Event: Power Up Breakfast, October 23

Are you a candidate in the market for a new role or interested to understand the current market conditions?

Date: Wednesday 23 October, 2024
Time: 7:30am – 8:30am AEST

Meet Future Leadership Partners and Talent Consultants, over coffee and a light breakfast at our Melbourne office to discuss the permanent executive market and map your plan to be an active candidate.

Register via the Future Exchange Community. Members login here.

Not a member yet? Sign up here.

The Four B’s Framework for Talent Acquisition

The 4Bs framework Buy, Build, Borrow, Bridge – has become an essential tool in talent acquisition. The past few years have brought about significant changes in resourcing, legislation, and socio-economic conditions, forcing organisations to rethink how they attract and retain top talent.

For emerging organisations, established companies re-evaluating their capabilities, business owners future-proofing their teams, and HR leaders optimising budgets, the 4Bs offer a flexible, creative approach to management, executive and specialist talent acquisition. Each can be strategically deployed to meet your organisation’s unique needs.

Buy

Buying talent—or hiring external professionals—is a common strategy when an organisation needs specific skills or fresh perspectives that cannot be quickly developed internally. This method is particularly valuable in executive search, where the right leadership can drive significant growth and innovation. However, it is essential to consider the costs associated with hiring, onboarding, and potential cultural alignment challenges.

Build

Building talent involves investing in your existing workforce through training, upskilling, and intentional development programs. This approach is ideal for organisations with a strong internal talent base and a commitment to long-term growth. While this strategy fosters loyalty and morale, it requires time and resources, and may not provide an immediate solution to pressing challenges.

Borrow

In the age of the gig economy, borrowing talent has become increasingly popular, especially in management, executive and specialist roles. Companies are turning to consultants, contractors, and interim executives to address specific challenges without the long-term commitment of a full-time hire. This strategy is particularly effective for organisations with limited budgets or those needing to address immediate issues.

Bridge

Bridging talent through strategic alliances, partnerships, and talent-sharing programs allows organisations to tap into broader talent pools and access new markets. This approach is powerful for companies looking to expand or innovate, but it requires strong alignment and collaboration between partners to avoid operational and cultural pitfalls.

Combining Approaches

In an environment of rapid change and higher executive turnover, particularly in Australia, a combined approach can be effective. For example, leaders may elect to first borrow talent to meet immediate needs, whilst buying through executive search to secure long-term leadership, and then look at building internal programs to enhance future capabilities.

Originally posted on LinkedIn

Online Event: Becoming an Interim Executive

Have you ever thought about transitioning into a portfolio career and becoming a professional Interim Manager?

Join our Interim Executive team online to discuss the world of Interim Management.

Date: Wednesday 9 October, 2024
Time: 7:45am – 8:45am AEST

At this online event the Interim Executive team will talk through the current interim landscape and pose some compelling questions to understand the career motivations for becoming an Interim Executive. They’ll also talk through examples of Interim opportunities, practical tips around preparing for a new career path and what you can expect from our team.

Please email Hayley Roylance to register your attendance: [email protected]. 

This event is brought to you by Future Exchange. Not a member yet? Sign up here.

Exchange over Lunch with Belinda Clark AO in Geelong

How can we anticipate future workforce skills and requirements in order to build capability personally and across your organisation?

Join Australian cricket legend, Belinda Clark AO to discuss the challenge of growing capability in today’s leadership lifecycle.

Date: Wednesday 16 October, 2024
Time: 12.15pm for a 12.30pm commencement.

We look forward to welcoming you to contribute to our theme: “Anticipating the State of Play: Leading the capabilities required for the future”.

• Assessing and acting on capability gaps
• Planning for the unforeseen circumstances
• Growing capability in self (learning, relearning, unlearning) and others (intergenerational leadership / passing the bat)
• Growing self to grow others through the organisation

Hear about Belinda’s playing career, her transition to executive work and now to entrepreneur (and her bronze statue at the SCG!).

To express your interest in this event, please contact Liz Anderson on [email protected]. RSVP’s will close once all places are filled.

This event is brought to you by Future Exchange. Not a member yet? Sign up here.

Driving Efficiency and Empowerment: 5 Trailblazing Examples of HR Technology Innovation

In the dynamic landscape of modern business, human resources (HR) technology innovation stands as a strategic imperative. Leading HR innovations intricately combine advanced technologies and software, data-driven decision-making, and an unwavering commitment to elevate the employee experience, and nurture future leadership skills.

Dale Bracegirdle, Partner of Leadership Development in the Future Leadership Advisory team says “Technology is certainly a powerful enabler, and AI a force multiplier when it comes to scale, but we must remember that the human experience underpins and justifies every HR technology interaction. I think it probably remains true that culture will eat HR technology for breakfast!” While people leaders grapple with the challenge of cultivating a tech-enabled culture, the opportunities for productivity and performance enhancing tech adoption proliferate.

