NEXT GENERATION HR - CIPD
NEXT GENERATION HR - CIPD
NEXT GENERATION HR - CIPD
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A <strong>CIPD</strong> company<br />
Chartered Institute of<br />
Personnel and Development<br />
Next Generation <strong>HR</strong><br />
The growth option: turbo-charging <strong>HR</strong>’s impact in Asia<br />
<strong>NEXT</strong><br />
<strong>GENERATION</strong> <strong>HR</strong><br />
ASIA
<strong>NEXT</strong> GENE<br />
Written by Jerry Connor with<br />
contributions from Claire McCartney<br />
Research conducted in collaboration with HKI<strong>HR</strong>M.<br />
We would also like to extend our thanks to <strong>HR</strong>A for their help with this project.
RATION <strong>HR</strong><br />
CONTENTS<br />
INTRODUCTION 2<br />
CONTEXT AND OVERVIEW 4<br />
The growth option: turbo-charging <strong>HR</strong>’s impact in Asia 4<br />
Phase 1: Next Generation <strong>HR</strong> UK 7<br />
Phase 2: Next Generation <strong>HR</strong> Asia 8<br />
What do we mean by <strong>HR</strong> being a catalyst for growth? 9<br />
What is Next Practice <strong>HR</strong> in Asia? 10<br />
THE FOUR CORNERS 12<br />
1 Insight 12<br />
2 Community 17<br />
3 Purpose 20<br />
4 Performance 25<br />
CONCLUSION: WHAT DOES THIS MEAN FOR <strong>HR</strong> IN ASIA? 28<br />
The future of <strong>HR</strong> in Asia 28<br />
What would this mean for the function? 30<br />
A VISION FOR <strong>HR</strong>: OUR INTERVIEWEES’ WORDS 32<br />
Insight 32<br />
Community 32<br />
Purpose 32<br />
Performance 32<br />
APPENDIX 33<br />
Organisations we spoke to 33<br />
References 33<br />
A SIGNIFICANT HISTORY 34<br />
Chartered Institute of Personnel and Development: approaching 100 years<br />
in business 34<br />
Bridge: over 20 years in leadership and strategic change 34<br />
<strong>NEXT</strong> <strong>GENERATION</strong> <strong>HR</strong> 1
<strong>NEXT</strong> GENE<br />
AN INTRODUCTION<br />
Across Asia, unprecedented rates of growth and levels of change are making strong<br />
demands on the strategic agility of organisations, on their ability to innovate and on their<br />
creativity. Building organisations that thrive, and developing the talent pool to lead them are<br />
challenges at the heart of business strategies.<br />
We’ve developed new insight into these challenges through our Next Generation <strong>HR</strong> research<br />
project in Asia. This paints a picture of a regional <strong>HR</strong> profession that can overtake current<br />
global best practice to deliver uniquely Asian <strong>HR</strong> strategies that are truly growth-oriented.<br />
Through our combined experience and histories, by applying what this research has told<br />
us, and by investing in local capability, we are committed to maximising our contribution.<br />
We’re adapting and applying our qualifications and globally recognised standards to the<br />
development of the <strong>HR</strong> profession in the region. And we’re supporting organisations and<br />
individuals through consulting and coaching support tailored to specific local challenges.<br />
We’ve been excited and inspired by our work in Asia so far, and we look forward to building<br />
long and productive partnerships in the region in the coming years.<br />
Jackie Orme<br />
Chief Executive<br />
Chartered Institute of<br />
Personnel and Development<br />
Jerry Connor<br />
Director<br />
Bridge<br />
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簡 介<br />
在 整 個 亞 洲 , 前 所 未 有 的 增 長 速 度 和 變 化 水 準 強 烈 要 求 各 組 織 機 構 提 高 策 略 靈 活 性 、 創 造<br />
性 以 及 創 新 能 力 。 建 立 欣 欣 向 榮 的 組 織 機 構 、 培 養 領 導 組 織 機 構 發 展 的 人 才 庫 是 企 業 策 略<br />
的 核 心 挑 戰 。<br />
我 們 透 過 我 們 在 亞 洲 的 「 新 一 代 人 力 資 源 」(Next Generation <strong>HR</strong>) 研 究 項 目 提 出 了 對 這 些 挑<br />
戰 的 新 見 解 。 它 描 述 了 區 域 人 力 資 源 職 業 的 情 況 , 他 們 可 以 超 越 目 前 全 球 最 佳 實 踐 , 交 付<br />
獨 特 的 真 正 以 增 長 為 中 心 的 亞 洲 人 力 資 源 策 略 。<br />
借 助 我 們 豐 富 的 經 驗 和 悠 久 的 歷 史 , 運 用 該 項 研 究 的 結 果 , 並 透 過 投 資 發 展 地 方 能 力 , 我<br />
們 致 力 於 最 大 程 度 發 揮 我 們 的 作 用 。 我 們 正 在 採 用 並 實 施 我 們 的 資 格 審 查 和 全 球 認 可 的 標<br />
準 來 發 展 該 地 區 的 人 力 資 源 職 業 。 我 們 透 過 根 據 特 定 地 方 挑 戰 量 身 定 制 的 諮 詢 和 指 導 支 援<br />
為 各 組 織 和 個 人 提 供 支 援 。<br />
到 目 前 為 止 , 我 們 為 我 們 在 亞 洲 的 工 作 而 感 到 興 奮 和 鼓 舞 , 我 們 期 待 著 在 未 來 數 年 裡 在 該<br />
地 區 建 立 長 期 而 富 有 成 效 的 合 作 夥 伴 關 係 。<br />
<strong>NEXT</strong> <strong>GENERATION</strong> <strong>HR</strong> 3
<strong>NEXT</strong> GENE<br />
The growth option: turbo-charging <strong>HR</strong>’s<br />
CONTEXT AND OVERVIEW<br />
impact in Asia<br />
Despite the relative immaturity of much of the <strong>HR</strong> profession in Asia, this research indicates<br />
the beginnings of a silent revolution in Asian <strong>HR</strong> practice. The revolution is emerging as <strong>HR</strong><br />
helps organisations come to terms with four unique challenges (insight, community, purpose<br />
and performance) that will define the success of the growth aspirations of the region.<br />
Faced with this, traditional (Western) <strong>HR</strong> orthodoxy is a double-edged sword. Instead we<br />
have witnessed the development of a much more agile and business-centred version of <strong>HR</strong><br />
in some organisations as <strong>HR</strong> steps outside of its conventional space and starts delivering<br />
<strong>HR</strong> solutions that are essentially Asian in feel and deeply relevant to their context. You will<br />
not find this so-called ‘next practice <strong>HR</strong>’ in any textbook – and therein lies its strength. It is<br />
a wonderful example of practice on the ground getting ahead of academic thinking, and<br />
appears to offer a template for turbo-charging <strong>HR</strong>’s impact in a growth region such as Asia.<br />
Western <strong>HR</strong> orthodoxy<br />
It is relatively well documented 1 that in many parts of Asia, <strong>HR</strong> as a profession is in a<br />
state of flux and can be less mature and more emergent than in Europe or the US. For<br />
example, in some countries <strong>HR</strong> operates more as a business specialism, rather than a fully<br />
fledged profession with its requisite qualifications and professional status. There are also<br />
organisations in which ‘business partnering’ concepts are still evolving and the function<br />
invests a lot of its energy in traditional ‘services’, supporting the business in areas such as<br />
payroll, recruiting and training.<br />
For many companies, especially international and multinational corporations, the solution<br />
is to put in place structures, processes and ‘ways of working’ that reflect best practice <strong>HR</strong><br />
internationally. Words such as ‘business partner’, ‘specialist teams’ and ‘service centres’ are<br />
unsurprisingly becoming common parlance throughout Asia. On the face of it, this makes<br />
good sense (Figure 1).<br />
Figure 1: The best practice option<br />
Developing<br />
or emergent<br />
profession<br />
Implement<br />
international<br />
best practice<br />
1<br />
This gap has been identified by a number of authors, for example Zhu and Warner (2004) talk about ‘a lag in<br />
practice that still exists in reality’.<br />
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But this research implies that doing only this, organisations may be missing a big<br />
opportunity.<br />
Beyond orthodoxy<br />
The great news is that, in the course of our research, we’ve found something more exciting,<br />
the so-called ‘Next Generation’ (beyond Western best practice) <strong>HR</strong> in small pockets. While<br />
the Western models of <strong>HR</strong> founded on Ulrich-inspired logic have merit, it is crucial to<br />
appreciate that there are two underlying issues that, if addressed early in the life of <strong>HR</strong> in<br />
Asia, will enable the development of the ‘turbo-charged’ <strong>HR</strong> that is so needed in the region.<br />
Purpose and positioning of the function<br />
There is a subtle but significant difference in the way that these Next Generation <strong>HR</strong><br />
functions see themselves and in what they think they are there for. In short, they see<br />
themselves as business functions first that have a people and culture brief that is in<br />
support of the business agenda. For them, <strong>HR</strong> is an applied business discipline. It means<br />
they are actively involved in acts of leadership in the business that sit outside of the classic<br />
people arena. Crucially, the underlying purpose here is about driving short- and long-term<br />
business success. This has clear echoes with the Next Generation report in the UK where<br />
those functions focusing on driving sustainable business performance avoided the trap<br />
of becoming too internally facing and disconnected from the business context they were<br />
operating in.<br />
This is in contrast with those functions that have a much more limited sense of purpose that<br />
confines itself to being a people function in support of the business agenda. These functions<br />
are applied people functions and are concerned with ‘pure’ <strong>HR</strong> and people issues. While<br />
they add value, it is very easy for this way of thinking about <strong>HR</strong> to disconnect it from the<br />
business and drive it lower down the value chain, often leading to it being much more of a<br />
transactional and administrative function rather than a key driver of short- and long-term<br />
success.<br />
Critical capabilities<br />
In the Next Generation <strong>HR</strong> functions, there is evidence that the critical capabilities that<br />
exist in the best <strong>HR</strong> leaders are not focused on <strong>HR</strong> and people skills alone. Indeed, they<br />
demonstrate a rich understanding of the business, a deep appreciation of the wider context<br />
