Employees first ! Supporting those who really create value.

Summary : “Reverse the pyramid”…other words may be used to scare less but it’s concern shared by many organization. It’s, in some ways, necessary to face the increasing complexity of the world that surrounds us but it’s also the obsessive fear of many organizations and managers used to the command and control model and not willing to go out of their zone of their comfort zone to improve what’s happening in the value zone. Value zone ?  As a matter of fact that’s because value is created at the field employee level that the command chain should turn into a service one. But, beyond exhortations that are easy way to drive change while being surprise it doesn’t work it’s a hard work that consists of reversing flow, redesigning some processes and transfering responsabilities that has to be done. That’s was was made at the Indian compant HCL and the story is told by Vineet Nayar, HCL CEO, in his book, Employees First, Customers Second: Turning Conventional Management Upside Down. Here are my takes.

One year ago, in July 2010, I read attentively and bookmarked this blog post by Gary Hamel where he was telling the incredible management experience that people just lived at HCL, an Idian IT service company. Spurred on by its CEO, Vineet Nayar, they seemed to be on the right way to meet a goal that look unreachable for many : reversing the pyramid to make the organization more successful.

Here’s what I highlighted at that time :

Transparent Financial Data. Vineet realized it’s hard to feel empowered if your manager has a lot of data you don’t. With this in mind, HCLT’s IT team created a simple widget that gave every employee a detailed set of financial metrics for their own team and other teams across the company.

U&I. Early on, Vineet and his leadership team set up an online forum and encouraged employees to ask tough questions and offer honest feedback. Nothing was censored on the “U&I” site; every post, however virulent, was displayed for the entire company to see.

Service Level Agreements. Powerful corporate departments, like HR and finance, often seem more interested in enforcing blanket policies than in making life easier for employees. When Vineet would ask front line employees, “What have the enabling functions done to help you create value in the value zone?”

-Today, HCLT employees are able to rate the performance of any manager whose decisions impact their work lives, and to do so anonymously. These ratings are published online and can be viewed by anyone who has submitted a review.

- As the CEO, Vineet was being asked to weigh in on hundreds of unit-level plans each year. Recognizing the limits to his time and personal expertise, Vineet challenged his colleagues to develop an online, peer-based evaluation process. The solution: MyBlueprint. In 2009, three hundred managers posted their business plans, or “blueprints,” online. Each document was accompanied by an audio presentation. More than 8,000 employees were then invited to jump in and review the plans.

- Three years after launching this concept, 20% of HCLT’s revenue is coming from initiatives launched in these communities of interest.”

Today, Vineet Nayar tells us more in a book called Employees First, Customers Second: Turning Conventional Management Upside Down. Rather than summarizing a book that’s very easy to read, I’m going to highlight what seem to me being the key points of his approach and share a couple of comments. [Read more...]

Danone explorers : In Real Life recruitment 2.0 for Y Gens

A few weeks ago I was invited by Danone to attend their Danone Explorers event, a moment when the company and students who are looking for an internship can meet.

I already wrote many things about Danone on my French blog but nothing here. I think there are a few things you have to know before reading further.

• The biggest point about Danone is their “dual project”, both business and societal. Every business decision has to take into account its societal effects. The purpose is not to balance business decisions by societal programs but to make decisions that deal with both at the same time. It’s a very important component of the corporate’s culture and management, and someone business focused without any societal awareness has many chances not be hired or not feel comfortable for long working at Danone. For Danone, the way people do business is at least as important as business itself.

• Danone has an informal culture. Of course, plants and factory need very strong processes. But for the rest, “the rule is the exception” or “exception is the rule”. As one of their VPs once told me, “we will always be smaller than most of our competitors, so we need to be smarter, run faster”. Initiatives are welcome and people are encourage to share ideas and best practices together by themselves.

• A survey showed their clients and partners valued a lot this culture, this “Danone Way”. It proved that it was identified as a key factor of performance, inside but also outside the company. A few years ago it made Danone’s people realize that their culture, one of the most intangible business assets, was a key performance lever.

• Many things to add…this company is worth being known and studied. Really outstanding !

What’s interesting in Danone explorers, is that Danone tries to seduce members of the famous Generaton Y and, as a consequence uses all the levers that are supposed to be efficient with tehm : proximity, discussions, exchanges, personalized dialogues, transparency, games, adult to adult conversations intead of parent to child.

Of course, in these times, we can expect a “full 2.0″ approach to tool such a logic. Not at all.

[Read more...]