Is Covid-19 (Coronavirus) a catalyst for change?

We find ourselves in unprecedented times.  Change is not just necessary but inevitable.  Covid-19 as a global pandemic is gathering momentum with its peak not predicted for a few more months yet.  Schools are now closed until further notice and mass lock down looks likely. The ramifications are going to be huge.

Business Impact

The impact on all businesses is inescapable.  No one is immune from the health, family, social, business and economic impact the pandemic is and will have. The vulnerable and elderly are to be protected, business are sort of being helped, exams have been cancelled with a huge impact on the people due to sit them and move on to the next stage in their lives, although with food and medical and the supply chains needing to remain operational some will escape the worst of it.    

Economic impact

It is too early to predict what the fallout from this will be but early predictions are for a global recession, the likes of which could be far deeper and uglier than the last financial crisis.  Stock markets have tanked, exchange rates are down, values of companies have been slashed and pensions etc. are a worry. Unfortunately, there are going to be many businesses that won’t survive this pandemic and there are others that will be transformed.  This could be the beginning of a new way of working for us all.  Although Government intervention with £330B sounds impressive, I don’t think grants or loans will help long term because this money currently needs paying back.  If the Government gives it as aid, the money has to come from somewhere and most likely in the form of increase in income tax, corporation tax, VAT etc.

Social impact

All our lives are on hold.  Sporting, social, family and business gatherings have been cancelled. Our elderly and vulnerable are going to feel isolated, alone and frightened.  We should all do what we can to help those in need and put the extra effort in to stay in touch and help them.

Many have moved to remote working where possible.  This in itself is no problem but there are plenty of jobs where that’s not possible.  Where it is possible, technology comes in to play here and we have been talking for some time about utilising technology to enable smarter working and now we are forced to make this work.  For those who already work from home/ hot desk, it won’t make too much difference, although previously it was optional.   This is likely to open a can of worms for those that get used to working in this way and see the benefits.  When we are over this, what is the advice that should be given from a HR prospective? Will remote / flexible working become the new norm?

Climate change – the positive impact

Every cloud has a silver lining.  The impact on climate change is going to be a positive one due to the immediate reduction in travel on a local level and globally which will help offset some of the negative impact that’s coming.  The downside of course, is the businesses that rely on this to make a living and to keep people in jobs. The airlines, hospitality, leisure industries are going to be hard hit but where do we draw the line at Government intervention?  If you do it for one, morally you should do it for all.

IR35 delay helps for now but more should be done

The delay of IR35 for 12 months is a small reprieve but more needs to be done in terms of its revision, implementation and general catch all.   It does however allow private sector businesses to utilise short term, flexible experienced interims to help restructure, change, transform, turnaround or provide practical business experience, HR advice etc. I think this will be needed more than ever as organisations come out the other side and (depending on the lock down scenario) will need it to get them through these uncharted waters.

Engage with the experts

The benefit of using experienced executives on a short term basis is to impart their knowledge and expertise on how to navigate through this as they have been there before. They can then be fully utilised for either restructuring, turnaround, change or enabling BAU.

Few business and political leaders have had to lead through a pandemic of this nature nor deal with the economic fallout.  Several factors will come in to play including, how they deal with uncertainty, the structure and adaptability of their businesses, how they are affected personally and how agile they can be to what will be a new world. 

Perhaps now is the time to bring in the help to have any chance of survival and hold open the jobs, ride the return to normality wave and go on to prosper.  Panic is not the answer and indeed more consideration should be given to working through this. Change, transformation, restructuring and turnaround experts who can quickly get to grips with the issues, have expertise in crisis management, can advise Boards on the best course of action and implement and deliver the plan.  Waiting is not a strategy.  Adaptability, innovative thinking and willingness to change might just be the survival strategy that’s needed.   

By utilising the experts, many of whom are available, organisations of all sizes will be stronger and more resilient for the future upturn that will come.

Let’s talk. Please get in touch for further discussion.

