Workforce of the Future is Upon Us - Entrepreneurship 101 (2012/2013)

WORKFORCE OF THE FUTURE IS UPON US How companies need to rethink their own workforce plans & build unconventional teams.

Agenda 1.  The changing workforce landscape

•  What is driving change •  How are workforces changing •  Why does it matter

2.  Rethinking your workforce plans •  Moving away from conventions •  Planning for success – building a strong core, leveraging virtualized

resources

Workforce Models

Features: •  Resources hired as employees (full time, part time, permanent or term) •  Employees generally work within company’s offices or facilities •  Some ability to work outside of the office – but flexibility is limited •  Some volume work might be outsourced to low cost regions •  May have service partners for some peripheral work

Why this approach: •  Conventional – what we know and are familiar with •  Secures resources, knowledge and IP •  Ability to collaborate “around the water cooler” •  Can control, manage and plan the resources

Workforce planning: •  Focuses on mix and headcount

Bricks & Mortar

Formation

Technical Milestones

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Financial Milestones

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Organizational Milestones

CEO

R&D Lead

CFO (P/T?)

PLM

Sr. R&D

Marcomms

Int./Jr. R&D

BD/Sales

QA

SE’s Sales

(Hunter) Sales

(Farmer)

CTO

Sales Support

Customer Support

HR (P/T?)

VP Sales

VP Marketing

Admin. Support CFO

(F/T) Accountant COO?

HR (F/T?)

Workforce Planning – mix Company Stage – business inflection points

Pre-revenue Early revenue Repeatable revenue Maturing Products Major Revenue Growth

Time

Corporate Leadership and Operations Build, deliver & support

Design & development

Marketing & Sales

Hea

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Product definition roles

Workforce Planning – headcount growth

Time

Corporate Leadership and Operations Build, deliver & support


Marketing & Sales

Hea

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Product definition roles

Workforce Planning Challenges

Revenue projections are challenging

Talent assumptions: •  The skilled resources you need are

available WHEN you need them •  They are local, or willing to move to your

location(s)

Bricks & Mortar plus some remote working sites. Features:

•  Resources hired as employees (full time, part time, permanent or term) •  Employees generally work within company’s offices or facilities •  Some ability to work outside of the office – but flexibility is limited •  Create remote locations to capture other labour pools for talent •  Some volume work might be outsourced to low cost regions

•  May have service partners for some peripheral work Why this approach:

•  Conventional – what we know and are familiar with •  Secures resources, knowledge and IP •  Access to additional labour pools outside of corporate HQ geography •  Ability to collaborate “around the water cooler”

•  Can control, manage and plan the resources Workforce planning:

•  Focuses on mix and headcount

Workforce Models

Changing Workforce Landscape

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•  changing labour market demographics

•  Economic forces


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•  ‘Low-cost’ markets disappearing •  Labour market size differences growing



•  Canada has geographically dispersed talent pools •  Culture of mobility not strong



•  GTA has additional geographic challenges in attracting talent



•  Economic forces •  Technology

Hiring for critical technical skill sets •  Essential developer skills change continually •  Technical advances •  Changing customer demands

•  Legacy (‘old’ tools) vs. new products (“newest” tools) Enterprise technology is changing

•  How companies work – remote access; cloud computing; any device in any location; etc.

•  Security risks will force rethinking of mitigation strategies

Protect: Intellectual Property Information and data

Lock it down strategy •  Prevent, detect, shut

down threats •  Controlled access •  Keep IP, information,

date within corporate ‘walls’

•  Utilize security technologies




Employee Information & Data

Customer Information & Data

Corporate business information

Corporate IP (know how)

Technical IP

(patented)

Strategies: •  Restrict phone lists •  Locked personnel files •  Company lap tops •  Corporate servers •  Limit portable devices •  Encrypted files •  Patent filing •  Confidentiality agreements •  IP assignment agreements •  Non-competition

agreements •  Disaster recovery programs •  Redundancy and back ups •  Security technologies •  Security policies

