Clear Goals Help Remote Workers

By: Tony Kerekes

The post Clear Goals Help Remote Workers appeared first on SpriggHR.

5 Business Disruptions Examples and Key Takeaways

Understanding business disruption can help you get a better, clearer understanding of what true and productive innovation is, and possibly, improve your company’s overall results. 

What is Business Disruption? 

If you have ever encountered an article or think about a piece of popular new software, app, or tech-based product that has skyrocketed in use recently, it’s likely that at some point, you encountered it being described as “disruptive”. A hot-button term thrown around regarding many different business innovations, when it is applied to concepts in your own organization, it can be easy to write off as an invaluable assessment.  

However, “disruption” goes beyond rudimentary critiques of start-ups and failed companies and products. Understanding what business disruption is can be the key to your understanding of what strong innovation is and can even help improve your business to produce more truly innovative services and products. So, what is business disruption? 

When it comes to business strategy, “disruption” refers to a process in which market entrants come armed with non-conventional business models, and what at their outset seem to be poor-performing products actually come to challenge and eventually replace industry incumbents over time. Simply put, it is the process in which an underrated, or unexpected, product or service starts to become popular enough to replace, or displace, a conventional product or service on the market.  

Innovation vs. Disruptive Innovation: What’s the Difference? 

The concept of innovation is heavily linked to the idea of business disruption, largely because the origins of disruptive products and services derives from an unconventional approach to business and market innovation. In “true” disruptive innovation, the unconventional product takes root at the bottom of the market and develops a poor reputation because of it. However, over time, and due to a number of factors such as lower costs or higher accessibility, the product actually becomes more appealing than its contemporaries within the industry.  

This is not the same as the traditional approach to innovation, also referred to as “sustaining innovation”. Traditional innovation is when new inventions and modifications are introduced by businesses in an attempt to stay relevant with customers, and competitive in the job market. That is not to say these innovations are invaluable, but they do run a higher risk of becoming too sophisticated, too inaccessible, or too expensive to hold any lasting power on the market. As a result, when sustaining innovations are deemed too frivolous, customers begin to look to less expensive, sometimes radical alternatives to meet their business needs, spiking the success of those disruptive innovations.  

Business Disruption: Examples and Key Takeaways 

The typical defining traits of disruptive innovations are lower gross margins, smaller target markets from the outset, and a product or service that is usually much simpler than their industry contemporaries. 

However, organizations need to remain on guard when it comes to labelling any sort of industry-challenging innovation as disruptive. If the term is used too facetiously, it begins to undermine what true disruption actually is. It shines a spotlight on start-ups that have already garnered significant attention, while true market disruptors are climbing the industry ladder elsewhere, unnoticed by the giant competitors they’re meant to replace. 

In order to develop a thorough understanding of what true disruption actually is, it is helpful to look at real-world examples of business disruption, and recognize when the term was suitable, and when it was not.  

3 Examples of What Business Disruption Is 

1. Netflix and Streaming Services

Netflix and all other streaming services are in the process of an ongoing disruption in the entertainment industry. They largely influenced the slow extinction of video rental stores and are now responsible for the ever-growing cancellation of cable subscriptions worldwide. 

OTT options (over-the-top, in reference to devices that go over cable boxes to provide access to TV content) emerged seemingly out of nowhere several years ago and have since skyrocketed into the leading position in providing entertainment to customers. It was deemed a low-cost alternative to conventional subscriptions from the get-go, and once customers caught on to the rising popularity and innovation offered by streaming services, they began to think of their media consumption in an entirely different way.   

2. Wikipedia

A lesser recognized form of true disruptive innovation is the international hub for easy-access research, Wikipedia. For centuries, it was encyclopedias that existed to provide important details on various subjects. That were written and published for profit, with hardcover volumes being released regularly due to the constant updates and changes to information that needed to be included. Wikipedia eradicated that necessity for expensive, unsustainable information access. It is constantly updated, available for free, and though it has an air of distrust surrounding the information it presents, it still was enough to drive Encyclopedia Britannica to publish their final volumes back in 2012, after 244 of circulation.  

