Tomorrow’s World Is Global. Are You Ready?

by David Kinnear

Bio: David Kinnear is Chair of The Global Sourcing Council

Tomorrow’s World, a popular BBC TV show in the 60’s and 70’s, was the first place that a mass audience was introduced to the inventions of the day that would form the bedrock of tomorrow’s society. How accurate their analysis was, so often.

It is extraordinary to look back at episodes from the late 60’s describing the advent of electronic banking, the cellular telephone and heart transplants. There is a common theme here – transforming technology, the transformation in society that results – and the success of those organizations who embraced the change that change itself represented.

As a society, we are undergoing a transformational change of seismic proportions to a global economy and a global marketplace for goods and services. This is, in my view, irreversible and it is something to be embraced. Over time, we will view the world as less “here, there” and simply moreso as “our world”. Ultimately, just like embracing a path of Sustainability or the invention of new & alternative energy sources, it will create greater opportunity – even if it looks different versus today, including alterations in wealth distribution. There is no living individual who fully knows or understands the implications of what “global” will mean to us over the coming years. But many more might be able to speak to the implications of resisting change or ignoring its existence.

Just like the fears and social concerns that arose about the implications of cellular telephones and electronic banking,  and indeed just like some of the moral trepidation around early heart transplants, Outsourcing has generated a lot of dialog over the last few years. Some of that was driven by fear – fear of the unknown; some has been driven by by a deep-rooted complacency and an unwillingness to change. Even within the industry itself. Yet lest we forget, change respects noone – and waits for noone.

Economies, clients and providers have the opportunity to address and embrace what “global” means – to ride the change and help define the new experience. Change, described in an ancient Chinese proverb as a dragon,  is one of the hardest and most powerful ingredients in our life and social experience. Yet it is also the most productive. Without change, there is no momentum. Without momentum, we do not progress, learn and grow.

Across many industry verticals, increasingly, we see a shift toward the world becoming a single global marketplace – so it simply stands to reason that those resourced and logistically able to service the marketplace are best-positioned to succeed. In the Outsourcing marketplace specifically, the world belongs to the global, the talented and the agile. Those that are focused and un-encumbered by history or fear.

Tomorrow’s World.. is here. It’s global. Are you ready to embrace it?

 

The Origin of Job Interviews – by @GSSOCX

The Origin of Job Interviews.

 

Sourcing. Outsourcing. Bagels. You can’t beat NYC.

There’s no place like New York. Ask any New Yorker – or anyone who has always wanted to be one. And there’s simply no arguing – the bagels are the best in the world.

But most noteworthy of all is how cosmopolitan, how varied and how multi-experiential this city is. How it has the enormous & unquenchable capacity to host such a diversity of populations, views and experiences – all simultaneously, all chewing on the same bandwidth. People, issues with tremendous merit – demanding time, demanding attention. Yet in the midst of all this noise, we find those times and places that bring people, knowledge, experience together – creating a value that still lies in personal connection, not just online networking.

So it is that on April 6, 2011 on Fifth Avenue itself in the heart of midtown, BK Advisory Group and SPi will host a substantial & energized gathering of industry professionals – to network, debate, discuss – and further the boundaries of our industry. To explore what is new, to listen to & engage those driving this next generation of advancement in sourcing & services delivery.

We will hear what is happening in Healthcare, the impact of Cloud, the implications of our insatiable demand for Energy, the tough-love pitch of Sustainability, the seemingly unstoppable advance of Social Media, the move toward mobile data all around us – and ponder together the question of whether governance and regulation advances or hinders economic growth.

Whether you find these issues challenging or opportune, they will be well-aired at this gathering. It might be a good place to be on Wednesday night.

 

 

Will Hugging Trees Save You Money?

The short answer to this question is no. It’s ludicrous. You may laugh, indeed shrug it off. Most of us can answer this question succinctly. There’s no doubt a green consultant or two out there who might try to persuade you otherwise. For everyone else, the question is one of what does Sustainability mean to me, our organization – and where or how does it save me money. Better still, can it make me money?

