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Business Issues and The Contexts of HR (5CHR)

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Learning Outcomes and Assessment Criteria

1. Understand the key contemporary business issues and main external

factors affecting different organisations and the impact on HR

 1.1 Assess a range of different factors which impact on an organisation’s

business and its HR function

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Learning Outcomes and Assessment Criteria (continued)

3. Know how to identify and respond to changes in the business

environment

 3.1 Evaluate business performance and the role of HR in business

planning and the change management agenda

 3.2 Assess and utilise different sources of business and contextual data

for planning purposes

Assignment Briefing

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Assessment (3,900 words)

You have been asked by your CIPD Branch to produce a paper for delegates

attending a conference titled: ‘The evolving role of HR in the contemporary business

world’. In your paper, you should include the following:

 An analysis of some (three or four) of the major forces which shape the HR

agenda e.g. models of the HR function, HR strategies, insights and solutions to

support business performance, and stakeholder expectations. (AC 2.1)

 Compare at least two different tools for analysing the business environment e.g.

SWOT, PESTLE, Porter’s 5 Forces etc. (AC 2.2) (A full PESTLE and SWOT

should be included in the Appendices as supporting evidence)

 Assess a range of different factors (at least three or four) which impact on an

organisation’s business and its HR function. You should include examples of

external and internal factors to illustrate the different types of impact. (AC1.1)

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Assessment (continued)

 Summarise the key stages in strategy formulation and implementation with

reference to a model from the literature. You should also refer to the role of HR in

each of the stages and in particular, highlight HR’s contribution to business ethics

and accountability. (AC 2.3 and 2.4)

 Give some examples of how business performance can be evaluated, making

reference to traditional and modern indicators. You should make particular

reference to the role of HR in business planning and change management with some

examples to illustrate HR’s key role. E.g. HR as a change agent, etc. (AC 3.1)

 Explain how different sources of business and contextual data can be assessed

and utilised for planning purposes e.g. internal information within the organisation

including HR metrics (i.e. HR costs, productivity, etc), industry information (i.e trends

in HR, competitive information, etc). (AC 3.2)

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Assessment (continued)

Evidence to be produced/required

A written paper of approximately 3,900 words in total.

You should relate academic concepts, theories and professional practice to the way

organisations operate, in a critical and informed way, and with reference to key texts,

articles and other publications and by using organisational examples for illustration.

All reference sources should be acknowledged correctly and a bibliography provided

where appropriate (these should be excluded from the word count). Demonstrating

evidence of wider reading through appropriate referencing will improve your answer and

increase the likelihood of your work achieving a ‘Pass’.

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Submission Checklist

1. Assignment Cover Sheet

2. 3,900 word paper

3. References / Bibliography

4. PESTLE, SWOT and any other appendices

5. Updated Development Plan

6. Updated Key Learning Summary

Learning Outcome 1

Understand the Key

Contemporary Business

Issues and Main External

Factors Affecting Different

Organisations and The

Impact on HR

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1. Assess a range of different factors

which impact on an organisation’s

business and its HR function

2. Include examples of both external

and internal factors and

summarise the different types of

impact these have on the

organisation and HR

Activity 1 (10 mins) In Groups: Contemporary Factors Impacting Business

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The Organisational Environment

Global activities

Customer

Distributors

Products and

services

Suppliers

External factors

 Political

 Economic

 Social

 Technological

 Legal

 Environmental

 Ethical

Organisation

Internal factors

 Aims and strategic

objectives

 Structure and functions

 Values and norms (culture)

 SWOT

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Types of Organisation

 Ownership - private, public, voluntary, franchise

 Reach - local, national, regional, global

 Evolution - static, dynamic, adaptive (White, www.gdrc.org)

 Age - start up, immature, mature

 Client focus - B2B, B2C, B2G

 Production focus - manufacturing, service, etc

 Main delivery channel - on-line, face to face, etc

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Organisation Structural Types

Divisional

Group

Finance Sales Ops

Line and staff

Matrix DecentralisedDecentralised

Production Customer

Core staff

Peripheral staff

Flexible (functional, numerical)

