Centre for Business Performance Thought leadership from the Institute

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1 Centre for Business Performance Thought leadership from the Institute The flexible and profitable workplace A guide to implementing flexible working practices in professional services Suzan Lewis Manchester Metropolitan University Cary L. Cooper Lancaster University Janet Smithson Manchester Metropolitan University and Peter Brennan Manchester Metropolitan University

2 Centre for Business Performance Thought leadership from the Institute The Centre for Business Performance promotes and funds, through the ICAEW s charitable trusts, leading-edge research on performance-related issues of immediate and long-term importance to the business community. Its goal is to advance thinking and practice related to performance enhancement and value creation and to encourage discussion of new ideas by directors, entrepreneurs and others. If you would like to know more about the Institute s leading-edge, activities, please contact: Centre for Business Performance, Chartered Accountants Hall, Moorgate Place, London EC2P 2BJ Fax Tel: Website: icaew.co.uk/centre centre@icaew.co.uk The views expressed in this publication are those of the authors and are not necessarily those of the Centre for Business Performance of the Institute of Chartered Accountants in England & Wales. Chartered Accountants Trustees Limited. This report was produced with the help of a grant from the Institute of Chartered Accountants in England & Wales charitable trusts. These trusts support educational projects relating to accountancy and economics. The Centre for Business Performance manages all grant applications and copyright requests. September 2004 ISBN TECPLN3087

3 The flexible and profitable workplace A guide to implementing flexible working practices in professional services Suzan Lewis Manchester Metropolitan University Cary L. Cooper Lancaster University Janet Smithson Manchester Metropolitan University and Peter Brennan Manchester Metropolitan University

4 Contents Foreword by Kathryn Britten Preface About the authors Acknowledgements v vi vii viii Introduction 1 Case study 3 Moving forwards 3 How to use this guide 7 Overview of the process for implementing flexible working 8 Summary of stages in the implementation process 9 Phase 1: Pre-implementation 9 Phase 2: Exploration and analysis 9 Phase 3: Implementation 9 Phase 1: Pre-implementation 10 Rationale for the initial ideas stage 11 Key actions and how to accomplish them Identify a champion Put flexible working on the agenda Build an evidence database 12 Rationale for groundwork stage 12 Key actions and how to accomplish them Build a business case Produce an initial written proposal Identify as many senior people as possible to provide active and vocal support Hold a foundation meeting Identify a steering group Identify a pilot work team and a facilitator 15 Outcomes for Phase 1 15 Phase 2: Exploration and analysis 16 Exploring the current situation 17 Assessing the current climate organisation wide 17 Key actions and how to accomplish them Produce descriptions of the business drivers Assess the current climate for flexible working 17 Individual requests for flexible working Pilot group explores its working practices 19 Pilot group working practices and assumptions 20 Resistance 22 Summary of this process so far 22 Collaborative thinking on innovation 23 Key actions and how to accomplish these actions Problem solving Evaluation and proposal 25 Evaluation 25 Proposal 25 Outcomes for Phase 2 25 Contents iii

5 Phase 3: Implementation 26 Rationale for pilot innovations, including flexible working practices 27 Key actions and how to be accomplish them Prepare to pilot the innovations with the pilot team 27 Guidelines for implementation: are they necessary or not? 27 The dual agenda Pilot the innovations 29 Rationale for evaluation and diffuse learning 29 Key actions and how to accomplish them Assess outcomes Communicate the process across the organisation Communicate innovations to potential recruits Encourage ongoing good management of those who work flexibly 30 Outcomes for Phase 3 31 Concluding comments 31 Appendices Appendix 1: Background to the guide: the research 33 Appendix 2: Phase 1 Pre-implementation checklist 35 Appendix 3: Guidelines for making a written business case 36 Appendix 4: Example agenda for the foundation meeting 37 Appendix 5: Example agenda for the first steering group meetings 38 Appendix 6: Example agenda for the first pilot team meeting 39 Appendix 7: Phase 2 Exploration and analysis checklist 40 Appendix 8: Flexible working supportive climate index questionnaire 41 Appendix 9: Guidelines for individual staff making a case for flexible working 52 Appendix 10. Examples of what interview participants felt were good practices 54 Appendix 11. Outline of commonly used flexible working practices 63 Appendix 12. Phase 3 Implementation checklist 64 Appendix 13. Some useful references and websites 65 Appendix 14. Glossary 66 iv The flexible and profitable workplace