3. Skype

Skype, and video chatting platforms such as Google Teams and the booming Zoom, are perfect examples of true business disruption. While the existence of these types of platforms have been the norm for years, its conception was far more disruptive than many may remember. It introduced a new way of international communication, where users globally can chat, call, and video chat with each other for free. While its original target market was small, a key indicator of a disruptive innovation, Skype’s daily user count has ballooned up to 40 million. In response to Covid-19 and the increased demand for virtual meetings and learning spaces, Zoom increased its monthly active user count to 12.92 million. For some, these disruptive innovations have almost entirely replaced mainstream forms of communication altogether. 

2 Examples of What Business Disruption Isn’t 

1. Uber 

Often cited as an example of disruption, the modern tech giant Uber is not an actual example of true business disruption. On the surface, it does have a few of the key indicators of a disruptive innovation. It has almost completely replaced the taxi industry for many travellers throughout the U.S. and internationally, with an annual revenue coming it at 65 billion USD last year alone. It offered a traditional service at a considerably lower price point and tore up the rule book of the taxi industry altogether. 

But, Uber still cannot be classified as disruptive, since it didn’t open up a new market or capitalize on low gross margins. The taxi industry was in no way suffering or seeking rapid innovation in fears of it going under. Uber simply took the typical, successful taxi service model, and upgraded it with tech to make it more convenient and comfortable, and less expensive for the consumer. While both extremely innovative, and wildly successful, Uber cannot be classified as a disruptor.  

2. Google

Google as a branded corporation has evidently explored, and dominated, many areas of tech. While it could be considered a disruptor in some of those fields, its emergence as the dominant search engine is largely mislabelled as a business disruption. Google was one of the first online companies to prove the value and potential of online search, and the very first to make astronomical amounts of money from online advertising. This means it did play a critical role in helping to spawn an entirely new industry, if not several. However, it still cannot be classified as a disruptor, simply because it wasn’t the first search engine. Similar to Uber, it took an existing model and improved upon it in way that pushed them to the top of the industry. While an extremely impressive feat, this doesn’t qualify as a true disruptive innovation. 

Key Takeaways 

Evidently, all entrepreneurs are not likely to found corporations or products as internationally and historically successful as those listed above but garnering a true understanding of what innovation is involves distinguishing it amongst some of the top corporate performers that exist today. Some of the key takeaways from these distinctions about innovation include: 

• Not all innovation is disruptive, and it doesn’t have to be. Disruptive innovation is only one type of innovation. In order to be a true gamechanger in your industry, you don’t necessarily have to be a “true” disruptor.  
• True disruption is risky. Even with a good vision, there is no guarantee that a new technology or disruptive innovation will actually take hold in your industry. Some inventions require several phases of evolution before they reach their final, most effective form. That means several losses of inventions in the shuffle before you reach that final point, and losses from unsustainable practices, market shifts, or stagnation. 
• Disruption is oftentimes stealthy. Understanding business disruption means understanding that it is far more than simply creating better ideas for an industry. A large part of it is staying on the defensive, keeping an eye out for new competition that might disrupt the industry in the future. If a start-up is labelled as disruptive, you should take notice, but the biggest threats are those you never see coming. Take all market threats seriously, and don’t discount underperforming competitors with lower profit margins and a smaller target market. 
• Business disruption takes time. While there are obviously some exceptions, no truly sustainable industry disruption happens overnight. Wikipedia’s conception was in 2001, meaning it took them 11 years until they overthrew Encyclopedia Britannica. Uber was founded by two graduate school friends in 2009 and didn’t expand outside their base city of San Francisco until 2 years later. True business disruptors don’t change the market entirely right after they enter it – it can take years, and sometimes decades, for their innovative ideas to take hold.  

In Summary 

When you have a thorough understanding of what business disruption truly is, you’ll not only be able to recognize and wade through those mislabelled start-up articles that circulate in market gossip every few weeks, but you’ll also be more prepared to find faster, more sustainable forms of innovation for your own company. You may not find yourself creating the next Netflix, or Zoom, or Wikipedia, but you can at a minimum guard yourself and your company against potential industry disruptors, and come up with more competitive solutions that will keep your business thriving well into the future. 

