Calculating Risk by Jolito Ortizo Padilla

Innovation is a risky business. I repeatedly find that when I talk to business leaders about innovation.  They complain that their organization has become "risk averse". They complain of the need for new ideas and yet so much of our work in quality management has been designed to remove variation and at the same time remove risk. In the current financial climate , facing the aversion of risk has become stronger.

Paradoxically, the only way out of the present situation is to change and take risks. This does not mean risks have to be wild and random , but it does mean that they have to be taken in the recognition that future will occur. One of the strongest attributes on innovator must possess is willingness to fail and, most importantly , learn from that failure. Silicon chip manufacturer Intel says that if it is not getting ten failures for every success, it is not taking enough risks.

A new product portflio needs to contain those offerings that will come to fruition in the next three years, but also products and services that may not hit the market for five or even ten years. We assess that long term risks and give it a high percentage error, but keep re-evaluating the risk on a regular basis as we gain more knowledge about our new idea. Xerox , a highly innovative company evaluated its history of new offerings and found that the median return on investment was seven and a half years.

One of the other fundamental errors we make in tough times is to go looking for new customers. It is far less risky to focus on retaining your existing customers and finding new products and services that will keep them interested through tough times. This does not mean cheaper, it means radical. Radical means risk. Radical is the right kind of risk.

The risk that companies repeatedly fail to assess is their external risk. Youcan be certain that if you are making a new offering then you have new suppliers or subcontructors. Frequently we will assess their product or service but not assess their management system The quality management system of your supplier has as much, if not more, influence on your level of risk than the product does.

For xample, say you have four new suppliers involved in one product. Three of them have a 90% probability of delivering your product to you and the fourth has a 40% probability. Your overall probability of this coming together is 0.9 x 0.9 x 0.9 x 0.4 = 0.29% This is clearly a serious case for risk mitigation . Use your internal audit capability to assess your new suppliers and work with them to overcome their weaknesses if they are critical to your success.

The other external risk is in the delivery chain. Too often we leave this until it is too late to change and find we have insurmountable obstacles to getting a product to market. At the onset of the innovation process when identifying an opportunity, you will also identify potential new customers. Take your closest customers with you through that innovation journey and have them ready for your new offering when you hit the market.

A classic story of faiure to assess delivery chain risk is attributed to Michelin. The company developed its amazing " run flat" tire back in 1994. However, it did not adequately evaluate the risk of original equipment manufacturers and  garages failing to adopt the tire, both of whom needed to invest in new technology. To this day the company has not broken into the volume market. The good news for Michelin was that it found a ready customer in the military where the tire became a must for ligh-armoured vehicle

Innovation is a risky business, but your risk can be calculated and should be constanly recalculated as you gain knowledge. Your risk can also be migrated and you have the tools and techniques for doing that within your existing quality management system.

The Cuture Challenge by Jolito Ortizo Padilla.

            

Globalization is a fact of modern day business life, and as manufacturers and suppliers spread across the world, driven by the need to find emerging markets, so those who service their support needs spread with them. For many, this is unchartered territory and brings a need for a level of sophistication for which their experience , tools and systems are often unsuited.

The quality practitioners preach consistency as a means of obtaining repeatable results, but do the rules means the same to everyone? Why are there perceived differences in performance in different countries? Is this linked to national culture? Are these real and important differences or are they just a question of bias or misinterpretation?

There is a substantial body of literature regarding national culture traits as they relate to multicultural business operations , such as outsourcing , but relatively little on the effect of multicultural environment on the effective implementation of a quality management system. While some parallels exist between these types of business, the specific nature of QMS implementation in a multicultural environment offers potential for performance improvement. With the questions above in mind, the basis for a research project was formulated :" Does correlation exist between levels of QMS implementation and national cultures, and can this be explained using existing knowledge of cultural traits?"

Context and culture
Successful organizations have specific methods and tools to support their business strategies and often have well-documented procedures to ensure these are implemented consistently. These methods and tools are adapted as the organization grows, to take account of changes in scale and strategy. In many Western based companies , the unifying effect of such rules is generally thought to outweigh the limitations they place on individuality  and conformance  is strongly encouraged.

