Dawgen Global Insights (December 2020 )

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DAWGEN GLOBAL INSIGHTS

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INTRODUCTION TO OUR MONTHLY NEWSLETTER DAWGEN GLOBAL INSIGHTS

Welcome to Dawgen Global and our December 2020 edition of our Monthly Newsletter - Dawgen Global Insights.

This Newsletter has been produced to provide you with an overview of our firm and the wide range of services offered by Dawgen Global entities; whether audit, accounting, tax or advisory services.

Over the past 18 years, I can proudly say that Dawgen has significant experience and expertise that we draw upon, day after day, helping our clients to progress.

Our Monthly Newsletter will demonstrate the strength of our firm and the unique and innovative approach we engender.

This is communicated through client case studies on how our team have collaborated to help our clients succeed.

This issue of Dawgen Global Insights explores several management tools and strategies including Strategic Restructuring Critical Success Factors. Reorganization becomes essential at some stage in the lifecycle of any organization. In order to emerge triumphant through this tumultuous challenge, it is necessary that the focus remains on the challenges impeding the organization, devising approaches to tackle the challenges, and prioritizing strategic initiatives to deliver radical results.

In this edition we also examine Digital Transformation Artificial Intelligence (AI) Strategy. The rise of the machines is becoming an impending reality. The Artificial Intelligence (AI) revolution is here. Most businesses are aware of this and see the tremendous potential of AI. This article defines AI and explains the 3 basic forms of AI. Also check out our article on the 5 Ps of Purpose. The 5 Ps offer a framework to assist companies entrench Purpose in a methodical, complete manner.

I hope that you will find the information we provide in this Newsletter helpful.

Dr. Dawkins Brown Ph.D Executive Chairman Dawgen Global

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TABLE OF CONTENT 04 Strategic Restructuring Critical Success Factors

30 Performance Management: Fairness Factors

16 Digital Transformation Artif icial Intelligence (AI) Strategy

40 5 Ps of Purpose

Strategic Restructuring

Critical

Success Factors

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5 Critical Success Factors essential to drive Strategic Restructuring OVERVIEW:

R

eorganization becomes essential at

Other topics included in this article include the

some stage in the lifecycle of any

4 phases of Transformation approach, the 7

organization.

essential steps to a successful Redeployment,

In order to emerge

triumphant through this tumultuous challenge,

and

a

successful

Strategic

it is necessary that the focus remains on the

Implementation case study.

Restructuring

challenges impeding the organization, devising approaches to tackle the challenges, and prioritizing strategic initiatives to deliver radical results.

Strategic Restructuring has the capability to deliver these results.

This article provides

a detailed overview of the 5 Critical Success Factors (CSFs) necessary to implement Strategic Restructuring. The 5 CSFs include:

1

Strategic Focus

2

Continuous Communication

3

Participative Focus

4

Positions before People

5

Focus on Competency

DAWGEN GLOBAL INSIGHTS I DEC 2020

Strategic Restructuring allows organizations to revitalize.

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The objective of most Restructuring efforts is headcount reduction RESTRUCTURING – OVERVIEW

W

hen the word “Restructuring” pops up, the foremost idea that comes to mind is achieving Cost Reduction

by minimizing payroll costs—predominantly by cutting back on the headcount.

Scores of organizations have suffered because, in the melee of headcount reduction, the most competent employees quickly found opportunities elsewhere, leaving inappropriately

• Experts suggest envisioning a “Future State” for the organization, to be achieved through a robust Strategy that is implemented by the most competent employees.

• The rest of the employees either severe ties voluntarily or are laid off—ideally with a good severance package or a job placement, with the organization’s help, somewhere else.

competent employees behind, resulting in a crippled organization.

Restructuring—the

corporate

management

term—refers to Reorganization of one or a combination of the following areas: • Legal • Financial • Operational • Ownership The purpose of Restructuring is to make the organization profitable, efficient, and effective.

Headcount reduction should be a consequence of the Restructuring initiative and not the prime objective.

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The quality of the remaining employees and their correct placement is a critical aspect of Restructuring.

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A 4-phase Restructuring approach ensures successful Organizational Transformation RESTRUCTURING – TRANSFORMATION PROCESS Effective Transformation of an organization can be achieved by pursuing the following 4-phase approach.

Each incremental phase paves the way for shaping the next phase.

Phases of Transformation

1

2

2

4

Strategic Analysis

Structural Redesign

Redeployment

Renewal

Performance and Morale

High

Timeline not to scale Months

Low

4

3

1.5

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Phase 1

Phase 2

Phase 3

Phase 4

Strategic

Structural

Redeployment

Renewal

Analysis

Redesign

Each phase has a dependency on its predecessor except for Renewal.

Source: Planning for a Restructured, Revitalized Organization; Marshall, Yorks; Sloan Management Review, 1994

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The 4-phased a pproach ensures setting up a solid foundation for Restructuring RESTRUCTURING – TRANSFORMATION PROCESS (DETAILS)

STRATEGIC ANALYSIS Strategic

Analysis

determines

Let’s dig deeper into the 4 phases of Strategic Restructuring.

STRUCTURAL REDESIGN whether

A Structural Redesign puts the new organizational

Restructuring is actually required to achieve the

structure in place.

desired Future State.

is critical in making employees realize the need

When Restructuring is

Leadership’s commitment

propelled by Strategy, the company can emerge

for change.

This agreement helps influence

revitalized. It is vital for the leadership to drive

employees to trust the leadership and secures

Restructuring by Strategic Analysis – envisioning

their buy-in and participation. By virtue of being

a Future State with clear and firm commitment to

on-ground, employees are in a better position to

achieving the set objectives and standards.

drive the Structural Redesign process.

REDEPLOYMENT

RENEWAL

Redeployment places competent personnel

Renewal puts in place the desired Organizational

in the right positions to implement Business

Culture and refines the Strategy.

Strategy. This is a critical time for the organization

necessitates developing and executing a Renewal

because employee performance gets affected as

plan with rapidity for the Renewal process to bear

the transition begins. It is essential to do it in

the required outcomes.

This phase

a manner that appears fair to the employees to garner their commitment in achieving the desired state, evolve towards strategically directed

It is imperative to deploy

performance goals, and create the foundation of

resources capable of executing

a new Organizational Culture.

and managing the Restructuring process.

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Redeployment is the most critical phase of Strategic Restructuring RESTRUCTURING – REDEPLOYMENT

It is essential to avoid conducting the 7 key steps of Redeployment in piecemeal fashion to ensure their effectiveness.

