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GROWTH HACKING How are small companies challenging the big boys using innovative strategies and innovations
IS EVERY COMPANY A PUBLISHER? As the web allows companies to spread more ideas than ever, we ask if every company is a publisher
HR STRATEGY SPECIAL We look at how companies are utilizing HR strategies to foster an environment of success
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Editor’s Letter
Letter From The Editor Welcome to this edition of Chief Strategy Officer. This issue is concentrating on HR strategies, something that is often under-appreciated in companies today. Without an effective HR function, the hiring and management of employees often falls by the wayside and overall company objectives suffer as a result. An effective HR function, where employees can feel empowered and respected is often as important than the sales department or teams at the core of company operations. Without them the risk of losing important employees is increased as their progress, renumeration and overall satisfaction can often be overlooked. This is why having an effective overall strategy for an HR department is now more important than ever. With increases in the use of data and analytics in the HR function across larger companies, the chance to create great HR strategies has never been higher. This also allows the HR department to become active in the wider business goals of the company, tracking employee progress and allowing them to prosper in the correct departments.
and the elements of it that are often missed, we thought that it was important to look at this division of companies and how HR strategies can be improved moving forward. Regular readers of the magazine may have noticed the longer than usual interval since the last issue. The reason for this is that we are moving to a bi-monthly schedule, which will allow us to create better content within the magazines as well as launch a new website, which allows us to produce content every day. We are also looking for new contributors, if you feel that you have a new idea that you want to spread, please get in contact at ghill@theiegroup.com
George Hill Managing Editor
If you are looking to put your products in front of key decision makers, contact Hannah at hsturgess@theiegroup.com With the importance of this role for more details.
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Managing Editor George Hill President Josie King Assistant Editor Simon Barton Art Director Gavin Bailey Advertising Hannah Sturgess Contributors Michaela JefferyMorrison Richard Angus Phil Rist Mack Burnett General Enquiries
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Advertising Enquiries hsturgess@theiegroup.com
Contents
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Contents
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Mack Burnett talks us through Growth Hacking, why it’s becoming more popular and where he sees it in the coming years Simon Barton reports on the presentation from Michael Barnett, Head of Planning at British American Tobacco, at the Chief Strategy Officer Summit in London It is a widely accepted fact that every company is now a publisher, we look at the reasons behind this and why companies should embrace this How are weather and HR linked? We report on a presentation from Steve Ginsburgh from Universal Weather and Aviation, which explains all Phil Rist talks us through the findings of a recent survey that suggests 26% of Americans are scared about losing their job to robotics or automation We investigate how the HR role is changing and how a new holistic strategic approach is going to change perceptions
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We are always looking for new contributors, if you have an interesting idea or passion for a subject, please contact George at ghill@theiegroup.com
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415 992 55 10
ehunter
Growth Hacking
The Growth Of Growth Hacking Mack Burnett Adjunct Instructor - Digital Strategy and Multichannel Marketing, New York University
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Growth Hacking
It was quite a while back when I was sitting in a Starbucks near Union Square in New York City, waiting to catch up with an old industry colleague who I hadn’t seen in years. I was typing away on my iPhone, sipping on my Chai Tea Latte, when my colleague finally arrived.
immediately hit the web to research, analyze and dissect this thing called ‘Growth Hacking’. That led me down a path to an even greater lack of clarity.
