HR Corner Creating strength from diversity by Marc-Yannick Ceyton Advances in the world of technology depend on a combination of talents As one of the world's most high-profile companies, Philips has consistently led the way in developing innovative products which have an impact on everyday life. Despite their pre-eminence in lighting, medical systems, consumer electronics, domestic appliances and personal care products, they have nevertheless decided to "reinvent" the company for the 21st century. The basic intention is to focus more closely on core competencies in healthcare, lifestyle and technology, and to promote the new brand promise of "Sense and Simplicity". Linked to this is the concept of encouraging diversity among the workforce and a unity of purpose, which will be created by applying the "One Philips" philosophy. According to Tjerk Hooghiemstra, corporate human resources head and senior vice president, the strategy is to build a company that is "made up of many faces and a workforce that cannot be diverse enough." With a global headcount of over 161,000, it is recognised that future competitive advantage will come from successfully engaging staff and bridging cultural divides. "Aligning the way of thinking, culture, behaviour and brand positioning is key for diversity and inclusion," says Mr Hooghiemstra. To this end, there has been substantial investment in human resources, reflecting the belief that success depends on the quality and contentment of employees. Success is down to the people who make up our global family Asian presence Aware of the enormous business potential in Asia, Philips was one of the first multinationals to set up in Hong Kong. It established operations in mainland China 20 years ago and is now the country's largest international employer with around 40,000 staff, either employed directly or with subsidiaries. Indeed, Mr Hooghiemstra notes that the Dutch-headquartered company is becoming increasingly Asian in outlook. "We are picking up the energy and the enthusiasm of the region and our changes are driven by the opportunities we see here," he says. A willingness to evolve and an eagerness to learn from local partners have become distinctive corporate characteristics. Mr Hooghiemstra has been visiting the region to explain the new strategies, engage management and bring a new focus to the workforce. He emphasises that, for continued success, there must be a shared sense of purpose and motivation. In meetings and workshops for some 1,200 managers, he has therefore been outlining the reasons, plans and objectives, which are all part of the new approach. These are being communicated openly from the boardroom to the factory floor. "We believe that our success is down to the people who make up our global family," he says. One point he has highlighted at each stop is that Philips realised consumers were becoming increasingly alienated from the company's products and the latest applications of technology. As a result, it was decided to refocus on core competencies and excel in the design and innovation of products that people found easy to use. This involved listening to customer feedback and making use of local knowledge to develop new "people friendly" products. The goal was to make them practical and not overloaded with technological features that might never be used. Brightest minds Besides this, extra efforts have been made to create a more professional workforce. This begins at university level by recruiting the brightest minds and aiming to benefit from the input of ideas that each new generation can bring. While candidates are generally attracted by the company's prestige and reputation, Mr Hooghiemstra stresses the importance of providing the best possible working environment, excellent training and the flexibility to move between jobs. "In the end, people are not just attracted by packages but the best place to work and learn," he says. To create this, the company set up think tanks, drawing together professional experts from all areas to give their unique insights into how to make improvements. They helped to assess opportunities, evaluate the future level of expertise needed for various industrial activities, and reviewed how to generate maximum value for the business in light of the current competition. Since diversity is such a key part of the corporate culture, the company has also put the need for equal opportunities high on the agenda. In employing people from different backgrounds and with various skills, Philips has made a point of never discriminating on the grounds of race, gender, disability or religion. In addition, they have emphasised that good communication at all levels is vital for the health of any organisation, which explains Mr Hooghiemstra's dedication to spreading the word about the latest changes. He says that the company is getting ready for "bold jumps forward". In looking to the future, winning strategies will be built first and foremost around people. Every product will be designed for sense and simplicity, with user needs considered before anything else, and the internal human resources policy will continue to put people first. Salient points Initiative to focus on three core business areas and products which are easy to use Aim to achieve a shared sense of motivation and purpose Policy of creating diversity among the workforce to draw on a wide range of talents Strong emphasis on open communication at all levels Bring in external experts to further business opportunities Taken from Career Times 15 July 2005, p. C8 Your comments are welcome at [email protected]