Source: Planning for a Restructured, Revitalized Organization; Marshall, Yorks; Sloan Management

Using a system of checks and balances, the essential steps of Redeployment should be coordinated.

The 7 essential steps that ensure effective implementation of Redeployment require the leadership to:

1

Continuously maintain a robust Communications Plan.

2

Develop an employee assessment system based on

3

Create a system of reviews and appeals.

4

Deploy an internal placement group.

5 6

Review, 1994

Launch a severance plan for those who decide to leave the organization.

Provide training to employees at all levels for them to be able to develop competencies required to assume the responsibilities in a transformed organization.

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the newly-defined business needs and goals.

Plan for the renewal phase following redeployment.

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Strategic Restructuring demands cognizance and adoption of the 5 factors critical for its success CRITICAL SUCCESS FACTORS (CSFS) OVERVIEW Strategic Restructuring warrants careful deliberation and utilization of 5 Critical Success Factors (CSFs), necessary for a successful implementation.

These 5 CSFs are defined as follows: 1

Strategic Focus

4

Positions before People

2

Continuous Communication

5

Focus on Competency

3

Participative Focus

Senior leadership needs to ward off any obstacles and skepticism that could potentially damage the Restructuring initiative.

Senior leadership needs to ward off any obstacles and skepticism that could potentially damage the Restructuring initiative.

Source: Planning for a Restructured, Revitalized Organization; Marshall, Yorks; Sloan Management Review, 1994

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The characteristics of a successful Strategic Reorganization - the 5 Critical Success Factors - warrant a deeper attention CSFS – DETAILS (1 OF 2) PARTICIPATIVE FOCUS

STRATEGIC FOCUS • Most

Restructuring

efforts

fail

because

the

management focuses on preset staff reduction targets.

• This incorrect focus diverts the entire organization’s attention away from the real issues of organizational and staffing implications.

• Redesign of structure is a bottom-up job because the information and expertise are dispersed throughout the organization.

• Employees in the thick of the action are in the best position to undertake this effort.

• The management develops the organizational framework and keeps apprising the employees

CONTINUOUS COMMUNICATION

regarding the overall strategy in order to keep the direction true.

• Pitfall in this factor is the “need to know” approach.

Top-level leadership should be communicating with the whole organization quite frequently.

• Immediate and full disclosure of information builds trust in the management’s actions.

• Repetition is key in getting the message across.

Believing that enunciating once is enough, will be erroneous on the leadership’s part.

The more participative the Restructuring process, the better the morale and ideas for redesign.

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Leadership should ensure development of ''change agents'' to carry out positive advocacy for the Restructuring initiative CSFS – DETAILS (1 OF 2) POSITIONS BEFORE PEOPLE • Awareness of non-guarantee regarding one’s own employment, for all those who participate in the redesign process, is an underlying assumption.

The basis for this understanding is that all who participate are mature individuals, fully conscious of the competitive issues being faced by the organization, and can make difficult decisions.

• Leadership style is critical here. The management should be willing to disclose all the competitive issues being faced by the organization in order to enlist allies who can make critical and difficult choices.

FOCUS ON COMPETENCY • Strategic Restructuring has to go hand in hand with Redeployment. One important feature of this relationship is Competency-based position descriptions.

• These position descriptions are the basis for selecting and placing people according to the future requirements instead of past performance.

• Competency based descriptions give a clear signal to the employees on the criteria for selection and placement as well as on the future focus of the management.

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Bottom-up approach is the name of the game for the Strategic Restructuring program to succeed.

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Arizona Public Service Company (APS) implemented Strategic Restructuring to become one of the best power companies in the U.S. APS CASE STUDY – OVERVIEW Arizona Public Service (APS), a company in electric power business, was long suffering from governance, bureaucratic red tape, and negative margins.

• The enterprise had high costs, slumping customer ratings, and a bureaucracy that was inward looking and oblivious to the developing competitiveness in the electric power industry.

• APS faced competition from inside as well as outside its operating area. The company also faced the threat of a take-over by a competitor that had publicly targeted it.

• APS senior management decided to re-assess its position and

Commitment to change and right focus are key to revitalization.

strategic objectives. The management’s genuine belief that change was needed and their public expression regarding commitment to change were important factors in thinking about initiating program to overhaul the organization.

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Strict adherence to CSFs CSFs paved the way for APS to effectively implement Restructuring

The participatory

APS CASE STUDY – CSFS

(1 OF 2)

APS kicked-off the Strategic Restructuring program, adhering strictly to the 5 CSFs.

approach made a critical mass of employees to embrace change.

Key initiatives under each CSF included: STRATEGIC FOCUS

CONTINUOUS COMMUNICATION

• The foremost issue was envisaging what kind of

• CEO of APS spent almost 40% of his time meeting

organization would enable employees to achieve

large employee groups and answering their

the desired Future State.

concerns by sharing clear, candid information.

To achieve this, the

management kept the overall Strategy dominant in

all

discussions,

obtained

across-the-board

commitment for the program, and prioritized 3 strategic goals: become the lowest-cost power

• Communication effort was kept constant with regular newsletters and hotlines available for employees to ask questions and seek answers.

producer, a laser focus on customer service, and

PARTICIPATIVE FOCUS

high customer ratings. This helped:

• By making the process collaborative and

• The employees clearly understand how far out

participative, the management was able to

they were from the industry standards, the

come up with a structure where low-level

criticality of the program, and the strategic focus

employees had more decision-making power

of leadership.

to quickly solve problems relating to customer

• Outline the optimum structure and size.

• Build employee trust on management to be fair

complaints or their needs and kept them engaged in the process.

in their treatment, owing predominantly to the consistent “redeployment to re-staffing mantra.”

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Competency based placements are key to revitalize the organization APS CASE STUDY – CSFS

(2 OF 2)

POSITIONS BEFORE PEOPLE • APS Senior leadership ensured merit-based selections by rigorous questioning where they thought merit was not being followed.

• A Review and Appeal board was setup to ensure fairness of the process.

• Transparency and consistency in policies made sure that the employees perceived the process to be fair consequently boosting morale and commitment on their part.

FOCUS ON COMPETENCY • The managers and supervisors were trained in the process of developing position descriptions.

Through Strategic Restructuring, APS was able

• They were taught to identify major accountabilities for each position.

to achieve

• To determine accountabilities, they answered 4 questions:

reliable power

• What is the critical output required from the position?

availability

• What individuals or work-groups depend on the product, service, or

factor, highest

information produced by the position?

