Strategic HR in Economic & Financial Crisis

Normally after profitable organization sense of economic or financial crisis or hit by one they tend to use the quick easy fix solution to the crisis that was practiced for decades now to reduce costs, we are not questioning this logic and rational thinking in economic and financial crisis so the organization can sustain its exixting and continue performing and delivering to its stakeholder and survive the competition in the market, but we are questioning what organization consider as cost to be cut and reduced and the answer for decades now is people.

Often organization resort in economic and financial crises to calculate costs and cut what they consider as high cost and threat for organization exixting in crisis time, but who make the decision about what count as cost and analyse based on numbers and figures only to make the cut in cost and reduced it often Chief Financial Officer and leaders focus on profit and share price, they identify and analyse the figures and point out to organization leader where, what and when to do the cut in cost, mostly the decision includs the layoff employees which is the golden pieces for quick fix to solve the problem.

What the leaders  and the Chief Financial Officer do not see is that the organization has invested in these employees during their working period and acquired the expertise, skills and appropriate behavior of the work. Most of them are able to contribute to provid solutions to overcome the crisis. The company can exploit their ideas, talents and competencies to reduce costs and persuade them to participate by abandoning certain privileges to overcome the crisis and transfer some of them to work in projects according to their talents and competencies, that will deliver innovative and creative solutions that surpass competitors.

The story of  Honeywell Furloughs struggle is a good example, wither to layof employees or provide unpaid leaves, the employees and leaders decided on unpaid leaves, regardless of some mistakes, the plan worked well for Honeywell and they overcome the crisis and not losing their most valuebale assessts employees.

The difference between the two approaches depends on wither the organization has strategic human resources that establish organization architect structure enabling to change with circumstances and is not rigid, install a system to capture the talents and competencies of employees in different layers of the organization and their potentials, invest and develop them, activate the role of leaders for inspiration, leadership and setting a clear vision and strategy and communicate it to all employees. This is what successful global organization do, leavrage on opportunities in crisis and not shrinking with the threats and miss as other organizations do.

Financial Statement The Blind Spot

One day I run into an executive of a profit organization and talked about the company's latest developments. He said  "we are currently reviewing financial statements such as income statement, balance sheet, financial offecir analysis , marketing and sales managers anaylsis to build future outlook and strategy". I said "well that is good but its not enough". He sat down moderately and looked at me and said "explain to me your point of view".

I told him the financial statements and information collected from the dealers directly from the market and customers is necessary and important to build a future strategic plan but it is not everything, for example If you put a program for new products, marketing and sales plan for the employees and managers to implement it and use the budget and resources required according to information and data as your measure, and you find out at the end of the year that sales are not as expected although everyone has implemented the program very carefully, how  you can explain the faults? The executive said maybe the product was defected or the marketing plan was not appropriate or the staff were not efficient in sale there are many variables to look for.

I said what if I told you that the plan was implemented as required but the customers have a negative experience with the staff of the product department because of system failure, they do not respond directly and quickly with the customers requirements and there are  delays in serving  the customer at the branches. The  executive replied how this could happen? I explain to him, because the system used by the staff is old, number of employees few compared to the size of the workload and the staff did not get proper training they just been briefed with the program and how to implement it, the executive said how I did not know about all that?

I said to him because this information was with the human resources that participated in the strategy as an executor and not as a strategic partner and decision maker like the financial offecir and marketing and sales manager who both provided you with previous information regarding only numbers and statisitcs but not the human the most important assessts in the organization to successed, the work environment and conidtions, the staff competency readiness. The executive start thinking does the human resources who is responsible for salaries, pensions and labor laws have this impact on strategy and oraganization?

This story is similar with many organization leaders who still see human resources as the function of processing employees welfare and benefits and following orders of leaders to adjust what they need in policies, procedures to fit organization need and strategy, but the reality today state that human resources is the heart of the company and part of its mind too to balance and rationlize the decision making and solving problems as well as facing challenges and leavragin on core competency of the organization to overcome competitors and grow in the market to sustain organization growth.

Human resources today consider as strategic partner, not only focus on outcomes but also on adding value to the organization's strategy, fullfiling vision and mission of the organization and work on enabling  implementation in the organization by making sure employees have the right competencies, maintaing positive organizational culture, communicating vision and mission and strategy to all levels making sure they addopt it and accepted, supporting employees development and career growth, algining organization with external environment, all these and more human resources can and will do by becoming strategic partner in the organization.  

Techniques for Professional Trainers Part II

With today advance technology and scene human mind and Neurology research and studies reveals many facts and corrected some ideas on how human mind work and learn.

These facts and discoveries also changed and affected training and trainers way of delivering, therefore knowing about human mind today for trainers has become the second techniques needed for professional trainers so they can deliver successful and beneficiary training experience. 

