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Asian companies and economies rebounded com- modate the restrictions the coronavirus forced across paratively quickly from the Covid-19 downturn, the world, re-calibrating supply chains and adding employing lessons they learned from previous amenities such as curbside pickup to sidestep the worst pandemics to triage their business portfolios and adapt of the financial and economic fallout. to a chaotic new reality. Many forward-thinking U.S. companies followed closely behind. Facebook, Amazon This need for this type of triage process might not feel and other large digital platforms could simply feast on quite as urgent as the coronavirus recedes, but the impor- the pandemic-fueled bounty for e-commerce and deliv- tance of constantly analyzing the business environment and ery companies, but many of the country’s top “real econ- paring out parts of the business that cannot adapt to a world omy” firms, such as Walmart, also managed to accom- in constant change will remain. Covid-19 simply laid bare the need for a continuous pursuit of adaptability and flex- ibility as new virus variants are coming, other pandemics ensue and other large scale VUCA disruptions are added on top, such as cybersecurity outages, climate change and geopolitical tensions with China. As the pandemic widens the divides between the haves (e.g. the large digital plat- forms) and the have-nots (e.g. most of the \"real economy”), we will need a new framework to remobilize and charge ahead. To that end, we propose FLP-IT, a novel framework that flips our gaze to the future while taking into account the ever-changing variables that are reshaping our surround- ings, environments, markets and lives. THE FLP-IT FRAMEWORK The FLP-IT framework sets out a series of analytical steps that will help individuals and organizations make better sense of the current environment, and then begin to turn the threats and opportunities they identify into growth going forward: FORCES: Understand the new forces, or the amplification of existing forces that create critical uncertainties and impact our lives and businesses. For example, what tech providers are positively or negatively impacted by the pandemic? Will new political administrations in the U.S. and Europe elevate or depress regulation of the digital economy and society? What will emerge from advancements in cutting- edge technologies that were unleashed by the pandemic? A fuller understanding of these new forces will help you more accurately assess how current events are transforming the www.europeanbusinessreview.com 51

FUTURE OF BUSINESS As the pandemic widens the divides between the haves (e.g. the large digital platforms) and the have-nots (e.g. most of the \"real economy”), we will need a new framework to remobilize and charge ahead. settings in which firms operate and reshaping who loses? Which business models will prevail? the business landscape. How will a decentralized supply chain change marginal revenue and costs? Will cities suffer LOGIC: brain drains as virtual work nomads seek new physical spaces, and will this phenomenon As you gain a better sense for these key forces, change spending, consumption and taxation? determine the new and emerging logic devel- How will education and training change to oping in our societies, industries and fields. allow workers far more flexibility to learn and These days it is particularly cliche to hear earn simultaneously? And how will a hybrid- about the “new normals” with which we need ized workforce compete with the vibrancy of to cope, so look instead for the evolving logics brick-and-mortar economies, mainly in the that explain the evolution of your environment. developing markets, as consumption and social Will our economies, industries and lives bounce interactions stagger? back quickly once a vaccine is approved, or will we struggle to recapture growth and vitality? IMPLICATIONS: Will we be stuck to a geometry of crisis (e.g. the V-shape, W-shape, or Elongated Bathtub)? If we Now, draw conclusions about the implications do roar back, how will we normalize business these forces, logics ( multiple plausible futures) and society? Will we live in an era of continuous and patterns will create for your company, “Coronomics,” with a faster oscillation between community and family. For businesses, this contraction and expansion as every new virus might come in the form of a value chain impact and non-virus disruption hits? Will technoc- assessment based on observations gleaned racies triumph as other countries drift toward from the FLP steps in this framework. Where populism and away from science? are the vulnerable links in the value chain, and where are the new opportunities to strengthen PATTERNS: and diversify it? What specialized platforms might emerge, or what technologies could you With a sense of the logic at play in these develop in-house to enhance smart procure- turbulent times, visualize the new patterns ment and supply chains as the world moves and phenomena emerging from interactions toward a more systematic acceptance of open between actors in your world. Who gains and and frugal solutions? 52 THE EUROPEAN BUSINESS REVIEW MAY - JUNE 2021

TRIAGE: The true value of identifying the implications of V apply these will vary based on who you are or, these forces, logics and patterns emerges from more importantly, who you want to become as the development of a new portfolio of business VOLATILITY you step through and emerge from the crisis: activities, units and products that can respond to discontinuities with greater adaptability. To U 1 realize that value, though, you have to triage the existing elements of your portfolio. This might UNCERTAINTY Build healthcare surveillance into your require the elimination of portfolio elements operational model – The emerging future that cannot adapt to a constantly shifting C of work will necessitate new combinations “non-normal” – or at least accommodate a reality of virtual and physical presence. “Hyperflex in which radical transformation will periodically COMPLEXITY mode,” or the constant toggling between occur. This frees up capital and attention that then physical and digital, will become a key provides oxygen for activities that are less rigidly A operating principle for most businesses. pegged to one type of normal or one dimension This will not be possible without steady (e.g. outside versus inside, digital versus physical, AMBIGUITY vigilance for worker wellbeing and the domestic versus international, or centralized resulting assurance of productivity. versus dispersed). To that end, we recommend a focus on the use of digital technologies and new 2 materials science to transform assets for utility in different market realities, such as selective lock- Invest in remote facilities operations downs, changing health and hygiene policies, or and new transaction processes between the ebbs and flows of cross-border transactions. collaborators – New health and hygiene requirements will require more monitoring PUTTING FLP-IT TO WORK and command-and-control technologies for fabrication sites. Managers will need The triage process is a logical destination for the new digital/hybrid leadership techniques. entire FLP-IT framework. Indeed, we designed And marketing and sales teams will need to FLP-IT to integrate assessment, foresight and craft new partnerships for event manage- action in a way that helps individuals and busi- ment, “edutainment,” and other solutions nesses generate the kind of flexible growth that foster human intimacy and help replace that portfolio adaptability provides in a VUCA physical rapport-building protocols. world – no matter how long the down cycles last or how widely the balances shift between digital and physical presence. Most portfolio triage decisions will be determined by the specific business, competitive arena or industry in question, but there are some generalizable recommendations we can make already. Each of the following recommendations offers an internal productivity investment or an opportu- nity for new actors to innovate and develop new solutions – and ultimately build more resilience in traditional and digital actors alike. How you www.europeanbusinessreview.com 53

FUTURE OF BUSINESS 3 ABOUT THE AUTHORS Increase supply chain redundancy and Dr. Olaf Groth is a global strategist, author, resilience – Working with AI-driven smart adviser and professor focused on technology, supply chain functionality providers (e.g. disruption and discontinuities in the global SAP Ariba, Coupa, Ivalua, Gep, Jaggaer or economy. He is CEO of advisory thinktank Oracle) can help companies gain intelli- Cambrian Futures and concept development gence on the health of their procurement firm Cambrian Designs, Professor for Strategy, processes and various vendors. This will Innovation, Economics and Futures at Hult enable faster switching and, with that, International Business School, Professional greater supply security. Faculty for Strategy, Technology and Business & Public Policy at UC Berkeley’s Haas School 4 of Business and a Global Network Member at the World Economic Forum. Olaf has held Reconfigure your service or product leadership roles in global enterprises and delivery – Organizations will need to mini- consultancies. A frequent speaker, commen- mize human touch points and exposure tator and author in media outlets he is also to infections, putting special attention to co-author of “Solomon’s Code: Humanity in the value proposition of new service or a World of Thinking Machines,” jointly with product delivery modalities. This plays into UC Berkeley’s Dr. Mark Nitzberg and of \"The the emerging trend of “everything at a safe AI Generation: Shaping Our Shared Global distance,” which generates new customer Future With Thinking Machines\" (Pegasus, and employee intimacy problems for brands. 2021). His forthcoming book “The Great Remobilization: Designing A Smarter World” 5 with Dr. Mark Esposito and Dr. Terence Tse is due to be released in 2022. Consider new life-management solutions – Social distancing is straining relationships Dr. Mark Esposito is a socio-economic and finances are getting stretched by the loss strategist and bestselling author, researching of customers, jobs and furloughs. Meanwhile, the Fourth Industrial Revolution and Global the cybersecurity of both enterprise and Shifts. He works at the interface between home networks becomes more enmeshed Business, Technology and Government and and, potentially, less secure.. Software solu- co-founded Nexus FrontierTech, an Artificial tions that manage the new volatility on all Intelligence company. He is Professor of these fronts will find their markets. Business and Economics at Hult International Business School and equally a faculty We will not see a single “new normal” for months member at Harvard Division of Continuing if not years, and we more likely will need to adjust to Education since 2011. He is an advisor to the a series of frequently changing “new normals” as we Prime Minister Office in the UAE and a Policy prepare ourselves for a world in constant transforma- Fellow at UCL’s Institute for Innovation and tion. Rather than hoping in vain for a return to what Public Purpose. He has authored/co-au- we once knew or giving in to the pain of what’s lost, thored over 150 publications, 11 books, among we need to flip our gaze forward, embrace the uncer- which 2 Amazon bestsellers: Understanding tainty, and adjust our strategies and activities. The how the Future Unfolds (2017) and The AI FLP-IT model does that, so we can triage our portfolios Republic (2019). His next book “The Great in ways that generate tangible value for the businesses Remobilization: Designing A Smarter World” and individuals we encounter each day. with Dr. Olaf Groth and Dr. Terence Tse, will be published in 2022 by MIT University Press. Dr. Terence Tse is a professor at ESCP Business School and a co-founder and executive director of Nexus FrontierTech, an AI company. He has worked with more than thirty corporate clients and intergov- ernmental organizations in advisory and training capacities. In addition to being a sought after global speaker., he has written over 110 published articles and three other books including the latest Amazon best seller, The AI Republic: Building the Nexus Between Humans and Intelligent Automation. His next book “The Great Remobilization: Designing A Smarter World” with Dr. Olaf Groth and Dr. Mark Esposito will explore the post pandemic designs as we prepare for the great reset. 54 THE EUROPEAN BUSINESS REVIEW MAY - JUNE 2021



BUSINESS PROCESS SIX BUSINESS PROCESSES YOU NEED TO RETHINK FOR THE AGILE AGE By Alessandro Di Fiore From pandemics to politics and beyond, companies face and Gabriele Rosani an uncertain and changing environment characterized by fast-decreasing stability and predictability. To cope, organizations in different contexts and competitive situations have enthusiastically embraced the concept of agility. In support, thought leaders, academics and practitioners produce a constant stream of articles, reports, white papers and books on agility – not to mention the profusion of webinars and events. 56 THE EUROPEAN BUSINESS REVIEW MAY - JUNE 2021

The result is that when we quiz them, ex- cycles of a few weeks (called sprints in agile ecutives often say, “Yes, of course we do jargon) while pressed to comply with the yearly agile.” In reality, when pressed they be- budget process, filling templates with detailed lieve they have embraced agility because they numbers for the next twelve months. Under have launched some teams using agile method- such constraints, sprints become marathons. ologies (such as Scrum) as their way of working. Does it really make sense for an agile team to But launching agile teams is often not enough to invest time and effort in detailing a yearly budget achieve the goals of becoming a more flexible plan that may be completely outdated after a few and agile organization, able to operate faster. sprint cycles? There is a difference in scope and ambition in setting agility as a goal for the overall organiza- Or imagine if the same team needs to pivot and tion against using agile methodologies to run a pursue a different route requiring new skills in number of teams and projects. the team. Does it make sense for them to wait for extended periods because procurement takes three In reality, if you launch agile teams while months to source the newly needed outside talent the rest of the organization is operating in the through the standard vendor process? These are traditional way, the teams will not achieve not theoretical questions. At one company an agile their performance potential. Agile teams will team needed to quickly find an expert on machine be systematically slowed down by long-estab- learning, a skill that was not promptly available lished processes. We have encountered newly in-house. The procurement process to engage a formed agile teams expected to work in short vendor was so cumbersome and time-consuming www.europeanbusinessreview.com 57