Cloud computing

Any device

Personal computers

Litigation defense

APT’s (Advanced Persistent Threats)

Social media

Top security firm RSA Security revealed on Thursday that it’s been the victim of an “extremely sophisticated” hack. (Source: Wired Magazine, March 2011)

Challenges:








Technical IP

(patented)

So What?? Bricks & Mortar model

Conventional – what we know and are familiar with

Secures resources, knowledge and IP Ability to collaborate “around the water cooler” Can control, manage and plan the resources


•  Economic forces •  Technology •  Crowdsourcing

Hiring for critical technical skill sets •  Essential developer skills change continually •  Technical advances •  Changing customer demands •  Legacy (‘old’ tools) vs. new products (“newest”

tools)

Enterprise technology is changing

•  How companies work – remote access; cloud computing; any device in any location; etc.

•  Security risks will force rethinking of mitigation strategies

Crowdsourcing through social media

•  Connecting, sharing, revealing, interacting through online or data channels



Phase 1 – Reaching the Crowd



Phase 2 – Crowds gather

Crowds •  Share ideas •  Influence •  Create



Phase 3 – Crowds reaches out

Communities

Companies

Political Influence

Funders



Phase 4 – Commercial Product/Service Relationships

Communities

Companies

Political Influence

Funders

CROWD PARTNERSHIPS

Contests Collaborative Communities

Complementors Labour Crowds

Problem

Contests Problem

CROWD PARTNERSHIPS

We have seen this before….

Contest: Established by Britain’s Parliament (after esteemed scientist, including Isaac Newton, failed) To search for a way to determine longitude at sea. Prize £15,000 Crowd: 100 submissions Solution: highly accurate chronometer that provided an exact triangulation of location Winner: John Harrison, carpenter and clockmaker from English countryside

The Longitude Prize in 1714

Contests Problem

CROWD PARTNERSHIPS

•  Not clear about skills needed or best technical approach to use

•  Experimenting with multiple solutions

•  Problem is complex or novel •  Very good for design

problems •  Usually a very narrowly

defined problem •  To protect IP – may need to

break down into multiple problems

•  Management challenge – defining problem, abstracting it to protect company IP, translating it to be understandable

•  Promoted as a problem that will raise stature in community

•  Prizes for submissions and winner with clear scoring set up at outset

•  Contractual terms around IP •  Clear terms around technical

requirements, etc. •  Promotion of contest is critical

to raise profile and status in the community

Platforms

Case Studies

Contest: 8 weeks $40K contest prize – to identify most promising chemical compounds for future disease testing. Crowd:

238 team; 2,500 proposals – winner from a computer scientist using machine learning approach

Contest: 8 weeks $17K contest prize – to develop ads for Speed Stick’s “Handle It” campaign. Crowd: Selected submission used for $4M Super Bowl buy Ad ranked 12 out of 36 in Super Bowl ad review

Collaborative Communities

CROWD PARTNERSHIPS

Problem


Decision: Decided to drop internal development efforts on web server architecture. Partnered with Apache – community of webmasters and technologists. Aggregated inputs from global community to quickly develop full featured free product that outperformed other offerings.

IBM in 1998

Collaborative Communities

CROWD PARTNERSHIPS

•  More projects rather than problems where diversity of ideas and free form collaboration is useful

•  Tasks within projects identified, standard routines developed and need technology to help coordinate

•  Should need only some coordination – can rely on technology to assist in collaboration

•  On-line collaboration to build knowledge, share ideas freely

•  Stays away from core IP and not usually where profits come from

•  Collaborate open and freely •  Contribute to ideas, problems,

information (social, technical, thought leadership, etc.)