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5 Leadership Trends in 2020 

In a time of ongoing, and unprecedented, organizational disruption, being a great leader is critical in keeping your organization on track towards success, even in the face of unfamiliar challenges. As a leader, it is important to recognize disruptions not as obstacles that will hinder your advancement as a company, but rather opportunities to improve upon existing organizational processes, or develop new ones better suited to the modern business world.  

Why is it Important to Stay Up to Date on Current Leadership Trends? 

If a leader wants to be truly engaged with the work they are doing, they need to stay on top of all the current trends that are influencing their company, industry, team members, and themselves. Today, organizations world-wide are seeing massive macroeconomic shifts in the market, shifts which are largely impacting the finances, success, and morale of the company. Being a good leader is as critical as ever, and a central component of that is reframing the way in which you approach leadership itself. 

Changes, whether rapid or gradual, familiar or unfamiliar, should serve as indicators for how to improve on how the company is operating. Disruptions can be challenging to navigate, especially when they are deeply unfamiliar and unprecedented like those companies are feeling today. But, they also have the potential to be a great source of inspiration when envisioning the future of the company, leading to new methods of organizational operations that may not have been possible as recently as last year.  

Innovation in Leading the Disruption 

Every disruption has the possibility to open another door to bigger and better opportunities. The key is to recognize which business drivers are critical in the emergence of disruptions. Some of the annual trends that drive organizational change include: 

Accelerating Disruption

Evidently, organizations are facing one of the largest disruptions they have likely ever had to deal with in recent history. Instilling plans of actions for recovery is critical, but so too is the acknowledgement that other disruptions are not on pause while you deal with this one. Companies should continue to monitor market trends and disruption risks and have a plan of action for how to leverage those disruptions for strategic advantage. A critical part of this is recognizing the importance of disruption itself, and the opportunities that can arise if you manipulate the outcome of those disruptions in your favour. 

But how can you go about monitoring those trends, especially when so much of the market is in a major downturn currently? One essential method is the strategic business resilience planning process. Similar to how many organizational operating standards are rapidly changing in response to the effects of COVID-19, this process looks much different now than it did in the past. Its central aim, however, remains the same: to provide a structure for leaders to use when they consider both current and potential organizational disruptions. This process systematically lays out the stepos of envisioning the future of your company, enabling leaders to develop a business strategy that can turn disruption into business advantage.  

Adaptive Leadership

As business processes are changing and evolving to adapt to disruptions, so too should leaders. When a company faces a disruption that forces deep-rooted change in how operations are carried out, leaders need to be able to elevate the quality of their leadership to meet those new demands. 

Adaptive leadership can be seen as a practical leadership framework, helping both individuals and larger teams and organizations adapt to changing environments so they can effectively respond to recurring or sudden disruptions in a timely manner.  

Organizational Innovation

Well designed and executed innovation pushes any organization to the top of the competitive market, setting them apart of what they can offer to potential clients, customers, and shareholders. What many organizations fail to recognize, however, is how closely linked innovation is to adaptability. 

In times where disruption is the new norm, companies need to build innovation into their DNA. They need to get comfortable with the idea of constantly updating and adapting what they do, and how they do it, to meet evolving strategic goals and mend new issues that arise in those processes. Essentially, while leaders elevate their leadership, they should simultaneously be updating the overall systems, processes, and cultural beliefs that underpin their companies.  

Digital Transformation

Many leaders view the implementation of digital processes as a step in the right direction towards innovation and success. However, while it is critical to be effective at leveraging digital tools where appropriate, digital transformation itself has the ability to destroy value as well.  

When so many organizations are shifting to remote work that relies on digital connectivity and technological processes rather than in-person methods of business, the lines between the physical and digital worlds are becoming more and more blurred. Digital transformation is a trillion-dollar industry that aims to integrate digital technology into all aspects of business. However, the painful reality is that almost all digital transformation efforts fail. According to a McKinsey & Co. study, 70% of complex, large-scale technological change programs don’t reach their stated goals. In order to be successful in implementing these tools effectively and efficiently, leaders need to consider the realistic outcomes that such a transformative change will have on their organization. 

