Archive for the ‘Talent’ Category

Bert Sperling
by Bert Sperling
Tue Dec 30th 2008 at 1:01pm EST

The Secret of New York’s Success

Tuesday, December 30th, 2008

There’s a great post by Edward Glaeser (in the Economix blog of the New York Times), titled “New York, New York: America’s Resilient City.”

In it, he describes how New York has managed to avoid the decay that has afflicted many large older cities, and, after a brief downturn in the 1970’s, came roaring back as arguably the most influential single city in the world.

His explanation? In a word - “smart people.”

“New York still has an amazing concentration of talent. That talent is more effective because all those smart people are connected because of the city’s extreme population density levels. Historically, human capital — the education and skills of a work force — predicts which cities are able to reinvent themselves and which ones are not. Those people who are continuing to pay high prices for Manhattan real estate are implicitly betting that New York’s human capital will continue to come up with new ways of reinventing the city. “

Glaeser continues, describing why dense cities succeed…

“They thrive by enabling us to connect with each other, which then promotes learning and innovation. The current downturn will only increase the returns to being smart, and you get smart by hanging around smart people. As long as New York continues to attract and connect those people, the city will continue to thrive.”

Now here’s what every city planner wants to know. Is this replicable? Can this success be engineered or encouraged, and are the effects measurable in 10 years, 20 years, a lifetime?

Does anyone have successful examples of campaigns and projects to replicate this resilient infrastructure? Or perhaps, examples of some cautionary unsuccessful attempts?

Best wishes to everyone for a creative and fruitful New Year!

Alex Tapscott
by Alex Tapscott
Thu Dec 18th 2008 at 3:21pm EST

Net Gen Floods the Workforce: Place Influences Choices

Thursday, December 18th, 2008

I’m a member of the Net-Generation, people born between 1978 and 1997. At first glance, my cohort seems tailor-made for a decentralized and “flat world,” so we shouldn’t care so much about the place where we work. After all, the internet, like no other technology, has lowered geographical and temporal barriers for communication and collaboration, and N-Geners, like no other generation, are the most comfortable and capable working, learning, and communicating online. Case in point: I recently found myself collaborating on a project with two college pals on Skype (the free online video phone application): one in Palo Alto, California, the other in Alaska, while also chatting and sharing photos with a friend who was in an internet cafĂ© in rural Vietnam.

However, while technology has lowered barriers and allowed people all over the world to participate in the global economy, it’s a mistake to suggest now that ‘place’ is no longer important for today’s emerging creative workers. Indeed where one works matters now more than ever.

Whether interested in finance, law, politics, computer programming, consulting, or medicine, young friends and colleagues of mine are drawn inexorably to the epicenters and major nodes of their respective fields; in cities, suburbs, and exurbs that also happen to score very high on the creative class index. This is certainly true for my friend in Palo Alto, a city straddling the area between San Francisco and Silicon Valley. He is a talented computer programmer working for an internet start-up. But what about my friends in Vietnam and Alaska, you ask? Did Google just open a server farm in Juno? Is rural Vietnam the new Silicon Valley? Why do your friends want to live there? Truth is they don’t.

My Alaska friend was working for Mark Begich, a Democrat, who defeated the incumbent Senator (and convicted felon) Ted Stevens. If ever there was an appropriate time to say “got out of there like a bat out of hell,” Jeff’s escape from Alaska after the big victory was it. Jeff is passionate about politics, and he is now in Washington, D.C. looking for full time work. Truth is he would rather struggle for a little while in D.C. than be instantly employed anywhere else. After all, every politically engaged young person he and I know wants to be in the U.S. Capitol and, as a result, a burgeoning social scene of smart, creative, and ambitious young people has flourished there. Dave, my friend in Vietnam just graduated from McGill’s School of Management and is wandering Southeast Asia barefooted and bearded trying to ‘find himself,’ but really he’s just on vacation. Like me, he will soon find himself up to his elbows in financial statements and spreadsheets. He is returning to Toronto to work at a boutique private equity group. Jeff was drawn to the epicenter of the political world. Dave, a former business student with an entrepreneurial streak, will return to Toronto- Canada’s financial capital, because he knows the city offers great opportunity for a person with his interests (it also helps that he is a die-hard Leafs fan). In both instances, the where did not merely influence their decisions, it determined them. If anything, their stints in Alaska and Vietnam simply reinforce the notion that the Creative Class, and young people in particular, travel and move throughout the world with increasing ease.