• The dependencies on this position, either the manager or the supervisor?

• What is the impact if the output is delayed, incomplete, or inaccurate?

• Critical competencies—knowledge, skills, and personal qualities necessary for accomplishing the job—were developed from the accountabilities.

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customer ratings, and exceeded its costs reduction goals.

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Digital

Transformation

Artificial Intelligence (AI)

Strategy

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DAWGEN GLOBAL INSIGHTS I DEC 2020

The Artificial Intelligence (AI) revolution is here:

OVERVIEW

This Article provides an overview to AI and how to develop an AI Strategy The rise of the machines is becoming an impending reality. The Artificial Intelligence (AI) revolution is here. Most businesses are aware of this and see the tremendous potential of AI. This article defines AI and explains the 3 basic forms of AI:

1

Assisted Intelligence

2

Augmented Intelligence

3

Autonomous Intelligence

We also discuss how to adopt AI in our organization and develop an AI Strategy, following a 4-step process.

• Develop an AI Strategy aligned with our overall corporate strategy.

• Develop enterprise-wide AI capabilities.

• Institutionalize our portfolio of AI capabilities.

• Ensure appropriate and sufficient Governance.

Additional topics covered include Machine Learning (ML), Natural Language Generation (NLG), Robotic Process Automation (RPA), Fourth Industrial Revolution (4IR), and AI application deployments across industries.

Many companies are making investments across all 3 forms of AI over the next few years.

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Organizations are aware of the tremendous potential and impact of AI For business decision makers, they see AI as primarily an enabler of productivity—it may change work processes and might create jobs in the long run.

AI TECHNOLOGY OVERVIEW

Source: Winning with Digital Confidence, strategy+business, 2017

The Artificial Intelligence (AI) revolution is here. Businesses are aware of this and see the tremendous potential of AI. However, they are not ready to take advantage of this emerging Digital technology.

A

“Digital

IQ”

survey

of

senior

executives

worldwide conducted by PwC in 2017 revealed that 54% of respondents stated they were

making significant investments in AI.

However, only

AI enables new approaches to existing

20% said their organizations had the necessary skills to

business models,

succeed with this technology.

operations, and

AI will affect the nature of activities, such as:

deployment of people.

• Collaboration

fundamentally alter the

• Enterprise structures

way our organization

• Decision making • Research and development

These changes can

operates.

• Creative/artistic processes

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DAWGEN GLOBAL INSIGHTS I DEC 2020

There are 3 basic forms of AI-Assisted Intelligence, Augmented Intelligence, and Autonomous Intelligence WHAT IS AI DEFINITION The book “Artificial Intelligence: A Modern

Note the emphasis on “take actions.” This is the critical

Approach” defines AI as “the designing and

difference between AI and conventional software. AI

building of intelligence agents that receive

allows computers to respond to their own signals from

percepts from the environment and take actions

the world. These are signals that software engineers do

that affect the environment.”

not directly control and likewise don’t anticipate.

There are 3 main forms of AI

1 2

ASSISTED INTELLIGENCE AI that improves what we are already doing.

WIDELY DEPLOYED

AUGMENTED INTELLIGENCE AI that enables us to do things we otherwise

EMERGING TODAY

couldn’t do.

3

AUTONOMOUS INTELLIGENCE AI that enables us to do things we otherwise couldn’t do.

WAVE OF THE FUTURE

The AI industry is forecasted to reach $15B by 2022—with accelerated growth thereafter.

Source: Artificial Intelligence: A Modern Approach, Russell and Norvig, 1995; The Strategist’s Guide to Artificial Intelligence, strategy+business, 2017

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Assisted Intelligence amplifies the value of existing activities performed by people ASSISTED INTELLIGENCE Assisted Intelligence improves what people and organizations are currently doing.

In other words, it amplifies the value of existing activities. It is currently widely available and deployed.

• Assisted Intelligence typically involves clearly defined, rule-based, and repeatable activities.

• Examples include: • Robotic Process Automation (RPA) - RPA is process automation technology where

• Back-office functions (e.g. billing, finance, regulatory compliance).

• Enterprise software processes (e.g. order-tocash, opportunity-to-order).

• Assisted

Intelligence

applications

also

software-based workers simulate routine

include modeling of complex realities, so that

human activities.

organizations can test decision and scenarios

• Physical robots (e.g., automated assembly

with less risk.

lines).

Assisted Intelligence applications are becoming more and more widely used in enterprise software platforms. This should drive to substantial improvements in key performance metrics, e.g. labor productivity, revenues or margins per employee, and average time to complete various business process.

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Augmented Intelligence provides new capabilities to human activity,

thereby enabling us to do things we otherwise couldn't do without AI AUGMENTED INTELLIGENCE Augmented Intelligence enables people and organizations to do things they otherwise couldn’t do. It does this by giving new capability to human activity. It is emerging today.

• To develop applications based on Augmented

• NLG generates natural language from a

Intelligence, we need to imagine products,

machine representation system, such as a

services, or processes that would not be possible

knowledge base or a logical form. In other

at all without AI.

words, it translates data into a natural language representation.

• Augmented Intelligence applications are typically based on Machine Learning (ML) and Natural

• To

measure

the

success

of

Augmented

Language Generation (NLG) algorithms, which

Intelligence implementations, we can track our

are custom developed for our organization’s use

margins, innovation cycles, customer experience,

case or our industry.

impact on disruption, and revenue growth as

• ML provides computers with the ability to

potential metrics.

learn and self-improve.

These algorithms

identify patterns in structured data.

EXAMPLE • Netflix leverages ML to suggest choices for subscribers that they probably would not have found themselves. This is done based on both the customer’s own behavior patterns and those of the audience at large.

• This capability is something media has never done before.

Over time, algorithms will become even more sophisticated

Unlike Assisted Intelligence, Augmented Intelligence fundamentally changes the nature of the task— business models thus change accordingly.

and accurate, as they collect and analyze more data.

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The most sophisticated form of AI, Autonomous Intelligence creates and deploys machines that act on their own AUTONOMOUS INTELLIGENCE Autonomous Intelligence creates and deploys machines that act on their own. It is being developed for the future. Although there are working examples, there are no pervasive deployments.

• Autonomous Intelligence systems have not become widespread, but will spearhead the Fourth Industrial Revolution (4IR).

