Equity-Skills News & Views     SOUTH AFRICA'S most widely distributed & read INDEPENDENT HUMAN RESOURCE PUBLICATION

----------------------------------- Equity Skills News & Views Volume 4, Issue 16, 31 August 2005 Registered as an electronic newspaper: ISSN 1684-5722 ------------------------------------ In This edition 1. The Value of Human Capital: What Logic and Intuition Tell Us 2. Manage Paradigmatic Change 3. Guidelines For The Development Of An Education & Training Policy 4. Case-Law & Legislation Review: Dismissal:  Voluntary Liquidation -The Right To Consultation 5. Book Reviews 6. Across The Board: Official Newsletter Of The SA Board For Personnel Practice 7. Downloads: Final Version: Code Of Good Practice On The Integration Of Employment Equity Into Human Resource Policies And Practices. Amendments To The Code Of Good Practice On The Handling Of Sexual Harassment Cases In The Workplace 8.Unsubscribe & Moving Soon NB: If your Internet service provider (ISP) or server administrator filters incoming e-mail, please add Equity Skills News & Views to your list of approved senders to ensure you receive this e-journal to which you are subscribed. Jeff Sacht: Publisher-editor www.equityskillsweb.com jeffs@worldonline.co.za 'A MUST TO PRINT & READ' ---------------------------------------------------------------------- 1. The Value of Human Capital: What Logic and Intuition Tell Us* By Jack Phillips who can be contacted at www.clomedia.com/ ---------------------------------------------------------------------- Within the past century, the economy has moved from agriculture to industry to a knowledge-based system focused on productivity-shifting from land to machines to the human mind. Managers, human resources professionals and accountants struggle to place value on human capital. The accounting function strives to apply its financially oriented principles to the human capital assets. Corporate decision-makers are challenged to determine how much to invest in human capital. Can Human Capital Be Eliminated? Some managers view the human aspect of organizations as an irritant, a burden or perhaps a necessary evil-the source of organizational problems. They see job dissatisfaction leading to grievances, complaints, absenteeism, injuries and a host of other issues that take employees out of service, reduce productiveness and consume organizational resources for resolution. Technological advances in equipment, machines and electronics have enabled organizations to automate many tasks. Some jobs-highly dangerous, boringly repetitious, simple-step transactional tasks or those with excessive turnover-should be eliminated or automated to the greatest extent possible. Thinking in these directions about the role of humans in the workplace leads to several conclusions. First, minimizing the numbers can be a good thing-improving efficiency and employee welfare while providing more motivating and challenging jobs. Second, human capital investment at some level is necessary. Even in a completely automated transaction, humans are involved in decision-making and problem solving. The investment still exists, but it might be a smaller percentage of operating expenses. Third, even in a highly automated workplace, people are still critical. Often as jobs are eliminated, skills are upgraded so that the workforce is maintained or, in some cases, even grows. A firm that has both job creation and significant automation is adding tremendous value to the economy-the challenge of many organizations. Intangibles in the New Economy Major changes in the economy, along with the proliferation of technology and automation, have driven increased interest in intangible assets. Tangible assets are required for business operations and are readily visible, rigorously quantified and represented as a line item on a balance sheet. Although they are invisible, difficult to quantify and not tracked through traditional accounting practices, intangible assets are critical to achieve and sustain a competitive advantage in the knowledge era. For organizations-including knowledge-based organizations-intangible assets are often far greater than tangible assets. The bottom line: This is the knowledge era, and knowledge comes from humans-not machines or financial or natural resources. One of the problems with attempting to place a value on intangible assets stems from accounting standards: Financial accounting (which appears in annual reports) and management accounting (which enables managers to take action) are inadequate to the task. Although there has been much discussion, the generally accepted accounting principles (GAAP) offered by the Financial Accounting Standards Board (FASB) are inadequate for placing a value on intangible assets and, in particular, on human capital. Even Alan Greenspan, chairman of the Federal Reserve Board, complained that accounting was not tracking investments of intellectual assets and that technology change has muddied the crucial distinction between capital assets and ordinary expenses. The FASB indicates that accounting's fundamental purpose is to provide information that is useful in making rational investment, credit and similar decisions. That is not happening. Professor Baruch Lev, who specializes in valuing trademarks and patents, conducted a series of in-depth comparisons of corporate asset values ("book values") and share prices. He concluded that the financial reporting methods used by nearly all corporations-the methods codified by