Speaker Slides
We begin by assessing whether the company clearly articulates its purpose, to set out “why” it exists. Our emphasis is on clarity and meaningfulness here, such that we can conclude the purpose is clearly understood, supported by incentive structures and capital allocation, and can thus help to drive actions and behaviours of the company’s stakeholders… Our approach on this question is to consider how human capital is integrated into business planning (1-3 years). We look for the specific value outcomes expected from human capital across individual Output Cost Revenue Quality & External impact factors. Here we assess specific evidence of how the company links its planning and human capital to each of these elements. We award 1 point for the presence of continuous improvement initiatives, across the organization, highlighted during our discussions with the company. These learning model cycles are applied internally (e.g. Health and Safety) and externally…For example, the Supplier Sustainability Program uses Plan, Do, Check, Act learning model. …has also co- To score further here, we would like to see management explicitly measure and utilize information derived from at least five credible indicators that capture core culture drivers …including purpose, learning and innovation, performance management, trust and engagement with the workforce, amongst others. developed modelling process for its supply chain in order to predict the year-on-year improvement in supplier sustainability with 95% confidence, allowing …to determine the intensity of engagement needed with individual suppliers. How investment analysts have integrated human “intangibles” into valuation and corporate engagement
The company appears to foster high levels of trust in customers, employees, supply chain and wider stakeholders …Company customer satisfaction scores dipped in 2019 to below five-star but we are told they are again trending back at five-star...It is encouraging of a new sector ombudsman to ensure quality of product - score one point for cooperative relationship with regulator. Glassdoor reviews - 4.3 score and 89% would recommend to a friend. Trustpilot ‘trust’ score from customers of 3.9 out of 5. Company also has a clear and comprehensive whistle-blower process. Operationally, strong, decentralised decision-making of the brands limits the quantum of key person risk centred on the Chairman and CEO. Based on the nature of performance management of the group, we believe that employees are treated transparently, which suggests decision-making is relatively collegiate = 4 points…Overall, the group has also displayed good speed in decision-making when required (e.g. regional inventory allocation, which adapts to consumer travelling trends) and collective input especially with regards to innovation and creativity = 3 points However, we do not award … an additional point related to Inclusion and Diversity as we believe improvements can be made. … has improved the percentage of female executives to …and is expected to achieve its target of 25% of women in senior leadership positions by year end. … has set new diversity targets, announced…that aim for 30% of women in senior leadership by 2025. However, gender is only one facet of diversity and we would like to see further measurement, assessment and improvement around diversity metrics to award …full marks. Group management encourages an entrepreneurial spirit at the individual brands while offering support across talent and central functions.
7-ideas for what you can do in HR and L&D Promote [whole] system thinking and management
Build a discipline of connecting people to quantifiable value (and risk) Adopt common standards (e.g. value) and language that everyone understands (C-suite, HR, investors etc.) Help to align purpose, values & strategy and connect these with management systems and job roles
Build a high trust organization internally and externally Create a true learning organization; where everyone matters and contributes to success
Develop Leaders for a Stakeholder Value ( ESG or Impact ) paradigm where responsibility and performance is reconciled
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