• Early working examples include:

EXAMPLE • WeChat, China’s most popular social media platform with almost 800 million daily active users, has a host

• Automated trading in the stock market. In fact, about

of AI applications (many which can be

75% of Nasdaq trading is conducted autonomously. The

considered Autonomous Intelligence).

new breed of high-frequency trading firms are largely

These

include

based on this form of AI.

voice

recognition,

• Facial recognition.

• Autonomous vehicles. Elon Musk says by the end of 2017, Telsa will have an autonomous car that can drive from Los Angeles to New York.

• Medical diagnosis (mostly by examining medical images, e.g. x-rays).

• Bomb disposal robots.

• Space station maintenance.

• Gathering of deep-sea data.

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sophisticated Chinese-to-

English language translation, facial recognition,

and

virtual

bot

friends.

• These are mostly still niche applications within WeChat; and are still very limited by current technological capabilities.

The biggest challenge for Autonomous Intelligence is for organizations to convince the public it can trust in their “robots.”

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To develop an AI Strategy, we can follow a 4-step process 1

Develop an AI Strategy aligned with our overall corporate strategy

2

Develop enterprise-wide AI capabilities

3

Institutionalize our portfolio of AI capabilities

4

Ensure appropriate and sufficient Governance

Investments in AI can be very expensive now—however, like all technology, the costs will decline considerably as software becomes more software.

Source: The Strategist’s Guide to Artificial Intelligence, strategy+business, 2017

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First, let's understand some key questions and considerations to better understand the optimal mix of the 3 types of AI AI DEVELOPMENT – KEY QUESTIONS & CONSIDERATIONS In developing our AI Strategy, we need to determine what the optimal mix of the 3 types of Artificial Intelligence—Assisted, Augmented, Autonomous—makes the most sense for our organization. Here are several questions for us to ponder: ARE WE PRIMARILY INTERESTED IN UPGRADING OUR EXISTING BUSINESS PROCESSES, REDUCING COSTS, AND IMPROVING PRODUCTIVITY?

ARE WE LOOKING TO BUILD OUR BUSINESS AROUND SOMETHING NEW (E.G. RESPONSIVE, SELF-DRIVEN PRODUCTS)?

If so, we should begin with Assisted

ARE WE LOOKING TO DEVELOP A GENUINELY NEW TECHNOLOGY?

Intelligence.

Consider leveraging a

small group of services from a cloudbased AI provider.

Outline the optimum structure and size. to be fair in their treatment, owing to

the

consistent

“redeployment to re-staffing mantra.”

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Consider more complex cloud-based AI applications.

If so, we should carefully consider Autonomous Intelligence.

Note that most organizations are better off primarily using someone else’s AI platforms. However, if we can justify building our own, we may become the industry leaders in the future.

Build employee trust on management predominantly

If so, we should evaluate an Augmented Intelligence approach.

Most organizations begin somewhere between Assisted and Augmented—with the intention to move towards Autonomous eventually down the road.

DAWGEN GLOBAL INSIGHTS I DEC 2020

First, we need to ensure our AI Strategy aligns with our Corporate Strategy'then, develop enterprisewide AI capabilities AI STRATEGY DEVELOPMENT STEPS 1 AND 2 DAWGEN GLOBAL INSIGHTS I DEC 2020

1 Develop an AI Strategy aligned with our overall corporate strategy • Integrate AI into your existing digital and analytics plans • Decide which businesses to disrupt and which to enhance • Consider new business models based on improved productivity • Plan

long-term

investments

in

autonomous intelligence

2 Develop enterprisewide AI capabilities • Redesign products and services to incorporate machine learning • Use AI to upgrade your most critical distinctive capabilities • Use automation to improve your current decisions • Automate

your

existing

business

processes or develop new ones • Recruit

engineers

and

other

professionals who understand AI

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We then must institutionalize our AI capabilities'lastly, ensure appropriate Governance AI STRATEGY DEVELOPMENT STEPS 3 AND 4

3

4 Ensure appropriate and sufficient Governance

Institutionalize our portfolio of AI capabilities

• Establish clear policies with respect to data privacy,

• Embed AI throughout your business processes • Embrace

cloud

platforms

and

specialized hardware • Foster a decision-making culture open to ideas from AI support

decision rights, and transparency • Set up governance structures to monitor possible errors and problems (for example, overreach in program trading) • Set up communications practices to explain AI-related decisions • Consider the impact on employment and invest in developing the workforce that AI will complement

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DAWGEN GLOBAL INSIGHTS I DEC 2020

Here are examples of how other companies and industries are and will be investing in AI deployments TIMELINE OF AI APPLICATION DEPLOYMENTS The diagram below depicts the estimated dates for commercial availability of AI applications across industries, categorized in Assisted, Augmented, and Autonomous Intelligence.

INDUSTRIES Healthcare

2015

2020

Medical image classification

Arts and Communications

2025 Personalized medicine

• Robot musicians • Automated machine • Augmented translation movie script

2030 Doctorless hospital

Creative arts engines

writing • Guided personal Autonomous budgeting investing

Personal Finance

Automated insurance claims processing

Mobility

Robotaxis

Science and Environment

• Precision Autonomous planting advice mining

• Automated 3D bioprinting

• Bomb disposal robots

• Artificial wildlife habitats

Self-driving vehicles Self-navigating drones

• Scientific discovery

Management

Customer service chatbots

Legal e-discovery

Management Decentralized cockpits for corporate functions busi-ness decisions (e.g., HR and accounting)

Source: The Strategist’s Guide to Artificial Intelligence, strategy+business, 2017

DAWGEN GLOBAL INSIGHTS I DEC 2020

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The Fourth Industrial Revolution is now underwaydriven by robotics, automation, and AI FOURTH INDUSTRIAL REVOLUTION – OVERVIEW Coined by the World Economic Forum (WEF) in 2016, the Fourth Industrial Revolution (4IR) is the fourth major industrial era, since the initial Industrial Revolution of the 18th century. 4IR is often also referred to as Industry 4.0, although Industry 4.0 really refers to the manufacturing-oriented advancements, similar to how Service 4.0 refers to the Service organization advancements.

The Fourth Industrial Revolution can be described as a range of new technologies that are fusing the physical, digital and biological worlds, and impacting all disciplines, economies, and industries. Major drivers to the Fourth Industrial Revolution include robotics, automation, and AI. 28

Fourth Industrial Revolution

Third Industrial Revolution

Second Industrial Revolution First Industrial Revolution

We are here

“Mastering the Fourth Industrial Revolution” was the theme of the World Economic Forum (WEF) Annual Meeting in 2016.