The substantial growth predicted in the HR software market reinforces the profound impact of technology on the future of human resources. Valued at USD 15.59 Billion in 2020 and expected to soar to USD 33.57 Billion by 2028, with an impressive CAGR of 10.10% from 2021 (Statista, 2022), these figures underscore the instrumental role of technology in shaping the trajectory of HR practices.

In parallel, HR practices are undergoing a paradigm shift, with some evolving into sophisticated ecosystems that leverage technology not just to navigate existing challenges but also to proactively anticipate and address the dynamics of the future workforce. Throughout this blog, we will explore five exemplary instances of human resource technology innovation, highlighting the transformative power within the leadership development and executive recruitment landscape.

 

Embedding Inclusive Practices within HR Technologies

The Diversity Council Australia (DCA) is a great advocate for diversity and inclusion in the workplace, offering various recommendations to help organisations implement more inclusive recruitment practices, including through HR technology adoption. While specific recommendations can be found on their website, the core principles typically emphasize creating recruitment processes that minimize bias and maximize the diversity of applicants.

Bias Reduction:

AI assumes a crucial role in mitigating unconscious bias in recruitment processes by grounding decisions in objective data rather than subjective judgment. According to Javed and Brishti (2023), ‘AI is unbiased and allocates equal weight to candidates based on selection criteria, freeing recruiters from mundane and repetitive tasks.’

L’Oreal, the cosmetic industry giant, serves as a compelling illustration of AI’s impact on recruitment. Through the implementation of AI, L’Oréal successfully eliminated previous gender-biased language, achieving an even distribution between male and female candidates—a milestone unprecedented in the organisation’s history (Sharma, 2018).

AI’s Role in Reshaping Recruitment Dynamics

AI tools have become instrumental forces, orchestrating a profound transformation in the recruitment landscape. They play an increasingly pivotal role in discerning the most qualified and predictably capable candidates from a diverse pool of applicants and profiles, as highlighted by Sekhri and Cheema (2019).

This transformative impact extends beyond mere efficiency gains; it signifies a paradigm shift that concurrently eases the burdens on HR professionals, and when inclusive recruitment practices are at the forefront, can also pave the way for a more strategic and insightful approach to future talent acquisition (Harisha B S et al., 2023).

 

The Impact of AI on Employment Recruiters Unfolds Across Various Dimensions:

Enhanced Candidate Matching:

AI systems significantly enhance candidate sourcing by efficiently aligning candidates with job profiles, surpassing traditional keyword matching through a more comprehensive evaluation of qualifications (Harisha B S et al., 2023).

This technological innovation optimises the effectiveness of employment recruiters, ensuring the identification and selection of highly qualified candidates aligned with the organisation’s strategic goals. This is particularly crucial in executive recruitment, where precision is paramount to meet the organisation’s leadership needs.

The Diversity Council recommends reviewing the input language used in job profiles and task explanations, ensuring that job descriptions are inclusive, focusing on essential criteria to avoid deterring diverse applicants. They also recommend the use of gender-neutral language, and avoiding jargon or culturally specific terms that might not be universally understood.

Automated Candidate Screening:

AI algorithms, powered by machine learning and natural language processing, rapidly assess resumes and profiles. This enables HR professionals and recruiters to shift their focus to more strategic tasks (Harisha B S et al., 2023).

The DCA notes that AI technologies can assist with implementing blind recruitment practices to remove identifying details that could indicate the gender, age, ethnicity, or other personal characteristics of candidates. Structured interviews with a standard set of questions minimize bias for all candidates, as well as using skill-based assessments and work sample tests that focus on the candidate’s ability to perform job-related tasks, rather than focusing solely on past education achievements and employment opportunities that can skew the playing field.

Revolutionising Talent Integration Through Digital Onboarding

In response to the dynamic changes prompted by the COVID-19 pandemic, organisations found it necessary to reassess their operational strategies, specifically adopting remote work, thereby influencing onboarding procedures. Digital onboarding emerges as a pivotal force, leveraging advancements to seamlessly integrate talent.

As the first interaction point with the organisation, onboarding transcends its traditional role, becoming a crucial socialisation process that establishes a robust initial bond (Field, 2015). Lebedzeva’s (2016) insights further underscore the transformative role of technology in shaping onboarding into a welcoming experience, accentuating its profound significance in fostering a positive organisational culture.

The research study conducted by Sheffield Hallam University (2021), “finds that digital onboarding has a significant impact on employee outcomes, following the perceptions of ‘dwindling social connectedness and personal wellbeing’, ‘meaningful and meaningless work’, and ‘poor employee relations’ among employees and their employers in the workplace’.”

