The Future of Pharma: Calls Moving to Consults (video)

Calls Moving to Consults is a thought leadership video in the “10 Inevitable Changes in Pharma 2015” series that was hosted by the stellar Richie Etwaru, Chief Digital Officer with Cegedim.

This video addresses the question:  How can the pharmaceutical industry reskill representatives to be knowledgeable consultants to physicians?

Today, sales expertise is not enough. The pharmaceutical representative needs to be a broker of information. Physicians now have very limited time – and dictate when they can meet with representatives, from whom they need comprehensive information that they can pass along to their increasingly educated patients.

In this video, Jo Ann Saitta, Chief Digital Officer of the CDM Group, Stephan Klaschka, Innovation and Healthcare Consultant, and moderator, Richie Etwaru, Chief Digital Officer at Cegedim, examine this shift and the challenges pharmaceutical companies may face in properly retraining their people. These challenges include: adopting a culture of learning agility; integrating silos of information; having the ability to serve up dynamic content; and training representatives to utilize technologies that will maximize their brief but demanding visits with physicians.

Use this link to watch all 10 videos in the series on YouTube directly – enjoy!

  • 10 Inevitable Changes in Pharma 2015 – Communication moving to Collaboration
    • Angela Miccoli
    • Wendy Mayer
  • 10 Inevitable Changes in Pharma 2015 – Content moving to Context
    • James Corbett
    • Craig DeLarge
  • 10 Inevitable Changes in Pharma 2015 – Care moving to Cure
    • Michael DePalma
    • John Nosta
  • 10 Inevitable Changes in Pharma 2015 – Compliance moving to Culture
    • Bill Buzzeo
    • Gus Papandrikos
  • 10 Inevitable Changes in Pharma 2015 – Supply Chains moving to Supply Constellations
    • Ray Wang
    • Aron Dutta
  • 10 Inevitable Changes in Pharma 2015 – Customization moving to Configuration
    • Tracy Maines
    • Krishna Cheriath
  • 10 Inevitable Changes in Pharma 2015 – Customer moving to Consumer
    • Paul Kandle
    • Mark Stevens
  • 10 Inevitable Changes in Pharma 2015 – Calls moving to Consults
    • Jo Ann Saitta
    • Stephan Klaschka
  • 10 Inevitable Changes in Pharma 2015 – Cloud moving to Crowd
    • Les Jordan
    • Krishnan Sridharan
  • 10 Inevitable Changes in Pharma 2015- Charity moving to Cause
    • Janet Carlson
    • Beth Bengtson

Read Intrapreneuring Case Study “Leading Innovation” by Ivey Business School!

The prestigious Ivey Business School of the Western University in Ontario, Canada, published an insightful new teaching case study on intrapreneuring and corporate innovation titled “Boehringer Ingelheim: Leading Innovation” in which the case writers, Professor J. Robert Mitchell, Ph.D., and Ramasastry Chandrasekhar, follow the footsteps of the newly appointed innovation director.

Meant to raise questions and serving as a learning opportunity for graduate students in academic program around the globe, this case study lifts the corporate curtain a bit to show how innovation through intrapreneuring really happens and decision points along the way.

Outline (by Ivey Publishing)

The newly appointed director of Innovation Management & Strategy at Boehringer Ingelheim, a German-based multinational pharmaceutical company, is finding his way forward in his firm’s new, first-of-its-kind role, which is central to the company’s growth rejuvenation strategy. His job has a threefold mandate: to build internal networks, to establish internal structures and to leverage internal ideas. His biggest challenge, however, may be transforming the organization’s DNA. The blockbuster business model that has characterized the company for decades is no longer appropriate. Instead, the firm needs to develop healthcare products available to end users over the counter. This shift in strategy requires innovative changes in distribution, delivery and customer focus. To accomplish this goal, he needs to institutionalize innovation so that it becomes sustainable. But in doing so, he must also identify the metrics for assessing progress. The case provides an opportunity for students to step into the shoes of an innovation leader, to develop an innovation roadmap for the organization in the face of uncertainty and to understand how to engage in innovation leadership at various levels of a global enterprise.

Learning Objective

This case has two key objectives. First, this case provides students an opportunity to grapple with the difficult decisions associated with innovation in an uncertain environment. Second, this case highlights that anyone has the ability to cultivate an entrepreneurial mindset and to lead innovation. The case divides the attributes of an innovation leader into five components: observing, questioning, experimenting, networking and associating. It shows the real-life experiences of a manager doing seemingly routine activities, who evolved into a leader who transformed the DNA of a global enterprise. The case also provides a template of the tasks, responsibilities and value-added changes as an individual moves progressively within an enterprise from an operations manager to a senior manager to an innovation leader. This case can be used either toward the beginning or toward the end of any course that addresses innovation and creative thinking in a large organization. At the beginning of a course, it illustrates the challenges of acting in the face of uncertainty in a large organization. At the end of a course, the case provides an opportunity for students to apply what they have learned about innovation, entrepreneurial thinking and innovation leadership.

Innovation drives Diversity&Inclusion 2.0

The traditional world of corporate Diversity and Inclusion (D&I) is being disrupted by a new take on D&I and combining it with innovation and talent management.  What some perceive as a threat to the D&I establishment may just be the next step of evolution that could invigorate and drive D&I to new heights.

Though not an entirely novel approach (see also How to create innovation culture with diversity!) the new thinking gains traction.  As this could play out in different ways and only time will tell what worked, here are my thought on where we are heading.

Struggles of the  Front Runner

Many traditional D&I programs, let’s call them “version 1.0” of D&I, struggle transitioning beyond a collection of affinity groups, tallying corporate demographics and competing for D&I awards to post on their webpage.  In these traditional D&I programs ‘diversity’ is often understood to be reflected by more or less visible differences among individuals at the workplace while ‘inclusion’ translates to supporting defined sub-populations of employees through, for example, establishing affinity groups.

The United States is seen as the front runner of the D&I movement.  D&I has been around in the U.S. corporate world for decades.  For historic and demographic reasons it hones in on removing obstacles for minorities at the workplace supported also by strict legislature and execution; exercising Affirmative Action, for example.

This legacy in the U.S. lends itself to an inside focus on organizations that became the backbone of the traditional D&I programs.  It comes down to the question ‘what can or should the organization do for specific groups of people’ defined by ethnicity, gender, age, sexual preference, faith, disability, war history and so on.  Apparently, it still is work in progress as, for example, Silicon Valley just recently got on the public radar, which stirred up the debate afresh along the lines of D&I 1.0; see Google releases breakdown on the diversity of its workforce.

Stuck in the ‘Diversity Trap’?

The inside focus and minority messaging of D&I 1.0, however, can be limiting when D&I erodes to a process of ‘doing things right’ by pushing for quotas, ‘checking boxes’ and inflating variations of terminology perceived as ‘politically correct’.  This can in fact be different from ‘doing the right thing’ for the company overall, its employees as well as the affinity groups and their constituency.   It should not surprise that Affinity groups can be (and often get) stigmatized and perceived as self-serving and self-centered social networks without significant and measurable business impact.

Under this paradigm these D&I 1.0 programs struggle to get serious attention, support and funding from executives beyond operating on a minor level to ‘keep the lights on’ more for public image purposes than business drive.  The fundamentals seem to get forgotten: in the end, a business exists to generate a profit, so less profitable activities are likely to be discontinued or divested.  It’s a symbiosis and to say it bluntly: without healthy business there is no D&I program and no affinity groups.  When this symbiosis get lopsided, D&I 1.0 gets stuck in the trap.

D&I 2.0

“Diversity” is catching on beyond the United States in Europe, for example, where many countries do not have share a highly heterogeneous demographic composition, for example.  Here, companies can start with a fresh approach jumping straight to D&I 2.0 – and many do!  It reminds me of developing countries installing their first phone system by skipping the landlines and starting right away with mobile phones.

The 2.0 internal focus corresponds to hiring workers that truly think differently and have different backgrounds and life experiences some of which overlaps with D&I 1.0 affinity roots.  In addition, there is also an external focus putting the staff to work with a clear business proposition and reaching even beyond the organization.  So here a candidate would be hired or employee promoted for their different thinking (2.0) rather than more visible differences (1.0).

While need remains for affinity groups to tend to their members needs within the organization, the “new” D&I 2.0 opens to shift focus to go beyond the organization.  It goes along the lines of a statement President John F. Kennedy became famous for and that I tweaked as follows: “Don’t ask what the COMPANY can do for you ask what you can do for the COMPANY AND ITS CUSTOMERS.

