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Gig Economy

May 27, 2016 by in  Blog

You could drive yourself steadily insane compiling a list of all the trends that were supposed to fundamentally reshape business. Once upon a time we were all “flexi” workers, then “mobile learners”. Both terms seem antiquated now, the corporate equivalent of a Segway – perfectly sensible in principle but somehow faintly ridiculous in reality.

What makes the “gig economy” – the legion of individuals taking on piecemeal work, enabled by online talent platforms – feel different is that it’s being driven not by hip early adopters in co-working spaces (though there are plenty of them involved too) but by genuine need, both in the “real” economy and, crucially, in boardrooms.

If you were staffing a major new project from scratch today, it would seem an act of faint lunacy to bring in a raft of full-time employees with cumbersome overheads (and personal taxes) when you could go online and find experienced, verifiable individuals you could pay by the hour and dispose of when required. Similarly, if you were a coder, IT contractor or other technical specialist, why would you harness yourself to one organisation when you could enjoy both variety and a more lucrative income hopping from gig to gig (along with the attendant tax advantages of being self-employed)?

So many businesses are waking up to this recalibration that 450,000 people with full-time jobs now have second jobs, many of them via TaskRabbit, Elance or their multitude of competitors. PwC has tried to cut out the middleman by setting up its own talent “market” of registered suppliers its offices can bid on. There are individuals in greater London making a handsome living assembling flat pack furniture on a piecemeal basis for an hourly rate – an occupation that would have been almost logistically impossible just a couple of years ago.

You can understand the appeal of living by the gig, beyond the financial benefits. The conventional career has been an awkward fit for many people over the years, and few jobs are capable of maximising all our skills and intelligences. Besides, most work is boring, which is why those lucky enough ever to have had a job for life employed the conversational repertoire of the prison system (“putting in hard graft”, “serving your time”) to describe it.

Gigs, by contrast, are exciting and ever-changing, even though they ask some deep questions of the psychological contract (why would I exercise discretionary effort for a business that only employs me for a matter of days? Can I trust someone who could work for my biggest rival tomorrow?). But they aren’t an untrammelled good, either. For every actuarial scientist earning a small fortune for a short-term job, there’s a hotel chambermaid who is now being paid by the room rather than the day. The huge rise in self-employment in the UK has as much to do with businesses shifting such workers – we should include the small army of couriers and delivery drivers in this calculation – off their books as it does people discovering new freedoms. Palpably, none of them are enjoying the benefits of the gig economy, not least because they cannot practically control where and how they work. They are left, instead, to feed on scraps.

Uber, the erroneously attributed poster child of the gig economy, faces a legal challenge over whether its drivers are technically employees. It maintains they are self-employed. This is a vital point for the courts to consider – cycle couriers and plumbers are engaged in similar cases – but in Uber’s case we should also note that it controls the supply of drivers into the market, and their pricing. This is assuredly not the “freedom” gig economy enthusiasts speak of.

Governments will have to decide the legal and ethical boundaries of such behaviours, not least because if gigs take off, their tax revenues will rapidly vanish. Already, there is serious talk of the need for a third kind of classification, between “employee” and “self-employed” which recognises the shared responsibilities (both financial and relating to holidays, sick pay and other benefits) between giggers and those they work for.

Pioneers like Wingham Rowan, who runs the Beyond Jobs consultancy, are trying to imagine a market that will ensure the gig economy brings mutual benefits and conveniences without being open to abuse. Businesses who want to enjoy the flexibility such arrangements provide should not absent themselves from such discussions – but neither should they fear this will turn out to be just another fad.

By: Robert Jeffery, Editor of People Management magazine

http://www.cipd.co.uk/pm

 

Company culture: an open and shut model

May 20, 2016

There are nine and sixty ways of constructing tribal lays,
And every single one of them is right!

Rudyard Kipling, In the Neolithic Age

How many ways can you categorise the ways that different startups organise themselves, the different flavours and colours of organisational culture adopted by companies through their life (and death). Far more than nine and sixty, I assure you. And, yes, each of them is right. Models of the world are usually helpful in making sense of the continuous chaos of reality.

I’d like to propose a very simple and useful model for startup (and, more widely, company) cultures, that I feel is relevant at this point in history: open and closed.

hierarchical-pyramid

Closed cultures

There are a number of ways to run a closed culture, but the presence of any of the following features is usually a clear sign of an at least partially closed culture:

– Secrecy by default: Business information is closed by default, on a need-to-know basis. Typically, only the senior management team has access to all the information (e.g. salaries and bonuses, detailed financials of the organisation, etc). These multi-layered secrets often form part and parcel of the power structure: the higher you are, the more information you have access to.

