People Focus Spring 04 NA - CIPD

PEOPLE FOCUSChartered Institute of Personnel and Development in IrelandSpring 2004 Volume 2: No 1Pay forPerformanceDATE FOR YOUR DIARY - CIPD ANNUAL CONFERENCEPeople are the Business -Unleashing HR’s Strategic Potential27-29 May; The Radisson, Galwaypeople focus is sponsored by

PEOPLE FOCUSMar 2004 ContentsSurprise! Benchmarking can benefit the country pg 2New National Deal is unlikely pg 5CIPD Approved Courses pg 8Current Trends in Variable Pay: pg 10Getting more bang for your bonus buckSummary of Winning Entries in the National Awards pg 14for Excellence in HRMBishop Puts Breaks on Employment Injunctions pg 18CIPD Strategic Conference pg 20An Intelligent Approach pg 24Managing Organisational Change pg 26National Launch of Programme pg 28Members Evening Meetings pg 30Regions pg 32Profit Building Teams First, Downsize Last pg 36People on the Move pg 40In FocusHR professionals will appreciate that“Benchmarking” requires more serious analysisthan the knee-jerk reaction that has characterisedmuch of the debate to date. While focusing on theinitial cost of benchmarking creates good tabloidcopy, it fails to recognise the strides that have beenmade in public sector pay determination since themilitancy of the mid 90’s threatened our economicprosperity. Now a comprehensive changeprogramme is firmly on the agenda with the real prospect of a more efficient andaccountable public service emerging. In our Analysis Section we examine theimplications of Benchmarking for industrial relations and the economy generally.Also in our Analysis Section we discuss the prospects for another NationalAgreement and argue that the odds of a follow-on deal are shortening all the time.In particular, we consider the likely reaction of private sector unions to public sectorpay rises and conclude that if a seventh national agreement proves impossible thepublic sector will do a deal on their own, based around benchmarking.Many of the articles in this issue concentrate on organisational performance.Weexplore current trends in variable pay, we look at managing organisational changeand discuss why traditional “change management” has failed.We get some practicalexamples of emotional intelligence in action, we have a report on our AnnualStrategic T&D Conference, and we discover how the Bishops may have put the brakeson employment injunctions.And finally …… Ireland to host Major European HR ConferenceCIPD in Ireland has been given the honour of hosting the next European Associationof Personnel Management (EAPM) Conference in May 2005. The theme we havechosen is “The European Workplace of the Future – Flexible and Competitive” and theevent will be held in the Burlington Hotel, Dublin from 11th to 13th May 2005. TheExecutive Board of EAPM recently visited Dublin and are looking forward to nextyear’s event with great anticipation.People Focus is issued by the Chartered Institute ofPersonnel and Development in Ireland.Mention of the CIPD in the text refers to the Institutein Ireland unless otherwise stated.Material printed in People Focus is not necessarilyendorsed by CIPD Ireland.Editorial enquiries to:The Editor, Michael McDonnell, CIPD Ireland,7-8 Upper Mount Street, Dublin 2.Tel: 676 6655 Fax: 676 7229 e-mail: info@cipd.ieDesign-Layout-Advertising:IRN Publishing/Creative Inputs,121-123 Ranelagh, Dublin 6.Tel: 497 2711.Printing: Brunswick Press, DublinEAPM Executive Board meets in Dublin

AnalysisSurprise!Benchmarking can benefit the countryFew public service managers are shoutingabout it from the rooftops, but the fact isthat bar a two-hour protest stoppageinvolving half of Dublin City Council’s binmen, there has been an unprecedentedoutbreak of industrial peace in the publicsector since July last when the benchmarkingdeal kicked in.Though the cost of benchmarking for almost300,000 public servants has been roundlycriticised by business, economists, the media,politicians and even some private sectorunions, few acknowledge the strides that havebeen made in public sector pay determinationsince the militancy of the mid -1990sthreatened the growing economy.A change or modernisation programme fewwould have contemplated even a few years agois now, at the very least, firmly on the agenda.The action plans for each department andsector provide a blueprint for the establishmentof a more efficient public sector while thespecific target dates for the completion of each’action’ means the unions cannot continuallydelay agreement onchange.Certainly, there have been some problems andthe teachers have been at binding arbitration ontwo occasions since they signed the deal,largely down to the overhang of the bitterdispute between the ASTI and the Governmentover the last three years.But this only goes to show how successful thebinding arbitration process has been inconclusively resolving relatively minorproductivity issues which previously would havebeen subject to endless talks, frequentlyinvolving industrial action.The real coup for public service managers frombenchmarking has been the strong link forgedbetween pay increases and productivity. Underthe deal, all pay increases under SustainingProgress (7%) and 75% of the benchmarkingpayments (6.75%), are directly dependent onachieving the set productivity targets.Performance verification groups for each sectorhave to report back one month before the duepayment date with a type of check-off list ofthose productivity measures agreed orsufficiently progressed to warrantpayment. While the inner machinationsof public service pay negotiationshave always been baffling, thisfairly open and transparentverification process is reallyquite simple.Hanging over theExchequer’s door is themotto; ‘Change: NoWay; No Pay’.The fact that eitherparty can go tobinding arbitration inthe event of a disputeover the change orwhether payment iswarranted or not, nailsthis process down so tight that it is reallyimpossible to see it coming unstuck.Another benefit that has been overlooked isthat though the benchmarking body officially“recommends” pay increases, there can be norenegotiation or clarifications sought by theunions which in the past pushed up suchsettlements. When the benchmarking bodyissued its report in 2002, it dissolved into themist saying that it would not explain or clarifyany of its findings.While any one union or group can reject therecommendation, the reality is that with allpublic sector groups signed up forbenchmarking, a rejection is fairly futile andwould simply be one union laying down amarker or, as is frequently the case, lookinghard-line to placate its more militant members.Even before the benchmarking body producedits report, some of the militant public serviceunions were aghast to be told by the ICTUpublic services committee that having signedup for the PPF, which establishedbenchmarking, they had accepted the report’soutcome in advance. This was like a red rag toa bull and essentially meant that they hadaccepted a binding pay process.Though such unions huffed and puffed,remarkably, they eventually accepted it and thereality is now that benchmarking is binding. Nomatter how unfair a group feel they weretreated, there can be no going back to the well.The fact that the prevailing opinion of the mainpublic sector unions won out quite easily in theend showed that the unions themselves werekeen to sign on to a pay determination processthat effectively bound them to accept theoutcome. Some of the more militant publicservice unions were told that they couldn’t evenvote on benchmarking or that a vote wasmeaningless as they had already backed it byvoting in PPF. While unions did vote in the endpg2 Autumn 2004

Analysisthis was tied into the new national pay deal -Sustaining Progress. In any case only onemajor union - the CPSU representing theclerical civil servants - voted against as well asother smaller unions such as the doctors union(the IMO) and third level teachers representedby IFUT. (IFUT was later even persuaded to dropits High Court challenge to the benchmarkingaward of just 3% to its university teachers).Compared to the almost anarchic situationthat existed in the mid to late 1990s, thecomplete turnaround in such a short spaceof time on such a critical issue as publicservice pay, has been dramatic.Who would have believed in the midst of thenurses pay strike in 1999 as the INO pushedfor an increase in excess of 20% with noproductivity conceded that just five yearslater they would accept an 8% increase, signup for a comprehensive change programmeand accept binding arbitration.Management’s real problems with the publicservice has been not just the high price ofspecial pay awards. Much more frustratinghas been that thesegenerous pay dealsfailed to produce anyreal change in return.Unions continuallyresisted the mostminor of productivitychanges even afterthey received the payincreases or, as wasfrequently the case,sought furtherincreases for changethat was part of theoriginal pay deal.This was very evidentin the last round ofspecial pay deals inthe mid to late 1990snegotiated under thePCW restructuring clause. These deals weredesigned to introduce pay for change in thepublic service. But because they were draggedout for so long involving bitter disputes withnurses and Gardai in particular and theneverybody else who felt short changed bysettling early, the change items were almostcompletely forgotten.Nurses eventually secured a 25% increaseunder the PCW restructuring clause afterfrequent visits to the Labour Court, the LRC,Ministerial intervention and a nine-day strike.But it is hard to identify any one productivityitem they conceded for this huge increase.Yet they received one-third of that underbenchmarking without any dispute or thirdparty intervention and still agreed to accept adetailed list of change as well as keeping thepeace for the next few years.The Gardai finally got 16% from the PCWrestructuring clause after engaging in their ‘bluflu’ action yet still had to be forced to co-operatewith the introduction of new computerisedsystem (PULSE) while other productivity itemssuch as co-operation with new rosters werequietly dropped.Again, they have accepted a 5%increase under benchmarking and an extremelydetailed change agenda including co-operationwith new legislation.The prison officers are probably the bestexample of how public service pay has movedforward in the last five years. In 1998, underthe PCW restructuring deal prison officers got upto 13%. One of the productivity items in that dealwas their agreement to sit down and negotiateways and means to eradicate overtime. After sixfruitless years of stop-start negotiations duringwhich the overtime bill rose ever higher, theprison service has been able to usebenchmarking, which gave prison officers just a4% increase, to force home a deal on annualisedhours and halve the €60m overtime bill.The many opponents of benchmarking pointout that €1.1 billion is a very high price topay for industrial peace, particularly when theeconomy is running into difficulties with joblosses running at levels not seen since the1980s.They claim that the modernisation agendaagreed in return for an average increase of 9% -paid on top of the 7% for all the private sectorworkers - is a bit soft and nowhere near the typeof hard-edged efficiencies private sector workershave to endure for less than half the money.That is a legitimate view but what was the firststep in a bold experiment on public service paywas always going to be pitched in way to lurethe powerful public sector unions into the fold.Now they are in and bar a few grumblingsbenchmarking would appear to be here to stay.Thenext benchmarking review process will proceedwhen the current deal runs out in June 2005.Though it is hard to predict, it is likely that thenext benchmarking deal will not be as generousas the current one and the modernisationagenda will be a little more hard edged.pg4 Autumn 2004

