Thursday, January 16, 2014

The Human Factor

The Human Factor


There is one topic, apart from entrepreneurship, that I can talk about for hours (if it is not days) on end without getting bored with myself. Trust me, those who really know me became aware of this the hard way.. This topic is the Vacancy to Pay (V2P) process for hiring of external staff.

While working on that topic with various clients over quite some years now, it keeps on surprising me how far the chemistry is usually off in this part of procurement. While the people are far from stupid, the orders and targets are often pretty clear, and even every once in a while there is someone involved with some sort of vision, still somehow the stakeholders don’t mix. Outcomes of projects for optimization can be easily predicted: pointing fingers, harsh words, unsatisfied operational agents and most of the time at least one of the stakeholders that is not reaching its goals. Off course I am talking about the Hiring-stakeholder triangle of Procurement, HR Management and IT.

Okay, sure thing that the blood types of the average agent in those three business functions do not really match. Reference frameworks of the daily work could not be further apart and the primary work focus is quite something else when you work with people, savings or technology. But usually the claim is made that optimizing their Hiring-V2P processes together is difficult because their targets are differently set. And then there is that surprise again…! Because how can it be, that departmental goals within a company do not match, and thus do not add up clearly to the company’s global goals?

For the sake of argument, let us just conclude that any professionally driven organisation simply does not let that happen, so there must be other reasons like politics, general understanding, priority settings, etcetera. To summarize: the Human Factor is involved!

When we realize this, we can also conclude that optimizing the V2P process, and organisational aspects surrounding it, for any organization is never a matter of having a proper solution-set alone. It takes some managed change efforts at stakeholder level to get there, where the focus is “common ground”. Below some of my experiences to start the right path towards successful V2P optimization:

1.       Counter one-sided focus: Get the V2P change lead by a person who is, in behaviour, not explicitly a product of one of the three blood types, but knows her/his way in all walks of business involved.
2.       Level the playing field and manage priorities: Make sure that this neutral lead does not only have access to the highest levels of internal clients, but also to the common problem owner(s) above that (SSC-owner or Board).
3.       Lead the way, don’t hassle on orders: Realize that above tips give some clear pointers on the best-fitting profile and seniority of the required resource to lead the project.
4.       Grow your playing field together: Start any project initiation phase by investing in identification of common goals before you start drawing towards end results. This can take some time and workshop effort, but will certainly pay off!
5.       Constructive solutions come from constructive teamwork: Realize that above tip gives some clear pointers on the best-fitting profiles of the mandated project members involved for the initiation.
6.       Joint success means joint failure: Eventually initiate the change from both business stakeholders Procurement and HR Management, make sure the success and failure rests on both shoulders.
7.       Solutions support vision: Involve IT from a process-driven perspective and make them accountable for their part in the success.
In the end, a proper and accepted V2P solution is driven by logic, usability, cost-cutting capabilities and, certainly not at the least, added value in managing the price/quality ratio in temporary staff. No matter what the interpretations on targets and goals are, these will (or at least should!) always stand firm in a project that carries vision. And so these should be covered by the right mind-set for all parties involved in getting there.

The Human Factor is usually the problem but can also make the difference..

Doede van Haperen
www.lakran.com
www.postulit.com

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