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The business world - as it relates to strategy and human capital.

Assessing your HR

Tuesday, January 29, 2008


Is your company part of the 1 in 3 organizations which make no effort to measure their human resource investments?

7 out of 10 respondents to the survey above make an attempt to measure the effectiveness of their HR department.

Half of these 7 out of 10 respondents use formal methods to measure human resource performance. The other half use informal methods for measurement.

The remaining 3 out of 10 respondents do nothing within their company to track the effectiveness of their human capital investments.

Read more commentary on the survey in John Ingham's Strategic Human Capital Blog

Size doesn't matter

Wednesday, January 23, 2008


Google landed first place in FORTUNE Magazine's 100 Best Employers to Work For list yet again this year.

No surprise really, given all the perks of working at the Googleplex. But beyond the free food and other discounted benefits like massages and gym facilities, the company is cited for the amount of free time and latitude it gives its employees to pursue new ideas of their interest.

This year's list was composed by...

82% of companies with growing employment

10% of companies that experienced employment growth larger than 20%

37% of companies with workforces larger than 10,000 employees

It is indeed possible to be big, grow quickly and still maintain employee satisfaction, despite what we hear to the contrary. In fact the top two companies on the list, Google and Quicken Loans experienced employment growth in the range of 60% and 68% respectively.

See the full list here...

Trendy funerals

Tuesday, January 15, 2008

You've heard about all the wild schemes for employee well-being and corporate team-building... Rock-climbing, workplace massages, poem writing, song singing and other creative benefits.

There's another one to add to the list from an Associated Press article.

Workers and students in South Korea are nailing themselves shut in coffins to renew their lives.

The mock death inspires participants to reflect on their past and plan out their future. It's called "well-dying", much like North Americans are concerned with "well-being".

Samsung Electronics, South Korea's largest company, sent over 900 factory workers to mock funerals. The company's human resource staff is convinced that these activities improves worker performance.

But whether or not you buy the concept behind these activities, there was an interesting point in this article:
Experts see the well-being and well-dying trend as a sign that South Koreans have grown affluent enough to be able to consider quality-of-life issues. But some dismiss services such as the fake funerals as moneymaking ventures.

For years companies have outsourced back-office jobs and other tasks to countries around the world.

Late last year we saw some of the unexpected backlash of outsourcing in the form of poor quality control leading to defective and dangerous toys. Toy companies were caught off guard by the risk.

The well-being trend is also sneaking up on global employers.

While South Korea may be an example of a country well under development, other nations are only beginning to display quality of life concerns. Yet most companies still look to overseas labour markets for cost-reductions and nothing else... and these companies will also be caught off guard when they face local competition for talent.

Canada's 50 Best Employers

Friday, January 11, 2008


It's that time of the year again.

Canada's 50 best employers have been ranked in an annual survey to be published in this month's Globe and Mail's Report on Business magazine.

This year's top performers...

1) EllisDon Corporation
2) Wellington West Holdings Inc.
3) PCL Constructors Inc.
4) Bennett Jones LLP
5) Edward Jones Canada
6) JTI-Macdonald Corp.
7) Farm Credit Canada
8) Envision Financial
9) Intuit Canada
10) GlaxoSmithKline Inc.

The survey also examined other components of the labour market in Canada. An interesting point from the report...

Alberta is once again the province with the lowest levels of employee engagement, being particularly affected by the labour shortage.

Ted Emond, a consultant at Hewitt Associates observed:
To retain employees, the immediate reaction of some employers, particularly in Alberta, was to offer higher salaries. However, in a tight labour market, provided pay is competitive, other aspects of the job become more important in an employee's decision to join or stay with an organization.

Flexibility in work hours came out as a big issue to many employees seeking a better work/life balance.

We've talked about this often in our blog. Employers like Best Buy and others who are innovating with 100% flex time are building a name for themselves with employees.

Let's face it... with more and more business conducted on a global scale, flex time will eventually be a requirement to deal with clients and customers in different time zones. Some employees are currently dealing with this problem by spilling work over to evenings and other non-regular times.

As our labour market continues to tighten in Canada, it will be the companies who take these subtle issues into consideration that will come ahead in the competition for talent.

The New Paradigm

Thursday, January 10, 2008

I remember sitting in a room with a group of managers from a client in the automotive parts sector when the trouble really started for the Big 3.