PayNew National Dealis unlikelyThe prospects of unions and employers reachinga deal on the pay terms of the second-half ofSustaining Progress in the next few months aregetting higher, but the odds for another nationaldeal to follow are getting equally shorter.With inflation now falling to 2%, employers are in agood position to hold out for a deal below the 7%conceded in the first 18 months of SP or around4% per year.While the economy is undoubtedly struggling outof the dip it has been in for the last couple ofyears, jobs are still being lost at a rate not seensince the 1980s - almost 28,000 last year andFAS predicts an increase in the averageunemployment rate.Though most predictions are for a solid yearahead economists are warning us that we willnever again hit the double-digit growth of themid-1990s. No more deals then ahead ofinflation or almost double that of ourneighbours. We will still have to work hard tomaintain growth levels on a par with our EUneighbours.Employers have already pointed out that wehave fallen seven places to 30th in the WorldEconomic Forum’s Growth Competitive Index.Last year, according to IBEC, of the 26,000 newjobs created between January and September,20,000 were in the public sector. Productivityneeds to be lifted across all sectors, it said, andmore investment in infrastructure is required.The Small Firms Association said that wagemoderation is urgently required now and wecannot sustain wage increases over twice theEurozone average. While the SFA admitted thatwage increases in Ireland have moderated inthe last couple of years - down from 9% in2001 to 6% in 2002 and 5% in 2003 - itwarned that we need to continue thatdownward thrust in order to compete effectivelypg5 Autumn 2004

Payor else run the risk of even heavier jobs lossesin 2004.The competitive threat is, if anything, morepronounced with ten East European statesset to join the EU this May. While we havebeen used to the threats posed by countrieswith cheaper labour, up until earlier this yearthis has mainly been to low value productionjobs in the high risk sectors such as textiles.When a major multinational moved its operationabroad, after a set period of finger pointing andthe establishment of task forces, we alwaysroused ourselves by saying that as a developedeconomy we should not be relying on such lowgrade jobs, but should instead be attracting in’value added’ jobs higher up the chain.The beliefwas we should work even harder at producing ahighly educated workforce against which thecheaper countries could not compete.That particular panacea was ripped apartearlier this year when Phillips closed down itsaccounting division in Dublin with the loss of150 jobs and transferred it to Poland where itcould get the same work done for half theprice.Now even the professional jobs are underthreat and this has not escaped the unions.Though they may shout about it, even bringing thetalks to the almost ritualistic 11th hourbreakdown, now may not be the best time to bringdown a deal - certainly not for just 18 months.There is even an argument among some of thelarger pro-partnership unions that SustainingProgress was agreed as a three-year deal andcannot be broken mid-term, though theburgeoning anti-partnership unions would notback this view. If the main unions regard this asa mid-term review with the not insignificant taskof agreeing pay increases for the remaining 18months of the deal, the pay terms will still haveto be put to a vote of all ICTU unions. Despitethe emphasis put on the social and economicagenda in these national pay deals, the realityis that it is the pay deal that lies at the heart ofit and if that falls the whole deal will comeunstuck. The vote then gives the antipartnershipunions a chance to bring down thedeal but they are unlikely to bring partnershipdown now.But there is every indication that an ever morepowerful private sector union group withinICTU - including Mandate, Amicus-MSF,ATGWU, IBOA and perhaps the TEEU - aresetting their sights on preventing what wouldbe a seventh three-year partnership deal tofollow Sustaining Progress next year.While ICTU are at pains to gloss over anydivisions between its powerful public sectorunions and the increasingly vocal private sectorunions, the fact is that the gulf between the twohas been widened by benchmarking.Private sector unions feel that nationalpartnership agreements do not really serveprivate sector workers interests and that theyare really only tagged on to the deals to givecredibility to what is essentially a public sectorpay agreement which allows for pay specials.

PayPublic sector unions have always beeninstrumental in getting national pay dealsthrough ICTU and while public sector workersconstitute just over 16% of the workforce,they represent almost half the unionisedworkforce in ICTU.But private sector unions feel that this is the tail- albeit a powerful tail - wagging the dog andthis was made all the more obvious underSustaining Progress when it includedbenchmarking for public servants.Under the same national agreement, privatesector workers got 7% while public sectorworkers got an average of 16%, with some suchas teachers, who were engaged in a three yearpay dispute with the Government, getting 20% -almost three times as much as private sectorworkers who broadly did not engage in industrialaction. To add salt to the wounds, job losses inthe private sector are increasing while theGovernment continues to hire more publicsector workers. Add in what is an effectivepermanent job and very generous pension termsand it is easy to see how private sector workersfeel they got the raw end of the deal.Even deeper murmurings suggest that the €1.1billion cost of benchmarking has been at theexpense of private sector workers in that theGovernment can no longer afford to concede taxbreaks to boost moderate pay increases. Withpublic sector pay now taking up half of theGovernment’s day to day spending, this leavesless for public services which private sectorworkers use. Bin, water and hospital chargeshave all risen substantially in the last few yearsand private sector workers feel that they arebeing asked to pay for the generous payincreases to their public sector colleagues.While there is no real evidence that privatesector unions could do any better outside ofnational pay deals, the increasingly heldbelief is that they could not possibly do anyworse. Overall, they believe the benefits of afree-for-all would outweigh the disadvantagesin that they would no longer have therestrictions imposed by centrally negotiatedpay deals, particularly the peace/bindingarbitration clause which was actually includedin SP to keep the public sector unions in check,not the private sector unions.The formation of a private sector committee inICTU to counterbalance the power of thepublic sector committee, was the first signthat the private sector unions are starting tomobilise. They are unlikely to challenge theupcoming talks on the pay terms of the secondhalfof SP, but another national pay deal is adifferent matter.It is very likely that if a seventh national paydeal proves impossible, then the public sectorwill do a deal on their own, grouped aroundanother benchmarking deal, which is already onthe agenda for the pay talks.But if the private sector unions do revolt, onecan expect Trojan efforts by ICTU to avoid whatwould be tantamount to a split which wouldsignificantly undermine ICTU’s position on thenational stage.

Chartered StatusCONGRATULATIONSTo the following new Chartered Fellows and Memberswho have successfully achieved upgrades in the lastfew months:NEW CHARTERED FELLOWSMr M. Brabazon Irish Life Assurance PLCMr G.A. BrettBausch & Lomb IrelandMs M.C. Byrne Human Resources ConsultantMiss M. ConwayEirgridMs R. D’Alton HR Leader Europe and AsiaMs M. DalyManagement ConsultantMs M.M. Davern Irish League of Credit UnionsMs A. Dolan Abbott Vascular Devices IrelandDr A. Dundon National University of IrelandMr D.J. FentonSouthern Health BoardMr J.G. GeraghtyManaging PartnerMr F. KellyDublin CorporationMrs T. Kenny Burtenshaw Kenny AssociatesMs M. Lynch Hewlett-Packard Galway LtdMr J.W Madden John Madden & AssociatesMr W.P Madden Merck Sharpe & DohmeMs A.A. McConnellISS IrelandMs R.J McKenzie University College DublinMiss S.I. McNinchRehabcareMrs C. Mitchell Biological Laboratories EuropeMr D. MoloneyPrincipleMr B. O’BrienSouthern Health BoardMr C. O’Flaithimhin Udaras Na GaeltachtaMs M. O’SullivanParthus TechnologiesMr M.G. Owens Voluntary Health Insurance BoardMs M. QuinnNUI GalwayMiss D.M. Rigby Irish Life Investment ManagersMr E. Ryan Limerick City Enterprise BoardMiss A. TaylorTrinity CollegeMr D.M. WrightNetwork HouseMs L. Crowley Schering-Plough (Brinny) CoMiss T. CunninghamFujitsu Services LtdMr B. Delaney Dublin 14Mrs M. DevaneMedtronicMs M. DevineESBMs G. Dolan Canada Life Ass. (Ireland) LtdMrs D. DorneyEnable IrelandMrs C. Downey Janssen Pharmaceutical LtdMrs E.M. DriscollCounty CorkMr W. DuffyAER RiantaMiss C. FennellBrennans Yard HotelMr J.J. FfrenchLifetime AssuranceMs J. FinlayNETG IrelandMs M. FitzpatrickLimerickMr J. FoleyD. O’Sullivan & Co (Cork) LtdMs D. FoyleCounty GalwayMrs B. GraceBrothers of Charity ServiceMs P.P. Grant Bankgesellschaft Berlin (Ireland)Mr S. GrayESBMiss C. GubbinsUniversity of LimerickMr W. HallidenEircomMs A. HeffernanCounty ClareMs M.M. Heffernan Centre for Innovation & StructureMrs A. KeenanClery & Co (1941) PlcMiss B. Kenna Food Safety Authority of IrelandMiss S. KennedyFKM GroupMs A. King Group Training & Development OfficerMrs T. KingGalway AssociationMs J. KinnaneKinharr SolutionsMiss B.C. Kissane IVEX Pharmaceuticals LtdMs C.P. Leonard Abbot Vascular Devices IrelandMr M. Louge Decare Delta Systems IrelandCIPD UPGRADE CELEBRATIONMs G. MaglioccoMiss D. McBrideMs C. MoranMiss L. MulvihillMiss E.R. MurphyMr J.D. MurphyMs H. MurrayMrs R. MylettMs P. NolanMs O. O’ConnorMs R. O’DonovanMs J. O’DowdMrs C. O’FlahertyMs J. O’HaraMs C.O’LearyMs B. O’MaraMiss B. O’NeillMrs G. O’RourkeMr D.F. O’SheaMr G. OwensMiss C. QuigleyMrs R. ReillyMs J. RyanMr S. SandsMrs C. ScanlonMrs T.A. SlatteryMr F.R.T. StaffordMs M. Tierney-SmithMr M.J. WalshMs J. WhelanMs Y. WhiteBrothers & Charity ServiceHalifax DirectBarings (Ireland) LtdUCDTransitions Optical LtdAllied Irish Bank PlcRoyal & Sun AllianceBaxter HealthcareGalwayMolex Ireland LtdCo DublinRTCO Health CareWestside Rescue CentreManpower Skills GroupCo DublinAmerican Power ConversionPJ Carroll & Co LtdUnited DrugWestern Health BoardEagle StarMarine InstituteMednova LtdClarion HotelTesco Park Shopping CentreGerry ScanlonIntel CommunicationsTelecom EireannBoston ScientificGalway County CouncilGraphite HRMDepartment of TaoiseachNEW CHARTERED MEMBERSMr M. BeirneRadisson SAS HotelMs D. BodleyThe Gunne GroupMs P. BrennanWestern Care AssociationMs N.E. ByrneGandon Enterprises LtdMr D. CahillShannon MROMs C. CarrollThe Sweeney GroupMrs D.A. Casey-Crowley Southern Health BoardMiss G. ChambersRadisson SAS HotelMs E. ClarkeHavokMs M. ClearyBUPA IrelandMrs S. ConacurMallinckrodtMr S.A. ConnaughtonEASI SkillsMrs P. ConnollyWHBMiss C. ConroyT.M BlindsMr G.D. CowhigEMC IrelandPhotographed above is the group of members of the Western Region who successfully upgraded CIPDmembership recently. The event was held in the Ardilaun Hotel, Galway on 3rd February. An individuallyframed photograph sponsored by John Madden & Associates will be presented to each member.pg8 Autumn 2004