6 Foreword When both my teenage children told me, quite independently, that being an accountant was definitely not one of the career options they would want to follow, I realised that we were getting things wrong. Phrases like I want a life outside work and you and Dad really ought to get a life still ring in my ears. However, I don t think it is just my husband and me, both Chartered Accountants, that have miscalculated but the accountancy profession (and probably other professions) as a whole. We need to continue attracting young people to our profession but unless current members of the profession can find a way to ensure that the next generation sees accountancy as the valuable and flexible career path that attracted people like us, the quality of people who call themselves accountants will inevitably decline and our business will suffer or even die. This guide is the result of a large research project considering the issues surrounding flexible working. It grew out of the recognition by the ICAEW s WORKPLACE initiative, which I chaired for several years, that work-personal life integration is the most serious and potentially dangerous workplace issue to hit the profession in recent years. I am delighted, therefore, that the PD Leake Trust 1 was able to fund the Flexible Futures research project, which has culminated in the production of this practical and comprehensive guide for organisations that are forward-thinking enough to want to introduce flexible working arrangements for their people. The years during which the project has evolved reflect the changing times in which we live and work. There have been a number of legislative changes which force organisations to operate in a more family friendly way but these only melt away some of the sharp edges of what is still a very large and complex iceberg. The Flexible Futures research has shown us that there is a real business case for all organisations to embrace flexibility. This is not only to ensure that they attract and retain the best people but, in doing so, they enhance the quality of client services and hence profitability. Businesses that have already ventured into this relatively unknown arena are beginning to understand that there is no one size fits all solution and that flexibility works best when it encompasses a dual agenda, recognising both the needs of the organisation and the individual. Having learnt these two most important lessons, some organisations are now experimenting with unusual and innovative methods of working and already beginning to reap the benefits. This guide is designed to help organisations to climb quickly onto the flexible working ladder by enlightening them with the experience of others, both good and bad, when developing their own approaches. I hope it will help your business to avoid costly and disruptive pitfalls and will enable you to introduce an effective working regime that enables your business and the people who work in it to deliver their full potential. Kathryn Britten BDO Stoy Hayward June The PD Leake Trust is a charity associated with the ICAEW and all its grant applications are managed by the Centre for Business Performance. Foreword v

7 Preface This guide is the outcome of a two-year research project, Flexible Futures, examining flexible working patterns throughout the accountancy profession. It involved a survey of members of the ICAEW working in industry, professional practice and other roles, and a telephone survey of those responsible for HR in small, medium and large professional practices. It soon became apparent from the survey that there is a powerful business argument for developing two-way flexibility that is flexible working practices in which both employers and staff are willing to give and take, underpinned by a high level of trust. However, it is equally clear that many organisations are missing out by not developing such flexibility. Moreover, even when formal flexible working policies are in place, they are often undermined by long working hours, lack of trust and a prevailing belief that working flexibility is career limiting. Formal flexible policies may be necessary but are not sufficient to bring about fundamental change. To better understand the reluctance of some firms to introduce flexible working and the limited effectiveness and take-up of such schemes in other firms, we carried out in depth interviews with chartered accountants at different levels, working in a range of functions in small, medium and large professional firms. The interviews confirmed our findings that flexible working practices, if well implemented, have major benefits for business and client service as well as for individuals, and we found some examples where this worked very well. However this varies, not just between firms but also across different departments or teams within the same firms. We also identified major structural, cultural and practical barriers to effective flexibility. In the final stage of the research we worked with one professional team to begin to identify ineffective assumptions and practices and seek ways of building mutual flexibility to achieve business aims and support work-personal life integration. Drawing on all stages of the Flexible Futures project this guide outlines a process for implementing flexible working practices in professional services to achieve a flexible and profitable workplace. The process recognises the needs of professionals to have a life beyond work and uses this as an opportunity for innovation and learning. We hope that you will find this a useful tool that goes well beyond quick fixes of formal policies to provide a process of achieving innovative, profitable and above all, sustainable flexibility. vi The flexible and profitable workplace

8 About the authors Suzan Lewis is Professor of Organisational and Work-Life Psychology at Manchester Metropolitan University, Visiting Professor at the School of Management, UMIST and a Director of the Work Life Research Centre. Her research interests are in the area of work-personal life integration, with a particular focus on flexible working practices and workplace culture and she is the author of numerous books and articles on these topics. She has led many national and international research projects and is currently directing an eight-country EU study focusing on workplace practices and employee well-being in different sectors and national contexts. She also works with employers and governments, providing consultancy and undertaking action research. Cary L. Cooper is Professor of Organizational Psychology and Health at Lancaster University Management School, and Pro Vice Chancellor at Lancaster University. He is President of the British Academy of Management, Fellow of the (US) Academy of Management, Companion of the Chartered Management Institute and Fellow of the following professional bodies: Royal Society of Medicine, Royal Society of Arts, Royal Society of Health, The British Psychological Society and the British Academy of Management. He is the author of over 100 books and is co-editor of the Blackwell Encyclopedia of Management (12 volumes) as well as Editor of the Who s Who in the Management Sciences. He received a CBE in the Queen s Birthday Honours List in Janet Smithson is a Post Doctoral Research Fellow in Psychology at Manchester Metropolitan University where she has managed several national and international projects on work-life issues including studies of young Europeans expectations of future work and family, of organisational change and effects on family life, and of experiences of new parents in organisations. She has published widely in this area, particularly focusing on gender, on discourses of flexible working and work-life balance, on the psychological contract and insecure work, and on different qualitative methodologies for investigating work-life issues and conducting organisational research. She is currently managing a European study on transitions to parenthood. Peter Brennan is a lecturer in Psychology at the Manchester Metropolitan University and during the implementation of the research that shaped this guide worked for UMIST as a Research Associate. His personal research interests include organisational commitment in the accountancy profession in the context of changing work environments. Prior to his involvement in academic life Peter was a consultant to organisations implementing change. About the authors vii

