hard-wired into the other organisational levers — the way you organise, use technology, manage your work processes, lead, develop people and so on.

We want to emphasise the important role that the HR leadership team needs to play throughout the process of HR transformation and have set out below a few of the things that we have found effective HR leadership teams have done well:

• worked collaboratively to create a vision;
• provided strong and visible personal commitment to a transformed HR;
• engaged actively with the implementation process (they have not just delegated and walked away) and put at risk their own personal credibility around delivery;
• seen HR transformation as a process, impacting the whole HR terrain, and been prepared to work through the process with the HR transformation programme team;
• led from the front, taking an active role in influencing and communicating with key business stakeholders and the HR function;
• given time to regular workshops and other interventions throughout the process;
• remained patient — things do not always go to plan — and been prepared to address unexpected challenges;
• used external facilitation and consultancy well — consultants have supported the internal team and have not replaced them;
• acknowledged that members of each team need to work through the implications of change and transition for themselves;
• recognised that they are, themselves, part of the transformation process.

We would like to amplify the last two of the points above. The first point is around the way individuals are supported through transition. We make quite a big deal of this in our capability workshops, and draw heavily on the excellent work of William Bridges (1993) in this area. In providing good change leadership there is a need to help people with endings: to help them to come to terms with the fact that the way things were has gone for good. Some of the things that have been done to help with this include practical actions like changing job titles, working environments and reporting lines. But they also include things like 'end of era' celebrations or the symbolic binning of old material. In helping people with beginnings, things like the capability framework, conferences and symbols (a visual representing the HR capabilities was used very effectively by National Grid) help people to understand the purpose of transformation; engage with the plan to implement it; see a picture of the new world of HR and the part they will play in it. Good change leaders make this happen.

The last bullet point above is really important. A huge amount of credibility is gained when the leadership group themselves acknowledge their need to change and then do something about it. Particularly good examples of this have been when the leadership group has participated in the capability development work-shop and is seen to be working through the issues of behavioural change as much as the rest of the HR team.

We have also seen some very poor things happening during implementation — and often outside the direct control of HR. We hope that you will not identify with these, but some examples are set out as follows:

• The capability development programme was split so that senior people participated in learning groups and the remainder of the function in capability workshops.
• A travel ban was imposed just after learning groups had been set up on a multinational basis — which prevented non-UK participants from attending.
• Participants were made redundant during a workshop.
• An outsourcing solution for transactional and advisory activities was adopted against the will of the broader leadership group.

The reality is that HR leadership matters. If the HR leadership group does not step out with enthusiasm and keep the drumbeat of change pounding, then your best plans will flounder. It can often be a cliché to talk about the need for senior commitment to a change programme. With respect to HR transformation, we can say with a high degree of confidence that this is true, and we hope that in this section we have set out some of the things for the leadership team to focus on.