Strategic Planning, Part III: HR's Role as Strategic Diplomat

Strategic Planning, Part III

HR’s Role as Strategic Diplomat

To better understand how HR has found itself with a seat at the strategic planning table, we look to HR’s first forays into its role as employee advocate, one that it gained as part of its evolution from its days as “the Personnel Department”. Much of what hospitality HR directors learned about advocacy came from defining moments in large, urban hotels where unions had long been entrenched and thrived on the “status quo”.

The rechristening of the Personnel Department as “Human Resources” advocate troubled the unions. Their collective mistrust of management’s motives had been burnished over many years of seeing crude, ill-trained managers mistreating hourly employees. When Personnel became “HR”, and some of the big chain hotels were announcing that henceforth Human Resources would play a central role in union/management relations, the unions wondered, “what’s next?”

HR’s equanimity, instead of being welcomed by organized labor was instead often misunderstood. Union business agents viewed HR’s ascent with alarm, particularly when the HR director wouldn’t back down from a position. Bullying department supervisors and complaining to hotel general managers about “worker abuse” had brought unions credibility. So why would they want to talk with Human Resources?

Not really believing HR’s proffer of cooperation, ironically unions saw HR’s rise as divisive to the labor movement’s goal of keeping the focus on “us versus them.” Who needed someone to forge better relationships, especially if that meant that unions would no longer tell management the way things were going to be?

What happened next was thus not very surprising.

Labeling HR as a potential Trojan horse, a supporter of “scabs” who would roll back hard fought union gains, unions fought back, painting HR first as insincere mouthpieces for management and then, in an insult that really bothered HR, as people who should just be ignored.

What had we done wrong, HR leaders wondered? How could HR find its way out of this thicket and regain employee trust? How would we tame the unions’ annoying habit of taking advantage of every management misstep?

Initially the best that HR could achieve was an uneasy stalemate, and even that often came on the heels of a walkout by an entire shift of waiters. Every time we thought we might have made some progress with a union business agent, he or she would claim we “lied” and the relationship would once again turn frosty.

HR chiefs approached these early union/management struggles with admirable patience, considering that the typical HR director had not been schooled in how to deal with labor unrest: though some in the big city hotels had plenty of background in listening to the problems unions seemed to create, most HR directors were either new to labor relations or had limited authority to discuss or resolve employee grievances.

HR’s impatience with the slow pace of progress in union/management relations grew more intense and eventually, some HR directors were given a little rope to explore ways of defusing union/worker angst. In my case this experience proved challenging, to say the least.

Not long after I had won a limited authority to engage the unions I was summoned to a meeting with a local union president and our labor attorney. The union president proceeded to excoriate me for my “holier than thou” attitude and my “ignorant interference”. He threatened a work stoppage if I didn’t back off.

Two weeks or so went by. I implored my general manager for answers: What had I done? I asked. He would only say that he thought I’d been a little too aggressive.

Ordered to stay out of the union’s way I nevertheless remained convinced that all of our lives would be more peaceful if we could forge better relationships with the union business agents.

I tried another tactic. The next time that the business agent for our hotel strode into my office, prepared for a fight, I offered her a seat, and then asked The Question: “Why are you doing this?”

We sat there for a moment in stony silence. Then, as if a light switch had been flipped, the agent’s face softened, and she managed a thin smile. “Management,” she began with a long sigh, slumping in her chair, “cares only about itself. The workers be damned.”

Thus began for me a real relationship based on understanding and ultimately, trust. This union advocate was not perfect, nor was she always right. But her advice, cooperation and “take no prisoners” negotiating style taught me much about what really matters to hospitality employees.

Be honest and be well. -- Chuck

Copyright 2008 by Charles A. Conine and Hospitality HR Solutions

www.hospitalityhrsolutions.com

He Offers a Roadmap Out of Sales and Profit Hell

If you are spending money with an organizational consultant, you are not alone. Everyone it seems is on the hunt for fresh perspectives on how to reverse the current industry slump.

Issues that in the past sounded straightforward enough – build top line first, then work on your costs, etc., etc. – are not so simple now, not with eggs costing 100% more than a year ago, fuel at $4.50 a gallon and climbing or, in the worst sort of tone deaf irony, many state legislatures piling on new and evermore business-defeating proposals to legislate employee wages and benefits.

Today’s times are challenging our commitment to our principles, our employees, our vendors and your guests. Are we and our teams living our core values? Is our mission statement reality or is it a box checked off on someone’s to-do list? Does our management team have a laser-like focus on returning business to the good times, no matter what it takes? Better: Is every manager charged up and ready to find the answers? Perhaps you need a little encouragement to get all the way there? Meet Jim Sullivan, whose teaching returns your investment with interest.