BUSINESS PROCESS that the team gave up and eventually went with a 3 suboptimal solution to avoid critical delays. Goal Setting: establishing team-based Keeping traditional business processes objectives and related measurable key unchanged may fundamentally hinder the results (OKRs) on a quarterly cadence ability to reap performance rewards from agile rather than annual individual MBOs. teams. If a company wants to become agile it must also rethink some key management 4 processes, relics of 20th century management, that create rigidity, bureaucracy and slowness. Performance Management: moving Based on our global consulting experience, towards a system of social feedback, there are six main business processes that a open to peers and team members, not company should adapt when introducing agile. only determined by the performance We have published extensively on most of them review of the hierarchical boss. and we suggest the reader who is interested to dive into some of them to refer to our other 5 publications. But here is a summary of the six processes and their needed changes: Talent Sourcing: evolving towards a liquid workforce, leveraging the 1 opportunity of external on-demand talents (for example, using freelance Strategic Planning: allowing more platforms). dynamic assumptions and strategic options, periodically reassessed, based 6 on strategic conversations rather than simply using a numbers game. Decision Making: innovating the control model, reducing the chain of 2 preventive authorizations, empowering teams and employees and establishing Budgeting: making resources and funds new ways of post-detection control. available to teams in a flexible way to seize emerging opportunities. 58 THE EUROPEAN BUSINESS REVIEW MAY - JUNE 2021

THE SIX BUSINESS PROCESSES YOU NEED TO RETHINK FOR THE AGILE AGE Process From … … To 1. Strategic • Stable assumptions for multi-year plans • Dynamic assumptions to validate ‘on the go’ Planning • Process-heavy, number game • Periodical reassessment based on learnings and • Lack of clarity and simplicity (difficult to strategic conversations communicate) • Storytelling (epics, few words strategy statement) 2. Budgeting • Once a year • Quarterly (or even more frequent) • Rigid resource allocation • Flexible reallocation based on value • Bureaucratic authorizations • Owned by Function (“my budget”) ‘increments’ and changing priorities • Simple rules to use and spend it • Owned by autonomous teams 3. Goal Setting • Annual and fixed • Quarterly and routinely reviewed, OKR methodology • Individual • Team-based • Linked to MBO (only employee and manager know) • Transparent 4. Performance • Only the Boss gives feedback (hierarchical model) • Social feedback (“wisdom of the crowd”) Management • Secretive and formal from many peers • Negotiation around compensation • Time consuming, filling templates • Transparent, and candid • For learning and development • App tools (few clicks) to provide a feedback in minutes 5. Talent • Distinction between internal and external • Liquid workforce (blurred lines between Sourcing (external means vendor) internal and external) • Heavy process to procure externally • Access to a long tail of talents on • Preferred on-premises work freelance platforms • Talents easily and quickly sourced • Work from where you live 6. Decision • Several authorization layers before the • Push the decision-making down the Making decision or spend is authorized organizational hierarchy • Rules to limit the discretionary judge- • Empowerment of the workforce and their ment of employees judgement in making decisions • Preventive control model • ‘Post-detection” control model Consider some companies that have trans- dynamics follow much shorter cycles of few formed their key processes to become more agile. weeks or even less. Consequently, budgeting and resource allocation cannot be rigid anymore. Their Take the case of Vodafone: as part of an ambi- budget, for instance, is restated four or five times tious Agile transformation program they have a year: the initial version is not bounding, and the rethought key processes such as resource allo- spending mix of a Tribe can be reallocated across cation to allow more adaptability and flexibility different Squads according to shifting priorities. to changes. For example, while in the past the planning for Christmas offerings and campaigns PTC Therapeutics, a New Jersey-based biotech used to start months in advanced, today portfolio company, introduced an agile goal setting process, www.europeanbusinessreview.com 59

BUSINESS PROCESS using an OKRs approach. For example, one goal creates bureaucracy and reduces employee of the company is to advance late stage clin- engagement. AffinityPlus eliminated the long ical programs, with the concrete key result of approval processes and introduced a frame- obtaining FDA approval by the first work (in a nutshell: “Do what is in quarter of the year. This set of compa- Companies that have the best interest of our clients”) ny’s OKRs is aligned to the teams agility as goal for the to guide everybody in making owning each clinical development decisions for loans. Within that program, which in turn define more overall organization framework every employee can use granular OKRs – such as completing a must rethink their judgement to deviate from certain clinical study by a deadline or fundamental processes the bank’s policies, but they are having the briefing documents ready required to justify their decisions to be submitted to FDA. Individuals, that create rigidity in and post their rationales in the or sub-teams, that perform work resource allocation and system in a transparent way. then have their OKRs, which are bureaucracy in decision discussed with the team. This creates Embracing agility is more than simply launching teams using an an environment of communica- making, delaying agile methodology. Companies tion, alignment, and collaboration. actions and hampering that have agility as goal for the Moreover, one team’s OKRs are visible the commitment and overall organization must rethink to other teams to increase transpar- fundamental processes that create ency and ease interdependencies. engagement of their rigidity in resource allocation and OKRs are discussed and updated quar- employees. bureaucracy in decision making, terly to reflect changing priorities. delaying actions and hampering AffinityPlus, a Minnesota-based the commitment and engagement credit union, is a remarkable example of inno- of their employees. Making those processes vation in decision making and control model. more agile will also enable the work of agile In traditional banks, even if the customer fits teams, improving their performance and the credit scoring, the branch employee must morale and, at the same time, preparing the ask for a signature two or three levels up before right preconditions for full-scale organiza- granting a loan. This slows down decisions, tional transformation. ABOUT THE AUTHORS Alessandro Di Fiore is the Gabriele Rosani is a senior founder and CEO of the manager at ECSI Consulting, European Centre for Strategic expert in the areas of business Innovation (ECSI) and ECSI model innovation, platform Consulting. He is based in economy, innovation manage- Boston and Milan. He can be ment and organizational agility. reached at adifiore@ecsi-con- He is based in Milan and sulting.com. Follow him on can be reached at twitter @alexdifiore. grosani@ecsi-consulting.com 60 THE EUROPEAN BUSINESS REVIEW MAY - JUNE 2021

BRAND Company Brands as Purpose-driven Lived-Experience Ecosystems By Venkat Ramaswamy and Nicholas Ind With the COVID-19 pandemic curbing global travel in the first quarter of 2020, Airbnb, which had taken twelve years to build its hosting community and home rental business, saw 80% of its bookings vanish. The company lost around $1 billion in revenues in the first eight weeks of the second quarter and cut about a quarter of its 7,500 workforce. Re- markably, by the end of the third quarter, Airbnb was in the black again. According to CEO Brian Chesky, Airbnb got back to the core of its brand purpose of “belonging and connection”, after losing focus in pursuit of growth with forays into media, hotels and transportation, and increasing its marketing spend.1 While Airbnb raised $2 billion in debt and equity financing to stay afloat and slashed about $1 billion in marketing expenses, it also had to cover increased expenses: it gave booked guests their money back, gave hosts approximately $250 million to cover lost revenue, created a “super host relief fund” of $10 million and engaged 200,000 hosts in providing housing for some 100,000 “front-line workers”. At the same time, it launched a new category of “online Airbnb www.europeanbusinessreview.com 61

BRAND experiences” (from artists to chefs Airbnb also did something unusual with its to celebrities), which became their fastest-growing offering ever. A key laid-off employees. They were invited to opt catalyst behind rebounding its core business was connecting with the into an alumni directory, where recruiters (even lived experiences of its customers and hosts, and learning from and competitors) could reach out to them. More adapting with them. At the end of the second quarter 2020, Airbnb had than half a million people visited, a number uncovered a key strategic insight, in that, while people didn’t really want of them got new jobs and some got hired back, to go to cities or travel on business, they did want to get out of the house with others prioritised to be welcomed back as in a car and travel somewhere up to 300 miles away. By the middle of the and when. Besides employees’ stock quarter, it was doing more business in the United States than at the same A key catalyst options, Airbnb made yet another time the previous year. By engaging behind rebounding unusual move when it allowed hosts together with customers and hosts, to invest in $238 million worth of stock Airbnb pivoted its home page on its website to “Go Near”, with interac- its core business in its $3.5 billion initial public offering tional flows of engagements crafted was connecting (IPO). Given the doubling of its share around both customers and hosts. with the lived price post-IPO, hosts felt appreciated as About 90% of Airbnb’s traffic is direct, co-creators of value through the Airbnb because, as Chesky puts it, “we have a brand that’s kind of used as a noun experiences of its platform. As Chesky noted, “Our hosts or verb around the world and that’s customers and helped create this community and so it because people are really passionate hosts, and learning would be nice, if they want to, they can about the product we offer… People co-own the company.”3 come to Airbnb to figure out where they want to travel to… so this is a from and adapting To be sure, Airbnb has been beset really, really big opportunity, and with them. by a large number of scandals over the we’ve really custom built this plat- years. It has come under fire from hosts form specifically for the Airbnb way of traveling.”2 who have felt ignored, from regulators, especially in cities, and from customers who have experienced racial discrimina- tion. In January 2020, Chesky had publicly declared, “We believe that building an endur- ingly successful business goes hand-in-hand with making a positive contribution to society. Increasingly, that is what citizens, consumers, employees, communities, and policy-makers desire – even demand. Serving all stakeholders is the best way to build a highly valuable busi- ness and it’s the right thing to do for society.”4 The Airbnb story draws attention to creating 62 THE EUROPEAN BUSINESS REVIEW MAY - JUNE 2021

company brands, together with orchestrating interactional flows of given greater emphasis to individ- stakeholders, as purpose-driven expe- engagements that enhance the crea- uals and their life experiences (i.e., rience ecosystems. This is to adopt tive developmental capacities of “lived” experience). This “lived-expe- a perspective that sees the world experience ecosystems, and positively rience ecosystem” revolution calls for through the lived journeys of indi- impact the outcomes in the lives and the dramatic rethinking of company viduals-as-experiencers, as shown in livelihoods of all stakeholding individ- brands, from both the perspectives Figure 1. To transform value requires uals, together with them. of stakeholding individuals as experi- business to construct purpose-built encers, as well as co-creators, within platforms that enable relevant and PURPOSE-BUILT the broader ongoing movement of the impactful ecosystem engagements PLATFORMISATION OF firm beyond the traditional corporate and experiences. The implication IMPACT ECOSYSTEMS OF form toward “purpose-driven” enter- of this is that managers have to LIVED EXPERIENCES prises. The COVID-19 pandemic has understand and use brand purpose catalysed ongoing discourse, among to configure interactional flows of Exchange of goods and services has academics and practitioners alike, engagements across the interfaces, been the basis of the industrial revo- on impact valuation and multi-stake- processes, artifacts and persons that lution powered by water, electricity, holder governance processes, and compose digital platforms. This is a computers and, now, interactive intel- the legal articulation of a “purpose- collective process, in that the impacts ligence. Although we are in a so-called driven” enterprise. of activities in the ecosystems in “Fourth Industrial Revolution” (4IR), which it operates are shaped together companies have remained teth- This was made explicit in France with stakeholders in light of their ered to a view of market exchange in 2019, when a distinction was lived journeys as experiencers. to the exclusion of more directly made between the legal entity of the focusing on interactional and crea- corporation and the creativity and As the Airbnb example suggests, tional flows of engagements.5 The innovation of the enterprise itself. successful co-creation goes beyond COVID-19 pandemic has, however, Core to the distinction was the desire the platformisation of resourced to give emphasis to corporate purpose capabilities per se. It means and to oblige companies to consider the social and environmental impli- FIGURE 1: Co-Creating Purpose-driven Lived-Experience Ecosystems cations of their activities. In this context, Levillain and Segrestin have Valuable argued that we need to conceptualise Developmental the modern business “enterprise” as a form of “collective creation” that IMPACTS emphasises scientific invention, new communication systems and innova- Cross-sector Architectures of Enactment of Life journeys of Stakeholders tion toward “desirable futures”.6 This Ecosystem Environments of Interactional Creational new entreprise à mission model raises Relations ECOSYSTEMS Individuals-as- -as- the question as to, “How can this Flows of BRAND collective creation be best oriented ENGAGEMENTS EXPERIENCERS Co-Creators toward the collective interest?” Today’s innovative and global business enter- Purpose-built prise cannot be thought of as a private Digitalised actor pursuing its own interests. As an engine for the production of society, PLATFORMIZATION its governance should certainly match the requirement of general welfare. From a business perspective, operating in a hyperconnected, www.europeanbusinessreview.com 63

