Connect with us

Business

How to build company culture in a scale-up

Culture is no small thing, and according to Virtual Gurus founder and CEO Bobbie Racette, communication — and even getting uncomfortable — is key.

Published

on

Bobbie Racette
Share this:

Anyone can type out a vision, mission statement, and outline some core values. But Bobbie Racette, the founder and CEO of Virtual Gurus, took things one step further: she made sure it was posted at the entrance to the company’s office with messages of inclusion and acceptance. 

She says those messages are a central part of the company culture, which she sees as a shared belief in acceptance that unites the approximately 50 people working in the company’s headquarters.

But even with such a visible statement, she struggled to maintain a company-wide focus as the start-up grew and expanded. 

“Even though the pandemic was still 300 percent, year over growth, we broke internally,” said Racette. “Because our culture was just a mess.”

For Racette, it required her to realize she couldn’t just instill that culture and stress its importance to her leadership team, hoping it would trickle down. She couldn’t just put it on a wall. She had to model those beliefs and bring them directly to all of her employees. 

And she had to listen. 

So, what really is culture?

The struggle of building and maintaining culture through rapid growth isn’t rare. The start-up world is littered with companies that lost their way. 

Culture is no small thing. It’s the foundation of a business and helps guide decisions — from the big to the mundane. If the focus is sharp and the will is there, it will help guide who is hired and how they fit into the larger team. 

It’s not about what the office looks like, or free lunches and abundant snacks — the sort of perk-heavy, laid-back office that has come to be associated with tech startups. The atmosphere of a place is not the core of what it means to work there.

Finding and nurturing that core is particularly important for Racette and Virtual Gurus, which provides companies with remote workers on everything from social media to accounting, and focuses on providing employment for underrepresented communities. 

“I realized I had to pull back some of the perks and then push the values and I had to essentially retrain everybody to think, ‘wait, if I’m gonna get the perks, I gotta live with the mission, vision, and values, not the other way around,’” said Racette.

The culture she wanted at the company prioritizes inclusiveness, but also innovation, agility, and positivity. Racette realized it was critical to screen out those who didn’t buy in or could be toxic to the kind of workplace she needed for her company. 

Virtual Gurus’ purpose, goal, mission, and values

“I truly believe that in order to get comfortable, you have to get uncomfortable first. So our entire company had to go through an uncomfortable moment,” she said.

And those values she’s so determined to nurture are personal and hard-earned. 

“I have lived through the barriers of being an Indigenous woman, a queer Indigenous woman, who has tattoos and… can’t get a job,” she said at the recent mesh conference in Calgary. 

How do you maintain culture through growth or scale-up?

When Racette started the company in 2016, maintaining that culture was easy.

She was the only employee. 

Then came funding rounds and growth. More employees in the office, but also more and more virtual assistants — over 1,000 at last count — spread across North America. 

“You can run a company all day long, but when you’re scaling, you have to pivot left, right, and center all the time,” Racette told mesh conference attendees.

“And so when you pivot, you have to take your whole company and pivot with you, and when you’re doing that you have to keep the culture during that.”

Screening out those elements toxic to the culture at Virtual Gurus was an important step. Research has shown that toxic culture is a big driver of what’s been dubbed “the Great Resignation.”

Racette also followed the advice from organizations and other businesses when it comes to managing growth and culture — from hiring to setting targets and ensuring she is accountable for both change and cultural stability. 

Communication, she said in a recent interview, was key. 

“I send out weekly CEO updates by email, and then we’ll have all-hands meetings twice a month, and I host those,” said Racette. “So I’m very communicative about why and how the culture is changing.”

Central to that communication is allowing staff to offer feedback, listening closely to what they’re saying — and not being afraid of criticism. She now does what she calls a daily “lion hunt,” going through the office and checking in with employees.

She also says there has been an increased focus on all of the virtual assistants who form the backbone of the company, but who can’t be there in person for her walks around the office. The company has created a virtual hub to maintain those connections, providing incentives and perks, while also emphasizing the importance of the company values and mission. 

“We don’t just treat them like a number,” Racette said. 

But like those words written at the entrance to the company office, it takes more than spelling it out and carrying on. 

“You can talk about it all day long, it’s actioning it,” said Racette. “And that’s one thing I’ve noticed with us is we were talking about the culture, but we weren’t actually actioning it.”

And, of course, incentives work too. Racette says employee bonuses worth four to eight percent of their salary now hinge on whether they follow the company values.

How has work culture changed over time?

Contemporary workplaces, and certainly startups, are a different beast than the offices of old. They are nimble and often more flexible. And unlike many formal offices, there’s no dress code at Virtual Gurus.

But it’s also about how company’s measure and value work — something that can have a profound impact on culture. 

“I think it’s changed from being activity and action-driven to being more outcomes-focused,” said Racette. 

At her office, employees aren’t judged for showing up late, or engaging in more activities that don’t necessarily lead to the right kind of results. If it takes five hours for someone to do all their work, then so be it. 

