92 93
how companies work
Human resources
$316
mil lion
the amount paid
in staff bonuses by
John Lewis in 2013
The UK-based John Lewis chain of
department stores is famous for its
unique employee-owned structure,
in which every worker is a partner
in the business. It has a number of
employee communication policies:
Gazette Employees can send
letters directly to management
through the weekly gazette.
Managers publish their responses
in the gazette for all to read.
Partnership council Made up
of 80 elected partners from across
the business, the council meets four
times a year. The chairman and
directors report to the council,
which can remove the chairman.
Branch forums Elected by
employees at each branch, these
forums work with management to
influence the running of their store
and select local charities to support.
Case study
John Lewis
CREATE
AWARENESS
The purpose of
employee forums
is explained at a
company-wide
video conference.
AID UNDERSTANDING
Resources placed on
the company intranet
detail how employee
forums will work.
STIMULATE POSITIVE
PERCEPTION
An inspirational seminar
illustrates the benefits
of the new forums.
ADOPT AND SHARE
Employees attend forums
and then share their opinions
on Twitter and Yammer so
they feel involved and
collaborate with managers.
ESTABLISH PRACTICE
A company-wide
awayday illustrates
to employees
how the forums
have changed
working practices.
REINFORCE AND
INTERNALIZE
Regular face-to-
face updates show
employees how
forums have
made a difference.
US_092-093_Employee_Communications.indd 93 21/11/2014 16:22
Project management
Besides day-to-day activities, a business may have projects that are
one-time, temporary, specific pieces of work. Projects need to be
managed to deliver on time, within budget, and to specifications.
How it works
The process of project management
takes a complex project from start
to finish. It requires a different
set of knowledge, experience, and
skills from a mainstream operation
because the goals set up have to be
achieved within defined limitations.
These constraints include scope,
time, quality, and budget. A project
team might include people from
different organizations, diverse
disciplines, and multiple locations.
Successful project management
involves not only overseeing
the people working towards the
particular objective, but also
managing the risks, schedule,
relationships, individual and
team input, range of stakeholders
with vested interests in the project,
and financial resources.
Effective project management is
increasingly viewed as a strategic
competence (see p.85) for any
business because it enables the
introduction of new products, new
methods, and new technology.
Steps in project management
There are many workable project management systems, using various definitions
for the key stages, all of which are encompassed in five main elements.
Initiation
Project charter, including
business case, objective,
scope, budget, deliverables,
and schedule
Roles and responsibilities
Resource allocation
Planning
Detailed plan of work
Critical path analysis
Risks
Execution
Coordinating people and
resources
Quality assurance
Communication to team
and stakeholders
Project management tools
There are many different project
management tools, particularly
for software development. One
tool is PRINCE2®, a process-based
approach to project management
within a clear framework. The
emphasis is on dividing the project
into manageable and controllable
stages with a defined structure for
the project management team.
NEED TO KNOW
Planning
Detailed plan of work
Critical path analysis
Risks
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how companies work
Human resources
Every project comes up against challenges. These are some of the common ones,
and the ways that effective management can keep the project on track.
HURDLES AND HOW TO OVERCOME THEM
Monitoring and control
Measuring effort and progress
Managing and mitigating risk
People management
Closure
Finalizing all activities
Communication
Learning—project review
97%
of managers*
believe project
management
is critical
to success
*surveyed from 34 different countries
Obstacle
Project management
Options
Project is not
on schedule,
or running
short of time
Map out timeline of work and critical paths
using tools and techniques.
Review remaining work and identify risks,
barriers, and mitigating strategies.
Negotiate scope, budget, and
resources.
Inform other teams and see if
any changes can be factored in.
Seek clarity from sponsors
and/or senior management.
Communicate to identify why
change is important and how to
incorporate, or find alternative.
Review project charter and revisit vision
and objective.
Involve team so everyone understands
direction of work and avoids stalling.
Manage requests for change against business
case and project objective.
Unclear
vision or lack
of clarity
Scope creep
(project
changes once
under way)
US_094-095_Project_Management.indd 95 21/11/2014 16:22
94 95
how companies work
Human resources
Every project comes up against challenges. These are some of the common ones,
and the ways that effective management can keep the project on track.
HURDLES AND HOW TO OVERCOME THEM
Monitoring and control
Measuring effort and progress
Managing and mitigating risk
People management
Closure
Finalizing all activities
Communication
Learning—project review
97%
of managers*
believe project
management
is critical
to success
*surveyed from 34 different countries
Obstacle
Project management
Options
Project is not
on schedule,
or running
short of time
Map out timeline of work and critical paths
using tools and techniques.
Review remaining work and identify risks,
barriers, and mitigating strategies.
Negotiate scope, budget, and
resources.