9 Acknowledgements A number of people have contributed to the design and content of this guide: Kathryn Britten, Partner, BDO Stoy Hayward and former Chair of the Institute of Chartered Accountants in England & Wales WORKPLACE initiative, chaired the steering group for the flexible futures project and has provided analysis of content and appropriateness for the accountancy profession. Adrienne Collinge, HR Manager and David Gill, Partner, from Moore and Smalley, an accountancy practice in the north west of England, have given their time freely and have provided a reality check on the content of this guide. Julia Jameson, HR Director, Ernst & Young and Karen Cree, HR Manager, Ernst & Young, have provided guidance on the implications of flexible working for larger organisations. Karen has been a source of practical advice about implementation. Rose Gledhill, formerly Regional HR Manager, Grant Thornton, has been a pragmatic influence, keen to see something that is capable of working in the real world. Gillian Knight and Debbie Homersham, ICAEW, provided comments and design expertise throughout the research process. Rhona Rapoport, provided insight and guidance on working toward a dual agenda of workplace effectiveness and gender equity. This project comes from funding that was provided by PD Leake trust (a charity associated with the ICAEW). The Centre for Business Performance manages all grant applications. viii The flexible and profitable workplace

10 Introduction Employers can no longer afford to underestimate the importance of flexible working arrangements. As global economic and technological developments provide challenges and opportunities in the work arena, new forms of flexibility are needed to respond to changing professional needs. Furthermore, legislation on working time, parental leave, and the right to request flexible working mean that all employers are required to consider some aspects of flexible working time. But flexibility of working arrangement is not just a response to external pressures. It is an important vehicle for harmonising business and professional needs with employees needs to have lives outside work. Organisations can respond to requests for flexibility in a number of ways. They may accommodate the needs of specific employees, while leaving current norms and practices untouched. They may develop policies that apply to more people but still do not change the norm and ideal of non-flexible working arrangements. Or they may treat the desire of many people to work flexibly as an opportunity to be innovative and develop working practices that will enhance effectiveness and productivity as well as meeting employees personal needs 1. In the latter case real organisational learning takes place. This guide aims to promote organisational learning and innovation through two way flexibility that is flexibility that meets everybody s needs. Flexible working is defined here as any practices or innovations, formal or informal, which permit people to vary when and where work is carried out. Flexibility does not mean a reduction in hours of work, although this could be one of many flexible options. Neither are flexible working practices limited to formal policies. While formal polices are important there is often a gap between policy and practice and in many cases informal flexibility can be just as effective. The term work-personal life integration is used to emphasise that work is part of life, and that while individual priorities differ, men and women want to be able to function and find satisfaction in both their work and personal roles. The goal is for men and women to be able to perform to the best of their capacity within their work and personal lives. The guide is based on a national study across the accountancy profession the Flexible Futures project (see Appendix 1 for a summary). This research produced strong evidence of a business case for flexible and innovative working practices. Considerable demand for flexible working practices emerged from both men and women of all ages (though particularly from younger Chartered Accountants), for a range of different reasons. Indeed many people are leaving the profession because of the long working hours and lack of opportunities to work flexibly. Long working hours remain the norm. This is attributed partly to the nature of the work and the ways in which work is organised, but also influenced by the belief that constant long hours of work are necessary to demonstrate commitment. The long hours culture is part of taken for granted shared knowledge in accountancy. It is sustained by the assumption that this is just an inevitable part of the job, assumptions about the nature of service to clients, and by high self-expectations which are tied up with professional 1 See Lee, M.D., McDermid, S., and Buck, M Organizational paradigms of reduced-load work; accommodations, elaboration and transformation. Academy of Management Journal 43(6) Introduction 1

