HOUSTON, WE HAVE A PROBLEM SANDRA NEŠIĆ, PHD, FMC FROM PAPER TO PIXELS: HR DIGITAL MAKEOVER SVETLANA NEŠKOVIĆ, NIS
AI'S ETHICAL SHIFT: WILL HRS BECOME TOMORROW'S WORKPLACE ETHICISTS?
WOJCIECH BEDNARUK, PWC
HOUSTON, WE HAVE A PROBLEM SANDRA NEŠIĆ, PHD, FMC FROM PAPER TO PIXELS: HR DIGITAL MAKEOVER SVETLANA NEŠKOVIĆ, NIS
AI'S ETHICAL SHIFT: WILL HRS BECOME TOMORROW'S WORKPLACE ETHICISTS?
WOJCIECH BEDNARUK, PWC
Hey there, HR professionals! It's time to shake off the slumber and realize that you're not just keeping the wheels turning; you're the vibrant pulse at the center of innovation. In this bustling world where creativity is the new currency, it's high time for HR to step into the spotlight and claim its rightful place as the driving force of innovation.
Picture this: a bustling marketplace of ideas, where innovation isn't just a buzzword but a way of life. In this electrifying arena, HR isn't just a support function; it's the dynamic catalyst that propels organizations forward into uncharted territories of creativity and growth.
But here's the wake-up call: the role of HR has undergone a radical transformation, yet it sometimes remains undervalued in the innovation landscape. It's time to break free from this outdated mindset and recognize that HR isn't just a player in the innovation game – it's the MVP.
So, how can HR reclaim its rightful place as the heartbeat of innovation? It starts with a shift in mindset. Instead of being content with simply managing talent, HR must embrace its role as the chief architect of organizational culture – a culture where innovation isn't just encouraged; it's celebrated.
But let's not stop there. HR must also become the chief storyteller, weaving narratives that inspire and empower employees to unleash their creative potential. After all, innovation isn't just about generating ideas; it's about creating a culture where those ideas can flourish and thrive.
But perhaps most importantly, HR must lead by example. It's not enough to simply talk the talk; HR must walk the walk, embodying the spirit of innovation in everything it does. From embracing new technologies to fostering cross-functional collaboration, HR must be the change it wishes to see in the organization.
So, to all the HR professionals out there, I say this: wake up and smell the innovation! You're not just the gatekeepers of talent; you're the architects of possibility, the champions of creativity, and the drivers of change. Embrace your role as the heartbeat of innovation, and watch as your organization transforms into a powerhouse of creativity and growth.
Nevena Stanisavljević Editor-in-Chief08 INNOVATION
HOUSTON, WE HAVE A PROBLEM
SANDRA NEŠIĆ, PHD, FACULTY OF MEDIA AND COMMUNICATIONS, INNOVATION MANAGEMENT CONSULTANT
18 INNOVATION CREATING AN INNOVATION CULTURE ELVIN TURNER, BESTSELLING INNOVATION CULTURE
AUTHOR AND ADVISOR
26 INTERVIEW
C-LEVEL SPOTLIGHT INTERVIEW
NATAŠA RAĐENOVIĆŽIVANOVIĆ, CHIEF INNOVATION OFFICER, OTP BANK SERBIA
30 INNOVATION THE BLANK SPACE FOR INNOVATION…OR HOW TAYLOR SWIFT CAN TEACH US A THING OR TWO ABOUT LEADING CHANGE VLADIMIR VULIĆ, PRESIDENT, DIGITALIZUJ.ME
40 BUSINESS AN ANTIFRAGILE WORKFORCE ILSE VENTER, GLOBAL/ EMEA WORKFORCE INTELLIGENCE AND TRANSFORMATION DIRECTOR, PWC
44 EXPERIENCE EMPLOYEE EXPERIENCE (EX): FROM BUZZWORD TO TANGIBLE STEVE USHER, CO-FOUNDER, WONDER
48 DIGITALIZATION FROM PAPER TO PIXELS: HR DIGITAL MAKEOVER SVETLANA NEŠKOVIĆ, HEAD OF HR SERVICES, NIS
52 INNOVATION MANAGING INNOVATION AT SCALE BRUNO PEŠEC, PROFITABLE INNOVATION EXPERT, PESEC GLOBAL
58 POWERED BY GALENIKA IN TRAINING WE TRUST GALENIKA
62
BUSINESS MTU AERO ENGINES: DRIVEN BY VISIONS OF TOMORROW SILKE MAURER, COO, MTU
64
BUSINESS
AI'S ETHICAL SHIFT: WILL HRS BECOME TOMORROW'S WORKPLACE ETHICISTS? WOJCIECH BEDNARUK, PEOPLE-CENTRIC TECHNOLOGY TEAM LEADER EMEA, PWC
68
WELL-BEING IS EEG THE NEW TECHNOLOGY FOR WORKPLACE WELLBEING?
BOGDAN MIJOVIĆ, CO-FOUNDER AND CTO, MBRAINTRAIN
71
INNOVATION
INNOVATE OR STAGNATE
SAŠA SPASIĆ, CHIEF INNOVATION OFFICER, INIT
74 RESEARCH ABOUT THE FIRST ANNUAL HR WORLD RESEARCH
ŽAKLINA TEOFILOVIĆ, HEAD OF RESEARCH
78 HR EXCELLENCE
STRIVING TOWARDS HR EXCELLENCE USING HR MATURITY FRAMEWORK
IVAN STEFANOVIĆ, MANAGEMENT CONSULTANT
83
INNOVATION THE DIFFERENCE BETWEEN INNOVATION AND DREAMS LIES WITHIN THE REALMS OF SUPPORT
MAŠA VLAHOVIĆ, HEAD OF STRATEGY AND PROGRAM INNOVATION, LIFE&MIND STUDIO
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INNOVATION IS CHATGPT THE SECRET SAUCE BEHIND THE NEXTGEN ORGANIZATIONAL DESIGN REVOLUTION? ANDREA FILIPOVIĆ, GRADUATE OF FACULTY OF ORGANIZATIONAL SCIENCES IN BELGRADE
90 CAREER CAREER AND MOTHERHOOD: FROM OIL AND WATER TO MILK AND HONEY
DANICA RISTIĆ, HR CONSULTANT
Corporate innovation is undoubtedly challenging, fraught with numerous hurdles such as cultural barriers, organizational silos, resistance to change, and a sluggish approach to exploring fresh ideas. While many companies profess to be innovative, only a minority systematically create value through novel products, services, or business models.
Despite the abundance of ‘tested’ and ‘proven’ methods for innovation, an interesting question arises: what is the missing element preventing companies from achieving true innovation? This article aims to unravel the pivotal role of strong leadership in overcoming these challenges and the importance of developing leadership capabilities to strategically manage the cyclical nature of internal innovation - a critical challenge companies must overcome to get the results from their innovation efforts.
Many aspire to be skilled runners yet avoid running. Similarly, some wish to become influencers but lack meaningful content on social media. Becoming an author is a goal for many, yet they shun the daily discipline of writing.
Recently, I came across a profound statement: ‘You have to do the verb to be the noun.’
In today's business landscape, numerous companies brand themselves as innovative, placing innovation at the core of their values and mission. However, the desire for recognition as innovative can sometimes overshadow actual and continuous innovation practices. We can become so fixated on wanting ‘to be the noun’ that it distracts us from ‘doing the verb’.
A trend has emerged where companies label themselves as innovators without engaging in substantial innovative activities in a structured manner. It begs the question: are our innovation efforts truly shaping the future we envision?
Recent reports suggest otherwise.
Today, an increasing number of executives acknowledge the importance of innovation, with 79% ranking it among their top three priorities and a growth driver for their companies (BCG, 2023).
A TREND HAS EMERGED WHERE COMPANIES LABEL THEMSELVES AS INNOVATORS WITHOUT ENGAGING IN SUBSTANTIAL INNOVATIVE ACTIVITIES IN A STRUCTURED MANNER. IT BEGS THE QUESTION: ARE OUR INNOVATION EFFORTS TRULY SHAPING THE FUTURE WE ENVISION?
Yet, despite abundant innovation activities, growth results from innovation often fall short of expectations. Ten years after McKinsey's original research (2013), their 2023 study reveals that only 6% of leaders are satisfied with innovation performance.
Last year alone, over $2.4 trillion was spent on R&D (The Innovator's Handbook 2024, 2023). One could argue that's a substantial investment for a substantially dissatisfied lot. On average, 35% to 50% of innovations fail - not in terms of rapid experimentation, but post-launch in the market. Such failures inflict significant damage.
So yes, Houston, we do have a problem.
Is it time to reinvent the innovation game? To devise a new and improved approach to innovation? Or should we persist in playing against luck?
Drawing from the transitivity concept, commonly employed in mathematics, which denotes a relationship among three elements within a set, let's delve deeper. In the realm of innovation, a widely advocated mantra is to ‘fall in love with the problem, not the solution’. This mantra underscores the importance of innovators, designers and problem-solvers focusing on deeply understanding, and empathizing with the problem they aim to solve, rather than becoming overly attached to a specific solution prematurely. Now, if we extend this concept to the core of innovation – leadership – it becomes evident that effective innovation is not solely an idea problem, but predominantly a leadership problem. Consequently, it follows that immersing ourselves in understanding and appreciating our leaders becomes equally important.
Once we've embraced the problem or the leader, our responsibility is to find solutions.
Now, the question arises - how do we do that?
and support provided by leadership. Leaders aren't mere decision-makers; they serve as cultural architects, visionaries, and agents of change. To echo the sentiments of my esteemed colleague, professor and marketing expert - Lazar Džamić: ’’Most companies are actually judged on the behaviors of their leaders, externally and internally, especially the latter... This is more than just storytelling –it is ‘storydoing’ and ‘storyliving’!’’ (Planet GV, 2024).
A deep dive into leadership challenges unveils a multifaceted role that involves nurturing talent, fostering a culture of creativity, and navigating the intricate landscape of market trends and technological advancements. According to Rita McGrath, a prominent innovation and growth thought leader and a professor at Columbia Business School, the quickest way to test a leader's commitment to innovation is to inquire: ‘How much time does the CEO dedicate to innovation each week?’ The answer should be substantial - ideally, within the range of 20-40%. Anything less is insufficient for fostering innovation (Strategyzer, 2023).
Just as effective problem-solving hinges on empathy for those impacted, here we try to identify the biggest hurdles of effective leadership in driving innovation. Extensive literature in the field of business and innovation management explores the interplay between ‘business as usual’ (BAU) operations and innovation. Scholars such as Christensen (1997), O'Reilly III and Tushman (2004), Ries (2017), and Osterwalder et al. (2020) highlight the inherent conflict between BAU operations and innovation within organizations. This discord stems from fundamental disparities in objectives, processes, and mindsets between the two domains, potentially leading to friction and inefficiency if not properly managed. The key differences are summarized in the following table. 2 3
Innovation dictates that IF we prioritize falling in love with the problem rather than the solution, AND innovation is predominantly a leadership matter rather than an idea one, THEN we must hold our leaders in high regard. This is particularly true when their actions and decisions wield the power to either nurture or stifle our innovative endeavors.
Innovation, as with any organizational endeavor, inherently reflects the quality
Table 1. Comparative analysis of the business as usual (BAU) and innovation in an organizational context
Objectives
Processes
Mindsets
Resource allocation
Execute the existing business model efficiently, deliver on short-term KPIs, ensure consistent revenue, maintain profitability, prioritize stability and predictability.
Well-defined, streamlined, optimized for efficiency, rely on established procedures and best practices, minimize variance and ensure predictable outcomes.
Risk-averse, focus on optimizing current assets and capabilities, strong emphasis on control, quality and efficiency.
Create new value, explore uncharted territories, develop new business models, embrace change and uncertainty, be future-focused, aim for long-term growth and accept shortterm losses for future gains.
Non-linear, experimental, iterative, thrives in a flexible environment, allows for trial and error, rapid prototyping, and learning from failures.
Tolerance for ambiguity, willingness to take calculated risks, values creativity, agility and adaptability, encourages thinking outside the box and challenging the status quo.
Performance measurement
Allocate resources based on predictable returns and maintaining operational effectiveness, a clear understanding of ROI and investments in proven areas.
Measured by efficiency, cost savings, sales targets and other quantifiable metrics.
Invest resources in areas with uncertain returns, challenging to justify in traditional ROI terms, may compete with BAU for funding and attention.
Measuring success is more complex and involves metrics likea the number of new ideas generated, the percentage of revenue from new products, speed of learning and adaptation.
As Ger Perdissatt, former director at Microsoft, observes: ’’Companies tend to talk a good game about innovation, but when these aspirations bump up against the realpolitik of running corporate organizations, there is typically only one winner: the status quo.’’ (Marketoonist, 2024).
Why, then, does internal innovation often seem episodic in the corporate world?
Despite the extensive discourse on innovation, all the efforts and financial
investments, and the proliferation of innovation initiatives such as intrapreneurship programs, accelerators, venture studios and innovation labs, companies struggle to maintain a consistent focus on innovation. McGrath highlights a cyclical nature in corporate innovation (Medium, 2023), a concept originally introduced by Burgelman and Välikangas through their studies on internal corporate innovation (termed Internal Corporate Venturing, ICV) across various industries since the mid-1970s (2005).
The typical trajectory follows a pattern commencing with enthusiasm, transitioning into the execution phase, encountering significant hurdles and ultimately culminating in the termination of the initiative. However, within a few years, a fresh cohort of businesses embarks on a similar journey, perpetuating this cyclicality.
A quintessential example of this phenomenon is Eastman Kodak, once a titan of the 20th century that not only failed to adapt to evolving
times but also grappled with a deeper paradox. Renowned for its rich history of internal innovation during the 1970s and 1980s, Kodak even pioneered the first digital camera in 1975.
Despite episodically investing over $3 billion in digital photography from the 1970s to the late 1990s, Kodak struggled to transition away from film, which still
accounted for about 50% of its profits in 2003 (Nešić, 2019). Two primary factors influence the cessation of innovation efforts: the health of the existing core business in terms of its growth prospects and the availability of uncommitted resources - be it cash or personnel.
Four common situations can result from that interplay (Picture 1).
- Corporate venturing orphans are ventures that commence with ample resources within a company but are subsequently neglected by the core business, which becomes preoccupied with other opportunities. These ventures often start promisingly but are eventually abandoned, leading to frustrated entrepreneurs either leaving the company or launching competing startups. Eric S. Yuan, the founder and CEO of Zoom, serves as a notable example.
- All-out venturing drives. When corporate leaders heavily invest in
venturing as a solution to a problem, it can attract significant attention and resources, but it also presents challenges. Pressured by hastily set growth targets and tight deadlines from senior leadership, these ventures often face unrealistic expectations, resulting in lost confidence and premature shutdowns as seen in the demise of Google Glass at Google.
- Venturing irrelevance. In this scenario, resources and talent are already allocated to other endeavors and the core business is thriving. Consequently, investing in uncertain
and hard-to-predict new ventures seems unnecessary when established successes continue to generate profits. Neglecting investments in new capabilities eventually enables competitors to catch up or render existing operations obsolete, mirroring Kodak's downfall.
- Desperately seeking corporate venturing. When financial constraints compel companies to deliver quickly, hasty decisions often lead to poor outcomes. The history of Nokia and Withings, a digital health products company acquired and divested within a two-year timeframe, illustrates this perfectly.
The cyclical nature of internal corporate innovation can be influenced by economic fluctuations, with corporations investing in new ventures during times of financial abundance, but discontinuing these initiatives when resources become scarce. However, macroeconomic factors likely offer only a partial explanation. Corporate strategy and internal management factors likely play a more significant role in determining the duration of these venturing cycles.
Internal innovation is vital for a company's long-term success and should not be dictated by fluctuating financial fortunes and short-term strategic pressures. To avoid repeating past mistakes during economic downturns, it's imperative to build leadership capabilities in strategically managing the cyclical nature of internal innovation - the most significant challenge companies expecting results from innovation need to overcome.
Here are the two key implications for internal corporate innovation strategic management:
- Internal corporate innovation is inevitable. Manage it strategically.
Recognize that shutting down internal innovation activities completely is challenging. Leadership support is crucial to manage these activities effectively. Establish a process that encourages internal entrepreneurs to come forward with ideas, assesses the strategic context of new opportunities and advocates for promising innovations the company can embrace and support.
- View activities as a source of strategic insights. Internal innovation offers valuable insights into potential future opportunities perceived by company's employees. Leaders should regard this as a discovery process and a source of strategic foresight, focusing on the information and ideas it generates rather than just its financial impact. Nurturing employee-driven initiatives and ideas can indicate areas where competitors or startups are focusing.
unmet customer needs and identifying blind spots in the overall strategy, so the company can resist the urge to completely abandon it, especially during challenging times.
Boston Consulting Group. (2021). Most Innovative Companies 2021. Retrieved from https://web-assets.bcg.com/ ce/fd/d7fa78e547a09d2eef5086fbbf79/bcg-most-innovativecompanies-2023-reaching-new-heights-in-uncertain-timesmay-2023.pdf
Burgelman, R.A. & Välikangas, Liisa. (2005). Managing Internal Corporate Venturing Cycles. MIT Sloan Management Review. 46. 26-34. Retrieved from https://sloanreview.mit.edu/article/ managing-internal-corporate-venturing-cycles/#side2
Christensen, Clayton M. (2000). The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail. Harvard Business Review.
Innov8rs. (2024). Innovator’s Handbook 2024. Retrieved from https://innov8rs.co/ihb24/
To effectively navigate internal corporate innovation cycles and avoid common traps, companies need to integrate innovation seamlessly into their permanent strategic process.
This requires a unique approach to strategic leadership, where top management recognizes innovation as a discipline distinct from traditional strategies, focusing on a discovery process driven by experimentation.
