Category Archives: Coaching

Finding Careers in #FinTech

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Through the many meetup events I attend around Melbourne, people often ask me for career advice on which FinTech startup to join or follow. In response, I try to summarise where I see the current state of the sector, and clarify where they see a role for themselves – information I am happy to share here. I should preface my remarks by stating upfront that I am not a qualified career adviser (but I can refer you to people who are).

First, in choosing to make a career move to FinTech (or any other startup venture), it’s important to know whether you are looking for a similar role within a new business, or making a move into a new area such as product management, UX, content development or coding. Assuming you have acquired the necessary technical skills to transition into a new role, you still need to work out what your personal fit will be in a startup environment. Alternatively, you must demonstrate an ability to apply your knowledge and experience to the benefit of the new business, and a willingness to learn on the job (and perhaps even in your own time, and at your own expense). Accountants who can write code might be rare, but someone with a finance background and who is proficient in writing spreadsheet macros may have a better chance of transitioning into coding if they can build on this core expertise (e.g., helping to develop algorithms for decision-making tools such as stock-screening applications).

Second, FinTech within Australia is still largely based on P2P lending (including SME), payment solutions, banking apps and price comparison platforms, with some developments in financial planning (“robo advice”, stock tracking, portfolio management). Oh, and cryptocurrency, although since CoinJar relocated to London, this seems to have gone quiet…. While there are some B2B FinTech startups (e.g., Moula, Bluedot), they are still in the minority, so the current opportunities are mainly going to be within B2C solutions, or those playing in two-sided markets. This dynamic will also influence your decision.

Thirdly, everything we are seeing points to exponential growth in mobile banking, payments and financial services, but each vertical is taking a different approach because of their respective regulatory frameworks, transaction models tied to technology platforms and commercial processes, and the underlying lack of a true “single view” of customers. For example, within the next 10 years, 80% of new superannuation accounts will come via mobile engagement – which is why we are seeing a growing number of industry funds targeting a younger audience, aligning with “lifestyle” choices, and bundling financial planning and advice services. Rather than “big data” dumps, these super funds need demographic and psychographic data to support their digital engagement strategies.

Fourthly, FinTech is obviously important, but it can no longer simply play on disruption – technology is the enabler, and partnering is the way forward. If you have a track record in bringing parties together to collaborate, to form joint ventures, or to engage in any sort of co-branding exercise, then you will find opportunities emerging all the time. As discussed at a recent FinTech event, even large banks are realising the need to partner and collaborate on new technology, especially when it’s not part of the bank’s core expertise. However, as one superannuation fund director told me, it’s also challenging for large organisations to outsource part of their technology to smaller companies because they are giving someone else custody of their brand.

Finally, it’s difficult to predict what the FinTech jobs of the future will be (just as 10-15 years ago, roles in content marketing, social media and SEO hadn’t been thought of). A simple principle that has helped me navigate a zig-zag career path (to transition from the public sector into large corporations, and from full-time roles into a portfolio career) has been knowing my transferable skills at all times, and being aware of the need to replace and refresh them as required.

Next week: What I did on my holidays…

Getting Stuck – and how to deal with it

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We’ve all witnessed (or even experienced) those moments when a speaker or presenter gets stuck. They stumble over their material, they offer an inappropriate response to a tricky question, or they simply go off topic and stray into verbal quicksand. And although they realise they are in difficulty, they carry on regardless, only to wade deeper and deeper into the mire. Some of our current political leaders know exactly how that feels…

Photo by Mark Roy - Licensed under Creative Commons

Photo by Mark Roy – Licensed under Creative Commons

In my experience, many small business owners do the same thing when they get stuck. They carry on doing the same as they’ve always done, even though they know they need to change course, take another approach, or try a different tactic. Which is where someone like me comes to the rescue. As a consultant, I can bring an objective, external and independent perspective that can help clients navigate away from the problem, and steer them back onto the right track.

The Inflexion Point

The typical scenario is that the business is faltering. Most often it’s about sales and business development – either not enough new customers, or too few of the “right” customers (and too many of the “wrong” ones). Sometimes it’s about an aspect of their strategy that isn’t working. It could be a problem with their operations, such as workflow, resourcing or IT systems. Or it might be that they have lost their way and are facing some sort of external challenge. Or maybe there is a disconnect between the products and services that they offer, and what their customers actually need. Or it could be a need to recast their financial information to get a better idea of how the business is really tracking.

Whatever the issue, the common feature is a point of inflexion – the business is either stuck, has hit a plateau, or come to a fork in the road.

So, how do they get help?