This intentional integration of technology not only epitomises operational efficiency but also signifies a forward-thinking commitment to cultivating an elevated organisational ethos within the domain of talent onboarding.The DCA also recommends mentorship or buddy programs to help new employees integrate into the organisation’s culture.

Gamification Strategic Learning Enhancement

Gamification is a dynamic and innovative educational approach involving the integration of game mechanics into learning processes (Kapp, 2012). This methodology challenges employees, stretching the boundaries of their capabilities and learning capacities, and providing a critical, continuous feedback loop.

Larson (2022) highlights the multifaceted benefits of gamification in the corporate sphere, encompassing improved workforce recruitment and retention, increased program adoption, and elevated work performance.

This strategic approach not only cultivates essential knowledge but also positions individuals to acquire indispensable future leadership skills and developmental proficiencies, thus enriching the pool of talent poised for the organisation.

As Kruse asserts (2012), “There is no doubt that “gamification” is an important and powerful weapon in the arsenal for learning, marketing and behavior change of any kind.” When meticulously designed, gamification facilitates competence development, fostering an environment that encourages risk-taking and learning from failure within a secure context.

Unlocking Potential with Data-Driven Human Resource Analytics

The strategic integration of data-driven human resource analytics has risen as a formidable tool for organisations, empowering them to harness data-driven insights and make well-informed decisions across diverse HR domains.

Bondarouk, Parry, and Furtmueller (2016) assert that the field of Human Resource (HR) analytics has garnered substantial attention in recent years, underscoring organisations’ recognition of the potency of data-driven decision-making in efficiently overseeing their workforce.

Through the astute utilisation of both internal and external data human resource analytics, organisations stand to glean invaluable insights into their workforce, fortifying HR processes and steering organisational success (Marr, 2018). Marr contends that “HR teams can use data to make better HR decisions, better understand and evaluate the business impact of people, improve leadership’s decision making in people related matters, make HR processes and operations more efficient and effective…”

This sophisticated approach not only allows for a comprehensive understanding of the workforce but also facilitates the enhancement of HR methodologies, ushering in a new era of evidence-based decision-making. The seamless fusion of HR analytics with organisational strategies exemplifies a forward-thinking commitment, positioning organisations at the forefront of progressive HR practices.

Revolutionising HR Management Through Mobile Applications

The strategic assimilation of mobile apps into HR operations represents a fundamental transformation, challenging traditional norms and enriching accessibility for employees in the digital era.

The widespread use of mobile devices and advanced wireless networks has established the groundwork for deploying mobile applications, enhancing the efficiency and efficacy of various business processes (Pilarski & Björn, 2014).

Amid the ubiquitous presence of mobile devices, the incorporation of mobile apps in HR ensures a seamless and adaptable experience. These apps empower employees through self-service features, streamline performance management, deliver comprehensive training modules, and facilitate real-time communication.

As emphasised by Tonya and Bill (2013), mobile technology empowers HR to adopt a proactive stance, revolutionising key aspects of Human Resources. This deliberate integration of mobile apps reflects a dedication to innovation, highlighting a commitment to nurturing employee-centric practices in the contemporary workplace.

To effectively engage with digital employees, including the growing cohort of Gen Z workers, organisations embrace a tech-enabled approach. This involves integrating mobile apps and harnessing system analytics within the domain of digital human resources (Maditheti, 2017). This strategic realignment positions HR as a proactive force, aligning seamlessly with the evolving needs of both organisations and their workforce.

These five HR technology innovations epitomise a strategic dedication to technological integration, fundamentally transforming workforce practices and employment recruiters’ daily duties. This technological innovation encompasses the capacity to recruit the most suitable employees, foster the development of future leadership skills and knowledge, and contribute to a positive and enriching employee experience.

Such pioneering advancements not only position organisations as trailblazers in progressive HR management but also underscore a deliberate embrace of forward-thinking approaches that align seamlessly with the evolving needs of both the organisation and its workforce.

If you are seeking to advance your organisation’s HR strategies and elevate the employee experience through innovative practices, contact one of our specialised executive search and transformation consultants today for a discussion.

 

References: 

AFR Higher Education Summit 2024

AFR Higher Education Summit 2024

Yesterday I attended the AFR’s Higher Education Summit in Sydney. Attendees heard that “the sector is facing daunting headwinds”.  With universities poised for the imminent government announcement regarding international student caps, Minister Clare didn’t give away any hints.  Go8 Vice-Chancellors shared their concerns around caps and the flow on impact to critical research.

Clearly, there are some big challenges ahead for the sector.  There was good discussion around the student experience and the challenges of balancing changing needs of modern-day students.

Speaker Highlights

  • Jason Clare MP, Minister for Education, reiterated his commitment to The Accord and discussed progress to date with paid prac’s and establishment of the National Student Ombudsman.  He also highlighted a 50% increase in international students within VET.

