LinkedIn Co-Founder Reid Hoffman on ‘Blitzscaling’ and Unintended Consequences

“You can’t anticipate everything. You can’t prep for everything,” said LinkedIn co-founder and former CEO Reid Hoffman during an interview Thursday at the 2021 Inc. 5000 Vision Conference. Entrepreneurship, he adds, is like “running really fast through the fog,” so the best thing you can do is equip yourself with learned wisdom from others who have been down the path before you.

Hoffman, who today is a partner at the venture capital firm Greylock, has had a hand in many fast-growth companies that have achieved enormous scale. In addition to LinkedIn, he was a top executive at PayPal, along with Peter Thiel, Elon Musk, and others who’ve gone on to become household names. And he’s been an investor in Facebook and Airbnb, among others.

Hoffman also is a three-time bestselling author whose newest book, Masters of Scale: Surprising Truths From the World’s Most Successful Entrepreneurs, which he co-wrote with June Cohen and Deron Triff, builds on the success of their podcast by the same name. Both the podcast and the book feature stories and lessons drawn from deep interviews with dozens of famous founders, along with tales from Hoffman’s own career. In short: Few people understand the art of scaling a business better than Hoffman.

In his conference appearance, Hoffman highlighted a few of the top takeaways from the new book and discussed the ethics of Silicon Valley-style blitzscaling at a moment when the type of tech giants he has helped create have come under increasing scrutiny.

Beware unintended consequences

One of the most memorable moments of Hoffman’s presentation came when he addressed the ethical complications that can come when scaling as quickly as possible brings unintended consequences. Especially as a growing organization moves “from single-threaded to multi-threaded,” Hoffman says, it can be hard as a leader to both maintain the speed to scale and keep on top of all the new threads–let alone anticipate all potential scenarios.

He recommends hiring “somebody whose responsibility is to say, ‘What could possibly go wrong? What would have the wrong impact with our customers or with society, and what are the things we could do now to prep against it?'” Nothing is fail-safe, he cautions, but the more you think ahead, the more nimbly you can respond when necessary–“because if things start going wrong at scale, that can be even more challenging.”

Let some fires burn

As Hoffman knows well, running a fast-growth company can feel like an exercise in constant crisis management. Rather than trying to put out every fire immediately, he advises, establish a triage system that allows you to, in his words, “let some fires burn.” An entrepreneur should ask herself a series of questions: “Which thing is most likely to kill us first, or limit our scale? Which thing, if we don’t start now, won’t be controllable later?”

The answers aren’t always obvious, he points out–some fires, though harder to control later, will be manageable because you’ll have more resources as you grow. “Generally speaking, you have a limited amount of resources to focus on some fires,” he says. “If you try to do them all at the same time, maybe you won’t get any of them sufficiently.”

It all comes back to mission

It’s not enough, Hoffman says, for your company to provide jobs or for people to love your product. “Those are important things, true, but sometimes your product might be questionable–like cigarettes.” So you should also ask, “Why is society better with your product in it?”–and invest in growing that direction.

That isn’t anti-business, he adds, it’s long-term brand building. It builds cohesion and clarifies decision-making in the company. It’s great for attracting talent. “It can be great capitalism. I think it’s really fundamental to great entrepreneurship and helps through the entire company,” he says.

By Tom Foster, Editor-at-large, Inc.@tomfoster2

Source: LinkedIn Co-Founder Reid Hoffman on ‘Blitzscaling’ and Unintended Consequences | Inc.com

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3 Bonding Exercises Businesses Are Using To Combat The Great Resignation

Quirky activities can improve employee retention and company culture, according to Inc. 5000 CEOs. It’s cheesy, but it works. So says Frank B. Mengert, founder and CEO of ebm, a North Haven, Connecticut-based benefits and HR tech company, about his company’s weekly video call, known as “Friday Vibes.” The one rule: You can talk about anything but work.

These unconventional meetings–ebm’s sometimes involve games like Two Truths and a Lie–have helped reduce turnover in the company since they started them in May 2020. At a time when employees are quitting in record numbers and rotating through workplaces without ever meeting co-workers in-person, such bonding activities can potentially improve team dynamics, says Timothy Golden, professor at Rensselaer Polytechnic Institute’s Lally School of Management and a longtime researcher of remote work.

From Inc. 5000 CEOs, here are three ways to forge bonds between team members in your still-virtual workplace.

1. “Anything but work” check-ins

Consistency is crucial to Friday Vibes, Mengert says. Every Friday at 4 p.m., anywhere from half to all of ebm’s 47 employees hang out on one Zoom call and chat about non-work topics or play games, especially with new hires. Most Friday Vibes go over the allotted time, he adds. Serious topics like mental health come up sometimes, or the team might spend the whole hour discussing types of cars they’ve driven before.

A couple of months into the pandemic, the team at Burlingame, California-based gaming and strategy research firm IDG Consulting started to look a little haggard, says CEO and president Yoshio Osaki. The 11-person company went remote in 2018 but over time, IDG employees lost an element of interpersonal connection. “We were our own little islands,” he says.

When the pandemic hit and people started going through lockdowns and additional childcare stress, Osaki finally realized that since the company went remote he had been checking in on what people were doing, not how they were doing. And morale seemed to be taking a hit as a result.

That’s actually pretty common in a remote environment, Golden says. People tend to be more task-oriented than relationship-oriented, so managers have to find ways to rebuild interpersonal trust and rapport virtually. Osaki’s solution was to implement a 30-minute mandatory non-work chat every other week (it’s since expanded to 60 minutes).

The calls provided fun bonding time, but some turned less lighthearted. Osaki realized that some employees needed additional help and added an annual $1,000 self-care stipend to make it easier to pay for things like therapy. He learned an employee had back pain and bought them an ergonomic chair.

Another had gotten into building computers, so they bought him some tools, and he ended up building one for their data scientist. And beyond the insight on employees’ needs, Osaki says, “We saw an increase in productivity as well as creativity.” In sum, starting the chat has been an important factor in making 2021 a record year for IDG’s revenue.

2. Gratitude sharing

Telling your employees you appreciate them seems like obvious advice–but helping them do it in structured ways helps you keep from losing them, according to Keegan Caldwell, founder and managing partner of Boston-based Caldwell Intellectual Property Law. Every Friday at noon, employees share whom they’ve been grateful for over the last week.

“What we found was this was the most important meeting for us to have,” Caldwell says. He started it three years ago, inspired by his 12-step recovery process and his ability to make it through the associated challenges. Since then, he estimates, it’s improved retention by 10 percent.

For Boston-based Winthrop Wealth and CEO Max Winthrop, it’s about the “small wins.” On their morning call, the team has the option to share their tiny victories, like putting in extra effort to help a client’s family after their spouse died. The company started it after doing a workshop in the fall of 2020 with self-actualization and sharing activities–and Winthrop hasn’t lost an employee since. It also helps him keep perspective as a leader, he says: “The small contributions add up to the greater success.”

3. Games and experiences

Every month or so, employees at government IT contractor Kech play bingo and Pictionary, compete for who has the cutest pet photo, or speculate about how they would survive a zombie apocalypse. Chris Carpenter, the Williamsburg, Kentucky-based company’s CEO and co-founder, likes to mix it up. Her company, which operates call centers for government services, had high turnover before the pandemic. But she says she’s managed to keep a core group of employees by adding fun and human connection into their workdays.