Keep safe.

 

Creating the environment for Digital Transformation to be a success

For digital transformation to be successful, companies need to focus on six pillars beyond just thinking of digital transformation as “Tech-enabled change."

Change is only possible by building the right kind of organization and people are an imperative part of this. The six pillars of digital transformation include; experiences, people, change, innovation, leadership, and culture;

1: Experiences

Business must understand the customer journey, behaviours and expectations before investing in technology. These expectations should be the basis of any investment and the way to do this is to focus first on the customer’s experience. This is why companies like Disney, Apple, Starbucks and Nike have become iconic. They lead with experiences and they create deep connections with their customers that go beyond a product or service.

Don’t forget about the employee experience, either. Every interaction your employees have with your company is critical. Are the technology tools you’re providing helping them do their jobs? Is your culture making your workplace efficient and productive? The positivity of this experience has the potential to make or break the productivity and effectiveness of employees to your business.

2: People

People might be the most critical part of the six pillars of digital transformation. Without the right talent or without focusing on your employees, your organization will struggle. Critically leaders need to put employees first. Companies that invest in their people, commit to their development and respect their ideas build a loyalty that makes change management much easier to realize within the company.

As technology such as AI, VR, and AR gain momentum, the key is to use this technology to create meaningful experiences that reach employees, customers, and others on a deeper level – still connecting human to human.

It is also important to remember that talent is still critical, even with advancements taking some of the work. Employees should all be on the same page, to push your digital transformation efforts forward.

3: Change

Any transformation can’t happen without change. People must get behind change in order to realize it. You should go into your transformation, understanding first-hand that change is inevitable—and it might be tough. Communicate your expectations to your employees. Develop a strategy to encourage change and deal with resistance at the same time. Provide the necessary tools and environment for employees to embrace and succeed in this change. If you do this effectively, it will lead you to the next of the six pillars of digital transformation.

4: Innovation

Transformation and innovation are not the same. To transform, there must be innovation. Innovation can be defined as a sudden spark of creativity that leads to the creation of something that changes the face of your business. These sparks can be more sudden or they can be incremental. Some of these innovations are massive and completely disruptive of business models while others make a small and meaningful difference that increases customer satisfaction or differentiates an offering in the market. Regardless, the implementation of innovative thinking throughout an organization is key to transformation.

Innovation requires a space of open communication, collaboration and freedom to create. Innovation should be constant, your business always working to further its products or services. Innovation also drives the digital transformation forward by allowing for open space for problem-solving when the going gets tough.

5: Leadership

Leadership can come in many forms, but if you want the organization to change, it must come from the top. In an article for Forbes last year, it was found that the majority of tech initiatives fail when the CEO is not involved. However, the CEO should not only be involved, but he or she should lead.

Leaders should be proactive and on the lookout for things coming down the pipeline. As technology moves quickly, there is no time to wait. As a leader, you should also bring order, instead of going with the flow. As much as technology can sound like the perfect plan, take your time to carefully examine all options. Think differently than the rest and lead others within your company to do the same. Don’t just follow the digital transformation crowd – lead it.

6: Culture

The past five pillars can all be wrapped up in one package and form your culture. When asked about where companies should start on a digital transformation journey quite often the question is framed as “What technology(ies) should we invest in to speed up our digital transformation effort”. However it is important to begin with “Culture! Digital transformation cannot survive without the right business culture. By creating an open space where employee and customer experiences reign supreme, where people matter most, change is planned for and innovation takes centre stage, you will then lead your organization into a culture that simply transforms on its own.

These six pillars of digital transformation are the backbone for success.  Focusing on these pillars in addition to technology will help your company get ahead of the competition and avoid failure.

 By Duncan Carter, Director Macallam Talent Resourcing.

 

      

Does the engagement of an interim manager ensure project success?