Adopting internal innovation as a constant practice prompts important strategic questions and fosters corporate habits that make a difference. It involves exploring new opportunities that resonate with the company's core strengths, uncovering competitive advantages, understanding
Marketoonist. (2024, January). Navigating innovation. Retrieved from https://marketoonist.com/2024/01/navigatinginnovation.html
Ultimately, it brings discipline into the innovation practice, like the discipline of daily writing for an author. If you’re a corporate leader, remember that statement and make sure to reflect on the strategic verb you’re regularly doing to drive innovation forward. 4
McKinsey & Company. (2013).
McKinsey & Company. (2023). Taking fear out of innovation. Retrieved from https://www.mckinsey.com/capabilities/ strategy-and-corporate-finance/our-insights/taking-fear-out-ofinnovation
McGrath, R. G. (2023). Episodic innovation. Medium. Retrieved from https://rgmcgrath.medium.com/episodicinnovation-95b1a9c29d15
Nešić, S. (2019). Vreme je da se predstave inovacionog pozorišta izbace sa repertoara. Netokracija. Retrieved from https://www. netokracija.rs/inovacije-u-kompanijama-155622
O'Reilly, C. A., III, & Tushman, M. L. (2004). The Ambidextrous Organization. Harvard Business Review, 82(4), 74–81.
Osterwalder, A., Pigneur, I., Smith, A., & Etiemble. F. (2020). The Invincible Company: How to Constantly Reinvent Your Organization with Inspiration From the World's Best Business Models. Wiley.
Planet GV. (2024). Employer brand is the answer to the question: Why you? Retrieved from https://www.planetgv.si/ clanki/employer-brand-is-the-answer-to-the-question-why-you/ Ries, E. (2017). The Startup Way: How Modern Companies Use Entrepreneurial Management to Transform Culture and Drive Long-Term Growth. Currency.
Strategyzer. (2023). The CEO's role in innovation. Retrieved from https://www.strategyzer.com/library/the-ceos-role-ininnovation
THE QUICKEST WAY TO TEST A LEADER'S COMMITMENT TO INNOVATION IS TO INQUIRE: ‘HOW MUCH TIME DOES THE CEO DEDICATE TO INNOVATION EACH WEEK?’ THE ANSWER SHOULD BE SUBSTANTIAL - IDEALLY, WITHIN THE RANGE OF 20-40%. ANYTHING LESS IS INSUFFICIENT FOR FOSTERING INNOVATION.
For decades, innovation has been listed as a top three priority in annual CEO surveys. Yet, research shows that 94% of executives are frustrated with their organization’s innovation performance. So, what is the other 6% doing right and what can HR executives do to amplify innovation in their organizations?
Think of a company with a strong reputation for innovation and you’ll usually find it begins with a single choice that most organizations don’t make: A choice to change their relationship status with innovation from ‘dating’ to ‘committed’.
Dating is casual, fun, and convenient. But if aspects of the relationship become more challenging - it’s easy to walk away. Likewise with innovation, running an idea competition or hackathon is a fun, short-term innovation blast.
But having to continually innovate in an environment that is optimized for businessas-usual...that’s something much less attractive.
Yet, if innovation is only backed by a ‘dating’ mindset, bolder ideas (despite their transformational potential) are regularly pushed aside in favor of something more urgent or predictable and short-term.
Great innovators, on the other hand, deal in a greater reality. They embrace the fact that products, services, business models, and ways of working all have an ‘expiry date’. And whilst innovation may not always be easy, they know it’s a non-negotiable part of remaining relevant and profitable in the future.
So, they commit, and focus on creating an environment that isn’t simply “innovationfriendly”; it’s a place in which innovation can’t help but emerge. Innovation becomes an inevitability of the environment, not a painful exception.
As well as committing to innovation, great companies make it ‘sticky’: It is embedded into the daily work of teams and an intrinsic part of their performance. That stickiness needs to be based on something that endures when challenges arise.
The most common approach is to help people see innovation as a core dependency for the strategy’s success, not as an optional extra. When a team sees a clear alignment between the organization’s goals, its team’s goals, and the role innovation plays in delivering those goals, the business case is hard to ignore.
The mindset inside highly effective organizations goes beyond strategic alignment. Typically, their focus is on continuously “outperforming today”, for the benefit of the customer. How can we help our customers to continually achieve more of their goals better, faster, or cheaper than they can today? they ask. It’s an “even better” mindset.
organizations. It is more about outperforming the best solutions in the market (which may be their own) than getting too distracted by competitors. What decisions do tomorrow’s customers want us to make today? is at the front of their minds.
It’s a mindset of trying to set a new world record in every race, instead of just aiming to win a better medal than the competition, which is the case in many boardrooms.
That leads on to a second approach for making innovation sticky, especially at a team level.
If there was an innovation league table in your industry, where would your team be positioned, and why?
The definition of “competition” has a different flavor inside these
identify its unseen mindset around innovation and performance, often for the first time.
Another way to frame the question is, In what ways is this team a source of competitive advantage to our organization? And, Is that advantage growing or shrinking? Again, most people are not thinking about their team in this way. But competitive advantage is the sum of every team’s performance – some have a positive contribution, others less so.
When I work with teams, I often ask them, If there was an innovation league table in your industry, where would your team be positioned, and why? For example, if I’m talking to a finance leader, I would ask her to think about her team’s position relative to finance teams inside competitor companies.
Most people have never thought about their team in this way. Of course, it’s an impossible question to answer accurately; but it’s a useful tool to help a team
But when every team sees itself as part of the competitive advantage equation, and innovation is seen as the key to outperforming their counterpart teams in the competition, it can help create a strong and sticky motivation for innovation to show up and keep showing up.
HR managers are well placed to help spark these motivations through simple questions: Where would your team be in the innovation league table? What is the implication of competitive advantage? What position do you want to occupy in one, three, or five years?
And crucially, what will it take?
Another helpful tool to help a team create a clear direction and motivation for enduring innovation performance is to ask them to visit the future. Pick a date three years from now and ask the team to define its performance ambition.
Then ask: If you succeeded in this ambition, what evidence would we expect to see in the following areas: What are customers saying about us? What is the media writing about us? What rumors about this team are reaching the boardroom? What will our competitors be saying about us? Which new partners will we be working
with? What kinds of people will be applying to work in this team? What awards will we be winning? This helps teams become more specific about the future they will need to create, and therefore clearer on the dependencies needed to make it happen.
The next characteristic of high-performing innovators is - Intentionally defining and creating the operational dependencies for a culture of innovation.
Great companies ensure that they focus on five key areas that have a direct impact on innovation performance:
Picture 1. Strategic Innovation Framework
Source: Burgelman, R.A. & Välikangas, Liisa. (2005). Managing Inta Source: Turner, E. (2020). Be Less Zombie: How Great Companies Create Dynamic Innovation, Fearless Leadership and Passionate People. Wiley. p.6 ernal Corporate Venturing Cycles. MIT Sloan Management Review. 46. str. 26-34.
Innovation process: Most organizations that I work with lack a simple and effective roadmap to develop ideas with the right balance of speed and rigor. The result? Many ideas never get started as employees simply don’t know where to take them. Or ideas are developed for subjective reasons rather than being supported by objective data.
On the other hand, where innovation processes do exist, they can be overly bureaucratic. This drains the motivation of idea owners and can mean that new ideas are already out of date before they reach the market.
innovators understand that for people to design, develop, and deliver original ideas, they will need some new tools and capabilities.
Striking the right balance is crucial. Start with a simple process and then build sophistication as the team or company grows in its innovation maturity. Companies like edison365 and Wazoku provide dedicated software platforms for organizations that are ready to scale and develop their innovation process.
Innovation capabilities: Leading innovators understand that for people to design, develop, and deliver original ideas, they
will need some new tools and capabilities. It was my main motivation for writing Be Less Zombie: to give everyday employees a handbook to help them at every stage of the innovation process with practical tools and techniques.
While learning how to recognize great insights, design great questions, come up with original ideas, and run great experiments are among the essential capabilities, so are some of the softer skills: Selling a new idea to a skeptical manager, building courage in a team that fears failure, learning how to manage creative conflict so that we can argue our way to better ideas and still like each other, for example.
Each company needs to pick the approach that is right for them (books, video courses, training programs, podcasts, etc.). But once again, the key is being intentional: To deliver the future, what are the key capabilities each team member will need and how will we give them the best experience to both develop the skills and then turn them into action?
What is the minimum amount of time employees should dedicate to innovating their team or organization, below which the company would be considered neglectful or irresponsible?
Sony Music won an award for its immersive talent development program called “Amplify”, equipping hundreds of managers to lead pragmatic innovation back in their teams.
Procter & Gamble (P&G) developed its Innovation Gym program to help teams develop a clear innovation plan that aligns with the company’s strategic future. By training employees in specific innovation techniques, P&G ensures that innovation is integrated into daily operations and is not left to chance.
Innovation resourcing: Allocation of resources is a major barrier to successful innovation. Many individuals that I meet complain of being at 120% capacity. It’s common to meet teams who do most of their innovation ‘when the kids are in bed’ because innovation isn’t seen as part of the day job by managers. No wonder innovation struggles inside so many organizations.
Great innovators, on the other hand, define the future and then define the likely innovation time and budget that teams and individuals will need on an ongoing basis, and assign resources accordingly. For Google employees, that famously meant 20% of their time could be dedicated to innovation. For 3M, it is 15%. For a large insurance company that I worked with, it started with 30 minutes a week and then grew as the company
learned about where best to allocate resources.
The key is to be deliberate. If we aren’t intentional about allocating time to innovation, business as usual will dominate.
So, what is the minimum amount of time employees should dedicate to innovating their team or organization, below which the company would be considered neglectful or irresponsible? It’s not a question many leaders ask themselves. But with the future strategy in mind, it can be a helpful way to encourage leaders to be allocators, protectors, and champions of innovation resources.
Most teams that I work with instinctively know how their culture would need to change to deliver more innovation. The problem is often that we don’t make time to have the conversations and then follow through on them.
Risk aversion is one of the biggest barriers to developing a culture of innovation. Research shows that 80% of people never shared the best idea they ever had. Why?
Innovation culture: Companies including Netflix, Amazon, and Pixar are extremely clear about how people need to work together to deliver the required levels of innovation. Just look at their websites and you’ll find detailed explanations about the values that drive innovation performance and their practices for turning them into action.
Because the personal risk usually feels too high to share truly original ideas.
This is where team innovation assessments can be useful. I have developed several assessments that help teams score themselves in key dimensions of innovation culture, and then frame safe conversations about what would need to change to see things improve. These conversations are rare but powerful – and often become a springboard for a continuous state of high performance. Such deliberate transparency is a core trait of the Netflix culture, one of the most studied and admired cultures in recent times. If you are curious to learn more, I recommend the book No Rules Rules by Netflix CEO Reed Hastings and Erin Meyer.
Risk aversion is one of the biggest barriers to developing a culture of innovation.
Research shows that 80% of people never shared the best idea they ever had. Why? Because the personal risk usually feels too high to share truly original ideas.
But when the personal vulnerability to propose original ideas is low, the future commercial vulnerability of the organization is high.
We’re unintentionally starving tomorrow’s innovation pipeline.
The solution? Lower the stakes. Make it much safer and easier to take the first meaningful step towards exploring a bold idea.
Great innovators do this by equipping their people to run small, fast, cheap experiments. The aim? To test the biggest assumptions behind bold ideas before spending any money developing them. Don’t spend $50,000 building a
prototype, spend $500 testing the assumption that anyone even cares about the problem you’re trying to solve. That assumption, by the way, is the single largest reason that startups fail.
Running “minimum viable product” (MVP) experiments, the stakes of failure become so low that suddenly everyone is comfortable taking the first step in exploring an idea that wouldn’t otherwise make it off the whiteboard. Innovation gets democratized.
And there’s a huge upside for leaders: Instead of being brought ‘pet’ ideas or hunches to invest in, teams come with real data that increases the chances of making good investment decisions.
“Experiments changed everything,” says Pernod Ricard UK’s former Managing Director Denis O’Flynn. “We stopped asking for ideas and instead asked for experiments that came with data to help take the guesswork out of decision-making.”
Takeaway:
Teaching people to run lowstakes experiments frees them to dream big, start small, and learn fast. It’s a game changer in risk-averse organizations.
Innovation leadership: The “ceiling” of a team’s innovation performance is usually determined by its leader. The extent to which they lead the innovation ambition and ensure that the required dependencies are in place, will have a huge impact on the ability and motivation of the team to innovate.
The truth is that very few leaders have had good innovation training, let alone successfully led a team inside a highly innovative organization. It is assumed that they should simply know how to lead innovation because of their seniority.
is a powerful tool in creating an innovation culture.
The plan has two main points of focus: Prioritized innovation projects that improve what we do (services, products, processes, etc.) and innovation projects that improve how we do it (culture, collaboration, leadership – the more human factors).
Again, helping a leadership team understand its impact on organizational innovation using assessments is an excellent approach. It helps define today’s performance and align a learning journey with the performance state that the strategy requires.
plan
Nothing happens without a plan. But how many teams do you know that have a dedicated innovation plan? It seems ridiculous, but the simple act of creating an innovation plan that is aligned with strategic goals, and for which a manager is accountable,
Teaching people to run low-stakes experiments frees them to dream big, start small, and learn fast. It’s a game changer in risk-averse organizations.
Great teams are deliberate in both dimensions and increase the chances of sustainable, highperforming innovation.
The level of innovation ambition in these two areas is up to you; but in a core business team, most of the emphasis should be on incremental gains, but with some provision for exploring more transformational ideas.
When a team leader knows that his manager is expecting a monthly update on the team innovation plan, it significantly motivates day-to-day progress on the plan.
Also, simply deciding to add “Innovation” to the regular team meeting (and never taking it off) is a powerful tool to embed innovation as a standard practice.
Metrics matter
Measurement is a critical aspect of sustaining an innovation culture. Teams must be clear about what they are measuring to ensure that innovation not only appears but also performs optimally.
While there are numerous metrics to consider, one metric that stands out is the “30% rule” popularized by 3M.
According to this rule, 30% of revenues should be generated by products that are less than four years old.
Such a high rate of renewal demands a significant level of innovation. Leaders are held accountable for delivering this metric, creating a cascading effect throughout the organization.
Everyone understands that innovation is essential for collective success, making it a priority at divisional, team, and individual levels.
High innovation performance is a choice, one that less than 10% of organizations are making. HR executives are well-placed to guide conversations toward the pursuit of more relevant, profitable, and impactful organizations. Start with your team: What’s your ‘innovation league’ position and what would it take to move up five places in the next 12 months?
Measurement is a critical aspect of sustaining an innovation culture. Teams must be clear about what they are measuring. While there are numerous metrics to consider, one metric that stands out is the "30% rule" popularized by 3M.
HOW CRITICAL IS INNOVATION FOR THE SURVIVAL AND GROWTH OF BUSINESSES IN TODAY'S FAST-EVOLVING MARKET LANDSCAPE?
I firmly believe in the paramount importance of innovation. As a catalyst for value creation, innovation extends beyond mere ideation, systematically generating value for customers, stakeholders, and organizations alike. Cultivating a culture that embraces such innovation is indispensable for longterm success. In our rapidly evolving market, the role of innovation becomes even more critical, serving as a vital element for both survival and growth.
WHAT PERSONALLY DRIVES YOU TO CHAMPION INNOVATION WITHIN OTP BANK SERBIA?
My drive to champion innovation within OTP Bank is deeply rooted in our longstanding commitment to fostering a culture of innovation. This dedication has been instrumental in establishing a strategic approach to the innovation ecosystem, significantly contributing to our recognition as a market pioneer in innovation and digitization. Our proactive stance is exemplified by the launch of OTP Connect, the bank's
innovation ecosystem. This platform represents our structured approach to engaging with the startup and fintech community, aiming to co-create new values and foster external innovation synergies.
Our journey towards cultivating an external innovation ecosystem began with an intensive focus on internal innovations. Through various programs and activations,
A CHIEF INNOVATION OFFICER (CINO) BRINGS A UNIQUE PERSPECTIVE AND SKILL SET, CHAMPIONING INNOVATION ACROSS ALL LEVELS OF THE ORGANIZATION.
BY HAVING A DEDICATED LEADER FOCUSED ON INNOVATION, ALL COMPANIES CAN ENSURE THAT IT REMAINS A CORE PILLAR OF THEIR CORPORATE STRATEGY.
we've nurtured an environment that encourages our employees to explore, innovate, and contribute to our bank's dynamic evolution. It is truly fulfilling to play an active role in this amazing journey.
On a personal level, my motivation stems from a passion for problem-solving, operational excellence, embracing the latest technologies and novelties, fostering creativity, and challenging the status quo.
I am committed to creating a meaningful impact and driving positive change within the organization, with a focus on enhancing customer experience, improving operational efficiency, and ensuring sustainable growth. This has always been my way of working and it perfectly aligns with what leading innovation requires.
HOLDING THE DISTINCTIVE TITLE OF CHIEF INNOVATION OFFICER (CINO) IS A TESTAMENT TO YOUR PIVOTAL ROLE IN STEERING INNOVATION. WHAT TYPES OF ORGANIZATIONS STAND TO BENEFIT THE MOST FROM APPOINTING A CINO?
A Chief Innovation Officer (CINO) brings a unique perspective and skill set, championing innovation across all levels of the organization. By having a dedicated leader focused on innovation, all companies can ensure that it remains a core pillar of their corporate strategy.
As the Chief Innovation Officer at OTP Bank Serbia, my role is multifaceted. It encompasses identifying, developing, and implementing innovative strategies and digital transformation initiatives aimed at driving the bank's growth and enhancing our competitive edge.