Though not identifying it as the “Net Gen” specifically, Richard Florida presciently foresaw the emergence of a new generation of the “Creative Class” in The Rise of the Creative Class, a theme that has surfaced in ensuing works. His experience interacting with students at Pittsburgh’s Carnegie Mellon University revealed that young people are drawn to certain hubs, crowding together in thriving and diverse places where like-minded individuals share lifestyles, cultural tastes, and work interests. While the moniker ‘Creative Class’ is not generation-specific, by 2018, when all members of my cohort will be of working age, the Net Generation will, simply put, dominate the creative class. As Boomers retire and Generation Xers fill the ranks of senior management, there will be an overwhelming demand for these young, highly educated people. Attracting them to companies and regions where they can thrive and prosper will be the next great imperative for today’s corporate leaders and politicians.

I encourage everyone to share your thoughts and opinions with me.  If a conversation begins, I will be happy to engage in it with you.

Steven Pedigo
by Steven Pedigo
Tue Dec 16th 2008 at 10:20pm EST

100 Best Business Books of All Time

Tuesday, December 16th, 2008

Today, CEO-Read announced it’s “100 Best Business Books of All Time.” Among the top 100, The Rise of the Creative Class.

Congrats, Rich!

How has The Rise of the Creative Class shaped your area’s approach to community and economic development? Has the book changed your perspective on creativity and talent management? How? Share your stories with our team.

To learn more about the guide for the top 100, click here. The guide is set to be released in February 2009.

Wendy Waters
by Wendy Waters
Mon Dec 1st 2008 at 8:03am EST

Expect More “Stay Interviews” at Work

Monday, December 1st, 2008

A friend (who does not work where I work) recently confided that a rival company to her employer has approached her with a job offer. This company has approached her at least once a year for the past five years and she always turned them down. But this time, she’s likely to accept the new position.

Why?

  • Because in the current economy, the projects she has been working on will not be making much if any profit and therefore there are no bonuses she’d be walking away from this time.
  • And, her current position has become boring to her - nothing much is going on so there are few opportunities to learn new skills or gain new experiences.

Her employer relies heavily on her experience and will be shocked when she gives notice.

To prevent departures of top talent such as the one described above, many companies are now doing “stay” interviews. Instead of waiting until a valued employee announces their departure - and doing an “Exit Interview” - companies are finding ways to survey existing staff to learn why they enjoy coming to work and what new opportunities people would like to have.

Last week, the Globe and Mail ran a good article on the subject, focusing on USA-based companies and consultants. Here are a couple excerpts:

A young tech company in San Francisco, Experience Project Inc., also uses stay interviews, particularly with newer hires who are possibly feeling a little shell-shocked by the start-up’s long hours and intense workload.

“I’m trying to unearth things that are working well for them, things that are getting them excited and jazzed up about the job,” says Julio Vasconcellos, the company’s vice-president of business development. “I want to know what makes them get up in the morning so they’ll keep coming to work.”

At Panamedia Group [of St. Louis], the formalized stay interviews paid off because the company takes the data and acts on some of the best ideas. For example, when some employees started saying they would like to work on a project geared to smaller events – instead of those that drew upward of 5,000 people, which was what the company focused on at the time – Panamedia gave the new initiative a green light.

“It came out of their desire to watch the company grow and have something cool to work on,” Mr. Slawin says.

Stay interviews here offer not just ideas for retention but new directions for the business as well.

As companies try to increase productivity and improve their ability to keep top people in the years to come, having formal discussions about why people stay - as well as why they leave - will likely become increasingly common.

If my friend’s employer were doing this, they might not be about to watch top talent walk to a competitor.

Richard Florida
by Richard Florida
Mon Nov 24th 2008 at 1:21pm EST

Jane Jacobs or Adam Smith

Monday, November 24th, 2008

Jane Jacobs famously took on Adam Smith’s notion that specialization leads to growth. She countered basically that specialization can and does lead to doing the same thing better, but that it does not lead to creating new things and the new industries and work that go with it. For that, a social collectivity called the city was required.  Over at the NYT Economix, Catherine Rampell points to a new paper which finds that

ants that specialize are no more productive than ants that don’t. The author, an evolutionary biologist at the University of Arizona named Anna Dornhaus, studied how efficiently rock ants completed their tasks of brood transport, collecting sweets, foraging for protein and nest-building. An ant was considered more specialized the more it concentrated its work on one particular task.  She found that the ants that specialized in these tasks did not perform them more efficiently than ants that remained “generalists,” and in some cases performed their tasks less efficiently. Her conclusions: “My results indicate that at least in this species, a task is not primarily performed by individuals that are especially adapted to it (by whatever mechanism). This result implies that if social insects are collectively successful, this is not obviously for the reason that they employ specialized workers who perform better individually.”