Most events come with prizes, and Carpenter estimates she spends $2,000 on gift cards a year for the winners. She organizes them herself and regularly gets messages from employees asking when the next game will be.

When it comes to games, pick something that is collaborative rather than competitive to boost organizational cohesion, says Sean Newman, a visiting professor at Rollins College and senior vice president of operations at London-based financial services firm Aon. And try to use bonding activities or games to build up relationships between specific employees. “To the extent that your games can show the manager really cares and establish that relationship… it can be a real positive outcome for retention,” he says.

Games and more elaborate, planned events can help avoid the dreaded Zoom happy hour, says Jonathan Conelias, CEO of Boston-based ReElivate, which provides virtual experiences for clients including Amazon and Google. His advice: Try to plan something special and interesting that gives employees a shared experience to refer to, like an escape room.

Lauren Greenwood’s company, YouCopia, which is based in Chicago and provides organizational home goods for consumers, simply does  “welcome lunches”  on the first day for new hires with three weird questions for everyone else to answer. (The meals were virtual for part of the pandemic but now are in-person for smaller groups.) If you’re too busy to organize creative bonding activities–or it’s just not your thing–hire someone to handle it, she advises.

By Gabrielle Bienasz, Editorial assistant, Inc.@gbienasz

Source: 3 Bonding Exercises Businesses Are Using to Combat The Great Resignation | Inc.com

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The World’s Newest Call Center Billionaire

Meet the world’s newest call center billionaire. Laurent Junique is quite the globe-trotter: He’s a French citizen, his company is based in Singapore and he just listed that company, TDCX Inc., on the New York Stock Exchange last week.

Junique, TDCX’s 55-year-old founder and CEO, also just joined the billionaire ranks: Junique’s 87% stake in the firm is now worth $3 billion, thanks to a 34% rise in TDCX shares since the IPO on October 1—an offering that raised nearly $350 million for the company.

Started in 1995 in Singapore as Teledirect, an outsourced call center that handled calls, emails and faxes for a variety of clients, the company rebranded as TDCX in 2019 to reflect its expansion into a range of services including content moderation, marketing and e-commerce support. (CX is short for “customer experience” in the customer service industry.)

TDCX reported a $64 million net profit on $323 million sales in 2020, an improvement from the $54 million profit and $242 million in revenues it recorded in 2019. That growth came in part due to greater use of the services that TDCX offers, including tools that help companies improve the performance of employees working from home. Still, TDCX is highly dependent on two clients—Facebook and Airbnb—which collectively accounted for 62% of sales in 2020.

“Our successful listing reflects the world-class company that we have built and our position as the go-to partner for transformative digital customer experience services,” Junique said in a statement on the day of the IPO. “We are grateful for the support of our clients, many of whom are global technology companies that are fuelling the growth of the digital economy.”

Junique is the second call center billionaire that Forbes has tracked. The first, Kenneth Tuchman, founded Englewood, Colorado-based TTEC Holdings (formerly called TeleTech), in 1982; at nearly $2 billion, the firm had about six times the revenues of TDCX last year. Tuchman first became a billionaire in 2007. Several Indian billionaires, including HCL Technologies cofounder Shiv Nadar and Wipro’s former chairman Azim Premji, offer call centers as some of the services their firms provide.

Junique will maintain an iron grip on TDCX as a public company, controlling all of the firm’s Class B shares, which make up more than 86% of the firm’s equity and represent 98.5% of voting power. He owns those shares through Transformative Investments Pte Ltd, a company based in the Cayman Islands that is entirely owned—according to public filings with the Securities and Exchange Commission—by a trust established for the benefit of Junique and his family. While its headquarters are in Singapore, TDCX has also been incorporated in the Cayman Islands since April 2020; prior to the IPO, the firm was controlled by Junique through a Caymans-based holding company. A spokesperson for TDCX declined to comment.

Before launching TDCX as a 29-year-old in 1995, the French native cut his teeth studying advertising at the École Supérieure de Publicité in Paris and business administration at the nearby École Supérieure Internationale d’Administration des Entreprises, graduating in 1989. After a two-year stint at consumer goods giant Unilever, Junique—who had reportedly been cooking up business ideas since he was a child, including a glass recycling proposal he came up with at age 13—decided he wanted a more international career, but struggled to find a gig as a young graduate with little experience.

Armed with a suitcase and just enough cash to get by, he decamped to Singapore in 1995 to try his luck on the other side of the planet. Singapore offered a strategic location as a modern, English-speaking city at the heart of fast-growing Southeast Asia, and Junique started a call center called Teledirect aimed at businesses looking to cut costs and outsource customer service. Soon enough, Junique scored the firm’s first big client, an American credit card firm based in Singapore.

Two years later, in 1997, Junique sold a 40% stake in Teledirect to London-based advertising giant WPP for an undisclosed amount. Since then, TDCX expanded beyond call centers and now has offices in 11 countries across three continents, including locations in China, Japan and India. In 2018, Junique bought back WPP’s 40% stake in the call center business for about $28 million. Three years of growth later, the company now has a market capitalization of $3.5 billion.

With 2020 marking a record year for TDCX, Junique is hoping that the Covid-induced transition away from offices has made the firm’s products more necessary for its clients. “As consumers live more and more of their lives online, the expectation for things to be done simply, conveniently and on-demand will only increase,” Junique said in a statement.

Follow me on Twitter or LinkedIn. Send me a secure tip.

I’m a Staff Writer on the Wealth team at Forbes, covering billionaires and their wealth. My reporting has led me to an S&P 500 tech firm in the plains of Oklahoma; a

Source: The World’s Newest Call Center Billionaire

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Related Contents:

“BBC Three – The Call Centre, Series 1”. Bbc.co.uk. 2013-12-10. Retrieved 2017-12-10.

SPAC Success Can Hinge on This Single Factor

For founders looking to take their company public, special purpose acquisition companies (SPACs) offer a less risky, shorter alternative to traditional IPOs, if a few best practices are observed. In a SPAC, companies are formed in order to raise capital in an initial public offering and then uses the cash to acquire a private company, thereby taking it public, usually within a two-year time frame.

The process recently has become popular, especially because SPACs allow founders to avoid the extensive disclosures mandated by the traditional IPO process. Often, SPAC investors don’t even know the startup they will be acquiring–earning SPACs the nickname of “blank-check companies.” In 2021, there were 30 percent more SPAC issuances than traditional IPOs, according to The Financial Times.

But if you’re considering a blank-check deal, keep in mind that there’s one factor that is the best determinant of success. According to Wolfe Research, SPACs led by “experienced operators,” or CEOs with direct operating experience in the industry of the company being acquired, had greater returns on average than those that did not. The research found that just one year out, SPACs with experienced operators averaged a 73 percent rally, whereas those lacking an industry veteran suffered a 14 percent loss on average.

As reported by CNBC, a rather volatile market led some SPAC deals to unravel, causing companies to settle for less-than-optimal targets or change the deal all together. For this reason, the U.S. Securities and Exchange Commission warned investors in March to re-consider putting money in SPACs, especially those run by celebrities.