HR IS INSTRUMENTAL IN SCULPTING THE ORGANIZATIONAL CULTURE RIGHT FROM THE OUTSET—THROUGH STRATEGIC RECRUITMENT, COMPREHENSIVE ONBOARDING PROCESSES, PERFORMANCE EVALUATIONS, AND TARGETED TALENT DEVELOPMENT INITIATIVES THAT PRIORITIZE INNOVATIVE COMPETENCIES.
WHY DO YOU BELIEVE A DEEP SYNERGY BETWEEN THE INNOVATION DEPARTMENT AND HUMAN RESOURCES (HR) IS VITAL FOR NURTURING AN INNOVATIVE ORGANIZATIONAL CULTURE?
Building a culture of innovation transcends the mere generation of innovative ideas; it demands a foundational shift in the mindset of employees towards embracing collaboration, experimentation, and a proactive stance on challenges. The collaboration between the innovation department and HR is pivotal in this transformation. HR is instrumental in sculpting the organizational culture right from the outset—through strategic recruitment, comprehensive onboarding processes, performance evaluations, and targeted talent development initiatives that prioritize innovative competencies.
In this synergistic relationship, the innovation department and HR work hand in hand to integrate innovation deeply into the organizational culture, ensuring that it becomes an intrinsic part of how we think and act.
HOW DO INNOVATIVE PROJECTS AND INITIATIVES AT OTP BANK SERBIA CONTRIBUTE TO THE PROFESSIONAL GROWTH AND ENGAGEMENT OF YOUR EMPLOYEES?
Innovative projects and initiatives at our bank play a significant role in fostering the professional growth and engagement of our employees in several ways. They provide opportunities for employees to stretch their skills, think creatively, and tackle complex challenges, thereby enhancing their capabilities and expanding their professional horizons.
I believe that the recognition of colleagues, praise from top management, as well as the fact that they see their idea become a part of our bank's business, is what really makes our innovators proud and motivates them to move forward in their innovation aspirations.
LOOKING AHEAD, HOW DO YOU ENVISION INNOVATION'S ROLE IN SHAPING THE BANKING INDUSTRY'S FUTURE?
The shift towards digital banking will accelerate, with an increasing emphasis on seamless omnichannel experiences, personalized services, and frictionless transactions.
Open banking initiatives will gain momentum, fostering greater collaboration and interoperability between banks, fintechs, and third-party developers. APIs will play a central role in enabling data sharing, creating new business models, and enhancing the ecosystem of financial services.
Hotel Academia (****) is located in the very heart of Zagreb, at Tkalčićeva 88.
The hotel has 53 accommodation units (51double rooms and 2 junior suites with hot tubs), decorated in a modern manner. Apart from the accommodation units, the hotel facilities consist of 3 multifunctional halls for organization of business and formal events.
Technical equipment
Projector, canvas, loudspeaker, wireless microphones, flip chart, pulpit, high-speed WIFI. Other tehnical equipment is available upon request.
Thanks to the creative ideas, we offer, you a completely different food experience accompanied with a lavish offer of food and drinks oriented on small local food producers. Catering is an exclusive product of our kitchen and our creative chefs and confectioners. In addition to a wide selection of work lunches and dinners, and coffee breaks, we also have a broad selection of menus for receptions, festive dinners and other business informal events.
"Same old, same old" just doesn't cut it anymore when it comes to navigating change, and I think we can all agree. Yes, within the whirlwind of business, evolution isn't just inevitable, it's essential. While organizations face challenges, resistance, and uncertainty, change also unlocks doors to growth, innovation, and reinvigorated purpose. It's the fuel for scaling, the key to adaptability, and most importantly - the catalyst for employee engagement, the foundation of any thriving business today. But the stats aren't pretty.
Professor Clayton Christensen with his team (2008) warns that 75 percent of new products fall short; Deloitte reveals a disheartening decline in US public company profitability (Return on Assets), down to a quarter of what it was in 1965 (Hagel, Brown, Samoylova & Lui, 2013). Adding to that, McKinsey paints a concerning picture of 70 percent of change initiatives failing (Ewenstein, Smith & Sologar, 2015). While a report finds only 5 percent of workers in innovation programs feel highly motivated to innovate (Denning, 2015), Gallup’s (2023) data doesn’t inspire much confidence either, showing only 23 percent of employees worldwide are truly engaged.
The message is clear: organizations are making people miserable – struggling to change and innovate.
Business and innovation gurus love their acronyms to describe the current state of affairs, be it VUCA, BANI, RUPT, or TUNA. But regardless of the label, the question remains: how do we explore the dynamic interplay between change management and employee engagement in this era of rapid disruption? How can organizations effectively navigate change and enable their employees to thrive in the face of adversity?
The answer lies in leadership. Unlike passionate movement makers, organizations have leaders with the power to inspire and, at times, mandate change (Walker & Soule, 2017). As computer scientist Alan Kay famously said, “The best way to predict the future is to invent it.”
The corporate world, good, bad, and ugly, offers a wealth of leadership lessons to be learned.
In the following sections, I’ll delve into the key points I emphasize in my keynotes and workshops and have also extensively advised companies on. So, put on your favorite Taylor Swift album (why not?), and let’s dive in:
”I’m sorry, but the old Taylor can’t come to the phone right now. Why? Oh, ‘cause she’s dead!”
(“Look What You Made Me Do”, 2017) Clinging to outdated practices is a surefire way to stifle adaptability and innovation, ultimately hindering an organization’s ability to flourish in today’s dynamic business landscape. We’ve
all heard the cautionary tales: Kodak, Compaq, Blockbuster, Borders, Blackberry, Netscape – giants brought to their knees by the resistance to change. This reluctance, often fuelled by the innovator’s dilemma, organizational inertia, rigid hierarchies, and employees’ fear of the unknown, creates a recipe for disaster.
The lesson is clear: to remain competitive and agile, businesses must be willing to shed obsolete processes, systems, and, most importantly, mindsets.
Building effective leadership capabilities is crucial – it entails crafting a clear digital vision, framing that vision with a defined outcome and intent, and then engaging the organization at scale with a suitable governance model (Westerman, Bonnet & McAfee, 2014).
Numerous companies have successfully reinvented themselves by shifting their focus to stay relevant and competitive – think Apple, Starbucks, McDonald’s, The Coca-Cola Company, Tiffany & Co... These resilient organizations thrive in uncertainty and adversity, viewing change as an opportunity for growth and innovation.
NUMEROUS COMPANIES HAVE SUCCESSFULLY REINVENTED THEMSELVES BY SHIFTING THEIR FOCUS TO STAY RELEVANT AND COMPETITIVE – THINK APPLE, STARBUCKS, MCDONALD’S, THE COCA-COLA COMPANY, TIFFANY & CO... THESE RESILIENT ORGANIZATIONS THRIVE IN UNCERTAINTY AND ADVERSITY, VIEWING CHANGE AS AN OPPORTUNITY FOR GROWTH AND INNOVATION.
Engaged employees in such environments are more likely to contribute innovative ideas and solutions, facilitating the transition. LEGO is a great example of this approach – in the early 2000s, the company was facing financial difficulties due to changing market trends and increased competition. So, LEGO embarked on a strategic overhaul that focused on innovation and a renewed commitment to its core values of creativity and imagination, leaning on its employees for help in shifting toward digital innovation that would allow them to engage with new generations of techsavvy consumers (Robertson & Breen, 2014). The company also expanded its product range to include video games, movies, and theme parks, in addition to its traditional toy sets. Like-minded organizations recognize the crucial role of employee engagement in driving innovation by fostering environments where new ideas are welcomed, celebrated, and implemented, ultimately contributing to overall resilience.
“We’re happy, free, confused, and lonely at the same time.” (“22”, 2012)
Death and taxes may be certain, but change is the real constant in our business world, an ongoing and ever-present rollercoaster ride. Fear, uncertainty, and resistance often hitch a ride too, making it crucial for leaders to grab the handlebars and guide their teams through the twists and turns with confidence. The Change Curve, inspired by the emotional stages of grief outlined by Elisabeth Kübler-Ross (1969), maps out what we all experience when faced with upheaval. From denial and resistance to fear of the unknown and exploration, we eventually reach acceptance and commitment. It’s never smooth sailing, but it all boils down to
perseverance. In the words of Rosabeth Moss Kanter (2009): “Everyone loves inspiring beginnings and happy endings; it is just the middles that involve hard work.” – but that hard work is what defines a leader. Fearless leadership means mastering this curve – leading by example, showing resilience, and demonstrating the willingness to learn from setbacks.
Fearless leaders know that building confidence and trust is their superpower during change. They ditch the smoke and mirrors, opting for open and honest communication, explaining why things are changing, and painting a picture of the awesome new ride ahead. Even more importantly, they create a safe space for everyone to scream, laugh, and share their wildest ideas (and worries!), fostering a growth mindset where experimentation is encouraged, and learning resources are readily available. Remember, successful transformations aren’t solo missions – it’s all about aligning your team with the organization’s big goals and working together, remembering that the emotional dips and dives deserve the most support and guidance.
Take Mary Barra, who in 2014 became the first female CEO of a major international automaker when she took the wheel of General Motors when things were looking pretty grim and “mere survival was the goal”. Under her leadership, she navigated some serious twists and turns by prioritizing innovation and sustainability,
GUIDING YOUR TEAM THROUGH CHANGE ISN'T JUST ABOUT POINTING THE WAY – IT'S ABOUT PROVIDING THE SUPPORT, RESOURCES, AND ACCOUNTABILITY TO ENSURE EVERYONE GETS OFF OF THAT ROLLER COASTER, EXCITED FOR THE NEXT ADVENTURE.
basically reimagining the whole carpool lane (Reingold, 2016). Or think of Satya Nadella, the CEO who transformed Microsoft by embracing a startup mentality and steering them towards the cloud and AI, like the tech-savvy maven he is (Tabrizi, 2023). Both leaders prove that guiding your team through change isn’t just about pointing the way – it’s about providing the support, resources, and accountability to ensure everyone gets off of that roller coaster, excited for the next adventure.
“But the monsters turned out to be just trees.” (“Out of the Woods”, 2014)
Let’s face it, some red flags, like low morale, productivity nosediving, absenteeism soaring like a rogue hot air balloon, and enough negativity to power a blackout, are pretty clear signs employees are about as engaged as a sloth watching paint dry. Studies show engaged employees are like productivity superheroes, loyal to the core, and create a positive work culture that boosts the whole organization’s performance. But fostering that engagement? Well, it’s not exactly a walk in the park. That’s why high-performing teams often remain a pipe dream for many companies that miss out on the magic of purpose-driven leadership. Peter Senge (1990) asserts: “People don’t resist change. They resist being changed.” So, how do we avoid the pitfalls and get everyone on board the change train?
If we take a short trip back in time, things are pretty straightforward. The Nobel laureate Milton Friedman’s (1970) doctrine held that the social responsibility of business is to increase its profits, which is often summed up as “The business of business is business.” Fast forward fifty years and spoiler alert: it’s not about profits first anymore. It’s about finding a clear, compelling purpose
that gets everyone fired up. Think of it as aligning everyone’s work with a shared vision and values, like a compass guiding the ship. When employees feel connected to something bigger than themselves and understand how their daily grind contributes to the greater good, they’re more motivated, passionate, and basically rocking their sense of belonging. It translates into job satisfaction soaring (goodbye, dreaded Employee Net Promoter Score!) and people going the extra mile because they actually care.
Take Patagonia, the outdoor apparel crew known for their commitment to saving the planet (literally, their mission statement is now “We’re in business to save our home planet”). By aligning their business practices with this purpose, they’ve cultivated a workforce so passionate they only have a 4 percent employee turnover rate (Rock, 2020). Then there’s Salesforce, the cloud software wizards who believe in “doing well by doing good.” Their CEO, Marc Benioff, even said, “The business of business is improving the state of the world.” (Pontefract, 2017).
Organizations like these walk the talk with initiatives like donating 1 percent of their product, equity, and employee time to charity. Not only are they changing the world, but they’ve also built a culture of purpose-driven innovation and engagement that continuously lands them on the list of best places to work. Let’s just say engaged employees make your company more productive, creative, and resilient, leading to happier customers, more profits, less churn, and sustainable growth – wouldn’t that be a business plan anyone could get behind?
“I hear the preacher say - speak now or forever hold your peace.” (“Speak Now”, 2010)
WHERE EXPERIMENTATION IS ENCOURAGED, AND FAILURE IS VIEWED AS A STEPPING STONE TO SUCCESS AND NOT AN IMMEDIATE SIGN-OFF.
Effective communication is the magic glue that holds great relationships together, both personal and professional. Open communication fosters trust, strengthens relationships, and enhances collaboration –it gives off a vibe of transparency, honesty, and active listening, with none of the corporate jargon. The good news is it also creates a safe space for people to share their ideas, concerns - and maybe even some hilarious memes they found (as long as it’s work-appropriate, of course).
In recent years, Brené Brown (2018) with Dare to Lead and Kim Scott (2017) with Radical Candor elaborated heavily on this topic - when leaders communicate openly with their teams, sharing information about organizational goals, challenges, and decisions, employees feel valued and respected. Much like leading with purpose, open communication and creating a sense of involvement and autonomy leads to higher levels of engagement, job satisfaction, and retention.
Many global leaders have embraced open communication as a core value and witnessed significant improvements in employee engagement and organizational performance. For example, Spotify, the audio streaming and media service provider, refers to its team as a “band” and they believe in building and maintaining a people-centric organization, stating that their values are informed and influenced by every member of the team, as they are welcomed to “controlled chaos” by the Chief HR Officer, Katarina Berg (2020).
Similarly, Buffer, the social media management company, operates under the principle of radical transparency. Buffer’s leadership team shares detailed financial information, including salaries and revenue, with all employees (Alpaio, 2023). This open communication approach of celebrating successes and recognizing individual and team contributions builds trust and fosters a sense of ownership and accountability among employees, leading to higher levels of engagement and productivity.
“But on a Wednesday, in a cafe, I watched it begin again.” (“Begin Again”, 2012)
Nowadays, continuous learning isn’t just a gold star on a report card – it’s the key to unlocking success for both individuals and organizations. So, what makes a learning culture tick? Think agility, engagement, top talent, innovation – basically, the full package.
A culture of continuous learning is characterized by several key elements, including a commitment to professional development at all levels of the organization, access to learning resources and opportunities, support for experimentation and risk-taking, and recognition and rewards for learning and growth. Leaders can adopt several strategies to implement a culture of continuous learning effectively - these include providing access to a variety of
learning resources and platforms, such as online courses, workshops, and mentorship programs, offering opportunities for crossfunctional collaboration and knowledge sharing, encouraging employees to set and pursue learning goals and integrating learning and development initiatives into performance management processes.
Several organizations have successfully embraced continuous learning as a core value and witnessed significant improvements in employee engagement and organizational performance. Innovation thrives in environments where experimentation is encouraged, and failure is viewed as a stepping stone to success and not an immediate sign-off. Companies like Google and 3M prioritize innovation by providing employees with dedicated time and resources to explore new ideas. Adobe implemented the “Kickbox” program, providing employees with a toolkit and resources to develop and pitch innovative ideas – and that inspired Cisco to follow suit and create their own Adventure Kits (Goryachev, 2017; McGrath, 2022).
In the words of Amy Edmondson (2018), for knowledge work to flourish, the workplace must be one where people feel able to share their knowledge and that means sharing concerns, questions, mistakes, and half-formed ideas.
THE BLANK SPACE FOR INNOVATION WILL ALWAYS REMAIN A GOOD STARTING POINT FOR INSTILLING NEW LIFE IN THE OLD WAYS WE’RE USED TO DOING THINGS.
She writes that in most workplaces today, people are holding back far too often –reluctant to say or ask something that might somehow make them look bad, which is supported by a Gallup (2017) poll that found only three in ten employees strongly agree with the statement that their opinions count at work. That’s why if leaders want to unleash individual and collective talent, they must empower continuous learning and foster a psychologically safe climate where employees feel free to contribute ideas, share their failures, and advance together.
When it comes to the ever-shifting sands of the business landscape, think less about the beach in Mamma Mia and more about the desert wasteland in Dune. However, the (re)shaping of that landscape is down to organizations and the ways they (re)design their culture.
By transforming the leadership, aligning around a common purpose, and fostering a collaborative and supportive environment resulting in high employee engagement, organizations can maintain a high level of creativity and innovation at work, leading to more effective and inclusive change initiatives, championed from the bottomup and top-down.
This translates to embracing change, eliminating inefficient practices, and continuously (un)learning. As they say, change without engagement is merely movement, so despite Taylor Swift reminding us that sometimes “People throw rocks at things that shine”, the BLANK SPACE for innovation will always remain a good starting point for instilling new life in the old ways we’re used to doing things.
REFERENCES
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Berg, K. (2020) The Spotify Band. Retrieved from: https://hrblog.spotify.com/2020/02/11/thespotify-band/
Brown, B. (2018) Dare to Lead: Brave Work. Tough Conversations. Whole Hearts. Random House.
Christensen, C., Kaufman, M. S. P. & Shih, W. C. (2008) Innovation Killers: How Financial Tools Destroy Your Capacity to Do New Things. Harvard Business Review. Retrieved from: https://hbr. org/2008/01/innovation-killers-how-financial-tools-destroy-your-capacity-to-do-new-things
Denning, S. (2015) Why U.S. Firms Are Dying: Failure To Innovate. Forbes. Retrieved from: https://www.forbes.com/sites/stevedenning/2015/02/27/is-there-an-innovation-crisis-at-usfirms/?sh=557e84a864cb&utm_source=pocket_saves
Edmondson, A. C. (2018) The Fearless Organization: Creating Psychological Safety in the Workplace for Learning, Innovation, and Growth. Wiley.