the FASB and required of public companies by the Securities and Exchange Commission (SEC)-were giving "exactly the wrong impression" of the real comparative worth of the corporation. In growth industries, in particular, the accounting numbers consistently overstated the value of physical assets (like buildings and machinery) and consistently underestimated other assets, especially the intangibles. The debate will continue as the accounting profession tries to adjust to the new economy and as organizations continue to grapple with investment strategy. Superstars As in almost every area, there are business superstars: organizations that are perceived as extraordinarily successful based on their major accomplishments. One common superstar denominator is the recognition of the people factor. Executives at superstar organizations give recognition to the people who have demonstrated outstanding performance: QUALCOMM: With a distinguished reputation in technology innovation, QUALCOMM is a continuous learning organization dedicated to promoting the growth of its employees and the development of the surrounding community.  General Electric: Jack Welch, former chairman and CEO of GE, transformed the company from an aging manufacturing bureaucracy into one of the world's largest, most valuable global multi-nationals through the implementation of his conviction that behavior is driven by a fundamental core belief: The desire and ability of an organization to continuously learn from any source, anywhere, and to rapidly convert this learning into action is its ultimate competitive advantage. >> Honda: Having had a manufacturing presence in the United States for more than 40 years, Honda's growth and expansion has a significant impact on the U.S. economy in terms of both dollars and numbers of employees. Much of Honda's success turns on the company's respect for individual employees. >> Southwest Airlines: Creating a culture of accountability and preserving and promoting the organization's core values, known collectively as "SPIRIT," Southwest has sustained growth and profitability when most airlines struggle to avoid bankruptcy. >> SAP: While some technology companies pin their potential on developing the latest, greatest techno-innovation, SAP, according to Les Hayman, chief officer of global human resources, knows that "you need a good strategy-not a brilliant one, but one you can execute. And you need a performance-driven culture and people who are emotionally engaged. If you have all those things, you'll create the right product." Human Capital: The Competitive Advantage Today's organizations have access to many of the key success factors: Financial resources are available to almost any organization with a viable business model. Access to technology is equal. Any company in our information technology society can readily adapt technology to a given situation or business model.  Businesses have access to customers. Having entry and access to a customer database is not necessarily a competitive advantage. Even a dominant player is not necessarily secure: Newspapers are laced with stories of small organizations taking on larger ones and succeeding. What makes the difference, clearly, is the human capital of the organization. With relatively equal access to all the other resources, it is logical to conclude that the human resources are where a strategic advantage can be developed. However, even having capable human resources is no guarantee of success. What is important is the way those assets are managed to maximize the return on investment in the human capital of the organization. Research and Lists Jim Collins' research, presented in "Built to Last," co-authored with Jerry Porras, and in "Good to Great," clearly demonstrates the importance of people in organizations' longevity and greatness. "Built to Last" draws on a six-year project at the Stanford University Graduate School, in which the authors asked the fundamental question, "What makes the truly exceptional companies different from other companies?" The importance of people emerged as a dominant theme as these companies practice what they preach regarding the role of employees in the organization. The core ideologies of these visionary companies consistently highlight the importance of people and their contributions as the basis for companies that are built to last. Collins' "Good to Great" examines what makes companies move from being defined as "good" to being defined as "great." In this work, Collins explores how good companies, mediocre companies and even bad companies are achieving greatness. The synthesis of the research in this book underscores the attributes of the truly great companies. The important ingredients are the quality of, and focus on, employees throughout the organizations, and the quality of leadership is the beginning point for these good-to-great organizations. When the entire body of research is examined, what comes through is not the innovative products, the unique markets, and the nature of the business or some other technological or resource advantage. The real advantage of these great companies is the people who make them great and then sustain that greatness over a long period of time. Further evidence of the importance of people in the workplace is revealed by a variety of lists. Fortune magazine's 100 Best Companies to Work For is the premier list that organizations strive to make. What employees themselves have to say about their workplace is the basis