This lecture looks at the changing landscape of human resources with crowd-sourced labour platforms rapidly coming online. Companies are beginning to tap into the crowd to solve complex technical problems and scientific questions using contests and challenges as incentives to generate multiple solutions. Crawford offers advice on how to protect intellectual property and manage digital talent while navigating through the connected workforce.
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Workforce of the Future is Upon Us - Entrepreneurship 101 (2012/2013)
1. WORKFORCE OF THE
FUTURE IS UPON US
How companies need to rethink their own
workforce plans & build unconventional
teams.
2.
3. Agenda
1. The changing workforce landscape
• What is driving change
• How are workforces changing
• Why does it matter
2. Rethinking your workforce plans
• Moving away from conventions
• Planning for success – building a strong core, leveraging virtualized
resources
4. Workforce Models
Bricks & Mortar
Features:
• Resources hired as employees (full time, part time, permanent or term)
• Employees generally work within company’s offices or facilities
• Some ability to work outside of the office – but flexibility is limited
• Some volume work might be outsourced to low cost regions
• May have service partners for some peripheral work
Why this approach:
• Conventional – what we know and are familiar with
• Secures resources, knowledge and IP
• Ability to collaborate “around the water cooler”
• Can control, manage and plan the resources
Workforce planning:
• Focuses on mix and headcount
5. Workforce Planning – mix
Company Stage – business inflection points
Formation Pre-revenue Early revenue Repeatable revenue Maturing Products Major Revenue Growth
Sustaining
Sustaining
Concept
Product
Proof of
Product
Technical
Product
Product
V.1 GA
V.2 GA
Milestones
V.1
V.2
V.1
V.2
Quarterly
IPO/M&A
Strategic
+ Margin
Revenue
Funding
Revenue
Revenue
Series C
Revenue
Series A
Series B
Financial
Growth
Growth
Yearly
Seed
Milestones
Customer
Customer
Customer
Company
Accounts
Strategic
Accounts
Accounts
Customer
Launch
Repeat
Repeat
Repeat
Trials
Sales
Sales
Early
Sales
New
New
Sales
New
BD
Milestones
HR Admin.
CEO CFO Accountant COO?
(P/T?) Support HR
CFO (F/T)
(P/T?) (F/T?)
Organizational R&D Sr. R&D QA VP
CTO Int./Jr. Marketing
Milestones Lead R&D Customer
PLM BD/ Marcomms Sales VP Sales Sales Support
Sales SE’s (Hunter) Sales (Farmer) Support
6. Workforce Planning – headcount growth
rt
&s uppo
Headcount
liver n s
e eratio
Bu ild, d ip a nd Op
dersh
ra te Lea
Corpo ales
ing & S
Market
les
efinition ro
Product d
Design & development
Time
7. Workforce Planning Challenges
Talent assumptions:
• The skilled resources you need are
available WHEN you need them
• They are local, or willing to move to your
location(s)
rt Revenue projections
&s uppo
Headcount
liver ration
s are challenging
, de and O
pe
Build ership
ead
rate L
Corpo ales
ing & S
Market
les
efinition ro
Product d
Design & development
Time
8. Workforce Models
Bricks & Mortar plus some remote working sites.
Features:
• Resources hired as employees (full time, part time, permanent or term)
• Employees generally work within company’s offices or facilities
• Some ability to work outside of the office – but flexibility is limited
• Create remote locations to capture other labour pools for talent
• Some volume work might be outsourced to low cost regions
• May have service partners for some peripheral work
Why this approach:
• Conventional – what we know and are familiar with
• Secures resources, knowledge and IP
• Access to additional labour pools outside of corporate HQ geography
• Ability to collaborate “around the water cooler”
• Can control, manage and plan the resources
Workforce planning:
• Focuses on mix and headcount
11. • Canada has geographically dispersed talent pools
Changing
• Culture of mobility not strong
Workforce
Landscape
• Economic forces
12. • GTA has additional geographic challenges in
Changing
attracting talent
Workforce
Landscape
• Economic forces
13. Hiring for critical technical skill sets
• Essential developer skills change continually
Changing • Technical advances
Workforce • Changing customer demands
Landscape • Legacy (‘old’ tools) vs. new products (“newest” tools)
• Economic forces Enterprise technology is changing
• Technology • How companies work – remote access; cloud computing; any
device in any location; etc.