Ewenstein, B., Smith, W. & Sologar, A. (2015) Changing Change Management. McKinsey. Retrieved from: https://www.mckinsey.com/featured-insights/leadership/changing-change-management
Friedman, M. (1970) A Friedman Doctrine: The Social Responsibility of Business is to Increase Its Profits. The New York Times. Retrieved from: https://www.nytimes.com/1970/09/13/archives/afriedman-doctrine-the-social-responsibility-of-business-is-to.html
GALLUP. (2017) State of the American Workplace. Retrieved from: https://www.gallup.com/ workplace/238085/state-american-workplace-report-2017.aspx
GALLUP. (2023) State of the Global Workplace: 2023 Report. Retrieved from: https://www.gallup. com/workplace/349484/state-of-the-global-workplace.aspx
Goryachev, A. (2017) A Tale of Two Companies: One Kit, Multiple Innovations. Retrieved from: https://blogs.cisco.com/innovation/a-tale-of-two-companies-one-kit-multiple-innovations
Hagel, J., Brown, J. S., Samoylova, T. & Lui, M. (2013) Success or struggle: ROA as a true measure of business performance. Deloitte Report 3 of the 2013 Shift Index series. Retrieved from: https:// www2.deloitte.com/content/dam/insights/us/articles/success-or-struggle-roa-as-a-true-measure-ofbusiness-performance/DUP505_ROA_vFINAL2.pdf.
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Kanter, R. M. (2009) Change Is Hardest in the Middle. Harvard Business Review. Retrieved from: https://hbr.org/2006/02/the-why-what-and-how-of-management-innovation
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Powerful, transformative forces bring about threats, opportunities, and an urgency to reinvent. As organizations, we need to accelerate our response, if we are to survive and thrive in our fast-evolving environment.
As businesses accelerate efforts to evolve their business models, capture new revenue streams, optimize efficiency, reduce costs, and to battle increasing regulatory requirements, new urgency is brought to the timeless and complex challenge of optimizing our delivery model and realizing the potential of our people.
According to McKinsey, 70% of transformations fail when we underestimate how key our people are to reaching our goals. If we want to introduce new ways of working to supercharge business value, a holistic approach to performance is key to achieving sustainable results1. It is not only about having the best and brightest people but also knowing what to do with them, that boosts performance and differentiation.
For people-based businesses, our people are the biggest (and most costly) asset. Even if we manage to successfully navigate all the modern complexities, if we fail to bring our people on the journey with us – we will still fail.
Translating business strategy into workforce strategy
There are various SWP (Strategic Workforce Planning) methodologies that typically follow the same approach in translating business strategy into workforce strategy:
STEP 1: Understand how transformative forces change your environment.
Here we analyse the impact of external forces and mega trends (social, technological, demographic, climate, and regulatory changes) and questionWhat will our business look like in the future? What are our competitors doing?
What products/services will we offer? Who will my customers be? How will we differentiate?
CEOs expect more pressure over the next three years than they had in the previous five, and they’re realizing that they need to understand and embrace continuous reinvention as the “new normal2“. The good news is – you don't have to “outrun the bear” as the famous story goes. If you haven’t heard it - two friends encounter a vicious bear in the woods. Friend one gears up and starts running. Friend two shouts: “You cannot outrun a bear!” to which friend one replies: “I don't have to outrun the bear; I only have to outrun you.”
We will not outrun the pace of innovation and change – but organizations that invest in realizing the full potential of their employees will outperform those who don't.
STEP 2: Adapt business strategy and understand the impact on the workforce.
We must ask ourselves what our purpose is, which skills, capabilities, and behaviors are required to deliver on our future business priorities, and how we plan to drive competitive advantage.
Developments in generative AI (GenAI) introduce uncertainty as typical human traits are expected to be more automatable in the future. However, the age of the augmented workforce also presents great opportunities to elevate human capabilities, deliver exponential business performance, and unlock new sources of value. All work stands to be affected but “lowerlevel employees” will see the biggest shift. In fact, research suggests that up to 50% of mainly junior-level tasks might be automated, which presents an existential impasse. We urgently need to reimagine how we think about the human/machine labor division, and figure out how the shift impacts our skills strategy.
the average age of S&P 500 companies has dropped from 37 years in 1980 to just 17 years today, and 52% of Fortune 500 firms since 2000 have faced bankruptcy, acquisition, or closure, partly because of the failure to anticipate trends, adapt to change and reimagine the future.
STEP 3: Agree on the skills and capabilities needed to future-proof the workforce.
To close the gap between the skills you have and the skills you need, sustainably, you must understand the difference between potential, performance, and the role the employer and the employee play in turning potential into performance.
We recruit, develop and retain our people based on their potential, but that is futile if the individual is unwell, unmotivated, unengaged or unable to realize his value at work. When the right employees, with the right skills, and the right mindset, are engaged, inspired, and empowered by the right leadership, environment, and opportunities, then we see performance.
Organizations may require different skills from our future talent, but they require a different employee experience in return. An optimized, sustainable workforce means evolution for the organization, just as much as for the people.
1 https://www.mckinsey.com/~/media/mckinsey/industries/retail/our%20insights/the%20how%20of%20transformation/the-how-of-transformation.pdf?shouldIndex=false
2 https://www.pwc.com/gx/en/issues/c-suite-insights/ceo-survey.html?gclid=CjwKCAiAk9itBhASEiwA1my_61t1XiYzUFWQG19bzuKFtoIIy1IkiqTy9m4AtY0bLwLw6GvgxSeRCRoC53AQAvD_BwE&gclsrc=aw.ds
Step 4: Understand which skills and capabilities we have today.
The impact of GenAI on skills will be radical, and we tend to overestimate the short-term while underestimating the longterm implications. The World Economic Forum predicts3 85 million jobs will fall away, while 97 million new jobs will be created based on a completely new human/ machine
labour division. Some jobs will therefore become more important in the future, while others will simply fall away. This directly influences the skills which are increasing (and increasing in relevance).
We think that for most professions, GenAI will not take over whole jobs, but parts of jobs, which makes it even more crucial to shift to skill-based talent management. If we can break down our jobs into tasks, and know
Source: https://www.weforum.org/publications/the-future-of-jobs-report-2023/infographics-2128e451e0/
Source: https://www.weforum.org/publications/the-future-of-jobs-report-2023/infographics-2128e451e0/
3 https://www.weforum.org/press/2020/10/recession-and-automation-changes-our-future-of-work-but-there-are-jobs-/
who we have, with which skills, at which level of proficiency within our organisations, then we are able to identify which tasks can be automated and upskill our people to use the freed capacity on higher value tasks.
Without the needed transparency into who we have working in our organisation, at which level of competency, this leaves us vulnerable and unable to adapt our current workforce for future priorities.
STEP 5: Closing the gap between the skills and capabilities we have, and the ones we need.
Various interventions can help to close the skills gap, they are typically referred to as the 6 B’s:
• Bind (reward critical talent to stay and share knowledge),
• Bounce (transfer and reskill staff from declining to more useful areas of business),
• Borrow (secure contingent resources),
• Boost: (accelerate career progression to shape a sustainable people model).
• Build (develop capability from within the organization) and
• Buy (recruit the right talent).
Organizations may require different skills from our future talent, but they require a different employee experience in return.
An optimized, sustainable workforce means evolution for the organization, just as much as for the people.
If we consider the evolution of the customer service industry, during the late 1990s, a new buzzword appeared: Customer experience. This was met with skepticism due to the 'fluffiness' and intangibility of the value it could bring. Only now, with the benefit of hindsight, can we more than justify the impacts customer experience functions and professionals have enjoyed. Shifting customer service strategies from purely reactive to more intentional experiences brought significant value to customer acquisition and retention.
In 2023, the Employee Experience Manager was the fifth-highest growth role on LinkedIn’s hot list. This is a positive sign that we’re finally gaining traction as a career choice and function. Dedicated communities are popping up, books are being written, and more courses are being delivered than ever. However, consistent questions remain: What is employee experience and where do I get started in my context?
FROM REACTIVE TO PROACTIVELY ADDING VALUE TO EMPLOYEES.
If we consider the evolution of the customer service industry, during the late 1990s, a new buzzword appeared: Customer experience
This was met with skepticism due to the ‘fluffiness’ and intangibility of the value it could bring. Only now, with the benefit of hindsight, can we more than justify the impacts customer experience functions and professionals have enjoyed. Shifting customer service strategies from purely reactive to more intentional experiences brought significant value to customer acquisition and retention.
We can also draw similar parallels to how Human Resources are currently perceived to where the customer service industry was. Reacting to the needs of their customers. Being constantly impacted by strategic business, product, and marketing decisions.
HR functions are traditionally reactive functions, supporting the needs of employees’ issues, complaints, and challenges. Taking advantage of an employee experience mindset and approach requires a new working paradigm that brings intentionality, business value, and enhanced employee experiences.
This is about more than changing your title from HR Business Partner to Employee Experience Manager.
"IF YOU ALWAYS DO WHAT YOU'VE ALWAYS DONE, YOU'LL ALWAYS GET WHAT YOU'VE ALWAYS GOT." SIMPLY CHANGING YOUR TITLE WON'T CHANGE YOUR MINDSET OR WORK STYLE. THIS WILL ONLY FUEL THE SKEPTICISM AND INTANGIBILITY OF EX WORK INSIDE OF YOUR ORGANIZATION.
Here’s a friendly reminder of the quote, “If you always do what you’ve always done, you’ll always get what you’ve always got.” Simply changing your title won’t change your mindset or work style. This will only fuel the skepticism and intangibility of EX work inside of your organization.
One of my EX mantras is “Less talk, more doing. One bite at a time.”
As you read this article, you will know that your business has hundreds, if not thousands, of employee journeys and experiences. All in a continuous movement. Some serve you well, others not so much, perhaps even damaging your business and reputation. Choosing the right place to start is vital. If it’s too big, you may struggle to showcase the value quickly enough. Too small - you may not generate the desired impact to create a compelling business case.
HR projects notoriously get stuck in the weeds when focusing solely on process and technology improvements. So, starting this work through an experience- and the human-centered lens is essential;
ADOPTING A SYSTEMIC LENS IS ESSENTIAL. UNDERSTANDING HOW CHALLENGES, SOLUTIONS, AND SERVICES ARE INTERCONNECTED AIDS IN CREATING A MORE COHERENT AND USER-FRIENDLY EMPLOYEE EXPERIENCE.
1. User-centric: Moving away from organization-centric solutions and adopting a human-centric approach places employees' needs, experiences, and perspectives at the forefront of decision-making.
2. Unpacking complex problems: An initial phase can involve understanding employee experiences across various roles and departments. This can be coupled with a more comprehensive, end-to-end view of the employee journey to find a landing point.
3. Strategic prioritization: Zero in on unique challenges that offer an opportunity to create value whilst experimenting with a new way of working. Examples can include career progression within a specific job family, onboarding graduates, or performance reviews in your sales function.
4. Lighting small fires: This symbolic approach involves small, incremental organizational changes. This strategy can gradually shift mindsets toward a more user-centered approach without overwhelming the system.
• Start small: Begin with manageable, focused projects. This allows for more controlled experimentation, learning, and reflection.
• Empower through engagement: Conduct regular interactions, workshops, and feedback sessions with employees to cultivate a sense of ownership and value.
• Build relationships and trust: Engaging with various stakeholders and building trust throughout a project is crucial to winning hearts and minds.
• Embrace uncertainty: This work involves navigating through uncertainty. You can't get away from it. Accepting this is a necessary part of the process.
EXPERIENCE WILL CONTINUE TO EVOLVE AND MATURE IN MANY ORGANIZATIONS AROUND THE WORLD. THIS COMES AS WE CHALLENGE OLD WORK PARADIGMS AND COINCIDES WITH THE ERA OF ARTIFICIAL INTELLIGENCE.
The nature of this work means you are readdressing the often skewed balance between business and employee needs. A delicate approach must be navigated; ensuring user needs stay within organizational goals is crucial. This equilibrium is achieved by consistently evaluating the voices of employees and businesses throughout the design process.
Overcoming silos is another one of those old systemic barriers that require careful consideration. The benefits far outweigh the negatives when connecting different teams and projects. Unlocks new perspectives and solutions, leading to a more cohesive and unified approach towards EX.
Finally, adopting a systemic lens is essential. Understanding how challenges, solutions, and services are interconnected aids in creating a more coherent and user-friendly employee experience. This holistic perspective ensures that improvements in one area positively impact the broader organizational ecosystem.
• Work in the open: Sharing progress, learnings, and challenges using digital tools helps socialize this way of working and encourages organization-wide participation.
Employee experience will continue to evolve and mature in many organizations around the world. This comes as we challenge old work paradigms and coincides with the era of artificial intelligence.
This requires us to slow down, ground ourselves even more in people’s needs, and create our human experience from this place rather than being exclusively led by technology. The risk is that we lose ourselves completely and miss what is looking like a moment in time to create profound shifts in our experience of work and in life.
Imagine people at work dealing with routine tasks following set procedures. Now, if we introduce digital help in these tasks, it makes their work easier. The result? Jobs get done better and employees feel happier resulting in more precise task completion and heightened job satisfaction.
By leveraging digital tools, we empower our people to skip repetitive and time-consuming tasks, ultimately reducing stress and contributing to a more positive work environment.
In the current global landscape, organizations worldwide are strategically embracing digital transformation, channeling considerable resources into digitizing business processes. This isn’t just a buzzword; it’s a tangible shift witnessed within our companies. Job listings on platforms like LinkedIn show the demand for transformative experts proficient in process reengineering, change management, and digital solutions. Simultaneously, there’s a noticeable surge in the integration of mobile apps and chatbots across various business domains, including banking services, HR software, and internal company communications.
Innovation stands crucial for business growth and improved outcomes, from
streamlining operations and saving capital, ensuring execution excellence, to enhancing employee satisfaction.
Let’s take a simple example: imagine people at work dealing with routine tasks following set procedures. Now, if we introduce digital help in these tasks, it makes their work easier. The result? Jobs get done better and employees feel happier resulting in more precise task completion and heightened job satisfaction.
By leveraging digital tools, we empower our people to skip repetitive and timeconsuming tasks, ultimately reducing stress and contributing to a more positive work environment.
Before diving into the digital and automated world, there’s a critical first step: ensuring the optimal configuration of your business processes.
Most of the processes can be executed following certain process maps, ultimately leading to the same business outcome. Some process setups have more participants, more control points, and more process steps to be accomplished, however, some processes are set optimally so they require less time, participants/ executors, and resources. Control points exist in some parts of the processes, but some are neutralized with process change and improvement.
BEFORE ANY DIGITALIZATION OR AUTOMATION, THE RECOMMENDATION IS TO OBSERVE AND ANALYZE THE BUSINESS PROCESS.
Before any digitalization or automation, the recommendation is to observe and analyze the business process. The process of reengineering can be explained with the following metaphor: take the process as an old, lovely necklace. It used to be modern and unique back in the times. However, instead of throwing it away, its material can be repurposed for something more modern, and extraordinary. A surplus of material allows one to even make some additional outcomes. Furthermore, new materials can reinforce the final results, bringing fashionable outcomes, with high-quality products tailored to your needs.
Process reengineering, or makeover for business processes, requires serious expertise. The more complex your process, the higher the expertise needed, often combining knowledge from multiple business areas. The goal isn’t just change for show; it’s about making sure we get the most improvement possible.
Teams with diverse expertise, working together, are key contributors. Employees who see themselves sticking around for the long term are motivated to find better solutions – they want to simplify their tasks to save energy every day. Life at work can indeed get easier when innovation meets dedication, passion, and a wellcoordinated team.
In our organization, digital innovation is structured around several key pillars. We define implementation areas through a thorough analysis of transactional and time-consuming processes, strategically applying automated support to enhance operational efficiency. This approach aims to minimize the time spent on manual, repetitive tasks, consequently boosting employee happiness and satisfaction in the workplace.
In payroll transactional processes, Robotic Process Automation is delivering exceptional process execution characterized by high-quality and reliability. RPA not only elevates operational efficiency and work productivity but also liberates employees from monotonous, repetitive tasks, allowing them to redirect their efforts toward more specialized areas. RPA is capable of extracting the reports directly from ERP (Enterprise resource planning), but also combining several reports to provide requested analysis. Looking ahead,
the implementation of RPA opens doors to job reinvention – some jobs will be assigned to RPA execution, and some will be completely new – such as Team Lead of RPA technology, RPA Change Process Administrator, etc.
Chatbot, as the virtual HR assistant to our employees, is taking a significant part in communication: it ensures the provision of unique, complete, and optimal information, fostering mutual trust within the organization. There are traditional channels of communication, such as personal: HR front offices in several geographical locations, a team of HR business partners in charge of different organizational streams, and digital: HR service desk – service inquiry directly to HR back-office and now - HR chatbot. Employees may choose the channel that suits them the most, according to their preferences. The Chatbot, available 24/7, excels in areas requiring detailed and complex communication, facilitating employee satisfaction and engagement and enabling the Human Resources team to focus on strategic HR topics.
We are also implementing various mobile
Bruno
Pešec, Profitable Innovation Expert, Pesec GlobalInnovation, a word with at least twice as many definitions as there are humans. How many have you counted in this issue so far? Allow me to contribute one more: innovation is the act of creating something new that generates value. If something is new for the innovator and for the customer, then we can consider it new even if something similar already exists in other markets or industries. Value must be created for both the customer or beneficiary and the innovator. After all, what good are innovations that bankrupt the company?