As growth and geographical distribution combine to turn an organization multicultural, across cultural boundaries , there is a risk that the one-size-fits -all approach to quality may no longer offer the same level of performance. The reason is simple- people from different cultures are different and culture specific traits affect the ways in which people respond to the environment

The knowledge based engineering sector relies heavily on people; usually working in groups encompassing multiple technical disciplines performing complex and interrelated tasks. This amplifies the need for structure, clear, concise communication and well managed interfaces between group members. It makes extensive use of complex tools and processes, but is very difficult to mechanize or otherwise automate due to the high level of human cognitive input required.

The research project was based around Flour Corporation, a global provider of engineering , procurement, construction and maintenance services with more than 40,000 employees. It provided services ranging from small capital project and maintenance contracts up to mega projects with values of up to seven billion dollars. This range of scope types and sizes necessitates flexibility in approach while maintaining consistency in method- a difficult balance to strike even under ideal circumstances.

Working in project task forces ensures that all technical knowledge and experience required for successful execution of the work available at a single location , which helps to optimize communication and leads to consistent results. A task force can be organized in several ways and can be at one or more locations. The range of work performed within Flour means that some flexibility in project structure is essential, but in general the matrix organization system in most prevalent with a project manager on the operational axis, a department manager on the functional axis and lead engineers at the junction of these axes. All other project team personnel report to the lead engineers.

Within Flour , project managers are responsible for profit and loss while department managers are primarily responsible for the quality at work. Both delegate a portion of their work to the lead engineers for the project execution purposes., but both retain ultimate responsibility for their respective roles. There is an inherent potential conflict between the priorities imposed by the need to deliver good quality safely, on time and at the right price. The balancing act between all variants of the matrix organization requires a near-symbiotic relationship between all staff to achieve an appropriate balance between objectives.

An additional complicating factor is introduced when work processes are shared across national- and therefore cultural-boundaries. A single QMS is applied in all locations., but there may be differences in how ground rules are interpreted and applied. If these differences can be identified and explained based on known theories about national cultures, we could reasonably expect to be able to develop improved methods and approaches to reduce variation and optimize the results achieved. At Flour , the potential value in establishing whether a one  -size-fits -all approach to the implementation of a QMS on a global scale is potentially very significant.

Research in Action

To carry out a project , the following primary research objectives were established:
- To outline and analyze the established theories on cultural aspects in terms that are relevant to the implementation of a common QMS in a multinational corporate environment.
- To undertake primary research at a number of locations , such that the data fairly reflects the cultural diversity and supports the research objectives, while ensuring availability of objective evidence.
- To establish to what extent the espoused theories are valid at the locations studied.
- To derive learning from the research, in order to define how to improve quality performance through better implementation and application of the QMS and related tools, methods and systems in each distinct cultural environment.
- To make recommendations on how best to use the knowledge gained from the research in order to hold any gains made.

First, it was important to settle on a definition of culture. Humans are complex and difficult to analyze even on the individual basis and the research design had to separate the work culture -specific issues from other influences as much as possible.

Geert Hofstede, author of Culture and Organization, defined a number of cultural dimensions with which he attempted to explain differences between cultures. Two of these dimensions, power distance index and individualism , showed potential correlations with quality-related issues. For this project , these were selected as a means of measuring correlation between the research and existing data on national culture traits specific to the countries in which research was to be performed .

As Flour Corporation's QMS is intended to be applied at all locations and is freely available through Flour's expert system, Knowledge On Line, it should be equally well known to all employees , regardless of geographical -and thus cultural-origins.To carry out research , staff questionnaires had been decided upon,but further investigation on this method revealed that responses number were likely to be poor (less than 20% is not unusual), response time slow and the degree of differentiation in answers might be limited as respondents are often reluctant to take the time to fill in the questionnaire and may choose what they think are "appropriate" answers rather than expressing their true opinion.

This forced a rethink and after some consideration the method of applying questionnaires in the context of structures interviews was chosen. This approach was more time consuming, but was much predictable in terms of response. A total of 308 interviews were held in six offices on three continents ( North America, Europe, and Asia) with a final response rate of over 90% -which in itself justifies the additional efforts.