One blog called Growth Hacking an outright fraud. It went on to say that Growth Hacking is just marketing by another name. What I thought would be your Another website disagreed and run of the mill ‘catch up’ meeting proclaimed that anyone worth turned into a ‘Have you heard of their salt should be hacking Growth Hacking?’ conversation. and not just marketing. Growth Although I was aware of the Hackers say they pick up where Growth Hacking community, marketers have left off. All of my first thought was that I had this peaked my interest further. missed a very large elephant After a long year of blogs, swipes in the room. Admittedly, I had and tweets, I did a deep dive into not yet immersed myself in what Growth Hacking actually is, Growth Hacking as a studious how it’s perceived, and where it pursuit. That’s one of the largest seems to be going. on-going challenges of working defines Growth in our industry - keeping up. I had Wikipedia as ‘a marketing an obligation to my clients and Hacking developed by students to get a well-rounded technique perspective of the industry. I felt technology start-ups that uses obligated to explore the rise of creativity, analytical thinking, an entirely new segment of our and social metrics to sell products and gain exposure.’ industry. If this embodies what Growth My colleague was no longer Hacking is, then wouldn’t it positioning himself as a stand to reason that it’s still marketer, but solely as a ‘Growth ‘just marketing’? Hacker’. What does this mean? How much traction does this have that he’s moved away from being a recognized digital marketer. This alone had me ready to pull out my phone and start researching at the table. After we had caught up, I went back to my office and
Growth Hacking
The actual term ‘Growth Hacking’ is attributed to Sean Ellis who says, ‘a Growth Hacker's true north is growth’. This then begs the question, who doesn't want to grow? If the sole focus is growth, does this mean that a company at a latter stage is stagnant or blinded by a focus on revenue or profits?
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profession. A simple matter of progressive nomenclature. Professions tend to do that over the years; planners have evolved in to ‘project managers’ and creative thinkers have gracefully adopted the title of ‘Strategist’.
However, after spending considerable time immersed in the Growth Hacking community, I had to think about many of the I can say that it’s more than clients, brands and agencies repackaging. It’s a new school I have worked with. Many do of thought. Growth Hacking is focus solely on driving revenue where digital marketing meets a or brand awareness. Revenue lean start-up’s entrepreneurial should always be a factor, but drive to grow for the purpose of not necessarily the driving force. growth. Does a Growth Hacker Some strategies and tactics drive revenue? Sure, they can. are meant to drive value and Yet revenue may not be what the not necessarily revenue. Only start up needs at that moment focusing on revenue is like for growth. A Growth Hacker focusing on where the next gas would rather develop an online station is instead of where the brand evangelist than make a quick sale. They would rather car is going. My first thought was that figure out how to create a viral ‘Growth Hacking’ registration campaign than just was a rebrand optimize the conversion rate of of an old an ad. They would rather stretch the dollar of an ad buy, than go back and ask for more budget. Growth Hacking is a convergence of innovative marketing, data, engineering and automation with a twist of high school ingenuity. Leveraging data insights to uncover new ways to grow. Growth Hackers say they’ve moved past the marketer by focusing on keeping customers after
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Growth Hacking
acquisition and referrals. Keep in point discount this new wave of mind there is also an element of big thought in our industry? I think new waves of thought are what have business versus the start-up here. A true Growth Hacker starts with always driven technology. the premise that they have fewer resources, little or no customer base, small budgets or even no budget and minimal social media presence. Nothing that a traditional company might already have established, but still they are charged with elevating a company to new heights with creativity and a bag of Growth Hacking tricks. It’s amazing to think of the companies that have accomplished amazing growth; Facebook, Dropbox, AirBnb to name a few. All of these companies have applied Growth Hacking techniques to grow their user bases into billion dollar companies, even in crowded markets - that’s true Growth Hacking. Growth Hacking is much more than just a cool moniker to adopt for LinkedIn. It’s a new way of thinking and processing data, and it almost seems like finding out how to grow smarter, just for the fun of it. That’s what a ‘hacker’ is. So can we at this
I’ve realized I’ve become more of a hacker than marketer, but I’ve always thought of myself as a ‘marketer’s marketer’. Maybe at the end of the day, that’s what Growth Hacking will turn out to be; the ethical extreme of digital marketers who are obsessed with results, revenue and growth.
So ‘old school’ digital marketers beware. There might be a Growth Hacker working in the mailroom whose got a strategy that they developed on their smartphone with a notepad and a calculator while having a latte.