The reason I’m sharing the above definition is not to disprove or challenge any other definition you might have encountered so far. No, it is rather to establish a shared definition so you can better assess the advice I will share about innovation management. If you know what I mean by innovation, then you are more likely to be able to judge what is more or less relevant to you.
are very few frameworks for managing innovation. (Ettlie, 2020; Pešec, 2022a)
In my work with organizations, large and small, with solutions simple and complex, I’ve found it immensely useful to distinguish between managing and doing innovation. The former is about taking an idea and developing it into a product, service, or venture. The latter is about doing the former throughout the organization and at an impressive scale. (Pešec, 2020a)
There is an impressive amount of frameworks and approaches for doing innovation: Design Thinking , Outcome Driven Innovation , Lean Startup , Theory of Inventive Problem Solving (TRIZ) , Lean Product and Process Development , Customer Development , Design Sprint just to mention a few. However, there
In the remainder of this article, I will share best practices for innovation management based on my professional experience as well as research. I invite you to carefully consider each point.
“Become more innovative” is not a target, it is an aspiration. In the corporate context, innovation is “just” one of many internal activities. It competes for attention and resources with daily operations and a vast number of other, mundane, activities. If leadership wants innovation to be prioritized, then they ought to make it a strategic priority by instituting very clear innovation targets.
These should directly tie into existing business strategy. For example, if one of the business targets is to “grow market share 30% with a profit margin of 20%”, then the related innovation target could be “double new product profit margin”. That would send a clear message that innovation activities should be focused on creating highmargin products and services, which will have implications on all decisions taken during idea development.
If leadership absolves the responsibility of setting high-level innovation targets, then they run the risk of having people waste their time on ideas that ultimately won’t move the needle for the organization, nor advance its strategic interests. Further, there is a common misconception that innovation tactics-sometimes also called innovation vehicles -like accelerators, incubators, startup partnerships, corporate venturing,
and similar, are substitutes for clear innovation objectives and strategy. That couldn’t be further from the truth. The aforementioned are means , not ends . An organization benefits from deploying a number of different tactics in order to diversify its risk.
When it comes to innovation performance, research has shown us that: (1) incremental innovation outperforms radical innovation, (2) the speed of the innovation process matters more than the quality of the innovation process, and (3) innovators’ environment matters more than individuals’ innovation skills. (Cortés-Robles et al., 2019; Dahlén, 2008; Pešec, 2020b; Rangone, 2020; Robert & Weiss, 1990; Tiwari & Buse, 2020)
It is paramount to understand that these findings do not claim that radical innovation should be avoided at all costs, or that the quality of the process does not matter at all. Rather, it shows the cold reality of how difficult it is to succeed with truly radical, disruptive, and transformational ideas, especially for companies that don’t have well-developed innovation capabilities.
Most importantly, it can act as leaders’ guidance regarding what to focus on. Should you really be setting up that fancy external innovation lab for pie-in-thesky totally disruptive ideas if you haven’t even had an innovation team before? Should you spend time writing perfect standard operating procedures for your to-be innovation processes without even having implemented them? And should you spend all your recruiting budget on getting innovation superstars when even your current most loyal employees don’t have clear pathways to develop their ideas? All three questions are rhetorical. Using a multitude of innovation tactics in service of achieving specific innovation targets aligned with business is a sound approach.
Succeeding with innovation is a numbers game. In other words, if you want to see attractive returns on investment then you ought to be investing in multiple ideas and innovation projects. A great way to manage these is by adopting a portfolio approach. (Luehrman, 1998; Toma & Gons, 2021) Alas, portfolio theory is too expansive to cover it all in a single article, so I will focus on specifics for innovation portfolios.
Portfolios consisting of innovative ideas spanning everything from immature ideas that require exploration to ideas with validated demand requiring scaling must be actively managed. They are not “invest and forget” and do not take care of themselves. Common information to track in a portfolio is idea maturity, idea typology, and revenue potential. (Pešec, 2022b) Match that with historical data on how long it usually takes you to develop an idea, and how many resources are needed to do so, and you have sufficient information to decide if something is still worth investing in. As a strategic tool, a portfolio helps leaders detect ideas and projects that could be defunded in order to unlock people and resources to work on more promising ideas. The bigger the company, the more important this is. Opportunity costs can rack up quite fast.
2. Lightweight governance
Big portfolios mean big responsibility. But that shouldn’t translate into big committees!
SHOULD YOU SPEND ALL YOUR RECRUITING BUDGET ON GETTING INNOVATION
YOUR CURRENT MOST LOYAL EMPLOYEES DON’T HAVE CLEAR PATHWAYS TO
A humble innovation board (sometimes also called a venture or growth board) can often achieve much more with very little time. In simplest terms, they are specialpurpose governing bodies with a mandate to invest in innovative projects and ventures that are expected to contribute to the organization’s strategic objectives. (Pešec, 2022c) They are comprised of three to five members. Depending on
how the organization is structured, there might be more of those. For example, there might be one overseeing the total portfolio, run by top executives. More radical types of innovation could have a dedicated innovation board, with one or two top executives and selected leaders from relevant business units.
These boards act as gatekeepers between innovation funds and innovation teams. The latter presents their case and needs (e.g. funding required), and the former decides on the basis of presented evidence, confidence, and strategic alignment if they will grant or reject the request. Power and autonomy are with the teams because they are the ones coming up with suggestions. By portioning the funds in such a manner, instead of single large, big-bang investments, the board is safeguarding the organization as well. (Larson & Pešec, 2022) By keeping the investments small and frequent, the board retains the option to stop early, thus minimizing the likelihood of spending too much on an idea that wouldn’t be able to make a significant contribution to the business.
IS A NUMBERS GAME. IN OTHER WORDS, IF YOU WANT TO SEE ATTRACTIVE RETURNS ON INVESTMENT THEN YOU OUGHT TO BE INVESTING IN MULTIPLE IDEAS AND INNOVATION PROJECTS.
There are cases when there are good reasons to reduce funding to an innovation team but not stop it completely. For example, an international telecommunications company set up a new section to scale an idea that has been in development for three years, growing the team of two dozen to nearly fifty. Early on in the scaling process venture lead realised that several of their scaling assumptions were very wrong. They made the right, but difficult, move of proposing to de-fund the scaling process, take a step back, and revisit all market assumptions. The innovation board gave their support, the section was downsized (without anyone losing their job), and the team did eventually find a scalable niche.
Traditional stage-gate development models have been designed as linear, forward-only frameworks. You meet the requirements to progress, you move on, you lock the gates behind you, and throw away the key. Unfortunately, such a model doesn’t work so well for innovative ideas. Whatever model you have, or decide to implement, be it funnels, pipelines, or stage-gates (Pešec, 2021b), it is paramount that it supports regression. In other words, it should be possible to lower the maturity level of innovation projects and teams and scale back the investment (including team size) in order to revisit the requirements of the preceding maturity level. Doing so allows you to keep exploring without burning money due to the sunk cost fallacy.
I’d like to take a pause and draw your attention to one very important thing. Everything I’ve mentioned so far is connected. None of the above will deliver spectacular results if implemented by itself, completely disassociated from your everyday business. Think of it as a system—a network—of activities, practices, and people. Together they make a cohesive whole that produces great results with relatively modest inputs. Although exact parts of such systems are unique to each organization, we can abstract several elements that are almost always expected. (Pešec, 2021a; Viki et al., 2017)
Ideas have no value without motivated and skilled individuals who can develop them from the initial investigation to the implementation of something new that creates value. Innovators are at the heart of any corporate innovation system. They are people who bring forward their ideas in the hope of making something better. Motivation, bias for action, and willingness to learn are key traits of great corporate innovators. With these three in place, developing innovation skills is a matter of tenacity and effort.
A glue that keeps the corporate innovation system running. They translate the innovation strategy into reality by setting up appropriate innovation projects and monitoring them. Innovation managers help the teams by serving them as coaches, helping them ask the right questions
at the right time. They also help them find (and obtain) the right resources inside the organization. Orchestration would be the most fitting word if I had to describe the role with one.
3. Strategic layer — innovation boards
Special purpose function with a mandate to execute the innovation strategy on behalf of the business. They are the ones who usually own portfolios and budgets, even if innovation managers run them on a day-to-day basis.
Systems big and small are all around us. Core innovation processes like vetting, funding, and developing ideas already exist in your organization. Some of them might even be explicitly documented and
IF LEADERSHIP WANTS INNOVATION TO BE PRIORITIZED, THEN THEY OUGHT TO MAKE IT A STRATEGIC PRIORITY BY INSTITUTING VERY CLEAR INNOVATION TARGETS.
presented as such. But the great majority of them are informal, hidden in plain sight, representing a shadow of all the ways your employees found ways to make innovation work despite all the conditions.
As a leader you have the authority and responsibility to surface such hidden processes, tie them into a coherent whole, and then iterate and improve them. I hope that what I’ve shared has sufficiently resourced you for such an endeavor. Good luck!
References
Cortés-Robles, G., García-Alcaraz, J. L., & Alor-Hernández, G. (Eds.). (2019). Managing Innovation in Highly Restrictive Environments. Springer International Publishing.
Dahlén, M. (2008). Creativity unlimited: Thinking inside the box for business innovation. John Wiley & Sons.
Ettlie, J. E. (2020). Innovation renaissance: Defining, debunking and demystifying creativity. Routledge.
Larson, A., & Pešec, B. (2022). Ep. 189: Bruno Pešec— Management Accountants as Partners (Not Roadblocks) to Innovation. Count Me In Podcast. https://podcast.imanet.org/189
Luehrman, T. A. (1998). Strategy as a portfolio of real options. Harvard Business Review, 76, 89–101.
Pešec, B. (2020a). Doing and managing innovation. Bruno Pešec https://www.pesec.no/doing-and-managing-innovation/
Pešec, B. (2020b). Is investing in innovation worth it? Bruno Pešec https://www.pesec.no/is-investing-in-innovation-worth-it/
Pešec, B. (2021a). Corporate innovation roles. Bruno Pešec https://www.pesec.no/corporate-innovation-roles/
Pešec, B. (2021b). Making sense of innovation pipelines, funnels, and portfolios. Innovation Accounting Book Blog. https:// innovationaccountingbook.com/blog/innovation-pipelinesfunnels-and-portfolios/
Pešec, B. (2022a). How to select the right innovation framework for you? Bruno Pešec. https://www.pesec.no/how-to-select-theright-innovation-framework-for-you/
Pešec, B. (2022b). Create your own innovation portfolio in three simple steps. Bruno Pešec. https://www.pesec.no/create-your-owninnovation-portfolio-in-three-simple-steps/
Pešec, B. (2022c). Getting started with a Venture Board. Innovation Accounting Book Blog. https:// innovationaccountingbook.com/blog/getting-started-with-aventure-board/
Rangone, A. (2020). Managing corporate innovation: Determinants, critical issues and success factors
Robert, M., & Weiss, A. (1990). Innovation formula: How organizations turn change into opportunity. Harper Row.
Tiwari, R., & Buse, S. (2020). Managing innovation in a global and digital world: Meeting societal challenges and enhancing competitiveness
Toma, D., & Gons, E. (2021). Innovation accounting: A practical guide for measuring your innovation ecosystem’s performance. BIS Publishers.
Viki, T., Toma, D., & Gons, E. (2017). The corporate startup: How established companies can develop successful innovation ecosystems Vakmedianet.
Equipping employees with the skills required for the contemporary jobs and those for the future is a strategic focus for companies striving for innovation, growth, and development
Development of employee capacity through education and training is becoming more important due to a range of changes that are affecting organizations in the present day. It is important for multiple reasons - ensuring staff are prepared for their role in meeting the challenges of the business today; making them be and feel supported, valued, and capable; and that they have upward movement. In return, training and development can have a direct impact on employee engagement and retention. Engaged employees want to grow, and they want to be challenged. They are not looking to simply work at a job; they are looking to further their performance and careers. In that regard - training is a powerful tool. It is immediate and is possible to be measured in short-
term results. Training should be job-specific, and should also ensure that employees have adequate learns to upgrade skills to meet the needs of their jobs. In that regard, here is a case study – the ‘’Selling Village’’ training model that Serbian pharmaceutical leader Galenika implemented with their sales force, recently.
As for sales training, employees can be taught to serve their customers better, create a more positive client experience, and become more persuasive as salespersons. The key question is what would be the best model for implementing it. As a company oriented to innovative approaches and trust in the practice, Galenika came up with the idea to implement it through ‘’Selling Village’’, a role-play simulation model involving Galenika’s demand and commercial teams.
Let’s walk through this intriguing story, step by step, to dive into how this successful training plan was built and implemented.
Naturally, like any company that has a sales department, one of the key focuses of Galenika is to support demand and commercial teams, to be prepared, efficient, and effective in performance on the field. The demand team’s role is to educate the professional public and promote products, thereby creating a demand in the market. Another part of the carefully set and planned sales process is the commercial team, whose role is to make sure that products are available in pharmacies. In that regard - demand and commercial teams need to be perfectly aligned with each other. This was a key finding that defined steps toward the introduction of ‘’Selling Village’’ training.
The company implemented an onboarding process for new employees, as well as full education on products within the portfolio. Introduced is a comprehensive sales training program outlining step-by-step procedures for Galenika’s commercial/sales team when engaging with pharmacists/doctors to provide information about the company’s new products. The guide also included steps on how to close, negotiate, and provide key information to pharmacists/doctors. In addition, to follow up on new implementations, the company has conducted double visits with its sales teams, so they could have immediate feedback with the goal of empowering them or making corrections and improvements.
With aforementioned changes, the company recognized that it needed to do one more thing to step up its game. It needed a tool to assess the specific areas for improvement for each member of the Galenika sales team, enabling them to utilize their full potential. All these conclusions led to the development of the “Selling Village“ project.
“Selling Village”
The main purpose of the “Selling Village” project is to evaluate the selling team - engagement, and capabilities, and to identify development areas, in parallel recognizing strengths and empowering the
THE MAIN PURPOSE OF THE “SELLING VILLAGE” PROJECT IS TO EVALUATE THE SELLING TEAM - ENGAGEMENT, AND CAPABILITIES, AND TO IDENTIFY DEVELOPMENT AREAS, IN PARALLEL RECOGNIZING STRENGTHS AND EMPOWERING THE TEAM.
team. The goals were to enable the demand team and commercial team to demonstrate their communication skills in “real life” situations whilst providing them with quantitative and qualitative feedback from both internal and external observers and health workers. This aimed to highlight examples of excellence, areas that require further development at the individual level, and finally - the development of competencies that individuals need to improve so that they could, in turn, reach their full potential. With this, Galenika wanted to empower employees, resulting in a more mutually connected demand and commercial teams, and, as an ultimate goal –increased sales.
The idea was to, as realistically as possible, simulate the visits to doctors and pharmacists. The company has built doctors’ ambulances and has arranged the patient rooms to look like average rooms where doctors work with patients, which sales teams visit every day. Real doctors from the field joined to help in the simulation by participating as medical assessors. Internally relevant colleagues were also engaged as assessors – product managers, HR colleagues, and sales managers. Also, a briefing was held with all participants of the simulation to discuss which products will be promoted. Doctors were given absolute freedom to interact with members of the sales team as they would during the regular visits they had.
The employee would enter a room that was a simulation of a waiting room. After entering the doctor’s room, the official visit would begin. There were two evaluators in the room as well, and one externally or internally trained person. Employees from the sales team would start with the presentation of the products, with the task to follow all the guide steps from the training. Doctors had the freedom to react to the promotion as they wished, as well as to influence the length of the visit. Upon the visit, the external evaluator, the doctor, and the internal evaluator would immediately provide feedback and that would end the visit.
TRAINING SHOULD BE JOB-SPECIFIC, AND SHOULD ALSO ENSURE THAT EMPLOYEES HAVE ADEQUATE LEARNING OPPORTUNITIES TO UPGRADE SKILLS TO MEET THE NEEDS OF THEIR JOBS.
During the visits, the company evaluated 3 important variables:
1. Opening the visit
2. Quality of two-way communication, and the resolution of obstacles/objections
3. Closing communication, and building the next steps.
Lessons learned – preparation is King!
First and most important lesson obtained is that good preparation is King ! Education and training of internally involved colleagues can make crucial differences in the aforementioned processes. The selection of adequate external evaluators can additionally improve the quality of the projects such as the one we shared. Make sure that the simulation resembles real-life situations as much as possible. Evaluated colleagues need clear feedback based on facts. Communication of further plans and their implementation is crucial for the success of the project. Finally, having detailed budgeting timely - will make the whole process easier.
After getting the results and the initial feedback given during the visits, the company made a plan to create an individual development action plan for every member of the sales team, as well as to intensify the coaching of senior “middle performers”. High performers were given additional responsibilities to plan subsequent training based on the specific needs of the groups and have regular follow-ups. It was very important for the company to continue empowering its sales team and continue strengthening the culture of feedback.
Turning visions into reality has always been the slogan of MTU Aero Engines. Our heart beats for aircraft engines - and has done for 90 years. We have always set trends with our technologies and continue to do so today: Together with our strong partners, our employees develop the innovative engines of tomorrow and beyond.
Zero emissions in civil aviation is our major goal. To achieve this, our engine experts are working on pioneering concepts never seen before - evolutionary developments of the gas turbine engine based on the geared turbofan and revolutionary drive concepts such as the WaterEnhanced Turbofan (WET) and the Flying Fuel Cell™ (FFC).
IT IS IMPORTANT TO CREATE A COMMON TARGET PICTURE, WITH THE ACTIVE PARTICIPATION OF ALL EMPLOYEES. WHEN EMPLOYEES UNDERSTAND HOW THEIR WORK CONTRIBUTES TO THE SUCCESS OF THE COMPANY, THEY FEEL MOTIVATED, ENGAGED, AND CONNECTED.
Our innovative products are manufactured in modern facilities, where we work with the latest machines and processes – highly automated. Digitalization is becoming increasingly important - in all areas: Technology and product development, as well as manufacturing and maintenance. MTU is a leader in the production of titanium and nickel blisks, for example. This year, we will open the world’s most modern automated production facility for turbine disks in Munich.