The 3-Step Recovery Program

First, the client has to realise that doing the same thing won’t work, doing nothing is not an option, and they have to be open to the idea of change. They recognise that bringing in some external help will relieve the log jam (even though at this stage, they don’t know what form that help will take, or where it will come from).

Second, they do some basic research, or get a referral from their networks, on where they can get help. Much of my work comes via word-of-mouth and personal contacts, and in large part this is due to the need for trust in any consulting relationship. Sometimes, a prospective client has liked something they read in my blog, or heard something in our conversation that has clicked with their own needs. There has to be a connection or match with what the business needs, and what someone like me can offer. It’s a bit like finding a GP, financial planner or personal trainer – there has to be a fit.

Third, they are able to define a specific problem that needs addressing, or at least prioritize the issues. This requires some reflection, self-awareness, and willingness to have their assumptions challenged. There is a need for honesty, and even vulnerability, if the intervention is going to succeed.

Helping clients get back on track

I will say upfront that my services are not suited to everyone. If your business is running like a well-oiled machine, I probably can’t add much value, unless you are looking to improve an area of your operations, or embark on a new initiative where you need help in getting it off the ground. Alternatively, I may be able to help if you simply want to tap into some external perspectives to challenge your current thinking, or if you require some specific expertise that draws on my knowledge and experience. Otherwise, my role is to help clients get free of what is bogging them down.

One of my clients recently said that working with me felt like “keyhole” surgery, rather than undergoing open heart surgery. I think I know what he means, and that he meant it as a compliment….. In my experience tackling “the whole” is not always practical. Rather, zooming in on a particular aspect of the business allows for incremental change, that if applied appropriately, can have a multiplier effect. Such an approach is hopefully less disruptive, and therefore less threatening, to the existing business.

As part of my consulting work, I tend to break the business down into its component parts, look at the business model, review the revenue streams, and analyse the workflow, both internal operations and customer-facing services. For example, clients often have a slightly misplaced perception of where/how they add customer value – so, if they spend a lot of time on a particular task or activity, they naturally assume that this should form the greater part of what their customers pay for. Whereas in reality, the customers may value something else the business does, but the business has not realised that value.

It’s always important to encourage clients to develop an action plan, with specific goals, responsibilities and timelines. I’m not talking about a 50-page business plan, but a more manageable working document for the next 6, 12 or 18 months (depending on their circumstances). A key outcome of this is a list of priorities, plus agreement on which activities to wind-down or discontinue. Despite limited resources, businesses often make the mistake of trying to continue doing everything they’ve always done, plus all the new stuff – the law of physics suggests that something has to give, so they need to stop doing things that are no longer relevant, or are no longer working.

Making a Difference

When it comes to more direct business coaching, I know from the client feedback I receive that the insights I offer and the way I reframe their situation are as valuable as a re-engineered business plan. By analysing the problem, taking it apart and putting it back together again, it allows me to share my observations and offer fresh thinking – which is sometimes all the client may need to get back on track.

If you feel your own business could use some external assistance in getting back on track, or if you think you may be stuck as to what to do next, please get in touch via this blog.

Next week: The David and Goliath of #Startup #Pitching

How to work with #Boards

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At some point in your career, you will find yourself working with Boards. In particular, if you are appointed to a CEO role, or if you are part of an executive team, there is an expectation or requirement that you will attend regular Board meetings, and you will need to develop the necessary skills and expertise to navigate the process.

The_SPECTRE_heirarchy

Board meetings don’t have to be as daunting as this… (The SPECTRE hierarchy as portrayed in “Thunderball”)

The following comments were crowdsourced from a group of senior executives and non-executive directors who were asked to share their views on how someone in a senior management role should prepare prior to presenting at a Board meeting – in particular, where there may have been a change of Chairman, a new CEO or new appointments to the Board. It’s designed to be part “how to” guide, part coaching tool, and part insight drawn from actual experience – and in some cases, the comments answer the question “what I wish I’d known before I stepped into the Board meeting…”.

The comments have been divided into three sections:

  1. Governance
  2. Relationship between the Chairman and CEO
  3. Presenting to Boards

1. Governance

How are Board meetings run?

1) From experience, working with a Board really depends on how the Chairman likes to run things. The Chairman is usually assisted by the Company Secretary (or a Secretariat), or other legal officer of the organisation, who may also form part of the senior management team.

2) The Secretary is responsible for making sure everything runs smoothly for the Board members. In addition to supporting the Chairman, the Secretary schedules the Board meeting, circulates the relevant notices and papers in advance, prepares the meeting agenda, and records the minutes. (In some organisations the CEO will be as involved in preparing for a Board meeting as the Secretary.) The Secretary will also assist the Chairman in ensuring the meeting is conducted in an orderly fashion, and in accordance with the company constitution and any other rules governing meetings.