•  Communities can be customers, market segments, global communities, user groups

•  Structure and routines self-govern the crowd

Platforms

Case Studies

Problem

Complementors Poblem

CROWD PARTNERSHIPS

Problem


Platform allows the core business to collect licensing or transaction revenues from complementors who sell their products to the customers of the core product (e.g. iPhone users)

Complementors Poblem

CROWD PARTNERSHIPS

•  Want to add to your core product or technology BUT where having a volume of solutions matters most

•  Instead of one solution to a problem – provide many solutions to many problems (or offerings)

•  Different than collaborators because access to core product is required – through APIs

•  May be crowds that are connected to company’s platform

•  Must have flexible access to platform to design a wide range of solutions

•  Usual to have a developer agreement in place

•  API developers can develop platforms for these crowds to use

Platforms

Case Studies

Created a standard way of creating aftermarket software and hardware for vehicles. Connects the output from car’s computers and electronics to third-party applications and the web.

+ =

Problem

Crowd Labour Markets

CROWD PARTNERSHIPS

•  Match buyers and sellers for services

•  Focus is on securing partners for small bits

•  Well suited for repetitive tasks or those that need human intelligence

•  “spot” markets for resources – match skills and tasks on demand

•  Collect a lot of data on performance and feedback and use this for future matches

•  Platforms provide reputation and skill level metrics, bidding systems, monitoring technologies, performance recourse, escrow services for payment on delivery

•  Crowds from any discipline or community

•  Reach is global •  Interest is in alternative work

arrangements •  Major focus is on micro tasks •  Development communities

well suited for programming type tasks

Platforms

Case Studies

THE MICROWORK™ MODEL Samasource defines a unit of work as a small, computer-based task taken from a larger data project. The Microwork™ model fits within the overall field of Impact Sourcing, which aims to create jobs for individuals with limited opportunity in rural or economically depressed communities.

Problem

Harvard Medical School was facing this exact challenge for a complex DNA sequencing alignment challenge. Previously: •  Used MegaBLAST – processed 100,000 sequences to

high degree accuracy, but took 2,000 seconds to execute.

•  Full-time Harvard resource spent 1 year to develop a solution that reduced computational time to 400 seconds

PROBLEM

SOLUTION Engaged TopCoder for a contest: •  $6,000 in total prize money •  733 registrants and 122 members submitting working

algorithms, •  TopCoder provided a solution that performed hundreds

of times faster and at a higher degree of accuracy, reducing the time to execution to just over 16 seconds.

•  world’s largest platform for digital open innovation

•  Platform for a community of over 445,000 global

CROWD PARTNERSHIPS

CROWD PARTNERSHIPS

Source: Harvard Business Review, “Using the Crowd as an Innovation Partner” by Kevin J. Boudreau and Karim R. Lakhani, April 2013 Kevin J. Boudreau is an assistant professor of strategy and entrepreneurship at London Business School and a research fellow at Harvard’s Institute for Quantitative Social Science. Karim R. Lakhani is the Lumry Family Associate Professor of Business Administration at Harvard Business School and the principal investigator of the Harvard-NASA Tournament Lab at the Institute for Quantitative Social Science.

Internal team (employees)

•  Traditional incentives- salary, bonuses, equity

•  Clearly defined roles and responsibilities

•  Use systems, tools, platforms inside the company

•  Long term relationship with employer

•  Focus is on fit with culture; where interaction, socialized to each other and share a culture

•  Specific experiences in narrow fields that align to company area of focus

•  Intrinsic incentives – learn, explore, compete with contemporaries

•  Explore challenges outside of their day-to-day

•  Technology platforms for design, development, collaboration becoming powerful, easy to use, cost effective

•  On-line crowdsourcing platforms – help to manage process

•  Available on demand •  Adds diversity to problem solving

outside of narrow focus areas

External team (the Crowd)

CROWD PARTNERSHIPS

Workforce Models

What is core to your business – what is the critical offering

•  IP •  Know how/unique skill •  Services

•  Information Based on this core – who do you need on your core team? •  Consider:

•  Is your technical IP well protected? Can you segmenting pieces of development to protecting the IP

•  Are you relying on hiring for every requirement you have •  Do you have the core skill set on the team to manage these

contests and projects •  Do you have technology leaders who can integrate solutions

from multiple sources

•  Hire for fit, competencies needed at your core, subject matter knowledge that must integrate and be socialized with others on the team

Build around the Core plus “Flex Resourcing Partnerships”





Technical IP

(patented)

market

Run the business

Define ‘What’ technology

Design Build & Test

Reach & Sell

Key Functions

Deliver & Support

Generally External Facing & Sr.