Why is listening to Sullivan like putting money in the bank? For all the years I’ve watched him Jim has eschewed the esoteric, favoring a simple, direct approach that restaurant operators appreciate. No skin-deep “cum-bay-ah” sessions for Sullivan; he’s too busy fielding all the good questions his ideas generate. Having sat through more than one over the years I can attest that Sullivan’s training workshops pack a fast-paced punch. He gets that his clients are busy and he won’t insult them by wasting their time.

Jim’s website displays this motto: “common sense at work.” The site, www.sullivision.com is built that way -- eclectic, easy to navigate and chock full of serious offerings. The focus is on energizing and leading today’s restaurant people. These are teachable, scalable programs, precisely what companies sharing Sullivan’s sense of urgency are seeking.

A key reason for Sullivan’s loyal following: his books, tapes and seminars are not about him – they’re about the industry’s basic people challenges and how to address them. Sure, he’s charming and industry smart. But Jim Sullivan is more than that: he’s a bit of everyman. In fact, the very best thing about Jim is that he remains an optimist, undiminished by personal politics, hyper-ego or insincerity.

Jim’s latest book, available on the website, is “Multi-Unit Leadership - The 7 Stages of Building High-Performing Partnerships and Teams” . It’s a gem. True to his economy of style Sullivan has penned an easy read, a “first this, then that” approach that’s unapologetic and direct. More importantly the advice serves as a roadmap to pull the industry out of Sales and Profit Hell.

If we don’t need roadmaps now, we’ll never need them.

Be honest and be well. - Chuck

Copyright 2008 by Charles A. Conine and Hospitality HR Solutions

www.hospitalityhrsolutions.com

"Wishing and Hoping" ... or Strategic Leadership?"

Strategic Planning, Part II:

“Wishing and Hoping” …

or Strategic Leadership?

If you read my July 17 post you know that I’m a fan of strategic planning. Actually, that’s not entirely accurate: I’m a fan of results.

As HR has evolved from a traditional role of recordkeeping and administrative functions HR leadership has found itself pressed for results, on challenges as diverse as how to regenerate a declining job applicant pool, to more esoteric questions – how, for example, to recast a mature hospitality company’s image so that it is attractive to employees in the Millennium Generation.

Not surprisingly both of these issues represent ongoing conundrums for HR chiefs in many hospitality firms, particularly those with mature brands. In the last 5-10 years as new, hot companies -- in the hotel industry, boutique brands such as “W” Hotels, for example -- snapped up twenty-somethings eager to associate with hipper brands, it became increasingly clear, to the consternation of the older, legacy brands, and worse, companies who had never paid much attention to their employees, that issues such as turnover, applicant attraction and retention were now entrenched, defying traditional cures.

HR and CEOs alike witnessed with consternation that time-tested solutions and the metrics by which their success had historically been measured, were no longer applicable – at least not without changes in how the organization viewed itself, and its human capital.

These global issues, and their spreading impact on shaping the organizations of tomorrow, are the subject of many strategic planning sessions.

Surprisingly bringing management to the strategic planning table still takes convincing effort. Equally surprising is that the reticence to commit to a formalized planning process can stem from, as a former boss of mine used to say, “wishing and hoping”, the ill-advised belief that when an organization “keeps the faith,” eventually its strategies will pay off.

This is a gamble that competitive companies refuse to take. In their view planning must occur regularly, much as one schedules annual checkups with his physician. How else are we to know whether what we are doing is the right thing, can be finessed or even, God forbid, replaced with something better?

Rigorous strategic planning forces us to re-examine why we favor certain strategies, even when they are meeting expectations, but particularly when they aren’t. Whereas the “wishing and hoping” crowd expects tomorrow will be better competitors, armed with the results of their strategic planning, have already seen tomorrow – and are busy executing strategies to welcome the changes they already know it will bring.

Latecomers to strategic planning sometimes arrive battered and bruised, willing to give planning a try if only because nothing else has worked. For the non-believers and latecomers I offer these precepts:

I. The crossroad where your vulnerability meets your will to survive is a defining moment.

II. When you realize that challenges are both global and viral, that they are key to your future success, let alone your company’s viability, you’d better act – quickly!

III. No well-planned offense can succeed unless purposefully communicated to your employees, the people whose exertion and support is required to execute your strategy.

And several other observations:

I. Weak leadership finds itself confounded by inexplicable periods of “bad luck”, while strategically-focused competitors fiendishly dissect the obstacle, determined to demolish it.

