Does Your Cloud Provider Develop Talent?

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Digital and IT organisations are going through some dramatic changes as they adopt cloud and as-a-service capabilities. In this post, I want to write about two of these – one that is very much a consequence of the other.

Contract Numbers are Exploding 

We’re seeing an explosion in the number of IT suppliers to a typical organisation.

Pre-cloud, the typical organisation probably had five to ten contracts that covered most of the external services that were in use. With suppliers increasingly providing niche functionality and the increased use of credit cards to buy external services, it is often difficult to determine exactly how many contracts are in place. Or, indeed, have a clear understanding of the terms and conditions of each of these contracts.

Where once an organisation might have had contracts for an on-premises ERP and CRM system, a typical organisation will still have those contracts as well as a supply chain forecasting service, a marketing email management tool, not to mention online spreadsheets and task management capabilities.

So with many more contracts in place, the complexity of managing these contracts and understanding the technical, legal and business risks encapsulated in these contracts has become dramatically more difficult.

I’ll return to this point in a later post, as most organisations struggle with this increasing complexity.

What Is Happening to Your People?

The existence of these contracts means that you are increasingly becoming dependent on the people employed by these external organisations. But when you sign up for these contracts, do you investigate how these suppliers develop their talent?

The New Zealand Herald recently carried an interesting article on one organisation that has developed a paid intern program. Something very rare in the industry.

The article prompted me to think through some of the implications of using cloud services. Tech buyer organisations will have less need for technical capabilities as increasingly these are delivered by the cloud suppliers.

But the growth in demand for digital and IT skills just continues to increase as more and more industries digitalise. In the past, tech buyer organisations would have invested (at least the good employers did!) in the development of their people. The cloud suppliers are increasingly doing this talent development.

Most contract negotiations are based on cost, quality and customer service. A significant proportion of cloud contracts are now boilerplate – you pay with a credit card for a monthly service and have little or no ability to negotiate terms and conditions.

The trade-off is required to get a short commitment term and a variable cost profile. No tech vendor can afford to negotiate bespoke contracts for this type of commercial arrangement.

This situation leaves the question of how tech buyers can influence tech vendors to develop their people’s talent appropriately. Some would say that the tech vendors will do this as a matter of course, but the statistics, as highlighted in the Ecosystm research data in Figure 1, show that we are not bringing people in at the rate the industry requires.

Cloud Skills Management

Advice for Tech Buyers

I recommend you look closely at using two tactics with the tech vendors that you are working with:

  • First, look to consolidate as much workload as practical under a single contract with the supplier. This is not a new recommendation for contracts – but with the increasing use of boilerplate contracts, it is one of the few ways an organisation can increase its value and importance to a tech vendor.
  • Second, start finding those tech vendors that are developing new and existing talent in practical ways and favour these organisations in any purchase decision.

Most organisations, individually, do not have the commercial power to dictate terms to the cloud providers. Still, if enough tech buyers adopt this critical criterion, the cloud providers may see the value in investing in the industry’s talent development in meaningful ways.

The downside? Talent development does not come free. Tech buyers may need to pay a higher fee to encourage the suppliers but paying a low-cost provider who does not develop their talent sounds like a recipe for poor quality service.

If you would like to discuss any of these thoughts or issues further, please feel free to reach out and contact me. This is an industry issue and one for our broader society, so I would be interested in hearing how your organisations are addressing this challenge.

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Salesforce Backs BetterUp

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BetterUp, a mobile-based professional learning and wellness platform that connects employees with career experts recently raised USD 125 million Series D funding backed by Salesforce Ventures, in partnership with ICONIQ Capital, Lightspeed Venture Partners, Threshold Ventures, and Sapphire Ventures among others, bringing the company’s valuation to USD 1.73 billion. Previously in 2012, the company had raised USD 43 million in venture capital funding with an additional Series B funding of USD 30 million in March 2018. The BetterUp platform combines behavioural science, AI, and human interaction to enhance employees’ personal and professional well-being. Recently, the company also revealed two new products – Identify AI, to help organisations determine the right people to invest in and the appropriate coaching needed through the use of AI; and Coaching Cloud for customised training for frontline, professional, and executive employees.

This announcement comes on the back of several wins for BetterUp. To boost employee performance and organisational growth NASA and the Federal Aviation Administration (FAA) partnered with BetterUp to support new ways of coaching and preparing a workforce for change. The world’s largest brewer, AB InBev has partnered with BetterUp to strengthen diversity and inclusion through BetterUp’s coaching platform.

The Need to Improve Employee Experience

The pandemic changed the working arrangement of millions of employees and industries across the globe who are now working remotely or in a hybrid environment.