Racette wants her staff to be accepting of those around them, and to be adaptable in the face of constant change. In order to get there, it only makes sense to put that same faith in her employees, leading down to nurture that all-important culture. 

“You can’t fix your culture or have a good culture unless people have a psychologically safe space to work,” she said.

Stepping off an elevator and seeing a wall plastered with good intentions is one thing, but walking into an office where employees are all committed to goals based on those shared values is another, more successful thing altogether. 

Share this:

Business

How has US wealth evolved since the 1980s?

Published

on

By

How do people allocate their wealth? The Wealth Enhancement Group analyzed data published by the Federal Reserve to answer this question.
Share this:

America’s economy has exploded since 1989.

Gross domestic product, which measures all of the goods and services produced in a year, grew from $9.9 trillion to $22.5 trillion from 1989 to 2023 (after accounting for inflation), according to the Bureau of Economic Analysis. This figure represents a massive increase in economic output.

This increased productivity has fed into a similarly significant increase in wealth. The Wealth Enhancement Group used data from the Federal Reserve to look at how the assets held by U.S. households has evolved over time.

Data shows that American households owned a combined $161 trillion in assets in the third quarter of 2023, up from $24 trillion in 1989. That makes for a roughly 570% increase, or 170% after adjusting for inflation.

After accounting for debt, such as mortgages, America’s total household net worth grew to $142 trillion, up from $20 trillion. Although the number is down by about 1% from its peak in the second quarter of 2022, it still reflects a dramatic increase over time.

The most valuable asset class the typical American family holds is real estate. Besides a significant drop during the 2000s subprime mortgage crisis and a brief dip following interest rate hikes in 2022, housing has been a reliable generator of wealth for the middle class.


Line chart showing the rise of household assets in the US between 1989 and 2023, which rose from $24 trillion to $161 trillion.

Wealth Enhancement Group

Household assets have skyrocketed since 1989

For Americans in the bottom half of the wealth distribution, housing made up 51% of their assets. Wealthier households, in contrast, tend to have higher shares of their savings in equities.

Households in the top 0.1% held 60% of their assets in shares of public and private companies in 2023. Meanwhile, households in the bottom half of wealth in the United States held only around 6% of assets in equities.

Yet, despite how much housing has grown in value, its ascent pales compared to the fastest-growing asset class: public equities.

Between 1989 and 2023, the value of public stocks held by American households grew by nearly 1,700%, rising from $2 trillion in value to $37 trillion. This trend, coupled with the fact that shares in companies are held disproportionately by the rich, has caused the share of American household assets held by the top 0.1% to increase from 8% to 12%.

A stacked bar chart showing the top 0.1% have most of their wealth in equities where housing makes up for 51% of the assets of people in the bottom half of wealth in the United States.

Wealth Enhancement Group

The wealthy tend to own shares in companies

Some economists argue that, in theory, the ratio of a country’s wealth to its economy, as measured by GDP, should be constant over time.

Yet, data from the Bureau of Economic Analysis and the Federal Reserve data shows that the ratio of the net worth of American households and nonprofit organizations to GDP rose from around 3.6 in the 1980s to 5.5 in the third quarter of 2023.

In 2022, YiLi Chien and Ashley Stewart, two researchers at the St. Louis Federal Reserve, offered a few theories to explain how this ratio has increased over time. They suggest that American companies might now have greater market power, allowing them to charge more. The authors also note that since the internet era, many of America’s biggest companies, such as Meta and Google, offer their services to consumers for free—while investors may value their economic contributions, they do not count for much in the GDP numbers.

However, assets are not net worth. The rich are more likely to own their homes outright. In the third quarter of 2023, households from the top 0.1% owned $1.83 trillion worth of real estate while owing just $70 billion in mortgages. In contrast, households in the bottom 50% of wealth owned $4.87 billion of real estate against $3 billion of housing debt.

Story editing by Ashleigh Graf. Copy editing by Kristen Wegrzyn.

This story originally appeared on Wealth Enhancement Group and was produced and
distributed in partnership with Stacker Studio.

Share this:
Continue Reading

Business

Deepfakes cause 30% of organizations to doubt biometrics, Gartner finds

A look at AI deepfakes, it’s impact on security, and ways to mitigate the risks

Published

on

Share this:

A fake moustache and trenchcoat isn’t a convincing disguise, right? But a digitally altered video that makes your face identical to someone else’s? 

That’s a different story. 

Deepfakes are artificial images or videos that imitate a person’s likeness so convincingly that it can be nearly impossible to recognize they’re fake. Hackers use them to impersonate people’s faces and voices. This can have monumental impacts — even $25 million worth, which is what one undisclosed company lost in a deepfake scam. 

Even with all the money a company spends on voice authentication and facial biometrics, it can all be in vain if a deepfake hacker manages to fool them. 

Gartner explores the impact of deepfakes on organizational policy, and we’ll share some risk management considerations to address the trend. 

30% of organizations can’t rely on facial recognition software and biometrics

Biometrics rely on presentation attack detection (PAD) to assess a person’s identity and liveness. The problem now is that today’s PAD standards don’t protect against injection attacks from AI deepfakes. Once a bulletproof security strategy, biometrics are now inefficient for 30% of companies surveyed by Gartner. 