Ford and GM were starting to demand price cuts on parts, and the parts manufacturer was having trouble dealing with the news.

I told them to figure out how to make parts (and profit) based on half of the percentage of what GM and Ford were asking for, and be ahead of their competitors...

Change the paradigm, before someone changes it for you...

The same thing is happening in India today, compliments of another automobile company,..TATA. Never heard of them? Consider TATA to be the GE of India, and the likely purchaser of Jaguar and Land Rover.

Their paradigm shift... for the cost of an optional drop-down DVD player, or trim upgrade on your typical car... they're giving you the whole car...

Introducting the $2,500 Nano...




What's your $2,500 revolution...

The politics of business

Tuesday, January 08, 2008

There's a business lesson in politics.

You can find it in the Iowa and New Hampshire US election primaries.

It's about making people buy into change. There is a mood for change in the US.

And change doesn't mean a different political party or different ideologies. We're talking about a change in leadership style. We're talking about setting new goals for a country. Perhaps even about finding a new purpose for the US.

The leaders who are getting ahead understand that it's about the way they communicate their personality and not the sum of their credentials, experience or ideologies.

It's the same leadership qualities needed for a corporate turnaround or to manage during a period of transition.

From FastCompany's Expert Blog:
This type of oratorical skill is routinely dismissed by officeholder wannabes and their campaigns as not meriting much attention. (It's also dismissed in the business world.) The only thing that should count, they think, is intellectual skill, political achievements and, perhaps, experience.

There are a number of strong communicators on both sides of the political spectrum to use as examples.

Obama...
Obama, for his part, is untested and has served in the Senate for only a couple of years. His oratory is light on detail and issues, preferring to rely mostly on broad, inspirational and aspirational topics such as hope and change.

And Huckabee...
Huckabee has a vastly different style, but is equally effective. An affable and quick-witted communicator, Huckabee's brilliance is in his ability to persuade voters that he's one of them, a regular guy, sensitive to the average American's needs and plight.

The mood for change is easier to detect in politics though.

Generally speaking, unless you're terribly dissatisfied, it's a bit more complicated to leave your country than to leave your company. So people tend to organize, protest and vote as a reflection of unhappiness.

It plays right into the hands of politicians.

Stagnant business leaders deal with high turnover instead and it's difficult to inspire people rushing through a revolving door. But the point still stands.

People do matter

Friday, January 04, 2008


With the holiday shopping season coming to a close, retailers are counting the fruits of their sales.

Not Circuit City though. The U.S. consumer electronics retailer is learning a hard lesson in human resources.

In a move that would make Donald Trump jealous, the company fired its 3,400 top sellers, who are at the higher end of their payscale.

Sales took a sharp drop and Circuit City posted a $207 million 3Q loss in late December. A moderate loss is expected next quarter for what should usually be the most profitable period in retail. Meanwhile sales at rival Best Buy surged 52%.

The problem here is obvious.

The lower-payscale staff at Circuit City aren't as competent in closing sales. Neither are they finding much success in upselling products or attaching warranties to purchases.

2008 news flash: The quality of the people in your organization does matter.

Happy New Media Year


First there was YouTube, then there were the YouTube Debates.

Now, new media, specifically open-access free video, is gaining considerable legitimacy.

For example, here is Japanese Priminister Yasuo Fukuda's New Years Address - on YouTube, shot specifically FOR YouTube..



This on the heels of Queen Elizabeth's Christmas Speech which kicked off The Royal Channel on YouTube...



Things are changing. To parapharse the Queen, the key is to learn what to embrace, and what to discard...

Happy New Year..

Wednesday, January 02, 2008



Welcome to 2008.

I just thought you might be interested to know that as of 10:33 this morning.. Canada's 100 top-paid CEOs have likely earned more than your annual salary.. yikes...

Most Canadians are heading back into work with a mound of Christmas bills and financial worries, but for Canada's best-paid 100 CEOs, it's like Santa Claus delivers every nine hours," CCPA research associate Hugh Mackenzie said in a statement.


Click here to read the full story from Canada.com

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It's a new year!



This is John Ingham's Human Capital Management Value Triangle. Most companies never get past the bottom level of "personnel management".

In 2008, make it a goal to extend your HR department's reach to the top tier of this triangle. Your HR department isn't there just to support the business. It can create its own value for the company and have a direct role in driving business objectives.

We wish you a good start into 2008.