D&I 2.0 gears towards actively contributing and driving new business results in measurable ways for the better of the employees as well as the organization and its customers.  A visible indicator for D&I 2.0 affinity groups helping their constituency beyond company walls is affinity groups identifying and seizing business opportunities specific to their constituency.  They translate the opportunity and shepherd it trough the processes of the organization to bring it to fruition.  For example, affinity groups are uniquely positioned to extending and leveraging their reach to relating customer segments in order to identify ‘small elephant’ business opportunities; see How to grow innovation elephants in large organizations.

The D&I 2.0 approach demonstrates sustainable business value which is why D&I 2.0 sells much easier to executives. It makes a compelling business case that contributes to new business growth, the life blood of every company.

Challenging Transition

U.S. companies stuck in D&I 1.0 are hard pressed to keep up with the D&I 2.0 developments and overcome their inner struggle and resistance.  With decades of legacy, D&I 1.0 programs in many organizations lack the vision and ability to make a compelling business case, to develop a sound strategy as well as capability and skill to implement it effectively.  This is the requirement, however, to truly see eye-to-eye with senior executives and get their full support.  This can become a serious disadvantage in the markets relating to products and customers but also in attracting talent.

In the end, the saying holds true that “talent attracts talent” and all organizations compete over talent to compete and succeed.  Therefore, a D&I 2.0 program combines business focus and talent management while tying it back to the core of diversity and inclusion: Fostering diverse thinkers and leveling the playing field for all employees.  This requires a level playing field that offers the same opportunities to all employees, which is the real challenge.

How do you level the playing field effectively in a large organization?  How this will be implemented becomes the differentiating success factor for companies transitioning to D&I 2.0!

Here is a example 2.0-style for a level playing filed that has its roots in the D&I affinity group space yet opened up to include the entire workforce.  It empowers and actively engages employees while leveraging diversity, inclusion and talent management for innovative solutions with profitable business outcomes.  It may take a minute or two to see the connection between D&I, talent and disruptive innovation but it is at work right here in the School for Intrapreneurs: Lessons from a FORTUNE Global 500 company.

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Previous posts relating to innovation and employee affinity groups / employee resource groups (ERG) / business resource groups (BRG):

Join me at the Pharmaceutical Multi-Channel Marketing Strategy Conference in Philadelphia, PA on April 24, 2014

Q1 Pharma Multi-Channel Marketing Strategy
Q1’s Pharmaceutical Multi-Channel Marketing Strategy

Location: Hilton Garden Inn Philadelphia Center City, 1100 Arch St., Philadelphia, PA 19107

Join me at the Customer Experience Summit 2014 in Princeton/NJ on March 6, 2014

Pharma Customer Experience Summit 2014 at The Nassau Inn Hotel, 10 Palmer Square, Princeton, NJ on March 6, 2014

Pharma Customer Experience Summit 2014 at The Nassau Inn Hotel, 10 Palmer Square, Princeton, NJ on March 6, 2014

How open offices kill productivity – and how to make it work

Open offices are not a new invention.  They have been around for a long time as hallmark of start-up companies that simply cannot afford glitzy corporate skyscrapers with plush corner offices (yet). Open offices emerged less by deliberate design than driven by need.

Start-ups typically run on a vibrant culture of passionate people wanting to spend time together to create something great, everyone works together closely in the tight space available.  Information flows fast and freely.  Recreational elements and other services offered remove the need or motivation to leave.  Employees hang out to work maximum hours as a team in a fun, inspiring and supportive environment.  Productivity is up and work gets done.

Start-up open office (source: theepochtimes.com)
Start-up open office (source: theepochtimes.com)

Growing pains

Large companies are attracted by this powerful value-proposition for open offices – or so it seems.  Mature organizations struggle with their increasing size that, over time, entails increasing specialization and complexity with a stifling system of red tape and inertia.

While jobs are large in small companies and come with broad scope and high accountability, which are diluted when jobs narrow in large companies by increased specialization over time.  Functional silos emerge and sub-optimize often to the detriment of other business functions.

This siloed corporate world only contributes to a climate that works against diverse collaboration and inhibits breakthrough innovations; and business results degrade from 10x to 10%.  (See also 10x vs 10% – Are you still ready for breakthrough innovation?)

Cutting costs is a questionable driver

The reasons for large organizations moving to an open floor plan are often glorified and communicated as a measure to increase creativity and productivity in an appealing modern working environment: employees connect casually and spontaneously at the ‘water cooler’ to network and innovate together again.

The true and paramount driver for tearing down the office walls, however, is often more sobering: it comes down to simply cutting costs by reducing the expensive office footprint.  Fitting more people into less space comes at a price for the workforce.

Cost savings only get you so far.  It’s an easy approach but not a sustainable business model for productivity.  What do you really save if productivity goes down?  How sustainable is your business then?  Sacrificing productivity for cost savings is a narrow-minded approach lacking long-term perspective and, therefore, not worth it.  That is unless your goal is to achieve short-term gains without consideration for the future of the business, which is a disqualifying business perspective altogether.

The popular phenomenon in large companies is a move for the wrong reasons (the better driver being increased productivity) and entails serious consequences that jeopardize the company’s productivity, workforce satisfaction, and even the bottom line.

Design constraints

It gets even worse when the new environment is retrofitted space with structural limitations, founded in the legacy of existing buildings and investments, and if no flanking measures taken to enable effective collaboration needs.

A design from scratch has the potential support the collaboration needs and flow of the workforce best.  This is an advantage start-ups have when they can shape and rearrange loft space to their immediate needs without limitations carried forward.

Size matters

Controlling cost is necessary and reducing office footprint is an effective business measure.  Aetna, for example, has nearly half of their 35,000 employees working from home already, which saves ~15% to 25% on real estate costs – that’s about $80 million saving per year.

Do not get me wrong, there are undeniable benefits to open office spaces – when applied for the right reasons in the right context, with right priorities and proper execution.  The point I am making is that cost reduction alone is not a worthwhile driver if it sacrifices productivity.  There comes a point where a hard decision has to be made and if you prioritize cost savings, you sacrifice productivity and other aspects automatically.

Open Office Plan (source: Foundation 7)
Open Office Plan (source: Foundation 7)

What does it take?

Unfortunately, the start-up company model with open office space and its agile and enthusiastic does not scale for large organizations.  The corporate one-size-fits-all approach does not do the trick for several reasons.

Let us look at aspects that make the open office work:

  1. Tear down cost center walls
  2. Make presence easy
  3. Level the (remote) playing field
  4. Embrace work style differences

1.  Tear down cost center walls

Proximity favors who needs to work together closely.  In a start-up company, staff is few and jobs are big.  This ratio flips in large organizations where many employees work in highly specialized functions.  With increasing specialization comes complexity that leads to functional silos.  The employees become separated by every rising departmental and organizational walls.

In large organizations, work space is typically paid for by department and charged to cost centers.  Staff gets corralled this way and kept separated in functional clusters that are easier to administer but counteract productivity, streamlined workflow, and diverse collaboration cross-functionally.  After all, it wouldn’t make sense to have any department operating completely independent from the rest of the organization.

These artificial and structural boundaries make no sense (unless you are an accountant, perhaps).  Therefore, trade the urge for financial micro-management for what makes the workforce more productive, as this is the most important aspect of collaboration and, ultimately, the bottom line.

2.  Make presence easy

Make it easy for your employees to go the extra mile.  Now here is where large companies can learn from how start-ups: offer incentives for employees to hang out and remove reasons for them to leave to maximize time to work and collaborate.

The list seems endless: free beverages and food, services such as laundry, hair dresser, spa or receiving deliveries, exercise equipment, healthy snacks, child and pet care, and other useful perks that cost-cutting companies often omit.

Sounds like a waste to many large companies.  But is it really?  You get more out of your employees’ carefree working along longer than by pinching the free coffee and have them leave during the day or early to run their necessary errands.

3.  Level the (remote) playing field

It may sound counter-intuitive but when cost saving rules, the open office space often only works when not all employees are around at the same time.  If all employees showed up on the same day there may not be enough room and resources (seating, access to power and networks, etc.) to fit and accommodate everyone, since the physical office footprint is now too small ‑ a Catch-22.

When only a subset of employees can be present in the office at any given workday, the rest has to work remotely forming an –at least- virtual organization.  Consequently, the random personal connection “at the water cooler” becomes less likely as does spontaneous cooperation by “pulling together a team” since your pool of physically available staff is limited.