Richard Florida
by Richard Florida
Thu Nov 20th 2008 at 2:44pm EST

Cowen on Gladwell

Thursday, November 20th, 2008

The book is getting snarky reviews but if it were by an unknown, rather than by the famous Malcolm Gladwell, many people would be saying how interesting it is. The main point, in economic language, is that human talent is heterogeneous and that the talent of a particular person must mesh with the capital structure of his or her time if major success is to result… The main enduring insight… is simply how much we live in a world of complementarity rather than substitutability… In reality the complementarity concept is easier to work with and also more fruitful for thinking about policy implications or for that matter the implications for management or talent training.  Success is fragile but foster competing cultures based on clusters of talent motivated by rivalry and emulation. Don’t filter out the eccentrics or the risk takers. It’s still a good book and a fun book.

The rest is here. I concur. I think it is the best of Gladwell’s books, actually. And he handled himself very well with Matt Lauer this morning.

Roger Martin
by Roger Martin
Thu Nov 20th 2008 at 9:22am EST

Design & Business Crossroads

Thursday, November 20th, 2008

While of great interest today, the discussion of design in business is hardly a new phenomenon. In a 1965 speech at the Rochester Institute of Technology, Hugh DuPree, one of a troika of DuPrees who presided over the company for half a century, described how his family went about connecting business with design. In the process, they transformed Herman Miller from a tiny failing residential furniture manufacturer to a paragon of American design:

“Design is an integral part of the business. The designer’s decisions are as important as those of the sales or production departments. It is his responsibility to recognize needs and solve them in his own way. There is no pressure on the designer to modify design to meet the market. Sales and Manufacturing have a responsibility to feed back to Design information that helps the designers to define the problem.

“But the designer decides how to use this information…. We decide what we will make. If the designer and management like a solution to a particular problem, it is put into production. There is no attempt to conform to the so-called norms of public taste, nor is there any special faith in the methods used to evaluate the buying public. Our designers must not be hamstrung by management’s fear of getting out of step. All that is asked of the designer is a valid solution.”

“ABSOLUTE CONTROL.” Hugh and his father, DJ, and brother, Max, believed the role of designers was to create “valid solutions,” while the role of sales and manufacturing was to provide feedback that would help designers define problems, and the role of top management was to protect the designers from the rest of the company: “In our company, the designers receive and depend upon feedback from Sales and Manufacturing, but they report only to top management.”

This philosophy follows from the initial edict of the first designer Herman Miller hired in 1931, Gilbert Rohde: “The designer was to retain absolute control over the production of his creations. The manufacturer would not be allowed to change the mechanics or appearance of a design to the slightest degree.”

The DuPree approach could be seen as the second broad model of modern management. The first can be credited to Frederick Taylor and Alfred Sloan. Taylor was instrumental in bringing science to the field of management with his time and motion studies in the early 20th century. Sloan was the legendary CEO of General Motors who helped establish the notion of modern professional management in the U.S. consciousness.

PRECIOUS RESOURCE. Thanks to Taylor and Sloan the business world saw that the role of senior management was to manage with dispassion and analytical rigor. The second model can be credited to early proponents such as Herman Miller all the way through to players such as Apple Computer.

This model brought the understanding that the modern analytical management of Taylor and Sloan should be supplemented with the artistic and creative sensibilities of designers such as George Nelson, Charles Eames, and David Kelley. In this second model, the role of senior management was to protect these precious designers and incorporate their thinking into the corporation’s decisions.

To DuPree, what exactly was this magical thing called design that required protection and that only designers could do?

“Designing then is a basic activity. It comes to grips with the very essence of a problem and proceeds to develop a solution organically, from the inside out, as opposed to ’styling’ which concerns itself largely with the distinctive mode of presentation or with the externals of a given solution. The design activity is based upon an understanding of the intrinsic principle of a given problem and its solution.”

CREATIVE TEMPERAMENT. To DuPree, designing clearly is a fundamental way of thinking; a different way of thinking-what we might call “Design Thinking”-than either that of stylists or salespeople or manufacturers. Stylists think about making things pretty, while salespeople and manufacturers think about making things profitable.

While defining his top management role centrally as protecting and exalting the designers, Hugh DuPree was not completely unconflicted about his life with designers: “Like it or not, designers are important; indeed, vitally essential for the success of a business enterprise.” “Like it or not” - an interesting turn of phrase that was perhaps a product of one too many conflicts with his indispensable but dictatorial designers!