Strategies In Tobacco
New Strategies In The Tobacco Industry Simon Barton Assistant Editor
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Strategies In Tobacco
Two teenagers walk up to a shop counter and hand their change to the shop assistant. They’re both a little short of cash and can’t afford their packets of cigarettes. In line with the question; ‘What are cigarettes costing you?’ the shop assistant precedes to take a pair of pliers and rips out both of their teeth. As shocking as this seems, campaigns such as this have become part and parcel of anti-smoking initiatives that run regularly throughout Europe and the U.S. On the face of it, adverts such as these pose a considerable threat to companies such as British American Tobacco (BAT). However, despite their hard-hitting nature, more than 3,200 people under the age of 18 smoke their first cigarette each day, an incredible statistic considering the wealth of information damning cigarette use as a ticket to premature death. The problem is that many of the world’s new smokers are from undeveloped nations where consumers are less exposed to shock media, anti-smoking information and advertising. In many countries cigarette use is going through a process of marginalization, once considered a norm, it is now deemed a vice for those who continue to indulge. For major tobacco companies like British American Tobacco this has led to a need for diversified strategies that go
far and beyond the traditional cigarette. This process has been in full-flight mode since 2005 with BAT’s aim to be the leader in the non-tobacco nicotine space. At the Chief Strategy Officer summit in London, Michael Barnett, Head of Planning at BAT, gave us a glimpse into the strategic world of tobacco. The industry seems to be in a state of transition at the moment, with conflicting objectives divided between being as profitable as possible whilst also attempting to become a healthier industry, that offers smokers a way out of nicotine addiction. When reciting the battle quote of ‘No battle plan survives contact with the enemy’, Michael points to the fact that within the context of the tobacco industry, EU regulators represent the enemy – making a connection with their unwillingness to overturn ‘snus’ regulations that confine its sale to Sweden. ‘Snus’ was one of BAT’s first endeavours into
Strategies In Tobacco
non-tobacco nicotine products considered to be a healthier alternative to cigarettes, with far lower rates of Lung Cancer. Despite this, EU regulators were unwilling to give BAT the nod to sell the products across the whole of Europe. Michael states ‘all our plans to roll out ‘snus’ across the EU just fell away’, showing just how much BAT are at the peril of lawmakers. Another strategic dilemma faced by BAT was that it wasn’t in the best interest of all parties to develop certain product lines. Their Marketing Director was at first very sceptical towards these alternative paths, primarily due to the guaranteed, short-term success that the sale of traditional cigarettes gives. This meant that when e-cigarettes became mainstream, BAT were further behind where they should have been. Michael States; ‘had we redone it we would have been further ahead than where we are now’ – a shining example of how the sceptical nature of one individual can hinder the development of an entire product division.
little unequivocal evidence that showed the ‘snus’ would have been used as a substitute for cigarettes – instead, the regulator’s may well have felt that ‘snus’ would have been used on top of traditional cigarettes, perhaps in the work place or on public transport where consumption can be fairly inconspicuous, this made it a considerable risk for their efficacy as an organisation.
Michael was keen to point out that BAT’s adoption of new products was never the result of planned meetings where things were discussed in a structured manner. Their evolution developed organically, and was based on the notion that BAT’s people knew about the industry and were more than capable of good decisionmaking. This was best shown in 2011 where BAT expressed their desire lead the It was also not in the interest to n o n tobacco of EU regulators to bring yet another tobacco product to space and a higher the mass-European market. share of non-toproducts It may well be healthier than bacco than normal smoking, but there are many things that are illegal in the EU c i g a r e t t e s . that are healthier than smoking. Michael says; For the regulators there was ‘This wasn’t based on
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evidence, just a gut feeling which led us to believe that we should be doing more in this emerging space’. BAT want to be market leaders in this area, and feel that they warrant this distinction. Described as a ‘Kodak moment’ for the Tobacco industry by Michael, the realisation that e-cigarettes are here to stay offers up real opportunities for strategic growth. The e-cigarette is not without its critics, but it has been welcomed by would-be quitters who have failed with other products such as patches, gum and inhalers. Traditional cigarettes are also unlikely to be off our supermarket shelves in the near future, despite the magnitude of legislation preventing tobacco companies from selling their products like more traditional industries. This means that a number of divisions will have to co-exist within Tobacco companies, some tobacco based, some non-tobacco based. This strategy is easier said than done, with Michael reciting an occasion when a project manager caused friction in the company. He says ‘It didn’t help that at the time the guy who was heading up the alternative product division was going round and saying to other teams that your product is messed up’. BAT need to be one slick machine, not a number of cogs working in a disharmonious fashion. If this unity occurs, they
should be able to maximise their operations so that they all run profitably. Smoking is not going away – young people take up the habit everyday and even more people try and fail to give up. This is good news for tobacco companies, but at the same time it gives industry leaders like BAT a real chance to rise above the rest and invest heavily in alternative products that cause less harm to the consumer. This is even more urgent for those who are living in less developed nations where legislation and anti-smoking information is less widespread. BAT’s desire to help their consumers give up was accentuated in 2010 when they teamed up with Nicoventures to bring new alternative products to the market. From a strategic perspective Michael and his team at BAT are confident that their organic approach to strategy development is the right way forward for their company and will bear considerable fruits going forward, for both themselves and smokers looking to give up.
