This document discusses how organizations can become employers of choice by developing a high-performance culture aligned with business strategy. It outlines that culture and people strategies are critical for success, and human resources must act as a strategic business partner. Winning organizations attract and develop top talent, provide inspirational leadership focused on culture, and create people value propositions to realize their business strategies. Emerging trends will require flexible people management and a focus on strategic HR practices.

1. Becoming an Employer of Choice:
Mapping the Practices of a Winning
Organisation
Liz Griffin
Senior Manager
Organisational Development

2. Overview
 The link between culture &
high performance
 HR as a strategic business
partner
 Developing winning people
strategies within your
organisation
 Emerging trends

3. Ernst & Young
 Global network comprising more
than 100 000 people in 130
countries
 Our vision is to contribute most to
the success of our people and
clients by creating value and
confidence
 EY Australia: 4 000 People
 10 offices (Sydney, Melbourne,
Brisbane, Canberra, Adelaide,
Perth, Darwin, Cairns, Townsville,
Gold Coast)

4. Culture and High Performance

5. What is Culture?
“A pattern of basic assumptions –
invented, discovered or developed by a
given group as it learns to cope with the
problems of external adaptation and
internal integration – that has worked
well enough to be considered valid and
therefore to be taught to new members
as the correct way to perceive, think
and feel in relation to these problems”
(Schein,1985).
Schein, E., Organisational Culture and Leadership, 1985.

6. Where Does Culture Fit?
Clear
Direction
Communication
of Direction
Adapt Culture
• Keep strengths from current
cultural state that support direction
• Change other aspects to move to
desired cultural state that will
support direction
Unique Current
Culture
Build a Clear Direction
• Based on the strengths of
the current culture
Hubbard, G., Samuel, D., Heap, S., Cocks, G., The First XI: Winning
Organisations in Australia, 2002.
Communication
of Direction
Approach 1
Approach 2

7. The Research – Culture has a significant
impact on a firm’s economic performance
 Nohria, Joyce and Roberson: What Really Works (2003)
 Hubbard, Samuel, Heap & Cocks: The First XI – Winning
Organisations in Australia (2002)
 Watson Wyatt: Human Capital Index – Human Capital as a
Lead Indicator of Shareholder Value (2001)
 Hewitt Associates: Best Employers to Work for in Australia
Studies (2001-2003)
 Deal & Kennedy: The New Corporate Cultures (2000)
 Buckingham & Coffman: First, Break All Of The Rules (1999)
 Collins & Porras: Built to Last (1994)
 Kotter & Heskett: Corporate Culture & Performance (1992)
 Peters & Waterman: In Search of Excellence (1982)

8. The Business Basics: What Really Works
4 + 2 = High Performance
Primary Management
Practices (4)
 Strategy
 Execution
 Culture
 Structure
Secondary Management
Practices (2)
 Talent
 Innovation
 Leadership
 Mergers & Partnerships
Nohria, N., Joyce, W., & Robinson, B.,What Really Works, HBR, July 2003.

9. Benchmarking Successful Organisations
7 Keys to High Performance
 Performance Management
System
 Performance Culture
 Manager - Employee Interaction
 Formal Performance Review
 Informal Performance Feedback
 Day to Day Work
 Job Opportunities
NB: The research found that although financial incentives contribute to retention
they have less impact on high performance
Corporate Leadership Council, Benchmarking The High Performance
Organisation, 2003.

10. Building the Right Culture
 “No culture or mix of cultures is bad or wrong in itself,
only inappropriate to its circumstances” (Handy, 1995).
 It is less about about creating a “…fun environment and
more about championing high level performance and
ethical behaviour. In winning organisations, everyone
works at the highest level” (Nohria, Joyce, Roberson,
2003).
 In high performance cultures, talent is identified &
utilised, performance is rewarded, potential is developed
and everyone is accountable for outcomes.

11. Investing in Cultural Development
 “…getting culture right has virtually replaced cost cutting
rhetoric in senior management circles in the new
millennium.”
 Australia’s blue chips across a range of industries are
investing and engaging in cultural development.
 It’s not about “…touchy–feely hugging sessions.”
 It is about high performance, ownership, trust,
transparency, accountability, empowerment, better
systems, creativity, performance leadership, integrity,
courage, respect, building communities and bottom line
results.
Fox, C., Workers By Design, AFR Boss, August 2003.

12. HR as a Strategic Business Partner

13. Developing & Implementing Business Strategy
 Strategy is about finding the match
between what an organisation can do -
internal strengths and weaknesses - and
what it might do - external opportunities
and threats (Arrow, 1980).
 Strategy is also about matching,
committing and adapting significant
resources – financial, people, physical,
technology etc.
 At the heart of strategy is people…
organisations don’t implement strategy,
people do.