Follow the link below to our latest article in Executive Grapevine as featured in The Guide To Interim Management



https://www.executivegrapevine.com/content/article/magazine-2018-02-06-does-the-engagement-of-an-interim-manager-ensure-project-success

The Importance of Being Earnest

Brexit, Trump, Leicester winning the Premier league, the passing of musical geniuses – the list goes on.  Let’s face it, we have had everything thrown at us in 2016 but there’s one thing that remains certain and that’s change.    We are living in uncertain times and this will inevitably affect the decisions of organisations and their appetite to forge ahead with plans.  This uncertainty is creating the need for change on the one hand but paradoxically is leading to inaction on the other due to an over cautious approach.   It would be a huge mistake for organisations to do nothing with the risk of  market share loss, acquisition targets slipping through the net and losing key talent to name but a few.   

Leaving the EU is a mammoth task.   The globalisation of the UK is firmly on the agenda and although it will take years to go through this messy divorce, hopefully the UK will be stronger for it.  But what happens in the meantime?   It’s the uncertainty that will create problems as ‘projects’ are put on hold.  Clearly for businesses in crisis, something has to be done urgently but the need for an interim isn’t always for reasons of crisis management.   

Organisations in need of transformation, restructuring, project / programme management, business improvement or anything that results in change continue to need people to help drive them forward without distraction.  What has become prevalent  is the need to put a compelling case forward firstly as to why interim is the right/best solution and then it’s down to the interim to provide reassurance and a convincing pitch as to why they should be selected with some quantification around the return on investment (ROI). 

It matters now more than ever to make a difference but how can an interim executive ensure they make a ‘real’ difference and deliver in a way that meets with expectations? There are a number of skills, competencies and personality traits needed to succeed as an interim.  Here are a few;

Honesty – providing an open and honest account of the findings.  Interims are able to do this (on the proviso it’s delivered in a professional way) without fear of job security, weakening promotion prospects etc.  The value to management, shareholders, stakeholders and employees is immeasurable. Quite often the day to day gets in the way and organisations can’t see the wood for the trees.

Delivery – hugely important and ultimately will be the basis of measurement of how successful the assignment has been.

Speed – expect to be parachuted in to new environments, grasp what the business does, build relationships often with customers, suppliers, and subcontractors and address the issues causing the challenges.  The problem should be solved and solution implemented as quickly as possible.

Objectivity – an impartial view of analysis undertaken provides the leadership team with a balanced, honest opinion without the person delivering the message having another agenda. 

Coaching / Mentoring - this is always part of the brief whether or not it’s been clearly defined.  This can be for members of the leadership team, management team or just generally a style that should be adopted when leading people for the short term.

Engaging with stakeholders – interims often find themselves in quite complex scenarios with multiple stakeholders that have to be taken on the journey.  Building relationships is part of the remit.

Communication – can’t be emphasised enough.  Any change programme’s success is dependant on how engaged the people are. 

Don’t get drawn in to BAU issues – the reason the client has engaged an interim in the first place is because they don’t have the internal capacity or capability to solve the problem.   If the interim finds themselves in a firefighting situation, they are likely to take their eye off the ball from the original set of objectives.

Confidence and gravitas – the fact that someone has embarked on a career as an interim is borne from having achieved and delivered during a corporate career at board, functional or in a business leadership capacity.  This knowledge and experience should enable the interim to tackle challenges with the necessary agility and be chameleon like in approach.  

Managing the exit – once the agreed objectives have been delivered it’s important to manage an exit at the appropriate time.  The interim should avoid hanging around unnecessarily as this will quickly diminish the value created from the good work undertaken. 

Leaving a legacy – be remembered for the right reasons.

This is all underpinned by the raison d'être of adding value, making a difference and ensuring a return on investment.   It’s the little wins that can make the biggest difference and mopping up the unexpected problems where the interim can go the extra mile.

In order to ensure a successful assignment for all parties it’s important to be honest and how this is delivered will determine the added value in the long term.  After all, the results of this assignment will determine the reference received and how quickly the next one is secured.