 

  • Professor Sharon Pickering, Vice-Chancellor and President, Monash University, spoke of the reputational damage of introducing caps, noting that if we make it harder for students, they will go elsewhere, as occurred when Canada introduced similar caps.  Our student visa costs are already some of the highest in the world and students expect choice when selecting their preferred university.

 

  • Professor Mark Scott AO, Vice-Chancellor and President, University of Sydney, spoke of the risk of caps harming a major export market and the direct relationship to funding world class research.  He also spoke about the value of international students being long term friends of Australia.

 

  • Professor Genevieve Bell, Vice-Chancellor and President, Australian National University, discussed the inevitability of AI as a major disruptor in the sector, and emphasised the need to work out how to teach AI critically and incorporate it into the curriculum, rather than ban it altogether.

 

  • Professor Emma Johnston, Deputy Vice-Chancellor Research, University of Sydney, spoke about the benefit of government incentives for R&D within the business sector and industry to further encourage research partnerships with universities.

 

  • Professor Duncan Maskell, outgoing Vice-Chancellor, University of Melbourne, highlighted the tension between policy settings and the need for greater research funding. He claims “We’ve got to do a lot of work now, a lot of investment right now, to build the institutions and to build the teaching cohort that we’re going to need to teach these students.” (AFR, August 2024)

 

Congratulations to AFR for facilitating an excellent event and valuable discussion with sector leaders.

Future Leadership is a trusted advisory with over two decades of history placing diverse leaders at Australia’s most impactful decision-making tables. Please get in touch to discuss future-facing executive talent solutions for your organisation.

Leading a Culture of Psychosocial Safety in Higher Education

As a Higher Education talent specialist, I have witnessed firsthand the profound impact that psychosocial safety has on the wellbeing, productivity, and overall satisfaction of leaders, teams and students within academic institutions.

The Higher Education sector as a whole has been under immense pressure, with the impacts of COVID-19, the rapid technological adaption and the buzz of ramifications following the Universities Accord Report. Psychosocial safety refers to the psychological and social factors that influence an individual’s wellbeing in the workplace, including mental health, job satisfaction, and the presence of supportive relationships. In the context of Higher Education, this concept is paramount, as it directly affects the capacity of universities to foster an inclusive, productive, and innovative environment.

The Universities Accord, an extensive review that delivered a number of recommendations aimed at driving lasting reform in Australia’s higher education system, emphasises in the recommendations, the need for universities to prioritise the wellbeing of their leaders, teams and students. Additionally, the Occupational Health and Safety Act 2004 (OHS Act) and the Work Health and Safety Act 2011 underscore the legal obligation of employers, including academic institutions, to provide a safe and risk-free working environment, as far as reasonably practicable. On December 15 2023​, there was a legislative amendment to the WHS Act that included significant negligence penalty increases (Comcare, July 2024). ​This obligation extends to the psychosocial aspects of the workplace, highlighting the need for leadership literacy when it comes to the organisational, experiential, and relational factors that influence psychosocial safety.

 

Organisational Factors and Key Learnings

Organisational factors encompass the structural and cultural elements of an institution that impact psychosocial safety. In the context of Higher Education, these include university governance, policies, procedures, leadership practices, and the overall institutional climate. Universities are complex entities with diverse stakeholders, including academic and administrative staff, students, and external partners. The leadership within these institutions plays a crucial role in shaping the organisational culture and ensuring that it promotes psychosocial safety.

 

Learning 1: Know your legal obligations

Effective leadership in Higher Education requires a deep understanding of the legal and ethical responsibilities related to psychosocial safety. The OHS Act and the Work Health and Safety Act mandate that employers, including universities, must ensure a safe working environment. What is your team doing to communicate, monitor and address psychosocial hazards such as excessive workload, job insecurity, bullying, and harassment? Leaders are staying ahead of mandatory requirements by providing support systems such as mental health resources, clear communication channels, and transparent processes for reporting and addressing concerns.

 

Learning 2: Inclusive leadership is the rule, not the exception

Moreover, the Universities Accord emphasises the need for institutions to foster an inclusive and supportive culture. This includes understanding and removing systemic barriers to equity, and actively promoting diversity, equity, and inclusion, which are critical components of psychosocial safety. Clarity on roles, responsibilities, culture, and conflict resolution are key. Leaders today must ensure that all members of the university community feel valued, respected, and supported, regardless of their background or identity. This requires ongoing education and training on cultural curiosity, emotional intelligence, and inclusive leadership.

 

Relational Factors and Key Learnings

Relational factors encompass the quality of relationships and social interactions within the university community. Positive relationships, characterised by trust, respect, and open communication, are essential for psychosocial safety. Conversely, poor relationships can lead to issues such as conflict, isolation, and a toxic work environment.