outside of the organisation allied to a real feel for the issues of people and culture. This<br />
powerful blend not only enables them to keep the <strong>HR</strong> solutions they develop highly relevant<br />
and impactful, but more importantly, it puts them in a position to demonstrate deep insight<br />
and a unique viewpoint on how to tackle the most pressing organisational challenges in a<br />
dynamic and creative way.<br />
A great example lies in the innovation currently going on in India around medicine. For<br />
example, Narayana Hrudayalaya health city has applied Henry Ford type management<br />
principals to build scale and specialisation into medicine. It can offer operations such as<br />
open-heart surgery for around US$2,000 compared with $20,000–100,000 in the US, and<br />
with equivalent success rates. 2<br />
2<br />
Statistics taken from the Economist Magazine. “The World turned upside down”. April 17 2010.<br />
<strong>NEXT</strong> <strong>GENERATION</strong> <strong>HR</strong> 5
<strong>NEXT</strong> GENE<br />
One of our interviewees had recently worked in this industry. How did <strong>HR</strong> play its role in<br />
building such a model?<br />
‘We decided, given the shortage of surgeons in India, to hire expat Indians from overseas. To<br />
attract them we sold a vision. Come back and be part of building a new India. … Work for<br />
us and you’ll be able to help and cure so many more people a week than you can in Europe<br />
or America. And because of the vision doctors come back to India – to work far longer hours<br />
and for much less money than they did before.… We were brave enough to think bigger<br />
than anyone else and passionate enough to get others to back our vision.’<br />
This kind of thinking is about tearing up the rulebook. There is no orthodoxy in sight, just a<br />
big vision and the confidence to go for it. And yet it is just one of many remarkable stories<br />
we heard over the last six months in what, for us, has been a very different research project.<br />
We are left convinced that, at its best, in pockets there is an emerging ‘Asian’ brand of <strong>HR</strong><br />
that focuses <strong>HR</strong> onto the unique challenges of operating in a high-growth region (Figure 2).<br />
Figure 2: The growth option<br />
Developing<br />
or emergent<br />
profession<br />
Implement<br />
international<br />
best practice<br />
The growth<br />
option<br />
There is a choice here for the function in many Asian countries. Stand back, look at what is<br />
working and develop an approach to <strong>HR</strong> that learns from the Western gurus but that blends<br />
it with the best of growth-based Asian practice. Or only adopt the mantras, structures and<br />
ideas that are becoming global orthodoxy.<br />
We hope it chooses the former.<br />
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Phase 1: Next Generation <strong>HR</strong> UK<br />
Next Generation <strong>HR</strong> Asia is the second phase of a research programme initiated by the<br />
<strong>CIPD</strong> and Bridge in 2009. Phase 1 of the project involved interviews with some of the most<br />
innovative <strong>HR</strong> practitioners in Europe. We found that listening to these leading-edge <strong>HR</strong><br />
practitioners ‘on the ground’ and looking at some of the remarkable work they are doing,<br />
provided a fascinating window into a potential route through the inflection point described<br />
above.<br />
In particular, this research told of an inflection point for the profession, and one that is<br />
rooted in the aftermath of the global financial crisis.<br />
Take, for example, the <strong>HR</strong> function of a British bank, at the time widely regarded as one of<br />
the best-run banks in the country. Winners of countless awards, they prided themselves on<br />
the innovative and sophisticated ways in which they tackled the bank’s <strong>HR</strong> challenges. But<br />
when the global financial crisis hit, the bank was hopelessly poorly positioned. It could not<br />
meet its debts and was taken over by the British Government.<br />
While no one would question the excellence of the <strong>HR</strong> team at the bank, this and other<br />
similar stories do raise a question. How relevant can <strong>HR</strong> claim to be if so-called ‘best practice’<br />
is so divorced from the potential business calamity round the corner?<br />
In Europe this has been extrapolated by the tendency, especially where the Ulrich model<br />
had been implemented without a truly compelling overriding purpose, for the function to<br />
become ever more specialised and fragmented.<br />
The inflection point for Europe lies here. Is it enough to build a function built on a collection<br />
of expertises around core people priorities? Or do we need to be bolder and build the<br />
capability to generate rule-breaking insight and to act as guardians of the long-term<br />
commercial success of our organisations?<br />
Interestingly enough, Next Generation <strong>HR</strong>, as defined naturally by some of our <strong>HR</strong> Asian<br />
leaders, appears to bypass and avoid the very issues and concerns that are being raised in<br />
Europe.<br />
<strong>NEXT</strong> <strong>GENERATION</strong> <strong>HR</strong> 7
<strong>NEXT</strong> GENE<br />
Phase 2: Next Generation <strong>HR</strong> in Asia<br />
This report summarises the second phase of the research, focused on innovative <strong>HR</strong> leaders<br />
in Asia. As part of the research, we spoke to 27 companies operating throughout the region<br />
in countries that ranged from Singapore and Hong Kong, to South Korea, China and India.<br />
The research seeks to identify the essence of the Asian brand of Next Generation <strong>HR</strong>.<br />
Rather than being about <strong>HR</strong> in Asia today, it is about <strong>HR</strong> in Asia tomorrow. And in trying<br />
to describe <strong>HR</strong> in Asia tomorrow, we’ve unashamedly sought out the most interesting and<br />
stimulating practice.<br />
The report is also not attempting to compare <strong>HR</strong> against classical ‘templates’ of best practice.<br />
We will avoid comparing <strong>HR</strong> in Asia against Western filters, so won’t be drawing lessons<br />
‘from Asia’ for the wider world.<br />
This study is written in Asia for Asia. We’ve spoken to over 25 of the foremost and most<br />
innovative <strong>HR</strong> leaders in the region. And we’ve found the beginnings of a recipe for <strong>HR</strong><br />
leadership in the region. We try wherever possible to use their words in describing it.<br />
These leaders are responding to a unique set of pressures and challenges – and they are<br />
responding in a uniquely dynamic and innovative way. This study attempts to articulate<br />
their response and to use it to begin to create a vision for <strong>HR</strong> that can shape the destiny of<br />
organisations in Asia.<br />
And this vision is all around <strong>HR</strong>’s role as a catalyst for growth.<br />
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What do we mean by <strong>HR</strong> being a catalyst<br />
for growth?<br />
Asia represents one of the most fast-moving and creative business environments in the world<br />
today. And it has some of the world’s most dynamic and creative <strong>HR</strong> leaders, all responding<br />
to the challenges and opportunities of living in a high-growth environment.<br />
In particular, growth and the Asian business environment are creating two forces:<br />
• The war for talent: the competition for talent in Asia has a fundamentally dynamic<br />
nature to it. It changes rapidly. Often talent is in scarce supply and is hard fought after.<br />
Attrition rates can be shocking (we heard one story of a company that started the year<br />
with around 50 graduates and ended it with one). There are extreme levels of diversity<br />
– between, and within, nations – and between generations. China for instance is a very<br />
diverse country, which consists of many different regions, has as many as 40 nationalities,<br />
and many different languages 3 . This hot house is creating the conditions for some<br />
remarkable innovations in finding and retaining talent.<br />
‘The global war for talent has shifted its battleground to emerging markets.<br />
As multinationals work towards gaining share in these markets, the competition for<br />
people grows more intense.’<br />
Neumeister and Stoian 2010<br />
• Building businesses in a fast-paced region: so much has been written about the pace<br />
of Asian growth and about the innovative business practices it has spawned. But for <strong>HR</strong><br />
leaders the combination of high levels of change and significant market opportunities has<br />
put growth at the heart of the way they see <strong>HR</strong>. And the best of them are doing this in a<br />
way that really leverages the power of <strong>HR</strong> to drive business success. As Yeung et al (2008)<br />
maintain, ‘the growth and globalisation of firms in Asia and the evolution of <strong>HR</strong>M in the<br />
region are two faces of the same phenomenon.’<br />
And each of these two forces takes place in the most dynamic of environments. For example,<br />
twenty-first-century technologies are leapfrogging twentieth-century ideas and are being<br />
rapidly adopted in many countries – and significant demographic changes (for example<br />
ageing populations) are having an increasing impact. Operating in such a context demands<br />
high levels of organisational flexibility – and a unique <strong>HR</strong> response.<br />
3<br />
April, K. and Smit, E. (2010) Diverse discretionary effort in workplace networks: serving self over community in<br />
China. In: Syed, J. and Özbilgin, M. (2010) Managing cultural diversity in Asia. A research companion. Edward Elgar,<br />