Management needs to take deliberate and determined measures to level the playing field for remote workers by giving them the same opportunities as colleagues present in the office.  Why?  “Out of sight, out of mind” is a powerful and human nature.  If not managed effectively, it only becomes worse when remote staff easily is continuously overlooked when it comes to projects staffing, development opportunities and promotions, for example. The resulting inequities undermine workforce cohesion, effectiveness, and talent development.

Read more on virtual teams at Why virtual teams fail, and how to make them work (part 1) and How to make virtual teams work! (part 2).

4.  Embrace work style differences

There are too many individual work styles to list them all – for example, just think of

FastCompany recently came up with a list of reasons by workers arguing against open offices, which is a good indicator where the pain-points are.  Representative or not, the list tends to resonate with people that experienced first-hand working in a corporate open office environment.

The key complaints are about

  • Distraction – hard to concentrate with surrounding noises of all sort; loud speaking coworkers; interruptions of coworkers stopping by at any given time
  • Discomfort – no privacy; by-passers looking at your screen and documents; food, bodily and other odors; white-noise generators blamed for headaches; spreading contagious illnesses; having to talk to people when you don’t feel like it; “hiding” by wearing earphones
  • Workflow obstacles – competing over quiet spaces, conference rooms or other rare resources; no place to store personal items or personalize the space.

In summary

One size does not fit all and it does not do the trick for large companies, in particular.  So if you have to downsize office space or accommodate more employees, take a sound and sustainable approach by making productivity the driving priority and not cost.

After all, we are human beings that work best when we have control over our work environment and schedule.  When we perform at our best, it is also for the better of the company as a whole.  Flexibility, empowerment and inclusion go a long way – otherwise, mind FastCompany’s warning: “What was supposed to be the ultimate space for collaboration and office culture was having the opposite effect” – also for the bottom line.

Women in Life-Sciences: Pharma Think Tank at UCSF on Oct. 30, 2013

UCSF WILS BI Think Tank announcement
UCSF WILS BI Think Tank announcement

Top 10 Innovation posts

Here are my Top 10 posts on innovation:

Can strategic innovation rely on creative chaos?  To make a long story short, the answer is: No!  Read what it takes to consistently innovate and give you a very cool example too.

2.  How to become the strategic innovation leader? (part 2 of 3)
What is an innovation leader? Is this role similar to an innovator? (The answer is ‘no’.) – Recognize the three key roles in innovation, how to find an approach and avoid critical pitfalls.

Not everything new is an innovation and some is more renovation than in innovation.  Here is a framework that helps to distinguish an innovator from a renovator and works for entrepreneurs and intrapreneurs alike.  It is important to understand which role to play and when; it all depends on what you need to achieve and what is critical to reach your goal!
Creating value through new products is not enough. Capturing the value requires equal attention on the innovation process. Focusing on creativity and neglecting execution along the value chain is a costly mistake.

5.  Why too much trust hurts innovation
Most managers understand that trust is a key ingredient to effective collaboration and innovation.  Yet, few actively try to cultivate and nourish trust in their own organization to achieve the right mix between trust and constructive tension.

6.  Imitators beat Innovators!
You thought Facebook was the original? Or YouTube? Or LinkedIn? – Get ready for your wake-up call! Break-through innovations are over-rated! Imitators are successful by combining someone else’s innovation with the imitator’s advantage and by doing so they can become innovators themselves!

7.  Boost ‘Group Intelligence’ for better decisions!
Group intelligence can be increased and lead to better decision-making – or why not to rely on a group of geniuses!  New research breaks the ground to understand collaborative intelligence and the – but how to apply it to the workplace?

8.  Collective Intelligence: The Genomics of Crowds
Group intelligence beats individual brilliance – and businesses are willing to pay for the crowd’s wisdom in the social sphere.  The MIT’s ‘genetic’ model allows  combining social ‘genes’ to harness the collective intelligence of crowd wisdom successfully and sustainably; areas of application are scientific research or business/employee resource groups, for example.

9.  Can movies innovate with only seven stories to tell?
How innovative are movies really – if at all?  While AVATAR and THE ARTIST appear polar opposites, they share a similar story; so where is the innovation?

10.  ‘Complexity’ is the 2015 challenge! – Are leaders prepared for ‘glocal’?
What is the key challenge in the coming years and how to prepare future leaders.

Don’t miss my Top 10 posts for Intrapreneurs!

Boost ‘Group Intelligence’ for better decisions!

How to increase group intelligence for better decision-making – or why not to rely on a group of geniuses!  New research breaks the ground to understand collaborative intelligence – but how to apply it to the workplace?

Better alone than in a team?

Think about this:  What teams make the best decisions?
We all experienced it at some point:  Even a group of the best and brightest people often ends up with poor decisions that do not do its individual member’s intelligence justice.

What goes wrong?  How does a group of smart individuals, even geniuses, end up with poor decisions when they stick their heads together?  What are they missing?  Moreover, how can we avoid those obstacles to come to better decisions as a group?

Measuring intelligence

Intelligence of individuals has been well studied for over a 100 years:  A solid framework exists to measure the intelligence quotient (IQ).  Individuals undergo a series of mental challenges under the premise that someone performing well in one task tends to perform well in most others too.  Overall, the IQ is regarded as “a reliable predictor of a wide range of important life outcomes over a long span of time, including grades in school, success in many occupations, and even life expectancy,” as researchers put it.

Modern IQ tests consider an IQ close to 100 as average.

IQ distribution
IQ distribution

Does ‘Group Intelligence’ exist?

When we look at what it takes to make more intelligent decisions as a group than as individuals, the first question this raises is whether something like a measurable ‘group intelligence’ actually exists.  If so, is it measurable and –perhaps‑ higher than the intelligence of its members?

Only recently, scientists took a deeper look at the intelligence of groups and made surprising findings.  The joint team included MIT’s Tom Malone, whom we met previous in a post (“Collective Intelligence: The Genomics of Crowds”) as well as others from well-known academic institutions comprising the MIT, Carnegie Mellon, and Union College.

The researchers approached group intelligence following a similar systematic approach as the intelligence metrics for individuals.  However, they linked group intelligence to performance as an endpoint, which makes their finding even more valuable for the workplace!

Group Intelligence - more than a myth!
Group Intelligence is real!

Outsmarting genius as a group

First, the researchers established that group intelligence in performance indeed exists and is measurable.  They also found that the group’s intelligence does not add up to the sum of the intelligence of its individual members.  In fact, the collective intelligence, or ‘c-factor’, shows only a weak correlation “with the average or maximum individual intelligence of group members” – this is remarkable finding!  It means is that you cannot boost a group’s intelligence by composing or spiking the group with genius-level individuals!

Obviously, factors apply other than high individual IQ to increase the intelligence of the group.

The results from two studies consistently and overwhelmingly demonstrate that group intelligence outsmart individual intelligence – by far!

Group Intelligence-study results (original graphics)
Group Intelligence – study results

Here are more details on the science for those how want to dig deeper: Evidence for a Collective Intelligence Factor in the Performance of Human Groups.

Limited by a high IQ?

Individual intelligence only has a practical value to a certain point.  There is an important difference between what an IQ test measures as general intelligence and what Robert J. Sternberg calls ‘practical intelligence’ in his book Successful Intelligence: How Practical and Creative Intelligence Determine Success in Life.  The presence of one does not automatically imply the presence of the other.

What it comes down to is that a high general intelligence is merely a measurable value in the lab but it does not also translate into a more successful life!  An individual IQ above 135 or so can lead to quite the opposite (for reference, ‘genius’ starts at 140 on Terman’s classification).  The higher IQ becomes rather a hindrance than an advantage in real life: a very high IQ tends to clutter and confuse a genius’ mind with more irrelevant options, which make it harder for them to see the most applicable one and come to a decision.

In contrast, practical intelligence relates more to social savvy or ‘street smarts’ – a cunning and practical understanding that proves advantageous in the real world more than a high general IQ!

Here is the magic sauce!