– Top-down, hierarchical management: This can be implemented with varying degrees of flexibility, but the common element is the idea that you have a boss and you should do what they tell you. All closed cultures enable some elements of push-back from those savvy enough to know how to make their points from below, but the general mode of functioning is from the top to the bottom.

– The Pyramid/Career Ladder: Closed organisations are without fail mapped out as pyramid-shaped: there is one CEO at the top, with a senior executive team below, and progressively wider layers as you go down. This Pyramid also provides the Career Ladder – the ever-receding MacGuffin that motivates people to work hard so they can one day get on top of the Pyramid and finally achieve true Success.

– Focus on profit: The more advanced closed organisations tend to focus on profit above all. This is measured as a number and is the primary driver of decision-making. If an action results in more profit, it’s worth doing. If the company makes more profit, it is more successful. Profit is the essential driver of all decisions. “How will it affect the bottom line?” is the main (or perhaps even only) question being asked.

– Motivational measurements and individual incentives: Closed organisations, as they mature, learn to apply measurements as a method of ensuring performance. They will measure everything that can be measure and make up targets and projections (with varying degrees of involvement from those being measured), then hold people accountable to those estimates. Those who meet their targets are rewarded, and those who fail are punished.

– Fixed roles and masks: In closed cultures, you are hired for a specific role. You can progress towards more managerial responsibilities through promotion, but typically, doing things outside of your role is discouraged (if only because it will step on the toes of the person who currently owns that role). In closed organisations you are your role. It’s no surprise, then, that most people put on a mask to go to work: while they are at the office, they are no longer a full person with a variety of wants and activities and aspirations, but a “Web Developer” or a “Marketing Manager”. Professional behaviour is all that’s accepted, and it’s all that’s given.

– Distrust and control: A fundamental assumption of closed cultures is that people are lazy and cannot be trusted, so they need to be controlled, otherwise they will not do any work. This gives even more justification to adding more measurements and narrowly defining roles and performance criteria. When they don’t treat them like mindless cogs in a machine, closed cultures tend to treat employees like irresponsible children.

There are countless examples of closed cultures: most of the companies and organisations in the world are run on the closed model. In fact, in many countries it is illegal to run a public company in an open way .  You’ve most likely worked for a closed company at some point in your life. In fact, chances are you’re working in one right now.

Whilst closed cultures (which form the majority of business cultures today) are clearly capable of delivering great results, they have a number of deadly flaws, which I’ll cover in more detail in a later article. For now, let’s look at open cultures.

Open cultures

If there are many ways to run a closed culture, there are even more ways to run an open one. Each open company tends to have its own way of expressing its culture. However, these are some typical commonalities by which to recognise an open culture:

– Transparency by default: In open cultures, business information is publicly available to all employees. This includes salaries, but also bad news, strategic plans, problems, decisions, ideas, etc. People are trusted to be able to handle that information.

– Flat hierarchy and/or self-management: If everyone knows everything and you’ve hired smart people in the right kinds of jobs, it is very difficult to maintain an arbitrary hierarchy, since everyone can contribute to any decision. When you trust people, it is also unnecessary to set up managers whose job it is to check after them.

– Personal development through work: When there is no career ladder, how do people achieve career progression? The obvious solution is that they take on more responsibilities without having to go “up” an arbitrary ladder. As a natural consequence of that, it is possible for people to fully express themselves in their work, by getting involved in their full range of interests, so they can achieve more personal development than they would in a narrow role with a career ladder.

– Multiple stakeholders, values, and purpose: In open organisations, the idea of valuing profit above all others becomes obviously absurd. It’s not only shareholders, but also employees, suppliers, customers, society, and the environment, which matter. The company does not exist in a vacuum. Values become a way to express what the company cares about, rather just a motivational slogan. Along with the higher purpose of the company, they become the way that decisions get made in open cultures.

– Team or company incentives: There is a progression from the closed culture approach of individual incentives, via team incentives, towards the eventual ideal, which is a system where base pay is determined by a combination of what the person is contributing, what the person needs, and what the company can afford, along with company-wide bonuses. Individual incentives are shunned.

– Self-determined pay: One of the surefire signs of an open culture is when people determine their own pay. In most companies, this is unthinkable. In open cultures, it becomes a natural consequence of all the other stuff. After all, if you trust people to make all sorts of important decisions about the company, why not trust them to make this decision too?