“These artificially generated images of real people’s faces, known as deepfakes, can be used by malicious actors to undermine biometric authentication or render it inefficient,” 

— Akif Khan, VP Analyst at Gartner 

The solution is a demand for more innovative cybersecurity tech. Gartner advises organizations to update their minimum requirements from cybersecurity members to include all of the following 

  • PAD
  • Injected attacks detection (IAD)
  • Image inspection

On top of that, you can beef up security with: 

  • Device identification: Numerical values or codes to identify a user’s device
  • Behavioural analytics: Machine learning algorithms to detect any shifts in day-to-day online behaviour

So, how can you account for deepfakes risks and mitigation in practice? Here are a few more tips to consider: 

  • Educate employees: Hold monthly or quarterly meetings with experts in the field to help your employee identify common signs of deepfakes, including blurred or pixelated images in a person’s video, or distorted audio. Greater awareness of what to look out for can allow employees to flag suspicions. 
  • Don’t rely on one authentication process: Multi-factor authentication demands 2+ pieces of evidence to verify a user before admitting them into a network. Include email, phone, or voice verification in addition to biometrics. 
  • Invest in deepfake detection software: Consider a subscription Sensity AI, Deepware Scan, Truepic, or Microsoft Video Authenticator. 

Gartner plans to share more findings and research on deepfakes at their security and risk management summits taking place in various countries around the world. 

Read more about those summits and see the news release here.

Share this:
Continue Reading

Business

Where companies have adopted AI—and where they are planning to do so in the near future

Published

on

By

Verbit analyzed survey data from the Census Bureau to see which states have the most companies that are enthusiastic about artificial intelligence.
Share this:

On Nov. 30, 2022, OpenAI launched ChatGPT, a chatbot driven by artificial intelligence. The app spread like wildfire. Not only did it provide an entertaining companion to chat with, but it also showed promise as a piece of productivity software.

ChatGPT allows users to ask questions about myriad topics and get useful responses in a way that search engines like Google cannot provide. Similar technologies have emerged in all kinds of domains, including image generation, language translation, transcription, computer programming, and more.

Firms across the U.S. are embracing artificial intelligence. To find out which regions are the most enthusiastic about AI, Verbit analyzed data from surveys taken by the Census Bureau in December 2023. Overall, 4.9% of businesses said they were using AI to produce goods or services in the past two weeks, while 6.7% say they plan to within the next six months.

Unsurprisingly, information technology companies are the most eager to use artificial intelligence—22% of respondents from American tech companies said they had used AI for their products or services within the past two weeks. That number actually understates AI’s impact in the field. A survey of computer programmers conducted by JetBrains, a software company, found that 77% of respondents used ChatGPT, while 46% used GitHub Copilot, an AI coding assistant.

Professional, scientific, and technical services were the second-most likely type of firm to respond that they used AI tools, according to the Census Bureau. Law firms are using tools to scan through thousands of past cases. And, according to Tess Bennett, a technology reporter for Financial Review, consultants and accountants are using AI to create PowerPoint presentations and conduct exploratory data analysis.


A map of showing which states have the highest share of companies who are currently using AI to produce goods and services.

Verbit

Top adopters

Some businesses have been quicker to adopt AI than others. Companies in Rhode Island lead the way on this front—8.7% of businesses in the state are currently using AI, nearly twice the rate of companies in the United States as a whole.

Companies on the West Coast and the Southwest tended to be more AI-friendly, while companies in the Rust Belt were likelier to have the lowest interest in using AI tools.

This story matches the Census survey numbers with data on what kinds of companies each state has within its borders and the education level of its workforce to understand why these disparities across states exist.

In general, states with a higher share of businesses in the technology sector also were likely to have more businesses use AI to produce goods and services. However, the weak correlation suggests that despite all of the hype surrounding AI, companies have still been slow to change their practices to adopt the technology.

A map showing which states have the highest share of companies which plan to use AI to produce goods and services in the next 6 months.

Verbit

Getting on the bandwagon

Businesses in Washington D.C., were the most likely to say they planned to adopt AI in the next six months, at 13.7%. Meanwhile, about 9% of businesses in Maryland, Alaska, New Mexico, Rhode Island, and Florida said they planned on implementing AI. Alabama and Delaware were the least enthusiastic about AI adoption—only 3.3% of businesses in the two states reported plans to implement AI.

This analysis of Census data found a much stronger correlation between how many of a state’s firms are in the tech sector and their willingness to implement AI in their business practices in the near future.

Similar trends were found when it came to states with highly educated workforces—in general, the higher the share of a state’s residents with college degrees, the more likely its businesses were to say they were planning on implementing AI. Artificial intelligence might be the future. But Census data reveals it is still early days.

Story editing by Ashleigh Graf. Copy editing by Kristen Wegrzyn.

This story originally appeared on Verbit and was produced and
distributed in partnership with Stacker Studio.

Share this:
Continue Reading

Featured