A people strategy is a fundamental requirement for competitive success.  It defines a clear value proposition that the organization uses to attract and retain the right people with the right skills. It also addresses how you help your people make the biggest contribution they can make to achieving your business strategy.

Our case studies provide examples of how we can help.

  Our capabilities include

•     Comprehensive knowledge of human resource management practices
•     Expertise in transforming the Human Resources function into a client-driven service provider and business partner
•     Development of human resource strategy aligned with business strategy
• Strategic human resource planning
• Labour negotiations
• Development of compensation, benefit, training and performance management plans and programs that reflect desired business culture and values
• Human resources technology and systems  

• Implementation support that builds internal organizational capability

Case study #1:  Transferring skills in mergers & acquisitions

The issue:  A small services company had the financial backing to make its first acquisition.  It had a target identified, but lacked the internal HR expertise to take it through the important due diligence phase and, if necessary, acquisition and integration.

The solution:  Working with the senior HR team assigned to the due diligence process, Smith Knox assisted in interviewing key personnel, analyzing and assessing the cultural challenges that acquisition and integration would present.  With the input of management regarding key skill sets and unit cost of business operations, we reviewed available staffing data, assessing the size of the workforce that would be necessary following merger.  We estimated voluntary turnover, and the cost of employee contracts and severance. We also estimated the cost of litigation and pension and benefit plans, as well as  the costs of  the merger of HR policies, plans and programs. The estimated size of the required workforce reduction was provided to the facilities team. 

Finally, Smith Knox helped put a price tag on lost productivity due to the challenges presented by the need to merge two disparate cultures, and began development of a plan to minimize these costs. Consolidated costs and a detailed breakdown were provided to the Finance team responsible for consolidating and finalizing the bid.

Following the successful acquisition bid and shareholder approval, we worked with existing staff to develop and implement a plan to merge operations and cultures, integrate HR policies and programs, and minimize productivity loss.

The impact:  The two organizations were successfully merged, within target timeframes and budget.  Importantly, Smith Knox transferred knowledge and skills to the organization that would enable them to manage their next acquisition.

Case study #2:  Aligning strategy and compensation plans

The issue:  This commercial property development organization was changing its business strategy, requiring employees and management to focus their energies in new directions.  Turnover rates had increased by 20% overall in a two year period and it was suspected that the existing incentive plans didn't reward staff for modifying behaviour and meeting the new requirements of the business model.

The solution:  As a first step, Smith Knox benchmarked base salaries and total compensation against the competitive market,  learning that the company was paying in the 30th - 40th percentile on a total compensation basis.  The adjustments that would be required to bring compensation into line with market, if base salary adjustments alone were applied, was prohibitive.  We recommended moderate immediate salary increases, coupled with an accelerated merit review program for top performers.  We also helped in revamping the performance management plans to assist managers in more clearly identifying "the best and brightest" of existing staff.

Next we recommended design changes to the incentive plans, ensuring alignment with organizational strategy and goals, cascading from the executive level to the front line.  The new incentive plans increased the leverage for superior performance, resulting in total compensation at the 45th - 50th percentile for standard performance, and total compensation at the 60th - 65th percentile for top performers.  It was recommended that, as business improved, compensation targets be increased slightly, but only through increasing the leverage of the incentive plans.

The impact:  Turnover rates declined and business results improved over the course of the next year.  An analysis of turnover and performance ratings indicated that poorer performers were leaving the organization voluntarily, while the top performers remained. 

Case study #3:  Transforming the HR function

The issue: The Human Resource systems and practices in this organization were affecting the bottom line.  It was a transaction-oriented function and, with no single authoritative source for data, which was either paper-based or resided on multiple systems, discrepancies in employee pay and benefit information was common.  The majority of HR staff was administrative, focused on the problems of trying to “get it right”.  As a result, little in the way of consultative business support was being provided by HR to the operational management team.

The solution: Smith Knox supported HR staff in developing a business case and gaining management approval for a web-based solution that was fed by an upgraded HR management system.  This required development of a detailed picture of new processes, procedures and policies that would maximize the advantages of the web architecture. The new technology would be enhanced by a new HR structure that included a transactional call centre and client-focused HR consultants on the front line.

We worked with HR and in-house IT staff to design and implement processes and controls to help define requirements for use of the technology, as well as data definitions and project team responsibilities.  Benefits of the web-based functionality were maximized with self-serve portals for employees and management, permitting on-line benefits enrolment and timely attendance and salary planning data for management.

To address the cultural impact of the changes on HR, line managers and employees, Smith Knox supported a cross divisional group in selecting a group of employees to participate in application testing and overseeing the development of employee communications and training materials. Finally, we assisted in the development of a high impact launch program, designed to generate interest and fun, and incent employees to get on board with the changes.

The impact:  The systems were promoted to production. The call centre went through a busy transition period and the new HR Division is continuing to improve service levels and reduce costs with its new delivery model.  Best of all, with HR staff no longer focused exclusively on transaction processing and fire fighting, HR professionals are being moved into business support roles, with senior consultants assigned to specific client business operations.

Send Mail to webmaster@smithknox.com with comments or questions about this web site.

Copyright © 2003-2011 Smith Knox & Associates Inc.

Last modified June, 2011