Vincent Suppa - Amazon Web Services...This is the Silicon Valley Model Adaptability & risk taking acknowledged as crucial to success. Entrepreneurs huge impact when networks are strong.

The least you need to know about the NEW EMPLOYER-EMPLOYEE SOCIAL COMPACT in 18 minutes

.

www.linkedin.com/in/vsuppa

Vincent Suppa

www.NetComLearning.com

http://www.linkedin.com/in/vsuppa

Least You Need to Know

20th century compact based on mutual loyalty.

Replaced by myopic transactional approach suboptimal for both parties.

New compact recognizes jobs no longer permanent while encouraging permanent alliances.


Old 20th Century Paradigm

About stability & predictability. If firm succeeds financially & employees performed - jobs would remain.

Careers progressed along an escalator predictable advancement if you followed the rules.

In exchange firms received loyalty & low turnover.


What Changed? Globalization Intersects Information Age

On Demand Economy (future webinar). Algorithms & Big Data creating labor light economy (previous

webinar). Stability Unpredictable Change. Adaptability & entrepreneurship now endemic to sustain success.

Traditional employer/employee compact demolished. Many employees asked to leave the escalator – not advance along it.


So What’s the Problem?

Instead of developing a better compact to match reality, firms have adapted by minimizing existing compact instead of replacing it with something better.


What Do Many Firms Do? Need to reduce SGA costs – lay off

Need new skills – hire different employees

Laissez faire arrangement workers as free agents

Winner takes all economy disillusionment among talent

Causes dysfunctional turnover hampers productivity

Lack of security forces employees to be entrepreneurial by taking their talent outside the firm.

The New Employer/Employee Compact Vincent Suppa

Every person for him or herself social order!


Equation of New Compact

Employees invest in their company’s adaptability in exchange for the company investing in the employee’s marketability.


Compact – Not a Contract

Enlist workers for specific assignments analogous to tours of duty.

Encouraging employees to build networks & expertise outside the firm on company time and dime.


Consider This New Compact!

Instead of minimizing current compact develop better one recognizing reality of new professional social order.

Firms can’t have agile companies with “de factor” lifetime contracts. PLUS, best people don’t want one employer for life anyway!


This is the Silicon Valley Model

Adaptability & risk taking acknowledged as crucial to success.

Entrepreneurs huge impact when networks are strong.

Recommended Reading: The Start-up of You applying habits of successful tech entrepreneurs to build successful careers.

The New Employer/Employee Compact Vincent Suppa www.NetComLearning.com

Make Your Large Cap Company Act Like a Small Cap Company!

Environment of Disruptive Innovation

Russell Index consistently outperforms SAP 500 over time.

SME’s have disadvantages in resources but more adaptable, entrepreneurial & motivated to out network their competitors.

According to risk/reward premium generate outsized rewards.


The Current (not really true) Employment Compact

Mutual Investment Implicit (not guaranteed)

Employee / Employer expect relationship long term both sides willing to invest.

Firms provid training, advancement & implicit guarantee of employment.

Employees provided loyalty & moderate wage demands & played by the rules.


Here Is Your New Compact

Acknowledges probable impermanence of relationships while building permanent trust & investment.

Instead of entering into strict bonds of loyalty, both sides seek mutual benefits of alliance.

Firms say if you make us more valuable, we’ll make you more marketable.

Employees invest in firm’s adaptability

Firm invests in employee’s employability



Now Have Realistic Zone of Trust

Firm gets engaged employee striving to produce results.

Employees get firm as advocate at project’s conclusion.

Employee may not get lifetime employment

but lean toward lifetime employability.



http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=OYxdzjbFXQMOhM&tbnid=tL3n5cVa_kVpRM:&ved=0CAUQjRw&url=http://www.merchantcircle.com/business/Boston.Personal.Injury.Law.6172239689/picture/view/2873718&ei=aj4uUpz1KouE2gXYlYG4Bg&bvm=bv.51773540,d.b2I&psig=AFQjCNEO3VYWPJLyppfySV-vRxckGs2BiQ&ust=1378848704893888

Establishing Tours of Duty

People don’t give lifetime loyalty anyway so why not acknowledge & leverage reality?

When Reid founded LinkedIn, he set employee compact as 4 year tours of duty with discussion at 2 years.

If employee moved needle on business during 4 years, firm helps advance career. Could result in another tour of duty or position elsewhere.


Why Acknowledge the New Compact?

From firm’s side Lifelong employment not practical.

From employee’s side lifelong loyalty not feasible.

Pretending they are decreases trust by forcing both sides to lie.

Why 2 to 4 Years?

Software business syncs with typical product development cycle.

Investment banks / consultancies have 2 to 4 year analyst programs.