 

Learning 1: People dynamics require active participation

Higher Education leaders have a critical role in shaping the relational dynamics within their institutions. This involves promoting a culture of collaboration, empathy, and mutual support. Leaders must model positive behaviour, demonstrating active listening, constructive feedback, and a willingness to address conflicts in a fair and respectful manner. Additionally, they must create opportunities for other members of the institution community to build strong, supportive relationships, such as through team-building activities, mentoring programs, and social events.

 

Learning 2: Respect at Work literacy is essential

The legal frameworks, including the OHS Act and the Work Health and Safety Act, emphasise the importance of addressing workplace harassment and bullying. These issues are significant relational factors that undermine psychosocial safety. Leaders must implement comprehensive policies and procedures to prevent and address harassment and bullying, ensuring that all members of the university community feel safe and supported.

 

The need for better leadership when it comes to psychosocial safety literacy

To effectively address the organisational, experiential, and relational factors that influence psychosocial safety, Higher Education leaders must develop better leadership literacy in the area. This involves acquiring the capabilities, skills, and attitudes necessary to create a safe, supportive, and inclusive environment. Leadership literacy includes understanding the legal and ethical responsibilities related to psychosocial safety, as outlined in the OHS Act, and the Work Health and Safety Act. It also involves staying informed about best practices in leadership, mental health, and organisational development.

Higher Education leaders are staying ahead of change by prioritising their own development, seeking out training and professional development opportunities that enhance their leadership capabilities. By doing so, they can better support their staff and students, creating an environment where everyone can thrive.

In conclusion, the importance of psychosocial safety in Higher Education leadership cannot be overstated. It is the responsibility of Higher Education leaders to implement policies, practices, and behaviours that address the organisational, experiential, and relational factors that influence psychosocial safety. By developing better leadership literacy, leaders can create a supportive and inclusive environment that enhances the wellbeing and productivity of all members of the university community.

Universities Australia Higher Education Summit 2024

Universities Australia Solutions Summit 2024

The theme of this year’s Universities Australia conference was setting the higher education agenda for the year ahead. With the Australian Universities Accord process now completed from a development perspective, leaders in the sector are heading into the implementation phase. As Professor David Lloyd, Chair, Universities, Australia commented “The government’s response is one we eagerly await, as it will have broad implications for not just universities, but for the nation.”

With ambitious targets for tertiary attainment at a level of 80% by 2050, a key theme in the report is that of equity. Australian Higher Education must be more inclusive, particularly for traditionally under-represented groups. The imperative goes beyond social morality; Australia must find a way to fire up its 60-year productivity low.

The conference creates a central opportunity for education leaders to explore how universities, working in partnership with government and industry, make Australia a more successful and better-prepared nation for the challenges and opportunities ahead. This sector is an essential partner to government in delivering national priorities, and to business, in thinking critically about the forces and transitions changing the way we live and work.

Universities Accord

Higher Education Speaker Highlights

Taking the stage at the event, Professor Mary O’Kane AC said she is “energised” by the report. She commends the achievement of a 20-year vision for a path of renewal in the tertiary sector. Education Minister Jason Clare told the Universities Australia conference dinner attendees, “We have a chance in the next few years to start work on something that will outlast us,” Clare said. “To plant seeds in a garden we don’t get to see.”

Education Editor for the Australian Financial Review picked up on the less optimistic sentiment, writing ‘At the heart of the universities’ accord… is the idea that we need to double the number of university students by 2050 to 1.8 million – or 55 per cent of people under the age of 35.’ Julie Hare notes, ‘The vision will not only require many billions of taxpayer and private dollars, but it will require a strategic, long-term commitment rare in Australian politics’ (2024). Notably, independent MPs including Zoe Daniel, Monique Ryan, Allegra Spender, Helen Haines and David Pocock, have enthusiastically embraced the accord, as has Nationals MP Darren Chester and to a large extent, Shadow Education spokeswoman Sarah Henderson.

The touted ‘TAFification’ of Australian universities sparked headlines, debating the component of the vision to move toward a seamless alignment between VET and Higher Education. The Hon. Brendan O’Connor, Minister for Skills and Training, held his ground and acknowledged that the Commonwealth had not previously had a vision for VET. The skills infrastructure in the past has been disjointed, including the recognition of prior learning and skills transfer. The introduction of Jobs and Skills Australia is a key mechanism for bringing greater cohesion and Minister O’Connor acknowledged the expertise of Professor Barney Glover who is newly appointed as the Chief Executive of the agency, an appointment that Future Leadership is proud to have assisted with.