Ecosystm Principal Advisor, Audrey William says, “Driving better employee experience (EX) should take centre stage this year with enterprises putting employees at the centre of all initiatives. We will see EX platforms get integrated further and deeper into workplace collaboration and HR applications. In the last 12 months, we have seen apps monitoring wellness and sleep, training and coaching, meditation, employee motivation, and so on sit within larger collaboration platforms such as Slack, Zoom, Microsoft, Cisco and others.”

While the primary focus has been on optimising the work environment, it is time for organisations to start focusing on employee well-being. Ecosystm research shows that organisations implemented several measures to empower a remote workforce last year when the pandemic hit. But there was not enough focus on employee well-being (Figure 1).

Organisational measures to enable remote working

William says, “A hybrid work environment may have negative impact on your employees. You may face issues such as longer working hours, employee burnout, lesser social engagements and connection, loneliness – and mental and emotional issues and depression”.

“Organisations that place an emphasis on the employees will see their revenues grow and also see less attrition. The more you invest in your people, the more you will get back in return. It is as simple as that! You can see that now in some organisations where employees are being given more flexibility, employers are not dictating how they should work, diversity and inclusion efforts have become mainstream, and efforts are being made to make employees feel like they belong.”

William adds, “However, Ecosystm research finds that organisations have gone back to putting customers and business growth first – losing focus on their employees. Only 27% of organisations globally say that they have improving employee experience as a key business priority in 2021. It is time for this culture and mindset to change. And solutions such as BetterUp can make a difference.”


Transform and be better prepared for future disruption, and the ever-changing competitive environment and customer, employee or partner demands in 2021. Download Ecosystm Predicts: The top 5 Future of Work Trends For 2021.

Ecosystm Predicts: The Top 5 FUTURE OF WORK Trends for 2021
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Ecosystm Predicts: The Top 5 Future of Work Trends For 2021

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2020 has been a watershed year for Future of Work policies and technologies. Organisations are still evaluating their workplace strategies and 2021 is likely to see experiments in work models – every organisation will choose the model that works for their nature of work and their organisational culture. Against this backdrop of disruption and change, Ecosystm’s 360o Future of Work team – Audrey William, Mike Zamora, Ravi Bhogaraju and Tim Sheedy – present the top 5 Ecosystm predictions for the Future of Work in 2021.

This is a summary of the predictions, the full report (including the implications) is available to download for free on the Ecosystm platform here.

The Top 5 Future of Work Trends For 2021

  1. Human-centricity Will be Front and Centre of Organisational Priorities

2020 saw immense humanitarian disruption. Enabling remote work was a key component of business continuity. Both organisations and their employees have a better understanding now of the implications of remote working and how it can be made to work. They are also aware of the challenges of remote working. Monitoring productivity, maintaining the right work-life balance and ensuring employee emotional well-being have been challenging. Despite the challenges, hybrid/blended working is definitely here to stay. Employees will expect more options on the location of their work, often choosing to work where they are most productive.  

All decisions related to the organisation, filtered through the lens of human-centricity, will drive better employee engagement – and engaged employees provide better customer experience. Organisations that will operationalise this at scale and across cultures will emerge as success stories.  

  1. Technology Will Bond with Facilities and Operations – Connecting with HR Will be a Challenge

There has to be an alignment between the Business, People, Work Environment and Technology to make an organisation truly empowered to handle sudden pivots that will be required in 2021 as well (Figure 1).

Future of Work Framework

This will require cross-departmental coordination and synergy. Tech teams have traditionally driven the Digital Workplace strategy; now they will have to work closely with Operations and Facilities Management teams on “Smart and Safe Office” strategies. That may not be the real challenge given that there are overlaps between these three teams – they have a shared language and similar KPIs. The real challenge will be the need for Tech teams and HR to work more closely to improve the overall employee experience, including a focus on employee productivity and wellness. Human-centricity makes the role of HR even more important – IT will find it challenging to find common grounds as there have traditionally been few shared KPIs between these two departments.

  1. Office Spaces Will Become Truly Digital

The hybrid/blended workplace model means that the physical workplace is not disappearing soon. Even as the model evolves for each organisation, what becomes clear is that employee expectations have changed drastically in the last year, and the traditional employee experience expectations of Salary, Recognition, and Job Satisfaction may not be enough. Employees will now expect flexibility, social cohesion, and effective communication. If they are to return to the physical office, they will expect the same benefits as working from home.

This will drive the adoption of digital tech to ensure the office space is safer, more effective and a productive environment for the employees and the business. Two key areas of focus will be on seamless access to information and employee control over work environment.

