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manasement

THE INTERVIEW

'It is possible to manase disruptive change and take staff with you' Stephen Dando, executive vice-president and chief HR officer, Thomson Reuters by Tim Smedley

f there's truth in the phrase "a change is as good as a rest", then Stephen Dando should be one of the most rested businessmen in Britain. Major rjrganisational change appears to have stalked him throughout his career. "The ones that stand

out are the merger of Guinness and Grand Met to form Diageo; the transformational work at the BBC under Greg Dyke, followed by the Hutton crisis; and then the huge integration of Thomson and Reuters. " He pauses, as if appreciating for the first time their cumulative weight, before adding, "That probably

z adds up to my fair share!" S First, go back to a recession-ravaged Britain in 1984, 9 where strikes are common and job opportunities scarce S (sound familiar?). A young Dando, fresh from

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university, is considering scant career options. "You considered yourself lucky to get a job nut of university - you did not take that for granted," says Dando, his Stirhngshire accent somewhat softened by years in England. HR "seemed interesting", and the automotive industry a good place to start (see CV, facing page).

Fast-forward to 1989, and Dando is in the linal interview for a generalist HR role with United Distillers (UD), part of Guinness. It's a formality, merely the UD HR director wanting to give the appointment "his blessing". Dando tells him he wants to move on from his current empk)yer (manufacturing firm Ferranti) because of a lack of management development opportunities. So strong were his feelings concerning development that the

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TheCV Name: Stephen Dando

Education: MBA, University of Edinburgh (1988-1990); BA (Hons), Business Law and Administration. University of Strathdyde (1980-8A)

Honours: 2010: CiPD vice-president for international affairs

Career Thomson Reuters 2008 t o present: executive vfce-president and chief human resources officer

Reuters : group HR director

I4t6: director, people

ageo 2 0 0 0 - 0 1 : global HR director 1999-2000: HR director, Europe 1997-99: group management development director

Guinness, United Distillers 1995-97: management development director 199^1 -95: European personnel manager 1991-9^1: UK personnel director 1990-91: open learning manager, operations division "•""9-90: training and management development

.Kiger, distilling operations

Ferranti International 1985-89: senior personnel officer

Austin Rover Group 198^-85: graduate trainee

tonal infbrmatian/interests ried with two children; supports Futham FC; entaffairs; running/keeping fit; golf

'Creating a community within a business enhances people's enjoyment, and also helps to rethin great people'

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HR director decided to reject him for the generalist HR role, and hired him instead lo head a training and development (T&D) section - a post with far more seniority. "I said: 'Great - but i don't actnaily icnow anything about T&D', " recounts Dando. "And he said that wouid be a positive advantage! "

Dando attributes his illustrious rise in the HR profession, in part, to people taking such risks on him at key moments. After a few years in T&D, it happened again. The global HR director of UD sponsored Dando's appointment as HR director for the UK business. "I was fairly young to get the role. But when people take a calculated risk on you, you are determined to repay that trust."

The major turning point, ho'wever, came when the company - now merged with Grand Metropolitan and rebranded Diageo - appointed Dando into a Europe-wide role, in charge of integrating the business across 15 countries, "I'd gone from a highly structured job, part of the operating rhythm of a very structured business, to sitting with a blank white board on the wall and thinking: 'What's the organisational blueprint for Europe going to be?" That's quite scary."

His transition was only made possible by the supportive culture of Diageo. he says. "This was a company that knew how to build up people's careers. There was a great, supportive peer group - the people I worked with in HR were of an extremely high order. " To hear him name his Diageo contemporaries, it's hard to think of a higher order. They include: Chris Bones, now dean at Henley Business School; Tanith Dodge, HRD at Marks & Spencer: David Guise, group HRD at Home Retail; Mike Wescott, group HRD at National Grid; and Alex Wilson, group HRD at BT. Yet the one job they all craved at Diageo - group HRD - wasn't up for grabs. "Gareth Willi;mis (group HRD Diageo) didn't iook to me iike he was going an>'where any time soon. And i was right," says Dando, letting out a high-pitched laugh. "He's still there!"

He describes his decision to leave Diageo as the hardest career decision he's ever had to make. Those years, and Williams' tutelage, were cleariy formative for his business and HR outlook. "The importance of a network stayed with me," he says. "Greating a community within a business enhances people's enjoyment, and aiso helps to retain great people."

Next, the BBG. PM profiled Dando In 2004 (www.peoplemanagement.co.uk/ bbclO4), not long after the now historic Hutton inquiry - which followed the suicide of Dr David Kelly - condemned the BBG and sparked the resignation of Greg Dyke. Does he look at the BBG now, with continuing controversy over management pay, channel closures and star sackings, and breathe a sigh of... He cuts the question short: "It's the question everyone asks. Whenever something blows up at the BBG, people say, 'Gosh, you must be happy you're not there' but 1 say no, that's the reality of life at the BBG. It's a large, at times frustrating.

usually very interesting, high-profile organisation." The Hutton crisis he admits was acute - "arguably the biggest crisis the BBG has ever faced. But I look back and feel privileged to have led HR at the BBG for that tive-year period,"

Having successfully helped implement the ñrsi stages of the Mark Thomp.son era, he felt the time was right to move on. Somewhat perplexed over what might match his previous two employment chailenges, a phone call from Reuters - a highly respected international news and financial trading information agency of 19,000 staff distributed around the globe - offered one such opportunity. Within a

If you look broadly at the world of work there are lots of patterns that add up to a tightening of the avaüable talent pool

Dando on Generation Y "At Thomson Reuters we are trying to get our head around the idea of four generations in the workplace at the same time. You look at the expectations of Gen Y recruits (aged 18-30) - culture and values are incredibly important to them. They want to understand: what kind of place they arejoining, the environment you've created, the flexibility and development processes, and the work itself - so core to aur attraction proposition is intrinsically challenging, interesting work.