Chartered StatusWITH THANKSDear BarryI heard in the past few weeks that I had been successful in my applicationto upgrade and now hold the esteemed title of Chartered Fellow.I wish to extend my heartfelt thanks to you for your sound and verypractical advice on how to negotiate this trick terrain. I am forever in your debtand I would be grateful if you could pass on my thanks to Alastair Killen also.Hoping to meet with you on the circuit somewhere soon.Kind RegardsFrank KellySOUTHERN REGIONUPGRADING CEREMONYThe Southern Region’s new Chartered Fellows and Members wereguests at an awards ceremony in Heineken Ireland to celebratetheir achievements. As a record of the event, individually framedphotographs were kindly sponsored by Mike Cushen of theManpower Skills Group.The large attendance included Michael McDonnell, Director CIPDIreland, Pat Lunny, Chairman CIPD Ireland and Barry Hill,Regional Development Officer CIPD.Dear AlastairI wish to thank both yourself and Barry for all your help and supportduring the upgrade process for the CIPD. I am delighted that I have justreceived an upgrade to Fellow. To achieve Chartered Fellowship has been agoal of mine for some time and I truly appreciate the help I receives fromyou in making this happen.Wishing you every happiness and success in the New Year.Yours sincerely,Carmel MitchellDear Alastair,I hope that you had a lovely and peaceful Christmas and a nice new year.Just a quick note to thank you both very sincerely for the time, effort andpatience you afforded me assisting my upgrade to Chartered Member of theCIPD. All that is left for me to say is a heartfelt gratitude for all support.Photographed (L to R): Seamus O’Leary, Mary McAdams,Chairman CIPD Ireland Southern Region, Sarah Moore, MichaelMcDonnell, Director CIPD Ireland, Frank Fitzgibbon, Pat Lunny,Chairman CIPD ireland, Rosarii Harrington, Barry Hill, RegionalDevelopment Officer CIPD Ireland, Michael Mulhall, AngelaCrowley, Mary Ann McDonagh, Denis Weir and Judith Foley.Kind Regards,Francis O’SheaHi Barry,I’d like to thank you for your help in guiding me through the CIPD Upgradeprocess. The upgrade provided the incentive I needed to prepare myapplication to upgrade to CIPD Chartered Fellow status, some have beenmeaning to do for years. The process is quite straightforward and I found agood opportunity to reflect on my career to date and think about where I mightbe heading next. As busy HR professionals, we often don’t make time forourselves. With a bit of effort and guidance, I am very pleased with thesuccessful outcome. I’d encourage all HR professionals to take advantage ofthe clinics and avail of professional recognition that CID membership at theappropriate level can bring. Thanks again.RegardsMaureen LynchPhotographed (L to R): Mary McAdams, Chairman CIPD SouthernRegion, Michael McDonnell, Director CIPD ireland, Pat Lunny,Chairman CIPD Ireland, and Barry Hill, Regional DevelopmentOfficer CIPD Ireland.pg9 Autumn 2004

Pay TrendsCurrent Trends in Variable Pay:Getting more bang for your bonus buckJohn Treacy from WatsonWyatt outlines some ofthe practical steps thatemployers have beentaking in recent times toimprove the link betweentheir bonus spend andtarget performance.In our previous article on the subject of rewardtrends we discussed how employers have beenincreasingly reviewing the efficiency, effectivenessand overall value of their pay costs, particularlysince the end of the economic boom. In thisperiod, record revenue and profit growth drove awar for talent and it was no surprise that manypay system design inefficiencies were overlooked.Now companies are tightening up these rewardsystems to ensure that total reward costs will bemore aligned with the business and grow with theprofitable growth of company.One of the main areas under the microscope hasbeen variable pay, i.e. performance basedbonuses and incentives that are not guaranteed.How can greater value be created from thissignificant and growing slice of the payroll bill?GENERAL BONUS SCHEMESOne of the striking developments in rewardstrategy in Ireland over the past 5-10 years hasbeen the increasing penetration of variable payright through the organisation (see Figure 1).Variable pay eligibility has not only increased overtime, but the underlying drivers of these payoutshave evolved; less and less discretionarybonuses are being paid out and more ofthis pay is being linked to performancegoals and being paid outaccording to bettermetrics (seeFigure 2).Managers cite many reasons for this growth,including the need to keep pay packagesattractive by adding variable pay while, at thesame time, keeping spiralling base pay inflationunder control. However, one of the legacies ofthe boom time is that bonus pay is nowaccepted as the norm and employers arereviewing how they can extract more value,particularly if the original scheme designs do notreflect the needs and realities of current costand business conditions. Two practical initiativesemployers have been taking in this respect are:❚❚Sharpening the bonus design mechanics,both in terms of how the pool is financed andhow it is distributed, to better allocate payoutsto those teams and individuals that aredriving performance. Even small percentageimprovements in these areas have yieldedsignificant savings and value-creation, i.e.better ‘returns on payroll investment’.Clarifying and separating the drivers of highbonus pay versus high base pay progression,e.g. performance versus personaldevelopment. Basically, employersare now eager to stoppaying twice for thesame behaviours andactivities.The first step to improving the effectiveness ofa variable pay system is to complete ahealthcheck of the existing arrangements.Senior managers are using interviews, surveys,focus groups and financial analysis to identifythe shortcomings of their company plans andanswer the following questions:1. Accountability: Does our variable/bonuspay plan promote and reward the rightbalance of individual/team accountabilitythat our clients demand?2. Alignment: Is there real alignmentbetween these pay plans and ourcompany's strategies and organisationalpriorities?3. Consistency: Are our pay decisions andmessages consistent with other messageswe send to our employees? Arewe sure that ourpg10 Autumn 2004

Pay Trendsbonus cheques never contradict whatwe are asking our employees to do or howwe expect them to behave?4. Differentiation: Does our variable pay plandifferentiate payouts effectively betweentarget and unacceptable performance, e.g.waste versus cost savings, sales farmingversus hunting, management policingversus coaching, living or contradicting ourcorporate values, etc.? Are we sure that ourbonus cheques never lie about whodelivered desirable performance?5. Measurability: Can we and do weconsistently and effectively measure andreport the measures that drive this pay?6. Line-of-sight: Do the people receiving thisvariable pay really understand the causeand effect between their performance andthe resulting pay?7. Line-of-Impact: Can the plan participantsimpact their results and do they perceivethat they can do so?8. Competitive: Does this pay element helpus pay competitively based on desired paypositioning, e.g. 75th percentile?9. Simplicity: Is the plan simple tounderstand and administer?10. Meaningful: Is the target payoutconsidered to be valuable and meaningful?Effective variable pay plans get positive answersto the questions above. Not every organisationcan answer ‘yes’ to each question but the nextstep is to identify practical plan changes that willturn any negative answers into the positive.SALES FORCE VARIABLE PAYIMPROVEMENTS:QUICK WINS FOR HR AND SALES MANAGERSThe area of sales force pay is more dynamic andmanagers in this arena are constantly trying toimprove the effectiveness of their variable paypools. We have identified five common pay planchanges that HR and Sales managers areimplementing to improve their sales variable payplan effectiveness:1. Deliver a meaningful pay mix: increase thepercentage of pay at risk, i.e. incentive andbonuses as a percentage of total on-targetpay, to link more meaningful amounts of thetarget pay package to strategic salesperformance and action items. More andmore firms are freezing base pay increasesand transferring these funds into the variablepay pool, if need be.2. Deliver a ‘competitive trade-off’: whereprudent, remove any bonus caps thatencourage sales order management and‘sand-bagging’, on the basis that youintroduce performance thresholds or caveatsbelow which no bonus will be earned.Employees generally dislike the introductionof thresholds as they increase the risk of azero payout. However, these thresholdsenable them to constructively push back onthose impossible sales goals that they feeltheir managers set for them again and again.3. Reward more frequently: get moreconversations taking place about the pay andperformance situation by ensuring that the

Pay Trendstiming of your bonus payouts are aligned withthe sales cycle that the employee or his/herteam are managing. Avoid wasting money ona performance bonus that is widelyconsidered to be a ‘13th month paychequethat everyone always earns’.4. Reward over-achievement: link more pay toindividual performance to encourage moreownership of the sales performance goalsand to enable more leveraged payouts foryour over-achievers. Avoid diluting the upsidewith MBO/KPI bonuses that rarely vary, orteam bonuses that employees perceive theycannot impact. You can still reward andrecognise a team effort through a bonusmodifier linked to the team/company salesgoal.5. Convert any sales ‘blockers’: ensure thatvariable pay is available to all the employeesthat touch the account and the salesprocess; sales growth can mean more pay forthe reps but simply represents a newheadache for sales support if they do notshare in the incentive. From acompetitiveness standpoint, could youpossibly get the best game from your goalkeeperor your full-back if you didn’t sharewith them the score of the game? Whatwould the score be if you only paid your pointscorers?Companies are now reviewing the variableelements of their total pay systems to make surethat, at a minimum, this portion of payroll costswill grow in line with the business. Accordingly,companies are ensuring that these variable payplans really communicate and truly reward thenew performance, events and activities that willdrive profitable growth in this new marketplace.Profitable growth is still available in anyeconomic environment through cost savings,smarter selling, organisational change, businessinnovation and better employee commitment.Your existing variable pay arrangements areeither motivating or de-motivating suchinitiatives. Now is a good time to start findingthe answers to the ten questions above.For more information on the trends, approachesand questions outlined in this article pleasecontact John Treacy at 01.6616448 or by emailto john.treacy@eu.watsonwyatt.comVariable or Bonus Pay plans are continuing to emerge in Ireland for several reasons ranging from management’s desire to motivate employee engagementby sharing the upside opportunity of business results, to the finance department’s desire to share the business risk and downside with the same employees.Research undertaken by Watson Wyatt with top-performing employeeshas demonstrated that dissatisfaction with pay is the key reason for topemployees parting company with their employers (Strategic RewardsSurvey 2002/2003). Results of the survey also provide insight into thereward practices that are most effective in attracting, retaining andmotivating the employees critical for restoring and maintainingcompetitiveness. Both short and long-term bonus/incentive plans featureprominently in the top-performers wish lists. Crucially, top-performersnote the necessity for organisation’s to differentiate pay effectivelybetween top-performing and average employees. Interestingly, the surveydemonstrates that less than 40% of top-performing employees say thattop performers at their companies receive moderately or significantlybetter pay rises, bonuses or total pay than their co-employees withaverage performance. Clearly, there is room for employers to leveragetheir reward costs to drive increased ‘returns on payroll investment’.90%80%70%60%50%40%Percentage of employees eligible toreceive performance bonuses 1998-20021998 2000 2002Senior Management74% - 85%Middle Management68% - 79%Employees49% - 67%Source: Watson Wyatt General Industry Compairson Reports: IRELAND1998-2002Figure 1% of Bonus Plans That Are Linked to Performance/Formula -(i.e. Not Discretionary)100%95%Figure 290%85%80%75%Middle ManagementEmployees70%1998 2000 2001 2002pg12 Autumn 2004