Leadership

“Define & Plan”

CEO

CFO

Prod. Mgmt.

Prod.

Market.

Bus. Dev.

CTO

Head of R&D

Head of R&D

Design Leaders

Head of Ops.

Head of Manufact.

Marketing & Comms

Sales

Bus. Dev.

Prod. Market.

Head of Customer Support

Sales Eng.

Generally Internal Facing

“Do”

Controller Accountant Office Mgr.

HR Purchasing

IT

Market Research

Marketing collateral

Technical planners

Research

Engineers Scientists

Techs. QA PM

PM Manuf Eng.

Supply chain Lab Tech Test Tech Research assistant assembly

Marcomms

Mark. Supp.

Sales Eng. Media

Relations

Sales Supp.

Logistics Install & Test

Product Support Trainer

Customer Support

Values & Character

Critical Competencies

Knowledge (technical, market,

integration)

Core IP (technical, market,

knowhow)

Critically assess what is core….

Workforce Planning Era •  Steady core team •  Flexible resources used as needed

for: •  Peak work •  Special skills/expertise •  Bench strength

Time

Hea

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•  Variable growth – a more ‘flex’ workforce •  Employers will stay small as much as possible •  Key technical skills change quickly; year over year, or even month over month •  Pricing pressures from globalized work force – must become very skilled at controlling costs

•  Means smaller teams •  Need alternatives to hiring permanently every skill set you need •  Cannot spend $$ on building multiple locations

•  Need to leverage talent where it exists – a more virtualized work force •  Core team needs are changing:

•  Strong project managers who can track and plan needs •  Strong virtual team managers – with skill set to lead, manage and drive diverse teams •  Technical chameleons who can adapt quickly to new technologies •  Strategic resourcing specialist – to find core talent and flex talent

•  Workforce planning will become establishing a strong core and develop resourceful and engaging flexible workforce partnerships ‘

Plan for the flexible resourcing model….

Build, deliver & support Corporate Leadership and Operations


Marketing & Sales Product definition roles

Finding talent: Strategic Sourcing vs. Recruitment

PASSIVE CANDIDATE NEAR-ACTIVE CANDIDATE

ACTIVE CANDIDATE

Career Satisfaction Factors

Like People

Happy in Job

Compensation Satisfactory

Career is growing

Learning/having new experiences

Exciting Work

Fulfilling other needs (altruistic)

Conventional sourcing strategies really only target active or near-active candidates.

BUT this is a very competitive market!

PASSIVE CANDIDATE NEAR-ACTIVE

CANDIDATE

ACTIVE CANDIDATE

Perfect Candidate

This approach ignores a very large addressable market This approach is not

targeted to the perfect candidate for the company.

Most sourcing draws in those actively or thinking about a career change.


ACTIVE CANDIDATE

Near Active Active

Near Active

Near Active

Active

Active Near

Active Near

Active Near

Active

Near Active

Active Active

Active

Active

Active

Active

Active

Active

Active

Active Active

Active

Active Active

Strategic Sourcing vs. Recruitment


ACTIVE CANDIDATE

CRM – Candidate Relationship Management Program

Near Active

Active

Active

Effective Recruitment Campaigns

Strategic Sourcing vs. Recruitment

Understand your perfect candidate! Same principles as understanding your customer

SEGMENTATION

•  Research the profile of the perfect candidate for each role •  What are the attributes, behaviours, career patterns and indicators of high

potential •  What are the relevant career satisfaction factors

Ø  This will inform key messages to these target candidates Ø  AND channels to reach them

HOW - Strategic Sourcing vs. Recruitment


MESSAGING

•  Based on what you know and what you discover – develop the messages and brand that speaks to these passive candidates

•  GOAL is to implant the idea of your company as a career choice to all passive and active ideal candidates