11 identity. If these assumptions are made explicit they can be discussed and challenged, but often they remain implicit. The long hours culture and undervaluing of those who are not at their desks for long hours are major barriers to the success of flexible working practices. The research nevertheless identified an emerging new culture based on the beliefs that: Having a life beyond work is important. Working shorter, more focused hours can be more efficient than long hours. The current system often rewards inefficiency by valuing those who spend more time doing their work. Currently however, these views tend to be seen as individual insights and are not yet ingrained in organisational cultures. Flexible working practices, that is working practices which enable people to vary where and when they work, can be used as a strategic tool for enhancing client service, staff morale and ultimately profitability. They can help to meet the challenges presented by changes in the nature of accountancy and in the wider context in which Chartered Accountants work, including changes in the recruitment context, the values and needs of new entrants to the profession, the changing working patterns of clients and the challenges and potential of technological developments. Flexible working patterns can challenge the norm of long working hours and enhance: Quality of life and well being of Chartered Accountants and those who work with them. Quality of client service. Continuity of service. Flexibility to meet peaks and troughs of work. Productivity and efficiency. Recruitment of high quality staff. Perception of firms as employers of choice. Retention of staff. The development of the full potential of all staff. The guide provides a process approach to innovation and change. This will help you to identify new practices which will be appropriate for your firm and not just suggest good practices on the basis that they have worked somewhere else. Although based on national research on the accountancy profession, the process is applicable to many other professions, especially those which operate on the basis of chargeable time for services to clients. The process used to implement work flexibility presented here is based on a dual agenda. That is, the goal for any change in working practices is to enhance both client service and consequently business profitability and work-personal life integration for staff. 2 The flexible and profitable workplace

12 Research indicates that these can be mutually dependent and not contradictory goals. Indeed sustainability of any flexible working practices implemented will rest squarely on the satisfaction of both aspects of this dual agenda. 2 There is growing evidence that by allying organisational improvement and staff benefit, in terms of equitable flexibility, both aspects of the agenda, organisational benefit and staff benefit, are more likely to be sustained. 3 Effective flexible working is therefore defined in this guide as that which satisfies both elements of the dual agenda. It involves a questioning of taken for granted norms and a willingness to innovate. Effective flexibility is not a favour or concession but is two way and built on trust and mutual respect. That is, employees who are empowered to work flexibly to meet their own needs are also prepared to be flexible to meet the organisation s needs. In order for flexible working practices to be effective it is necessary to look at organisational culture and practices which can either undermine or promote flexibility. The first stages of this process are illustrated in the case study below. Case Study The case study was carried out with a multi-disciplinary team serving one major client (the pilot team) as part of the Flexible Futures project on which this guide is based. Collaborative interviews were carried out with each member of the team, by a facilitating team, to discuss the nature of their work, how it is accomplished, why particular working practices exist, and what practices and skills are valued in this process. The aim was to understand current working practices, the assumptions on which they are based and consequences for the dual agenda of enhanced effectiveness and work-personal life integration. This revealed three major themes, which illustrate how working practices that are taken for granted as the norm can undermine flexibility and be counterproductive for both the quality of client service and for work-personal life integration. It also demonstrates the need to question mainstream practices which may not, at first sight, appear to be related to flexibility. If flexible working is to be successful in achieving business as well as personal life goals a range of organisational systems may need to be modified. The themes about counterproductive working practices, the assumptions on which they are based, unintended consequences for professional effectiveness and work-personal life integration and some possible actions for change are presented overleaf. Moving forwards Once counterproductive working practices, the assumptions on which they are based, and their negative consequences, have been identified, the next steps, all of which involve high levels of collaboration within teams and with a facilitator from beyond the team, include: Using the analysis and discussion of working practices and their consequences so far to brainstorm ideas for a possible pilot intervention, including challenging assumptions about what is possible. 2 This is based on the pioneering work of a research team working with US corporations and set out in their book: Rhona Rapoport, Lotte Bailyn, Joyce K. Fletcher and Bettye H. Pruitt, Beyond Work-Family Balance. Advancing Gender Equity and Workplace Performance, Jossey Bass, Wiley (2002). 3 Rapoport et al 2002 see footnote above. Introduction 3

13 Theme 1. Super pleasing the client Practice To always do whatever it takes to please the client. For example, if a client is late getting information in, the accountant must work all night if necessary to meet deadlines, rather than intervening at an earlier stage to ensure that the client submits information in time. Assumptions sustaining these working practices Strong players are those who are prepared to work long hours and at short notice The client should not be hassled to provide information on time. Caring about the client means putting work before private life. Ambitious promises to clients are necessary to be competitive. Consequences Extra work, increased deadline pressure and limited control over timescales and planning. Frustration at not being able to get on with the job (not feeling able to push clients for information). Constructive criticism of working practices not given because of fear of not being seen as a strong player. Commitment to the client is measured by hours worked rather than treating the client as an equal member of the team and working collaboratively with the client to ensure the best possible service. Reduced opportunities for flexibility and work-personal life integration. There may be long-term impact on retention of staff and continuity of client service. Possible actions Possible actions discussed with the pilot team included renegotiating expectations with the client treating the client as a member of the team with equal rights and responsibilities, in order to give better client service and to facilitate flexibility and work-personal life integration. For example this might include inviting the client to participate in the planning meeting. Theme 2. Trust and the meaning of flexibility Practice There are formal provisions for flexible working but no take up by this team because of low trust and the definitions of strong players identified in theme 1. 4 The flexible and profitable workplace