3) If you have been asked to attend a Board meeting to report on an important project or to present a new initiative, it should be noted in the agenda. Depending upon protocol, you may only be invited into the room at the designated point in the agenda. You may find that you don’t have a vote at the meeting (and in general, your voice should only be heard when your contribution is actively invited!) and you may be asked to leave again before a formal vote is taken.

4) A good Chairman will invite comments from all attendees at the Board meeting, especially where external or specific expertise is being sought. Although other Board members will want to ask questions of senior managers and anyone else presenting, it will depend on etiquette, and they may need to direct these questions via the Chairman.

Board Induction

5) The CEO and the executive team can help the Chairman in the induction of new Board members, something that the Secretary should be able to facilitate. For new Directors, it may not be easy to understand the organisation, or what is expected of them, or what their contribution should be.

6) The transition will be harder for Board members coming from the private sector into the government sector, or vice versa. A Board Induction Manual is an invaluable tool for a new Board member to familiarise themselves with the organisation. The CEO should also ask their managers to stand in the Directors’ shoes for a minute to work out what the new Board member may need (and not assume they already have everything they require.)

7) If a relationship can be built through the induction process, then it should be easier to understand where new Board members are coming from, identify their key areas of knowledge or expertise, know what their risk appetite is and anticipate where their interests will lie.

Board Renewal – managing change

8) Most Board members are elected or appointed for fixed terms, ensuring that there is a renewal process. In some cases, there will be a full spill, and the formation of a totally new Board.

9) One of the understandable traps that the CEO and management team may fall into is assuming they have to maintain the status quo – which may or may not meet the needs and expectations of the new Chairman and a new or significantly changed Board.

10) In those circumstances, the CEO and Chairman should sit down in advance and set out their respective expectations/needs/preferences, including an early feedback process soon after the first few meetings to get things off to a firm footing and to avoid any festering dissatisfaction.

2. The relationship between Chairman and CEO

Boards vs Management

11) The pivotal connection between a Board and the Management team is the relationship between the Chairman and CEO. There has to be a level of trust, rapport and mutual respect, otherwise the organisation risks being dysfunctional.

12) A common view is that Boards are expected to be “eyes on, hands off” – that is, they are there to view what is going on, but not to get involved with operational matters which are the responsibility of Management.

13) Equally, the Board is responsible for setting and directing the overall strategy, and holding the CEO and executive team accountable for achieving the agreed objectives.

Who can help you?

14) The CEO has a key role in facilitating the interaction between the Board and senior managers. If you don’t have direct access to the CEO in advance, then find out if your own manager or another member of the senior executive team can help forge an introduction. While the term “patronage” might seem outdated, your attendance at and participation in the Board meeting will usually depend on someone advocating on your behalf, or lobbying for you to be there in person.

15) If managers are attending a Board meeting to present or speak on a particular topic, then this should be noted in the agenda or notice of meeting. The CEO will also need to work with managers to ensure they are prepared and “worded up” on what they will be presenting. Getting the balance right between reporting facts, offering opinions, making a recommendation or seeking a decision is important, especially on a packed agenda!

16) As mentioned above, the role of Secretary is also very important in getting people prepared to engage with the Board – not just deciding the agenda but also briefing presenters on what to expect, and ensuring papers are not too long, cover the issues and have clear recommendations for a decision.

17) The Secretary also wields considerable influence as they get to minute the decision (which is not always as clear as it should be). Managers who are not Board members should receive a copy of the relevant minutes of any meeting they have attended.

Lobbying and briefings in advance

18) For some big issues you may be asked to present on, briefing and lobbying often happens outside of the Board meeting. You shouldn’t assume that a Board will make a good decision when all they get is a Board paper and a few days’ notice – especially around complex issues. Offering advance briefings to Board members (especially new directors) can help them get up to speed on major issues.

19) Even though your item is on the agenda, you should assume that the meeting will not have sufficient time to allow a full presentation or discussion of the issues. Hence the importance of advance briefings, especially where you are seeking a decision based on your recommendation.

3. Presenting to the Board

Why are you there?

20) Maybe you’ve been asked to make a presentation on a new strategic initiative, or to provide an update on a major project. Or perhaps it’s part of a regular program where managers and team leaders get to interact with the Board members. Whatever the case, you should establish in advance why you have been invited to attend, as this will frame the context for your contribution to the meeting.