Chief Technology Officer Summit 13
November
12 & 13 Miami, 2014
“Harnessing Technology, Driving Innovation�
For more information contact Sean Foreman +1 (415) 692 5514 sforeman@theiegroup.com theinnovationenterprise.com/summits
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Every Company Is A Publisher
Today, Every Company Is A Publisher George Hill Editor
Every Company Is A Publisher
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exactly what they are talking about, you are going to be There is no longer a distinction more likely to choose them. On between those who can the other hand, if you go to a publish and those who can’t, garage, meet nobody and hear it is expected that if you are nothing about the expertise selling a product or service, that they have, you are likely to that you know enough about it choose the first simply because to write about it. It is not a new you know more about them and concept, we have been told that their past. It may be the case every company has become a that the second garage can do publisher due to the internet a better job and that they know and the ability to connect with more than the first, but if it is not platforms where content can be demonstrated and shared, then pushed. The truth is that it is just customers will not be interested. a new way of showing that you The internet has meant that know enough about a subject to rather than just walking in to one be able to effectively deliver a garage and talking to somebody, are (metaphorically) service that people there millions of garages and the one want. A classic example who can demonstrate that they of this would be know the most is the one that is when taking a car likely to get the most business. Today every company expected to be a publisher.
is
to a garage, if you talk to a mechanic and they can describe to you in detail the aspects of what needs to be done to fix your c a r , assure y o u t h a t t h e y h a v e done it b efo re and that they know
This is digital publishing, it allows companies to showcase what they know, show their work and prove that they are going to offer you the best product or the best service. It is now not done through a conversation with an individual customer, but through the multiple mediums that the internet can give.
One of the key aspects of this new method of communicating with customers is that it also allows them to indirectly communicate with you. With the use of analytics and tracking that the internet and online publishing offers, there is a direct feedback loop that allows companies to adapt
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Every Company Is A Publisher
and change their content to what their customers want to see, be it videos, podcasts, whitepapers or blogs. Equally there is an important element of digital publishing that goes beyond simply reassuring a customer that you are up to the job. The ability to tell a story and give the company a personality is equally important, a company that somebody can identify with is important and can be the difference between loyalty and a single job. Digital publishing and the creation of something beyond what your company can offer in terms of services is what creates identity and identity is what creates a following. With the increased use of social media, digital publishing also offers companies the opportunity to spread their message and personality to those beyond their core group of customers and users. It is an important way to disseminate information about your c o m p a n y without the
need to contact people directly about it or draw people to your website to find it. This is where making the published content as interesting or educational as possible is important, the higher the quality of the material, the more it will be shared. The more it’s shared, the higher your company’s profile will get and the more material will be expected.
where Old Spice would be now without the ‘Smell like a man, man’ campaign. According to P&G ‘Old Spice has month over month strengthened its market position and is now the number one brand of body wash and deodorant in both sales and volume with growth in the high single/ double digits’. Effective digital publishing techniques have allowed a brand to re-identify with a new audience, build a considerable following and see a huge upturn in sales.