14 Assumptions sustaining these working practices It is necessary to be available to the client at all times. Staff should be seen to be working, even at less busy times. Staff may not put in the hours if they work flexibly or unobserved (in fact all the team members worked beyond their contract hours and were highly conscientious, but this was not always recognised). Flexibility is only required by women with young children. Flexibility is one way. It is viewed as a concession by management rather than willingness of both staff and managers to be flexible to meet business and personal needs. It is assumed that strong players do not have interests or commitments outside work or need to work flexibly. Consequences Long working hours. Reluctance to experiment with innovative ways of working which are often associated with greater efficiency (e.g. reduced hours working with staff judged by output, not input of time). Frequent interruptions or monitoring of staff because of lack of trust. This can reduce undisturbed time which is necessary to get on with the job. Lack of opportunities for flexibility even at less busy times is bad for morale. Some team members feel that their personal lives are not valued. Possible actions Implement and encourage a form of annualised hours so that team members can legitimately work fewer hours in the less busy periods and/or working from home to get uninterrupted working time. Have a moratorium period, where team members are not judged in order to give time for the initiative to work and for trust to develop. Acknowledge that flexibility is two way staff have rights and responsibilities. Theme 3. Working time Practice Regular long and inflexible hours. Time sheets are largely fictional, people tend to under report hours worked. Introduction 5

15 Assumptions sustaining these working practices It is unprofessional to record all hours worked when the budget is tight. If chargeable hours were not recorded people could not be trusted to do the work. Hours worked represent effort. Not recording all working hours makes people look more efficient and enhances promotion opportunities. Making all work visible would create legal and other problems. Time sheets are necessary to provide quality client service and to remain competitive. (Some of these co-existing assumptions are clearly contradictory.) Consequences Work that is not recorded because of tight budgets becomes invisible, with a negative impact on billing and efficiency as well as personal life. It is difficult to estimate accurately how long a job takes and therefore budgets may remain unrealistic. Staff morale is affected if chargeable time recorded is written off because budgets are exceeded. Focus tends to be on number of hours put into a job rather than outcomes. Opportunities for flexibility are obscured. Time for personal life is sacrificed. Possible actions Consider other ways of accounting for time that might help to shift the focus from input (hours worked) to output. For example ask for sheets of jobs or tasks competed rather than time sheets. Or look for ways of reducing hours of work that could also benefit the business. For example, if people have the flexibility to accomplish demanding tasks at a time and place they are most alert and productive, high quality outcomes will be accomplished in minimum time. This may necessitate the introduction of a system of value billing i.e. client pays the price for the job and the firm stands to make a profit or loss depending on how efficient it can be. The involvement and collaboration of the team in designing systems to facilitate this will be essential. Thus working practices that make it difficult to integrate work and personal life also have negative consequences for organisational performance and innovations are needed to meet the dual agenda. 6 The flexible and profitable workplace

16 Analysing barriers and enablers and considering what the team can do to enhance enablers and deal with barriers. Designing a pilot or experiment. This involves determining who will be involved, who will be responsible and how it will translate into more effective practice and better work-personal life integration. In this case study it was felt that small wins need to be achieved first, before tackling more problematic issues. Initial changes would relate to flexibility and trust, before the issues of client relations and time, which fundamentally undermine work-personal life integration, could be addressed. Developing evaluation criteria. Business needs are important flexibility is not just an entitlement. At the same time personal needs have to be considered for buy-in and commitment to change. Implementing an experimental pilot study. This will require a moratorium as innovative solutions can take time to work. It is essential that people should not be judged in the first phase of implementation so that they are free to experiment and innovate. Monitoring the pilot intervention and evaluating the experiment. Developing a strategy to diffuse the learning from this pilot project through the firm and the profession. This might include, for example, the training of internal people to facilitate the process. How to use this guide This guide presents a process for effective implementation of flexible working practices that can help organisations gain a competitive edge by providing excellent and responsive client service. It is important to recognise that the implementation of formal policies on flexible working, though often necessary, is only a first step in this process. Many organisations have excellent policies in place but very little take up or impact on day-to-day practice. The focus here is on how to move beyond policy to effective flexibility in practice. Everybody is responsible for making flexibility work at all levels. It is not just the responsibility of the human resources department, managers or individual members of staff. The aim is to enable organisations and teams within organisations to identify flexible working practices and innovations appropriate to their context and their specific business needs. What might be appropriate for global organisations in terms of flexible working may not be appropriate for medium-sized multi-site, or single-site organisations, while the needs of different departments or teams within an organisation of any size may vary, according to the work they do. Therefore, this process rejects a one-size-fits-all mentality, and instead seeks to reconcile the needs of the various groups within an organisation, its clients and staff. Often when starting a process of real change, if resources allow, it is useful to have an outside person or people, or someone new to the organisation, who is not embedded in the culture and does not take accepted practices for granted, to work with you. We call this the facilitator. This is based on a method that has been used successfully to effect changes in working practices rather than just policy. 4 4 Collaborative interactive action research (CIAR) is an innovative but proven method pioneered in the United States by Rhona Rapoport and a research team. CIAR involves working collaboratively with workplace teams and usually with an action research or other external group. See Rapoport, R., Bailyn, L., Fletcher, J. and Pruitt, B (2002) Beyond Work-Family Balance. Advancing Gender Equity and Workplace Performance, Jossey Bass, Wiley. Introduction 7