Here in the US, we’re embroiled in round after round of political lost-in-the-woods that will be distressing for some companies trying to sell compliance-based solutions that reflect a heavily-regulated carbon market. That’s hardly the term anyone could use to describe the US. The US just doesn’t look like Europe yet – and, dare I suggest it, may never do so.

The simple fact is that behind great American success stories (the things that sold most and made most money for investors) is the basic concept of something that was, well, useful and positive for consumers. Aside providing pleasure, you could divide most of what’s left into whether it saved US consumers time or money. Consider the car. Simple enough example – but it tells us a lot. Another example would be tax-preparation software – help for the masses with something they aren’t good at – and don’t like doing. But of course everyone likes a rebate.

So here is the challenge for the Green Industry – for the vast numbers of software vendors and services providers. Get real. The US consumer is just not into you. Unless and until, that is, you change and start to see how you really apply to the average life of the average organization and the individuals running them.

Sustainability should be more than a philosophical stance. It’s a commercial position taken with significant opportunity attached relative to effort expended. Looking beyond the tree-hugging espoused by many, we see smarter, leaner organizations looking at the issues and opportunities both locally and globally. They’re leveraging cloud to access, compile and manage data – from which they’re identifying new and material efficiencies and savings.

Talk is cheap. In our world right here in the heart of New York, the real estate capital of the world, actions speak louder than words – and the loudest are the ones that say “hey, we saved you money today”.

 

Guys on Bikes v. Cisco. Why Sustainability Strategy Matters.

by David Kinnear, BK Advisory Group

Some aspects of the Sustainability market look uncannily like the early years of the Dotcom Era. Where does that leave you and your organization?

I worked in an investment bank during the go-go dotcom years. It was a wild, crazy time watching the web unfold. Crazy hours, even crazier personalities – yet it all made sense as it played out in the 3^rd floor meeting room, right off the trading floor. This was where the pitches were made day-in, day-out – for the next hot dotcoms hitting the street. How could we ever forget the endless zillions poured into the likes of high-flying Kozmo.com who simply promised ice-cream and video delivery – come rain or shine, or your money back? So why mention it? We think there is an uncanny similarity to the internet in the way that Sustainability is evolving and where it will evolve to. And that spells out both vast opportunity – and also big sourcing & delivery questions for businesses to address.

 

Sustainability. Speed-Dating. Who Is Your Date for the Dance?

by David Kinnear

The news about CA and Capgemini partnering to deliver Sustainability BPO services should be no surprise to followers of the sector.  The next chapter in this industry will be like speed-dating -with technology-plus-services love affairs blossoming overnight. If you grasp what’s coming down the pike on Sustainability, the one place you don’t want to be is left out in the cold. This is especially true for technology providers, but applies in equal measure but in different ways for both providers and clients also.

 

Sustainability. Are You Betting Against Rupert Murdoch?

by David Kinnear, Sr. analyst & independent adviser on Sustainability, Global Sourcing and Chair-Elect of the Global Sourcing Council

Sustainability  is a lot like change itself…

It happens. Love it, embrace it, learn to work with it – or get slammed broadside by it. It happens regardless. Sustainability happens to be a commercial survival & transformative issue, which will be played out on a very public, global stage.

So, in context, are you willing to bet against Rupert Murdoch?

 

Social Media. The Achilles’ Heel of Corporate Social Responsibility (CSR)

by David Kinnear, co-Founder & Chair-Elect of the Global Sourcing Council

As I walked in the snow at sun-rise this morning, a bird swooped skyward and the glorious rising sun bathed the underside of her wings in a deep gold. It was a thing of great beauty and a poignant moment embodying liberty.

Today’s world, simply defined, is all about the power of one. It’s you.

You have an opinion on the importance of being green, of breathing cleaner air, of saving the planet, on the importance of proper employment conditions, of safety and security in the workplace, of dealing with bad employers – of finding ways to make the world a safer, happier place to live for yourself, our children and future generations. And in increasing numbers, you’re expressing these myriad views and you’re describing what you see and what you feel – 140 characters at a time, plus a photo.

