To Download the Stay ahead - See beyond tough times Presentation.  

[Part 3] A workforce strategy to stay resilient before, during and after a crisis

May 27, 2020
Deepa Chandrasekhar

Staying Resilient before, during and after a crisis

If one takes a peek into those companies that have been down the path of negative economic shocks, and recessions for a 100 years and thrived, the common thread between them simply put is resilience.

This current pandemic has more than ever opened our eyes to the stark reality of our interconnectedness as people, economies, and nations. if we are to stay strong and emerge thriving, whatever shape and form the “new norm” may take, it will need to have resilience at the core. For this to happen resilience needs to be embedded into the constitution of the way a business is run.

The RICAP Framework for Resilience

The RICAP Framework (©iCube Consortium April 2020) is an approach to embedding resilience into the very core of a company’s way of functioning. Central to the understanding of resilient organizations are 5 principles Relationship, Innovation, Collaboration, Agility, and Prudence, that influence the way an organization functions through the 5 pillars of structure, strategy, process, people management and technology. 

The question therefore is how does this fit into a running enterprise?

The RICAP framework Matrix – which is the application of the RICAP Framework- provides direction to decisions on managing a running business to stay resilient, and thriving. 

Ricap Framework Matrix

Applying the RICAP Framework Matrix to re-imagine workforce strategy

Relationship:
  • Do the workflow processes promote collaborative work between the onsite, offsite and contingent workforce?

Innovation:
  • How do you create and leverage centers of excellence (hubs) & shared business services?
  • How can you include freelance experts as extended capacity for your business?
  • If you have excess capacity, how can you benefit from sharing resources with external partners and alliances?

Collaboration:
  • How do you create self-organizing structures, shared resource pools, and a lean expert core?
  • What secure technology is needed to support remote working teams and a collaborative workflow?

Agility:
  • What activities form the business core that needs stability and continuity and what part of your workforce can be flexed?
  • What roles can be powered by a freelance workforce?
  • What is the percentage of fixed and contingent workforce will support business agility?

Prudence: 
  • What people costs can be reduced without affecting morale and productivity?
  • What are the pet projects, structures or products that can be eliminated?
  • What when restructured will help eliminate between 15-20% costs more permanently?

Circumstances have forced increased adoption of digital technology which has helped immensely in continuing business activity remotely. The comfort in addressing the needs of a new norm has got us thinking about the changes we can make to the way we work. While it has forced business leaders to deal with more unsettling thoughts about what is going to change in the workplace and the impact on jobs, it has also built confidence in optimizing digital technology to experiment with new ways of working and creating new workflow processes that are cost effective, agile, and make businesses resilient. The 5 principles of the RICAP Framework is not a one-time-activity, but allow CXOs to continually test for resilience in the way a business is managed. 

Go ahead and Download the RICAP Framework Poster here


About Author

Deepa Chandrasekhar
Deepa Chandrasekhar has been a health care entrepreneur for over 13 years. She is currently a principal consultant at iCube Consortium, working closely with its intelligent Global Marketplace – SolveCubeHR.
Connect with Deepa on LinkedIn

The future of business and people strategy includes Freelancers

March 24, 2020
Deepa Chandrasekhar

Technology brought speed and cost efficiency into work life, changing the focus of our attention.

Economic crises drilled into us the importance of agile and prudent management when the going is good.

But, medical emergencies like COVID-19 underscore the plethora of work engagements we have in the market. The highlight of so many conversations has been people costs versus output. For many companies, the COVID-19 crisis has presented an opportunity to change how we work – a way to manage costs without compromising on effectiveness.

It’s natural that those functions that obviously fall on the side of cost rather than revenue are the first to be targeted for cost management considerations. Minimum Full Time Employee (FTE) headcount has always been the easiest way to control cost. But the question is, is that the most efficient way of doing business. A lower headcount doesn’t mean that key business functions or services won’t suffer for it.

In my experience of running primary and secondary healthcare business, the solution is obvious – a combination of FTE, outsourcing and freelancing. They were the norm. In a business as socially integral as healthcare, FTEs provide necessary continuity, consistency, culture and brand building; but freelancers and outsourcing provided continuity, cost efficiency and convenience. Together they form the people strategy for business efficiency.