(Atkinson,1984)

http://www.freedigitalphotos.net/images/Other_Business_Conce_g200-Organization_Chart_p42049.html

http://www.freedigitalphotos.net/images/Communications_and_N_g263-Social_Network_Concept_p43476.html

http://www.freedigitalphotos.net/images/Leadership_g403-Business_Group__p24931.html

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Organisational Culture

Artefacts

(visual org. structures and processes)

Espoused values

(strategies, goals, philosophies; type of

belief re; what is good/bad, desirable

undesirable; enduring; motivate behaviour

and guide decisions)

Basic underlying assumptions

(unconscious taken for granted beliefs,

perceptions, thoughts and feelings; ultimate

source of values and action)

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Understanding the Organisational Context

Customer / consumer

Geography

Technology

Basic underlying assumptions

Espoused values

Artefacts Group/team behavior

and norms

Leadership, management power,

politics

Communication and interaction

Product / service

Markets

History and age

Organisational

structure and

functions

Organisational

culture

Organisational

processes

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External factors

 Economic and market conditions

 Competitive contexts of organisations

 Demographic, social and

technological trends

 Globalisation and international factors

 Government policy and legal

regulation

Internal factors

 Stakeholders

 Financial health of the organisation

 Communications

Factors Impacting Organisations and HR

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Megatrends Explained

https://www.youtube.com/watch?v=V6sEDtTOzW8

Megatrends:

Transforming our region

https://www.youtube.com/watch?v=V6sEDtTOzW8

Learning outcome 2

Understand How

Organisational and HR

Strategies and Practices

are Shaped and Developed

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Analyse some of the key forces which

shape the HR agenda including:

 Models of the HR function

 HR strategies, insights and solutions to

support business performance

 Business ethics and accountability

You can apply this to any business you are

happy discussing. Think of the forces as

future dominant forces, and the factors

which we just discussed as the ones

impacting the business now.

Activity 2 (10 mins) In Groups: Key Forces Shaping the HR Agenda

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The Evolution of HRM

Strategic HRMHRMPersonnel Management

Minimum Critical

Total people-business

integration Business

person in HRM

Personnel

admin

Welfare Professionally

qualified Effective personnel

management/HRM

Organisation

designer

Business

partner

Internal

consultant

Qualified

- using tools

systematically

Helping

managers make

decisions

Working with

managers to

achieve their

business objectives

Ensuring HR strategy

is fully aligned with

business strategy

Process -

driven HR

Service -

driven HR

Next Generation

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Current priorities

 Employee engagement

 Managing change and cultural

transformation

 Managing performance

 Leadership development/capability

 Staff retention

 OD & D

Future priorities

 Leadership development/capability

 Employee engagement

 Workforce planning

 Managing change and cultural

transformation

 Creating a high performance culture

 Talent management

What Does Business Want from HR?

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The Ingredients of a Sustainable Organisational Performance- Oriented Culture (‘Shaping the Future, CIPD 2011)

Alignment

Leadership

Locus of

engagement Balance

between

short-term

and long

term focus

Assessment

& evaluation

Capability

building

Agility

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Ulrich’s HR Model

Strategic Partner

Change Agent

Administrative Expert

Employee Champion

Operational and day-to-day

Focus

Strategic and forward looking

Management

of people

Management

of processes

Activities

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The ‘Three-legged Stool’ Model

Shared services

‘Operational Executor’…..?

Centres of excellence

Strategic

business

partners

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Ulrich +15 Years

Figure 7: Alignment of business organization and HR organisation

Holding

company

Diversified/allied

business

Single business/

functional

organisation

B u s in

e s s o

rg a n is

a ti o n

HR organisation

Corporate

functional HR

Shared

Services

Dedicated

Most common

In sync

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Six Competencies for The Future of HR (Ulrich, 2012)

6competencies-hr-needs-for-today PM

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Six Competencies for The Future of HR (continued) (Ulrich, 2012)

Source: Adapted from Ulrich, D., Brockbank, W., Johnson, D., Sandholtz, K., & Younger, J. (2008.) Human Resource competencies: Mastery at the intersection of

people and business. Alexandria,

MA: Society for Human Resource Management

Figure 4: Competencies required by HR practitioners to connect appropriately with the socio-economic context.

