AG 1 Developing Innovation and the role of HR Annalisa Gigante 5 October 2006

AG 2 Index Defining Innovation Innovation: the future growth engine The key questions The evolution of HRM Improving your Innovation potential Case study: the Innovation process at Manpower Networking as a competitive advantage

AG 3 Defining Innovation the process of making improvements by introducing something new (Wikipedia) the introduction of something new (Merriam-Webster Online) the successful exploitation of new ideas (Dept of Trade and Industry, UK) Successful innovation links new ideas and technology with market needs and creates value

AG 4 Innovation: the future growth engine Innovation fuels the Company’s growth Innovation is everywhere –R&D –New products –New / improved processes..from disruptive to evolutionary change Innovation is critical to the future success of a Company

AG 5 The key questions How do you promote and harness innovation? How can HR help?

AG 6 Transactions Strategy HR Administration Functions Productivity & Performance Management HRM Strategy Facilitating Cultural Change Operations The evolution of HRM understanding the business personal leadership skills and credibility ability to manage change ability to apply the best HR management practices to the business goals. HR Managers are becoming business partners by shifting their focus from administrative output to outcome and results, through: Strategic HR will enhance Innovation

AG 7 Improving your innovation potential Innovation Potential Metrics Branding Organisation Culture Performance Training Talent architecture

AG 8 Branding What is the role of innovation within the organization? Is Innovation a key driver of the Company’s brand? Is it fundamental to the company’s image? …or is it a secondary objective? Attract the right talent to the organization Deliver the brand promise to customers. HR has a role to play also in defining and delivering employer branding.

AG 9 Organisation culture How risk-averse is the organization? Does it encourage or stifle creativity? Is it open or resistant to change? To what extent does it encourage knowledge- sharing inside and outside the organization? Is there a knowledge management system in place? Has the company set up discussion communities around key issues? Is the word “Innovation” often used in internal communications? Is the company more dynamic and fast-moving or more cautious and bureaucratic? A company’s culture is critical in delivering and encouraging innovation Business Strategy People & Organisation Technology: Process Information

AG 10 Metrics Which metrics does the company use today? Are these encouraging the desired behaviour of employees? How are bonuses set? Do they encourage innovation or are they purely results-driven? Are there qualitative as well as quantitative elements in the goals? Are incentives individual or team- based? Measuring success will drive behaviour Processes & services Leadership Quality Strategic Partner Change Agent IntoOutWithin Efficiency Effectiveness

AG 11 Talent architecture Attract, develop, plan and retain key talent with an integrated view Define each role’s specific technical and personal characteristics. RETAIN TALENT DEVELOP TALENT ALIGN WITH STRATEGY ATTRACT EMPLOYEES SORT OUT AND SEPARATE INSERT IN ORGANISATION HR OPERATIONS People- based strategies HR can help line management define the right Talent Architecture for the company

AG 12 Training Assess current skills and gaps Plan & carry out targeted training activities –Team Building –Acquiring specific technical know-how –Tools for creativity and innovation mind-mapping Brainstorming …

AG 13 Performance HR together with top management, has the key role in creating and maintaining a High Performance Organisation Engaging people’s hearts and minds to deliver profitable growth. Establishing stage-gate processes for innovation –allow new ideas to be assessed and tested –Ensure that less-profitable or less relevant innovation projects can be stopped before the investment in them becomes potentially unprofitable. IDEA GENERATION DISCOVERY DEVELO PMENT FEASIBILTY LAUNCH TESTING The Innovation Process

AG 14 Improving your innovation potential Innovation Potential Metrics Branding Organisation Culture Performance Training Talent architecture

AG 15 Case study: the Innovation process at Manpower Global vs. local innovation validation Confirmed Global projects Country’s process innovation efficiency and effectiveness Country’s market services innovation Corporate Centers teams innovation for new activities allows local innovations and global leverage when relevant Source: Manpower

AG 16 Networking as a competitive advantage Most of today’s innovation happens in Teams Joint projects business – academia Knowledge management Managing Networks inside and outside companies Working with start-ups Corporate venturing Transferring ideas from scientific research into business Focus on skills, technology and processes that build collaboration: communicating, sharing information, organising, co-ordinating

AG 17 Appendix

AG 18 The HRM Paradigm Shift HR practitioners, in making the change to business leaders, need to shift their focus from just ‘managing resources & processes & transactional efficiencies’ towards defining & managing the framework for a high performance organization

AG 19 The Challenge for HRM Resourcing Talent Achieving High Performance Talent Development Creating a Quality Work environment Recognition, Reward, Remuneration Benchmarking … Key to success in this transformation are: –Ensuring a coordinated and integrated HR service offer, from candidate attraction to separation –Aligning people with strategy

AG 20 The world of employment is changing The war for talent is accelerating Retention and Development are critical Re-skilling is a key challenge as low level skill structural unemployment is emerging Workforces are more and more mobile Individuals have new life style expectations : –more innovation –creative thinking –less hierarchy –new employment models Leading corporations must embrace the wave of change

AG 21 RETAIN TALENT DEVELOP TALENT ALIGN WITH STRATEGY ATTRACT EMPLOYEES SORT OUT AND SEPARATE INSERT IN ORGANISATION HR OPERATIONS EXPLOIT INNOVATION POTENTIAL People- based strategies Assessment Career Development Transfer HiPo pool management Compensation Incentives Rewards (tangible / intangible) Performance assessment Technical assessment Separation and Outplacement Evaluation and planning of needs for Perms Temps Consultants Attraction & Selection Mobilization of attraction assets e.g.Company Culture e.g.Salary & Package e.g Brand Induction Training Perms Temps Consultants On site management for temps Perms + temps co-productivity management Employee + consultants teams co-productivity management Definition of needs Training Team Building Motivation Alignment measurement Enabling innovation Reward for innovation Labor Relations management Legal management HR “back office” processes (pay, 401k, benefits, etc.)

AG 22 The Innovation Process IDEA GENERATION DISCOVERY DEVELO PMENT FEASIBILTY LAUNCH TESTING