Cheltenham: 73-102.<br />
<strong>NEXT</strong> <strong>GENERATION</strong> <strong>HR</strong> 9
<strong>NEXT</strong> GENE<br />
What is Next Practice <strong>HR</strong> in Asia?<br />
As in any fast-changing environment, Next Practice <strong>HR</strong> leaders find themselves wrestling with<br />
the challenges of business-building and talent from both a short-term (that is, solving today’s<br />
challenges) and a long-term vantage point.<br />
And as we were seeking ‘Next Generation’ practices, a theme began emerging that<br />
resonated well with the latest thinking in Europe. Next Generation <strong>HR</strong> leaders in Asia are<br />
insights-led. They use their deep knowledge of the broader context and market, of the<br />
business itself and of the culture and capabilities of the organisation to generate insights<br />
that help the organisation grow.<br />
These insights fall into four areas, and if we take short- and long-term time horizons and the<br />
two core challenges, four ‘corners of next practice’ emerge (Figure 3):<br />
Figure 3: Four corners of growth-based <strong>HR</strong><br />
Winning today’s<br />
battles<br />
Performance<br />
Community<br />
Growing<br />
the<br />
business<br />
Insight<br />
Purpose<br />
Winning<br />
the war for<br />
talent in<br />
Asia<br />
Building a future<br />
fit organisation<br />
• insight – ‘leveraging insights thinking’<br />
• community – ‘building the open family’<br />
• purpose – ‘caretaking dreams’<br />
• performance – ‘competition, coaching and capability’.<br />
As this report progresses, it will outline these corners in more detail. The corners represent<br />
centres of great practice that relate to very specific business challenges. They do not, for<br />
example, attempt to redefine the ‘role of <strong>HR</strong>’. What they do offer, however, is a vision for <strong>HR</strong><br />
in Asia that can leapfrog the development of the profession in the West, but leapfrog it by<br />
focusing on specific Asian issues. We hope you find it as provocative as we did.<br />
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The best companies will already know the challenges<br />
There is no questioning the excitement that is currently surrounding Asia as a business region<br />
and the growth it is currently experiencing. Nor is there much debate that to tap into the<br />
potential in the region, there are key questions to answer, such as finding talent, responding<br />
quickly to market opportunities and leveraging performance across different national and<br />
regional cultures.<br />
But will they have an <strong>HR</strong> function that can lead them?<br />
The question is not about whether these questions are faced up to. It concerns whether<br />
<strong>HR</strong>’s contribution sits at the heart of this, or plays an enabling role on the periphery. Chief<br />
executives can and will focus on these issues, but they will be solved better through a<br />
dynamic partnership between the chief executive and <strong>HR</strong> director. But this can never happen<br />
unless <strong>HR</strong> seizes its opportunity to become a catalyst for growth.<br />
And the four corners offer a structured map on how to create this.<br />
<strong>NEXT</strong> <strong>GENERATION</strong> <strong>HR</strong> 11
<strong>NEXT</strong> GENE<br />
THE FOUR CORNERS<br />
1 Insight<br />
‘Leveraging insights thinking’<br />
The <strong>HR</strong> leaders we interviewed tend to define their key sphere of influence at one of four<br />
levels (Figure 4).<br />
Figure 4: Four levels of influence<br />
Shaping<br />
the<br />
future<br />
Delivering<br />
strategy<br />
Culture and<br />
people<br />
<strong>HR</strong> leaders who operate as strategic architects<br />
of the future, actively seeking out future growth<br />
opportunities<br />
<strong>HR</strong> leaders who define their role as seeking to<br />
ensure the business is able to deliver its business<br />
strategy<br />
<strong>HR</strong> leaders who define their role as seeking<br />
competitive advantage through shaping the culture<br />
and the capabilities of people in the organisation<br />
Core people<br />
processes<br />
<strong>HR</strong> leaders who define their role by the processes<br />
they support, for example recruitment, training<br />
and development<br />
Those leaders who operate near the top of this pyramid (Figure 4) are able to use their<br />
knowledge of the business itself (‘business savvy’), of the opportunities in the environment<br />
(‘contextual savvy’) and of the people in the organisation (‘organisational savvy’). It is when<br />
these three come together that <strong>HR</strong> seems to make the most difference.<br />
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Case study: Shui On Construction Ltd<br />
First established as a construction and materials company, SOCAM realised that the<br />
construction market in Hong Kong faced limited growth, making it necessary for the<br />
corporation to step up its planning for new business streams around a broad aim to<br />
diversify and expand into the fast-growing markets of China. To do this they needed to<br />
reposition and placed a strategic focus on property development. They also needed a<br />
niche that leveraged their core capabilities. Through a combination of all three savvies,<br />
<strong>HR</strong> found a solution – recruiting highly seasoned executives who had worked in Shui<br />
On before and who had held senior management positions in property and related<br />
businesses to return to the company to spearhead the growth of the property businesses<br />
all over China. They rejoined the company at the autumn of their careers with two<br />
briefs: as business champions (build the business) and as development champions (build<br />
your succession):<br />
‘So we look around and think about the knowledge transfer model – meaning we<br />
recruit some very knowledgeable professionals who are, or will be, retirees, in a<br />
relatively short period of time. Then we invite a few key executives to spearhead the<br />
businesses in China, supported by local staff. Because when you work in China, you<br />
have to know China well and have the necessary networks. As they will retire in three<br />
to four years’ time, they know they have to build, operate and transfer businesses and<br />
commercial know-how to the second generation. Not only do they need to set up a<br />
property business, but they have another agenda – to groom the successors. So this is<br />
the staff model which has successfully driven the transformation of the company in the<br />
past few years, and which has provided a long-term solution to preserve the intellectual<br />
capital of the organisation.’<br />
In the business hot house that is Asia, we’ve many examples of <strong>HR</strong> leaders actively driving<br />
strategic business initiatives through their own insight. Examples we’ve heard range<br />
from opportunities to expand services to other companies in the group (New World<br />
Telecommunications Ltd) to the need to take an established local company and make it<br />
globally competitive (MTR: transport industry) and venturing into completely new business<br />
areas (Jebsen).<br />
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Case study: New World Telecommunications Ltd<br />
At New World Telecommunications Ltd in Hong Kong, <strong>HR</strong> has played a leading role in the<br />
business transformation from landline and mobile to broadband. They are now highly<br />
involved in a range of business innovations – such as offering broadband services to hotels<br />
that take a mature landline business and turn it into an innovative broadband one.<br />
‘<strong>HR</strong> in our organisation is not doing <strong>HR</strong>, it is really on a business partnership; we have to<br />
know the business well in advance…. 30% of my time is on <strong>HR</strong>. 70% is on business.’<br />
Case study: Hong Kong rail and property company MTR<br />
Hong Kong’s major public transportation company MTR faces two main challenges:<br />
managing the massive growth and expansion they are developing in Hong Kong itself<br />
and learning to be a global organisation. They already have operations in mainland<br />
China, London, Sweden and Australia.<br />
‘Hong Kong is our base in which we continue to excel, and from Hong Kong we<br />
expand into the international markets. Our Hong Kong expertise has facilitated our<br />
growth internationally, and in turn our global experience has strengthened our ability<br />
to do even better in Hong Kong. At the centre of this change are the MTR people. It<br />
is the MTR people who are the change and learning agent for our Hong Kong and<br />
international operations. <strong>HR</strong> has a core role to play in building an enterprising and<br />
learning culture that supports this change. By taking up the various challenges posed<br />
by our international businesses and overcoming them, we are growing stronger and are<br />
moving closer to achieving our vision – to be a globally recognised leader that connects<br />
and grows communities with caring service.’<br />
At its best this is not about building <strong>HR</strong> strategies that support the business strategy. It is<br />
about partnering the business so that <strong>HR</strong> levers are key, integrated, ‘insight-led’ elements of<br />
the business strategy itself.<br />
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New business thinking<br />
The business media have paid increasing attention to the new thinking that is emerging in<br />
Asia. And Next Generation <strong>HR</strong> is playing a leading role in some of this thinking, especially<br />
where insight-led <strong>HR</strong> leaders at the top of organisations have used their unique people-led<br />
