Tag: Elite Business

Remote work is for the birds Remote work saved our businesses in Covid, but could kill it if left unchecked

Elite Business: Remote work is for the birds

Written by Lindokuhle Ntombela on November 16, 2023. Posted in Insights, Leadership, Mindset, Scale & Grow, Team.

In this article, first published in Elite Business, Pavlo puts a question mark on remote working.

Businesses are about people. And people are about skills, thinking and action. If your people are less than that, you should be looking at technology to do that person’s job. It’s more reliable, dependable and far easier to manage. But it won’t create magic, innovation or culture across your business. People will and do. Remote working puts a question mark on that.

Here are some reasons why.

Troubleshooting

When a problem arises, the ability to immediately resolve it by pulling people into a room before it cannot be done remotely. And if the problem and its solution need a multidisciplinary approach, which most problems do, then the right people in the room can step out after and all do what needs doing to get the job done.

As your business grows, it is even more critical because the people in the room might have to coordinate and organise their teams to get the job done. It’s instant, and when it comes to retaining clients and building a brand (problem resolution builds a brand better than any marketing campaign), you need to get it done there and then.

Culture and value

Culture is nebulous, yet without one, your business creates a staccato experience for suppliers, customers, and employees. Values create the nous that enables your business and its employees to operate against an intuitive framework when needed. This intuition or unconscious response develops over time. It doesn’t build from the values stated in your website or reception wall but through living, breathing and observing the behaviour of all business employees, especially its leaders.

If values create the framework and culture of the behaviour about what a company stands for, the best way to learn it is in person. Imagine a scenario where an employee enters the office of a manager. The door closes. A few minutes later, the employee leaves the office, pale and slightly stressed. Your colleague sitting next to you asks what went down. You explain what that employee did, and through that, you learn the authentic culture and values of that company. A word indicating a value, be it integrity, honesty, etc. means very little until it is understood and witnessed in practice.

Learning and training

While aspects of employee training are best offered online and therefore accessible remotely, the context, the application and the improvement of an employee’s performance arguably cannot be. We learn by doing not online engagements and content. Observation and “show and tell” are far more impactful ways of developing capability in your employees. Imagine trying to learn kung fu remotely rather than in the ring. Only when a punch lands do you genuinely understand how to take the theory and put it into a useful practice suited to your inherent abilities. The same goes for riding a bicycle, managing a project, managing a team, collecting a debtor book or selling.

Growth

Beyond a job, why do people opt to work in your business? I’ll put it into context in a recent meeting with a global law firm specialising in tax. Their brand exciting and innovative brand operates across a federation of autonomous companies operating in 169 countries. In the past, they won recruits with their innovative approach to tax, assured learning and very quick exposure to exciting clients. Their vibrancy won them talent before bigger firms’ cold, hard salary packages. But, they have found that remote working has directly prevented the handover of relationships from senior partners to junior partners and associates. It has harmed the transfer of knowledge on the subject matter, the personalities making up a client, the industry, and it has stunted the ability of senior partners to pick junior partners effectively and for junior partners in return to compete to work with promising associates.

Remote working is a privilege, not a right. If you are attracting employees who demand it, consider moving on. They are there for their comfort rather than the well-being of the business as active, engaged, committed contributors who go beyond fulfilling a functional role.

When is there a case for remote work? It should be part of your business-building toolkit. How to use it, when and where and then how to manage it is a future article.

Elite Business: Crack the skills crisis

Written by Lindokuhle Ntombela on November 8, 2023. Posted in Insights, Leadership, Mindset, Scale & Grow, Team.

In this article, originally featured in Elite Business, Pavlo explores the topic of the UK’s GBP6.6 billion skills gap, exacerbated by inflation and tech advances, demanding attention. To succeed, prioritise growth and talent. Build a resilient business model and hire system operators to navigate the skills crisis and pursue higher growth.

Skills are short globally. In the UK, the skills gap cost businesses an estimated GBP6.6 billion. The subsequent challenges of inflation, war in Europe, and the accelerated adoption of AI and other technologies can only have increased this.

This shortage of skills is not a problem if you don’t want to grow. There are two parts to this comment.

First, growth

If you’re not growing, you’re dying because your competitors intend to, and in a low-growth environment, their growth will come from eating your lunch. Add inflation, and you are eroding the value you have built thus far. If you opt not to grow, look to exit and realise your value before it whittles away.

If you want to grow, there are two options. First, grow to maintain what you have. This pegs your annual growth rate at inflation, the tepid country growth rate, and your industry growth rate. It approximates 8% per annum. At this level, you are maintaining what you have. To grow beyond what you have, your growth rate should add another 5-10%, depending on your ambition.

Next, talent

In the instance of growth, you need a plan, and that plan needs two things. First, and most importantly, your time and attention to focus on growth. Next, a business model and team that allows your time and attention to focus on growth. Both mean you need to have a good team on board of the right people doing the right thing at the right time.

Across businesses I visit the following constraints regarding human talent become apparent.

I need help finding the right people.
I have people in senior roles who don’t have the skills or mindset to get the job done without my regular support and guidance.
It takes ages for new employees to get up to speed and wash their faces.
My “rock-star” employee is constantly toying with other opportunities.

The employment challenge is here to stay. Demographically, each year sees fewer people entering the workforce. Over 2.8m working people are sick, waiting for operations. About 500 000 able, capable 50 years and older, experienced people opted for early retirement.

If structure determines behaviour, build your business to accommodate the skills challenge.

A business does not just emerge. It is built against an operating model. Your operating model must sympathise with the challenges of growth, size, and shifts in the economy.

However, the bones of the operating model that will resolve many of your human capital challenges remain the same.

It begins with defining your business in terms of the customer segments you serve rather than the features and criteria of your products and services.

Understanding these segments, what problem you solve for them, and what experience they want in the process forms the blueprint of your operating model.

Using the blueprint, build the operating processes and systems to deliver that outcome reliably. Systems are sequential activities that bring the experience of the blueprint to life, and that can be taught and measured. Do this across all your commercial functions that comprise that customer experience blueprint. In each function, these activities make up a job description.

You can now hire people, not because they bring some of their superstar ability to the role, but because they can be evaluated and trained against the activities in their employed function.

Hiring system operators, rather than mavericks and gurus, has several benefits:

Recruitment is simplified as you can assess through simple questions whether someone has the experience or capability to perform the tasks that make up the system.

Your employees are motivated and have a purpose as they know what to do and when to do it, to achieve a specific outcome. Their performance can be measured and managed.

Your business becomes less reliant on you, as the systems that underpin it are documented, trainable, and don’t depend on a few superstars to get things done.

This unlocks your time to focus on next-level growth despite the skills crisis.