Cycle applies to Presidential elections / Olympics / World Cup

TOD recruitment tool for top talent

Both sides agree in advance on the:

• Purpose of the relationships

• Expected mutual benefits

• Planned exit strategy


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=vxRltcq7-a7otM&tbnid=dIu7DGs3QTTkhM:&ved=0CAUQjRw&url=http://www.youshouldliketypetoo.com/blog/house-numbers/frankfurt-house-numbers/&ei=gD8uUvz2JoyA2QXckIDwAw&bvm=bv.51773540,d.b2I&psig=AFQjCNGZvKpvFsbKc1NW0PpqN1D0Y1qbag&ust=1378849000977742

Traditional versus “New” Compact

Most retention programs fuzzy goals to retain employees with ambiguous time frame of indefinitely. Really?

Firm asks workers to commit without making commitment in return.

TOD as personalized retention plan giving workers reason to finish tour with clear time frame for discussing future .

Wharton School Poll students from terminal jobs (2 year analyst programs) more positive about wok experience than peers.

Terminal jobs are generic versions tours of duty.


Construct Personalized Compact

Launching a new product | Reengineering existing business process | Introducing organizational innovations.


Employee can have possibility of breakout entrepreneurial opportunity.


No matter how smart employees are more smart people outside the firm.

To leverage innovation firms need to develop networks outside the firm.


Engaging Beyond the Firm’s Boundaries

Firms encourage employees to build networks outside the firm.

The company’s new compact:

We provide the time to build your network.

We provide budget for you to attend events.

In exchange please leverage YOUR network to help the firm.


Meetings begin with cash award for best industry rumor heard through somebody’s extended network. --Example from Venture Capital Firm,


Who Receives What?

From updating LinkedIn profile in private firm making sure staff updates it on company time. Firms trust employees by giving them resources to build their networks.

Workers investing in firm by deploying their own social capital on firm’s behalf.


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=egIiB2dbvWKDPM&tbnid=xCHgQQQDfdhcuM:&ved=0CAUQjRw&url=http://vimeo.com/employeenetwork&ei=rUIuUpDxE6T32wWlgYHgBg&bvm=bv.51773540,d.b2I&psig=AFQjCNFFIuWZoUxxwnrxF3kD0UgEI1tu0Q&ust=1378849815034661

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=kgMrnfNhkHHbjM&tbnid=h6F9Laxyd1MgrM:&ved=0CAUQjRw&url=http://www.enterpriseirregulars.com/47309/yammer-and-ultimate-software-building-out-the-enterprise-social-network/&ei=3kIuUvbLKOfm2AXf_IHoAQ&bvm=bv.51773540,d.b2I&psig=AFQjCNFFIuWZoUxxwnrxF3kD0UgEI1tu0Q&ust=1378849815034661

Boston versus Silicon Valley & Coopetition

Coopetition reflects mutual benefit of working with competitors.


1970’s - world’s largest tech firms located in Boston’s Route 128 corridor.


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=qq5hc6wJwfOnJM&tbnid=tTQklE182m8HsM:&ved=0CAUQjRw&url=http://www.thehotiron.com/index.php/site/comments/namemedia_ipo_filing_reminiscent_of_route_128_glory_days/&ei=8UMuUvfzHaqq2QWs6oHIBw&bvm=bv.51773540,d.b2I&psig=AFQjCNHUOe2mJDrlitFAvaLpu_Kiuevspw&ust=1378850067534673

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=0UlOrPtSN4BSNM&tbnid=e38fKkDR0ET1wM:&ved=0CAUQjRw&url=http://www.tvrage.com/shows/id-33759&ei=dkQuUqvFFcGH2gWjlIGYAw&bvm=bv.51773540,d.b2I&psig=AFQjCNElKlwHfaz9TR0DMFT-apuZP1HWSw&ust=1378850203604813

Netflix streams its video’s on Amazon’s cloud platform even though Amazon’s Instant Video is direct competitor.


Firms Provide Money & Time for Employees to Network

Your career success depends on, according to The Start-Up of You

• Your individual capabilities

• Your network’s ability to magnify them

Think of “I” to the power of “WE”

we

I Employee raised exponentially via their network.

Firm’s power exponentially raised via its employees’ network.



Compact’s Rules of Engagement

Budget line for employees to take people in their network out for coffee, etc. –

Ensure your firm reaps benefits establish 2 criteria for tapping the fund:

Employees must leave building to build diverse external network.

Must report back about what they learned so gains are shared.

No more than 3 takeaways in bullet form

Saved on a shared drive

Other employees may follow up

Many firms allow employees to expense business lunchs but not networking lunches Longer v Short term view.

Your CEO does the later all the time & the firm benefits as a result.


(1) create a budget for employees (2) create shared drive for firm

Want to take somebody smart to lunch,

expense it, no approval needed.

For highly networked & entrepreneurial

employees, you now have a recruitment

marketing tool.


Working on cool project Have budget to build your network on company time End of tour more marketable thru your network If another opportunity is not inside the firm, CEO will

leverage her network to augment your own to find employment.

Advantages


Network smart, not

hard!

Next Webinar September 24

A Cognitive Approach to Goal Setting


Vincent Suppa - Amazon Web Services...This is the Silicon Valley Model Adaptability & risk taking acknowledged as crucial to success. Entrepreneurs huge impact when networks are strong.

Documents