14. Levels of Strategy
 Corporate strategy – growth,
portfolio, value proposition, position
 Business strategy – growth,
products & services, target clients &
markets, position in industry
 Business unit strategy – business
unit activities
 Personal strategy – personal
contribution, personal goals and
behaviours
Hubbard, G., Samuel, D., Heap, S., Cocks, G., The First XI: Winning
Organisations in Australia, 2002.

15. Where does HR fit?
 Acting as operational managers vs business
partners
 Known as personnel management vs strategic
human resource management
 Defined by what HR does vs what HR delivers
 Providing support vs integrating with firm
strategic development and implementation to
achieve successful outcomes
 Transactional vs transformational facilitator
 File management & employee welfare vs
strategy and organisational culture focus
Urlich, D., A New Mandate for Human Resources, HBR, Jan-Feb 1998.

16. Acting as a Business Partner
 Member of top executive team
 Contributor to strategy development and
implementation
 Strategy reflects an understanding of people
capabilities within the organisation
 Measures are identified to enhance capabilities
 Leaders are accountable for managing and
developing people capabilities
 People are engaged and committed
Booth, A., A Look At Strategic Human Resource Management, Agenda, AIM,
August 2003.

17. Developing Winning People Strategies
Within Your Organisation

18. Developing Your Culture to Realise your
Business Strategy
 Leadership team engagement and
commitment
 Diagnosis & analysis - current state,
future state, causal factors of current
state, levers for change to achieve
future state
 Cultural development plan including
alignment of organisational systems,
processes and structures
 Communication
 Implementation
 Review & evaluation

19. Inspirational Leadership
 “..the only thing of real importance that
leaders do is to create and manage culture and the unique
talent of leaders is to work with culture” (Schein, 1992).
 “Culture is not a job a CEO can delegate.You will get the
behaviour you tolerate” (McGilvary, CEO, Bayer, 2003).
 “Culture is the most important driver of organisational
performance. I spend 60% of my time on people, leadership
and culture” (Cairns, CEO, Lion Nathan, 2001).
 BHP Charter: Every employee starts each day with a sense of
purpose and ends each day with a sense of accomplishment
(Anderson, CEO, BHP, 1998).

20. Attract, Retain and Develop the Best People
to Realise your Business Strategy
 Identification of core organisational
competencies
 Recruitment of people with capabilities, potential
and organisational fit
 Open, regular and constructive performance
feedback & development
 Reward & recognition linked to individual, team
and organisational outcomes
 Ongoing formal & informal learning &
development opportunities
 Practical and supportive career development
 Commitment to succession leadership including
development and assessment centres

21. Creating a People Value Proposition
2002 Compelling job attributes research
 manager quality*
 external equity*
 bonus*
 travel
 promotion opportunity
 internal equity
 flexible work environment
Other top attributes from 1999 research
 base pay
 hours worked
 job fit
 retirement benefits,
 empowerment
 location
* Appeared in both studies
Corporate Leadership Council, Benchmarking The High Performance
Organisation, 2003.

22. Emerging Trends

23. Where is HR now?
 Adoption of SHRM has been slow
 SHRM has not always been accepted by key organisational players
 Often seen as only providing administrative support & a functional role
 Some HR practitioners still have a short term focus
 Perception is that HR practitioners are often lacking the commercial
skills to assist with strategic planning
 Difficult to specify a direct relationship between certain people
practices & organisational performance
 HR practitioners are often lower paid than executives in similar
positions in the business
 HR practitioners often have limited exposure to a range of business
experiences
 Perceived effectiveness of the contribution of HR to organisational
performance & strategic outcomes is moderate to fair
Michelson,G., & Kramer, R.,The State of HRM in Australia: Progress & Prospects,
Asiapacific Journal of Human Resources, August 2003.

24. Emerging Issues
 Different workplace expectations - Gen X & Y
 Shortage of qualified and talented people as fewer people
entering the workforce
 More people living longer with capability & a need to work to an
older age
 More focus by people on building social capital
 Less secure and continuous employment & less vertical career
structures
 Outsourcing of administrative functions
 Need to manage even more flexible work arrangements
 Need to continue to address the issues of diversity in the
workplace
 Increase in managing global and transitional teams
 Increasing shareholder demands for corporate sustainability

25. Where is HR heading?
 Significant role in strategic development, strategic
implementation and change management
 Effective balancing of short & long term outcomes
 Constant reassessment of HR theory and practices
 Flexible people management
 Role in corporate social responsibility development
 Alignment of all people and business practices
 Less HR people, as line managers take up more people management
responsibilities
 Outsourcing of some HR functions that are deemed to have less strategic
relevance
 HR practitioners who are flexible, adaptable and have cross functional
experience with a focus on the acquisition of business acumen, change
management and team leadership capabilities
Michelson,G., & Kramer, R.,The State of HRM in Australia: Progress & Prospects,
Asiapacific Journal of Human Resources, August 2003.

26. Becoming an Employer of Choice:
Mapping the Practices of a Winning
Organisation
Liz Griffin
Senior Manager
Organisational Development