Scientists have discover that human mind has short-term memory and long-term memory like computer which previously known as conscious and unconscious mind.

The second technique depends on the research of the science of mind and Neurology.

Scientists divide the mind into sections, the logic mind, the emotional mind, the reptilian mind.

The logic mind is responsible for thinking, analyzing through the reception of information from the five senses and the emotional mind responsible for the translation of emotions, feelings and sensibilities, the reptilian mind responsible for protecting the human from the risks, survival, self-defense and take the place of logic mind at a glance in case of danger, that explain why a person get angry, aggressive and defensive.

The scientists discovered that the three minds are linked through neurons and the more the neurons get stronger through practicing and experience relating it to emotional the ability of a person to remember the information and skills increase and vise versa  the weaker the neurons it will decrease the ability of a person to remember information and skills.

Therefore, when we target the logic mind and emotional mind, we target is short-term memory which needs repeatedly to create a strong neurons to remember and relate to emotions.

When the experience is severe and dangerous, the reptilian mind takes the leadership from the logic mind and create a strong neuron with the emotional mind that is why painful and frightening, and great pleasure experiences  are easily remembered.

Trainer  in the training room needs to make the participants comfortable and relax state to make them ready for learning and apply  the of adult learning in his training delivery keeping in mind that participants need to make their own experience to in training room by practicing the knowledge and skills repeatedly to create a strong neuron experience and relate both logic and emotional mind with the learning experience, as well encouraging the participants to practice it after the training to make the neurons  stronger with more experience of logic and emotional mind.

When the trainer uses tools to create a nice atmosphere, but it is difficult for participants to understand how to link a game or fun exercise or funny material with training and learning objectives it will distract the logic mind from benefiting form the training experience because the it will only target the emotional mind which will create a neurons that only remember good funny memory.

Conversely, if the trainer focuses only on the logic mind and make the session dull and painful, the emotional mind will not work and thus will create or strengthen the neurons to remember information related to pain which will be hard to retract it since the pain will always be attached to it.

If the session becomes a muddle and sharp it will trigger the reptilian mind which will turn the participant into a defense and anger  this will increase the conflict and argument and turn the training room into battle field which will make the other participants not comfortable as well and make the training experience for all painful and loss the benefit.

Trainers today has huge responsibility to prepare and equip themselves with the right and proper trainer competencies and experience than what was known before.

Techniques for Professional Trainers Part I

Training become very fashion today, it becomes very hot filed for different people from different background, in this blog I will provide some techniques of how training and trainers should perform today using both science and art of interpersonal skills since we have passed the basic of train the train regarding the voice and tune used, the colors and dressing, to more focus on how actually human learn and train and benefit form what they learn and how the mind work with the emotion so we can really make the training experience beneficiary.  

The first techniques is "The adult Learning Theory":

Malcolm Shepherd Knowles (1913 – 1997) was an American educator well known for the use of the term Andragogy as synonymous to adult education. According to Malcolm Knowles, andragogy is the art and science of adult learning, thus andragogy refers to any form of adult learning.

Knowles’ 5 Assumptions Of Adult Learners:

The 5 assumptions is describing how the adult learning is different from child learning and by using these assumptions by trainer in his training he can trigger the experience of training and make it beneficiary. 

1. Self-Concept.
   
   
2. Adult Learner Experience.
   
   
3. Readiness to Learn.
   
   
4. Orientation to Learning.
   
   
5. Motivation to Learn.

Trainer should think and incorporate their training with these assumptions so the training experience for the participants can cater for their need to gain knowledge, skills, behavior and attitude so they can reflect it on their life.

To apply the adult learning Knowles has suggested 4 principles:

1. Adults need to be involved in the planning and evaluation of their instruction.
2. Experience (including mistakes) provides the basis for the learning activities.
3. Adults are most interested in learning subjects that have immediate relevance and impact to their job or personal life.
4. Adult learning is problem-centered rather than content-oriented.

The point here is that trainers are dealing with adult either employees, entrepreneurs, CEOs, leaders all those are adults and the way adult learn is more or less as Knowles suggested, but if the trainer is using the old concept of training where he is the star of the stage, Mr. know it all talking all the day and other they just listen or they just follow his thoughts this will be sad bad experience for those adults that will end with disaster or worse they will hate training and see it as waste of time and money.

Trainers must also today focus on specialization, today world are developing in all fields so fast than we can follow, and by the time we learn new knowledge, skills, or transmitting to new behavior a new and developed one come out faster than before, also trainer need to build up his experience and application to come out with his results and lessons learned so he can share it with others while he is training them since who is does not have it he cannot give it.