BRAND From a business perspective, operating in a hyperconnected, interdependent world has been a reckoning for CEOs of companies who are “genuinely struggling with their role at a time when employees, customers, investors and society are demanding ever more of them”. interdependent world has been a reckoning for integrating it into its charter and undergoing CEOs of companies who are “genuinely strug- external reporting and evaluation. Danone’s gling with their role at a time when employees, ex-Chairman and CEO, Emmanuel Faber, notes customers, investors and society are demanding that managing the diversity of stakeholders ever more of them”.7 As Airbnb navigated its is a “fact”, as manifest in the realities of busi- way out of the crisis, Chesky noted in a Fortune ness.(*) Creating shareholder value requires interview, “I think what ends up happening the enterprise to engage in multi-stakeholder with companies is they usually just serve one governance, and report and deliver on the four stakeholder – shareholders; they look at only key objectives of health, planet, people and certain types of metrics – financial metrics; inclusive growth in its business ecosystem. they look at them over a short period of time In other words, it is becoming the standard. – quarterly; and so human beings get reduced In the case of Danone, Faber notes that food to numbers on a spreadsheet… It is possible to is undergoing a vast revolution: “People are design systems where everyone can benefit… reconsidering the role of brands when it comes People have this erroneous notion that there is to food. They had entrusted in their parents thing called trade-offs and that you must priori- and trusted brands with the guarantee that the tise somebody over the other… I just call that an food they were eating was the right food. They incomplete design.”8 found out it was not always true and some of the unintended consequences like diabetes, Even as the pressure toward becoming obesity, and depleting natural resources etc., purpose-driven is becoming more intensive, and a whole generation is now questioning the locus of brand value innovation has rapidly that”, and this all across the world; “there shifted beyond traditional goods-services is a need to rebuild trust and I think that big operational activities toward environments of brands have a place (and whereas they have experience ecosystems in the lived journey of lost market share in the last decade) and are experiencers. Consider, for instance, the case ready to be brands on a mission, they can make of Danone, a French-based, multinational a change. And what we see in the COVID crisis food giant, whose North American arm is is exactly that opportunity to come back into the largest public-benefit corporation in the the preferences of people if they can behave world. The parent company became the first properly... Consumers are craving change. listed entity in France to adopt the entreprise à They expect large organisations like Danone to mission model, which makes the stated raison bring our scale of impact to change the world d’etre (which defines the company purpose and for the better.”9 can differ from the interests of shareholders, as such) legally binding for its directors by At the same time, the production of food 64 THE EUROPEAN BUSINESS REVIEW MAY - JUNE 2021

and the business of agriculture itself has the early 2000s, Deere began experimenting undergone dramatic change in the 4IR, as infor- with global positioning systems (GPS), along mation technology has become part of physical with a wide variety of biosensors on their farming products. Consider the case of the John combines and tractors, with on-board sensors Deere brand, which is almost two centuries that can measure the oil content of grain or old, with its roots in agriculture. As Docherty tell the difference between weeds and crops. and Porter note, “John Deere talked with local GPS-guided steering of tractors and other farmers, who spoke of their frustrations with machines establishes repeatable accuracy and their old ploughs, most of which were designed eliminates overlaps in the treatment of farm for the sandy soils common in the eastern areas, reducing costs to the farmer in time, United States and were therefore unable to fuel, labour and chemicals, while fertilisers shed the sticky soil of the Midwest. John Deere and herbicide can be applied according to built a new plough of highly polished steel that the needs of the soil in a farmer’s area. The was self-scouring, allowing farmers to plough modern farmer can keep track of equipment their fields uninterrupted. In 1837 he created remotely, access remote diagnostics inte- the company that bears his name.” John Deere’s grated into the system, along with predictive focus on helping farmers ultimately built a analytics to avoid costly surprises during the brand trusted by farmers.10 planting or harvesting seasons. John Deere created the Intelligent Solutions Group (ISG), Over the past two decades, Deere has comprising “hundreds of system architects and undergone a remarkable purpose-driven developers centred on developing advanced digitalised transformation based on an expe- farming technologies”… to help capitalise on rience ecosystem configured toward the “the use of technologies such as GPS, vision, lived journeys of farmers as experiencers. In What we see in the COVID crisis is exactly that opportunity to come back into the preferences of people if they can behave properly... Consumers are craving change. www.europeanbusinessreview.com 65

BRAND sensors, robotics and machine learning”… and ENGAGING STAKEHOLDERS AS provide “software and data-based solutions that CO-CREATORS work with equipment and analyse outcomes to solve complex problems on the farm”. Deere is With growing recognition of the importance of the connecting not only farm machinery but also an United Nations Sustainable Development Goals ecosystem of connected services through irriga- (SDGs), to achieve a better and more sustainable tion systems, combined with weather data and future for all, there is increasing emphasis on seed optimisation for an advanced “precision focusing on multi-stakeholder impacts. As the farming brand experience ecosystem”.11 World Economic Forum notes, the company is “more than an economic unit generating wealth. The Deere brand offering is oriented around It fulfils human and societal aspirations as part of the farmer-as-experiencer, paying attention to the broader social system. Performance must be the lived journey of farmers through which value measured not only on the return to shareholders, emerges for the farmer via Deere platformised but also on how it achieves its environmental, capabilities as a service. Over the past decade, it social and good governance objectives.”12 This has systematically become focused on the indi- move to involving stakeholders in co-creating the vidual jobs a farmer has throughout the entire enterprise entails a shift in the strategic manage- growing season, starting with the process of ment of brands toward orchestrating platformised field preparation, planting or seeding, applying brand experience ecosystems. The connection of (nurturing and protecting) and harvesting. It brand value creation opportunities with resourced includes all the analysis and planning that goes capabilities, enables stakeholders, as co-creating into farm management to assist farmers, as they experiencers and organising actors, to co-design stand in their fields or sit in their combines, as to environments of emergent experiences and enact how their businesses could be run better overall valuable embodied experiences through those using mobile interactive platforms. Farmers can environments over space and time. harness machine and agronomic data to enhance the long-term health and sustainability of their Multi-stakeholder perspectives of brand operations, while promoting their stewardship of valuation, corporate social responsibility and the land. They have a sense of control over their sustainability considerations have gained increased data and can share it with whomever they choose recognition in creating brands together. This builds to, with appropriate access and decision rights. on earlier emphases of brand value as a “multi- farious construct that is affected by, or the sum 66 THE EUROPEAN BUSINESS REVIEW MAY - JUNE 2021

of, a gamut of relationships”, which involves in society, the environment and the business employees, customers and other stakeholders landscape; responsible in that short-term and in brand development, and all stakeholders in long-term objectives must be balanced; empa- the enterprise network contributing to a “nego- thetic in that the expectations and demands of tiated” brand, as its brand value develops over diverse stakeholders must be recognised; and time. Multi-stakeholder perspectives also draw participatory in that the voices and concerns of attention to balancing heterogeneous matters all stakeholders must be considered. Danone’s of concern, dealing with the loss of control Manifesto brand model is a case in point. Its over brand evolution, finding the middle backbone is its “One Planet, One Health” vision, ground between polyphony and cacophony, which recognises that the health of people and positive and negative freedom, and cultivating that of the planet are interconnected. It is a trust and ethics, and nurturing a sense of “call to action for all consumers and everyone meaningful brand purpose. In addition, techno- who has a stake in food to join the food revo- logical advances, such as in machine learning lution: a movement aimed at nurturing the and artificial intelligence, also raise important adoption of healthier, more sustainable eating questions of inclusiveness, privacy and ethics in decision-making that impact brand relations in Co-creation has the potential experience ecosystems.13 to balance the invisible hand of free markets with the Co-creation has the potential to balance the visible and united hands of invisible hand of free markets with the visible the corporate brand’s and united hands of the corporate brand’s diverse stakeholders. diverse stakeholders. This demands a genuine This demands a genuine will will and an absolute commitment to listening and an absolute commitment to different stakeholders’ needs, expectations to listening to different and desires. However, unfortunately, too many stakeholders’ needs, organisations are still primarily concerned with expectations and desires. meeting the expectations of their shareholders, even if they claim to engage in a dialogue with their different stakeholders. Instead, conscien- tious corporate brands promote an authentically balanced stakeholder perspective. Additionally, they are not only committed to listening to stake- holders but, most importantly, they engage them in their strategic decision-making processes. Conscientious corporate brands which adhere to this strategic view of co-creation, see their stake- holders as key strategic partners with whom they need to build long-term, trustworthy collabora- tive relationships. Here, stakeholders are seen as value co-creators, “rather than as entities to be merely managed by the enterprise”.14 To enable a co-creative approach requires transformative, responsible, empathetic and participatory leadership of company brands – transformative in that profits and purpose must be balanced with a commitment to using busi- ness to foster a positive, transformative change www.europeanbusinessreview.com 67

BRAND and drinking habits”. This brand infrastructures, while enhancing mention “digitally native” business model “has as its unique starting point developmental capacities. Sustaining models (such as Airbnb), centred the focus on people, identifying the the collective creation of purpose- on networked flows of engagements tension between a relevant insight and driven experience ecosystems requires and interactional creation of value confronting it to the reality in which we continued emphasis on the positive through digitally platformised offer- live. This makes it possible to identify generation and modification of its ings. Simultaneously, there has the legitimacy of the brand to operate capacities to produce “surplus effects” been an increasing democratisation in this environment.” What’s more, of well-being, while deftly managing in the process of value creation Danone has empowered its 100,000 strategic risks which are material to the as a “co-creation”. Prahalad and employees to co-own this vision (with business as they arise. Ramaswamy originally articulated nine 2030 Danone Manifesto intercon- co-creation as a process of individ- nected goals) through its pioneering CONCLUSION uals and enterprises jointly creating “One Person, One Voice, One Share” customer experience value, where engagement platform. It relies on an Over the past two decades, there has the individual was involved in this internal digital platform with exten- been growing recognition of the dual process.16 They heralded a new fron- sive sharing and learning resources decentring and democratisation of tier of co-creation of value based related to the company vision and company brands, within the broader on the engagement of individuals goals, including content derived from umbrella of co-creating brands and through their environments of expe- collaboration with like-minded part- co-creative brand management riences on the one hand, and access ners. All Danone employees have the systems, and with the active partici- to resources, skills and capabilities of opportunity to learn more and build pation of stakeholding individuals in networks of firms and communities on the issues, challenges and oppor- creating brands and valuable impacts on the other hand. They discussed tunities that come with the goals. They together. Ubiquitous information and how this was more than a mere focus can also voice their point of view on communication technologies in a on the user experience of goods both the company agenda and the hyperconnected and interdependent and services. Instead, it entailed a roadmaps of the 2030 goals, at local digitalised world have transformed broader, emergent lived-experience and global levels. Annually, 26 volun- the business and societal landscape space, in which individuals were an teers are selected to carry the voices in unprecedented ways, accelerating integral part, personally and collec- of its 100,000 employees to members the decentring of value creation away tively, alongside the rapidly evolving of the Board of Directors and the from the goods-services activities smart, connected offerings that Executive Committee; the dialogue of firms and institutions toward the we take for granted today through provides an opportunity for richer and experiences of individuals. It has multiple modes of interactions – more constructive discussions to feed spurred an “experience-first” frame from new cloud-enabled mobile into Danone’s strategy, which is then of reference in value creation, not to shared back with employees.15 applications of artificial intelli- Engaging stakeholders as co-crea- gence, to the Internet of Things and tors of cross-sector, purpose-driven lived-experience ecosystems entails augmented/virtual reality. While the co-creative transformation of brand management systems that support ongoing interactional crea- tional flows to create valuable brand impacts together. A significant chal- lenge is to configure brand-experience ecosystem platforms with partners and other stakeholders, as they plug into or proactively build out focal digital 68 THE EUROPEAN BUSINESS REVIEW MAY - JUNE 2021