The interviews were based on a fixed protocol to minimize the effect of interviewer intervention. In addition to the questionnaires, interviews were recorded on a digital voice recorder as objective evidence. Respondents were selected randomly from the group concerned. The results were tabulated using spreadsheets, with data entry cross-checked for accuracy. Pivot tables were used to aid analysis of the data and comparison tables were constructed to compare the functional groups at each location and across different locations.

The results

The area researched is merely the tip of a very large iceberg floating in a vast sea of national and company culture. The research was limited to that  small part of the iceberg visible above the surface., but some conclusions can be drawn. Culture is a lot like gravitational force -you can't see it, touch it or feel it but attempt to defy it and you may regret it.

Flour's offices in the West have been operating for many years and achieved maturity through diligent application of systems and tools. The Asian offices are younger, but have reached maturity under the leadership of Westerners with experience of, and sensitivity for, the culture concerned and with the essential support of local management teams skilled in adapting company culture to fit local requirements.

These office environments have had time to mature and develop the project environment required for effective work sharing and dispersed execution is much more dynamic , with short start up times and schedules. People have to learn to work together quickly and are expected to work at full capacity from day one, so they are often less able to benefit from a good level of experience and understanding in cross-cultural communication. This is inherently dangerous, as awareness of cultural differences depends to some degree on contact with people from other cultures, the likelihood of which decreases as we go deeper into the organization while the effect of differences gets potentially larger. The results of this research have provided some insights into where to focus the necessary attention and resources in order to achieve the desired improvements.

Use of Hofstede's work on dimensions of national cultures helped provide an understanding of how the collective, conformist culture of the East differ from the individualist, non-conformist culture of the West. The results demonstrated measurable differences in the levels of QMS implementation , both between geographical locations (and national cultures) and functional groups, but also indicated that the overall level of QMS compliance in Flour Corporation is very high. In most cases, differences at an individual or functional group level are compensated for by the team approach that is so essential for effective and efficient project execution.

The way the different cultures responded to investigation may account for at least a portion of the observed differences. The strength of Flour's company culture has been the driving force behind the one-size-fits-all approach that has been remarkably successful across the globe. Differences are often more easily attributed to communication and the perceptions of those concerned rather than clear cut evidence of variation in implementation methods, and this in itself is a key conclusion.

All Flour employees have access to the required tools and procedures , so failures are mostly due to human error and not to system failures. This shifts the emphasis to communication and awareness as a means of preventing and detecting failures , which is coincidentally also an area where differences in national cultures are more marked. Westerners "tell it like it is", which can very offensive to Eastern cultures. Easterners avoid conflict because it is impolite in their culture and attempt to get the message across subtly, which the Westerners find frustrating and generally incomprehensible. These differences in perception and communication methods offer potential for improvement in executing projects across cultural boundaries.

An additional significant benefit derived from the research was the large quantity of data relating to the differences between functional , as opposed to the cultural groups. While not directly relevant to the research , this information is essential to understanding differences in the way work is performed by the groups  at the different locations, as the current prevalence of work sharing and dispersed execution requires high levels of cooperation between geographically distributed locations for success.

There are also differences in the way projects are performed within a single culture, simply because the people who make up the team are individuals and a system that is so prescriptive as to prevent this would be unworkable in practice. Each project team must find a way to fulfill the requirements , but there is room for both individual and group interpretation in how this is achieved, provided the agreed requirements are met. The research provided no evidence that national cultures would be a barrier to achieving this; in fact the differences between cultures can be beneficial if well understood and effectively communicated.

                                                                                   END

With Matthew 7:7- Life will be easy...

What A Wonderful Life....

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Successful professional development requires the ability to reflect and self-critique. To progress you need to challenge yourself to improve. Start by asking yourself some key questions to identify the areas you need to work on, and then look to someone who's already "made it" for inspiration

 First, identify what you are aiming  for. Do you want to gain expert knowledge in a particular area such as sustainable purchasing or outsourcing? Do you want to achieve exceptional motivational skills, demonstrated by a highly productive team or performance improvement from a particularly challenging staff members? It could be excellent presentation skills, evidenced by consistently high levels of attention and interest by attendees. Or perhaps you'd like an enviable track record of successful negotiations, which encourages non-purchasing colleagues to ensure you are on their team whenever significant expenditure or investment is required. 