Strategy

architectOrganisational

capabilities

Systems &

processes

Relationships

Talent MGR

or ORG

designer

Culture and

change

steward

Operational

executor

Business

ally

Credible

activist

Professionalism

Outside in culture -

what do others expect

from the business.

 Sustaining strategic agility

• Recognise external

trends and impact on

the business.

Doing HR with an attitude:

 Taking appropriate risk

 Providing candid

observations

 Influencing others

 Anticipating problems

Interpreting social context:

 Grasping the external political

environment

 Being able to clarify social issues that

may impact their industry

 Recognising the demographic trends

that influence their business

 Understanding government regulation

and how HR practices are affected by

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Models of The HR Function

 Centralised

 Decentralised

 Integrated

 Outsourced or insourced

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Better work and working lives

Insight on Changing Context

Science of Human

Behaviour

HR & Learning

Processes, Practices, Policies

Business Commercial Insight, and

Analytics

Framework For Future of HR (CIPD)

Work

Workforce

Workplace

HR metrics

Bus language of HR

Data analytics Behavioural science

Psychology

Neuroscience

Values and ethics

Systems thinking

Economy

Political and regulatory

Technologies

HR operating models

HR capabilities

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When HR does look at business

issues, it is:

• Not always trading on its’ insight

• Not always contributing its’ unique

and encompassing perspective

• Less confident in front of numbers

and fast business challenges

• Not undertaking appropriate

‘environmental scanning’

HR’s ‘Insight Gap’ - A Reality Check

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HR’s ‘Insight Gap’ - A Reality Check (continued)

REALITY CHECK:

CIPD research shows that

‘Curiosity’ is the lowest ranked

(used) behaviour by HR from

CIPD’s Profession Map

Insights,

strategy and

solutions

Service

delivery and

information

Employees

relations

Employee

engagement

Performance

and reward

Learning and

development

Resourcing

and talent

planning

Organisation

design

Organisation

development

Role model Curious

Decisive

thinker

Skilled

influencer

Personally

credible

Collaborative

Driven

to deliver

Courage to

challenge

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‘Organisational Insight’

'The translation of a new understanding of the organisation into creative and

relevant solutions, in the areas that matter most [for the business]‘

Deep organisational insight

 HR strategy more responsive and relevant movement away from service-driven

and process-driven function

 HR acts as an early warning system avoidance of HR ‘spin’ for senior managers

and a focus on reality

 HR becomes integral to business

Market savvy

(external)

Contextual savvy

(internal)

Business savvy

(internal/external)

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The HR Cycle of Influence

Increasing

inflation

Less disposable income Decrease

in demand

Wage pressure

Cost of raw materials

Employee engagement

Increase in

cost of

production

The Organisational Context

External factors

Internal factors

Business Strategy

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The 12 Business Savvy Insights

Foundation Insights

Understanding the

business model at

depth

Knowing where value is

created and destroyed

Understanding the top

and bottom line

Finding the people

improvement points

which drive value

Generating insight

from data and

evidence

Having an evidence and

data focus

Mining data for insight

inspiration and impact

Standing up to the

numbers and standing

the number up

Connecting with

curiosity purpose

and impact

Stepping outside the HR

boundary

Cultivating curiosity

through practice,

learning and networks

Actively scanning and

seeking opportunities

to collaborate and

connect

Leading with

integrity

consideration and

challenge

Operating with integrity

means business savvy

not boardroom servility

Serving stakeholders

not power structures

Challenging our own

impact first and

foremost

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Working in pairs if you are from the same

company and functional team.

‘Consider your own role or function and

self reflect to outline 1) where you or your

function is currently and 2) where it needs

to be to deal with changes in your sector,

marketplace or required to meet your

business strategy/aspirations.’

Activity 3 (8mins) In pairs

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Ethics

Ethics podcast 108 - HR Dec15

 So, what do we mean by Ethics?

 What role does HR play in maintaining ethical behaviours?