Surprisingly, the strongest correlation of group intelligence is with three factors:

  1. The average social sensitivity of the group members, i.e. “reading the mind in the eyes” of another person.  There is something to be said for bringing together emotionally intelligent people.
  2. Equality in the distribution of conversational turn-taking meaning an equal share of time to speak.  Our society and businesses seem to favor smooth-talkers and attracted to extrovert and outspoken individuals that seem to signal competence, decisiveness, and determination.
    Group intelligence, however, does not increase when there is a strong vocal leader, who dominates the discussion to push everyone in his or her direction.  Be careful not to leave out the brilliance of individuals who may get steamrolled by the loud and dominating: introverts, in particular, are at a disadvantage.  They are easily stuck in an extrovert world.
    Given that the introvert/extrovert ratio in the USA is roughly 50/50 (according to the 1998 National Representative Sample), failing to include introverts effectively is a costly mistake, as it excludes their knowledge and valuable input to the decision making process ‑ and lowers the collective intelligence of the group.  Introverts, for example, favor structured communication that plays to their strengths by allowing them to research and prepare; they need more time to express their refined response.
  3. The proportion of females in the group composition; the more women the better.  This appears to account largely to a higher social sensibility that women have over their male group members in general.  However, all three factors have to come together, so building female-only teams does not do the charm either.

Woman raise group intelligence

In a nutshell

When we bring it all together, what surprises me most is how little of this solid research has penetrated the workplace.  Where employees and management teams make decisions, the survival of organizations is at stake and relies on leveraging the collective intelligence of the group effectively.

A myriad of practical applications for these findings come to mind.  Here are just two examples:

  • Women still struggle to achieve gender equality in many organizations ‑ the amount of women in management positions is a widely used metrics that refers to the female proportion of the workforce.  The common approach is to achieve this by ‘swinging the stick’ to establish and enforce quotas and leave it at that – Mission accomplished?!
    Wouldn’t it be more compelling to offer the ‘sweet carrot’ of increasing group intelligence in leadership teams for better business results that includes leveraging the natural advantage of females?

Again, the female quota alone does not boost the group intelligence.  We also need social sensitivity and equal shares of talking time.  Thus, a flanking business application would go beyond how we compose teams based on gender.  It considers social sensitivity measures and some structure to how we conduct group discussions or meetings to maximize the collective intelligence by including and engaging all participants. A challenge also for how we recruit, train, and evaluate our workforce.

Food for thought.

The Rise of the Intrapreneur

The Rise of the Intrapreneur
How to become an ‘Intrapreneur’?  Why are Intrapreneurs needed?  What is the difference to Entrepreneurship?  – The future of innovation within large organizations lies within, if you know how to tap into it with intrapreneurship!

What is Intrapreneurship?

Did you know that ‘Intrapreneur’ and ‘Intrapreneurship’ are not new terms but were coined nearly 35 years ago by Elizabeth and Gifford Pinchot in 1978?

As a definition for our purposes, an intrapreneur takes responsibility in large organizations for turning an idea into a profitable finished product through assertive risk-taking and innovation.  In contrast to an entrepreneur, the Intrapreneur operates within an existing organization with an internal focus.  Intrapreneurship requires an organization of considerable size for an intrapreneurial role to become applicable in the first place.

What is the difference to Entrepreneurship?

‘Intrapreneur’ is not as well known as the more established term ‘Entrepreneur’ which it derives from.  It even takes a deliberate effort to pronounce the word Intrapreneur so doesn’t sound like and get confused with Entrepreneur.

The word ‘Entrepreneur’ has been around since the 19th century with its functional roots reaching even farther back into the 16th century.  According to the original definition, an Entrepreneur is “one who undertakes an enterprise […] acting as intermediatory between capital and labour” or in other words, to “shift economic resources out of lower and into higher productivity and greater yield.”  (source: Wikipedia)

The role of an Entrepreneur is not so different from the Intrapreneur but many differences exist relating to the environment they operate in and the approach they take.  An Entrepreneur founds a new venture, a business, or company, as an independent economic entity.  This new entity then typically competes for profit in a market with other companies.  Today, Entrepreneurship has fanned out to include specializations such as lifestyle, serial, or social Entrepreneurship that also expanded in markets (in lieu of a better word) previously dominated by non-for-profit, clerical or government institutions.

As a bottom-line, Entrepreneurship roots in competition between companies or organizations by introducing and building a new entity that grows as a company to stand alone in an economic marketplace – while the Intrapreneur connects “capital and labour” using somewhat entrepreneurial methods within an existing organization.  You can even see Intrapreneurship as a downstream evolution for a successful and matured entrepreneurial venture.

Why do we need Intrapreneurs?

With increasing size, an organization slows.  Inertia and paralysis set in to replace agility and effectiveness.  This is often caused by the organization’s own success: The focus shifts towards delivering with increasing efficiency (cost, time) and consistency (quality).  You can easily observe the results in many organizations – it looks somewhat like this:

  • Business functions specialize and sub-optimization to become more efficient and productive; they thereby form ‘silos’ with communication and interactions thinning between them to the detriment of the organization as a whole.
  • Hierarchical structures become steeper to manage more employees; they effectively disconnect the executives on the top from the workers at the bottom of the hierarchy.
  • Promising innovation ideas from the grassroots don’t get through to the executive level for backing or funding to be developed and implemented; the ideas starve and innovation suffers overall.
  • More rules and procedures regulate the growing workforce and detailed aspects of work processes; governance, red tape, and bureaucracy pour over the organization like concrete and become obstacles to change.
  • Career paths become linear, job profiles and responsibilities narrow, entailing an equally narrow view and mindset of the staff that eats away motivation and creativity over time.
  • Talented and creative employees are the first to leave or become hard to retain, as they are always in demand and easily find interesting work elsewhere.
  • Innovation suffers while competitive pressure increases when nimble competitors and start-ups outpace the organization.
  • Management used to command-and-control eagerly seeks fresh talent and ideas externally, i.e. ‘hiring the best and brightest’, to reanimate the organization – yet the leaky pipeline continues bleeding talent, as also the new ‘super stars’ find themselves trapped and escape to new adventures elsewhere.

It takes a jolt to overcome this inertia, revive it, and get an organization moving nimble again ‑ this is the hour of the Intrapreneur!

Time for Action - Clock
Time for Action – Clock

How to become an Intrapreneur?

It takes a new role in the organization to jump-start it, so we “Innovate to Implement“.  Sometimes, a new CEO is hired to turn the corporate ship around from the top; sometimes it works.  The Intrapreneur, however, also considers working bottom-up by pulling the loose ends together and connecting people again across all functions and levels of hierarchy.  The Intrapreneur bridges the various gaps within the organization vertically and horizontally.

It takes a different approach to include, and engage all employees in ways outside their immediate job description that makes best use of all dimensions each individual brings to the (work) table.  The Intrapreneur inspires and spreads a new sense of enablement throughout the workforce.

The Intrapreneur looks differently at how we conduct our business and unlocks innovative value chains, new business models, or propositions.  It takes a strategic lead to become a facilitator for the organization, to adapt continuously and make best use of the changing environment.  The Intrapreneur builds networks and alliances to help actively moving the organization towards its business goals.

The Intrapreneur is a much-in-need and critical role within the matured organization.  It can come in different flavors too!  Being the ‘Executive Champion’, for example, is an intrapreneurial role (see “How to become the strategic innovation leader? (part 2 of 3).”

As an Intrapreneur it is important to be aware what hat to wear and when.  Sometimes an ‘architect’ is needed and an ‘orchestrator’ at other times, for example.  ‑ For more details see: “Innovation Strategy: Do you innovate or renovate?

Risks becoming an Intrapreneur

Now, as a word of warning, being an Intrapreneur is not always easy:  You tent to step on many people’s toes if you want to make a difference.  It can be so risky, that Gifford Pinchot even formulated The Intrapreneur’s Ten Commandments starting with: “Come to work each day willing to be fired.”

So brace yourself because there are many obstacles to innovation and change out there that the Intrapreneur will face.  Intrapreneurship is most and foremost a leadership role, which has a natural tendency to conflict with managers (see “Leadership vs Management?  What is wrong with middle management?”).

Prepare to hit the obstacles to an innovation environment that Irving Wladawsky-Berger in Business Week calls “indifference, hostility, and isolation” – I couldn’t agree more!

The bottom-line

It is not always easy to become an Intrapreneur.  It takes skill and persistence as well as courageous leadership and risk taking.  Truly making a difference and reviving an organization though is rewarding in itself – at least you will learn a lot and make new friends.  ‑ Most of all make sure you have fun!

Next-generation ERG learn from U.S. Army recruitment!

What do Generation Y (GenY) oriented Employee Resource Groups (ERG) share with the military?  – More than you expect!  A constant supply of active members is the life-blood for any ERG to put plans into action and prevent established activists from burning out.  The U.S. Army faces a similar challenge every year: how to attract and recruit the youngest adult generation?  Next-generation ERGs listen up:  Let the U.S. Army work for you and learn some practical lessons!

The U.S. Army brand

Everyone knows the U.S. Army. This American icon has been around for well over 230 years!