None of this is possible without people. At 18 locations worldwide, our employees play a key role in MTU’s success and form the intelligence behind an inctreasingly complex network of processes and working environments. A key success factor in these surroundings is the involvement of employees in the development processes from the outset, rather than confronting them with change and innovations. We solve challenges with the use of IT tools, in which ambassadors support their colleagues by sharing their knowledge and expertise.
In addition, we offer our employees a wide range of further education and training programs to ensure state-of-the-art qualifications and the ability to learn new skills. With our offerings, we are well above average in a regional comparison. In everyday working life, we build on personal initiative and exchange. Cross-departmental and interdisciplinary job changes are encouraged in order to gain a deeper understanding of the company from different perspectives and to actively drive personal development. Our motto is - lifelong learning
In two internal think tanks, the DigiLab and the InnoLab, employees can pursue their own ideas - quickly and easily. Transfer and exchange programs in these labs have been implemented and are actively used. We also support contact with the outside world: connections to other companies - not just in the aviation industry - are important for experiencing new things and adopting fail-fast-learn and try-and-adapt methods.
Leadership values: We create trust | We empower | We transform
All of this can only thrive in a climate that is characterized by trust, openness, and clarity. Trust in oneself and the company, openness in dealing with one another, and clarity about the path to the future. It is important to create a common target picture, with the active participation of all employees. When employees understand how their work contributes to the success of the company, they feel motivated, engaged, and connected to MTU - a win-win situation.
We have also anchored the feedback culture in our leadership values to drive continuous improvement and innovation, among other things. There are classic feedback formats that are regularly surveyed and evaluated by our HR department. These overarching measures are supplemented by practical tools in the departments, for example, in the form of process improvers in the teams. After all, who knows the processes and their obstacles better than the employees who deal with them on a daily basis? They are the quickest to recognize innovation potential and can initiate improvements - that’s what we want.
Cross-team exchange is important in all areas, and we invite people to do so. We live by the principle of subsidiarity, and you can rely on it: decisions are made where the experts work, and it leads to faster decision-making.
With all the changes and improvements, it is important to keep an eye on the common target picture and stay on course. In the aviation industry, with its exceptionally long product and market cycles, a clear focus is important. At the same time, however, it must also be possible to react flexibly to short-term changes in the general conditions. A good target picture must create clarity in situations of permanent uncertainty. That is why it is so important to invest time in this shared understanding. We achieve this through day-to-day collaboration and communication, as well as through an annual bottom-up and top-down target process.
An individual alone may achieve some things, but the community achieves everything. Our goal is and remains: To shape the future of aviation. Around 12,000 MTU employees do this every day.
The use of artificial intelligence (AI) is becoming increasingly common in today's business world, especially within Human Resources departments 1 . AI helps HR teams work faster and changes the way we think about work. But, as AI becomes more important in HR, the HR teams need to start thinking about how to use AI in the right way.
HR professionals focus, by definition, on people, and this is of vital importance when they use AI in their work. In their organizations, they must consider the ethical issues that arise from the use of AI2 In this regard, HR specialists should acquire a thorough understanding of AI not only as a tool for improving operational efficiency but also as a tool for using it in an ethical manner. When using AI, companies must consider their company's values and their employees' needs.
When AI starts making decisions, HR professionals should be the ones to lead the effort to make those decisions peoplecentered. As it is seldom about absolute
right and wrong, ethics is often about defining thresholds of ethical choices; in most cases it is contextual. HR professionals are not only responsible for supervising AI use but also guiding how AI is used in a way that is consistent with the values of the organization.
As shown in the case study below, deciding on a threshold is a fundamental decision regarding fairness, which is understood as a lack of bias. It will be necessary for HR specialists to understand that it is not possible to eliminate bias completely. It will be up to them to decide where to draw the line and to assume responsibility for their decisions. There is no data scientist, AI architect, or machine learning engineer capable of answering such fundamental questions.
1 Gartner. (n.d.) AI in HR: The Ultimate Guide to Implementing AI in Your HR Organization. https://www.gartner.com/en/humanresources/topics/artificial-intelligence-in-hr
2 Syafitri, F.A. (2023, May 19). The Ethical Considerations of Using AI in HR. Kalibrr blog. https://neo-blog.kalibrr.com/blog/ethicalconsiderations-of-using-ai-in-hr
In this case study, you are an HR specialist in a company. Your job is to figure out how to make hiring more fair for gender inclusivity using a new AI-driven recruitment tool. There are several important statistics to consider. In IT education in the universities you hire from, only 15% of the students are females and 85% are males. A similar difference shows in the people who apply for IT jobs in your organization: 80% are male and 20% are female. However, currently only 10% of your IT employees are female. To add the context of the total headcount in your organization, there are 51% female and 49% male. Your organization wants to make sure both males and females have equal chances in the IT department. It's also important for the company to be open about its goals and how it plans to reach them. This includes using the AI tool for hiring in a way that supports fairness and includes everyone.
Instances of ethical choice
Question 1: What should be the minimum threshold (the percentage of females and males considered to be bias-free) for the recruitment algorithm to ensure a fair and inclusive process that is aligned with the organization's diversity goals?
a) 10% female / 90% male to reflect the current proportions of IT employees
b) 15% female / 85% male to reflect the proportions of IT students graduates
c) 20% female / 80% male to reflect the proportions of job applicants
d) 51% female / 49% male to reflect the organization’s total headcount
Question 2: Identify the most important value tensions that one may experience in this case that need to be analyzed for the best possible outcome.
a) Short-term Business Goals vs. Long-Term Gender Equity
b) Employee Competence vs. Organisational Social Responsibility
c) Individual Fairness vs. Group Representation
d) Equal Opportunity vs. Equality of Outcome
A good place to start is to examine how HR specialists communicate and how the language they use can affect their thinking processes. The vocabulary they use must extend beyond the usual HR topics such as hiring and performance management. In all HR operations, it is important to emphasize the use of phrases such as dignity of people, ethical choices, ethical designs, and fairness and transparency. What is the importance of changing the way they speak?
In the first place, language is more than just a means of communication. It is a reflection of what we value and believe. Words have the ability to shape how we perceive things, influence our behavior3, and contribute to the culture of an organization.
As a second point, AI is not solely a technological issue. It is a significant social and ethical issue. AI has a significant impact on how we treat people at work, their freedom, and their rights. It also influences the fairness, openness, and responsibility of HR practices. HR's role in the workplace and in society may be altered by AI.
Using language that focuses on people and ethics can help HR specialists communicate more effectively with everyone in an AI-saturated workplace. As a result of this change in language, a culture of responsible and ethical use of AI is created. By using this language, HR specialists demonstrate that they are concerned about the values and interests of their employees when they make or use AI.
It is the responsibility of HR specialists to make difficult ethical decisions. In order to ensure that AI is used in the right manner,
they must find a balance between different crucial principles and formulate the tensions and trade-offs involved4.
There are many choices facing HR professionals, such as explainability versus accuracy, degree of human oversight versus speed of achieving outcomes, and adverse societal impacts versus meeting business objectives. Every decision must be thoughtfully considered in terms of what is ethical, taking into account the impact on employees, the company's goals, and society as a whole.
HR professionals should be aware of these ethical choices. Ultimately, they must consider how their decisions will impact employee freedom, organizational and personal autonomy, fairness, and society as a whole. AI technical specialists cannot assist with these questions, even though there are statistical methods for detecting bias in the system. HR specialists will be responsible for making the final decision. Consequently, they must be extremely aware of the evolving ethical issues and understand that sometimes these principles may clash, requiring careful decision-making.
3 Frothingham, M.B. (2023, September 23). Sapir–Whorf Hypothesis (Linguistic Relativity Hypothesis) Simply Psychology. https://www.simplypsychology.org/sapir-whorf-hypothesis.html
4 Kelly, R. & Pellegrino, M. (2019, Juna 11). Ethical AI: Tensions and trade-offs. Digital Pulse, PwC Australia. https://www.pwc.com. au/digitalpulse/ethical-artificial-intelligence-tensions-trade-offs.html
5 Orlando, N. (2023, February 23). ChatGPT and ethical decision making: It’s not what can be done, but what should. VentureBeat. https://venturebeat.com/ai/chatgpt-and-ethical-decision-making-its-not-what-can-be-done-but-what-should/
It will be necessary for HR specialists to understand that it is not possible to eliminate bias completely. It will be up to them to decide where to draw the line and to assume responsibility for their decisions.
Making these choices requires the company to have its own shared moral framework. In order to create a culture that values ethical behavior, HR experts must make decisions that reflect the organization's values. This set of values guides them through difficult ethical situations, ensuring that AI is used in HR in a manner that respects both individual rights and the company's objectives. As a result of the ethical decisions made by HR experts, trust, integrity, and a responsible culture are built within an organization that uses AI.
The HR specialist must be able to distinguish between what is legal and what is ethical. The concept of ethical standards is about what is morally right, and increasingly, in the context of AI, these standards involve more than just obeying the law. An organization might, for example, decide not to use certain AI technologies due to their unfairness, even if they are legal.
In the ever-evolving landscape of Human Resources, organizations are continually seeking innovative ways to understand and enhance the well-being and productivity of their team. There is one groundbreaking technology that has gained traction in recent years - the Electroencephalography (EEG).
Originally used primarily in medical settings, EEG is now making its way to HR as a tool to gain valuable insights into human brain activity, and its implications for the workplace.
Electroencephalography (EEG) is a non-invasive method of measuring the electrical activity of the brain. For many years, doctors have used EEG to diagnose various medical conditions and monitor brain health. However, innovative companies are now utilizing EEG in numerous real-world settings. One of the newly proposed application spaces is to enable employment screening and enhance teambuilding processes.
With EEG, HR professionals can capture and analyze the brain’s electrical patterns in real-time. These patterns can reveal valuable information about an individual’s cognitive state, emotional responses, and overall mental well-being.
However, it should be clear that the technology is in its early stage and the wider application in HR is
therefore still limited. At the forefront of EEG technology development, ongoing efforts are directed towards facilitating widespread real-world applications in the future.
Until that happens, we should discuss the key applications of the technology to empower Human Resources departments.
INSIGHTS INTO EMPLOYEES WELL-BEING
One of the key applications of EEG in HR is to provide insights into employee wellbeing. Monitoring brain activity can help identify stress levels, fatigue, and overall mental health. By understanding these factors, HR professionals can implement targeted interventions and wellness programs to support employees in managing stress and maintaining a healthy work-life balance.
The underlying purpose for this technology is to advance to the level where it can be miniaturized into an everyday workplace gadget, such as wearable EEG headphones. These headphones are
envisioned to be a smart music recommender that simultaneously plays music and monitors EEG activity. Such a gadget would be the ultimate workplace wellness tool - workers would be able to get personalized music to focus or relax easily, depending on the time of day and current activities; they could get recommendations for better work-day planning (e.g. peak focus for getting the work done vs. low focus that may be used for meetings/breaks); and most importantly, they could get notifications/alerts to prevent burn-outs. Such a device would help us work smarter and live better lives.
EEG technology can help HR teams evaluate how the physical work environment (for instance: long meetings) affects employees’ cognitive functions (attention, focus, stress).
One of the more recent studies by Microsoft1 shows that breaks between meetings allow the brain to reset and that back-to-back meetings
can decrease our ability to focus. Another study by the mBrainTrain team2 showed that introducing short and frequent microbreaks improves worker attention and could be utilized in facilities where repetitive work is required. Yet another study showed that green environments evoke more positive effects than urban spaces.3
By studying brain activity in various workplace settings, companies can determine the ideal conditions for concentration, creativity, and teamwork. This data-driven
ASSESSING BRAIN ACTIVITY DURING INTERVIEWS OR SKILL ASSESSMENTS CAN COMPLEMENT TRADITIONAL HIRING METHODS, OFFERING A MORE HOLISTIC UNDERSTANDING OF A CANDIDATE’S POTENTIAL FOR SUCCESS WITHIN THE ORGANIZATION, OR A SPECIFIC TEAM.
1 https://www.microsoft.com/en-us/worklab/work-trend-index/brain-research
2 https://mbraintrain.com/p300-reveals-attention-oscilations-at-work/
3 https://mbraintrain.com/mobile-walking-eeg-in-urban-environments/
EEG TECHNOLOGY WILL REVOLUTIONIZE THE RECRUITMENT PROCESS BY PROVIDING DEEPER INSIGHTS INTO CANDIDATES’ COGNITIVE ABILITIES AND EMOTIONAL INTELLIGENCE. ASSESSING BRAIN ACTIVITY DURING INTERVIEWS OR SKILL ASSESSMENTS CAN COMPLEMENT TRADITIONAL HIRING METHODS, OFFERING A MORE HOLISTIC UNDERSTANDING OF A CANDIDATE’S POTENTIAL FOR SUCCESS WITHIN THE ORGANIZATION, OR A SPECIFIC TEAM.
approach enables the creation of improved workspaces that boost productivity and enhance employee satisfaction.
PERSONALIZED TRAINING AND DEVELOPMENT
With EEG, HR can move beyond traditional training methods and personalize learning experiences based on individual cognitive strengths and weaknesses.
By tailoring training programs to employees’ unique brain profiles, organizations can optimize the effectiveness of professional development initiatives and ensure that employees acquire and retain new skills more efficiently.
EEG technology will revolutionize the recruitment process by providing deeper insights into candidates’ cognitive abilities and emotional intelligence. Assessing brain activity during interviews or skill assessments can complement traditional hiring methods, offering a more holistic understanding of a candidate’s potential for success within the organization, or a specific team. Sometimes, the candidate may not be a perfect match for the position they applied to, but can still significantly contribute to a different team within the same organization.
While there are considerable benefits to using EEG technology in HR, organizations must consider ethical and privacy concerns. To responsibly integrate EEG technology into HR practices, it is essential for organizations to establish clear policies, obtain informed consent,
and ensure data security, addressing ethical and privacy concerns. These measures align with the necessary ethical considerations for the responsible implementation of EEG technology in HR. EEG technology opens new avenues for promoting cognitive diversity and inclusion in the workplace. By recognizing and valuing the diverse cognitive strengths that individuals bring to the table, organizations can create more inclusive and innovative teams. EEG insights can inform HR strategies for building diverse teams that leverage a range of cognitive abilities, ultimately driving creativity and problemsolving.
As organizations embrace EEG technology in HR practices, challenges and opportunities emerge. Balancing the potential benefits with ethical considerations, addressing employee concerns about privacy, and ensuring the responsible use of EEG data are essential. HR professionals should educate employees about the purpose and potential of EEG, fostering a culture of transparency and trust within the organization.
FUTURE PERSPECTIVES
As the technology continues to advance, the potential applications of EEG in
HR are around the corner. Continuous research and development will pave the way for more sophisticated and nuanced insights into the human brain, further refining how organizations approach talent management, employee well-being, and the overall employee experience.
EEG HAS THE POTENTIAL TO BE A GAME-CHANGER IN THE FIELD OF HUMAN RESOURCES.
Mobile EEG is perceived not just as a tool but as a catalyst for positive change. These systems will empower organizations to shape a future where technology and human resources intersect to provide unprecedented insights and improvements in the workplace.
WITH EEG, HR PROFESSIONALS CAN CAPTURE AND ANALYZE THE BRAIN’S ELECTRICAL PATTERNS IN REAL-TIME. THESE PATTERNS CAN REVEAL VALUABLE INFORMATION
ABOUT AN INDIVIDUAL’S COGNITIVE STATE, EMOTIONAL RESPONSES, AND OVERALL MENTAL WELL-BEING.
In today’s fast-paced business world, the mantra “Innovate or Stagnate” has never been more relevant. In the realm of Human Resources and business innovation, this phrase encapsulates a fundamental truth: businesses must evolve continuously to stay competitive.
In the modern business lexicon, ‘innovation’ has transcended buzzword status to become a core element of survival and success. The titans of industry—Apple, Tesla, Amazon, and Netflix—are more than just companies; they are paradigms of how continuous innovation can redefine the playing field.
Apple, for instance, didn’t stop at functionality - they turned technology into a statement, into desire. They understood their users not just through data but through the human element, what they felt and aspired to.
Tesla, on the other hand, didn’t just develop electric cars—they propelled us into a new era of energy. They looked at the battery not as a component but as a gateway to a sustainable future. This kind of innovation isn’t just about having the best scientists or engineers; it’s about asking the right questions, the kind that others don’t even think to ask.
Let’s not overlook Amazon, a company that turned shopping from a chore into an experience, relentlessly optimizing every step of the journey. They made their logistics so seamless that you almost feel they know what you want before you do.
And Netflix—remember when they were mailing DVDs? Now they’re curating your next favorite series before you’ve even heard of it. They
ACROSS
THIS, ADVOCATING FOR A CULTURE WHERE UPSKILLING IS AS ROUTINE AS THE WORK ITSELF.
leveraged algorithms not as mere technology but as a bridge to human preferences.
The research backs this up— reports from BCG and PwC show that those who invest in innovation, who dare to
explore the uncharted, are the ones capturing new markets and expanding their streams of revenue. This isn’t just about being adaptable; it’s about being proactive and staying two steps ahead of the market.
Innovation is a negotiation on a grand scale. It’s about reading the situation, understanding the needs, and crafting a solution that no one else has thought of yet. It’s a comprehensive strategy that spans products, processes, and business models. And if you’re not leading the charge in innovation, you’re not just stagnating—you’re losing ground.
The innovation that propels industries forward is now redefining our roles in the workplace, blurring the lines between technology and humanity.
As we ride the wave of the Fourth Industrial Revolution, the transformation of workplaces and the workforce has become a central narrative in the evolving job market. Traditional roles that were once the pillars of industry are giving way to a new era of dynamic, techcentric positions. Consider the rise of the ‘Prompt Master,’ a vanguard position at the intersection of AI and human communication. It’s a role that wasn’t even on the radar a decade ago but is now crucial
in the dialogue between humans and machines.