“It is never a good idea to invest in a SPAC just because someone famous sponsors or invests in it or says it is a good investment,” the SEC wrote on its website. That’s why if you’re considering a SPAC, don’t be swayed by big dollar amounts or celebrity names. Instead, think carefully about the experience that the blank-check company leaders are bringing to the table.

By Brit Morse, Assistant editor, Inc.

Source: SPAC Success Can Hinge on This Single Factor | Inc.com

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Critics:

Special Purpose Acquisition Company  also known as a “blank check company“, is a shell corporation listed on a stock exchange with the purpose of acquiring a private company, thus making it public without going through the traditional initial public offering process. According to the U.S. Securities and Exchange Commission (SEC), “A SPAC is created specifically to pool funds in order to finance a merger or acquisition opportunity within a set timeframe. The opportunity usually has yet to be identified”. SPACs raised a record $82 billion in 2020, a period sometimes referred to as the “blank check boom”.

Because a SPAC is registered with the SEC and is a publicly-traded company, the general public can buy its shares before the merger or acquisition takes place. For this reason they’ve been referred to as the ‘poor man’s private equity funds.’

Academic analysis shows the investor returns on SPACs post-merger are almost uniformly heavily negative (however, sponsors at the flotation of the SPAC can earn excess returns), and their proliferation usually accelerates around periods of economic bubbles, such as the everything bubble in 2020–2021, when the volume and quantity of capital raised by SPACs set new all-time records.

SPACs generally trade as units and/or as separate common shares and warrants on the Nasdaq and New York Stock Exchange (as of 2008) once the public offering has been declared effective by the SEC, distinguishing the SPAC from a blank check company formed under SEC Rule 419. Commonly, units are denoted with the letter “u” (for unit) appended to the ticker symbol of SPAC shares.

Trading liquidity of the SPAC’s securities provide investors with a flexible exit strategy. In addition, the public currency enhances the position of the SPAC when negotiating a business combination with a potential merger or acquisition target. The common share price must be added to the trading price of the warrants to get an accurate picture of the SPAC’s performance.

References

High Turnover? Here Are 3 Things CEOs Do That Sabotage Their Workplace Culture

She has one too many deadlines to deal with

Every CEO wants long-standing employees, but their ineffective leadership causes organizational stress that cripples the workplace culture. Quite often, we read articles or hear of CEOs abusing their power and tarnishing their company’s reputation.

This is due to them neglecting feedback from their team and making decisions based solely on their own judgement. Not only does this erode trust, but it sets a standard that employee and leadership voices are not welcome.

When employees are taken care of, they go above and beyond to drive the company forward. Conversely, when they don’t feel valued, appreciated or kept in the loop, employees quickly become disengaged. The cost of a disengaged employee impacts more than the bottom line.

It decreases productivity, creates negative client experiences and destroys the company culture, to name a few. According to a Gallup survey, the State of the American Workplace 2021, 80% of workers are not fully engaged or are actively disengaged at work.

While CEOs claim to embody a people-first and feedback-driven culture, they believe, due to their position, that they know better than everyone else. Todd Ramlin, manager of Cable Compare, said, “if a person is fortunate to have the opportunity to be a CEO, they need to ask themselves if they can live by the company values, expectations, rules and processes that are in place.” They can’t pick and choose which rules and processes to abide by, yet punish others when they do the same. Doing so cultivates a toxic workplace and demonstrates poor leadership.

Here are three things CEOs do that sabotage their workplace culture.

Embraces Data, Dodges Emotions

The workplace is made up of a diverse group of experiences and perspectives. CEOs who lack the emotional intelligence to understand another person’s viewpoint or situation will find themselves losing their most valuable people. Sabine Saadeh, financial trading and asset management expert, said, “companies that are only data driven and don’t care about the well-being of their employees will not sustain in today’s global economy.”

Businessolver’s 2021 State Of Workplace Empathy report, revealed that “68% of CEOs fear that they’ll be less respected if they show empathy in the workplace.” CEOs who fail to lead with empathy will find themselves with a revolving door of leadership team members and employees. I once had a CEO tell me that he didn’t want emotions present in his business because it created a distraction from the data. His motto was, “if it’s not data, it’s worthless”.

As such, he disregarded feedback of employee dissatisfaction and burnout. Yet, he couldn’t understand why the average tenure of his employees very rarely surpassed one year. Willie Greer, founder of The Product Analyst, asserted, “data is trash if you’re replacing workers because you care more about data than your people.”

Micromanages Their Leadership Team

One of the ways a CEO sabotages a company’s culture is by micromanaging their leadership team. Consequently, this leads to leadership having to micromanage their own team to satisfy the CEOs unrealistic expectations. When leadership feels disempowered to make decisions, they either pursue another opportunity or check out due to not being motivated to achieve company goals.

As such, the executives who were hired to bring change aren’t able to live up to their full potential. Moreover, they’re unable to make the impact they desired due to the CEOs lack of trust in them. Employees undoubtedly feel the stress of their leadership team as it reverberates across the company.

Arun Grewal, founder and Editor-in-chief at Coffee Breaking Pr0, said, most CEOs are specialists in one area or another, which can make them very particular. However, if they want to drive their company forward they need to trust in the experts they hired rather than trying to make all of the company’s decisions.

At one point during my career, I reported to a CEO who never allowed me to fully take over my department. Although he praised me for my HR expertise during the interview, once hired, I quickly realized he still wanted full control over my department. Despite not having HR experience, he disregarded everything I brought to the table to help his company.

I soon began questioning my own abilities. No matter how hard I tried to shield my team from the stress I endured, the CEO would reach out to them directly to micromanage their every move. This left our entire department feeling drained, demoralized and demotivated. Sara Bernier, founder of Born for Pets, said, “CEOs who meddle in the smallest of tasks chip away at the fundamentals of their own company because everything has to run through them”. She added, “this eliminates the employee’s ownership of their own work because all tasks are micromanaged by the CEO.

Neglects Valuable Employee Feedback

Instead of seeking feedback from their leadership team or employees, CEOs avoid it altogether. Eropa Stein, founder and CEO of Hyre, said, “making mistakes and getting negative feedback from your team is a normal part of leading a company, no matter how long you’ve been in business.”

She went on, “as a leader, it’s important to put your ego aside and listen to feedback that will help your business grow. If everyone agrees with you all the time, you’re creating a cult mentality that’ll be detrimental to your business’ success in the long run.” This results in a toxic and unproductive workplace culture.

What’s worse than avoiding constructive feedback is receiving it and disregarding it entirely. Neglecting valuable feedback constructs a company culture where no individual feels safe voicing their concerns. Rather than silence those who give negative feedback, CEOs should embrace them. These are the individuals who are bringing issues forward to turn them into strengths in an effort to create a stronger company.

Follow me on Twitter or LinkedIn. Check out my website.