17 Overview of the process for implementing flexible working The process for implementing flexible working practices is divided into three phases: Pre-implementation; Exploration and analysis; and Implementation. A model of this process, and a summary of each key stage, is shown below. Phase 1: Pre-implementation Someone recognises the business need for flexibility Groundwork Phase 2: Exploration and analysis Assessing the current climate Collaborative thinking on innovation Phase 3: Implementation Pilot innovations Evaluate and diffuse learning 8 The flexible and profitable workplace

18 Summary of stages in the implementation process Phase 1: PRE-IMPLEMENTATION This phase in the process concerns persuading an organisation or team to adopt flexible, innovative ways of working as a positive and strategic organisational objective. Someone recognises the business need for flexibility: The champion collects evidence for flexible working, to gain support within the organisation. Groundwork: This stage focuses on generating interest, formulating an approach to the implementation of flexible working, overcoming objections amongst senior people and staff in the practice and getting a senior person s commitment. It includes the formation of a steering group and identification of a group to pilot any new practices a pilot work team. Phase 2: EXPLORATION AND ANALYSIS This phase of implementation focuses on benchmarking what is done now and devising rational responses to work demands. Assessing the current situation: This phase involves assessing the working practices and culture before implementation of effective flexible working. This includes assessing the level of support for flexible working practices, exploring current working practices and their impact on the dual agenda and identifying and challenging taken for granted assumptions which legitimise current working practices. Collaborative thinking on innovation: Collaborative and creative development of proposals for new working practices with the potential to enhance efficiency, add client value and provide staff with better work-personal life integration. Phase 3: IMPLEMENTATION This phase focuses on making flexible working happen, monitoring and communicating success inside and outside of the organisation. Pilot innovations: Flexible working practices and supports are piloted in pilot teams, with attention to the overcoming of cultural and other barriers. Evaluation and diffuse learning: Pilot innovations are evaluated and modified if appropriate. Then communicate and diffuse the learning more widely across the organisation for wider implementation. Finally communicate success and let potential recruits know about the commitment to genuine flexible working practices. This approach provides a vehicle for the innovative energy of a workplace team to work together to focus on identifying opportunities for effective mutual flexibility. The structure, purpose and direction provided by the implementation process allows teams who are well motivated and supported to generate solutions which are workable and innovative in their specific context. Collaboration and involvement will help to ensure that team members are committed to making it work. Overview of the process for implementing flexible working 9

19 Phase 1 Pre-implementation It may be necessary to persuade some partners and others that effective flexible working arrangements can be beneficial to all. This section provides some strategies that may be useful in overcoming the early hurdles to implementation. Phase 1: Pre-implementation Someone recognises the business need for flexibility The champion Flexible working on the agenda Build an evidence database Groundwork Build a business case Initial written proposal Senior person as a vocal supporter Foundation meeting Steering group Identify a pilot team Phase 2: Exploration and analysis Assessing the current climate Collaborative thinking on innovation Phase 3: Implementation Pilot innovations Evaluate and diffuse learning 10 The flexible and profitable workplace