digitalised technologies continue to evolve, so the Purpose-Driven Enterprise. Valuation Studies, must company practices in imagining brands Linköping University Electronic Press 2019, 6, pp.87 - as platformised impact experience ecosystems. 93. 10.3384/VS.2001-5992.196187 . hal- 02011872. Keeping brands alive and connected with the 7. https://fortune.com/2020/09/01/ daily lives and livelihoods of people, together ceos-stakeholder-capitalism-publicity-ceo-daily/ with all stakeholders, in a hyperconnected, 8. https://www.stitcher.com/show/leadership-next/ digitalised world, is a new emergent frontier episode/airbnbs-brian-chesky-we-are-a-better-com- of value creation and innovation over the next pany-now-73876816 decade. 9. https://fortune.com/2020/07/07/ for-danones-ceo-stakeholder-capitalism-is-a-fact/ (*) Since writing the article, Emmanuel Faber has left 10. Denny Docherty and Mike Porter, 2019. Danone. The company notes that ‘The Board believes Transforming a Historic Brand for a Hyper-Connected in the necessity of combining high economic perfor- World: The John Deere Story. In A. M. Tybout & mance and the respect of Danone’s unique model of T. Calkins (Eds.), Kellogg on Branding in a Hyper- a purpose-driven company, built on the strength of connected World. Hoboken, NJ: John Wiley & Sons. its brands and enabled by the outstanding quality of 11. https://www.deere.com/en/our-company/ its teams. ‘ https://www.danone.com/content/dam/ sustainability/ danone-corp/danone-com/medias/medias-en/2021/ 12. https://www.weforum.org/agenda/2019/12/ corporatepressreleases/PR-Danone-new-governance- davos-manifesto-2020-the-universal-pur- march-15-2021.pdf pose-of-a-company-in-the-fourth-industrial-revolution/ 13. Nicholas Ind and Venkat Ramaswamy, 2021. How REFERENCES enterprises can create meaningful purpose together 1. https://news.airbnb.com/a-message-from-co- with their stakeholders. The European Business founder-and-ceo-brian-chesky/ Review. January-February. See also Nicholas Ind and 2. https://www.cnbc.com/2020/12/10/cnbc-transcript- Holger J. Schmidt, 2020. Co-Creating Brands: Brand airbnb-co-founder-ceo-brian-chesky-speaks-with- Management from a co-creative perspective. London, cnbcs-squawk-on-the-street-today.html U. K.: Bloombsury Business. 3. https://www.youtube.com/watch?v=qZQM17Qa1RM 14. Venkat Ramaswamy and Kerimcan Ozcan, 2014. 4. https://news.airbnb.com/serving-all-stakeholders/ The Co-Creation Paradigm, Palo Alto: Stanford 5. Klaus Schwab, 2016. Shaping the Future of the University Press. Fourth Industrial Revolution. New York: Currency; 15. Oriol Iglesias and Nicholas Ind, 2020. Towards a Venkat Ramaswamy, 2020. Leading the experience theory of conscientious corporate brand co-creation: ecosystem revolution - innovating offerings as inter- the next key challenge in brand management. Journal active platforms. Strategy & Leadership, 48(3), 3-9. of Brand Management, 27(6), 710-720. 6. Kevin Levillain and Blanche Segrestin. On Inventing 16. C. K. Prahalad and Venkat Ramaswamy, 2004, The Future of Competition: Co-Creating Unique Value with Customers, Boston, MA: Harvard Business School Press. ABOUT THE AUTHORS Venkat Ramaswamy is Professor of Marketing at the Ross School of Business, University of Michigan, Ann Arbor, USA. He is a globally recognised thought leader, idea practitioner and eclectic scholar with wide-ranging interests in innovation, strategy, marketing, branding, IT, operations and the human side of the organisation. Venkat's book, The Future of Competition (2004), co-authored with C.K. Prahalad, introduced co-creation as a revolutionary concept. It provided a new frame of reference for jointly creating value through experienced environments and called for a process of co-creation – the practice of developing offerings through ongoing collaboration with customers, employees, partners and other stakeholders. Nicholas Ind is Professor of Brand Management at Kristiania University College, Norway and a Visiting Professor at ESADE Business School in Barcelona and Edinburgh Napier University. His work focuses on the intersection of co-creation, branding and corporate culture. He is the author of 16 books, including Living the Brand, Branding Governance, Brand Desire and Co-creating Brands. Before becoming an academic, Nicholas worked as a brand management consultant with a focus on defining brands and bringing them to life. www.europeanbusinessreview.com 69

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TEAM MANAGEMENT AIMING TO NOURISH THE MORE HUMAN ORGANISATION By Michael Chaskalson, Helen Sieroda, Chris Nichols, and Philippa Hardman The first article in this series examined the organisations right now: how can we be more importance of Team Mindfulness using fully human in our work? Our research and the AIM model (Allowing, Inquiry, Me- client work tells us that this question has become ta-awareness) and explored how the application more pressing during the months of the COVID of the model in practice addresses important era, as the challenges of moving to new ways of areas of organisational life, including purpose working have had their impact on us all. We have and the quality of participation, both of which been using the AIM model as a guiding principle impact performance. over this time. This article takes a deeper dive into a These are some of our experiences and fundamental question on the agenda of most findings www.europeanbusinessreview.com 71

TEAM MANAGEMENT WHAT’S THE PROBLEM? The team as a team. Some of the teams we have surveyed have described difficulties arising in the nature of the team Teams are almost universally itself, which are not unique to digital working, nor to the reporting that the scale and pace pandemic, but have been exacerbated by these factors. of organisational challenges are Teams describe themselves as struggling to find and agree unrelenting. Some teams, and a shared purpose, contesting the purpose of the team some team members, are having a itself. tougher time than others. Alongside the exuberance of reinvention and Team performance. Some teams are facing challenges transformation, teams are having around the performance of the team. To what extent is to recognise that their new ways the team working well? Some teams are struggling to get of working can pose a challenge to a right balance between time spent individually and time well-being. We are seeing strain and as a team. Sometimes the urge to create connection xis distress, and where it exists, it is creating a demand for more and more meeting time. unevenly distributed. The adequacy of conversation: some teams are reporting At root what we are facing is a difficulty in addressing tougher issues in their virtual a sharpening of the question of conversations. Often, difficult conversations are being how organisations do, and do not, avoided out of concern that a virtual meeting is a tough support the needs and well-being (in place in which to have such conversations well. As a the broadest sense) of the humans result, certain issues of individual or team performance are involved. There has been a definite neglected. When those kinds of difficult conversations are shift towards a world intermediated avoided, creative juice leaks away. by machines. For many of us work has become physically distant, at least in Difficulties of inclusion and participation: teams are part, conducted through digital inter- reporting that they are seeing new challenges in the use faces. Much of the day-to-day social of power, affecting the way inclusion and participation is activity of organising travel, setting working. Individual life circumstances can be amplified in up meetings, and sharing informal new ways of working. It is easy to rely on some people more conversations, have been replaced by than others in virtual meetings. The efficient use of the chat incessant online activity. Many organ- function, or the use of side-messaging on other platforms, isations have already announced an can exclude and isolate alongside creating efficiency. intention to retain many of these ways of working. But, in doing so, it is also There are also specific issues arising in complex teams essential to address the human conse- where there is wide geographical distribution involving quences and to act wisely to gain the multiple time zones, or complex cross-cultural factors – benefits of such ways of working, which may exacerbate all of the other issues. without doing harm in the process. This matters on both the ethical level and in respect of organisational effectiveness. We recently conducted a qualitative survey of OD consultants and clients on the issues that teams are finding hardest to address in the face of new ways of working. We can summarise the issues emerging into the following main areas. 72 THE EUROPEAN BUSINESS REVIEW MAY - JUNE 2021

Throughout all of this is the issue of balancing ALLOWING human and organisational needs. Organisations often have an element of “the machine” about is the practice of recognising reality for what them, with processes and reporting cycles that are not particularly flexible to the needs of the it is. We all spend so much our time living in people who work there. The move to digital and online often makes the machine-human inter- a “what if” world. face a little more obvious. Clearly if we want humans to flourish and work well in organisa- There has been a When we are stuck in tions that themselves serve customers well and an attitude of wishing succeed in their commercial goals, we need to pay attention to the balance, the co-existence of definite shift towards things weren’t like the needs of both the organisation and the indi- a world intermediated this or an attitude of vidual humans in it. by machines. For many denial, there is very little choice available Our practice shows that the AIM framework can help. It helps to identify the source of issues of us work has become to us. It’s fruitless to and assist in addressing them creatively and physically distant, spend time wishing with rigour. The rest of this article explores how at least in part, the world were somehow different. A RECAP OF THE AIM APPROACH conducted through When you’re able to These AIM foundations of Allowing, Inquiry digital interfaces. allow things to be as and Meta-awareness were first set out in earlier they actually then research discussed in an article by Michael Chaskalson and Megan Reitz. possibilities emerge. INQUIRY is the practice of disciplined interest in opening things up. So much of creating the future involves moving beyond the ways of seeing and acting that have brought us to the problem we’re in. The ability to address the problem www.europeanbusinessreview.com 73

TEAM MANAGEMENT creatively demands that we see the Organisations often to be physically located in prime city world another way. We can only see have an element centre HQ space? Will tomorrow’s another way if we are willing to look of “the machine” staff need very different skills than through fresh lenses. This is where about them, the current team? nurturing a team’s ability to inquire with processes really matters. and reporting There has been a lot of anxiety and cycles that are some conflict, within the research META-AWARENESS not particularly team and between the research team flexible to the and the wider organisational manage- is the ability to look at the team needs of the people ment, who view the research team as from an ‘outsider’ perspective and who work there. presenting unwelcome and emotional see the behaviour of the team as it is obstacles to reasonable strategic happening, like looking down at the the purpose, form and operation of questions. The COVID crisis has led to swirling patterns of people moving the research work. The parent organ- much of this research activity being around a busy railway station from isation is moving its city HQ and this done remotely, with the team never a high up balcony. The team learns is leading to questions about exactly fully coming together during the last to see itself in action. It sees what is how the research archive serves the year. Discussions about the poten- going on its own collective behaviour firm best. What is the place of digi- tial changes have therefore all taken and its own patterns – what it is doing tisation of the activity, and what place in virtual meetings. while it is actually doing it. structural and operational changes will that mean? Does the archive need Let’s turn to how the AIM model As we discussed in our previous helps make sense of this situation and article, the three fundamentals of AIM how it assists the team in the situation – allowing, inquiry and meta-aware- they face. ness – can all be learned and nourished. Let’s now see how they work in the context of the challenge of creating a more human organisation. LOOKING AT ONE TEAM’S EXPERIENCE USING THE AIM LENS To make this practical, let’s look at the experience of one team we are working with (we’ve changed some details to keep confidentiality intact). This team sits within the research arm of a larger, high-profile organisation. The organisation concerned depends upon the team’s ongoing research activities, and their archive of past work makes a continual contribution to the organisation’s current output. Several factors have combined to require a significant examination of 74 THE EUROPEAN BUSINESS REVIEW MAY - JUNE 2021

The starting point is to allow what is happening simply to to gloss it into something more palatable, provides be accepted as facts. We’ve been working with a cross section a richer, if sometimes more complex and difficult, of the people involved to encourage them to recognise what is agenda that leaders are then able to work with happening, without judging anything as right or wrong. Some of through inquiry. the facts that have had to be accepted include: Inquiry asks better questions. There is fear and anxiety about the potential impacts In the example we have been working with here, of the changes on individual work patterns and life- we encouraged team members to begin to inquire styles. The team has worked together in one physical more deeply into different aspects of the situation space for many years, and team members are widely they are facing: spread within commuting distance of the HQ. A move to any other location will clearly benefit some and Firstly, their own experience of being in the disadvantage others. This is leading to conflict in the team at that point in time. How did they feel research team itself. about the work they were doing? What impact did working in these conditions have on their The difficulty has been exacerbated by home experience of work and their life at home? working, since it has become obvious which team members have been called into the office to meet Then we asked them to envisage and discuss “essential” projects and which have been fully at what the proposed changes might mean for home, which is causing fears over differential job them and for others of their team-mates. We security. In addition, although some team members created specific periods of time where those welcome the flexibility of working from home, thoughts could be shared non-judgementally others do not have suitable workspaces, or have – in a spirit of allowing. home schooling or caring responsibilities and have felt disadvantaged in the new ways of working. We also asked people to find words and metaphors to describe the team’s climate – The leaders of the team have come to recognise what did it feel like working in the team that that their team is not in fact acting as one team, had been, the team that was now and the but as groupings with very different concerns team they saw coming into being. and interests in respect of the changes at hand. Although they have previously set great store in Finally, we asked them to consider how the their team spirit, it’s been no use to pretend that team’s purpose, its task and goals were this is currently “one happy family”, as they previ- being affected by the team’s current climate. ously saw it. The very different needs and realities of the team members have called for a more detailed and richer examination of the concerns and challenges of individual team members. It has been no use to simply wish this to be different, and the leaders have gradually let go of the fantasy that everyone can rationally accept that there are strategic advantages and future gains. The reality is that the restructuring and new ways of working will have costs and benefits that are going to be unevenly borne, and that these differential impacts create a more complex situation to be managed. We have seen similar situation in other organisations, where the act of “allowing” what is there, rather than trying www.europeanbusinessreview.com 75