DAWGEN GLOBAL INSIGHTS I DEC 2020

Each revolution destroys and creates new jobs, industries, and ways of life FOURTH INDUSTRIAL REVOLUTION – INDUSTRIAL REVOLUTION OVERVIEWS

FIRST INDUSTRIAL REVOLUTION The First Industrial Revolution took place from the 18-19th centuries in Europe and America. It was a period that saw the transition from mostly agrarian, rural societies became industrial and urban. Notable developments include the iron and textile industries and the steam engine.

SECOND INDUSTRIAL REVOLUTION The Second Industrial Revolution took place between 1870 and 1914, just before World War I. Triggered by the advent of electric power to create mass production, this was a growth period for pre-existing industries and expansion of new ones, such as the steel, oil, and electricity fields.

THIRD INDUSTRIAL REVOLUTION The Third Industrial Revolution, or the Digital Revolution,

refers

to

the

advancement

of

technology from analog electronic and mechanical devices to the digital technology available today.

The era started to during the 1980s and is ongoing.

This era was triggered by the rise of the personal computer, Internet, and mobile communications.

FOURTH INDUSTRIAL REVOLUTION The Fourth Industrial Revolution builds on the Digital Revolution, representing new ways in which technology becomes embedded within societies and even the human body.

DAWGEN GLOBAL INSIGHTS I DEC 2020

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Performance Management:

Fairness

Factors 30

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This lects on the key ''Fairness Factors'' that can change the negative perception of most Performance Management systems PRESENTATION OVERVIEW The Performance Management systems at most places are considered biased by large segments of employees. In a recent survey, two-thirds of the respondents had made at least one critical change to their Performance Management systems in a year or so before the survey.

Human

Resources

departments

at

many

organizations are now abolishing the unpopular “forced curve” employee ranking systems, changing relatively identical compensation regimes, and critically analyzing employee data to find out the real drivers of motivation and performance. However, not much progress has been made in this regard, as employees still complain that the performance evaluation input they get feels prejudiced and inconsistent with their work.

This article highlights the importance of “fairness factors” in Performance Management. It explains 3

Many well-meaning Performance Management systems run the risk of failing, unless a sense of fairness underlines them

priorities for addressing them; and demonstrates how the skillful utilization of coaching and rewards can bolster a sense of fairness among the employees.

DAWGEN GLOBAL INSIGHTS I DEC 2020

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Companies determined to improve Performance Management must listen to their employees, who have a pretty good idea of what fairness is

Employees feel more engaged when they know where they stand in terms of performance, grading criteria, and rewards.

THE ISSUE WITH PERFORMANCE MANAGEMENT

Source: The Fairness Factor in Performance Management, McKinsey, 2018

The Performance Management systems at most places are considered biased by the employees. In a recent survey, two-thirds of the respondents had made at least one critical change to their Performance Management systems in a year or so before the survey.

• Human Resources departments at many the

any higher purpose. In a McKinsey Global

unpopular “forced curve” employee ranking

Survey of 1,761 executives Performance

systems,

identical

Management, about 50% of the executives

critically

surveyed stated that their evaluation and

analyzing employee data to find out the real

feedback systems do not have any bearing

drivers of motivation and performance.

on their performance or rather have a

organizations

are

changing

compensation

now

abolishing

relatively

regimes,

and

• However, not much progress has been made

negative impact.

in this regard as employees still complain

• A few organizations tried to abolish the

that the performance evaluation input they

annual performance reviews without a clear

get feels prejudiced and inconsistent with

replacement system, which led employees

their work.

to complain of feeling purposeless without

• Most

supervisors

see

Performance

Management as a rigid exercise to serve a

32

bureaucratic expediency than to accomplish

solid feedback. Eventually, some employers restored the old review systems.

DAWGEN GLOBAL INSIGHTS I DEC 2020

''Fairness Factors'' refer to fairness of the Performance Management procedures FAIRNESS FACTORS – OVERVIEW Fairness factors ascertain whether employees perceive the main elements of Performance Management as well designed and objectively functioning.

Research on respondents who perceived the Performance Management system as fair also revealed them to consider the system effective.

The research data also manifested the fundamental characteristics of a fair system.

Three key factors stood out, which significantly affect employee perceptions of fairness. Performance Management systems have a better chance of being perceived as fair when these 3 factors are addressed in them:

1

Linking Performance Goals to Business Priorities

2

Coaching by Managers

3

Differentiating Compensation

DAWGEN GLOBAL INSIGHTS I DEC 2020

These fairness factors have a “force multiplier” effect when utilized together.

33

Research on Performance Management systems show organizations that employed the 3 fairness factors achieved positive results FAIRNESS FACTORS – SURVEY RESULTS Research conducted by McKinsey on the companies that implemented all 3 fairness factors revealed that 84% of their executives described their Performance Management system to be effective.

% of respondents rating performance management systems as effective 84

7 0

27

1

43

2

3

% of respondents rating performance management systems as effective These satisfied respondents were 12 times more likely to report positive results than those who said their organizations hadn’t implemented any of the three fairness factors.

34

The fairness factors have a positive impact on individual employees’ performance and on their organizations’ overall performance.

Source: The Strategist’s Guide to Artificial Intelligence, strategy+business, 2017

DAWGEN GLOBAL INSIGHTS I DEC 2020

Implementing the fairness factors KEY ACTIONS Seek Employees necessitates 1 Buy-in on their changing KPIs commitments, attitudes, and compensation Fine-tune 2 Employees Goals systems Regularly

Make employees at all levels feel personally involved in shaping their own goals, since top down delegation of goals rarely generates the kind of employee engagement companies strive for.

FACTOR 1 – OVERVIEW Linking Performance Goals to Business Priorities DESCRIPTION Building grounds of trust in Performance Management starts with clear communication of expectations from all employees and by educating them on how their work corresponds with the organizational objectives. The employees have a sense of meaning and purpose.

DAWGEN GLOBAL INSIGHTS I DEC 2020

Employee KPIs are only rarely adjusted in most companies. These should be regularly revised in response to shifting strategies or evolving market conditions.

Deploying fairness factors warrants engaging employees to realize them how their efforts count, more coaching from managers, and fine tuning their compensation systems.

35

Objective measurement of KPIs on complex tasks warrants frequent feedback and being more rigorous with joint goals alignment FACTOR 1 – KEY ACTIONS

1

2

Seek Employees Buy-in on their KPIs

• Engage employees at all levels to get involved in

Fine-tune Employees Goals Regularly

• Just as organizational objectives set by the strategic top level are periodically revised,

determining their own goals.