The ‘U.S. Army’ is more than a well-known military force. We recognize it as a brand.  Just like ‘Coca-Cola’ or ‘IBM’ portray and advertise a certain company image to sell its product, the U.S. Army needs to constantly appeal with a unique value proposition for new recruits to enlist. The ‘product’ offered if what the recruit expect to get out of it along the lines of ‘what is in it for me’ (WIIFM).

From this commercial perspective, it seems only natural that the U.S. Army hires world-class advertisement agencies to help meeting recruitment targets.  Marketing and advertisement gained importance especially since the U.S. Army turned into an all-volunteer force in 1973. This is similar to a voluntary ERG membership.

Aiming at a moving target

We distinguish four generations at the workplace today. Each comes with different motivations and characteristics.  The collective personality or zeitgeist influences each generation’s behavior and values.  These need to be considered to adapt and effectively connect with each generation in its own way to maximize their potential and productivity for the better of the organization overall.

You can easily find this spectrum of generations reflected in the historic recruitment campaigns of the U.S. Army.  The U.S. Army ‘brand’ changes over time and adapts to appeal and attract fresh recruits.

Let’s take a look at these recruiting campaigns for the four generations before we move on to extract the practical benefits for ERGs today:

1.  Veterans, Silent or Traditional Generation (born 1922 to 1945)

"I Want You"
Uncle Sam

I admit, in practice this campaign hardly affects today’s ERG anymore since most of this age group has already left the workforce by now.

Nonetheless, using the ‘propaganda’ flavor in this message proved very successful in both WWI and WWII.

‘Uncle Sam’ captures the essence of a generation of disciplined conformers with much respect for authority and an ingrained understanding that duty to the country is an obligation.

2.  Baby Boomers (born 1946 to 1964)

The U.S. Army became an all-volunteer force in 1973, which changed the recruiting game entirely.  Not being able to rely on a general draft anymore, the U.S. Army needed a new approach to attract a steady stream of voluntary recruits.

This coincided with an upcoming new generation of the younger Baby Boomers generally characterized as full of optimism and thirst for social engagement.  To tackle the new challenge of effective marketing, the U.S. Army brought in a professional advertisement agency.

"Today's Army"
Who expects “Today’s Army” to be a fun crowd playing football?

The first ads to the “Today’s Army wants to join you” campaign (1971 to 1980) suggest membership in a nice group of people sharing many similarities.

Also, women were now encouraged to enlist. It’s all about optimism, getting together and being involved!

This was a gutsy and somewhat liberal first step to attract a volunteer force.  Though thinking ‘out-of-the-box’ it did not work out all that smoothly as indicated by changes following quickly.

"Join the People who Joined the Army"
All serious in 1973

This ad (1973 to 1976) is like a pendulum swinging back to the opposite extreme!

Tone and focus changed dramatically in this newer version of “Join the People” emphasizing the seriousness and commitment of being a soldier while also highlighting personal benefits.

The message is clear:  No more playing around here, responsibility and duty is back, no more football on the beach!

Finally, the U.S. Army settled on a more balanced campaign.

"This is the Army"
Blends people & duty

Here is an example for “This Is the Army” campaign ads.  The headlines read “In Europe You’re on Duty 24 Hours a Day, but the Rest of the Time Is Your Own” or “Back home, I wouldn’t mind doing the work I’m doing here” influenced also by a loss of military reputation after the Vietnam war.

One campaign or another, the U.S. Army missed its recruitment goal by more than 17.000 in 1979.  This announced a new generation, GenX, coming with a different background and values that required the U.S. Army to re-think and find a new approach.

3.  Generation X (born 1965 to 1980)

Birthrates cut into the recruitment pool. In addition, the smaller Generation X turns out to be tough to target.

This generation came with an inherent distrust of authority originating from geopolitical change as well as changes in western society and family structures.  Despite GenX’s dominant drive for independence and self-reliance, this generation is also looking for structure and direction in life.

6 Be all you can be ad
Personal growth

“Be All You Can Be” (1980 to 2001) emphasizes a personal challenge and an opportunity for self-development, i.e. taking charge of your fate to become a better individual.  Note that the “we” is gone,  it’s all about “me” for GenX.

The benefits offered by the U.S. Army included significant education support.  (The U.S. military remains the largest ‘education organization’ in the U.S. in terms of funding tuition, in particular.)

 

3 "Army of One" logo
Self-reliant GenX

The succeeding “Army of One” campaign (2001 to 2006) hits the true core of the independent GenX by underlining the single person in their message.

However, the campaign was also short-lived because a focus on the independent individual appeared contrary to the idea of teamwork that any military organization relies on and cannot work without.

Facing demographic decline, recruiting advertisement reached out into Spanish-speaking ‘markets’ (in a campaign known as “Yo Soy el Army”) to tap into the increasing Hispanic population.

 

Image result for image top gun free online
Top Gun (1986) movie

 

The U.S. Army made more use of TV advertisement to reach GenX, a generation brought up in front of a TV.

Perhaps the boldest recruitment stunt was the 1986 smash movie “Top Gun” – sponsored by the Pentagon in need of a major image boost. And it worked! Think about it: Tom Cruise is a self-reliant ace who has a problem with accepting authority – a poster-boy Gen-Xer. In the end, he became a valuable team player for the greater good meeting the military’s needs and got the girl.

4.  Generation Y or Millennials (born 1981 to 2001)

The ongoing “Army Strong” campaign builds on a proposition of lifelong strength through training, teamwork, shared values and personal experience.  – What a change from the previous focus on independence for GenX!

“Army Strong” also suggests contemporary leadership, personal empowerment and strength building that found on shared values.
(Read more on managing Generation Y at Generation Y for managers – better than their reputation?)

Here, ‘strength’ is meant literally:  The U.S. Army overhauled the fitness training to ‘toughen up’ this generation.  Weakened by a more tranquil lifestyle (such as video-gaming),  GenY-ers often lack experience with physical confrontation that is unavoidable and crucial for effective warriors.

Army Strong
“Army Strong” since 2006

Perhaps confusing for older generations, “Army Strong” caters to GenY’s interest in making a difference not only in their lives but also for their extended communities.  Work is less central in this generation while individuality and leisure value high.

The campaign milks the social ties deliberately addressing not only recruits but also the people who love and support them, i.e. the people who influence the recruits’ decisions such as family and friends as well as the broader public.

Print ad for "Army Strong"
GenY pride and social values

Consequently, the U.S. Army presents itself more as a responsible and somewhat selfless social service in advertisements by highlighting how soldiers serve their communities and for their nation beyond executing force during a conflict.

The U.S. Army adapts its spectrum of communication channels to keep up with GenY, a generation for which technology serves as an extension of their personality and their physical selves.  Constantly online and connectedness with an appealing adventurous fun-factor, the U.S. Army is present across the entire landscape of noteworthy social media these days – it even entertains its own video game to warm up GenY.

Targets on the demographic curve

Next-generation ERGs and the U.S. Army both aim to attract a specific demographic:  The U.S. Army targets 17 to 24-year-old recruits, looking at the lower end, while ERGs typically look for the older end, i.e. young adults with professional training, perhaps a college degree and some work experience.

Thus, the U.S. Army’s target demographic starts just a few years younger than the typical employees entering the (civilian) workforce, so the U.S. Army operates a bit ahead of the age curve that becomes relevant for ERG membership recruitment.

Let the U.S. Army do your research!

Using this time difference to their advantage, next-generation ERGs, in particular, benefit from the U.S. Army doing the heavy lifting with regard to generational research.  With the U.S. Army’s advertisement contract worth more than $200 million each year (or $2,500+ per recruit) don’t fool yourself:  an ERG will never have funds anywhere close to hire a top-notch advertisement agency for attracting new members … unless you are perhaps the guys who invented Google or so…  J

From a next-generation-ERG’s perspective, here is what you can reap:

  • Target Characteristics

Using its marketing dollars, the U.S. Army identifies the characteristics of your future demographics for you – for free!  Look at how the U.S. Army is targeting today.  It gives you a clear picture of what the characteristics are of your next ERG generation tomorrow.

The U.S. Army shares its findings publicly.  This includes a sharp outline of the specific characteristics of the youngest employees that enter your workplace now or it in the near future.  So, keep an eye on the U.S. Army’s next recruiting campaign and time is on your side!

  • Trial-and-Error without getting hurt

It gets even better.  The U.S. Army provides you with field test results on whether their findings hold true in practice:  The U.S. Army’s annual recruitment figures serve as a success criterion for the recruiting campaign.  These figures are available in the public domain and found easily online within seconds.