for inclusion on the list. Being on the list is so sought after that organizations are changing practices and philosophies in an attempt to make it. Another important list, Fortune's America's Most Admired Companies, is unique because peer groups determine the ranking. From a human capital perspective, it is interesting that four of the eight key attributes focus directly on human capital: employee talent, quality of management, innovation and social responsibility. The other four are indirectly related. The key point is that investors and businesspeople admire companies who are placing important emphasis on the human capital aspects of their business. What's Next? Consider this significant observation at JP Morgan Chase, which proclaimed the importance of human capital in its annual report: "At 23 Wall Street stands a building that was once JP Morgan's headquarters. In it is a vault (it is a bank building, after all). No money is stored there-it is a breakout room for the bank's training center. There, in the knowledge and skills of its people as manifested in intellectual capital, is where the real wealth for JP Morgan Chase or any company can be found." The wealth of convincing, anecdotal and intuitive evidence of the importance and value of human capital and its contribution to an organization's success continues to grow. The evidence supports the logical conclusion that investing in human capital is good. Although this should be convincing enough for most executives, the evidence does not necessarily amount to proof, and some executives need proof about the correlation between investing in human capital and subsequent performance. The next article in this series will summarize the research that shows the causal relationship between the investment in human capital and the success of the organization. *Reprinted by permission of the Managing Editor CLO Media ------------------------------------ IN-COMPANY WORKSHOP: MANAGING FOR DIVERSITY (NOW UPDATED & ENLARGED) ------------------------------------ An Intensive and Practical 2- DAY MANAGEMENT/ SUPERVISOR WORKSHOP to develop insight and self-knowledge about intercultural competence and enhance your capacity to work with a diverse workforce.  Contact Jeff Sacht to request a workshop flyer and to arrange an in-company workshop customised to your requirements. Facilitation is charged on a realistic daily rate and not a per person cost. Also available as a web download for self-delivery/in-house use under license agreement. Contact jeffs@worldonline.co.za ---------------------------------------------------------------------- 2. The Value of Human Capital: What Logic and Intuition Tell Us* By Jonathan Byrnes who can be contacted at http://equityskillsnews.c.topica.com/maadUn2abjLHOaaaaaab/ ---------------------------------------------------------------------- What would you do in this situation? You've been given the choice assignment to set sales goals for an important market segment, but your analysis convinces you that the sales process itself is flawed and needs sweeping changes. How would you convince the managers and division heads that the jobs they have been doing for years were unproductive, and they never saw it? What would you do if they "stonewalled" you? Who would you call? Who would you write? What would you say? How could you overcome this seemingly no-win situation? Every week, I get e-mails from readers, former students, executive program participants, and client managers asking questions like these. They see a better way to do things, but feel frustrated in getting the company to change. And a manager with great insight who can't produce successful change is ineffective. Here's another way to frame the question: What is your responsibility as an employee? This question may sound simple and self-evident, but like all basic questions, it really is neither. Is it doing what your manager specifies? Even if there is a better way to do it, and your manager won't budge? Even if you feel that the company needs something different, but your job is to do things the way they have always been done? The answer I give is that your responsibility is to maximize the long-run health of the company. Understanding what this means is critical to managing change effectively. In most companies, you must balance long-term renewing change with the need to deliver the regular, short-term results your shareholders require. You might think of this as "changing the airplane's propeller in mid-flight." Ultimately, managing this balance successfully is the key to rapid career advancement and personal job satisfaction. Embedded business practices First and foremost, companies are about people, in the sense that asset productivity, financial results, and all other measures are the result of what the people in a company believe, think, and do. People are able to work in organizations because they internalize well-structured ways to think about things and do things, like knowing which customers the company sells to and how it sells to them. These constructs become very firmly rooted in an organization and are very difficult to change. Often, they are so pervasive that they simply disappear from sight and operate at a tacit level as "the way we do business." The "true north" in any management process is to maximize the long-run health of the company.  