TEAM MANAGEMENT Much of the value of better inquiry arises from seeing the situation from a fresh perspective. We spend so much of our work lives seeing things from the position in the system that we each happen to occupy. It can be liberating just to realise that other viewpoints are possible! Taking the time to create moments in which a new question can lead to a new way of seeing is often an act of radical crea- tivity. Seeing a situation from another perspective will often in itself create better connections between parties where tension exists, moments of truth and reconcil- iation as alternative realities are witnessed meant that they came to see anyone who and acknowledged. In stood between them and the “finish line” as “part of the problem”, and this stopped some addition, each new way It’s easy to lose sight of of seeing can offer the the humanity in service of the team hearing the full range of human seeds of new solutions: of the day-to-day needs of the people they were dealing with. a new conversation, the pressures involved in possibility of a new set By places themselves “on the balcony” and able to look over at organisational of action, and these are running a business. It’s patterns emerging (of which they are them- often helpful contribu- only by turning up fully selves are a part), the team was also able tions to addressing the and working with a clear to see how their privileged position in the situation the organisa- system made some important communica- tion is facing. focus on the intention of tion much harder to achieve. In the case of the serving humanity well For example, project leaders noticed that this aspect really research team in our that they were very attached to the story example, this process they had developed about the strategic of rich inquiry, through gets sufficient focus. gains of the office move. In seeing this story above all others, they had placed them- questioning as we have discussed, fed into selves several steps ahead of the people in the next phase of building a stronger and more capable the research team, who were looking at a story of personal organisation as the team began to become more aware of impacts and possible losses. Once they spotted that there itself as a team. They began to experience an increase in was more than simply their own story running within the meta-awareness. project, they were more able to hear what others were trying to tell them. Meta-awareness makes us pay attention to the patterns Stopping to listen made it more possible for the holders of thinking in the team, while they are happening. By of those other stories to be heard, to be treated as humans developing this capability, the project team began to not mere obstacles to a process. No one had intended to notice their own patterns of thinking. They began to spot dehumanise their colleagues, but the project team came to that sometimes their espoused values were not the ones see that this had had in fact been the impact of their way actually playing out in their actions. This meant that they of seeing the world. They had become invested in their were much more able to do something to correct this. own story of costs and efficiency measures, and genuinely One thing they noticed was that they were being came to have less interest in the human impacts. Once they driven by a number of metaphors. They saw the project spotted that this was so (through allowing it to be) they were as a series of races, with a stopwatch and a series of finish able to listen better and that engaged more of the research lines to be reached. This was very understandable given team in the change process. that all of this was taking place within a change project, The solution of creating more space for human interac- with an accompanying Gantt chart of activities. But it also tion was key to making progress. Some of this was through 76 THE EUROPEAN BUSINESS REVIEW MAY - JUNE 2021

activity that was not directly related to the research team But we all also know that it’s easy to lose sight of the project. Creating meetings simply to hear what people humanity in service of the day-to-day pressures involved valued in their work and work lives helped to build a in running a business. It’s only by turning up fully and connection that then allowed the energy of the research working with a clear focus on the intention of serving team to be more engaged in the project. humanity well that this aspect really gets sufficient focus. None of this means that the changes affecting the The structure and discipline of AIM provides a way to research team are being stopped, nor does it mean do this better. In fact, in our experience, where any team that it will not disadvantage some. It was simply that is acting in ways that support human wellbeing well, they entering more fully into a human connection allows for will inevitably be following the triple strands of allowing, more creative ways of addressing genuine needs and inquiry and meta-awareness. The more we can bring meeting them where they can be met is helping to move these practices into our organisational life, the more able situation forward. we will be to create a workplace in which human beings thrive and succeed together. AIM AND THE HUMAN ORGANISATION. What the next article in this series covers In our next article we will look at the practice of Team Mindfulness Most of the organisations we work with aspire to be good in relation to creating and nurturing awareness of the relationship places to work, and very many genuinely want to provide between organisational work and the wider living world. We will nourishing places for humans to work with purpose, to look at how the use of the AIM framework can enhance the corpo- develop and to grow, and to have jobs which support their rate focus on important aspects of the environmental agenda such needs on many levels. as engaging support for effective action to address ESGs, net zero carbon targets and other forms of bio-intelligent activities. ABOUT THE AUTHORS Michael Chaskalson is Helen Sieroda is founder Chris Nichols is co-founder Philippa Hardman is a Professor of Practice of Wise Goose school of of the specialist systems co-founder with Chris at Ashridge Executive coaching and a partner at change consulting firm Nichols of GameShift. She Education at Hult GameShift. She has been GameShift, Over the past is a chartered accountant International Business coaching at senior levels three decades he has by background, with 25 School and associate at The for over 25 years and brings worked in public service, years consulting experi- Møller Institute at Churchill significant psychological consulting, finance and ence including Coopers & College in the University of expertise and emotional academia. His work brings Lybrand (now PwC) and Cambridge. A pioneer in the intelligence to her work. creative provocation and PA Consulting. She was application of mindfulness She was a U.K. Council for spiritual practice to the previously co-leader of the to leadership and in the Psychotherapy registered boardroom in service of strategy engagement group workplace, he is founding psycho-spiritual psycho- human and more than and Director of Ashridge Director of Mindfulness therapist and trainer of human flourishing. Consulting. Works Ltd. and a partner at therapists for over 20 years. GameShift. www.europeanbusinessreview.com 77

LUXURY STRATEGY To Harness the Power of Purpose, BRANDS MUST HAVE A MISSION By Klaus Heine and Sabine Chrétien-Ichikawa Especially in times of economic turbu- lence, companies need to be even more innovative. But competition has shift- ed from product innovations and functional benefits to cultural innovations and symbolic benefits. About two-thirds of consumers want companies to stand up for social or environ- mental issues they also feel passionate about (Accenture 2018). Conscientious consumers may buy or boycott a brand because of its so- cial or political stance. Along with this trend, a growing number of companies engage in Brand Activism, to drive social, political, or environmental change. This explains why everyone seems to be talking about purpose today, along with CSR, sustainability, eco, and ethical branding. Purpose-driven branding is probably one of the key business success driv- ers today – but it comes with some substantial risks and challenges. The Brand Purpose is part of the overall company objectives, which are known to be closely related to company success. Shang Xia, a Chinese high-end lifestyle brand owned by Hermès, recently celebrated its ten-year anni- versary in Beijing. At this occasion, one of the 78 THE EUROPEAN BUSINESS REVIEW MAY - JUNE 2021

authors of this article interviewed Mrs. Qionger Let’s start by looking at a few examples of Jiang, the head of Shang Xia and Mr. Patrick Brand Purpose/Mission/Vision/Ambition. Do Thomas, the president of Hermès at the time you know what is what? when the brand was launched. The goal of the interview was to ask them to look back at the 1 Coach: To become a company that defines last ten years and think about the key factors global modern luxury that made Shang Xia successful. Mr. Thomas replied that the ultimate success factor is to have 2 Stella McCartney: To achieve good envi- a clear Brand Vision: “You need to know exactly ronmental and especially animal welfare what you want. As soon as you divert from that, standards you are losing strength. Every decision and every act of the company has to be in harmony with the Warby Parker: To offer designer eyewear for vision” (Heine 2020). The Brand Vision inspires and motivates entrepreneurs and staff to keep 3 fashion-conscious Millennials at a revolu- going and attracts like-minded customers to tionary price by cutting out the middleman and the brand. Mrs. Jiang further explained that all selling directly to our clients. senior managers must share exactly the same vision. And as this was the case at Shang Xia, 4 Shang Xia: In 2021, we plan to open three new there were never any serious disputes about the stores in China. strategic direction of the brand between Mrs. Jiang and Mr. Thomas. As it’s the most descriptive and established term, “Brand Vision” was selected to describe As part of the Brand Vision, the Brand the entire category of overall business objec- Purpose refers to a “good cause.” However, when tives. The Brand Vision Canvas (see Figure next we look at studies about customers’ willingness page) helps you to identify and to illustrate your to pay more money for fair-trade, bio, or envi- Brand Purpose/Mission/Vision/Ambition in a ronment-friendly products, the results are often comprehensive overview. All of them are long- quite disappointing for many entrepreneurs. term business objectives – but they differ by the Many idealists are surprised that most people are time horizon and by whom they address – the simply not willing to just hand over more money society, customers, or the company. so they can “do good.” While ‘helping children in developing countries’ or ‘saving the rain forest’ are important issues, they are pretty far away from the small world around us. For too general causes, people tend to pay lip-service instead of a price premium. Having a clear brand purpose isn’t enough on its own. We should never forget about a fundamental marketing lesson that is rooted in human nature: People spend their money depending on the value that they believe to receive in return. To harness the power of brand purpose, we need to understand, first of all, the differences between the different types of brand objectives: Brand Purpose/Mission/Vision/Ambition – which are often confused. Second, to really drive your business, we need to connect the Brand Purpose with a strong Brand Mission. www.europeanbusinessreview.com 79

LUXURY STRATEGY BRAND PURPOSE: Having a clear brand purpose Think about the higher reason for the existence of your brand beyond isn’t enough making money. The Brand Purpose is not about creating customer on its own. We value, but about ‘doing good’ for the environment or society. should never Inspired leaders and brands don’t describe ‘what’ they do – they forget about a think, act, and communicate from the inside out – they start with fundamental ‘why.’ Because according to Sinek (2009), “People don’t buy what you marketing lesson do; they buy why you do it. And what you do simply proves what you that is rooted in believe.” A typical example is the statement of Stella McCartney human nature: above. The purpose of Shang Xia is to revive the pride of the Chinese People spend people in their heritage. their money depending on BRAND MISSION: the value that they believe to Think about the benefits of your products for your customers. Once you receive in return. know ‘why’ you do what you do, the question is ‘how’ are you going to do it? The Brand Mission captures your brand’s unique value prop- osition that customers can obtain through all the products under your brand. As shown by the example of Warby Parker above, you can draft a Brand Mission by the following formula: [Our brand] provides [what?] for [whom?] who seek [why?] and who prefer our products because [how?]. Shang Xia provides fine apparel, leather goods, jewellery, tableware, and furniture for demanding clients who seek a combination of superior quality, contemporary design, and Chinese tradition and who prefer their products because they are hand-crafted by the very best artisans. BRAND VISION: Think about what you envision your brand will be like in, for instance, 30 years. The Brand Vision reflects the ultimate long-term goals for your company – something that will require significant change and progress to attain. An example is the statement by Coach. The long- term vision of Mrs. Jiang for her brand is to develop Shang Xia into the Hermès of China. BRAND AMBITION: Think about the next important milestones for your business. To know how successful you are and to really motivate your people, you need to break your vision down into manageable chunks. Just like the example by Shang Xia above, Brand ambitions include clear goals and key performance indicators for the next months and years. 80 THE EUROPEAN BUSINESS REVIEW MAY - JUNE 2021

FIGURE Brand Name: Version: Brand Vision Canvas III. Brand Vision What you enivison your brand will be like in 30 years II.4 Key Principle II. Brand Mission II.1 Market Niche The Reason II.5 Brand Promise What? to Believe The benefits of your products II.2 Customer How? for your customers Niche II.3 Key Benefit Vision Frame of Reference I.2 Brand I. Brand Purpose I.1 Brand Challenge Subculture The higher reason Because of for the existence For whom. what? of your brand beyond making money Why? I.3 Brand Adversary For whom? Against whom? IV. Brand Ambition 3 Months 6 Months 1 Year 2 Years 5 Years The next important short- and middle-term milestones for your business Source: Heine, K. (2020) Build a Brand to Change your World: A Step-by-Step How-to Guide for Building High-end Cultural & Creative Brands, 2nd ed., Upmarkit: Tallinn, https://upmarkit.com/how-to-build-a-brand-to-change-your-world Let’s now look into the second point with the world. Consumers are not spending their a few examples. Fashion label ‘Life is Good’ money for Dove products because they do doesn’t care much about clothing, but about some charity. Their cream makes customers their message – to spread optimism. The Brand feel more self-confident and beautiful the way Purpose of Dove is women empowerment, to they are — and with each cream they buy, they encourage women to have a positive body image. make a little step towards the brand’s higher Dove appears as qualified in this pursuit because purpose of women empowerment. Patagonia it fits perfectly with their personal care prod- offers high-quality jackets made from recycled ucts. Patagonia stands up for the conservation materials. While consumers purchase them of resources, which is also closely linked to their because they like the quality and longevity, products – with their efforts in product dura- they help the brand at the same time to pursue bility, repair services, and recycling. its purpose, which is to reduce the human impact on the environment. What do successful brands such as ‘Life is Good’, Dove, and Patagonia have in common? Mrs. Jiang and Mr. Thomas explained that their They are all driven by a powerful Brand Purpose Brand Mission and unique selling proposition — which relies on a strong Mission. In fact, rely on three principles including their strong their products appear to be an extension and style & creativity, the product quality & excel- expression of their Brand Purpose. ‘Life is Good’ lence of craftsmanship, and the Chinese touch, t-shirts are just a means to achieve a higher which means that each product embodies a purpose: To spread the power of optimism to cultural story from Chinese history or traditions. www.europeanbusinessreview.com 81

