WORKSHIFTER - Dispatches from the New Executive Frontier

White House Senior Advisor Valerie Jarrett sent out an email today asking what steps do we think government should take to help American businesses spur job creation in preparation for his speech at tomorrow's Business Roundtable event. It is their hope that a dialogue is started about how to spur job growth. I've pasted Linda Stewart's response below.

"As a result of the market correction, businesses are forever changed.  They are not hiring today because they are afraid to take on all the fixed costs associated with traditionally employing people and building up their high fixed cost infrastructure again.  However, after maintaining very lean organizations for almost two years, they recognize that they now need to move forward and get things done and they don't have the human capital to do it.  As a result of their reluctance to traditionally hire, companies should be allowed and encouraged to bring people in on a temporary or a project basis.  This will put hundreds of thousands of people back to work and will help companies more effectively manage their fixed costs.  Their labor costs will become variable and they will be much more willing to spend the dollars when they know that they can "turn it off" if market conditions or business results deteriorate in any way.  With labor costs being an average of over 80% of total fixed costs, being able to be more responsive to changes in market conditions creates a much more flexible and manageable workforce. In addition, it will give people, currently unemployed, access to jobs, (albeit a bit more unstable than traditional employment). It will still, however, provide them an income stream that doesn't exist today, to help rebuild the economy.  Let's face it, the fundamental relationship between people and organizations has changed.  It used to be that in exchange for loyalty, you got employment security.  In today's highly competitive global economy, organizations need to deploy and utilize talent very differently. Companies can no longer guarantee employment and people cannot give them complete loyalty. Instead, people give companies their time and skills in exchange for compensation for doing specific work for specific periods of time.  A permanent temporary workforce is going to be a vital part of our new economy moving forward and could effectively stimulate the economy very rapidly. I would welcome the opportunity to speak more about this with anyone.  Jobs need to be redefined.  This is the beginning of a new an important period in the history of jobs and the workforce."

This week's cover story in Business Week focuses on the shift in how companies are utilize their temporary workforce. "Right on up to the C-suite, more jobs will be freelance and temporary" write the authors, Peter Coy, Michelle Conlin and Moira Herbst. "The idea that any job is permanent has been well proven not to be true." The authors write that we can expect to see the perma-temp workforce dominate temporary staffing for the next 5-10 years. "Companies that seized on the recession as an opportunity to make drastic organizational changes for greater efficiency and flexibility aren't likely to reverse those changes once the economy begins growing again, says David H. Autor, a labor economist at Massachusetts Institute of Technology. And companies that turned labor into a just-in-time, flexible factor of production won't return to an old-fashioned job-for-life arrangement. For the last 10 years, I and others have been saying that these trends aren't just for a fringe workforce but increasingly are for the mainstream," says Sara Horowitz, founder and executive director of the Freelancers Union, a 130,000-member advocacy group for contract workers. "This recession has shown us that the future is here."

So why write about the temporary workforce here? Because last month's The Economist and this week's Business Week are discussing the use of interim executives at the C-level, "leadership-on-demand" if you will. For those who relish working on projects and engagements with the flexibility to accept only those opportunities that are a great fit, your time is here. For clients, highly qualified, well respected executives are now available to work on an interim basis, talent that would not have been available for consulting, interim and project work in the past, allowing organizations to benefit from outstanding resources on a variable basis.  Epoch has so far experienced a 75% increase in opportunities in the first quarter compared to this time last year, and as the economy improves, we expect requests to grow significantly.  The time has come to consider "leadership-on-demand" as both a viable and effective option for business. 

To read Business Week's cover story, click here: http://www.businessweek.com/magazine/content/10_03/b4163032935448.htm?chan=magazine+channel_top+stories

Epoch has been talking about the evolution of the executive and the "new way to work" for a few years now. My colleague, Linda Stewart, once had an epiphany in a meeting back in 2007 - it struck her that the evolution of the independent executive is beginning to mirror both the movie and sports industries. Further, we started to see that as business embraced a new model of working with executives who possess deep expertise and experience, their efficiencies and expertise accelerated business results.  Linda partnered with Julie Sue Auslander to create yesterday's FAST COMPANY blog; you can read it below or online at: http://www.fastcompany.com/blog/julie-sue-auslander/company-you-keep/big-screen-ballpark-board-room.

FC Expert Blog

From the Big Screen to the Ballpark to the Board Room

BY FC Expert Blogger Julie Sue AuslanderMon Dec 21, 2009 at 4:00 PM This blog is written by a member of our expert blogging community and expresses that expert's views alone.

Fashions and hairstyles have traditionally been the biggest trends coming out of Hollywood. But, the way people now work there is another trend that businesses should become more familiar with. Years ago, Hollywood moguls controlled everything and employed everyone; an unsustainable model because of its high fixed costs. Hollywood soon saw the development of the talent agent, someone brokering the people and the studios, matching individuals' talents with studio requirements on an as needed basis.

