The business development journey for B2B leaders

By Adrienne McLean MIML

 

Understanding the business building journey is vital for B2B leaders whether they are the business owner or involved in sales and marketing. The more the whole process is understood, the better it is for everyone involved in helping the business grow.

However, there can be quite a perspective gap between the marketing team and the sales team. Primarily because marketing sees the process in a different way to the sales team. When understanding the business development process and their part to play, the truth is that they are closely dependent on each other. In fact, they are interdependent on each other for making the sale happen.

The three most significant, umbrella parts to understand about the process are:

 

1. Setting the stage

Marketing sets the stage for the business. The truth is that the marketing doesn’t get the clients, it is what happens next that books the business. The marketing defines how to introduce products, creates visibility and awareness of the products and importantly keeps the product front of mind for when prospects are ready to buy.

The role of marketing is to build a strong foundation for the identity of the product, the brand and the connection between the brand and the target market. Clearly detailing the problems that the target market will be facing and then detailing the solutions and the benefits that the product brings.

Marketing is an overriding title to cover:

  1. Lead generation
  2. Setting a fundamental understanding of products and services
  3. How the business builds trust and credibility
  4. How the business stays “front of mind”
  5. Define the channels to distribute messages
  6. Define the strategies to raise awareness of the business

 

2. Building credibility

This is an often-overlooked section when it comes to building the business. Professionals must remember that the right mindset has a major part to play in creating strategy and seeing the bigger picture. How open minded are you to change? How ambitious are you with thinking through bold plans for growth? How confident are you to action those plans? These are leadership and management skills can influence business success.

Because personal selling is about mindset and personal promotion, it can be uncomfortable for some. Service professionals are excellent at selling their product, but when it comes to promoting themselves, it’s another matter.

Skills like presenting, speaking to groups, communicating, speaking to camera and creating video, speaking on radio, creating podcasts, speaking with clients and prospects on the phone – all these have an impact when it comes to connecting and promoting yourself and your brand or organisation.

For leaders, developing these skills in for both themselves and their staff will help the business grow. These skills are learnt skills and building their employee’s confidence in these skills will deliver huge benefits. Developing communication and leadership skills empowers individuals, giving them life skills and building their confidence.

 

3. Closing the sale

Now, this is the stage of the business development process where the sales team takes the prospect from the building of trust and credibility to closing the sale. The marketing team has set the stage then hands over the prospect to the sales team to get the sale over the line.

To do this, the sales team will need to find out:

  • What are the problems they are experiencing?
  • What are their desired outcomes?
  • What products or services can the business offer to help them?

 

Only when the sales team can respond positively to these questions do they stand a chance of getting the prospect sold. This will require regular communication to ascertain whether your organisation can provide the suitable solution.
In the B2B business world, the sales team coordinate with marketing who hold a list of prospects in the pipeline. By presenting a credible persona and connecting with the prospects, the sales team could get the sale across the line.

Ideally, for the business development system to work, the marketing and sales teams are integrated working together to build the business. For B2B business leaders, building the connections with the marketing and sales teams is ideal for a coordinated approach with the vision focused on growing the business.

Adrienne McLean MIML is the founder and principal marketing and speaking coach for The Speaker’s Practice – which runs workshops, coaching and events that help professionals to improve their marketing and communications.

IML ANZ Members in Sydney are invited to join Adrienne at the Professional Services Marketing Conference on August 17th, 2019. This information conference takes delegates on the business development journey starting with marketing and digital marketing, going through to sales topics with mindset topics covered throughout the day. IML ANZ Members who book by July 17th enjoy a 15% discount when they use the code IMLEB. To book or find out more, visit www.professional-services-marketing-conference.com.

Champions of Change

By Anthony O’Brien

Our leadership community is privileged to have two leaders who exemplify excellence and integrity and who encourage the highest ethical standards: noted humanitarian Professor Shirley Randell AO FIML and Dr Donna Odegaard AM, CEO of Aboriginal Broadcasting Australia. They share some inspiring leadership insights with Leadership Matters.

Dr Donna Odegaard AMTHEIR LONG ROADS TO LEADERSHIP

A long-time public servant including stints in the Department of the Prime Minister and the Public Service Commission, Randell was one of Australia’s 100 Inaugural Women of Influence in 2012. She is also a big supporter of International Women’s Day, which is fast approaching on 8 March. Prior to her public service, Randell taught Aboriginal children in remote schools in Western Australia before moving to Papua New Guinea to lecture at teachers’ colleges operated by the Uniting Church.

After her first retirement, Randell owned and operated consultancy businesses in Sydney, Rwanda, and Vanuatu. She also worked in a consulting role in Bangladesh in 2004–5 and 2014–15.

Darwin-based Odegaard is the founder and CEO of Darwin-based Aboriginal Broadcasting Australia, which is seeking to establish free-to-air television operations in every capital city. Currently, her unique television licences are regulated to broadcast nationally. As a result, the busy Odegaard is collecting frequent flyer miles taking her vision for her businesses to boardrooms across Australia.