  • The early warning signal

If the actual Army recruitment figure exceeds or falls short of the target figure (somewhere around 80.000 recruits each year), you get an idea what worked and what did not.  The latter reflects not only that the campaign lost effectiveness but may also indicate that the next generation has arrived with a changed set of values and characteristics.  – Use this as a free early‑warning system for your ERG!

Note that over the past five years the U.S. Army’s number of “accessions” (=recruits) exceeded the “mission” (=target value); note though that the “mission” bar was lowered in 2009 and 2010.

When the U.S. Army misses its recruitment target in the future, the next campaign is just around the corner.  A significant change in the core message targets the next generation.  So, here comes your next lesson and opportunity for the ERGs!

Back to the Future?

If the U.S. Army is not for you, don’t worry.  Choose any military branch of your liking – they all face the same challenge.  You don’t need to love the military to learn from it, and the lessons are valuable.

As a general yet effective approach to strategic innovation, keep an eye on industries and organizations that face similar challenges earlier than you do.  Learn from them and prepare your business and ERG for the change.

Starting an ERG as a strategic innovation engine! (part 3 of 3)

While many companies demand creativity and innovation from their staff few companies seem to know how to make it work. – Is your organization among those hiring new staff all the time to innovate? The hire-to-innovate practice alone is not a sustainable strategy and backfires easily.

An alternative and sustainable way to tap deep into your employees’ creative potential and turning it into solid business value is by forming an employee resource group (ERG). A well-crafted ERG serves as a powerful and strategic innovation engine for your organization!

Losing the innovative edge?
It is the large companies that seem to struggle with innovation most. When companies grow they tend to become less innovative. When this happens we see great talent turning into under-performing employees. – Why is that and is there a way out?

Stuck in mental models of the past?
Remember the heavy dinosaurs that finally got stuck in the pre-history tar pits and starved, too heavy to move themselves out of the calamity? Mental models are the tar pits that companies grow to get stuck in – unless they find a way to shed (mental) weight and think nimble again to survive.

The mental models often originate from days past when the business started and flourished with initial success. The models worked when the company grew back then but models out-date easily over time. At some point the company began to work harder to standardize its processes to ensure the output is delivered reliably and predictably and costs are driven down: the focus shifted from innovation to efficiency. Specialized and refined business functions create increasingly complex and bureaucratic processes, ‘standard operating procedures’ rule the course of action. Things don’t move fast here anymore. Improvement ideas from employee on the floor hardly make it to the top executives and starve somewhere in between, probably in the famous ‘idea box’…

> For more general insight on complexity as a leadership challenge, read this: ‘Complexity’ is the 2015 challenge! – Are leaders prepared for ‘glocal’?

This focus on incremental efficiency also traps R&D departments to a point where true creativity and innovation get stifled, the innovative output drops. In short, the larger a company the less it innovates. Sounds familiar?

Many companies chose the dangerous and seemingly easy way out in buying new ideas from the outside through acquisitions and hiring ‘new talent’. The danger lays in applying this practice too broadly and becoming reliant on this practice, i.e. getting trapped in a vicious and reinforcing cycle. This practice also alienates and frustrates the more seasoned employees who feel underutilized and –quite rightly so see their career opportunities dwindling. Soon enough the sour side of the hire-for-innovation practice for employees becomes transparent also to the newer employees and drives them away in frustration. This organization just found the perfect recipe to turn top talent into poor performers!

Don’t waste your human capital
Bringing in fresh brains to an organization may justify mergers, acquisitions or hiring at times – but not as a strategy for continuous innovation and without also at least trying to tap into the innovative capacity that lays dormant within the organization.

Don’t write your staff off easily by following blindly the common yet wrong assumption that an employee loses the creative spirit after a few years and that new hires would be more innovative than whom we already have working for us. Haven’t we hired the best and brightest consistently in the past? Well, then this logic doesn’t add up, right?

Ask yourself: have you lost your innovative edge? Will you personally be more innovative once you change to another employer? – I don’t think so either. The good news is that even if you don’t believe it, changes are that managers and human resource experts of your new employer do, at least the ones who follow the outdated mental model! – But then, how long can you expect to last there before you get written off? It’s like getting on a train to nowhere.

Derailing the train to nowhere
But seriously, the seasoned employees’ intimate knowledge of the organization and its people can hold enormous potential for innovation not only under financial considerations but also as a morale booster for staff. Getting personally involved more and engaging them in driving change again actively leads the way to measurable and favorable results for the organization. These employees are the people who know your business, your markets, your customers and where to find resources and short-cuts if needed to get things done! Remember the “Radar” character in M*A*S*H who creatively procured whatever his unit needed by knowing how to play ‘the system’ and navigate the cliffs of bureaucracy on unconventional routes?

So, how can you motivate and (re-)activate your employees to come forward with brilliant ideas and getting them implemented to boost the organization’s profitability? How can you spread new hope and direct the enthusiasm to practical and meaningful outcomes for the company and the individual employee alike?

Facing organizational barriers
There is no shortage of good ideas in the heads of employees. Too few of them, however, actually get picked up and implemented since organizational barriers have many dimensions the need to be overcome first. Here are some examples:

  • A vertical barrier effectively disconnects employees from the executive level which hold the (financial and other) resources to make things happen. Penetrating this barrier means to connect the people within the organization closely and effectively again. > Readers of my previous post What does take to keep innovating? (part 1) will recognize that an executive champion is needed who brings together the technical and business champions. If you feel intrapreneurial and consider becoming an executive champion, check this out: How to become the strategic innovation leader? (part 2)
  • The horizontal barrier separates business functions and operating units that evolved to become silos or manager’s ‘fiefdoms’ of sub-optimized local productivity often with lesser concern to the overall performance of the organization. What you are up against here is often enough beyond specialized deep expertise but also defensive egos and managerial status thinking that led to a comfortable and change-adverse local equilibrium. As an intrapreneur you bring a much needed yet disruptive element to the organization. Since you are rocking the boat you can get caught up in ‘politics’ easily. Functional managers and their staff may perceive you as throwing a wrench into their well-oiled and fine-tuned machine that could jeopardize not only their unit’s efficiency but also their personal incentives for keeping operations running smoothly. > For more insight on the tension field of management vs. leadership check out Leadership vs Management? What is wrong with middle management?
  • Another barrier relates to the perceived value that your work creates for the organization, so let’s call it the value barrier: When you start acting intrapreneurial, you may be seen as someone wasting resources, incurring additional cost or generating questionable value (if any value at all) in the eyes of executives and other managers.

Therefore it is of critical importance to clearly demonstrate the business value your work adds to the organization. Based on an unambiguous success metrics the value proposition needs to be communicated clearly and frequently especially to executive management to gain their buy-in and active support.

These and possibly more barriers are a tough challenge. Now, I assume you are not the almighty ‘Vice President of Really Cool Stuff’ (that would be my favorite future job title!) but hold a somewhat lower rank. Perhaps you got stuck in the wrong department (the one without the Really Cool Stuff).

So, where do you start to innovate and ‘rescue’ your organization from a looming train-wreck scenario?

Breaking down barriers by innovating from within using ERGs

A vehicle I tried out quite successfully over the past years was forming an employee resource group (ERG). This grassroots approach has the power to crash right through the vertical, horizontal and value barriers while driving change effectively and sustainably through the organization as a strategic innovation engine.

> A previous post discusses the business model behind the ERG approach in more detail: Build ERGs as an innovative business resource!

Here are the first steps on the way to founding an ERG:

  • Identify a business need and build a business case, i.e. a clear value proposition aimed at executive management convincing them of the need and benefits of forming an ERG within the limits of company policies. Attracting an influential executive sponsor to gain buy-in is a key requirement for instituting an ERG successfully. The sponsor serves as a political and resourceful ally, an experienced advisor and advocate but also ensures strategic alignment of the ERG’s activities with the broader goals of the company.Since executives value their time more than yours, keep it short and to the point. Think executive summary style and offer details separately for those who chose to dig deeper and to demonstrate that you thought this whole thing through. If your organization already has a distinguished officer or departments with a vested interest in employee engagement for example then connect, collaborate and leverage your joint forces. > More on how to build a case study for an ERG at: Q&A – Case study for founding a business-focused ERG
  • Get organized! Seek voluntary members and reach out to future constituency of the ERG. Active members are needed as the driving force and source of ideas that the ERG turns into business projects aimed to innovate and energize the organization.
    The first ERG I founded was “NxGen”, which stands for the “Next Generation at the Workplace”. The NxGen ERG has a generational orientation but is open to all employees regardless of their age or workplace generation. Nonetheless, from the start mostly the youngest employees (Generation Y) drove NxGen. In many cases they did not know of each other as the GenY-ers were spread thin across the various business functions of the company.The GenY-ers, in particular, found a forum in the NxGen ERG to get to know each other in the first place. We then focused on goals based on shared values or needs to build a strong support network within the company. At all times we kept the ERG open and inclusive to interested employees join from other workplace generations.

