The document discusses how 89% of Fortune 500 companies from 1955 are now gone and the need to reinvent HR for the future. It addresses making changes to organizational structure, people, leadership, incentives, and tools to better adapt to changing business needs. A multi-horizon approach is recommended to focus on immediate goals, 2-3 year goals, and even longer term planning to help ensure ongoing relevance and success.
According to Forbes, the average lifespan of a successful S&P 500 Company was 67 years in the 1920’s. Today it is 15 years.
Fortune 500 firms in 1955 vs. 2014; 89% are gone
What's most important - people, ideas or things? People who come up with the new ideas or things!
When it comes to impacting people, HR doesn’t just have one match
But not just any people, you need to have the right:
org structure
people
managed
incentivized
equipped - so let's get into it
Before we even get into the right people and how to pay them, right org structure to support innovation. Need to first understand that not all innovation is the same...and the easiest classification is to look at it as hzon 1, 2 and 3 (image McKinsey Alchemy of Growth, modified by Steve Blank)
horizon 1 can be handled pretty well by existing teams, departments, process improvement teams, etc - these are examples like optimizing the waiting room of the doctor's office or new flavors of doritos
horizon 2 and 3 is where it gets a little trickier and you need to consider individuals dedicated to the work - no more of this 20% time stuff. You also need to consider that it may not always be an internal team, external collaboration with startups and other entities might actually be a less risky endeavor
separate team, offsite and firewalled – get them away from the others...with generalists and access to resources/ability to outsource, etc
The right talents of people for the job - list some example characteristics
Use new or existing assessments - mod https://medium.com/@econicco/hr-getting-the-right-people-to-run-your-innovation-machine-c7a4e3944c26#.nko2lkivq
Not everybody is going to raise their hand for this, and those who do you might now want. some ways to find these people: startup competitions, rebels, biz dev, product managers, etc
while we're talking people, they also need to be managed differently - cannot be the same old manager
Ensure incentives are aligned, short-term profit focused don't work and neither do fat salaries
new ideas for comp: bonuses around milestones, revenue vs profit, ideas considered https://medium.com/@econicco/compensation-incentives-the-places-innovation-goes-to-die-bc656c0863b8#.yvpbw9ngt
equip them with the right tools - learning and development initiatives to teach them rapid prototyping, sales and marketing, ui/ux
look towards online resources for the training (lynda, udemy, greenhouse) or local resources, like us
benefits of all of this - your innovation projects have a higher likelihood of success, can move faster, higher retention of these individuals
all of those who are focusing on employee engagement/branding, millenials love this innovation stuff...great for recruitment
