Gig Economy

May 27, 2016 by lsmit@wemanity.com in  Blog

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

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

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

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

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

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

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

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

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

By: Robert Jeffery, Editor of People Management magazine

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

 

In the family way

Apr 29, 2016

It’s funny how things work out, what we see when we open our eyes and raise our curiosity.

In particular, two events this week that in one moment filled me with dread, then filled me with hope and possibility.

Firstly, on Wednesday a colleague sent me an article from The Economist about the quality of managers in the UK. The article reflected on the following:

The low productivity of British workers has several possible culprits. Inefficient family-run companies are sometimes blamed, as are poor workforce skills. But whereas these problems are well documented, another factor is glossed over: the mediocre performance of British bosses. John van Reenen, director of the Centre for Economic Performance at the London School of Economics, argues that the standard of British management is “significantly below” that in leading countries. His team carried out 14,000 interviews with employees around the world and found that British workers rated their supervisors lower than those in countries such as America, Germany and Japan. “We are not in the premier league,” he says.

Management as a skill has rarely been taken seriously in Britain, where the cult of the gifted amateur prevails. Ann Francke, the head of the Chartered Management Institute (CMI), says that four out of five bosses are “accidental managers”: they are good at their jobs but are then promoted into managing a team or a department, without further training. Unsurprisingly, “they flounder”, she says. Mr van Reenen reckons that about half the productivity gap between Britain and America could be attributed to poor management.

http://www.economist.com/news/britain/21679215-business- gets-serious-about-running-business- end-accidental-boss?fsrc=scn/li/te/pe/ed/endoftheaccidentalboss

Inefficient family run companies? Funny that, because on the very next day I found myself in need of the services of a family run company. My wife’s lovely Michael Kors watch had used up all of it’s battery charge and a replacement power cell was needed. The most obvious place to get this done is my local Timpsons.

You may know of Timpsons. You may even be a customer of theirs – everything from key cutting, engraving, shoe repair to wrist watch maintenance. But do you know John Timpson’s approach to management?

In a recent article in The Independent, Mr Timpson explained his philosophy.

His way of avoiding top-heavy management is to do away with their jobs. “When I introduced my ‘upside school of management,’ which is putting the customer at the top of the matrix and management at the bottom – and giving staff the freedom to run their own shops – our middle managers didn’t like it at all. Many left.”

As he admitted, Timpson is a funny business. It does all the odd jobs that no one else wants to do, whether its key-cutting or, now, watch and mobile phone repairs. “This wouldn’t have worked if we hadn’t understood the importance of picking the right people and giving them the freedom to look after customers and to decide how to run their shops and to set their own rules. That is the core of our success.”

http://www.independent.co.uk/news/business/analysis-and-features/john-timpson- all-the- great-retailers- know-their- customers-does-ms-a6697471.html

So what was my experience? As someone who is often frustrated by lack of customer service, I find the whole Timpson experience leaves me with a smile on my face.

I took the opportunity today to ask the 2 guys serving, what is life really like as an employee?

Their answer was simple “Great!”

Why, I asked. “Because we are left alone to get on with it. This is our store. We get guidance, sure, but we make the decisions because we are with the customers every day”.

And how does that make you feel? “Trusted!” was the immediate response.

But does this upside down school of management work commercially?

Well, Timpson recently reported sales up 12 per cent to £189m and profits 38 per cent higher at £18.7m. Furthermore, over the past three years the company has grown rapidly – from 800 stores to 1,400.

Yet again, more evidence that shows having engaged staff not only results in a better, happier work place, it also brings commercial value.

By: Mark Manley from Gaia Leadership

If you would like to learn more about how to build engagement within your organisation, please contact me

mark.manley@gaialeadership.com

I write these articles as part of my own learning. Thank you for reading it.

If you like it, please share it.

Yes … You Can … Change Your Organisation Culture!

Apr 19, 2016

Some management consultants claim that you can’t change an organisation’s culture.
This is nonsense.

Numerous other management and change consultants claim they can change an organisation’s culture.
This too is nonsense.

You can change your organisation’s culture … from the inside.
Indeed, a leader’s responsibility includes Shaping their Organisation’s Culture.
I am going to share two successful stories of leaders driving change in their companies. On both occasions, I was engaged as an external consultant with the brief to co-design and facilitate the process and selected interventions.

 

Engineering Inc.

From a loss-making conflict-ridden environment where indifference and lack of trust reigned, to a profitable integrated company with engaged employees. The company is now a unit in a global corporation and a Centre of Competence for its product line.

The Situation: A new CEO had recently been appointed to a company which had changed owners 3 times and been making losses for 8 years. The environment was poisonous: chaotic production processes, cynical, continuous conflict with customers due to delivery and quality issues, abuse of the system by middle managers who themselves were not trusted by the production engineers and technicians. Closure was a possibility with 300 jobs at risk.

Changes and Process: Three new engineers were brought in to fill critical positions: Chief Engineer, Senior Project Manager, Site Manager. We conducted individual interviews with all managers, held focus groups at all levels, engaged the works council. Product demand fortunately was not an issue. Customer relations unfortunately were a serious problem. The CEO appealed for support. He laid out a clear strategy with a message of the environment and changes needed to continue operating. Changing the focus from inward (protectionist silos) to outward (the whole business with customer needs as focus) we used strength-based approaches to realign around real business Questions, whereby employees were invited to contribute. The production and logistics process was changed completely; skills deficits were alleviated; product design now involved production; the management team began to work as an integrated unit; employees wanted to contribute to improvements. Three middle managers who resisted the changes were forced to leave. Additional jobs were created in production as demand rose. Within two years, the site was making a profit.