Working Hard or Working Smart or Working Creative

Date: 08 April 2017

Previously when someone want to be rich or have a business or try to raise his income they advise him to work hard, which mean he work two or three jobs in the same time or working part time or he just work overtime. Workers tend to work long hours and try to extend their working even in weekends, holidays and special holidays so they can have more income or grow their business. The time pass and new concepts and development in business occurred regarding productivity, excellence, cost ratios, quality and customer service, these new concepts changed the idea of working hard because they saw that working hard alone cant reach the goal or even it reach with high cost and waste of resources like time, material, human capital cost, therefore the concept of working smart has become known and advised instead.

Working smart means that you work with the resources you have, time, money, human capital and materials by following and implementing quality and excellence approaches and apply efficiency and effectiveness in work place, working smart concept is growing and being recommended in business world these days since its more logical to reach your goals and objectives by using with you have already without extra cost, resources or time, the use of this concept promote the perfect idea for business to not waste their available resources and use it to its potential and not add additional cost on their operation cost, but the question here arise about can workers work smart only? Can new recruited work smart once they join the organization? is working smart enough in business crisis or economic recession?

Although working smart is very beneficiary for business since its help in using the full potential if their resources but working smart alone cant make the business survive, for example new recruiters need to work hard on their selves in order to fully understand the business need and carry out their responsibilities in short time, but at the same time they need to work smart using the resources and ideas to reach the goals and objectives in minimal cost of time and resources, but even though businesses cant survive by working hard and smart alone they need to work creatively as well, in business the competition is very aggressive and this generate new challenges for other business to survive as well, so they try to create new services, products, technology and methodologies to stay in business, working creatively is another element business need to survive and to be competitive.

So does that mean businesses need to embed all these concepts in their workplace? The answer is yes and they also need to embed more concepts, there is no one methodology or model that suit all or solve all problems, businesses face many challenges and obstacles since their environment is dynamic, and by using one approach or model they cant face the other risks that the environment rise, therefore embedding different approaches in the business and deciding which to use will depend on the situation the business face.

Mohamed Alzayani

Assoc.CIPD and Assoc.IHRME Certified ROI for human capital development

The Oil of Tomorrow for GCC Countries

The oil of tomorrow for GCC Countries

Date: 01 April 2017

In the early 20^th century the oil was discovered in GCC countries but not until the late of 20^th century GCC countries benefited from the oil discovery after the British colonizing ended and independent granted to GCC countries, from that period the oil has become the wealth of past present and future for all GCC countries to develop the infrastructure, education, health and economic, until the economic fluctuation happened and crash oil prices many times and GCC countries suffered from recessions although it was not affected that much because the world economy was not globalized like today where every western economic crisis strike all countries, but it was still affecting the GCC and the economy.

The cycle of oil price crash continue throughout the 20^th century and the 21^st century as well, but in the 21^st century something happened it wasn’t happen before the oil prices went crazily up to $100 and more which made GCC countries rich more than they can imagine and things started to look promising and huge projects and economic changes been initiated, but in 2014 the cycle of  oil crisis crash strike again the prices went down again and the GCC countries entered into shock because they cant afford the economic changes and huge projects they instituted and they cant stop it as well. Especially that the region is in war with terrorism and political revolution in some countries that result in civil war which sucked the GCC countries budget into war as well and made it worse.

Today as after any oil price crisis crash there is a talk about diversifying the GCC countries income and economic resources which during the past 50 years was repeated after every crisis for oil prices crash, but why until now GCC countries did not success in diversifying their income and still the oil consider as 90% of their income? The answer is education and human development. GCC countries developed their infrastructure, government system, political system, economic system, health and education system then before the era of oil discovery, but all these development tools were imported from western countries and on top of that even the minds made it and managing it have been imported and still everything is imported, from nails to food to cars even medicine everything is imported from the world to GCC countries, this made it so exhausted on the economy because whatever money the country is making it goes to importing goods and services that means they money is going outside the countries but not coming back in any form and whatever prices the producers ask GCC countries have to pay even borrow from money market to cover the differences in income and expenses. This cycle has gone now for 50 years and still and no matter how much GCC countries made from oil or other resources they will not cover their expenses and in the same time making investment in infrastructure and provide service for citizens.

The only answer for the GCC problem is to invest in human capital not to give them higher degree like Msc or PhD instead to build their mind to be creative, innovative, educative and productive, GCC need to make their people produce goods and services that cover the local needs and in future export to other courtiers not just oil but goods and services that made by human mind like western and eastern courtiers do, now even these days small countries are producing using their people, local resources and even historical culture and customs for tourism, with amount of money GCC have today they can easily invest in people and build infrastructure that can produce different kind of goods and services the only problem facing this initiative is to embed it in the practices and strategies of the system since the system is still talking about changing but it doesn’t have the mentality, tools, tactic plans, human capital to make it happen in real life, the past 50 years was an opportunity to change but it did not happen today its an opportunity to change will we ask the same question after 50 years?