perspective to build quite different business models.<br />
From competition to partnership<br />
Case study: Ngong Ping 360 – Hong Kong tourist attraction rebuilding its brand<br />
after cable car dislodgment<br />
<strong>HR</strong> played a lead role in crisis and change management and championed a big vision for<br />
tourism in Hong Kong, seeing other attractions not as competitors but as partners – all<br />
working together for the good of Hong Kong’s tourist industry. They have developed<br />
a win–win view of business. This view opens up a number of innovative co-operative<br />
partnerships with what would otherwise be competitors.<br />
‘We always position ourselves as partnering with Hong Kong Disneyland or Ocean Park<br />
and not as our competitors. We had exchange and sharing of experience, joint promotion.<br />
We both open the door…’<br />
Using the ‘university’ as a model for corporation<br />
Case study: Founder Group (a corporation owned by Peking University)<br />
Founder Group sees its access to the country’s top talent as a core source of competitive<br />
advantage and invests heavily in hiring the best students – even before they are sure there<br />
are specific jobs for them. It then uses this unique human capital advantage to work in<br />
areas that range from the financial sector to software development. And it leverages its<br />
university brand to win business.<br />
‘We have close connections with Peking University. There are several reasons behind it.<br />
Number one is that the university is our majority owner. And number two is we still get<br />
a lot of people from Peking University to work here. Number three is that there is a lot<br />
of technology jointly developed with the university. And number four, in China, Peking<br />
University is a well-respected, well-known university and that means we can easily get<br />
trust and support from central and local government…, “This enterprise, the owner is<br />
Peking University” means a lot. We can easily get their trust because they know that this is<br />
one of the most prestigious universities.’<br />
In both cases, an <strong>HR</strong>-led strategy has interesting business implications from treating<br />
competitors as partners to a business model that merges state, commerce and academia into<br />
a unique form.<br />
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The dilemma<br />
The paradox here is that a number of our interviewees described how many Asian leaders<br />
(perhaps due to the education system’s heavy and highly competitive focus on academic<br />
subjects and passing examinations) are not naturally strong at true insights thinking:<br />
‘Culturally it is a tell culture…people are used to being told what to do and doing it and not<br />
necessarily challenging.’ (Asia-Pacific <strong>HR</strong> director on insights thinking in the region)<br />
This presents a dilemma. If so many Asian leaders are not natural insights thinkers, how<br />
come we are finding examples of great practice? Is this thinking the preserve of a few<br />
exceptional leaders, or is it something that <strong>HR</strong> can develop as a core competence more<br />
broadly?<br />
Insights thinking – the core capability for growth<br />
And if <strong>HR</strong> can codify what these leaders do, and teach the essence of insights thinking so<br />
that it does not rest with a few individuals but runs through <strong>HR</strong>, it will be developing a<br />
critical competence that is of value to the whole organisation.<br />
<strong>HR</strong> in Asia does seem to be at an inflection point. On the one hand, there is a clear drive<br />
to build the profession. Naturally, this will focus on building business partners, centres of<br />
excellence and the like. And with this thinking will come many of the issues that are familiar<br />
to global <strong>HR</strong> functions, such as how to develop ‘business partners’, avoid fragmentation and<br />
so on.<br />
However, given the importance of business insight to fast-growing economies and the<br />
need to develop ‘insights thinking’ more broadly in the region, there does seem to be an<br />
opportunity for <strong>HR</strong>. By explicitly focusing on this capability, it could add a different dimension<br />
to its professional practice and, in doing so, leapfrog much contemporary practice.<br />
And of course, insights thinking can be applied to classic <strong>HR</strong> challenges. In the following<br />
pages we explore how insights-led <strong>HR</strong> functions have been thinking about problems of<br />
community, purpose and performance against the backdrop of rapid growth.<br />
Growth-based <strong>HR</strong> – leveraging insights thinking<br />
• <strong>HR</strong> offers insight on the business as a whole. <strong>HR</strong> leaders are valued for their challenge<br />
and thinking about business issues well outside of the <strong>HR</strong> area.<br />
• <strong>HR</strong> leverages its traditional ‘people expertise’ (for example, culture, capability, and so<br />
on) to open up new market and growth opportunities.<br />
• <strong>HR</strong> managers talk about insight and growth.<br />
• There is no need to talk about the <strong>HR</strong> strategy supporting the business strategy. They<br />
are one and the same thing.<br />
• <strong>HR</strong> can leverage its own strengths to promote and build insights capability and<br />
thinking in the broader organisation.<br />
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2 Community<br />
‘Building the open family’<br />
The importance of Asian values<br />
‘We’re not like an American company’ is a phrase that appeared early on in a number of<br />
the interviews. And it occurred in a number of cultures (albeit with a different emphasis).<br />
For many interviewees, leading American companies are synonymous with individualism and<br />
internal competition. This can appear at odds with core values such as ‘community’ and with<br />
the traditions in many cultures of family businesses that look after and show high degrees of<br />
loyalty to their employees.<br />
The best <strong>HR</strong> leaders found ways to honour and pay attention to the core, traditional values<br />
of their businesses.<br />
But these values are under pressure…<br />
Case study: China Mobile<br />
China Mobile sees the hiring of best talent as part of their social responsibility, providing<br />
jobs and opportunity for talents to perform and develop to their maximum potential.<br />
‘…the people that I work with, from the top management to my immediate boss, the<br />
people and the organisation demonstrate what we talk about in our core values. They are<br />
responsible to all colleagues, customers and society at large. I feel good about working<br />
here.’ (recent graduate at China Mobile)<br />
We encountered many cases in which these values are under pressure. In some cases, this is<br />
due to the competitive environment.<br />
For example, in China the core capability of a property development company (Sino-<br />
Oceanland) was, until recently, all about getting land in the right place and building on<br />
it quickly. But now consumers are becoming more demanding. They want communities,<br />
somewhere for their children to play and so on. This means property developers need to<br />
become more customer focused and creative in the way they work.<br />
But traditional cultures based on values such as community, respect and a strong hierarchy<br />
don’t necessarily build creative, responsive cultures. The property company faced a dilemma:<br />
how to honour traditional values and build the culture the business needed.<br />
But in our interviews the biggest tension came between generations. Whether described as the<br />
ubiquitous Generation Y, or (in China) sometimes by decade of birth, it seems clear that many<br />
countries’ younger workers are entering businesses with radically different expectations.<br />
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In particular, they want to be trusted to make decisions and are more open and willing to<br />
challenge. They want a culture of honesty and openness.<br />
‘The young generation, they come into the workforce and they have very different working<br />
expectations. They have their own value they want to perceive. They’re more technology<br />
orientated. They basically have a resources-rich life, and they are much more self-orientated<br />
compared with the past generation…. They have a stronger intention to achieve what they<br />
want to achieve. They much prefer open communications. They prefer less hierarchical<br />
organisation. They would prefer getting them more freedom, a platform for them to use<br />
their talent. They have probably less patience, they want to move faster.’<br />
‘You’d be very surprised. In China, particularly the younger generation, they are very open.<br />
They do come up, they do challenge the authority where they see things which they feel are<br />
not fair. They come up to you or they write a lot of anonymous letters, even our chairman<br />
receives a lot of anonymous letters – roughly at least one a month.’<br />
And they are highly media-savvy. This means organisations need to be prepared to be more<br />
open with the wider world as well.<br />
For example, one interviewee spoke about hiring nurses. In recent years they have found<br />
new ‘Gen Y’ nurses to be very technology-savvy. In particular they use online sharing tools<br />
such as Facebook to describe their experiences. This means stories get in the press quickly<br />
(and of course medical concerns are highly newsworthy). As a result, the hospital has had to<br />
learn to be more open and media-savvy.<br />
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Embracing the future, respecting the past<br />