 How can HR role model for ethical behaviour?

www.cipd.co.uk/cipd-hr-profession/about-us/code-professional-conduct.aspx

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Principles and Characteristics of Highly Ethical Organisations

Organisations which are regarded as highly ethical have a number of characteristics

in common including:

1. Clear understanding of what constitutes integrity

2. Ground rules that respect the individual

3. Personal responsibility taken seriously

4. Alignment of performance management and reward systems with ethical

principles and the vision of integrity

5. Organisational policies, procedures and practices aligned with ethical principles

and vision and which have a consistent message (no mixed messages)

6. Recognition that managing ethics is an ongoing process not a one off initiative

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Principles and Characteristics of Highly Ethical Organisations (continued)

7. Ethics is integrated not a separate subject

8. Ethical behaviour is supported and role modelled from the top, and every person

in the organisation has their part to play

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The Role of HR in Ethics, Accountability and Good Governance

 CSR - the way in which an organisation meets its obligations to all

stakeholders and the wider community in a balance coherent fashion

 More than minimum legal compliance and not simply a marketing issue.

 Needs to be integrated into practice, values and goals of organisation

 HR practices strongly underpinned by ethical beliefs and CSR broadens the

HR agenda

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Environmental Scanning

‘Environmental scanning can be defined as the study and interpretation of the

political, economic, social and technological events and trends which influence a

business, an industry or even a total market’ Kroon, 1995)

Environmental

scanning

Scanning

strategies

Internal factors

Perceived

environmental change Strategic change

External Context/Changing Environment

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Assessing The External Environment - PESTLEE (STEEPLE)

Political

Economic

Social

Technological

Legal

Environmental

Ethical

Impact and relative

strength of impact

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Using PESTLEE Appropriately

PESTLEE analysis can be used for:

 Business and strategic planning / review

 Troubleshooting or crisis management

 Marketing planning

 Major organisational change

 Business and product / market development

 Research reports

 Departmental or individual perspective

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Advantages and Disadvantages of PESTLEE

Advantages Disadvantages

 It is a simple framework.

 It facilitates an understanding of

the wider business environment

 It encourages the development of

external and strategic thinking

 It can enable an organisation to

anticipate future business threats

and take action to avoid or

minimise their impact

 It can enable an organisation to

spot business opportunities and

exploit them fully

 Some users over simplify the amount of data used for decisions -

it is easy to use scant data

 To be effective this process needs to be undertaken on a regular

basis

 The best reviews require different people being involved, each

having a different perspective

 Access to quality, external data sources can be time consuming

and costly

 The pace of change makes it increasingly difficult to anticipate

developments that may affect an organisation in the future

 The risk of capturing too much data is that it may make it difficult to

see the wood for the trees and lead to ‘paralysis by analysis’

 The data used in the analysis may be based on assumptions that

subsequently prove to be unfounded (good and bad)

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Assessing The Internal Environment - SWOT Analysis

Internal factors

External factors

Strengths

Opportunities

Weaknesses

Threats

Positive

factors

Negative or

potentially

negative

factors

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Advantages and Disadvantages of SWOT

Advantages Disadvantages

 It is a simple four box framework

 It facilitates an understanding of the

strengths and weaknesses of the

organisation

 It encourages the development of

strategic thinking

 It enables a management team to focus

on strengths and build opportunities

 It can enable an organisation to anticipate

future business threats and take action to

avoid or minimise their impact

 It can enable an organisation to spot

business opportunities and exploit them

fully

 It is flexible

 Some users over-simplify the amount of data used for decisions - it is

easy to use scant data

 To be effective this process needs to be undertaken on a regular basis

 The best reviews require different people being involved, each having a

different perspective

 Access to quality internal data sources can be time consuming and

politically difficult (especially in more complex organisations - parent

company, etc)

 The pace of change makes it increasingly difficult to anticipate

developments that may affect an organisation in the future

 The risk of capturing too much data is that it may make it difficult to see

the wood for the trees and lead to ‘paralysis by analysis’

 The data used in the analysis may be based on assumptions that

subsequently prove to be unfounded (good and bad).