Next, you must consider what you need to do differently to reach this position. This includes considering how much additional training or experience you need and whether you should conduct yourself differently in front of your peers, staff and managers. Question how much you need to modify your current behavior, attitude and approach to both your day- to-day activities and important events. How much more tolerant of others' shortcomings would you have to be? Do you need to improve your listening skills? What about your appearance? How might you need to alter your dress and the manner in which you carry yourself? 


An effective way of determining how to implement positive change is to model your behavior and attitude on someone you admire- someone who is already where you want to be. Think about people you know who demonstrate all or some of the attributes that you've identified you need to succeed. Why do they stand out? How do they open conversations and presentations? Pay attention to details such as how they sound and the types of things they say or don't say. How do they  think? How much attention do they give to people in various positions of importance? How trustworthy are they? Do they consistently do what they say they are going to do?


Think about what it is that makes them look and sound confident and in control. How well do they use the expertise of the team around them rather than believing they have to know the answers? What else can you learn from them? If they had to handle a tricky situation , what would they do? Consider how differently you would see the world if you were in their position and how much clearer your career direction would be.


To reach the top in your career you need to ask yourself the right questions, recognize in others the characteristics of success, and be bold enough to regularly and consistently take action to reduce gap between where you are now and where you really want to be.

On A Lighter Side: Catching Japan's Autumn Glory on Camera. My well deserved vacation in Japan...

Ah! What A Wonderful Life when you Glorify God...Thanking HIM  for all the Blessings that HE gives us and  my Family.

At this dazzling time of the year, it seems half of Japan's reputation turn into photographers journeying to their favorite spots or seeking out new ones around the city as they capture the myriad colors of autumn leaves.

Doing that, though, is not as easy as looks, and millions go away frustrated with photos, overexposed, burn out-strikes, blurry shapes and muted colors.

Whether you meander through Tokyo Parks or follow the crowds to the capital's outlaying mountain areas of Takao, Okutana or Saitama, photographing Koyo autumn colors, like anything else, takes both technique and imagination-not to mention cooperative whether and good equipment, such as DSLR (digital single -lens reflex ) camera.

Unless you have a momije (japanese maple) growing in your apartment , you will probably be shooting outdoors, and that means having to deal with problematic skies that enjoy fooling a camera's light meter.

If you must have a blue sky in the shot, try early in the morning, before clouds spill into the background and cause subjects in the foreground to be overexposed. Tokyo's morning skies in December can be bluer than at any other time of year, and can even be bluer than at any other time of year, and can even evoke a morning in Nepal or Tibet. This window of blue, however rarely stays open for long, so grab it while you can.

Since it's hard to control the sky, you can avoid it altogether by taking it out of the shot. You can stand on a pedestrian bridge overlooking the ritzy Omotesando boulevard, or on a bench in nearby Yoyogi Park, and shoot downwards. Or if you must shoot upwards , stand directly under a tree and shoot the comucopia of foliage directly above.

But don't forget , or fail to notice, that the trees themselves have striking shapes, and silhouetted branches can bring out of the color and pattern of leaves by contrast.

For wide angle shots of sakura (cherry-blossoms) trees-which I behold in their crimson glory along the Meguro River-try "bracketing" your images by shooting different exposures of the same subject. Alternatively, try holding the exposure-reading of the sky and then moving the camera down to take the shot. If this darkens the foreground too much, you can use a "fill flush"-even bright daylight -to illuminate tress, people , or pets in front of you.

If you keep on experimenting, you will eventually get an image you like, even by accident.

Meanwhile , using the camera settings to " saturate" colors, or alter the "color temperature" and "color tones", is a great way to bring out the reds and yellows of say, tress at Koishikawa Gardens near Tokyo Dome, or city center Shijuku Gyoen Park- which is surely a contender for the most beautiful metropolitan park in the world.