This is not just a fad either, looking at the power of digitally published content shows some of the highest profile and famous brands who have There will be few examples as prospered through the use of popular as this (the content innovative content, think about was nominated for an Emmy) but a coherent digital publishing programme can have a massive positive effect at almost any company, whether it is publishing videos, whitepapers or even just blogs.
HR Strategy
HR Strategy
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Weather & HR
Weather And HR: They Are Linked In More Ways Than You Think Michaela Jeffery-Morrison Divisional Leader, Strategy
Weather & HR
Getting on a plane and travelling can be a complex task - your perfect plan is always susceptible to changes, whether they’re outside of your control or very much within it, mistakes happen. But for business professionals, these mistakes can be more than an annoyance - missed meetings, lateness or an inability to meet clients face to face can be the catalyst for missed opportunities and failed business deals. This fear of disrupted flight schedules was clearly something that the audience at the HR & Workforce Analytics Innovation Summit in Chicago sympathised with - it’s fair to say that at some time throughout all their careers a missed connection or a two-hour delay has stood between them and a deal clinching handshake. Presenting in Chicago was Steve Ginsburgh, SVP, HR & Workforce Development at Universal Weather and Aviation. Founded in 1959 by former Air Force meteorologist and network weatherman Tom Evans, the company’s initial ambition was to provide customised weather forecasting for business aviation, a then unique endeavour. Since then, and as the company has evolved, it has developed its services so that every possible avenue for disruption is covered (there are normally 120 services per trip) - whatever the case may be, their mission statement remains the same; to make their
clients’ trips a success’. As with every customer service orientated company - happy staff equals happy customers. However, in 2006, when Steve joined the company, there wasn’t a HR structure in place that could facilitate this happiness. There was no compensation structure, very little training and a lack of meaningful metrics and employee structures - the bottom line was that there were very few long serving employees and little loyalty to the company. This resentment was only likely to spill over to their customers. At the summit, Steve jokingly pointed to an image of the company’s staff superimposed within a prison cell, but joking aside, with the structure they had in place, this was probably the only recourse they had left that could guarantee their staff would stay at the company evidently, things had to change. Steve states ‘people want to speak to individuals they’re comfortable with - if Mary leaves, chances are they’ll follow Mary’ - this observation is indicative of the industry Universal Weather
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Weather & HR
and Aviation work in as staff get to know clients closely, striking up friendships, friendships which are unlikely to relinquish when ‘Mary’ leaves the company. If Mary leaves she not only takes her experience with her, but considerable revenue as well. In order to keep ‘Mary’ in the company, and others like her, Steve and his team set about revolutionising the HR function at the company. This restructuring was encapsulated through three drivers; alignment, capabilities and engagement. Alignment, which is defined by Steve as the ‘strength of employee connection to corporate goals and strategy’ is an imperative cog in their newfound HR structure. They hold monthly meetings which the employees are accountable for as they call the meeting and they set the agenda for it. This leads nicely into the year end summary where the accomplishments of the employee are directly matched against the goals and objectives of the company - at Universal Weather and Aviation they go about this process in a different manner - Steve says; the typical system is to
tell employees they are meeting expectations, but how many CEO’s tell their stockholders they had a ‘meet expectations’ year - I don’t think many of them do’. Because of this, they tell the employee one of three things - either that they had an extraordinary year, a good year or a poor one. This keeps things simple for all parties and allows for the direction of the company to be easily mapped against that of the employee. In terms of capabilities, Steve says ‘we actually market our employees’. They try and highlight their staff through professional shots, so that they are marketed to potential clients. Steve also says ‘one of the great things that has happened over the last seven years or so is that all the things we’ve built into HR now goes into our RFP’s so they’re actually selling the stuff we’ve put together’. Evidently they’re building part of the marketing base of the company which will go directly to their customers. Engagement for a client facing organisation like Universal Weather and Aviation is imperative as the employee has to have the willingness to go above and beyond what is expected of them and be an ambassador for the company. Since 2006, there has been a real focus on retaining their best staff and not letting them go by the wayside. Their employee
Weather And HR
barometer is a vital tool for this and allows them to differentiate between staff who are worth investing in and those who are not. The members of staff who are excelling in their jobs are given recognition and a number of bonuses. The employee barometer has analytics at its heart and at the summit, Steve informed us of a number of results that showed the correlation between engaged staff and business success - for example, platinum and gold client retention is over 95% and the turnover of key employees is at 5-8%, even in
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an ‘oil company market’. The results seen by the HR department at Universal Weather and Aviation have been impressive in the eight years since 2006. They’ve gone from being a slow, unstructured department to an efficient and effective machine that brings tangible benefits to both the customer and the client. Their vision to be the go-to company in this area is certainly a realistic one if their staff are as happy as the people they hope to serve going forward.