At this time, Australia’s productivity is at 1.1%, down from its traditional level of 1.7%. The university and TAFE sector have a pivotal role to play in this, Historically, there have been weak incentives to improve teaching standards, with research still the measure of success in universities. The ‘Quality In Learning and Teaching’ reports indicate there are still too many dissatisfied students. Engagement with industry and Work Integrated Learning have been great initiatives but can and must go further. Catherine de Fontenay, Commissioner from the Productivity Commission highlighted that there is a challenge with the training and development of managers in Australia. Developing managerial skills is critical for productivity. More broadly, an increase in student outcomes and better-prepared and better-skilled students will have a positive impact on productivity.

The conference heard from The Right Hon Baroness Valerie Amos, Master of University College, Oxford University, on the subject of Diversity, Equity and Inclusion. She highlighted that 2024 is a pivotal year of change with 49% of the world’s population involved in national elections. Her leadership in widening participation and breaking through barriers has been significant. A key area for consideration is the role of “merit” in selection processes, it can be used as a way to make people feel they are not good enough. How can processes be redesigned to recognise the role of “potential” and the value of bringing a different perspective to the fore?

A strong vision that Australia should clearly set in its sights concerns committing to nominate the country’s first indigenous Vice-Chancellor. Higher Education institutions would be wise to begin the process of identifying a pipeline and providing training and development to position this pipeline as competitive for future opportunities.

 

Future Leadership is a trusted advisory with over two decades of history placing diverse leaders at Australia’s most impactful decision-making tables. Please get in touch to discuss future-facing executive talent solutions for your organisation.

Talent Strategies for the Future: Buy Borrow Build Strategies

The competition for future-ready talent is escalating amid the increasing integration of AI and data science. Emerging skills and resulting gaps underscore the need for organisations to adopt a highly flexible and adaptable approach to growth and development. “Most organisations will need to adopt a mix of various strategies to address today’s skills challenges,” says Ryan Hill, Director, Advisory, Gartner. “HR leaders need to select flexible strategies that enable the organisation to pivot quickly and fill gaps likely to occur as conditions change — including an exodus of skilled talent. Some talent strategies also work better than others in meeting the needs specific to a recovering economy.”“Business ecosystems change constantly. Opportunities come and go quickly. The race is won by those most agile and swift. To compete and grow, companies worldwide must regularly expand or reinvent their resources” Build, Borrow or Buy | Solving the Growth Dilemma (build-borrow-buy.com) The way to achieve this? A multifaceted, strategic approach that considers current and future states, intellectual capital, industry trends and the intersection where your organisation sits.

Challenges with Traditional Growth Strategies

While Buy, Borrow and Build can be looked at separately in the reasons for their application, they must be used in conjunction as an organisational capability to achieve lasting, sustainable growth.

“The problem is, most firms’ strategies emphasise just one type of growth–for example, some focus on organic growth, others on M&A. When these strategies falter, the common response is simply to try harder. Instead, firms need to find the pathway that is right for them” – INSEAD’s Laurence Capron and coauthor Will Mitchell, of Duke University’s Fuqua School of Business and the Rotman School of Management at the University of Toronto.

Implementation is not the end

The aim to grow faster with the least amount of disruption requires a constant finger on the pulse. Implementation is not the end. Continuous monitoring, reporting and evaluation are all highly essential to keep on track in a climate that is constantly evolving. This iterative process ensures that your organisational capability remains aligned with business goals and flexible to changing circumstances.

 

What is the Buy Borrow Build Framework?

The ‘Build, Borrow or Buy’ framework creates a holistic guide for talent management, ensuring alignment with the current state and future needs. The framework was developed by Laurence Capron and Will Mitchell. Build, Borrow or Buy | Solving the Growth Dilemma (build-borrow-buy.com) serves as a guiding light for business growth in a rapidly changing talent landscape.

 

Evaluating Buy Borrow Build Strategies

 

Buy

Buying involves acquiring external assets, whether that be human capital, infrastructure, or IP. This strategy will often occur through mergers, acquisitions, or outright purchases of other companies.

Questions to consider may be: Does acquisition of assets through acquisition or merger align with our strategic goals and provide the most efficient path to fill gaps in comparison to organic growth?

Advantages: Providing a shortcut to entering new markets, industries or products, this pathway allows organisations to quickly gain access to established resources.

Considerations: The integration process after a purchase can be complex, requiring careful planning and execution. Challenges involving cultural resilience and integrity may also arise, especially in the current climate of change fatigue.

Build

Build involves investing in and developing internal resources. As the alternative to other external sourcing strategies,this may include uncovering latent talent pools within your organisation, mapping workforce capabilities and developing them to align with predicted skills gaps, talent acquisition or R&D.

Questions to consider might be: Have you invested in a comprehensive view of the future-capability of your workforce? Future capabilities outlast rapid skills obsolescence and underpin worker’s ability for rapid skills adoption. When it comes to organisational development, how important is it that you own the pathways for growth?