It’s an impressive result for Odegaard who started her business career selling handmade clothes to support her family. She is recognised as one of Darwin’s most respected businesswomen and has strong views on what it takes to be a leader and manager today. Odegaard also has robust opinions about how business leadership has changed for women since the 1970s. She explains, “I’ve seen some massive changes in the past 30 years for women leaders, especially Indigenous women. We were breaking some ground in the 1970s but mostly in the areas of activism, politics, education and the arts.

“Today, young women are trailblazing in areas such as business, economics or they are entrepreneurial and are looking at global markets.”

Professor Shirley Randell AOWOMEN HAVE COME A LONG WAY

There were very few women in leadership roles when Randell joined the Commonwealth workforce in the mid-1960s. “I’m pleased to see that we now have many more women leaders,” says Randell who cites former Victorian Premier Joan Kirner and philosopher Jean Blackburn as inspirational female leaders.

“There’s more individual support for women today from other women, and we have more men who are fighting for women’s rights. In regard to whether we are better off, of course, we are.”

However, there is no reason for complacency, counselled Randell, “because, in reality, for example, we’re still a tiny percentage of engineers, surgeons, and parliamentarians in the Liberal/National party coalition.”

Odegaard, who earned her PhD from NSW’s University of Newcastle, agrees and even as recently as the early 2000s discovered there were still gender roadblocks for female entrepreneurs. “I very carefully ventured into the media and had a lot of pushback from males in the industry. But I just kept quietly chipping away to try and get more of a voice not just for women but for Indigenous people.”

Randell warns that when female leaders earn some successes, there can be a backlash. “When countries, for example, are taken over by fundamentalism, which we are now seeing, women’s rights are one of the first things to go.”

MEN’S VIEWS ARE CHANGING TOO

With a working résumé stretching over 60 years, Randell says she took her first significant leadership role in 1984 when she was appointed Director of Programs ACT Schools Authority in Canberra. She then honed her management skills when she was named CEO of the Council of Adult Education, in Melbourne from 1991–94. In this challenging role, Randell was responsible for 1,000 teachers and 50,000 students. When she first retired in 1996, she was CEO of the City of Whitehorse, the second-largest city in Victoria.

Men’s view of leadership had to change too over the past 30–40 years to help open doors for female leaders, opines Randell. “Quotas for women in leadership roles are important. Men had to change as well, and we’ve had these champions for change in Australia who are doing tremendous work in supporting women such as Qantas CEO Alan Joyce. Things are changing to help us achieve gender parity.”

Having more women on public and private sector boards is a must to promote gender diversity, argues Randell. “On those boards and in those executive suites where men are welcoming women, the fact that women are there is a considerable incentive to other people. However, in my opinion, quotas need to be there to achieve balanced leadership across the boards.

“We haven’t yet done this with business, but Elizabeth Proust who has just retired as Chair of the Australian Institute of Company Directors has been talking publicly about the importance of targets if we want to change the position of women on business boards.”

Randell recognises the success of diversity targets in the European Union and the United Kingdom to illustrate the effectiveness of getting more women and minorities onto boards. “We need to do the same in Australia. However, for this to be effectual, you need men welcoming women.”

ADVICE FOR YOUNG LEADERS

Randell advises young leaders to pursue the routine actions involved in climbing the leadership ladder such as:

  • Working hard
  • Completing academic qualifications
  • Getting published
  • Attending conferences

She adds, “When you make mistakes you don’t stop.

“I’m a great believer that in every setback there’s an opportunity. That’s happened to me. I’ve had disappointments in my career, but there’s always a silver lining. In every loss, there’s always an opportunity.”

Odegaard advises aspiring women leaders to harness the power of social media. “Through social media women can connect to other support groups, and to networks such as IML ANZ.

“Those of us who were doing business in the 1970s, 1980s and 1990s were doing it basically on the smell of an oily rag. We were doing it out of our homes, we were poor, but we had a lot of creativity, but back then we didn’t connect as a community of women because we just didn’t do that. You couldn’t even think about doing things like that.”

The roles of women in business are changing, continues Odegaard, who is confident the younger brigade “are strong, confident and are sort of quietly changing things”. The television executive is fond of asking young aspiring female leaders, “What do you want to do?”

“If they have dreams and aspirations, I advise young leaders to stick close to good people and networks such as IML ANZ.

“The Institute can also provide valuable mentoring services, and certainly good advice and experience. Get as much out of it as you possibly can.”

Why you need to re-engage demotivated employees

There’s no denying that motivation drives performance. So when employees lose their drive to succeed how can managers help them? More importantly, should managers try to salvage motivation?

Motivation is the force that leads to success. In fact without the willingness, persistence and mental effort that result from high-motivation, 60% of team projects fail. High-performance cannot be achieved without motivation.