The Top 5 Leadership Trends of Today 

 When so many organizations are busy navigating a new way of working that is unfamiliar, the priority might be less on innovation and more on simply staying afloat. However, that doesn’t mean leadership trends fall to the wayside. In fact, many of them can be utilized to your advantage, strengthening your ability to successfully lead your organization through this disruption and boost overall morale, and ultimately, organizational success. 

Here are some of the top leadership trends of 2020 that can help you to better your means of leadership, even in times of crisis: 

1. Increase in Flexible Schedules

Offering flexibility in how employees work might seem an impossible task when work is required to be remote. However, implementing a system of a shorter workweek for example, may in fact be the solution.  A recent study also proved that employee morale improves with flexible work schedule arrangements, with over 90% of employees agreeing their enthusiasm for work would increase if their leaders were to be more lenient in discussions of time scheduling. 

Leaders should remain steadfast in reinforcing the requirements and expectations for the work quality and amount that is expected from their employees, but they should remain receptive to new ways of providing flexibility to their employees.  

2. Leading Remote Workers

As flexible scheduling increases, so too does the number of remote workers you have to manage. Not only that, but many organizations today are managing a near-complete remote workforce. Some may be finding that the reduced cost for employers to run the workspace, and the reduced commute times and costs for employees, are benefitting the organization. Some others, however, may be finding that their workplace-accustomed employees are having trouble adapting to this new way of working. 

As beneficial as remote work may be for some employees, not all will be receptive to it, especially when it is their only option. Workplaces are slowly reopening across the country, but workers and leaders alike should still be well-equipped to manage and work in remote settings as efficiently as they work in-office. Some general strategies leaders can use to remedy the unique challenges of remote work can include: 

• Remembering that remote team members will have varying responses to the new standards and expectations involved in remote work and that some employees have challenging work-from-home disruptions 
• Building and maintaining trust-based relationships, as much of the work you could monitor in-office, will be done without your direct supervision 
• Setting clear standards for conduct and expectations for work 
• Constantly communicating and maintaining a positive, morale-boosting company culture 
• Getting employees together face-to-face via online video chatting meeting rooms to increase communication and limit isolation  

3. Increase in Accountability

In the 2020 business market, accountability and radical transparency are more prominent than ever.  In the digital age where workflow and demands travel at rapid speeds, and where employees are digitally connected, executive leaders cannot afford to be uncommunicative with critical information. Similarly, with the abrupt increase in remote work, the need for personal accountability in employees and managers alike is skyrocketing. 

As a leader, managing accountability is one of the most critical parts of ensuring your relationship with your employees is trustworthy and strong.   

4. Employees Developing New Skills

The trends and advances that exist in the business world reflect the changes that are taking place around us. As the world constantly evolves and adapts to new situations and crises, so too do the workings of organizations worldwide. Employees grow, roles morph, and processes adapt to the changing demands of the market and the needs of the business. As a result of that, people need to constantly be acquiring new skills. 

Companies need to have a clearly defined process of how it is they are assisting their employees to develop the new and necessary skills required to succeed in the constantly evolving world.  While leaders cannot make people develop new skills, they can influence and challenge them to take the necessary steps. 

5. Human Resources: A Constantly Growing Field

Human Resource professionals play a strategic and important role as the world faces an unfamiliar challenge and workers are navigating a technological, distinctly un-human way of working.  Ensuring people adjust to their WFH environments is in fact, a very diverse undertaking.  Several studies conclude that employees are battling everything from loneliness to remembering to take breaks while combating the distractions of their small children’s needs.  There are also connectivity issues and coaching opportunities to engage employees in finding new ways in managing their workloads…to mention a few. HR will be tasked with extending support mechanisms that do ensure work continuance while respecting employee’s unique and personal needs. 

