Best HR practices across continents

Following last year’s global merger of Lafarge and Holcim, two of the largest global players in the building industry, the integration process between the two companies is ongoing across 90 countries including Sri Lanka. 

LafargeHolcim Region Head Organisation and Human Resources Lesz Sikorski was recently in Sri Lanka to oversee how the HR functions support the business across the Sri Lankan operations, to assure consistency with the requirements of the Asia-Pacific Region and to be a part of Holcim Lanka’s annual employee recognition awards. Based in Singapore, Lesz is overseeing the HR functions in the Group’s Asia Pacific Region spanning China, South Korea, Philippines, Sri Lanka, Indonesia, Maldives, Bangladesh, Vietnam, Malaysia, Singapore, Australia, New Zealand and the Group’s global trading business.

Lesz has previously worked for Holcim as Head of Succession Management at the Headquarters in Switzerland. Prior to joining Holcim, he functioned as the Program Manager Group Talent at Anglo American, a globally diversified mining business. In a previous role as Project Director- Change and Development at Lafarge Cement, Lesz was responsible for the development and introduction of processes and tools for the set-up and management of post-merger and acquisition integration and business change management projects. He has over 20 years of experience in heavy building materials and mining sectors and extensive international exposure, having worked in six continents: North America, South America, Europe, Africa, Asia and Oceania.

His wealth of experience in leadership development, performance improvement practices, change management and strategic succession and talent management will benefit Lafarge Holcim as the global giant aspires for the leadership positions in each of the world’s regions, especially emerging markets such as the Asia-Pacific Region. 

During his short visit to Sri Lanka, Lesz shared key insights into creating a high performance culture and best practices in HR from his extensive experience in dealing with mergers and acquisitions. Here are some excerpts from the interview:

Q: How does the modern role of an HR Business Partner differ from the traditional HR function? 

A: In the past, HR was seen as an administrative role. However, currently the HR specialist has become a partner with senior and line managers in strategy execution. Therefore, it requires people who understand not only the business but also the people implications of the business strategy. 

For example, the HR specialist should have on-going discussions about the relevant skills, capacity, processes and structures required for organisational success and methods to develop these. This will include developing the skills of existing employees, acquiring those skills and know-how not present in the organisation today and developing current employees who are exhibiting the potential for future career growth.

Q: Please share with us your insights into creating a high performance culture.

A: There are four elements that go into creating such an environment. The first is to establish an understanding among the employees about the purpose or the vision of the organisation. The second element is to clearly identify the changes that need to be made to achieve the purpose. The third is to prioritise what needs to be done to make those changes so that the end result can be achieved. The periodic evaluation of this process helps employees to be accountable to each other while creating a sense of collectivity and collaboration which is vital for a high performance culture. 

The fourth element of high performance culture is the organisational climate which is created in large part by the leadership team. For example, their leadership style should enable open dialogue and exchange of ideas, while encouraging reasoned risk taking, experimentation and holding people to account for expected performance and behavioural standards 

Q: What are some of the best practices in HR from your extensive cross-cultural experience in dealing with mergers and acquisitions?

A: Regular communication during those times of change is vital. For example, in the case of a merger, the organisation should aim to inform all employees about its objectives and the value proposition for employees. This will avoid negative effects of rumours and gossip which tends to distort and misrepresent the reality and lead to unproductive behaviours. The HR Business Partner must, with their line management partners, explain openly what the company plans to do and what the effects will be on workers. Open and honest communication ensures that employees understand the reasons for the merger, the new direction and the values of the new organisation and their individual roles in the new company.

Another key factor that has been followed exceptionally well by Holcim Lanka is immediate implementation of management decisions. This process gives people clarity about the direction of the organisation and enables them to plan ahead from the options available to them.  The management team in Sri Lanka acted decisively once the global merger was concluded to understand the structures and entities of the Group in the country, weighed options to make informed decisions and acted quickly in a structured manner to effect the required changes and to engage employees in the new Group.

Furthermore, leaders should keep their employees focused on the day-to-day operations of the organisations so that they are not distracted by things they cannot control. Using the examples of Holcim and Lafarge, both companies were on a journey to transform to a more commercially-centric organisation prior to the merger as well as optimising operational assets and cost base. This focus has been reinforced by the Group’s leadership during the post-merger period with people’s attention directed towards achieving short-term goals and steps in the process while minimising the distractions from things that were beyond their control. 

Q: How do you define culture and how important is it when forming the new organisation, following the merger or acquisition? 

A: The organisational structure, policies and values create the culture in an organisation. LafargeHolcim is in the process of implementing these key elements as we build the new organisation. The operating model is defined by elements such as how far down do you drive decision making authority in the organisation and how does one communicate cross-functionally within the organisation. Secondly, policies help create culture. Policies are about which behaviours we are trying to promote or recognise and which behaviours we are trying to diminish or eliminate. LafargeHolcim’s Code of Business Conduct, Health and Safety Policies and HR policies around performance and compensation are about promoting certain behaviours. These policies are supported by leveraging systems and new technology to achieve improved organisational efficiency and performance.  Thirdly, the organisation’s values create culture. In the case of LafargeHolcim, safety is paramount and underpins all activities of the organisation as does Sustainability. Ultimately it’s people who will determine the success, or degree of success of the business and it’s important that they are given appropriate tools and opportunity to demonstrate performance and develop their potential.

Q: As an individual who has groomed employees into leaders, what career development advice would you give to those beginning their careers? 

A: My primary advice would be to decide on your career objective or ambition. A first step in developing the career goal is to evaluate your skills, interests and your strengths and weaknesses. You may also want to seek out experiences that develop certain types of skills. Out of those experiences, if you enjoy a particular element, then seek more opportunities to explore that area of work. Secondly, one needs to make certain compromises to achieve the career objective. For example, I made a very early career decision to work internationally because I value the diversity of experiences it brings. However, I also understood that I have to make certain compromises such as time away from family and friends.  Thirdly, understand how current learning contributes towards achieving the career goal. Perform your current role well and demonstrate a hunger and interest for growth. Line managers notice people who perform well by pushing the boundaries of what they can achieve and contribute today.