 It lacks detailed structure, so key elements may get missed

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 DO get other people involved to gain

multiple perspectives

 DO exploit any expertise and resources

that are already available within the

organisation

 DO use PESTLE analysis in conjunction

with other techniques, such as SWOT

analysis (standing for Strengths,

Weaknesses, Opportunities, Threats,

competitor analysis or scenario planning

etc

 DO incorporate your analysis within an

ongoing process for monitoring changes in

the business environment

 DON’T do this in isolation - a more

effective result is obtained with multiple

views

 DON’T jump to conclusions about the

future based on the past or the present

 DON’T get bogged down in collecting vast

amounts of detailed information without

analysing and understanding your findings

appropriately

Using PESTLEE and SWOT

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Porters Five Forces

Porter’s five forces model

BuyersSuppliers

New entrant

Substitutes

Industry competitors

Thereat of

new entrants

Bargaining

power of buyers

Threat of

substitutes

Bargaining

power of suppliers

Intensity of

rivalry

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Criticisms of Five Forces

 The framework is only a starting point or "checklist.“

 Analysis that uses it to the exclusion of specifics about a particular situation is

considered naïve

 Three dubious assumptions underlie the five forces:

o That buyers, competitors, and suppliers are unrelated and do not interact

and collude

o That the source of value is structural advantage (creating barriers to entry)

o That uncertainty is low, allowing participants in a market to plan for and

respond to competitive behaviour

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Companies Where The Five Forces Rule Does Not Necessarily Apply

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Compare two different tools for analysing

the business environment

Activity 4 (10 mins) In Groups: Tools for Analysing The Business Environment

Strategy

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What is Strategy?

Johnson and Scholes provide the following definition:

Strategy is the direction and scope of an organisation over the long term,

which achieves advantage for the organisation through its configuration of

resources within a changing environment and to fulfil stakeholder

expectations.

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Strategy Flowchart

Industry and

organisational analysis

Where are we now?

Mission, vision, and

target setting

Where do we want to be?

Competitive and

organisational actions

How do we

get there?

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The Three Levels of Strategy

Corporate Strategy

The business you should be in

Business Strategy

Tactics to beat the competition

Functional Strategy

Operational methods to implement the

tactics

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The 5 Word Strategy Process

Stage Strategic processes Questions

1. Analysis SWOT, PESTLE,

marketing mix, Porter,

Ansoff, staff and

organisational readiness

Where are we now?

Where have we come from?

What sort of shape are we in?

2. Formulation Scenario planning,

visioning process,

individual and group

innovation

Where do we want to get to?

Why do we want to get there?

What will it be like when we

arrive?

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The 5 Word Strategy Process (continued)

Stage Strategic processes Questions

3. Evaluation Criticality and risks,

checking figures, planning,

consulting stakeholders

Does the above make sense?

Can we do it in the timescales?

4. Implementation Problem solving,

force-field analysis,

leadership and change

management, motivation

and persuasion

How are we going to get there?

Who will we use?

What problems must we

overcome?

5. Control Checks, KPI’s, KRA’s,

goals, and milestones

How will we know when we

have got there?

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Strategic Business Planning

Vision

Mission

Strategic goals

Strategies

Tactical action plans and objectives

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The Benefits of Strategic Business Planning

 Defines the purpose of the organisation

 Establishment of realistic goals and objectives that are consistent with the

organisation’s mission

 Communicate those goals and objectives to the organisation’s stakeholders

 Encourages the development of a sense of shared ownership of the plan

 Effective use of resources

 Base from which progress can be measured

 Helps to build pride and corporate identity

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 Summarise the key stages in

strategic business planning, and

identify where your HR function

impacts currently

 Be ready to discuss from flip chart

in 10 minutes

Activity 5 (10mins) In Groups: Key Stages in Strategic Business Planning

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Strategic Management - How HR Can Support, Contribute and Influence

The Organisational Context

External factors (e.g.. inflation, interest rates,

unemployment, etc)

Now

Internal factors (‘contextual savvy’)

(e.g.. core values, management and financial

accounts, maturity, risk, dynamics, etc)

Business Objectives Want to be

Emergent

strategy

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HR Contribution to Strategy

Business

Strategy

Business

Objectives

Strategy Finance SalesOperations

Relations Reward L&DResourcing

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Developing an Effective HR Strategy

1. Aligning business and HR needs

2. Identifying key HR interventions to meet business needs

3. Instigating a robust organizational - wide performance management

system/process

4. Aligning organisational design and structure

5. Resourcing strategically - external labour market

6. Organisational development - internal labour market, talent planning, HR

planning, succession planning, etc

7. Determining effective reward (total) strategies

8. Ensuring organisational ‘cultural fit’

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Developing an Effective HR Strategy (continued)

STOP - What should we stop doing because it does not add

value?