National Awards for ExcellenceSummary of Winning Entries in theNational Awards for Excellence inHuman Resource Managementreorganisation project; AbbottIreland whose Ballytivnan plantwon its award for a LifelongLearning programme andHibernian Life and Pensionswhose entry described a culturechange programme. Theseawards were sponsored byArthur Cox, Solicitors; FASExcellence Through People andCPL Resources respectively.general defect. AIB have spent some yearsdeveloping and improving their staff opinionsurveys but have also used them to devise apowerful tool which is now an integral part oftheir strategic management decision makingstructures. Using the information gathered fromthe staff opinion surveys they have created anIndex which assesses the impact on staff of arange of management practices and behaviours.The Watson Wyatt Supreme Award winner! Grace Perrott of AIBholds the Supreme Award in the company of Pat Lunny, ChairmanCIPDI; Kevin Empey, Watson Wyatt; Paul Donovan, Vodafone;Michael McDonnell, CIPDI and Rachel Armstrong of IndependentNewspapers, who were the media partners for the Awards.The CIPD presented a SpecialAchievement Award to the FlourConfectioners and BakersAssociation for their work indeveloping a Skillnet project.The CIPD/Watson Wyatt Awards for Excellencein Human Resource Management werepresented at a Gala Awards Dinner in theGuinness Storehouse, Dublin on November11th, 2003. The Awards were made after anexhaustive judging process which commencedin March 2003 with invitations to submitentries. The final date for entries wasAugust 24th, 2003 and a total of 50entries were received.This total was shortlisted down to 15finalists, all of whom were invited to theAwards Dinner. The identity of the Awardwinners was kept secret until theirannouncement at the Dinner. TheSupreme Award, sponsored by WatsonWyatt, was presented to AIB Bank fortheir Employee Survey and the use theyhave made of it in developing the PeopleFocus Index.There were three Special Merit Awardwinners. They were The Civil Service andLocal Appointments Commissionerswhose entry dealt with a downsizing andIn commenting on the Awards Mr. PaulDonovan, C.E.O. of Vodafone who chaired thejudging panel, said that in general the entrieslacked a credible measurement of theeffectiveness of the HR function as an “adder ofvalue”. The supreme award winning entry fromAIB was an honourable exception to thisPictured at the Awards were Pat Lunny of Greencore Group plc(Chairman of the CIPD Ireland); Paul Donovan, Chief ExecutiveOfficer of Vodafone who chaired the panel of judges for theAwards; Brenda Morris and Kevin Empey of Watson Wyatt,principal sponsors of the Awards; Michael McDonnell, Director ofCIPD; Frank Brennan, Awards Co-ordinator for CIPD and SarahReynolds, Awards Administrator, CIPD.John McAteer is pictured receiving the FASSpecial Merit Award from Patricia Curtin of FASand Paul Donovan of Vodafone.This People Focus Index provides HR and linemanagement with information enablingthem to target remedial work and support,thus influencing, in a positive way, thediscretionary behaviour of employees. TheIndex has become a strategic tool whichinforms decision-making throughout theAIB Group and places people managementissues at the heart of the business. Thejudges were impressed with the constantsearch for ways of improving anddeveloping the survey process and thecompany’s willingness to benchmark itagainst best international practice.The entry from the Civil Service andLocal Appointments Commissionersdealt with a downsizing and reorganisationproject with theCommission’s staff. Faced with the usualpg14 Autumn 2004

National Awards for ExcellencePaul Donovan of Vodafone and Pat Lunny, CIPDI Chairmanpresent the CIPDI Special Achievement Award to Patrick Garveyof the Flour Confectioners and Bakers Association.Public Service constraints of centrally controlled,inflexible pay and rewards structures theCommissioners found themselves with areduced budget and therefore the need todownsize. The management set out to ensurethat those who left the organisation would do sowith a feeling of goodwill towards their formeremployer, that they would be uniquely preparedto identify new career paths and that they wouldhave the skills and competencies to succeed inthose careers. In addition, the managementwished to ensure that the retained staff wouldfeel equally valued with a consequentcommitment to meet the increasing demandsplaced on them. In solving the problem with acombination of personal development and careerplacement initiatives theCommissioners showed aninnovative and very peoplecentredapproach whichcommended itself to the judgingpanel.The second Special Merit Awardwent to Abbott Ireland’sBallytivnan plant. Through aseries of initiatives based on theprinciples of Lifelong Learningthey use the untapped potentialof their workforce to movetogether up the value chaincreating the opportunity for newinvestment and increasedemployment.The core of the company’sstrategy is to give each employeethe chance to create and owntheir own personal developmentprogramme. This demonstratedto the parent corporation thatIreland’s workforce is highlyeducated, flexible andresponsive to change resulting infurther multi-million dollarinvestment and 200 new jobs.Furthermore, in 2002 theBallytivnan plant was awardedthe title of Premier Large Manufacturing Plant inAbbott’s International Division, coming top of40 plants worldwide and justifying the successof the focus on learning and development.Hibernian Life and Pensions were the winners ofthe third Special Merit Award. In the view of thejudges they had recognised the existence of amultiplicity of problems, determined to learn fromthem and developed a new and unique culture.Their unpromising starting point was a merger ofthree companies with widely different cultures anda customer perception of poor customer service.The staff and management of Hibernian workedtogether to create a new and unique culture thathas resulted in remarkable improvements in theirPresenting the CPL Special Merit Award to Alastair McMenaminof Hibernian Life and Pensions are Paul Donovan of Vodafoneand Paul Carroll of CPL Resources plc.

National Awards for Excellencecustomer perception and business success. Thefactor which particularly impressed the judgeswas the deep involvement and commitment ofsenior management and the clear sense of funwhich ran through the change process.The CIPD Special Achievement Award went tothe Flour Confectioners and BakersAssociation for their Skillnet. The judges felt itwas a uniquely meritorious project, based onthe Small Business Sector. The Awardrecognised the foresight of a small group ofpeople who identified the potential demise of asmall business sector due to the effect ofimports, competition from retailing multiplesand the problem of retaining key staff. TheSkillnet has delivered training and developmentactivity to hundreds of small businessesscattered all over Ireland, organised andimplemented innovative competencyassessment for employees who do not have atradition of familiarity with “exams” and createdcareer structures and an enthusiasm for trainingwhere it did not exist before.The judges believedthat it created a valuable template for othersmall business sectors.Paul Donovan of Vodafone and PatLunny, CIPD Chairman present the CIPDSpecial Achievement Award to PatrickGarvey of the Flour Confectioners andBakers Association.Among the attendance at the Dinnerwere Brid O’Brien of Meteor MobileCommunications; Ger O’Dowd, HRConsultant; Ann Kelleher and AveenBatt, both of Bank of Ireland. Bridand Ger are also members of theCIPD National Committee.Two members of the distinguished judgingpanel – Breege O’Donoghue of Primark andDr. Mary Redmond of Arthur Cox, Solicitors.Pictured at the reception priorto the Awards Dinner wereAdrian Hegarty and JohnO’Dwyer of Friends First whowere finalists in the Awards.pg16 Autumn 2004Talking to Frank Brennan of CIPD were Dr. Michael O’Sullivanand Fergus O’Brien of finalists GlaxoSmithKline.

Employment LawBISHOPS PUT BRAKES ONEMPLOYMENT INJUNCTIONSINTRODUCTIONOver the last 10 years or so the High Courthas issued a string of injunctions prohibitingemployers from effectively terminating theemployment of individuals. The effect of suchinjunctions can be quite dramatic, withemployers being ordered to continue payingemployees pending the hearing of thoseemployees’ wrongful dismissal claims. Suchan order can mean that an employer finds itselfpaying out salary to an employee who is not infact working for a period of up to two years.Even though the employee will usually berequired to undertake to the court that he or shewill repay the monies in question to the employerif the wrongful dismissal claim is ultimatelyunsuccessful, most employers will seek to settlethose claims. The alternative is to run the risk ofpaying the employee for 12, 18 or even 24months and then find that the employee cannotrepay the sum involved. However, in Sheehy vRyan and Moriarty (unreported, High Court,Carroll J, 3 February 2004), such a case didreach a final hearing. The outcome of thathearing will hearten employers and may havethe effect of making some employees thinktwice before they apply forinjunctive relief.FACTS OF THE CASEThe plaintiff, Mary Sheehy, was asenior administrator at CarlowRegional Technical Collegeuntil July 1974. She left the RTCin order to take up the positionof secretary to Bishop Lennonof the Diocese of Kildare andLeighlin. She was not providedwith a written contract ofemployment.In 1987 Bishop Lennon retired.He was succeeded by BishopRyan. At around that time theplaintiff asked Bishop Lennon todocument the terms of heremployment because there wasno written record of them.Bishop Lennon did so in aletter. However the letter did not clarify theplaintiff’s pension entitlements. Rather, itsimply stated that provision was to be made forthem.In March 2001 Bishop Ryan had two meetingswith the plaintiff in relation to her salary andpension. The question of her pension was notresolved at those meetings. Towards the end ofthat month Bishop Ryan became ill and handedover the responsibility for the negotiations to aMr Dooley. The plaintiff was unwilling to meetMr Dooley and did not do so even after heagreed to her request that Bishop Ryan pay for asolicitor to advise her in relation to the matter.In January 2002 the plaintiff was offered aseverance package. Her solicitor replied in April2002 to say that she was not willing to acceptthe package on offer and that she wanted tokeep her job until she was 65. Two monthslater Bishop Ryan resigned. He was succeededby Bishop Moriarty in August 2002.Prior to the appointment of Bishop Moriarty, theplaintiff was given notice of redundancy by BishopRyan. She refused to accept the notice inquestion and instead applied for and obtained aninterlocutory injunction requiring the Dioceses tocontinue to pay her salary and fund her pensionpending the outcome of a full hearing.THE JUDGMENT OFMS JUSTICE CARROLLThe plaintiff maintained that she was the holder ofa “permanent and pensionable” position. Shewas of the opinion that she should continue tohold that position until she reached the age of 65subject to her discharging her duties in asatisfactory manner and without misconductingherself. She added that she would never have lefther job at Carlow RTC, which was also permanentand pensionable, had that not been the case.Ms Justice Carroll accepted that the plaintiff hadindeed been offered a permanent andpensionable job by Bishop Lennon. However, thejudge did not have the same understanding ofthe meaning of that term as the plaintiff. Havingexamined a number of previous decisions onsuch matters, Ms Justice Carroll concluded that:“In my opinion the law is clear. Inthe absence of a special conditionin a contract of employmententitling her to a job for life until shewas sixty-five, the plaintiff could bedismissed on getting reasonablenotice. There was no specialcondition in this case. The plaintiffwas employed in a job that waspermanent and pensionable. Shecould be dismissed on gettingreasonable notice. The notice shereceived was eight weeks and nocase has been made by the plaintiffthat that was unreasonable.”Ms Justice Carroll noted that theplaintiff had the option of pursuingthe proceedings against thebishops under the UnfairDismissals Acts or the RedundancyPayments Act but that she hadinstead chosen to sue at commonpg18 Autumn 2004

