Capitalize on the Gig Economy

Gig Economy

Introducing the New World of Work

 

Work is changing.

Technology continues to change everything, and work is no exception. In just a few years, we have seen companies emerge from Uber to Instacart. New digital platforms are emerging that explore different business models.

Marion McGovern founded M Squared Consulting and Collabrus. Her new book Thriving in the Gig Economy: How to Capitalize and Compete in the New World of Work, is a thoughtful exploration of the new world of work. Whether you’re looking to make some extra money or you’re in management, you will want to familiarize yourself with these trends.

 

“The best gig is the one you’ve got.” –Live Shreiber

 

Gig and the New Economy

What is the Gig Economy?

Before I answer that question, let’s clarify the meaning of the word “gig.”  The term was first used with jazz musicians in the 1920s, where they would book one club for a week and another for a few days in a different club across town. A gig referred to work that could vary in duration and was for a variety of employers.  So gigs have been around for a long time. I started my company, M Squared Consulting, in 1988 to match independent consultants with projects. It was a gig economy company long before the term had even been coined. The “Gig Economy” refers to the people who work independently for a variety of entities as well as the companies that enable that work, both the new digital talent platforms, as well as traditional intermediaries and staffing companies.  Additionally, you could include the vast eco system that has sprung up to support this work, including co-working space, productivity apps, collaboration tools, and financial service products targeted at the independent workforce.

 

Successful gig workers have grit, resilience and learn from mistakes.

 

A few years ago, you received two calls that got your attention in a new way. How did that alter your thinking?

Actually there were three random and unrelated calls from venture capitalists and private equity guys who wanted to talk to me about digital talent platforms. One idea was for a platform for professional moms who wanted to work flexibly after the kids were older. Another was to build a pool of on-demand oil field services workers in Western Africa, and the third was to create a product to hire recent college graduates into entry level management positions in a way that would require no human intervention.  All of the players were technologists who had never run a service business, let alone a people-intensive one.  Much of the magic was to be in the algorithms which would match talent and opportunity seamlessly and quickly.  Many of the fairly basic questions I asked—like who would hire the moms? Would they be employees or contractors? And how would the platform make money?—had not yet been answered.  I was struck by the disconnect of talent being the most important thing to the success of an organization, but nonetheless the goal was to eliminate humans in the process of securing that talent. It inspired me to take a much deeper dive into the burgeoning world of digital talent platforms.

 

How is the Gig Economy growing?

Find a Common Mission to Engage Employees

thread

Find a Common Mission, Vision and Purpose

Despite billions of dollars of investments, organizations around the globe see employee engagement stagnant at only 13%.

David Harder, author of The Workplace Engagement Solution: Find a Common Mission, Vision, and Purpose With All of Today’s Employees, believes that CEO’s can successfully awaken the culture, and that you can create an enthusiastic culture and loyal customers. David is the founder of Inspired Work. Over 42,000 participants have engaged in his program to change careers, become better leaders, and launch businesses.

I asked him about his engagement ideas.

 

“Beware the barrenness of a busy life.” -Socrates

 

What are some of the characteristics of a culture that it truly “engaged”?

An engaged culture promotes continuous learning so that employees are not only growing, they are staying ahead of change. Even better, they are bringing positive change into the organization.

An engaged CEO or business owner leads an engaged culture. If she or he is disengaged from the culture, the employee population will also be disengaged.

An engaged culture recognizes that everyone walks in the door with various sets of life skills. Therefore, the organization makes sure everyone has the necessary life skills to change and engage. These include sales, presentations skills, the ability to influence, and clarity in how to build a vitally effective support system.

Self-reflection is encouraged in a strongly engaged culture. At Cornerstone on Demand, executives routinely ask questions such as, “What’s your next move?” “Where are you going next?”  After seven years employees are given a sabbatical for self-reflection. The point is, we cannot have engagement without a connection to one’s own truth. We have proven this thousands of times in our programs, which are question driven.

 

“More than 80% of America’s workers don’t like what they do for a living.” –David Harder

 

I’ve featured many people on this site talking about the problem of engagement. The stats are remarkable. We didn’t have sophisticated surveys years ago. Do you think this is a new phenomenon?

In the scheme of things, surveys are a bit old-school. The problem with surveys is they don’t produce change. Unless there is a solid commitment to produce an engaged culture, they often create more harm than good.