The ‘open family’ insight<br />
The most impressive <strong>HR</strong> leaders are navigating this in a way that respects the past and builds<br />
distinctly Asian cultures – but that uses these new pressures to create a culture that embraces<br />
ideas such as autonomy and openness. In doing so they are able to blend the best of both.<br />
In other words, they are building communities that combine the values of:<br />
• being ‘open’ – demanded by young people; critical for driving performance; essential to<br />
global business working<br />
• maintaining ‘family’ – capturing the essence of the collective good, of caring for one<br />
another and of loyalty and service to the community (the core values associated with<br />
traditions such as Confucianism).<br />
It is this ‘open family’ model that so often underpins the cultures of the most impressive<br />
organisations we met.<br />
Case study: China Mobile<br />
China’s leading employer is a state-owned enterprise that focuses on openness to<br />
integrate its traditional culture with more modern values. Its approach to graduate<br />
branding has three fits – right person for the position, right person for the team,<br />
right person for the culture. The organisation deliberately role-models openness and<br />
transparency in all dealings and throughout the recruitment process. This seems to merge<br />
traditional Chinese values with Gen Y aspirations for transparency and internationalism.<br />
Case study: Samsung Tesco<br />
Samsung Tesco in Korea deliberately runs itself as a Korean rather than a Western<br />
business. Other global supermarkets operating in Korea made the mistake of setting up<br />
with expats, who did not have the local knowledge about Korean policies, employees and<br />
customers. For this reason they failed to make their business a success and have had to<br />
change that model. Samsung Tesco took a ‘glocal’ approach – global policies and processes<br />
but utilising local Koreans. This combination worked well. In other organisations the<br />
corporate culture is centred around the CEO, but at Samsung Tesco the culture transcends<br />
individuals. And in doing so it is able to respond to ‘Generation ‘Y’ issues such as openness<br />
and balance without compromising its social ‘Korean’ identity.<br />
Case study: SOCAM<br />
SOCAM has instituted backwards mentoring – Gen Y mentoring older employees on<br />
technology and new media:<br />
‘We have a reverse mentoring programme. While the older generation has lots of real-life<br />
experience, the younger generation is resourceful. Why? Because of the Internet and the<br />
emergence of the social media. The younger generation has many friends online through<br />
a valuable virtual community. So while we may still be talking, they may already be<br />
sharing and tapping into a gold mine of the latest information and data.’<br />
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3 Purpose<br />
‘Caretaking dreams‘<br />
‘Always my motto is that we are a caretaker of your dreams. Share any dream with us and<br />
then I see whether I can take care of your dreams.’ (Pan-Asia <strong>HR</strong> Director)<br />
The talent market for Asia is never static. Organisations we spoke to describe it as<br />
‘ferocious’, ‘intense’ and ‘highly competitive’. The impact of this varies, but at its extreme we<br />
met organisations (for example within certain sectors in China) suffering extreme levels of<br />
staff turnover (40–90%).<br />
Aspirations are moving fast and expectations are shifting with them. Not only that, but in<br />
many countries there is an intense sense of national pride and of increasing self-expression.<br />
The best organisations are rapidly trying to differentiate. And to differentiate in a way that<br />
taps into these trends.<br />
Case study: Samsung Tesco (Korea) differentiates for younger employees<br />
Traditionally in Korea employees work long hours – this has led to high productivity but<br />
poor work–life balance. The younger generation do not have the same values as older<br />
employees and are not prepared to work long hours, nor do they value overtime. The<br />
Samsung Tesco CEO has led a number of initiatives to help people to work more efficiently<br />
with family support, such as flexible working. There is a general desire for organisations<br />
in Korea to become great workplaces and work–life balance issues are key to that and to<br />
retaining people.<br />
And the best kinds of differentiation are whole-business solutions. Next Generation <strong>HR</strong><br />
leaders have, in these cases, taken the idea of aligning the employer brand and market<br />
brand to a new level, one that creates a whole-business personality that is appealing to<br />
customers and staff alike. Thus the alliance between marketing and <strong>HR</strong> becomes the<br />
backbone of the business’s identity.<br />
Case study: New World Telecom<br />
New World Telecom mirrors its customer and employee offering. ‘As a customer what<br />
I want is innovation, I want quality and I want service. What I want as a team member<br />
is warmth, community and learning, which creates the innovation, and I want honesty,<br />
which creates the quality. So you are talking about just directly mirroring the two.’<br />
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Case study: The Founder Group<br />
The Founder Group in China has a remarkable success rate at attracting top graduates<br />
from its parent university (Peking University) and from other top universities. It does this<br />
through adopting and modelling its culture on the brand of a top university. For example,<br />
it is actively involved in the universities themselves (through prizes, internships, training,<br />
two-way dialogue). And when graduates join the organisation they find many elements<br />
of the culture and employment proposition familiar, for example the focus on excellence<br />
and applied technology, a rigorous performance culture (with clear success and failure)<br />
and a high investment in mentoring and other learning support.<br />
Case study: Ngong Ping 360<br />
Ngong Ping 360 is responsible for one of Hong Kong’s most iconic tourist attractions,<br />
including a 5.7km cable car journey leading to the Tian Tan Buddha statue. Customer<br />
service therefore is central to all activities.<br />
‘Customer service is driven from the heart; we want our staff to be passionate, to be frank<br />
and to be patient. Fundamentally, starting from recruitment we have already decided<br />
on the criteria on what we want. …mindset is more important than the qualification. So<br />
mindset is important here while we are selecting people, so we need to put the skills to<br />
select the right people and then when they come here how we enforce and build on the<br />
customer service guidelines to let them know what we want them to be.’<br />
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Tapping into the power of shared purpose<br />
The insight: two key levers, authenticity and purpose<br />
Growth-based <strong>HR</strong> leaders, however, are going beyond this. They are looking to build deep<br />
and enduring engagement, tapping into the passion, dreams and aspirations of their people<br />
to power long-term growth.<br />
One way to look at this is through a simple metaphor for relationships (Figure 5).<br />
Figure 5: A metaphor for relationships<br />
Social<br />
Getting to know one another; the social glue of<br />
organisations<br />
Business<br />
Understanding roles, strengths, weaknesses;<br />
giving feedback; setting goals<br />
Trust<br />
The more personal questions that drive our<br />
behaviour; self-talk, feelings, dreams and values<br />
Two key levers:<br />
AUTHENTICITY and PURPOSE<br />
For a long time engagement and brand alignment was about behaviours and the customer<br />
and employee experience. Next Generation <strong>HR</strong> leaders seem to be able to look beyond this.<br />
In the long term, engagement and talent attractiveness will be determined by factors that go<br />
on ‘below the iceberg’.<br />
This means being able to compete on two dimensions: authenticity and purpose.<br />
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Authenticity<br />
Authenticity is rooted in a different level of openness. On the one hand, the organisation is<br />
confident, being genuinely open and acting in a way that is consistent with its values. On<br />
the other hand, there is sufficient trust for individuals to be able to explore their own hopes,<br />
dreams and concerns in a genuinely safe way.<br />
Case study: China Mobile<br />
China Mobile, one of the world’s biggest telecoms companies, has won awards as best<br />
employer in China for the past six years. They attribute a great deal of this to their<br />
efforts to be transparent and open with their employees.<br />
Case study: Standard Chartered<br />
Standard Chartered, a global bank, budget for 80% of their income and profits in<br />
Asia. They believe that authenticity and humility are crucial to succeed and have<br />
consciously focused on authentic leadership and on role-modelling it from the top of the<br />
organisation.<br />
‘What we are constantly focusing on is effective employee engagement and the term<br />
that we use is “authenticity” because for us being authentic is critical. The role of the<br />
manager, the role of the leader in the organisation is absolutely very much linked to the<br />
performance of the bank and we have all sorts of data showing how important it is and<br />
the difference it makes on revenue growth, to profit and so on.’<br />
And in order to build a transparent culture, <strong>HR</strong> needs to role-model openness, because the<br />
