Ready to nurse an ailing business?

With 30 years of experience in the corporate sector, Dr. Michael Teng has been a torchbearer for many companies facing corporate distress. He has spent 20 years working as a CEO for multinational, local, and public listed companies, and has authored 27 books which can help sail companies through turbulent times.
His bestseller, ‘Corporate Turnaround: Nursing a sick company back to health’, talks about how to diagnose a company when it is sick and prescribes effective management principles and theories for a holistic corporate turnaround.

Q. Define the HR’s role in turning around a healthy business in to a world-class organisation?
A. It is important for a business to develop a strong corporate immune system, i.e., corporate culture which is flexible, innovative, and swift in handling the marketplace changes. The human resource management has an important role to foster this culture by making sure that the message is properly communicated, and policies are put in place and executed well.

Q. Please give us some effective and easy-to-administer techniques which can help HR restructure a company during turnaround.
A. The concept of 4Cs: Communication, Concentration, Cost Control, and Cash Flow Improvement, applies here so as to get control over the sinking ship.

Communicate with your key stakeholders to explain and get their support to your turnaround plan. Concentrate by focusing on core competency, which is necessary to avoid dissipate the limited resources. Cost control is the best antidote in bad times, but one has to be careful in cutting costs as it might hamper the business in a long run. Cash flow improvement is the lifeblood of the company and one has to look into the receivables and payables, inventory, credit terms, etc.

Human Resource department also needs to monitor and follow up to ensure employee morale does not take a beating, messages and policies are properly communicated and implemented. Read more...

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Partners for a sustainable solution

Q. How can a CEO help transform traditional HR to strategic HR?
A. If a CEO believes that “people are the most important assets an organisation has”, he or she would be personally involved in building talent pipeline, developing talent and strengthening organisation culture.

Q. What are the CEO’s expectations from HR?
A. Primary goal of strategic HR function is to increase organisation effectiveness by focusing on real business challenges. The expectation is to identify HR focus areas which help the organisation achieve its objectives. Overall, employee motivation and productivity have to be at the centre stage.

Q. And what does HR expect?
A. The core of the expectation is for the CEO or the functional leader to believe in the criticality of people and the focus needed on building talent. The core expectation of motivating employees, developing them and enhancing their effectiveness remains the same.

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Organisation’s objectives and direction

To understand what the CEO expects from his HR, we need to understand the mandate and the vision the CEO or the business leader has for the organisation, and what the CEO feels is his or her most critical responsibility or challenge. With the rapid globalisation of business, the key challenges for almost all CEOs today are: 1.Sustainable and profitable growth 2.Managing globalisation and diversity 3.Creating a workplace that spurs innovation 4.Managing and retaining talent 5.Managing costs 6.Using technology to stay ahead of the pack 7.Being prepared for the future

Today, executive level business leaders are looking to their HR organisations to answer critical people and talent questions to address the above challenges and to anticipate and prepare for future challenges. While many will question the role HR can play in terms of costs and technology, the fact remains that if HR has stepped up to take the role of a business partner, it needs to be able to find ways to help overcome challenges beyond its core skill areas.

To be able to deliver on these expectations, HR needs to evolve beyond the traditional strategic HR model. Dave Ulrich and Wayne Brockbank’s HR Business Partner model has helped HR professionals integrate more thoroughly into business processes and align their day-to-day work with desired business outcomes. In the future, the ways in which HR professionals will serve as business partners will continue to evolve, and require more expansive understanding of the organisation and business. The HR leader of an organisation is uniquely placed to have an in-depth understanding of people and processes vital to the firm. Increasingly, human resource professionals will have to be able to assess the human capital impact attributable to gain or loss in market share, profit margins and stakeholder value. Read More...

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