This actually is a strength, not a weakness. Without these constructs, companies would be chaotic, with everyone essentially paralyzed trying to figure out what to do next. However, times change and, over time, companies need to change in response. The problem is that these constructs are very "stubborn" and difficult to change. Most managers run into trouble because they are used to managing tactical change, i.e., tuning up existing business processes, and they try to apply the same techniques to more basic change. This is the problem the manager faced in the situation I described earlier. As you turn from managing tactical change to creating paradigmatic change, your change management process needs to be fundamentally different. In my column, ("The Challenges of Paradigmatic Change"), I described the importance and nature of paradigmatic change, transforming a company's tacit set of policies and constructs, and I gave some guiding principles for change management. In this column, I focus on the day-to-day activities you need to adopt in order to be effective at changing "the way we do things." Changing "the way we do things" In last month's column, ("New CIO Role: Change Warrior"), I described the importance of integrating a scan of new value opportunities with a systematic understanding of organizational readiness to change in order to create practical strategic IT plans. This perspective is critical for any manager facing the prospect of quantum change. Managing quantum change is a complex, daunting process. It is very important to bear in mind that the "true north" in any management process is to maximize the long-run health of the company. In order to reach this objective, a manager can frame an effective change process using six principles. 1. Identify the underlying problem A company's set of policies and core organizational constructs typically reflect the company's history. If you really want to understand most companies, look at their situation three to five years ago. What they're doing today probably is an extension of the policies they developed in the previous period in response to the earlier situation. This set of policies most often exists at a tacit level, generally unseen, rarely examined, but pervasively influential. By analyzing this tacit set of policies and constructs, a manager can identify why a particular disconnect occurs between "the way we do things" and "what we need to do today." Chances are that the old policy is not "bad," it is simply obsolete. If you can explain systematically why the changing business needs caused the gap to develop, the change process becomes depoliticised. For example, I'm familiar with the case of a retailer that was dominant in its business about five years ago. In this situation, the retailer did not have to make difficult merchandising decisions in areas like product lifecycle management and assortment planning that a retailer in a hotly competitive business would have to make. As time went on, the business became much more competitive, and the retailer lost ground quickly. The core problem was the growing disconnect between the retailer's core merchandising decision-making processes and the new business needs. Because these processes were so fundamental and pervasive, the situation was literally invisible to most managers. 2. Make relationships before you need them This is critical. The underlying problem in the situation I described at the beginning of the column is that once the analytical process was completed, it was almost too late to start the change process. It is very difficult for busy managers to take the time to develop relationships with their key counterparts in other departments of the company before the relationships are needed. Yet this is precisely the most effective precondition to successful change management. There is an old adage in ship chartering that you shouldn't talk business until the third lunch. There is a strong grain of truth in this, and it holds an important key to effective management. Effective relationships are best developed in social situations, like over lunch or in after-work get-togethers, and not in structured business meetings. In an informal context, you can get to know your counterpart's concerns and hopes. With this knowledge, you can find ways to support your counterpart and even to frame your initiatives into win-win situations that incorporate your counterpart's own change initiatives. With a network of relationships, and a history of working cooperatively to help others in their own change programs, you will have receptive ears and the support you need throughout the company to effect quantum change. 3. Involve others in the analysis In tactical change projects, managers often do the analysis themselves, or use a small team. Then they produce a business case and use it to convince others to accept the results. This doesn't work in paradigmatic change. In quantum change projects, it is mandatory to involve a broad range of counterpart managers in the analysis. This is true for two reasons. First, the other managers may well have important needs and perspectives that have to be accommodated for the initiative to succeed. Second, they need to be immersed in the data that show the need for sweeping change. They need time and understanding in order to break down their tacit constructs and reconstruct a new way of doing things. Unless they themselves have gone through this "conversion" process, they won't be willing to change fundamentally the way they do business. Top management will be very sensitive to the depth and degree of buy-in of those who will have to live with the change. 