Key Change Success Factors: The need: without change, the company was in serious danger of closing. Leadership: A driven leader who everybody trusted – he was visible, approachable and walked the talk. His messages were clear and he listened. Involvement: People learned not only that their contributions were desired, they experienced that the invitations they received were genuine.

 

Finance Inc.

From a small sleepy company in which employees had a lackadaisical approach to their work and customers, to a dynamic market leader whose customers praised service quality.

The Situation: A small specialist data processing company was acquired by a global corporation. A new CEO was installed together with two experts from the parent company. The environment was friendly and relaxed. There was little engagement, people worked with an eye on the clock, problems were referred to management, error rates were high, clients were irritated.

Changes and Process: The new CEO laid out clear guidelines, expectations and his vision of potential opportunities. All employees were invited to play an active role in working groups that defined and implemented new more efficient practices and new customer interface processes. Customer orientation was prioritised. The two new specialists were appointed to lead functional units, otherwise, the only hierarchy was towards the CEO. Processes were defined, personal and team responsibility was expected, engagement levels improved significantly, the environment was noticeably more dynamic, problems were solved at the level at which they occurred, customer satisfaction indices increased dramatically. Within two years, the number of employees increased three-fold as new clients came on board.

Key Change Success Factors: Leadership, Trust and Recognition: Clear consistent Leadership; clear guidelines; employees felt valued and freer. Involvement: employees were able to see the impact of their contributions.

 

Culture is the continuously evolving dynamic interaction of the mindsets and gutsets of all the actors in the system. It is the Soul of the Organisation that drives the behaviours we observe.

In many if not the majority of organisations, observed behaviours reflect not the values of the people within the organisation, but those hidden values of the organisation as a system, frequently driven by inappropriate leadership. By inviting and encouraging the people to engage with the system, leaders can lead a change from a negative to generative culture. Indeed, this is their responsibility.

And in the fast changing world of the early 21st century, shaping an adaptable organisational culture is becoming a survival essential.

Yes … You Can … Change Your Organisation’s Culture!

By: Eric Lynn from CultureQs

Yes … You Can … Change Your Organisation Culture!

Why we should lean into risk in Brexit Britain

May 10, 2016

I was going to write a blog about risk. I’d whip through the theory, focus on the practice, and back it up with science.

Then the referendum happened. And now, depending on your view, the country’s either deep in the mire, or free to succeed. The markets have crashed, but might bounce back. Hate crime is up, but might be a blip. We’re living in uncertainty, and we don’t even know how long it’ll last.

All of that feels uncomfortable and risky. So to write about risk without acknowledging the uncertainty around us feels a bit absurd. We’re already awash with political analysis, so I won’t add mine. But whether you’re delighted, devastated or unmoved by these events, it’s an interesting moment to take a look at the parallels with organisational and personal change.

Major change throws the status quo in the air. Before it settles, as it inevitably will, we can make some choices. We can pretend it’s not happening. We can choose to step back and see where the pieces fall. And we can choose to take a risk and lean into uncertainty. These are decisions organisations are making now – as they’ve done before and will again. Individuals are doing the same.

Unless you’re very lucky, pretending nothing’s changed will leave you baffled, and your colleagues disengaged. It’s also, counter-intuitively, a lot of effort. Our ability to adapt is part of what defines us as human. So while adapting might be hard, refusing to is exhausting. Sometimes, of course, the wisest move is to hold your horses and wait for a new normal. But you forfeit the chance to shape it, and risk being left behind.

Choosing to shake hands with uncertainty can be complicated and uncomfortable. It can also be profoundly creative. If you can lean into that, there’s scope to experiment with new ideas and products, have different conversations and make unexpected connections. You might fail, you might succeed, you might create something a bit… ‘meh’. But you only find out if you take the risk. And whether or not it’s sparked by external events, embedding a culture of testing, adapting and improving will reap benefits well into the future.

Thing is, it’s not easy. There’s a gap between intention and doing. And however much you want to, crossing it can seem boring, painful and hard work. And once you do cross it, there’s no guarantee it’ll work. Ugh. Why bother? It’s somehow easier to feel disrespected afterwards than to challenge in the moment. To feed back to your friends instead of your colleagues. To work within stasis than to venture an alternative.

But that ‘ugh’ is worth the bother. It’s when things shift, and when you learn. Plus you reinforce in yourself and colleagues that, whatever the outcome, you are people with the agency to create change. You’ll be more likely to do it again, helping build a culture of creativity in yourself and others.

So where to begin? Here are three initial suggestions.

1. Acknowledge fears, but don’t draw them out. Give yourself three minutes to project the potential range of outcomes from best to worst. Then begin, ditch or adapt. You’ll only find out what actually happens by taking the risk, so don’t waste time on the fundamentally unsound, or delay the great.

2. Solicit feedback; ask, listen, learn, adapt. And be specific: work out exactly what you want feedback on, and ask questions within a clear remit. This shifts the focus away from egos (easily crushed, despite denials) and towards ideas. Seeking feedback can feel like a massive risk in itself. But the more you do it, the easier and more useful it becomes.

3. Build networks. It’s exhausting taking a risk on your own and it takes ages. Talk to people who disagree: diverse opinion makes for robust ideas. And test the idea as soon as you can, drawing on your network for support. Make sure your network includes people unconnected to your idea, but who can help you reflect on progress and remain resilient. Action learning sets and peer mentors are ideal.

I’m not suggesting all ideas are sensible or risks worth taking. But change is definitely coming. New systems, new products and even new industries may emerge. I hope that as organisations and individuals we’ll be inspired to lean into risk when we encounter it. Start experimenting, adapting, innovating. The status quo has been shaken, and will rebuild. The space in between is yours to shape.

By: Kamala Katbamna from Chirp

http://www.chirp.org.uk/new-blog/2016/6/29/risk-taking-in-a-post-brexit-britain

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