Leadership in Times of Distress 

Being a leader today is particularly daunting, but there is help to navigate your way through this unfamiliar territory. There is a surplus of resources available including your own colleagues. A trend emerging is to establish a weekly online leadership forum that builds on the exchange of ideas and collective support of the new leader’s requirements. 

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Remote Work Increases Engagement and Performance

By: Tony Kerekes

The Rise in Remote Work

It is becoming increasingly common for employees to work remotely, creating an emphasis on the need for goals to align with corporate objectives. Gallup has released a new article that notes interesting points about employee engagement and performance:

• Gallup research has shown that job flexibility increases engagement and employees that are engaged have higher performance. Highly engaged workplaces have 41% lower absenteeism, 40% fewer quality defects, and 21% higher profitability.  
• Gallup discovered the optimal engagement boost occurs when employees spend 60% to 80% of their time working off-site. 
• We are becoming used to some flexible arrangements, so in 2012, the optimal engagement boost was experienced by workers who spent less than 20% of their time working remotely. 
• Much of the research indicates that remote workers are more productive than on-site workers as well. In the article Gallup notes illustratively, with employees working remotely three days a week, a company can improve their average engagement rate and productivity by 5%, saving about $3,000 per employee. But the most engaged employees, who create an average 15% productivity bump would save the company up to $8,000 per employee. 
• A Gallup survey showed that 21% of millennials said they’ve changed jobs within the past year. To attract and retain millennials, organizations should consider the environmental impact as part of their employee value proposition. Gallup cites the reduced carbon footprint of notable organizations by reducing commuting. 
• Gallup notes that data shows that 51% of workers are actively looking for a new job or are open to one. Coincidentally, 51% say they would switch to a job that allows them flex-time. 

Results Only Work Environments

A key challenge managers encounter with remote workers is making sure they are working on the right things and keeping them connected. To borrow a term initially coined by Best Buy, the workplace becomes a Results Only Work Environment. The manager and employee set clear goals and recalibrate these as priorities change, have regular 1:1 and check-in meetings. Agile work environments have introduced concepts to keep the team apprised and focused. Technology can allow rapid-fire stand-up meetings and other collaborations to be effective both live or virtually.   
Click here to read the Gallup article from January 2020. 

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Rationale and Tips For Effective Reviews

By: Tony Kerekes

*Stats: HR Online in 2015, a Trinet/Wakefield Research survey of more than 1,000 US Millennials (full-time employees born after 1980).

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Why Eliminating Performance Reviews is Not the Answer

By: David Creelman

One of the most confusing debates in performance management is the talk about abolishing performance reviews. We hear that the once-a-year appraisal is too unpleasant and takes too much time, so it should be abolished. But wait, the proposed solution is multiple reviews over the course of a year; won’t that take even more time? We also hear that employees don’t like the appraisals that lead to pay decisions. Do they like it better if there is no appraisal meeting and raises are seemingly at the whim of their manager?

Trust me, there are some good ideas to be found in this debate if we cut through the hype. First, let’s be clear that this is all better understood as a reform or even an expansion of the performance review system. Not the abolition of it.

The how and why of multiple reviews

There is widespread agreement that performance management should be a series of conversations over the course of the year, not a single over-packed discussion. Josh Bersin estimates that 70% of multinationals are moving towards a model of frequent informal check-ins.[1]

The trick is deciding how those check-ins are structured.  There are four major elements to consider when designing your check-ins:

1.  Which performance reviews are required? Which are optional check-ins?

Good management (not just good performance management) requires many good conversations and check-ins over the course of the year. The performance management process should encourage as many optional meetings or informal discussions as appropriate for the individual. The process needs to include multiple check-ins (usually mid-year or quarterly) that are a little more formal.

2.  What is covered in the required reviews?

Required reviews can cover whatever the manager and employee have on their minds, but they work best if there is a clear purpose for each one. One large organization uses the following topics: goal setting, feedback on performance, personal development, and the compensation decision. They also have required quarterly recognition meetings. At this organization, unsatisfactory performance is handled as a different HR process that is separate from regular performance management.