My point in The Workplace Engagement Solution: Find a Common Mission, Vision, and Purpose With All of Today’s Employees is that the majority of workers are checked-out, to various degrees. Getting them back requires a visionary commitment from the leadership but it also requires that we teach people how to change and engage. Notice that I rarely use one work without the other. Right now, according to a recent New York Times study, 48% of Americans view themselves as “underemployed.”  This is also a staggering number and yet it is reflective of workers at odds with keeping up with change.

 

Gallup: Only 13% of the world’s workers are engaged.

 

The Importance of Mission

How Servant Leaders Achieve Better Results

bridge to growth

How Servant Leaders Achieve Better Results

Recent studies show that only about 20 percent of workers understand their company’s mission and goals. Only 21 percent say they would “go the extra mile.” Less than 40 percent believes senior leaders communicate openly and honestly.

Today many feel that they are over-managed and under-led.

Jude Rake has over 35 years leading high-performance teams. He is the founder and CEO of JDR Growth Partners, a leadership consulting firm.

I’ve written and spoken about servant leadership all over the world. And so I read with great interest Jude’s new book, The Bridge to Growth: How Servant Leaders Achieve Better Results and Why It Matters Now More Than Ever and asked him to share some of his thinking and research with you.

 

“Servant leaders focus their organization externally on the marketplace.” –Jude Rake

 

Learn from Pat Summitt

You personally observed Pat Summitt’s leadership and watched her in action at half-time. You saw her growing other leaders, not demanding followership. It was such a powerful example. Would you share that story?

Several years ago when I was COO at a large consumer products company, we needed a keynote speaker for our annual marketing and sales meeting. Given that our company was a big sponsor of NCAA women’s college basketball, we decided to invite Pat Summitt to be our keynote speaker.

Pat inspired everyone with her energy and her famous “Definite Dozen Leadership Traits for On and Off the Court Success.” After our meeting at dinner, I shared with Pat that I had coached youth basketball for many years. She graciously took interest and invited me to be a guest coach at a Lady Vols game. I was floored! I took her up on her offer and eventually travelled to Knoxville for an unforgettable weekend.

I knew that Pat was an outstanding coach, and I admired her for her accomplishments, but I had no idea just how good she was at cultivating leaders throughout the Tennessee women’s basketball program. From the moment I stepped onto that campus, everything was executed with excellence. I soon learned that I would be shadowing Pat. I discovered firsthand why so many recruits chose the Lady Vols program, and why so many former players and coaches use terms of endearment when recalling Pat Summitt’s influence on their lives.

 

“Confidence is what happens when you’ve done the hard work that entitles you to succeed.” –Pat Summitt

 

Game day was quite a production, from pre-game activities to post-game reception. Anyone who watched Pat from the sidelines might expect her to lead everything with an iron fist. It was quite the opposite. Pat was clearly orchestrating everything . . . but the entire weekend appeared to be executed by everyone but Pat. She had done most of her leading and coaching in practice. The assistant coaches and players stepped up to the plate time and again, as did her administrative support staff. They took turns leading, and they collaboratively leaned on each other’s strengths to elevate performance throughout game day activities.

During the game, we sat immediately behind Pat and the team. At halftime the Lady Vols were trailing. We went into the locker room with the team. Pat was not there. I watched as the players—by themselves—took turns facilitating a brainstorming session about what had worked well and what needed improvement. Then they presented their analysis to the assistant coaches for input and guidance. Clearly, these players and assistant coaches had been trained well. They knew what to do without being micro-managed. Finally, Pat joined the team, and the players and assistant coaches collectively presented their conclusions. Pat succinctly graded their performance and assessments, added her own personal evaluation, and they aligned on an action plan for the second half. Everyone had led at some point. They leaned on each other’s strengths and focused on the biggest opportunities for improvement. They debated vigorously and respectfully. Ownership was achieved. There was no lecture or screaming. Half-time ended with a quintessential Pat Summitt inspirational call to heightened intensity and hustle, and the team went out and kicked their opponents’ behinds!

For me, this was an impressive example of a leader growing leaders and difference-makers, not just demanding followership. Pat Summitt showed us that leaders can be demanding, passionate, and ultra-competitive, yet still focus a significant amount of their time, energy, and empathy on the development of leaders at all levels of their organization. It’s what fueled her unprecedented results at Tennessee, and it’s the most important thing leaders do.

 

“Servant leaders bring out the best in others.” –Jude Rake

 

How to Build a Team

How to Forge Resilient Relationships in the Heat of Change

breakthrough

From Breakdown to Breakthrough 

Business leaders often focus on profits and metrics, living in spreadsheets and analytics. But what drives these results is people and relationships. So often it’s the resilient relationships, those that are forged in uncertain and difficult times that make the difference.