I’m a Leadership Coach & Workplace Culture Consultant at Heidi Lynne Consulting helping individuals and organizations gain the confidence to become better leaders for themselves and their teams. As a consultant, I deliver and implement strategies to develop current talent and create impactful and engaging employee experiences. Companies hire me to to speak, coach, consult and train their teams and organizations of all sizes. I’ve gained a breadth of knowledge working internationally in Europe, America and Asia. I use my global expertise to provide virtual and in-person consulting and leadership coaching to the students at Babson College, Ivy League students and my global network. I’m a black belt in Six Sigma, former Society of Human Resources (SHRM) President and domestic violence mentor. Learn more at http://www.heidilynneco.com or get in touch at Heidi@heidilynneco.com.

Source: High Turnover? Here Are 3 Things CEOs Do That Sabotage Their Workplace Culture

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Critics:

Organizational culture refers to culture in any type of organization including that of schools, universities, not-for-profit groups, government agencies, or business entities. In business, terms such as corporate culture and company culture are often used to refer to a similar concept.

The term corporate culture became widely known in the business world in the late 1980s and early 1990s. Corporate culture was already used by managers, sociologists, and organizational theorists by the beginning of the 80s. The related idea of organizational climate emerged in the 1960s and 70s, and the terms are now somewhat overlapping,as climate is one aspect of culture that focuses primarily on the behaviors encouraged by the organization

If organizational culture is seen as something that characterizes an organization, it can be manipulated and altered depending on leadership and members. Culture as root metaphor sees the organization as its culture, created through communication and symbols, or competing metaphors. Culture is basic, with personal experience producing a variety of perspectives.

Most of the criticism comes from the writers in critical management studies who for example express skepticism about the functionalist and unitarist views about culture that are put forward by mainstream management writers. They stress the ways in which these cultural assumptions can stifle dissent towards management and reproduce propaganda and ideology. They suggest that organizations do not encompass a single culture, and cultural engineering may not reflect the interests of all stakeholders within an organization.

References

  • Schein, E. H. (1990). Organizational culture. American Psychologist, 45, 109–119. doi:10.1037/0003-066X.45.2.109
  • Compare: Hatch, Mary Jo; Cunliffe, Ann L. (2013) [1997]. “A history of organizational culture in organization theory”. Organization Theory: Modern, Symbolic and Postmodern Perspectives (2 ed.). Oxford: Oxford University Press. p. 161. ISBN 9780199640379. OCLC 809554483. Retrieved 7 June 2020. With the publication of his book The Changing Culture of a Factory in 1952, British sociologist Elliott Jaques became the first organization theorist to describe an organizational culture.
  • Jaques, Elliott (1951). The changing culture of a factory. Tavistock Institute of Human Relations. [London]: Tavistock Publications. p. 251. ISBN 978-0415264426. OCLC 300631.
  • Compare: Kummerow, Elizabeth (12 September 2013). Organisational culture : concept, context, and measurement. Kirby, Neil.; Ying, Lee Xin. New Jersey. p. 13. ISBN 9789812837837. OCLC 868980134. Jacques [sic], a Canadian psychoanalyst and organisational psychologist, made a major contribution […] with his detailed study of Glacier Metals, a medium-sized British manufacturing company.
  • Ravasi, D.; Schultz, M. (2006). “Responding to organizational identity threats: Exploring the role of organizational culture”. Academy of Management Journal. 49 (3): 433–458. CiteSeerX 10.1.1.472.2754. doi:10.5465/amj.2006.21794663.
  • Schein, Edgar H. (2004). Organizational culture and leadership (3rd ed.). San Francisco: Jossey-Bass. pp. 26–33. ISBN 0787968455. OCLC 54407721.
  • Schrodt, P (2002). “The relationship between organizational identification and organizational culture: Employee perceptions of culture and identification in a retail sales organization”. Communication Studies. 53 (2): 189–202. doi:10.1080/10510970209388584. S2CID 143645350.
  • Schein, Edgar (1992). Organizational Culture and Leadership: A Dynamic View. San Francisco, CA: Jossey-Bass. pp. 9.
  • Deal T. E. and Kennedy, A. A. (1982, 2000) Corporate Cultures: The Rites and Rituals of Corporate Life, Harmondsworth, Penguin Books, 1982; reissue Perseus Books, 2000
  • Kotter, J. P.; Heskett, James L. (1992). Corporate Culture and Performance. New York: The Free Press. ISBN 978-0-02-918467-7.
  • Selart, Marcus; Schei, Vidar (2011): “Organizational Culture”. In: Mark A. Runco and Steven R. Pritzker (eds.): Encyclopedia of Creativity, 2nd edition, vol. 2. San Diego: Academic Press, pp. 193–196.
  • Compare: Flamholtz, Eric G.; Randle, Yvonne (2011). Corporate Culture: The Ultimate Strategic Asset. Stanford Business Books. Stanford, California: Stanford University Press. p. 6. ISBN 9780804777544. Retrieved 2018-10-25. […] in a very real sense, corporate culture can be thought of as a company’s ‘personality’.
  • Compare: Flamholtz, Eric; Randle, Yvonne (2014). “13: Implications of organizational Life Cycles for Corporate Culture and Climate”. In Schneider, Benjamin; Barbera, Karen M. (eds.). The Oxford Handbook of Organizational Climate and Culture. Oxford Library of psychology. Oxford: Oxford University Press. p. 247. ISBN 9780199860715. Retrieved 2018-10-25. The essence of corporate culture, then, is the values, beliefs, and norms or behavioral practices that emerge in an organization. In this sense, organizational culture is the personality of the organization.
  • Compare: Flamholtz, Eric; Randle, Yvonne (2014). “13: Implications of organizational Life Cycles for Corporate Culture and Climate”. In Schneider, Benjamin; Barbera, Karen M. (eds.). The Oxford Handbook of Organizational Climate and Culture. Oxford Library of psychology. Oxford: Oxford University Press. p. 247. ISBN 9780199860715. Retrieved 2018-10-25. The essence of corporate culture, then, is the values, beliefs, and norms or behavioral practices that emerge in an organization.
  • Jaques, Elliott (1998). Requisite organization : a total system for effective managerial organization and managerial leadership for the 21st century (Rev. 2nd ed.). Arlington, VA: Cason Hall. ISBN 978-1886436039. OCLC 36162684.
  • Jaques, Elliott (2017). “Leadership and Organizational Values”. Requisite Organization: A Total System for Effective Managerial Organization and Managerial Leadership for the 21st Century (2 ed.). Routledge. ISBN 9781351551311. Retrieved 7 June 2020.
  • “Culture is everything,” said Lou Gerstner, the CEO who pulled IBM from near ruin in the 1990s.”, Culture Clash: When Corporate Culture Fights Strategy, It Can Cost You Archived 2011-11-10 at the Wayback Machine, knowmgmt, Arizona State University, March 30, 2011
  • Unlike many expressions that emerge in business jargon, the term spread to newspapers and magazines. Few usage experts object to the term. Over 80 percent of usage experts accept the sentence The new management style is a reversal of GE’s traditional corporate culture, in which virtually everything the company does is measured in some form and filed away somewhere.”, The American Heritage® Dictionary of the English Language, Fourth Edition copyright ©2000 by Houghton Mifflin Company. Updated in 2009. Published by Houghton Mifflin Company.
  • One of the first to point to the importance of culture for organizational analysis and the intersection of culture theory and organization theory is Linda Smircich in her article Concepts of Culture and Organizational Analysis in 1983. See Smircich, Linda (1983). “Concepts of Culture and Organizational Analysis”. Administrative Science Quarterly. 28 (3): 339–358. doi:10.2307/2392246. hdl:10983/26094. JSTOR 2392246.
  • “The term “Corporate Culture” is fast losing the academic ring it once had among U.S. manager. Sociologists and anthropologists popularized the word “culture” in its technical sense, which describes overall behavior patterns in groups. But corporate managers, untrained in sociology jargon, found it difficult to use the term unselfconsciously.” in Phillip Farish, Career Talk: Corporate Culture, Hispanic Engineer, issue 1, year 1, 1982
  • Halpin, A. W., & Croft, D. B. (1963). The organizational climate of schools. Chicago: Midwest Administration Center of the University of Chicago.
  • Fred C. Lunenburg, Allan C. Ornstein, Educational Administration: Concepts and Practices, Cengage Learning, 2011, pp. 67
  • “What Is Organizational Climate?”. paulspector.com. Retrieved 2021-05-01.