4. Create a showcase A showcase is a limited-scope exploration of possible new ways of doing business. In the case of the new sales process, it may well be possible to experiment with new ways of doing business in one of the company's smaller territories, or in a few smaller accounts. This allows you to develop new business processes, to "learn by doing," without endangering the company's results. A showcase is very different from a pilot. A pilot project usually follows a commitment to roll out a new way of doing business; the pilot itself allows management to try out and tune up the process before rollout. A showcase, on the other hand, is an open-ended opportunity to try new things and to learn, without a previous commitment to spread the new practices. A showcase is less threatening, and much more effective. Once the new business practices are displayed in a working situation, managers throughout the company can "kick the tires." 5. Win the war, not every battle Individual business decisions are almost always part of a series, rather than stand-alone, make-it-or-break-it situations. Effective relationships are best developed in social situations. In a paradigmatic change initiative, timing is everything. It may take a few decisions that go against the direction you are advocating to produce the evidence you need to convince people that your direction is correct. Sometimes, in the process of educating people, it simply takes time for a new way of thinking to sink in. Sometimes, you simply have to wait for the timing to be right. If you fight every battle to the death, you won't be around to win the war. 6. Keep several balls in play Change projects have their own rhythm. Sometimes, they stall simply because the organization is not ready to digest the change. If you try to force the issue, the organization will turn on you. The key is to have several change management projects going at the same time. That way, if one stalls, you can try to move another up the field. By the time that project stalls, the first may well be ready to move forward. Having several projects going at the same time takes the pressure off you to force a decision before its time. It is especially effective to develop in parallel several change projects focused on different aspects of the same underlying problem. That way, when you achieve success in one area, it will enhance the prospects of success in the others. Making change stick At the end of the day, the acid test for whether change will stick is whether top management is willing to adjust the company's key behavioral drivers, like planning, resource allocation, and compensation, to move the company in the new direction. If you can change these, you will cement the new paradigm in place. If not, the company will revert to the old way of doing things. Define your job broadly There is an important difference between proximate actions and fundamental actions. For example, if you're managing inventory, you can optimize the inventory level given the variance in the order pattern. Alternatively, you can define your job more broadly and seek to understand and change the organizational factors that determine the variance. When you optimize the inventory, you're managing change at the level of proximate actions. This is tactical change. But when you change the underlying mechanism, you're acting at a more fundamental level, and you're engaging in paradigmatic change. What is your responsibility as an employee? It's up to you. You can choose to define your job in a proximate, tactical way, producing results consistent with the context you've been given. Or you can choose to define your job more broadly, focusing on the fundamental, paradigmatic opportunities that will have a major impact on the business. Ultimately, the managers who rise to run the company are those who choose to maximize the long-run health of the company by becoming expert at managing fundamental, paradigmatic change. *Reprinted under license agreement with Harvard Business School, Working Knowledge ------------------------------------ THE IR PROTECTOR ------------------------------------ Is your company spending valuable time and resources handling disciplinary issues? Does your business contribute to the 130 000 cases at the CCMA each year? Is your share of the R14 000 000 000 in South African industrial relations costs affecting profitability? Take the next logical step in people management and protect your organisation. To find out more about "The IR Protector" visit www.workinfo.com/sponsors/irprotect.thm Brought to you by Workinfo.com and Camargue, Hollard's labour dispute specialists. ---------------------------------------------------------------------- 3. Guidelines For The Development Of An Education & Training Policy* By Lauren Derman who can be contacted at www.fasset.org.za ---------------------------------------------------------------------- 1. Preamble Education and training is a prerequisite for improved employee performance, for career development and for organizational growth. An Education and Training Policy should be seen as part of good governance. Such a policy will ensure that quality education and training is offered, and that the benefits that accrue from such education and training is always recorded. A policy statement ensures that all education and training is relevant, appropriate, delivered at the appropriate time, and in the most effective way. The policy should be accessible to all employees and managers. It should inform staff of Education and Training policy and priorities, in line with organisational goals. The purpose of this document is to assist employers within the Fasset sector to develop an Education and Training Policy for their own organisation. It serves as a guideline only. Recommendations should be adopted in line with an organization's own needs. 