Many Canon or Nilkon DSLR cameras, for example , allows sharp shooters to play with these levels to wild degrees. It's a great way to bring out colors in low light conditions under milky skies. The photo might not look exactly the same as what the naked eye sees, but it can often communicate to a viewer, the impression that color first made upon you, and how it made you feel.

As I cycle or hike around Tokyo in search of the perfect leaf , I find it hard to keep my hands still, due to the brisk weather and my racing heartbeat. The solution: a tripod. A tripod is perhaps the most important piece of gear, and the one most often overlooked by casual photographers. A tripod allows you to shoot comfortably and creatively in the low light that creeps into Tokyo parks around 4pm at this time of year, and even earlier in the mountains.

With a tripods , you don't have to worry about camera's mount , adjust the legs , compose the shot, and fire away. Better yet, set the timer , in order to reduce any lingering camera shake from fingering the shutter release. Be careful to detach the camera from tripod and carry it separately when walking to the next shot, otherwise, you might end up feeding your camera to the fish in a pond.

Thanks to my rusty tripod, I keep the ISO level, at say 50, 100, or 200,  in order to retain the texture of leaves and bark , and still shoot at an unhurried speed of 1/30th of a second. At these speeds or slower, I can slightly blur falling leaving or passing pedestrians, while retaining sharp focus on an immobile free or temple. Best of all , the tripod allows me to capture unsusual colors-such as the crimson or orange carpets of fallen leaves in Yoyogi Park-as light seeps out of the sky.

By choosing your shots well and using a tripod , a high -ISO camera-such as Canon 5D Mark 11 or a Nikon D3S-you will be able to capture night-time colors the human eye cannot see. And incidentally, it will also give you an insight into how dogs, cats, birds, and soldiers can navigate in the dark.

That's because , by employing technology similar to military night vision goggles, a high ISO camera can illuminate a path and help you find your way down a dark forest track in areas such as Okutama, where hikers get almost daily at this time of year.

Even with a tripod and high ISO camera , however, it's still not easy to photograph just one tree, or just one leaf. There are too many trees and far too many leaves to choose from. It was much easier when we were kids, picking one leaf out of a file taking it have and pasting it to a book.

But whether taking one leaf or whole vistas of trees, the key thing is to relax and slow down and not fire off hundred of shots like Austin Powers at a fashion show. Instead spending minutes or even hours fine tuning a shot will , in a manner akin to Zen meditation, awaken your senses to a new world of pattern and light.

For intimacy , many enthusiasts and pros will use macro lenses to get superclose to a leaf against a contrasting background , such as a river or a tree bank in the hood of a black car. Since macro lenses can be quite expensive and heavy , you can try shooting a single leaf at a high speed -to reduce the blurring effect of camera shade-and then crop it closer later on your computer.

This is a great reason to watch world class photographer at work outdoors. I once saw a Japanese artist spending a whole afternoon setting up a shot of leaves falling from a tree in the city center's Hoyama Cemetery. He waited until the afternoon light was just right, and then caught a few leaves falling on a tombstone like angels visiting a deceased relatives.

Likewise, David Guttenfelder, AP's chief Asia photographer-wholives in Tokyo when he's not out in the field-reminds me  of a heron stalking a fish. Whether peering into a forest of red leaves, he will study the subject and wait until the composition, exposure and expression are all just right to tell a story and have an effect on million of viewers.

Even for amateurs with mobile phones , patience and passion can often lead to interesting photographs. If an image really strikes you, and you feel very strongly about it, it's worth shooting it, because chances are others will feel the same. A good rule is to take the photo from exact  place and angle the first struck you.

But don't stop there. Move your feet and test out other angles, which might reveal even better points of view. Many pros like so-called "fixed primes" such as 28mm, 50mm, 0r 85mm lenses -because unlike zoom lenses, they force them to move their feet and find more revealing vantage points.

Finally, after a few force in the sun shooting 300 photos of trees, take the time on the train or a home to delete the junk and keep the best 30, or so, instead of posting all 300 on Facebook or Flicker.

Your Career Questions Answered by Jolito Ortizo Padilla - Letter sent from Bahrain Telecommunications (BATELCO)

Thank you for reading Strategic Management: Building Competitive Advantage at Amazon's Kindle 3G...

