In this chapter, we will take
a case study to understand the value of nurturing employee productivity.
Before their acquisition by
JACOBS, Sinclair Knight Merz (SKM)
was one of the largest infrastructure service-providers and construction
companies. In this sector, companies compete mainly on the efficiency of its
work-force with their skills, their excellent dealing with the clients,
delivering output within deadlines, etc. So it was very important for their HR
personnel to acquire, train, and retain top talent. The company encouraged an
open and diverse management style.
SKM were wary that some
competitor might someday beat them at their own game if they don’t stay ahead
of the curve. And curiously, it was their management style that was causing a
situation. Their way of working lent almost complete autonomy to every employee
to choose his style, time and pace of work, partly because the company was
hugely dependent on its employees for getting clients, to maintaining
relationships, to developing networks.
To find a balance between the
freedom of operations for its employees, and staying ahead in the competition
so that the right skill-sets be recruited, nurtured and marketed to clients,
SKM asked Accenture to implement a Human Capital Development Framework. The
objective of this framework was to enable HR personnel to effectively assess
and analyze talent and recruit them. It
provided them state-of-art tools of Human Resource Development and all the
competitive evaluation methods.
When the Human Capital
Development Framework was implemented, many of SKM’s strengths were confirmed
and validated. The company’s processes, efficiency, finance all got high
scores. However, it also found out areas on which improvements could be done.
The HR Department had scored
very highly in the data collected from the framework, however the areas of
improvement were identified as “workforce planning and local recruitment”.
Using this feedback, SKM renewed its central recruitment policy and started
placing internal recruitment personnel in all its global units. This
immediately reduced the time to recruit staff and maximized the company’s
ability to go for mass-recruitments as per the needs and demands of a project.
The framework was also able to
identify that effective leadership development was an area of improvement in
SKM. Because of the mode of operation, a person was more likely to be given a
free-pass in the way he handled and interacted with his clients, however, these
people were now also asked to groom people who joined the organization so that
the inductees can learn the ropes from their senior colleagues.
SKM also made changes to their
rewards policy. The employee's preferences were taken into account while making
a reward offer to him. Efforts were given better recognition. The framework
managed to determine the areas on which the management had to focus the most
and working on these areas brought in further improvements that provided SKM
great competitive advantage over its peers.