Inform other teams and see if
any changes can be factored in.
Seek clarity from sponsors
and/or senior management.
Communicate to identify why
change is important and how to
incorporate, or find alternative.
Review project charter and revisit vision
and objective.
Involve team so everyone understands
direction of work and avoids stalling.
Manage requests for change against business
case and project objective.
Unclear
vision or lack
of clarity
Scope creep
(project
changes once
under way)
US_094-095_Project_Management.indd 95 21/11/2014 16:22
Negotiating strategy
Skillful negotiation is vital in business when two or more sides have
different viewpoints and each party wants to press for their own
advantage. The ideal outcome is a compromise that resolves conflict.
How it works
Like many aspects of business, negotiation is a
process to find a mutually acceptable solution. Before
any discussion, each party must work to understand
the other’s interests and decide on strategy; otherwise
talks can end in stalemate, bad feeling, and loss of
business. Being able to negotiate is vital to build
strong working relationships, deliver a sustainable,
well-considered solution (rather than a short-term
fix), and avoid future conflicts.
Reaching agreement
Any strategy, from a wage negotiation between a trade union and employer to a
sales negotiation between a customer and a supplier, depends on the relationship
between the two parties. Good negotiation should leave each party feeling
satisfied with the outcome of the discussion and ready to do business again.
Prepare and plan
Set objectives and ideal
outcome (and assess
those of other party).
Rank and value issues
and think of possible
concessions.
Consider ideal agenda
and meeting place.
Rehearse.
Define ground
rules
Agree on logistics—
location, room setup,
agenda, schedule,
number of negotiators.
Define etiquette, such
as no cell phones, one
person speaks at a time,
formal breaks.
Agree on how
information is to
be presented and
recorded.
Propose, clarify,
and justify
Ensure both sides have
equal opportunity to
put forward their case.
Clarify any points of
disagreement.
Focus discussion on
understanding rather
than resolving.
Bargain to solve
problems
Offer alternative
proposals and
concessions.
Discuss what is
acceptable to each side.
Aim to find win-win
solutions.
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how companies work
Human resources
With international negotiations, it
can be hard to read body language
signals, particularly since the
meaning of gestures can vary.
BODY LANGUAGE IN
DIFFERENT CULTURES
65%
of face-to-face communication
is through non-verbal signals
Agree, close,
and implement
Conclude with an
agreement that is
mutually acceptable.
Clearly articulate and
note agreement and
concessions.
Formalize agreement in
writing and follow up.
Eye contact Chinese
people avoid direct eye
contact to show respect
while American people
see lack of eye contact
as a sign of shiftiness.
Facial expressions
When emotions are
high in the US, it is
acceptable to frown,
even to swear, but not
to cry. Japanese people
might smile or laugh,
but never frown or cry.
Head movements In
much of Europe and the
US, people nod to mean
yes and shake their head
to mean no. But in some
parts of the world, such
as in Bulgaria, it is the
opposite way round.
Gestures Western
cultures use a hand
extended towards a
person to indicate
“Come here”. Chinese
people would see this
gesture as offensive.
Posture In the US,
being casual is valued;
people might slouch
when standing or sitting.
In some European
countries, such as
Germany, a slouching
posture is considered
rude. Formality is
also valued in Japan,
particularly the ability
to sit upright and still.
US_096-097_Negotiating_Strategy.indd 97 21/11/2014 16:22
96 97
how companies work
Human resources
With international negotiations, it
can be hard to read body language
signals, particularly since the
meaning of gestures can vary.
BODY LANGUAGE IN
DIFFERENT CULTURES
65%
of face-to-face communication
is through non-verbal signals
Agree, close,
and implement
Conclude with an
agreement that is
mutually acceptable.
Clearly articulate and
note agreement and
concessions.
Formalize agreement in
writing and follow up.
Eye contact Chinese
people avoid direct eye
contact to show respect
while American people
see lack of eye contact
as a sign of shiftiness.
Facial expressions
When emotions are
high in the US, it is
acceptable to frown,
even to swear, but not
to cry. Japanese people
might smile or laugh,
but never frown or cry.
Head movements In
much of Europe and the
US, people nod to mean
yes and shake their head
to mean no. But in some
parts of the world, such
as in Bulgaria, it is the
opposite way round.
Gestures Western
cultures use a hand
extended towards a
person to indicate
“Come here”. Chinese
people would see this
gesture as offensive.
Posture In the US,
being casual is valued;
people might slouch
when standing or sitting.
In some European
countries, such as
Germany, a slouching
posture is considered
rude. Formality is
also valued in Japan,
particularly the ability
to sit upright and still.
US_096-097_Negotiating_Strategy.indd 97 21/11/2014 16:22
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