Preparation, Preparation, Preparation

21) As with any presentation or public speaking, be comfortable with your material and try to know your audience in advance. Find out who will be attending, and if possible, identify if they have previously expressed any views on the topic under discussion. Equally, Board members should be provided with a brief bio of new managers presenting at the meeting, especially if it’s their first time to attend.

22) If you have also had an opportunity to provide Board members with an advance briefing, the preparation will help you to focus on the important and critical information, so you can establish the level of knowledge in the room and make sure the discussion does not waste valuable time going over the known facts or revisiting agreed positions.

23) While your expertise will be sought, more importantly, if you are seeking a decision of the Board, it is essential to be clear about the decision relates to, and you should offer a specific recommendation or preferred course of action.

Protocols and Etiquette

24) As mentioned above, Board meetings will be conducted in accordance with the constitution or other rules of the organisation. Meetings will also follow the Chairman’s preferences, with the support of the Company Secretary.

25) There are some basic “Do’s and Don’ts” you should consider, especially if you are attending or presenting for the first time:

  • Board members are not your friend – they have a governance role to perform
  • The CEO owns the relationship with the Board, and must know and in most cases approve all interactions between Board members and managers (as a manager, you should notify the CEO of any unsolicited approaches you receive from Directors, or in exceptional circumstances, you should notify the Chairman)
  • In the meeting, the Chairman of the Board (or Sub-committee meeting) is usually addressed as Mr Chairman or Madam Chair (but check with the CEO or Company Secretary in advance!)
  • Boards require a structured agenda, well-thought out papers, clear recommendations, proper minutes and agreed actions or decisions (make sure you are clear about what you are asking for)
  • Board meetings are formal affairs, and while social banter is fine before and after the meeting, keep it business-like during the meeting itself

26) The Australian Institute of Company Directors, the Governance Institute of Australia, other professional bodies as well as NFP organisations (e.g., Leadership Victoria) often run courses and publish articles on these topics.

Learning experience

27) Whether you are General Manager reporting to a Committee of Management or a team leader presenting to senior executives, these comments should provide are some useful ground rules for how to prepare, what to expect, and how to conduct yourself at those meetings. In any event, the experience should be seen as a learning opportunity, and a chance to gain some professional exposure – but it’s not a license to show-off or grandstand!

Note:

This article incorporates comments from my former colleagues Fabienne Michaux, Marianne Matin, Louise Griffiths and Carol Benson, who were each contributing in a personal capacity.

Next week: Digital Adaptors

The changing economic relationship of #work

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Whether or not we are comfortable with the notion, the work we do can come to define us. In some societies, family names are derived from our forebears’ occupations or professions (Butcher, Baker, Smith, Cartwright, etc.).  The rapid shift to the knowledge economy is challenging our traditional economic relationship with work, and what it means to be an employer or employee. For example, the idea of a “job for life” within the same industry, let alone the same company, is no longer the norm.

Workers leave Waterhouse Mill, Bollington, Cheshire, UK (1959)

Workers leave Waterhouse Mill, Bollington, Cheshire, UK (1959)

“Welcome to the working week”

This past week I have been listening to the latest thinking on the nature of “work”, from the perspective of technology and its impact on task-based activity (courtesy of Donald Farmer from Qlik), and from the perspective of organizational culture and its importance in motivating knowledge workers (courtesy of Didier Elzinga of Culture Amp). If you are not familiar with either of these thought leaders, than I thoroughly recommend them to anyone interested in organisational behaviour, career development, business transformation and lifelong learning.

Technology and changing demographics require each of us to reframe our ideas about work as a homogenous lifelong activity, because the economic bargain between employer and employee is no longer as simple as a 40 hour working week and a regular paycheck.

Reframing “employment” #1:

By 2020, average job tenure will be 3 years, and around one-third of the workforce will be employed on a casual basis (part-time, temporary, contractor, freelance etc.). The proliferation of services such as Freelancer, O-desk/Elance, Sidekicker, 99designs, Envato and Fiverr are evidence of this shift from employee to supplier.

“The Dignity of Labour, Pts. 1-4”

Around 200 years ago, at the height of the Industrial Revolution in England, the typical worker was employed in a factory or mill, lived in housing owned by the employer, and was paid some or all of his wages in the form of vouchers that could only be spent in shops also owned by the employer. A hundred years later, my grandparent’s generation were still exposed to the practices of indentured labour (“master and servant”) or the idea of “going into service” (as domestic workers). My father’s generation is certainly the last in my family to have had a 30-year salaried career within the same organisation.