• Security risks will force rethinking of mitigation strategies
Lock it down strategy
• Prevent, detect, shut
down threats
• Controlled access
Protect:
• Keep IP, information,
Intellectual Property
date within corporate
Information and data ‘walls’
• Utilize security
technologies
14. Protect:
Changing Top security firm RSA Security revealed on Thursday Intellectual Property
that it’s been the victim of an “extremely sophisticated” Information and data
Workforce hack.
(Source: Wired Magazine, March 2011)
Landscape
• Economic forces Strategies: Challenges:
• Restrict phone lists Social media
• Technology • Locked personnel files
Employee Information & Data • Company lap tops Personal computers
• Corporate servers Cloud computing
• Limit portable devices Any device
• Encrypted files
Customer Information & • Patent filing
Data • Confidentiality agreements
• IP assignment agreements Litigation
defense
• Non-competition
Corporate business agreements
information
• Disaster recovery programs
• Redundancy and back ups
Corporate IP • Security technologies APT’s
(know how) (Advanced
• Security policies Persistent
Threats)
Technical
IP
(patented)
15. So What?? Protect:
Changing Bricks & Mortar model
Intellectual Property
Information and data
Workforce Conventional – what we know and are familiar with
Secures resources, knowledge and IP
Landscape Ability to collaborate “around the water cooler”
Can control, manage and plan the resources
• Economic forces
• Technology
Employee Information & Data
Customer Information &
Data
Corporate business
information
Corporate IP
(know how)
Technical
IP
(patented)
16. Changing Hiring for critical technical skill sets
Workforce • Essential developer skills change continually
• Technical advances
Landscape
• Changing customer demands
• Legacy (‘old’ tools) vs. new products (“newest”
• Economic forces
tools)
• Technology
• Crowdsourcing
Enterprise technology is changing
• How companies work – remote access; cloud
computing; any device in any location; etc.
• Security risks will force rethinking of mitigation
strategies
Crowdsourcing through social media
• Connecting, sharing, revealing, interacting
through online or data channels
21. CROWD PARTNERSHIPS
Contests
Collaborative Communities
Problem Complementors
Labour Crowds
22. CROWD PARTNERSHIPS
Problem Contests
We have seen this before….
The Longitude Prize in 1714
Contest:
Established by Britain’s Parliament (after esteemed scientist, including
Isaac Newton, failed)
To search for a way to determine longitude at sea.
Prize £15,000
Crowd:
100 submissions
Solution: highly accurate chronometer that provided an exact triangulation
of location
Winner: John Harrison, carpenter and clockmaker from English countryside
23. CROWD PARTNERSHIPS
Problem Contests
• Not clear about skills needed Platforms • Promoted as a problem that
or best technical approach to will raise stature in community
use • Prizes for submissions and
• Experimenting with multiple winner with clear scoring set
solutions up at outset
• Problem is complex or novel Case Studies • Contractual terms around IP
• Very good for design • Clear terms around technical
problems requirements, etc.
• Usually a very narrowly Contest: • Promotion of contest is critical
defined problem 8 weeks $40K contest prize – to identify most to raise profile and status in
promising chemical compounds for future disease
• To protect IP – may need to the community
testing.
break down into multiple Crowd:
problems
238 team; 2,500 proposals – winner from a
• Management challenge – computer scientist using machine learning approach
defining problem, abstracting
it to protect company IP,
translating it to be
understandable Contest:
8 weeks $17K contest prize – to develop ads for
Speed Stick’s “Handle It” campaign.
Crowd:
Selected submission used for $4M Super Bowl buy
Ad ranked 12 out of 36 in Super Bowl ad review
24. CROWD PARTNERSHIPS
Problem Collaborative
Communities
We have seen this before….
IBM in 1998
Decision:
Decided to drop internal development efforts on web server
architecture.
Partnered with Apache – community of webmasters and
technologists. Aggregated inputs from global community to
quickly develop full featured free product that outperformed
other offerings.
25. CROWD PARTNERSHIPS
Problem Collaborative
Communities
• More projects rather than Platforms • Collaborate open and freely
problems where diversity of • Contribute to ideas, problems,
ideas and free form information (social, technical,
collaboration is useful thought leadership, etc.)
• Tasks within projects • Communities can be
identified, standard routines customers, market segments,
developed and need global communities, user
technology to help coordinate groups
• Should need only some • Structure and routines self-
coordination – can rely on Case Studies govern the crowd
technology to assist in
collaboration
• On-line collaboration to build
knowledge, share ideas freely
• Stays away from core IP and
not usually where profits
come from
26. CROWD PARTNERSHIPS
Problem
Poblem Complementors
We have seen this before….