CONTINUE - What are we already doing that supports the

business plan?

START - What are we not doing yet, that the business needs

from us?

Learning outcome 3

Know How to Identify and

Respond to Changes in

The Business Environment

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Effectiveness vs Efficiency

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‘Pillars’ of HR Metrics

Historical metrics

Real-time metrics

Forward-looking metrics

Profit - making / added

value

Cost reduction Cost avoidance

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Strategically

 Measure contribution: benefits/cost

and evidence based decision-making

 Create HR accountability

 Deliver tangible results to benefit

stakeholders

Tactically

 Insight on the impact of

compensation increases on employee

performance

 Identify personality traits and

competencies which lead to high

performance

 Determine factors which lead to

employee engagement and retention

 Minimise absenteeism

Why Measure HR? Theory vs Reality

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Types of HR Measures

HR Measures

HR Effectiveness

HR EfficiencyHR Impact

EG: (Future)

Strategic impact (progress against

organisational priorities and KPI’s,

stakeholder satisfaction)

Business unit level change outcomes

(change initiatives, achievement of

medium term objectives)

Operational level performance

measures and targets.

EG: (Modern)

Differences in performance

between internal and external

hires

Development of priority skills

and knowledge for current and

future business priorities

Effectiveness of well being

provision on talent retention and

performance

EG: (Traditional)

Time to hire

Training spend per employee

Absence levels

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Determining The Success of HR’s Contribution

 Integrate HR strategy with business strategy (vertical and horizontal)

 Ability of organisation to identify, plan for and manage /respond to change

 Appropriate organisational design

 Degree of ‘future fit’ leaders and managers

 Effective succession planning and talent growth

 Cost effectiveness in all HR practices

 Relevant, effective and timely HR policies and procedures

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HR’s Role in Business Planning

 Environmental scanning for factors impacting on people management directly

or indirectly

 Organisational design and capability

 HR planning, resourcing and succession planning - business sustainability

 Developing and communicating organisational vision

 Establishing (and being guardian of) organisational values

 Business continuity planning and responsiveness

 ‘Strategising’ employee reward, relations, learning and development, talent

management

 Planning performance management in accordance with business objectives

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Types of Change

 Emergent

 Developmental

 Transitional

 Transformational

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Planning Change

Organisational status quo Perceived need

for change (vision)

Senior management create plan

Vision strategy / culture

Unveil plan / seek buy-in

Implementation by middle

management

New ways of working adopted

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Impact of Change on Employees

Individual level:

 Each individual reacts differently to change

 Fears and concerns over job role and security of employment

Departmental/team level (restructuring):

 Changes in composition and roles - fears over loss of colleagues, lack of

clarity in role, extra workload, unable to meet new standards of role (lack of

skills/capability), etc

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Impact of Change on Employees (continued)

Organisational level (restructuring; relocation; mergers and takeovers):

 Fears over loss of colleagues, new management, lack of clarity in role, extra

workload, new ways of working, blending organisational cultures, relocation of

workplace, etc

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Managing Change

Unfreezing the current state of affairs

Transition to the new state

Re-freezing or stabilising the changes to make them permanent

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Force - Field Analysis

Current state Proposed change

Driving forces Resisting factors

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Kotter’s Change Process

1. Establish and create sense of urgency

2. Create a powerful coalition

3. Develop the guiding vision and strategy

4. Communicate the vision

5. Remove obstacles

6. Generate short-term wins

7. Consolidate improvements

8. Anchor new vision and strategy

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 Identify examples of how change

can be managed, making

reference to models seen, and

referring to individual,

departmental and organisational

change

 Identify the role of HR in managing

change. What type of activities

might HR be involved with?