Employees, however, lose this drive for various reasons. They may no longer feel positively challenged in their role or perhaps they are dealing with a difficult situation. They could also be feeling that they are not rewarded fairly for their work.

It’s therefore prudent for leaders to be supportive when good employees lose their motivation. You don’t want them to be demotivated to the point of leaving. IML ANZ’s National Salary Survey found that on average, it costs A$23,410 to replace staff who leave. Not to mention the invaluable cost of losing the knowledge and understanding those employees have of your organisation and customers.

What can managers do to re-engage demotivated employees? Here are some ways:

 

Reward for extrinsic motivation

This includes external or tangible rewards such as salary, benefits, the conditions of work and even the physical work environment.

Managers must be cautious not to assume that extrinsic motivation is the quick fix. There could be a number of factors that influence de-motivation. Instead, use extrinsic motivation as just one of the ways to re-engage your employee.

 

Support their intrinsic motivations

Here is an area where leadership skills can truly make an impact – boosting an employee’s intrinsic motivation. Unlike extrinsic motivation, this takes time, effort and commitment to build within employees.

An intrinsically motivated worker is one who feels confident in their capability, enjoys a healthy sense of challenge in their work feels appreciated by workmates and displays care and consideration for those around them.

There is also no silver bullet for boosting intrinsic motivation. Much will depend on ensuring that you value the achievements of employees in a fair and visible way. It also helps to work on communications skills so that you can be a source of reassurance for employees who may be waning in their motivation.

Optimising performance while adapting to change

Change is the only constant in today’s business environment. Beyond companies merging and being acquired, there are system changes, team restructures and everything in between. As handling the flux while still delivering on business outcomes can often be too much to ask, what can leaders do to ensure employees can do both?

Even a team whose morale is high will have their performance suffer if they feel they need to juggle too much. Your high-morale team might find that managing change and delivering results pushes them to their limit.

Therefore, resilient employees – those who are flexible, adaptive and can optimistically learn from experiences – are a positive influence during times of change. Similarly, businesses also need resilient teams to thrive and survive. They are living testimony that change need not be a bad thing.

But as with any turbulence, you need deliberate tactics to navigate successfully. Here are some ways leaders can encourage top-performance amid change:

 

Strong leadership

Good leaders earn respect. Be trustworthy and give clear direction. Your teams will look to you for stability during uncertainty.

It’s also a good idea to be visible. Spend time with your team and hear them out. It doesn’t need to be a formal appointment. In fact, your employees might feel more comfortable to open up in an informal setting.

 

Provide perspective

It’s important to walk your people through the change. If you’ve ever been on a long drive to a new destination, you normally look for landmarks. These give you a sense that you are headed in the right direction.

Provide your teams with clear landmarks so they can mark progress and feel a sense of achievement. There may need to be detours but talk them through those as well. It will increase their sense of security that they are not on the change journey alone. And don’t forget to celebrate when key milestones are reached.

 

Develop soft skills

Inevitably people experiencing change will need to develop new skills to adapt. Instead of focusing on developing technical skills, look at enhancing your employees’ ‘soft skills’. That way you’ll help them improve how they make decisions, solve problems and deal with difficult situations.

Digital innovation primer: Part five – Cybersecurity

By Craig Baty FIML

 

For our final article in this series on digital transformation for non-technical leaders, we’ll look at Cybersecurity. In last week’s article we saw how AI and robots will increasingly work alongside us to augment our capabilities, now it’s time to think about the elements we need to protect in this constantly connected world.

 

The evolution of security

 

What used to be called computer security is now most commonly called cybersecurity. The change in terminology reflects the evolution from discrete to interconnected computer systems. It is only since computers have been connected to each other that issues around protecting them from unwanted intrusion become prominent.

 

Cybersecurity has many parts, from the protection of individual devices to the protection of the enterprise and even the nation state. One important aspect is identity and access management, a range of technologies intended to ensure that only validated individuals have access to the appropriate levels of information. Identity management systems are now being implemented at the national level with the increasing popularity of e-government systems. Many identity management systems include a biometric component, using voice or facial recognition, fingerprints, and other distinctive physical attributes to verify and identify individuals.

 

Keeping enterprise information safe

 

The term Security Information and Event Management (SIEM) is increasingly being used to describe the range of techniques and technologies employed to ensure that enterprise information systems are secured from outside interference. Such interference can come from individuals, organised crime groups, other enterprises, or even nation states. They can be motivated by political, economic and national security policies, revenge, mischief and thrill-seeking in the case of individuals, or by financial advantage in the case of access to proprietary information.

 

SIEM systems are the fastest-growing and most important product area in Cybersecurity. They have three major components:

  • Data collection: Gathering data about system activity from syslogs, firewalls, application monitors, and operating system and network traffic logs.
  • Data analysis: Log management and retention, event correlation, user activity monitoring, and predictive and forensic analysis.
  • Reporting: Real-time dashboard alerts, email and SMS with alerts, analytical reporting, auditing and governance, and compliance.