Author Michael Papanek takes three decades of experience with clients ranging from Apple to Google and shares it in his new book, From Breakdown to Breakthrough: Forging Resilient Relationships in the Heat of Change. His framework helps leaders develop the confidence to take these relationships to the next level. I recently asked him about his work.

 

“Resilience is a social phenomenon based on relationships, not an individual leadership attribute.” -Michael Papanek

 

Build Strong Relationships

What are the elements of a strong relationship?

A strong business relationship will have a number of attributes that set that relationship apart from others.  First, it must provide value to both parties, and it is “generative,” meaning the value together is more than any one person could create on their own: so that 1 + 1 = 3.  Strong relationships also create multiple tracks of value that would be hard to replace if the relationship ended.

One example of this is from the entertainment world, where the band the Grateful Dead was famous for their long relationship with their very loyal fans (which continues today, long after the passing of their leader Jerry Garcia).  In addition to music, the band created value in other key ways for the fans, such as supporting a community of fans (the “Dead Heads”) as well as creating an ‘outside the concert’ experience, and even income for some fans (by selling items at the shows).

Finally, a strong relationship contributes to key strategies or needs of each party.  Relationships that do not create value this way may be categorized as superficial and easily ended. If you are ever not sure if the business relationship is really strong, that is the time to discuss it. Do not wait until you are surprised by a change.

 

“Strong relationships create multiple tracks of value that would be hard to replace if the relationship ended.” -Michael Papanek

 

How often do our relationships hit that sweet spot between strong, flexible and fair?

How to Set and Simplify Business Strategy

stand out strategy

Making Big Decisions Better

All organizations are faced with decisions. What to focus on, what to invest in, how to get to there from here are all common questions when approaching strategy.

I’ve read many books on strategy. There are many that are theoretical. I enjoy them and think about the implications. But there are a few that are actionable. As a CEO, I can use aspects of them immediately. That’s what I found when I read Tim Lewko’s new book, Making Big Decisions Better: How to Set and Simplify Business Strategy. Tim Lewko is the CEO of Thinking Dimensions Group, and his book goes right to the core of setting strategy that you can implement immediately.

I followed up with him to discuss his new book and his strategic work.

 

“Strategy is decision-making.” –Tim Lewko

 

Develop a Common Definition of Strategy

Why is it problematic that most of us don’t share a common definition of “strategy”?

Not having a common definition of strategy creates all the problems CEOs, executives, managers and people who want to make their mark are trying to avoid in the critical areas of:

Purpose

Growth

Profit

 

What are some of the common misconceptions about strategy?

The list could be quite long but I will share the top three that trip up firms in setting a quality strategy—and that are easy to fix if the CEO and leadership chooses to. They are:

  • EUREKA – It’s a magical idea that just comes to you
  • SINGULAR – One person holds the key to the great idea
  • BYPASS SWEAT EQUITY – Outsiders can tell you the answer and it should work

 

“Cause is king for sustaining results.” –Tim Lewko

 

Be Wary of Outsourcing Strategy

Why is it often problematic to “outsource strategy” work?making big decisions better book jacket

There are many large successful firms that come and provide the “answer” that shows up as a long set of PowerPoint slides – and this prescriptive approach is the choice for many CEOs.  However, the approach which I practice is process based – where we bring a proven strategy system that “forces tough tradeoffs” and leaves them in a better place because they created the strategy and understand how to modify the choices as events fold.  This process approach helps to avoid the problems associated with outsourcing strategy including:

  • DEFAULT on sweat equity – missing out on working through, understanding and deciding the key things that matter from EXTERNAL and INTERNAL standpoints
  • TOLD WHAT YOU ALREADY KNOW – in my experience, clients already know 85% of what’s holding the business back (outsiders may give you 60%) so why pay for what is already known?
  • DELAY or DESTROY BUY-IN – if you outsource strategy, you have already short-changed your ability to implement the strategy – because you have side-stepped the most important people – your executive team and workforce who need to intimately understand the why behind the PRODUCT, MARKET and CAPABILITY choices that are being made. Sure, a great CEO communication or town hall helps to sell the outsourced strategy, but deep down those closest to the issues feel side-stepped – and it takes an awful lot of time to get them to buy in to something that is not theirs.

 

“Unwarranted complications are killing strategy in organizations.” –Tim Lewko

 

Have a Visible Process for Strategy