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Developing Innovation and the role of HR

• Annalisa Gigante
• 5 October 2006

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Index

• Defining Innovation
• Innovation the future growth engine
• The key questions
• The evolution of HRM
• Improving your Innovation potential
• Case study the Innovation process at Manpower
• Networking as a competitive advantage

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Defining Innovation

• the process of making improvements by introducing
  something new (Wikipedia)
• the introduction of something new
  (Merriam-Webster Online)
• the successful exploitation of new ideas
  (Dept of Trade and Industry, UK)

Successful innovation links new ideas and
technology with market needs and creates value
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Innovation the future growth engine

• Innovation fuels the Companys growth
• Innovation is everywhere
• RD
• New products
• New / improved processes
• ..from disruptive to evolutionary change

Innovation is critical to the future success of a
Company
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The key questions

• How do you promote and harness innovation?

• How can HR help?

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The evolution of HRM
HR Managers are becoming business partners by
shifting their focus from administrative output
to outcome and results, through
Strategy
HRM Strategy
Facilitating Cultural Change

• understanding the business
• personal leadership skills and credibility
• ability to manage change
• ability to apply the best HR management
  practices to the business goals.

Operations
HR Administration Functions
Transactions
Strategic HR will enhance Innovation
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Improving your innovation potential
Performance
Branding
Training
Innovation Potential
Organisation Culture
Talent architecture
Metrics
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Branding

• What is the role of innovation within the
  organization?
• Is Innovation a key driver of the Companys
  brand?
• Is it fundamental to the companys image?
• or is it a secondary objective?
•             
• Attract the right talent to the organization
• Deliver the brand promise to customers.

HR has a role to play also in defining and
delivering employer branding.
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Organisation culture

• How risk-averse is the organization?
• Does it encourage or stifle creativity?
• Is it open or resistant to change?
• To what extent does it encourage
  knowledge-sharing inside and outside the
  organization?
• Is there a knowledge management system in place?
• Has the company set up discussion communities
  around key issues?
• Is the word Innovation often used in internal
  communications?
• Is the company more dynamic and fast-moving or
  more cautious and bureaucratic?                   

A companys culture is critical in delivering and
encouraging innovation
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Metrics

• Which metrics does the company use today?
• Are these encouraging the desired behaviour of
  employees?
• How are bonuses set?
• Do they encourage innovation or are they purely
  results-driven?
• Are there qualitative as well as quantitative
  elements in the goals?
• Are incentives individual or team-based?

Measuring success will drive behaviour
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Talent architecture

• Attract, develop, plan and retain key talent with
  an integrated view
• Define each roles specific technical and
  personal characteristics.

ATTRACT EMPLOYEES
SORT OUT AND SEPARATE
RETAIN TALENT
INSERT IN ORGANISATION
People-based strategies
DEVELOP TALENT
HR OPERATIONS
ALIGN WITH STRATEGY
HR can help line management define the right
Talent Architecture for the company
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Training

• Assess current skills and gaps
• Plan carry out targeted training activities
• Team Building
• Acquiring specific technical know-how
• Tools for creativity and innovation
• mind-mapping
• Brainstorming

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Performance

• HR together with top management, has the key role
  in creating and maintaining a High Performance
  Organisation
• Engaging peoples hearts and minds to deliver
  profitable growth.
• Establishing stage-gate processes for innovation
• allow new ideas to be assessed and tested
• Ensure that less-profitable or less relevant
  innovation projects can be stopped before the
  investment in them becomes potentially
  unprofitable.

The Innovation Process
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Improving your innovation potential
Performance
Branding
Training
Innovation Potential
Organisation Culture
Talent architecture
Metrics
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Case study the Innovation process at Manpower
allows local innovations and global leverage when
relevant
Source Manpower
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Networking as a competitive advantage

• Most of todays innovation happens in Teams
• Joint projects business academia
• Knowledge management
• Managing Networks inside and outside companies
• Working with start-ups
• Corporate venturing
• Transferring ideas from scientific research into
  business

Focus on skills, technology and processes that
build collaboration communicating, sharing
information, organising, co-ordinating
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Appendix
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The HRM Paradigm Shift

• HR practitioners, in making the change to
  business leaders, need to shift their focus from
  just managing resources processes
  transactional efficiencies towards defining
  managing the framework for a high performance
  organization

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The Challenge for HRM

• Resourcing Talent
• Achieving High Performance
• Talent Development
• Creating a Quality Work environment
• Recognition, Reward, Remuneration
• Benchmarking
• Key to success in this transformation are
• Ensuring a coordinated and integrated HR service
  offer, from candidate attraction to separation
• Aligning people with strategy

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The world of employment is changing

• The war for talent is accelerating
• Retention and Development are critical
• Re-skilling is a key challenge as low level skill
  structural unemployment is emerging
• Workforces are more and more mobile
• Individuals have new life style expectations
• more innovation
• creative thinking
• less hierarchy
• new employment models
• Leading corporations must embrace the wave of
  change

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• Evaluation and planning of needs for
• Perms
• Temps
• Consultants
• Attraction Selection
• Mobilization of attraction assets
• e.g.Company Culture
• e.g.Salary Package
• e.g Brand

• Performance assessment
• Technical assessment
• Separation and Outplacement

• Induction Training
• Perms
• Temps
• Consultants
• On site management for temps
• Perms temps co-productivity management
• Employee consultants teams co-productivity
  management

• Compensation
• Incentives
• Rewards (tangible / intangible)

• Labor Relations management
• Legal management
• HR back office processes (pay, 401k,
  benefits, etc.)

• Assessment
• Career Development
• Transfer
• HiPo pool management

• Definition of needs
• Training
• Team Building
• Motivation
• Alignment measurement

• Enabling innovation
• Reward for innovation

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The Innovation Process