  1. Providers Will Deepen Digital Workplace Offerings, but the Market Will Not Consolidate

Key tech providers in the digital workspace space (such as Microsoft, Google, Zoom, Cisco, AWS and so on) will broaden their capabilities and make it easier to procure and use solutions. It will no longer be a “tool-centric” approach (chat, video, document sharing, online meetings, whiteboards and so on) – it will become a platform play. Information workers will be able to choose the approach that best fits the problem they are trying to resolve,  without being limited by the capabilities of the tool. E.g. documents will be sharable and editable within chats; whiteboards will be integrated into all other communication services and so on.

Tech providers will deepen and strengthen their capabilities organically and acquisitions will mostly be about buying market share, customers and not the technology.

  1. Industry-centric Digital Workplace Services Will Emerge and Witness Rapid Growth

The Services industry has been leading in the adoption of digital workplaces – but blue-collar roles and front-line employees will also start benefiting from these technologies. In 2021, new digital workplace capabilities will extend beyond the employee base to systems that drive better connectivity and communication with customers. This will open the market up for smaller, niche players (and this may well run counter to the previous trend). Tech teams will focus on employees and a platform-based approach to collaboration, while Customer teams and others will implement tools and platforms to better communicate outside of the business. The next few years will bring the traditional “employee-centric” collaboration players into direct competition with the “customer-centric” ones. Those that play across both today (such as Google) will be better positioned to win the enterprise-wide “Future of Work” style deals.


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Human-centric Future of Work

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The Future of Work is here, now. Organisations faced unprecedented challenges of coping with the work-from-home model, when COVID-19 hit earlier this year. Many organisations managed the pivot successfully – but all organisations were impacted in some way.

The COVID-19 crisis has required major resets in how organisations function – across industries and economies. In this environment of intense changes, businesses that have been agile in their operations and their mindsets and were better digitally enabled have thrived, while others have struggled.

Our 360o Future of Work practice focuses on Business, People, Technology and Work Environment. All four are required to work together to enable companies to meet future challenges. The Future of Work enables companies to Pivot, Adapt and Thrive.

Ecosystm Future of Work Framework

The People practice within the Future of Work helps organisations adapt their People strategies in conjunction with the other areas to drive a holistic approach in the Future of Work strategies. 

The Need for Human-centricity

Talent has always been a key company asset that brings product and service offerings to life. HR teams have retained a constant focus on attracting and retaining talent. HR teams have come into sharp focus as the pandemic rages across the world. With the closure of offices and borders, and distancing measures, companies have had to focus their energy on their people and the work infrastructure – almost overnight.

With every passing week, the situation keeps evolving – and so do the ways of managing and engaging with employees and customers. As countries and businesses slowly reopen and modify their distancing protocols the People strategies will have to evolve rapidly.

Every organisation is now grappling with the decision of whether to “reopen” and go back to how things were; or think of alternatives and opportunities that they can capitalise on to strengthen their businesses.

The 4Es of People: Experience Journeys

The cornerstone of the People practice within the Future of Work is to align the Customer Experience and the Employee Journey.

It is not just about finetuning the employee process or employee life cycle in isolation. That is a consequence of the tweaks to the overall journey.

Depending on the phase of the company that you are in (Pivot, Adapt and Thrive) the changes to the employee experience would vary. The 4Es of People is designed to help you make that happen.

Experiment.  HR leaders are increasingly being asked to “orchestrate” companywide experiments to help figure out the way forward. An Experimentation Mindset is crucial to finding the right solutions fast. This needs to be done in a small and holistic way – some examples include thinking of different workforce models, working contracts and benefits, working archetypes, technology and data enablers and workplace models.  

Enable. Two main areas of enablement that need to be looked at are:  the human elements of talent, capability, leadership and culture to align to the business strategy pivots; and  the associated elements of technology, workspace and analytics.

Energize. Key HR competencies of empathy and collaboration are increasingly becoming crucial to ensure that the organisation is staying well, motivated and focused through these demanding times.

Embed. The ability to learn from the experiments, finetune the overall system within and outside the company, and support the changes over the longer term are crucial to help companies scale the models and gain sustained competitive advantage over the mid-term.

The 4Es of People can be effective in adding the right elements and outcomes to support the changes. These are intended to enable HR to help organisation establish their Future of Work strategies and implement them effectively. This will help them to be prepared for whatever model of work becomes prevalent in the future.

Schedule a time to speak with us on Future of Work

Ecosystm Principal Advisors; Tim Sheedy (Technology), Ravi Bhogaraju (People & Organisations), and Mike Zamora (Work Environment) provide a holistic view of what the Future of Work will look like.

We enable businesses to adapt, pivot and thrive in their ecosystem; provide holistic access to data and insight across People, Technology and Work Environment; help businesses transform and be better prepared for future disruption, and the ever-changing competitive environment and customer, employee or partner demands.

Contact us through the platform, or over email at info@ecosystm360.com


Ecosystm 360⁰ Future of Work

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