2. Introduction It is beneficial to both employees and employer, to ensure that employees have the necessary skills and expertise to meet current and future challenges within the sector. In addition to offering employees Education and Training Programmes within the workplace, Fasset encourages employees to strive to enhance both their academic and professional qualifications through studies at approved academic institutions. An organisation's Education and Training Policy should support training initiatives that are not only relevant to the workplace, but to the sector as a whole. Education and Training initiatives should support organisational aims and objectives. 2.1 Considerations when writing an Education and Training Policy The following should be borne in mind when compiling an Education and Training Policy document: >> Input should be obtained from interested and appropriate stakeholders e.g. staff members from the Training Department. Senior Management should endorse the final policy statement. >> The document should be reviewed periodically to ensure that it continues to provide the organisation with a relevant framework for Education and Training. >> Once the policy has been written, it should be introduced to all staff. Employees should understand why the policy was written, and how it will assist them. >> The policy should be realistic and it should relate to the training needs that have been identified within the organisation. >> The document should be written in such a way that it is accessible to everyone within the organization. 2.2 The purpose of writing an Education and Training Policy >> It provides the management team with guidelines >> It provides a framework for consistency. >> It clarifies the link between organisational objectives and Education and Training. >> Overall all members of an organisation will hold responsibility for Education and Training. 3. Content For Consideration Download the full text of this article at: http://equityskillsnews.c.topica.com/maadUn2abjLHPaaaaaab/ *Reprinted by permission of the author and Fasset ------------------------------------ Does Your Company Culture Block The Implementation Of Equity Initiatives ------------------------------------ Renewal Resources provide a family of client proven instruments and change processes to assess organization effectiveness.  Each is designed to develop the effectiveness of individuals, teams, sales professionals, the organisation and its performance management systems and processes. Contact jeffs@worldonline.co.za for a brochure of the survey assessment tools available. ---------------------------------------------------------------------- 4. Case-Law & Legislation Review: Dismissal:  Voluntary Liquidation -The Right To Consultation By Gary Watkins who can be contacted at www.caselaw.co.za  ; www.workinfo.com ---------------------------------------------------------------------- Mdletjie & others vs. Deltarale & Equipment CC Case No: MEGA5602 Award Date: 28 February 2005 Jurisdiction: MEIBC:  Johannesburg Commissioner: Shardlow J # SUBJECT: Dismissal:  Voluntary Liquidation The right to consultation ISSUE: It was clear from the evidence tendered by the employees that they understood very little regarding the events that led to their dismissal.  They had lost their jobs when their employer went into voluntary liquidation. Termination of a contract of employment as a result of the voluntary liquidation of a company constitutes a dismissal for purposes of section 186(1)(a) of the LRA. Compulsory sequestration results in the suspension of the employment contract. The employer conceded that it failed to follow a fair procedure when the applicants were dismissed.  Prior to going into voluntary liquidation it should have complied with section 189 of the LRA.  Consequently the dismissal of the employees was procedurally unfair. SUMMARY OF FACTS:  The employees claimed an unfair dismissal while the employer claimed that they were dismissed as a result of the employer company going into voluntary liquidation.  The employer conceded that no procedures were followed prior to the dismissals. The employees further claimed that some employees had been reinstated and/or invited to return to work.  The employer party informed that the daughter and son-in-law of the owner of the employer company had started a new business on the same premises. SUMMARY OF JUDGEMENT:  The Commissioner found that the employees had never understood the reason for their dismissal.  Held further that termination of a contract of employment as a result of the voluntary liquidation of a company constituted a dismissal for purposes of section 186(1)(a) of the LRA, unlike the situation, which exists where, a company is liquidated by order of court. Compulsory sequestration results in the suspension of the employment contract.  The employer conceded that it failed to follow a fair procedure when the employees were dismissed. Prior to going into voluntary liquidation the employer should have complied with section 189 of the LRA and have consulted with its employees.  