Platform allows the core business to collect licensing or
transaction revenues from complementors who sell their
products to the customers of the core product (e.g. iPhone
users)
27. CROWD PARTNERSHIPS
Problem
Poblem Complementors
• Want to add to your core Platforms • May be crowds that are
product or technology BUT connected to company’s
where having a volume of platform
solutions matters most • Must have flexible access to
• Instead of one solution to a platform to design a wide
problem – provide many range of solutions
solutions to many problems • Usual to have a developer
(or offerings) agreement in place
• Different than collaborators • API developers can develop
because access to core platforms for these crowds to
product is required – through Case Studies use
APIs
+ =
Created a standard way of creating aftermarket
software and hardware for vehicles. Connects the
output from car’s computers and electronics to third-
party applications and the web.
28. CROWD PARTNERSHIPS
Crowd Labour
Problem Markets
• Match buyers and sellers for Platforms • Crowds from any discipline or
services community
• Focus is on securing partners for • Reach is global
small bits • Interest is in alternative work
• Well suited for repetitive tasks or arrangements
those that need human intelligence • Major focus is on micro tasks
• “spot” markets for resources – • Development communities
match skills and tasks on demand well suited for programming
• Collect a lot of data on type tasks
performance and feedback and
use this for future matches
• Platforms provide reputation and
skill level metrics, bidding systems,
monitoring technologies,
Case Studies
performance recourse, escrow
services for payment on delivery
THE MICROWORK™ MODEL
Samasource defines a unit of work as a small, computer-based task taken
from a larger data project. The Microwork™ model fits within the overall
field of Impact Sourcing, which aims to create jobs for individuals with
limited opportunity in rural or economically depressed communities.
29. CROWD PARTNERSHIPS
PROBLEM
Harvard Medical School was facing this exact challenge
for a complex DNA sequencing alignment challenge.
Previously:
• Used MegaBLAST – processed 100,000 sequences to
high degree accuracy, but took 2,000 seconds to
execute.
• Full-time Harvard resource spent 1 year to develop a
solution that reduced computational time to 400
• world’s largest platform for
digital open innovation
seconds
• Platform for a community of
over 445,000 global SOLUTION
Engaged TopCoder for a contest:
• $6,000 in total prize money
• 733 registrants and 122 members submitting working
algorithms,
• TopCoder provided a solution that performed hundreds
of times faster and at a higher degree of accuracy,
reducing the time to execution to just over 16 seconds.
32. Source: Harvard Business Review, “Using the Crowd as an Innovation Partner” by Kevin J. Boudreau and Karim R. Lakhani, April 2013
Kevin J. Boudreau is an assistant professor of strategy and entrepreneurship at London Business School and a research fellow at Harvard’s
Institute for Quantitative Social Science. Karim R. Lakhani is the Lumry Family Associate Professor of Business Administration at Harvard
Business School and the principal investigator of the Harvard-NASA Tournament Lab at the Institute for Quantitative Social Science.
33. CROWD PARTNERSHIPS
Internal team External team
(employees) (the Crowd)
• Traditional incentives- salary, • Intrinsic incentives – learn, explore,
bonuses, equity compete with contemporaries
• Clearly defined roles and • Explore challenges outside of their
responsibilities day-to-day
• Use systems, tools, platforms inside • Technology platforms for design,
the company development, collaboration
• Long term relationship with becoming powerful, easy to use,
employer cost effective
• Focus is on fit with culture; where • On-line crowdsourcing platforms –
interaction, socialized to each other help to manage process
and share a culture • Available on demand
• Specific experiences in narrow • Adds diversity to problem solving
fields that align to company area of outside of narrow focus areas
focus
34. What is core to your business – what is the critical
Workforce offering
Models • IP
• Know how/unique skill
Build around the Core • Services
plus “Flex Resourcing • Information
Partnerships”
Based on this core – who do you need on your core
team?
• Consider:
Employee Information & Data • Is your technical IP well protected? Can you segmenting
pieces of development to protecting the IP
Customer Information & • Are you relying on hiring for every requirement you have
Data
• Do you have the core skill set on the team to manage these
Corporate business
information
contests and projects
Corporate IP • Do you have technology leaders who can integrate solutions
(know how)
Technical
from multiple sources
IP
(patented) • Hire for fit, competencies needed at your core,
subject matter knowledge that must integrate and
be socialized with others on the team
35. Critically assess what is core….
Values & Critical Knowledge Core IP
(technical, market, (technical, market,
Character Competencies integration) knowhow)
Key Run the Define ‘What’ Build Reach Deliver
Design
Functions business market technology & Test & Sell & Support
Generally Marketing
External Prod. & Comms
Head of
Facing Mgmt.