>>The Problem: I've heard that Change management is beneficial for organizations, but I don't know how it works. What does it involve?

>>The Answer:
Change management can be extremely beneficial but can be damaging if implemented haphazardy. Change is integral to organizations in order that they adapt to stimuli, both internal and external.

There is no agreed manner of implementing change. There are, however, factors that must be considered to meet the organizational need to adapt. Initially, desired changes require clear identification. Also, there must be consideration given to the desired impact of changes on performance. Other changes , such as changing core business functions, are more difficult and will involve clearly defined processes at the outset.

There are several key steps:
- Identify reasons for change, desired outcomes , training needs, HR, legal framework and health and safety
- Implementation: consultation, engagement, documented discussions
- Ensure dates and key milestones are agreed, including staff needs
- Make the change
- Evaluate the change at regular intervals and monitor for effects
- Make any adaptations as indicated during evaluation

Most important is identifying the need for change and desired impact. Be clear on goals at the outset and ensure there are mechanisms to measure effects. Be prepared to listen and seek feedback. Finally no change is ever perfect so accept failures and build on success. Hopefully the end result will be fitter for purpose than what  was in place before.

>>The answer: Excerpt from my book Strategic Management: Building Competitive Advantage on Managing Change:

Change Management involves analysing the current capability for change identifying resistance and determining a plan. The aim is to minimize disruption. Organizations that are skilled in successfully delivering change will benefit from a decrease in the cost and time required to action change and an increased probability of it being accepted by stakeholders.

An appropriate approach needs to focus on delivering change and an increased profitability in a visible  controlled and orderly fashion:
 - Investigating and defining change:
   Do we know the scope of the change?
   What resistance can we expect?
 - Developing the change:
   Is there support for the change at all levels?
 - Transitioning the change:
   What training will be offered to those affected?
   How will successes be celebrated?

Carving the right approach requires a sound understanding of change management principles. Organizations are increasingly aware of the importance of employing change teams which explains  the increased interest in developing change management intelligence.

Pushing Together by Jolito Ortizo Padilla

The means to motivate staff is within reach of any manager. Jolito Ortizo Padilla explains why

Motivating people to excel is critical. Why? Most businesses compete through the efforts of their people -if people's performance is second rate, the organization will quickly struggle. This is especially true when times are tough and organizations have to work harder to survive. But what do you  have to do to get people to give their best.

At work people are looking for their needs to be met by their employer. They are looking to be rewarded fairly for their contribution and in comparison to others. If organizations implement reward and recognition programs that achieve these requirements , people's motivation will increase along with their performance and commitment to the organization.

At first glance this is simple, but it is not as easy as it sounds, especially in the current tough times. Organizations have to first identify people's need, consider these in the context of corporate goals and then look at how they can best be met in a way that is affordable and fair to everyone.

Tailor made
People's needs are different- what motivates one person will not motivate another. Some people maybe motivated by money, some by flexible hours and others by recognition from their boss. The first thing an organization needs to do is find out what each person wants. If organizations are to win the talent war they must offer flexibility and treat people as individuals-adopting a one -size -fits-all approach simply will not do.

In order to simplify things to people's needs can be broadly arranged under the three headings: package, job satisfaction, and employability as demonstarted in my book: Human Resources Management in Action.

This breaks down to the following definitions:
- The package: Financial  incentives are important-people want to see a reasonable payback for the value they create. For some people and in some jobs pay will be the critical motivator. For example, a study by Jolito Ortizo Padilla 2007 found that for salespeople higher commission rates were the most preferred reward, while promotion and recognition were the least preferred. . However, pay can easily be matched by another employer so organizations need to motivate staff in other ways if they are to keep hold of them and get the best out of them.
- Employability:: Many people want a career not just a job. They know the future to be uncertain and they want to be ready with a passport for alternative employment. We know for example, that training and development and being involved in prestigious projects are particularly important to Generation Y.
- Job Satisfaction: People want to feel happy in their job. Many want to feel a sense of achievement and to work in an organization with values congruent to their own. They maybe motivated by  a sense of autonomy and a working environment where they are respected and recognized.