So having understood the value of FTEs, the real debate for me has been between outsourcing and engaging freelancers. From a cost perspective, outsourcing is often a matter of convenience rather than real savings. Legal compliance, cost of management time and effort, and convenience considerations generally tipped the balance towards outsourcing for me. Outsourcing offers continuity without the cost and hassle of attrition and re-hiring. On the other hand, it entails employing the outsource provider’s ‘person’ so it doesn’t necessarily provide the same flexibility as a freelancer.

Then, at some point, it becomes a challenge to distinguish between an outsourced contractor and an FTE. Simply because of daily proximity in the workplace, and the sense of belonging achieved, managing human expectations of reward and inclusion becomes difficult. It’s one thing to invite the contractor to a team dinner, it’s quite another to deal with the disappointment of not receiving a special holiday or gift granted to an FTE but not a contractor just by virtue of the ‘company’ being on the payroll not the person. And terminating the services of an outsourced consultant group or technical services company can have an impact similar to the retrenchment of your FTE!

Instead, freelancers are independent contractors – entrepreneurs, beholden only to themselves. Though not without its concerns, freelancing permits flexibility and the freedom to choose what you need done, when, and by whom, without commitments or remunerations outside of that job. The advantage of hiring freelancers for those functions where investment can in fact be scaled down is obvious – domain specialists, accountants, legal, finance and HR specialists are not always roles that require permanent resources.

Larger organizations and the healthcare industry have practiced this for so long that there are now systems in place, and processes to contract, manage, govern, and measure effective freelance performance and delivery.

With more and more members of the workforce, from Boomers to Gen Z, opting to contribute to the economy through freelance consulting and flexi-work, either out of choice or necessity, even small enterprises are able to utilize the available skills and talent freely. To harness this, the employment eco-system has intelligent deep technology platforms whose matchmaking abilities go beyond simply listing, allowing even SMEs to access valuable talent in a structured and trusting way.

COVID-19 has shown that working from home no longer needs to be an afterthought option for employees – in fact it has the potential to be of strategic advantage to business. So much so that with a combination of offsite-onsite working, it’s clear that freelance hiring is here to stay.

And let’s face it, the enterprises that have stood the test of time are those who have demonstrated prudence and adaptability in their business strategy. It’s time for Start Ups and SMEs to emulate them, build new ways of working into their business and people strategy, and benefit from the changing employment landscape.


About Author

Deepa Chandrasekhar

Deepa Chandrasekhar has been a health care entrepreneur for over 13 years. She is currently a principle consultant at iCube Consortium, working closely with its e-marketplace platform SolveCubeHR.
Connect with Deepa on LinkedIn

From 20% to 35% : Why this is important for HR professionals

March 11, 2020
Deepa Chandrasekhar

Statistics show that 30% of all HR experts operate in the freelance economy. And, this percentage will grow to 35% in 5 years. This statistic is important to HR professionals because one of the outcomes of digitalization is a stronger freelance economy.

By reducing cost, effort, and increasing speed, digitalization delivers higher efficiency for routine, repetitive, administrative and even some complex time consuming jobs.Also, technology has a way of taking over to strip tasks down to the core, where then, for an expert to make an impact means having specialized skills. It is fair to say therefore, that digitalization has changed not just how we work, but also what we work on, and, consequently what constitutes desirable skills. The focus of expertise, specialized skills and experience, is on tasks related to core strategy and problem solving at the very human relationship level.

All of HCM may be logically divided into 20 components, many of which require specialized knowledge to be impactful. The fallout of increased digitalization in HR is,that while some expertise and certain skills are necessary to partner a business effectively, specialized knowledge is required in spurts. This challenges not just the need for full time employees (FTE), but also poses the question of whether it is in fact possible to run the HR function with professional HR managers who are jack and master of all trades rolled into one.
Without the justification of enough work for a FTE, it will rest on Freelance Experts (FLE) to fill in the gaps cost effectively. This is then the logical outcome especially fora function like HR given that HR is a direct cost whose perceptible contribution to revenue is not as obvious as may be desired.

More importantly, this statistic is important because the best skills are out there in the open market, available to hire as and when required for only as long as is needed without the obligations that follow full time employment. The freedom of cost agility, with the ability to safely balance the need and want conundrum, is probably the best reason to pay attention to the growing freelance economy.


About Author

Deepa Chandrasekhar

Deepa Chandrasekhar is an entrepreneur and a Principal Consultant with iCube
Consortium Pte. Ltd.
Connect with Deepa on LinkedIn