Advantages: Building from within provides businesses with control over their growth trajectory, fostering a unique and tailored approach. It allows for the cultivation of a distinct organisational culture and identity.

Considerations:Building may require significant time, learning architecture and resources. The pace of growth might be slower compared to buying or borrowing, and success depends on the organisation’s ability to innovate and adapt, as well as the leveraging of learning ecosystem partnerships

Borrow

Borrow involves collaboration with other organisations to gain access to shared resources. While companies maintain strategic independence, they are open to sharing intellectual capital. This talent model takes a collaborate over compete approach and may involve the use of Gig Executive or Gig Consultant talent, the proactive use of secondments between organisations, and partnerships between business, academia, government bodies and startup communities.

Questions to consider might be:Could you obtain the targeted resources via relationships? Is there an organisation better placed than you to develop your product? How can we create a win-win situation?

Advantages: Borrowing enables companies to tap into external capabilities without the full commitment and complexities associated with acquisitions. It allows for flexibility and can be a cost-effective way to access expertise.

Considerations: Successful collaboration demands strong communication, aligned objectives, and mutual trust. The risk of dependency on external partners also needs to be managed.

How To Decide Which Strategy (Or Mix of Strategies) is Right for You

Building and scaling internal resources can inject new life into the organisation through innovation and intellectual capital. Conversely, internal upskilling takes time and commitment – two aspects which may mean time-based opportunities are missed.

“Reliance on only one dominant mode leads firms to believe that their success depends on working hard at implementing that one mode” Build, Borrow, or Buy: Solving the Growth Dilemma by Laurence Capron, Will Mitchell. It’s clear that skills and resource gaps cannot be covered by any one strategy. But what is the best approach? Or the right mix?

Gartner employs a 5-step strategy to figure out the right mix of approaches to strategic workforce planning.

Gartner’s 5-step approach to strategic workforce planning

Step 1: Define the critical skills needed.

Step 2: Analyse workforce for critical skills.

Step 3: Prioritise chosen strategies – Buy, Build or Borrow.

Step 4: Combine for the right mix.

Step 5: Guide business leaders.

 

Solving the Growth Dilemma

The stakes are high when it comes to addressing the resource needs of an organisation, the nuances of how this framework applies to each organisation are many and varied, therefore time must be taken to map out the current and future states of your needs. Strategic planning that integrates both employed and contingent talent can lead organisations towards long-term optimisation of cost, flexibility, and effectiveness.

“Business ecosystems change constantly. Opportunities come and go quickly. The race is won by those most agile and swift. To compete and grow, companies worldwide must regularly expand or reinvent their resources” Build, Borrow or Buy | Solving the Growth Dilemma (build-borrow-buy.com)

The way to achieve this? Future Leadership is a comprehensive talent solutions ecosystem, providing executive search, leadership development and coaching, workforce planning and transition, and access to on demand talent. Our team works together to syncronise a multifaceted, strategic approach that considers current and future states, intellectual capital, industry trends and the intersection where your organisation sits.

By embracing flexibility, agility, and a forward-thinking mindset, organisations can navigate the complexities of growth and business development, ensuring readiness to strike at the right time in seizing opportunities and overcoming new challenges in an exciting and ever-changing organisation ecosystem.

Book a consultation on the buy borrow build strategy for you

To truly fortify your organisation for the future, consider the transformative power of Interim Executives. Is your organisation in need of specialised talent? Why not consider engaging an Interim Executive to drive change in the short term? Our experienced interim leaders are ready to roll up their sleeves and start work alongside your team in as soon as two business days. Call our specialist interim team to agree on your perfect interim talent option today.

Doing more with less: Six leadership learnings in constrained environments

Authors: Dr Marianne Broadbent and Josh Mullens

 

Public sector organisations across the country are facing particularly constrained financial environments, with the mantra to “do more with less”.

Sometimes constraints do indeed lead to well-thought-through and innovative solutions. It often forces us to stop doing things we should have ceased ages ago.

Quite often, however, the authorising environment will not necessarily agree to those solutions.

 

Working through demands and priorities

Understanding the challenge of delivering on competing demands was the subject of a panel discussion at The Mandarin’s Melbourne conference, Rebuilding Public Service Trust and Integrity.

Future Leadership’s Dr Marianne Broadbent was a panel member in the session on how to address the issue of public sector resourcing, particularly as it relates to talent and recruitment. The mantra of “doing more with less” often leads to mutually incompatible demands or the need to prioritise in a way that can be politically unacceptable.

One such example of this dilemma occurred in at least one Australian state a few years ago in relation to that state’s TAFE services. The political demand was to reduce expenditure on the state’s TAFE system while transforming how the organisation operated, along with the requirement for a significant shift to more contemporary and industry-relevant educational approaches.