But did his model, which had great designers protected by inspired senior executives from philistine line managers, take hold across the U.S. economy and have the effect he sought? By his own assessment: Definitively not. “American industrial programs of planned obsolescence have set up an industrial complex geared to producing waste, and a society trained to accept it.” Already by 1965, DuPree witnessed the scourge of drab, uninspiring products dominating the industrial landscape that was a mere minor foreshadowing of the world to come.

TIME TO INTEGRATE. The DuPree design model worked for Herman Miller, thanks to the commitment of the DuPree family. However, to the extent that DuPree’s assessment is correct, the model didn’t take hold and produce the desired outcome across the economy. So we must consider the possibility that if Design Thinking is critical, maybe restricting it to designers and protecting them from business people is not actually the most productive avenue to pursue. Perhaps eliminating the need for protection by turning business people into Design Thinkers would be more effective.

While for its time, the DuPree family design model was highly advanced and visionary, it is time for a third-generation management model. Rather than supplementing modern analytical management with design sensibilities, it is time to integrate design into management practice. The job of executives isn’t to protect designers from line management, but to help line management become Design Thinkers. It is time for the management discipline of Design Thinking.

To create a Design Thinking organization, a company must create a corporate environment in which it is the job of all managers to understand customer needs at a deep and sophisticated level and to understand what the firm’s product means to the customer at not only a functional level, but also an emotional and psychological level. It must also create a culture in which line managers are not satisfied with merely serving customers, but insist on delighting them and making them feel the company is their partner, friend, and confidante.

FOLLOW THE TRAIL. It must create an operating environment by which line managers experiment with new ways of delighting the customer, realizing fully that some new ideas will fail, but that in failing these efforts have valuable benefits. Even failed experiments help convince customers that the company is aiming high, and the feedback will help them come up with newer, better approaches. In this operating environment, line managers will view customers as people with whom to prototype and test new ideas, as colleagues in innovation, sitting on the same side of the table.

The great firms of the 21st century will be those that recognize the goal isn’t to supplement analytics with design; it is all about integrating design and management. Everybody with an ounce of sense and a checkbook can supplement. Only those with passion and courage can and will integrate. And those who integrate should whisper a “thank you” to the DuPrees who blazed a path that made the notion of integration a true possibility.

Originally published in BusinessWeek.

Kwende Kefentse
by Kwende Kefentse
Tue Nov 18th 2008 at 1:20pm EST

From Toronto to Rome: The Education Situation…

Tuesday, November 18th, 2008

While I know that Richard is the official ”Global Trends” guy around here, I hope that he won’t mind my pointing one out; if not a trend, a global synchronicity at least. In two of the world’s great cities - Toronto and Rome - disagreements in educational policy have led to strike situations.

In Toronto, from the Globe and Mail:

The campus was a ghost town yesterday, the first day of the strike by contract faculty, teaching assistants and graduate students, with classes for more than 50,000 students cancelled and pickets letting cars onto university grounds only every few minutes.

There are no plans to resume negotiations.

Christina Rousseau, chair of the Canadian Union of Public Employees Local 3903, said the striking workers are waiting for a signal from university administrators that they are ready to return to talks.

“Right now the ball is in their court,” she said. “We feel it is their turn to make a move.”

The university has offered a 9.25-per-cent wage increase over three years. A university spokesman said the administration is willing to go to binding arbitration.

The workers have asked for a two-year contract with a wage increase of 11 per cent over that period. The demand for a two-year deal is part of a broader strategy by CUPE Ontario to co-ordinate bargaining on all Ontario campuses in order to gain leverage at the negotiating table.

And in Rome from the BBC:

Sleeping bags in lecture theatres, lessons in parks, people wearing plasters on their faces. They are just some of the ingredients in Italy’s hugely divisive row over education.  The sleeping bags are being used by students, who have taken over a number of buildings. Lessons in some places are being held in parks, as classrooms are occupied, and the plasters are the symbolic sign of the “cuts” the students and staff are protesting against.

But these are not just isolated protests by a few disgruntled hardliners.  A number of recent marches in Rome have attracted up to half a million demonstrators.  Seasoned Italian commentators say they are the biggest in 15 years.

The protests are not just for university students. Secondary school teachers and pupils are also on the streets, as their slice of the education budget comes under threat as well.  The government is pushing its reforms because it believes universities and schools are inefficient and producing lacklustre results.

