Connect with us

People

#ScaleStrategy Q&A: Managing the Growth Bandwidth

Tech veteran Dean Hopkins on what it takes to scaleup — and down — in both startups and enterprise organizations

Published

on

Dean Hopkins, OneEleven
Dean Hopkins, Chief Growth Officer at OneEleven. - Photo by DX Journal
Share this:

#ScaleStrategy is produced by DX Journal and OneEleven. This editorial series delivers insights, advice, and practical recommendations to innovative and disruptive entrepreneurs and intrapreneurs. Read the first part of the interview with Dean Hopkins here. 

While working at McKinsey in the 1990s, tech veteran Dean Hopkins first stepped into the world of the internet.

“This was 1993. No internet existed as we know it,” says Hopkins, now the Chief Growth Officer at OneEleven, recalling how he discovered the work of Marc Andreessen. “At that point in time, he was demonstrating his early browser concept and talking about how the future of the internet was going to be huge. I caught the bug and decided I would leave McKinsey and start my first company called Cyberplex.”

After a bit of a bumpy start, Cyberplex scaled quickly. “Cyberplex tripled every year and grew to 500 people with $50 million in revenue and $975 million market cap,” he says.

Then 2001 hit. “That was the peak of the cycle followed by a trough. It was the biggest learning experience of my career. I had to descale the company to survive,” he says. Over seven quarters, Hopkins took the team from 500 to 50 and brought the company back to profitability. He then  transitioned Cyberplex to new leadership and moved on to his next challenge.

For the next 12 years, Hopkins worked as a management consultant with his own boutique firm that was focused on driving global transformation initiatives for companies such as Thomson Reuters and the Ontario Teachers’ Pension Plan Board.

With both entrepreneurial and intrapreneurial expertise, Hopkins is now applying his global growth skills to transform OneEleven’s unique scaleup model into a worldwide Scale-as-a-Service model.

Read what Hopkins has in store for OneEleven’s global growth.

We recently spoke to Hopkins about tough lessons he learned at  Cyberplex, how enterprise growth is different than startup growth, and how he’s applying these lessons to expanding the OneEleven model globally.

DX Journal: When you think back to your time when Cyberplex hit its inflection point, what did you learn about scaling?

Dean Hopkins: Culture and people were the two things that allowed us to handle both the steep trajectory both up and down. Those things got us through the crazy knee in the curve and probably more importantly, helped us when we needed to descale.

Attracting amazing people that became my partners in growth was the reason we were able to scale. I couldn’t have done it alone.

Secondly, we built a culture that was accustomed to scaling and had an appetite for growth. Our culture was about resilience, and scaling, and picking yourself up and dusting yourself off. We made it okay to make mistakes, then march on.

DX Journal: Why people and culture? Why isn’t it all of the other things?

Hopkins: It’s a great question. In a culture where the decision-making takes a long, protracted time, where risk-taking isn’t there, and where people have to analyze things to death before they can make a decision, scaling is impossible. People would crumble under the weight of scale because the number of things coming at them.

To scale, it’s important to trust that people are all working toward the same goals and are empowered to make decisions.

That’s where culture comes in. It becomes a culture that can tolerate the bandwidth of needs that come with growth. If I didn’t have both of those things — good people ready to make decisions and a culture where I allow them to do it — I would have failed to scale.

The other things like technology, offices, infrastructure, are secondary when you distill it down. Companies that are successful across different geographies, industries, offices, become that way through empowering their people and building a culture that tolerates growth.

DX Journal: When you moved out of Cyberplex and into Thomson Reuters and you were managing a large-scale transformation. How did you manage scale within an environment as big and complex as Thomson Reuters?

Hopkins: The first thing I noticed was pace slowed down dramatically. What used to take me a week or a month now took 6 to 8 or 12 months. Large organizations only have the capacity for so much change. Once I did get the ship to turn in a new direction, I moved a lot of people, revenue, cost, and dollars. I had to be patient enough to let it take hold. The experience was much more of a marathon where I had to think multiple chess moves ahead and let the game play out.

DX Journal: How do you know when to modify your approach or give up when dealing with  transformation in a large organization?

Hopkins: I didn’t do a great job of it at the beginning. I pushed an entrepreneurial agenda at an entrepreneurial pace, and very quickly ran headlong into blockers. I had to adapt and use an experimentation model. I tried different levels of throttle until I got to a point where the organization was willing to accept it. I learned to read the frustration on peoples’ faces saying “okay, no more, Dean. I can’t take any more of this” and built relationships with people where they were able to tell me that.