5 Questions to Ask Before Including Services in Your Bootstrapping Strategy

Most tech entrepreneurs these days stay away from services because investors are looking for high-margin, repeatable revenue. Service revenues don’t command the same multiples that product revenues do.

When I decided to bootstrap my startup, I never expected to be selling professional services. I quickly learned, however, that offering services tied to your product can be incredibly useful when bootstrapping. When my company started offering design and development services utilizing our low-code development platform, these services led to high-margin recurring revenue and greatly improved unit economics. These services also drove a tremendous amount of customer success.

But, service offerings are not for everyone. Here are a few questions you should ask yourself in order to determine whether services should be part of your bootstrapping efforts.

Related: 5 Reasons Bootstrapping Your Business is the Best Thing You Can Do

Do the services have good margins?

For bootstrapping to work, you need a healthy margin. At one of the companies I founded, our professional services were a necessary element of customer onboarding since product implementation was incredibly complex and not self-service.

Our professional services margin was -20%, which eroded our cash significantly. In this instance, service was not a revenue center but a loss leader — something we had to offer to secure the more valuable recurring revenue. If you find yourself in the same boat, services will never be a viable bootstrapping strategy. They could, however, be a tool you utilize to drive the rapid growth of recurring revenues.

Does the market/customer want the services?

Many products simply can’t be used by most people without a services component. At my company, we found that even though our low-code development platform could be utilized by people with minimal coding expertise, certain segments of our user base simply didn’t have the inclination to build their solution on our platform. We also discovered that even with powerful tools, many people wanted to leverage the expertise of an experienced software design team.

This prompted us to spin up a services team that could charge for design and development as an initial project and even provide ongoing development services on a monthly basis. Going this route is driving a three-to-six month payback on and marketing investment for us. Do these types of opportunities exist for you?

Related: 7 Ways to Bootstrap Your Business to Success

Can your service offering eventually be outsourced to an ecosystem of providers?

Services can serve as a bridge to help fund platform losses up to a point where outsiders can take over. Building an ecosystem can create an awesome flywheel effect, whereby participants not only become service providers but a channel for bringing in new product sales — without the expense of having to add to your own sales team.

Salesforce and Workday both did a brilliant job of executing this strategy. Ideally your product will gain enough acceptance that you can sell off your services division for additional profit.

Do services provide you with more customer intimacy and enhance your retention metrics?

A customer’s switching costs go way up when there is both a human and technological connection to your product and services. This sort of intimacy can provide a significant boost to your retention metrics and ensure predictable revenue.

Having great people to support clients can make up for early product deficiencies and create a level of trust that a pure low-touch product cannot. This is especially important in the early days of any startup’s product lifecycle.

Related: What Nobody Tells You About Taking VC Money

Can bootstrapping with services strengthen your product development?

Launching a services division also provides another benefit: the chance for you to “eat your own dogfood.” It’s a fact that when employees use their own product, it gets markedly better. At my company, we rotate core team members in and out of the professional services team to ensure every engineer feels what our customers feel. I believe this leads to product brilliance.

Now I’m not advocating you become a services company, but having a product company with a service business could stave off having to secure venture backing before your product is more mature. This can help you avoid things like dilution, a loss of control and the pressure to grow fast for a speedy exit.

As someone who’s previously founded two venture-backed startups, I like how bootstrapping with services is allowing my company to grow more thoughtfully. We have time to think about product/market fit before scaling up, we’re not pursuing growth rates that our platform can’t support, we’re making smart hires and we’re scrutinizing the ROI of all of our expenses because every dollar counts.

Additionally, we are vetting the utility of our own product with real-life customers and creating a virtuous circle of feedback to drive new features. I feel like it’s the smarter way to evolve a business like ours — building a company for the long haul versus hitting some arbitrary goal to secure additional venture capital.

There is one important consideration before bootstrapping with services: You’ll want to make sure you’re growing (albeit at a deliberate pace) and not just treading water. That’s why the above questions are something you’ll want to consider before following my lead. It’s critical you feel confident that you’ll create enough runway and customer success for your ultimate business model to take shape, while not letting services become a distraction.

By:

Source: 5 Questions to Ask Before Including Services in Your Bootstrapping Strategy

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Critics:

In computer technology the term bootstrapping, refers to language compilers that are able to be coded in the same language. (For example, a C compiler is now written in the C language. Once the basic compiler is written, improvements can be iteratively made, thus pulling the language up by its bootstraps) Also, booting usually refers to the process of loading the basic software into the memory of a computer after power-on or general reset, the kernel will load the operating system which will then take care of loading other device drivers and software as needed.

Bootstrapping can also refer to the development of successively more complex, faster programming environments. The simplest environment will be, perhaps, a very basic text editor (e.g., ed) and an assembler program. Using these tools, one can write a more complex text editor, and a simple compiler for a higher-level language and so on, until one can have a graphical IDE and an extremely high-level programming language.

Historically, bootstrapping also refers to an early technique for computer program development on new hardware. The technique described in this paragraph has been replaced by the use of a cross compiler executed by a pre-existing computer. Bootstrapping in program development began during the 1950s when each program was constructed on paper in decimal code or in binary code, bit by bit (1s and 0s), because there was no high-level computer language, no compiler, no assembler, and no linker.

A tiny assembler program was hand-coded for a new computer (for example the IBM 650) which converted a few instructions into binary or decimal code: A1. This simple assembler program was then rewritten in its just-defined assembly language but with extensions that would enable the use of some additional mnemonics for more complex operation codes.

The enhanced assembler’s source program was then assembled by its predecessor’s executable (A1) into binary or decimal code to give A2, and the cycle repeated (now with those enhancements available), until the entire instruction set was coded, branch addresses were automatically calculated, and other conveniences (such as conditional assembly, macros, optimisations, etc.) established. This was how the early assembly program SOAP (Symbolic Optimal Assembly Program) was developed. Compilers, linkers, loaders, and utilities were then coded in assembly language, further continuing the bootstrapping process of developing complex software systems by using simpler software.