Chinese culture encourages harmony, a balance. If the <strong>HR</strong> department has this kind of a<br />
role, what about other departments?<br />
‘The other huge quality that our Group CEO Peter Sands and the other executives at the<br />
top of the bank have is humility. So there is no arrogance, there was no cheering when<br />
many of our competitors were struggling. The initial reaction that most senior people had<br />
was to try and help governments.’<br />
Case study: Logica<br />
Logica has recently launched its Employee Value Proposition and Client Value Proposition built<br />
around client intimacy, both internally and externally. They believe this will differentiate them<br />
externally in the IT market and internally by building a fantastic place to work.<br />
Case study: Maquarie Bank (Australia)<br />
Maquarie Bank in Australia realised the opportunity to merge its natural entrepreneurialism<br />
and commercial competence with a more collaborative style of working to help further the<br />
client-focused culture within its retail business based in Shelley Street, Sydney. The catalyst for<br />
this was the building of one of Australia’s most innovative workspaces.<br />
It used the transitions to the innovative physical environment to promote an open,<br />
transparent and collaborative culture (the environment is designed to promote and encourage<br />
flexibility, innovation and collaboration). Crucially, it also tried to ensure the way it managed<br />
the transition to this environment acted as a trigger for broader cultural development.<br />
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Inspiring a bigger sense of purpose<br />
Many Asian countries are facing exciting times. And people know this. It is a time to dream<br />
and to think about nation- and community-building. The best organisations tap into this and<br />
inspire their people with a sense of bigger purpose and of grand ambition.<br />
Case study: Indian construction company<br />
We spoke to one of India’s premier infrastructure businesses. And it has to attract a highly<br />
scarce resource – construction project managers. They do this by appealing to a larger<br />
sense of purpose.<br />
‘First we plan our campaign. We never build a road. We build a highway…and it is part<br />
of building a new India…. We then launch the project to the press. Really build up the<br />
prestige of it. It is only at that point that we begin to talk to potential project managers.<br />
And by this stage we have something really prestigious and exciting to sell them. They feel<br />
as if they are making a difference.’<br />
Case study: Glaxosmithkline<br />
Glaxosmithkline, a global pharmaceutical, is tapping into the increasingly intensive<br />
competition in attracting and retaining sales people in China. And one way it does this is<br />
by tapping into a sense of broader ‘societal’ purpose – expanding access to medicines.<br />
‘A lot of people in emerging markets are inspired by the potential of pharma to expand<br />
access of medicines for developing countries. The Asian employment offer for GSK might<br />
then become inspiring purpose, geographical travel and great development.’<br />
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4 Performance<br />
‘Competition, coaching and capability’<br />
A common frustration expressed by <strong>HR</strong> directors concerns the way in which their<br />
organisations focus on performance.<br />
A reluctance to deal with poor performance<br />
Many <strong>HR</strong> leaders describe their efforts to encourage their managers to coach and to<br />
performance-manage poor performers. In some cases, in a growing business it is easy for<br />
underperformance to become hidden. In other cases, our interviewees describe a cultural<br />
reluctance to confront and discuss these issues.<br />
‘Generally speaking there is less evidence of the challenger or provocateur in the Asian<br />
culture and it is less culturally acceptable. Less able to “hold up the mirror”.’<br />
Some <strong>HR</strong> functions (such as China Mobile) have explicitly defined the role of <strong>HR</strong> as being<br />
about role-modelling this, and in doing so have consciously demonstrated an alternative to<br />
the Chinese focus on ‘harmony’.<br />
Development is more about qualifications than<br />
competence<br />
Our interviewees also describe a tendency to equate learning and development with<br />
attending courses and winning qualifications rather than actual on-the-job learning and<br />
genuinely focused development. One interviewee described this as:<br />
‘CV-building rather than capability-building. There is a big emphasis on getting a certificate<br />
at the end of something and then it is done and let’s move on.’<br />
Seniority and length of service<br />
And in some cases, an overemphasis on values such as community and respect has led to<br />
promotion becoming tied to length of service rather than competence and achievement.<br />
‘There is a real expectation of staff in Asia that your salary and your promotions, if you like,<br />
job title, is dependent on your length of service as opposed to your performance.’<br />
The insight: the three Cs of competition, coaching and<br />
capability<br />
Building a performance culture is a big part of the short-term agenda described by many<br />
of our leading <strong>HR</strong> interviewees. And they tend to do it through a focus on the three Cs:<br />
competition, coaching and capability.<br />
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Competition<br />
Although ‘confronting’ poor performance is seen as counter-cultural in some parts of Asia,<br />
many of the same countries have highly competitive education systems. People leave them<br />
well accustomed to ‘rigorous performance evaluation’. By tapping into this ethos some<br />
organisations have made great progress embedding the performance culture they seek.<br />
Case study: The Founder Group<br />
The Founder Group in China has transformed its performance culture. Graduates join used<br />
to a highly evaluative and competitive academic environment. By consciously sustaining<br />
and building on this they have found a natural way to use competition to leverage a<br />
performance culture.<br />
‘We set a very high performance standard for our employees; if you cannot meet the<br />
standard we defined for you, it is ok for the first time. We’ll give you a second chance.<br />
We make it very clear what does it mean when you fail to meet the defined standard at<br />
the end, and people know that if his or her performance appraisal result is not okay the<br />
better choice is to leave. Therefore for me as <strong>HR</strong> Head I never force people to leave; we<br />
just tell them their performance result. Let them know that within Founder, that means<br />
their future is just here that’s it. This is the point.’ (<strong>HR</strong> Director, Founder Group)<br />
Coaching<br />
This has been accompanied by a heavy emphasis on the role of the line manager as coach.<br />
‘Coaching’ is becoming increasingly important across Asia and the best organisations are<br />
investing heavily in enhancing the abilities of their leaders to coach their people.<br />
When the Indian construction company hires ex-pat project managers, it limits their contracts<br />
to two years. And during this time it gives them two targets, both equally remunerated. The<br />
first is to deliver the project. The second is to discover and groom a successor.<br />
Case study: Glaxosmithkline<br />
A similar response has emerged for Glaxosmithkline in China. The <strong>HR</strong> function here is<br />
placing much emphasis on developing the first-line manager to engage, motivate and<br />
retain valued employees set against a context of extremely high turnover rates in Asia.<br />
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Capability<br />
It is also important that driving performance is not at the expense of teamworking and does<br />
not diminish the respect (or face) of each individual.<br />
Case study: Standard Chartered<br />
‘One of the things that attracted me to Standard Chartered Bank and that still keeps me<br />
is the fact that it is a strength-based organisation. A lot of organisations today are still<br />
focusing on the things that they don’t see in individuals. What we do is to try and identify<br />
those little strengths, those nuggets that individuals have that we can build on, so we try<br />
and position people in a way where they can perform to their best every day.’<br />
Case study: The Founder Group<br />
The Founder Group, founded by Peking University in 1986, has grown to become one of the<br />
largest conglomerates in China. The <strong>HR</strong> team deliberately recruits for talent rather than role.<br />
‘We only hire potentials. When we make an employment decision, we do not focus too much<br />
on their suitability to the openings. We pay high attention on their development potential,<br />
we check if they have potential for a higher position. I push hard this recruiting philosophy<br />
within the Founder Group. I won’t just recruit people specifically for a position. I care how<br />
excellent the person is, if their competency is above average then you are the one for this<br />
company. Then I will try to attract you and figure out what kind of position for you.’<br />
Performance – what might a growth-based <strong>HR</strong> function do?<br />
• Relentlessly drive the performance culture. Embed the systems and processes that<br />
support this.<br />
• Role-model challenge and openness.<br />
• Consciously hold up the mirror to line managers who don’t give feedback to their team.<br />
• Know that performance can only be driven by a focus on competence rather than<br />
qualifications. They see their role as championing and educating their business<br />