    The ERG offers its members a safe environment to discuss issues and ideas. It also serves as an informal forum to find coaches and mentors for personal development or specific projects and initiatives. Active ERG membership allows less experienced employees to quickly acquire new skills and test them in real-life by running a project hands-on even in areas outside of their job description or business function to address needs close to their heart with tangible business value. Here, the ERG serves as a very practical leadership development pipeline and safe ground for experimentation within the organization.

    > More on the virtues of Generation Y as I experience it in NxGen under: Generation Y for managers – better than their reputation?

  • Get active by launching business-focused projects. Again, you are targeting management and executives in particular to build credibility and thereby become more effective over time.Start with feasible projects of high visibility and short duration that address a significant business need with a clear and quantifiable success metrics. For each project seek executive sponsorship at the highest level you can attain from the business area that the project affects. Make sure to communicate your successes broadly and frequently to kick-start the ERG. Stick to a clear, specific and unambiguous metrics for your success; if you can tie it to a monetary ROI the better, as this is the language of business. > More on establishing a success metric under: Driving the ROI – where to start your projects metrics?

    Showcasing and celebrating your successes as an ERG motivates the already active members, keeps attracting new members and builds credibility among executives to keep the ERG wheels turning as a strategic innovation engine for your organization.

On a personal note
The example of the NxGen ERG is very real. NxGen was nationally recognized as best-practices ERG within 5 months (!) of its founding and became a valued and frequent sounding board for C-level executives within one year. The ERG has no funds of its own yet runs projects and initiatives nationally and internationally that already shifted the company culture and opened it more for change.

References and additional reading

Do managers miss the sweet-spot of remote working?

Stumbling in the dark?

Organizations often find themselves struggling with a dilemma: The need for employees working remotely, often from home, is at rise for many business reasons that include cost savings and the competition over attracting and retaining top talent.

On the other hand, many managers have a hard time allowing their staff to work outside their proximity and direct supervision. Their reasons often include the fear of change introducing the unknown but also a certain cluelessness of how to effectively manage a remote workforce and moving beyond their personal comfort zone.

These conflicting drivers open a tension field that organizations tend to struggle with. – Does this sound familiar to you?

No silver bullet
Unfortunately, there is no ‘silver bullet’, i.e. a one-size-fits-all solution that works for everyone and in every environment. Too much depends on the nature of the work, necessary interactions and communication between team members as well as the jobs and personalities involved. It takes a close look at the individual organization to craft a remote working program that fits an organization, maximizes collaboration at a measurable performance level.

Common ground for remote working
However, we can learn from others how to establish a basis for a fruitful remote working program in your organization (if you don’t have one yet).  Research offers tangible results such as the “MTI Report 09-14: Facilitating Telecommuting: Exploring the role of Telecommuting Intensity and Differences Between Telecommuters and Non-Telecommuters”. The study compares telecommuters and non-telecommuters and it came up with the following findings. (Note that I use telecommute, telework and remote working synonymously throughout this article.)

  • Telecommuters show increased commitment to their organization and experience more work-life satisfaction over the non-telecommuters group. No differences between both groups though on job satisfaction and turnover intent, i.e. how likely employees are to leave the company.

On a side note, the latter two findings are quite different from my own professional studies and experience, where employees working remotely reported a 57% increase in work-life balance. Increasing workplace flexibility including remote working, i.e. giving the employee more control over their schedule and location, became a driver also for employee attraction and retention.
– What are your experiences? Do you see remote work influencing job satisfaction and employee retention? Please comment.

  • Interestingly, the study explored also ‘personalities’ and found that more extroverts tend to be telecommuters, so people with a higher drive for social interaction and communication rather than the quiet ones.

This appears conclusive in the light of the simple finding that (a) telecommuting in many companies is not implemented consequently but rather as an “idiosyncratic deal” between individual supervisors and employees. (b) These supervisors prefer granting permission to telecommute to high-performers. This can explain a pre-selection of extroverts over introverts, who may not show up on the supervisor’s radar as much and therefore tend to receive less remote working opportunities.

  • Generally, teleworkers commute from farther away. They find commuting more stressful and want to avoid rush-hour traffic.
  • Less surprising, telecommuters were interrupted more by family members given their physical presence at their off-site work location.

This seems to suggest that working-from-home could be less effective than working in the office given more family interruptions. My own observations are quite different and based on a controlled pilot project which showed that the workers in the office feel distracted by their colleagues stopping by randomly; the workers preferred working from home when they needed focus and want to avoid distractions calling this their most productive work time.
Disruptions occur at home as well as in the office. It is the employee’s responsibility and best interest to ensure a professional work environment at their home-office so not to jeopardize their work results. Consequently, also performance needs to be measured by results and not physical presence. This levels the playing field and allows for fair comparison between all workers independent of their working location and distractions.

  • In the triangle of telecommuters, supervisors and Human Resources (HR) practices the telecommuters generally view the organization differently from non-telecommuters. Most telecommuters perceive technology training is available to them and that the organizational reward system as well as their supervisors was supporting telecommuting. Telecommuters also believe that there is an underlying business requirement that drives working remotely.

Once again we see that a level playing field is viewed as an important success factor for effective teleworking. Technology serves as enabler that makes teleworking possible in the first place and connects coworkers across remote locations. Offering remote working not only becomes a business necessity but also addresses increased expectations of the modern work force to telework powered by ever improving communication and collaboration technology.
Now, the telecommuters in the study seem to understand the changed business environment that pushes organizations to open up to flexible work arrangements for competitive reasons including cost savings as well as employee productivity and retention – the supervisors ‑apparently‑ did not ‘get it’.

For most of us the times are over where workers came to the factory or office only because the resources needed to accomplishing the work were concentrated in a specific location and could not be distributed (think early typewriters, heavy production equipment, incoming mail and so on). For a growing services industry these limitations no longer exist – yet this out-dated paradigm remained present in the minds of many. People tend to have a certain picture in mind what work ‘looks like’ and where it has to happen which comes down to an office with everyone present from 9am to 5pm.

  • From the supervisors’ perspective things look different than for telecommuters. Over 50% of the supervisors of telecommuter believe “that employees have to be high performers”. This view is shared by only 37% of the non-telecommuting supervisors.
    This brings us to a most critical component and success factor for making remote working work…

Management attitudes – the make or break
The MTI study phrases this barrier kindly as “challenges and obstacles emanating from attitudes of individuals in the organization”. The obstacles to implementing an effective telecommuting model often originate from management itself or even the Human Resources department tasked to make a policy.  The reasons for resistance can be multifold and include a lack of better knowledge, fear of change such as losing perceived control, lazy avoidance to probe outdated beliefs or taking a one-size-fits-all approach without evaluating the specific environment.

I even experienced the paradox of managers believing they can work from home just as effective as from their office desk and making use of this flexibility at their convenience while not trusting that their staff could be similarly effective or was trustworthy enough just as much. They see remote working being a ‘perk’ for their staff reserved for ‘top performers’ who deserve it – a double standard is being applied which is often enough based on murky or questionable criteria (if at all). These managers show a sense of entitlement while ignoring that (as the MTI study confirms) remote working increases employee satisfaction and commitment which tends to increase also performance; as an example, performance increased by 30% in the department I manage.

Some managers fear they may lose ‘control’ and that their staff may abuse the newly acquired freedom to control their schedule and work location. This ‘control’ is often based on the deceptive perception that staff works ‘better’ and is ‘under control’ when confined to an office location and ‘eye-balled’ by the supervisor.

More effective is the consistent application of measurable and pre-defined goals that demonstrate unambiguously, transparently and quantifiable whether an employee met the goal or not – independent from their schedule or work location. In practice, managing-by-performance showed more effective to distinguish effective performers from under-performers than a manager looking around the office space and hoping the staff is performing just by their mere presence.

