Episode 75: "technology integration into the Strategy...comes down to corporate capability.." Rod Hore
Rod Hore started in the IT industry. Then he founded his own business focused on mergers and acquisitions. The M&A business leads him to the recruitment industry. In this M&A role, he has experienced getting to know business owners and the various challenges they face to grow their businesses and execute a successful exit.
Globally there is a considerable investment in technology in the HR services space. Of course, many predictions on how this will impact the industry. However, even though the many process improvements technology has enabled, various businesses still rely on human interaction and ingenuity.
Technology is used to improve overall business processes, compliance with government regulations and payroll issues and a better solution for the client.
The recruitment industry is dominated by small to medium-sized businesses. Technology has helped companies take the human capital supply process to a higher level of partnering with the client.
Technology has the potential to impact the strategic direction of small businesses but is not being leveraged.
Leading edge HR services companies are moving more to a professional services model and becoming strategic partners with the clients. Strategic partnerships require meeting with the executive team or the board members. If technology is not part of the Strategy, then strategic alliances are not possible.
Insourcing and outsourcing are a pendulum and in constant flux. The government rules and regulations around employment influence this decision-making process.
Technology has become a lot less expensive; therefore, the technology required to scale the business is not a huge investment. The technology is usually "Software as a Service" (SaaS) and easy to implement. Therefore the use of the technology and integration into the Strategy is the problem, not the cost. It comes down to corporate capability. i.e. an ability to keep abreast of the latest and most relevant technology and how to implement it so that the relative competitive advantage is maintained.
Recruitment is an intense and high-activity business. Working from home is a real issue most business owners are grappling with on how to optimise this working environment. Of course, the technical problems have been addressed, but the productivity and getting the most from an extended B2B sale team is challenging. Instant coaching and feedback is difficult.
Probably a solution around a period of core hours in the office and working together will be the outcome of the hybrid work phenomenon.
Rod has had clients for the last two years who he has never met face-to-face. He finds this difficult at times to reconcile.
At an advisory board level, most business owners have had a huge learning experience in the last few years. The awareness and knowledge about how to run a "properly corporate business" have improved immeasurably. As a result, they are better directors and business managers.