Employment Lawlaw. The judge noted that the position atcommon law “is that an employer is entitled todismiss an employee for any reason or noreason, on giving reasonable notice.”The plaintiff’s contention that her position wasfurther protected by the European Communities(Safeguarding of Employees’ Rights on Transferof Undertakings) Regulations, 1980 (whichhave since been revoked and replaced by the2003 Regulations) was dismissed by the judge.Ms Justice Carroll noted that the Dioceses ofKildare and Leighlin had not changed its identitysimply by virtue of the change in bishops. Rather,she compared the change in bishops to a changein managing director at a company.Ultimately, Ms Justice Carroll held in favour ofthe bishops and dismissed Ms Sheehy’s claim.COSTS AND THE REPAYMENTOF SALARYThere is nothing controversial in the judgment ofMs Justice Carroll. Rather, it simply confirms theexisting law on a number of points. However, thejudgment is significant in terms of its implicationsfor both Ms Sheehy as an individual and otherslike her who are considering the possibility ofpursuing injunctive relief against their employersin termination situations.Ten days after delivering her judgment in the case,Ms Justice Carroll ordered the plaintiff to repay thesalary that had been paid to her between August2002 and February 2004 on foot of theinterlocutory injunction. While the figure inquestion was not disclosed in court, there can belittle doubt but that it is a substantial sum for theplaintiff. In addition, Ms Justice Carroll awardedcosts in favour of the defendants. The costs inquestion were estimated by The Irish Times to bein excess of €100,000. Ultimately, Ms Sheehy’strips to the High Court would seem to have beenvery expensive indeed.CONCLUSIONThe decision in Sheehy v Ryan and Moriarty isentirely unremarkable in terms of its legalcontent. However, the case has the potentialto be of very great significance in respect ofthe practice of employment law in Ireland.Before Ms Justice Carroll made her orders in thecase, it was not uncommon for employers to settleclaims where an injunction had been awarded to anemployee in order to minimise their anticipatedlosses. Such settlements occurred becauseemployers were afraid that judges would not orderemployees to both repay any sums paid on foot of theinterlocutory order and discharge costs even if theemployer ultimately won the case. Ms JusticeCarroll’s decision constitutes a significant warningto employees who pursue the same type of claim.In essence, employees must now think very seriouslyabout the potentially devastating financial impact ofpursuing proceedings of this nature.This article was first published by Wolters Kluwerin the Employer’s Guide Newsletter.Adrian Twomey, Senior Associate,A&L Goodbody

CIPD T&D Conference 2004CIPD StrategicConferenceExhibitors preparing for the offThe Annual CIPD Strategic Training andDevelopment Conference was held at the FourSeasons Hotel, Ballsbridge, Dublin. AudreyKelly reports.As is usual at CIPD events and conferencesthere was a full house in attendance. Theconference delivered the latest research inTraining and Development, from the CIPD.Dr. Thomas Garavan, University of Limerick;Martyn Sloman, CIPD and Dave O’Donnell, theIntellectual Capital Research Institute of IrelandDr Thomas Garavan was the first speaker on theday to present ‘Training and Development in theage of the learner’. This presentation was anoverview of the results of the CIPD researchreport of learners in the Republic of Ireland,which was undertaken by the Kemmy BusinessSchool in the University of Limerick.742 people in total were interviewed for thestudy. They answered questions on the level ofTraining and Development they had receivedover the previous 12 months, prior to thepublication of the survey. They were questionedon a number of areas, including: the quality ofthe training received, what was found to be mostuseful, development opportunities and theperceived benefits from participation. Over 70%of those surveyed had received training,including voluntary formal training, mandatoryformal training and on-the-job training. Alltraining received high rating in terms of quality.Among the significant findings is that on-the-jobtraining and development was considered to bemost effective. According to Dr Garavan we relyon on-the-job learning, ad-hoc rather than highlystructured training.Martyn Slomar, adviser, for training anddevelopment, CIPD, pointed out that the mostprevalent methods by which people learn are‘Interpersonal’, that is asking questions fromcolleagues and getting help on a need to knowbasis, as well as through sourcing relevantdocuments. For example research has showed thatmost people have learned how to use Power Pointthemselves as opposed to through formal training.As we all know, the reality is that the trainingbudget is often the first to go when cut backs arebeing made. Therefore, measures of performanceare crucial if investment is to be committed. TheCIPD research shows the impact that welltrained and motivated people can have on thebottom line of business performance. Capableand committed people are a crucial factor insustaining competitive advantage. Evidence fromthe CIPD research shows that organisations mustcreate an environment in which their people seekand share their skills and knowledge. Thisincorporates the term ‘discretionary behaviour’ –the everyday behaviour the employer wants butmust depend on the employee to deliver. Learningat work is therefore very significant for nourishingthis discretionary behaviour.The research included a number of items tomeasure the motivation of respondents to learn.Exhibitor: FÁSThere was strong evidence to show that thosewho were more motivated to take part in trainingand development participated in more voluntarytraining and development activities. This showsthey are prepared to go that extra mile. Somepotential barriers to training and developmentinclude: lack of self-confidence and/or a beliefthere are few benefits from participation.The Irish Survey highlighted that more attentionshould be given to the learning requirementsand motivations of lower skilled employees. Itwas found that people in smaller organisationswere less likely to receive formal on-the-jobtraining. This group are more likely to participatein mandatory formal training instead. In terms ofpolicy implications, there is a need for financialand other incentives to enable smallorganisations to carry out training activities.WHAT ARE THE OTHER REASONSWHY PEOPLE DON’T PARTICIPATEIN TRAINING?Reasons include: work is too busy, an insufficientlearning culture in the workplace (especiallyprevalent in smaller organisations), few trainingopportunities and family/other commitments.Exhibitor: FETACThe conference also presented analysis of recenttrends in E-learning. The 2003 CIPD survey on‘E-Learning in Irish organisations’ looks at typesof training where E-Learning is used, amongwhich employee group, resources devoted to itand the perceptions of CIPD professionals on E-Learning in general.pg20 Autumn 2004

CIPD T&D Conference 2004Among the main findings are, that Electronics,Chemicals and Public Sectors are the leadingusers of E-learning. US subsidiaries are higherusers than Irish owned organisations and Irishstate and semi-stage organisations are alsosignificant users. Two thirds of those whoresponded to the survey rate the Internet as amethod of Training and Development that isreasonably effective, but significantly traditionalmethods are used more and respondentsranked these far higher in terms of effectiveness.50% of organisations use e-learning materialsthat have been created specifically for them.As you would expect E-learning is used mostlyfor IT and technical skills and much less for softskills training.Exhibitor: The Mind GymExhibitor: PennaExhibitor: SHLIn terms of the overall perception of E-Learning,only one tenth of Irish respondents thought E-learning was the ‘most important development intraining in a lifetime’. E learning is seen as part ofthe solution – a new set of tools forlearning and so is described as‘evolutionary, not revolutionary’.Blended learning is emerging asmore effective and identifying theright supports for the learner iscrucial.Another interesting presentation wason HETAC and FETAC, the bodieswhich endorse higher education andtraining programmes. FETAC is ofparticular interest to HRprofessionals as itacknowledges thegrowing importance ofcertification for alltypes of learning. FETACis obliged to recogniseall types of learning sothere is a sense ofinclusivity here. A FETACendorsed programme isa real quantifiablemeasure of progress fora programme within acompany. Outsidecertification adds value and so isimportant when taking into accountemployee’s personal developmentopportunities and perceived benefitfrom training. There has also been asignificant contribution from industryin defining the standards used. Formore information see www.fetac.ieIn conclusion, the recent research hasshown that a more informal mode ofTraining and Development is presentin workplace learning, which is a greatopportunity for employees to learn. Interms of policy implication, the balance ofresources between classroom-based trainingand on-the-job training needs to be taken intoaccount. Also the structure and management ofon the job training needs to be considered. Thisincrease in informal training means there is astrong role for line managers in the T&D function.According to Dr Garavan, “Line Managers shouldcoach, mentor and offer feedback” and alsocreate development opportunities and give preand post training briefings. There is also a needfor a focus on individual learning as opposed totop-down interventions only. According to DrGaravan: “If we know how people best learn itraises questions on how we design jobs andtraining functions”. When we consider e-learning, a blended approach appears to beJohn Moran, Programme Leader, ESB Port Laoise and PaulEnnis, Manager, Network Training, ESBpg21 Autumn 2004