The opportunity is here and now people in the GCC can see it very clearly now they cant continue living as they did and their fathers did, change must take place now and with clear tactic plans build stage by stage that can be seeing and make difference with time, the education system is the first step each developed country started with to be what they are today knowledge, science, education combined with human mind, creativity, innovation and experiment is what needed to build strong nation and countries, the future oil for GCC countries is human capital which will last and never crash down or fluctuated in economy crisis or run out as natural resources.

Mohamed Alzayani

Assoc.CIPD and Assoc.IHRME Certified ROI for human capital development

Organizational Culture Moral and Leadership Moral

Organizational Culture Moral and Leadership Moral

Date: 24/03/2017

Leadership has become norm in training, conferences, seminars, book publishing and corporate training and professional certification programs. Leadership is a very needed a powerful tool corporate use to maintain its survival and success in the global completion, recently the world and business are facing leadership problem where leaders supply is short and demand is high, this create problems for both the political and business field. For that reason corporate are investing and even the business are making benefit from this shortage by providing so many leadership programs even online, which resulted in publishing ,many books about leadership and so many stories have been share about leadership in business world today.

The one that catch my attention is the furloughs  story, this story where the CEO was facing a decision to layoff workers or to cut off wages to face the financial crisis, but after long discussion he decide to let the workers take the decision and he inform them about the situation and decision and to choose, the workers thought of their families and debts but yet they thought of those who will be layoff without income, so they decide to take leaves without pay in turns for those who have enough in their saving to make it, after a while they save for the company double the amount they expected, this story is always told for leadership moral and lesson learned which I really find it excellent, but most of storytellers miss the other side of this story.

Although the CEO showed a role model in leadership moral but the workers who took the decision also showed other moral side in the company, those workers would not take that decision without a reason behind it, what could be that reason other than thinking of their fellow's workers? It’s the organizational culture, a company that has a CEO let workers make a critical decision decently has an organizational culture that promote other excellent moral thinking, practices and behaviors,  the organizational moral here plays very important aspect as the leadership did, it was obvious that the workers before the financial crisis have strong believes about their company that its worth saving and in the same time they do not want to save it on the cost of their fellows workers, they saw that the suffering of all will lead to all success yet they might let some of them suffer but in the end they will all suffer and the company might not be saved, this kind of thinking is promoted only by strong and practices organizational culture that lead to this result.

There are many stories about the organizational culture moral that can be found in books and life, in the end wither you are looking for good leadership, talented employees, creative and innovative employees, problem solvers or behavioral, it’s the culture the organization promote, support, practice, follow and role model by top management who can provide all these and other organizational need, organizational culture can play very important role in the crisis the organization face if it was relevant, strong, adapted by all and invested well by top management.

To make sure that you have organizational culture that is strong, relevant, adopted by all the following points can help in this matter:

1.       Organization mission, values and vision: the organization culture must reflect the mission of the organization the purpose that organization exist for and employees work for without clear mission and embedded in the organization culture it will not make strong and relevant. In addition the culture must reflect the values of the organization each organization has its own values that it could in a way or another similar but there is always different in the interpretation and practices depends on the industry and other influences factors, the values play very important role in crafting the organizational culture since it will emphasize on the believes and expectation of all employees. the vision where the company going ahead in future is also a factor must be considered in  crafting the culture since it will use as a guide and measure to make sure that all employees behave, think practice and act towards fulfilling this vision.

2.       Top management support: top management play very important role in supporting organizational culture not just by crafting and approving but also by being role model for other employees support the practice in situations where it must reflect the values and believes the culture embedded, also in crisis the top management must not forget their culture especially when it comes of strategic decision that affect the organization and employees future it must reflect the culture by all means.

3.       Middle management and supervisors: organizational culture mostly practiced in the lower level of the organization, no matter how much the top management support the organizational culture if the middle management and supervisors are not reflecting and practicing and providing the environment for the culture it will not be adapted and embedded in employee daily performance and behavior. Top management must make sure that middle management and supervisors are adopting and practicing the organizational culture and providing the environment for their employees to practice it if this fail the culture will not be successful not because its wrong or irrelevant but because there is a subculture that took place by the middle and supervisors that made the organization fail to reflect the values mission and vision which resulted in employees low moral, low performance and high turnover because of the conflict of what top management state and support and middle management and supervisors practice.

Organizational culture is a key that successful organization pay attention to it and make it work for them and for the employees joining them aboard, organizational culture is the physiological contract that attract, retain and motivate employees to fulfill organization mission and vision.

Mohamed Alzayani

Assoc.CIPD and Assoc.IHRME Certified ROI for human capital development