CTO
Head of R&D
Head of Ops.
Customer
CEO
Sales
Support
& Sr.
Prod.
Head of Design Head of
Leadership CFO
Market.
R&D
Leaders
Manufact.
Bus. Dev.
Sales Eng.
“Define & Bus. Dev. Prod. Market.
Plan”
Marcomms
Logistics
PM
Install & Test
Generally Controller
Market Engineers
Manuf Eng.
Mark. Supp.
Product
Internal Accountant
Technical Supply chain
Research
Scientists
Support
Office Mgr.
planners
Lab Tech
Sales Eng.
Facing HR
Techs.
Test Tech
Media
Trainer
Marketing QA
Customer
Purchasing
Research
Research
collateral
PM
Support
“Do” IT
assistant
Relations
assembly
Sales Supp.
36. Plan for the flexible resourcing model….
• Variable growth – a more ‘flex’ workforce
• Employers will stay small as much as possible
• Key technical skills change quickly; year over year, or even month over month
• Pricing pressures from globalized work force – must become very skilled at controlling costs
• Means smaller teams
• Need alternatives to hiring permanently every skill set you need
• Cannot spend $$ on building multiple locations
• Need to leverage talent where it exists – a more virtualized work force
• Core team needs are changing:
• Strong project managers who can track and plan needs
• Strong virtual team managers – with skill set to lead, manage and drive diverse teams
• Technical chameleons who can adapt quickly to new technologies
• Strategic resourcing specialist – to find core talent and flex talent
• Workforce planning will become establishing a strong core and develop resourceful and engaging
flexible workforce partnerships ‘
Workforce Planning Era
• Steady core team
• Flexible resources used as needed
Headcount
for:
• Peak work
• Special skills/expertise
• Bench strength
Build, deliver & support
Corporate Leadership and Operations
Marketing & Sales
Product definition roles
Design & development
Time
37. Finding talent:
Strategic Sourcing vs. Recruitment
Conventional sourcing
BUT this is a very strategies really only
competitive market! target active or near-
active candidates.
NEAR-ACTIVE ACTIVE
PASSIVE CANDIDATE CANDIDATE CANDIDATE
Career Satisfaction Factors
Like People
Happy in Job
Compensation
Satisfactory
Career is growing
Learning/having
new experiences
Exciting Work
Fulfilling other
needs (altruistic)
38. Strategic Sourcing vs. Recruitment
NEAR-
NEAR-ACTIVE ACTIVE
ACTIVE
PASSIVE CANDIDATE
PASSIVE CANDIDATE ACTIVE
CANDIDATE CANDIDATE
CANDIDATE
CANDIDATE
Perfect
Candidate
Active
Near
Active
Active
Active
Near Active Near
Active Active Active
Near
Active Active
This approach ignores a very Near
Active
This approach is not large addressable market Near Active
ActiveActive Active
Active
Active
targeted to the perfect Active
candidate for the Active Active
company. Near
Most sourcing draws in Active Active
Active
those actively or thinking
about a career change. Active
39. Strategic Sourcing vs. Recruitment
NEAR-ACTIVE ACTIVE
PASSIVE CANDIDATE CANDIDATE CANDIDATE
Effective Recruitment
Campaigns
CRM – Candidate Relationship
Management Program
Active
Active
Near
Active
40. HOW - Strategic Sourcing vs. Recruitment
Understand your perfect candidate!
Same principles as understanding your customer
SEGMENTATION
• Research the profile of the perfect candidate for each role
• What are the attributes, behaviours, career patterns and indicators of high
potential
• What are the relevant career satisfaction factors
Ø This will inform key messages to these target candidates
Ø AND channels to reach them
41. HOW - Strategic Sourcing vs. Recruitment
Understand your perfect candidate!
Same principles as understanding your customer
MESSAGING
• Based on what you know and what you discover – develop the messages and
brand that speaks to these passive candidates
• GOAL is to implant the idea of your company as a career choice to all passive
and active ideal candidates
• This messaging will be heard through branding, recruitment activities,
marketing programs, speaking notes, and on-line activities and promotions
42. HOW - Strategic Sourcing vs. Recruitment
Understand your perfect candidate!