I was able to adapt and adjust my own style to better reflect the environment. Then over 12 years, I gradually increased the tolerance for risk-taking and for change within the organization. I would work with specific people to help them increase their ability to drive change. What was first gear early on, became second and third gear closer to the end of my tenure. Ultimately, the organization became much more comfortable with making change at a higher rate.

DX Journal: What’s a scale lesson you learned the hard way?

Hopkins: I learned to hire slowly and fire quickly based on fit. One rotten apple really can spoil the bunch. As part of this, I learned to listen very closely to my people. The people on my team knew about someone that didn’t fit long before I did. By listening, and taking quick action, I saw the immediate positive impact on culture.

Finally, I learned the value of getting out of the way. By fully trusting people, providing them good direction and support when needed, it activates them to reach their full potential. All of these were learned through many failed attempts, and I have the scar tissue to prove it.

DX Journal: What signals do you use to know you’re on the right path when you start to scale something and you’re trying to measure if it’s working?

Hopkins: One of the reasons we were able to survive at Cyberplex — both the growth and the decline — is that we had very good leading indicators of the business. We had invested heavily to try and understand what our funnel looked like, what our planned capacity was, and we had the metrics dialed in. Every month and every quarter, we constantly refined our ratios so we had a really good sense of what was coming. When things started falling off the cliff, we trusted our instruments and started acting accordingly.

Read more about Dean Hopkin’s plans for expanding OneEleven globally.

 

Share this:

People

What talent factors matter the most in a digital transformation?

Revisiting 30+ digital transformations, McKinsey found several core themes when it comes to talent and their success.

Published

on

Tech talent
Share this:

Digital transformations (DX) can be as simple as the creation of an internal digital and advanced-analytics (DnA) system or as complex as an enterprise-wide technological shift. While these shifts have changed the way organizations operate, they’ve also had a big effect on how they plan to do so in the future. At the end of the day, the success of DX efforts largely comes down to people.

With this reality in mind, researchers at McKinsey Digital recently undertook a review of 30 large-scale digital transformations to better understand the dynamics at play behind the process, and ultimately what talent and tech decisions have the biggest impact on DX success. 

Through this research, several key insights emerged.

Fill senior roles with the right digital leaders

One of the most glaring points McKinsey made in its review was the need for organizations to prioritize their hiring of digital-minded leaders. The high performance of a transformation project often rests on the shoulders of these individuals, even more so than on the technologies they use.

In fact, the research found that up to 50% of a given group or unit’s performance variability could be attributed to the individual leaders driving the transformation. Therefore, it’s important for organizations to invest in hiring and nurturing these data scientists, digital strategists, engineers, and other digital-focused leaders for their digital transformations to be successful.

But in that same vein, McKinsey notes that companies should be wary of rushing into hiring in  these roles. It explains that organizations risk the overall reputation and viability of their programs if they attempt to take shortcuts with early hiring, sometimes delaying progress by a year or more.

Invest in digital learning and development programs

Another key area of impact researchers highlighted was learning and development, and how investments in such programs for DnA rollouts could improve the success of digital transformations. The McKinsey team noted that both on-the-job training and structured learning programs can often do more to improve the success of a transformation than just hiring in new talent.

Furthermore, the review indicated that companies who reward higher skill levels with better compensation were much more likely to be successful in their digital transformations than those who did not. It cited data gathered from leading organizations who comparatively rewarded higher skill levels with better compensation (67%), greater benefits (64%) and more responsibility (78%) than laggard companies who only managed 41%, 23% and 58% respectively.

Similarly, McKinsey emphasized one important fact: digital talent can often be tapped within the organization. Since not all digital products are going to require expert-level skills, upskilling non-digital talent, they found, could potentially cover up to 70% of an organization’s digital needs. Just make sure that you’re being realistic about who can be upskilled and the time commitment. 

And while upskilling is important, organizations need to balance immediate results with long-term capability. Contractors can help fill gaps in the early days of a digital transformation, but need to come with a strong transition plan. 

Take another look at value propositions

McKinsey also discussed the topic of organizational value propositions and their power to influence the quality of talent businesses bring in. It noted that organizations, especially those undergoing digital transformations, should consider the value they offer beyond traditional total-pay packages when it comes to attracting top digital talent.

Including things such as forward-thinking culture, career growth opportunities, and attractive work environments can go a long way in luring the best and brightest digital minds. McKinsey highlighted that companies who have thought hard about their organizational culture and value proposition enjoy a distinct advantage over those who do not, as the quality of digital professionals populating these companies is often much higher.