See also

 

Break The Five Most Common Outsourcing Reform Myths

Break the five most common outsourcing reform myths

With 41 days to comply with the new regulation on Outsourcing, which comes into force on July 24, five myths prevail among Mexican companies. The new regulatory framework applies to companies of all sizes, however, SMEs are under more pressure because they do not have great internal support or consulting firms to carry out this transition.

In addition to the rush to comply with the new regulations, it must be taken into account that there is some confusion about the functions that can continue to be contracted through outsourcing. For SMEs, companies from 10 to 200 or 300 employees, internalizing the functions that were traditionally handled in outsourcing is complex and represents a challenge. Automation and support are key to successfully undergo this transformation and avoid the associated fines.

To dispel the main myths that exist regarding the new regulation, Business Republic organized a webinar to offer real facts and advice for the new regulation. At the event, Carlos Marina COO of Worky , Lorena Atondo and Gabriel Fernández, both from Reynoso & Atondo, Abogados, SC, agreed that this situation is significant, since it impacts more than 4.7 million workers, 17% of the formal jobs in the country.

And it is that urban myths and fake news abound that cause uncertainty and concern among clients and prospects, Carlos Marina warned.

The myths:

  1. “I can continue with my current outsourcing scheme, since the authority does not have the resources to detect it.”
  2. “I can avoid the new regulations by passing my collaborators to schemes of incorporation into the tax regime, fees, cooperatives or unions.”
  3. “We can pay a minimal amount in cash and the rest of the compensation can be handled through bonuses, commissions and vouchers.”
  4. “I don’t worry about the compensation schemes of the past, as there are no retroactive effects.”
  5. “The internalization of the payroll is too expensive, I better risk possible fines”

Each of these statements are not only false but risky. The specialists clarified that the new regulations are designed to improve the conditions of the workers and that in that spirit, the authority has organized itself to avoid precisely any act of simulation. At this juncture, solution providers have emerged that seem miraculous, but in reality only expose the company and its human capital to unnecessary risks.

Advice

“My advice to all employers is to take preventive measures to comply in a timely manner and to focus on the positive aspects that the internalization of staff brings in terms of employee satisfaction, loyalty, and company productivity,” commented Lorenia Atondo .

For his part, Gabriel Fernández, added that the sanctions are structured to promote broader compliance, since they range from 178,000 pesos to more than 4 million and even criminal sanctions are contemplated. It states, “The authority has full visibility of these myths and others, and is organized to detect and punish through mechanisms of collaboration between institutions and information exchange.”

The internalization of workers represents a change of capital dimensions for companies that currently depend on outsourcing for the management of their human resources. “For small and medium-sized companies, which do not have specialized departments or the support of consultants and law firms, this transition becomes even more delicate,” commented Marina, highlighting that Worky is dedicated precisely to companies with 20 and up to 200 employees for whom offers support throughout the internalization process with a 100% Mexican management platform designed to be affordable and relevant for this segment.

Hanz Dieter Schietekat, CEO of Business Republic and who moderated the event, ended the session by urging attendees to act promptly. “I hope it has become very clear that compliance with the new outsourcing standard is imminent and mandatory. Remember that if a solution sounds too good to be true, it probably is. With less than a month and a half remaining for compliance, it is imperative to have the right tools and advice. ”

By:

Source: Break the five most common outsourcing reform myths

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Critics:

Outsourcing is an agreement in which one company contracts a service bureau to be responsible for a planned or existing activity that is or could be done internally, and sometimes involves transferring employees and assets from one firm to another.

The term outsourcing, which came from the phrase outside resourcing, originated no later than 1981. The concept, which The Economist says has “made its presence felt since the time of the Second World War”,often involves the contracting of a business process (e.g., payroll processing, claims processing), operational, and/or non-core functions, such as manufacturing, facility management, call center/call centre support).

The practice of handing over control of public services to private enterprises, even if on a short-term limited basis,[7] may also be described as “outsourcing”.

Outsourcing includes both foreign and domestic contracting,and sometimes includes offshoring (relocating a business function to a distant country) or nearshoring (transferring a business process to a nearby country).

Offshoring and outsourcing are not mutually inclusive: there can be one without the other. They can be intertwined (offshore outsourcing), and can be individually or jointly, partially or completely reversed,involving terms such as reshoring, inshoring, and insourcing.

  • Offshoring is moving the work to a distant country. If the distant workplace is a foreign subsidiary/owned by the company, then the offshore operation is a captive, sometimes referred to as in-house offshore.
  • Offshore outsourcing is the practice of hiring an external organization to perform some business functions (“Outsourcing”) in a far-off country other than the one where the products or services are actually performed, developed or manufactured (“Offshore”).
  • Insourcing entails bringing processes handled by third-party firms in-house, and is sometimes accomplished via vertical integration.
  • Nearshoring refers to outsource to a nearby country.
  • Farmshoring refers to outsourcing to companies in more rural locations within the same country.
  • Homeshoring (also known as Homesourcing) is a form of IT-enabled “transfer of service industry employment from offices to home-based … with appropriate telephone and Internet facilities”.[16][17] These telecommuting positions may be customer-facing or back-office,and the workers may be employees or independent contractors.
  • In-housing refers to hiring employees.
  • An Intermediary is when a business provides a contract service to another organization while contracting out that same service.

See also

How to Spot Business Ideas Worth Pursuing

How to Spot Business Ideas Worth Pursuing

Nothing propels a company more quickly than innovation, and nothing stifles it more quickly than a “that’s how we’ve always done it” attitude. News startup Axios is an excellent example of a company breaking barriers and thinking outside the box. The company is making a big bet that other companies will pay to learn how to write like Axios reporters.

The new communications platform, AxiosHQ, launched in February and enables companies to send Axios-style, just-the-facts internal newsletters. Its cost? At least $10,000 annually. It remains to be seen whether executives will be willing to invest that kind of money, but it’s a fascinating proposition.

Related: Why Your Marketing Team Should Be Journalists

What does it take for organizations to vet, approve and develop similarly innovative ideas? The answer is not simple, and it varies from company to company. Innovation efforts get plenty of lip service, but it’s much harder to perfect a process for selecting and implementing top ideas.

No magic wand for innovation

In the same way that data-driven decisions run many aspects of an organization, leaders need to use data to create a rubric for vetting innovative ideas. This enforces discipline and keeps everyone on the same page.

Without an evaluation process, innovation programs become short-sighted and may fall out of alignment with long-term organizational goals. Having an organized process also removes emotion from decision-making to keep project focus and dollar spend as data-driven as possible.

For innovation to succeed, leaders also have to be aligned around critical factors. This forms a living rubric that can be adapted throughout the organization as business needs shift and evolve. Generally, some sort of innovation leader — a chief innovation officer, a chief strategy officer or a business unit leader — will lead this team to ensure the process runs smoothly and stays on track.

When we developed our rubric at Coplex, we struggled to find a technical solution that was flexible enough while still enabling us to manage our ideas. We ended up building one ourselves. We now use this tool to drive the underlying engine of our entire idea management process, and it works because effective innovation strategy always starts at the top. Bring your entire leadership team together from the beginning of the process to discuss priorities and foster conversations about ideas, outlining your concrete vision along the way.