And then, once that system matured and to more effectively manage the business of moviemaking, Hollywood innovated a new model that uses free agent teams, a talent deployment and utilization strategy that allows the studios to be more flexible, agile, competitive and cost effective. Thomas Malone describes this trend as a shift from "command and control thinking to coordinate and cultivate."  This had a major impact on the way people work. Today, rather than traditionally employing large groups of people, project teams are common in the film industry. A producer, a director, actors, cinematographers and others come together for the purpose of making one movie and then disband and regroup in different combinations to make others. A new team is then put together and people with the required skills are brought together to execute in the most efficient and effective way. 

Another major industry to follow Hollywood's lead was professional sports. For years, players were owned by the franchises. Slowly but surely, the highly accomplished and most desirable people in sports began to be represented by talent agents. These agents act as brokers between the best athletes and the sports teams that need their talents to fill specific requirements for specific time periods.

Why shouldn't the corporate world begin to embrace this model as an efficient and effective way to manage businesses?  Agents, such as epochworkforce.com, can now help companies engage the talent they need to solve specific business problems or accelerate critical initiatives. It is an idea whose time has come to the boardroom for three primary reasons:

• Businesses can gain access to deep knowledge and expertise-with done it before resources
• All associated costs are variable rather than fixed -no recruiting, benefits or severance costs
• Independent professionals and executives are goal oriented and have no political agenda-giving business leaders the objective feedback they need to make great business decisions.

Accomplished professionals and executives in unprecedented numbers are seeking alternatives to traditional employment. The "independently employed" workforce is emerging. These are people who choose to continue to leverage their valuable skills but act as free agents. They are engaging with companies in projects where they can capitalize on their valuable expertise for limited time periods or for specific project needs. Self employed workers increased significantly over the last few years and consulting is the most desirable option for work according to research done by Merrill Lynch.

The days of a company taking care of you and your family are long gone; the 90's changed all that. As Daniel Pink so articulately states, "It used to be that the bargain between employee and employer was that the employee gave loyalty and the employer gave security...the bargain is now that the individual gives talent and the organization provides opportunities."  That is a fundamental and significant change in the relationship. This fundamental change is going to create a need for talent agents to represent executives and accomplished professionals with valuable skills in what will be a fiercely competitive marketplace. Peter Cappelli, Director of the Center for Human Resources at the Wharton School of Business at the University of Pennsylvania says "It's much more like an open market; you need intermediaries in the middle to help the markets operate. And the intermediaries are the people who can help match workers to jobs."  According to Linda Stewart, CEO of EPOCH Workforce, this is a model that has been practiced extensively in Europe and Asia for decades. As a result of these economic times, when companies need to continue to drive results but must learn to manage their fixed costs, of which employment is the largest component, it just makes good business sense to engage people in project oriented work rather than employ them.

To take full advantage of the growing independently employed market, companies must learn to trust accomplished free agents with important strategic and tactical assignments. Operationally, they must learn to assemble the right team for each task and then disband it, confident that executive talent will be available for future projects. By engaging accomplished professionals and executives they need for limited time and variable costs, forward thinking companies can increase their business agility, manage risks, reduce costs and drive business results.

After a busy fall for Epoch and the usual holiday festivities, I heard that Epoch was covered in the December 10th issue of The Economist. I ran to my tall pile of "magazines to be read", since I'm usually a good two weeks behind, and near the top was the most recent issue. The article highlights the trend of organizations to utilize interim executives, originally adopted by European companies, with increasing frequency.   

I invite you to read the article, Talent on Tap, at: http://www.economist.com/businessfinance/displaystory.cfm?story_id=15064293.

Happy holidays to all!

So many of you come to us and to our blog because you are thinking about making a major change in your life and you are looking for some support.  Well to that end, I would like to recommend a great book that I just completed called Changing Lanes by Jane Jelenko and Susan Marshall.  It really is, as they say, a road map to midlife renewal.  Baby Boomers will love it because it creatively uses lots of songs that we all remember from the 70's...it will bring back lots of great memories.  But the book chronicles a number of people who made significant changes in their life and you can really experience some of it through them.  It gives you a lot to think about when it comes to your own journey.  Let me share some of the beginning of the book to tempt you.

"What do we want to be when we grow up?  As young children, the answer comes easily; a fireman, a policeman, a veterinarian or an accountant.....as teenagers, the questions seems ridiculous and irrelevant....most of us resolve the dilemma by graduating and taking a job that seems to be the best opportunity at the time.  We enjoy the challenges and through hard work and focus, we get promoted and grow.  Then, through what is best described as a series of accidents, we get offered opportunities within our companies or outside that seem challenging and we take them.  At some point, we expect to retire and hope the question never has to be asked again."

Boy....doesn't that resonate with most of you?  But most of us don't want traditional retirement.  Instead, we want to reinvent ourselves in some way.  If that sounds like you, and you want to experience the changes that some really terrific and interesting people made, I hope you will read this book.  I know you'll enjoy it as much as I did.  You can read more about Changing Lanes through their website at http://www.aguidetochanginglanes.com/. To purchase the book, you may go through your favorite dealer or the publisher at http://www.radompress.com.