20 Rationale for the initial ideas stage Many of the participants in the Flexible Futures research recognised that flexible ways of working can enhance professional effectiveness as well as meeting individual needs. However, because of the dominant culture of working long and inflexible hours they did not realise that many others shared this insight. There is a need to network with others who understand the benefits of flexible working to build support. This section deals with these initial stages see the checklist of actions in Appendix 2. Key actions and how to accomplish them 1. Identify a champion In order for flexible working practices to be considered and followed through, someone in the organisation needs to take ownership. This would ideally be a Senior Partner, who would become a vocal supporter of the change process for flexibility and innovation. In most cases he or she will delegate the initial work in driving the project forward to someone else in the organisation, responsible for strategic change. This is the champion, who will work with the senior vocal supporter. Research shows that initiatives generated by HR alone without commitment and support from the top of the organisation will often flounder. 2. Put flexible working on the agenda Do this by discussing with others in the organisation their views of flexible working and note both positive and negative expectations. This may take a little time as management and senior people may need to reflect on their views. In the Flexible Futures research, the issue of how to put flexible working practices onto the management team s agenda came up constantly. However there were some surprising findings. In most firms the objections to more flexible ways of working were found to be more imagined than real. For example, a manager in a global accountancy practice commented that per cent of the senior people were in favour of flexible working arrangements from first discussions, per cent needed convincing and per cent were cynical (see Figure 1). Figure 1: Initial responses to flexible working in two organisations 30% in favour 40% need convincing 30% cynical 10 to 20% in favour 60 to 80% need convincing 10 to 20% cynical Small/medium-sized accountancy practice: Attitudes of partners prior to implementation of flexible working practices Large accountancy practice: Attitutdes of partners prior to implementation of flexible working practices Phase 1: Pre-implementation 11

21 People asking for flexibility under the new regulations can help to put the issue on the agenda provided that there is a willingness to regard this as an opportunity for strategic innovation rather than a threat to be contained. 12 The flexible and profitable workplace 3. Build an evidence database Employers that take account of employees needs for work-personal life integration as well as business needs and are highly rated by their staff (see for example the Sunday Times Employer of the Year Awards) consistently outperform other organisations. Collect evidence to support the case for flexible working that is well implemeted and supported by the culture and systems of the organisation. This involves collecting information on the success of flexible working arrangements and innovative practices elsewhere and building a coherent case for its introduction and support in your own organisation. This evidence can come from a variety of sources, including: Media articles. The national press regularly carries articles on flexible working and workpersonal life balance and recent articles tend to recognise the need to go beyond mere policy implemention. Professional journals and books. But look beyond impressive looking lists of policies to evidence of the benefits which can occur when they are taken up and to changes in everyday working practices. Information from colleagues in other organisations. Internet sources from the DTI and others (see Appendix 13), including the ICAEW briefings on the Flexible Futures research findings. See also Lewis and Cooper (in press). Rationale for groundwork stage The objective for this stage is to move the idea for flexible working from thought to a concrete action plan with a defined agenda. Key actions and how to accomplish them 1. Build a business case The business case for flexible working is critical in persuading senior people in an organisation or workgroup of the value of flexibility and should be integral to the central business strategy of the organisation or team although the full extent of business benefits rarely emerge until later in the process. For example, if there is a drive to improve the provision of specialist services to clients, flexibility can help to recruit the best specialists. The business case should recognise the overall strategy of the organisation and contribute to its achievement. The Flexible Futures research revealed a number of issues which can be useful in devising a business case: Retention. If we can t retain our staff because other organisations provide more attractive and mutually flexible working arrangements, we will lose our star players. Retention of high-performing, motivated and loyal staff, continuity of service to clients/customers, reduced costs of recruitment and training, and maintenance of corporate memory all contribute to a business case argument for implementing flexible working. The cost of recruiting new staff can be quantified to strengthen the case. Recruitment. If we can t recruit the best, because we are seen as archaic and not forward looking, we will go into a decline over the long term. Innovation. If we can t enhance creativity of staff to be innovative in the satisfaction of the increasingly complex needs of clients we will lose market share.

22 Respect for staff. We wish to treat our staff with respect. Other business benefits of flexible working policies emerged from the research: Tangible outcomes such as enhanced business performance. Productivity, efficiency and quality of client service. Flexibility to meet peaks and troughs of work. Development of the full potential of all staff. Quality of life and well being of Chartered Accountants and those who work with them. Ability to meet the challenges of change in the nature of accountancy and the wider context as they affect the firm or the team. I think working a nine-day fortnight probably improved my productivity. I would say that just being more relaxed, I m thinking more quickly and operating at a better level. (Senior manager, large firm) Think about ways in which mutual flexibility might be applied to your situation. For example, it was noted in the research that staff working reduced hours do not necessarily incur a proportional reduction in fee income. A Chartered Accountant working 90 per cent of full-time hours (for example a nine-day fortnight) may well retain close to 100 per cent fee income by organising and working more effectively. Just as there is no single best practice in relation to flexible working because all workplaces are different, there is also no single business case. This must be specific to your organisation. However, suggested topics to be included are set out in Appendix Produce an initial written proposal Bring together the benefits to the organisation and staff and produce a written proposal based on a dual agenda; any change in working practices should have the potential to enhance client service and work-personal life integration for staff. The proposal should be submitted to the most senior person in the organisation. Headings around which this proposal could be built include: What are flexible and innovative working practices? (Recognise that these can go well beyond formal flexible working policies and may need to be supported by a radical rethinking of traditional ways of doing things.) What are the business problems that will be addressed by this process? (For example problems meeting deadlines, staff turnover.) What are the potential benefits to the practice? A summary of the evidence so far Suggest a next step, i.e. implementing the pilot experiment using the process presented here, with the intention of evaluating the effects of flexible and innovative working arrangements for the organisation. 3. Identify as many senior people as possible to provide active and vocal support Early identification of as many senior people as possible in your organisation or your team to provide vocal and active support is critical. Ideally they will be senior, influential, people who are popular and well respected as good people managers. An especially influential senior person may be someone who in the past was resistant to flexible working practices Phase 1: Pre-implementation 13