LUXURY STRATEGY Their customers enjoy buying some appealing Shang Xia and the other examples teach us products for themselves, while at the same time, some critical success factors, which are summa- they support Shang Xia’s purpose to revive centu- rized in the following major lessons learned: ries-old Chinese cultural traditions. These examples show that to drive business success, a purpose-driven brand (that aims to The Brand Purpose must be specific, yet save nature, etc.) must be linked to a compelling simple: A clear, simple and consistent purpose Brand Mission (a unique selling proposition) strengthens the brand in consumers’ minds. because, first of all, people want to know what Therefore, everyone inside the company must be the product can do for them. Based on that, able to articulate clearly why the brand is doing 1they are ready to learn more about the brand’s what it’s doing. The Brand Purpose must also be very specific – unlike the vague purpose of higher purpose, which can satisfy higher-order consumer needs and greatly improve brand-con- outdoor apparel maker Lost Arrow Corporation: sumer ties and business success. “To be a role model and a tool for social change.” Especially in the luxury segment, companies Too many brands could say the same. try to provide consumers with a good excuse for indulgence. Some consumers feel they shouldn’t make luxury purchases due to changing social The Brand Purpose should be closely linked to your norms especially in times of economic reces- products: When developing a brand’s purpose, it sion. The best justification for indulgence is can be tempting to pick a popular issue. Multiple 2a sense that they’re actually contributing to brands have received backlash for lecturing their customers on unrelated topics, such as Audi over something larger than themselves, which can create a deeper sense of partnership between equal pay. But if brand managers are not honest the consumers and the brand. The more money about what inspires them or jump on a social people spend for some desirable benefits, the cause that is unrelated to their brand DNA, their more they also (can say to themselves and others brand will appear inauthentic and confusing. to) support some higher purpose. A luxury brands shopping street in Canton Road, Hong Kong, China. 82 THE EUROPEAN BUSINESS REVIEW MAY - JUNE 2021

In the luxury segment, companies try to provide consumers with a good excuse for indulgence. Some consumers feel they shouldn’t make luxury purchases due to changing social norms especially in times of economic recession. The Brand Purpose must be credible: Everything Think big, start small: A Brand you say and everything you do has to be in line Vision should stretch the imag- with your Brand Purpose. Therefore, it is recom- ination and challenge yourself and your team to grow. But with 3 mended to turn the purpose into a benchmark your Brand Ambitions, start question, to encourage everyone in the company small. Instead of pushing brand to continually question what they are doing: communications too early, “What are you doing today to [Think different] or better fine-tune your offer- [Spread optimism]?” 6 ings and revise your branding A strong brand needs a common enemy: strategy by trial and error Many entrepreneurs try to please all possible until you can seduce a small consumers all the time – but in the end, they number of core clients. For stand for nothing. Strong brands are like good instance, Uber tested and fine- books, songs, and art – they have their own point tuned its business model in San Francisco, then expanded 4 of view. As Stella McCartney started to fight for rapidly. Accordingly, you can animal rights in fashion, she met with tough focus on a single city, area, or resistance. According to communication specialist customer sub-segment at first. Kasi Bruno (2017), “The best brand stories repel more people than they attract. Simultaneously A Vision must always be alive: magnetic and uncomfortable, strong brand narra- Based on his experience as tives act as a rallying cry for some, but as a snub the president of Hermès, Mr. for most.” Thomas has learned a key lesson: Many strategic problems Never compromise on your Brand Vision: At the arise from a lack of vision – or beginning when Shang Xia was launched, out of 7 the fact that the vision became 5 100 products, only about ten met their extreme obsolete. Therefore, a vision quality standards and so they had to destroy should never make a sudden the rest. This was a difficult decision to make 180-degree turn but, on the (which would probably be heavily criticized today other hand, must always be because of environmental concern). adjusted gradually. www.europeanbusinessreview.com 83

LUXURY STRATEGY This article highlights a unique collaboration between Even though a European luxury group and a Chinese designer. The the high-end support of the established Hermès Group enabled the new segment is the brand to benefit from strong branding skills and exper- most difficult one tise, and a long-term vision, from its inception. In the for China to gain near future, Chinese brands are likely to gain momentum, legitimacy, and the inventing new ways to create brand value.. Even though concept of purpose the high-end segment is the most difficult one for China to is not common yet, gain legitimacy, and the concept of purpose is not common forward looking yet, forward looking entrepreneurs and demanding entrepreneurs consumers may take the world by surprise. and demanding consumers may REFERENCES take the world by • Accenture (2018) From Me to We: The Rise of the Purpose-led surprise. Brand, https://www.accenture.com/_acnmedia/thought-lead- ership-assets/pdf/accenture-competitiveagility-gcpr-pov.pdf (accessed on 6 January 2021). • Bruno, K. cited by Klaas, K. (2017) Telling Stories: How to Write a Vision Statement for Your Company; https://gusto.com/blog/start-business/ how-to-write-a-vision-statement-for-your-company. • Bonchek, M. & France, C. (2018) How Marketers Can Connect Profit and Purpose. Harvard Business Review, June 18, https:// hbr.org/2018/06/how-marketers-can-connect-profit-and-pur- pose (accessed on 6 January 2021). • Heine, K. (2020) Build a Brand to Change your World: A Step-by-Step How-to Guide to Build a High-end Brand with a Higher Purpose, Upmarkit: Tallinn, https://upmarkit.com/ how-to-build-a-brand-to-change-your-world. • Sinek, S. (2009) Start with Why: How great Leaders inspire everyone to take Action, Penguin: New York. ABOUT THE AUTHORS Klaus Heine works as marketing Sabine Chrétien-Ichikawa is a French professor at Emlyon Business School researcher based in Shanghai since in Shanghai and Paris and helps 2012. After working in the fashion and entrepreneurs to build high-end luxury industries in several countries, brands with a higher purpose. she now runs the MSc in EU-Asia He runs the “High-end Brand Luxury Marketing program at ESSCA Management” Master program School of Management in Shanghai. and has worked and cooperated Her expertise includes luxury / with Hermès, Dior, Louis Vuitton, high-end brand management, retail Montblanc and many other brands. and sustainability. 84 THE EUROPEAN BUSINESS REVIEW MAY - JUNE 2021



SALES MANAGEMENT In a study before the pandemic, PricewaterhouseCoopers1 found that companies had made little progress in the previous decade in speeding up their cash-conversion cycle—as the cash crunch generated by the coronavirus painfully demonstrated: in 2020, a JPMorgan Chase Institute report found that 50% of small businesses had fewer than 15 cash buffer days and only 40% had more than 3 weeks.2 GETTING UP TO SPEED IN YOUR SALES EFFORTS By Frank Cespedes and Zoran Latinovic In most firms, the biggest driver of cash-out in opportunity selection are felt throughout, so and cash-in is the sales cycle. Accounts pay- emphasize quality over quantity. able accrue during selling, and accounts re- ceivables are largely determined by what’s sold, Prospects differ in their product and service how fast, and at what price. But the sales cycle preferences and their response to marketing is the result of other activities: opportunity se- actions. Some require more sales calls; some lection, deal size, and win rate. Let’s look at each buy in operations-efficient volumes, and component and the managerial requirements: others with just-in-time or custom orders that affect setup time, delivery and other elements OPPORTUNITY SELECTION: of cost-to-serve. These factors affect your QUALITY OVER QUANTITY. return on capital because many capital costs are embedded in cost-to-serve differences. When asked to double revenue, most managers seek twice the leads. But effective sales models To improve sales velocity, have and commu- operate as a system. Improvements or failures nicate criteria the sales team can use in qualifying prospects. That’s the role of lead- scoring, and most CRM software will classify leads based on sales readiness. However, CRM systems typically weight revenue expectations 86 THE EUROPEAN BUSINESS REVIEW MAY - JUNE 2021

by pipeline stage on the assumption that the odds automation system. This enables CloudTalk to reach of closing increase in successive stages—a process out with personalized messages to prospects that often at-odds with current buying journeys where have expressed interest in its service but have not prospects simultaneously use taken any action. It also allows online and offline channels in their CloudTalk to deploy selling efforts search, evaluation, and purchase In most firms, the biggest on warmer prospects, decreasing decisions. Also, most sales incen- driver of cash-out and the cost of false positives and tives are based on top-line volume increasing sales velocity. The independent of margin, profit, or cash-in is the sales results to date have been 20 more cost-to-serve. In a pay plan like cycle. Accounts payable trial sign-ups monthly—a big gain that, there are no “bad” opportuni- accrue during selling, in an early-stage venture.3 ties, and the sales force will spend much time on false positives and and accounts receivables AVERAGE DEAL SIZE: sell to customers whose conflicting are largely determined PRODUCT, PRICE, AND demands on product and service by what’s sold, how fast, groups fragment resource alloca- tions across the firm. and at what price. DEPLOYMENT. CloudTalk.io provides call- center software mostly for SMBs This element of sales is tied to in various industries. It manages opportunity opportunity selection, but is also affected by pricing, selection with the help of a tool from Leadfeeder, product features, and deployment. Here are examples: which tracks webpage content that a prospect Toast focused on the need to split a group-dining has searched for and automatically updates check. Its app let diners see what each had ordered, that information in CloudTalk’s marketing and pay with credit cards without waiting for the www.europeanbusinessreview.com 87

SALES MANAGEMENT server. But average deal size was low because $1 trillion in assets under management (AUM), restaurants relied on legacy cash-register relies on Financial Advisors (FAs) to acquire and systems and desired product features varied. grow AUM with clients. A key to Jones’ success Pizza restaurants wanted the ability to specify has been its management of account assign- different toppings; others wanted diners’ ments and service levels. Its Goodknight program email addresses as part of loyalty involves an established FA turning programs; casual dining places over to a new FA the clients that the veteran FA has not contacted for a wanted to take orders when lines For all businesses, are long and send a text to patrons continuous specified period of time. This frees when their table was ready. Toast improvement in veteran FAs to spend more time built an order-taking system using sales velocity will with and increase “share of wallet” cloud technology. This affected at established clients, and allows pricing (a change to subscription be key after the new FAs to work with existing but pricing) and the value proposi- pandemic, because under-served Jones clients. The tion. The pitch that resonated best it’s core to success rate of a new FA without before the pandemic was helping the Goodknight program was 36%, restaurants to turn tables faster financial oversight while for those in the program it’s when they’re busy, generate as well as sales 80%. Jones therefore conducts thou- online ordering when less busy, management. sands of “Goodknights” annually. and allowing managers to access Conversely, as it grew, Jones also inventory data from a laptop or found that smaller accounts take up phone, rather than arriving early inordinate amounts of FA time and or staying late at the restaurant to do that, and effort, and it assigned inactive accounts with spend more time with their families. less than $50,000 in AUM to home-office based Sales deployment can also increase deal size. service centers, freeing up time for FAs to focus Edward Jones, a brokerage firm with more than on clients with higher deal-size opportunities.4 88 THE EUROPEAN BUSINESS REVIEW MAY - JUNE 2021

FROM CORRECT ATTRIBUTION TO misallocations and hurts sales velocity. ENHANCED WIN RATES. Mitel, a Canadian telecom firm, must deal Average win rate per rep is less than 50%,5 with a complex buyer journey and long selling and your business bears the deadweight loss cycle where attribution is not easy. Via Bizible, of the time and expense incurred on those an Adobe product, Mitel improved visibility not closed. Win rates often have root causes about which marketing campaigns generated in other activities in a sales model, especially which kinds of leads and outcomes, allowing Marketing–Sales alignment and friction in the Mitel to make smarter use of its marketing closing process itself. budget, improve alignment with sales, and double pipeline revenue within a year.7 In many firms, Marketing is responsible for generating leads and collateral that are Finally, a standard complaint of many then handed to Sales. But an estimated 70% reps is the time and effort they must spend disappear into the “sales lead black hole.”6 to finalize contracts. Here, the pandemic was Meanwhile, new tools for tracking which leads a disseminator of good practice. Electronic and collateral are used by sales, and how, signatures and agreements available from enable responsive marketers to improve inter- DocuSign and others can shorten sales cycles actions with sales and accelerate sales velocity. by a week or more,8 while eliminating printing, In many firms, for example, credit for a mailing and other expenses of paper-based purchase simply goes to “the last click”—which- contracts. ever email, online ad, or web page triggered the sale. In reality, purchases are usually motivated For many businesses, improving sales velocity by multiple interactions throughout the buyer has been crucial for surviving the pandemic. For journey. Incorrect attribution leads to resource all businesses, continuous improvement in sales velocity will be key after the pandemic, because it’s core to financial oversight as well as sales management. Start now. REFERENCES ABOUT THE AUTHORS 1. Nina Trentmann and Ezequiel Minaya, “CFOs Frank Cespedes teaches at Zoran Latinovic teaches Personal Face a Tough Task: Freeing Cash Trapped Harvard Business School. He Selling and Sales Management at on Their Balance Sheets,” The Wall Street has written for publications Vienna University of Economics Journal (November 29, 2018): B1. including Harvard Business and Business (WU; Spring- 2. JPMorgan Chase & Co., “Small Business Cash Review, Organization Science, Summer 2021) and is a Visiting Liquidity in 25 Metro Areas” (April 2020). and The Wall Street Journal, Postdoctoral Scientist at MIT 3. https://www.leadfeeder.com/customers/ and is the author of six books Sloan School of Management, cloudtalk/ including, most recently, Sales Management Science. He has 4. David Collis and Ashley Hartman, “Edward Management That Works: How written for publications including Jones: Implementing the Solutions to Sell in a World That Never MIT Sloan Management Review, Approach,” Harvard Business School Case No. Stops Changing (Harvard Fast Company, MarketWatch, 9-718-478 (Boston: Harvard Business School, Business Review Press, 2021). Psychology Today, and The Hill. 2018). 5. https://www.cien.ai/low-win-rate/ 6. Gaurav Sabnis, Sharmila C. Chatterjee, Rajdeep Grewal, and Gary L. Lilien, “The Sales Lead Black Hole: On Sales Reps’ Follow-Up of Marketing Leads,” Journal of Marketing, 77 (January 2013): 52-67. 7. https://www.marketo.com/customers/mitel 8. https://www.docusign.com/blog/ accelerating-remote-sales-during-the-cov- id-19-outbreak www.europeanbusinessreview.com 89