In order to motivate, attract and retain talented people , as well as be considered employers of choice, organizations need to consider the whole triangle. Organizations must recognize that people are motivated by a range of factors so offer greater choice and flexibiliity in the way they reward and recognize employees.

In view of this , many organizations have now introduced total reward. The idea of total reward is that the organization offers a single, fully integrated flexible package. Recognition is not just given through pay and benefits but also through less tangible rewards such as the work-life balance and the company culture and values. This approach goes beyond flexible benefits to provide employers with the chance to really sell their brand and what  it represents. It also empowers employees to tailor their work and surroundings to meet their needs.

Are you being fair?
People are motivated to get what they consider to be fair return for their efforts. They want to see what is known as distributive and procedural justice. The former is about whether a person feels that they will be rewarded fairly compared to people in relative jobs, both in their own and in other organizations. The latter is whether a person feels that the organization has a procedures in place to ensure that rewards are allocated fairly.

An example of where distributive and procedural injustice can be found is in the financial  sector. A recent report by the Equity  and Human Rights Commission shows that women working in banks are paid 80% less in bonuses than their male colleagues. The report also shows that starting salaries for women working in the financial sector are significantly lower than men. It said: Overall including bonuses and salaries, the gender pay gap in the city stands at 47% , compared with a national average of 17%.

So, what is the impact of this kind of inequality? Organizations that fall to reward fairly miss out on their best opportunity to foster real commitment from their talent-in this case talented women. Also, word soon gets around and it will become difficult to attract talented people to work for an organization where their efforts are not fairly recognized. If an organization is going to attract and keep the best people , it needs to ensure that the pay is comparable with other organizations and that it spends time developing a reward and recognition programs that is fair at all.

It seems obvious to say, but in working hard to motivate its employees, an organization must not forget its own needs. A reward strategy should flow from the business strategy and, as a result, focus on the behavioral and performance that supports the organizational goals. For example, if teamwork is fundamental to the organization's objective it would not be right to reward an individual's status-seeking behavior no matter how talented that individual may be. The employment proposition and employee branding describe what the organizations has to offer and reminds us that although trying to attend to the needs of each individual is important , organizations cannot be all things to all people.

Once an organization has developed a reward and recognition program it doesn't end there. If it is to work then people need to understand it and , very importantly, managers need to ensure they implement it.

Job satisfaction is the strongest predictor of whether people will stay with an organization and quality of supervision has a strong impact on job satisfaction. Unsurprisingly, that means that managers and supervisors have a critical role in the motivation and retention of talent. In fact the Chartered Institute of Personnel and Development reward survey 2009 reported that the biggest inhibitor to the successful operation of reward strategy other than budget constraints is line management skills and abilities.

Organizations must ensure that managers are equipped with the necessary skills so that they can provide the relevant support and feedback to staff and understand their individual needs.

Through Thick and Thin:
A 2006 study by Towers Perrin showed that companies with highly engaged employees increased their net income by 13% , while those with less engaged employees saw their income decline by 4%. The argument is clear :motivating and engaging your employees is not a nicety; it must be done to survive. Not only is it important for today but also for tomorrow.

Organizations that continue to commit to their talent in the tough times are much less likely to loose them when the good times return. Such organizations will also be an attractive alternative to talented people who have not been treated as well by other employers. In line with the argument, a recent report by PricewaterhouseCoopers titled Managing Tomorrow's People states the importance of sound HR decisions during the recession if organizations are to attract the most talented people over the next decade.

So how do you keep people motivated in tough times?
First communicate with people. Of course, the recession has meant that plenty of employers have been unable to fully meet the needs of staff or even preserve their jobs. Employees may well be resigned to their pay being frozen or cuts to training bugets but how these cuts are communicated can mean the difference between retaining the motivation of employees and not.

Those organizations that clearly communicate the situation and only make cutbacks as a last resort as opposed to preserving their executives' lifestyle are more likely to retain the trust and goodwill of employees. Senior leadership, HR and front-line supervisors and managers must all be consistent in their messages and employees should be motivated to support decisions, not simply told that this is how it is. If handled badly, insecurities build along with negative rumours and motivation can rapidly plummet.