We officially launched our new business assessment service this week, and here is an excerpt from the press release: 

BOSTON--(Business Wire)--

EPOCH launches a complimentary service for companies looking to drive business results and reduce budgets.

Boston, MA, August 25, 2009 - Professional services firm EPOCH, a leading provider of interim executives and project-based consulting services to help companies solve business problems and execute critical initiatives, announced today it is launching a business assessment service. Through September 30^th, EPOCH will provide a free assessment of a business, working with a company's leadership to analyze how to drive business results and reduce fixed costs (travel-related expenses may apply). Following thorough discussions with key leaders in the organization, EPOCH will present a comprehensive report identifying the strategic and tactical opportunities to immediately impact the business.

ABOUT EPOCH

EPOCH is a pioneering company dedicated to The Next Way to Work and provides:

• Thought leadership on the evolution of work and consults directly with progressive organizations on how to integrate these concepts into the workplace to drive results and reduce fixed costs. 
• Talented project based resources for companies seeking senior level professionals and executives to solve business problems or accelerate critical business initiatives.  These knowledgeable and experienced resources are available on site for larger projects or virtually for smaller advisory services.
• Comprehensive products and services for consultants and freelancers to establish, grow or manage their businesses.

EPOCH works with an organization's management team to accelerate the execution of critical business initiatives by identifying and engaging proven executives who have successfully completed similar projects around the world. Accomplished professionals in their portfolio have proven track records in planning and executing complex projects here and abroad.

Please let us know if we can assist your company!

I've been talking not only with potential independent executives/new consultants for Epoch but also many people who just want some input about how to keep themselves motivated during a long period of unemployment or during long periods in between projects, usually their first, during this recession.  One theme that kept coming through was that these folks miss the camaraderie of being fully engaged on a consulting engagement or in full time employment, often not realizing that the social aspect of working was almost as important to them as their workplace accomplishments. We talk about outplacement hoteling spaces, networking meetings, checking in with colleagues on a regular schedule, working side-by-side at a location with WiFi access, getting feedback from trusted advisers on your work/resume/bio/proposal, working at a friend's house so you both can stay structured and just generally keeping connected to people even if it is via phone or skype when not physically with them. So today, while keeping up with some on line reading, I came across one of Marci Alboher's blogs titled "Tired of working alone? Try coworking" and realized that she had developed a word for one of the ideas I've been talking with executives, consultants and freelancers about for the past year - working separately but physically together. Her blog lists some ideas for coworking, and I recommend you read it if you have the chance. Coworking...I think I'll be using that term and crediting Marci often in the weeks and months ahead! 

This Tuesday's Wall Street Journal ran an excellent article by Sarah Needleman about the time commitments required by solopreneurs, consultants, independent contractors and freelancers. Needleman's interviews indicated that self-employed professionals are struggling to carve out vacation time or even be away from their mobile devices for fear of missing even one business lead given the fierce competition for freelance work during this recession.  Some of these professionals find success in limiting their time off to long weekends or tacking a day off onto a holiday to recharge and prevent burnout, yet checking email and messages periodically to respond to client needs and emergencies.  Other strategies are to enlist a trusted peer to fill in for them or outsource work to a qualified colleague, a service Epoch offers.  Whatever strategy you decide on, I wish you all some well-deserved time off during these last weeks of summer!   

Needleman's full article article is available on the Wall Street Journal website at:  http://online.wsj.com/article/SB124935067214603495.html.  

Barbara Haith has joined EPOCH as Vice President of Business Development at EPOCH, focusing her energies on educating organizations on EPOCH's model and executive talent resources while developing a strong network of long-term client partnerships for EPOCH and interim executive portfolio.  Barbara is a strategic sales leader with over 15 years experience delivering workforce and HR-related solutions to Fortune 1000 companies nationally.  She has direct experience providing outsourced recruiting and staffing solutions to clients within the Financial Services, Life Sciences, Higher Education and Technology industry sectors. Barbara's background includes 10 years as a senior manager leading high performing field sales teams.

Prior to joining EPOCH, Barbara recently served as Vice President of Business Development at TAC Worldwide where she helped customers create practical talent acquisition and workforce strategies for the high tech manufacturing, medical device, and life science industry sectors.

Before joining TAC Worldwide, Barbara was Vice President of Sales for Veritude, a Fidelity Investments company.  In that capacity, she was the primary business development leader for Managed Services Programs and Recruitment Process Outsourcing solutions, initiating and closing more than 20 multi-million dollar accounts including Millipore, EMC, Avid Technology, Akamai, Boston Scientific, JP Morgan Chase, Citizens Bank, MIT, and Columbia University.

Prior to joining Fidelity, Barbara served in senior level sales capacities within the outsourced recruiting sector with firms including Randstad and MRI International.  Earlier in her career, Barbara held executive level field sales management roles in fashion retailing for the specialty retailers Banana Republic and The Limited.

Barbara graduated from Lesley University with a degree in Organizational Development.  She resides in Boxford with her husband Malcolm, and retriever champion Hunter.