"I think things have changed. There's less willingness to take the trade-offs that our generation had to when we started out. There's less willingness to get your head down, work incredibly hard, and sacrifice other aspects of life. Now 1 hear a lot of younger people saying, "I want to work for an organisation tbat recognises tbat there are other things in my life that are important, and creates an environment which supports t h a t ' "

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year of Dando taking the job, he had formed a strong working relationship with the CEO, an American named Tom Glouer, who worked down the corridor from Daiido in the London Canary Wharf HQ,

Then came a big shock. The acquisition of Reuters by the US firm Thomson, a global provider of professional services, legal, healthcare and science information with 32,000 employees. "At that moment, the situation changed completely," says Dando, who says he had no inkling him.self of the deal beforehand. His colleague Glocer, unasually for the CEO of the acquired company, was announced as the CEO of the combined company, with Thomson's David Thomson as chairman. Dando's position as HR chief was also coniirmed early on.

But this was no rushed integration. A gap of almost a year followed between the announcement and the deal being signed and scaled. "There are restrictions un what you can do during that period, around sharing of commercial data and so on,"

]oined-up thinking: Dando has managed many periods of change, including the merger creating Thomson Reuters

Dando explains. "But one of the areas where you can do quite a lot is in t)rganisatiünal design, and the people side of the integration. It Ls a window of opportunity that is often denied in a fast intégration."

He looks back on that time as invaluable. His HR team worked on the purpose, vision and values of the new company. They also went through a "prospective" selection process for the company's top leaders. "Those prospective appointments could not take effect until the deal was closed. But it meant on day one we had 500 appointments ready to go at .senior level. In terms of hitting the ground running and clarity of decision making, it was hugely important,"

As with all integrations, there were job losses, "When you put two companies together, you don't need two corporate head offices, for example." says Dando. "We were as open, inclusive and transparent as we could be," The head office, of course, includes the HR function, where the issue was not only about people but also processes. Dando discovered a total of 42 different HR systems projects running. To achieve single processes for recruitment, performance management and talent development, was going to require some "serious heavy lifting".

An HR- led rallying call of "one company in one year". Dando believes, helped the company to unify and grow. In its first year, revenues were up by 8 per cent, generating a £1.8 billion cash flow. The first combined employee survey - typically a sore point for newiy merged companies •• saw increases in employee engagement from 79 per cent to 83 per cent, and again a year later to 87 per cent, Participation went up from 70 per cent to 80 per cent. "One of the things it tells you is that it is possible to manage diflicuit, compiex, disruptive change, and to take your employees with you and create a stronger organisation as a result," says Dando.

So you'd be forgiven for thinking we can leave it there. All, it seems, is dandy for Thomson Reuters and Stephen Dando - who has, incidentally, just been elected CIPD vice-president for international affairs. But you'd be wrong. Aithough he doesn't use the phrase, the almost forgotten "war for talent" lurks menacingly behind his words as he talks of the current and future challenges facing Thomson Reuters on a global scale.

"If you look more broadly at what is happening in the world of work, there are lots of patterns playing out that add up to a tightening of the available talent pool," warns Dando. "The talent equation is getting squeezed at both ends in a lot of markets. You see a tightening at the supply end - declining workforce participation, retirement patterns and so on. But there's also growing competition at the demand end - a lot of companies are increasingly aware that taient is one of the enduring sources of competitive advantage."

For a global company, this means a fundamental rethink of where to lay the talent pipelines. "We've gniwn significantly in parts of Asia - India, the Philippines, Thailand," describes Dando. "Like a iot of major companies, we're evolving our patterns of internationai career development. We've come from a heavy emphasis on British and American expat assignments, to putting more emphasis on growing indigenous talent in other parts of the world. We need to learn how to flow that talent around the company."

Mix that challenge with demographic changes and the perceived demands of Generation Y workers (see panel, facing pa^), and you can see how the global war for talent could significantly change the business landscape for years to come. It's a war where, it could be argued, only the largest will prevail. Thomson and Reuters clearly felt they would be stronger together. The brand awareness of the combined company, according to Interbrand ratings, is now far greater than either were as separate entities. Plus, says Dando, "At a stroke, the integration created more reasons why our taiented peopie shouid not have to leave the company to build their career." Put simply, both sides of the business now have one fewer rival to worry about.

But what of the role for HR in this brave new world? How can it best position itself to get a seat at the... Dando cuts the question short again: "1 personaiiy think as a profession we spend too much time being introspective. I cannot pick up a journai without reading 'how are we perceived?' - I'm shghtiy bemused and frustrated by it all. In my experience, the best HR people don't spend time agonising over whether they are 'adding value' - they know they are. Their colleagues know it. their business knows it," For once, refreshingly, let's leave it there. Ism

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