II. Hand-wringing or “wishing and hoping” serve only to prolong the pain. Delay can be an enemy, pointless and insidiously damaging.

III. Our 24-hour news cycle, aided by the Internet, can turn little problems into viral campaigns nearly without warning.

Even if immediate action seems unnecessary planning for what may be required can’t begin soon enough.

Global issues are super-sized in their effect. If we accept this premise, then by definition, left untreated, global issues will at some point turn viral as well, meaning that they will chew inexorably through all of the company’s worn strategies, exposing them for what they will, barring decisive action, no doubt become – old, tired and ignored.

So much for “wishing and hoping.”

Be honest and be well. -Chuck

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Copyright 2008, Charles A. Conine and Hospitality HR Solutions

www.hospitalityhrsolutions.com

HR Strategic Planning: After Layoffs, Then What?

It is a fact, and a sad one. Layoffs are hurting the hospitality industry.

The pall that pink slips cast over the upbeat attitude our business projects, well, it's not a fun place to be right now.

HR is right in the middle of the action -- as is its rightful place. And HR executives are responding, with compassionate counseling, information on filing for unemployment, and other necessary words that employees on their way out can use to seek a fresh start.

Is there anything else that HR could, or should be doing? First, we must ask ourselves: Are we, the management team ready to move on from the layoffs? Ready or not, we must move on -- and HR should be playing a central role in recovering the company's fighting spirit, its accent on hospitality and employees. HR's strategy for recovering employee attitudes following layoffs cannot be divined in a vacuum, however.

If your hotel, restaurant or food service firm utilizes strategic planning:

1. Schedule a meeting today

2. Get the senior management team together, preferably off-site and in a place where cell phones, Blackberries,laptops, fax machines and all other distractions are banned for the duration of the meeting. Your team cannot afford distractions.

3. Consider use of an independent facilitator who is not an employee. Admittedly HR likes the facilitator role, and is adept at it; for this project, however, HR should have a seat at the table, not in front of a flip chart. At Hospitality HR Solutions we are glad to help with these projects, even on a one-time, one-day only basis. You can have a look at our strategic planning services by going to http://www.hospitalityhrsolutions.com/index_files/ourservices.htm.

The point is, there are plenty of excellent consultants out there; if you don't use us, please still consider the value that the outside perspective brings to what will no doubt be an emotionally charged meeting.

The meeting day arrives. Your facilitator will introduce himself or herself and then it's right to the subject at hand. Ground rules for the meeting must be established, points like: "each person's opinion matters"; "kill the negative facial expressions" and other signs of non-verbal disapproval; "we're all equal in this room;" "no interrupting one another." The Facilitator will help keep these rules in force.

A wonderfully versatile facilitator from my past life in corporate HR, Bruce Dudley (he's now in the corporate world himself, unfortunately, or I would recommend him for your strategy meeting) from whom I learned a lot about facilitating strategy sessions, used to begin these senior management conclaves with a "check in" process -- an intriguing and revealing, non-threatening portal through which strategy meeting participants arrive ready to go to work, committed to finding solutions.

As importantly the "check in" acted as a sort of ice-breaker for the participant while providing him or her with a few minutes right at the beginning to state what he or she hoped to achieve in the meeting. Bruce dutifully wrote each of the participants' meeting goals on a flip chart sheet, tore it off and hung it where we could all see that list throughout the day. It helped keep us focused. The hidden benefit for the Facilitator: It reveals biases -- negative attitudes that if not reversed, could torpedo the day before it gets underway. Layoffs give birth to negative attitudes, and management isn't immune. The Facilitator can help move participants to healthier outlooks, or at least open their minds that possibility.

Following the check-in which, depending on the number of attendees, could last an hour or longer, your Facilitator will guide you through a series of discussions that when strung together -- a process that will at times seem cumbersome or even unnecessary -- "why can't we just get to the point here?" is something you may hear -- will produce a road map beyond the layoffs. This will be your strategic plan, formal steps that your team will take to move beyond layoffs. Following the meeting it will be committed to writing and distributed to the team. Your CEO or other senior operations leader will likely appoint various department heads including HR to shepherd the strategic plan and to report regularly on its success.

Wishing won't do it. Nor will parties with balloons and food. The attitude of employees who survive layoffs needs far more careful rehabilitation, transformation actually. The process means that the company must literally examine its roots and its core principles to learn whether they still apply in the new business environment. A strategic planning process is vital to not only formalize how we examine the strengths and weaknesses of our business, but to ensure that we have a road map for moving beyond our current troubles.

Be honest and be well. -- Chuck