Arrested development

I travelled to Sydney recently and sat next to the COO of a prominent company. He explained to me he had real concern about the talent management division of the HR department.

His primary complaint was they had not argued against a Board directive to freeze recruitment. “Even self-interest would dictate arguing against the freeze,” he humorously told me.
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But his real argument was compelling. He and other senior executives had spent a month on new budgets and changes to the strategic plan.

“It’s a whole new game plan but these idiots want to use the same players,” he said.

He then presented a compelling argument for the three R’s: reassess, restructure and recruit.

1. If the plan changes so do the players who can play the plan.

2. A changed plan involves different skills, products/services mix, risks and future direction – you need to reassess who does the job.

3. The reassessment will lead to a meaningful restructure for now with a careful eye on the future.

4. Recruit to meet new needs.

5. Gain commitment and endorsement of the restructure from key employees and carefully integrate the new employees into the new strategic plan and culture. This is the time to thoroughly imbed the purpose, mission and values of the new direction.

When I asked the COO why it was being thwarted at the HR level he crumpled his forehead and said: “Too many people want to look at cost savings, being popular with the CEO and not swimming against the tide. I don’t get it – it’s a recruiters market at the moment and there is a genuine mood in all workplaces to accommodate change”.

“Why does the word recession mean think negatively not logically?”

It was a good question posed by a clever, albeit frustrated businessman.

Sadly, for those companies that have failed to react to restructuring advice promptly they are now faced with the barriers of the Fair Work Act (effective from 1 July 2009) which includes:

• The broadening of the unfair termination and redundancy provisions.
• The loss of wage control and reduction through insourcing, outsourcing, merger, purchase, etc.
• The reemergence of the unions capacity to enter and reengage in management prerogative in things like – when can we use a contractor, how many casuals and labour hire employees you use.

From 1 July 2009 your opportunities to develop your business through structural change have been arrested! For the brave and clever – persist, but do so with an eye to careful and targetted recruitment.

Andrew Douglas is the founder, principal lawyer and managing director of Douglas Workplace & Litigation Lawyers. Andrew is an experienced commercial litigation and workplace lawyer, who acts both as a solicitor and advocate.