3.  What additional features do we need?

If the work is project-oriented then the timing of the required reviews may be driven by the project cycle, not the calendar year. If the individual works on different teams then a best practice is to gather 360from the project team leaders and peers (ideally as a check-in at project milestones or sunset) in addition to their formal manager. In all cases, capturing information on an ongoing basis is helpful to ensure a better compensation decision.

4.  How do we manage the compensation decision? Do we use ratings?

There is no process for making decisions about compensation that doesn’t have some pain points—which is why most of the press on performance management reform tends to ignore the topic. More on it later in this article.

Abolishing appraisals and other compensation decisions

There are three main options for making compensation decisions:

1. Pay everyone the same.

Unions typically have standard pay raises, so an appraisal meeting is not needed. Keep in mind that there may be other reasons to appraise performance, such as gathering data for HR analytics, however, the dreaded appraisal meeting is avoided.

2. Pay for future performance/market value.

Sports teams typically pay for future performance not past performance (we don’t care how good you once were, we care how good you will be). This can be applied to a business setting where you look at the market rate/potential of an individual and make a salary offer based on that. You will still need an appraisal of past performance to estimate their future performance, but you don’t need to share it with the employee. Instead of an appraisal meeting, you have something very much like a contract negotiation.

3. Pay for past performance.

Most organizations want to pay for past performance, and this means there needs to be an appraisal. You could do the appraisal in secret and skip the unloved appraisal meeting however that is probably a step in the wrong direction. When the manager and employee set clear goals that identify what “meets” and “exceeds” expectations, with periodic check-ins, then the review is much easier and results in improved employee engagement and more positive outcomes for the organization.

There is one intriguing possibility discussed in the research from the Center of Effective Organizations: you can do an appraisal without putting a specific rating on it (i.e. a ratingless review).[2] For example, a manager can discuss the year’s performance and say something like “Overall you hit expectations and this is the raise you get”; that may be exactly equivalent to scoring a 3 out of 5 however the vagueness might (or might not) be more palatable. Ledford’s research found that having more frequent reviews led to positive employee reactions and while the evidence on ratingless reviews was not conclusive, they did not seem to do any harm.

The role of technology

It would be remiss not to mention that one of the reasons that reform of the performance management system is possible is because of performance management technology. Performance management technology is more efficient and secure than emailing spreadsheets around.  This enables HR organizations to have the time and energy to consider alternatives and to complete valuable analysis. It also makes it easy to prompt managers when they need to do reviews, remind them what the review should focus on, and record anything relevant. The prompts can appear in Outlook calendars as a check-in meeting, making it more likely to be actioned. Additionally, the technology creates a place to capture what the manager or employee feels is relevant to performance on an ongoing basis.

Poor performance and terminations

The issue of poor performance and terminations is a whole other topic. I like the idea of keeping this process separate from the main performance management cycle,

Wrapping up

It makes sense to move towards a performance management process that has multiple meetings. This should not be positioned as abolishing the review meeting. It’s also the case that it’s not simply a matter of saying “managers should have lots of conversations”; the system needs structure and HR has a number of design decisions they need to make.

It is also a good idea to emphasize feedback and development but if you pay for past performance then you cannot escape the need to make and communicate tough decisions about performance.

The reform of performance management won’t take all the pain out of the system, but it can make things better, especially if supported by appropriate technology.

[1] Peter Cappelli and Anna Tavis, The Performance Management Revolution, Harvard Business Review, October 2016 Issue HBR

[2] Gerald Ledford and George Benson, Ratingless Performance Reviews: A Quasi-Experiment CEO Working Paper Series G19-04(695) Nov 2019

https://hrdailyadvisor.blr.com/2018/10/02/what-tiger-woods-can-teach-hr-about-using-performance-improvement-plans-to-salvage-struggling-employees/

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4 Takeaways from the HR Tech Summit - New York City

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Eight Ways Team Charters Drive Success

By: Jilaine Parkes

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5 Ways to Become a Better Leader

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The Best Performance Tool HR can Give to Managers

By: David Creelman

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