23 but is now a convert. He or she may model desirable behaviours such as working efficiently in normal working hours but going home on time or assertively declining to take on more work than can be realistically accomplished to an acceptable standard. 4. Hold a foundation meeting Hold a foundation meeting, during which the issues around flexible working for the organisation are discussed and initial resistance is confronted. A sample agenda is contained in Appendix 4. If the most senior partner introduces the foundation meeting and several senior partners attend, this will of course indicate that the issue is being taken as a serious strategic business issue. Discuss evidence of the benefits of mutual flexibility and how the organisation can derive long term sustainable benefits from innovative thinking about working practices. Specify what flexible working practices, formal and informal, are currently in place, how effective they are and what are the barriers to greater effectiveness. Key to the foundation meeting is the identification of what the organisation hopes to achieve by the introduction of mutually flexible working or by a drive to challenge norms and practices to overcome barriers to putting existing flexible working policies into practice. Although the emphasis should be positive it will also be necessary to have a preliminary discussion of the current barriers to effective practice which can prevent the organisation from reaping the full benefits of innovative ways of working (see below). Barriers to flexibility in practice identified in the Flexible Futures research Barriers identified in the research, regardless of whether or not formal policies were in place, included: Flexibility being viewed as career limiting, resulting in a reluctance to take up opportunities to work flexibly. The long hours culture commitment is defined in terms of willingness to work long and inflexible hours, regardless of whether or not this is effective, so flexible forms of working, though efficient, are undervalued. Lack of trust. Staff shortages. Over tight budgets. Beliefs that it is necessary to be available to clients at all times. A misconception that flexibility is a one way entitlement rather than being based on mutual rights and responsibilities. Human resources professionals and partners with HR responsibilities surveyed in the Flexible Futures research felt that the major barriers to implementing flexible working practices were resistance from decision makers and concerns about productivity. This reinforces the need for the groundwork, especially the presentation of a preliminary business case for flexible working, with a focus on the dual agenda of enhanced effectiveness and work-personal life integration. 14 The flexible and profitable workplace

24 5. Identify a steering group The foundation meeting can be used to identify a steering group to oversee the rest of the process. This should ideally include people who have the power to influence decision making and representatives from around the business. This group should include the champion, senior vocal supporters, the HR director, line managers and the manager of the pilot work team see below. Inclusion of a partner who is seen as being resistant to change of this nature is also important to provide experience in dealing with resistance. The steering group can also include a client to advise on client perspectives. A suggested agenda for the first steering group meeting can be found at Appendix 5. The terms of reference of the steering group will be agreed with the most senior management. 6. Identify a pilot work team and a facilitator The process of going beyond the development of policy to the implementation of effective flexibility in everyday practice is most successful when the focus is on specific work teams for example, client serving groups, or departments, rather than at an organisational level. Therefore, an initial task for the steering group is to identify a pilot work team, to pilot the process. This should be a team that has identified a particular problem, such as high turnover or frequent deadlines causing constant pressure, and be committed to at least trying to find innovative solutions by looking at working practices in terms of the dual agenda. This team will model the process for developing and implementing flexible working practices to enhance work-personal life integration and enhanced effectiveness. The pilot is a real world controlled experiment. The goal is for organisational learning to take place and flexible working to be seen as a realistic and feasible activity so that the learning from the pilot study can be diffused more widely in the organisation. A facilitator someone to work with the pilot team to facilitate the process will also need to be selected or appointed (see Phase 2). This could be someone internal to the organisation, but outside the pilot team. It might be someone new to the organisation who does not yet take practice and norms for granted, or even someone appointed specifically as a change manager or it might be someone external to the organisation. A suggested agenda for the first pilot team meeting is included at Appendix 6. Outcomes for Phase 1 The outcomes for Phase 1 are: Flexible working, as a strategic tool for development and growth, is on the agenda. This is supported by a business case and in depth analysis of the dual agenda. There is recognition that formal policies, although often necessary, are not sufficient to make a real difference. At least one senior person is identified as a vocal supporter of flexible working practices. There is a clear vision of what needs to be achieved which will inform the evaluation of any initiatives implemented. An outline action plan has been produced. A steering group is in place to take things forward. A pilot team has been identified to pilot the change process. (see Phase 2) Phase 1: Pre-implementation 15