around this.<br />
• Drive performance through the three Cs – competition, coaching and capability:<br />
– using competition as a natural lever to focus on performance<br />
– investing in building a coaching culture<br />
– emphasising capability (rather than focusing on development areas).<br />
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<strong>NEXT</strong> GENE<br />
CONCLUSION: WHAT DOES THIS MEAN FOR<br />
<strong>HR</strong> IN ASIA?<br />
The future of <strong>HR</strong> in Asia<br />
As we said at the beginning, the function that was described to us in Asia is in a state of<br />
flux. In many places, it is still developing and emerging.<br />
‘<strong>HR</strong> in Asia when I arrived was very transactional, admin based, lots of paper, lots of<br />
checking and re-checking and sign off…’<br />
‘The <strong>HR</strong> profession in China is in its infancy…. The majority are unlikely to have five years’<br />
experience and little experience in different businesses.’<br />
‘The <strong>HR</strong> team has 47 people, but almost no people with an <strong>HR</strong> background.’<br />
Professionally, the situation is mixed. There are some well-established professional institutes<br />
in Asia, whereas other countries treat <strong>HR</strong> as a business discipline rather than a profession<br />
that requires a professional qualification.<br />
And yet, as we’ve described within this dynamic and fast-changing context, we’ve<br />
experienced some truly remarkable <strong>HR</strong> leaders and some highly innovative <strong>HR</strong> practices.<br />
And it strikes us that <strong>HR</strong> in the region faces a choice.<br />
It will be easy for <strong>HR</strong> in Asia to follow the Western development path and adopt many of the<br />
‘best practice’ models currently abounding in the literature. In many ways, there is nothing<br />
wrong with this.<br />
But this report outlines a different, perhaps more exciting alternative. We’ve called this the<br />
growth option (Figure 6).<br />
Figure 6: The growth option<br />
Developing<br />
or emergent<br />
profession<br />
Implement<br />
international<br />
best practice<br />
The growth<br />
option<br />
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And the growth option seems to be built around the four corners of business imperative<br />
described in this report. They seem to offer the potential for an Asian blend of <strong>HR</strong>. And a<br />
blend that is insight-driven from the start.<br />
And what are the characteristics of ‘Next Generation’ <strong>HR</strong><br />
leaders?<br />
We’ve been fortunate in this research to meet some pretty amazing <strong>HR</strong> leaders. And the<br />
best of them have an unusual set of leadership capabilities.<br />
Our suggestion is that if <strong>HR</strong> in Asia is to genuinely fulfil the growth option outlined here,<br />
then this might be a good template for <strong>HR</strong> leadership more generally.<br />
Purpose<br />
All the best <strong>HR</strong> leaders we met have a big and ambitious agenda. This agenda seems to<br />
flow from a clear sense of personal purpose that combines a set of values and a vision for<br />
the legacy they want to leave. They realise that while <strong>HR</strong> is a key component to deliver<br />
the business’s strategy, defining their role purely in service of this is too limited. They see<br />
themselves as architects of the organisation’s future in their own right.<br />
Humble authority<br />
But they do this in a gentle and subtle way. <strong>HR</strong> leaders cannot ‘set direction’ in the way<br />
a CEO can. The best of them are humble enough to influence and shape the business<br />
through others. But they never let this diminish the size of their dreams.<br />
Ironically this kind of humble authority enhances and magnifies the presence of the<br />
individual leader and they are actively looked up to. This is especially important at a senior<br />
level in a large organisation where a leader’s impact with junior employees is based on<br />
their impressions, as opportunities for personal contact are limited.<br />
Insight creator<br />
We’ve spoken already about how the best <strong>HR</strong> leaders are able to see new sources of<br />
competitive advantage and to spot different opportunities beyond traditional <strong>HR</strong><br />
boundaries. This thinking capability – common in the best CEOs – is something that could,<br />
if explicitly developed, begin to redefine and shape <strong>HR</strong>’s role and influence in the region.<br />
Willing to be different<br />
The best <strong>HR</strong> leaders are definitely willing to be challenging and provocative at times. But<br />
what makes this so much more effective is their willingness to take risks:<br />
• They take risks in what they try to do (carrying out some remarkably creative and<br />
different activities).<br />
• They take risks in how they behave. For example, if they want more challenge in the<br />
culture, they start by role-modelling it themselves.<br />
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<strong>NEXT</strong> GENE<br />
What would this mean for the function?<br />
A clear articulation of <strong>HR</strong>’s purpose and positioning<br />
accordingly<br />
If <strong>HR</strong> doesn’t seize the opportunity to define and shape its unique role in the Asian story, it<br />
will be limited by its own current positioning and miss the opportunity to act as a key catalyst<br />
for growth in the region.<br />
Obviously this is dependent on attaining excellence in <strong>HR</strong>’s core role. But given the pace of<br />
change in the region, the pull for <strong>HR</strong> must be to focus both on building core capability and,<br />
at the same time, to step beyond this and to actively take on the mantle of insight leadership<br />
within their respective businesses.<br />
And success in this is dependent on defining <strong>HR</strong>’s role as being about finding new and<br />
creative solutions to the growth challenges facing organisations. To do this, we need to focus<br />
on a few big ideas rather than becoming bogged down by process ownership or through<br />
many small <strong>HR</strong> transactions.<br />
The growth option is about using insights thinking to identify a few breakthrough things<br />
to do well – and to do this the function will need to be positioned as a core component of<br />
business and strategic leadership.<br />
Invest in the four corners<br />
And to take the ‘growth option’, <strong>HR</strong> will need a clear strategy for each of the four corners:<br />
Growth-based <strong>HR</strong> – focusing on the four corners of growth<br />
• Drive value through business insight.<br />
• Build the open family – embrace the future while respecting traditional cultural values.<br />
• Leverage the three Cs to ensure performance improvement keeps pace with market<br />
growth.<br />
• Inspire current and future employees with a vision that goes ‘under the iceberg’ and<br />
taps into authenticity and bigger purpose.<br />
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The centrality of deepening our capacity to be insight-driven<br />
Insights thinking does appear to be one of the key levers both in differentiating the function<br />
and in unlocking the four corners of growth. It should therefore be central to the function’s<br />
capability-building agenda:<br />
• We should consider building the ‘savvies’ at all levels of the function. Contextual<br />
‘savvy’ (knowing the broader environment), business ‘savvy’ (commercial acumen) and<br />
organisational ‘savvy’ (knowing how to leverage culture and performance in your own<br />
organisation).<br />
• We should also build processes and capabilities for gathering data, turning it into insights<br />
and using the insight to leverage breakthrough solutions.<br />
Building a movement for change<br />
Sometimes the best way to build an agenda like this is across sector and by tapping into<br />
some of the leading lights in the profession itself. In the UK we’ve tried to do this with<br />
the Next Generation <strong>HR</strong> Leadership Programme. Perhaps there is potential to bring key <strong>HR</strong><br />
leaders in Asia together with a similar purpose in mind?<br />
The inflection point is now<br />
A lot has been written in this report about the pace of change in Asia. But of course in a<br />
dynamic context opportunities don’t last for long. There is a real danger of <strong>HR</strong> being left<br />
behind on this agenda if it doesn’t respond soon. The growth option is available right now<br />
and if we as a profession don’t take it we will remain an important business service but we<br />
will have missed the opportunity to leverage <strong>HR</strong> as a catalyst for growth. And for us that<br />
would be a terrible shame.<br />
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<strong>NEXT</strong> GENE<br />
A VISION FOR <strong>HR</strong>: OUR<br />
INTERVIEWEES’ WORDS<br />
We asked each of our interviewees for their own personal vision for Next Generation <strong>HR</strong> leaders<br />
in Asia – the skills and behaviours that it takes to lead the way or trail-blaze in this uniquely Asian<br />
context. As you will see, their ideas have strong synergies with and further illustrate the four<br />
corners of business imperative at the heart of this report. We wanted the final word to be from<br />
the innovative <strong>HR</strong> practitioners who inspired our thinking.<br />
Insight<br />
‘Fundamentally everything is coming up from the business. I need to understand what the kitchen<br />
staff are doing and job duties and how the position drives the revenue and delivers the business<br />
performance and how that is linked with the outside world.’<br />
