How to get the most from your people Evolution is the key to success Adapt to your surroundings A business cannot rest on its laurels, no matter how successful or well regarded it may be. To do nothing is to stagnate. Those who claim they are too busy to plan ahead or waste time trying to predict market conditions are merely making excuses for a lack of ambition. To drive a business forward, you need a direction. So how do you get people on board? The state of the global economy and the prospect of continuing austerity measures and spending cuts in the UK mean that creating more jobs and growth is likely to remain a tough challenge for the foreseeable future. At the UK Commission for Employment and Skills my fellow Commissioners and I strongly believe that sustainable growth in the UK will be created through the skills and entrepreneurship of people. Lots of others share our view, and there is lots of evidence to support us. We know that successful businesses value their people. When care and attention is given to the way in which staff are managed and organised business productivity and competiveness significantly increases. Where leaders and managers take some simple steps towards becoming a high performance company they are on the road to doubling the amount of profit they make per employee. I am sure that most businesses want to be seen as a ‘good employer’ – to motivate their workforce to perform well, impress customers and gain the respect of their peers – but even so research shows that only around a fifth of employers implement policies and practices specifically to get high performance from their people. So what are you waiting for? There’s lots of support available but it’s up to you to mind your own business! Scott Waddington Chief Executive, SA Brain and Co Ltd, Commissioner – UK Commission for Employment and Skills 2 3 It’s a balancing act Minding your own business is a balancing act. How do we make the best of what we’ve got, drive down costs and keep customers happy? It is often said that ‘People are our greatest asset’. People can spot new opportunities, work out how to do things better and eliminate waste. Attract the high flyers But we only get the best out of our people by demonstrating that we value them and actively communicating with them to seek their input. High performing businesses know this and drive the business forward by: ■■ Motivating and involving their people ■■ Making sure their people have the skills they need ■■ Organising work to meet the needs of the business and its people ■■ Developing great leaders and managers Each of these things is important, but getting them all aligned can pay real dividends. Becoming a high performance company can double profit per employee e th ls kil rig High Performance Pe he in t right s h le op jobs ht Peop le wi t Leadership r i g Pe o p l e w i t h t h e e ht at t itud Management 4 5 case study firmus energy is a medium-sized utilities company, established in 2005 as a subsidiary of gas company BGE. firmus distributes and supplies natural gas and electricity in Northern Ireland. Customers in towns across Northern Ireland have traditionally used oil as the main fuel and, with no previous supplier of natural gas, firmus had to break into new territory to win business. Cost has been a factor, however their competitive differentiation comes from customer service and delighting the customer. A belief in the potential of their people is central to firmus energy’s approach. Recognising that understanding and responding to staff needs has a positive knock on effect to customers, listening to employees is viewed as vital. This happens in various ways including one to ones, quarterly company briefings and staff suggestion boxes – initiatives such as more flexible working hours were introduced as a result of staff suggestions. People with the right attitude Engaged employees have a personal commitment to their work and to the business; they will do their best to help it succeed. Engaged employees are loyal, they stay committed in difficult times and are 87% less likely to leave the organisation, reducing staff turnover and its associated costs. Engaged Unengaged 70% Understand how to meet customer needs 17% 2.7 6.2 Average sickness absence (days per year) This approach has brought significant benefits. So how can you engage your people more? The staff are highly motivated. People have clarity about what is expected from them and feel both trusted to make decisions and confident they can ask for support if required. People feel that they can speak openly where any issues occur and that they will be addressed. firmus was recognised as a UK ‘Great Place to Work’ in 2010 and 2011. ■■ Share your plans for the business. Two-way communication builds trust and confidence, so inspire your people with your vision and listen to what they have to say. What excites you and is special about your organisation, its products and services; what are your hopes for the future? Can your people relate to it; what interests and motivates them; what frustrates them and could be changed? Over 44,000 homes and businesses across Northern Ireland have signed up to firmus with excellent customer satisfaction levels. They haven’t had one Consumer Council complaint in over 6 years of operation, and 96% of customers would definitely recommend firmus to friends and family. ■■ Create opportunities for problem solving. Ask your people to come up with new ideas about how to do things better; grow existing business, acquire new customers, improve products and services or cut costs. Build loyalty and commitment by implementing and celebrating at least some of them, showing that you respect their opinions and ideas. Consider setting up a problem solving group. Find out more about firmus energy here or visit delni ■■ Recognise and reward the Right Attitude. Highlighting those who have made significant contributions, shown extra effort or delivered beyond expectations will provide a real boost to morale. Reward doesn’t have to be a cash bonus. 