 

Cyber-safety beyond borders

 

Cybersecurity is increasingly important to governments, where it is now an area of active international conflict. Cyber warfare is a reality, with nation states (and sponsored terrorists/black-hats) as perpetrators as well as victims. Most countries now have national cybersecurity centres, drawing on the capabilities of private industry, government and academic specialists in the area.

 

Cybersecurity is a constant battle of changing technology. There are many excellent point solutions, a range of comprehensive suites and a large services and systems integration industry that provide clients with cybersecurity solutions based on a range of products. However malicious players are constantly employing new techniques and technologies. It is a new arms race, a new cold war and there is no one size fits all solution.

 

Leaders at all levels need to arm themselves with enough knowledge to understand these threats and work with appropriate organisations to develop and implement individual, corporate and community plans for mitigating negative impacts.

 

Digital transformation – why you should care

 

Join us in Sydney where Craig will present an informative and insightful TEL Talk: Digital Transformation – Why should I care? This brief primer on Digital Transformation will address:

 

  • What is Digital Transformation and why is it important for today’s leader?
  • What are the key technologies and processes to be aware of?
  • How have these technologies been used to create truly transformative business outcomes?
  • As a leader, how can you prepare yourself for an increasingly digitalised future?

Craig Baty is Principal and Founder of Technology & Management Services (TMS), which specialises in research-based data-driven thought leadership and consulting for ICT strategy, outsourcing, vendor management, go-to-market execution, and market and competitive intelligence. TMS also consults on cross-cultural communications and managing virtual teams across multiple geographies. He previously held C-level leadership roles with global telecommunications provider BT (British Telecom), Japanese ICT & technology giant Fujitsu and ICT research and advisory firm Gartner. Craig currently serves as NSW Vice Chair of the Australian Computer Society (ACS) and on the NSW Council of the Australian Information Industry Association (AIIA).

Digital innovation primer: Part four – AI and robots are here

By Craig Baty FIML

 

In this fourth of five articles on digital transformation for non-technical leaders, we’ll look at AI and robots. In last week’s article we saw how pervasive the Internet of Things has become, now let’s look at how AI and robots impact today’s workplace and world.

 

A higher intelligence?

 

Artificial Intelligence is the application of computing power to problems previously solvable only by human thought, if at all. It comes in many forms. Key technologies and applications include:

 

  • Advanced analytics: the proliferation of Big Data has led to the creation of massive data sets that can be effectively analysed only with AI tools. AI can spot complex patterns in the data visible to humans. AI’s usefulness as an analytics tool is especially relevant in the use of predictive analytics and decision automation.
  • Natural language processing (NLP) and speech recognition. NLP involves the interaction between computers and unstructured speech and text. The technology involves massive processing power and complex algorithms and is used in such applications as speech recognition and machine translation.
  • Cognitive processing: Otherwise known as semantic computing, refers to digital processing that attempts to mimic the operation of the human brain. It is especially suited to the analysis of large unstructured datasets and has been shown to be more effective than humans in the diagnosis of many diseases.
  • Robotic process automation (RPA): RPA has grown out of Business Process Automation (BPA), and refers to the use of AI techniques to automate workflow and business processes. A good example is the use of NLP to scan incoming emails and undertake the appropriate action, such as generating an invoice or flagging a complaint.
  • Machine learning: The use of AI techniques to help computers make decisions based on previous events. Like many AI techniques, machine learning involves a combination of raw computing power and logic-based models to simulate the human learning process.
  • Chatbots and virtual assistants: Chatbots are robotic processes that simulate human conversation. They are often used for automated online help functions. The technology is also used for so-called ‘virtual assistants’, which uses AI to interact with humans to provide information that helps them undertake specific tasks.

 

Brain and body: AI and robots

 

AI is software, while robotics is hardware. Robots are machines, usually but not always driven by AI-based software. Their first widespread use was in production line manufacturing, where they could be programmed to perform repetitive tasks. As AI becomes more sophisticated and robotics technology evolves, robots are increasingly performing more complex functions, from domestic tasks to education and training to mimicking human performance and behaviour.

Any application that involves AI being applied to the physical world is essentially robotics. This includes autonomous vehicle and aerial and seaborne drones. These also cross into the Internet of Things (IoT). It is common that these evolving applications typically draw on a range of technologies.

Although we are many many decades away from AI being able to completely replicate human decision making and behaviour (and opinion is divided as to whether this will ever happen), AI is not going away and will increasingly permeate all aspects of daily life. To remain ahead of the curve, leaders need to understand the potential for using AI to augment their capabilities and should begin the process by working with their teams to identify potential applications, then develop these ideas into proofs-of-concept (POC).