‘Having a global mindset and cultural adaptability…’<br />
‘I think having awareness of cultures, and having the ability to work with people on all different<br />
levels is pretty key.’<br />
‘Two things: one is know your region. And if your region, say, is in China you need to know all the<br />
region of what’s happening economically, education things. The flow of human capital. And the<br />
other thing is the networking. And a lot of things you can steal from people’s brains. So you have<br />
a bigger pool of ideas to solve the <strong>HR</strong> issues.’<br />
‘If we do not know the business, how can we build the plan for implementation and to groom the<br />
people for two to three years’ time? We should have a vision together with a global network to<br />
see what is happening in the world around.’<br />
Community<br />
‘You need to have that awareness to understand why people believe and feel what they feel here.’<br />
‘<strong>HR</strong> should not only play a guardianship role to help the organisation remain true to its values<br />
but should also be entrusted to help employees internalise those values, especially when new<br />
members are welcomed to the organisational family.’<br />
Purpose<br />
‘There needs to be a common focus on integrity, and personal integrity particularly, because of<br />
past corruption in Asian businesses.’<br />
‘Always my motto is we are not here to police, that we are a caretaker of your dreams. Share any<br />
dream with us and then I see whether I can take care of your dreams.’<br />
Performance<br />
‘<strong>HR</strong> leaders need to be focused on business strategy and to be able to coach line managers to<br />
develop a performance culture.’<br />
‘You always have to dance with them, don’t let them dance alone or they will go and find another<br />
partner than you.’<br />
‘<strong>HR</strong> as PR – the first three months I am not taking up a role as <strong>HR</strong> I’m basically a PR. The majority<br />
say ok <strong>HR</strong> I will call you when I need you.’<br />
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APPENDIX<br />
Organisations we spoke to<br />
BG Group<br />
Lloyds Banking<br />
Lloyds Register Asia<br />
GSK<br />
IBM Growth Markets<br />
Logica CMG, Sdn Bhd<br />
Maquarie Bank<br />
Standard Chartered Bank<br />
Tesco International<br />
City Telecom (HK) Ltd<br />
Jebsen & Co. Ltd<br />
Sony Ericsson<br />
New World Telecommunications Ltd<br />
The Hong Kong and China Gas Ltd<br />
Ngong Ping 360 Ltd<br />
Richemont Asia Pacific Ltd<br />
MTR Corporation Ltd<br />
Shui On Construction and Materials Ltd<br />
Ericsson<br />
Sino-Ocean<br />
China Mobile<br />
JP Morgan<br />
Volvo<br />
Founder Group<br />
References<br />
<strong>CIPD</strong>. (2010) Talent development in the BRIC countries [online]. Hot topic. London: Chartered<br />
Institute of Personnel and Development. Available at: http://www.cipd.co.uk/subjects/<br />
lrnanddev/general/_talent_development_bric.htm [Accessed 23 November 2010].<br />
NEUMEISTER, C. and STOIAN, R. (2010) Human resources in emerging markets. Workspan.<br />
Vol 53, No 4, April. pp22–26.<br />
YEUNG, A., WARNER, M. and ROWLEY, C. (2008) Growth and globalization: evolution of<br />
human resource management practices in Asia. Human Resource Management.<br />
Vol 47, No 1, February. pp1–13.<br />
ZHU, Y. and WARNER, M. (2004) The implications of China’s WTO accession for employment<br />
relations. European Business Journal. Vol 16, No 2. pp47–58.<br />
<strong>NEXT</strong> <strong>GENERATION</strong> <strong>HR</strong> 33
<strong>NEXT</strong> GENE<br />
A SIGNIFICANT HISTORY<br />
Chartered Institute of Personnel and<br />
Development: approaching 100 years in<br />
business<br />
The Chartered Institute of Personnel and Development (<strong>CIPD</strong>) is leading the global<br />
standards for best practice in <strong>HR</strong>. Our aim is to drive sustained organisation performance<br />
through <strong>HR</strong>, shaping thinking, leading practice and building <strong>HR</strong> capability. We have<br />
over 135,000 members, including over 50,000 who are Chartered, representing the<br />
most influential senior <strong>HR</strong> leaders from the world’s leading organisations and the next<br />
generation of <strong>HR</strong> professionals.<br />
Founded in 1913 as the Welfare Workers’ Association (WWA), we went through several name<br />
changes and successful mergers as the nature of the profession changed. As a result, our<br />
membership and standing in the profession continued to grow exponentially, establishing us<br />
as the largest body of personnel and development specialists in the world. On 1 July 2000 we<br />
were granted the Royal Charter recognising our pre-eminence, stability and permanence in the<br />
profession – we became the Chartered Institute of Personnel and Development (<strong>CIPD</strong>).<br />
The <strong>CIPD</strong> is the only <strong>HR</strong> professional institution in the world with ‘Chartered Members’.<br />
Being recognised as a Chartered Member of the <strong>CIPD</strong> means an <strong>HR</strong> professional has met the<br />
gold standards we set for the profession, representing the very best in <strong>HR</strong>. Our membership<br />
continues to grow in significance, with representation across 120 countries, signalling the<br />
importance of professional recognition and showcasing individuals impacting change in<br />
organisations through <strong>HR</strong>.<br />
Bridge: over 20 years in leadership and<br />
strategic change<br />
Bridge has an excellent reputation, being recognised for the quality and innovation of its<br />
work, and for fostering change through the latest leadership thinking. Its core capability<br />
and continued aim is to provide world-class leadership and organisation transformation<br />
programmes that challenge and stimulate lasting change within many of the world’s most<br />
influential and complex organisations, including Pepsi Co, Tesco, Kraft/Cadburys Fonterra,<br />
and The Climate Group.<br />
In 2009, Bridge was acquired by the <strong>CIPD</strong> and is our senior leadership and strategic change<br />
specialist. Bridge continues to breathe new life into organisations through its understanding<br />
of strategy, change and business insights and leads the <strong>CIPD</strong>’s work on the flagship ‘Next<br />
Generation <strong>HR</strong>’ research programme in the UK and Asia.<br />
Bridge has regional offices in London, Singapore and Sydney, with a network of consultants<br />
located throughout Europe, Asia and the Pacific. In addition to English, Bridge has multilingual<br />
consultants speaking: French, German, Spanish, Portuguese, Thai, Japanese, Bahasa,<br />
Mandarin and Cantonese.<br />
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重 要 的 歷 史<br />
英 國 特 許 人 事 和 發 展 協 會 : 涉 足 商 業 發 展 已 近 百 年<br />
英 國 特 許 人 事 和 發 展 協 會 (Chartered Institute of Personnel and Development, 簡 稱 <strong>CIPD</strong>)<br />
領 導 著 <strong>HR</strong> 最 佳 實 踐 的 全 球 標 準 。 我 們 的 目 標 是 透 過 <strong>HR</strong>、 塑 造 思 維 方 式 、 引 領 實 踐 和 培 養<br />
<strong>HR</strong> 能 力 推 動 組 織 的 持 續 績 效 。 我 們 擁 有 超 過 135,000 名 會 員 , 其 中 50,000 多 名 獲 得 了 特<br />
許 , 代 表 著 來 自 全 球 領 先 組 織 的 最 有 影 響 力 的 資 深 <strong>HR</strong> 領 導 者 、 和 新 一 代 <strong>HR</strong> 專 業 人 員 。<br />
我 們 成 立 於 1913 年 , 當 時 名 為 「 福 利 工 作 者 協 會 」(Welfare Workers’ Association, 簡 稱<br />
WWA)。 隨 著 該 職 業 性 質 的 改 變 , 我 們 也 歷 經 幾 次 重 新 命 名 和 成 功 合 併 。 結 果 , 我 們 的 會<br />
員 人 數 和 我 們 在 該 職 業 上 的 地 位 繼 續 快 速 增 長 , 使 我 們 成 為 全 球 人 事 和 發 展 專 家 的 最 大 機<br />
構 。2000 年 7 月 1 日 , 我 們 被 授 予 皇 家 特 許 狀 , 表 彰 我 們 在 該 職 業 的 傑 出 、 穩 定 和 持 久<br />
表 現 。 我 們 成 為 了 特 許 人 事 和 發 展 協 會 (<strong>CIPD</strong>)。<br />
<strong>CIPD</strong> 是 全 球 唯 一 擁 有 ‘ 特 許 會 員 ’ 的 <strong>HR</strong> 專 業 機 構 。 被 認 定 為 <strong>CIPD</strong> 的 「 特 許 會 員 「 意 味<br />
著 <strong>HR</strong> 專 業 人 員 達 到 了 我 們 制 訂 的 該 職 業 金 級 標 準 , 代 表 著 <strong>HR</strong> 領 域 的 最 佳 水 準 。 憑 藉 在<br />
120 個 國 家 的 代 表 , 傳 遞 專 業 認 可 的 重 要 性 , 顯 示 透 過 <strong>HR</strong> 個 人 對 組 織 變 革 的 影 響 , 我 們<br />
的 會 員 在 重 要 性 上 不 斷 提 高 。<br />
Bridge: 超 過 20 年 的 領 導 地 位 和 策 略 變 革 經 驗<br />
Bridge 擁 有 良 好 的 聲 譽 , 在 工 作 的 品 質 和 創 新 以 及 透 過 最 新 的 領 導 思 維 促 進 變 革 方 面 都 廣<br />
受 認 可 。 其 核 心 能 力 和 持 續 目 標 是 提 供 世 界 一 流 的 領 導 地 位 和 組 織 轉 變 計 劃 , 在 眾 多 世 界<br />
最 有 影 響 力 和 最 複 雜 的 組 織 內 引 起 和 刺 激 永 久 變 革 , 包 括 Pepsi Co、Tesco、Kraft/Cadburys<br />
Fonterra 以 及 The Climate Group。<br />
2009 年 ,Bridge 被 <strong>CIPD</strong> 併 購 , 成 為 我 們 資 深 領 導 地 位 和 策 略 變 革 專 家 。Bridge 將 透 過 它<br />
對 策 略 、 變 革 以 及 業 務 洞 察 力 的 理 解 繼 續 為 各 組 織 帶 來 新 的 活 力 , 領 導 <strong>CIPD</strong> 在 英 國 和 亞 洲<br />
的 ‘ 新 一 代 <strong>HR</strong>’ 旗 艦 研 究 計 劃 。<br />
Bridge 在 倫 敦 、 新 加 坡 和 雪 梨 設 有 地 區 辦 事 處 , 擁 有 遍 佈 歐 洲 、 亞 洲 和 太 平 洋 地 區 的 顧 問<br />
網 絡 。 除 了 英 語 ,Bridge 還 擁 有 可 以 講 法 語 、 德 語 、 西 班 牙 語 、 葡 萄 牙 語 、 泰 語 、 日 語 、<br />
巴 哈 薩 語 、 普 通 話 以 及 粵 語 的 多 語 言 顧 問 。<br />
<strong>NEXT</strong> <strong>GENERATION</strong> <strong>HR</strong> 35
<strong>NEXT</strong> GENE<br />
36<br />
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<strong>NEXT</strong><br />
<strong>GENERATION</strong> <strong>HR</strong><br />
ASIA<br />
A <strong>CIPD</strong> company<br />
Head office:<br />
Bridge<br />
5–7 The Avenue Newmarket Suffolk, UK CB8 9AA<br />
Tel: +44 (0)1638 666400 Fax: +44 (0)1638 666402<br />
Email: info@bridge-partnership.com<br />
www.bridge-partnership.com<br />
Chartered Institute of<br />
Personnel and Development<br />
Head office:<br />
Chartered Institute of Personnel and Development<br />
151 The Broadway London SW19 1JQ, UK<br />
Tel: +44 (0)20 8612 6200 Fax: +44 (0)20 8612 6201<br />
Email: cipd@cipd.co.uk<br />
Incorporated by Royal Charter Registered charity no.1079797<br />
www.cipd.co.uk/nextgenasia<br />
Issued: December 2010 Reference: 5348 © Chartered Institute of Personnel and Development 2010