6 7 case study At Pyronix, an SME manufacturer based in Yorkshire, we have a history of recruiting young people, as we believe that they bring real benefits in terms of performance, loyalty and business growth. The company collaborated with Sheffield Hallam University to offer a 3-month graduate internship. One intern started off working in the marketing department and quickly became a valuable member of staff. Her language skills in particular contributed to our expansion as she was able to market the company in Germany. At the end of her internship she was offered a full-time position. After 2 years she left to progress her career, creating an opportunity for another young person. He has brought a new skill set in social media allowing us to improve our facebook, twitter and LinkedIn presence and his creativity and fresh outlook has helped in developing an Italian website which helped to increase sales by over 200% in 2012. “ As a young person I was given the opportunity to train as a legal secretary and it changed my life. Someone believed in me, which gave me the confidence, motivation and skills to better myself. Pyronix has a long history of recruiting young people and I have seen real benefits to my business.” Julie Kenny, Chairman and Chief Executive, Pyronix Commissioner – UK Commission for Employment and Skills National winner of the First Women Award for Engineering and Manufacturing 2012 8 People with the right skills Investing in your people’s skills is good for business. Businesses that don’t train are on average two times more likely to go out of business than those that do. The returns to investing in the right skills include: Workload Delays Costs Quality Customers To ensure you have the skills you need, why not: ■■ Review the skills of your people. What skills do your people have that you are not taking advantage of? What skills does your business need now and for the future? What are the skills opportunities and risks for your business? ■■ Set aside some time and a budget for training. Investing in and giving your people the opportunity to learn shows that you value and believe in them. Training doesn’t have to mean going on a course. Consider job shadowing, mentoring or coaching. Set aside a training budget and use this where people can show how it will help them to help the business. Why not retrain someone for that hard to fill vacancy? People are more likely to stay with your business if they are learning new things and can see opportunities for progression. ■■ Adopt a youth policy. Taking on and developing young people secures flexible, tailor-made talent for your business, allowing you to Grow Your Own. The vast majority of employers who do this find young people well prepared for work. Shorter term opportunities such as work placements and Internships can also bring big benefits for both the business and the individuals. 9 case study In 2003 Geoplan was making a loss of nearly half a million pounds a year. The company was grappling with a structure that didn’t work and in which all roads led back to Managing Director John Taylor. With help from Investors in People, Geoplan overcame a series of technological and market challenges, growing the business, boosting their performance and developing a self-managing structure so that anyone – rather than just John – could lead a project. In 2011 Geoplan made a profit of £400,000 and productivity had gone up from £56k per head in 2002 to £93k per head. John Taylor now has a business he can be proud of, and feels he’s got his life back along the way. Read more on this story here or see John tell his story on YouTube People in the right jobs People get greater satisfaction and a sense of achievement from a challenging job which gives them responsibility. A good job uses and stretches their skills and gives them clarity on the contribution they make to the business. Anything less is a waste of talent. 64% of employees surveyed say they have more skills and talent to offer than they are currently asked for To create better jobs you might want to: ■■ Review the skills of your people. Do they have untapped skills, knowledge and experience that can benefit your business? When did you last ask them? They may be able and willing to do more than you think - so delegate. This will free you up to manage important customers or find new ones, to plot the future of the business, or to take an evening off! ■■ Review the quality of jobs in your business. Well designed jobs provide people with a sense of purpose, achievement and belonging – so talk to your people to make sure that their tasks, responsibilities and working relationships are clear, efficient and productive. ■■ Develop your managers and supervisors. You can then empower them to work with and across their teams to organise work in the most efficient way, minimising bottlenecks and frustrations and making the most of their people. 10 11 case study When opening a second showroom for her Accrington based estate agency, Buy-the-House, Lesley Swinn needed to increase her employees from three to fourteen. However, used to dealing with just three employees, Lesley found herself under constant pressure to carry out individual on-the-job coaching, with little time left to lead the business. To address this, Lesley: ■■ closed her business for one hour per week to carry out group training based on masterclasses Lesley attended as part of her participation in the LEAD programme at Lancaster University; ■■ renamed appraisals “good chats with good people”, recognising that her business did not match formal appraisal methods, and started to use them as an empowering opportunity for employees to contribute ideas and question the business owners. Lesley has seen this approach generate bonding and a culture of interdependency, as employees began to coach each other, creating a stronger and more-informed team