STRATEGY It has been five years since I published the first article on Decoupling theory here in the European Business Review, explaining how, regardless of industry, startups are disrupting markets in a very similar fashion. Since then, I have published more than two dozen articles on the theory, written a best-selling book entitled Unlocking the Customer Value Chain, and advised various companies worldwide including Samsung, American Eagle, BMW, Microsoft, Hyundai, Red Cross, among many others through my firm Decoupling.co. In the interim, I have learned a few important lessons on the power of customer-centric innovation, mapping the customer value chain, and applying offensive decoupling strategies as well as defensive response strategies. In this follow-up article, I describe how companies manage to grow fast after using decoupling as a disruptive entry strategy. The goal is to share best practices and a process for executives and managers interested in implementing a customer value-centric growth strategy. DESIGNING A CUSTOMER VALUE-CENTRIC GROWTH STRATEGY By Thales Teixeira All around the world, large established competitive advantage. The late CK Prahalad companies are worried about being dis- later introduced the concept of core competen- rupted by startups and are in need of cies in the mid-1990s and complemented Porter’s finding new high potential markets to enter and approach. Bain consultant, Chris Zook, then grow. Historically, the standard way of thinking refined the idea of identifying market adjacen- about which markets large companies should cies in the early 2000s. Porter, Prahalad and Zook enter revolved around the idea of “adjacencies” took a firm-centric approach to the question: and “firm-side synergies.” Here is a short expla- Which markets to enter and grow? While these nation on this standard approach to growth in approaches have many merits, the downside new markets. is twofold. First, it still leaves open the possi- bility of entry into many—potentially dozens or My former colleague, Michael Porter, more—adjacent markets. With so many potential suggested the value chain in 1985 as a tool to markets for expansion that build on a company’s assess where to grow by identifying a firm’s 90 THE EUROPEAN BUSINESS REVIEW MAY - JUNE 2021

The goal is to share best practices and a process for executives and managers interested in implementing a customer value-centric growth strategy. existing skillsets, it’s difficult to decide which short period of time. They do so by creating one to pursue. Second, and perhaps most impor- products and services that are valuable to tantly, Porter, Prahalad and Zook focused largely customers and enable customers to be acquired on what would be best for the company versus more easily. One way to do this is to offer custom- what would be best for their customers. er-side synergies: new products that, when your customer uses in conjunction with the original While a firm-centric thinking has worked product, make it cheaper, easier or faster for wonderfully in the past, there are new signs them to fulfil their needs as compared to using pointing at its limited ability to drive fast growth two (or more) products from different compa- going forward. The reason? My latest research nies to fulfil the same needs. shows that, due to their changing behaviors, customers disrupt markets. By disruption, I mean In planning for disruptive growth, firms need when startups find ways to steal large amounts to look at all relevant aspects from the point-of- of market share from incumbents in a relatively view of their current and potential customers. www.europeanbusinessreview.com 91

STRATEGY They should start by looking for new opportu- This customer value-centric thinking was not nities using the customer value chain, or CVC, pioneered by large and established companies. which is the sequence of activities that customers On the contrary, it was adopted first, not by the execute in order to acquire and consume goods incumbents, but by their challengers, the tech and services. All CVC activities can be uniquely startups. By 2021, Alibaba had become one of classified into value-creating, value-eroding and the world’s largest companies by market capital- value-capturing activities. Figure 1 depicts this ization, with more than ten multibillion-dollar in the case of a retail purchase. businesses in wide ranging sectors such as FIGURE 1 retailing, ecommerce, online cloud services, mobile phones, logistics, payments, content, and more. Between 2011 and 2016, the compa- ny’s revenues grew at an average compound REALIZE NEED COMPARE PAY FOR USE PRODUCT annual rate of 87 percent. Profits jumped by FOR PRODUCT OPTIONS PURCHASE 94 percent and cash flow by 120 percent. This rapid growth was quite unique for such a large Creates value Erodes value Charges for value Creates value and established digital company. Yet, Alibaba continues to grow remarkably fast more than 20 years after its founding. How? The company was founded in 1999 as an online In recent years, the focus on innovation and business-to-business marketplace. In 2003, it Fifrimnd-ing groCwutshtoopmpeorr-tunities has switched from moved into consumer-to-consumer ecommerce, centhtericfirm’s pecresnptercitcive (what is best for us?) to and in 2004, built both Aliwangwang, a text thinthkeincgustomethr’sinpkeirnsgpective (what is best for our message service, and Alipay, an online payments customers?). As shown in Tool to ValueFCighuairne 2, Ctuhsitsomsewr iVtacluhe to a In recent years, the focus on innovation assess anPdPUARYCfHiFOAnSRdE ing gUSrEoPRwODtUChT opportunities has value + +(e.g., cPuorstteor)mer-ceCnhatrinic(CVmC) indset switched from the firms perspective (what Type of is best for us?) to the customer’s perspec- synergy REhAaLsIZEprNoEfEoDund impCOliMcaPtAiRoEns tCihvareges(fwor vhaluaet isCrebateessvatlufe or our customers?). pursued FiFrmOf-RosriPdRewODhUaCtT CsutsrtaotmeegryO-sPidTfeIrOaNmS e- synewrgoiersks are usseydn,erwgiehsat types Where to grow next? of synergies should be mAdCajrlarkeeceavettnesetrsavgaelude aAndajdacctieevnEivttrieeoCnsdVeCswvhailuceh markets to enter. FIGURE 2 Firm - Customer- service. The next year, it went on to acquire Yahoo centric centric China in an effort to provide consumers with Differences thinking content and web services. In 2008, it launched in locus of thinking TMall, a business-to-consumer online retailer. decision-making Other new business launches proceeded in turn: a search engine company named eTao (2010), a Customer Adjacency Tool tIommediate Value CYhoauirncore CustoImmmeerdViaatelue Adjacesntcayrt-up called Aliyun that created mobile oper- Value assessAdjacency (e.g., Porbtuesrin)ess ChaAidnja(cCeVncCy) ating systems (2011), and a logistics consortium Chain value named Cainiao (2013). In 2015, Alibaba took a Growth from + + majority stake in smartphone maker Meizu. adjacent stages Type of synergbyuNsienwess Fsiyrnme-rsgYiibdeouseusrinceosrse CustomNeerw-side Note how many of these companies oper- pursued synbeursginieesss ated in vastly different industries. The synergies between retailing, cloud computing, payments, Strengthening Where toNew AdjaceYnotur core AdjacenNtewCVC and electronics manufacturing are not very adjacent links grow nbeuxsitn?ess marketbsusiness actbiuvsitinieesss New Subsequent New Your Your core Your business adjacent business business business business growth 92 THE EUROPEAN BUSINESS REVIEW MAY - JUNE 2021

Customer Adjacency Immediate Your core Immediate Adjacency Value Adjacency business Adjacency Chain New New business Alibaba Group Growth from business Your core New hxdbzxy / Shutterstock.com sign statue in adjacent stages business business Shenzhen, China New Your core business business New Strengthening New Your core business adjacent links business Your business Subsequent business Your adjacent business growth FIGURE 3 Meizu Aliyun eTao Alibaba Aliwangwang Alipay Cainiao CHOOSE CHOOSE SEARCH SHOP B2B (Ant Financial) RECEIVE How Alibaba DEVICE BROWSER ONLINE Grew to Cover the PAY FOR ITEM Entire CV 2015 /OS 2010 ITEM 2013 2011 SHOP C2C TALK TO SELLER SHOP B2C Taobao Tmall 2003-2008 2004 2004 clear. Businesses in these industries require and so on. At some point, they identified a need different resources and employees with widely to make a purchase and performed searches on varying skillsets in order to compete. So why search engines or on ecommerce websites. From didn’t the company stick with its original busi- there, consumers arrived at the most appro- ness-to-business online marketplace and focus priate ecommerce sites. In China, business growth where it had a coACmTpIVeItTiYtiv1 e advanAtCaTgIeV,IToYr2 custoAmCeTrIVsITwYe3nt to AAlCibTaIVbIaT,Y 4while consumers move into adjacent industries as prior academics went to Taobao or Tmall. To negotiate prices and consultants espoused? or terms (a common practice in China), buyers RAeliqbuairbead’sskillsexpansion strategy focused communicated with sellers usually by chat apps. squarely on customer-side synergies around Consumers then had to pay for their purchase CVC adjacencies. In 2016, around 50 percent of and wait for a logistics operator to deliver it. onliAnveailsahbolepspkiinllgs in China took place via mobile This represented the extent of the typical online phones, with the rest occurring on laptops, desk- shopper’s CVC. tops, and tablets. To shop online, consumers first Analyzing this CVC in Figure 3, we spot a clear ihnatdenHsrkotonoinwlel-sdtat,evoaaconiilbdadtbeailiemwn hpilcichitdlyeB,vuwiiclohder,iBcBtuhooyr?rouopswee, rtaotiancBgcuesiloydsr,ssBBtteuohymr?reow, patteBrunild. ,ABloirbroawb,a begaBnuilgdr, oBowrrionwg, by focusing on a single sotraBgueyo? f the shopporeBru’syC? VC with its Alibaba and browser combination to use as well. After website. It then moved outwards to capture other that, most consumers opened browsers and customers’ activities. Instead of using the tradi- pointed at websites, accessing their communica- tional industry adjacencies approach (payment, tion services, email, social networks, chat apps, mobile phones, and logistics are not adjacent www.europeanbusinessreview.com 93

STRATEGY In the Google industries), the company opted to move into of the CVC for which your company does not Canada Kitchener- adjacent CVC activities. By 2018, the compa- have offerings. There are generally only two, and Waterloo office, ny’s businesses were serving most of the CVC they are the first natural candidates to explore. Ontario, Canada activities. Alibaba didn’t immediately pursue Other proximate, non-immediate, adjacen- firm-side synergies. Its real win came from cies are also potential candidates. Third, upon achieving customer-side synergies. It opted to entering these adjacencies with new offerings, deliver benefits to its current customers at each make sure to strengthen the links in the CVC by growth opportunity. That, in turn, convinced creating customer side-synergies. its customers to couple their activities in a “one stop shop” manner. Eliminating a major For instance, Google started with a search obstacle—finding different customers for its tool. When Gmail came out in 2004, it brought new businesses—allowed Alibaba to grow faster. search and email integration together—just one click away. Google Maps, launched in 2005, IMPLEMENTING GROWTH BY allowed users to click on an address in Gmail and COUPLING see its location pop up on a map. A few years later, in 2011, Google Flights allowed users to purchase Focusing on customer benefits and growing a ticket, also one click away, with no need to sign around their (not your) value chain, a process in or copy and paste information across websites. I termed ‘coupling,’ requires going through the Google came to fill all the major adjacencies in four-step process depicted in Figure 4. First, a user’s work-related travel CVC by reducing the map out the stages in the customer value chain. effort and time previously experienced by having Second, identify the immediate adjacent stages to work with multiple websites. Fourth and lastly, after strengthening the links between stages of the CVC, it is time to grow into stages farther apart from the original core activity. JHVEPhoto / Shutterstock.com 94 THE EUROPEAN BUSINESS REVIEW MAY - JUNE 2021