I also did a little bit of Facebook reconnaissance and found popular groups for and against the strike in Toronto, while Italy Education Minister Mariastella Gelmini’s page has been flooded with comments from young people on the situation.

While both are complex and ultimately different situations, one of the few comparables is popular support: In Rome it is overwhelming, while in Toronto it’s very divided. With starkly different political climates, I can’t speak on how well this bodes for either side, but it will be interesting to see how both situations are resolved. They each represent what the prospective futures of significant numbers of young people within their respective regions will be like. In turn, this will ultimately affect the overall prosperity of the regions.

And now, as always, some music.

Wendy Waters
by Wendy Waters
Mon Nov 17th 2008 at 7:57am EST

Finding the Best Workplaces

Monday, November 17th, 2008

A turbulent economy can generate some “creative destruction” in your career path. The best thing that ever happened to me was the dot-com I worked for going bust in 2001 and that sector staying weak for long enough that I moved on and considered all possible industries. Where I am now turned out to be a much better fit.

A number of companies and industries will do some restructuring over the next few months, both shedding some workers but also potentially hiring others as they refocus. In case you end up with the opportunity (whether forced or not) to consider new career and employment possibilities, here are some helpful issues to ponder from a recent CBC website article:

Tips on finding a great place to work

  • See which employers have put some effort into building a high-trust culture.
  • Assess the space: Get a sense for the company’s physical environment. Do you feel inspired by the space itself, and what would the commute be like for you? How would that affect your work-life balance?
  • Talk to people who say the workplace is tops: Do you have a sense that they’re proud of what they do? Is there a feeling of camaraderie that you get when you go into the workplace?
  • Ask about the perks: If an employer is describing the perks or benefits that they offer, make sure you ask how many employees actually use those perks and benefits.
  • Long-term plan: Ask about the opportunities for career development and progression throughout the organization. What’s the long-term plan for you in this organization?

The article mentions several top Canadian places to work and how they live up to these above standards. For example, at pharmaceutical giant Nycomed’s Canadian operation:

The company’s permanent employees have access to $3,000 a year in post-secondary tuition funding or $5,000 for post-graduate studies. Last year, about 30 percent of the company’s employees took advantage of this perk.

Being encouraged and supported to grow your knowledge and skills is a wonderful workplace benefit that also can provide new options in times like these.

And, in these turbulent times, a great place to work also offers some job security as those companies tend to outperform rivals:

Companies on the Great Place to Work list outperform standard stock market indices by a factor of two to three,” Jen Wetherow, the institute’s director, said. “Their results are above average.”

What will be interesting this economic cycle, and something I’m actively trying to monitor, is which employers stick with plans to create better, more effective workplaces as productivity enhancing tools and means to better attract and retain talent. I’ll also be looking to see if talented people continue to keep criteria like those on the list above in mind. So far, intriguingly enough, I’m hearing affirmative from both camps (particularly in the accounting / finance / consulting sector).

Richard Florida
by Richard Florida
Wed Nov 12th 2008 at 8:19am EST

10,000 Hours

Wednesday, November 12th, 2008

Malcolm Gladwell’s new book, Outliers, is in launch mode. The Globe and Mail has a terrific interview.

Anything that is cognitively complex seems like it requires at least 10,000 hours… It’s deliberate practice, so it’s focused, determined, in environments where there’s feedback, where there’s a chance to really learn from mistakes. What’s fascinating about this notion that expertise arises only after 10,000 hours of deliberate practice is that it seems to apply incredibly broadly to an astonishing array of different professions - from playing chess to writing classical music to being a brain surgeon to playing hockey…

A critical part of high achievement is not a function of your IQ, your analytical ability, the size of your hard drive in your brain, but rather, a function of your ability to navigate the world and get what you want from the world… We radically underestimate how much high achievers rely on that practical side.

There’s no way around it. There’s no shortcut. One of the things that drives me crazy about a lot of educational reform ideas is that they try to find shortcuts: a charismatic principal; a cool technology; a fancy new school. All of those things are beside the point. This issue is, do you have enough time in school to master the things you need to know…

Because we squander talent. Even in a country like Canada, where hockey is a priority, an obsession, we’re squandering a huge amount of hockey talent without realizing it. We could have twice as many star players if we just changed the institutional rules around finding talent. To me, that’s such a powerful lesson. Because it just says, look, in a simple area like hockey, in a country that cares more about it than almost anything else, if you’re still squandering 50 per cent of your ability, how much more are we squandering everywhere else?

Now extend that line of thinking to just about every area of human endeavor. Can’t wait to read this one.