and allowing natural leaders to emerge as candidates for promotion. From this Lesley has created a more tiered approach to the organisational structure, allowing her to delegate most operational activities and adopt a more leadership focused role. Buy-the-House has become the only company ever to score 100 per cent for customer service by the independent company commissioned to help measure the success of the changes. Read more about Buy-the-House here (p109) Great leadership and management To get people with the right attitude and the right skills in the right jobs requires good leadership and management. Why would you trust an untrained manager to drive your business? Three quarters of staff waste up to 2 hours each week due to inefficient management – on average this equates to around £900 per employee per year. Increasing leadership and management skills will help you build a higher performing business that people can be proud to work for. To raise the level of management and leadership in your business you could: ■■ Continue to develop your own skills and knowledge. Few challenges are truly unique, so what can you learn from what other successful businesses are doing? Why not join a local business, industry or professional body to find out? An external mentor or coach may be more expensive but can provide invaluable insights and guidance. Build your own leadership by investing time and being more visible. Have an open door policy; welcome concerns and suggestions; make time to walk around, talk and get to know your people’s skills, jobs and interests. Share your vision; how people can contribute to it and what they’ll get from it. Being seen to lead builds trust and confidence. ■■ Take ownership of the skills in your business. Responsibility for the performance of all business assets, including its people, starts at the top. If you want your business to be successful you have to plan for the development and utilisation of the skills of your people. Support is available from a range of organisations and peer networks to help you do this. ■■ Train your managers. They are the key to unlocking the potential of your people. Professional organisations can help identify cost-effective management and leadership training. Job shadowing, mentoring, or coaching with somebody from outside the organisation (e.g. a business contact you admire) may be a cheaper alternative. 12 13 Helping you to Mind your Own Business Go online to find lots of information and free advice. It’s sometimes difficult to know which of it you can trust, but here are some sites you might want to try: Taking action need not cost money or require vast amounts of time and effort. There are some simple steps you can take to help you on your way and there’s lots of support available. ■■ Managers has a range of practical resources for managers, such as best practice guides, checklists and e-learning Networking is a great way to meet people and discuss what makes a good business – hearing from someone who has ‘been there and done it’, or sharing experiences with others. There are many organisations providing networking, advice and learning opportunities that are willing to support you in making a difference to your business. These include: ■■ Engage For Success has ideas and tools to help effective employee engagement ■■ CIPD has HR information and factsheets ■■ Business In You is a partnership between private enterprise and Government highlighting support for start-ups and growing businesses ■■ Growth Accelerator provides coaching and know-how to small businesses with high growth potential in England ■■ Local business organisations (such as Chambers of Commerce) ■■ Leadership Lab hosted by Scottish Enterprise, helps businesses of any size in Scotland develop their leadership culture ■■ Business representative organisations (such as CBI, FPB or FSB) ■■ Alongside support for employment engagement, Acas have a free online tool – the Acas Model Workplace – designed to help you check how good your organisation is at people management and identify improvements. ■■ Industry bodies and Trade Associations ■■ Professional Bodies (such as CIPD, CMI or ILM) ■■ Trade Unions and unionlearn. One or more of these may be in your professional network already, but if not then you are missing out. One-to-one advice need not be difficult or expensive. A professional advisor such as your accountant may be able to help, or you could contact Mentorsme to get connected with mentoring organisations that can support and guide your growth. Business development tools can deliver real results. ■■ Investors in People is the UK’s leading people management standard. It specialises in transforming business performance through people, based on a flexible framework of best practice that can be tailored to your business priorities. Over a third of the UK’s workforce uses Investors in People today, and employers do so because they see a number of real business benefits. See Investors In People for more information or to contact your local Investors in People centre. ■■ The EFQM Excellence Model is Europe’s leading management framework and has already been implemented by over 30,000 organisations globally. Unlike more prescriptive standards, it provides a structured path for improving business performance and profitability by streamlining operations and increasing productivity and efficiency. See BQF for more information. The main thing is to do something to get started – perhaps something suggested in this booklet, something identified from talking to your people or something learned from your professional network. 14 15 #myobiz Learn More All of these organisations, and more, are working together to support ‘Mind Your Own Business’. Check out their websites or follow them on twitter. Get your claws into new business The UK Commission has published a number of reports that provide insights into business performance. For more information visit www.ukces.org.uk