CIPD T&D Conference 2004discretionary behaviour and be awarethis is of value. This also relates to theidea of the self-confident learner andrelates to self-efficacy (discussed lastyear’ conference). In looking at possibleways to motivate reluctant learners,customized ‘just for you’ courses couldbe an option.Stan McHugh, CEO, FETAC;John Butler, Manager, Excellence Through people, FÁS;Dr. Thomas Garavan, Lecturer, University of Limerickand Seamus Puirceil, CEO HETACmost beneficial. Modular training is increasinglymore popular – as opposed to employees beingaway from the workplace for long periods.Another interesting finding is personalmotivation and commitment from employees.Organisations need to get a voluntarycommitment from employees to demonstrateIf there is a message from this year’sconference for HR professionals it is tohelp people to learn andbecome active in this area.There is a definite shiftfrom training to learning…This was neatly summedup by Martyn Sloman: “Bydesigning, planning, implementingand monitoring appropriateinitiatives or activities it is possibleto move theory along thecontinuum from training tolearning”.A well earned breakDelegates enjoying the conference!MAKING TRAINING AND DEVELOPMENT WORKPictured at the launch of Making Training and Development Work: ABest Practice Guide, from left, Professor Donal Dineen, Dean, KemmyBusiness School, University of Limerick, Carole Hogan,Thomas Garavanand Amanda Cahir-O’Donnell, co-authors of Making Training andDevelopment Work, Michael McDonnell, Director CIPD Ireland, whowrote the Foreword.A new book designed specifically for trainingmanagers, Making Training and DevelopmentWork, was launched in conjunction with CIPDIreland at the Annual CIPD Training andDevelopment Conference. The authors, ThomasGaravan, Carole Hoganand Amanda Cahir-O’Donnell have cometogether to produce apublication that seeks tohelp you make qualitydecisions about the bestlearning options to selectwhen you are faced withspecific problems.This 600-page ‘bestpractice guide’ isdesigned to help developthe most appropriate setof practices that will workwithin your ownorganization, and to helpyou select the mostappropriate deliverystrategy, training methods,style of delivery andevaluation methods.Learning objectives are outlined at the start ofeach chapter, followed by a practical exampledesigned to stimulate your thinking. At the end ofeach chapter, the key learning points of the caseexample are highlighted and a set of actionpoints on best practice provided.Making Training and Development Work is writtenfor every training manager, trainer, trainingspecialist and instructional designer, or anyonewho needs to develop a training anddevelopment strategy.Michael McDonnell, Director, CIPD Ireland says “Ibelieve this is a unique book because it is aimedat the practicing trainer — or those training to betrainers — yet written by authors who are at thetop of their game in terms of serious academicresearch. As such it is destined to have a majorimpact on training and development atorganizational levels in all sectors of theeconomy.”Published by Oak Tree Press, Making Trainingand Development work is available in all goodbookshops in hardback, price €70 (paperbackprice €40) or online at www.oaktreepress.com.CIPD members can order at a special reducedprice of €55 hardback and €30 paperback.LoCall 1890-313855 to order directly.pg22 Autumn 2004

Employee DevelopmentAn IntelligentApproachThe term Emotional Intelligence (EI) becamepopular in the 90s but is now developing anew resonance with employers. Clíona Digginsexamines its growing role within staff andorganisational development.Many employees now spend more of their timeat work. Because people increasingly view it notonly as a way to earn a living but often asa meaningful extension of themselves, workneeds to be a positive experience if it is to beproductive. Motivating and developing staff ina changing, complex modern businessenvironment therefore requires management tofully appreciate how organisational decisionsaffect people’s performance.The concept of Emotional Intelligence (EI) is verymuch in step with these trends. Althoughdefinitions vary, its basic premise relates tounderstanding the thoughts and feelings thatguide both our own and others’ actions indifferent situations, and that by recognisingthem and responding appropriately we arebetter able to manage ourselves, other peopleand the organisation.Various benefits have been claimed for EmotionalIntelligence since it emerged during the ‘90s.Research has shown that training programmesthat include Emotional Intelligence helpemployees to co-operate with each other andto be more motivated, thereby increasingproductivity and profits. A study by Boyatzis in1999 concluded that experienced partners in amulti-national consulting firm who scored aboveaverage in Emotional Intelligence factors delivered$1.2 million more profit from their accounts thanother partners. Another study of competencylevels in over 200 companies worldwidesuggested that one-third of this difference wasdue to technical skill and cognitive ability whiletwo-thirds was a result of emotional competence.It is even considered that Emotional Intelligenceplays a greater role than 'traditional' intelligencein determining the success of both individualsand their organisations.Recently Irish employers have had cause to refocustheir attention on Emotional Intelligenceas a management tool. One of the key reasonsis the added pressure on staff to improveperformance in the light of greater economicuncertainty. Indeed, companies that havealready increased their competitiveness byreducing fixed costs and eliminating non-valueadding functions, are now looking at the otherside of the ledger in order to motivate employeesto contribute more productively.In difficult times ‘emotionally intelligent’managers can inspire and encourage employeesand will also be more adept at protectingtheir own careers. By keenly observing andrecognising their colleagues' actions andintentions, they are able to anticipate peoples’motivations and to act accordingly inthe interests of the business. In addition,individuals with a better understanding ofhow organisational behaviour affects others willhave the cultural sensitivity that will be neededto manage increasingly multi-ethnic workforcesin Ireland.BETTER LEADERSHIP,DECISION-MAKING ANDRESPONSE TO CHANGETraditionally four characteristics and abilitiesare associated with 'emotionally intelligent'managers:* Understanding self: recognising andunderstanding ourown thoughts andbehaviours* Managing self: managing ourresponsesappropriately indifferent situations* Understanding others: recognising andunderstanding thethoughts andfeelings of othersand empathising atthe individual,group andorganisational levelpg24 Autumn 2004

Employee Development* Working with others: inducing effectiveand desirableresponses inothersThese traits, when applied in decision making,are likely to produce better results. EI pioneerDaniel Goleman, also found that a high level ofEmotional Intelligence was a common factor insuccessful leaders. It is critical for managers toconnect with colleagues emotionally as well asintellectually. Strong emotional reactions tobusiness decisions and processes can hinderprogress and effective leaders are expected tomodify these reactions and coach employees toan improved level of self-awareness and henceperformance.Building the self-awareness element isparticularly important in coping with rapidlychanging organisations. But in dynamicenvironments EI also contributes by enhancinginternal communication, encouraging selfexpressionand thereby the potential forinnovation and creativity, and supporting theflexibility required for decision-making, conflictresolution and contract negotiations.DEVELOPING EMOTIONALINTELLIGENCEThere is evidence that, unlike IQ, people caneffectively increase their Emotional Intelligence.Neurological research suggests that EI is asequential process that begins with recognisingour own thoughts and feelings towards peopleand situations. Once we build this fundamentalelement of self-awareness we move towardsunderstanding individuals and groups, as well assubtleties at play in an organization.We then usethis information to induce effective anddesirable responses in others.We have found at Pearn Kandola that EmotionalIntelligence can be developed in the individualthrough participation in tailored EI developmentworkshops. These events include many practicalactivities designed specifically to enablemanagers to understand the thoughts and feelingsbehind their own and other peoples' actions tohelp them direct their responses appropriately.As a starting point, participants undertake acomprehensive Emotional Intelligence 360degree feedback process with input frommanagers, peers, direct reports, customers, andeven family and friends. Working closely with abusiness coach they explore personal goals, andwork through various job simulation exercises,including role play and group activities, in orderto build their self awareness and to gainfeedback on the impact of their style ofbehaviour. Other techniques used includeanalysing self-talk and beliefs and the use ofmental practice techniques to increaseeffectiveness through visualising developmentgoals. The result of the workshop is apersonalised plan identifying the key areas ofEmotional Intelligence for development. Learningcan then be integrated into the workplacethrough follow-up coaching.Clíona Diggins is an OccupationalPsychologist with Pearn Kandola.

Organisational ChangeManagingOrganisational ChangeRespected business author and organisationalanthropologist, Charles Handy 1 offers aprovocative, if somewhat graphic, metaphor forchange: If you put a frog into a pot of cold waterand slowly heat it, the frog will let itself beboiled to death. Handy’s metaphor warns thatour environment, just like the temperature ofthe pot with the frog, is constantly changing,sometimes imperceptibly so and thatorganisations must be aware of even subtlechanges in their environment and be able torespond to those changes accordingly or, likethe frog, they too will not survive.However, barriers to organisational changeabound including inertia, organisational culture,management rhetoric at odds with theirbehaviour, office politics, fear of the unknown,lack of involvement in the process, etc. For manyemployees, including managers, change isneither sought nor welcome. It is oftendisruptive, intrusive and upsets balance. It canbe confusing and loaded with paradox andcontradictions.Successful change requires more than clevermottoes, buzzwords and new T-shirts!Management literature offers a wide range ofadvice, much of which can be combined underthe following key areas:2.FORM A POWERFUL GUIDINGCOALITION:John Kotter 3 stresses the need to establish anactive support structure with the necessaryresources for and commitment to the plannedchange. Key individuals and constituenciesmust be identified and enrolled as activeplayers in the process.It is unlikely that the leader will be able toprovide the necessary leadership for change onhis/her own.The lack of substantive and visiblesupport for change by individual members ofthe management team, and or key influentialconstituencies will quickly become apparent tothe members of the organisation. A litmus testis the degree to which other members of thesenior group are ‘on board’ with the change andable to describe it in consistent and appealingterms.A lack of a visible collective commitmentto change is likely to raise doubts and erodeconfidence in the change initiative.3.COMMUNICATE, COMMUNICATE,COMMUNICATE:The three most important activities in managingchange are communications, communicationsand communications. Jack Welch warned thatthe toughest task GE faced wascommunication of their organisational vision.people go through to come to terms with thenew situation.At a personal level, the death of anear one or a divorce may be an event, howeverit is the difficult and often lengthy transition thatresults from such an event that people find sohard to manage. Bridges advises that thestarting point for transition is not a newbeginning but the acceptance of endings toleave the old situation behind.Recognising this need to start with an ending,one highly regarded organisation, whenacquiring another company, organised whatcould only be described as a ‘wake’ at theacquired site. At the wake, the transitioningemployees were encouraged to take somethingfrom the old organisation (pen, business card,etc.) and throw it into a large bonfire, therebybeginning to mark the ending. There is nothingto suggest that this ‘wake’ was their onlytransitional effort but it serves to highlight thatthey recognised that psychological transitiondepends on letting go of the old situation.5.CONSOLIDATE THE CHANGE ANDINSTITUTIONALISE CONTINUOUSIMPROVEMENT:Frequently organisations claim victory too soonand do not consolidate the changes.Organisations sometimes move too quickly tothe next initiative and begin to lose ground onearlier changes because the changes had nochance to root properly. Kotter warns thatchange is fragile and subject to regression.Even when change has been successfullyimplemented, organisations cannot ‘rest ontheir laurels’. Sometimes change is hardly inplace when the environment begins to evolveagain requiring the organisation to adjustaccordingly. Change is not a destination but anever-ending evolution.1.ESTABLISH A DIRECTION:Organisational change requires a strong andvisible leader to guide the change and toengage and inspire members. Leaders need tobe able to expose the organisation todiscomfort with the status quo, facilitate thedevelopment of a clear direction, and create asense of urgency to achieve new goals.Successful leaders visibly lead by exampleand exhibit clear and constant purpose. “Notmere support, not mere endorsement, notmere speeches, but unqualified, unending,visible, executive commitment” 2 .Too often communications are too late and tooscant. Organisations frequently communicatethe nature of the change (the what) butsometimes do not communicate the rationalefor the change (the why). If the rationale forchange is fully explained and employeesunderstand and believe it, the organisation is along way towards implementing the change.4.RECOGNISE THAT CHANGE IS APROCESS AND NOT JUST AN EVENT:Bill Bridges 4 stresses that change is really abouttransitions and the psychological processWithout careful application of such elements oforganisational change, employees are likely to besceptical and possibly distrustful of the proposedchange. Likewise, senior managers will likely befrustrated and stymied by employee resistance.Employees and managers who have negativefeelings towards today’s change are less likely tobe positive towards change in the future, so apoorly managed change process can lead todeep-rooted dysfunction in the organisation’sadaptability and ultimately its ability to survive.© Pat Cunneen,Lighthouse Organisational Consultants Ltd., 2004.pg26 Autumn 20041. Charles Handy, “The Age of Unreason”, Arrow, 1989; 2. Powell,T. Handbook of Business Strategy, Voss & Wiley, eds., Faulkner & Gray3. John P.Kotter, “A Force for Change” Free Press, 1990; 4. William Bridges, “Managing Transitions”, Addison Wesley, 1991