A recent article in People Management revealed that " more than a third of employees affected by pay freezes or changes to their contracts during the recession have felt demotivated as a result". Also, PricewaterhouseCoopers poll of people who have experienced these measures found that 34% felt " demotuvated" while 8% felt "angry". While these statistics are not good , they do suggest that many organizations are doing some things right as by no means all employees are feeling demotivated by the cuts. Some organizations for exampls, encourage their people to take pride in being thrifty, incentivising low cost behavior and setting an example from the top. IKEA is one such example.

Secondly be creative and introduce rewards that  won't break the bank. While cuts may indeed be inevitable and cost conrol paramount , organizations can be inventive in their approach to reward and recognition without spending a huge amount . For example
             - Offering flexible working
             - A personal thank you note from the  CEO
             - Share options
             - Children vouchers-these are free of tax and national insurance
             - Awards for performance and long service

Procter and Gamble, for example, instead of stressing higher salaries highlights the opportunity for flexible working, working from home and family leave to look after children or elderly parents. Other organizations have "duvet days" and bean bag rooms that are designed specifically with Generation Y in mind.

Tougher times, combined with people's increasing desire for jobs that offer much more than a good salary , require organizations to be both skillful and creative in their approach reward and recognition. One thing is certain; those organizations that meet people's needs on an individual basis., in the context of the organization's goals and in a way that is affordable and fair to everyone , will reap the rewards for years to come.

RACI >>>> The Right People on the Right Job by Jolito Ortizo Padilla

Managing People is available in Samsung Galaxy e-book, Playbook, Sharp Galapagos tablet reader, Nokia Meego e-book and Amazon's Kindle 3G e-reader..

When you are sorting out who does what during the writing and publication of a document or completing other work, it is easy to fall into confusion about everyone's roles and responsibilities. Do we have to tell Jean about changes? Should John be allowed to stop publication? Is it worth asking Simon to help with the preparations?

It is in the detail of questions such as these where , if they are not clear and agreed, problems can later occur as the individuals either compete to do the same work or leave things undone as they assume others will be picking up the job.

RACI is a simple acronym for the four role of responsible, accountable, consulted, and informed around doing a piece of work.

Responsible
This is the person who is reponsible for actually carrying out the work. He or she may be a team leader who will engage others to do the work or may do it themselves. Whichever it is., they are given the task of writing the documents or otherwise completing the action. There can be a number of doers in any task.

Accountable
The person who is accountabe has their head on the block for ensuring the work is completed to time , to budget and to quality. They may also be responsible or they could be the responsible person's manager. Sometimes they may work elsewhere in the organization , in another department, or as external consultant and their main role is the approval of the completed work.

There is usually only one person who is ultimately acountable for the overall work, although individuals may be acountable within the team for separate activities and outputs ( and for which RACI may be used). A common question in a RACI -managed debate is: "Who's got A?" This is effectively saying: Who gets to make decision?"

The relationship between the responsible and the accountable person is clearly important and if they are not the same person or do not have a formal working relationship then some work may be needed to ensure they can collaborate effectively.

Consulted
When writing something where expertise comes from elsewhere or getting something done when others have an interest, it is often either useful or politic to ask them for input or otherwise garner their opinion in some way. This may be achieved through  surveys, focus groups, meetings, reviews or other interactions.

A trap can occur where those consulted think they have the R or A authority to change the work being done or block completion. However, while their opinion may be taken into account, they do not have this ability unless it is explicitly given.

Informed
These are people who are to be informed about the work, but who have no say about its content and no control over how it is implemented. This may well include people lower down the organization who will be affected by planned changes or people from other departments who might be impacted in some way.

In implementing change, keeping people informed is known to be good practice , although the style and timing of this must also be carefully planned.

Using RACI
In any planning activity, you can consider RACI for all activities as well as for general roles in the work. Roles can change significantly as dictated by expertise and formal position in the organization.

RACI planning is also a useful tool for highlighting issues such as "too many cooks spoil the broth", "not enough communication" and "nobody to do the grunt work". It can be useful to check that the work being allocated suits the style, preferences , expertise, and general job responsibilities of the people involved.