Same principles as understanding your customer
CHANNELS
• Based on what you know and what you discover – develop strategic sourcing
programs that address a full spectrum of channels to REACH the active, near-
active and passive candidates
• Develop plans and programs with a view to:
Ø find talent
Ø nurture relationships
Ø convert passive candidates to active candidates
Ø close on perfect candidates
43. HOW - Strategic Sourcing vs. Recruitment
Understanding who you are targeting; what they care about and how to reach them
will result in:
1. Clarity on what a successful candidate looks like for your organization
2. Creating a compelling job posting that will speak to the best candidates for
your company – giving higher likelihood of good matches
3. Allows you to roll out an effective recruitment campaign that will reach the
target candidates that are best for your organization
44. Effective Recruitment
Tight Execution is Key
• Know what you are looking for and when
• Think of a highly targeted approach
• Process from start to ‘in-seat’ will generally take no less than six weeks
WITH all stars aligning – plan for 2 months or more if highly specialize role
• Think before you act – a little preparation will make the effort much more
productive
Focus in on a tight plan in the
context of a bigger picture
CEO HR QA Admin.
Accountant COO?
(P/T?) Support HR
CFO
(P/T?) Sr. R&D CFO (F/T?)
Organizational R&D Int./Jr. (F/T) VP
CTO Marketing
Milestones Lead R&D Sales Customer
PLM
Marcomms VP
(Hunter)Sales
Sales Sales Support
SE’s (Farmer) Support
BD/Sales
46. Social networking tools
Pro’s Con’s Tips
Huge reach in all geographies Volume is overwhelming Filter your search in terms of
geography and use additional
filters
Can reach specific individuals who Will be contacted by many who Use In-mails to send customize
seem to be a good fit think they are a good fit messages to candidates of interest
AND follow up
Can post jobs Any posting will get a huge Compelling description that speaks
response from candidates around to the candidate you want to reach
the world will allow for easier filtering
Can target communities by Some user communities shun Preferable to have outreach from
connecting with user groups and recruitment efforts someone in the company
using other social media
Some user groups have job boards
Can see recommendations on Some have become expert at Filter the recommendations – which
individuals getting referrals from everyone – ones do you trust
more noise
Still do your own reference checks
Lots of statistics to look at about You have to read into these to Read with a note of skepticism –
companies and individuals understand what is self-promotion always do your own due diligence
vs. legitimate signs of excellence
47. Social networking tools
DIRECT
SOURCING
Relevant
Networking
Awards
of
Job
Boards
User
Groups
Schools
Associa@ons
Events
Significance
Post
ac@ve
Post
ac@ve
Post
ac@ve
Post
ac@ve
Only
if
Explore
awards
(hiring
within
opportuni@es
in
opportuni@es
in
opportuni@es
in
networking
event
related
to
next
2-‐3
months)
UG
job
sites
that
university
job
boards
-‐
relevant
has
known
employers
of
opportuni@es
on
exist;
broadcast
target
schools
with
associa@on
sites;
recruitment
focus
choice.
target
job
boards
opportunity
in
UG.
relevant
programs.
make
contact
-‐
consider
Coordinate
any
Note
do
not
Connect
with
with
associa@on
par@cipa@ng
with
promo@on
of
overuse
this
-‐
only
someone
from
to
see
if
there
is
ac@ve
these
with
direct
when
shcools
if
possible
to
a
way
to
tap
into
opportuni@es.
recrui@ng
opportuni@es
are
properly
promot
their
community.
opportuni@es
real.
opportunity
48. Social networking tools
INDIRECT
SOURCING
Relevant
Networking
Awards
of
Job
Boards
User
Groups
Schools
Associa@ons
Events
Significance
Examine
boards
Prolucid
team
join
Networking
with
Prolucid
team
Prolucid
team
to
Explore
awards
for
opportunity
relevant
groups;
schools,
alumni,
etc.
to
join
relevant
aUend
'high
value'
that
posi@on
to
create
banner
par@cipate
in
group
to
raise
awareness
associa@ons
networking
events
Prolucid
in
a
ads
and
other
discussions
to
build
of
Prolucid.
that
have
high
that
promote
highly
valued
promo@onal
presence;
when
value
in
terms
Prolucid;
speaking
technical,
sector,
opportuni@es
opportuni@es
of
reaching
opportuni@es
to
work
become
ac@ve
can
target
audience.
be
explored.
Want
environment.
send
message
out
Will
want
speaking
notes
on
to
group.
'speaking
notes
resources
we
are
around
who
we
always
looking
for
are
always
looking
for'