Consequently the dismissals were found to be procedurally unfair and the employees each awarded 20 weeks' wages in compensation. ------------------------------------ IN-COMPANY WORKSHOP: EMPLOYMENT EQUITY COMMITTEE TRAINING ------------------------------------ An Intensive 2-Day In-Company programme For ELECTED EMPLOYMENT EQUITY (EE) MEMBERS & CHAIRPERSON To Competently & Confidently Represent Co-Workers. Contact Jeff Sacht to request a workshop flyer and to arrange an in-company workshop customised to your requirements. Facilitation is charged on a realistic daily rate and not a per person cost. Also available as a web download for self-delivery/in-house use under license agreement. Contact jeffs@worldonline.co.za --------------------------------------------------------------------- 5. Book Reviews: Strategic Leadership Explored in New Book By Richard L. Hughes, and Katherine Colarelli who can be contacted at www.ccl.com --------------------------------------------------------------------- To purchase this publication, click on http://equityskillsnews.c.topica.com/maadUn2abjLHRaaaaaab/ Capping nearly a decade of work, one of the world's foremost organizations for leadership education and research has published a groundbreaking study of strategic leadership. "Becoming a Strategic Leader: Your Role in Your Organization's Enduring Success," the newest book from the Center for Creative Leadership (CCL), provides an up-to-date and practical guide to strategic leadership for all levels of organizational managers--from junior managers to senior executives. "Our premise is that strategic leadership - which differs from day-to-day operational leadership through its broad scope, focus on the future and orientation toward change - is a process, not a position," say authors Richard L. Hughes, Ph.D., and Katherine Colarelli . "The current trend in organizations is to increase the numbers of individuals who share in the responsibility of the development and practice of strategic leadership, including certain aspects of creating strategy. In successful organizations, managers at all levels are no longer limited to just executing a strategy passed down from above." Hughes and Beatty base their thesis on practical experience working with organizations, eight years of collaborative research, and data gleaned from nearly a thousand managers and executives who have attended CCL's "Developing the Strategic Leader" program, a comprehensive, five-day learning experience for senior leaders. Hughes and Beatty have served on the faculty of CCL for 10 years. Hughes' work focuses on studying the effectiveness of senior executives and their teams and developing their impact on organizations. Beatty designs and directs CCL leadership training programs to create positive impact on individuals, teams, and organizations. Beatty says, "Using the habits and attributes of successful strategic leaders as a model, Becoming a Strategic Leader identifies a distinctive, interconnected process that teaches strategic thinking, strategic acting, and strategic influencing to ensure a collaborative approach to strategic leadership." "We have also developed practical suggestions, tools and self-guided analyses," Hughes adds, "to help readers enhance their own, their team's and their organization's strategic leader capabilities." CCL President John Alexander said, "Becoming A Strategic Leader is a definitive work in the study and practice of a critically important type of leadership. It translates a wealth of firsthand information and experience into a practical approach that will help leaders make an enduring impact on their organizations." *Reprinted by permission of CLO Media --------------------------------------------------------------------- 6. Across The Board: Official Newsletter Of The SA Board For Personnel Practice By Human V Rensburg CEO of SABPP who can be contacted at sabpp@mweb.co.za --------------------------------------------------------------------- # Corporate HR & The SABPP After a turbulent phase of major changes to human resource development of educational structures or programmes, greater stability and clarity has now been reached. This is leading to the phenomenon of corporates translating this into various internal contexts. Some examples of this are that corporates are: >> Embarking on their own internal RPL (recognition of prior learning) processes to give career recognition to the people who have developed the systems for their own companies >> Setting up internal educational support for HR professionals employed to enhance the Company's capacity in this field >> Aligning their HR career ladders to the SABPP NQF aligned levels >> Supplying benefits based on the professional regis- tration levels attained by their HR staff >> Providing consulting services on career planning to all employees >> Registering assessors and moderators with ETQAs and SDFs with SETAs The Board is being contacted by corporates with various questions on these issues:. How can we prepare for best use of the proposed HR legislation? What should in-house HR training be focusing on? What can be done if the "right" unit standards for HR have not yet been developed given our own perspective? The SABPP would like to extend a hand of help and friendship to corporates. There are various ways in which we can work together to up the standard of HR being delivered in South Africa. In-house training for HR Practitioners. The Board is of the opinion that as far as formal training is concerned, the wheel should not