Concurrently the TAFE leaders were also advised that they could not close any TAFE facilities in any part of the state. Reducing the number of TAFE teachers was also not supported.

The reponsibility to then calmly and carefully explain the challenges of those largely incompatible demands and expectations is an unenviable task.

As Karen Batt, the Victorian state secretary of the CPSU, stated at The Mandarin conference: what public servants do is demonstrate a good level of agility in seeking to fulfil the agenda of the government of the day when there is often little understanding of what it takes to really deliver on those agendas.

In working with public sector clients in executive search and leadership advisory across all Australian states and territories, we have observed (and sometimes been part of) dealing with those expectations. A key focus has been how public sector organisations can demonstrate their agility in anticipating or responding to constrained environments.

 

Agility in people and talent leadership

At The Mandarin conference, Marianne shared six learnings that can shape effective people and talented leadership in constrained times.

1. Well-crafted and well-targeted professional development matters

We know that professional development has a great return on investment when it is well-targeted, has a clear link to the organisation’s goals, and enables and supports the behaviours desired. We would add that this is especially the case when those behaviours are openly and clearly modelled by senior executives. Often, one of the first things to go in tough times is professional development, but this is incredibly short-sighted. Cutting back on development can lead to skill gaps, decreased innovation, and lower morale – ultimately harming long-term productivity. Among organisations we work with, we have seen the clear benefits of well-crafted professional development programs in attracting and retaining great employees and boosting the reputation of the organisation. Leaders with opportunities to grow their skills, more often than not, demonstrate improvements in performance, increases in innovation and forward-thinking, and new opportunities for upward mobility.

2. Invest in executive and team development for sustainable leadership

Marianne emphasised the critical need for investing in executive and team development. By empowering leaders to grow their teams and nurture talent, we can uplift productivity across the board, especially in the public service. This investment isn’t just about immediate gains — it’s about building long-term resilience. We have worked with both public and private sector organisations who have had to reduce their headcount by 20% or more. When the executive team realised that many people would have much bigger roles, they reserved some funds to support those continuing in the organisation — knowing it was even more important for these executives and managers to be successful. They then ensured that they received significant support in the form of coaching, well-supported feedback for team leaders, and capability and development needs assessment. This enabled them to continue to grow in an environment where they also had permission to do things differently.

3. Provide continuity for high performers to drive long-term value

We often see that emerging high performers in the public sector are moved around to address problem areas or failing projects. Short-term appointments and constant movements to fix capability gaps might solve immediate problems, but will likely undermine long-term value by disrupting continuity. It’s crucial to balance quick fixes with strategic, long-term planning to ensure sustainable success. We need to reward high performers by allowing them to deliver over time and truly claim their achievements, not just have a series of “problem fixes” on their resumes. Alongside this comes the need to hold each person accountable for what they are paid to deliver.

4. Ensure the right blend of employees, contractors and consultants

Marianne noted that there has been much more focus recently on ensuring that, where there is a need for contractors and consultants, there is a guaranteed transfer of skills and IP. This should be part of the agency’s contract with each service provider. She highlighted the recent Department of Defence shift from relying on a technology team that was about 70% contractors to rebuilding an internal technology group for a target of 60% employees. This type of move not only enhances the understanding and management of capabilities but also aligns the workforce more closely with strategic goals. Workforce structure, balance and affiliation matters.

5. Strategic use of interim executives

In times of uncertainty, leverage interim appointments. Bringing in interim executives during periods of transition can mitigate risks and support overburdened teams. These leaders can ensure continuity and momentum, keeping the organisation on track through uncertain times. We are currently seeing regular interim arrangements for three, six and twelve-month appointments across sectors. This allows the organisation to work through how it wants to staff certain areas, without committing to longer term and possibly less relevant resources. The Future Leadership Interim Executive service (Gig Executive) is also finding that there is an increasing pool of talented executives who are keen to work as interims.

6. Understand what drives hybrid work and makes it successful

Marianne stated that, in relation to any working conditions, it is hard to backtrack and remove them even if circumstances have changed. This is particularly the case for hybrid working. The needs and suitability for hybrid and remote work will vary by organisation and industry, and we need to remember that most workers do not have a choice. If you work in a clinical role or a frontline retail role, if you’re a first responder, construction worker or train driver, then you can’t do your job from the comfort of your home. Where hybrid working is a possibility and there are questions about productivity, it is important to remember that productivity is driven by culture and mission — not a physical location. In many situations, though, it is critical to ensure that people come together to enable real exchange of viewpoints, encourage innovation, and ensure really good mentoring is in place. The key to success is creating an environment where people want to work together.

We know that the take up of these six learnings will be uneven across the sector, but the key message is that there are proactive approaches we can take to enable effective people and talent leadership in constrained times.

 

Originally published on The Mandarin, Monday, September 30, 2024

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