• To involve people, create a working group of executives, managers, and team leads, conduct sessions to define

KPIs at the individual level should be regularly adjusted.

key areas needing improvement, outline overarching

• Revisiting goals frequently shuns the

goals that are linked to problem areas and KPIs at the

efforts of employees and goals from

business-unit, team, and individual employee level.

drifting into worthlessness by the year-

• The KPIs should focus on areas such as operational measures (e.g., problem solving on calls), payout measures

(e.g.,

managing

vendors),

customer

satisfaction, and employee retention.

end, eventually damaging trust.

• Companies—where

performance

is

managed effectively—revisit their goals frequently.

• Allow employees to review and provide feedback on their KPIs to ensure that these fit their roles and to get their commitment.

• Give the managers freedom to tweak the KPIs collectively for different roles.

• A performance dashboard can allow each employee’s KPIs to be shared with team members daily, highlighting the teams’ overall progress and the efforts of top performers.

36

Revisiting employee goals and KPIs on an ad hoc basis— even twice a year or more—helps in keeping their efforts on target.

DAWGEN GLOBAL INSIGHTS I DEC 2020

Managers are responsible for the execution of performance requirements represented in the form of KPIs

KEY ACTIONS

1

Keep a Pulse Check from the Onset

Team leaders must meet weekly with supervisors to see if the KPI targets and measures are in line with current business.

If not, they recalibrate measures as needed based on data, and, then, in team coaching sessions they discuss and adjust goals, empowering everyone.

2

Spend in Developing Skills

Build the soft skills of managers to conduct meaningful

performance

conversations,

evaluate performance fairly, and drive

FACTOR 2 – OVERVIEW

employees to higher achievement levels.

3

Coaching by Managers DESCRIPTION The reliability and impartiality of Performance Management procedures rests on managers to become effective coaches, since managers are quite aware of individual employees, their capabilities,

These

Aim for the Long-term management

support

sessions

must not be one-off initiatives; they should become a central element in efforts to build a team of strong coaches.

and development needs. However, fewer than 30% of respondents in the McKinsey Global Survey on Performance Management believed their managers to be good coaches.

Because of inability of the

managers to not coach well, only 15% respondents from

this

group

reported

the

Management system to be effective.

Performance

Managers role in the capacity building of employees is critical in effectively managing the team’s performance.

Source: The Fairness Factor in Performance Management, McKinsey, 2018

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37

Better performance conversations along with appropriate coaching abilities boost perceived fairness and employee engagement FACTOR 2 – KEY ACTIONS

1

Keep a Pulse Check from the Onset

• Managers should have daily check-ins with the teams and weekly team performance roundups.

• The work of individual team members must be review monthly.

• They should keep up to date on the individual’s KPI fulfillment through dashboards. The dashboard should flash red for below average work across all KPI elements.

When employees get two red lights, they should receive written feedback and three hours of extra coaching.

2

Spend in Developing Skills

3

Aim for the Long-term

• In order for the managerial support sessions to be regularly held, companies need to do restructuring of some aspects of their HR’s role.

• A unit from the HR should be freed up from other transactional HR activities and focus solely on enhancing the capabilities of managers and their impact on the business.

• HR top management should undergo a mandated HR Excellence training program to shift legacy functional mindsets and help HR directors think strategically.

• Companies should invest in building the managers’ confidence and ability to evaluate performance fairly and to motivate employees by conducting workshops and skill-validation sessions, moderated by HR. • Managers receive guidance on how to encourage employees to set multiyear stretch goals that build on their strengths and passions.

38

To improve productivity, firms can train “champions” in specific areas, to run “train the trainer” workshops and spread the new coaching practices across the board.

DAWGEN GLOBAL INSIGHTS I DEC 2020

For managers, aligning compensation with goals for newer organizational roles and performance patterns is an ordeal

KEY ACTIONS

1

Don’t Eliminate Rating Systems

Companies where compensation is not differentiated render their Performance Management system ineffective as the approach does not help employees know why their pay is what it is.

2

Check Variations in the Middle

It is risky for companies to have marked differences in compensation among team members. Setting a base salary and annual increase that all employees receive helps manage this issue.

FACTOR 3 – OVERVIEW Differentiating Compensation

3

Adopt the Power Curve for Outstanding Achievers

DESCRIPTION

Even

Finding the right benchmarks and differentiating

compensation across the board, companies

among top, middle, and low performers—amidst

are

interdependent roles, collaboration, and difficult to

performers outsized rewards, since research

track individual efforts—is tough for most managers.

suggests that 20% of employees generate

This can be managed by adopting a balanced

80% of value (the “power curve”).

measurement approach—keeping things simple, for the managers to clearly explain the reasons for a pay decision and employees to understand.

HR managers get hints about unfair Performance Management systems that don’t recognize top performers.

DAWGEN GLOBAL INSIGHTS I DEC 2020

4

with now

distribution

starting

to

of

give

uniform

exceptional

Initiate Ad Hoc Bonuses

Recognizing

outstanding

efforts—with

a percentage of salary and a letter of recognition—shows

that

managers

are

engaged and that the performance system is appreciative and rewarding.

39

5 Ps of

Purpose 40

DAWGEN GLOBAL GLOBAL INSIGHTS INSIGHTS II DEC DEC 2020 2020 DAWGEN

An organization cannot thrive without a Purpose- Purpose should be embedded in the core for an organization to achieve long-term success Most of us have experienced a their reason for existence and the uniqueness in some organizations. resulting impact it makes on the They stand out, exude fervor and world.

OVERVIEW

zeal. Their customers are pleased In order to be genuine, Purpose has with the company, employees enjoy to be embedded in the organization’s

working there, and investors and DNA, which is not a trivial task. This shareholders take pride in being presentation discusses the 5 Ps of part of it.

Purpose that can help organizations

It is not their exceptional product entrench genuine Purpose in its or service rather the Purpose that core. The 5 Ps identifies 5 core areas makes

organizations

unique— of focus:

1

Product Portfolio Strategy

2

People & Culture

5

Positions & Engagement

3

Processes & Systems

4

Performance Metrics

Purpose has to be genuine and melded in the organization’s core.

DAWGEN GLOBAL INSIGHTS I DEC 2020

41

Purpose entices the stakeholders to identify and happily associate with the company PURPOSE – OVERVIEW Most of us have experienced a uniqueness in some organizations.