So, in just a few generations we have transitioned from the idea that employment provides for all our needs, to the increasingly common perception that every worker is in fact a micro-business, supplying their labour to multiple employers or clients via fee-based services. (The potential irony here is that in a world of freelancers and contractors, the time-based or task-linked approach to employment pricing starts to resemble Marx’s idea of the labour theory of value…..).

“Cottage Industry”

It’s also interesting to note that before workers were employed in factories, and as agrarian labourers transitioned from toiling in the fields to working in manufacturing production, they were hired on piece-rates, working from home in the form of (literally) cottage industries. Of course, this was not exactly self-employment, as their tools (looms and lathes) were probably provided by their “client” who also set the prices (for raw materials and finished goods), had exclusive rights over the finished goods, and determined the number of units required. But, within the constraints of meeting target numbers and societal norms such as Sunday observance and customary holidays, these labourers were “free” to work for as many hours as they wanted, and at times that suited them. So, like many contemporary issues we still seem to be struggling with, flexible working arrangements are nothing new….

“Work is a four-letter-word”

Aside from connecting with your purpose, understanding your personal value proposition and knowing what you are “worth” in the market, one of the biggest challenges I see for employees/workers is the paradox between shorter careers (witness the increasing unemployment rates among older workers) and longer working lives.

Thanks to medical advances, we are living longer, but there is a mismatch between workforce participation rates and increased welfare and social security costs, leading to continuous policy tinkering on pensions, tax and superannuation.

As individuals, we need to build up sufficient financial assets to sustain us both post-retirement, and during erratic periods of personal income. As “free agents”, we have to learn to live with:

  • increasing job insecurity (companies continuously de-layering and restructuring)
  • significantly different career paths (compared to personal aspiration/expectation)
  • rapidly changing working environments (hot-desking, co-working spaces)
  • greater self-reliance (“bring your own device”) and
  • heightened resilience (“shape up or ship out”)

“Opportunity”

The good news is that the model of portfolio, portmanteau and protean careers means that new jobs and new forms of working are emerging all the time – and with personal resilience etc., come flexibility, adaptability, knowledge sharing, skills transfer and new opportunities for personal development, along with self-defined roles, self-directed learning, self-managed performance and self-determined accountability.

We are no longer defined just by what we do, but how/where/why/when we do it.

Reframing “employment” #2:

A friend recently asked me for some advice on how to transition from “employment” to “self-employment”. She has regular part-time work with one organisation (which she views as employment), but wants to find more of her “own work” with other clients. She does not want to give up the part-time gig just yet, but feels that it is preventing her from growing her own business. So I suggested that she should see herself as being self-employed already, and that the part-time work is her first client, allowing her to build a portfolio of new business.  

“Earn enough for us”

What does this brave new world of work mean for employers – in particular, what is the new economic bargain organisations need to have with their workers?

If companies are no longer willing/able to offer long-term, permanent employment opportunities, how do they manage their labour requirements, attract and retain the best talent (when they need it), and engage highly motivated and skilled people?

First and foremost, the idea of workplace flexibility has to be truly reciprocal – but obviously aligned and clearly articulated – to be of any real benefit to both parties.

Second, if employers are increasingly reliant on freelance resources, this does not obviate their obligations to invest in their workforce – whether that includes benefits, training or rewards and recognition – the same as they would have in their employees.

Third, companies will need to do an even better job of attracting and retaining the skills and knowledge they require – and be willing to offer different kinds of incentives (e.g., opportunities to work on engaging projects and to collaborate with interesting people) beyond basic pay and conditions.

Fourth, employers may have to adjust to the idea of “syndicating” their talent resources (“it’s the shared economy, stupid”) not just within their own workplaces, but across their client organisations, suppliers, service providers and other collaborators – sometimes, even their competitors. Employers can no longer expect to have a total monopoly on their workforce talents, unless they make it really interesting, financially or otherwise…

Fifth, if companies continue to espouse the message that “our people are our best asset” then they need to update their asset management model to demonstrate they mean what they say. For example, more needs to be done in helping employees to retrain and up-skill (for jobs and roles that haven’t yet been thought of), even if that may mean employees are more likely to move on. The amount of goodwill that this will create in the wider community cannot be underestimated.

Reframing “employment” #3:

Employers and HR managers are re-assessing how they evaluate employee contribution. It’s not simply a matter of how “hard” you work (e.g., the hours you put in, or the sales you make). Companies want to know what else you can do for them, how you collaborate, do you know how to ask for help, and are you willing to bring what you know to the role?  

Finally, rather like their employees, employers are increasingly expected to connect with their purpose and to align their values with their objectives. New entrants to the workplace are better informed about the organisations they work for and want to work for, because free agents know they have a choice.

Next week: How to work with Boards