Data analysts have become the sought-after navigators of the digital age, transforming numbers into narratives that drive corporate strategies. McKinsey & Company’s insights suggest that these roles are more than just jobs—they’re critical in carving out competitive edges in an increasingly data-driven world.
The digital content creator has morphed into a pivotal architect of engagement, masterfully blending creativity with technology to reinvent the landscape of traditional media. They’re not just creating content; they’re orchestrating experiences that resonate on a global scale.
The skills needed today— critical thinking, complex problem-solving, and adaptability—highlight a dramatic departure from the past. The World Economic Forum’s Future of Jobs Report underlines these competencies as indispensable. LinkedIn’s job trends echo this, pointing to a surge in demand for digital fluency.
But the most profound commonality across these modern roles is the necessity
for lifelong learning. Deloitte’s research on Human Capital Trends reinforces this, advocating for a culture where upskilling is as routine as the work itself. It’s this dedication to perpetual growth that forges a workforce fit for the future—a future where adaptability, technological savvy, and innovative problemsolving are the defining traits of a successful professional.
In the labyrinth of today’s economy, the skillset of the modern workforce has to be as adaptable as water—fitting into the container of current demands but powerful enough to carve canyons over time. The World Economic Forum, in its “Future of Jobs Report,” underscores the need for skills that are as much about resilience as they are about intelligence—analytical thinking, innovation, and active learning.
Creativity isn’t just an art form, it’s a survival skill. It’s the ability to look at problems not as barriers but as puzzles awaiting solutions that no one has seen yet. LinkedIn’s labor market insights reveal that those who can apply creativity to their roles are the ones pushing boundaries and driving business into new territories.
And then there’s the forwardthinking mindset—the chess players of the corporate world, always thinking three moves ahead. These individuals
don’t just use technology; they bend it to their will, to the needs of the marketplace, becoming indispensable assets in the growth narrative of their companies.
It’s evident that innovation resonates deeply within the professional community on Linkedin. Content featuring innovative ideas and creative solutions to business challenges captures the most attention and interaction among readers. This pattern aligns with findings from LinkedIn’s own “2020 B2B Thought Leadership Impact Study,” which underscores the platform’s users’ appreciation for thought leadership—content that not only informs but inspires new ways of thinking.
These observations are bolstered by further research, such as the “Edelman-LinkedIn B2B Thought Leadership Impact Study,” which reveals that decision-makers and C-suite executives on LinkedIn consider thought leadership as a critical factor in assessing the caliber of an organization Content that delivers fresh perspectives and paves the way for new approaches to problemsolving tends to generate more robust conversations, foster connections, and build the kind of professional credibility that is highly valued on LinkedIn.
It’s not about telling people what they already know; it’s about challenging them to
think differently, to learn, and to grow. That’s how we build a culture of continuous improvement on LinkedIn, one post at a time.
In the grand bazaar of global commerce, where choice is king and attention is currency, differentiation is not just strategy—it’s survival. It’s the craft of carving out a unique space in the consumer’s mind. Think again of Apple. They didn’t just sell tech; they sold an experience, a lifestyle that resonated on a level beyond features and functions.
Or consider Tesla, they’ve negotiated their way into the driver’s seat of the automotive industry not by just selling cars, but by selling a vision of the future—one update at a time. Their vehicles are not mere products; they’re evolving assets, reflecting the owner’s desire for progress.
And then there’s Patagonia, whose commitment to sustainability is not just a badge—it’s a statement. They’ve understood that in today’s world, the value proposition extends beyond the product. It encompasses the values, the impact, and the very ethos of the brand.
In this landscape, differentiation means your product or service isn’t just chosen, it’s sought after. It’s what transforms first-time
IF YOU’RE NOT LEADING THE CHARGE IN INNOVATION, YOU’RE NOT JUST STAGNATING— YOU’RE LOSING GROUND.
buyers into lifetime advocates. It’s the subtle art of making your offering not only visible but desirable in a sea of alternatives.
In conclusion, the message is clear - to thrive in the modern business landscape, innovation is key. Businesses must continuously evolve, not just in their products and services, but also in their workforce and operational strategies.
Those who fail to innovate risk stagnation and, ultimately, irrelevance.
If we aim for HR to evolve into an evidence-based function that robustly supports key stakeholders and contributes to better decision-making affecting both people and the business, then we must grasp and value the significance of methodological research. This encompasses the importance of data collection, processing, and analysis. We must also recognize the importance and influence inherent in generating insights and meaningful conclusions that facilitate quality decision-making. It requires a willingness to invest time and effort. And we’ve succeeded. We’ve reached a significant milestone. Research results from the HR world’s first annual research on HR processes and practices in the region are finally available.
The research has demonstrated that companies with well-developed HR processes tend to have stronger relationships with the business and greater credibility.
72% of companies stated that their HR administration process is digitized, followed by recruitment and selection at 54%. Every second company employs HRIS for performance management, while 24% use it for talent management and 49% for basic HR analytics.
Data was collected in 2023. With participation from over 100 companies, we are confident that the conclusions drawn are wellfounded. Seventy percent of the data contributors are HR leaders. Nearly half of the sample comprises companies with 500 or more employees, while over one-third have between 101 and 500 employees. Twelve percent have more than 5,000 employees. A third of the sample represents companies from the IT and telecommunications sector, another third from the production sector, and 22% from the retail sector. Many thanks to all who provided the data. Without your contribution and dedication, this research would not have been possible.
Key topics and key questions we explored in the first annual research on HR processes:
1. Characteristics of HR Functions: Which HR processes are encompassed within the HR functions, and how welldeveloped are they? Are the HR processes efficient and do they serve their intended purposes? The majority of the report is dedicated to this topic.
2. Do companies with strongly developed HR processes outperform their competitors? And do they possess a more credible HR function from the perspective of business leaders?
3. Which companies are leaders in specific HR processes? For the first time, we have an exact rating and a real benchmark of HR processes in the region.
The research has demonstrated that companies with well-developed HR processes and practices, particularly in areas such as HR strategy, leadership, culture, and innovative HR practices, including people analytics, tend to have stronger relationships with the business and greater credibility. Through multiple regression analysis, a significant prediction emerged: based on HR processes and practices, the relationship between HR and Managers can be predicted with 77% accuracy. Key predictors include HR strategy, leadership, culture, innovative HR practices, and people analytics. The stronger these elements within the HR function, the better the relationship between HR and Managers The conclusion is clear: for HR to become a credible value creator within the company and earn the respect of the business, there is
a need to prioritize strategy, leadership, culture, innovative HR practices, and people analytics. To follow the theme of this edition of HR World - Innovation, let’s take a closer look at how these concepts translate into practice.
While 73% of participants agree with this assertion, let’s examine the extent to which technology is utilized for digitizing HR processes: 72% of companies stated that their HR administration process is digitized, followed by recruitment and selection at 54%. Every second company employs HRIS for performance management, while 24% use it for talent management and 49% for basic HR analytics. However, only 9% of companies utilize an information system for predictive HR analytics, and 34% do not employ any central HRIS.
How does the HR function stand in adopting innovative technologies?
Innovative technologies such as Chatbots are utilized by every tenth company, while Robotic Process Automation is implemented by 5% of companies. Gamification in the learning process is employed by 15% of companies, whereas Augmented Reality and Virtual Reality are used by only 2.2% of companies.
Research indicates that leveraging data analytics in managing people-related risks and decision-making significantly enhances the credibility of the HR function. Therefore, let’s assess the HR function’s performance in this regard.
In 58% of companies, managers seek data from HR analytics when making business decisions. However, only half of the companies utilize HR analytics to identify relevant risks and develop strategies to mitigate them, such as addressing absenteeism or reducing employee turnover. To effectively utilize data, we require internal capabilities within HR teams.
Let’s evaluate our current status in terms of internal capabilities in HR analytics: 40% of companies report that their HR teams
are trained to employ qualitative and quantitative data collection and analysis techniques to generate insights and support decisionmaking. Basic data analytics (reports, midpoints, percentiles) are utilized by 66% of companies, mid-level analysis (correlation, standard deviation) by 24%, regression by 9%, and advanced analysis and structural equation modeling by only 1% of companies. The results clearly indicate the importance and necessity of using data analytics and innovative technologies but also highlight significant room for improvement in these areas within the HR function in the region.
We believe that the most beneficial insight from the first annual research is the benchmark it provides. For individual companies that participated in the research, the most valuable aspect will be the rating of their HR processes. Utilizing scientific methodology, we can identify companies that excel in terms of HR processes and practices.
However, this research offers even greater value to companies with room for improvement. For these companies, the research can pinpoint areas for enhancement, suggest where to invest effort, and recommend actions to improve and stand out, thereby fostering a more successful business environment and promoting healthier, more productive workplaces. Individual ratings are part of a personalized report for participating companies.
For companies that did not participate this year, there will be an opportunity to join the next research cycle, scheduled to launch in April 2024. We encourage you to participate and contribute to the development of a strong and credible HR function, thereby fostering a good and productive business environment for all.
In 58% of companies, managers seek data from HR analytics when making business decisions. However, only half of the companies utilize HR analytics to identify relevant risks and develop strategies to mitigate them, such as addressing absenteeism or reducing employee turnover.
The debate and questions revolving around the HR Business Partnership concept and how can HR start delivering more value to the business is still ongoing with no sign it will end any time soon. To try to help HR answer these questions and support them in increasing the value they deliver to the business, my associates and I have devised the HR Maturity Framework.
The HR Maturity Framework is a combination of the tool and the process designed to assist HR departments in evaluating their current situation across diverse HR capabilities. It aims to facilitate alignment between HR and business requirements by delineating desired maturity levels for each capability within a specified timeframe, thus enabling more effective support for achieving business goals. By providing a comprehensive overview of both present and future capabilities, the framework enables HR to identify the gaps, heatmap these gaps according to their importance for achieving the business goals, initiate constructive dialogues regarding remedial actions and their implications from the benefitto-cost perspective for the business, make a proper prioritization, and follow up with the action plan.
HR Maturity Framework consists of 17 HR capabilities grouped into four areas: (1) Strategic HR, (2) HR Operations, (3) HR Enablers, and (4) HR Outcomes.
From the Strategic HR perspective, HR needs to understand how the business works and how the value for customers is being added throughout the entire value chain. Moreover, HR needs to engage in planning their activities in a way that will always be in function of achieving business goals. However, they are expected to bring value in actively shaping an organizational culture that will support fulfilling the mission of their organization. HR also needs to be proactively and continuously involved in organization design and workforce planning to keep adjusting the organization to ever-changing business needs while being masters at using proper change management practices. Once this is the case, HR will be seen as holding an influential position, with an equal voice alongside business leaders, impacting both the formulation and implementation of strategy.
HR Operations are day-to-day activities that must be executed seamlessly for an organization to keep running and achieving its business goals. In a way, these might be called core HR activities as they provide the essence of what HR is all about. These are the activities around which the business has already built certain expectations, and where a certain level of service quality is a must. Here, we refer to talent sourcing and acquisition, talent and leadership development, performance management, succession planning, and total rewards management.
BY PROVIDING A COMPREHENSIVE OVERVIEW OF BOTH PRESENT AND FUTURE CAPABILITIES, THE FRAMEWORK ENABLES HR TO IDENTIFY THE GAPS, HEATMAP THESE GAPS ACCORDING TO THEIR IMPORTANCE FOR ACHIEVING THE BUSINESS GOALS, INITIATE CONSTRUCTIVE DIALOGUES REGARDING REMEDIAL ACTIONS AND THEIR IMPLICATIONS FROM THE BENEFIT-TO-COST PERSPECTIVE FOR THE BUSINESS, MAKE A PROPER
AND FOLLOW UP WITH THE ACTION PLAN.
To make both strategic and operational HR activities as effective as possible, there is a need to have proper HR Enablers in place. Here, we refer to policies and procedures aiming to standardize HR activities to a certain extent, technologies and systems that support and partly automate their execution, reporting and workforce analytics bringing transparency, and operations improvement to make sure HR processes are being improved continuously. These are the capabilities that aim to support the execution of HR activities that bring value to the business. As such, enablers are usually being done in the background and not visible to the business. However, if they stopped being done at any point, they would seriously undermine the execution of strategic and operational HR activities almost instantly and this would become obvious to anyone in the organization.
Finally, HR outcomes are the result of the execution in the three aforementioned capability areas. Here, we think of HR credibility, employer brand, and talent engagement. These three dimensions might be seen as lagging indicators because there is a significant time lag between conducting strategic, operational, and enabling HR activities in a certain way, and then seeing the results in terms of how credible the HR is viewed from the business perspective, how is the employer brand being perceived internally and externally, and how engaged the workforce is.
The need to grow the HR maturity is beneficial for both the business and HR. For the business, it adds tremendous value if executives and senior managers are able to focus on business planning and delivery while knowing they have proper business partners always on top of things when it comes to continually supporting the business efforts from the people and organization perspectives. As for HR, this means overcoming the current doubts coming from the business side by making significant progress in understanding the business and contributing more from both strategic and operational perspective. In this way, HR will be able to command more respect from the business and position itself as an equal business partner with a seat at the executive table well earned.
The company vision is to be a leading company in developing and producing aluminium systems for architectural applications.
Alumil mission is to improve the quality of people’s lives by enhancing the performance of their buildings, with products of the highest quality, technology and aesthetics.
Alumil values are the essence of overall business philosophy and reflect the way company approach to customers and stakeholders. The values are: integrity, team spirit, initiative, loyalty and meraki
Most of us are becoming sick of the question of whether or not we should adapt to these unprecedented changes when it comes to our environment. It seems as if it is up to us to decide what will be improved, changed, or disrupted nowadays, when we can all agree that the only responsibility that we now have is to jump on the bandwagon of disruptive innovation and join the society that will, undoubtedly, be responsible for a totally different future than the one our parents have predicted.
MOST ORGANIZATIONS CHOOSE TO IMPLEMENT VARIOUS L&D PROGRAMS, WORKSHOPS, AND SEMINARS THAT ADD UNNECESSARY BURDEN TO ALREADY OVERWORKED EMPLOYEES. INSTEAD, EMPIRICAL EVIDENCE HAS SHOWN THAT THOSE WHO APPROACH THIS CHALLENGE WITH TEAM COACHING - ACHIEVE IMMENSELY BETTER RESULTS.
Nowadays, all we do is talk about innovation. Innovation within all the major industries, within the global economy, and within the day-to-day processes. The car we used to drive to work on a daily basis, now drives us. The phone that once served merely to get in touch with our friends and family now virtually does almost everything we need it to. Even our kitchen appliances are now somewhat grown up. They have the autonomy and data to be selfutilized and self-sustainable.
Innovation is, without a doubt present - wherever we turn.
To be honest, I think that most of us are becoming sick of the question of whether or not we should adapt to these unprecedented changes when it comes to our environment. It seems as if it is up to us to decide what will be improved, changed, or disrupted nowadays, when we can all agree that the only responsibility that we now have is to jump on the bandwagon of disruptive innovation and join the society that will, undoubtedly, be responsible for a totally different future than the one our parents have predicted.
That’s why I made the decision to avoid focusing this hefty article on the question - “So what can we do to adapt to all the innovation around us?” because, to be quite frank, we all are aware of the answer. Instead, I think the right question we should be asking ourselves is how to drive innovation, support it, and utilize it to our advantage.
Innovative teams are teams well-managed.
When talking about high-performing teams, which drive innovation and change within organizations, we usually talk about a group of highperforming individuals, who strive for skill excellence. Thus, we are prone to associating advanced results with a group of individuals - just because of their nature, work ethic, skill set, etc. And when we hire such talented individuals, we want them to stay, grow with us, contribute to our strategic plans, and nurture our culture and values. We would even want them to be the internal drivers of change and our performance catalysts.
However, with such a perspective, we could all easily deduce that we are also responsible for those less advanced and desired results. Such results would, in turn, mean that we are all a part of a group
consisting of low performers, unskilled individuals, or those who are in need of additional motivational efforts. But I strongly believe that nowadays, we can all agree that such a perspective is not that present within the business world.
So, what exactly can we do in order to have high-performing teams within all our departments and sectors, which do in fact promote innovation and change, whilst nurturing our core values and strategic direction?
It is at this point in the life cycle of companies that organizations take a wrong turn and end up at a scenic cliffside called - high turnover. Most organizations choose to implement various L&D programs, workshops, and seminars that add unnecessary burden to already overworked employees. Instead, empirical evidence has shown that those who approach this challenge with team coachingachieve immensely better results, although there’s still a lot of stigma surrounding team coaching and its efficiency and effectiveness in a diverse and relatively volatile market such as the global market currently. Hence, for all the skeptics around us who are still unsure of the scope and benefits of team coaching, I’m eagerly sharing a few base points you should refer to, in order to rethink your approach to team effectiveness whilst nurturing innovativeness.
1Have you ever heard of “Eudaimonia”? There is a consensus on the fact that there is an ideal of excellence for any particular craft or occupation. Aristotle believed that, similarly, there must be an excellence that we can achieve as human beings. Only when we develop our truly human capacities sufficiently to achieve this human excellence will we have lives blessed with happiness. He defined Eudaimonia as the ultimate potential, individuals achieve when satisfying all three dimensions of human purpose.
So, the question you should be asking yourself to begin with iswhat would change in driving innovation within teams, if all three dimensions were to be developed to their full potential?
2Now that you have the basis covered, it is time to focus on the ways you actually motivate your teams to find value within their work, their daily tasks, and assignments - so that at the right time, they can develop a sense of meaning, belonging and higher levels of inspiration. It’s a common practice to assign projects and tasks, without really discussing them in terms of impact, value, and long-term benefits. “Team Question Prism” (part of Advanced Team Tactics, ICI training program), developed by Life&Mind Studio, is a set of questions to be used whilst managing teams which in turn stimulate them to think more creatively, develop critical reasoning and promote innovation.