This is the stark realization of many governments, politicians, companies and organizations about how to shape public policy on the one hand – and cause consumers to buy on the other. It’s a world of choices and it rolls up to you. You are the voter; you are the consumer. You are the shareholder; you are the employee. You are public opinion and you are the auditor of what happens out there. This has fundamental consequences for the issues of CSR and Sustainability. And for Public Relations. Hitherto, the world was opaque. It becomes clearer by the news cycle.

Aside the occasional jaunt to the Moon or perhaps even Mars, our world is firmly plotted on a course of greater discovery – not of new lands and territories – but of ourselves; uncovering and presenting outward that which lies within. Driven by technology, it becomes harder for news to stay hidden; harder still to make news of consequence among so many competing calls for attention. So it’s funny then that the power of one should be so significant. Among billions of people, why do you matter? And why should organizations care?

The simple reason is that it’s the voice that you give – or do not give – to what is important to you and how you feel about what you see and what you do. Like it or not, we live in the Court of Public Opinion. With the advent of tools like Twitter and social sites like Facebook, we’re seeing a veritable explosion in activity around people finding their voices – and giving voice to what they think and feel. This has business implications. The perceived powerlessness of isolation is gradually giving way to the realization that others share views on a range of subjects as broad and diverse as any of us could possibly imagine, and some.

In a world un-connected by technology, voices are hard to hear; opinions can be quashed. There are painful chapters in history written around the inability of voices to be heard and an indifference by those who may have heard them. These days, however, the tools we have at our disposal change the game. And as the game changes, so too do the challenges and the opportunities for organizations who embrace this.

Corporate Social Responsibility is rather like Sustainability itself. For progressive organizations, it’s not just about being “nice” or “green” – it’s about being smart. Aside the fiscal benefits from likely improvements in efficiency, good governance and operational performance, not to mention the competitive edge that it avails, it’s a form of risk management against forces of public opinion that can fell mighty companies almost overnight. As David toppled Goliath, so too the breaking story or observation of today’s Blackberry and iPhone-carrying employees, journalists – can stop the mighty in their tracks. The good becomes lost in the ugly; the achievements become lost in the investigative journalism that follows and the chatter on the blogs. The stories of companies jumping to attention because of complaints being made publicly via the likes of Twitter are too numerous to mention. But they tell us something very important. Information doesn’t flow freely (yet) but it does flow a lot faster and more effectively than at any time in our entire history. If perception is reality, then that perception is what will drive feedback on a company, a politician. If a particular incident or policy is unpalatable and unsavory, there’s a good chance it will make its way onto the airwaves these days. And the number of editors, journalists and commentators scanning the airwaves for story material is greater than at any time.

Our industry sectors are becoming increasingly global; and increasingly visible. The old debate of whether outsourcing is “good” or “bad” is long-since displaced by thousands of others, daily. We’ve moved from being a “one story” environment to a daily plethora of news – and with that news comes the potential for reputational damage or enhancement.

You see, there are (literally) a lot of people like you in the world. They don’t all agree with you and they don’t all find the same things as important as you do. Pick an issue and you’ll likely find there’s a ready audience or support group ready to run with it. But that’s no longer the point. In the world we live in, one voice – yours – is enough.

This is the new and vital reality of Sustainability and CSR in a data-driven world. Your voice is all it takes. Despite all the powers at be in the world, the opinion that organizations most need to synthesize with.. is yours.

 

Sustainability. The Commercial Imperative Part II

by

David Kinnear – Sr. Adviser on Sustainability, Global Sourcing & Chair Elect of The Global Sourcing Council

At the risk of being radical, I invite you to forget much of what you heard about “green” and “sustainability” in the last 1-5 years versus what you may have felt in the last 3-6 months. This game is changing; this market is moving. The reason why is critical for businesses to understand and act upon, now. Make no mistake, this is a 2011 issue.