 

Digital transformation – why you should care

 

Join us in Sydney where Craig will present an informative and insightful TEL Talk: Digital Transformation – Why should I care? This brief primer on Digital Transformation will address:

 

  • What is Digital Transformation and why is it important for today’s leader?
  • What are the key technologies and processes to be aware of?
  • How have these technologies been used to create truly transformative business outcomes?
  • As a leader, how can you prepare yourself for an increasingly digitalised future?

Craig Baty is Principal and Founder of Technology & Management Services (TMS), which specialises in research-based data-driven thought leadership and consulting for ICT strategy, outsourcing, vendor management, go-to-market execution, and market and competitive intelligence. TMS also consults on cross-cultural communications and managing virtual teams across multiple geographies. He previously held C-level leadership roles with global telecommunications provider BT (British Telecom), Japanese ICT & technology giant Fujitsu and ICT research and advisory firm Gartner. Craig currently serves as NSW Vice Chair of the Australian Computer Society (ACS) and on the NSW Council of the Australian Information Industry Association (AIIA).

Digital innovation primer: Part three – The Internet of Things (IoT)

By Craig Baty FIML

 

In this third of five articles on digital transformation for non-technical managers, we’ll look at the Internet of Things. After introducing workplace innovation in last week’s blog, we look at how the Internet has become all-encompassing, enabled the internet of things (IOT) and become even more vital for all leaders to understand and leverage.

 

From Internet to Internet of Things (IoT)

 

The Internet was first developed as a way of connecting computers to each other. With the rapid growth of digital technology almost anything can now be connected to the Internet – hence the term ‘the Internet of Things’ (IoT).

 

There is a multiplicity of ‘things’ that can be connected to the Internet. It is not only devices. By definition, anything with an IP (Internet Protocol) address can be connected. Wireless technologies such as WiFi, Bluetooth and 4G and 5G telephony mean that devices and sensors do not need to be physically connected – indeed, with IoT, remote connectivity is the norm.

 

The key to IoT is the ‘embedding’ of Internet connectivity into virtually any kind of physical device, which means they can be controlled and monitored over the Internet. They can also act as monitors – or sensors – for other devices and applications. This opens almost infinite possibilities and expands the scope of the Internet and what it can be used for.

 

Putting the IoT to work

 

The IoT can be best understood using examples in different environments, as introduced in this non-exhaustive list of IOT applications:

  • Medical and health: IoT is the key technology for e-health, enabling remote diagnostics and monitoring, inside hospitals and in the community. Monitoring patients’ clinical condition and behaviour is a key aspect of effective healthcare.
  • Buildings and dwellings: The so-called ‘smart home’ is a primary example of IoT technology. Virtually all domestic appliances can be IoT enabled, allowing them to be remotely controlled or activated according to external conditions. At the commercial level, building management systems do the same thing on an industrial scale.
  • Energy and environment: The so-called ‘smart grid’ uses IoT technology to monitor and control the efficient distribution of energy. Smart sensors can be used to monitor all aspects of the environment and are increasingly being used for such applications as earthquake and tsunami prediction, warning and mitigation and wind-farm optimisation.
  • Transport: A high-profile application of IoT technology to transportation is the rise of the Autonomous Vehicle (AV), otherwise known as driverless cars. More important than the technology and the vehicle itself are the monitoring and control mechanisms that enable it to move safely and efficiently around the transport network. IoT technology is also important and controls transportation systems such as trains and aircraft.
  • Manufacturing: Automation has long been part of the manufacturing process. The IoT takes this to a new level, enabling vastly improved process automation, much of it based on big data and the sophisticated analysis of it. Digital twinning using IoT enables factory management to effectively replicate their factory on-screen or use virtual reality/augmented reality (VR/AR) to monitor, manage and maximise factory floor operations from a remote location.
  • Agriculture: The IoT has made possible such applications as driverless tractors and automated irrigation systems. However, its primary application of agriculture is in monitoring the environment to enable the right decisions to be made about the most efficient farming practices.
  • Smart cities: The term means different things to different people, but what they all have in common is the widespread deployment of IoT enabled applications including traffic and parking management, public space lighting, infrastructure monitoring, disaster recovery facilitation, and the like.

 

IoT has now moved beyond its earlier limited industrial applications and now permeates most aspects of society. As IoT can be embedded in almost anything, people are becoming very inventive. However just because your front door mat, your toothbrush and your mower could all be connected, it doesn’t mean that they should be. Leaders need to resist the desire of their employees and management to connect absolutely everything, and work with their teams to develop ideas for IoT use that can enhance corporate operations, improve safety, and create a competitive advantage.

 

In next week’s blog we will introduce Artificial Intelligence, robots and their impact.

 

Digital transformation – why you should care

 

Join us in Sydney where Craig will present an informative and insightful TEL Talk: Digital Transformation – Why should I care? This brief primer on Digital Transformation will address:

  • What is Digital Transformation and why is it important for today’s leader?
  • What are the key technologies and processes to be aware of?
  • How have these technologies been used to create truly transformative business outcomes?
  • As a leader, how can you prepare yourself for an increasingly digitalised future?