– Separation of role and person: The idea that a person and their role are intrinsically bound becomes visibly stupid as the culture opens up. Eventually, it is clear that people are not their roles, but are capable of engaging in several roles simultaneously, contributing more fully to the organisation’s needs. This further enables people to accomplish themselves and to be fully themselves at work instead of wearing masks. One of the ways this is accomplished is through Open Allocation.

– Trust: Perhaps most important is the fact that open cultures treat employees like adults, trusting them to do the right thing even in complex or ambiguous situations. There are of course processes to help people make better decisions, but the key point is that all these processes start from a perspective of trust and responsibility.

The benefits of running companies this way ought to be obvious, but in case they need to be spelled out:

– People in open cultures are more engaged, happier, more creative, they contribute more, etc. This makes them much more fun to work in, both as a founder and as an employee, but also much more productive – people work much more effectively when they care.

– Having a better environment makes it easier to hire great people.

– Open cultures are way more adaptable to change. Change management is an oxymoron in an open culture: change happens constantly and continually, not through expensive, long-winded, and often failure-prone change processes.

– Because they motivate people so much better, open cultures are, ironically, also better at achieving sustainable, long-term financial results.

There are some examples of open cultures out there, too, to varying degrees.GrantTreeBuffer, Valve and Github, in the startup space, are known examples of open cultures. Others include Semco, Burtzorg, Happy Startup, MorningStar, and many others in all sorts of different contexts and sizes. All companies could adopt an open culture, but most don’t. Why is that?

Reinventing Organisations, by Frederic Laloux, studies a dozen or so open cultures and comes to the conclusion that two things are absolutely prerequisite for an open culture to exist for any length of time: both the CEO/Leader and the owners must be fully supportive of this (currently) unconventional way of operating. Otherwise, eventually the company hits a hard time, and either the CEO or the owners pressure it into returning to a more traditional (i.e. closed) mode of functioning. So the obvious reason why more companies are not currently open is because most CEOs are not prepared to let go of their control mindset, and when they are, the owners (whether private owners or VCs with board seats and a traditional, closed mindset, or simply public markets) frequently won’t let them.

If you’re a founder of a startup, this poses an interesting challenge: are you up to the challenge of creating an open culture in your business? Even when that involves giving up the trappings of power? Even when that involves passing on an investment round from an investor whom you know will force the company to change its ways when it hits a rough patch?

If so, welcome to the club. Follow this blog, and I’ll do my best to share what I’ve learned in transforming GrantTree to be an open company. This is still a new field so we can all learn from each other.

By: Daniel Tenner from GrantTree

Company culture: an open and shut model

Spark the Change : inspirer les entreprises françaises grâce à des retours sur expérience concrets

May 14, 2018

Selon un sondage récent de l’Ifop, 91 % des jeunes cadres français pensent que leur entreprise est en train ou va se transformer. Mais pour 47 % des entreprises, la transformation reste aujourd’hui synonyme de « digitalisation ». Elle ne concerne l’évolution du style de management que dans 21 % d’entre elles et la relation client dans seulement 20 %. Pourtant, ces cadres pensent que la priorité devrait être mise sur l’évolution des modes de rémunération des salariés (37 %), l’évolution des styles de management (33 %) et la formation et le développement de compétences (33 %).

Les jeunes cadres français ont bien compris que loin de se cantonner à la digitalisation des processus, la transformation concerne de nombreux aspects de la vie de l’entreprise, et surtout sa culture et son organisation. « Une entreprise ne peut réussir sa transformation digitale si elle n’a initié une profonde transformation en interne » explique Jean-Christophe Conticello, fondateur et CEO de Wemanity.

« L’apparition d’Internet et des technologies associées a bouleversé en profondeur le monde de l’entreprise. Les modes de consommation ont évolué, le temps s’est accéléré, ce qui a entrainé également une profonde évolution des modes de travail. La nécessité de changer est devenue vitale : on ne compte plus les entreprises qui, en hésitant à changer de recette, n’ont pas réussi à se renouveler et ont disparu : Kodak, Virgin Megastore, Nokia, BlackBerry, Yahoo!, etc. Non seulement, la nouvelle génération a compris cette nécessité de changement, mais elle le suscite avec les nouveaux modes de travail qu’elle privilégie. »

« Spark the Change » : décrypter et inspirer les bonnes pratiques 

Pour illustrer et expliquer cette évolution, l’événement « Spark the Change » a été créé à Londres en 2014 par Helen Walton et ses associés de Gamevy, avec le soutien de Wemanity, puis décliné en Australie, aux Pays-Bas, en Inde et au Canada. La première édition française sera organisée à Paris, le 26 juin prochain au Théâtre de la Madeleine.