Activity 6 (15mins) In Groups: Change Management

PwC

The Transition Curve

Energy more internally focused Energy more externally focused

1.Immobilisation:

Losing focus

Shock Fear & loss

Numbness Daze 2.Denial:

Euphoria

Confused Coping

Minimising

Withdrawing 3.Incompetence

awareness:

Turbulent times

Blame self / others Feelings

of dread / helplessness /

apathy / anger

4.Acceptance

6.Search for

meaning

Discovery &

learning

Optimism Hope

Renewed energy

7.Integration

Feelings of

satisfaction

Holding on - fighting Disintegration Letting go Moving on - reintegration

5.Testing

PwC

‘Seven C’s of Change’ and The Role of HR

1. Choosing a team

2. Crafting the vision and the path

3. Connecting organisation-wide change

4. Consulting stakeholders

5. Communicating

6. Coping with change

7. Capturing learning

PwC

Role of HR in Change

 Involvement at the initial stage in the project team

 Identifying any skills gaps, training needs, new posts, working practices and

so on

 Balancing out long/short-term goals with broader strategic needs

 Assessing the impact of change across divisions

 Negotiating and engaging across various stakeholders

 Understanding how to communicate to various groups

 Helping people cope with change, performance management and

engagement / motivation throughout

PwC

 Identify examples of how change

can be managed, making

reference to models seen, and

referring to individual,

departmental and organisational

change

 Identify the role of HR in managing

change. What type of activities

might HR be involved with?

Activity 7 (10mins) In Groups: Business Performance Evaluation

PwC

How Does The Organisation Measure Success?

Financial

(profit/loss, ROI/ROE

assets, share price)

Customer service &

customer retention

Product growth, brand

strength & market

Process efficiency

Productivity

Reputation

‘Human capital’

(capability)

Employee

engagement

Employee costs

Indirect HR contribution

Direct HR contribution

PwC

The Balance Scorecard

 Revenue

 Expenses

 Net Income

 Cash flow

 Asset value

 Customer satisfaction

 Customer retention

 Market share

 Brand strength

 Inventory

 Orders

 Resource allocation

 Cycle time

 Quality control

 Employee satisfaction

 Employee turnover

 Employee skills

 Employee education

Financial

perspective

Employee

perspective

Internal

process

perspective

Customer

perspective

PwC

Sources of Business Data and Information

Internal Information

 Management and financial accounts (assets/liabilities, revenue streams, cost

centres, profit, loss, etc)

 Quality standards of products/services

 Customer sales history and profiling

 Employee records (remuneration, skills and experience, training records, etc)

 Cost data associated with business processes (e.g. manufacturing product,

suppliers, distributors, etc)

 Production data (e.g. machines, capacity, repair record, etc)

 Customer analysis (e.g. calls received and missed)

 Informal (e.g. staff and management meetings)

PwC

Sources of Business Data and Information (continued)

External Information

 Information relating to the way a business should undertake its activities

(e.g. tax, legislative / regulatory compliance)

 Information (self generated and / or purchased externally) about the markets

in which a business operates - ‘market intelligence’ through market

research - understanding consumer needs and opinions; reducing the risk of

product or service failure re; demand; forecast future trends (e.g. KEYNOTE,

AOC, Glassdoor, D&B and MINTEL)

PwC

Analysing, Evaluating and Drawing Conclusions from Complex Data

 Ratio analysis (financial):

o Liquidity (e.g. current assets vs. current liabilities; net working capital)

o Profitability (e.g. ROI; profit margin, earnings per share (EPS), etc)

o Efficiency (e.g. stock turnover, etc)

o Leverage/gearing (e.g. debt to equity etc)

 Non financial - spotting trends/patterns; using feasibility studies; regression

analysis, correlation co-efficient techniques, etc)

PwC

1. Explain how different sources of

business and contextual data can

be assessed and utilised for

planning purposes

2. Include examples of both internal

and industry information and how

these can be used for planning

purposes

Activity 8 (15mins) In Groups: Sources of Business Data

Assessment Briefing