Related: Did Someone Reject Your Idea? Because of Coronavirus, They Might Reconsider

Here are three ways to evaluate your innovation ideas and create a framework to make them a strategic reality:

1. Create an innovation blueprint

Before you begin to gather ideas from your team, you have to first come up with a blueprint — such as Google’s Eight Pillars of Innovation — that defines the initiative’s overall structure. This helps put up guardrails around the problem spaces the organization is willing to play in and, more importantly, which problem spaces are off-limits.

An innovation blueprint consists of three distinct components: statement, antithesis and thesis. Your statement defines your company’s ambitions and outlines why you believe in what you’re doing, why now is the best time to do it and what makes you the best candidate for the job.

From here, develop an antithesis that defines the problems, business models and core technologies you don’t intend to address. Why? It removes distractions and keeps the focus on priorities. Finally, create a thesis that gives you a clear lens into how you’ll invest in problem spaces, business models and technologies to create the change you want to see.

2. Define innovation themes

Once you’ve developed a solid blueprint, it’s time to identify the themes of problem spaces you intend to solve. This step will define the categories in which your innovation ideas should fall while clearly outlining how your solutions could come into play.

Think of this as similar to how the National Association of Engineers (NAE) outlines the many challenges left to overcome in its field. In its report on the grand challenges of engineering, NAE defines themes (e.g., joy, sustainability, health and security) as areas ripe for innovation and abundant with opportunity.

The core reason for taking this approach? It allows you to consider potential ways to innovate beyond what the organization had imagined before — and to set goals with those parameters in mind.

Related: What Sustainable Innovation Might Look Like in 2021

3. Map measurement criteria back to a rubric

Once you’ve defined your innovation themes, it’s time to develop the criteria you’ll use to measure your success. Global design firm IDEO made it a goal to quantify innovation by looking at its clients’ internal team dynamics as well as other companies focused on innovation.

The firm identified six areas key to innovation and then sent its survey, coined “Creative Difference,” to larger organizations to understand how team members were performing when it came to innovation. Once the survey was complete, IDEO sent results with tangible innovation metrics and recommendations on how to follow and meet them moving forward.

As you define how you measure innovation and create your unique rubric, keep in mind that you aren’t limited to traditional metrics. Feel comfortable being creative and innovative as you decide on those! It’s possible to measure everything from societal impact and economic value to organizational scale and new market discovery.

The process of pursuing innovative ideas requires much more than a quick brainstorming session or selecting an appealing idea from a list. By creating an underlying philosophy and structure governing the prioritization of ideas that flow through an organization, you can retain control over your innovation program’s outcomes instead of leaving anything to chance.

Business ideas that solve problems are fundamental to developing the world and companies such as Curemark are one of many who do this. Curemark is a biotech company founded by Joan Fallon, who noticed that a lot of the children she treated were low on an enzyme for processing protein and since then she has quit her job and has built Curemark to solve this problem. Curemark has now raised $50 million and is on its way to solving a problem that truly exists.

Profitability is a business’s ability to generate earnings compared to its costs over a certain period of time. This is possibly the most important aspect of any business idea in the long term, as this is what makes a business survive in order to keep having the impact that it has. Profitable ideas need a strong revenue stream against its costs and this tends to create the success of the business, however, some companies defy this and make losses to begin with, yet are still exceptional business ideas that are worth billions.

Brenda Schmidt

By: Brenda Schmidt / Entrepreneur Leadership Network Contributor

 

Source: How to Spot Business Ideas Worth Pursuing

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References

Newcomer, Eric (30 June 2015). “Uber bonds term sheet reveals $470 million in operating losses”. bloomberg.com. Retrieved 29 October 2015.

5 Essential Questions to Ask Before You Accept Any Job Offer

artistic image of two men shaking hands in an office space

You polished your résumé, dazzled them in interviews, and landed the job you’ve been chasing. You’ve finally received that coveted offer letter. But don’t get too excited yet.

“It’s sad to say that there are so many things you need to be aware of and careful of in something that should be very exciting for you,” says Kylie Cimmino, a consultant with HR consulting firm Red Clover HR. “But it’s about making sure that you’re covering yourself and you’re prepared for all of the minutiae that is included in that offer.”

So, before you answer your would-be employer with a resounding “Yes!” ask these five questions first:

Is this really the right position for you?

Paraphrasing actor Sally Fields’s iconic Oscar speech, it’s not uncommon to get caught up in the feeling of “They like me! They really like me!” and not think through whether this is truly the best job or offer for you. “Sometimes a job offer doesn’t fit, even though you applied for the role hoping it would. Take a moment and determine if this is really the job you are looking for,” says Paul Wolfe, senior vice president of human resources for Indeed.com.

Think about the role and how it fits into your career plans. And, if you haven’t already, look into the company and its culture to see if this is a place where you really want to work. Sites like Glassdoor, Indeed, and others have reviews by employees that give a glimpse into the strengths and weaknesses of the company. Use your personal and professional networks to get a sense of what it’s really like to work for the company. If you don’t know anyone personally, it’s likely you’re just a contact or two away from someone who can give you more insight, Wolfe says.

Are there contingencies or conditions?

Some offers are contingent on a variety of factors, including background or drug tests, reference checks, or willingness to sign a noncompete or other agreement. Review these contingencies carefully and consider whether any of them may surface issues from your past or may not be something to which you’re willing to agree, says Colleen Drennen Pfaller, founder of HR consulting firm A Slice of HR.

Sometimes, the contingencies are assumed and may not be in the offer letter, she says. “[If] it’s spelled out, great. But if it’s not, you want to follow up and ask,” she says. Certainly, have that conversation before you give notice at your current employer. For example, if there is a signing bonus, do you need to remain at the job a certain period of time to keep it or do you need to pay it back? These are all factors that you should understand before accepting the job offer.

If you suspect that something like a background check will reveal a potential issue, it may be a good idea to broach the topic first, or at least have an explanation ready if it comes up, Cimmino adds. For example, if you take a prescription medication that may show up in a drug test, be prepared to address the issue, she says.

Is everything you want in the offer?

Read the offer carefully to ensure that anything you negotiated is in it, Wolfe says. Or, if there are additional concessions or add-ons—for example, additional paid time off, moving allowance, subsidized parking, etc.—that you’re seeking, set up a time to talk with your prospective employer. “Negotiating terms of the offer is a standard practice. You want to ensure that everything you were promised or expected is in that letter before signing on the dotted line,” he adds. Once you’ve accepted the offer, it can be difficult to go back and claim that you’re due something that was previously discussed, but not formalized in the offer.

What is the timing?

In addition, be sure you understand details that will affect your transition from job to job, including timing, Cimmino says. If you’re not starting your new job for a few weeks or if there will be a gap between when you leave your old job and start the new one, think about how you will bridge any health insurance or payroll gap. Be sure you understand when you are eligible for benefits such as health insurance, 401(k), and time off at the new company.

What impact will this job have on my family?

If your new role will require changes in your lifestyle, salary, hours, or other factors that may affect your family members, include them in the discussion too. For example, if you’re taking a pay cut or if the job requires more travel or a move, such changes will affect your spouse and children. It’s a good idea to be sure everyone’s on board, Wolfe says.

