One aspect of the downturn that has surprised many commentators is the fact that there has been a significantly lower level of unemployment than was predicted. This has been offset by companies offering or forcing alternatives on their workforce – reduced hours or pay, career breaks without pay, redeployment of staff to fill naturally occurring vacancies, etc.

Most of these ploys are designed to ensure that the enterprise retains the capabilities to respond rapidly to the recovery when it arrives. But maybe in some cases it is due to recognition that people are not only one of the biggest costs in the enterprise, but also the biggest asset. Accordingly, enlightened enterprises are paying much greater attention to their human assets – specifically how to ensure that the talent pool is correctly skilled, incentivized, motivated and developed.

We frequently talk about the fact that many service management initiatives involve major cultural and organizational change, and the Service Transition book contains some information about handling this aspect.

As it is a fact of life that enterprises need to change in order to survive and thrive, and that the ease with which an enterprise can make successful changes will be directly impacted by the caliber and attitude of the existing staff, it is clearly vital for enterprises to focus on this issue.

There have been many theories about what motivates people and hence how it is best to engage with them. The infuriating thing is that human beings are perverse, complex and individual beings. Our needs and aspirations vary enormously and change over time, so trying to evolve a corporate ethos and the appropriate motivation and remuneration mechanisms is very challenging.

Money on its own is rarely a good motivator, and where it is the major factor, it often encourages a type of behavior that is inconsistent with long-term value – witness the bonus-driven culture of the financial institutions, where a relatively small number of individuals were actively encouraged by the system to take massive risks with increasingly complex and opaque instruments and the demise of some proud businesses as a result.

What we should be striving for is an engaged workforce that will almost be self-motivating in promoting the best for the enterprise as a whole. This means openness and flexibility are key elements in our armoury.

When I started my working life, it was relatively common for people to follow, or aspire to, a job for life. Over the years this changed, and it almost became the norm to have multiple jobs, perhaps with a touch of derision for those who hadn’t had a varied career. Some recent surveys have shown that many people are now aspiring to something more settled –if not a job for life, at least a career working for as few as 3 different employers.

If that is the case, then there is implication that people will move jobs less frequently, even if they aren’t truly satisfied with or committed to the current role. There is a great danger that this leads to a static, sub-optimal workforce that is resistant to change.

We need to ensure that we identify talent within the enterprise and nurture it appropriately. Success needs to be properly rewarded and the individual’s development actively encouraged. It is important to distinguish between those with the capability to perform and deliver value on a continuing basis at the same or similar level and those with true potential to grow into a much higher level. Promoting the wrong person due to length of service or neglecting to address the aspirations of a real talent are equally bad for the enterprise – mediocrity and under-performance are often the outcome.

Successful enterprises:

• harness the experience and ability of the workforce so that they work harmoniously
• provide an open and flexible system of reward and recognition which is merit-based, emotionally satisfying and includes non-financial aspects, which enables individuals to choose the package that suits them
• invest in developing those employees who have the aptitude and attitude to adapt and grow
• have a management structure and style that is conducive to the workforce performing in an optimal manner
• communicate constantly and through a variety of channels, never assuming that a message given is a message received
• make success everyone’s issue – and share the rewards accordingly

Enterprises do need to be ruthless in their approach. Dead wood does need to be pruned; you can’t afford to have time-servers and job-worth’s cluttering up the place. They are barriers to change and impediments to performance.

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“There is nothing wrong with change, if it is in the right direction”  WS Churchill