Customer Adjacency Immediate Your core Immediate Adjacency Value Adjacency business Adjacency New Chain New business FIGURE 4 Growth from business Your core New adjacent stages business business How to Grow New Your core from Adjacent business business New CVC stages Your core business Your business Strengthening New business Your adjacent links business business Subsequent adjacent growth Coupling activities worked for Alibaba, an inno- (a CVC adjacent activity). The app quickly took vate tech company. But can it also work for off, and Ping An started adding other func- large companies in traditional industries? In tionalities to it such as the ability to schedule a short, yes. Ping An is a Chinese insurance and Adliboacbtaor’s appointment and eveAnliptaaylk to the doctor financiaMlesizeurvices conAglilyoumn erate. As eoTanoe of the SHrOePmB2oBtely. FAalsiwt-afnogrwwanagrd to(A2nt0F2i1n,anGcioalo) d DocCtaoinriaios largest insurance cdoiBmfCRfHeOp/OrOWaeOSSnnSEEitResbuinsintheesSOsENweALRsoIN,CrEHladm, iotnigs the most widely used app of its kind in China, in morCDeHEOVtOIhCSEaEn 40 SHsOePrCv2iCng 70 miTSlAlEiLLoKLnETROmonthly PaAcITYtEiFvMOeRusers. InREAITCpEEMrIViEl them health, life and prop- SHOP B2C 2018, it was spun out of erty insurance, real estate, Ping An, IPOed and raised investment banking and Coupling acTatobiavo itTimealsl $1.1 billion dollars at a other financial services. worked for Alibaba, an valuation of $5 billion. So, in 20210415, it was not e20a1s1y Purs2u0i0n4g a CVC a20d1j3a- for Ping An, a company inno2v01a0 te tec20h03-c20o08mpan2y00.4 cency growth strategy with revenues of $135 But can it also work served such a large and billion, to find other high for large companies in established conglomerate growth potential markets traditional industries? well, a hard feat to accom- to enter. In internal discus- In short, yes. plish in the age where sions, entering traditional only tech companies and market adjacencies was startups can create such one obvious approach. high growth. When I It could attempt to entAeCrTIaVdITjaYc1ent finaAnCcTiIaVlITYv2isited PiAnCgTAIVnIT’sYh3eadquarAteCrTsIViInTYA4pril of 2018, services such as retail banking. Or it could enter the company was in the last stage of adjacent an adjacent geography such as Japan or Korea. growth: mapping out all the non-immediate AlteRrneqautiivreedly,skitilclsould enter an adjacent segment adjacent CVC activities that they could poten- of customers such as high-end insurance. tially enter with the goal of creating new $1 Instead, it chose to focus on what was best for its billion customer value-centric businesses morAevtahilaanbl3e0s0kmillsillion middle-class customers. Pin An executives realized that many Chinese did not have health insurance. And those that ddoidc,tnHsokohorin,wall-dsnatvoopatoailbkyatbmnaloieenwnitnganixfieBatunyildodra, BwBftuoehyrre?ronwgo,tihnegy tBwouoiloutdhr,ldBeBuoyr?roTCwHO, EUPCLBHuIiNAlodr,LGBBuLoyrE?roNw,GE OBuFildG, BRorOrowW, TH BY or Buy? get reimbursed from their health insurance. Therefore, Ping An decided to create an app Coupling does not come without its own chal- that helped people pay for their healthcare and lenges. The main hurdle of pursuing growth by get reimbursed from their insurance provider expanding on the customer value chain is that www.europeanbusinessreview.com 95

STRATEGY Customer Adjacency Immediate Your core Immediate Adjacency Value Adjacency business Adjacency Chain oftentGimroewsththfriosmmay lead your companyNeinwto TodaYyo,ucrucsotroemers haveNeowptions. Consequently, vastlyaddjiafcfeernetnsttabguesinesses that requirebuvsainsetlsys the babulasinncesesof powerbhusainsessws itched from sellers different people, skills and capabilities than the to buyers. The implication for executives of ones it possesses. In the case of Alibaba, it went established companies, while far from simple from eaSdctrojaemcnegmnthteerlnicnienksgto financial services, tobsueNsaienrwecshs to imYbpouluserinmceosersent, is quibteuNssieniwemssple to state: compa- tools, to logistics, to hardware and to software. nies that want to grow should put the needs There are very little of the customer cleovmermagaSgordueonjbawscteehiqannsutseenttsthestoe Your Your core Yourbefore theiNrew own. business business busineTshs at entabiulssinesisnno- The main hurdle of pursuingNew business businesses. When I growth by expanding on vating on behalf of present coupling as a the customer value chain growth strategy to my is that oftentimes this may customers, deciding clients, I warn them which markets to enter primarily of this hurdle and ask lead your company into based on how much them to fill out the table in Figure 5 with vastly different bAulibasbainesses customer value can be the skills Mtehizeuy think Atliyhunat requeTiaroe vastSHlOyP Bd2BifferAeliwnantgwang created, and building will be required to BCRHOpt/OOWhOSeSSEaEoRnplteh,eSsOENkAoLRINnCilEHelss and capabilities in(AntAFliinpcaanyucsiatlo) mer-sCidaineiao succeed iCnHaOOnSeEw adja- TALK TO synergies for co-con- cent activDitEyV,ICwEhether SELLER it possesses.SHOP C2C sumPpAYtiFoOnRof produREcCtsEIVE and sITeErMvices offerIeTdEM they have those skills, SHOP B2C by the company. In and, if not, how they short, innovation plan on obtaining them. Will they build them Taaonbado grTomwatllh has to be customer value-centric. internally, borrow them from others via new part- I hope this article provides a compelling nerships o2r015buy them th2r0o11ugh acquisi2t0io10ns or 2r0a0t3i-o2n00a8le for exe20c0u4tives to mo2v00e4away from20a13 recruitment? What they cannot do is disregard firm-first to a customer-first mindset, as well the need to bridge those skill gaps. (The same can as showcase a practical step-by-step approach be done for technology and other resources). for how they can start this journey. FIGURE 5 ACTIVITY 1 ACTIVITY 2 ACTIVITY 3 ACTIVITY 4 Tool to Define How to Bridge the Skills Gap for Coupling Required skills Available skills Build, Borrow, Build, Borrow, Build, Borrow, Build, Borrow, or Buy? or Buy? or Buy? or Buy? How to obtain non-available skills 96 THE EUROPEAN BUSINESS REVIEW MAY - JUNE 2021

CUSTOMER VALUE-CENTRIC PRINCIPALS TO KEEP IN MIND 1 2 3 Find paths that go in favor Abandon your business Take a more of (versus against) your model if it no longer expansive view of your customers’ evolving behavior. serves the fast-growing opportunities. portion of the market. When Amazon decided to move from Many established companies ‘pigeon- the books category to electronics, it Executives of established businesses hole’ themselves too narrowly in a faced challenges by not having any often find it difficult to re-think their specific industry. As a consequence, physical stores (at the time). Therefore, business models. Can incumbents their area for exploring new growth it developed apps that facilitated viably venture outside their standard is limited, not by their potential or people to go to physical stores and take offerings? For instance, can an auto- their capabilities, but by arbitrary pictures, scan bar codes, or search for maker really afford not to make cars industry definitions. The fastest the price of electronics on Amazon for consumers to buy (the standard way to grow is to offer something that they wanted to buy. As a conse- model in the auto industry)? Actually, that your current customers, those quence, people started showrooming yes. Lynk & Co., a joint venture most loyal to you, would gladly pay significantly more in Best Buy stores between Sweden’s Volvo and China’s for. By virtue of them acquiring this than before. Initially, its executives Geely, makes cars specifically for new offering, the original product wanted to prohibit this detrimental subscription and ride sharing. It or service becomes more valuable behavior to their business. They charges a monthly subscription to a to them. In other words, new prod- changed the bar codes of TVs and even car that you can buy online and return ucts should have synergies for the considered jamming Wi-Fi signals when you desire. According to their customer to adopt as the Ping An inside stores. This all went against website, “you do not buy, own, main- case highlights. consumers desires to compare prices tain, insure, register or take care of online. Eventually, executives real- anything except for driving.” Why ABOUT THE AUTHOR ized that if their customers wanted to such a drastic departure from the car showroom, then they should let them. ownership model? Volvo-Geely execu- Thales Teixeira Best Buy then went after charging tives realized that many of the young is the co-founder their suppliers for the value they were consumers at the age of buying their of Decoupling.co, creating by letting people touch and first car questioned the need to own a a digital disruption feel the electronics in the store. The car and all the hassle and costs asso- and transformation retailer started charging slotting fees ciated with the decision. So, the auto advisory firm. Previously he was in electronics retailing, a practice maker decided to evolve its business a professor at Harvard Business common only in groceries stores at the model to cater to this new generation School for ten years. He is a judge time. This solution did not preclude of car drivers (not owners). at CNBC’s Disruptor 50, a contest shoppers from showrooming. of the most disruptive startups in the world. He is the author of BIBLIOGRAPHY Unlocking the Customer Value Chain: How Decoupling Drives Consumer Teixeira, Thales and Peter Jamieson. 2016. “The Decoupling Effect of Digital Disruption (Currency, 2019). Disruptors.” European Business Review (July–August 2016): 17–24. Teixeira, Thales and Greg Piechota. 2019. Unlocking the Customer Value Chain: How decoupling drives consumer disruption. Ed. Currency, NY,NY. (Translated into Portuguese, Chinese and Korean.) www.europeanbusinessreview.com 97

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ORGANISATION PEOPLE ASSESSMENT in the Digital Age By Adrian Furnham How have technical, social, eco- as virtual and augmented reality. Gone nomic and legal forces influ- are the old days of application form, in- enced the business of people terview and references. Exploiting and assessment? New technologies used in scraping the web are in. assessment include smartphone and mo- bile sensing, ambulatory assessment and Those interested in assessment often ecological momentary sampling, text seem transfixed by the how questions mining, sensors and wearables, as well (how we measure people) which do change compared to the what questions (what aspects, features) which do not. There is also the question of whether new technology improves the breadth or depth but more importantly the accuracy of assessment But does a new technology adds more, new, relevant information that we need, rather than simply new ways of collecting and refining data. Also, those who use new technology (AI algorithms) might expect a number of lawsuits and would do well to start preparing their defence based on all the relevant criteria as well as predictive validity. There has always been the call for faster, cheaper, more accurate and more fake-resistant ways of assessing people. And, as one might expect there are always people happy to supposedly “supply that need”. Indeed, there is a lot of money to be made in this area. “Start-up watchers” beware. www.europeanbusinessreview.com 99

ORGANISATION ESSENTIALLY THERE MANY FUNDAMENTAL QUESTIONS What we are trying to assess? The answer How the assessment data is used? appears to be no: selectors are still inter- Is the data fed into a complex and ested in an individual’s ability, personality and 6 sophisticated algorithm or used more 1 motivation as well as their integrity and health. impressionistically by an individual or Whilst new concepts appear every so often small team? Is it stored and used to (e.g agility, resilience) there has not been much help validate instruments and decisions? change in the fundamentally features of what people are trying to assess. The predictors of To what extent is the assess- success have not changed. 7 ment data fed-back to the How can we assess individuals? This is individual and or used by HR to about the development of new meas- develop a training program to urement techniques (mostly web-based, exploit this data? 2 behavioural and physiological) which Where the data is stored: may be superior to those used in the past. But shiny new toys need to be 8 i.e. in the cloud and all proved to be better. that that implies? The cost of those assessments? A Is their “joined-up” data collection and central question is organizational 9 analysis in the different parts of the 3 budgets and it seems some, realizing organization? Or do they jealously guard the cost of selection errors, are willing their own patch? to spend greater amounts in the hope of better assessment and selection. 10 Are there any special problems associated with on-line assess- What we are allowed to assess? For ment, like being clear about who is many, the new world is one of increasing actually taking the assessment? legislation where there are a number of There are also unintended consequences and 4 questions and details it is unadvisable effects of these developments. The use of the and illegal to ask as they may be related internet does expand the applicant pool but to anti-discrimination laws. This issue is also increases the number of under-qualified getting much hotter: watch this space. and out-of-country applicants. It is easy to be flooded with inappropriate applicants and Who does the assessment? This is about there is also the loss of personal touch that whether companies should outsource both assessor and assessee value and respect. There are further concerns about cheating if 5 assessment to experts or do it in house. timed ability tests are used and adverse impact More and more it is B2B cutting out the of those who not have access to the technology expensive middle men: test publishers to take the tests. and consultants. 100 THE EUROPEAN BUSINESS REVIEW MAY - JUNE 2021