“While ultimately, the decision whether to take a job is the candidate’s, in many cases, their decision impacts others around them,” he adds. “Take time to consider and talk with your family about how this new position impacts everyone.”


Gwen Moran is a writer, editor, and creator of Bloom Anywhere, a website for people who want to move up or move on. She writes about business, leadership, money, and assorted other topics for leading publications and websites. She’s been honored by the U.S. Small Business Administration, Small Business Influencer Awards, and a few others. Find her on Twitter @gwenmoran and on Instagram @bloom.anywhere.

Source: 5 Essential Questions to Ask Before You Accept Any Job Offer

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Critics:

Job analysis is crucial for first, helping individuals develop their careers, and also for helping organizations develop their employees in order to maximize talent. The outcomes of job analysis are key influences in designing learning, developing performance interventions, and improving processes.The application of job analysis techniques makes the implicit assumption that information about a job as it presently exists may be used to develop programs to recruit, select, train, and appraise people for the job as it will exist in the future.[5]

Job analysts are typically industrial-organizational (I-O) psychologists or human resource officers who have been trained by, and are acting under the supervision of an I-O psychologist. One of the first I-O psychologists to introduce job analysis was Morris Viteles. In 1922, he used job analysis in order to select employees for a trolley car company. Viteles’ techniques could then be applied to any other area of employment using the same process.

Job analysis was also conceptualized by two of the founders of I-O psychology, Frederick Winslow Taylor and Lillian Moller Gilbreth in the early 20th century. Since then, experts have presented many different systems to accomplish job analysis that have become increasingly detailed over the decades. However, evidence shows that the root purpose of job analysis, understanding the behavioral requirements of work, has not changed in over 85 years.

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References

Rogelberg, S.G. (2007). Encyclopedia of industrial and organizational psychology. Thousand Oaks, CA: Sage.

The 5 Biggest IT Mistakes Companies Make And How To Avoid Them

Young woman working at home

A new study released by research firm Gartner shows that employees are nearly two times more likely to pretend to be working when their employers use tracking systems to monitor their output. Gartner surveyed more than 2,400 professionals in January 2021.

Across the world, IT professionals are in charge of an increasing number of servers and data coming in from disparate sources, and they’re using way too many monitoring tools to make sense of it all. The Reducing Complexity in IT Infrastructure Monitoring: A Study of Global Organizations report by the Ponemon Institute sheds light on the challenges of troubleshooting and monitoring cloud and on-premises environments.

  • 24% said the handling of scale and complexity of IT infrastructure has improved
  • 29% said the ability to easily deploy and maintain server monitoring technologies has improved

The survey also found that while a significant percentage of IT practitioners are in charge of monitoring over 50 servers, only 33% felt that they could ensure performance and system availability with their current toolset. So how can IT effectively manage increasingly complex, hybrid environments, and what are the major missteps IT organizations can correct to build a more efficient approach to infrastructure monitoring and troubleshooting?

Here are some of the biggest IT mistakes companies of all sizes make — and how to avoid them.

Problem #1: Too Many Tools

Seventy percent of IT professionals in the survey said that using data to determine root cause slows them down — ingesting and normalizing data of differing formats and types is tedious and unmanageable, and it’s difficult to make real-time decisions. This is often because companies use too many monitoring tools for single layers of their IT stack, such as networks or applications, which creates silos and inefficiencies. When data lives inside one tool but can’t access or communicate with data confined to other tools, IT practitioners lose context on what’s happening in their environment because they’re seeing only a part of the picture.

The Solution: The solution to too many tools and disparate data is a single, scalable monitoring tool that provides end-to-end operational visibility into hybrid environments.

Problem #2: IT and Business Friction

As digital business infrastructure increases in complexity, IT teams feel more pressure than ever to reduce business-impacting incidents. When IT systems fail, the ramifications go beyond the immediate financial loss of downtime — a business could lose customers and jeopardize its reputation, a harsh reality that keeps IT teams up day and night. According to Ponemon’s research, 61 percent of IT professionals say that lack of system availability and poor performance creates friction between IT and lines of business.

The Solution

In addition to a solution that allows IT to find the root cause to identify service interruptions, IT and business need to work together to design business and technical requirements in tandem.

Problem #3: No Way to Easily Identify Root Cause

Across the globe, IT professionals spend their days identifying and fixing server environment problems. Indeed, the Ponemon survey found that the top two challenges of troubleshooting, monitoring and cloud migration are:

  • Lack of insights to quickly pinpoint issues and identify the root cause
  • Complexity and diversity of IT systems and technology

When IT can’t find and fix issues quickly, it has a direct effect on the business.

The Solution: For IT to quickly fix problems, they need a monitoring tool that can surface an issue’s root cause with an alert about where and why something is wrong. Issue resolution time can be cut in half with a monitoring solution that correlates metrics and logs, and provides visualizations of alerts, trends and logs in one place. Making sure your monitoring tool can enable those types of actions and resolution planning is critical for success.

Problem #4: The Wrong Skills to Manage Application Complexity

When Ponemon asked IT professionals about the biggest risks to their ability to troubleshoot, monitor and migrate to the cloud:

  • 55%  said the increasing complexity of applications running on infrastructure
  • 44%  said a lack of skills and expertise to deal with application complexity

As infrastructure grows and evolves, it becomes increasingly difficult for IT teams to successfully manage, monitor and troubleshoot systems. Couple that with an IT skills gap that makes it difficult for organizations to attract and retain qualified talent, and it becomes clear why IT teams feel nonstop pressure.

The Solution: To effectively troubleshoot, monitor and migrate to the cloud, you need a solid plan that takes future growth into account is necessary for smooth IT operations. Business and IT need to work together to create an IT environment roadmap, followed by a talent strategy that aligns to that plan. Be sure to:

  • Identify skills gaps and adjust hiring
  • Identify and train qualified employees for advancement
  • Include succession planning for inevitable changes

Problem #5: Lack of Visibility Throughout Cloud Migration

Sixty-eight percent of IT practitioners said that ensuring application performance and availability throughout cloud migration caused the most stress. Over half said both cost and the inability to monitor and troubleshoot applications were their biggest pain points.

As infrastructure increases in complexity, the core responsibilities of IT to monitor and measure remain the same. So how can IT achieve infrastructure visibility and workload insights when performance data spans diverse environments?

The Solution: It’s critical to monitor performance across hybrid architectures with a monitoring solution that collects and correlates data from every location. Full visibility is needed throughout the migration process, so choose an end-to-end monitoring tool that allows you to establish a pre-migration baseline, mid-migration insights and post-migration success.

Before cloud migration, measure the baseline user experience and performance, and define acceptable post-migration levels. To accurately validate a migration’s success, use the same monitoring tool throughout the migration process. A unified tool can analyze centralized data and provide better insights from dashboards and reports.

For more of the biggest IT mistakes and solutions and examples of companies that have solved the problem check out: 8 Biggest Mistakes IT Practitioners Make and How to Avoid Them.

Splunk Inc. turns data into doing with the Data-to-Everything Platform. Splunk technology is designed to investigate, monitor, analyze and act on data at any scale.

Source: The 5 Biggest IT Mistakes Companies Make And How To Avoid Them

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