Centré sur le futur du travail et les moyens de repenser l’entreprise de demain, « Spark the Change » propose aux entreprises françaises un programme de conférences de qualité, basé sur des retours d’expérience.

18 experts se succèderont sur scène pour décrypter les tenants et aboutissants de la transformation des entreprises. Parmi eux : Ludovic Huraux, CEO et fondateur de Shapr ; Dirk Ahlborn, CEO Hyperloop Technology ; Anthony Gooch Galvez, Directeur de la communication et des Affaires publiques à l’OCDE ; Anamita Guha, Product Manager, IBM Watson ; Marianne Syed, Executive Director chez Positive Planet UK. Et bien sûr, Arie Van Bennekum, seul rédacteur européen du Manifeste Agile, aujourd’hui Agile Thought Leader chez Wemanity et Jurgen Appelo, CEO et fondateur d’Agility Scales et expert du management 3.0.

3 thèmes principaux

Animées par des professionnels de toutes nationalités qui souhaitent faire évoluer le monde du travail, les conférences « Spark the Change » sont réparties dans trois sessions principales :

  1. Créer l’entreprise de demain : les différentes étapes pour insuffler un véritable changement dans l’entreprise, sur la base d’un apprentissage continuel, d’une maîtrise totale des technologies et d’une organisation plus agile et réactive.
    Jurgen Appelo, CEO et fondateur d’Agility Scales, expliquera notamment dans quelle mesure il est essentiel pour une entreprise d’aider ses collaborateurs à maîtriser continuellement le changement, par exemple via la ludification et d’autres nouvelles pratiques.
  2. Libérer les talents : développer le potentiel de chaque collaborateur, instaurer le bien-être au travail, booster la collaboration et créer un environnement de travail basé sur la confiance.
    Anthony Gooch Galvez, Directeur de la communication et des Affaires publiques à l’OCDE, détaillera ainsi « l’Indicateur du vivre mieux » de l’OCDE qui permet de comprendre ce qui contribue au bien-être des individus et des pays, et d’identifier comment susciter plus de progrès pour tous.
  3. « Sparking disruption » : privilégier l’innovation, voire la disruption ; remettre en cause le statu quo ; et valoriser le progrès social, technologique et culturel.

Dans cette session, Dirk Ahlborn, CEO Hyperloop Technology, dévoilera la genèse de la création d’Hyperloop qui, au-delà des records de vitesse et des nombreuses innovations qui le caractérisent, propose surtout de révolutionner l’expérience des usagers du train.

« Spark the Change a été créé pour inspirer les entreprises, à l’heure où elles sont confrontées à plusieurs évolutions stratégiques : la transformation numérique, l’évolution démographique, la co-innovation voire la “coopétition” sur des marchés mondialisés » explique Sabri Ben Radhia, Responsable de l’événement chez Wemanity. « Si Wemanity était présent lors des premières éditions internationales de Spark the Change en tant que sponsor, nous avons repris la marque et sommes devenus son organisateur principal. Réservé à la fois aux entreprises et aux institutions publiques, l’événement a pour objectif de couvrir l’ensemble des aspects relatifs à la transformation des entreprises, sur la base de très nombreux retours d’expérience. Il vise également à aider les entreprises à développer les compétences nécessaires pour mener à bien leur transformation ».

Le programme de la journée a été construit pour privilégier l’échange d’expériences et le networking. 750 personnes issues de l’ensemble de l’écosystème de l’innovation européen sont attendues le 26 juin prochain au Théâtre de la Madeleine.
Aurons-nous le plaisir de vous compter parmi eux ?

 

Plus d’information sur l’événement : http://sparkthechange.com.au/2019/about-us/

Les experts qui interviendront dans les conférences : http://sparkthechange.com.au/2019/speakers/

Inscription : http://sparkthechange.com.au/2019/tickets/

Rejecting roles

Mar 29, 2016

Rejecting roles: That’s marketing’s job. You need to talk to IT.

Having roles is considered essential by most organisations. We’ve read dozens of business blogs, HR advice articles and even management training courses that insist clearly defined roles lead to better results, greater productivity and higher motivation. Without clear definition of roles, they warn that tasks get missed, no-one takes responsibility, the office is chaotic and individual motivation drops.

We disagree.

The writers of this advice have grasped the outcomes they want – people taking pride in their work, everyone focusing on delivering value, individuals coordinating and collaborating – but they’ve applied the wrong solution.