Share this:
Continue Reading

News desk

U.S. proposes redefining when gig workers are employees

U.S. labor officials proposed a rule change that could make it easier for gig workers to be entitled to benefits.

Published

on

By

A rule change proposed by US labor officials that could make it easier for contract workers to be reclassified as employees shook investor confidence in the future of "gig economy" firms such as Uber and Lyft
Share this:

United States labor officials proposed a rule change Tuesday that could make it easier for gig workers such as Uber drivers to be reclassified as employees entitled to benefits.

The move by President Joe Biden’s Labor Department would lower a bar set by his predecessor regarding when someone is considered an employee instead of a contract worker.

It also comes as “gig economy” companies from rideshare platforms to food delivery services strive to maintain the status quo.

The new formula includes factors such as how long a person works for a company and the degree of control over the worker, as well as whether what they do is “integral” to a business, according to the proposed rule.

“We believe the proposed regulation would better protect workers from misclassification while at the same time providing a consistent approach for those businesses that engage or wish to engage with independent contractors,” Jessica Looman of the US Department of Labor said at a press briefing.

Being classified as employees would entitle workers to sick leave, overtime, medical coverage and other benefits, driving up costs for companies such as Uber, Lyft and DoorDash that rely on gig workers.

The proposed rule change is subject to a 45-day public comment period, meaning there is no immediate impact, but share prices took a hit on the news.

Uber and Lyft shares ended the formal day down more than 10 percent, while DoorDash was down nearly six percent.

“It’s a clear blow to the gig economy and a near-term concern for the likes of Uber and Lyft,” despite uncertainty about how the new rule might be interpreted across the country, Wedbush analyst Dan Ives said in a note to investors.

“With ride sharing and other gig economy players depending on the contractor business model, a classification to employees would essentially throw the business model upside down and cause some major structural changes if this holds.”

Uber and Lyft have consistently argued that their drivers want independence, provided benefits are added to the mix.

In California, the cradle of the gig economy, voters in late 2020 approved a referendum backed by firms such as Uber that preserved keeping drivers classified as independent contractors.

The measure effectively overturned a state law that would require the ride-hailing firms and others to reclassify their drivers and provide employee benefits.

The vote came after a contentious campaign with labor groups claiming the initiative would erode worker rights and benefits, and with backers arguing for a new, flexible economic model.

Share this:
Continue Reading

People

How can organizations attract and retain IT talent?

Gartner has outlined three ways

Published

on

Woman in blue and black plaid using laptop computer
Share this:

One of the biggest stories in digital transformation right now? Attracting and retaining IT talent. 

According to Gartner, the labor market has tightened in the last two years. They report that:

  • 60% of HR leaders are “significantly concerned” about employee turnover.
  • 62% of candidates have explored a career change in the last year.
  • Nearly three-quarters of candidates who receive a job offer have at least one other offer on the table.

Amid stories from the ‘Great Resignation,’ workers in all industries are pushing for higher compensation, better benefits, and increased flexibility — and IT talent is no exception. In fact, Gartner’s Global Labor Market Survey found that compensation is the top driver for IT talent attraction and retention. According to a recent Gartner IT Compensation Increase Poll, 50% of organizations reported increasing the salaries of key employees after they received a separate job offer — all in a bid to retain this talent.

How can organizations effectively attract talent and, most importantly, retain these employees? Gartner has outlined three ways.

Make monitoring and raising pay competitiveness a priority

As Gartner explains, “In order to pinpoint where additional funding will be necessary to address pay gaps in the short term, work with your HR team to identify IT roles and skills areas facing higher attrition risk and recruitment challenges due to noncompetitive compensation.”

Limited resources? Prioritize roles in high-risk areas, they explain.

Build flexibility into IT compensation through variable pay programs

“One way to minimize locking in compensation adjustments as long-term fixed costs,” explains  Lily Mok, Gartner VP Analyst, “is to use variable pay components that can be adjusted or removed as talent needs and market conditions evolve.”

Examples of these include skills-based premium pay, a signing bonus (lump sum or split up), and retention bonuses (eg. during a major period of transition).

Make sure managers can have successful pay-related conversations

According to Gartner, there are three important elements needed to make sure these conversations are effective. 

First, never forget empathy — especially since finances are a very personal topic and can be a sensitive issue.

Second, make sure the compensation package’s value is clearly outlined and understood. This includes pay, bonuses, benefits, etc.

Finally, be transparent about the organization’s pay structure, and how pay rates are set. After all, there are many sites out there (eg. Glassdoor) that features self-reported public pay data. 

Share this:
Continue Reading

Featured