Craig Baty is Principal and Founder of Technology & Management Services (TMS), which specialises in research-based data-driven thought leadership and consulting for ICT strategy, outsourcing, vendor management, go-to-market execution, and market and competitive intelligence. TMS also consults on cross-cultural communications and managing virtual teams across multiple geographies. He previously held C-level leadership roles with global telecommunications provider BT (British Telecom), Japanese ICT & technology giant Fujitsu and ICT research and advisory firm Gartner. Craig currently serves as NSW Vice Chair of the Australian Computer Society (ACS) and on the NSW Council of the Australian Information Industry Association (AIIA).

Retain top talent without blowing your budget

By Nicola Field

For more than 50 years, IML ANZ has produced its National Salary Survey to help businesses and managers attract and retain the right talent. It’s the longest running such survey in Australia and Sam Bell FIML, General Manager – Corporate Services and Research at IML ANZ, shared the latest insights from the National Salary Survey, and what it reveals about attracting and retaining top talent without blowing the wages budget.

 

ONE IN 10 WILL RESIGN

The National Salary Survey found a resignation rate of 10% Australia-wide, according to Bell. Many managers express surprise when they see this figure, but it’s a figure that has, broadly speaking, held steady for several years.

Resignation rates do vary according to location and industry, says Bell. In New South Wales, with a strong state economy and abundant jobs, the resignation rate is 10.5%. In Western Australia, where there’s a downturn in the resource sector, the rate is far lower at 6.8 %. The highest rate of resignation – 14.1%, occurs in the banking/finance/insurance sector. At the other end of the scale, the agricultural sector has a resignation rate of just 7%.

A high level of turnover may be tolerated by large organisations with deep pockets. However, Bell points out that every time an employee moves on it costs an organisation around A$22,000 in terms of outplacement, recruitment and onboarding. That’s a significant bill, and it doesn’t include the disruption to teams and loss of productivity – or even morale – that can occur when good people leave.

 

START AT THE BEGINNING

“It’s really important to look closely at a candidate’s résumé so that you’re hiring the right people in the first place,” says Bell. “You really should be looking for a cultural fit because people who mesh with the organisation and its values, are more likely to stay longer and have a positive impact on the team.”

Interestingly, Bell says a high level of turnover in past roles isn’t necessarily a warning flag that a candidate is likely to jump ship prematurely. “In today’s world it’s unrealistic to expect an employee to stay with the same organisation for more than three to five years,” he explains.

That said, Bell believes it is important to use interview time wisely, and ask questions about why a candidate has left roles in the past. “You may get generic responses,” notes Bell. “But it is worth trying to get to the root of the problem.”

 

DITCH PERFORMANCE REVIEWS?

Annual performance reviews are entrenched in many Australian workplaces, but maybe it’s time to rethink the practice. According to Bell, organisations that do not use performance reviews enjoy lower resignation rates.

Bell explains, “Performance reviews can be a way of not addressing employee issues for 12 months. But younger people in particular, need ongoing feedback.” He notes too that it can be challenging to recall what an employee did three months ago, let alone a year ago, and questions how salary rises can be based on somewhat hazy details.

That’s why Bell recommends ditching performance reviews in favour of development plans that focus on regular communication via a weekly or monthly catch-up. “When a manager is prepared to spend time with team members it sends a clear message that the company is investing in its people and, as a result, they feel more valued,” says Bell.

For businesses that opt to ditch performance reviews, salary increases can occur on a rolling basis in line with an employee’s date of initial hiring rather than sticking to a rigid 30 June annual review.

Bell adds that if a team member is performing well, they shouldn’t always have to wait for their hiring anniversary to roll around to be rewarded with pay rise.

 

KEEP IT FLEXIBLE

Employers can send a powerful signal to their people by investing time and energy in their profession without paying for expensive courses. Bell says mentoring is an easy way to create dialogue, encourage people to hone their skills and to see the bigger picture rather than just taking a myopic view of their day-to-day tasks.

Working flexibility, such as working from home, is also highly valued by many employees. Bell points to the changing dynamics of lifestyle and technology that make telecommuting a growing trend – and one that can support staff retention: “The flexibility to spend at least part of the week working from home is a proven way to attract staff without paying any additional salary.”

Bending to employee preferences for a shorter working week can also be a way to hold onto quality talent. “Employees can struggle to find another business where they can work their preferred hours, so if a flexible working week is approved by their current employer, it definitely reduces the likelihood that an employee will move on,” notes Bell.

Offering some flexibility with start and finish times can also help, especially for employees with young children or other carer commitments. Bell says, “As long as staff know the appropriate times to schedule meetings, the system can work well.”