They’ve confused roles with responsibilities.

That may not sound like a big deal, but we think it is. Rigid role definition has some major downsides. We believe it hurts companies and individuals, costing them in creativity and happiness.

Most organisations intend their role definitions to be a way of signalling particular specialisations, expertise and responsibilities… but instead, the definitions swiftly harden into barriers, marking out territory which is defended against ‘interference’ from others. Have you ever been told to back off by the marketing manager for commenting on the new advert? Been refused access to the code base by the developers, ‘in case you break something’? Been told to leave presentations to ‘the sales guys’ or forecasts ‘the finance guys’? At the extreme, you may have your opinion rejected with a straight-forward ‘well it’s not your job to worry about x, it’s mine!’.

Individuals may also use their role definition as a way of avoiding unpleasant or boring tasks. This ‘that’s not in my job description’ approach ends up making the company less efficient as well as eroding team motivation. I remember organising a last-minute marketing stunt when I worked at Unilever. I was booking a double-decker bus to turn up and I wanted to check it would actually fit into the office forecourt. The marketing assistant nipped down to Reception to check. An hour later, she returned. The security guard had refused to measure the gateway and if it was beneath the dignity of a security guard, then she reckoned it was beneath the dignity of a marketing assistant as well. So I borrowed the security man’s tape-measure and checked the gateway (you could – quite literally – have fitted a bus through there). Anything wrong with doing my own measuring? Absolutely not. Anything wrong with wasting an hour of time arguing about whose job it was? Plenty.

Roles are comfortable – but bad for us

It’s very human to defend our own work and our own opinion. When we can dress this up with the authority of experience, expertise and organisational separation – all the better. Except it isn’t. Rigid role definition acts as a barrier and can stifle innovation. It can also make things slower and less efficient.

If a customer rings up with a problem, they want a solution, not to be told that only part of their problem can be dealt with by this department, and they must be passed on to billing or whoever to deal with the rest of it.

It’s not great for individuals either. Sticking to just one thing may mean our knowledge gets deeper, but also narrower.  We can get bored or worse, so convinced of our own expertise that we can’t take on other points of view.

Being Radical: Sticking to the start up way

In many start ups, a lack of defined roles is the default position. There is not enough money to hire specialists – instead developers must learn to present to investors, marketing managers must be able to create and manage their own customer data, and everyone must have a grip on the financial assumptions as well as a grasp of the their product (this often means some grasp of the technology).

When entrepreneurs look back on the early stage of their companies, they often comment on wistfully on the diversity of work and of how close to the customer it meant they were.

Jeff Bezos, CEO of Amazon, recalled being the ‘mailroom grunt’ in the company’s early days, driving books to shipping and courier companies in his 1987 Blazer. But this doesn’t scale, right? Jeff Bezos is not still doing deliveries. Actually, he is. He spends a week every year in the warehouse. It’s not a PR gimmick, because he refuses to set up interviews when doing it. It’s an opportunity to stay connected to his responsibility – leading Amazon – and not the role of CEO. That includes really understanding conditions for employees – something for which Amazon has received a lot of criticism – and staying close to core services like order fulfilment.

Another trick used at Amazon is to have individual employees who have no role at all. Bezos has ‘shadows’, people who simply follow him around. It means there’s always someone free to chase a wild idea or set up an experiment – and it recognises that a responsibility like ‘envision Amazon’s future’ requires several people, not just a single role.

So what should we do?

1. Responsibilities not roles

Some radical companies go for a very broad responsibility ‘provide value to the company’ and say that how this is fulfilled is up to the individual. Others go for more precise responsibilities: ‘help the customer’ or ‘make sure we comply with financial regulations’.

The point is that how you fulfil these needs can require doing tasks which, in other companies, would be seen as belonging to differing roles.

2. Trust people

A lack of roles makes people more responsible, not less. Tasks rarely get missed because everyone knows they have total responsibility for the work – no tester will come pick up the programmer’s bugs; no finance controller will correct over-optimistic projections.

3. Trust people some more

A lack of roles doesn’t mean that everyone will try to do everything. People naturally gravitate towards what they’re interested in and what they’re good at. If someone is convinced she’s a brilliant illustrator and everyone else insists the stick men cartoons are rubbish, she will soon stop.

4. Value dissent not consensus

No roles doesn’t mean you have to design by committee. Heated arguments are common, and that’s fine.  Even if people don’t agree at the end of the debate, the important thing tends to be to air the problem. Opinions can be rejected; a decision can still be made, risks can still be taken…

By: Helen Walton from Gamevy

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