Strategy How Will You Fill the Strategy Gap? Execution With Sopheon’s comprehensive Software, Best Practices and Services solution you can. Contact us now to learn why some of the world’s biggest brands depend on Sopheon’s Accolade solution for strategic planning, innovation management and new product development initiatives. www.sopheon.com Sopheon Corporation Sopheon NV Tel: +1 952-851-7500
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Robotics & HR
Are Employees Scared Of Robots? Phil Rist EVP-Strategy, Prosper
Robotics & HR
Robots are making headlines (if not writing them—yet). Google’s self-driving car, Amazon’s announcement that it will be using 10,000 robots in its warehouses by the end of the year, and the Associated Press using robots to write earnings reports, are just some recent examples of companies rapidly moving to introduce automation into their workforce. From managing inventory to intellect, these robots (physical or a ghost inside the machine) can provide productivity benefits for companies, but they can also create challenges for the HR department.
work done by farmers in the 19th century has been replaced by machines. Although the revolution brought about new types of job opportunities, it also caused stress and anxiety for those unsure how they were going to make a living. Fast forward a few centuries and robots/automation bring a similar unease to the American workforce.
Americans’ concerns that their jobs are going to be ‘botsourced’ are growing. In cooperation with mobile research technology firm Pollfish, we asked over 3,700 Americans if they are worried about losing their jobs to robots Humans using automation or automation. Year-over-year, to put human jobs at risk there has been a 53% increase is nothing new. It’s what the in the number of Americans industrial revolution did to concerned. While 18-34 year American workers in the early olds remain among those 1800’s. Today almost all of the most concerned, their level has
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Robotics & HR
decreased by 7%. Concerns saying that this would lead among those 55+ have shot to ‘dramatic changes in the pattern of work,’ although not up by 140%. Physical, laborious tasks to a reduction in the number have been widely automated of jobs as a whole. for years. But the reality of botsourcing isn’t just for low price labor. In May of 2013, McKinsey released their Ten IT-enabled business trends for the decade ahead report. ‘Automating knowledge work’ came in at #5, stating that, ‘… advances in data analytics, low-cost computer power, machine learning, and interfaces that ‘understand’ humans are moving the automation frontier rapidly toward the world’s more than 200 million knowledge workers.’
HR professionals are frequently asked to champion change for their organization, and automation is not always a change employees can believe in. It becomes personal when an employee perceives a risk of losing their job. An initiative to ‘free up capital’ will likely impact morale, motivation, and team building, to name a few. Given that 53% more people are worried about losing their jobs to machines than last year, HR professionals need to be both sensitive and strategic in their plans for automation.
important, and one way to do so is to highlight and focus on the application of technology that helps people do their job better. Rather than just going the cheapest route, consider which jobs should be automated, which ones can be enhanced with automation and which ones still need human expertise for decisionmaking, to be creative or make adaptations when necessary. Similar to the 19th century, advancement in technology will create new and exciting jobs in the 21st century that may not have even been considered yet. Successful companies will employ a blend of humans and robots to increase their bottom line without pulling the passion out of its people.