Not only can you find meaningful action steps and promote better team dynamics, but you may also utilize this tool to facilitate brainstorming sprints, manage idea creation and selection, and finally - make sure you are on the right track when it comes to innovation.
Our Regional Coaching Research from 2023 has shown that, from a market segment of respondents implementing team coaching, 84,6% of them utilize the Team Question Prism to promote innovation while improving team performance and dynamics. Therefore, why not try implementing the Team Question Prism in your daily work with teams to see where it takes you - from whereon you can decide on what your next steps should be?
And remember, the difference between innovation and dreams, lies within the realms of support you provide to your teams.
ChatGPT, introduced in 2022 as part of OpenAI's initiative to advance artificial general intelligence (AGI), quickly gained exceptional popularity as an AIpowered chatbot that simulates human conversation, answers questions, and generates text. In just five days, the number of users surpassed a million, and within two months, it exceeded 100 million. Every day, more than 13 million visitors use this powerful application for various purposes, such as writing, getting answers to questions, and solving problems.
Considering ChatGPT’s ability to process vast amounts of data to provide efficient responses, the question arises:
How can organizations leverage AI, specifically ChatGPT, to enhance modern organizational design and processes?
The application of ChatGPT for organizational development and design offers significant opportunities to enhance communication, decision-
CHATGPT CAN PROVIDE DEEPER INSIGHTS INTO EXISTING PROCESSES WITHIN THE ORGANIZATION. BY ANALYZING DATA RELATED TO THESE PROCESSES, CHATGPT CAN IDENTIFY POTENTIAL ISSUES, INEFFICIENCIES, OR AREAS THAT REQUIRE IMPROVEMENT.
making, and foster innovation within companies. There are four important aspects in which ChatGPT can provide continuous improvement.
ChatGPT can be immensely helpful in defining clear and precise roles within an organization. Through interactive communication with users, ChatGPT can inquire about tasks, responsibilities, and team or individual goals. Based on the gathered information, ChatGPT can provide recommendations and guidelines for defining roles aligned with organizational objectives and strategy. This facilitates more efficient resource allocation and clear task delineation, contributing to improved organization and work coordination. Additionally, ChatGPT can prove useful in automating routine tasks and processes. Leveraging its natural language generation capabilities, ChatGPT can communicate with systems and software used within
the organization. In this way, ChatGPT can take on specific routine tasks such as report submission, meeting scheduling, or document management. Automating these tasks frees up employees’ time to focus on more creative and complex assignments, thereby enhancing overall productivity and efficiency. (robotspaceship.com, 2023)
Through its natural language generation capability, ChatGPT can serve as an efficient tool for information and idea exchange among employees. This interactive communication facilitates quicker and more effective information sharing, reduces the need for unnecessary meetings, and streamlines collaboration among teams. ChatGPT can provide deeper insights into existing processes within the organization. By analyzing data related to these processes, ChatGPT can identify potential issues, inefficiencies, or areas that require improvement. This
may involve pinpointing unnecessary steps in the process or overlapping responsibilities. (forbes.com, 2022)
The implementation of ChatGPT in personalizing and adapting reward systems brings significant advantages to organizations. This intelligent system can provide personalized recommendations for rewards and incentives, taking into account the individual needs and preferences of employees. Through interactive communication, ChatGPT can gather relevant information about employee performance, goals, and interests to suggest appropriate rewards and incentives. Integrating ChatGPT into the reward system has the potential to increase employee engagement, boost motivation, and enhance workplace satisfaction. (medium.com, 2020)
CHATGPT CAN PROVIDE RECOMMENDATIONS AND GUIDELINES FOR DEFINING ROLES ALIGNED WITH ORGANIZATIONAL OBJECTIVES AND STRATEGY. THIS FACILITATES MORE EFFICIENT RESOURCE ALLOCATION AND CLEAR TASK DELINEATION, CONTRIBUTING TO IMPROVED ORGANIZATION AND WORK COORDINATION.
One of the key applications of ChatGPT in employee development is in training. Through interactive communication, ChatGPT can offer explanations, examples, and exercises to help employees acquire new knowledge and skills—addressing employee questions, solving problems, and providing immediate assistance.
ChatGPT can also aid in the recruitment and selection process. Based on predefined criteria and information about potential candidates, ChatGPT can analyze resumes and recommend the best
candidates for a specific role. It can assist in automating administrative tasks in this area, such as creating a database of interview questions, communicating with candidates, writing job advertisements, and searching databases. (northwest. education, 2023)
Integrating ChatGPT into modern organizational design can bring numerous advantages to businesses. Organizations should carefully plan its implementation, considering their specific needs, goals, and resources. It is crucial for ChatGPT to be seamlessly integrated into existing processes and workflows, providing support to employees and enhancing their capabilities rather than replacing them. Continuous monitoring and evaluation of results are essential to ensure tangible value for the organization. In the era of increasing artificial intelligence usage, ChatGPT stands out as a powerful tool for transforming organizational design and gaining a competitive edge, making its adoption promising for significant success in modern organizational design.
CAREER AND MOTHERHOOD: FROM OIL AND WATER TO MILK AND HONEY
Danica Ristić, HR ConsultantCURRENTLY, CAREER AND MOTHERHOOD ARE LIKE OIL AND WATER - FREQUENTLY MIXED WITH UNFAVORABLE RESULTS. LET’S SEE WHAT WE NEED TO DO TO MAKE IT AS MILK AND HONEY - A GREAT PAIR THAT ENRICHES ONE ANOTHER, MAKING EVERYONE’S LIVES MORE ENJOYABLE.
As I write this article, my mom is cradling my newborn who won’t stop crying while my husband is trying to wrangle our three-yearold. It is beyond chaotic in my household right now and that makes me the perfect person to write about this.
I am on maternity leave, but as much as motherhood is a non-stop job, so is my career.
It would be highly hypocritical of me to say that it’s easy to balance the two. It’s not. It is, so, very much, not. But also, balance isn’t the right word. Perhaps it’s better to say to juggle, wrestle, maintain, and not destroy… One or the other. Or both. Or yourself in the process.
Currently, career and motherhood are like oil and water - frequently mixed with unfavorable results. Let’s see what we need to do to make it as milk and honey - a great pair that enriches one another, making everyone’s lives more enjoyable.
ANYTHING THAT ALLOWS A PARENT TO SPEND MORE TIME WITH THEIR CHILDREN WILL MAKE THEM WAY MORE EFFICIENT, ENGAGED, AND ENTHUSIASTIC WHEN THEY ARE ON COMPANY TIME.
Who is responsible for the way motherhood and careers combine?
Let me tell you, it’s not just on moms!
If motherhood was only a mother’s responsibility, we would have stopped existing as a species a long time ago. Everyone plays a part in bringing and raising a human. If you are a member of society, a colleague, a business owner, a manager, or an HR - it is also on you.
But not you alone.
IF MOTHERHOOD WAS ONLY A MOTHER’S RESPONSIBILITY, WE WOULD HAVE STOPPED EXISTING AS A SPECIES A LONG TIME AGO. IF YOU ARE A MEMBER OF SOCIETY, A COLLEAGUE, A BUSINESS OWNER, A MANAGER, OR AN HR - IT IS ALSO ON YOU.
Being the one that determines working hours, length of parental leave, salary while being out on leave, etc. - the system is crucial. Progress has been made, but there is still a lot of room for innovation, especially in the long-term back-to-work part of the experience.
It is highly challenging for a parent to spend a year at home with their child only to be forced to leave them in daycare for a minimum of 8 hours the moment they turn one. It seems a bit like the Cinderella story, where until midnight you can have it all, but after midnight it’s all rats, rags, and rotten pumpkins.
This is why the change with the most significant impact lies in the possibility of choice, which the system currently doesn’t provide to most parents…
… But a company can! But, what would make the most significant, most profound impact on working parents? Let’s innovate how we approach these benefits - making sure we give not only what makes a difference to the employee but also to the company.
- Flexibility in choosing location and hours - A parent who doesn’t have to miss a thing in their children’s lives due to work is, indeed, a very happy employee.
- Benefits that include (extended) family - especially talking about private health insurance, as well as mental and physical health.
- Perks that impact the day-to-day lives of parents - providing grants for childcare, allowing children to drop by on-site, including families in activities away from work, sponsoring school events, etc
Anything that allows a parent to spend more time with their children will make them way more efficient, engaged, and enthusiastic when they are on company time. However, if part of the culture is to secretly, or even openly, shame parents for, well, being parents, then all the perks in the world aren’t going to be enough
As a parent, I can’t emphasize this enough - because it’s high time parents take control of the narrative.
Parents, how many times have you apologized to your employer for having kids? For them being sick? For having to leave early to pick them up, drop them off, attend a school play, or take them to the doctor’s? At some point, we made it customary to apologize for the fact children exist and have needs that need to be met. By acting like this we perpetuate this harrowing culture and continue the vicious circle. It’s about time we stop.
Do you know who can be efficient, productive, and engaged on a mere 3 hours of sleep each night? Yep, it’s the parents.
From my perspective, I can confirm I have less time, for sure. But I have way better focus. I am impeccable at assessing a situation and providing immediate action items. I don’t waste a single minute when I am working. And no pressure at work ever surmounts to taking a screaming toddler from the park. You can trust me on that one.
The reality of the situation is that there is a thing called the mom penalty, where those of us who choose to be parents are punished with missed promotions, reduced responsibilities, and overall pause, or at least, slowing down of our careers. Obviously, the parents suffer. But so do the companies. Even if your motivation isn’t purely humanitarian, let it be centered around profit. Providing better conditions for parents will cost way less than how much happy parents will make, in return.
Simply put, career and parenthood have traditionally not mixed well.
But it’s on us, all of us, to impact that change. Babies have to be born, businesses have to be made. So, let’s figure out, all of us, the best way to do it together.
Andrea, a graduate of Organizational Sciences in Belgrade, specialized in IT Systems and Technologies. Currently enrolled in a Master's program in IST Management. Studied in Lille, France, at Université Catholique de Lille. Actively participated in various educational programs and internships, enhancing skills in Project Management, HR, and programming. Completed training and gained handson experience at companies like Intellya and Generali Osiguranje Srbija. Now, she is a Business Development Manager at 30Hills, an IT company.
Bogdan is a CoFounder and CTO of mBrainTrain. He is an electrical engineer with a Ph.D. in medical imaging in neuroscience. mBrainTrain developed the first commercially available mobile EEG device SMARTING in 2013. Since then, their mobile EEG devices have spread to over 50 countries around the world. With each new system, they are setting a new standard in the field. Their clients are wellknown research labs and tech giants. As the most recent success, Smarting PRO is chosen to fly to the international space station, within the Axiom 2 mission, being the first EEG data recorded in space.
Bruno Pešec helps business leaders innovate profitably. He is the rare innovator who can claim that he's worked on a regulation-defying freight train and an award-winning board game. In addition to his corporate experience with brands like DNV, DNB, and Kongsberg Group, Bruno runs a community of entrepreneurs of several thousand members. He is currently undertaking a doctorate in organisational change, focusing on the issues with innovation in large enterprises. Bruno has co-authored the ‘Augmented Strategy’ book, a practical guide to decision making based on data and human intuition.
Danica Ristić is an experienced HR professional whose consulting business aims to spread awareness and tools on how to create, maintain, and develop healthy careers that benefit individuals and businesses alike.
Elvin Turner is the author of Be Less Zombie: How great companies create dynamic innovation, fearless leadership and passionate people and The Smartest Question in the Room. He is an innovation advisor to global corporations and teaches entrepreneurship and innovation management on MBA programmes.
Ilse Venter is the Global/ EMEA Workforce Intelligence and Transformation Director for PwC's Tax, Legal and Workforce business, and has more than 16 years of professional experience in workforce strategy, transformation, change and digital adoption programs. She previously served as Global TLS Digital Upskilling Leader, where she led a team that developed and implemented a citizen-led transformation program, enhancing the data literacy of over 190,000+ individuals in 130+ territories. She is now dedicated to building Strategic Workforce Planning capabilities around the PwC network of firms.
Ivan, a seasoned Management Consultant, brings over 15 years of expertise in organization design, business process optimization, strategy development, and performance management. He has worked across diverse sectors including banking, oil & gas, gaming, and telco, collaborating with leading Serbian organizations such as NIS Gazprom Neft, Vojvođanska banka, and Banca Intesa. Ivan holds a PhD in Strategy & Organization and is certified as a Lean Six Sigma Black Belt, Business Architect, Performance Management Professional, and Change Management Practitioner.
Head of Strategy and Program Innovation is her day-to-day focus, but during her free time - she focuses her undivided attention to program development, creative strategy development, and ATT coaching. After obtaining her BA in Finance, and MSc in HR, she decided to combine the two - knowledge in processes, and experience with people development, therefore creating elaborate L&D programs focused on business performance, whilst nurturing people. Her programs are accredited by the ICI, and she remains the youngest certified coach in Europe.
Nataša has wide experience in banking namely in Innovation, digital transformation, and data science. Throughout her career, she led large-scale projects and digital transformation initiatives. In her current role, Nataša is a change agent, focused on building internal and external innovation capabilities, modernization through new technologies, and the bank's digital transformation. IT education and background give her a wide awareness of IT topics, so she is supporting the organization’s IT maturity to ensure the adoption of modern technologies and processes.
Sandra is an innovation expert with a focus on developing sustainable innovation capabilities and cultures. She has extensive experience in crafting and executing internal and external innovation programs, greatly influencing corporate innovation ecosystems in major regional corporations in the region. Her role as a mentor and advisor enhances startups' product discovery and business growth. As an Associate Professor at the Faculty of Media and Communications, Sandra merges her consulting expertise with academic research, focusing on entrepreneurship, management, and innovation management.
Saša Spasić, a seasoned strategist and Chief Innovation Officer, has thrived in navigating diverse industries and investment landscapes for nearly two decades. With a knack for crafting game-changing strategies, he elevates teams to new heights. His insatiable curiosity and executive MBA sharpen his foresight into financial trends, making him a leading voice in business innovation circles online and offline, offering insights honed from twenty years in the field.
Dr. Silke Maurer was appointed COO at MTU Aero Engines AG in February 2023. During her over 20 years of leadership, she has repeatedly created, developed and managed high-performing departments and teams through trust in her own ability, belief in her people and an empowerment philosophy. Silke places significant importance on diversity, enthusiasm for common targets and a united purpose. She has an R&D educational background and practical expertise in industrialization projects. Prior to MTU, she held senior roles at BSH Home Appliances and the BMW Group.
Steve is the Co-Founder of Wonder, an employee experience design company based in Stockholm. As a passionate advocate of the power of experiences and a design thinking practitioner, he spends his time designing unique experiences that engage people and differentiate in a competitive talent market.
Svetlana Nešković is Head of HR Services at NIS. With a focus on managing expertise centers for over 11,000 employees, she has been a trailblazer in operational efficiency, digital transformation, and legal compliance. Svetlana's leadership has led to significant achievements, including HR Shared Service transformation, the establishment of an HR Compliance function, and a remarkable reduction in legal disputes. Beyond her corporate success, Svetlana is a dedicated advocate for continuous improvement, change management, and team development.
Vladimir, also known as Vanja, is an independent digital transformation strategist catering to Fortune 500 companies, global brands, governments, and international organizations. He's been a keynote speaker at 180+ events across 4 continents. As the Co-Founder and President of Digitalizuj. Me, an NGO in Montenegro, he fosters social change and business opportunities in the digital realm. Previously, he taught Strategic Management at the University of Montenegro for 12 years. Vanja is (obviously) a proud Swiftie.
Wojciech Bednaruk, leading the EMEA People-Centric Technology team at PwC, is dedicated to lifelong learning. He's an eLearning designer, developer, and learning technology strategist. Passionate about continuous education, he also coaches AI ethics at university, embodying his commitment to personal growth. With a diverse skill set and an adventurous spirit, Wojciech epitomizes the modern learning technology professional.
Žaklina is HR and people enthusiast. Strongly believes in building environment where people can do their best and business flourish, both in a sustainable manner. For more than 15 years she is on a leading positions in HR, currently Human Resources Director in MTU Maintenance Serbia. Experienced in supporting business expansion and building HR organizations from the scratch.
Žaklina is CIPD alumni. She conducts PhD research to explore the impact of the HR systems on the characteristics of the workforce (motivation, knowledge, skills, abilities, opportunities, creative performance and well-being) and consequently on operational and financial results of the companies.
EDITOR-IN-CHIEF
Nevena Stanisavljević
EXPERT EDITOR
Sandra Nešić
MANAGING EDITORS
Tamara Jeremić
Aleksandra Fuštić
CONTRIBUTORS
Vladimir Vulić, Silke Maurer, Bogdan Mijović, Steve Usher, Nataša Rađenović-Živanović, Svetlana Nešković, Wojciech Bednaruk, Elvin Turner, Bruno Pešec, Andrea Filipović, Ilse Venter, Saša Spasić
CONTRIBUTING EDITORS & STAFF
Katarina Đorđević, Jovana Jakovljević, Maša Vlahović, Danica Ristić, Marija Todorović, Jovana Kostadinović, Anđela Petronijević, Žaklina Teofilović, Ivan Stefanović
PHOTOGRAPHY
Unsplash, Freepik, Envato
DESIGN
Belpak LLC, Belgrade, Željka Bašić Stankov Polovinas design studio, Belgrade
Belpak LLC, Belgrade 2.000 copies
PUBLISHER
HR WORLD LLC
PUBLICATION Twice per year Mid-Year Edition
005.96
HR World : better HR for a better world / glavna i odgovorna Editor-in-Chief Nevena Stanisavljević. - 2019, no. 1 (apr.)- . - Beograd : HR World, 2019- (Beograd : Caligraph). - 27 cm
ISSN 2620-2859 = HR World COBISS.SR-ID 276133644