Sustainability is a path and an approach, not a destination or a simple report. It will become an inherent part of business – more seamlessly integrated than much of the technology we use today. This view is supported by the necessity for Sustainability as a discipline when we look at the world of global sourcing. If the world is really just one large supply chain, what we’re doing now is time-critical. For centuries, companies have hedged the risks associated with the supplies they use – sourcing from multiple vendors and locations, for example. Now, we’re emerging into an era where the world is the competitive landscape and raw material is increasingly accounted for. The game changes. It’s not enough to own the supply; it’s time to change the dependency. And this is where Sustainability comes in.

It’s all about definition – and the differentiation, competitive advantage that Sustainability can deliver on several levels. It’s why the client and provider community has so much to do and so much opportunity ahead. The fundamental reason why things are changing is the markedly growing perception and understanding about what Sustainability actually is, what it should deliver – and how critical that is to both the present and future competitive state of most businesses. So let’s recap for a second…

Along with a long list of other outcomes & benefits, Sustainability should enable the organization to achieve the following critical goals – each of which has clear, quantifiable, commercial value – not the fluffy stuff you may have heard about:

1. Clear, differentiating competitive advantage in a global marketplace for goods and services
2. Material, quantifiable cost and risk reductions – delivered by data tools to manage cost drivers such as energy
3. Break-throughs in operating efficiency & a new level of engagement with both internal employee and external stakeholder audiences

To date, aside being “green”, many have only really looked at the compliance aspects. Grab the data, throw it into a report. If you’re only looking at the compliance issue, that’s fine. You’re in good company. Perhaps 75-85% of companies will address this, for now, simply as a compliance issue with some modest benefits. But that’s not to say that the appetite for more won’t grow.

It’s the 15-25% of companies, especially the major enterprises and household brands, that will take Sustainability to the transformative level, leveraging information tools and behavioral science – given the scale and complexity of their organizations and the opportunity to benefit from this change in approach.

2011 will be the year of the supply chain on both a corporate and macro global level. The response to the supply chain issue reflects the strategy of the organization toward self-preservation and growth in an era of potential uncertainty. Those that move swiftly and with confidence will, in this writer’s view, garner the benefits.

 

The Jerry Maguire Effect on Corporate Sustainability in ’11. Show Me the Money.

by

David Kinnear, Expert on Global Sourcing & Sustainability; Founder & Chair Elect, The Global Sourcing Council – New York

You’ve heard them a thousand times – so here they are again; those priceless lines:

Jerry Maguire: I’m ready.
Rod Tidwell: I wanna make sure you’re ready, brother. Here it is: Show me the money. Oh-ho-ho! SHOW! ME! THE! MONEY! A-ha-ha! Jerry, doesn’t it make you feel good just to say that! Say it with me one time, Jerry.
Jerry Maguire: Show you the money.
Rod Tidwell: Oh, no, no. You can do better than that, Jerry! I want you to say it with you, with meaning, brother! Hey, I got Bob Sugar on the other line; I bet you he can say it!
Jerry Maguire: Yeah, yeah, no, no, no. Show you the money.
Rod Tidwell: No! Not show you! Show me the money!
Jerry Maguire: Show me the money!
Rod Tidwell: Yeah! Louder!
Jerry Maguire: Show me the money!

The delivery of these lines in the Jerry Maguire movie was arguably flawless. It was an overnight movie moment. But, just as it was funny, it had special significance in the storyline. It was at the heart of what made the difference for Rod Tidwell’s character. Flawed or not, their relationship had to make money.

The same is true of Sustainability and the business of Sustainability.

To get sustainability is to get that it does – and must – make money for organizations that commit to it. It’s far more than just filing a report and being green. Just like Maguire, government and the industry may have thought it was ready. But now it must commit. Organizations need to see savings, efficiencies, money saved and money made. As much as organizations may seek to be green, there’s something even more compelling about being fiscally smart and operationally efficient, developing new lean processes that generate next-generation products to compete successfully on a global stage. Who doesn’t like saving & making money..? That’s a healthy recipe for job creation also.

My view is we’ll see this realization in 2011.

Early evidence suggests this. And the impact of this outlook and activity will indeed be significant. As we enter 2011, there’s a growing awareness of Sustainability as a catalyst for change among many organizations. The move beyond just being green – to being smart.

Sustainability. Are you ready? Show us the money!