National Launch of ProgrammeThe National Programme launch was hosted by A&L Goodbody in their IFSC offices.Lord Mayor of Dublin, Royston Brady and over 300 guests attended.Jim Waters, John Guinan, Paddy McMahon and Ian MoorePat Lunny, Chairman CIPD; ElizabethBird, Assistant Institute Secretary;Francis Pett, Branch DevelopmentExecutive CIPD and Ian Moore,Partner, A&L Goodbody.Jeanette Kealy, John Conroy and Barry WalshFinbarr Flood and Cllr Royston Brady,Lord Mayor of DublinKay Donnellan andMags O’ConnorLynsey O’Brien, Adrian Twomey, Lisa Cahill and Alan Sherlockpg28 Spring 2004

National Launch of ProgrammeKaren Behan, Sarah Reynolds,Susan Behan, Tina Killeen, CIPD andWendy Sullivan, CIPD.Suzanne Farrelly, Bernard Chanliauand Geraldine Dunleavy-LarkinAda Kelly, Peter Squire,Ann Keenan andCarol Ann CaseyPat Lunny, Greencore andChairman CIPD; Lucy Fallon Byrne,NCPP; Tom Kennedy, WaterfordStanley and Cllr Royston Brady,Lord Mayor of DublinElizabeth Bird and John FitzgeraldMichael Ostinelliand Paul Smyth,Vice Chairman, CIPDWendy Sullivan CIPD; Ian Moore, A&L Goodbody; Pat Lunny,Greencore & Chairman CIPD with Cllr Royston Brady, LordMayor of DublinIan Moore, Partner, A&L Goodbody; Michael McDonnell,Director CIPD Ireland; Cllr Royson Brady, Lord Mayor of Dublinand Pat Lunny, HR Director Green and Chairman CIPDpg29 Spring 2004

Members Evening Meetings (Eastern Group) 03/04“USING COMPETENCIES AND BUSINESSVALUES TO BUILD A PERFORMANCEMANAGEMENT SYSTEM THAT’S LINKEDTO BUSINESS OBJECTIVES”PENSIONS - WHAT TO TELLYOUR BOARD AND WHAT TOTELL YOUR EMPLOYEESJohn Loughran, Managing Psychologist, Pearn Kandula presenting “UsingCompetencies and Business Value to Build a Performance ManagementSystem” to CIPD members in AIB, Bank Centre, last NovemberMaura Gallaher speaking with Maurice Johnston (Speaker), SeniorConsultant, Mercer Human Resource Consulting.EFFECTIVE EMPLOYEECOMMUNICATION EVENINGAlan Havett, AIB; Sue Walsh, AIB; Michelle O’Keefe, Mercer;Marie Teehan, AIB and James Murphy, AIBJohn Guinan pictured with host, Donie Wiley, Head of Employee Relations,AIB and Hon. Treasurer CIPD Ireland.Kevin Empey, Head of Human Capital Group Practices, Watson Wyattand Ian Moore, Partner, A&L Goodbodypg30 Autumn 2004

Members Evening Meetings (Eastern Group) 03/04A HRD STRATEGY THAT BUILDSBUSINESS SUCCESSDEVELOPING HR CAPABILITIESAMONGST LINE MANAGEMENTEugene Dalton presentingMichelle Ryan, Strategic HR Manager, EBS and Dave Keenan, Head ofHR & Business Excellence, EBSMichele Ryan, Delivering the presentation to CIPD Members attheir impressive new Head Office in Burlington RoadJoe Scally, Eugene Dalton and John Campion, ESBpg31 Autumn 2004

Southern Region – Active on all fronts“THE TRADE UNION PERSPECTIVE”At the Southern Region December monthly Meeting at the Cork HarbourCommissioners Mr. Joe O’Flynn, General Secretary S.I.P.T.U. delivered avery informative and thought provoking presentation to a largeattendance of H.R. professionals covering The Trade Union’s Perspectiveon national and international issues.“E.A.T. PERSPECTIVE”At the October Monthly Meeting Theresa O’Mahony, Barrister-at-Law andChair of the Employment Appeals Tribunal gave a detailed and informativepresentation to the members of the Southern Region titled “PerspectiveFrom the Employment Appeals Tribunal”.L to R. Joe O’Flynn, General Secretary S.I.P.T.U., Mary McAdams,Chairman CIPD Southern Region, Liam Linehan CIPD committeememberCHARITY FUNDRAISERThe members of the Southern Region raised €1,000 for the WellSpring Organization which provides accommodation and outreachprogrammes for young females in Cork area. The money was raisedat the Table Quiz event, which was held on the 27th November 2003.Thank you to all who made a contribution to this worthy cause.Photographed at the event were L to R. Louise Lynch, Pepsi Cola andCIPD Committee Member, Theresa O’Mahony, Chair EmploymentAppeals Tribunal, Conor O’Connell, Construction Industry Federationand Doreen Freeman, Millipore.EXCELLENCE THROUGH PEOPLEThe September Breakfast meeting which was organized by the SouthernRegion Committee and sponsored by FÁS was held at the RochestownPark Hotel on 25th September last.The post breakfast presentation referred to the background, structure andbenefits to industry of the EXCELLENCE THROUGH PEOPLE PROGRAMME.Photographed are members of the CIPD Southern Region Committee,Audrey Burke McCarthy, Ken Murphy and chairman Mary McAdamswho presented a cheque for €1000 to Mary Dunnion and EleanorMurphy who represented the Well Springs Organization.Photographed at the event were, front left to right, Geraldine White,Training Advisor Fas, Mary McAdams Chairman CIPD Southern Region,Audrey Burke-McCarthy CIPD, Back left to right, Kevin MurphyConsultant to E.T.P. John Butler Manager E.T.P., Gerry linehan Servicesto Business Fas and Jim Murphy Training and Development Manager,Janssen Pharmaceuticals.pg32 Autumn 2004

Southern and North West RegionsUCC GRADUATEMEMBERSHIP PRESENTATIONOn the 10th December last the Southern Region organizedpresentation of Graduate membership Certificates to the students thatsuccessfully completed the Diploma in Personnel Management atUniversity College Cork in 2003. The event was kindly sponsored byBeamish & Crawford Brewery and hosted by the Human ResourceDirector Fergus O’Connor. In addition to the new Graduates theattendance included Michael McDonnell, Director CIPD Ireland,Professor Mairtin O’Fathaigh, Director Centre for adult Continuingeducation at UCC and Barry Hill, Regional Development Officer CIPD.NORTH WESTThe North West Region of the Chartered Institute of Personnel &Development held their first event of 2004 in the Sligo Park Hotelrecently. The North West Region is now in its forth year and runs a verysuccessful programme of events focussing on topical Human ResourceManagement issues. The keynote speakers at their recent event wereMichael McDonnell Chief Executive of the Chartered Institute of Personneland Development and Gary Molloy HR Manager, MBNA Ireland.New Graduates: Photographed with the new Graduates were DonalLehane, Michael McDonnell and Don Hegarty.The Organisers: The team that organised the event L to R. Willie Weir,programme Coordinator UCC, Barry Hill, CIPD. Karen O’Shea, ExecutiveAssistant UCC, and Fergus O’Connor, Human Resource Director Beamish& Crawford.Mike McDonnell, Colman Collins, Ray McGreal,Niall Murray & Vanessa MiddletonNiall McEvoy, Human Resource Manager for Masonite Ireland and theChairperson of CIPD North West introduced the event and spoke insome detail about the branch’s progress over the past twelve monthsand the upcoming events for later this year. Mike McDonnell, Director,CIPD, presented on the implications of Chartered Status and updatedmembers of recent research within the CIPD. Gary Molloy, HR Managerin MBNA Ireland delivered a fascinating presentation on theirexperience to date in Carrick on Shannon. MBNA Ireland recently wonthe title of the “Best Company in Ireland to Work For” as voted forby their employees.CIPD BREAKFAST SEMINARSPONSORED BY RECRUITIRELAND.COMThe MBNA Group:Tom Crosbie (MD, RecruitIreland.com), Mary McAdams (ChairmanCIPD Southern Region), Fergus Finlay (Guest Speaker), Aoife Curtin(Marketing Manager, RecruitIreland.com), Ken Murphy (CIPDCommittee Member)In concluding the evening, Niall McEvoy said: The Chartered Institute ofPersonnel & Development (CIPD) is the professional body of HumanResource specialists. The rapid growth of the Institute in Ireland reflectsthe growing number of Human Resource professionals practising in theNorth West.pg33 Autumn 2004

