Orion Group

MT: “Lets start with a summary of what is meant by this characteristic of 'world-class' organisations
Partnering is natural where there is ownership. Inversely, ownership comes more naturally where there is partnering. When ‘ownership’ and ‘partnering’ extend across functional boundaries both internal and external to the organisation, an action community is mobilized around seamless business processes to deliver on peak-to-peak levels of customer service. In other words, the organisation is more than just its formal structure as a legal entity. It lives as part of a much wider “business echo-system” where formal boundaries become purposefully blurred.
MT: “What does business partnering entail?”
Some of the best-hidden 'world-class' organisations rely on business partnering to solve their problems. Suppliers, customers, and companies outside of but aligned with their particular industry – all of which form the contingent that drives them to their unusual achievements - surround these organisations. They build strategic alliances with both suppliers and customers and see all stakeholders in the business as being potential alliance partners.

For example: The Chase Manhattan Bank pride themselves in extending their banking business to partnering with their clients in what is traditionally outside the spheres of traditional banking business. In November 2000, Chase partnered with Ceridian’s PowerPay.com to offer small business customers internet and traditional payroll processing and HR services. In February 2003, Chase announced a partnership with Deloitte Consulting to assist its large corporate customers with a procurement efficiency service.

MT: “Where do competitors fit into the ‘partnering’ picture?”
Even competitors are seen as training partners for fitness and not as adversaries. They actively seek confrontation with strongest competitors in the world and seek demanding customers and follow them wherever in the world they go. This phenomenon is known as ‘co-opetition’ where co-operation and competition exist side by side.
MT: “How do 'world-class' organisations grow and nurture a culture of ‘partnering’ ?”
'World Class' organisations depend on the total involvement of their employees which is driven by continuous learning which in turn, drives continuous improvement.
In fact, 'world-class' organisations place a premium on empowerment and involve the workforce as true business partners. This implies involving people across the organisation where the strategic intent becomes common property and grows organically, vertically and horizontally across the organisation as ‘moments of truth’ manifest themselves.
An example of this process is to be found at a ‘famous brand’ South African consumer organisation which shares its long term plans with employees by way of an annual publication and then invites input and commentary for the immediate one year plans. Information and views are fed up and down the line and are tested for clarity and viability. Although functional directors make final decisions, the plan itself is carefully communicated to all levels of the organisation in stages of detail and complexity. This way, the strategy becomes ‘common property’. Even the strategic intent – which is this organisation’s desire to develop a new brand of business and identity, follows an opinion seeking process.
Care is taken to ensure that all stakeholders irrespective of level of the organisation are treated as all being able to make valued contributions. Personal interactions and events are therefore conducted in a manner that includes all stakeholders as far as is possible. Virtually nothing is sacrosanct. Information is transparent and carefully crafted so that it can be given to and be understood by all in the organisation. All stakeholders are involved early in the identification of the problem or opportunity and are invited to give input to and assume joint ownership of organisation strategies. Consultation or consensus is dependent on level and type of decision to be made. Jack Welch adopted the view that employees have to be treated as an integral part of the business. “Allow them to take part” he said, “and you will discover employees becoming a good deal more conscientious. And conscientious employees automatically become more productive.”

MT: “Building a partnering relationship with customers appear to be pivotal to the phenomenal success of 'world-class' organisations. Could you expand on partnering with customers ?”
'World-class' organisations know instinctively that their ability to stay ahead in a global market is to be best at customer service by establishing business partnerships with their customers.