What it takes to make remote working work
Implementing remote working is not exactly rocket science but takes an honest and diligent approach based on trust and clear expectations. From a practical perspective, a viable model includes:

  • Put away with the ‘telecommuting-is-a-perk’ attitude
  • Closely look at which jobs have remote working potential together with the affected employee
  • Identify the employee’s team, i.e. the people who need to cooperate closely even across departmental boundaries (organizational, geographic, etc.)
  • Include employees to model how remote working could work in their team, try it out and be flexible to improve the model
  • Strictly rate all employees by their performance based on measurable and tangible results that are clearly defined
  • Apply transparent standards for all employees consistently
  • Treat remote and non-remote workers similarly including equal opportunities treatment and rewards
  • Provide effective communication technology and adequate training
  • Address manager concerns and prepare management with adequate training and guidance.

It is true that managing a remote working environment provides new challenges. They include in particular:

  • Strictly managing-by-performance by setting clear expectations and exercising transparency.
  • Overcoming ‘old thinking’. Questioning ones habits and beliefs to approach with an open-mind new or different ways of working. Include your staff to come up with ideas on how to make it work.
  • Diversifying and mastering the spectrum of communication channels. Choosing and using the media preferred by the staff to communicate effectively and efficiently with employees.

If this includes peer-to-peer video, instant messaging or texting (SMS) then learn to master these technologies. Limit face-time for confidential or sensitive topics that should better not be communicated electronically; don’t abuse face-time for routine communication.

Most of all, mutual trust is the key component in the critical relationship between manager and employee. This can be the hardest to build. For managers, taking some temporary measures can prove helpful to establish a trustful working relationship with their staff; for example, start with documenting and reviewing weekly performance plans together with the employee until the manager develops more trust and is comfortable with exercising less timely supervision.

In general, if an organization lacks trust then remote working will hardly be implemented effectively, consistently or to its full potential – but then, remote working may not be the biggest problem this organization faces…

How to retain talent under the new workplace paradigm?

The paradigm of work has changed – how does it affect employees and what can be done to retain them?

How to retain talent under the new workplace paradigm?

Most of us grew up with a clear understanding of how ‘work’ and ‘careers’ works: As an employee you could generally rely on job security and a pension guarantee for your loyalty and obedience to the employer. Practically, the organization ‘owned’ a human asset in a voluntary symbiosis that would end with retirement.
– This paradigm changed fundamentally and even more so in our turbulent and globalized economy. Since my current work focuses on employee retention and engagement, let’s see what has changed and how it affects employee retention.

The ‘old deal’ is gone!
When it comes to employment today, employees understand that they stand alone (though this awakening may have come only recently to the more established generations). Organizations now hire people for their specific skills only as long as they need them and then move on to hire someone else for the next task.

This may well be the reason talent acquisition is often valued higher than talent retention. However, this approach also comes with losses through attrition and may not make best use of the added value that an individual can give the organization over time with through learning, personal growth, developing networks and gaining experience.

One way or another, the old paradigm no longer holds true. And the GenY streaming into the working world have not even experienced it to start with, so don’t expect them to respect and live the outdated rules!

One-dimensional career paths are out!
Under the old paradigm career paths were fixed and oriented ‘upward’ following a pre-defined and linear course of advancement in the position line-up. Deviations from the laid-out career model were rare exceptions.
More likely, an employee had to leave the organization to break out of the scheme when seeking growth in a new or different dimension of interest, to apply newly acquired or dormant skills or to make ends meet along their personal needs. There was not much room to move sideways out of the fixed career track slot into a career up through a choice of other avenues.

While the fixed model made it easy for HR and management, it neglected the potential of the individual employee who can evolve and grow, who may change interests and who may seek new challenges outside their immediate or next-up job description.

Retention is more than offering money!
Employers who wish to retain their precious talent need to offer more than a paycheck and blanket perks ‑ but this does not mean necessarily that they have to spend more money. A competitive salary is expected, of course, but not the #1 driver. Key drivers for the new workforce are career opportunities and customized benefits – money follows.

What today’s workforce is looking for are choices: flexible career paths that broaden the options and offer development opportunities instead of narrowing them down. They want to take control and influence where they are heading in a multi-dimensional space of opportunities and receive recognition for their achievements – empower them! Set clear goals and allow employees to experiment and learn on the way – don’t micro-manage them!

It becomes crucial for every employee to be ‘employable’ meaning to stay attractive for the current employer as well as the next employer under the new paradigm.

When it comes to benefits the time is over for one-size-fits-all perks! Consider non-monetary benefits that cater to the individual’s needs, preferences and independence: Non-monetary benefits may range from education opportunities over a free trip with family or friends as an incentive to flexibility along the work schedule and venue including remote working options.

This flexibility and consideration of an individual’s lifestyle is becoming even more important with GenY, who entertain closer social ties to families and friends than GenX. Networking and leveraging personal connections come naturally to GenY and extend seamlessly also in their professional world.

Shared values and inclusion
Employees increasingly chose employers by the values they share and reflect what they believe in.

Does your employer talk-the-talk or also walk-the-walk? Management tends to rely on communication channels to communicate to their employees that derived from marketing. These channels were originally developed to promote products to consumers through messages broadcasted one-way in a propaganda-like fashion. This practice was extended using new social media but still following the traditions of the old paradigm and without making use of the potential associated with the ‘social’ aspect, which is the power-engine behind the new media boom.

Give it a reality-check! – If your company has a Twitter account, for example, does your company account have only followers but follows nobody else? Here we are back to broadcasting!
If your company follows others, does it genuinely connect and communicate with its employees as well as with people outside the company? Does it engages in open discussions and learns from it?
How many managers and companies truly use social media tools to their full breadth as a two-way street of communication?

Transparency for talent retention
Retention does not have to be ‘rocket science’ even when the work paradigm changed.
What it takes is a degree of honesty and respect from an organization to treat employees fair and help them to stay ‘employable’. Authentic and open communication goes both ways and forms the basis for building trust, employee inclusion and engagement that result in employee satisfaction, innovative creativity and retention.

There is no need to fear transparency and open communication for an organization; failing to do so though is harmful to the organization’s reputation with word spreading fast and employees avoiding workplaces that do not live up to high standards and authenticity.

The blind side of HR? –or- A case for talent retention!

Discussion of the provocative thesis that HR strategists are blind-sided and focus on talent acquisition rather than on talent retention. This opens opportunities for ERGs to fill the gap by engaging the present employees and running projects targeting talent retention for the organization!

The blind side of HR? –or-  A case for talent retention!

Ask whom you want, the corporate “war over talent” is declared and raging out there worldwide. We see companies going above and beyond to spot the precious future brainpower, lure them with all the goodies and reel in the catch – but what happens later?

After the first days of sweet honeymoon with ‘new hire orientations’, fancy status symbols and back-patting, the shiny brochures start wilting, the warm words of welcoming encouragement fade and reality kicks in – and sometimes hard.

Now, did you notice that HR strategies these days tend to focus on talent acquisition but neglect employee engagement to secure talent retention?

It’s not enough to bring in the ‘top talent’ when you can’t get the most out of your staff effectively and consistently long-term. To drive innovation and game-changing business models to their full potential, we cannot relinquish the expertise and insight of people familiar with the company or flourish on ideas from newly hired staff alone.

When true ‘on-boarding’ fails (and what I mean by that is embedding the new employee firmly into the organization’s human fabric) the wedding is short-lived. Good people are easy to move again to find their next job somewhere else and leaving the company behind with an unproductive vacant position. New employees may also soon pick up on limiting or meager career prospects that they soon will share with their not-so-new-anymore co-workers that were not granted the opportunity to develop and ‘grow’ into the open position. Then, the costly investment in the new hire went down the drain while the company still needs to fill the vacant position with another candidate to be snatched from the competition at a cost…

On the other hand, what is the effect on the more seasoned employees that ever hiring new staff has over the transfer and development seasoned staff? They see the influx of fresh blood affecting (and sometimes disrupting) the established company’s culture as well as limiting their own career opportunities. When will the veteran staff feel they are no longer valued and find it is time to make a move and be courted by a new employer that values their talent more?

How about this provocative thesis:   HR strategists –by the very nature of their job!- see the organization as it should be in contrast to the functional managers throughout the organization see it as it is in the reality they have to deal with every day. Therefore, HR strategists are naturally blind-sided!

Does the HR strategic perspective make sense to focus on acquisition, i.e. hire talent the company should have, and not so much on retention, i.e. the talent the company already has?
– I leave this question open for discussion. What are your observations or experiences?

If this thesis holds true then ERG leaders face opportunity and, perhaps, have an obligation to show positive “organizational citizenship behavior” by doing what is right for the organization. Focusing on ERG engagement projects that aim at employee engagement and talent retention then has a bright future!