For further information or a confidential discussion about how we can help please contact Steven Wynne on 01423 704153 or email steven.wynne@macallaminterim.com

Do you decide to recruit Internally or Externally?

Picture the scene – a key member of your team has resigned and they can’t be persuaded to stay. You know you must replace – the dilemma is whether to “play it safe” and go with an internal candidate or look externally.

Internal promotion can be seen to encourage loyalty, build morale and send out a powerful message about career prospects – assuming, of course, that the internal candidate has the right skills  – but the drawback surrounds the missed opportunities of bringing someone new into the organisation.

Many companies are adept at creating internal pipelines of talent recognising the need to retain good people and provide business continuity. These businesses strive to offer people a vision of where and how their careers may develop, instead of having to leave to move upwards. Furthermore, the creation of continuous development opportunities for home grown talent sends out a strong and powerful message.

Some companies always promote from within first only bringing in new people at junior level. By doing this, they tend to have good retention at lower and middle levels and keep recruitment costs low. Employees can rise from junior ranks fairly quickly before progression slows due to a mix of limited opportunities or their inability to progress further.

Succession planning runs through the talent management process from recruitment to how employee performance is managed and building a culture of internal promotion gives people aspirations. However, it is critical that expectations are managed and when an internal candidate is unsuccessful for a role, they deserve honest feedback so they can re-set their goals and aspirations based on reality. 

However, if the business is venturing into new markets or sectors, the likelihood is that the required skill set will not be available internally. Also, there are benefits to be gained by bringing in a fresh set of eyes with best practice knowledge and skills gained elsewhere. Rightly so, much is written today about the value of transferable skills and skills can transfer successfully between industries, sectors, markets and functions.

Whilst it could be perceived that external recruitment stifles the development of internal staff by cutting off promotion avenues, the counter argument is that promoting internal talent prevents the opportunity to inject fresh ideas into the business. Conversely, recruiting a manager from outside may mean that talent is unearthed in the business that the previous management had failed to identify or chose to overlook and new management gives these people new opportunities.

New blood into an organisation, specifically at senior level, brings new ideas, innovation, creativity, and different ways of working. It rarely comes without pain because new senior managers will challenge the status quo, ask pertinent questions and shake people out of their comfort zone by getting people to up their game or leave.

Business growth can also be a factor in the internal v external recruitment debate. Some employees are ideally suited to smaller businesses (invariably these are family based) and as the business grows and possibly the family influence begins to take a back seat; there is greater need for formalised management structures, process, procedure, controls and disciplines. Some people will find the growth transition uncomfortable and in simple terms, the business out grows the individual and a new/different skill set is required.

In these situations, bringing in someone new will bring much needed ideas, energy and vision whilst challenging those that say “but we’ve always done it this way”.

If it comes down to cost, on paper external recruitment will cost more and external recruits will need to be given an on-boarding process to familiarise them with the business. However, over time the right candidate will be able to make a significant contribution and make a step change for the business through new methods of working, accountability and the identification of new opportunities. Inevitably, change and improved performance are what all companies are looking for!

Every business needs to manage the balance between internal and external recruitment but at senior level, sometimes it takes an outsider to come in and make that change happen.

Written by Adrian Berwick. 

Adrian is an experienced HR Professional who works exclusively with Macallam on the delivery of their Personal Career Transition service.

Brexit and the Circular Economy

Having attended the RWM / Energy event last week, I was interested to update on latest developments with the Circular Economy, Energy from Waste and Recycling / Reprocessing / Waste sectors.   What became apparent is that whilst the UK is pushing to develop a circular economy there are huge opportunities in what is now becoming the Global Circular Economy.  This got me thinking.  Will Brexit (whatever Brexit means) have any impact on the objective of achieving a world where we reduce resources and extend the lifecycle of what we use and recycle as much as we can if we leave the EU?