T

hese organizations stand out, exude fervor and zeal. Their customers are pleased with the company, employees enjoy working there, and investors and shareholders take pride

in being part of it. It is not their exceptional product or service rather the Purpose that makes organizations unique—their reason for existence and the resulting impact it makes on the world.

Stakeholders identify with organizations that genuinely follow their Purpose.

Purpose.

Leadership allocates resources in-line with the

Employees keep the Purpose front and center while

making decisions for the company. On the other hand, ingenuine Purpose may harm the reputation of the company by turning away the stakeholders.

In order to be genuine, Purpose has to be embedded in the company’s DNA, which is no mean task.

The “5Ps of Purpose

Framework” shows how this can be successfully achieved.

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Companies that are authentic have mass appeal.

DAWGEN GLOBAL INSIGHTS I DEC 2020

The 5 Ps of Purpose enables companies to successfully entrench Purpose in the DNA of the company PURPOSE – THE 5 PS OF PURPOSE The 5 Ps offer a framework to assist companies entrench Purpose in a methodical, complete manner.

The 5Ps emphasize the 5 key areas where Purpose needs to be entrenched for it to reverberate through the entire company and beyond.

The framework contributes to unlocking the source of value for the company and detect points of weakness. The 5 Ps are 5 areas of conduct and operations:

1 2 3 4 5

Product Portfolio Strategy People & Culture Positions & Engagement Processes & Systems

Purpose can pay lots of dividends, but it has to be authentic and imbued in the organization’s business model.

Performance Metrics

Source: More Than a Mission Statement, McKinsey, 2020

DAWGEN GLOBAL INSIGHTS I DEC 2020

43

The first P of the 5Ps of Purpose calls for aligning products and services with the Purpose of the company PRODUCT PORTFOLIO STRATEGY – OVERVIEW OVERVIEW An organization’s Product / Service Offerings and the associated modalities of market and position planning

DETAILS • The 1st step entails alignment of the business portfolio with the company’s Purpose.

that best caters to the target market ought to imbibe

• Companies already in existence may not

the Purpose of the company in order to appeal to the

be able to start afresh but they can surely

stakeholders.

reshape their business mix in a dynamic and resolute manner.

KEY ACTIONS • Rethink product portfolio — for example pull out certain products, launch new products.

• Modify pricing in line with Purpose.

• In step 2, the portfolio businesses are filled out with products or services that match the Purpose and the ones that do not are rooted out.

• Re-evaluate portfolio and test rationale of individual assets in light of common criteria.

44

Exhibiting Purpose in the organization’s product / service offerings has to be approached with an open mind in order to achieve product growth objectives.

DAWGEN GLOBAL INSIGHTS I DEC 2020

Even established companies are able to reinvent their Purpose in light of the changing times and modify product offerings accordingly DAWGEN GLOBAL INSIGHTS I DEC 2020

PRODUCT PORTFOLIO STRATEGY – CASE EXAMPLE • An energy company in the extractive industries since it was founded 85 years ago has proved successfully that Purpose can be reinvented.

• Being

in

the

extractive

business

for

such a long time has not restricted the company from reexploring what an energy company may look like in the transforming environment of the future.

• The company has significantly transformed its Purpose—“reimagining energy for people and planet.”

• In line with its Purpose, the company has divested from its petrochemicals businesses and plans to reduce its legacy oil and gas business by 40% by the year 2030.

• The company will instead augment its low-carbon energy businesses such as bioenergy,

hydrogen,

electric

vehicle

charging businesses, and aims to be a netzero carbon emitter by the year 2050.

No matter how old, genuine Purpose enables reinvention in companies.

45

The 2nd P underscores the significance of developing people and Organizational Culture that empower Purpose PEOPLE & CULTURE – OVERVIEW OVERVIEW

DETAILS

Stakeholders—especially the employees—are the

• Infusing Purpose through people starts

bedrock for infusing Purpose in the culture of the

with hiring employees who identify with the

company. The employee sentiment is a reality check

company’s Purpose.

for a genuine versus superficial Purpose.

KEY ACTIONS • Orient recruiting, people development, and career pathways in line to empower Purpose.

• Delineate Purpose KPIs, give employees incentives to meet them, and make them answerable.

• Enunciate and model the desired individual mindsets and behaviors that express Purpose.

• Purpose should be kept in view while making HR decisions such as HR development and career path development.

• Research

indicates

that

Employee

Engagement is 4 times greater in companies driven by Purpose.

• Attention to employee well-being boosts employee enthusiasm, which in turn gets reflected in returns on stocks—research shows up to 3% more returns than companies that do not focus on employee well-being.

Happy stakeholders are the backbone of the company – Genuine Purpose provides happy stakeholders.

• Pursuit of meaningfulness in a job should be encouraged rather than suppressed in employees.

• Giving employees suitable means and instruments reinforced by a “speak up” culture to pinpoint gaps is essential to embedding Purpose.

46

DAWGEN GLOBAL INSIGHTS I DEC 2020

Companies world-wide are recognizing and enabling employees to find meaningfulness in jobs PEOPLE & CULTURE – CASE EXAMPLES • An example of employee well-being is a move to increase employee pay in the year 2019 by a large multinational on-line payment company.

Not only that, the company increased benefits and also made all employees its shareholders.

• Encouraging

employees

to

find

meaningfulness in job and grasping an opportunity when it arises was demonstrated by a senior executive of an energy company who later became the CEO. The CEO promoted an employee to lead the Purpose engagement effort after she questioned meaningfulness of her job.

• Another example in the People and Culture aspect of Purpose—Employee Engagement— was exhibited by a well-known electronic items retail company when its CEO invested heavily in employee training. The organization provided employees with heavy discounts to buy the company’s products, use them, and then recommend them to others. The company also formed ‘geek squads’ of

Meaningfulness drives employees to do extra for the company.

employees who choose, install, personalize, and support products that company sells.

DAWGEN GLOBAL INSIGHTS I DEC 2020

47

The 3rd P entails fine-tuning processes and systems of the company to reflect and be geared towards achieving Purpose PROCESSES & SYSTEMS – OVERVIEW OVERVIEW procedures—the company counts on to establish value and to fulfil its Purpose—address the “how” of company’s business model.

impetus of Purpose and they can be embedded regardless of the sector the • Embedding

Purpose

in

the

company

systems and processes has to be an allencompassing exercise that should involve the whole supply chain.

• Embedding Purpose throughout the supply chain becomes a source of strength in

KEY ACTIONS operational

• Robust systems and practices are the

company operates in.