Western regionWESTERN REGION’SOUTSTANDING SEASONThis year the members of the Western Region produced a packedprogramme of events to enlighten and stimulate. Mrs. Breda Ryan,Director of Anthony Ryan Ltd and the Ardilaun House Hotel, the founderof the BPW Galway, an internationally affiliated Business andProfessional Women’s organisation launched the packed programme toa gathering of sixty people on the 7th October.“Training & Development in Irish Companies” presented by Dr.Thomas Garavan – was sponsored by Baxter Healthcare SA and theCastlebar Campus of GMIT.On the 3rd of February, Harvey Wasserman delivered his address on“Fear” sponsored by Transitions Optical Ltd. Dr. Wasserman believesthat fear, in its many overt and subtle forms, is a major cause of humanlimitation and suffering – this was an event not to be missed.The residential weekend was held on 6th and 7th of Februaryincluded, for the first time, a programme for professionaldevelopment. Peter Cassill presented the “Workplace of theFuture” sponsored by Medtronic AVE on the 11th March. The finalevent is “Mediation” presented by Sean McHugh and sponsoredby Tyco Healthcare on 6th April.All members of the Western Branch Committee are volunteers andgive of their time generously and selflessly. Companies throughoutthe western region sponsor our events. The Committee would like totake this opportunity, on behalf of the CIPD Western Region to thankall our sponsors and friends, especially the Galway & MayoInstitute of Technology, without whom, we simply would not survive!Michelle Lynch- CPL, Breda Ryan, Marie-Therese Macken ChairpersonWestern Branch, Ann Martyn – CPL main sponsor of the nightThe first event ‘EmploymentLaw Update’ a livelypresentation by Adrian Twomeya Senior Associate in A & LGoodbody drew an audienceof close to 140 people. TheGala Dinner Dance sponsoredby CCP Recruitment Ltd wasa resounding success. HorizonAdrian Twomey making his presentation the music providers for thenight were enhanced by thetalented members of the Western Branch and the CIPD Students!The number of people attending each event so far has been well up onthe previous year. The CIPD Western Branch hope to build on the verygood record set in 2003.NORTH WEST REGION: BALLINABEVERAGES WIN TOP TEN COMPANIESTO WORK FOR AWARDGina Maglioccoand GeraldineCorban whoattended“Employment LawUpdateThe top 50s companies event sponsored by Boston Scientific and theWestwood Hotel stimulated debate and interaction. This event wasably chaired by Robert Lee, CEO of the Best Companies in Ireland toWork With(check this name).Back row (Left to Right): Kevin Dunleavy, Ballina Beverages; Bob Lee,CEO, Great Place to Work Institute; John Smith, Balllina Beverages;Rachel Armstrong, Independent Newspapers; Anne Marie Coleman,Gabriel Gormley, Helen Tuffy, Eileen Boland, Ballina Beverages;Front row (Left to Right): Keith Sheridan, Brendan Flynn, Philip Rossiter,Vincent Lang, Ballina Beverages.pg34 Autumn 2004

Title StrapMASONITE IRELANDSECURES “EXCELLENCETHROUGH PEOPLE” AWARDMasonite Ireland was the first Company in Leitrim to be accreditedwith the Excellence Through People Award when presented with theaward by the Tanaiste, Mary Harney.Pictured above is a group from Masonite, including the HR Team whoattended the award ceremony. Commenting on the award, NiallMcEvoy, Human Resources Manager at Masonite congratulated allemployees for their work in achieving this very significant award. “Weare particularly delighted to be the first Company in Leitrim to berecognised with this Human Resources award. Since the Companycommenced operations in 1996 we have strived to develop and promotebest practice in Human Resources Management. This award is bothrecognition and encouragement to attain even higher standards”.Niall McEvoy is the Chair of the North West Region of CIPD.Photographed left to right: Jim Hoey, MD, Masonite Ireland,Niall McEvoy, HR Manager, Masonite Ireland and John Halbert,HR Director, Masonite International (USA).pg35 Autumn 2004

FeatureProfit Building Teams First,Downsize LastIrish HR Execs May Needto Take The LeadThe last 18 months have seen a profoundchange in the Irish economy. Where once itseemed unstoppable, the global downturnhas hit Irish businesses hard with manymultinationals, particularly in the ICT andmanufacturing sectors, sufferingdreadfully. Whilst the future will be nothinglike those dark days of the 1980s, theoutlook is sober.Recently the Organisation for Economic Co-Operation and Development (OECD)predicted that Irish unemployment rate wouldrise to 5% by the end of 2003. Elsewhere, theIDA has estimated that job losses in themultinational sector will be as high as15,000 by the end of this year. Althoughthere are 28,000 more people at work now inIreland than at the same time in 2002, jobinsecurities and worries about the future ofthe economy are rife.These worries have been fuelled by a number ofjob loss announcements. September alone sawthe closure of the computer hardwaremanufacturer 3Com in Dublin, and the electricsgroup Schneider in Celbridge, Co Kildare,resulting in combined job losses for 955 people.As Ireland’s reputation as an expensive locationto do business grows, multinationals increasinglyhave to find ways to lower their costs, with lay-offsseeming the most obvious solution.However, job cuts are a short-term solution.Sustaining economic recovery for the long termrequires a strategy that involves and considerspeople first and makes downsizing a last resort.Who better to lead this type of strategy thanHuman Resources professionals?HR is astutely aware of the downside todownsizing; that layoffs cause the quality of workto suffer, customer satisfaction decreases, jobperformance slumps, and morale dissipates. Yet,companies continue to layoff large numbers ofpeople at the first sign of a shortfall.Rather than leading a downsizing strategy, HRcan instead help organisations implement aprocess that turns to employees for feedback onprofit improvement and cost reduction. Profitbuilding in any organisation needs to be anongoing stand-alone process and HRprofessionals can effectively help companiespg36 Autumn 2004

Featureprofit build by developing profit-building teamswhose sole purpose is to uncover innovativesolutions and ideas for reducing costs byworking through every line of the company’sprofit-and-loss statement. Companies withprofit-building teams are armed and conditionedfor sustainable profitability.Developing teams specifically for profitimprovement is uncommon. However, this teamcan become the instrument for voicing opinions,gathering information and exploring newmethods for profit improvement.The Profit Building Process organises profitbuildingteams according to the followingcriteria:❚ Team Members: The team should represent across-section of the departments and skillsthat make up the backbone of theorganisation.These usually include operations,marketing, finance, information technology,human resources, telecommunications, andadministration. It is equally important tochoose team members who are creative "outof the box" thinkers. Involving innovativethinkers from a range of departmentsbroadens the team’s thinking and enhancesits ability to come up with creative solutions.❚ Size of the Team: Ideally, there should bebetween five to eight team members. A teamwith less than five members tends to take anarrow view because it does not include abroad enough base of skills and experiences.A team with more than eight membersbecomes unwieldy and slow to react.❚ Performance Goals: The Profit Building Teamis goal-oriented and must set clear, concisegoals that can be measured using the profitand loss statement.❚ Accountability: Team members holdthemselves accountable for implementingand following up on cost reduction and profitimprovement strategies.❚Regular Meetings: The Profit Building Teamshould hold regular weekly meetings. Whenthe team meets every week, it is easier totrack the team’s progress and follow up onaction plans.Even the most talented team members need aplan. First the team must ask as many questionsas possible in order to achieve the best solutionfor profit improvement. I call this processQuestions Brainstorming: a simple techniquethat opens the door to creative thinking. Theteam’s goal is to come up with as manyquestions as possible, this allows freedom toexplore all possibilities without feeling there is a"right" answer. The process of generating a longlist of questions eventually leads to innovativesolutions. Following is an example of theQuestions Brainstorming process:“ The process ofgenerating a longlist of questionseventually leadsto innovativesolutions ”1. Advise the team that the goal is to come upwith a list of questions that will eventuallybecome action steps for cutting costs orimproving profits. These are called “profitimprovement questions”. Give each teammember a copy of the profit and lossstatement to use as a reference and a guideto asking appropriate questions.2. Begin the process of asking questions suchas "How successful was the last marketingcampaign? How much was spent onmarketing last year?" You may want to focuson one area at a time, such as marketing oradministration.3. List each question on a flip chart or whiteboard. Do not censure or omit any questions.Encourage the team to spontaneously throwout ideas – the wilder, the better. The mostunusual questions may eventually generatethe most creative action plan.4. Once a sufficient list has been generated, theteam analyses the questions and prioritisesthem. Team members are assigned theresponsibility of researching top questions,and a performance improvement plan isdeveloped. Team members report theirprogress over subsequent meetings and thesuccess of the plan is tracked and measured.The end result is an action plan based on theanswers to the profit improvement questions.In the past five years tremendous strides havebeen made in the area of global economics,giving birth to the rise of the much clichéd, CelticTiger. Yet during this same period, job lossesand layoffs have set a record pace around theworld. Irish HR executives, particularly those inmultinationals, are well placed for setting theexample and demonstrating how HRprofessionals globally can be the catalyst forchanging business strategies where companiesprofit-build first and downsize last.Perry Ludy has over 25 years in P&Lmanagement and is a former senior executivewith PepsiCo and Procter & Gamble. He is thefounder and president of LudyCo Internationaland his book is called Profit Building: CuttingCosts Without Cutting People. For moreinformation, please visit his website atwww.ludyco.com or contact him by email atperry@ludyco.com.pg38 Autumn 2004

pg39 Autumn 2004

People on the MoveJOHNO’HEHIRJohn O’Hehir has recentlyreturned to consultancy after 6years as HR Director of An Post.Linking up with a number of otherindependent consultants, Johnwill be specialising in assistingclients in the areas of HR andChange Management. John hadpreviously worked with PAConsultants where he coauthoredICTU’s “New Forms of Work Organisation”. John has beenclosely involved in implementing major change programmes in ESB andBritish Telecom.JOHN ROCHEB. comm., MSc. (HR),D.P.A., FCIPD, FLCMUntil recently a senior BusinessConsultant with Bank of Ireland ina Business Development andRelationship Marketing role John hasestablished his own consultant, J.W.Roche & Associates.J W Roche & Associates will provide consultancy and training in relationshipMarketing, People Management, Executive Mentoring and CoachingJohn has served on numerous committees with Government and withIBEC, CIPD and UCD all related to Human Resources, Training,Educational and Business matters.CASSFITZPATRICKCass Fitzpatrick has joined O’Malley &Associates/ InterSearch Ltd, ExecutiveSearch and Selection and HumanResources Consultants, as a Director,based at the Cork office.In her new role Cass will haveresponsibility for customer relationshipmanagement with existing and new customers.Cass was most recently Human Resources Manager with Sanmina-SCI, a USElectronics and Medical Devices manufacturing services company. She hasover 20 years senior management experience in the Electronics/MedicalDevices and Food industries, with considerable experience in resourcing andrecruiting at senior executive levels.She has also done extensive work in the areas of performance management,communications process, business coaching, compensation, team buildingand green field start-ups.Cass is a Fellow of the Chartered Institute of Personnel and Development andholds a Masters degree in Training and Development. She has held theposition of Chair of the Cork Branch of the Chartered Institute of Personneland Development and served on the National Committee of the institute fora number of years.