 

HEALTHIER = HAPPIER

A healthy employee is a productive employee – and maybe even a more loyal one. Being proactive about your team’s wellbeing can enhance retention rates.

IML ANZ’s National Salary Survey revealed some innovative practices employers are adopting to keep good people on board. These include ‘walking meetings’ and wellness days, where a masseuse comes into the business for a morning at the company’s expense. Bell notes that IML ANZ recently held a ‘bring your dog to work’ day though he admits some of the pooches did get a little unruly. Nonetheless, what matters is that the organisation is willing to try different things: “It’s about breaking up the routine and relaxing the office culture a little.”

Other wellness innovations include the use of Employee Assistance Programs. Bell explains that these typically involve a phone-based counselling service that employees can use if they are experiencing personal issues – anything from addiction through to a relationship breakdown. The service is confidential but is often costed on a ‘pay per use’ basis, between the employer and counselling service.

Taking a creative approach to annual leave is another strategy but it goes beyond bonus days off, and can include leave for voluntary activities.

A more pressing issue for many small to medium enterprises can be maternity and paternity leave. Bell notes, “They may be able to afford to top up government-funded maternity/paternity leave so that an employee receives close to their regular wage or salary. It’s a way for smaller employers to compete with the big end of town.”

Ultimately, staff retention is all about finding ways to demonstrate that you value your staff – and help them thrive in your workplace. This requires an investment of time and effort. But it’s a lot easier and cheaper than farewelling quality talent and trying to fill the gap they leave behind.

The full version of this article appeared as ‘Let’s Stay Together’ in the December 2018 edition of IML ANZ’s exclusive Member magazine, Leadership Matters.

Creating a climate for change: the privacy conundrum

By Annelies Moens CMgr FIML and Chris O’Connor

 

We recently read an illuminating article by Jeff Kluger, editor at large for Time. At its core, it asserts that from a behavioural standpoint, we humans are going to find it very difficult to take action on climate change – until it’s too late. As he put it, “when it comes to the loss of the entire planet, well, we ought to take action. And yet we don’t; we never do.”

Why the widespread inaction?

Kluger rationalises that climate change falls into an ‘ignore-the-problem’ box as it doesn’t fulfil the criteria we need to be motivated to act. The same can be seen in how privacy issues are often treated ­– organisations are sometimes good at predicting future outcomes and identifying risk but fail to understand the relative potential of the risk and ultimately, do nothing about it.

When it comes to taking steps to manage fundamental human and economic rights, such as privacy, many organisations fail to appreciate its significance. Privacy is a building block that leads to the protection of other rights taken for granted in many parts of the world such as autonomy and freedom of expression (no chilling effect). The protection of people’s privacy is fundamental to democracy. Yet it is easily whittled away to the point that individuals no longer have control over their own personal information.

The common folly

The over-collection and misuse of personal information, as well as the ubiquitous number of data breaches, bear a heavy cost on society and business. Think of Facebook’s market capitalisation that dropped US$119 billion after announcing that growth had slowed since the Cambridge Analytica scandal. Equifax and Target’s well-publicised data breaches cost the companies approximately US$300 million each, not including all the indirect costs such as customer churn, loss of trust, identity theft and the illegal sale of personal information.

Despite this, many organisations fail to adopt basic precautions, such as two-factor authentication or minimising collection of unnecessary data points, such as date of birth or deleting data they no longer need for their organisation’s purposes.

Each quarter, the Office of the Australian Information Commissioner (OAIC) reports on the causes of data breaches by regulated entities. The majority of data breaches are due to human factors such as falling for phishing attacks, which can be thwarted if secure forms of two-factor or multi-factor authentication are in place. Indeed, half of cyber incidents as the OAIC reported in its most recent quarterly reports were due to phishing attacks.

Despite climate change, data and cyber issues being in the top five likely to occur risks, privacy, like climate change, can be seen as a far-off issue, one that takes a back seat to more immediate and pressing issues. This is a mistake.

To motivate action our knowledge and beliefs must align

What do privacy and climate change lack in fulfilling the required criteria to motivate people to act? Here are some reasons:

  1. They lack the “me” component. As David Ropeik, an international consultant on risk perception and communication, said in the Time article, “Nobody wakes up in the morning and looks at the long-term climate forecast. They ask what the weather is today, where I live, and how it’s going to affect me.”In terms of privacy, the lacklustre response of senior leaders and directors to privacy issues show the failure of leaders to put themselves into the shoes of their customers. They prioritise shareholder primacy and profits over customer privacy (consider Facebook’s response to the privacy scandals) or give primacy to politics (consider the privacy problems surrounding the rollout of the e-health record in Australia).

    It is growing increasingly clear that customer and community values need to be accounted for. It’s not good enough to focus solely on maximising shareholder value, if long-term sustainability is a goal for shareholders (see “Innovate before it’s too late” by Mariana Mazzucato in Company Director pp.12-13, Dec 2018/Jan 2019).