We live in the age of advancing artificial intelligence—smart Staying on top of this issue is automation is emerging to AMERICANS CONCERNED ABOUT LOSING JOB TO ROBOTS OR AUTOMATION analyze big data, write articles, and even assist in surgical procedures. Programmatic ad buying is eliminating the need for media buyers, while insight platforms that serve up advanced analytics are reducing data analyst positions. Higher wage earners may find themselves in competition with machines to keep their jobs. David Willetts, the Minister of State for Universities and Science, suggests that robots will take over middle-class professions such as accountants and teachers. But we aren’t there yet. Willitts is quoted as SOURCE: PROSPER INSIGHTS & ANALYTICS, ANALYSIS OF POLLFISH DATA
Evolution Of HR
The Evoution Of HR Strategy Richard Angus Director, Chief Strategy Officer Summit
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Evolution Of HR
In a recent Harvard Business Review article, Ram Charan, indicated his desire to wave goodbye to the Department of Human Resources. It’s important to point out that when he says he wants to get rid of HR, it’s just the department he sees no use for - the things it does remain as essential as ever.
we know, nothing is more valuable to the corporation than the talent it can attract.
It’s important that HR professionals go further than the ‘good with people’ mantra that has seemingly stuck with the function since the inception of the role. There are a wide range of skills that now go hand-in-hand with the HR If you’re in HR there’s a role - more than anything it good chance you’ve already comes down to the individual’s created a mental list of the ability to see the organisation things you do well, whether it’s as a whole, because it is only workforce planning or solving when this is achieved that employee disputes, the HR they’ll be able to identify what role clearly adds tangible type of talent is required to benefits to the organisation. drive the business forward. The problem is that there There also needs to be a have been a multitude of move away from qualitative studies that reflect badly on methods for HR strategy as HR workers. A recent survey they are less reliable. Analytics of CEOs identified that the are the way forward and HR department was the agendas have to be set with least agile and that CFOs data at their heart. There are struggle to build a strategic a variety of metrics that can relationship with them. be adopted which will be able The role, like many around it, has developed significantly. Many still think of it as an admin-based role, but HR strategy is a function which can add significant strategic value to the organisation, as
what types of management they benefit from most. These findings make the HR function far more efficient and value-adding for the rest of the organisation. Much of the disdain Ram Charan holds for the HR function, and the Chief Human Resources Officer role in particular, is his belief that they don’t know how to make business decisions. They know their people, understand how they tick, but can’t really relate this to why an organisation isn’t meeting its targets.
This apparent need for business acumen is not a view shared by everybody. The HR department, especially in large companies, is often viewed as a platform which enables ‘the go-getters’ to work to the best of their ability. Whereas a pure strategist is focussed on gaining a competitive advantage through avenues, to determine who a company new should let go, how much they should pay someone and
Evolution Of HR
the HR department’s goal is to make sure that the people who spot these gaps are both happy and dedicated to the cause. This train of thought would see the HR function not as tangible force for strategic change, but an important enabler. If this is HR’s main goal, then analytics have to be used. As mentioned before, qualitative methods are so ambiguous and there is a good chance that employees that you thought were happy are actually bored and looking to move on. Having these insights are important and there is a good chance that without a dedicated department these insights wouldn’t be so attainable, and the company’s strategic endeavours would likely worsen because of this.
Within a start-up, the HR function has to be different - there is no choice but to move away from its old admin-centric roots. When there is a flatter organisational structure, the ability to confront and influence key staff is a vital function. If your office only has 40 people in it, feuds can grow at an alarming rate - within no time at all you can have a very difficult situation on your hands. This is why the HR strategy has to be able to quell volatile situations quickly.
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must keep tabs on all social media activity to make sure that employees aren’t expressing overtly negative feelings, and if they are, work out why this is the case.
The HR role is changing and evolving. It’s as important as it has ever been, however many are unsure where the department should stand within the organisation. There is certainly something to say for the function becoming more central to strategy and I think this will gradually become pivotal to the role Social Networks have also and this has to be embraced added to the demands of by the department if it is to the HR strategy. Especially in establish a better working with other start-ups, there is a merge relationship between personal and strands of the organisation. business profiles and this can One thing is for sure, the HR misrepresent an organisation. department is as important as ever, and I cannot envisage The HR department that wavering at all, so it looks like Ram Charan’s ideas will not be coming to fruition.
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