For those unfamiliar with the terminology the circular economy is a modernised version of the old ‘reduce, re-use, recycle’ mantra with the objective of stripping out waste, streamlining supply chains and converting what we can into energy.  The market opportunity is huge and with the changes afoot the Global Circular Economy could be a $1 Trillion opportunity.  In the UK alone this could equate to £3-6 Billion and the creation of 50,000 jobs.  

All the respective sectors and businesses within those should all be contributing.  Ultimately we need to reduce the amount of waste going to landfill and I believe any businesses producing waste of any description has a duty to fulfil.  This then extends to the domestic world and peoples behaviours in their homes, buying habits in terms of purchasing what you need not what you think you need and everyone contributing to a less wasteful existence.  These behaviours are interchangeable as habits become the norm if practised often enough and what might be a move to reducing the weekly shopping bill at home can actually extend into achieving resource efficiency in business.

Education, Legislation and communication are key and it takes the leaders of business, Government (central and local) to push this down from above.  After all there are money making opportunities from the renewable sources of energy that can be created, the cost savings in reducing materials spend and reducing waste;  so why wouldn’t you?

It is more important than ever that we work together what with an ever increasing population, rising commodity and material prices and working through global supply chains to reduce firstly what’s purchased and then secondly what we send on a journey.  Making that process as efficient as possible is imperative in order to attain the goal.

What can be done when so much change is needed?  A start would be to ensure the best and right talent is being utilised to full effect.  Engaging experts in the field that can drive forward the agenda within companies seems to me to be a hugely important part of the achieving the goal.  Individuals without the distraction of day to day BAU that can push the difficult tasks and drive a cultural change within the business.  Additionally those responsible for the corporate social responsibility agendas in businesses have a great opportunity to drive a zero- waste and re-use culture which in turn will result in improved efficiencies and more profitable operations.   

There are of course many businesses now involved in the resource efficiency market from those involved in building and operating Energy from Waste plants, Recycling, Renewables and so on that are all running businesses and making profit from this. Waste has become a valuable resource and although we should all try to minimise it, it’s hugely important that it’s dealt with in the right way and in the right place.

The Waste sector has been driven by EU legislation for quite some time and it’s vital that the UK does not lose ground.  We need more progress.  Europe’s economy has created vast wealth in part attributable to the trend of improving and re-using resources.  Sub industries have grown and flourished and can go further across Europe and indeed globally.  It was in fact the UK that was an early adopter and leader in the EU of addressing environmental issues with the introduction of the Control of Pollutions Act 1974.  Whether or not Brexit will have any impact on this remains to be seen but it seems to me that as part of the mammoth task that lies ahead in terms of managing an exit (possible) from Europe, we need new legislation in place to reach our goal of attaining Zero waste businesses and ultimately cities to co-exist with the ensuing trade agreements that are going to follow.

Steven Wynne

For further discussions please contact Steven Wynne at steven.wynne@macallaminterim.com or telephone 01423 704155

FM services sector is on the up

According to the latest quarterly report from the CBI Service Sector Survey, the FM services market has seen a healthy boost in levels of business. 48% of companies surveyed reported a rise in business volumes, 22% increased selling prices and 47% an overall increase in profitability.

The UK services sector remains the largest part of the economy, accounting for about three quarters of economic activity and this increase in activity is mainly as a result of the wider economic recovery and improved confidence.

The other key development in the market is the recent trend in outsourcing and shift away from single service contracts towards bundled services and total facilities management packages. Private and public sector clients are now looking  to reduce procurement costs through seeking ‘one-stop-shop’ solutions, a trend which  is expected to continue.

What does this mean for the sector and how does this translate for recruitment? With the recent return to positive growth, the FM sector is now expected to continue developing with a predicted forecast of £23.2 billion by 2018.

In response to this companies are now required to upskill their existing workforce and attract new talented recruits capable of adopting new technologies in order for businesses to maintain their competitive advantage in the workplace.

Macallam remains well positioned within the FM arena to assist with any potential recruitment needs either on permanent or interim basis.

For a private and confidential discussion, please call 01423 704154 or email enquiries@macallam.com