  2. The consequences seem far in the future, so we discount the risk. Paul Slovic (University of Oregon psychologist and the President of Decision Research) said in the Time article, “When it comes to acting on problems, the lure of our current comforts and conveniences will often cause us to act contrary to our values.” When it comes to valuing privacy, numerous studies show that whilst people highly value their privacy, they often don’t take steps to trade it off for other considerations such as convenience. This is known as the Privacy Paradox.
  3. It can be hard to envisage how climate change or a breach of privacy will affect us – personally. What will our lives be like if there are two or three degrees of warming or if our identity is stolen? Ropeik says “if you ask even the most devout climate change believers how they think it’s going to affect them, they often can’t quite describe it”. If you can’t put yourself in the picture, it’ll be easy to ignore.

    Similarly, the nexus between a privacy breach, such as a misuse of your identity and the harm could be years apart. For example, you may only realise the impact of the misuse of your personal information when you can’t get a loan for the house you want to buy. At some point in the past, someone has misused your identity and has defaulted on a loan in your name, often seen in privacy complaints to the OAIC. The damage, in contrast to a plane falling out of the sky, is not instantaneous. Sometimes, we can’t even connect the misuse with the harm that happens down the track.

  4. There is a sense of futility or hopelessness. The inefficacy factor, whereby people think that individual action has no impact particularly on large problems. Slovic says that “we reason that we can curtail things we want to do – like driving or flying, but if other people aren’t going to do it, it’s not going to make any difference.”

    Consider all the information about us held by third parties or in the public domain or what our friends post about us on social media platforms over which we have no control. So, what does it matter if we hand out our personal information again? For example, what does it matter if I keep on handing over my personal data in insecure environments (such as HTTP rather than HTTPS on websites); or when the data is actually not required by the requestor (like a vendor asking for a date of birth when you are purchasing wine online, when all the vendor really needs to know is that you are over 18). In the latter situation, many customers would simply provide a fake date of birth to complete the transaction anyway.

So, what needs to happen to effect change in such scenarios? Let’s restate the conundrum outlined above in the positive:

Seven knowledge and belief statements that must align to get people moving to make changes

  1. I know this will affect me
  2. I can clearly envisage how it will affect me
  3. I am clear about the future consequences of doing nothing
  4. I am willing to make the effort today to make tomorrow better
  5. I feel confident that our actions today will achieve the desired outcomes
  6. I have the support, knowledge and tools to act

The last and most important factor that the Time article does not address is:

  1. Leaders must not just say they are all behind the initiative, they must reflect that commitment in their actions – every day.

Many people are very good at spotting inauthenticity and if they don’t believe their leaders are committed, they won’t be either. Accountability for privacy needs to be at senior leadership levels, with an ability to influence culture and practices organisation-wide.

We are entering an era of social climate change when it comes to privacy, as more and more people are becoming aware of the value of their data and what the impacts are of not managing privacy well. We still, however, have a long way to go to building in privacy by design into organisational processes and systems and making privacy core business.

In terms of climate change, the lack of leadership in some countries is concerning. The stakes are high and in today’s global political (rather than scientific) climate, we’re not even close to getting on the right track to managing our natural resources sustainably.

Is your organisation displaying symptoms of this collective inertia?

The lessons we’re learning on a macro scale about motivation, commitment and action are equally applicable within government, business or not-for-profit. You may recognise the behaviour described above when you consider the last failed initiative within your own organisation. It may have been that people just couldn’t or wouldn’t support it. That there wasn’t the “corporate will” as some call it, to make it happen.

So, for leaders that are starting to realise the significance of making privacy core business and developing privacy management frameworks, we would encourage you to consider the following questions to start assessing your level of privacy maturity:

  • Do we have a clear understanding of the data needed as opposed to the data we would like from our customers and prospects? Can we clearly describe how that will benefit both the organisation and individuals for whom we are their data custodians?
  • Do we know what the result of doing nothing is? Can we quantify the risks of a privacy breach? Can we clearly articulate this? What would be the risks or impacts for the individual and other stakeholders? How would we respond?
  • Is our plan of action credible and can we show that our leadership is united and willing to do the hard yards and realise that data is an asset or a liability depending on how well it is governed or managed?
  • Do we have a clear understanding of what resources staff will need to make change happen? Will they know what to do and how to do it? Can they measure success?

If you can say YES to each of these questions, you’re off to a good start. But it’s not a silver bullet – there are numerous practical issues that will stand in the way (a discussion for another time), however, without commitment and collective action, you have no chance to overcome the inertia.

For more information on introducing privacy management frameworks and privacy maturity models into your organisation, contact Annelies Moens at operations@privcore.com and Chris O’Connor at chris@ock.com.au

Annelies Moens is the managing director of Privcore and Chris O’Connor is the director, practice lead innovation & agility at O’Connor Kingsford.