The importance of customer interface in this ‘business partnership’ is even more profound when it is realised that ‘happy’ people in the organisation have happy customers. Bob Head, MD of the UK’s revolutionary Egg Bank made it quite plain when he said “if you want happy shareholders, if you want happy customers, you’ve got to have happy people working for you”. Unfulfilled frontline employees make for unhappy customers and an army of unhappy ex-customers. This, by implication, means that where there is a positive employment relationship all along the value chain where ‘moments of truth’ follow one another as internal and then external customer requirements are met, the ultimate ‘moment of truth’ where the final customer’s needs are met, is positive.
Sears, a retail giant is the US ascribe satisfaction of their customers to “happy” employees who fuel overall organisational performance. Their view is that if their staff are happy, smiling and enjoying their work, they will perform well and the customer will enjoy the experience. If they are miserable, their customers will be equally miserable.The way employees feel therefore is ultimately the way their customers feel. Many organisations turn their employees into quality terrorists by the way they treat them. Research reinforces the fact that employee attitude correlates highly with customer attitude which is why 'world-class' organisations put a premium on employee satisfaction with their work life as a driver of external customer satisfaction and business results.
A senior executive at the Disney Corporation described the importance they attach to employee satisfaction as a driver of customer service as follows. “Committed, motivated and productive people have a sound relationship with the organisation that employs them. That has a direct rub-off as to how they treat their customers. Such people are a valuable asset to the organisation. Poor relationships, on the other hand, become the breeding ground for ‘lousy’ attitudes and poor commitment – for which the customer bears the brunt. Such people are a costly liability”.
Southwest Airlines in the US, commit themselves as follows. “ …. Above all, employees will be provided the same concern, respect, and caring attitude within the organisation that they are expected to share internally with every Southwest Customer”.
Kopke, the immediate past Chairman of DaimlerChrysler South Africa provides an apt summary in explaining the value of innovation through partnering. “It is only through the satisfaction of our own people and the satisfaction of the people in our dealerships and suppliers and, the strength of our partnering with them, that we can achieve in customer satisfaction”.
MT: “To what extent is ‘partnering’ lived within the organisation?
'World-class' organisations have made the transition from a ‘coercive relationship’ with their members to that of a ‘partnership’ where there are reciprocal rights and obligations between the parties on a basis of equality. This unlocks the “hidden value” of the intellectual and emotional capital of the organisation which is in the “power of the minds and hearts of its people”.
A famous consumer brand organisation”, deepen the emphasis on partnering with a values slogan “Unlocking potential together” . This commitment removes traditional boundaries in the organisation that create dysfunctional silos - where departments and disciplines pursue their goals in isolation at the expense of unleashing the potential of an integrated, boundaryless organisation.
Partnering on the basis of equality therefore goes hand in hand with participative practices and flatter organisation structures designed around process, where people are empowered to remain close to their customers. Business cards with the sub title “associate” for all people in the organisation is therefore not uncommon amongst 'world-class' organisations
MT: “What is the one outstanding characteristic of transformational leadership?”
Aware that line management is logically best positioned to manage this ‘partnering relationship, 'world class' organisations endorse the intent that line management takes full ownership of managing individual and collective relationships with their people. This view has long since been reinforced by Beatty and Schneier (1997, Vol. 36,1, p 29) who report that the latter half of the last decade of the 20^th century saw the most popular emerging role promoting HR being that of a “business partner” to line who take ownership of managing the relationship. They point out that this change in role for HR has led to the re-engineering of HR processes – one of which has been exporting of some HR work back to line management. Describing the process that HR must follow in becoming a strategic partner, Ulrich (1997, p 61) identifies a number of principles as central to organisations with HR best practices. One of the most significant on Ulrich’s list is that line managers are accountable for people management as a key piece of total business management.
The phenomenon of line management assuming increased accountability for people management is causing the ‘traditional’ HR function to re-assess its role and function in the organisation with a view to integrating the management of human resources practices into line. The paradigm shift in how HR is viewed and practiced in 'world class' organisations is illustrated in figure 8.

Figure 1: HR integrated into line


Figure 8 illustrates how the ‘traditional’ HR function is giving way to line management taking accountability for people management practices and hence people relationships. HR as ‘coach’ and ‘strategic business partner’ is assuming a wider organisation change and leadership role, ensuring optimal and seamless use of HR transactions housed in a shared service capability.
This shift from the traditional HR function which becomes integrated into line implies that

Line management is undergoing a ‘paradigm shift’ in their thinking and practice in that they have to assume responsibility for some fundamental people management practices which directly impact on the employment relationship.
HR is undergoing a similar shift in their thinking to dismantle the structure of the ‘traditional’ HR Department. This implies skillfully integrating people management practices into line where HR plays an integrated role as business partner, guiding and supporting line with a ‘HR Toolkit’ and systems that become enablers for line to fulfill this role.
HR is ‘letting go’ by outsourcing low level transactional work to a centralised shared service center so that it can focus on value adding strategic business decisions and tactical implementation plans … and in the process, integrating and operationalising sound people management practices into these plans.
In its new role, HR is broading its skills, knowledge and hence competence in every area of HR and that of the business as a whole. For example, in this new role, a HR practitioner is no longer be able to ‘hide’ a weak side to for example, Industrial Relations or Learning and Development by referring such work to a specialist manager in its discipline. Simply put, HR practitioners are becoming multi-skilled. More than that, HR practitioners are developing a relatively deep understanding of business processes and principles to be effective. This implies transcending from being solution providers to becoming business partners.