be re-invented. State funded public institutions giving HR education should be utilised optimally. A logical in-house development programme for HR with a unique corporate culture, company identity and clear company values should, however, be determined by the internal debate of the company to achieve the best results. Ensuring continued professional development through in-house training which is consistent with the SABPP requirements would not only ensure that the company is served by HR professionals who are kept abreast of the latest developments, but also that registered professionals are aligned with broader national standards. Should in-house training be done in the context of courses accredited by an ETQA, and the company is not able to find HR unit standards that satisfies certain needs, it is possible for such a company to develop the complete unit standard as per national guidelines. This can then be submitted to the SABPP ETQA or to the Standards Generating Body for HR Management and Practice who will test the unit standard and register this on the NQF through SAQA. # Internal RPL Aligned To SABPP Process For Professional Registration Internal RPL aligned to SABPP Process for professional registration. The SABPP has been approached by big corporates who have their own internal RPL processes for HR staff on how to slot this in with the SABPP process. It is possible to apply the work that has already been done in this regard to the SABPP RPL process for professional registration. It will be necessary to satisfy the SABPP that the standard of the in-house RPL meets national criteria, but once this has been agreed upon, the portfolio of evidence produced by the company's process may be tendered to the SABPP. A panel interview with Mentors of the Board can then be arranged to make a final decision on registration level of the candidate with the SABPP. It may even be possible for corporates to recognize their own specialist categories for internal use in collaboration with SABPPBy attaching their HR standards to the national standards companies will be strengthening their own structures. HR Directors are invited to contact me personally to set up an appointment to discuss future cooperation in any of the above-mentioned areas. # Formal Qualifications And The HR Profession In a recent book edited by Mike Loser, Sue Meisinger and Dave Ulrich entitled "The Future of Human Resource Management", internationally recognized leaders in the HR profession take the role of formal training and a strong educational background for granted. For instance they say:" Like most business professionals, human resource (HR) professionals need a strong educational background to be successful. That education, however, needs to be quite varied." (ibid:63) "HR is a profession with standards that certify proficiency across a range of competencies. Although the formal training to ensure functional excellence is key, it is imperative that HR Leaders acquire the broad range of competencies necessary for success." (ibid:75) Given statements of that nature, what then of those of our colleagues who were previously disadvantaged and possibly not able to take up those studies needed to enter the HR profession by the normal route? The SABPP is keenly aware of the need to formulate a policy to deal with the desire of such individuals to register as HR professionals. The advances in recognition of prior learning and its formal recognition by the SA Qualifications Authority make it possible for the SABPP to draft a formal policy to deal with applications from previously disadvantaged colleagues. However, so as not to devalue the professional nature of human resources in South Africa it is necessary for the SABPP to maintain a fine balance between giving proper recognition where this is due and to maintaining the internationally accepted norm to which all professions adhere, namely that formal studies are a prerequisite for entering a profession. Recognition of prior learning must never be seen to be the prime way to the profession. It is and must remain the exception to the rule of formal education and directed experience. Due to the way in which management operates, there will always be a percentage of atypically trained HR practitioner contenders. This is a world phenomenon and it will remain the SABPP's obligation to continually assess this environment. Recognition of prior learning should also not be seen as the quick and easy way of achieving a higher level of registration. If an academic institution finds it necessary to cover a full course domain in a sizable chunk of time with its students then there can be no identifying a gap in your competence, doing a quick course and then upping your registration level. At best once recognized and registered at a level that has taken competence (knowledge, skills and values) into account, any further advancement up the ladder should require achievement of a recognised formal qualification. A whole new generation is entering the field of human resources. The SABPP can report with pride that almost all of the incoming younger and previously disadvantaged generation is qualified academically. The formal policy for the recognition of prior learning will serve as a useful tool to open doors for those who deserve it, but like any exception to the norm, it should be applied cautiously and wisely. --------------------------------------------------------------------- 7. 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