•  This messaging will be heard through branding, recruitment activities, marketing programs, speaking notes, and on-line activities and promotions



CHANNELS

•  Based on what you know and what you discover – develop strategic sourcing programs that address a full spectrum of channels to REACH the active, near-active and passive candidates

•  Develop plans and programs with a view to: Ø  find talent Ø  nurture relationships Ø  convert passive candidates to active candidates Ø  close on perfect candidates


Understanding who you are targeting; what they care about and how to reach them will result in:

1.  Clarity on what a successful candidate looks like for your organization

2.  Creating a compelling job posting that will speak to the best candidates for your company – giving higher likelihood of good matches

3.  Allows you to roll out an effective recruitment campaign that will reach the target candidates that are best for your organization


Tight Execution is Key

Focus in on a tight plan in the context of a bigger picture

Effective Recruitment

•  Know what you are looking for and when •  Think of a highly targeted approach •  Process from start to ‘in-seat’ will generally take no less than six weeks

WITH all stars aligning – plan for 2 months or more if highly specialize role •  Think before you act – a little preparation will make the effort much more

productive

Organizational Milestones

CEO

R&D Lead

CFO (P/T?)

PLM

Sr. R&D

Marcomms

Int./Jr. R&D

BD/Sales

QA

SE’s Sales

(Hunter) Sales

(Farmer)

CTO

Sales Support

Customer Support

HR (P/T?)

VP Sales

VP Marketing

Admin. Support

CFO (F/T)

Accountant COO? HR

(F/T?)

Sample Sourcing Strategy & Recruitment Plan

Social networking tools

Pro’s Con’s Tips Huge reach in all geographies Volume is overwhelming Filter your search in terms of

geography and use additional filters

Can reach specific individuals who seem to be a good fit

Will be contacted by many who think they are a good fit

Use In-mails to send customize messages to candidates of interest AND follow up

Can post jobs Any posting will get a huge response from candidates around the world

Compelling description that speaks to the candidate you want to reach will allow for easier filtering

Can target communities by connecting with user groups and using other social media

Some user communities shun recruitment efforts

Preferable to have outreach from someone in the company Some user groups have job boards

Can see recommendations on individuals

Some have become expert at getting referrals from everyone – more noise

Filter the recommendations – which ones do you trust Still do your own reference checks

Lots of statistics to look at about companies and individuals

You have to read into these to understand what is self-promotion vs. legitimate signs of excellence

Read with a note of skepticism – always do your own due diligence


DIRECT SOURCING

Job Boards User Groups Schools Relevant Associa@ons

Networking Events

Awards of Significance

Post ac@ve (hiring within next 2-‐3 months) opportuni@es on target job boards

Post ac@ve opportuni@es in UG job sites that exist; broadcast opportunity in UG. Note do not overuse this -‐ only when opportuni@es are real.

Post ac@ve opportuni@es in university job boards -‐ target schools with relevant programs. Connect with someone from shcools if possible to properly promot opportunity

Post ac@ve opportuni@es in relevant associa@on sites; make contact with associa@on to see if there is a way to tap into their community.

Only if networking event has known recruitment focus -‐ consider par@cipa@ng with ac@ve opportuni@es.

Explore awards related to employers of choice. Coordinate any promo@on of these with direct recrui@ng opportuni@es


INDIRECT SOURCING Job Boards User Groups Schools Relevant

Associa@ons Networking

Events Awards of Significance

Examine boards for opportunity to create banner ads and other promo@onal opportuni@es

Prolucid team join relevant groups; par@cipate in group discussions to build presence; when opportuni@es become ac@ve can send message out to group.

Networking with schools, alumni, etc. to raise awareness of Prolucid.

Prolucid team to join relevant associa@ons that have high value in terms of reaching target audience. Will want 'speaking notes around who we are always looking for'

Prolucid team to aUend 'high value' networking events that promote Prolucid; speaking opportuni@es to be explored. Want speaking notes on resources we are always looking for

Explore awards that posi@on Prolucid in a highly valued technical, sector, work environment.

Thank You! Questions?