Operational initiatives, rewards, and governance

• Adjust

DETAILS

testing times. processes

to

achieve

Purpose-linked goals.

• Make sure behaviors are in line with Purpose throughout the supply chain.

48

Embedding Purpose in the process and systems should be planned bearing in mind the present as well as the future.

DAWGEN GLOBAL INSIGHTS I DEC 2020

Purpose should not only reverberate throughout the company but also in outside partners

PROCESSES & SYSTEMS – CASE EXAMPLES • A tech giant provides a very good example of considering planning for embedding Purpose into its processes and systems. It had set itself the goal of being carbon neutral and achieved it in 2012.

The company now aims even higher—i.e., to use only renewable energy for its complete operations by the year 2030—becoming carbon negative. The company assesses an internal carbon fee on its business divisions and uses the funds from such assessments to further invest in carbon-reduction efforts within the company as well as worldwide.

• Another

multinational

retail

corporation

exemplifies infusing Purpose in its supply chain by aiming to reduce emissions up to one Gigaton throughout its supply chain by the year 2030. The company helped its suppliers reduce emissions in 6 identified categories by developing a platform that enables suppliers to chart their emission reductions.

Suppliers come up with their own

reduction goals based on the SMART principles – Specific, Measurable, Achievable, Relevant, and

Genuine Purpose rubs off on the world.

Time-limited. The progress on these goals has to be reported annually by the suppliers. The company recognizes and rewards top achievers.

• A leading global resource company showed the value of embedding Purpose in its processes when during the COVID-19 crisis it moved to support its small, local, indigenous suppliers by reducing payment terms period significantly. It recognized the vulnerability of its partners during a time of crisis and sought to play a part in supporting them.

This reverberation has become mutual with time.

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49

The 4th P demands appraising achievement of Purpose through key performance indicators and metrics PERFORMANCE METRICS – OVERVIEW OVERVIEW

DETAILS

Purpose should be gauged meticulously.

• Key Performance Indicators should be identified that link

Since Purpose is a customized feature its

to the company’s Purpose, indicators need to be monitored

metrics have to be specific too. Off-the-

over time, and the company incentivized to meet Purpose

shelf metrics available in the industry will

targets.

not portray a true picture.

KEY ACTIONS • Fix performance targets and metrics in line with Purpose.

• Institute capital allocation metrics in line with Purpose for decisions.

• Differentiation

between

Environment,

Social,

and

Governance (ESG) metrics and Purpose metrics has to be maintained.

• Purpose comes from within and likewise should lead to the type of metrics to be used to measure them, not viceversa.

• Purpose metrics should inform not only routine operations, but also allocation decisions—such as capital expenditures and

Mergers

and

Acquisitions—and

company-wide

Transformation initiatives.

• Purpose is significantly strengthened simply by presenting

Purpose dictates metrics—these metrics should be easily understood across the board.

to employees and stakeholders the metrics in standardized report.

• Gauging and stimulating should not be limited to monetary incentives only. Organizations should celebrate offices and employees who demonstrably further the Purpose cause.

• Behavioral Economics can be used to entice employees to make Purpose part of their daily routine, such as energy saving or waste reduction.

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DAWGEN GLOBAL INSIGHTS I DEC 2020

Rethinking Performance metrics in line with Purpose pays off surprising dividends PERFORMANCE METRICS – CASE EXAMPLES • A

leading

retail

bank

rethought

its

fundamental purpose; its relationship with society; individual customers; and the way it should identify, measure, and improve its Purpose-based performance.

• The

financial

institution

redesigned

its

incentive structure to improve customer outcomes which was part of their Purpose.

• The bank made a symbolic shift by reducing the weightage of volume-based targets in employee evaluations since it deemed this shift critical to its Purpose. Although deemed symbolic, the shift proved profitable and the bank out-performed its peers in the industry.

• Quality of Purpose, and the associated widerange endeavors and actions that reinforce Purpose, ended up being more powerful than quantity.

• In other sectors, monetary recompence is linked to achieving of Purpose metrics; like many energy companies now bind executive compensation to emissions that can be demonstrably reduced.

DAWGEN GLOBAL INSIGHTS I DEC 2020

Staying true to the Purpose and making tough decisions pays off in the long run.

51

The final P warrants alignment of positions and relationships with the Organizational Purpose POSITIONS & ENGAGEMENT – OVERVIEW OVERVIEW

DETAILS

The Positions and Engagement component

• Purpose should be built into the way

emphasizes alignment of extraneous positions

company communicates information to and

and relationships to be in consonance with, and

interacts with the public.

constantly deliver on, the Purpose the company has defined.

• Opinion of the customer-base matters most to companies. Genuine Purpose helps align customers’ opinion.

KEY ACTIONS • Customize

external

• Public can decipher an unauthentic act. commitments

and

communications to Purpose.

Research shows that 2/3rds of the people may use a product or service once but if they do not trust the company, they will switch.

• Adjust extraneous positions in line with Purpose.

• Belief-based consumers and consumerism

• Align affiliations—such as trade-association

demands genuine behavior from companies.

membership—with Purpose.

Research shows that 50% of the people believed companies should be involved in

Hard-wired Purpose makes company’s positions, communications, and externalengagement coherent amplifications of the company’s business model.

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at least one social issue that has little to do with its business.

• Built-in Purpose eradicates the gulf between walk and talk.

DAWGEN GLOBAL GLOBAL INSIGHTS INSIGHTS II DEC DEC 2020 2020 DAWGEN

An organization's outside associations should also be in-line with its Purpose POSITIONS & ENGAGEMENT – CASE EXAMPLES • One of the biggest tech giant’s Purpose

divested from its extractive business also

statement is “to empower every person and

made an extensive review of the support being

every organization on the planet to achieve

extended by them to various associations. The

more.” The company decided to close its

company withdrew support to a number of

brick-and-mortar stores and move to digital

trade associations that were deemed contrary

retail stores. However, the company did not

to the company’s Purpose.

fire its brick-and-mortar store workers. They

• A

well-established

food

manufacturing

were retrained and now they carry on assisting

company deploys its 150-year-old philanthropic

customers

and

foundation to contribute food expertise by

remotely, delivering digital sales, training, and

partnering with employees in the communities

support.

in which they live and work.

from

corporate

facilities

• One of the largest and established energy company that rethought its Purpose and

What is applicable within the company should apply beyond it too—the purpose should incorporate a sense of social responsibility and community development.

DAWGEN GLOBAL INSIGHTS I DEC 2020

53